Company presentationat Budapest Stock Exchange

09 May, 2012

Gábor VilhelmHead of Treasury and Investor Relations

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Agenda

• Introduction of the Company

• Achievements of 2011

• 2012: Year of consolidation and operational excellence

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Segments

Customers

• Industrial clients (including blue chips)

• Municipalities

• Residential clients

• Hot water

• Steam

• Electricity

• ESCO

• Energy outsourcing

• Public lighting

• Efficient, district heating services

• Public lighting

• Energy trading

Main Products

Establishment

Aggressive growth

IPO

International expansion + SPO

Further international growth (Romania)

Milestones

2000

2005

2007

2009

2010

2011

Dual listing at Warsaw, SPO (EUR 8M)

Closing bond program. I (EUR ~33 M), EETEK

Acquisition (EUR 21M)

Client proposition

Fast growing E-Star provides complex alternative energy solutions for a wide customer base

Business model

2012 Operational excellence and year of consolidation

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Sustainable business model targeting mid-market

Business model

• 20-100 MW heat capacity• € 5-35 million annual

investment per project

Mid-sized projects(niche segment)

Utilization of renewable sources

• 15-49 years

Long-term contracts

Combined Technology Mix

• Price mechanism based on change in fuel price

Changes in fuel cost naturally hedged

Local heat market

Co-gen

Biomass boiler

Gas boiler

Annual heat curve

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E-Star’s technology free knowledge-based alternative energy business creates a keystone role for the company

Gas engines

Biomass

GeothermalBiogasBiomass boilers

Gas boilers

Natural gas

Turbines Geothermal / inert gas

IndustrialResidential

Coal

Municipality

Diversified international project portfolio including wide range of clientele in all sectors

Zalau

TarguMures

Gheorgheni

ESCOPublic lighting

District heating

Rába-Audi Project

• Energy and utility services• Blue-chip industrial

consumers (Rába, Audi, Dana)

• Capacity: 8.4 MWth and 8.5 MWel

EC Mielec

• Heat and electricity• Capacity: 170.5 MWth and

24.4 Mwel

Euro-Energetyka

Energy distribution and trading

Mielec

Gorlice

EC Gorlice

• Heat and electricity• Capacity: 87.2 MWth and 7.0

MwelGyőr

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Reliable International Blue Chip Industrial Clientele

Distribution of revenues based on 2011

Residential Industrial Municipal Total

Hungary 3% 23% 11% 37%

Poland 0% 39% 8% 47%

Romania 11% 0% 5% 16%

Total 14% 62% 24% 100%

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Diversified revenue sources with blue chip industrial clientele ensure outstanding risk management

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E-Star has attracted international investment interest, as it has been becoming an industry leader

International

• World Finance TOP 100 (2010)

• Only member from CEE region

• Others include:– CitiGroup– Apple– Amazon– Coca Cola

• Listed on Warsaw Stock Exchange(March 2011)

Hungary

• „Team of Stock Exchange” (2009)

• Largest stock price increase (2010)

• BUX indexmembership (2010)

• Pegasus price in market leader category (2010)

EBITDA has trippled and revenue has grown by six fold from 2008 to 2011.

Revenue (mln EUR) Gross margin (mln EUR)

EBITDA (mln EUR) Equity and financial liabilities (mln EUR)

11.5 14.028.5

65.5

2008 2009 2010 2011

79 % CAGR

2.4

5.3

7.66.4

2008 2009 2010 2011

39 % CAGR

4.4 8.2 11.34

42.7

2008 2009 2010 2011

113% CAGR

2.39.1

14.4 18.3

7.4 10.8

27.6

47.1

2008 2009 2010 2011

Equity*

Financial liabilities

* After the consolidation of EETEK, including 10% equity increase through an SPO. (Each of the 240.000 shares were sold for HUF10.000)

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Agenda

• Introduction of the Company

• Achievements of 2011

• 2012: Year of consolidation and operational excellence

E-Star closed a successful 2011 in line with an aggressive growth strategy

• Consolidation

• Operational excellence

• Entering 4th country

• Bring projects to perfection

• Further growth

• Entering 5th country

• Entering Poland

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20152014201320122011

• New Gas Cogeneration – 8.4 MWe

• Organizational improvement – 500 FTEs

• Re-branding: from RFV to E-Star Alternative Plc.

