Aurelia Turbines

The most efficient small gas turbines in the world

Short Investor presentation, Jan 2016

Introduction in just three steps.Efficiency is the key in power generation. – The more efficient the power production is, the lower

operating costs it has.– This benefit is gained across any fuel / pricing.– Our product has the superior efficiency.

We focus first in selected markets with little or no competition.– Take advantage of customers currently without an

energy efficiency option.– Future products with even better efficiency will address

the whole market.

Strong demand of our products.– 20.8 M€ pipeline to support 2016 sales of 4 M€– 98 M€ worth of LOI’s signed

• From only our first 3 distributors. Now more than 20 in discussions.

We provide small gas turbines (400 kWe), that have superior electrical efficiency.– Above 40% towards less than 33% in competing technology

The technology is based on 30+ years of R&D at Lappeenranta University of Technology (LUT), Finland.– Aurelia is a beneficiary of 10 M€+ R&D of one of the world’s

leading high speed research university– All freely transferable IP owned or exclusive to Aurelia

We focus on applications, like small scale industrial steam installations, where existing market players can offer very little or no competition.– Europe alone, annual market estimated to grow quickly from

small to over 1 bn €– Customer ROI’s even 1.6 years

Our product and its value-added features enables pricing on customer benefits– We can multiply the gross margin from as low as 10% on

existing products even up to 50%

Superior electricity efficiency with LOI’s worth ~100 M€!

The team has a depth of both technology expertise and international business experience in this market.– Previous experience; VC backed, IPO, large deals, strategic

investors…

We have wide access to markets; still being a start-up, we have signed LOI’s worth 245 turbines representing revenue stream of almost 100 M€.

The first deliveries are planned to ship out by the end of Q2/2016. With a negotiation pipeline of 52 turbines, we look forward to ship 10 units in 2016.– > 4 M€ in revenues in 2016

We seek 1.2 M€ funding from investors that can help us in making Aurelia extremely successful.– Funds will be used to finance first sales in 2016 and enable

serial production in 2017– Finnish government leverage even up to 3 M€– Preferably investors with corporate contacts, follow-on

funding, leads to M&A and IPO

CHP, Combined Heat and Power

Aurelia has experienced, international team.

Tony Hynes, BA (Law)– C- & VP positions; GE, Calnetix,

Capstone, Bowman turbines, etc.– Excellent track record of value incr.

deals of 300+ M$ in last 36 months– Truly international network

Trevor Rainbow, MBA– Director positions; Bilfinger, Capstone,

E.On, etc.– Excellent track record of sales network

development in EMEA -region especially on small gas turbines

Matti Malkamäki, M.Sc. (Eng.)– Gas turbine experience since 1996,

small gas turbines since 2002– Entrepreneur since 2002– As CEO listed a company in Frankfurt

stock exchange 2010– Experienced in DE/CHP, technically and

economically oriented

Jari Backman, Prof.Dr. (Eng.)– Professor in LUT since 2009– High speed R&D machinery since 1983– LUT projects include Sulzer Pumps

Finland, Compair / Quantima, The Switch, Tri-O-Gen, Axcomotors, Visedo…

Cogeneration of power and steam can deduct the primary energy need as much as 40%.

Cogeneration is widely used in larger industrial sites, but hardly never in smaller ones due to technical constrains.

The amount of SME industrial sites is big.– In EU more than 95% of all the companies are SME.– Typical sites: food industry, dairies, breweries, plastic

industry, foundries, workshops, feed industry, glass industry,, etc. etc.

The savings potential on SME industry is really big.– IEA: Estimation of the annual energy efficiency savings

potential in SME industry is around 7-22 ExaJoule’s. Of this potential a considerable amount would come from cogeneration possibilities.• The annual power generation of South-Korea equals to ca. 1 ExaJoule.

Industrial sites less than 2 MWe have very limited technical possibilities to establish cogeneration.– Aurelia’s turbines are designed to solve this issue.

Primary market: cogeneration of power and steam on SME industrial sites.

Sources: IEA, EU energy programs, German CHP association (CHP, Combined Heat and Power)

Power from grid, own boiler.

Cogeneration of power and steam.

