borawind ag Proprietary Hydrostatic Drive Technology

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borawind agProprietary Hydrostatic Drive
Technology
19/20 March 2009, Monaco
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Disclaimer

• This document contains statements that constitute
  forward looking statements. These statements
  appear in a number of places in this document and
  include statements regarding the intent, belief
  or current expectations, estimates regarding
  future growth in the Wind Power industry and the
  global business, market share, financial results
  and other aspects of the activity and situation
  relating to borawind AG (borawind). The forward
  looking statements in this document can be
  identified, in some instances, by the use of
  words such as expects, anticipates,
  intends, and similar language or the negative
  thereof or by forward looking nature of
  discussions of strategy, plans or intentions.
• Such forward looking statements are not
  guarantees of future performance and involve
  risks and uncertainties and actual results may
  differ materially from those in the forward
  looking statements as a result of various
  factors.
• Analysts and investors are cautioned not to place
  undue reliance on those forward looking
  statements which speak only as of the date of
  this document. borawind undertakes no obligation
  to release publicly the results of any revisions
  to these forward looking statements which may be
  made to reflect events and circumstances after
  the date of this presentation, including, without
  limitation, change in borawinds business or
  acquisition strategy to reflect the occurrence of
  unanticipated events.
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Summary - Profile
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Profile borawind ag

• Swiss Renewable Wind Energy Company
• Focus on building a portfolio of innovative Wind
  Power Technologies
• Operational unit Nordwind Energieanlagen GmbH
  Neubrandenburg, Germany
• Disruptive Hydrostatic Drive Technology for Wind
  Turbines to be launched 1HY09
• Rapid Market Entry through JV in China
• First Revenues in 2008 2.6 Mio Euros
• Frankfurt, Open Market ISIN CH0033145886
• Stock market Symbol 5BW

Building a strong portfolio of innovative wind
technologies and value added applications
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Strategy

• We have different and superior wind turbine
  technology for specific markets
• Decentralised power production
• Stand alone (Off-grid)
• New value added applications for Wind Energy
  production and use
• Launch and Marketing
• Hydrostatic Drive as a distinctive technological
  advantage in Wind Power Technology
• Superior two-blade rotor technology and design
• 850kW / 1MW wind power plants (WPP) for on/off
  grid, decentralised energy supply
• Initial sales focus on Asia
• High growth rates for wind power applications
• Strong investment appetite for renewable energy
  infrastructure
• Untapped markets for decentralised energy
  production, supply and storage

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Milestones

• 2HY 2008
• Nordwind has received down-payments of 2.6
  million Euro from Chinese JV for purchase of
  hydrostatic drives
• Euro 4 million capital increase
• 1HY2009
• Hydrostatic drive Technology development
  completed
• First Hydrostatic drive turbine installed in
  Northeast Germany
• Extensive ongoing Field Tests
• First order intake
• 2HY 2009
• Market launch
• Start of production of wind turbine assembly,
  blade andtower manufacturing plant in
  Neubrandenburg with a production capacity of up
  to 200 MW p.a. (app. 200 turbines)
• Start of production in China (Dafeng)

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Customer and Investment Pipeline

• China
• 20 WPP for 2009 (depending on start of
  production)Production mainly sold to local
  Chinese government
• Australia
• Initial potential of 11 turbines from Tasmania in
  final negotiation (visit by Nordwind team March
  20th)
• 100 turbines potential over 3 years in Australia
  / Tasmania / NZ
• Germany
• Wind park with 30 MW planned in Mecklenburg
  Pomerania, as part of the new Nordwind company
  development
• Berliner Wasserwerke (Berlin Water Utilities)
• Russia
• 3 x 150 WPP for existing client in Kamkatcha
• US
• North Dakota Option on land for 2 x 150 MWwind
  farms
• Discussions with 4-5 Indian Reserves

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Technology
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Innovation
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Nordwind Energieanlagen GmbH
Profile

• Development, manufacturing and installation of
  proprietary wind turbines
• Operation, maintenance, repair and replacement
  services for wind farms
• Initial sales through joint ventures
• Based in Mecklenburg-Western Pomerania, Northeast
  Germany
• Today 24 employees

