CONFIDENTIAL

Company Profile

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TABLE OF CONTENTS

1 INTRODUCTION .................................................................................................................................................... 2

2 HISTORY AND MILESTONES ............................................................................................................................. 4

3 COMPANY STRUCTURE AND MANAGEMENT ............................................................................................. 5

3.1 CORPORATE STRUCTURE ..................................................................................................................................... 5

3.2 MANAGEMENT ..................................................................................................................................................... 6

4 CONSULTING ......................................................................................................................................................... 7

4.1 PROJECT INTEGRATORS DIVISION ........................................................................................................................ 7

4.2 ARIO MANAGEMENT CONSULTING DIVISION ...................................................................................................... 9

4.3 CERTO ................................................................................................................................................................. 9

5 PRODUCTS ............................................................................................................................................................ 10

5.1 BUSINESS MODEL .............................................................................................................................................. 10

5.2 INVERTER DIVISION ........................................................................................................................................... 10

5.3 RECTIFIER DIVISION .......................................................................................................................................... 13

5.4 ARIO POWER CONTROL DIVISION ...................................................................................................................... 14

6 OPERATIONS ........................................................................................................................................................ 15

6.1 QUALITY MANAGEMENT ................................................................................................................................... 15

6.2 RESEARCH AND DEVELOPMENT ......................................................................................................................... 15

6.3 SYSTEMS AND PROCESSES ................................................................................................................................. 16

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1 INTRODUCTION

Ario is a 51% Black Woman Owned organisation (B-BBEE level 1) that has been in business since 2010. The

company built its track record as a project integrator in the nuclear, energy, defence, aerospace and mining

sectors. Ario has already delivered more than 35 large projects for a number of clients, ranging between

R1m and R45m.

Ario’s core business is the commercialisation of technology and engineering through innovative project,

product and infrastructure delivery. The scope of Ario’s core business includes:

▪ Advanced engineering, which includes product development, specifications, design, engineering

management, commissioning, logistic support and maintenance,

▪ Directing and delivering infrastructure projects over its full life cycle, including planning, cost

estimating, procurement, execution management, reporting and project controls and

▪ Product integration, commercialisation and delivery

▪ Management consulting supporting businesses with the improvement of their performance,

focusing on the analysis of organisational difficulties and the development of plans for

improvement.

Head Office Production Facility

Block 1, Monument Office Park

4 Elephant Road

Monument Park

0181

Tel no: +27 12 460 5631

33 Victoria Link

Route 21 Corporate Park

Irene

0157

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Since inception, Ario grew and expanded its business into a diverse number of sectors:

▪ Nuclear (Necsa, NTP Radioisotopes, Koeberg Power Station)

▪ Energy (Eskom, Automodular Corp Inc.)

▪ Defence (Denel Land Systems, Denel Dynamics, LMT, EWT, Zeiss Optronics, Curtiss Wright GmbH)

▪ Aerospace (Paramount, South African National Space Agency)

▪ Quality, testing and verification (SABS)

▪ Mining (Anglo American, Kumba Iron Ore)

▪ Renewables (Neotel, Mitsubishi, DesignPro)

More information on Ario’s business can be found at www.ario.co.za

▪

Figure 1: Ario’s main clients

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2 HISTORY AND MILESTONES

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3 COMPANY STRUCTURE AND MANAGEMENT

3.1 Corporate Structure

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3.2 Management

Dr Ramatsemela Masango

Chairperson

- Ph.D. (Nuclear State University, Eng), Pennsylvania USA

- Fulbright Scholarship for M.Sc (Nuclear Eng) Penn State, USA

- CSIR Board Member

- Board Member of Mzansi Energy Solutions and Innovations (Pty) Ltd

- Chairman of the Ario Board of directors and a 51% shareholder of the company

Dr Louis Heyns

CEO

- PhD Eng, MBA, Pr.Eng

- Control system engineer (5 years)

- Project manager (10+ years)

- Member of the Exco of IST for 6 years

- General Manager Projects of PBMR (R35bn project development)

- Member of the PBMR Exco for 8 years

- Founder and CEO of Ario since 2010

Mr Ntsako Mdhluli

Chief Operating Officer

- B.Com (Hons) Accounting and Finance

- Responsible for the operational and financial aspects of the company and liaises

with clients to ensure successful project delivery, and identifying future

opportunities

- 51% shareholder in Certo Project Integrators (Pty) Ltd

Dr Corrie Ungerer

Chief Project Officer

- B.Eng, M.Eng, D.Eng (Mech)