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000

Pow

er C

apac

ity [k

W]

Steam Capacity [kW]

Dresser-Rand KG2-3S Kawasaki GPB17D Capstone 3*C200 (C600)

Capstone C200 Aurelia A400 Aurelia 3*A400 (1200)

Very limited existing offering– Engines: > 2 MWe

• Not shown on the graph• Only limited control possibilities

– Gas turbines: > 1.5 MWe

– Microturbines:• Even very small applications possible• Very low power to steam ratio

doesn’t provide for good economic viability

Aurelia is the only profitable technology in this segment– Steam solution used with bigger gas

turbines, but starting from 300 kWe

– Superior power to steam ratio

Microturbines

Aurelia

Gas turbines

Cogeneration capabilities of steam and power

Source materials: Dresser-Rand and Kawasaki, own data-sheets; Capstone, the data sheets of Saacke GmbH.

Until now almost totally untapped market

Example of new applications; Aurelia makes it possible to have an effective steam-CHP below 2 MW – as the first one ever!

General Overview

Food production facility in Veneto-region– Known, local brand factory– Project part of Aurelia’s distributors’ existing portfolio– Customer needs power and steam

• Power for own consumption

Installation– One A400 turbine, natural gas– Duct burner– Heat recovery steam boiler– Existing boiler plant works as back-up / peak-up

Future potential– This customer alone has more than 15 similar

installations• Representing a fraction of the industry

Financial Calculation

All €-values ‘000 €.

All the costs/earnings are existing customer figures. The plant is operational 5 days a week. If it would be 24/7, the savings would be approx. 25 % more making the pay back time approx. 1.6 years.

Customer case; food production facility in Italy. ROI of 1.6 years achievable!

Item Annual valueValue of electrical energy 470,3Value of steam production @6Bar 340,3 Value of hot water 77,6 Tax for electrical production - 34,0 Tax for electrical production for SEE SEU plant - 5,1 Cost of natural gas (new boiler) - 219,9 Cost of natural gas (turbine) - 252,3 Maintenance full service turbine - 20,0 Maintenance full service other equipment - 15,0 White Certificates TEP 51,3 Total Yearly Saving 393,0 Total Investment 800,0PAY BACK in years 2,04 PAY BACK in years without subsidies 2,34

Aurelia plans for quick growth supported by its industrial partners.

Lean company structure enables profitable growth. The product manufacturing will be done in the beginning by our partners.– Own investments are minimized.– We pay only for the labour – not added value.

True scalability. Our product is a serial product.– The alterations needed for different projects do not

exist or are very minimal.– The components used are 3rd party serial products.

Further finance information available at request.

Item 2015 2016 2017 2018Turbines delivered 0 10 68 146

Headcount 5 25 71 117

Revenue 0.0 4.1 28.0 59.4

Product Margin(1 N/A 28.0% 35.6% 50.0%

EBIT -0.8 -1.1 1.0 9.5

Net Profit -0.3 -1.0 0.9 7.6

Financial planning made according to IFRS.1) Product Margin for engines can be as low as 10%. The target for Aurelia is 50% when serial production picks up.

Aurelia Turbines – now seeking funding for early growth.

Small gas turbines (400 kWe)– Very high electrical efficiency, 20% better than competition– Pricing possible on customer benefits

Solid technology in the products– Leading university know-how– IP’s with the company– Clear path for future products

First focus on applications with little or no competition– Customer ROI’s even 1.6 years– Fast growing market

Truly exceptional team– Technical and international business– IPO, VC backed, large deals

Strong demand of our products.– 20.8 M€ pipeline to support 2016 sales of 4 M€– 98 M€ worth of LOI’s signed

• From only our first 3 distributors. Now more than 20 in discussions.

We seek 1.2 M€ funding– Funds will be used to finance first sales in 2016 and enable

serial production in 2017– Finnish government leverage even up to 3 M€– Preferably investors with corporate contacts, follow-on

funding, leads to M&A and IPO

EXIT oriented company

IFRS from day one. Auditor: KPMG. Immaterial service provider: Berggren. Legal advisor: Peltonen LMR. All the documentation in electronic format. Technology covered in technical journals.– All this enables us to be well-prepared for any exit-

process.

Please contact

Matti Malkamäki, CEOmatti.malkamaki@aureliaturbines.com+49 176 3063 8250