THE ECOLOGICAL SIDE OF BUSINESS

THE ECOLOGICAL SIDE OF BUSINESS

BOŚ Eko Profit offers active forms of investment support. The offer is addressed in particular to those who develop their own investment projects. What we have to offer is our capital support, credit intermediation and consulting throughout the implementation process, including various options for disinvestment. We managed to successfully implement the concept of a single counter in which our Clients matters are dealt with. Offering such a flexible and custom approach to each and every client, we strive to make our contribution to the development of entrepreneurship in Poland. Our basic function is to provide capital support, but the experience shows that during the initial phase of development investors often need our engagement in various, sometimes unpredicted matters and problems. We are ready to provide such support to our Clients. Everyone intending to apply for capital support for their investment should be able to prove that they have also engaged their own funds in the implementation of a project. We are convinced that no one knows projects better than investors themselves. For this reason, BOŚ Eko Profit does not expect to restrain the Clients impact on the management of their companies, while engaging in projects implementation, either in an advisory role or e.g. through subscribing for shares,or granting subordinated loans. Acting as a business partner, we wish to control how our funds are used, but we do that with profound respect for the Clients business. Being a member of Bank OchronyŚrodowiska capital group, we know how to structure the transaction properly to avoid problems in the credit granting process. We are aware that the quality of submitted documentation determines not only the fact of granting a credit facility for a project, but also the terms on which such facility is awarded. We are also aware of the significance of time factor in the process. We follow the rule of approaching each investor individually. As a result, part of our competitive advantage lies in the maximum flexibility of offered solutions: if we can see the opportunity for a project s success we are bound to find a method of implementing it. Applying the single counter rule, we are able to guarantee that our Clientsare provided with each element required in the investment process. BOŚ Eko Profit S.A. Team BOŚ Eko Profit S.A. is an investment and consulting company offering comprehensive services for entrepreneurs in three key areas: Equity investments Since 2011, the Company completed 4 investment projects that engaged BOŚ Eko Profit S.A. s own contribution. Direct investments by BOŚ Eko Profit S.A. allowed completion of projects worth over PLN 200m. Raising debt financing Until 2013 BOŚ Eko Profit S.A. cooperated in arranging the financing of renewable energy projects with the total capacity of approx. 60 MW, in 2014 projects with the total capacity of approx. 100 MW, and in 2015 projects with the total capacity of approx. 90 MW. Loans with a total amount of about PLN 2 billion were granted through the support of BOŚ Eko Profit S.A. Process management, business and financial consulting. The BOŚ Eko Profit S.A. team structures the projects to ensure the optimum financing and execution formula. Altogether, throughout its business history BOŚ Eko Profit S.A. completed roughly 60 consulting and investment projects. Retail investors and business entities:. whose projects are in the pre-investment phase (they have prepared a business plan and potentially obtained a building permit or they are advanced in organizing the construction),. who need resources for developing and expanding their business activities. Energy companies which expect an efficient and quick implementation of turnkey projects. Local government entities which are interested in implementing pro-environmental, modernization or innovative projects. In accordance with the mission of our Group, we are focusing mainly on investment projects involving environmentally friendly, innovative technologies supporting the development of Polish business. We are interested not only in the renewable energy sources market but rather in a broader clean-tech market, which includes technologies and solutions for the energy sector and for the industry, agriculture, manufacturing and services sectors. By referring environmental care as one of the core values of our activities, we remain open for projects in other business areas, including real estate development projects. Who are we? Who is our target Client? Key sectors 2 3

What is the scope of our activities? Our strategy allows investing in companies which are currently operating, but the area of our main focus are new projects for which it is the most difficult to access external financing. We engage in projects for which it is probable to obtain or which have already obtained a bank credit. In doing so, we supplement the investor s participation for credit purposes. BOŚ Eko Profit will launch the financing specified in an investment agreement only after the company implementing a project has obtained a bank credit. What is our method of operation? The preferred model single counter rule Depending on the assessment of a particular project, its type and investment purpose, we can act as: a direct investor, a financial intermediary and a consultant in the credit awarding process, as well as a supporting institution for the Prime Contractor (Polish: GeneralnyRealizatorInwestycji GRI). Within the framework of orders from Bank Ochrony Środowiska, the Company acted as the Bank s R&D center, preparing comprehensive offers for technological solutions complete with financing, insurance and installation. business consulting > raising funds equity investments process management The company s activities are supplemented by business consulting services, including above all project structuring for the purpose of raising capital and debt financing. We provide investors with support regarding the necessary completion of their managerial staff s competence, we assess the completeness and reliability of data and help to arrange the required documentation: business plans, financial projections and credit applications. A significant element in our engagement is also the process management or consulting in this respect from the moment of submitting a credit application until signing the credit agreement. financial intermediary > > > > > > direct investor support for the Prime Contractor investor s own financing >>>>>>>> required own contribution 15-30% financing by BOŚ Eko Profit other investors >>>>>> We can act both as a minority and a majority partner. Sources of f inancing Structure subsidy/soft credit the subsidy is decreasing the level of own contribution and the level of lending 30-70% Our share in financing undertakings can take the following forms: purchasing, subscribing for shares in operating companies, subscribing for shareholding in the established Special Purpose Vehicles in return for cash contributions,. granting subordinated loans, mezzanine and other combined forms of financing. >>>>>>>> of f inancing bank credits banking syndicate >>>>>> credit for investment credit for working capital credit for VAT purposes 20-80% We provide assistance to our Clients throughout the investment process, wherever it is possible to speed up the implementation of a project, minimize risks or increase financial effectiveness. 4 5