- Project Management Specialist

- Successfully delivered a number of key Ario projects

- Expert in power generation

Dr Andries Putter

Chief Technology Officer

- B.Eng, M.Eng, D.Eng (Elec)

- Power Electronics Specialist

- Development of unique multilevel Inverter and Rectifier products

- Founder of Ario Inverters and Ario Rectifiers

Dr Ramatsemela Masango

(Chairperson)

Dr Louis Heyns

(Chief Executive Officer)

Mr Ntsako Mdhluli

(Chief Operating Officer)

Dr Corrie Ungerer

(Chief Project Officer)

Dr Andries Putter

(Chief Technology Officer)

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4 CONSULTING

4.1 Project Integrators Division

Ario provides advanced project management and engineering services to its clients, including:

▪ product development, including specifications, design, engineering management, commissioning,

logistic support and maintenance,

▪ directing and delivering infrastructure projects over its full life cycle, including planning, cost

estimating, procurement, execution management, reporting and project controls

These projects are typically complex (usually high-tech), in the engineering field and often in regulated

environments with a significant demand on SHEQ, formal processes and governance.

A significant portion of Ario’s business is generated via the following long-term supply panels where Ario

entered into enabling contracts with its clients, allowing for closed bids and a short tender process:

▪ Eskom Project Management and Engineering

▪ Eskom Configuration Management

▪ Koeberg Project Management and Engineering

▪ Eskom Enterprise Project Management Office

▪ Eskom Strategic and Business Management Panel

▪ IDC Business Support

▪ Nersa Project Management Panel

Tenders for the following long-term supply panels are still under adjudication with a good likelihood of Ario

being selected on these panels:

▪ Transnet Project Management and Engineering

▪ Prasa Enterprise Project Management Office

A significant portion of the growth of Ario’s Project Integration Division historically can be attributed to Ario’s

ability to convince clients of our capability to deliver projects on time, on target and within budget. Ario is

able to compete with large multinational consulting companies by being more agile, more innovative and

more cost effective. Below is a summary of the larger projects delivered by the Project Integration Division:

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CLIENT PROJECT CLIENT CONTACT DATE

