The CO2-neutral Energy SolutionCarbon-neutral generation of electricity, heating and cooling

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W E L C O M E

Welcome to the Energy System of the Future!Silent-Power’s methanol-based and storable ener-gy system, independent of fossil heating and au-tomotive fuels, can decentrally cover the future global energy demand.

ChallengeWith climate change, humanity faces an enormous challenge that requires rapid and resolute mea-sures. However, such an important and diff icult task is also a great opportunity, especially in economic terms.

SolutionWith its own methanol-based projects, Silent-Po-wer sees the solution for many of the upcoming problems in the power-to-liquid process and laun-ches a revolutionary and comprehensive appro-ach on the market.

BusinessSilent-Power supplies users with electricity, hea-ting and cooling from a single source that is paid periodically (like today the electricity bill from the utility). Silent-Power installs, operates and main-tains the installations. As an ambitious company with a comprehensive vision, Silent-Power also off ers the best opportunity for investors to parti-cipate in the energy revolution.

ProspectsCurrently there is no energy system like the one developed by Silent-Power. Methanol can replace all the 14 currently used liquid and fossil fuels (regular and premium petrol, diesel, fuel oil, kero-sene, etc.), contributing to a much simpler, more ecological and economical energy supply.

Our autonomous mini power plants also fulfill the role of network stabiliser for the users. Since the renewable energy sources, such as sun and wind, may temporarily lead to irregular electricity pro-duction, our mini power plants act as a comple-mentary source at short notice. Moreover, surplus solar and wind energy can be stored in the form of methanol throughout the year. Near term, we will not encounter any real competition in this sector.Besides the targeted energy turnaround through sustainable energy generation, the CO2-neutral methanol of Silent-Power will play a key role in transport and mobility. As a shareholder, you can support the restructuring of the economy, stop the global rise in temperature and be compensa-ted profitably by our plans to go public in only four years!

Prof Dr sc. techn. ETH Urs A. Weidmann is the founder of the multiple award-winning

company Silent-Power.

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We at Silent-Power are always driven by our core values:

Carbon neutrality: We are working on a sus-tainable, CO2-neutral energy system in order to curb climate change and to replace fossil fuels and nuclear power.

User focus: We work closely with our customers and partners in order to always achieve the op-timal solution.

Innovation focus: We like challenges and dis-tinguish ourselves through award-winning inno-vation.

Independence: On the one hand we work inde-pendently and assume responsibility for our actions. On the other hand, we endorse a de-mocratic energy supply, as our decentralised energy system reduces dependence on fossil fuels.

Quality: We provide a consistently high quality. Our partners and customers can rely on us.

Communication: We communicate openly and solution-oriented with all our business relations.

Values

C O R P O R A T E I D E N T I T Y

We at Silent-Power strive for a decentralised and CO2-neutral energy supply to replace nuclear power, reduce dependence on fossil fuels and help mitigate climate change.

The economic and technical competence of Si-lent-Power contributes to the implementation of a sustainable methanol-based energy system. Silent-Power develops the entire value chain, from methanol production to the trigeneration of heating, cooling and electricity in the decen-tralised Econimo mini power plant, thus creating economic added value and environmental be-nefits.

At the moment we are discussing together with a delegation from Kosova the introduction of our Econimo-Minipowerplants to strengthen the grid capacity. This is part of the program to overcome the time of the war. We indeed discuss even the local production in Kosova near the airport clo-se to the capital Pristina.

Vision

Mission

Role Model for other nations

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A W A R D S

National and International Awards

Swiss Innovation Award 2016

IDEE-SUISSE®–the Swiss Society for Ideas and In-novation Management, Zurich, awards since 1985 the famous Swiss Innovation Prize. It serves to promote future business opportunities to candi-dates for their outstanding and innovative contri-bution to the sustained strengthening of Switzer-land‘s economy. This prize was awarded in 2016 to our company Silent-Power AG, Cham, for the production of CO2 neutral electricity from methanol and for the world’s first commissioning of a met-hanol mini power plant. The award ceremony was held in the City Hall of Cham on 29th September 2016.

Within just over a year, our company has won three important awards. This recognition pleases, motivates and shows us that we are on the right track!

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The Awards won are the best Proof of the importance of our Innovation

National and International Awards

On 12th August 2015, Silent-Power received the “5th Asia Best CSR Practices Award 2015” in the category “Best Environment Friendly Project”. The trophy, the Golden Star with the certificate, was awarded by the CSR Corporate Social Responsibi-lity organisation. Silent-Power won against its competitors from China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, and Vietnam. The formal award ceremony took place amidst more than 300 personally invited guests in the Pan Pacific Hotel at Marina Square in Singapore.

