Company brochure

PNE WIND AG

2 PNE WIND

TailwindEnvironmentally friendly electricity production from renewable

energies under economically sustainable conditions

• Development, project planning, realisation, financing and operation of wind farms in Europe, North America, and South Africa – onshore and offshore

• Complete wind farm project planning and service from a single source

• Tried and tested business model based on many years of wind farm planning experience

• Some 200 wind farms with a total nominal output of approx. 2,000 MW successfully realised by the PNE WIND Group – in Germany and internationally!

• Comprehensive network of landowners and investors as well as decision makers in politics, communities and business

• A high level of competence in the selection and financing of wind power systems

• Business contacts and a permanent exchange with all relevant manufacturers of wind turbines

• Professional project development and attractive returns

• The appropriate solution for every location

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IntroductionPassion for Energy

Successful wind farm project development in the right locations

Energy from wind power is independent, future oriented and sustainable – therefore these attributes also apply to the PNE WIND Group because our passion is the development of wind power projects!

Whether onshore or offshore, at home or abroad, PNE WIND stands for comprehensive competence in the project development and implementation of wind farms – and has done so for about two decades.

In addition to PNE WIND AG, WKN AG also belongs to our Group since 2013. WKNs employees and management share our passion for clean electricity and their know-how and experience make a significant contribution to our business success.

In the following pages, I would like to acquaint you a little more closely with the advantages of wind energy and at the same time introduce our company, the PNE WIND Group.

Martin Billhardt, Chairman of the Board of Management

I hope that your initial questions will be answered in this brochure. You are welcome to contact me and my colleagues concerning all further questions. Please enjoy the reading!

Kind regards,

Martin Billhardt Chairman of the Board of Management

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Using wind energy profitably

Nordleda wind farm

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Our business modelOne stop wind farm project development

Imagine you are building a house. You are unlikely to be in a position to do all of the necessary work yourself. You will need professionals to plan, perform and supervise the necessary work in a reliable and efficient manner for you.

This is precisely the role which the PNE WIND Group plays in the project development of wind farms, which upon completion produce clean, reliable and cost effective electricity for decades to come.

Our scope of service begins with the identification of a suitable location for a wind farm and – above all in the onshore sector – continues throughout all phases of the value added chain.

From the first wind analyses to the financing and through to the selection of suitable wind energy systems – we are the competent contact partners for property owners and investors in every phase of the project.

As soon as the wind power systems have been commissioned we also offer our customers technical and commercial services to ensure that the wind farms are operated efficiently.

When we sell our projects is determined on a case by case basis. However, as a general rule we sell our onshore

wind farms after construction and commissioning. In contrast, we sell our offshore wind farms when all conditions for the immediate commencement of construction have been fulfilled.

The realisation of offshore projects with investments totaling billions of Euros requires special experience and carries significant risks. We therefore focus on the planning and leave the construction to our customers, a strategy that has brought us success and helped us avoid making costly mistakes.

PNE WIND AG has been successfully active in project development since 1995 and WKN AG since 1990. The wind farms we have developed are making a significant contribution to climate protection. We are also assisting in the establishment and expansion of a future oriented technology which creates sustainable employment and reduces dependence on fossil based fuels and atomic energy.

We are therefore concentrating our activities on providing our customers and shareholders with added value by rigorously exploiting the opportunities offered by the increasing requirement for dependable and sustainable energy solutions.

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Knowing where the wind comes from

Altenbruch II wind farm

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Value added chain – from the first survey to the handover of the wind farmWind farm project planning on land and offshore

• Development, planning, realisation, financing and operation

• From the first wind analysis to the operation of the commissioned wind farm

• PNE WIND offers the appropriate solution for every phase of the project

PNE WIND as a wind farm operatorPNE WIND not only develops wind farm projects but also operates them on behalf of its

customers and, in certain cases, also on its own account. Therefore PNE WIND is not

exclusively only a developer but also an “Independent Power Producer” (IPP). This means

that, as an independent operator, PNE WIND feeds electricity from wind energy into

Germany‘s national power grid.

Why do we, as a project developer, also operate wind farms instead of only selling them?

As an example, let us consider the “Altenbruch II” wind farm which was commissioned in

2009. Due to the high wind speeds of 8.0 m / s prevailing at a hub height of 105 metres, both

offshore and onshore wind energy systems were constructed close to the coast. This allows

us to obtain valuable experience in the operation of offshore wind energy systems in order to

gain a better understanding of the challenges in this exciting market.

Value added chain

Development Financing Construction ServiceSale

• Acquisition of the site

• Wind analysis

• Selection of equipment

• Permit

• Financial analysis

• Legal concept

• Sales / Marketing

• Project financing

• Grid connection

• Infrastructure

• Assembly

• Start-up of operations

• Transfer to purchaser

• Technical and commercial management

3 to 5 years

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The planning and realisation of onshore wind farmsFrom the site survey to the completed system

Every project begins with the analysis of a suitable wind farm location. Based on the local circumstances – such as the wind conditions, infrastructure or opportunity for grid connection – the system to be constructed is selected and subsequently the necessary approval process is initiated.