Product/Technology

• WPPs with two-blade rotor, proprietary
  hydrostatic drive train technology
• 15 / 30 kW
• 150 / 300 kW
• 850 / 1000 kW
• Development of larger concepts up to 3.3 MW are
  under evaluation

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Hydrostatic Drives no more Gears
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Hydrostatic Drive vs. Mechanical Gear Box
Hydrostatic Main Drive
Advantages of Nordwind
Conventional Mechanical Gear Drives

• No primary flaws
• Absolute avoidance of overloads predictable
  life cycle
• Direct network connection
• No premature destruction of components

• Roller bearings in the gears are a built-in
  weakness
• Unavoidable Overloads make life span difficult
  to predict
• Only indirect network connection with power
  electronics
• Premature destruction of gears is a significant
  risk
• Leading turbine required for network coupling
• Power output control is only possible with
  control of the pitch angle

• No gear problems
• Defined system loading
• True power plant capacity
• No leading turbine required
• Capable of parallel and stand alone network
  operation
• Cost advantage due to1. lower material
  consumption2. lower repair costs and3.
  decreased maintenance

Hydrostatic drives no more gears
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History Next milestones

• Build own assembly / production facility in
  Northeast Germany for turbines and blades
  (850/1000 kW capacity 200 MW p.a. 300 staff)

2009 / 2010

• Integration
• Plant in China to start production

H1 2009

• Finalize prototypes for 150 kW/850kW
• Certificate by technical inspection authorities
  (Dewi-OCC www.dewi-occ.com )

• Building Phase
• Build and test hydrostatic transmission and
  control systems as well as critical components
  from 3rd parties

H2 2008

• Planning Development
• Detailed business concept and production
  (procurement, production, outsourcing, IT)

H1 2008

• Research
• Cooperation agreement with Hägglunds AB, a world
  leader in hydrostatic transmission, and Hydac
  (fluid engineering)
• Successful presentation of 850kW turbine at Wind
  Fair Shanghai

2007
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Superior Turbine Technology
Description
Advantages
Components

• Gearless fluid drive with positive transfer of
  energy between the rotor and electro-generator
• Performance limitations possible through volume
  flow changes of the hydrostatic drive

Hydrostatic Main Drive

• Less angular momentum
• Automatic limitation of force and torque
• Defined loads

• Synchronous generators with rotor independent,
  constant rotational speed
• Can be coupled directly to the grid or user
  without power electronics or converters
• Capable of black (self) starts, grid creation and
  support implemented in both, parallel and
  stand-alone operations.

• Basic requirements for true power plant capacity
• Low maintenance
• High reliability
• Excellent cost / performance ratio

BrushlessSynchronous Generators

• State-of-the-Art two-blade rotor design
• rotor blades with performance enhancing and noise
  minimizing blade profiles
• Integrated lightning protection

• Low structural burden
• Higher degree of efficiency
• Cost savings

Two-blade Rotor

• Azimuth drive system with application of smaller
  components with defined durability
• Scheduled preventive maintenance after projected
  hours of operations or according to findings
• Avid torque supports the drive by adjustment

Preventive Maintenance

• Lower production costs
• High operational reliability
• Clearly defined, calculated life span of the main
  components

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MarketsThe Chinese appetite
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Fast Growing World Market
Installed Capacity by 2012
Forecast for Wind power DevelopmentInstalled
Capacity 2007 2012 worldwide
MW

• Market Volume at the End of 2009 117 MW
• According to predicted average annual growth
  rates of ca. 22.5, by the end of 2012 the market
  volume will increase by a factor of 2.5
• The largest markets within each region are
  Germany (22,247 MW), and Spain (15,145 MW) in
  Europe, the USA (16,818 MW) in North America and
  India (7,845 MW) and China (5,906 MW) in Asia
• By 2012, China plans to possess 66 GW in wind
  energy capacity

1 Source World Market Update 2007 BTM Consult
ApS, March 2008
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Competition

