One Renewable Energy Enterprise, Inc.

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October 16, 2013

Aldaba Theater, University of the Philippines

Quezon City, Philippines

One Renewable Energy Enterprise, Inc.

One Renewable Energy Enterprise, Inc.

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Presentation

• Brief Overview of One Renewable

• Management Team

• Business Model

• Financials

One Renewable Energy Enterprise, Inc.

_____________________________________________ One Renewable One Renewable Energy Enterprise, Inc.

– Established by former staff of Shell Solar Philippines Corp. (SSPC) in 2008.

– The team is considered a prime mover of the rural retail segment of the

solar industry in the Philippines because it has pioneered the development

of rural retail market for solar energy business during their stint with SSPC.

VISION:

One Renewable is the Philippines’ most trusted and leading systems integrator

in the renewable energy sector in the next 5 years.

MISSION:

• To ensure customer satisfaction across all market segments (i.e. rural retail and

commercial / industrial clients)

• To provide efficient and responsive technical services via state-of-the-art

research and development

• To continuously be financially viable for the benefit of all stakeholders

• To pro-actively adapt to the continuous changes in technology and manpower

requirements

One Renewable Energy Enterprise, Inc.

_____________________________________________ One Renewable Management Team

• Working as a Team for already 11 years in the Industry going back to

2002, six (6) years in Shell Solar & going five (5) years with the One

Renewable.

• The Team has a combined experience of 81 years in the Solar Industry

covering several aspects of running this Business.

– Rural & Institutional Business Development

– Project Management

– Technical Services; Design & Implementation

– Procurement & Logisitics

– Technical Operations & After-sales

One Renewable Energy Enterprise, Inc.

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Network DISTRIBUTION CENTRES

Luzon

Mindoro

Infanta / Quezon

Isabela / Ifugao

Romblon

Visayas Palawan

Iloilo /Guimaras Capiz/Aklan/Antigue

Negros Oriental/ Occidental Mindanao

Davao del Norte / Oriental Cagayan de Oro / Misamis Oriental Zamboanga del Sur / Norte / Sibugay

Tawi-tawi / Sulu /Basilan

Maguindanao/ Sharif Kabunsuan / Cotabato

Luzon

•Bulacan Centre

•Infanta Centre

•Isabela / Ifugao Centre

•Romblon Centre

•Palawan Centre

Visayas •Iloilo/Guimaras/ Capiz / Antique / Aklan Centre

•Negros Oriental / Occidental Centre

•Cebu / Bohol/Leyte Centre

•Samar Centre

Mindanao

•Davao del Norte Centre

•Bukidnon / Cagayan de Oro / Misamis Oriental Centre

•Zamboanga Centre

•Tawi-tawi / Sulu Centre

•Koronadal Centre

One Renewable Energy Enterprise, Inc.

_____________________________________________ One Renewable Business Model

• In a market that is considered the bottom of the pyramid, it is imperative to

create an ecosystem that supports the buyer and the seller for it to be a

sustainable business model.

• The traditional approach of trading and project implementation had been to

give away systems to beneficiaries as a one-time transaction. This has a

limited reach and duration as there is none or non-responsive after sales

service and generally the product becomes useless after the first year. IT DOES

NOT WORK.

• To renew this way of thinking, One Renewable has partnered with Micro

Finance Institutions and local Distributor / Contractor to create a livelihood

program that will provide business opportunities for the community as well as

maintain a strong and reliable sales and after sales network.

• To demonstrate, the trading sales (micro-solar) increase from 400 units sold in

2011 to 8,000 in 2012, a revenue of USD 65,488 to USD 465,278. This volume of

sales was made possible thru increase of micro-retailers (35 to 430) and

network business partner (7 to 9) at the end of 2012.

One Renewable Energy Enterprise, Inc.

