EV Battery Leasing Business in Jeju

Islanded Microgrid New Renewable Energy

Distributed Generation Energy Self-sufficient Island

EMS, ESS Energy Management System

For Demand Response

Thermal Discharge Heat Utilization New Renewable Energy

Negawatt Market DR, V2G(Vehicle to Grid)

EV Charging Service

Driving force of 6 New Energy Businesses

1 Service Overview

Battery Lease Service(EV Bus)

Provides an integrated battery lease service

including battery swapping, charging and care service

\

TOC (Total Operations Center)

EV BUS Service

Battery charging & swapping service in BSS Station

https://www.youtube.com/watch?v=dWxvc9f_nEk

BSS Complex

BSS Complex can be used for numerous purposes

쇼핑, 업무, 요식 등 다양한 문화시설을 융합복합 문화시설을 통한 서비스 연계사업 창출

BSS 스테이션 상부에 태양광 패널 설치를 통한 신재생 에너지 연계

Multiplex EV Charging

Transit Center International Event for EV

Battery Lease Service(EV Taxi/Rental Car)

By excluding battery price, the battery lease model reduces the high purchase cost of an electric vehicle(EV)

Taxi/Rental Car

Company EV Manufacturer

Charging Infrastructure for EV Taxi/Rental car

183 standardized fast chargers & close collaboration with KEPCO SPC EV charging business

Public

100 fast chargers

KEPCO

SPC

Taxi-first

183 fast chargers

For rental cars

11 fast chargers / 113 slow chargers

JEJU

SPC

Energy FinTech Platform

B2C payment platform designed for EV bus·taxi·rental car users and EV drivers

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Payment

·Wire Transfer Payment & wire transfer service for energy services based on

electronic money, EnerCheck, and membership points

Energy portfolio service through an analyzation of

energy consumption activities and history

Data

Analysis

Energy FinTech platform service including crowdfunding, energy big data, etc.

Platform

Service

Connection to New Renewable Energy

Connection to new renewable energy sources through BSS stations

Sinchang wind power plant &

Wolryeong renewable energy pilot project

Total Capacity 1,863kW

Gasiri Wind Farm

Total Capacity 15,000kW

Seogwipo BSS stations

- Solar power

Jeju BSS Station

-Solar power

Gimnyoung/Dongbok /

Haengwon Wind Farm

Total Capacity 42,950kW

Grid Connection

New Renewable - Energy

Charging B

atteries

Possible only for a single company to share

electricity between business divisions (Illegal to

sell/buy electricity to/from different company)

BSS Station EV Taxi/

Rental Car Charger

A Single Company

(BEGINS JEJU SPC)

2 Business Plan

Battery Lease Business in Jeju Island

Starting in 2015, BEGINS will commence implementation of 119 EV Buses and 1,000 EV Taxi / Rental Car

Year 3 : 9

Year 1 : 15

West Coast Route

Year 3 : 10

Year 2 : 11

Jeju

Inner City Route

Year 3 : 9

Year 1 : 16

East Coast Route

Year 2 : 22

Year 1 : 18

Seogwipo

Inner City Route

Year 3 : 9

Middle Route

(5.16 / Jungmun)

Business Expansion in Jeju(~2030)

Current BusTaxiRental Cars in Jeju : 463 Buses, 5,375 Taxies, 20,720 rental cars

Domestic Expansion

2020 entry to bus market, market share 5.2%(6,200) 2030 expand market share to 38%(48,000)

Step 1

Pohang, Geoje, Changwon,

Gumi, Naju, etc.

~’17 Expansion to

small-/medium-sized cities

Seoul and 6 metropolitan cities

Step 2 ~’20 Expansion to large cities

Expansion to long-distance bus

and to EV taxies·rental cars

Step 3 ~’30 National expansion

2018 2016 2017 2019 2020 2025 2030

Pohang

3 BSS stations

42 EV buses

Chuja Island

Micro-Grid Project

BEGINS-LSIS

Seogwipo

14 BSS stations

119 EV buses

Geoje

2 BSS stations

64 EV buses

Seoul

2 BSS stations

28 EV buses

Seoul

70 BSS stations

1,023 EV buses

Seoul

190 BSS stations

2,900 EV buses

• EV bus : 842 (including 119 EV buses in Jeju)

• EV taxi·rental car : 1,000

• EV bus : 6,200(MS 5.2%)

• EV taxi·rental car : MS ~3%

• EV bus : 48,000(MS 38%)

• Passenger EV : 100,000 (EV taxi MS ~50%, rental cars and passenger EVs MS

~20.4%)

Global Expansion

Planned promotion of phased expansion into leading countries in the public transportation market

(e.g. Japan, Europe, China)

④ Europe Expansion to Europe & NA based on

construction & management process for

overseas EV bus systems

④ North America(Quebec) Meeting with the representative of Quebec gov’t with regards to EV bus system scheduled in May

2015

⑤ China Export of BEGINS EV bus system

and service model Based on know-how of overseas expansion

② Bali → Indonesia Base for expansion to Europe

(Based on geographical proximity and

similarities to Jeju Island)

③ Malaysia → SE Asia Expansion to SE Asian countries

including tourism destinations

in Malaysia

① Japan ORIX-BEGINS Japan

(First target country

based on geographical proximity)

④ Chile(Santiago) MOU between Chile & Korean gov’t

scheduled in May 2015

3 Economic Impact

Economic Impact

Expected Economic impact of c. KRW 703.2bn & job creation of over 5,600 in 10 years

Energy Demand Management

Ripple Effect to other industries Benefit from CO2

Reduction Job Creation

• Energy demand management capacity of

an EV bus : 112kW/day

• Electricity fee : KRW 108/kW

• Based on BOK Input-Output matrix(2012)

• Total investment x Input ratio x Index from

Input-Output matrix

• Reduction CO2 : 60.7tCO2/yr

• Benefit : c. KRW 10mm/yr

• Battery lease business: 262/yr

• Related industry sectors(MRO, car rental service,

vehicle manufacturing, etc.): 1,497

Economic impact of c. KRW 7,032 in 10 years

KRW 110.9 KRW 56.5

KRW 2,738 KRW 3,794

KRW 129.6 KRW 203

4,113 1,582

• Based on the 2,900 dead batteries during

the 10 years of business

EV Taxi/Rent car

EV Bus

B

T/R • Total investment x distribution ratio x rate (Total

Input/intermediate input) • Reduction CO2/yr x CO2 handling

cost x Expansion of the EV numbers

• (employment coefficient * total investment)/bn

(1 person/10 yrs) (100 million/10 yrs) (100 million/10 yrs) (100 million/10 yrs)