• You know the main big wind playersVestas, Ge
  Wind, Gamesa, Enercon, Suzlon, Siemens Wind Power
• We are in a different market1MW and smaller,
  access to remote areas (i.e. islands) unique
  technology off grid, decentralized
• Big niche for our technology

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Rapid Market Entry Strategy

• Untapped billion dollar niche market for 150 -
  1000 kW (1 MW) on- and offgrid windturbines
• Focus on high growth, highly scalable
  product-and performance segments
• Focus on fast growing emerging markets
• Enabling new applications for off-grid /
  stand-alone energy production

First sales from JV China
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China Market Opportunity
Installed Capacity China 2005-2012

• Annual energy consumption growth has exceeded
  10 over the past 5 years
• With 12.2 GW installed China ranks 4th in the
  world
• 2nd-fastest growing wind country in 2008, after
  U.S.
• Expected to be No.1 wind power country by 2015
• Govt mandate 30GW by 2010 100GW by 2020
  (requires 267B investment in wind)

MW
Source World Market Update 2006 BTM Consult
ApS, March 2007
China is considered the largest potential wind
market in the world
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Nordwind is already present in China

• JV with 50 participation of Nordwind created in
  2006 in Dafeng, North of Shanghai
• Second JV under negociation (Inner Mongolia)
• Production site under construction with an
  initial annual capacity of 200 wind turbines
  (850/1000 kW) serving the Asian, mainly Chinese
  market
• Plant near Shanghai to start production of 850 kW
  units in Q2 2009 (200MW p.a.)

Dafeng, ChinaJV Jiangsu Futiannordwind
Energyresources Equipment Co. Ltd
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Sales Plan Europe and China
Sales Plan In Numbers - Europe
Sales Plan in Numbers - China
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Corporate
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Shareholder Structure
Current Shareholder Structure
Share Information

• Total shares in issuance today 24,5 Mio.
• Market Cap 8.20 Mio. EUR
• Capital Increases in 20084.05 Mio. CHF proceeds
• Share price 52W high 1.94 / low 0.35
• Stock Symbol 5BW (Xetra, Germany)

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Financial Overview (IFRS)Nordwind is not
consolidated, participation only
Does not include EUR 2.6 Mio. downpayment from
China JV
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borawind AG Board Management Team
Klaus Krone Chairman borawind ag
Khaled Suleiman Member of the
Board borawind ag
Francois Burnand CFO borawind ag
Andreas Schweitzer Vice Chairman borawind ag
Dr. Metin Colpan borawind ag

• Chairman of borawind ag
• Owner of the Krone Management Technology GmbH
  Co.
• Holds supervisory board mandates in renowned
  companies as Axel Springer AG
• President of the Krone AG

• Founder of borawind ag
• Private Banking at A. Sarasin Cie
• Managements functions at Jacobs Suchard AG
• Asset Manager at Kenk Schweitzer Associés

• Board member to be elected borawind AG
• Co-founder of QIAGEN
• Chief Executive Officer Managing Director from
  1985 through 2003 of Qiagen
• Prior to founding QIAGEN, Assistant Investigator
  at the Institute for Biophysics at the University
  of Dusseldorf

• Member of the board borawind ag
• General Manager Global Head of Private Banking
  of National Bank of Abu Dhabi(Suisse) Private
  Bank SA

• CFO of borawind ag
• Founder Associate of Alternance Direction
  Financière SA
• CFO of Baumgartner Holding SA
• CFO of Fragrances Resources Group (Germany based
  Gerberding Group)
• Financial Manager at Charmilles Technologies

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Offering

• we have different technology
• we can attack a big market, others cant get to
• Today we have
• manufacturing in China
• assembling in Germany
• term sheet on the table
• We move from Development to Manufacturing
• we are in the  term sheet  state
• total of EUR 20 MM expansion funding which is
• matched with EUR 25 MM non-refundable grant from
  German State of Mecklenburg Pomerania
• Expand investor base

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Thank you very much for your Interest
Contact
Andreas Schweitzer borawind ag Seestrasse
1 as_at_borawind.ch CH-6330 Cham Tel 41 22
716 54 09 www.borawind.com