CIMLA PROJECTS & DEVELOPMENTS CC [DOCUMENT SUBTITLE]

PRESENTED BY: MIKE OOSTHUIZEN

0822549755

SOLARCIMLA@GMAIL.COM

VERSION 2.1

APRIL 12, 2016

Confidential

4/12/2016 CIMLA Projects & developments cc 1

PURPOSE

CIMLA Projects & Developments cc (CIMLA P&D) was established in Pretoria, Centurion in 2005 and was formally registered in 2006 (2006/033279/23). At first we did business in the building sector whereby almost any small to medium project was taken to get us going. Now CIMLA P&D is focused on renewable energy products to reduce the power load of our clients in order to save on their electricity bills.

We still do civil and construction works as our products require rigging of various equipment where paving, concrete plinths, generators, inverters, battery banks, solar plants, water vessels, heat pumps and other equipment need to be prepared and installed in order to ensure turnkey solutions.

Our purpose is to inform our clients more about the advantages of alternative energy and energy saving products. It is also important for us to do research in the market to ensure that the latest technology will be used in order to give our clients the most advanced system at the time of implementation.

Financing is also a key role when it comes to large scale renewables as the CAPEX (capital expenditure) of these systems is sometimes not reachable by the commercial or industrial sectors. Our models are designed in such a manner that the clients CAPEX does not affect their business cash flow and it will also save more on the OPEX (operational expenditure) of the business from the word go, after implementation.

POSITION IN THE MARKETPLACE

SOLAR PV SYSTEMS

CIMLA P&D recently partnered up with the Omron team in installing large commercial solar PV systems to help business owners to reduce their electrical consumption to any margin of 30% to 95% pending their funding structure and agreements. The Omron Inverter is the only inverter in the world with PID (Potential Induced Degradation) preventative measures, thus prevent that the panels on the roof degrade in the years to come, to prevent efficiency loss of the solar system. Higher efficiencies in power generation result in a faster return on investment. This top level performance is achieved through the use of 3 Maximum Power Point trackers to spread voltage range if clouds comes into play. This ensure maximum power output.

Omron’s global communication system allows you to connect to any tracker through a PLC with 3seconds delay in real time. The monitoring system ensures that all reports, software upgrades, hardware checks and production data can be done remotely from any location worldwide. This ensures lowering of the system’s OPEX.

Omron’s design and engineered software can tell in advance the CAPEX of the complete installed system and can give an estimate to the self-funding client’s pay-back period.

Omron is the largest inverter manufacturing company in the world and with the Netherland’s engineering excellence they have dealerships worldwide in 20 countries.

SOLAR THERMAL SYSTEMS

CIMLA P&D is a well-known service delivery company assisted large solar importers to get their systems approved by the SABS. Large companies like Genergy and Tasol solar are very much acquainted with our standard of work as we did various service level agreements together in the past.

In the Industrial and commercial sector we installed more than 65 large scale solar/heat pump systems. Within the domestic market we did more than 150 solar geysers and more than 35 back-up/solar PV systems in the country.

Confidential

4/12/2016 CIMLA Projects & developments cc 2

Regarding Plumbing, electrical and maintenance we are geared to accomplish any turnkey project.

MARKET SIZE

The continuous escalating cost of Eskom and Municipal fees has increased the requirement for solar thermal systems and solar PV (electrical solar systems).

South Africa’s climate is ideal for solar. Most areas in the country average more than 2,500 hours of sunshine per year, among the highest in the world, thanks to its Equatorial position. The more light the panels receive, the more electricity they generate and they work on cloudy days too.

As electricity costs keep rising, solar is becoming an even more viable and cost-effective option for businesses in South Africa. While there is an initial outlay cost, it can be recouped after five to eight years on average. That’s an attractive return on investment (ROI) especially considering solar electricity is then free after the initial payback period and offers businesses a sustainable way to cut costs.

