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Company IntroductionMember of the South African Photovoltaic Industry Association
Member of the Green Building Council of SAMember of SAPVIA’s Grid Access Subcommittee You have to learn the rules of the
game, and then you have to play better than anyone else.
- Albert Einstein
Table of Contents
2 TABLE OF CONTENTS
1. Cover Slide
2. Table of Contents
3. Executive Summary
4. Key Features
5. Organogram
6. Management Team, Experience & Skills Base
7. Management Team, Experience & Skills Base
8. Developing Sustainable Broad Based Growt
9. Why use SunRanch?
10. Capability Statement
11. Africa Horisontal Irradiation
12. Photovoltaic Market in Africa
13. ESKOM Tariff Increases (Client Survey)
14. ESKOM Tariff Increases (Graph)
15. ESKOM Tariff Increases vs Cost of Solar Installation
16. Track Record – Pre Incorporation
17. Track Record – Large Scale PV Parks
18. Track Record – Rooftop & Ground Mounted Solar
19. Exciting Deal Pipeline
20. Exciting Deal Pipeline – Blythedale Coastal Resort
21. Savings: Accelerated Depreciation 12B
22. Cost Savings to Clients
23. Cost Savings to Clients
24. Disclaimer
25. Contact Us
Executive Summary
3 EXECUTIVE SUMMARY
Company Profile
Geographic Focus
Business Vision
Execution Model
Strategic Advantage
Community Involvement
Client Target Return
Operational Experience
SunRanch Solar (Pty) Ltd is the renewable energy division of Keras Capital (Pty) Ltd, a corporate advisory firm incorporated in Australia with a
regional office located in Johannesburg, South Africa.
The African Continent.
To develop SunRanch into a top 10 PV EPCM on the African Continent in terms of MW installed within a 5 year period.
Design, install and maintain high quality Photovoltaic power plants as an EPCM of midsized to large commercial imbedded power facilities
with a focus on emerging markets in the African continent;
Create strategic alliances to facilitate corporate and organic growth.
Take the Company public at the appropriate time.
Leverage off the representation of Keras Capital in 19 African Countries. Keras has one of the largest global mining databases with circa
14,000 investors. The SunRanch database has a Rolodex of approx. 2,000 targeted clients subdivided into categories of Mining, Property
Development, Agriculture, Architects and Building Contractors, Residential, Manufacturing and Hotels & Leisure.
Improve the economic conditions of the host communities in which we operate;
Develop energy projects with a high environmental impact and reduce carbon foot print;
Engineer PV solutions with a lower cost matrix for power generation.
ROI > 22% to 43%.
Skills model provides inhouse technical & corporate experience and operational depth, with key managers
all having solid track records in the solar industry.
Key Features
4 KEY FEATURES
:
Domicile: South Africa.
Target Domicile: UK LLP.
Springboard into Africa.
Africa fastest growing continent for
renewable energy.
Numerous Tax Incentives for Clients.
Administrator: Board of Directors.
Bankers: Standard Bank.
Auditors: PKF Lawler.
Legal Counsel: Dreyer & Dreyer.
TARGET IRR:
HURDLE RATE: 15%
Financial models developed for various owner
applications.
Eskom approvals obtained for PV design and
grid tie/banking.
Legal opinion obtained on power redistribution.
Organogram
5 ORGANOGRAM
Management
Administration
Marketing:- 5 Marketing Agents
Auditors & Legal Advisor Installation Teams
- 7 Qualified Electricians- 25 Semi-Skilled Staff- 20 Contract Workers
External Consultants
Consulting Engineer (Pr. Eng; Pr CPM).
- Consulting Architect
Management Team Experience & Skills Base
6
• Served as Chairman/CEO/Director on over 14 listed resources companies on the ASX, TSXV, JSE & HKEx.
• Over $395 million in capital raisings. Awarded runner up award for best turnaround company – Crown Diamonds (Australia).
• Chairman of Keras Capital (Pty) Ltd and SunRanch Solar (Pty) Ltd.