The financing is also an important point. Here, our experts have many years of experience and comprehensive specialist knowledge. In addition to the financial analysis, this phase also comprises the legal structuring of the subsequent operating company, selling the wind farm to investors and securing the actual project financing.

When approval has been granted, the wind farm can be constructed. For this purpose, the grid connection must first be laid and the corresponding infrastructure provided. Thereafter, the wind energy systems are assembled and commissioned. Afterwards, the wind farm is handed over to the operators.

After commissioning, we do not leave them to their own devices. On the contrary: we offer to take over the technical and commercial operation to ensure that the wind farm runs as efficiently as possible.

Langwedel wind farm

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PNE WIND – present in international growth markets“Made in Germany” as the foundation for successful expansion

In the PNE WIND Group we are increasingly

using our specialist knowledge in international

markets and are thereby also expanding our

success into other countries. As a secure,

efficient and environmentally friendly form of

electricity production, wind energy is gaining

increasing international significance. This

creates market opportunities which we will

exploit rigorously!

The PNE WIND Group is already represented

in 14 countries from Europe to South Africa

and as far as North America. We exploit the

opportunities of wind energy as an alternative

source of energy worldwide, either through

joint ventures with local partners or through

our own subsidiary companies. In this way

we are not only significantly extending our

scope of action but are also ensuring a

reduction in national dependence and risks.

We shall continue on this path of international

expansion by monitoring developments in

possible target markets.

We are currently working on onshore national

and international wind farm projects with a

volume of about 4,800 MW and to date, the

PNE WIND Group has already successfully

developed wind farm projects with a total

nominal output of approx. 2,000 MW –

a significant contribution to the energy

transition.

Realised wind farm projects – international

North America

CA

US

Europe

GB

FR

ES

IT

SE

POUKDE

Africa

SA TR

BG

ROHU142 MW76 WPT

101 MW42 WPT

160 MW88 WPT

1.464 MW996 WPT

99 MW35 WPT

42 MW14 WPT

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The future of energy supply“Wind power plants” on the high seas

Wind farms on the high seas (offshore) are the key to the successful energy transition in Germany. High and above all constant wind conditions prevail at sea. In addition, the sea provides sufficient room to construct wind farms with several hundred megawatts of output.

However, the project development of an offshore wind farm also makes high demands on the project team. Water depth, shipping lanes and tidal movements pose significant challenges to planning. In addition, the approval process for offshore wind farms is substantial and requires an auditing process lasting several years. With four approvals already granted for our projects in German waters, PNE WIND AG has been successful in providing evidence of its competence in this field. In total, we are currently working on twelve projects in the North Sea, of which six are on our own account and six are as service provider (see the graphic). Three of the wind farms we have developed and sold are already under construction.

Due to the location – often far from the coastline – the demands on the quality of the wind farm components are particularly high. The foundations must be robust and the wind energy systems themselves must be capable of withstanding enormous loads. In addition, the grid connection and the transportation of the electricity to the consumers onshore presents a special challenge.

However, neither the European nor the German climate targets can be achieved without an expansion in offshore wind energy. Politicians have already realised this and made energy production on the high seas a cornerstone of their energy policy.

For this reason, PNE WIND AG indentified offshore wind as a growth market at a very early stage and will expand this further in the medium and long term. In addition, we are also monitoring the development of international offshore projects.

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Nautical chart with flags for all projects

Norden

Nordsee

Key

Projects under development

Projects approved

Cuxhaven

Nemo

Nautilus I

Nautilus II

Atlantis III

Gode Wind-Familie

Jules Verne

Atlantis I

Borkum Riffgrund II

Borkum Riffgrund I

Projects sold, PNE acts as service provider

Own projects

Atlantis II

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Know-how to ensure that the wind farm works

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Technical and commercial business operationService for the ongoing business

• Technical supervision• Commercial business operation• Planning grid connections

After the successful completion, commissioning and handover to customers, the PNE WIND Group continues to support the wind farms on behalf of customers under its brand, “energy consult”. We take over the technical and commercial operation management to ensure that the wind energy systems operate as efficiently as possible! The planning of grid connections also forms part of this business unit.

As part of our service offering, we monitor the wind farms permanently in order to recognise faults at an early stage and thereby avoid or minimise down times. Whenever possible, we

ensure that scheduled service and maintenance of the wind energy systems is carried out regularly and in such a way that their operation is disrupted as little as possible. In this way we ensure optimum profitability for our customers. In addition, we also take over the commercial management of wind farms – a complete service package for the owners of wind farms.

We are currently supporting 650 wind energy systems (AN Bonus / Siemens, DeWind, Enercon, Fuhrländer, GE Wind, Nordex / Südwind and Vestas) with 1,070 MW of nominal output.

We also offer our technical and commercial business operation service to operators of wind farms that were not developed by the PNE WIND Group. The “energy consult” team would be happy to inform you personally about the details.

