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EAM Solar

Investor Presentation Mar 11, 2015

3583_iss_2015-03-11_450bedf4-e8ac-4871-a159-1ed0d3d919f6.pdf

Investor Presentation

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EAM SOLAR ASA SHAREHOLDERS INFORMATION MEETING

11th March 2015

  • EAM platform and growth trajectory July 2014
  • EAM platform status
  • Criminal investigation process
  • Involved parties
  • Process from 23rd of July until today
  • Triggers and actions Q2'2015
  • Q&A session

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  • Platform 15th of July 2014
  • Consummation of P31 acquisition
  • Project Star in due diligence and SPA drafting mode
  • Project Grape in binding term-sheet mode. Negotiation with same advisory team as Project Star
  • Normalized dividend yield from platform including P31 acquisition in the range NOK 10 to 14 per share over time.
  • Star and Grape negotiations has been stopped.

Grape Star ENS4 ENFO14 AGI ESGP EAM Solar Italy Holding Srl FY'2014P31 FY'2014A (P21) Difference Revenues 19 483 618 13 929 095 5 554 523 EBITDA (SG&A) 11 069 813 9 713 445 1 356 368 Acquisition & transaction costs -1 312 433 -1 312 433 0 EBITDA 9 757 380 8 401 012 1 356 368 Depreciation -4 806 411 -4 663 128 -143 283 EBIT 4 950 969 3 737 884 1 213 085 Pre tax profit 2 389 974 1 176 889 1 213 085

EAM portfolio in MW (purchased and in execution mode)

ESGI

ESSP

ENFO25

ENS1

EAMS3

EAMS1 & 2

    1. EAM Solar Italy Holding II fully operational and no debt.
    1. EAM Solar Italy Holding I with 21 power plants of which 17 is affected by FIT suspension and EUR 9m in seized cash. EUR 9.7m in prospective revenues of which EUR 2.4m currently is received.
    1. Main focus for EAM now is to restore cash flow and values.

Precautionary measures based on initial investigation decided 8th July 2014

Executed the 21st of July 2014

Final investigation delivered the Criminal Court of Milan on the 5th of February

Next step is a hearing – date to be decided

EAM expect to receive documents and evidence in the case following the decision on the hearing date

Corporate entities Affected SPP's
SPV's SPP's Affected
SPP's
Project
Code
GSE
number
CE Yes/no
No. No. No. Name No. No. No. No. No. No.
EAM SPVs
7 21 17 17 15 1 1
Energetic Source Green Power Srl 1 7 7 SPV2 (ESGP) 7 7 0 0
Energetic Source Green Investment Srl 1 3 3 SPV3 (ESGI) 3 3 0 0
Energetic Source Solar Production Srl 1 5 5 SPV4 (ESSP) 5 5 0 0
ENS Solare One Srl 3 5 1 SPV5 (ENS1) 1 0 0 1
Aveleos Green Investments Srl 1 1 1 SPV6 (AGI) 1 0 1 0
Energetic Source Green Power Srl 1 7 7 SPV2 (ESGP) 7 7 0 0
Selvaggi 1 1 015 248818 II 1 1
Di Mauro 1 1 016 244581 II 1 1
SCN - Ninivaggi 1 1 017 244064 II 1 1
Lomurno 1 1 018 244438 II 1 1
Giordano 1 1 019 241258 II 1 1
Cagnazzi 1 1 020 240757 II 1 1
Gentile 1 1 021 247899 II 1 1
Energetic Source Green Investment Srl 1 3 3 SPV3 (ESGI) 3 3 0 0
Lorusso 1 1 022 235482 II 1 1
Cirasole 1 1 023 237777 II 1 1
Scaltrito 1 1 024 213260 II 1 1
Energetic Source Solar Production Srl 1 5 5 SPV4 (ESSP) 5 5 0 0
Pasculli 1 1 025 231403 II 1 1
Pisicoli N. 1 1 026 200371 II 1 1
Pisicoli Teresa 1 1 027 200316 II 1 1
Marulli 1 1 028 231801 II 1 1
Antonacci 1 1 029 216677 II 1 1
ENS Solare One Srl 3 5 1 SPV5 (ENS1) 1 0 0 1
Lorusso 1 N.A. 031 236482 IV-P 0
Brundesini 1 N.A. 032 610784 IV-P 0
Scardino 1 N.A. 033 611918 IV-P 0
Energia Fotovoltaica 14' Societa Agricola Arl 1 1 034 600593 IV-P 1 1
Energia Fotovoltaica 25' Societa Agricola Arl 1 N.A. 035 600287 IV-P 0
Aveleos Green Investments Srl 1 1 1 SPV6 (AGI) 1 0 1 0

Piangevino 1 1 030 539347 III 1 1

Enovos & Avelar (Seller's):
Aveleos S.A. (Luxembourg) a subsidiary of Enovos (60%) with Avelar as minority shareholder.

