1. 1 Wind Power - An Investor’s Perspective Short Term Profit and Long Term Value Gavin Smith Dragon Capital Clean Development Fund

2. 2 Specialist Financial Investor – Development Partner 2 Renewable Energy Wind, Solar, Hydro, Biogas… Energy Efficiency Buildings, and Industrial, Conservation Water Supply and Wastewater treatment 3 main sectors Key investment terms Investment size: $1-7 million Holding period: 7+ years Significant minority interest (20-49%), with board representation Fund size: up to $100 million Targeting Vietnam, Cambodia, Laos, etc Type of securities: ordinary shares, preferred shares, convertible debt, debt instrument Target return: 20% IRR

3. 3 Process/Legal Wind Project Critical Elements (1) 3 Development Experience Sponsor’s Capital Proof of Wind Resource Wind Farm Design/Turbine Selection EIA Land License Technical/Financial 30 Year Financial Projection Debt

4. 4 Special Priorities for a Financial Investor 4  Exit (Structure is, Saleable, Consistent, Tax Efficient)  Engineering and Design Excellence – with a 30 year view  Environmental/Social Impact Assessment and Management  Partners…. With Strategic Goals like yours  Cost of Debt and Impact on IRR, Fees $? Conditionality?

5. 5 Where is the Risk and Who manages it? 5 Pre- Development DevelopmentConstructionOperation Local Partner Technical Partner Local Partner Development Partners Technical Partner Development Partners Local Partner Owners Engineer is the Technical Contractor EPC Contract Development Partners O&M Contract $0.15m$1m$45m $0.15m$1m$15m Scale of Risk 6 months1 year 30 year Total Cost Project life COD Financial close Task Manager Equity Capital 30MW example

6. 6 The Development Partners we want 6 Experienced in Project Planning, Analyzing Data Have a 30 year vision of High Performance Have capital to co-invest Understand our need to Exit at year 7 – 8 Ambitious to Grow and Repeat the Project Understand Short-Term Profit and Long-Term Value

7. 7 Long Term versus Short Term Capacity (MW): 30 Factor (%): 30 Year in operation: 30 Cost per MW (USD): 1.5 Total project cost (m USD): 45 Debt (%): 70 LT debt rate on VND (%): 12 Debt term (year): 9 VND depreciation (%/year): 3 7 (2,244,395) USD 2,433,336 USD 64,401,469 USD Cash flow after tax and debt payment

8. 8 Critical Issues for an Investor 8 Technical Discipline – 100% quality commitment to the wind data Suppliers – strong finances, local resources, wide scope of services Partner Selection is Critically Important Short Term Profit and Long Term Value

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