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Always close hauled

Buchholz wind farm

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Repowering – make new from oldGreater efficiency, higher returns

Repowering is a term which describes the replacement of older wind energy systems with more modern and more efficient systems. Many plants, particularly in the windy north Germany, are 15 years old or even older and therefore no longer at the current status of technological development. New developments in wind energy systems contribute to constant improvements in efficiency. Due to continuous improvements in the available components, a significant improvement in efficiency can be realised by modernising wind farms. This benefits both the climate as well as the operator.

Repowering is already a significant factor in established markets – in Germany alone experts estimate the potential in this area to be up to 1,000 MW annually.

This business sector is also being actively developed by the PNE WIND Group. With the successful repowering of several wind farms in Germany, we are able to demonstrate our expertise clearly as a project developer. Our experienced team will also be happy to work for wind farm operators wishing to repower their projects.

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Using wind energy efficiently

Altenbruch II wind farm

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Energy of the futureEcologically correct, economically sensible, secure, attractively

priced

Electricity drives the world forward. To date, global energy production is based above all on the consumption of limited resources such as oil, coal or gas whose use results in pollutant emissions. The consequences and effects on the environment are already noticeable. Combined with the dangers to humanbeings and nature and the uncertaintyconcerning the future availability ofthese raw materials, there has been areassessment of the various energyproduction methods.

Electricity production from renewable energies is increasingly being seen as the way out of dependence on fossil based fuels and imports from abroad. This is because renewable sources such as wind energy ensure a sustainable and cost-effective supply.

Wind power helps to decrease climate damaging emissions significantly and society thereby profits as a whole. Environmental damage is avoided, companies reduce their dependence on energy imports and communities and farmers are provided with secure and profitable sources of income. The expansion of wind energy also secures safe and sustainable workplaces in many sectors.

By investing in appropriate companies and projects, investors are also provided with an attractive investment – ecologically correct and economically sensible.

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Pioneer in climate protection

Langwedel wind farm

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Political framework conditions – ever changing but dependable at their corePlanning security is the basis for investment

Many of the international markets in which the PNE WIND Group is active have grown considerably in recent times while a certain reduction in the expansion of wind energy has been recorded in others. Such reduction is due primarily to uncertainties with regard to the political framework conditions. Although producing electricity from the wind has matured and costs have fallen, it remains dependent on government policy in many markets to ensure that it has access to the electricity market and be able to compete against conventional energy production, whose generation costs are often masked by subsidies. Unlike renewable energy, the actual generation cost of conventional electricity is not directly reflected in its selling price and continued political support remains necessary to level the playing field.

The European Union (EU) places a very high priority on the promotion of electricity production from renewable energy sources for reasons of security and diversity of energy supplies, climate protection and economic and social unity. The Guideline 2009/28/EG on renewable energies provides ambitious targets for all member states so that the EU can achieve its target of producing 20 percent of energy from renewable sources by 2020.

The individual member states are responsible for implementing the EU targets in their national policies.

We constantly monitor the political framework conditions in all of the countries in which the PNE WIND Group is active in order to be able to react quickly to changes. Planning security forms the basis for all investment decisions.

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Successful in the marketplace for about two decades

Altenbruch II wind farm

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Competence which countsSome 200 wind farms successfully realised –

in Germany and internationally!

Installed nominal output of PNE WIND Group (in MW)

*As of: December 2013

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

340194

160

145105

15974

195

218

206

143114

53 3432

500

644749

908982

1,177

1,395

1,601

1,7451,858 1,911 1,945

1,977

New

Accumulated

Realised wind farm projects in Germany

544 MW284 WPT

12 MW9 WPT

8 MW10 WPT

43 MW50 WPT

433 MW324 WPT

104 MW63 WPT

164 MW148 WPT

22 MW15 WPT

21 MW12 WPT29 MW

19 WPT

87 MW62 WPT

Highlights

The companies in the PNE WIND Group plan and realise wind farms on land (onshore) and on the high seas (offshore). Our core competence lies in the development, project planning, realisation and financing of wind farms as well as in their operation or sale and subsequent business operation respectively. To date, we have already constructed about 200 wind farms!

Beside business activities in our established German home market, the PNE WIND Group is already represented in 13 further countries in Europe, South Africa and North America and is active in the successful project development of wind farms.

Furthermore, PNE WIND AG is developing offshore wind farms, for which the construction of several major projects in German waters has already begun and will soon feed in their

first wind power into the grid. We are also considering an entry into promising foreign markets in the offshore sector.

PNE WIND is a reliable partner for the planning, implementation and operation of wind farms. Our comprehensive scope of service and the many years of experience gained by our employees provide the best prospects for the economic success of your project.

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Imprint

PNE WIND AG

Peter-Henlein-Straße 2-427472 CuxhavenGermany

Telephone + 49 (0) 47 21-718-06Telefax: + 49 (0) 47 21-718-444E-Mail: info@pnewind.com

www.pnewind.com

Board of Management: Martin Billhardt (Chairman),Jörg Klowat and Markus Lesser

Court of registry: Tostedt Registered number: HRB 110360

May 2014

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