The jury of the “Swiss Excellence Product Award” (www.swiss-excellence.ch) has awarded us the 2015 prize for the best Swiss innovative product. The awards ceremony took place in Zurich on 26th October 2015. The honorific speech was held by the ETH President Prof Dr Lino Guzzella.

Swiss Excellence Product Award 2015

Asia Best CSR Practices Award 2015

Nuclear Power

Biomass

Renewable Energy

Hydropower

Oil, Coal, Natural Gas

to be replaced by CO2-neutral energy

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Global Energy Mix, approx. 20% of the total worldwide Energy Consumption

i.e. 80% of all power plants world-wide have to be replaced!

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The Energy Turnaround is the Challenge of the Century

The globally increasing energy demand, which is largely covered by fossil energy sources, leads to enormous emissions of carbon dioxide (CO2) and contributes to an accelerating climate change. Furthermore, nuclear power has to be replaced by renewable energies due to its inherent dangers. Production, storage and distribution of the energy produced are additional challenges.

C H A L L E N G E

Climate change

Requirements

Due to global warming, the unabated CO2 emis-sions caused by the combustion of fossil energy sources will end the Oil Age long before the oil and gas sources run dry. 80 per cent of the ener-gy sources for global electric energy production are fossil–on average at least 7 billion tonnes of CO2 are emitted annually! Switzerland’s climate and energy policy requires that greenhouse gas emissions be reduced by at least 20 per cent by 2020 compared with 1990 levels. Swiss nuclear phase-out was decided in 2011. If Switzerland wants to achieve the inter-national 2-degree reduction target by 2050 com-pared to the pre-industrial period, it will have to reduce CO2 emissions by 70 per cent.

The time is ripe to abandon fossil energy sources and instead switch to renewable energies. Tech-nology is ready, merely politics and energy sup-pliers, the research community and the economy need to join forces and adopt an integrated, long-term approach instead of aiming at a short-term goal. Silent-Power is convinced that the carbon neutral energy produced will outstrip fossil fuels. Oil and gas will have to be gradually substituted by electricity as for example heat pumps and electric cars will be increasingly used. Replacement of nuclear power will further fuel the demand for renewable sources of electricity.

Nuclear Power

Biomass

Renewable Energy

Hydropower

Oil, Coal, Natural Gas

to be replaced by CO2-neutral energy

wwer

aOil, Coal, Na

Global Energy Mix, approx. 20% of the total worldwide Energy Consumption

i.e. 80% of all power plants world-wide have to be replaced!

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al worldwide Eneral worldwide Eneral worldwide Eneral worldwide Eneral worldwide Eneral worldwide Enertot

Nuclear power

Storage and transport problems

Though nuclear energy is considered a CO2-neu-tral source of energy with regard to its influence on the climate, it tends to pose other problems such as uranium mining and storage of radioac-tive waste. Switzerland and Germany have de-cided to phase out of nuclear energy. Nuclear power plants that have reached their service life are therefore not replaced by new ones. In Swit-

We not only have an electricity production pro-blem, but also a storage and transport problem. Electricity is usually not produced where it is consumed nor whenever it is needed. The cur-rent electricity supply is ensured mainly by large power plants. During the day, consumption of electricity exceeds base production. At night, consumption then drops, but electricity produc-tion continues as nuclear and coal-fired power plants cannot be throttled at short notice. This centralised electricity infrastructure also results in long and costly transport distances. Among the storage options taken into account by the Swiss Federal Government in its Strategic Energy Policy 2050, such as batteries, pum-ped-storage reservoirs or power-to-gas, there is no existing technology that simultaneously pro-vides energy for mobility, generation of electri-city and for heating and cooling. Only the pow-er-to-methanol approach offers the energy in a form for direct use by the three applications.

zerland, the share of nuclear power with respect to the total generation of electricity is currently around 40 per cent. The gradual withdrawal from nuclear energy stands in contrast to the growing thirst for energy by the economy and private households. In most forecasts, the future energy demand will therefore continue to rise despite all efficiency and cost-cutting measures, simply on account of demographic reasons. This situa-tion calls for new and innovative solutions that must be implemented and financed quickly.