• Restructuring to reach cost efficiency (still under process)

• Technical listing at WSE

• Entering Poland by EETEK acquisition (EUR 21 M + EUR 4.5 M)

• SPO – EUR 8 M (10%)

• Closing E-Star HUF nominated Bond Program – EUR 33.3 M

• Successful bank financing (BZ WBK) – EUR 4 M + non-refundable state subsidy

2011 greatest achievements

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Agenda

• Introduction of the Company

• Achievements of 2011

• 2012: Year of consolidation and operational excellence

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Aggressive consolidation measures 2012

20152014201320122011

Operations management

Corporate development

Business development

• Financial and operational controlling

Entering PolandOperational excellence

Entering country #4Regional champion &Entering country #5

• Extended board to support business development

• Polish company set -up

• Re-branding• SPO & BOND

• Entry: Poland district heating

• Growth return in Hungarian ESCO

• Supervising all operating project

• Operational excellence through increased efficiency and cost control

• Optimization of organization and internal processes

• Setting up venture capital fund subsidiary

• Expansion at current project sites

• Significant cost cutting

• Review of strategy

• Operating Management System

• Controlling cash costs

• Set up of gas trading unit

• Country 4# company set-up

• Building new innovation capacities

• Entry: country #4• Entry into new

segments within existing countries

• Building new industrial client portfolio

• Developed functional spikes

• Operational excellence through increased efficiency and cost control

• Improved project implementation and know-how transfer

• Market consolidation in core segments

• New R&D projects, cutting edge solutions

• Enhancing capital discipline

• Business service center development

• Country 5# company set-up

• Regional procurement & supply chain management

• Shared Value Creation (SVC)

• Entry: country #5• Regional

consolidation• Technology

flagship in alternative energy within CEE

E-Star is reviewing it’s investment programs and considering divesting opportunities according to operational excellence

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Stable

Cash Flow

Stable Cash

Flow

Investment

Period

• Activity-based on concession rights• Exclusive DH supplying to municipalities• DH and electricity for industrial consumers• Energy production and trading• Coal based CHP Cogen and brand new Gas Cogen

bought for PLN 26,7 M (PLN 13 M non returnable subsidy)

• 35 Municipal costumers• More than 180 project sites• Operation with a 11-year history• ESCO, Public Lightning, DH, and RESZ

• Activity based on 35-49 years concession rights• Delays in CAPEX program which lasts until 2016• 25% expected ROE due to country risk factor• Cheap biomass• Impressive value creation• DH and electricity• Clientele: municipal, residential, industrial

Hungary

Poland

Romania Reviwing of

Mures and

Zalau projects

Reviewing of

divestment

opportunities

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Consolidation measures in 2012.

• Number of employees have been reduced by 38 %• Employee running rate costs reduced by

EUR 800 k annually• E-Star froze wages and salaries in 2012• No bonuses were paid for 2011 financial year

Reduction of employee costs at HQ

• IT services have been outsourced• E-Star contracted gas supply agreement on

cheaper price • E-Star is being optimised its operation in PL

Other

Reduction of external advisory and legal fees

• Savings reach EUR 2.5 M annually

• PLN 13 M non returnable subsidy for gas cogen engines set up at Mielec project

• More subsidy funds are expected to be secured for de-dusting programme

E-Star’s financing which is considered to be a key role of success relies on four strong pillars

EQUITY INCREASE

• Zero-dividend policy• SPO in form of private placement of

~EUR 8 M completed on June 9, 2011

Domestic and int. BOND program

• Provides financing for development of new projects

• E-Star aims to fund a constant proportion of our balance sheet from the bond market

• 2010-11: ~ EUR 33.3 M issued in Hungary, pioneer role on market, 90% to institutional investors, 10% to retail clients

• 2012: EUR 9 M planned to be issued in Poland

Group-level BANK refinancing

• Loan structure adjusted to the maturity and cash flow generation potential of our current projects

• Diversified banking relations• Regional, group-level cash pooling and

cash flow management

Financing structure:• Support business development• Maintain strong Balance Sheet• 30% Equity – 70% Debt

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Subsidies and EU funds

Refinancing and financing programs advance well

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• Syndicated refinancing of RESZ project lead by E-Star’s house bank in the amount of EUR 6,5 M bank facility

• VAT financing in addition• Raising OVD limits• Closing expected by 2012 H1

Refinancing Acquired Hungarian Project

• EUR 9 M Bond financing• As an alternative to the bond programme:

bank financing provided by E-Star’s Polish house bank institution in the same amount (EUR 9 M)

• Closing expected by 2012 H1

Refinancing Acquired Polish Projects

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Contact

E-Star Alternatív Nyrt.

1122 Budapest Hungary, Székács utca 29.

mobile: +36 20 779 7405, +36 20 779 7406

phone: +36 1 279 3551

fax: +36 1 279 3550

email: info@e-star.hu, url: www.e-star.hu

Thank you for your attention!