Climb Auto System

Solving an Ergonomic Problem with an Economic Solution

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3 | Restate the Problem…

4 | Physical Demands on Technicians are Increasing

88m The average hub height of a wind turbine in 2019

21 km/yearTotal vertical distance climbed by ONE tech per year

60,000+ The number of individual tower climbs over the life of a 100 WTG farm

$48k USDThe average direct cost of an OSHA recordable injury

“The worst part of my day is climbing” –Duke Technician

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The Second Fastest Growing Job in the United States

Wind Technician Supply and Demand…

Constrained Demographics

Employee Retention

Rehiring and Retraining

Industry Growth

How can we make wind turbine technician a CAREER?

10,000 TechniciansThe number of wind technicians is going to double over the next 5 years

$54k/yearThe average wind technician is a fit male, in his late 20s

1 in 3The number of skilled technicians who are going to leave your site this year

$92k - $200kThe average turnover cost of losing a wind turbine technician

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The Second Fastest Growing Job in the United States

Wind Technician Supply and Demand…

Constrained Demographics

Employee Retention

Rehiring and Retraining

Industry Growth

How can we make wind turbine technician a CAREER?

10,000 TechniciansThe number of wind technicians is going to double over the next 5 years

$54k/yearThe average wind technician is a fit male, in his late 20s

1 in 3The number of skilled technicians who are going to leave your site this year

$92k - $200kThe average turnover cost of losing a wind turbine technician

7 | 3S Lift – Climb Auto System

8 | 3S Lift – Climb Auto System Top Pulley and Upper Limit Switch

Anti-Abrasion Roller

Traction Unit

Foldable Pedals

Bottom Pully Assembly and

Lower Limit Switch

Control Box

Handle Switches

Independent Personal and

Internal Car Fall Arrest System

Car Electronics Battery

Bottom Sensing Panels

9 | 3S Lift – Climb Auto System

➢140 kg rated; 60 kg tools

➢200-240 VAC 1 or 3 phase (10 A circuit)

➢ANSI Z359/CSA Z59 Compliance

➢Multiple OSHA, ASME, EN/ISO compliance & 3rd party test reports

➢UL 73, NFPA 79, CSA 22.2

➢Tier 1 OEM Approvals

➢35,000 units installed globally since 2014; 0 recordables

➢1,000+ units installed in US by end of 2020

➢0 in Canada (ready for Alberta/SASK/Quebec)

➢Ontario TSSA and British Columbia TSBC discussions ongoing

10 |3S Americas – USA Customer Base

30,000 Climb assists

35,000 Climb Auto Systems

10,000 service lifts installed

…27 Countries

$110M Revenue

~1000 employees

Beijing HQ

Tianjin – Manuf

Chicago, IL

Hamburg, DE

11 | Economic Comparison

Climb Auto System vs climb assist

Vs.

Project Inputs:• 50 x 2.0MW WTGs• 80m Tower• 15 year remaining project life• $65 CAD PPA• 42% NCF• 8 Technicians

12 | Economic Solution

$129k USD/YearSites with lifts or CAS retain technicians 45% longer than sites with Climb Assist

Reduced HeadcountEmployee RetentionIncreased

Production

$75k USD/YearOn average, wind farms with Lifts or CAS operate with 14% less technicians

$63k USD/Year

Avg. Sites with Lifts or CAS have 9.9% less downtime than sites with Climb Assist

$3.7M USD Remaining Project

Lifetime Benefit over Climb Assist

$245k USD/yrImprovement of

Site Profitability

Climb Auto System vs climb assist

13 | Economic Comparison

Climb Auto System vs service lift

Vs.

Project Inputs:• 50 x 2.0MW WTGs• 80m Tower• 15 year remaining project life• $65 CAD PPA• 42% NCF• 8 Technicians

14 | Economic Solution

Climb Auto System vs service lift

CapEx Savings OpEx Savings

$450k USD LowerCAS Installed costs ~$10-15k less per WTG than a Service Lift

$55k USD/Year Service Lift Annual Maintenance can range from $1-2k/WTG/year. CAS only 1 hour/year.