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Financial Performance 2008 - 2012

Comparative Profit & Loss (PhP 000’)

2008 2009 2010 2011 2012A

Trading sales 3,916 1,020 2,010 2,685 20,056

Service revenues 6,641 5,756 14.91

Turn-key sales 1,392 29,105

Total sales 3,916 7,661 7,766 4,077 49,176

Cost of sales 2,413 3,802 4,871 3,913 35,805

Contribution margin 1,503 3,858 2,898 164 13,371

CM Percentage 38% 50% 37% 4% 27%

Operating expense 662 3,467 4,903 3,884 10,405

Net income 841 391 -2,009 -3,720 2,966

One Renewable Energy Enterprise, Inc.

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Financials

• Trading sales segment jump started in 2011 with the introduction of Barefoot Micro Solar Home Systems

• Growth in retail sales for 2012 mainly attributed to the partnership of an MFI in the Visayas region, Negros Women for Tomorrow Foundation (NWTF); and winning the contract from Winrock / Amore.

• Outlook for 2013 to 2016 retail sales is a steady and sustainable growth driven by expansion of NWTF in the Panay area; engagement with LGT Ventures Philanthropy and Peace & Equity Foundation (due diligence at the current stage), acquisition of new network business partners for North Luzon and Re-engagement with WI-Amore BRECDAS.

One Renewable Energy Enterprise, Inc.

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Target Setting

Served 9.7 M 78%

Unserved 2.8M 22%

HOUSEHOLD CONNECTIONS

NEA Data 2/28/3013

Luzon 0.725M

26% Visayas 0.621M

22%

Mindanao 1.4M 52%

UNSERVED

One Renewable Energy Enterprise, Inc.

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Target Setting

ZamPen 221 15%

NorMin 109 8%

DavReg 182 13%

SoCCKSSarGen 341 24%

ARMM 529 37%

CARAGA 54 4%

Mindanao Unserved

One Renewable Energy Enterprise, Inc.

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Target Setting

Tawi-tawi 58

11% Siasi 12 2%

Sulu 102 19%

Basilan 62

12%

Cagayan de Sulu 4

1%

Lanao del Norte 109 21%

Maguindanao 181 34%

ARMM Unserved

One Renewable Energy Enterprise, Inc.

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Low income populations that do not have access to electricity

Better, safer and cheaper alternative

Direct substitute to the use of kerosene lamps / candles

Product :Micro Solar Lighting with Cellphone Charging

Products

Family Dinner Dinas Zambo Sur Photos Courtesy of WI-Amore3 Sales & Service Caravan Negros Oriental

One Renewable Energy Enterprise, Inc.

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Financials

• Investment Requirements: USD 1.271M (2013 – 2016)

• Procurement of Barefoot Micro-solars for Expansion in Amore area.

• Number of Beneficiaries

CY2013 CY2014 CY2015 CY2016 Total (000)

48 448 545 230 1,271

2012 2013 2014 2015 2016 Total

No. of

BRECDAs

58 10 56 65 37 168

No. of HH Served

7,966 956 9,371 11,396 4,815 26,538

One Renewable Energy Enterprise, Inc.

_____________________________________________ Islamic Finance Instrument : Musharakah

BRECDA

Invest on Stocks (AMORE seed capital)

ORDER = PhP 100,000.00

One Renewable

Top up equivalent value with stocks

INVESTMENT = PhP 100,000.00

Stocks

Available

for Sale

200,000.00

One Renewable Energy Enterprise, Inc.

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Wealth Sharing

OREEi Total Sales 106M

BRECDA Share 16M

Wealth Sharing

One Renewable Energy Enterprise, Inc.

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Financial Performance Projection 2013 - 2015

Comparative Profit & Loss (PhP 000’)

2013 2014 2015

Trading sales 11,741 44,754 52,850

Service revenues 267

Turn-key sales 33,849 30,000 30,000

Total sales 45,857 74,754 82,850

Cost of sales 35,427 51,640 56,393

Contribution margin 10,429 23,115 26,456

CM Percentage 23% 31% 32%

Operating expense 13,383 17,234 19,499

Net income -2,954 5,881 6,957

One Renewable Energy Enterprise, Inc.

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Solar Lighting for Learning Solar Lighting for Far

Flung IP Communities

Solar Lighting for Family Life

Photo Courtesy of WI-AMORE 3

Solar Lighting for Livelihood