Slide 1: Cinco de Mayo Shareholder Update
) Principal So Cinco de Mayo Shareholder Update Ss Michael Gorton BS, MS, JD 1 P CEO Principal Solar, Inc. FSS mg@PrincipalSolar.com
Slide 2: Forward Looking Statements
a P Forward Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
Slide 3: Part One: State of the Industry
Part One State of the Industry An Overview of the Industry SOLAR)
Slide 4: Energy Production Total 1950-2011
rt One State of the Industry Quadrittion Btu Energy Production total 1950-2011 2 8 8 8&8 8 8 3 8 8 ° ao 7880 9 180 780 300 Ey EIB) coe. rey homeo Nieaton Sos AR
Slide 5: Finite World Energy Use
FINITE 350 per year WORLD ENERGY USE - Sy 78) HYDRO?« peryear a 0.3 = 2 peryear ai Geothermal (0.3 Pervest TIDES* TOTAL RESERVE 4 ©R.Perezet al.
Slide 6: New Power Plant Production: Traditional vs Solar
a os One e of the Industry New Power Plant Production Traditional vs Solar $0.210 $0,180 $0,150 $0,120 30.090 2009 MIT Study Po $0,060 ° is $0.000 Advantages No Moving Parts Low maintenance Fuel is free No Pollution $ per KWh Minimal operations Low H,0 Required Peak Time Production Site Flexible x e
Slide 7: Electricity Generation 2013 and 2025
of the Industry Electricity Generation 2013 Coal ™ Natural Gas ® Nuclear ™ Petroleum _ . Electricity Generation 2025 Hydro ‘Other Copyright Principal Solar, Data Source: E1A.gov Coal Natural Gas = Nuclear Wind & Other mHydro Solar SoA
Slide 8: Growing Credibility: Smart Money Looking for Solar Investments
e Industry Growing Credibility Smart Money Looking for Solar Investments pe bp Bankof America 2 as =i5 Google MetLife Berxsamre Harnaway wc. a Deutsche Bank Grid P; Recent Papers qoaeiae Bloomberg els BCG ‘Tue Boston Consutrinc Group: THE WALL STREET JOURNAL. P BARCLAYS
Slide 9: Upcoming Goals
rincipal Solar Upcoming Goals 1 Build PSWW baseline valuation by completing $100M - $250M in acquisitions 2 Public offering moving company from OTC to NYSE or NASDAQ 3 Utilize luminary caliber industry expertise and resources to build Gigawatt Facilities. a ns 7 - — ae Sos Ar
Slide 10: Upcoming Goals: Public Offering Moving to NYSE Markets
Upcoming Goals ‘incipal Solar 2 Public Offering moving company from OTC to NYSE Markets NYSE ITEM REQUIRED CURRENT Stockholders’ Equity S4M $ (170,827) Average Daily Volume 2,000 or more for 6 months Market Capitalization N/A Distribution 400 Shareholders ~150 500K shares publicly held 157,217 Share
Slide 11: Upcoming Goals: 2014 Acquisitions Pipeline
a a incipal Solar Upcoming Goals la. Build PSWW baseline valuation by completing $100M+ in acquisitions PIPELINE 2014 ACQUISITIONS Status ST PPA info MW | Capital Req Term Sheet 20 yr PPA w local utility + Pending | TN | 10 yr premium from TVA 8.1 $14,000,000} TS pending | AZ 20 yr PPA w nation 33 $
Slide 12: Sample $100,000,000 Acquisition (Tax Equity Flip)
‘incipal Solar Upcoming Goals la. Build PSWW baseline valuation by completing $100M+ in acquisitions Sample $100,000,000 Acquisition (tax equity flip) *40% Debt = $40,000,000. PPA income will service the P&I. *60% Tax Equity = $60,000,000. Tax Equity investor earns 10% IRR (ITC + MACRS + Cash Flow).
Slide 13: File S-1, Registering Non-Affiliate Shares
incipal Solar Upcoming Goals 1b. File S-1, Registering Non -Affiliate Shares Purchased in Prior Rounds Registration filed December 23, 2013 First round of answers to SEC questions (S-1A) filed May 2, 2014 3,317,870 Shares (proposed) in Registration Once Registration is approved by SEC, we will begin
Slide 14: Build Gigawatt Facilities in Texas
incipal Solar Upcoming Goals 3 Utilize luminary caliber industry expertise and resources to build Gigawatt Facilities. * Texas insolation as good as nearly anywhere in the desert southwest * Better business environment * Better regulatory environment * Texas is an energy state * Texas is in the cent
Slide 15: Capital Requirements
Capital Requirements Acauisition/Construction Capital Sourced by Carlyle Capital Markets Sos AR Range: $10M - $1B Debt - P&I Tax Equity— 5 Year flip Non-dilutive Creates significant asset base Operating Capital Angel Round 5,000,000 Common Stock $1.00 per share 19,017,225 before round Represents 20.
Slide 16: Financial Highlights
incipal Solar Financial Highlights Balance Sheet Statement of (December 31, 2013) Operatio: Cash $122,533 Total currentassets 308,399 Solar arrays 6,984,936 Total assets $7,433,979 Total current liabilities 1,828,678 Long-term debt 4,652,979 Total liabilities 7,604,806 Total stockholders’ equity $(1
Slide 17: Accomplishments
Accomplishments * Acquisitions complete to date * Capstone Solar * Mill77 * Step Guys »* PowerHouse 1 * Documented Due Diligence Process * Capital Sourcing from Carlyle * Robust Pipeline * 175 MW in pipeline * Multiple projects in evaluation * Principal Solar Institute * 13 White Papers * 17 Webinar
Slide 18: Questions
"Questions : So AR