Project Developer is planning to build a power plant producing electricity and heat in the South-East of Hungary that has an authorized capacity of 50 MWel and could reach a capacity of 67 MWel. Developer has exclusive access and all the needed licenses to exploit the largest geothermal reservoir in Hungary. Capital structure: Total Investment Cost EUR 224mn, of which _18mn already invested by Project Developer. - 25% will be financed with Equity (_ 51.5 ml - including EU Capital Contributions) - 75% with Debt - Proposed Transaction is to raise EUR 25mn Investment Rationale Attractive regulatory framework: - Feed-in-Tariffs granted by the Hungarian Government - New finance for Hungarian renewable energy production (EU plan 2014-2020 provides funds for 8,3 billion euros) - New concession law 2013 includes geothermal, oil, gas and shale development Favorable geographic location: - Earth's crust thinner than average (~25 km) due to sub-crustal erosion - Geothermal gradient higher than the world average - Largest geothermal energy potential of low and medium-enthalpy in Europe - Presence of high-enthalpy resources, not exploited yet Attractive competitive environment: - Currently zero-competition on the electricity production segment - New projects are carried on by major local utilities - Hungarian Government is supporting energy projects for reducing the dependency from energy imports - Republic of Hungary issue the National Renewable Energy Action Plan 2010-2020: Geothermal Energy new installed power expected 57MW electricity (Action Plan page 201) Experienced Management & Technical Partners: - The management has developed a strong know-how in the renewable energy sector (photovoltaic 30 MW, Biogas 3 MW) Financials: mn EUR Revenue EBITDA 2015 11.6 10.9 2016 39.8 33.6 2017 40.6 34.2 2018 41.4 34.9 Project IRR is min 14%