• COO of DownSouth Capital Partners Private Equity Fund.
• NonExecutive Director – Middle East Diamond Resources Ltd (JSE listed).
• Qualified Forensic Accountant who holds a BCom.(Hons) degree in Forensic Accounting and a Certificate in Commercial Forensic Information
Technology.
• Full member of the Institute of Commercial Forensic Practitioners.
• Prior to joining SunRanch Willem was the Financial Crime Compliance Officer at Barclays Africa where he managed the Financial Crime
deliverables for the 11 African countries within the Barclays Africa jurisdiction.
• Member of SAPVIA’s Grid Access SubCommittee.
• Qualified Senior Electrician and holds an Electrical Trade Certificate ( Red Seal ) 23/ATP/s/001898 from SASETA as well as a Certificate of
Compliance (C.O.C) Unit Standard Wireman’s License.
• Vast experience in solar industry and has successfully installed over the 30 solar PV systems.
• Started his apprenticeship at Bloemfontein municipality and qualified as an Electrician in High and Low voltage construction and reticulation.
• Appointed as Superintendent responsible for all high voltage maintenance on substations as well as construction of new substations up to 132 KV.
• Extensive experience in the Solar industry and was responsible for the installation of all electrical equipment and cables on the 86 MW Copperton
Solar farm as well as the 75 MW Dreunberg Solar farm.
Engineering Consultant
• Holds an Engineering Degree (Pr. Eng; Pr CPM).
• Involved in numerous Eskom projects including the design of the substations for renewable energy projects.
• Projects highlights: Kinde 40 MW, Kalkbult 75 MW and Burgersdorp 75 MW.
• Holds sufficient amount of experience and skills to design a full solar system of any scale.
MANAGEMENT TEAM EXPERIENCE & SKILLS BASE
Management Team Experience & Skills Base
7
• Danie has a nuclear physics background.
• Studied on solar energy topics for the past 7 years.
• Regular lectures on renewable energy at the University of Stellenbosch.
• He recently wrote a number of articles and did a number of radio interviews on renewable energy which were published in the media e.g. Farmers
Weekly
• Holds a Degree in BCom Management.
• Qualified Electrician and holds an Electrical Trade Certificate ( Red Seal) 2011.
• Financial Director of iPatrol.
• More than 3 years’ experience in the solar industry and has successfully installed over the 30 solar PV systems.
• Holds a HND Ext.Met (Wits) and is affiliated with GCC, BLDP (WBS) , MMMA, FIMM).
• Consults widely to the Metallurgical and Mining Industry.
• Assists with Solar design (chemical aspects) and marketing to mining clients.
• Good experience in South Africa’s Agricultural industry. Started his career in developing and managing a successful farm including a maize mill in
KwazuluNatal.
• Subsequently became the owner of Pam Golding franchises in Ballito, Richards Bay and the KwazuluNatal Agricultural division. Prior to joining
SunRanch, Clive was responsible for establishing the Mesquita Group’s agricultural business in Mozambique and is also a shareholder in two
Peanut sorting plants.
• He has generated a vast network of high value clients including property developers, architects, factory and business owners which opens up a
substantial target market for PV installations.
MANAGEMENT TEAM EXPERIENCE & SKILLS BASE
Developing Sustainable Broad Based Growth
8 Developing Sustainable Broad Based Growth
BEE Deliverables:
� Initiatives to roll out Broad BasedEmpowerment & Equal Opportunity Growth
� Creating & Maintaining High Value Business Enterprise
Strategic Alliance:
YouthIn
Solar
AmandlaWeLanga Solar (Pty) Ltd:
� Name means “The Power of the Sun”.
� 100% BEE owned.
� Directors: Advocate Mtho Xulu
Mr. Tshepo Tseema
� SunRanch Provides Technical Support & Training
Strategic Alliance:
WomenIn
Solar
Nomalanga (Pty) Ltd:
� Direct translations means “Female Sun”.
� 100% BEE owned.
� SunRanch Provides Technical Support & Training
Strategic Alliance:
Black Industrialist
Growth
Vertical Information & Technology (Pty) Ltd:
� 100% BEE owned.