Eskom Task 372: Outage Management Planning on all of

Eskom's coal fired power stations

Jan du Plessis

072-3733462

May-14 to

Jun 16

Eskom Task 21: Business Process Development (Project Tools) Alex Daneel

082-8085125

May-13 to

April 14

Anglo American Product assembly preparation and project review Pieter Coetzer

083-638 4841

Nov-12 to

Feb-13

South African National

Space Agency Drafting the National Space Programme

Mr Renier Balt

082-460 7069

Jan-12 to

Jun-12

Necsa Owner's engineering and project management on the

SAFARI-2 project

Paul vd Walt

082-808 5840

March-12 to

March-13

Eskom Task 454: Kusile Commissioning, RBO and Spares

Engineering Services

Ntebogeng Mhlungu

082-226 3227

May-15 to

May 17

SABS SOC Ltd Project Management of the STB project Sylvester Ratlabala

079-652 5915

Jan-12 to

Aug-12

Automodular

Corporation Inc. Wind Turbine Manufacturing Study

Mr Jody Squires

+1-905-208-1053

Apr-12 to

Aug-12

NTP Radioisotopes Design of Necsa Waste Containers Frans Erasmus

078-460 6604

2012 to

Current

Zeiss Optronics System Engineering Lenie Britz

083 374 0633

2011 to

2013

LMT Products (Pty) Ltd Vehicle Safety Specifications Johan Jansen

082-400 5866

Oct-14 to

Dec-14

Eskom Task 131: Implementation and roll out of PCMs at

Eskom project offices at Eskom Power Stations

Abigail Booth

012 484 5145

Aug-13 to

Jul 14

Comenius Consultants Turret Specifications Johan Cloete

082-453 3379

Jun-14 to

Oct-14

Denel Land Systems Electronic Engineering and Software Development

Services

Jack Koetsier

083-679 2213

Aug-13 to

Dec-16

EON Consulting B2B Consulting Work as a subcontractor to EON Ettienne du Toit

082-451 3202

Aug-12 to

Dec-13t

SABS SOC Ltd Consulting on Operational Excellence Mercy Mathibe 079-

493 4614

Aug-11 to

June-12

Kumba Iron Ore Project Management for Kumba Iron Ore on

development of their Fleet Management System

Mr Werner Combrinck

082-929 3755

Oct-14 to

current

NTP Radioisotopes Project management on the DIPR project Paul vd Walt

082-808 5840

Sep-10 to

Mar-12

Curtiss Wright

Antriebstechnik GmbH Local product support

Mr Otto Fuchs

+41 79 430 5991

Jan-14 to

Current

Eskom Task 89: Engineering Change Management process at

existing power stations

Louis Fernandez

011 800 5363

Jul 13 to

Dec 14

Koeberg Power Plant Configuration Management Services Astrid Holland

082-339 4849

Jul 16 to

Dec 17

Emerging World

Technologies

Engineering and Project management on a turret

development

James Dey

082-785 5102

Feb 15 to

Apr 15

Eskom Task 537: Provision of Construction Management

Planning

Piet Bezuidenhout

079-896 3849

Aug-16 to

Aug-17

Paramount Advanced

Technologies Development of a helicopter turret

Mr Ig van Eeden

082-979 3910

May-15 to

March-16

Necsa SOC Ltd Necsa Project Management and Engineering Services Mr Mervyn Govender

083-629 0746

Aug 15 to

Current

Eskom Provision of Configuration Management Services Lucky Mokoena

079 348 7630

Jan-16 to

Current

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CLIENT PROJECT CLIENT CONTACT DATE

Eskom Task 272: Cost Estimating and QS Services for PDP

Northern Grid

Nombuso Zuma

073-279 1530

Feb-14 to

Feb-16

Denel Dynamics Certification of software on Seeker400 project Tonya Naude

082-567 8595

Feb-16 to

May-16

Eskom Task 587: Mechanical and Civil Engineering Kriel Power

Station

Nonku Masombuka

073-780 5337

Sep-16 to

Current

Cato Ridge Logistics Hub

Consortium

Programme management and business case

development

Mdu Dlamini

079-060 5686

Sep-15 to

Feb-16

Eskom Task 551: Maintenance Planning Ntombi Magwaza

083-351 1543

Jun-16 to

Jun-17

Eskom Task 614: Microgrid system design Nick Singh

083-415 6235

Nov-16 to

Dec-16

Koeberg Nuclear Power

Plant Koeberg CM Services

Astrid Holland

082-339 4849

Sep-16 to

Apr-18

Eskom Task 606: Integrated Security System Upgrade Karen Pillay

082 881 5994

Jan-17 to

Current

Kumba Iron Ore Kolomela Dispatch Project Johannes Shuping

083-4695198

Jan-16 to

March-17

Eskom Task 639: Outage Planning for Palmiet Altus Erasmus

084 454 4647

Feb-17 to

Current

Eskom Task 802: Transformer Repair Works Reconfiguration Dan Mashigo

072-813 9306

May-17 to

Current

4.2 Ario Management Consulting Division

Ario Management Consulting was started in September 2017 and supports businesses with the improvement

of their performance, focusing on the analysis of organisational difficulties and the development of plans for

improvement. Ario provides its clients with the benefit of objective external advice and specialised expertise

built up through Ario’s exposure to consulting engagements with numerous organisations to date. It is also

an approved panel member as a service provider to the Independent Development Corporation (IDC).

4.3 Certo

Ario has a 49% shareholding in Certo Project Integrators (Pty) Ltd (“Certo”). Certo operates in the same

ecosystem as Ario Integrators with the sole distinction of being a black youth owned company. Through

Certo, Ario is able to tender on projects that requires participation by Black Youth Owned Companies. Certo

relies on Ario finances, resources and infrastructure to conduct and manage the projects.

The agreement between Certo and Ario is that Certo is the bidding vehicle only if Ario does not comply with

the tender requirements (i.e. it being SME, BYO or QSE). There is also a non-compete agreement between

Ario and Certo.

Certo is on Eskom’s Project Management and Engineering Panel C (whilst Ario is on Panel B, for larger

companies) and recently received a R42m tender from Eskom on this panel for the supply of maintenance

planning services on all of Eskom’s coal power stations.

