China Solar & Clean Energy Solutions, Inc. · OTC:CSOL
China Solar & Clean Energy Solutions — Investor Presentation (November 2007)
26 slides from China Solar & Clean Energy Solutions's investor presentation, Nov 28, 2007
Slide 1: China Solar & Clean Energy Solutions
EAR} st4ES CSCE Earl CHINA SOLAR & CLEAN ENERGY SOLUTIONS Integrated Clean Tech Energy Solutions OTC BB: CSOL NOVEMBER 2007
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that involves known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements. including changes from anticipated levels of sale
Slide 3: Company and Financial Overview
Se ncial Overview ($ in millions) Provides Clean Technology and renewable energy solutions for business and residential . 214 customers throughout the PRC Ba . " jodi a 210 Extensive product portfolio including, é a components, parts and after sale services 6 le Net ibis F F 4 — Solar division manuf
Slide 4: CSOL History and Milestones
«ee CSOL History and Milestones = + June 2004 — Purchased Bazhou Deli Solar Energy Heating Co., Ltd. — Founded in 1997 — Engaged in designing. manufacturing and selling renewable energy systems to produce hot water and for space heating * April 2005 — Became US public company through reverse merger
Slide 5: 100% 100% 100%
100% 100% 100%
Slide 6: Solar Hot Water Heater Products
+ Evacuated-Tube Solar Hot Water Heater — Generates up to 63 Gallons of hot water per household daily — Can be used year round and in all climates * Flat Plate Solar Hot Water Heater — Generates up to 26 Gallons of hot water per household daily — Costs less than evacuated tube model and easier to ma
Slide 7: Boilers, Stoves and Biomass Products
* Boiler and Stoves — Coal-fired. small units for residential heating and cooking — Used to replace the existing inefficient and smoky biomass stoves and reduce emission in rural areas * Biomass Products — Designed to utilize a variety of crop stalks. other forms of agricultural plant and forestry i
Slide 8: Revenue Composition
Révenue Composition Revenue Composition by Region 30% 10% "20% 1B Heibel m Beijing G Shandong @ Other Revenue Composition by Products 28% Solar Water Heater @ Coal Boilers & Space Heaters D Spare Parts & Services Il Waste Heat Recovery Products
Slide 9: Solar Water Heater Cost Comparison
Solar.Water Heater Cost Comparison = Cost Comparison olar initial equipment costs are higher than gas and electric water systems. but > Solar possesses Jong ten cost advantages compared to gas and electric water heaters . — Minimal ongoing maintenance g g os - 2x Jonger useful life (15 years vs. 6 a
Slide 10: China Market Overview
ee China Market Overview China is the largest manufacturer and consumer of solar water heate! globally* 70% of the world market 19% average annual growth from 1999 to 2005 60% of total sales generated from second-tier cities and suburban areas 15% expected CAGR in solar water heater demand between 2
Slide 11: China Market Overview
ee China Market Overview = Over 3500 manufacturers comprise this fragmented market which creaté vast acquisition and consolidation opportunities * Favorable climatic conditions in China — More than 2/3 of areas in China receive 2.000+ hours of sunlight annually — Total annual solar radiation: 1.38 m
Slide 12: Growth Drivers
~~ ™ Growth Driyers www. Rapid economic growth in China — Increasing disposable income in rural areas — Rapid urbanization and booming housing market — Strong commercial construction business Rising energy prices and sustainability of fossil fuels Increasing environmental protection from the governm
Slide 13: Strong Government Support
eee Strong Government Support er * On February 28, 2005, the Chinese Government passed the Chinese Renewable Energy Law which went into effect on January 1, 2006 — The goal is to increase the consumption of renewable energy from less than 1% currently to 10% by 2020 — Allstate power grids are requir
Slide 14: Highly fragmented industry with no dominant player
+ Highly fragmented industry with over 3,500 manufacturers and no dominant player * Only 51 companies have sales over 10 million RMB (*$1.2mm), with the top ten companies together controlling only 17% of the domestic market * By controlling a well-diversified and comprehensive regional distribution