� SunRanch Provides Corporate Advisory & Technical Support
Why Use SunRanch™ ?
9 WHY USE SUNRANCH™ ?
• We pride ourselves in providing clients with competitive quotes.
• We use high quality German technology with a 25 year product guarantee.
• The main components of our Solar System are warehoused in South Africa providing for
seamless installations without delays.
• Our Technical Team has the necessary capability and experience to design and install tailor
made solutions depending on client requirements. This can range from solar panels only to
complex hybrid systems where solar is connected to diesel, batteries and Eskom.
• We do all our own installations ourselves . Client references are available to confirm their
satisfaction with our products and service.
• We provide full maintenance by remote tracking the performance of the system installed to
ensure optimal power generation and delivery. We also provide repair and maintenance
work on short notice.
• We have access to project funding.
SunRanch. Solar™ Capability Statement
10 CAPABILITY STATEMENT
• Experienced technical team to conduct site selection, Feasibility Studies, Costing and permitting.
• Full range of EPC and BOT services.
• Site selection, Foundations, Frameworks, Plant design, PC Control and Protection of plant & Equipment.
• Site preparation, Civils, Electrics, Construction, Commissioning and QA
• Performance monitoring, Security, Cleaning & Parts replacement.
• Finance packages available;• InHouse financial modelling made available to clients;• Inhouse legal services available to assist with contracts and registration of bonds for
security.
�
�
Africa Horisontal Irradiation
11 AFRICA HORISONTAL IRRADIATION
MegaEnergy Trends in Africa – The Fastest Growing
Continent for Solar
McKinsey & Co forecast in their “Brighter Africa” Report some major shifts for SubSaharan Africa.
By 2040 the population will double compared to that of 2010 and the GDP will increase five fold. This
in turn will require power consumption that is four times greater in just 30 years than the estimated
400 TWh currently being consumed.
• African Governments have not been sitting still on renewables. Leading the way is the
South Africa with a highly innovative REIPP Procurement Program. In three rounds of
bidding the country’s saving is already estimated at US$1Bn.
• As an example of Africa’s leading innovation,
the Kenyan Government recently announced
an investment partnership with the private
sector in a bid to generate over 50% of its electricity supply from solar. Not to be outdone,
Rwanda announced the opening of East Africa’s
largest solar power plant (8.5Mw)(See photo right).
(Process by which an object is exposed to radiation)
Photovoltaic Market in Africa
12 PHOTOVOLTIAC MARKET
In the last four years, we've seen the market go from prettymuch nothing to a market of around R30 billion to R40 billionin terms of contracts awarded or projects under construction."
“Affordable renewables are set to dominate the emergingpower systems of the world.”
“South Africa intends to bring 6.9 GW of renewables capacityonline by 2020”.
“Our environment is a fragile one and we owe it to futuregenerations to adopt renewable energy resources. Our newsolar infrastructure means we can significantly reduce ourenvironmental footprint and draw less power from the grid.This translates into a tangible benefit for residents of CapeTown as there will be more power available for them,
.
Source: International Energy Agency – Snapshot of Global PV Market Report
1,300 % growth recorded in 3 yrs.
ESKOM Tariff Increases (Client Survey)
13 ESKOM TARIFF INCREASES – CLIENT SURVEY
2004 2.50% R 0.21
2005 4.10% R 0.22
2006 5.10% R 0.23
2007 5.90% R 0.26
2008 27.50% R 0.33
2009 31.30% R 0.43
2010 24.80% R 0.54
2011 25.80% R 0.68
2012 16.00% R 0.79
2013 8.00%**** R 0.85
2014 8.00%**** R 0.92
2015 12.69% R 1.03
2016 9.40% **** R 1.12
R
R
R
R
FORECAST
INCREASE
ESKOM Tariff Increases (Graph)
14 ESKOM TARIFF INCREASES – GRAPH
R
R 0.20
R 0.40
R 0.60
R 0.80
R 1.00
R 1.20
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2004 2005 2006 2007 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electricity Price increase in South Africa 2004 2016
Average approved tariff increase
%
Average electricity prices (cents
per kWh)
ESKOM Tariff Increases vs Cost of Solar Installation
15 ESKOM TARIFF INCREASES – CLIENT SURVEY
The price of solar power has
dropped a substantial 70 percent
since 2009 as a result of
improved technology and cost
scale benefits.