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5 PRODUCTS

5.1 Business Model

The development of a wide range of renewable energy solutions and the drive to reduce our reliance on fossil

fuels has triggered a world-wide renaissance in renewable energy generation. Grids will become smarter and

energy utilisation will be more and more efficient as distributed energy resources grow and new strategies

for grid integration and management evolve.

Ario has targeted this global growth in the renewable energy generation market with the development of

unique products designed to reduce cost, increase efficiencies and improve reliability.

Ario has market access is primarily through large international partners with a global footprint, massive client

base, credibility in the market and distribution network which part of Ario’s market penetration success.

5.2 Inverter Division

Turbine Generators and Inverters. Ario delivered a hydro turbine

generator and inverter to DesignPro in Ireland as part of a tidal

wave energy harvesting programme funded by the European

Union.

Compared to wind energy, wave and tidal energy has one big

advantage: while it is variable, the energy flows are highly

predictable, since tides in particular have a very regular 24-hour

cycle. In addition, the availability of tidal energy at night is

particularly useful when solar generation is not possible.

Ario’s products will be shipped to France in May 2018 for testing in conjunction with DesignPro’s tidal wave

turbine blade configuration. Ario is also in discussion with Ocean Renewable Power Company (ORPC) in the

USA to use Ario’s generator and inverter in conjunction with ORPC’s patented turbine. Given Ario’s recent

success at DesignPro, there’s a good chance of ORPC also choosing Ario as its preferred inverter supplier.

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Multilevel inverter. Ario’s multilevel inverter includes a number

of very unique and innovative design features that none of the

other multilevel inverters have and which puts Ario ahead in the

inverter technology game. The benefits are significant.

The inverter switching frequency is about 400 times lower than

PWM inverters. This has a dramatic reduction on capacitor

stresses, improves reliability and extends the life of inverter

components significantly. Another added benefit of a pure

multilevel configuration is that the inverter output is a pure sine

wave, without the need for an output filter, which increases the

efficiency and bandwidth and reduces cost.

These benefits make it possible to harvest a broader range of

wind energy; improve PV energy conversion by a significant

percentage; provide transmission and control reactive power;

minimize harmonic distortion; achieve at a low cost high

efficiency over a wide power range; have a high reliability and a

life expectancy of up to four times that of conventional

technologies.

String Inverter. Ario’s String Inverter features an advanced closed

loop Maximum Power Point Tracking (MPPT) algorithm for

improved solar energy harvesting, as well as the Ario's unique

multilevel inverter technology that reduces losses and increases

efficiency. The Ario String Inverter generates a perfect sinusoidal

output voltage that eliminates the need for a conventional output

filter. This results in a dramatic reduction in switching losses and

extends the life of the inverter by up to three times.

The Ario String Inverter combines established technology with

innovative design to provide an economical solar solution with

increased reliability and vastly reduced life cycle costs.

Off-Grid Inverter. The Ario Off-Grid Inverter is a modular and configurable single-phase inverter. The Ario PV

Regulator implements Maximum Point Power Tracking (MPPT) on multiple Photo Voltaic (PV) string inputs

that allows for optimal energy harvesting from the available PV Panels. This is combined with the unique Ario

multilevel inverter technology which reduces switching losses, increases efficiency as well as life expectancy

and reliability, making the Ario Off-Grid Inverter far more efficient than current state-of-the-art inverter

technologies. This combination of innovative design and technology ensures that the Ario Off-Grid Inverter

is the most cost effective Solar Power Inverter solution over the life cycle of the installation.

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Ario is positioning its inverter products as follows:

PRODUCT APPLICATION

Blade Inverter 6kW ▪ Grid-tied homes in first world countries – no off-grid use

BladePlus Inverter 6kW ▪ Grid-tied homes with an off-grid use from solar and/or batteries

BladePlus Inverter 20kW String ▪ Sting inverter for small solar farms ▪ Grid-tied offices and/or industries

EasyGrid 32kW (Single phase off grid) ▪ Single-phase off-grid use for industries, lodges, farms etc.

BladePlus Inverter 120kW String ▪ Sting inverter for solar farms

Central150 ▪ Central inverter for larger solar farms

Central600 ▪ Central inverter for large solar farms

DGBoost120 ▪ Designed to boost diesel generators with solar energy and reduce diesel consumption. Off-grid industries, farms and mines.