Due to a combination of favorable economic conditions, solar market potential and an open bidding process, South Africa was rated best in the world in the January and March 2014 quarterly reports by research company IHS. According to a January Commerzbank report, South Africa’s successful procurement program has paved the way for solar expansion in other sub-Saharan African countries. The February Ernst & Young Renewable Energy Attractiveness Index report concluded that South Africa is “the most attractive emerging photovoltaic market globally.” All these reports reiterate an October forecast by Frost & Sullivan that South Africa is on track to becoming one of the fastest-growing renewable energy markets in the world.

MARKET SHARE

CIMLA Projects aims to get a 1,2% share of the Gauteng solar market in 2016 and predicts a 10% growth annually.

MARKET PENETRATION

As a small business enterprise we are focused to get our own brand of product in 2017 in order to increase our profit margins in such way that we can uplift work creation within the company.

The Council for Scientific and Industrial Research predicts a significant rise in new installations with a possibility of 500 MW per year which will be our focus during 2016 to penetrate the solar market.

Confidential

4/12/2016 CIMLA Projects & developments cc 3

MARKET SATURATION

Data on web and social response was obtained from Google analytics. Where the figures are compared

with the way in which people are responding to solar marketing initiatives, it could be said that Gauteng

is ahead of the Western Cape in response by about 60-24=36%; right? However, the Western Cape is

home to 5,8 million people and Gauteng 12,2 million people according to the 2011 census, Effectively a

little more than double the number of people in Gauteng when compared to those living in the Western

Cape. Although it may seem as if Gauteng is leading in demand and response, it could be that the province

is only leading as a result of the volume of people residing in the province. In short, the response from the

two metros are on par with one another; which would echo the need for information from consumers

and organizations who have an interest in the energy sector regardless of where they are based.

Existing solar suppliers are experiencing a type of “feeding frenzy” on solar enquiries. This sudden rush of

demand as a result of the re-instated blackouts have left consumers (both residential and commercial)

scrambling to find answers for an affordable renewable and sustainable power solution to ensure the long

term viability of their businesses. So whether you are a contractor only starting-out with solar PV

installations or you are an established organization, you need to know where the demand is and what the

response would be on the way in which capital is being invested into marketing initiatives aimed at

attracting a new solar PV client base.

When looking at provinces such as North West, Free State, Limpopo and the Northern Cape, it is evident

that very few (1%) people have actually responded to the initiatives. Population density in these provinces

are significantly different to that of the large metros; but this may not be the reason for the poor response.

People in these areas may use different means of communicating and sharing information.

The way in which different sectors respond and communicate with one another, in turn should impact the

strategy of the organizations interested in attracting viable leads in the energy sector. If your organization

wishes to attract the market segment for PV systems <20kW, the strategy and approach to that segment

Confidential

4/12/2016 CIMLA Projects & developments cc 4

would be different to attracting new clients in the 40-100kW Tier for example. Identifying contractors who

can do the work within those different sectors call for yet another approach. What an exciting & vibrant

industry to be involved with and part of. The PV industry is one of the fastest growing industries locally.

Define the sector of interest i.e, is your target market the end consumer, engineers, architects,

agricultural, domestic, commercial or industrial. Each sector should have its own approach, strategy and

route to market. Become a part of the sector but ensure that the decisions taken on growth into the sector

is based on factual and realistic data.

AUDIENCE

TARGET MARKET

We are aiming to reach all commercial business owners who are capable to undergo “solar surgery”. There are obvious important terms and conditions that needs to be taken in to account as well as the availability of space and approval by the landlord.

Our target market will be those commercial businesses that have ample roof space for solar PV panels or solar thermal panels and whom do not have roof shading more than one hour over their roof area and also who have easy access to the roof. Every site has its own demands that we can overcome with thorough planning. Obviously Northern facing roofs will have a lower CAPEC.

In the large water heating arena, hotels, hospitals, schools, mines and old-age homes will be our target market. With solar PV there will be an advantage to any company that use electricity. After installation one can expect 30% to 95% electricity savings pending on the size and design that the client requested.

