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Knight Capital Group

!! Knight (NASDAQ: NITE) is one of the world’s leading financial services firms and has emerged as

a prominent part of the new Wall Street

!! Knight’s most important resource is our people; we employ over 1,000 professionals at 24

locations in the United States, Europe and Asia

!! Our business model integrates our resources enabling our investor and issuer clients direct

access and robust execution across all asset classes and in all of our capital markets activities

!! We offer high-quality trade executions through natural liquidity, capital facilitation when

necessary, and trading technology

!! Knight’s Capital Markets Group provides investment banking services and access to our many

resources for our corporate clients

Origination Sales & Trading Research

!! Originate, structure and market a range of

equity and fixed-income securities

including high-yield, high-grade and

convertible; provide related capital

structure advisory services

!! Core competencies include capital markets,

structuring, analytical support, new

product development, and rating agency

analysis

!! Knight has one of the largest and most

experienced institutional sales trading and

block trading teams in the world

!! Knight is the #1 market marker in NYSE,

NASDAQ CM, NASDAQ GM AND NASDAQ GSM

securities

!! Knight knows thousands of domestic and

international institutional investors

!! Equity Market Strategic Research offers

perspective on global markets and strategic

insight

!! Fixed Income Research takes a analytical,

fundamental “bottoms-up” approach to

issuer’s entire capital structure

!! Senior analysts have an average of over 17

years of experience in the industry

!! The team covers 80% of high yield and

distressed universe

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Knight’s Sales & Trading Capabilities

!! Knight is the #1 market maker in NYSE securities, with 17.25% total volume YTD

!! Knight is the #1 market maker in NASDAQ CM securities, with 47.71% total volume YTD

!! Knight is the #1 market maker in NASDAQ GM securities, with 42.16% total volume YTD

!! Knight is the #1 market maker in NASDAQ GSM securities, with 18.06% total volume YTD

Source: AutEx/BlockData FY2009

Global Sales Office Locations

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Knight is the Market Leader in Cleantech Equity Trading

Share volume in (1/1/2009 – 12/31/2009)

Source: AutEx Blockdata advertised US trade volume

#1 in Volume

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What Does Our Trading Share Mean to Capital Markets?

We track institutional buy and sell activity and generate

real time insight for our capital markets team

The best intelligence on the “new” Wall Street

Capital market targeting and placement is

significantly more efficient and cost effective

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Follow the Money

Source: Capital IQ

Total Revenue (!)

Market Cap at Year End (!)

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Debt Financing for Projects is the bulk of Investment

Asset Finance for Renewable Projects are 80% of capital – 70-80% debt financed

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PV Capital Requirements: Who Finances?

Source: Good Energies

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Renewable Energy Policies Matter

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Solar Markets: Germany vs. California

Sources: CPUC, CEC, SEIA and German equivalents.

Germany added 10 times more solar than California last year even though California’s solar resource is about 70% better

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The Holy Grail for attracting Capital

!! Regulatory stability

!! Avoid stop/start; no cap

!! Simplicity

!! Federal vs. State vs. IOU vs. Muni

!! Numerous variations

!! Barriers to entry – for capital and business

!! Predictable cashflows from selling power

!! Guaranteed transmission access

!! Must take contracts

!! Long term contracts to match long term assets

!! Reasonable Returns across different projects

!! Technology, size

!! Expedited Permitting

…the US share of worldwide solar shrunk to 5%

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Source: Gary Gerber, President of CalSEIA and Sun Light & Power, Jun09

Typical Germany paperwork for one project Typical California paperwork for one project

Could be a 1kW-sized project, but maximum

1MW (via CSI program). Even more paperwork

for California projects larger than 1MW (via RPS

program).

Could be a 1kW or 20MW-sized project, or bigger.

Frictional Costs add 10% on the ratepayer for California projects vs. German ones

Parasitic Transaction Costs & Parasitic Transaction Time are Near-Zero

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Global Financial Meltdown

!! Exacerbated winners from losers

!! Less tax capacity & capital available by institutional investors

!! Federal tax credits were becoming “worthless”

!! Equity supply dries up; returns increase

!! Fewer renewable energy projects

!! ~3,000 MW less wind farms installed in US in ’09 vs. ’08

!! Loss of 38,000 “green collar” jobs

Warren Buffet: “When the tide goes out you can see who has been

swimming naked”

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Shortfall in Tax Equity

Source – GE Energy Financial Services

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NREL Research Findings

!! Countries with FITs:

!! Have highest RE deployment

!! Have highest job creation; highest economist

benefits tied to industry, manufacturing &

services

!! Have counter-intuitively delivered lower-cost RE

generation than countries employing

“competitive” policies like the RPS & RO in the UK

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FITS vs. Alternative Policies

Wind power deployment in the EU:

Source: EUROSTAT, 2008; NREL, 2008

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NREL Findings - RE Policy & Cost

* Electricity price + Tradable Green Certificate (i.e. REC)

Source: BMU 2008; ISI, 2008; Fouquet, D. et al., 2008

FITs

RPS +

RECs

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NREL - FITS vs. RPS on Cost

Source: OPTRES, 2007; NREL 2009

" NREL Research finding that FITs offer better value for money

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How Does Ontario’s RE Policy Compare?

Ontario has the best RE policies in the Western Hemisphere

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Investment Return for ON FIT

Yield to worst for Independent Power Producers

Implied Debt Costs

Source: Bloomberg, Knight as of 01/25/10

Notes: MIR: Mirant Corp, NRG: NRG Energy, RRI: Reliant Energy

Source: Bloomberg, Knight as of 01/25/10

Notes: ONT: Province of Ontario, FPL: FPL Group

Yield to worst for Electric Utilities

MIR: 9.1%

NRG: 8.4%

RRI: 8.2%

FPL: 4.9%

ONT: 4.2%

!! Investment appetite has returned – HY index has improved from 20% to ~ 8-9%; bank appetite remains restrained

!! The FIT must take obligation from OPA (100% owned by the Province of Ontario) provides a stable source of cash

flows for FIT projects and makes them financeable

!! Province of Ontario’s (Corp rating: Aa1/AA-) bonds are trading at 4.2%; similar regulated US utilities trade

within 100bps risk premium Treasuries

!! FPL Group’s (Corp rating: A2/A) bonds are trading at 4.9%; US IPP’s long term bonds are trading between 8%

to 9%

!! Project Finance debt spreads for RE projects 300-350bps for all in costs 6.5-7%; cost of debt not the issue

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Ontario Projected IRRs

OPA targeted 11% levered IRR

OPA targeted 11% levered IRR

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Attractive Post Tax Levered Equity IRR Returns

Solar Ground Mounted (Installed $4.20-5.60)

Wind Onshore (Installed $2.50-3.20)

Scotia Capital Research

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Conclusion

!! Investment is fungible – it will flow to the best risk weighted returns

!!Without debt financing RE isn’t scalable

!! High IRRs are healthy but based on European experience show flexibility

!! Get organized to protect FITs; articulate benefits

Investors will pay a premium for liquidity – Knight is the leading

provider of equity liquidity

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Contact Information

Corporate Headquarters

545 Washington Blvd Jersey City, NJ 07310

New York City – ECM Headquarters

405 Lexington Ave, 46th Fl New York, NY 10017

Greenwich, CT – DCM

Headquarters 1 Greenwich Office Park South

2nd Floor Greenwich, CT 06831

Capital Markets Office Locations

Capital Markets Contact Information

Please contact John Burges for Clean Tech and Energy inquiries:

jburges@knight.com

212-479-7498