1. Energy efficiency and CDM potential STERN goes Green

2. STERN Green Business focus STERN End to End Solution STERN End to End Solution Energy efficiency Consultancy Energy efficiency Consultancy Green Technology provider Green Technology provider CDM Carbon Buyer and Developer CDM Carbon Buyer and Developer Finance Communication Technology for offshore projects Communication Technology for offshore projects Main Business Main Business Supporting Business Units Supporting Business Units Iron making Solar Bio mass others Iron making Solar Bio mass others

3. We Offer Energy efficiency & CDM Future CDM potentials Economical Ecological CSR

4. CDM

6. CDM Abbreviation UNFCCC = United Nations framework Convention on Climate Change CDM = Clean Development Mechanism EB= Executive Board REDD = reduced emission from deforestation and degradation DOE= Designated Operational Entities DNA= Designated National Authorities CER= Certified Emission Reduction HFO = Heavy Fuel Oil CEF = Carbon Emission Factor EUA = European Union Allowances PIN= Project Idea Note PDD= Project Design Document CPA= CDM Project Activity DNA= Designated National Authority (KLH in Indonesia) DOE= Designated Operational Entity - Validation LOE= Letter of endorsement LOA= Letter of approval PoD= Payment on Delivery ETS= Emission Trading scheme

8. About the CDM Clean Development Mechanism The CDM Came into force on February 16, 2005 Reduce emissions of green house gases by 5,2% below 1990 Total Demand for Green House Gases (GHG) Reductions (ratifying countries): ~5 to 5.5 billion Ton CO2 by 2012 The Kyoto Protocol has Created Particularly economical and financial Mechanism to achieve the Target of the emission reduction

9. Feasibility of potential Clean Development Mechanism(CDM) The Eco World Certification will be able to identify a CDM potential of the corporate company during the implementation process Any CDM potential will bring new opportunities regarding productivity efficiency ( lower your COGS ) in combination with energy efficiency Any Eco World and CDM Potential brings you to another financial opportunity, because of CERs hedging

10. Potential of Clean Develop Mechanism The Kyoto Protocol creates through the CDM ( Clean Development Mechanism) a unique investment opportunity in developing countries to benefit from the global environmental Commitment from Industrialized Countries The CDM focus on one particular Technical process within the company The CDM will improve the IRR % of the project and makes it financially more feasible Certified emission reduction can also function as a payment guaranty The CDM provides many Financial Solutions to overcome the investment barrier

11. Europeans Top Ranking Carbon Buyer One of Europeans best Performing Carbon Buyer

12. Orbeo Rewards Carbon Buyer Certified Emission Reduction (CER) buyer ORBEO from Europe A joint venture between two established French Companies Societe General and Rhodia with equal shares

13. Iron & Steel Industry Solar energy, Thermal Urban waste fermentation Palm Oil Plantation and Processing Technology Geothermal Hydro Power Wind Power Green Technologies

14. Investment Potential PROJECT Finance PROJECT Finance Identify potential CPO Hydro Power 3 rd Party investment In house Finance Equity Partner Equity Finance Mezzanine Finance Consortium Debt loan 20 years Bonds EQUITY DEBT IRON MAKING Finance Geothermal Bio waste Flaring Programmatic Solar CER Hedging

15. DEG, Germany Societe General KFW, Export Credits from Germany CIMB, Khazanah YTL, Malaysia Potential Equity Partners Financial Links

16. Energy efficiency the first step to CDM

17. ECO WORLD CERTIFICATION Impacts Energy Efficiency within the entire organization Reduce the overall energy consumption to participate in the energy crises Ecological impacts to the environment Reduce GhG (Green house Gases) Conserve your environment and do not use harmful chemicals Economical Growth & Profit All Efficiencies have a positive economical impact Self sustainability of the Management Quality Management and Systems To deliver A+ products and services always at the same levels Sub suppliers should apply to the same standards Corporate social responsibility and Safety Interact and Strengthen your relationship with the local government and surroundings Marketing Tool In order to get the full value out of green practices over time, companies need to let the public know what they are doing and why it matters.