R
R 0.20
R 0.40
R 0.60
R 0.80
R 1.00
R 1.20
R 1.40
R
R 5.00
R 10.00
R 15.00
R 20.00
R 25.00
R 30.00
R 35.00
R 40.00
R 45.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
ESKOM Tariff Increase and Solar Price (per watt)
Decrease
Average Solar Price Per Watt
InstalledAverage electricity prices (cents per
kWh)
Track Record – PreIncorporation
16 TRACK RECORD
86MW Solar farm in the Northern Cape (Copperton): Responsible for
installation of all electrical equipment, cables, cold and hot commissioning.
(acknowledgement J Cohen).
R 9 000 000.00Completion expected
April 2016
Dreunberg Solar Plant in Burgersdorp 75MW.
Installation of all cables and Electrical equipment. Terminations and
joins on all cables.(acknowledgement J Cohen).
R 9 500 000.00 2014
Linde Solar Plant in Hanover 40 MW. Installation of all Electrical
equipment and cables. Pressure test and commissioning.
(acknowledgement J Cohen).
R 8 000 000.00 2014
Letsatsi 64MW Solar Plant: Installation of the 500KVA connection and
reticulation. (acknowledgement J Cohen).R 2 000 000.00 2014
101kWp solar installation (acknowledgement D Coetzee). R 191 900.00 2015
135 kWp grid tie solar installation(acknowledgement D Coetzee). R 2 600 000.00 2015
Track Record – Large Scale PV Parks
17 TRACK RECORD
22KV cable installations.
22KV and 33KV Pressure
tests
Installation of all electrical plant & equipment
and cables. Pressure test and connecting.
Installation of all electrical plant and equipment.
*With acknowledgement to Jaco Cohen
Track Record Rooftop & Ground Mounted Solar
18 TRACK RECORD
*With acknowledgement to Danie Coetzee
The installation was published in the “LandbouWeekblad” 3 April 2015.
Grape Packaging Warehouse.Installation published in the “LandbouWeekblad” 3 April 2015
135 kW grid tie solar plant.
Home of CEO – Atterbury (Europe) – 10KW(Waterkloof, Pretoria)
Home in Waterkloof, Pretoria – 10KW
Exciting Deal Pipeline
19 DEAL PIPELINE
36.15
10.7 100
40
4040
220
Deal Pipe Line – 46.85Mw (US$62.2m)
Contract's Signed
Final Stages Negotiation
Project Available: Tanzania
Project Available: South Africa
Project Available: Kenya
Project Available: EthiopiaTenders Awaiting Adjudication
(Clockwise from Top):
• McCormick Property Development
Olievenhout Plaza;
• Flanagan & Gerard – Vaal Mall;
• Hyprop – Canal Walk;
• Hyprop – Somerset Mall.
Exciting Deal Pipeline – Blythedale Coastal Resort
20 DEAL PIPELINE
� The Blythedale Coastal Resort on the North Coast of KwaZuluNatal consists of five dynamic residential estates (Blythedale Golf, Hills, Forest, Ocean and Equestrian) as well as a Catalytic Hotel.
� PV design will provide for 4,000 housing units, a 4ML desalination plant, a 5 Star Hotel & Conference Centre and various other amenities.