CUSTOMER ATTITUDES

All clients are interested in solar systems or other alternatives to help them save on electricity costs. Therefore it is essential that funding will be available as the CAPEX of solar systems are expensive.

Regarding maintenance of buildings and civil works, most customers are happy to do improvements on their properties.

CUSTOMER SATISFACTION

We at CIMLA P&D are 100% focused on customer satisfaction. No job is too small nor too big for us and we are a turnkey operation company that ensure excellent customer satisfaction. We always say “proof is in the pudding”.

PRODUCT

VISION

To bring our dream of a self-sustainable energy sector to pass that will promote green growth and job opportunities for generations to come.

Confidential

4/12/2016 CIMLA Projects & developments cc 5

MISSION

To utilize the abundance of natural energy resources and other eco-friendly products to its fullest potential in order to reduce carbon emissions.

PRODUCT USAGE / SKILLS

SOLAR ELECTRICAL

Our products can be used is any facility, building, home where electricity is used. The product can be chosen from various suppliers depending how big the energy system needs to be. Systems can be tailor-spec-designed according the budget of the client. It is our work and responsibility to spec the most advanced system at the point of design and pricing for each individual client.

INVERTERS

Inverters has various roles, thus we use various suppliers and also keep track of best technology at all times. Each system will be designed by an electrical engineer and installed by our skilled installers. All designs will be done by a load monitor test for 3 to 4 days whereby we install electrical readers/meters on the client’s main incoming Distribution Board (DB) to get acquainted with minimum and maximum loads, power factor correction and other possible distortions or losses to be corrected before such large solar system gets installed. Thus our design will be based on each client’s own numbers and feedback from the load tests and according the application.

For example an Island inverter will be used to those clients that rely on power from only alternative energy merely because they don’t have electricity supply from the national grid (Eskom). This inverter then can be backed-up with a diesel generator, batteries or even wind energy where ample wind is available. Most clients requests are for a Grid inverter (with or without back-up which will be a Hybrid inverter) which sends power in the DB network to energize daily operations, free from the sun.

Our main suppliers are Omron and Ingecon. When it comes to smaller solar systems or back-up power systems, we use large stock wholesalers such as Current Automation where we can do smaller systems such as boat, caravan and other camping energy solutions.

PHOTOVOLTAIC (PV) PANELS

This is the so-called solar generator that is energized by the solar array on your roof by the sun. As the sun hits the solar panels, it generates power to send it either direct to the Charge controller to charge batteries for back-up systems, OR it send its power generated directly to the inverter in the form of Direct Current (DC). The inverter will invert this energy-current into Alternative Current (AC), ready to be used directly into the DB of the client’s electric network in such way that any single phase or three phase appliances/equipment can be energized with electrical power. Thus in short, free energy from the sun during day time. PV panels vary in volts, amps and wattages and of course in size. Therefore different panels will be used in different scenarios. Our main suppliers are Jinko, Solar World, Art, Seraphim (micro-inverter-panel), Yingli and SolairDirect.

BATTERIES

Batteries will be used as a storage medium during night time when the solar panels can’t send power to the inverter to deliver power to the DB. Batteries are available in various sizes and models and are used in various back-up designs. Small systems are 12volts, medium systems are 24volts and larger systems are 48 volts. Our main supplier is the Deltec brand that has a large range of batteries in their manufacturing line. We also deal with other main suppliers in the market such as Hoppecke and SBS.

Confidential

4/12/2016 CIMLA Projects & developments cc 6

GENERATORS

When one deal with energy alternatives a diesel/petrol generator is mostly used as last resort to stay on line with power supply. We do small generators from 3kw 1Megawatt systems. Our main supplier is Chadha Power AND GenPower. Smaller to medium generators we also supply from our Honda brand.