18. What is ECO WORLD Eco World is the not Generic like the ISO 14001 certification but very specific Eco World is the basic step into emission savings and the identification of a Clean Development (CDM) potential Eco World will establish fundamental tools for advanced management & Communication leadership and Energy Efficiency Increase the productivity with a proper asset management Eco World helps you to re-identify and the re-establishment of the corporate identify and social obligations Eco World is a marketing & public relation tool Eco World will improve your IRR, NPV, increase in sales, stronger market positioning and increasing profits

19. Strategic Corporate Social Responsibility & Safety CSR are now deductable from Taxes Improve strategic social relationship with the local government and the people living within the area Create a program for the people from the people Establishment and monitoring of the social activities together with the local government Create awareness within the employees and use it as a public relation tool to strengthen your position within the local Government Programs and Status Reports to be submitted to the Top management for approval and notification matrix

20. Benefits from Energy Efficiency & Green Practice Reduce energy and production cost of the group/ company Improve environmental performance and reduce greenhouse gas emissions Reduce exposure to rising energy prices and energy shortages Improve productivity and product quality Improve reputation with customers, government and public Improve staff health, safety and morale Improve compliance with legislation and ISO 14001 targets Improves Costing and increases Profit Margins Improve your Marketing & Public Relation campaigns Improve the Corporate’ s image Win new customers who consider environment as an important selection criteria

21. Marketing & PR

22. Green Marketing & PR Green marketing and public relations becomes a global corporate issue for their image and corporate identity It can positively differentiate companies from their competition It provides an edge that delivers increased sales, visibility, customer loyalty, enhanced company image and positive media coverage There is a need to continue to educate not only clients but the public at large about sustainability and its benefits.

23. Strong Assessment Structuring & Impacts

24. Areas of potential Energy Efficiency Office / Buildings Manufacturing processes Production Hall Ware houses Power Supply Common Area Waste Recycling Supporting Facilities Main Facilities Generator Steam/ pressure Heat Potential Efficiency Better isolations Less Leakage in processes More efficient technology Effective lighting Better Management Identify Losses and qty Reason of Losses/leakage Provide solutions Provide alternatives Identify leakage Investigations/ workshop Alternative Energies Profit Transportation Safety/ Social Environment and social friendly Legal & company requirements Identify processes Conveyers Heavy equipments Suppliers Identify Assets/areas

25. The Chain Impacts of Energy Efficiency IT STARTS WITH YOU Are YOU aware ? IT STARTS WITH YOU Are YOU aware ? ECO WORLD Financial/Asset Impact Financial/Asset Impact Marketing Impact Marketing Impact Environmental impact Environmental impact Social Impact Social Impact Profits Financial support Financial support Development Of Methodologies & PDD Development Of Methodologies & PDD Carbon Buyer Carbon Buyer yes CDM Potential Growth & Conservation Advantages against Competitor Management Impact Management Impact

26. Cooperate Strategy Repositioning POSITIVE COMPANY REFLECTION Finance Asset Management Asset Management Maintenance Controlling Maintenance Controlling TAX Benefits TAX Benefits IRR Increases =Cash Surplus IRR Increases =Cash Surplus Newest Technology Newest Technology increase NPV More Cost Efficient More Cost Efficient Economical & ecological Minimize Tax paid Less Fraud Re-investment strategy Re-investment strategy Depreciation Policy – e.g. Leasing Depreciation Policy – e.g. Leasing Overheads Decreases e.g. PO Overheads Decreases e.g. PO Management Improvements Management Improvements Good Transparency Good Transparency Energy efficiency Communication Create a Positive work environment with clear guidelines and new career potentials Quality Oriented Strong Corporate Strategy New Marketing and Public Relation Tools for new Market approach = Repositioning More competitive and transparent a good basic to react fast Purchasing Re financing Purchasing Re financing Measure in PROFIT Suppliers comply to the standard

27. How to implement ECO World Second Step Implementation stage Second Step Implementation stage Third Step ECO Certification Program Third Step ECO Certification Program IMPLEMENTATION STAGES 2 Months 1 week First Step Gap assessment First Step Gap assessment 14 Days Identify Potential CDM List of potential Programs List of potential Programs

28. We hope we can HELP YOU Thank You