Savings: Accelerated Depreciation Sect 12B
21 SAVINGS: ACCELERATED DEPRECIATION 12B
Accelerated Depreciation: Sect 12B of The Income Tax Act No 58 of 1962
Machinery, plant, implements, utensils or articles or improvements thereto (theasset) used in farming or production of renewable energy
An allowance will be granted for assets owned by a taxpayer or acquired by thetaxpayer as purchaser in terms of an “instalment credit agreement” as defined inthe VAT Act, and brought into use for the first time by the taxpayer –
in the carrying on of farming operations;
for the purpose of trade to be used for the production of biodiesel,
for the purpose of his trade to generate electricity from –
wind power;
solar energy;
hydropower to produce electricity of not more than 30 megawatts; and
An allowance equal to –
• 50% of the cost of the asset to the taxpayer in the year of assessment (first yearof assessment) in which the asset is brought into use;
• 30% of the cost in the second year of assessment;
• 20% of the cost in the third year of assessment.
Savings for a R 17 million PV plant will be:
Year 1: (17 000 000 * 50%)* 28% company tax= R 2 380 000.00
Year 2: (17 000 000 * 30%) * 28% company tax= R 1 428 000.00
Year 3: (17 000 000* 20%) * 28% company tax= R 952 000.00
*Note: On 22 July 2015, National Treasury released draft tax legislation for publiccomment. The legislation aimed to implement tax proposals that wereannounced in the 2015 Budget Speech. Most notably for renewable energy,National Treasury proposed a 1year 100% depreciation allowance onembedded PV (as opposed to the thencurrent 3year 50/30/20 allowance).
Cost Savings to Clients
22 COST SAVINGS TO CLIENTS
• Savings over 25
years for R17m
PV plant.
• Financial Models
developed for
Estates, Office
Complexes,
Shopping Malls and
Home Owners.
• Eskom approval
obtained on our PV
Installations.
• Legal Opinion
available on Power
Distribution.
Cost Savings to Clients
23 COST SAVINGS TO CLIENTS
Savings over 25 years
for R17m PV plant.
IRR = 38.9%
Disclaimer
25 DISCLAIMER
These materials have been provided to you by SunRanch Solar (Pty) Ltd in connection
with an actual or potential mandate or engagement and may not be disclosed or
referred to (in whole or in part) or used or relied upon for any other purpose other
than as specifically agreed by written agreement with SunRanch. The information used
in preparing these materials was obtained from public or own sources. While
SunRanch has taken reasonable care in preparing these materials, it has not
independently verified the information contained in these materials.
SunRanch, its affiliates and their respective directors, officers or employees (the
“SunRanch Group”) assume no responsibility for and do not represent or warrant the
completeness or accuracy of the information (whether written or oral) including
estimates, projections or forecasts (of future financial performance or otherwise)
referred to in these materials or that may be supplied in connection with these
materials (“Information”). SunRanch is under no obligation to inform the Recipient or
anyone about any change (whether or not known or apparent to SunRanch) to the
Information. The Recipient must make his own independent judgment with respect to
any matter contained in these materials.
The SunRanch Group will not be responsible for any losses or damages which any
person suffers or incurs as a result of relying upon or using these materials or as a
result of any information being omitted from these materials. These materials do not
constitute an offer or commitment to arrange or underwrite any form of financing, to
underwrite, subscribe for or place any securities, or to enter into any other
transaction, and do not create any legally binding obligations on the SunRanch Group.
The SunRanch Group does not owe any fiduciary or other duties to the Recipient or
any other person and the SunRanch Group may be involved in other transactions and
services with clients who may have conflicting interests with the Recipient. If these
conditions above are not acceptable, kindly return immediately these materials and
any copies thereof, otherwise, the retention of these materials by the Recipient shall
evidence his/her acceptance of such conditions.
SunRanch’ ability to enter into any transaction (or to provide any person with any
services in connection with any transaction) will be subject to, among other things,
internal approvals and conflicts clearance.
Contact Us
26 CONTACT US
Suite 5, Coldstream Office Park
C/o Hendrik Potgieter Drive & Van Staden Roads, Little Falls, Roodepoort,
Gauteng, South Africa 1735.
Postnet Suite 47
Private Bag X5
Strubensvalley 1735.
Website: www.sunranch.solar
Tel: +27 11 9580682
Email: [email protected]
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The Secret of getting ahead is getting started- Mark Twain