BUSINESS PLAN

Agreiter Daniel Declara Denis

Gasteiger Silvia Kirchler Alex

Schmiedhofer Markus

Italy – South Tyrol

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Table of contents

Executive summary......................................................................................................................................... 3 Business idea .................................................................................................................................................. 4

Team description ............................................................................................................................................ 5

Mission statement .......................................................................................................................................... 6

Production process ......................................................................................................................................... 7

Cost-benefit calculation .................................................................................................................................. 8

Feasibility ........................................................................................................................................................ 9

Marketing ................................................................................................................................................... 10

Marketing and sales concepts .................................................................................................................... 11

SWOT analysis ............................................................................................................................................ 13

Joint Venture .............................................................................................................................................. 14

Business organisation and location ............................................................................................................ 15

Type of business ownership ....................................................................................................................... 16

Financing and balance sheet ...................................................................................................................... 17

Bureaucracy and implementation timetable ............................................................................................. 28

Acknowledgement ...................................................................................................................................... 29

Table of content of the enclosure .............................................................................................................. 30

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Executive summary

Activity of Energy Surface

The company Energy Surface produces, promotes and sells a floor mechanism which generates electricity. Our product is designed to be used in busy places and locations with a lot of motion such as dis-

cos.

Problem and motivation

In recent years, the demand for energy has been growing incredibly and the currently used energy re-sources such as fossil fuels are running out. Consequently, the search for and development of renewable forms of energy has become even more im-portant.

Product: A floor covering that generates electricity

Our product is a floor mechanism, consisting of tiles which sink up to 5 mm. When stepped onto, they pro-duce electricity.

Service

Our customers can turn to us not only if they intend to buy our product but also for planning, installation, maintenance and assistance.

The company and our team

Energy Surface is mainly concerned with the production, promotion and sale of an innovative product able to produce renewable energy. Our team consists of five members of staff with excellent organizational as well as business and computer skills. Our company is going to take on four more employees, so there will be a total of nine people in-volved.

Financing

Our company will need approximately € 380,000 as a starting point to initiate the project and establish our company. 30 % of this amount, i.e. € 113,760, will be contributed by the team itself.

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Business idea

The product

The „Power Panels“ are an innovative type of floor tiles which produce electricity. The floor tiles consist of a sub-structure of metal and are wired together. Normal floor tiles can be fixed on this sub-structure. The sub-structure incorporates a mechanism which allows the floor tiles to sink when stepped onto, for about 0.5 cm. When no pressure is exerted any more the tiles return to their original position. This up- and down-movement is converted into electricity by magnets. Only the sub-structure of the “Power Panels” will be produced by Energy Surface itself: A specialised com-pany will make the basic surface and then fit the whole floor covering in on location. This product is not a new invention but is already in use in a disco in Rotterdam. However, there it is only being used for private purposes. Our aim is to successful market this product and to make greater use of its potential. In cooperation with our partner enterprise Leitner Solar AG we have made a functioning prototype which confirms that the idea is sustainable.

Service

Our services consist in taking care of the sale and distribution of the floor tiles. We take on the planning from the first customer contact to the completed installation. We also provide maintenance and assistance. The installation will be carried out by the company Leitner Solar AG.

Future plans

We decided to take on responsibility for the production, the organisation – ranging from the production to the installation - and the maintenance in the first three financial years. The other steps will be outsourced to keep the initial financing as low as possible.

In case the first three financial years yield profit, we are planning to carry out these currently outsourced steps ourselves and to employ our own specialized staff who will then install the floor covering.

Underline Magic

Special of our product is that it offers an alternative energy source, everyone who uses our floor-covering helps to protect the environment. With the planned usage in discos, the power consumption, can be re-duced and costs be saved. Furthermore, our tiles have specific features that preserve their functionality and individual design. Besides, we are the first who offer such a product on the market.

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Team description

Markus Schmiedhofer

CEO

Markus was chosen for the job as CEO because of his exceptional organisational talent. Even in busy situations he keeps a clear mind and handles tasks efficiently.

Silvia Gasteiger

Marketing Dept

Her creative skills have made Silvia to become the manager of the Marketing Department. She loves working in a team and knows exactly how to present her ideas and advocate her opin-ions.

Alex Kirchler

Research and Development

We are convinced that Alex is the right person for this job because he has always been showing great interest in the development of our products. In addition, he is an expert in handling vari-ous devices and in using different technologies.

