PhotoSolar A/S Transparent architectural solar shading

Agenda

1.Introduction

2.The problem and products

3.MicroShade™

4.Market size and dynamics

5.Strategy

6.Management

7.Funding Requirements

Project Snow - strictly confidential - copy to Polaris Private Equity Cleantech Forum Munich, April 17 2012 Alistair Higgins CEO

MicroShade™: a transparent

high performance solar shading

film integrated inside glazed

facades

2. The problem and products

Overheating buildings

Solar shading essential in non-residential sector

For comfort

For energy saving

For compliance

Complex

Unattractive

Poor view out

Maintenance

Façade clutter

High winds

2. The problem and products

Existing Deficient Solutions

Complex

Dirt and damage

Maintenance

Cut the heat

Cut the light

Cut the view

Façade clutter

Wind damage

Simple

Modern and clean

No maintenance

Cut the heat

Keep 75% of light

Keep the view

Frees the façade

Immune to wind

3. MicroShade™

High performance transparent shading at a lower cost

Multiple Legacy

Systems

Project Snow - strictly confidential - copy to Polaris Private Equity

3. MicroShade™

Better and less expensive than conventional solutions

MicroShadeTM MicroShadeTM Coated glass + A/C Shades + coated glass

Embedded solar shading Coating on glass Exterior blind or screen

Thermal efficiency

Beam shading

Maintenance and cleaning

Wind stability

Simultaneous outlook and shading

G-value (typical range) 0.09 to 0.14 0. 26 to 0.42 0.10-0.20

Investment costs (€ per m2

glass unit)

Total investment costs 500 570 500

Total running costs (€ per year) 0 29 30

Total costs (5 years) (€/m2) 500 715 650

3. MicroShade™

How it works

Built into the insulating glazing

The strips consist of a large number of

small angled perforations

The strip is less than 0.2 mm thick steel

IP protection in place

A patented micro lamella structure ...ideal for all glazed façades

Unique

simultaneous

shading and

transparency

Clear view

Natural colours

Weather-resistant

No R&M

Architectural

freedom on facade

Solar irradiation from

high angle is

reflected

Irradiation from low

angle passes

through the

perforated film

Direct solar irradiation

is shaded

MicroShade™ layer

encapsulated between

glazing panes

3. MicroShade™ Power

Second generation with solar cells

MicroShadeTM Power PV layer on front and upside of the micro lamella structure

• Solar shading and photo voltaic power

generation with transparency

• Powers the air-conditioning

• Installed costs of MicroShade™ Power are

lower than other BIPV

• Electrical output is similar to current

solutions

• Marketable in 2016

• PV layer on 3 dimensions

• Photovoltaic modules are flexible in size

• Photovoltaic module assembly is

compatible with glazing technology

• MicroShade™ Power modules are

compatible with typical façade systems and

exterior cabling systems

• Strengthening of

sales and

support

• Sales team in

Germany

expanded

• New CEO

3. MicroShade™ Story

From scientific research to commercial breakthrough

Before 2003

• CTO heads up

the dye-

sensitized solar

cells (n-DSC)

R&D team at

DTI

• Basic patents

are filed

Ma

in e

ve

nts

R

efe

ren

ce

s

Research Foundation Prototype Launch Building platform for growth

2003 2004-2008 2009 2010 2011 Pe

rio

d

• PhotoSolar is

spun off as

independent

start-up

• Concept re-

worked for thin

film PV

• Switch from n-

DSC to silicon

thin film

technology

• Development of

MicroShadeTM

and

MicroShadeTM

Power products

• MicroShade™ is

launched in the

market

• Sales team in

Denmark

established

• Market

penetration and

product

development

• Sales team is

set up in

Germany

• Development of

design range

• Concept

development

• Test of

shading

performance

• Calculation

tools and

model

• Product

development

• Testing

phase

• Malling

School

• Datagraf

• Næstved

Swimming

Stadium

• Confederation

of Danish

Industries

• Wacker

Chemie

3. Reference installations

Confederation of Danish Industries, 1,800 m2 (MS-D, MS-A, MS-A Vertical)

