1. March 5, 2012 Miles M. Kubo Executive VP/ COO Rebuild Hawaii

2. Energy Economics

3. Energy Projects Men are from Mars, Women are from Venus Engineers Accountants

4. Time Value of Money Discounted Cash Flow Analysis (DCF) Internal Rate of Return (IRR) Net Present Value (NPV) Capital Budgeting Sources and Uses of Cash Arbitrage of Energy (In)efficiency Corporate Finance Principles

5. Financial Options  Services Agreements  UESC - Utility Energy Services Contracts  ESPC - Energy Savings Performance Contracts  ESA - Efficiency Services Agreements  PPA - Power Purchase Agreements

6. Financial Options  Financing Vehicles  Term Loan  Capital Leases  Operating Leases  Tax Lease/True Lease  Sale Leaseback  Municipal Bonds  Municipal Leases  Financing Programs  Asset Based  Project Finance  Structured Finance  Loan Guarantees

7. Financial Options  Incentives  BPF Rebates  EPAct 2005/2008  ARRA 2009  Section 179 Deduction  Fed / State Solar ITCs  Bonus Depreciation  USDA Reap Grants  Institutions  Banks  Leasing Companies  Credit Unions  Trust Funds  SBA  State Agencies  ESCOs

8. Financial Leverage Credit Facilities  Term Loans  Extensive Credit Review  Covenant Restrictions  Additional Collateral  Personal Guarantees

9. Financial Leverage Credit Facilities  Capital Lease  Simplified Credit Review  $1 “Buyout” at End of Term  Balance Sheet Transaction  No Collateral or Guarantees

10. Financial Leverage Credit Facilities  Operating Lease  Monthly Expense – IRS Test  Fair Market Value Residual  Off-Balance Sheet Transaction  No Collateral / Guarantees

11. Financial Leverage Credit Facilities  Municipal Lease  State / County / City / Nonprofit  Tax Exempt  Non-appropriation Clause

12. The Ohana Waikiki Malia Hotel Project Replaced: Chillers Condenser Water Pumps Chilled Water Pumps Hot Water System Booster Pumping System Lighting Added: Variable Frequency Drives Energy Management Control System System Redesign for Redundancy $750,000

13. The Ohana Waikiki Malia Hotel Project

14. Financial Summary Mo. Energy Saving: $10,000 per month Mo. Lease Payments: $ 9,000 per month Mo. Net Cash Flow: $ 1,000 per month Utility Incentive: $20,000 once Upfront Cash Needed: $0 Upfront Cash Needed: $0

15. Miles M. Kubo miles.kubo@energy-industries.com THANK YOU