Denis Declara

Administration Dept

Denis has excellent skills in book-keeping and EDP. He is responsible for the day-to-day running of the administration department and keeps our website up to date.

Daniel Agreiter

Sales Dept

Daniel is very talented when it comes to selling our product. He knows how to convince cus-tomers and works in close contact with the Purchasing Department, the Marketing Depart-ment and the Stock.

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Mission statement

Our activity

First of all Energy Surface produces, promotes, sells and is responsible for the maintenance of a floor mechanism which produces electricity. We also intend and have planned to continue improving our prod-uct as well as our customer care services.

Relationship with partners

At first, the installation of our product will be handed over to a partner company. In the future, however, we will handle this task ourselves, too. This will allow us to be far more flexible and will decrease the costs that have been caused by enlisting the services of other businesses.

Market

It is our plan to expand and operate internationally. This will allow us to service a larger range of customers. An appropriate marketing strategy is needed in order to advertise our brand and make the international expansion of our product possible. It is equally important to be aware of other companies offering similar technologies.

Other considerations

During its expansion our business will be able to present new job opportunities to an increasing number of people. Furthermore, our technology will contribute to decrease the global demand for energy in a percep-tible way, thus saving and protecting the environment.

We actively participate in a project to achieve energetic independence until 2020 for South Tyrol. The aim is to replace oil and gas with renewable energy sources.

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Production Process

Commodity suppliers

Production site:

Customers

Business partner: Leitner Solar AG

- Installation

Tiling company

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Cost-benefit calculation

Cost-benefit calculation

Based on the cost estimate for the disco Club Zone we made a cost benefit calculation. The disco Club Zone has to be newly built. In case of an upgrade to the Power Panels, additional € 2,000 - € 3,000 will be needed to remove the old floor covering and to prepare the floor.

The Club Zone has a dance floor of 64 m², where the Power Panels are going to be installed. In addition, an inverter is going to be installed and the necessary electrical wires are going to be routed. The total cost for the installation of the tiles is € 15,120 (64 m² × € 150 selling price for the floor tiles + € 3,000 for the in-verter).

The disco Club Zone has an average power consumption of 150 KW per night. This amount of electricity costs approximately € 33 per night.

If the Club Zone decides to install our Power Panels, the power consumption per evening as well as the costs are going to decrease by about 20 %. After 5.3 years, the disco will have saved enough electricity in order to have all expenses of € 15,120 fully covered. In the following, the disco will save approximately € 2,409 electricity costs a year.

Estimated costs

Energy Surface GmbH E-mail: e.surface@ymail.com Beda-Weber-Str. 28 Tel.: 0474 550 321 39031 Bruneck Fax: 0474 550 123

Club Zone Industriezone West 28 39031 Bruneck

Bruneck, 10th March 2010

Estimated costs

Description Amount Unit Unit price Total Power Panels 64 m² 150.00 € 9,600.00 € Inverter 1 units 3,000.00 € 3,000.00 € Total 12,600.00 € VAT (20 %) 2,520.00 € Total inc. VAT 15,120.00 € Yours sincerely, Markus Schmiedhofer Energy Surface GmbH

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Feasibility

Feasibility confirmation from Leitner Solar AG

We, Leitner Solar AG, have tested in detail and analyzed the product "Power Panels" of Energy Surface GmbH. The result confirms that:

The product idea is realizable and is confirmed to be ready for the market, as has been proved by the prototype.

Since alternative energy sources become more and more important, we are sure that the Power Panels will be very successful.

During our tests we found out that one m² of Power Panels is capable of generating 0.09375 W/step. As-suming an average of twelve steps per minute, one m² is able to produce 67 W/hour.

Yours sincerely,

Alex Galvan

Leitner Solar AG.

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Marketing

Marketing research

The aim of our market research was to precisely define our target group, to find out about potential weak-nesses inherent in our ideas and then to improve them. When deciding about the most suitable approach we considered whether it would make sense to approach people on the street and ask them about their opinion. We came to the conclusion that it would be much more useful to question institutions like airports, train stations, subway stations, discotheques and other public corporations. Therefore, we contacted various companies describing our idea and asking them for their opinion as well as their suggestions for product improvement. The evaluation of the information we received has revealed that airports, train stations and other public corporation are unsuitable because: It would not be profitable to remove all the already existing floors. The floor tiles would be exposed to an extraordinary weight (e.g. suitcase transporters and clean-

ing machines).