•Modernise CPH HQ

•Effective solar shading was

needed to avoid

overheating and glare

Client

rationale

Conventional

solutions

• Silk screen print on glazing and internal roller

blinds were not an option due to the extensive

use of the roller blind that was needed to

maintain a comfortable indoor climate, and

consequently reduced daylight and view out most

of the time

Our solution

•MS-D in roof

•MS-A Vertical in façade

•MS-A at the end wall

Client

benefits

•Comfortable indoor climate

with view and daylight

•No movable parts

•No maintenance

Atrium and Installation in DI

•Print on glazing and

internal blinds were ruled

out due to reduced daylight

and view out

3. Reference installations

Næstved Swimming Stadium, 180 m2

•Existing shading blocked

view out and was damaged

with balls from a nearby

soccer stadium

Client

rationale

Client

benefits

•Smarter

•Zero repairs once installed

•Improved energy balance

•Light but shaded interior

Solution

-15

-10

-5

0

5

10

15

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Existing MicroShadeTM

Accumulated energy savings potential of

approx. 50 MWh a year

14

MWh

24

MWh

12

MWh

Estim

ate

d h

eat exchange

thro

ugh façade (

MW

h)

3. Reference installations

Malling School

•Existing school with

overheated classrooms Client

rationale

Conventional

solutions

•Exterior solutions were

ruled out due to

maintenance costs and

high risk of vandalism

Our solution

•Replacement of existing

insulated glazing panes

with new ones with

MicroShade™

Client

benefits

•Comfortable, concentrated

and productive children,

satisfied teachers

•No maintenance

Inspiration

“Users are experiencing a temperature reduction of

3-4 degrees during the warm season….the diffusion

of the inflowing light is making it possible to actually

see what is written on the blackboard.”

Gorm Albertsen

Building inspector, Municipality of Aarhus

20m m2 European glazing market for non-residential

buildings • >25% requires solar control, or 5m m2

Driven by: • Architectural trends for more glass and light

• Environmental pressure to reduce energy usage

• Legislative pressure to force energy efficiency

4. Market Size and Dynamics

Glazing and Solar Protection Markets

-

200

400

600

800

1,000

1,200

2009 2014 2019Flat glass demand for building construction

Flat glass demand for other purposes (automotive, solar, special apps.)

4. Market Size and Dynamics

Glazing and Solar Protection Markets

Architectural trends towards glass in Europe

Source: Pilkington, Freedonia Research and management information

4. Market Size and Dynamics

Glazing and Solar Protection Markets

World BIPV Installations forecast (2011-2021) BIPV

Installations (MW)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Europe US Asia

Source: Lux Research, Inc.

