Sainshand 52 MW onshore wind farm

in the heart of Dornogobi Province/ Mongolia

GERMAN-MONGOLIAN CORPORATE DAYS 2014

Conference and ExhibitionJune 18th

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– 6 Business Units operate

autonomously within the holding

– 4,400 employees, of which around

50% are overseas

– At home in over 40 countries,

extensive know-how of local markets

and cultures

– More than 1,000 successfully

completed projects

– Around 1 billion Euro sales, more

than 80% coming outside of

Germany

Key Facts – Ferrostaal

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At home all over the world – FerrostaalAlways on site for our customers and our partners

Ferrostaal GmbHHeadquartersEssen, Germany

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Ferrostaal Industrial Projects Ferrostaal Industrieanlagen Ferrostaal Piping Supply

Ferrostaal Automotive Intergrafica Print & PackFerrostaal Equipment Solutions

Our Business Units – Ferrostaal

Wind Power

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FerrostaalIndustrial Projects

• International project developer• Completing plants and installations ranging

from petrochemicals,wind energy, and air technology to other selected opportunities

• More than 60 industrial plants completed in the last 10 years with a total order value of some 6 bn Euro

Our Business Units – Ferrostaal

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Ferrostaal Industrieanlagen

• Plants for oil & gas, processing and mechanical engineering

• From plant component delivery to installation of equipment up to the construction of turnkey production and distribution facilities

• Project management from the resource to the end product

Our Business Units – Ferrostaal

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FerrostaalPiping Supply

• Pipes and piping equipment• For the oil & gas, energy and

shipbuilding industries• Financing solutions, technical

consultation, just-in-time delivery• Tailored just-in-sequence delivery

concepts for EPC customers

Our Business Units – Ferrostaal

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FerrostaalEquipment Solutions• Independent sales and service

partner for standalone machinery and production lines

• Environmental technology/ recycling, packaging machinery, plastic machines, metal processing and laboratory equipment

• Structured export financing

Our Business Units – Ferrostaal

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FerrostaalAutomotive

• Customized solutions for the automotive industry

• Engineering, process development, assembly of entire modules, supply chain management, just-in-sequence deliveries of assembled modules

Our Business Units – Ferrostaal

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Intergrafica Print & Pack

• Leading worldwide sales and service partner for single machines and production lines

• Graphic Arts Industry• Digital Printing Solutions• Consumables

Our Business Units – Ferrostaal

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In 2006 Ferrostaal decides to enter the market for CSP (Concentrated Solar thermal Power) to extend its activities in the renewable energy sector.

To develop and realize CSP-projects successfully Ferrostaal partners with the experienced German developer Solar Millennium

Relates excellently with Ferrostaal expertise for the power block from the conventional power business where Ferrostaal has been active for more than 20 years

History of Renewables – FerrostaalA prosperous combination of two worlds

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Owner : NREA (New and Renewable Energy Authority/ Egypt)

Main Contractor: Orascom Construction

Industries S.A.E. (OCI)Scope: Engineering, Supply,

Construction & Commissioning as well as Operation & Mainte-nance of the Solar Field for2 years

Capacity:

40MW

Completed in May

2011

KuraymatSolar Field within an Integrated Solar

Combined Power Plant Kuraymat, Egypt

References – FerrostaalSolar Power Plants

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Owner : ACS-GroupScope: Subcontractor for Engineering

(Basic & Detailed design), construction and commissioning supervision of Solar Field and HTF-system; supply of Solar Field control system

Scope of SM: Prime Initiator; Project Development

Capacity: each 50 MW

Completed in 2008

Andasol 1 + 2Parabolic Trough Power Plant with

storageGuadix, Spain

References – FerrostaalSolar Power Plants

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Owner : Solar Millennium AG (Prime Initiator/ Project Development)Ferrostaal, Stadtwerke München,

RWE Innogy, RheinEnergieScope: Engineering, Procurement,

Construction, & Commissioning of the Solar Field, HTF-System, Thermal Storage and Power Block as well as Operation & Maintenance of the plant

Capacity: 50MW

Completed in June 2013

Andasol 3Parabolic Trough Power Plant with

storageGuadix, Spain

References – Ferrostaal Solar Power Plants

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In 2009 the management board decides to broaden activities in renewables by entering into the onshore wind market.