The Econimo-ConverterEnergy Converter Integral Module

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Electric power, CO2 and water are used to syn-thesise methanol. This process can be applied in large central production facilities as well as in small, decentralised plants – precisely where excess electricity is available.

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We generate electricity from hydropower plants, nuclear power plants and other energy sources. The basic problem is that electric power is not produced at the time when con sumers need it. The second problem is the fact that most power plants are far away from consumers. Therefore electricity storage and transport are the main challenges for the future. Silent-Power solves precisely these problems.

Electric energy will be transformed into chemically stored energy in liquid form, namely methanol, the most simple alcohol molecule. Today methanol is already second on the list of the most-traded liquids worldwide aft er crude oil. The completely environmentally friendly methanol fuel is named “M99”, with 99 standing for 99 per cent purity.

“M99” will be distributed by using existing distribution channels for petrol, diesel and kerosene. This means that the expensive infrastructure can be taken over using the new methanol economy.

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The CO2 neutral Energy Concept of the Future

TheMethanolCycle

++CO2

H2O

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Converting methanol back to electricity releases all the in gredients which were necessary for the synthesis of metha-nol. These ingredients – water and CO2 are then released into the environ-ment. In this way, the methanol cycle is closed and makes the Silent-Power concept neutral in regard to climate change.

The stationary Econimo mini power plant will be operated using tanks containing methanol fuel. The remote-controlled mini power plant supplies electricity to the utility and at the same time hot and cold water to the building. Important: The total eff iciency exceeds 80 per cent!

The new mobility has no limits:Tanks filled with methanol in combina-tion with Econimos and electric motors will soon result in an environmentally friendly type of locomotion. No heavy batteries, no time-consuming rechar-ging pro cesses, virtually unlimited cruising range, no noise or vibrations and nearly no maintenance.

Stationary mini power plant

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0.5 kW Power Module

2 kW Power Module

20 kW Power Module

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MethanolSynthesis

Engineering

M99 AGMethanolSupplyLogistics

Econimo-Drive AG

Mobil

Econimo AG

StationaryMini Power Plant

Silent-Power (Germany) Ltd.

Production & Sales ofEconimo

Organisation Chart

Silent-Power AGHolding, Coordination, Organisation

ShareholdersA B C D

S O L U T I O N A P P R O A C H

Silent-Power® relies on

Silent-Power is systematically developing the value chain of CO2-neutral methanol and is thus becoming an integrated energy service provider. Thanks to the fully synthetic methanol M99, our work focuses on three ground-breaking project areas for a climate-friendly future.

Silent-Power (Germany) Ltd. produces and sells Econimos in Germany. The methanol synthesis project is being pursued in an other subsidiary for our own methanol pro-duction to generate the fully synthetic methanol M99 that is so essential in times of climate change, because it is CO2 neutral.

Result: With the production of the heating and automotive fuel methanol, Silent-Power will be-come an integrated energy supplier across the entire value chain of the methanol cycle.

The subsidiary Econimo-Drive AG is developing the converter unit to convert methanol into elec-tricity. This converter allows numerous applica-tions in mobility, similar to a fuel cell, but cheaper, lighter, with a much longer service life and insen-sitivity to impurities in the fuel.

Econimo AG is developing our Econimos and add-on technologies to expand our range of products. These standardised mini power plants (only one module size is built) enable a decentralised gene-ration of electricity and heat.

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The synthesis of methanol from non-fossil CO2 is the key to the flexible, liquid-based and CO2- neutral energy system. Our methanol synthesis project provides excellent ecological and eco-nomic arguments for replacing fossil fuels and enables the storage of irregularly generated renewable energy in liquid form over a long period.

Within the frame of Econimo-Drive AG, we are working on a module for a new catalytic conver-sion of the fuel methanol into electricity and heat. This project is supported by the Commis-sion for Technology and Innovation (CTI respec-tive Innosuisse) of the Swiss Confederation. To date, we have received 1.5 million CHF in subsi-dies.

Econimo stands for “Energy Converter Integral Module“. The Silent-Power energy concept relies on the decentralised mini power plant, which produces electricity as well as hot and cold wa-ter by means of a trigeneration process. The Econimos lead to jobs required for the installa-tion and maintenance in the regions. The plants function autonomously, silently and virtually maintenance-free. They serve the local electric power companies also as network stabilisers, for example in the event of irregular solar energy production. Property management companies do not need to worry about maintenance or the logistics of fuel provision. The consumers are billed for the energy consumed, just as before, retroactively and at regular intervals.The Econimo achieves an efficiency of about 80 per cent. The mini power plant can produce 30 kW electrical power and 60 kW heat. Moreover, it can generate refrigeration to cool buildings via a recooler. It supplies, for example, a residen-tial block with ten to fifteen apartments, a school building or a district heating grid.Another positive factor: Unburned atmospheric hydrocarbons, especially from diesel engines, are post-combusted in our combustion process. The fact that the Econimo mini power plant im-proves the air quality of our cities is a highly welcome side effect!