Decision path We base our decisions on the following:. documentation, including above all a comprehensive business plan,. assessment of the level of preparation on the part of major executors creators or managers of a new business (experience connected with the subject of investment, experience in implementing other projects, managerial skills etc.),. assessment of risks connected with a given project the technological, environmental, regulatory, market, operating and managerial risks. Clients cooperating with BOŚ Eko Profit can raise total amount of financing even in 8 to 10 weeks. Initial assessment of a project > based on the documentation and interviews with investors What do we offer to our Clients who wish to carry out their investment in cooperation with BOŚ Eko Profit? Możliwość pozyskania kapitału dla rozpoczynających projekty biznesowe:. An innovative package offer 3C : capital + credit + consulting,. Capital engaged in a single project on the level of PLN 1 10 million,. Time engagement in the project: up to 4 years (minimum period the duration of investment construction),. Broad cooperation: from project structuring in order to raise financing, through implementation, to finding a final recipient who will repurchase the implemented project,. Cooperation with other equity partners for the implementation of major projects,. Various forms of equity financing, adjusted to the Clients requirements: subscribing for shares in a company, granting subordinated loans and conversion loans (mezzanine),. Opportunity to use the vast experience in financing environmental projects by Bank OchronyŚrodowiska acting independently or in a syndicate of banks providing funds for projects,. A quick and efficient procedure for raising funds for project implementation. Exemplary offers Assessment of the possibility to raise debt financing > in cooperation with the bank Investment structuring and preparing a credit application The bank s credit decision launching equity financing Signing an investment agreement Signing a credit agreement After signing the credit and investment agreements, BOŚ Eko Profit can still actively participate in the process of project implementation in terms of cooperation with the bank. If the objectives of the project owner and of BOŚ Eko Profit are consistent and the assumption of the project is to carry out and resell a complete investment, Eko Profit can undertake to find the end investor and to negotiate the offer to repurchase the implemented project before the investment is launched,. We are able to implement an investment for the end user in an efficient, transparent and quick manner, having established the rules for taking over the project, so that both the current investor and the final owner can estimate their revenues from the concluded transaction,. The service package includes combining the role of entity raising the funds and the role of a co-manager for the project from the concept, through the investment agreement (specifying in detail the terms and rules for cooperation), a conditional repurchase agreement, to the supervision over the project implementation and the process of taking over the project by the end investor. Turnkey investments 6 7

Offer for local governments The offer of BOŚ Eko Profit is meant to embrace the expectations of local- -governments whose investment capabilities in the context of debt limits restrain the implementation of projects. Our offer includes i.a. assuming the role of a substitute investor. We adjust our offer to individual requirements, through the provision of funds and support in process management: without the capital participation of local government units, without the necessity of getting into debt by local government units,. in a manner which is safe for a local government s budget. Our offer can concern in particular: implementation of investments in municipal infrastructure,, financing activities being part of municipalities own tasks, carrying out investment tasks contracted by local government units.. completion of investment projects along with municipal companies. BOŚ Eko Profit S.A. has been cooperating with Bank Ochrony Środowiska S.A. in numerous fields, including in the process of developing new banking products and R&D for innovative solutions. Through continuing contacts with investors and active market presence, participation in industry events or membership in industry organizations, BOŚ Eko Profit S.A. is able to learn about actual needs of the investors and therefore ensure a better match of products offered by Bank Ochrony Środowiska with market needs. One example of such a cooperation with Bank Ochrony Środowiska S.A. is a refinancing loan with maturity extended to 20 years, dedicated to RES installations operating under the green certificate regime. BOŚ Eko Profit S.A. took part in the development of the offering but also promoted the product effectively on the market. The offer has attracted strong interest from investors. The borrowers who used it to refinance their existing investment loans were able to, among others: extend the lending period, reduce their own contribution to the project or obtain better terms of financing. Cooperation with Bank Ochrony Środowiska S.A. Consulting in the credit granting procedure Strategies for disinvestment We offer intermediation in ensuring debt financing for investment projects (commercial, technology or soft credits):. we help our Clients to prepare the complete documentation together with project structuring and drawing up a business plan compliant with the bank s standards,. we carry out a preliminary assessment of each investment project as well as its structuring, which makes it possible to save time and costs connected with the credit granting procedure,. we help to identify the strengths of projects regarding the investors contribution and possible forms of securing credits,. we negotiate with banks regarding the matters mentioned above. Together we develop a strategy for disinvestment, in order to establish before subscribing for shares in a common entity in what manner and on what terms BOŚ Eko Profit is going to exit the investment after the specified term of cooperation has expired. Ways to exit an investment:. resale of shares package to other shareholders e.g. project originators,. selling shares package to an end investor (e.g. energy companies for renewable energy sources) or a financial investor (e.g. funds),. introducing a company to the New Connect or the main market of Warsaw Stock Exchange. The BOŚ Eko Profit S.A. team is composed of experts with long years of experience in structured financing and project financing, with particular emphasis of energy projects. BOŚ Eko Profit S.A. experts have experience in preparing, executing and overseeing investment projects as well as practical skills in project management, business strategy development, corporate restructuring and transformation projects and financial reporting. Additionally, the Team has competence and experience, which combines activity in the business environment with relations with state treasury companies, central and local government administration. These skills play a crucial role in particular for investors on regulated markets such as the power industry and need help in overcoming red tape and in interpreting the applicable rules and regulations correctly. BOŚ Eko Profit S.A. team 8 9