South Africa

Mar

ket

s

A market analysis reveals that Chile, Uruguay and South Africa are the most attractive markets for Ferrostaal to start a strategic market entry, in addition to an opportunistic approach.

Uruguay was chosen to develop the first reference project of Ferrostaal called “Melowind”, which is done in cooperation with the reputable and experienced developer juwi.

History of Renewables – Ferrostaal… entering the onshore wind market to expand the green

footprint

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Greenfield Project Developmentjuwi Wind GmbH/ Ferrostaal GmbHFinal Client: UTE (Uruguayan Utility)Scope

Siting incl. micrositing, land securing, TSA and

EPC contractual management

Authority Engineering

Off take Negotiations (PPA) with national utility

company UTE

Financial Structuring (Equity and Debt)

Ownership

Capacity: 50MW

Comm. Operation: exp. 2014

MelowindOnshore Wind Farm ProjectArbolito, Uruguay

References – Ferrostaal Project ready to build, sold in 02/2013 to final investor

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Sainshand Project

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Development of Renewables in MongoliaDespite a short history of promoting Renewables, Mongolia

has created a favorable legal framework

2005 Enacting of The National Program for Renewable Energy, which calls for ambitious targets: increasing the renewable energy share to 3-5% of total gross energy production by 2010 and to 20-25% by 2020.

2007 Implementation of The Law on Renewable Energy, which sets the framework for permitting processes, PPA-terms and tariff-system

2013 The Resolution of Mongolian Government #193 to apply further tax

benefits like exemption of any custom duties or payment of VAT for

wind farm equipments

Release of a Wind Energy Development Roadmap till 2030

whose elaboration has been supported by the Asian Development

Bank

Wind power will be one of five main power sources, and

will meet 17% of national

electricity capacity!

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General Situation of RE in MongoliaA rapidly increasing energy demand calls for alternative

energy resources to be deployed

Total installed capacity of Renewable Energy (2013):

Wind Power 50 MWSolar 1 MWSmall capacity hydro power plant 25 MW TOTAL 76MW

Based on their current roadmap the Government of Mongolia foresees to have an installed wind power capacity reaching :

2025 200 MW2030 502.5 MW2033 1000 MW (to Asian Super Grid)

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Mongolia wind map at 80m height

SainshandOnshore Wind Farm ProjectSainshand, Mongolia

Key Project Data – Sainshand Attractive framework conditions ask for a quick realization

Project Development: Sainshand LLCOff-taker: National state owned power transmission grid company (NPTG)

Location: 15 km north-east of Sainshand city,

capital of Dornogobi province Fixed feed-in tariff of 95 USD/MWh for 20

years Predicted wind speed: ≥ 8,5 m/s at 80m

Capacity: 52MW

Comm. Operation: exp.

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Ownership ImplementationDevelopment

Sainshand LLC, consisting of:

Davaanyam, Gantulga, Bat-Erdene, Gankhuyag, Uyanga (33%)

Ferrostaal Industrial Projects GmbH (67%)

Sainshand LLC holds all relevant project assets, permits and contracts

Sainshand and Ferrostaal

Remaining project development activities like authority engineering, financing (debt/equity), wind measurements, conceptual engineering and contracting of major components will be executed jointly.

1) EPC-M -contractor Turbine Package BoP package (civil, electric)

2) Full EPC (consortium of WEC-manufacturer and BoP-contractor)

The project’s construction shall be executed by third parties, whereas the WEC-manufacturer has to play a key role.

Project Structure – SainshandClearly defined interfaces will guarantee for a successful

project realization

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PPA with off-taker NPTG has been signed as per 06.12.2011

2 years wind measurement results at 20m height are available

A bankable wind measurement campaign at 80m height has been initiated as per November 2013

All permits achievable at this stage have been granted e.g. EIA, permit to install a wind park, etc.

Land has been secured for 15 years with the option to extend the contract for another 40 years

Grid connection to existing substation from Sainshand at 4,5km distance has been secured with PPA

signature

Discussions with turbine suppliers and BoP contractors for the wind farm’s main components/ work

packages have been initiated

Sainshand – Project Status… waiting to become Mongolia’s 2nd large scale wind farm online

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3/201512/2014 10/2016

Financial Close (FC)

Start of construction works (civil, electric and erection of WECs)

Commissioning of wind farm

Sainshand – Envisaged Time Schedule

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Thank you for your attention!

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