The discos we contacted were thrilled by our idea and could very well imagine using our floor tiles in their own businesses. They found the retail price of 150 € / m² appropriate. Therefore, in the first one or two years we have planned to specialize in the distribution of our product in discos. We calculate with an estimated sale of 12,000 m².

Competitor analysis

Currently there are no other companies that offer comparable products for sale. Only in a nightclub in Rot-terdam a similar system is in use, but this is only for research purposes and is not offered on the open mar-ket.

Our company currently has no direct competitors, but the customer can choose between our tiles and tra-ditional ones which for us represents an indirect competition

Our prices cannot compete with those of traditional products, therefore it's important for us to differenti-ate ourselves from our competitors. Our tiles provide the advantage that after a very short time costs can be saved. Furthermore, we guarantee our customers that through our unique and simple system the func-tionality will not be influenced in any way. Additionally, the fact that our tiles save electricity and thus the environment will be protected, is one more reason to buy our product.

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Marketing and sales concepts

Advertising ourselves

Our product has been designed especially for companies and public locations such as discotheques and un-derground stations. We believe that the best ways to promote our product are as follows: Advertisement in magazines Fairs Distributors

The aim of our marketing strategy

The aim is, above all, to awaken the interest of the enterprises in the application of innovative technologies in the area of the energy conservation. The best way to implement this is to get in direct contact with po-tential customers. Because we approach only one special target group, we have to present our products and services especially on specific fairs in a distinct way. Besides, it is important to be open for suggestions and opinions of the visitors any time in order to do justice to their wishes and needs. A fair has the big ad-vantage that many representatives of other countries gather and we have thus the opportunity to convince our potential customers of our product. This offers the possibility to do to us internationally a name and to become active beside South Tirol and Italy, also in important countries like Austria, Germany, France and Switzerland

In addition to international fairs we want to market our product with the help of distributors abroad.

Besides, we find it sensible to announce our company in local and international magazines, as well as on different advertising channels.

Because South Tirol has a central location in Europe, it offers good conditions to our activities to the whole European and worldwide market.

Investments

We decided to invest approximately € 80,000 into marketing in order to advertise and promote our prod-uct, services and brand.

Services

One of our goals is to offer our customers an all-inclusive package which includes everything from installa-tion to maintenance. Furthermore, we offer technical assistance and repair services as well as a helpline for our customers.

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Prices

The customers will pay an all-inclusive price for the product. This includes technical assistance and mainte-nance.

Logo

Picture and blueprint

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SWOT analysis

Strengths Weaknesses + Highly qualified staff + Integration into existing systems + Adaptability to customer needs + Existing cooperation in distribution

− High development costs − Time-consuming production − Limited market presence − Restricted market

Opportunities Threats + No direct competition + Potential for expansion abroad + New application areas through research + Increasing demand for alternative energy

sources

− Possible imitation − High costs for our customers − Dissatisfied launch customers − Indirect competition

Measures against corporate weaknesses

High development costs » Our partner company Leitner Solar AG is investing in the development of our product and assumes some of the costs incurred.

Time-consuming production » We are looking for ways in which the production can be automated step by step and the capacity can be increased.

Limited market presence » With more presence in the public, through direct contact with custom-ers and sales partners we will try to get new customers.

Restricted market » By investing in research and development we will optimize our product for new market.

Measures against hazards in our environment

Possible imitation » Continuous development of our tiles as well as development of more efficient techniques; legal protection.

High costs for our costumers » For customers who want to buy the tiles a relatively rapid compen-sation of the costs should give them an incentive; maintenance and customer service will be in-creased.

Dissatisfied launch customers » Strict quality control: only sufficiently tested and proven modules are installed

Indirect competition » By saving energy costs with our product and the production of clean energy while maintaining the same functionality, we will be able to offer a competitive solution

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Joint Venture

The Energy Surface LLC has arranged a joint venture contract with Leitner Solar AG based in St. Georgen, Rienzfeldstraße 47, 39031 Bruneck (Italy).

Leitner Solar AG is contracted to lay the “Power Panels” and all necessary electronic wires and equipment (inverter, ….) which are necessary for the field assembly.

In the attachment you will find a copy of the contract.

We would like to mention and thank our partner Leitner Solar AG for all their help and contribution. They have not only provided us with useful advice but they have also played an important role in helping us with the design of the tiles.