Sample projects Our model of cooperation is aimed at minimizing risks and ensuring a quick and effective implementation of investment projects. Przykładowe realizacje 1. 2.55 MW (3x850 kw) wind farm and 5.95 MW (7x850 kw) wind farm Total value of investment is approx. PLN 46 million net. BOŚ Eko Profit provided its capital support for the project by granting a subordinated loan, it served as an intermediary for raising debt financing from Bank OchronyŚrodowiska and provided consulting services regarding financial engineering, structure of collaterals and combining subsidy with debt financing. The subsidized investment was financed with a low investor s contribution. 5. 1 MW photovoltaic farm BOŚ Eko Profit provided comprehensive consulting services to the Client in the process of originating an investment loan to execute a PV investment project with the capacity of 1 MW. The Client obtained a 20-year investment loan to cover 42% of the project s cost (other financing sources included: subsidy of 48% and own contribution of 10%). The Client also obtained a bridge loan for the amount of the subsidy. The project was successfully launched within the deadline required to receive the subsidy. 2. Factory producing pellets from wood chips Total value of investment is PLN 77 million net. BOŚ Eko Profit granted a subordinated loan, it served as an intermediary for raising debt financing from Bank OchronyŚrodowiska and provided consulting services for preparing and implementation of the investment (the scope was similar to wind projects, but it additionally included the structuring of a complex system for securing the transaction and cooperation with the investment s project monitor). 3. 6 MW wind farm Pełczyce Total value of the project PLN 41 million. BOŚ Eko Profit is a 100% owner of the farm. BOŚ Eko Profit purchased the project from a developer, supplemented its contribution to the project and obtained debt financing from Bank Ochrony Środowiska. BOŚ Eko Profit also selected a company monitoring the execution of the investment and ensured Bank Ochrony Środowiska s support in overseeing the investment project. The wind farm is slated to be sold to the ultimate buyer. 6. Consulting for a large developer BOŚ Eko Profit has developed a concept for raising medium-term financing of roughly PLN 70 million for a large entity operating on the real estate development market. The concept involved a purchase of a completed commercial property from that developer along with lease agreements executed for most of the available space (also with entities from the developer s capital group) with a guarantee of a specified level of rent granted for several years. Having implemented this concept, the developer would have obtained an option to repurchase the property in about 3 years for a set price, which was advantageous for the developer, among others because of the expected appreciation of the property caused by changes occurring in its surroundings. 7. Consulting for BOŚ S.A. BOŚ Eko Profit developed a concept for a comprehensive offer to supply individual customers with PV module-based solutions (provided by selected, reliable suppliers and manufacturers), which included the audit of needs, financing, installation and warranty. The solution is ready for implementation as soon as the regulatory environment has stabilized. 4. Wind farms with a total capacity of 100 MW BOŚ Eko Profit provided financial consulting services in the credit process to one of the largest investors on the Polish wind power market. Debt financing for projects was provided by a consortium of banks, including EBRD and Bank Ochrony Środowiska. The total value of investment loans granted by the consortium has exceeded PLN 0.5 billion, out of which PLN 300 million originated from Bank Ochrony Środowiska. 8. Other implementations From the moment of its creation, BOŚ Eko Profit has also supported a number of investor in the process of obtaining investment and working capital credits, obtaining credit approvals (including those enabling the application of European Union financing), preparing business plans, restructuring programmes and structuring of projects. The company has also developed market analyses regarding financial services, which were contracted by Clients. 10 11

BOŚ Eko Profit ul. Żelazna 32 00-832 Warszawa tel. +48 22 850 86 64 projekty@bosbank.pl www.bosekoprofit.pl