SOLAR THERMAL AND PLUMBING

CIMLA P&D does all plumbing works and geysers from 150L geysers up to 60 000L solar and heat pumps single/combination systems. We are also capable of doing large maintenance works on all plumbing systems.

We work with any standard manufactured geysers that have SABS approval with a minimum warrantee of 5years. Our geysers that are larger than 300L are specially designed for heat pump or/and solar and will be tailor made from our SABS approved supplier. These geysers can be connected together as large as 60 000L water thermal renewable systems.

COST

Each system or maintenance job is unique and will be priced on own merit. In short in large scale solar electrical (PV) systems the total installation cost averages around R19,50 to R21.50 per Watt power generation pending on detail and design.

SHELF LIFE

Most of our components does not stay longer than three months in the suppliers store, thus there will not be any negative effects on production nor purchase guarantees.

TESTING

All our products lines are SABS tested/approved. The imported products will have TUV testing, have PID preventive measures with all local and international standards.

Confidential

4/12/2016 CIMLA Projects & developments cc 7

ANALYSIS

SWOT ANALYSIS

OTHER SKILLS

When it comes to do the final touches of a turnkey operation or with new developments we make use of skilled experience to do our painting, water proofing, epoxy coating and air-conditioning.

REFERALS

Omron

Contact: Ross Allan (0760628715)

Large scale Commercial PV solar systems

Ingeteam

Contact: Kobie Dupper (0113143190)

Sishen 95Megawatt inverter manufacturing

Tasol Solar

PV, Inverters, Heat Pumps, Solar geyser sales and installations

Contact: Riaan Swanepoel (0861113078)

•Excelent supplier backing and technical support. We source direct from our suppliers. We also assist our clients with funding on large scale solar systems.

•Installers are all PIRB qualified for plumbing and electricians are all ECI approved.

•We have strong bonds with relevant companies to do Joint ventures in goverment contracts.

Strengths

•Not yet capable to fisit our main suppliers in the Neatherlands and Spain to ensure closer bonds.

•Our vehicle fleet need upgrade in the nearby future.

Weaknesses

•The solar market is expanding at a rapid rate due to local electrical costs.

•There are increasing oppertunities in nabouring countrys within SADC region.

•The possibility of offering finance to our clients open more solar oppertunities.

Opportunities

•Cheap Chinese imports do a lot of damage to our upmarket solar system industry.

•Not all clients are financially capable to do their own funding.

Threats

Confidential

4/12/2016 CIMLA Projects & developments cc 8

Mining

Large scale industrial solar thermal with heat pumps and solar energy.

Contact: Leon Brodrick (0717536397) Northam mines in Thabazimbi.

Contact: Pierre Bessenger (0861159159) at Elands mine, Brits area.

Large Residential

15KW PV solar and 5 x solar and heat pump-geyser systems

Contact: Kenny and Emily Malgas (0716852842)

Electrical works

FastFreight package delivery group

Contact: Wiets Nel (0722703544)

Plumbing works

Construction, geysers and drainage systems

Contact: Lood Bothma (0823010622)

Water proofing and EPOXY

Contact: Jannie Oosthuizen ( 0749199436)

Confidential

4/12/2016 CIMLA Projects & developments cc 9

INSTALLATION GALLARIES

Omron Solar Pv System to supply power direct into the DB for day operations for commercial usage.

Large scale 15kw three phase Residential system to power daily operations.

Single phase 5Kw home system with battery back-up for after hour usage.

Confidential

4/12/2016 CIMLA Projects & developments cc 10

Large scale 160 000Liter solar Thermal system with heat pumps and solar.

Residential solar water heating solution.

Epoxy paint solutions to protect concrete for heavy usage.

Confidential

4/12/2016 CIMLA Projects & developments cc 11

Roof and water proofing solutions.

Building projects.

Other galleries are available on our website: www.nrgtechnologies.co.za

Also on our Face Book page: www.facebook.com/SolarCimlaProjectsDevelopments/?fref=ts

END