| 1 Anshan 2015 – A world leading low carbon District Heating system

| 2 Anshan 1.8 million residents living in Anshan today One of the cities in Liaoning Province in North-Eastern China with the largest population growth – the city attracts between 20,000 – 50,000 new residents every year Heating area: 53 million m2 Installed capacity: HOB: 2050 MW Steel Plant: 1000 MW Annual heat demand: GWh Separated networks

| 3 District energy – a key infrastructure to realize energy efficiency District Heating system in Anshan, Liaoning being developed to most advanced technology level available District Energy – Development

| 4 Anshan 2015 World-class heating and energy efficiency project A transmission line utilizing surplus heat from CHP and steel plant and the geo-thermal sources The existing boilers will be used for peak load only Domestic Hot water via district heating system Modern district heating infrastructure Close cooperation with Anshan City Government, Angang Steel and Qianfeng District Heating Company 240 million tons C0 2 reductions a year Massive reduction in coal usage (60-90%)= Savings for the city Better air quality for all Payback: less than 3 years

| 5 Turning Anshan into a world-leader within District Heating 12 month District Heating supply, DHW, industry surplus heat utilization, geothermal sources, pooled networks 2013: New district heating transmission line in operation: Directing the first 200 MW of surplus heat from Angang Steel into the district heating network 2013: First DHW users (flat stations) 2014: Connect additional heat sources to transmission line

| 6 Enormous potential in China for Danfoss Danfoss District Energy is developing the market Regional sales Focus on Liaoning Province Potential for many Anshan like projects for Danfoss Your project is the most promising project I have heard about in the last many years. This is a milestone in the development of Anshan city. Mr. Chen, Governor of Liaoning Province

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