Slide 15: Tianjin Huaneng Group
Tianjin Huaneng Group + 51% majority ownership was purchased by CSOL for approximately $1.7 million in cash on July 1,2 — Huaneng has strong distribution channels for solar water heaters and furnaces in Northern China — 51,000 m?research and manufacturing facility — IS809001:2000 Certified + Diversi
Slide 16: Waste Heat Recovery Technology
> maeW aste"Heat Recovery Technology Maximizes thermal efficiency for industrial customers Widely used in many industries such as chemical, paper making, ete. RO] justifies investment from savings generated through waste heat recovery systems Industrial customers are required to improve energy effic
Slide 17: Project: Xinjiang Bayi Steel Air-to-Air Heat Recovery
* Project: Xinjiang Bayi Steel Air-to-Air = Heat Recovery system for 75 ton furnace * Cost: $1.3 million + Time to implement: 100 days + Air temperature (in): 1472 F° + Air temperature (out): 356 F° + Steam output: 20 ton/hour + Steam price: $17.3 - $18.7 per ton * Operation: 340days per year Paybac
Slide 18: Strong Research and Development Team
strong Research and Development Team ee. + Tianjin Huaneng has continually committed to research and development — Most spent in designing and manufacturing new products. — Other R&D activities are conducted based on customers! specific request for certain new functions or improvements on existing p
Slide 19: Focus on rural market
Focus on rural market — The potential size of the rural market is 8 times larger than that of the urban market — Less restrictions on installation — Energy prices are historically at least 5x higher than in the metropolitan areas + Targeted advertising — Advertise on government magazine to directly
Slide 20: Sales and Marketing Strategy
+ Sales and Marketing Strategy — Expand and strengthen distribution and service networks in China by partnering wi + Strategic Footprint — Organic growth complemented by disciplined approach on acquisition and consolidation to mitigate capacity constraints and open up new markets + Integrate Solar H
Slide 21: Income Statement Summary
Three months Three months ended September 30, | ended September 30, 2007 2006 Fiscal year ended | Fiscal year en December 31, 2006 | December 31, 2005 $12,629,636 $6,565,606 $21,468,313 $15,577,477 Cost of Goods Sold $10,078,609 $5,190,840 $16,842,994 $11,868,459 Gross 4 $2,551,027 $1,374,766 $4,625
Slide 22: Key Operating Metrics
Key Operating Metrics —_— Nine Months Ended September 30, 2007 | Nine Months Ended September 30, 2006 Revenue +56.7% +37.8% Gross Profit +52.2% +24.7% Gross Margin 20.9% 21.5% Operating Income 473.7% -8% Operating Margin 74% 5.6% Net Income +35.4% 4.6% +53.8% +5.9% www.deli
Slide 23: Balance Sheet
September 30, 2007 December 31, 2006 Total Assets Liabilit ities Accounts Payable Cash $3,311,421 $3,212,065 Accounts Receivable $6,408,141 $870,446 Inventories $5,238,184 $315,765 Total Current Assets $16,335,129 $9,245,841 Equipriane ny; Plantand $9,716,521 $6,333,892 $29,245,566 $12,716,185 $1,62
Slide 24: Experienced Management
delisolar. Experienced Management . Deli Du, President & CEO - Mr. Du founded China Solar & Clean Energy Solutions, Inc. in 1997 and has bee its controlling equity holder, chairman and chief executive officer during the past 5 years. Since June, 2004 he has also been a director and manager of Deli S
Slide 25: Investment Conclusions
ewee-Investment Conclusions eo + Expand solar and other renewable energy product portfolio with proprietary additions which address large market opportunities * Grow revenues through strategic complementary acquisitions + Leverage increasing government regulation, rising energy prices and strong sec
Slide 26: Company Contact
¢ Company Contact: Gary Lam Phone: +86-10-6385-0516 E-mail: garylam8899@gmail.com Web Site: www.delisolar.com ¢ Investor Relations Contact: Hayden Communications International, Inc. Matthew Hayden, President Phone: +1-760-994-0034 E-mail: matt@haydenir.com
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