Opportunity to Invest in a Biogas Plant in Yorkshire Slide number 1 - PowerPoint PPT Presentation

Opportunity to Invest in a Biogas Plant in Yorkshire Slide number 1 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Opportunity Overview  Two 1.25 MW-equivalent biogas projects near Skipton in Yorkshire  Capital expenditure of £4.5 million per plant with £1.35 million equity  Renewable Heat Incentive feeding biogas into the national gas grid gives 33% before-tax IRR over 5 years  RHI incentive of 7p per kW/h and payment of 3p per kW/h for base cost of gas  Projects can get Enterprise Investment Scheme (EIS) approval and be put into a Venture Capital Trust fund  EIS offers 30% income tax rebates and 28% capital gains tax deferrals  48% after-tax IRR over 6 years paid as tax-free quarterly dividends from VCT  Innovative Risk Management  Feedstock contracts and risk/reward sharing with farmers  Insurance guarantees on performance  Exit risk eliminated by giving plant to farmer and entrepreneur after 5 years Slide number 2 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Enterprise Investment Schemes  Established in 1992 to stimulate investment into new businesses in the UK by UK taxpayers  Extended to allow projects outside the UK in 2012  Advance assurance received from HMRC for Raw AD (Lincolnshire project) as an EIS ( 1st of 26,000 start-ups to be helped by Grant Thornton’s Growth Accelerator programme )  Investors can claim 30% tax rebates on their total investment against income tax payments made in the current or prior tax year + 28% against capital gains tax  Legal and ethical way of saving tax and investing in start- up companies that benefit the UK economy & society Slide number 3 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Enterprise Investment Schemes • Established in 1992 to stimulate investment into new businesses in the UK by UK taxpayers • Extended to allow projects outside the UK in 2012 • Advance assurance received from HMRC for Raw AD (Lincolnshire project) as an EIS ( 1st of 26,000 start-ups to be helped by Grant Thornton’s Growth Accelerator programme ) • Investors can claim 30% tax rebates on their total investment against income tax payments made in the current or prior tax year + 28% against capital gains tax • Legal and ethical way of saving tax and investing in Sunday Times (UK) Sunday Times start-up companies that benefit the UK economy and 3 March, 2013 03/03/2013 society Slide number 4 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Biogas Nord’s Anaerobic Digestion Process Guaranteed feed-in tariff of ± 25p per kWh = £1 million annual before-tax profit per plant = 33% IRR (annual return) over 5 years Slide number 5 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

How an IRR of 33% is Ensured  Planning Risk (planning permission not received)  Two plants in Yorkshire have received planning permission and grid integration approval  Development Risk (plant is not built on time or at all)  100% transferred to technology partner Biogas Nord  Biogas Nord has built over 400 plants (6 in the UK) and is in the top 3 in world by market share  Feedstock Risk (farmer fails to supply enough feedstock)  An insurance bond covers defaults on feedstock contract  The feedstock contract gives Raw AD a usufruct over the farmer’s land so it can be used to produce feedstock  Feedstock can be sourced from multiple sources if crops fail Slide number 6 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

How an IRR of 33% is Ensured  Revenue Risk (electricity revenue is irregular or stops)  Government-guaranteed, indexed linked, 20-year feed-in tariff secured before your money is invested in the plant  Plant Performance Risk (plant doesn’t perform properly)  Biogas Nord’s plants have an industry -leading average uptime of 92% backed by an 88% performance guarantee  Catastrophic Event  The farmer is required to insure against this risk Slide number 7 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

How an IRR of 33% is Ensured  Exit Risk (no buyer for the plant is found)  Eliminated entirely, as the farmer and entrepreneur will be given the plant after 5 years of operation Slide number 8 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

UK Biogas Plant – ‘The Big 5’ Biogas Nord (Plant Developer) 1. Top 3 in the world by market share (400 plants) and no. 1 of world’s top 10 by mkt. share in plant performance 2. Ofgem (Office of Gas and Electricity Markets) Govt-guaranteed , index-linked feed-in tariff for 20 years 3. Gothaer (Top European Renewable Energy Insurer) Guaranteed 88% plant uptime and electricity production Vendor Finance (Debt Finance) 70% vendor loan financing for plants at low interest Farmer Insured feedstock supply and plant buyer to ensure exit Slide number 9 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Benefits of Biogas Investment  Minimum safe 33% Annual Return on investment over 5 years through Renewable Heat Incentive  28% Capital Gains and Inheritance Tax deferral (2 or 3 years retrospectively and one year in the future)  Farmer doubles annual profits for 15 years compared to selling sugar beet crop  Renewably Generated Electricity for 2,750 households  Eliminates thousands of tons of Greenhouse Gases  Produces high-quality Natural Fertiliser as a by-product that improves the farmer’s land and can be sold by him  Socially Responsible and Environmentally Friendly Slide number 10 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

The Way Forward 1. Ask as many questions as you need to 2. Read our investor memorandum, do your due diligence and seek professional advice if necessary 3. Decide whether to invest and how much to invest 4. Complete the necessary paper work and provide us with proof of ID and address 5. Transfer your investment into the Custodial Account of Woodside Corporate Services, a FCA-registered custodial services provider, to keep it safe in the event we fail to raise the capital for the plant Slide number 11 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

The Way Forward 6. Become a Member of our exclusive community of investors and get FREE access to online information and events about investment and wealth creation (visit www.iinvest.net) 7. Introduce the Opportunity to friends and family to help us raise money we need and earn referral fees Receive Your Share Certificates once we’ve raised 8. £1.35 million for first biogas plant 9. Receive Your Tax Rebate directly from HMRC 10. Start receiving quarterly dividends one year after the plant is commissioned Slide number 12 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns

Contact Stephen Larkin (CFO) Email: stephen.larkin@rawad.co.uk UK Mobile: 0782-536-8835 UK Office: 0207-638-5587 Slide number 13 August, 2013 Environmentally Friendly Investment Opportunities Offering Superior Returns