PROJECT VENTOPROJECT VENTOPROJECT VENTOPROJECT VENTO

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April 2016

Page 2 Project Vento

Source: Company information

SkySails SkySails SkySails SkySails ---- Opportunity to invest in a market leader Opportunity to invest in a market leader Opportunity to invest in a market leader Opportunity to invest in a market leader in in in in airborne wind energy systemsairborne wind energy systemsairborne wind energy systemsairborne wind energy systems

History of SkySails and current situationHistory of SkySails and current situationHistory of SkySails and current situationHistory of SkySails and current situation

� Before 2010, SkySails has been highly successful in

capital funding

� SkySails financial restrictions started in 2010, when

Beluga shipping company filed for insolvency. As a result,

an already signed investment agreement of EUR 4m could

not be fulfilled

� A pledged bridge financing with maturity in August 2016,

was unexpectedly revoked by the capital funder in

February, leaving SkySails in a financially distressed

position

� As a consequence, SkySails GmbH had to file for

insolvency in March 2016

� SkySails was established in 2001 by the graduate

industrial engineer Stephan Wrage and the shipbuilding

and offshore engineer Thomas Meyer

� SkySails kites contain the key technology for capturing the

vast potential of high-altitude winds and SkySails is the

first company in the world that has succeeded in

developing towing-kite technology into an industrial

application

� SkySails has established a broad and global patent

portfolio that includes around 300 patents issued or

applied for within 16 patent families

� On March 7, 2016, SkySails’ management filed for

insolvency and Dr. Gerrit Hölzle was appointed preliminary

insolvency administrator

� SkySails GmbH’s subsidiaries SkyView GmbH and SkySails

Power GmbH are not affected by the insolvency

� The current status is offering an inflection point in order to

return to profitability through the already initiated, and

partly implemented, restructuring measures as well as

further optimization potential

… has found itself in a tense financial situation during the last few

years …

… but offers realistic chances of a successful re-orientation for a new

investor

SkySails – A visionary company with a sustainable product ...

Foundation of SkySails by Stephan

Wrage and Thomas Meyer

Company history

Concept developmentConcept developmentConcept developmentConcept developmentDevelopment of basic Development of basic Development of basic Development of basic

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Development of SkySails PowerDevelopment of SkySails PowerDevelopment of SkySails PowerDevelopment of SkySails Power

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Development of SkySails Development of SkySails Development of SkySails Development of SkySails

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Page 3 Project Vento

SkySails SkySails SkySails SkySails ---- Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market leader in leader in leader in leader in airborne wind energy systemsairborne wind energy systemsairborne wind energy systemsairborne wind energy systems

SkySails is a worldwide renowned supplier SkySails is a worldwide renowned supplier SkySails is a worldwide renowned supplier SkySails is a worldwide renowned supplier of the most powerful source of renewable energy: of the most powerful source of renewable energy: of the most powerful source of renewable energy: of the most powerful source of renewable energy:

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SkySails company overview Main business segments of SkySails GmbH

► Established in 2001, SkySails GmbH is the market and technology leader in the field of automated towing-

kite systems

► As winds at high-altitude provide considerably more energy than winds at the surface level, the use of these

energy-rich high-altitude winds represents the next generation of wind power generated by large and fully

automated kites

► The company’s business is split into three segments all centered around its core technology:

► SkySails Marine offers wind propulsion systems for vessels. The latest product generation can replace

up to 2 MW of the main engine’s propulsion power

► SkySails Power develops and markets systems for generating power from high-altitude winds

► SkyView offers kite-based carrier systems for surveillance equipment especially for the maritime sector

► SkySails is the world’s first company that has succeeded in developing kite technology into an industrial

application. The company holds extensive experience in the fields of kite construction, automation

technology and kite size areas up to 400m2

► SkySails GmbH’s current 31 employees have backgrounds within a wide range of disciplines and specialties

to constantly develop and improve the patented SkySails technology

► SkySails hereby relies on more than a decade of cooperation with the shipping industry and is the single

known manufacturer of high-altitude power units with an offshore-proven energy generation concept that

can be monetized by product sales, licensing fees and spare parts business

► To protect its high-technology market position, SkySails is the unaffected user of a broad and global patent

portfolio including more than 300 patents

► Having acquired investment funds of more than EUR 50m, SkySails has been highly successful in explaining

and promoting its technological position and professional vision

► However, as the obvious investors, the shipping companies, have shown a reluctant propensity to invest, the

market for high-altitude wind-based power generation has not been developing at the expected speed. As a

result, SkySails is currently looking for a potential investor to keep the business and technology alive

SkySails Marine

► The worldwide patented SkySails propulsion system consists of a

towing kite with a rope, a launch and a recovery system and a control

system for automated operation

► SkySails can be installed effortlessly as an auxiliary propulsion system

on both new builds and existing vessels and is prepared to

simultaneously reduce operating costs and emissions

SkySails Power

► Large and fully automated kites are the key technology through which

energy can be generated from high-altitude winds.