Methanol Synthesis Econimo-Drive®

Econimo®

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on roof of building

Windturbines in backyards

Econimo

Econimo

Econimo

Econimo

Econimo

Econimo

Econimo

Econimo

Directly fed or producing M99 methanol.

Photovoltaics station

Single-family houses

facilities

Photovoltaics station

Residential buildings, schools, nursing homes, commercialshopping centers

B U S I N E S S M O D E L

Cash Flow from Energy SalesSilent-Power will become an integrated energy service provider and, as a comprehensive methanol group, an attractive partner for energy supply companies and energy users.

Silent-Power offers its clients electricity, heating and cooling as a service, and the consumer is charged periodically for the energy consumed. The consumer thus receives a „carefree package“ covering all the energy needs.

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Silent-Power is launching the third capital raising round that will enable interested parties to become shareholders of this revolutionary company.

M A R K E T L A U N C H

Prospects for Silent-PowerSilent-Power was founded in 2002 with the aim of solving the energy sector‘s existing problems withhightech solutions.

Die Perspektiven von Silent-PowerSilent-Power AG wurde 2002 mit dem Ziel gegründet, die bestehenden Probleme auf dem

Energiemarkt mit neuen Hightech-Möglichkeiten zu lösen.

2014 20162015 2017 2018 2019 2020 2021 2022 2023

Pilot Plant

So�ware

Setup Supply Chain

Market Entry Switzerland

Market Entry Germany and Austria

Market Entry worldwide

TestPhase

Further Further Further FurtherSeries Series Series Series

ProductionEconimoMini PowerPlant

Mobile application

Planned IPO

Capital requirement inMillion CHF for market launch

6 9 10 30 20

Methanol Synthesis

M99 Methanol Supply

PilotPlant

M

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Average return:ROI IRR = 10%

= 18%

5 15 100 300

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Calorific value[per liter]

Specific CO2 emission

Price for customer[*Rappen/kWh]

Initial cost forStorage capacity

Fuel oil 9.8 kWh/l 280 g/kWh 7.5 Rp/kWh 24 Rp/kWh

Petrol 8.7 kWh/l 250 g/kWh 12.6 Rp/kWh 65 Rp/kWh

Natural gas 0.0102 kWh/l 200 g/kWh 9.5 Rp/kWh 30 Rp/kWh

Rene

w-a

ble

Wood pellets 3.1 kWh/l 390 g/kWh 8.0 Rp/kWh 27 Rp/kWh

Methanol 4.3 kWh/l **0-250 g/kWh 7.2 Rp/kWh 65 Rp/kWh

Hydrogen 0.0030 kWh/l 0 g/kWh 30.4 Rp/kWh 70 CHF/kWh

Li-Ion Battery **0.500 kWh/l ***120 g/kWh 20.7 Rp/kWh 175 CHF/kWh

*depending on energy source ***Swiss supplier's average 2014

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Advisory Boarddddaddasdasdasdsaasdsda

Dr. Anton Scherrerformer chairman Swisscom AGformer head of Migros

C O M P A R I S O N

A Unique Approach

Unlike methanol, the described energy sources cannot all be used the same way as heating and automotive fuels. The supposedly relatively clean petrol emits more particulate matter than diesel in modern direct injection engines. This will lead to a foreseeable particulate filter constraint and thus higher petrol costs*. But even future parti-culate filters in petrol engines would make their life cycle assessment uncompetitive, since these filters are turned off under 19 degrees Celsius, so as not to seriously reduce engine performance. Methanol, however, can be used to generate elec-tricity, for mobility applications, but also for he-ating and cooling of buildings. Since neither soot nor sulfur dioxide or unburned hydrocarbons are produced by the combustion process of methanol,

its use as a fuel offers the additional advantage that methanol-operated vehicles do not require a catalytic converter or a particulate filter, which means no expensive platinum.Silent-Power is not aware of any direct competi-tion with the same approach. We consider our-selves as an avant-garde provider of methanol as a fuel for the combined generation of heating, cooling and electricity. Moreover, it is a hitherto unique approach to operate a heating and elec-tricity generating mini power plant also as a cooling unit. This trigeneration of power, heat and cold is a factor that distinguishes Silent-Po-wer AG from its competitors.Silent-Power holds four patents, and further applications are pending.