We have also signed a commission contract with the company Disco Designer producing disco furniture, based in Zapfenstr. 4, 06108 Halle, Germany which will be responsible for the distribution of the floor tiles in Germany.

In the attachment you will find a copy of the contract.

Lastly, we would like to thank all our partners who have helped us to make this project possible.

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Business organisation and location

Internal structure

Location

Our headquarters are located in the industrial area of Bruneck, Beda-Weber-Street 28.

We have chosen this location because we are directly connected to the main road and only a few metres away from the train and bus station.

A crucial factor for us was also that there are enough parking spaces for our employees as well as suppliers and customers.

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Type of business ownership

Form of business organisation

For our company we have chosen the LLC form of business ownership (Limited Liability Company). This le-gal form is a kind of Joint Stock Company.

Advantages and disadvantages

We have chosen this form of business enterprise mostly because it carries less financial risks. In fact, it pro-vides limited liability to its owners which means that they are only responsible for the capital of the com-pany. The LLC designates a minimum capital of € 10,000 for this purpose. In our case this is not a disadvan-tage because we intend to invest a much bigger amount of money to be competitive on a national and in-ternational scale.

However, a disadvantage of the LLC is the bureaucracy which is far more complex compared to other legal forms. Further, the law prescribes very strict rules.

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Financing and balance sheet

Investment planning

When planning the investments we determined which facilities and machines we would require for our activities. In this process we differentiated between tangible and intangible/material and immaterial capital assets.

Assets Year 1 Year 2 Year 3

Industrials buildings 0.00 0.00 0.00 Productive facilities 200,000.00 0.00 0.00 Furnishing 2,000.00 0.00 0.00 Office machines 2,000.00 0.00 0.00 Vehicles 0.00 0.00 0.00 Tangible assets 204,000.00 0.00 0.00

Start-up costs 4,000.00 0.00 0.00 Costs for research and development 0.00 20,000.00 20,000.00 Advertising costs 80,000.00 0.00 0.00 Software 500.00 0.00 0.00 Tangible assets 84,500.00 20,000.00 20,000.00

Total assets 288,500.00 20,000.00 20,000.00

At present we have only hired one building which holds both our offices and production sites to reduce costs. The same applies to the fleet of vehicles which is being financed through leasing.

We have acquired machines for a total cost of € 200,000. For the furnishing of the office premises and the acquisition of computers and other electronic devices needed in the administration we have budgeted a sum of € 4,000.

The sum necessary for the foundation amounted to € 4,000. In order to make our company known to the public within the first financial year and to reach the sales targets we have calculated a sum of € 80,000. The costs for software amount to € 500.

In the second and third financial year € 20,000 are intended to go into research and development. Through research we are planning to extend the operational area e.g. gyms etc. to win new customers.

Sales budget

For the sales budget we carried out a market research to find out who our potential customers are. As a result of our market research we believe we can count on sales of 12,000 square metres of our floor tiles in

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the first financial year. This way the sales will amount to € 1,800,000 with a sales price of € 150 per square metre.

The planned sales for the second financial year amount to € 2,025,000, which is the equivalent of 13,500 square metres of sold tiles. This sales growth is a result of increased investment into research and development to open up new operational areas for our floor tiles.

In the third financial year we will sell 15,000 square metres of our “Power Panels”. Due to this increase in sales we can expand our company further. In addition, we will rise the price from € 150 to € 160 per square metre.

Costs of goods sold

The costs of goods sold amount to 61 %. We calculated this value by adding the initial inventory goods to the purchases and then subtracting the final stock in proportion to the sales.

Structural and administrative costs

The structural and administrative expenses comprise mainly costs for insurance and energy as well as con-sultancy, office supplies and other administrative expenses (calculated on the basis of empirical experi-ence).The monthly rent accounts for € 3,000.

Principal structural costs Year 1 Year 2 Year 3

Energy costs 15,000.00 15,300.00 15,606.00 Advertising and marketing costs 5,000.00 5,100.00 5,202.00 Maintenance and repair costs 2,000.00 5,000.00 15,000.00 Insurance 3,000.00 3,060.00 3,121.20 Fuel costs 2,500.00 2,550.00 2,601.00 Telephone and internet costs 2,000.00 2,040.00 2,080.80 Office supplies 500.00 510.00 520.20 Other administration costs 1,800.00 1,836.00 1,872.72 Business consulting 12,000.00 12,240.00 12,484.80

Staff

In the first three years four employees will be working in our company. The costs for all will amount to € 8,571 with net earnings of € 1,020. Altogether 14 monthly salaries are planned.