► Built on the proven SkySails technology, SkySails Power is developing

wind power systems that can be used to exploit wind power on an

industrial scale

Sensorkite (SkyView)

► Small kites equipped with modern security technology provide audio

and video surveillance

► Sensorkites are technologically independent platforms, ready to use

in private and public sectors

► The automatically controlled kites can easily operate at altitudes of

300 meters, thus expanding the sensor detection and

communications range surrounding the vessel for a 1500% increase

in area (120nm² to 1,800nm²)

► The payload-to-cost ratio of Sensorkites is much better than drones,

simultaneously requiring less investment and operating costs

Page 4 Project Vento

SkySailsSkySailsSkySailsSkySails ---- Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market leader in leader in leader in leader in airborne wind energy systemsairborne wind energy systemsairborne wind energy systemsairborne wind energy systems

The SkySails Power technology is a green technology with manifold advantages The SkySails Power technology is a green technology with manifold advantages The SkySails Power technology is a green technology with manifold advantages The SkySails Power technology is a green technology with manifold advantages for a sustainable for a sustainable for a sustainable for a sustainable and profitable renewable and profitable renewable and profitable renewable and profitable renewable

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SkySails Power investment case

► SkySails Power technology…

• …relies on more than a decade of offshore towing-kite experience

• …can be installed on swimming platforms, making virtually unlimited space available

• …can in contrast to other conventional wind turbines be installed in hurricane and typhoon areas (affects 50% of potential

worldwide offshore market)

• …solves some of the main technical issues of conventional offshore wind turbines

► SkySails Power units…

• …increase power generation effectiveness compared to conventional wind farms

• …reduce costs for offshore wind energy by 50%

► SkySails Power business…

• …will be a leading provider for offshore wind power (accumulated cap. of approx. 12.4GW in 2025)

• …will be owning an exclusive market share for hurricane and typhoon wind regions

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!SkySails Power provides a sustainable and profitable solution for a growing offshore wind power marketSkySails Power provides a sustainable and profitable solution for a growing offshore wind power marketSkySails Power provides a sustainable and profitable solution for a growing offshore wind power marketSkySails Power provides a sustainable and profitable solution for a growing offshore wind power market

Page 5 Project Vento

SkySailsSkySailsSkySailsSkySails ---- Opportunity to invest in a market leader in airborne wind energy systemsOpportunity to invest in a market leader in airborne wind energy systemsOpportunity to invest in a market leader in airborne wind energy systemsOpportunity to invest in a market leader in airborne wind energy systems

The SkySails The SkySails The SkySails The SkySails SensorkiteSensorkiteSensorkiteSensorkite technology is a surveillance technology which increases platform elevation and improves surveillance technology is a surveillance technology which increases platform elevation and improves surveillance technology is a surveillance technology which increases platform elevation and improves surveillance technology is a surveillance technology which increases platform elevation and improves surveillance

quality and efficiencyquality and efficiencyquality and efficiencyquality and efficiency

► SkySails Sensorkite technology…

• …relies on more than a decade of offshore towing-kite experience

• …exploits the power of high elevation and thereby extents the surveillance horizon up to 15-fold

• …automatically deploys and controls kites, operating sensors at altitudes of approx. 300 meters

• …can be operated safely in very strong winds of up to 10 Bft, as well as under lull conditions and during low-level winds as

the maneuvering speed is adequate for operation

• …can be installed on almost any naval vessel as well as onshore, e.g. as mobile surveillance unit

► SkySails Sensorkites…

• …eliminate unnecessary maneuvering and helicopter flights, saving money and reducing emissions

• …improve surveillance quality by earlier detection and faster threat classification and targeting

• …exploit greater surveillance ranges to make the vessel virtually invisible to the target being observed

• …can improve the communication range of drones and require less investment and operating cost

• …provide a much longer airtime than the airtime of drones – non-stop for several days

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SensorKiteSensorKiteSensorKiteSensorKite applicationapplicationapplicationapplication

!SkySails SkySails SkySails SkySails SensorkiteSensorkiteSensorkiteSensorkite provides an improved surveillance solution for use in private and public sectorsprovides an improved surveillance solution for use in private and public sectorsprovides an improved surveillance solution for use in private and public sectorsprovides an improved surveillance solution for use in private and public sectors

SkySails Sensorkite investment case

Page 6 Project Vento

SkySails offers an ideal opportunity to enter a promising market with forecastable and steady growth

resulting in a diversified and profitable future business model

Forecasted resource scarcity leading to an expected constantly increasing oil price in the long-term

will further enlarge the benefits that customers derive from applying the SkySails technology

SkySails offers a close-to market technology with the capability to generate cashflows from product

sales, maintenance business and a license model

Combining existing IP and technology with the ongoing R&D, SkySails is highly probable to maintain

its market-leading position in the field of towing-kite technology

SkySails is a world-leading supplier of a market leading towing-kite technology based on German

engineering quality and highest technological standards, tested under offshore wind conditions

SkySails SkySails SkySails SkySails ---- Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market Opportunity to invest in a market leader in leader in leader in leader in airborne wind energy systemsairborne wind energy systemsairborne wind energy systemsairborne wind energy systems

The investment in The investment in The investment in The investment in SkySails’SkySails’SkySails’SkySails’ technological portfolio offers the opportunity to participate in a promising and growing market of technological portfolio offers the opportunity to participate in a promising and growing market of technological portfolio offers the opportunity to participate in a promising and growing market of technological portfolio offers the opportunity to participate in a promising and growing market of

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Key investment highlights of SkySails

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