It is interesting to compare some of the common energy sources competing with methanol. The key advantage of the CO2-neutrality of our henceforth off ered methanol M99 is not even particularly emphasised: no additional costs because of climate changes, environmental disasters etc.

Subject to change without prior notice

Albert Vollmer dddaddasdasdasdsaasdsda

Partner of the German Max-Planck Society UBS AG, Zurich

NZZ am Sonntag (Sunday edition of a major daily Swiss newspaper), 4th January 2017: New Year’s interview with Norbert Heeb

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At the last General Meeting, the Board of Directors decided to not stand for re-election. The five members have accompanied the entire research and development phase. The average age has risen to over 72 years. Now 4 members resigned to be elected for a new term. Prof. Weidmann remains on board and is looking for a young team. We are currently evalating suitable candidates. The start of the marketing phase is now and is being topped with the IPO.

M A N A G E M E N T T E A M

The Winning Team of Professionals

The Board of Directors and Shareholders of Silent-Power AG and subsidiariesChairman – Dipl. Ing. ETH Thomas K. Escherformer Vice Chairman Wealth Management & Swiss Bank, UBS AG | Zurichformer General Manager, Swiss Bank Corporation | Basel

Delegate of the Board of Directors & CEO – Prof. Dr. Urs A. WeidmannCEO and Member of the Board, IMES Management AG | Chamformer Member of the Management, UBS AG | Baselformer Head of Financial Engineering, Credit Suisse AG | Zurich

Member – Dr. Kurt E. Siegenthalerformer Chairman of the Board of Directors, Bucher Industries AG | Niederweningenformer CFO, Bühler AG | Uzwil

Member – Dipl. Arch. ETH Tomaso ZanoniDipl. Arch. ETH SIA, Inhaber ZANONI Architects | Zurichformer City Architect | Zug

Member – Econimo-Drive AG, Dr. Walter Grüeblerformer Chairman and CEO, SIKA AG | Baarformer Member of the Executive Management, Alusuisse AG | Zurich

Prof. Dr. sc. techn. ETH Urs. A. WeidmannChief Executive Off icer

UBS AG | ZurichCredit Suisse AG | Zurich(power plant financing)PSI Paul Scherrer Institut | Villingen

Dr. Reto HolznerChief Scientific Off icer

Spectraseis Technology AG | ZurichHuber + Suhner AG | Pfäff ikon Physics Department University of Zurich

Dr. Thomas A. LouisChief Operating Off icer

Senior Advisor, Dubai Electricity & Water Authority

Chief Quality Off icer, Carl Zeiss GroupHead of New Products & Business Develop-

ment, ABB Power GenerationConsultant, The Boston Consulting Group

dddaddasdasdasdsaasdsda

Herr Albert VollmerPartner of the German Max-Planck SocietyUBS AG, Zurich. Wealth Management

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Today the largest methanol synthesis plant in the world that produces

methanol out of CO2, electricity and water, is located in Iceland.

www.carbonrecycling.is/george-olah/ISIN: CH0489342227

Disclaimer

This document serves only for the purpose of a preliminary and non-binding information for interested par-ties and does not constitute an offer to sell nor a solicitation of offers to purchase or subscribe for shares, bonds or other securities of Silent-Power AG. This document does not constitute a prospectus or a similar communication within the meaning of article 652a, 752 and/or 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange AG, BX Swiss AG or any other applicable laws or regulations. This document may contain forward-looking statements relating to the future business performance and future developments of Silent-Power AG. Such forward-looking sta-tements are based on uncertain expectations and assumptions and are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual re-sults, financial situation, development, performance or achievements of the company and those explicitly or implicitly pre-sumed by such statements. Should one more of these risks or uncertainties materialize, or should the underlying expecta-tions or assumptions prove to be incorrect, the actual results, performances or achievements of Silent-Power AG may differ substantially from those expressed or implied by such for-ward looking statements. Against the background of these uncer-tainties, readers should not rely on these forward-looking statements, but conduct their own independent review of the com-pa-ny and its future prospects. Silent-Power AG assumes no responsibility and obligations whatsoe-ver to adhere to forward-looking statements, to update them or to adapt them to future events or developments.