For the second and third fiscal year an inflation adjustment of 2% is intended.

In addition, all five shareholders, who are involved in the company, are active in the business. In the profit & loss statement the compensation for these employees is regarded as management fee. In the first fiscal

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year this fee is expected to amount to € 180,000, in the second fiscal year to € 250,000 and in the third fis-cal year to € 250,000.

Profitability analysis

The following figures have been calculated on the basis of the assumptions drawn up in the example. In ad-dition to the income statement the annual cash flow is calculated as well to get an overview of the liquidity situation of the company in each single year.

Profits Year 1 Year 2 Year 3 Sales revenue Amount 12.000.00 13,500.00 15,000.00 Unit price 150.00 150.00 160.00

Turnover 1,800,000.00 2,025,000.00 2,400,000.00 Other profits 0.00 0.00 0.00 Total profits 1,800,000.00 2,025,000.00 2,400,000.00

Costs Year 1 Year 2 Year 3

Costs for commodities, materials and supplies 1,260,000.00 1,417,500.00 1,650,000.00

Costs for commodities 1,260,000.00 1,350,000.00 1,430,000.00 Costs for received services Transport costs 5,000.00 5,100.00 5,202.00 Services provided by partners 120,000.00 122,400.00 124,848.00 Management fee 180,000.00 250,000.00 250,000.00 Energy costs 15,000.00 15,300.00 15,606.00 Advertising and marketing costs 5,000.00 5,100.00 5,202.00 Maintenance and repair costs 2,000.00 5,000.00 15,000.00 Insurance 3,000.00 3,060.00 3,121.20 Fuel costs 2,500.00 2,550.00 2,601.00 Telephone and internet costs 2,000.00 2,040.00 2,080.80 Office supplies 500.00 510.00 520.20 Other administration costs 1,800.00 1,836.00 1,872.72 Business consulting 12,000.00 12,240.00 12,484.80

348,800.00 425,136.00 438,538.72 Rental and leasing agreements Rental agreements 36,000.00 36,720.00 37,454.40 Leasing rates 22,245.96 22,245.96 22,245.96

58,245.96 58,965.96 59,700.36

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Personnel costs Salary 120,000.00 122,400.00 128,848.00 INPS contribution 50,000.00 51,000.00 52,020.00 INAIL contribution 400.00 408.00 416.16 Funds dismissal pay 6,000.00 6,120.00 6,242.40

176,400.00 179,928.00 183,526.56 Depreciation funds Amortization fund – start-up costs 800.00 800.00 800.00 Amortization fund – long term costs 16,000.00 20,000.00 24,000.00 Amortization fund – software 100.00 100.00 100.00 Amortization fund – assets 6,000.00 6,000.00 6,000.00 Amortization fund – furnishing 60.00 60.00 60.00 Amortization fund – office machines 60.00 60.00 60.00 Amortization fund – vehicles 0.00 0.00 0.00

23,020.00 27,020.00 31,020.00 Inventory change Final stock 100,000.00 250,000.00 300,000.00 Initial stock 0.00 100,000.00 250,000.00

100,000.00 150,000.00 50,000.00 Other costs Costs for chamber of commerce 400.00 400.00 400.00 Vehicle tax 800.00 800.00 800.00 Other taxes and commissions 1,000.00 1,000.00 1,000.00 Other expenses 1,500.00 1,500.00 1,500.00

3,700.00 3,700.00 3,700.00 Total costs 1,770,165.96 1,962,249.96 2,316,485.64

Difference between profits and costs Year 1 Year 2 Year 3

Profits 1,800,000.00 2,025,000.00 2,400,000.00 Costs 1,770,165.96 1,962,249.96 2,316,485.64 Difference 29,834.04 62,750.04 83,514.36

Financial income and requirements Year 1 Year 2 Year 3 Interest requirements Loan interests 5,912.50 5,241.68 4,552.41 Passive bank interest 2,160.00 2,655.00 2,025.00

8,072.50 7,896.68 6,577.41 Total improved financial performance -8,072.50 -7,896.68 -6,577.41

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Result before taxes 21,761.54 54,853.36 76,936.95

Taxes of the current financial year Year 1 Year 2 Year 3 IRAP 4,819.89 6,026.61 6,860.69 IRES 5,984.42 15,084.67 21,157.66 Total taxes of the current financial year 10,804.31 21,111.29 28,018.35

Net profit 10,957.22 33,742.07 48,918.60

Cash-flow Year 1 Year 2 Year 3 Net profit 10,957.22 33,742.07 31,529.44 + Depreciation funds 23,020.00 27,020.00 31,020.00 - Capital rate 24,393.46 25,064.28 25,753.55 Cash-flow 9,583.77 35,697.79 54,185.05

Sensitivity analysis

With the assumption that our company’s revenues decrease by 20 % the operating result and the profit are both negative. Therefore calculating the figures, efficiency would be negative.