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5.3 Rectifier Division

Ario developed a rectifier for Base Transceiver Station cell phone towers:

▪ Towers operating from single or three phase grid power with Diesel Generator back-up, or

▪ Towers in remote areas where no grid power is available, using a diesel generator as the main

power source, or

▪ Towers in remote areas where VERSA IPS2 combines solar power and diesel generator power for

the optimum solution.

Ario won a tender from Liquid Telecom Group (previously Neotel) for the development and production of

rectifiers specific to Liquid’s requirements. The first fourteen units have been delivered and successfully

commissioned. Ario expects additional future production orders from Liquid Telecom for these rectifiers as

Liquid Telecom has in excess of 1200 sites in need of rectifiers. Based on a successful roll-out of these

rectifiers it is expected that Ario will sell just as many, if not more, of these rectifiers to other

telecommunication companies within the next three years. Ario is also in discussion with Econet, who

operates in excess of 10,000 telecom sites (all using similar rectifiers) all over Africa.

VERSA IPS2. The VERSA IPS2 integrates all the elements necessary to provide reliable power to a Telco site,

including rectifiers, batteries, PV regulators, Diesel Generator/Grid Auto Transfer Switch, distribution board

with AC and DC circuit breakers, as well as a control and monitoring system. A Control and Monitoring system

is integrated with the VERSA IPS2. Below a picture of the VERSA IPS2 in production:

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5.4 Ario Power Control Division

DIN-Rail Soft Starter. The MEsoft/din-02 and

MEsoft/din-03 are ready-to-use two and three

phase intelligent soft starters. The MEsoft/din

range offers a compact solution for small to

medium applications such as pumps, fans, scroll

compressors, filler lines, conveyors and more.

The operating current is up to 40A RMS and the

starting current is up to 60A RMS. Built-in by-pass

relays are included in all models. Reverse phase

rotation protection is included as well as motor

protection using motor thermal over-load

protection curves (Classes 1, 2, 5, 10). Also

included is a pre-start short circuit detection and

protection function. Maximum current

protection during starting is provided at 60A RM.

Low Power Soft Starters. Ario’s has a range of MEsoft microprocessor-based advanced digital soft starters,

with external or built-in bypass and full 3-phase control. It incorporates both enhanced soft-start and soft-

stop characteristics providing the best solution for a wide range of applications. Its comprehensive motor

protection package guarantees long term reliability while the external bypass connections or internal bypass

options ensure flexibility and excellent performance – all in a small, versatile design

The range comprises 4 models, with starting current ranging from 200A to 1600A, and nominal supply voltage

between 400-690V AC3. Each model offers a solution for a wide range of motor sizes and usage profiles

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6 OPERATIONS

6.1 Quality Management

The business is executed within an established Ario SHEQ system. Sufficient oversight mechanisms are in

place to oversee supplier actions to ensure that all supplies are in accordance with Ario’s SHEQ requirements

and comply with the technical requirements and specifications.

6.2 Research and Development

This is a critical focus point due to the investment, time and resources it takes and thus important to make

an informed decision to approve an innovation project and follow strict process disciplines post approval.

To this point Ario developed its Product Delivery Model:

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6.3 Systems and Processes

The successful management of the business is a critical aspect that should not be underestimated. Even

though product industrialisation and qualification are business priorities to meet the delivery timescales, the

business management processes and procedures, including quality systems, configuration management,

financial controls, supplier management and production planning are equally important to ensure the

business outcome meets the expectations of its stakeholders. A strong business management team, having

the relevant experience, has been appointed to oversee business execution on a day-to-day basis.

Ario has all its ISO9001 system and processes in place and is operating in accordance with ISO9001.

Certification is in process. The company has already passed its stage 1 audit recently. The stage 2 audit is

planned for July 2018, after which Ario should have its ISO9001 accreditation.

The contact details of Ario’s Executive Team are the following:

ATTENTION CAPACITY TELEPHONE MOBILE ELECTRONIC MAIL

Dr Louis Heyns CEO 012 460-5631 083 305 1318 louis.heyns@ario.co.za

Ntsako Mdhluli COO 012 460-5631 083 689 9598 ntsako.mdhluli@ario.o.za

Dr Ramatsemela Masango Chairperson 012 460-5631 072 624 0013 rami.masango@ario.co.za