Established 2010 with purposes of building for sale PV power plants

No employees or operation, function as an investment vehicle governed by the Board
GSE (Gestore Servizi
Energetici):

GSE is the customer (purchaser of electricity produced) and the institution responsible for approving
the FIT-contracts.

Approved the FIT contracts for the Conto
Energia II (built in 2010) in 2011 and has paid the FIT until
July 2014.
Aion (EPC contractor) & sub
contractors:

Italian based company responsible for the construction and delivery of the power plants. Currently
non-operational and assets only consist of cash managed by a court appointed bankruptcy receiver.
UniCredit & UBI Leasing:
(financing banks)

UBI Leasing entered into a leasing agreement in September 2010 for 10 affected power plants (ESGP
& ESGI). Assumed legal ownership of the power plants in November 2010.

UniCredit project finance entered into project financing facilities for ESSP in 2010.
Other parties:
Other relevant parties with responsibility to be determined pending the final outcome of EAM's internal
investigation and the documentation to be received form the Criminal Court of Milan

PROCESS FROM 23/7/2014 TO TODAY

July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015
15th Closing and
payment of P31
24th News of arrests of
Avelar Directors
25th FIT contracts
change status to
suspended on GSE
portal in the afternoon
27th preparation of legal
actions against GSE and
suspension measure
started
28th Preliminary criminal
Indictment documents
received
31st Claim notice to
Sellers filed of Minimum
EUR 200m
Internal investigation with
6th Injunction motion
against Aveleos
prepared in Luxembourg
18th Injunction filed in
Court of Luxembourg
19th Meeting with
Renova/Avelar in Zurich
19th Court of
Luxembourg approved
injunction of EUR 33m
Work for release of
seized funds started
1st EAM effectuated
seizure of Aveleos bank
accounts in Luxembourg
15th EAM criminal
complaint process with
Criminal Court of Milan
formally initiated
24th Meeting between
EAM and Enovos/
Renova/Avelar in
Copenhagen
30th Meeting Sellers for
standstill agreement
discussions
11th Standstill agreement
negotiated
16th petition filed to
Administrative Court
(TAR) in Rome for
annulment of GSE FIT
suspension
17th Standstill agreement
put in force
23rd Revised suspension
notice received from
GSE
24th Meetings with GSE
and UniCredit conducted
30th First TAR hearing
conducted. Decision to
postpone hearing due to
GSE revised suspension
notice
3rd technical report
internal investigation
delivered
Request and filing to
Aion and Helios
bankruptcy for access to
documents
Investigation and fact
finding continues
18th TAR rules in favor of
GSE to continue FIT
suspension. EAM files
appeal with higher court
(State Council)
1st EAM enters into new
market electricity sales
contracts. January
production payment to be
received in mid March
(55 days)
27th The state Council
rules that the GSE
suspension measure is
unlawful and
consequently not valid,
and orders TAR to
conduct a hearing as
soon as possible on the
merits of the case. EAM
issues invoices for
suspended FIT and
withheld RID
5th Prosecutors office
files final investigation to
the Criminal Court of
Milan
Release notice of EUR
3,2m in favor of EAM
issued by the Court of
Milan
11th EAM receives a
court ruling giving EAM
access to all files of the
AION bankruptcy estate
advisors initiated 31st GSE cancels RID
contracts from 1st of
January 2015

Next main trigger event is to receive the evidence in the case from the Criminal Court of Milan

Meeting with Municipalities and landowners in South Italy week 12 Planned and ongoing legal and commercial processes;

GSE must either resume payments or annul the FIT contracts. Annulment will be challenged in the Administrative Court (TAR) and GSE must provide conclusive evidence of FIT fraud. 1) GSE (ongoing)

EPC contractor may be in breach with EPC contract responsibilities and consequently liable for this breach. This

2) EPC contractor (pending trigger event)

will be followed up following receiving evidence from the Criminal Court of Milan. Standstill agreement still in force. Decision on next steps will be taken following trigger event. Completion of Claims and Damages report expected in April 3) Seller settlement agreement or lawsuit (timing to be decided)

TBD 4) Additional lawsuits to be decided following information received from Criminal Court

In progress and continuously discussed in the Board of Directors 5) EAM continues to develop new strategic options and business opportunities

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