Profits Year 1 Year 2 Year 3 Sales revenue Amount 9,600.00 10,800.00 12,000.00 Unit price 150.00 150.00 160.00

Turnover 1,440,000.00 1,620,000.00 1,920,000.00 Total profits 1,440,000.00 1,620,000.00 1,920,000.00

Costs Year 1 Year 2 Year 3 Costs for commodities, materials and supplies 1,008,000.00 1,134,000.00 1,320,000.00

Costs for commodities 1,008,000.00 1,134,000.00 1,320,000.00

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Costs for received services Transport costs 5,000.00 5,100.00 5,202.00 Services provided from partners 120,000.00 122,400.00 124,848.00 Management fee 180,000.00 250,000.00 250,000.00 Energy costs 15,000.00 15,300.00 15,606.00 Advertising and marketing costs 5,000.00 5,100.00 5,202.00 Maintenance and repair costs 2,000.00 5,000.00 15,000.00 Insurance 3,000.00 3,060.00 3,121.20 Fuel costs 2,500.00 2,550.00 2,601.00 Telephone and internet costs 2,000.00 2,040.00 2,080.80 Office supplies 500.00 510.00 520.20 Other administration costs 1,800.00 1,836.00 1,872.72 Business consulting 12,000.00 12,240.00 12,484.80

348,800.00 425,136.00 438,538.72 Rental and leasing agreements Rental agreements 36,000.00 36,720.00 37,454.40 Leasing rates 22,245.96 22,245.96 22,245.96

58,245.96 58,965.96 59,700.36 Personnel costs Salary 120,000.00 122,400.00 124,848.00 INPS contribution 50,000.00 51,000.00 52,020.00 INAIL contribution 400.00 408.00 416.16 Funds dismissal pay 6,000.00 6,120.00 6,242.40

176,400.00 179,928.00 183,526.56 Depreciation funds Amortization fund – start-up costs 800.00 800.00 800.00 Amortization fund – long term costs 16,000.00 20,000.00 24,000.00 Amortization fund – software 100.00 100.00 100.00 Amortization fund – assets 6,000.00 6,000.00 6,000.00 Amortization fund – furnishing 60.00 60.00 60.00 Amortization fund – office machines 60.00 60.00 60.00

23,020.00 27,020.00 31,020.00 Inventory change Final stock 100,000.00 250,000.00 300,000.00 Initial stock 0.00 100,000.00 250,000.00

100,000.00 150,000.00 50,000.00 Other costs Costs for chamber of commerce 400.00 400.00 400.00 Vehicle tax 800.00 800.00 800.00 Other taxes and commissions 1,000.00 1,000.00 1,000.00 Other expenses 1,500.00 1,500.00 1,500.00

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3,700.00 3,700.00 3,700.00 Total costs 1,518,165.96 1,678,749.96 1,986,485.64

Difference between profits and costs Year 1 Year 2 Year 3

Profits 1,440,000.00 1,620,000.00 1,920,000.00 Costs 1,518,165.96 1,678,749.96 1,986,485.64 Difference -78,165.96 -58,749.96 -66,485.64

Financial income and requirements Year 1 Year 2 Year 3 Interest requirements Loan interests 5,912.50 5,241.68 4,552.41 Passive Bank interests 2,160.00 2,655.00 2,025.00

8,072.50 7,896.68 6,577.41 Total improved financial performance -8,072.50 -7,896.68 -6,577.41

Result before taxes -86,238.46 -66,646.64 -73,063.05

Taxes of the current financial year Year 1 Year 2 Year 3 IRAP 1,147.89 1,895.61 1,760.69 IRES 0.00 0.00 0.00 Total taxes of the current financial year 1,147.89 1,895.61 1,760.69

Net profit -87,386.35 -68,542.25 -74,823.74

Cash-flow Year 1 Year 2 Year 3 Net profit -87,386.35 -68,542.25 -74,823.74 + Depreciation funds 23,020.00 27,020.00 31,020.00 - Capital rate 24,393.46 25,064.28 25,753.55 Cash-flow -88,759.81 -66,586.53 -69,557.29

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Break - even point

With the break-even analysis we inves-tigate at which sales volume our com-pany works profitably.