$1.5M USDLifetime Project

Benefit over Service Lift

$100k USD/yrImprovement of Site

Profitability

Climb Auto System…NOT an Elevator

15 | Eliminating Climbing Drives Efficiency

+ 45% …Technician Retention

- 10% … Reduced Downtime

- 14% … Reduced Headcount

+ 1.75x … More Ascents

“I’ve had two knee surgeries, probably because I’ve been climbing turbines everyday for 5 years”

–40-year-old GE Technician

With Climb Auto System…

16 | Less Tangible…Safety Improvements

✓Extend Technician Longevity

✓Widen Technician Demographics

✓Mind on Task, Not on Climb

✓Reduce Drop Object Risk

✓Less Lost Time

✓Lower Medical Costs

✓Greater Team Morale

✓TRIR Reduction (22% for Tier 1 OEM)

✓2 pm Climbs…No Problem

3S Americas

455 N. Cityfront Plaza Drive Suite 3115

Chicago, IL 60611, USA

ADDRESS

Phone: +1-312-623-2662

Mail: info@3SAmericas.comWeb: www.3slift.com

CONTACT

Health & Safety!Together we will elevate

BACKUP

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“Many tasks that technicians perform also require prolonged

kneeling, followed by climbing down a vertical ladder that may be up to 300 feet in length”

“The research findings demonstrate that prolonged kneeling may compromise balance due to lower leg muscle fatigue,

loss of range of motion in the ankle and knee joints, and

loss of blood flow to the lower leg. It was determined that the effects are evident after as little as 10 to 15 minutes of

continuous kneeling. Adding to the problem is that a person

is three times more likely to fall when climbing down a ladder than up a ladder...”

BACKUP – Wisconsin Climbing Study

https://incident-prevention.com/ip-articles/injury-risks-associated-with-climbing-in-the-wind-energy-generation-industry

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21 | Backup

Increased Number of Tower Ascents Results in Improved AEPAnnual 30 year project life escalated

Climb Assist Total Downtime (MWh/Year) 24664 739929

Climb Auto Total Downtime (MWh/Year) 22215 666465

Estimated Improvement in Uptime 2449 73464

CAS Improved Up-Time Savings or (Loss) 82,786$ 2,483,591$

CAS Improved Up-Time PTCs Generated (10 years) 64,648$ 646,482$

TOTAL NET BENEFITS Annual 30 year project life escalated

CAS Per Turbine Benefit or (Loss) $4,026 $120,778

CAS Total Site Benefit or (Loss) $318,049 $9,541,465

Payoff time 1.5 Years

NPV of CAS Investment @ 6.0% $4,052,568

Reduced Headcount Savings Annual 30 year project life escalated

Reduced Headcount Cost / Year 75,000$ 2,295,675$

Retention Savings Annual 30 year project life escalated

Climb Assist Turnover Rate 33.0%

CAS Turnover Rate 18.2%

Turnover Cost (training, hiring, OT needed, lost $93,750

Climb Assist Turnover Cost 247,500$ 10,199,372$

CAS Turnover Cost 136,125$ 5,609,655$

CAS Turnover Savings 183,589$ 4,589,717$

PROJECT X KEY INPUTS

WTGs 79

WTG MW 2.7

Tower height (m) 109

Full Time Site Employees 8 (with 1 less for CAS)Contractual Lost Production Factor

2.7% (9.9% improvement )

Remaining Project Useful Life (Weighted average # Years) 30

In lieu of a traditional climb assist, Climb Auto System will improve O&M profitability by $4,026/WTG/year in a new wind farm; driven by $183k/yrreduced technician turnover cost, reduced technician headcount and $83k in increased AEP.

CONFIDENTIAL

BACKUP JUSTIFICATION DATA: Climb Auto System vs Climb Assist

Copyright ©- 3S Americas, Inc.Value Proposition

33% turnover assumption based on OEM stated avg technician tenure at site without Lifts

Per OEM data, 3S sees an average retention improvement of 45% when comparing wind farms with service lift devices versus climb assist devices

National Average Wind Technician Salary per BLS. Based on rehiring and retention research done by the Society for Human Resource Management, the average cost to recruit, hire, train and lost productivity is approximately 1.5x the salary of the position.

Per OEM data, the average site with a lifting device (CAS) has a 14% lower technician head count than sites with Climb Assists.

Sites with lifts or CAS enables technicians to go up tower more frequently which results in less downtime. Per CAS field data the average downtime is 9.9% lower than sites with Climb Assist.

…CAS provides $9.5M USD Project Lifetime

Benefit over Climb Assist

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