New EU

regulations

favouring BIPV

take effect

5. Strategy

Strategic objectives by 2016

Activity Objectives 2012-2016

• Achieve volume sales and market

share of 4% across selected

territories

• MicroShade™ INSIDE established as

a component brand

Initiatives

• 12 employed salespeople by 2016 to

get MicroShade™ specified with

architects

• Build on existing network of approved

glazing integrators

• Continuously monitor the availability of

alternative competitive supply partners

• Establish logistics function to handle

product flow through the value chain

• Continuous optimisation and

development of MicroShade™

• MicroShade™ Power ready for

market launch

Sales and

marketing

Research and

development

Manufacturing

and logistics

Organisation

• A dynamic and professional working

environment

A

B

C

D • Build capability in key areas

• Recruitment will be made slowly in the

early years, growing to 17 by the end of

2012 and 47 by 2015

• Stable manufacturing with identified

back-up partners

• Reduce unit costs

• Build strong capabilities within

logistics

• Milestone plan for developing

MicroShade™ Power with market

launch in 2016

• Scale-up research and development

team

5. Strategy

Business Model

PhotoSolar

• Develops solar shading and BIPV products & retains control of IP

• In-house Sales and Marketing

• Project Management • Logistics

Suppliers

• Subcontract high-quality manufacturing

• Scalable

Direct Customers

• Glazing manufacturers • Multi-site networks

(e.g. Saint-Gobain) • Project specialist

plants • World-wide supply

• All customers are accredited by PhotoSolar

Indirect Customers

• Architects; façade engineers; building owners; façade installers

• Promote and explain MicroShade™ to these players to achieve specifications

Specification Selling

• Be present in 5 key architectural markets by end of 2013

• Network of employed salesmen

• Supported by promotional activity

5. Strategy

Partner agreements already in place with high quality glass processors

• Flachglas Wernberg is a leading European

glass processor

• Revenue: €124.7m

• Glas Wagener specialises in glass for

window manufacturers

• Revenue: €24.3m

• Bischoff Glastechnik AG

• BGT is active in construction

• Revenue: €35m

Top-level architectural glass manufacturers

• Saint-Gobain designs, manufactures and

distributes building materials

• Revenue: €42,116m

• HansenGroup is North European group of

building materials

companies, including Hansen Glass

• Revenue: €98.3m

• Flachglas MarkenKreis is a network of more

than 20 high-performance glass

manufacturers and traders

7 in sales and sales support (strong glazing experience, supported by consulting engineer)

3 in research (including two PhD in micro and nano technology)

1 in quality control

6. Management

Team

CEO Founder and CTO

Alistair Higgins

PhotoSolar since 2011

Graduate, University of Cambridge

Eik Bezzel

PhotoSolar since 2003

MSc Engineering, DTU (Technical University

of Denmark)

• 11 years Saint-Gobain Glass in the UK

−Country Manager (6 years) for €270m

manufacturing, distribution and installation

−Divisional MD for €90m façade manufacture

and installation business (3 years)

−Led two start-ups in façade design and

manufacture

−Group FD for all €375m UK glass activities

• Trained as ACA by PwC, London

• Founder and first CEO of PhotoSolar (2003-2009)

• 12 years with DTI (the Danish Technological

Institute)

− Head of R&D section, PEC Group (5 years)

− Section Manager, Energy Technology (2 years)

− Project Engineer (5 years)

Employees

Cash Flow Statement

EURm FY11E FY12E FY13E FY14E FY15E FY16E

Cash flow s from operating activities (0.0) (2.2) (2.7) (2.7) 1.8 11.3

Liquidity at the end of the period 0.6 (2.3) (6.1) (8.8) (7.1) 4.2

Additional MS-P Development cost (option 2013) (2.8) (1.4) (1.4)

Liquidity at the end of the period with extra MS-P cost 0.6 (2.3) (6.1) (11.7) (11.3) (1.5)

Source: M anagement information

M S-P: M icroShadeTM

EOP: End of period

7. Funding Requirements

Summarised P&L

€9m sought

Profit and loss statementEURm FY11E FY12E FY13E FY14E FY15E FY16E

Revenue 0.6 1.1 3.6 10.4 21.6 38.5

EBIT (1.7) (1.8) (2.4) (0.3) 3.9 14.4

Source: M anagement information

Existing shareholders (Chrysalix SET and

Vaekstfonden) intend to participate

€9m will fund:

the operating business through to cash flow break-

even

the continuing MicroShade Power™ R&D

programme until the end of 2013

Final MicroShade Power™ funding of <€3m will be

required by 2014 to complete the programme through

to market launch

7. Funding Requirements

Series C Funding Sought for €9m

Alistair Higgins, CEO alistairhiggins@photosolar.dk

Tel Dir: +45 28 30 93 63

PhotoSolar A/S Gregersensvej 1

DK-2630 Taastrup

Tel: +45 72 14 48 48

Fax: +45 72 20 35 50

www.photosolar.dk