With a retail price of € 150 per m², variable costs of about € 134 per m² and fixed costs of about € 166,000, the break - even point will be reached at 10,607 sold square metres.

That means that from a sales volume exceeding 10,607 m² onwards the company will operate profitably.

Financial requirements

On the basis of the investment plan the demand for capital will be fixed. Of course, the stock building and financial resources must be taken into account, too. The capital requirements amount to about € 380,000.

Investments Year 1 Year 2 Year 3

Tangible assets 204,000.00 0.00 0.00 Intangible assets 84,500.00 20,000.00 20,000.00 Stock value 30,000.00 0.00 0.00 Working Capital 3,000.00 0.00 0.00 Pre-financed VAT on purchases 57,700.00 4,000.00 4,000.00 Required capital 379,200.00 20,000.00 20,000.00

Self-financing Year 1

Capital and reserves 113,760.00 Self-financing 113,760.00

Foreign-financing Year 1

Overdraft 50,000.00 Loan 215,440.00 Foreign-financing 265,440.00

0

1000000

2000000

3000000

4000000

0 3000 6000 9000 12000 15000 18000 21000

Break - even point

Fixed costs Turnover Total Costs

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Redemption plan

We assume that we will be able to raise equity capital to the extent of € 113,760. Besides that, another € 265,440 will have to be financed through borrowed funds. A sum of € 50,000 will be financed through a current credit account. The remaining € 215,000 will have to be financed with an eight year loan, paying an interest rate of 4%.

Principal 215,000.00 Starting date 01/01/11 Number of rates 1 Interests on the debt 4,00% Length in years 8 Instalment 30,306.00

Rate nr. Date Interests Pay-back Instalment Remaining debt

1 31/12/2011 5,913.00 24,393.00 30,306.00 190,607.00 2 31/12/2012 5,242.00 25,064.00 30,306.00 165,542.00 3 31/12/2013 4,552.00 25,754.00 30,306.00 139,789.00 4 31/12/2014 3,844.00 26,462.00 30,306.00 113,327.00 5 31/12/2015 3,116.00 27,189.00 30,306.00 86,137.00 6 31/12/2016 2,369.00 27,937.00 30,306.00 58,200.00 7 31/12/2017 1,601.00 28,705.00 30,306.00 29,495.00 8 30/12/2018 811.00 29,495.00 30,306.00 0.00

Balance sheet

Assets Year 1 Year 2 Year 3

FIXED ASSETS Intangible assets Acquisition value Start-up costs 4,000.00 4,000.00 4,000.00 Research and development 0.00 20,000.00 40,000.00 Advertising costs 80,000.00 80,000.00 80,000.00 Software 500.00 500.00 500.00 Depreciation funds Amortization fund – start-up costs 800.00 1,600.00 2,400.00 Amortization fund – research and development 0.00 4,000.00 12,000.00 Amortization fund – advertising costs 16,000.00 32,000.00 48,000.00 Amortization fund – software 100.00 200.00 300.00

67,600.00 66,700.00 61,800.00

Tangible assets Acquisition value Buildings 0.00 0.00 0.00 Assets 200,000.00 200,000.00 200,000.00 Furnishing 2,000.00 2,000.00 2,000.00 Office machines 2,000.00 2,000.00 2,000.00 Vehicles 0.00 0.00 0.00

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Depreciation fundsonds - Fondi ammortamento Amortization fund – buildings 0.00 0.00 0.00 Amortization fund – assets 6,000.00 12,000.00 18,000.00 Amortization fund – furnishing 60.00 120.00 180.00 Amortization fund – office machines 60.00 120.00 180.00 Amortization fund – vehicles 0.00 0.00 0.00

197,880.00 191,760.00 185,640.00

Financial assets 0.00 0.00 0.00 Trade investments 0.00 0.00 0.00

0.00 0.00 0.00

TOTAL ASSETS 265,480.00 258,460.00 247,440.00

CURRENT ASSETS Stock Commodities 100,000.00 250,000.00 300,000.00

100,000.00 250,000.00 300,000.00

Receivables Customers receivables 180,000.00 202,500.00 240,000.00 Other receivables 0.00 0.00 0.00

