Why replace old motors when still operational? Remember, old induction motor has an economic lifespan of 13 years and whose efficiency degrade overtime due to power system anomalies, vibrations, misalignment, and etc. thereby increases your EO&M cost. When EO&M costs increases, securing capital expenditure funding to replace inefficient motors with high efficient motor is frequently an issue. Machine HealthCare Corporation (MHC) offers alternative method – the Energy Savings Performance Contract (ESPC) – is really beginning to gain momentum.

1. Convert wasted energy into profits  No
Investment
Through
Energy Savings Performance Contract
(“ESPC”)

2. Under an Energy Savings
Performance Contract (ESPC)

3. What is an ESPC?
3
A performance-based agreement between an
Energy Services Company (ESCO) and the
owner of an end-use energy consuming
facility (Host) in which the ESCO:
• Develops, finances and implements an energy
efficiency project (EEP) at Host’s facilities on a
‘Turnkey’ basis;
• Receives performance-based, long-term
payments from Host based on ‘Measured &
Verified’ savings generated by the EEPs.

4. ESPC Illustration
Energy+
O&M
Cost
HOST Profit
ESCO Fees
Investment
Repayment
HOST
Profit
Energy+
O&M
Savings
EProjectCashflow
Before
5 Year
ESPC After
Energy+
O&M
Cost
Energy+
O&M
Cost

5. ESCO “Turnkey” Services
• Investment Grade Energy Audit (IGA)
• Comprehensive Engineering Design
• Project Financing
• Complete Installation and Commissioning
• Long-term Performance Guarantees
• Savings Measurement &Verification
• Ongoing Equipment Maintenance
5

6. Host Benefits from ESPC
• No upfront capital to develop or implement EEP
• Cash profits realized from savings during ESPC term
• At end of ESPC term:
1) Ownership of EEP assets transferred to Host at no cost
2) 100% of savings received over remaining useful life of
assets (15-year useful life for High Grade equipment)
• No development or implementation risk
• Measured reductions in operating costs and GHG
emissions (including CO2) from ESPs
• Improved competitiveness and “green” footprint
6

7. Proposed HEM System Upgrade
• Total connected load: 2487 kW
• Total number of motors to be upgraded: 20
• Total number. of VSDs needed to replace
existing controllers: 20
• Refurbish HEM drive systems
7

8. MHC ESPC Concept Proposal
• MHC will:
1) engineer, procure, install and commission proven,
High-Grade EE equipment on a turnkey basis
2) Have 100% of the EEP’s capital cost funded
3) Monitor the EEP performance and M&V the savings
with transparent International Performance
Measurement & Verification Protocol (IPMVP)
• SMYAC will pay 60% of Savings for 5 years
• At end of 5-year ESPC Term:
‒ EEP assets transferred to SMYAC at no cost
‒ SMYAC receives 100% of savings for ~10
remaining years of EE equipment useful life 8

9. 9
Estimated ESPC Cash Flow
ProjectInvestment:
EEPCapitalCost 32,723 ESPCTerm-Years 5
VAT 10% 3,272 ElectricCostInflationperYear 5%
TOTALPROJECTINVESTMENT 35,996 ESCOShare ofSavings 60%
Year> 1 2 3 4 5 6 7 Total
SAVINGS Estmitatedat 27,097 28,452 29,875 31,368 32,937 34,584 36,313 584,718
ESCOShare ofSavings @ 60% (16,258) (16,258) (16,258) (16,258) (16,258) - - (81,292)
CashFlowto Hostat8% NPV 246,373 10,839 12,194 13,616 15,110 16,678 34,584 36,313 503,427
MHC ESPC Cashflow Estimate
PhilippinePeso (000)
SAN MIGUELYAMAMURA ASIA CORP
MAJOR ASSUMPTIONS:

10. Host approves
Project Concept
MHC Develops initial
“Project Concept” Proposal after Walk-Thru Audit
No Host
Payment
Host signs LOU for MHC to conduct IGA with agreed
“Minimum Criteria” as basis for “IGA Fee”
IGA completed that meets
“Minimum Criteria”
MHC Begins Project Installation
NO
YES
Host signs ESA with MHC
to implement Project per IGA
YES
NO
Host Pays
IGA Fee
No Host
Payment
NO
YES
MHC Project Development Process
YES
Walk-Thru Audit
is Free of Charge

11. MHC Core Strengths
• Management Team with deep experience in local
motor implementation combined with international
ESCO, project finance and industrial EEP expertise
• Unique financial and industrial technical know-how;
• Access to best-in-class international and domestic
technologies that deliver most cost-effective energy
efficiency solutions;
• Access to cost effective capital for funding EEPs on
a Shared Savings basis.
11

12. MHC MANAGEMENT TEAM
LEONARDO A. DAYON
• President, Machine HealthCare Corp.
• Founder, ALPS Maintaineering Services, Inc.
• Professional Electrical Engineer
12
BRUCE K. COLBURN
• Chief Technology Officer, Machine HealthCare Corporation
• COO, EPS Capital Corp
THOMAS K. DREESSEN
• CEO, Machine HealthCare Corporation
• President & CEO, EPS Capital Corp.

13. MHC Principals
Thomas K. Dreessen
• Formed ESCOs in 10 Countries & developed EEPs in 24 Countries
• Financed over $200 million of “savings-based” EEPs including the
first ones in eastern Europe in 1995
• Created SPC “paid-from-savings” structure and debt guarantee
mechanisms for EE financings in Mexico
• Created/conducted EE loan training program Mexican banks
• Past President of US National Association of ESCO
• Past Board Member & Chairman of International Committee for the
Alliance to Save Energy
• Chairman of Evaluation Efficiency Organization (“EVO”)
• BBA - Accounting; MBA and a Certified Public Accountant

14. Leonardo A. Dayon
• 37+ years of experience in electrical engineering with focus on repair
and maintenance of inductions motors
• Professional Electrical Engineer 2030
• CAT 2 Vibration Analyst, Vibe Institute
• CAT 3 Certification Vibration Analyst, Vibe Institute
• Level 2 Condition Monitoring Engineer, FIS Services
• Laser Alignment Specialist, Fixturlaser
• EPRI Motor/Generator Rewind, TECO-WH
• Understanding Power Quality Problems & Solutions, APQ
Philippines
MHC Principals

15. Bruce K. Colburn, Ph.D., P.E.
• 30+ years of experience in energy engineering and development
of EEPs for ESCOs
• Involved in developing over $300 million of EEPs including:
- $ 10 Million project Brazil Aluminum plant
- Design of $12 million ESCO project at Russian Steel Mill
- Implementing a $4 Million ESCO project @ GE Aircraft.
• Former principal for 13 years of Texas Energy Engineers
• Member of U. S. Association of Energy Engineers
• Ph.D. - Electrical Engineering
MHC Principals