introduction to glitnir sustainable energy

Introduction to Glitnir

Sustainable Energy

Fall 2006

USD

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Glitnir is a specialist bank

• Glitnir’s key figures

– USD 27.9 billion total assets

– USD 4.9 billion market cap.

– 29.4% avg. ROE past 5 years

– Record Profits in 2005, 9 months ’06

– Strong credit ratings

• Home markets are Norway and Iceland

• Product excellence in Northern Europe

• Focus on niche segments world wide

– Food/ seafood industry

– Sustainable energy

– Offshore vessels/ Shipping

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Glitnir’s vision

• Glitnir’s Vision:

Initiating and embracing sustainable success.

• Corporate Banking Vision:A focused player in niche segments and products

Segments and products that build on knowledge and network and we can become one of the best operators.

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Long history of consolidation & diversification

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Glitnir Bank’s Mission in Sustainable Energy

To be a leading financial services company serving the global sustainable energy sector.”

“Glitnir has a unique interest in the Geothermal sector and emphasizes that especially.”

Glitnir’s Center of Excellence in Sustainable Energy holds: • An experienced team of professionals focused on this important and growing sector.

• Deep industry expertise and knowledge on the sector.

• Strategic partners with leading positions in the sector.

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Home markets unique base

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Glitnir - Niche focus global reach

Glitnir Offices Glitnir Activities New Office in ‘06

High-Temperature Geothermal Provinces (Schematically shown)

Source: GeothermEx Inc., Glitnir Research

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Geothermal electricity & central heating

GWh

United States 17.917

Phillipines 9.253

Mexico 6.282

Indonesia 6.085

Italy 5.340

Japan 3.467

New Zealand 2.774

Iceland 1.483

Costa Rica 1.145

Kenya 1.088

El Salvador 967

Electricity Production Direct Use*

GWh

China 12.605

Sweden 10.001

United States 8.678

Turkey 6.901

Iceland 6.806

Japan 2.862

Hungary 2.206

Italy 2.099

New Zealand 1.969

Brazil 1.840

Georgia 1.752

Source: Electricity – Bertani, Direct Use – Lund, Freeston, Boyd (all Geothermics, with data of 2005)

Annual Energy Produced/ year *e.g. heating, Use/ year

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Niche with strong potential

100.000

46,80

20.000

40.000

60.000

80.000

100.000

2000 2020 est.

51,5

1.000

0

200

400

600

800

1.000

2000 2020 est.

Global Geothermal Use

Direct use (TWh)Electricity generation (TWh)

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Geothermal market

• Increased demand for sustainable energy solutions worldwide

• Our primary focus is geothermal

– New and interesting developments in Iceland

• Geothermal is key to driving economic prosperity

– China Xianyang district heating project, in co-operation with Sinopec, indevelopment stage

– Interesting projects in the United States & Europe

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Why Geothermal?

• Lower generation cost than other renewables, such as wind and solar

• In the EU, geothermal potential for energy production more than wind and solar combined

• In the US geothermal could provide up to 30.000 MW of power or 6% of today’s electricity demand

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China - geothermal district heating in Xianyang

Geothermal District Heating in Xianyang

• Joint project by Enex-Kína, Shanxi CGCO Energy Development Construction C. Ltd (Sinopec and Xianyang City Investment Co, Ltd.)

• District Heating system for 100-150,000 people with potential for overall heating for 400,000 people. (450 MW)

• Enex-Kína is a joint company by Enex, Reykjavik Energy & Glitnir.

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Some geothermal plants in Iceland

Nesjavellir – installed, capacity 120 MWe, 290 MWth, Reykjavik Energy, serving capital area, production of electricity and district heating.

Hellisheidi – installed capacity 300 MWe, 400 MWth (by 2015), Reykjavik Energy, serving capital area, in development, to produce electricity and district heating

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In conclusion - Why Glitnir Bank?

• Has very strong financial background

• Comes from a Geothermal environment

• Has unique interest in the Geothermal sector

• Is working with the sector as a complete financial partner

– Advisory

– M&A

– Lending

– Providing Equity

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From coal to cool – but warm!

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Glitnir – Sustainable Energy Team

Magnús BjarnasonManaging Director Region Asia & AmericasDirect line: +354 440 4523Mobile: +354 844 4523magnus.bjarnason@glitnir.is

Árni MagnússonDirector Sustainable Energy

Direct: +354 440 4688Mobile: +354 844 4688arni.magnusson@glitnir.is

Jóhannes Hauksson Senior Business Manager

Direct: +354 440 4514Mobile: +354 844 4514johannes.hauksson@glitnir.is

Michael RichardDirector

Mobile: +1 (508) 878 0171michael.richard@glitnirbank.com

Alexander RichterAnalyst

Direct: +354 440 4766Mobile: +354 844 4766alexander.richter@glitnir.is

www.glitnirbank.com