180,000.00 202,500.00 240,000.00

Available funds Open account 0.00 0.00 0.00 Cash 500.00 600.00 300.00

500.00 600.00 300.00

TOTAL CURRENT ASSETS 280,500.00 453,100.00 540,300.00

PREPAID EXPENSES AND DEFERRED CHARGES Accrued revenues 200.00 400.00 800.00 Deferment 80.00 3,000.00 1,200.00

280.00 3,400.00 2,000.00

TOTAL ASSETS 546,260.00 714,960.00 789,740.00

Liabilities Year 1 Year 2 Year 3 CAPITAL AND RESERVES Capital 113,760.00 113,760.00 113,760.00 Legal reserves 0.00 0.00 0.00 Other reserves 0.00 0.00 0.00 Profit / loss brought forward from the previous year 0.00 10,957.22 33,742.07 Subtotal 113,760.00 124,717.22 147,502.07 Profit / loss of the current financial year 10,957.22 33,742.07 48,918.60 SUM OF CAPITAL AND RESERVES 124,717.22 158,459.30 196,420.67 FUNDS DISMISSAL PAY Fund dismissal pay. 6,000.00 12,120.00 18,362.40 6,000.00 12,120.00 18,362.40

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LIABILITIES Remaining maturity up to 12 months Trade creditors 153,989.06 286,341.44 349,516.44 Liabilities against banks 48,000.00 59,000.00 45,000.00 Taxes 10,804.32 21,111.29 28,018.35 Liabilities INPS 3,571.43 3,642.86 3,715.71 Liabilities salaries 8,571.43 8,742.86 8,917.71 Other liabilities 0.00 0.00 0.00 224,936.23 378,834.44 435,168.22

Remaining maturity of more than 12 months Long term loan 190,606.54 165,542.26 139,788.72 Other long term liabilities 0.00 0.00 0.00 190,606.54 165,542.26 139,788.72

TOTAL LIABILITIES 546,260.00 714,960.00 689,740.00

Management ratios

Based on the numbers on both balance sheet and income statement, we calculate the return on equity and return on total capital, needed to identify the interest of our equity and profitability of the overall capital.

The return on equity is 9.6% (Profit * 100 / equity without profit). The percentage is very high compared to other forms of investment. This means that the equity yields good returns on investment in the 1st year.

The return on assets is 7.8% (operating result * 100 / total capital). The total assets worked with dealt very well. It yields a profitability of nearly 8%, which compared to other investment options is a good result.

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Bureaucracy and implementation timetable

Bureaucracy

The first step leading up to the establishment of our company was to sign the formation contract and the memorandum of association at the notary Ms Ida Aichner. Then we had to register our company with the Chamber of Commerce. We also requested a VAT number. On 1st January 2011 we began our business ac-tivity and registered our employees. In order to be able to start conducting business we concluded a leasing contract with an estate agency. Likewise, before beginning our activity, we applied for a telephone connec-tion with Brennercom. We decided to outsource part of our production to another company, Leitner Solar AG, with a joint-venture contract. We also signed a commission contract with Disco Designer in Germany to gain better access to the European market.

Implementation timetable

Year 2010 2011 2012 Quarter 1 2 3 4 1 2 3 4 1 2 3 4 Making of the business plan Feasibility checks Foundation of the LLC Research and development Building of the prototype Approach to business partners Staff hiring Look for building Advertisements Commencement of activity Reaching the profits wedge International Expansion

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Acknowledgment

Many thanks...

...to our headmaster, Dr. Johann Georg Rogger, who always sustained our project.

...to our teacher, Dr. Martin Winkler, for all the lessons he granted us so we could work on our project.

...to our teacher, Walter Maier, for his technical advice.

...to Leitner Solar AG for concluding a joint-venture contract with us.

...to Disco Designer for the commission contract.

...to Immobilien Niederkofler for providing us with a leasing contract for a building.

...to all those who participated in our market research, including discotheques, airports and public corpora-tions

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Table of content of the enclosure

Blueprint

Leasing contract

Request for VAT number

Registration with the Chamber of Commerce

Notification of commencement of activity

Leasing contract for vehicles

Repayment plan

Memorandum of association

Articles of association

Request for entry in the telephone directory

Request for telephone connection

Telephone contract

Application for sponsorship by the Autonomous Province of Bozen

Questionnaire for the market research

Contract of commission

Joint venture contract