This document provides an overview of Optimal Energy, a South African company developing an electric vehicle called the Joule. It discusses the challenges of climate change and energy security driving a need for electric vehicles. Optimal Energy aims to establish itself as a leader in the South African and global electric vehicle industries. The company was founded in 2005 and has over 100 employees. Its vehicle, the Joule, was designed by a renowned automotive stylist and will be a compact, safe, spacious city car with a range of 240km. Optimal Energy plans to produce 50,000 vehicles annually by 2023 for both domestic and export markets.

1. Kobus Meiring, Diana Blake, September 081OPTIMAL ENERGY

2. Diana Blake – May 2011Joule, a spearhead for the south African Electric Vehicle and Battery industries2

3. What Challenges Are We Facing?The 6.5billion people in the world today are consuming 1.4 earths, i.e. the global community is living 40% above its means

4. The supply is finite, but demand is growing exponentially – 9 billion by 2050, all striving to live like the first world

5. We are borrowing from the future to prosper and grow today

6. Our current way of life is not sustainableDiana Blake, May 20113

7. Threat: Global WarmingDiana Blake, May 20114

8. Risk Of Overshooting 2°C – 50%!Diana Blake, May 20115

9. Diana Blake, May 20116Threat: Energy SecurityBrent Crude on 11 May2011: $118/barrel

10. A Massive Opportunity:“Renewable energy, as a reaction to peak oil and climate change, is probably the most important economic boon that will occur in our lifetimes.” - Craig Shields“Renewables are nothing less than the re-industrialisation of the whole planet.” - John Doerr“No power on earth can stop an idea whose time has come” - Victor HugoDiana Blake, May 20117

11. A New Paradigm is needed:We need to use the present to improve the futureNature does not negotiate!Diana Blake, May 20118

12. Current Transport Landscape~800,000,000 vehicles in the world, doubling by 2030>50% of world live in cities, 75% of city transport is by carOverwhelmingly dependent on fossil fuelsTransport causes ~ 1/3 of energy CO2 emissions in the worldEnergy security concerns around crude oil worseningMarket insecurity -> price volatility -> economic instabilityAlternatives needed!Diana Blake, May 20119

13. Market ForecastBy 2020, 10% to 25% of global car production will be electric vehicles. (Frost & Sullivan, Renault, Betterplace, etc)

14. Global car fleet in 2010 – 800 000 000

15. Global car fleet in 2030 – 1500 000 000

16. 10 million will be electric vehicles

17. Globally, EV’s will not only take market from the (ICE) fleet – it is mostly new growthDiana Blake, May 201110

18. Legislation & Incentives:JAPAN:Substantial rebate

19. New subsidies for EV manufacturers

20. Subsidised battery R&D

21. Currently building the largest Li-Ion battery manufacturing plant in the world (Matsushita Battery Industrial Co.)USA:1000 000 plug-ins by 2015,

22. Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP): $25 billion in loansUK:

23. £5 000 subsidy

24. London – free parking, license, registration & exemption from congestion chargeISRAEL:70% tax on conventional cars, 10% tax on EV’sCHINA: EV’s one of four national 25 year projects, $15bn government fundingDENMARK:180% tax on conventional cars, 0% tax on EV’sSOUTH AFRICA:New Tax on Carbon Emissions

25. Investment in Optimal Energy for the development & production of the JouleIDC, DST have launched battery initiatives

26. SABS have included EV’S in committee

27. IPAP2 to support SA EVEUROPE:France – € 5000 rebate, France – Oneof world’s first Auto focused Li-Ion battery plants

28. Monaco – €6 000 rebate

29. Spain – 1 million EV’s by 2014

30. Portugal – 20% of gov fleets, 1100 charging stnsThe Solution:Create a business & product that:Meets all sustainability goalsIs attractive to the mass marketIs affordable to the mainstreamMakes business sense nowMakes use of Legislation and IncentivesDiana Blake, May 201112

31. Proven Technology1935: The decline of the electric vehicle was brought about and disappeared by 19351897: First vehicle with power steering – an EV. Electric self-starters 20 years beforeappearing in gas-powered cars1902: The Phaeton had a range of 18 miles, a top speed of 14 mph and cost $2,0001859: Gaston Plante invented rechargeable lead-acid batteries.1894 - 19351894 - 19351834: Thomas Davenport invents the battery electric car – batteries were not rechargeable1921: Federal Highway Act. By 1922, federal match (50%) for highway construction andrepair (for mail delivery).1900: All cars produced: 33% steam cars, 33% EV, and 33% gasoline cars1910: Electric vehicle production peaked1998: The Toyota RAV4 sport utility, the Honda EV Plus sedan, and the Chrysler EPIC minivan. These three vehicles were all equipped with advanced nickel metal hydride battery packs1990: U.S. 1990 Clean Air Act Amendment, the U.S. 1992 Energy Policy Act, and regulations issued by the California Air Resources Board (CARB)., several states have issued Zero Emission Vehicle requirements1990: GM shows their production EV initially named, Impact; later it was re-named the EV-12002: Toyota RAV4-EV retail sales; their estimated 2-year supply sold out in 8 months.1960 - 2003Source: Frost & Sullivan2000 : The Honda Insight is the first production vehicle to feature Honda's Integrated Motor Assist system. The first-generation Insight was produced from 2000 to 2006 as a three-door hatchback.1960’s: The first Battronic electric truck was delivered to the Potomac Edison Company in 1964. This truck was capable of speeds of 25 mph, a range of 62 miles and a payload of 2,500 pounds1996 - 97: GM begins production of the EV-1 . Toyota Prius hybrid gas-electric vehicle unveiled at the Tokyo Auto Show2003: ZEV Mandate weakened to allow ZEV credits for non-ZEV s. Toyota stops production of the RAV4-EV; Honda stops lease renewals of the EV-Plus; GM does the same for the EV-113Diana Blake, May 2011

32. Diana Blake 20111414This is the biggest and fastest change in the history of the automobile

33. Optimal Energy’s Vision:To establish and lead the electric vehicle industry in South Africa, and expand globally.Diana Blake May 2011

34. Optimal Energy’s PrinciplesGREEN:With the convergence of three critical factors – climate change, pollution, and energy security, new types of urban transport must be developed and implemented in order to sustain the current way of lifeFORWARD THINKING, PROFITABLE:This convergence, together with advances in lithium battery technology, enables Optimal Energy to develop a business case giving a high return on investment, and to become a globally recognized brandLOCAL PRODUCTION, JOB CREATION:With backing from the South African government, and with an intention to produce the vehicles in South Africa, the project will directly and indirectly benefit the local people and help to develop a nationEXPORT:With the goal to produce and sell 50 000 vehicles a year starting end 2013, Optimal Energy has a taken an aggressive strategy and wants to make an impression on the global automotive industry

35. Optimal Energy’s Strategy:Optimal Energy, will be responsible for:development

36. industrialisation

37. production

38. marketing

39. distribution

40. retail

41. after sales support of electric vehicles under the Optimal Energy’s brand OE focuses on EV specific areas optimising the use of existing suppliers and infrastructure in non-EV specific areas, to reduce capex, schedule and riskDiana Blake, May 201117

42. The CompanyFounded in 2005, based in Cape TownStrong Management Team:Hi-tech development (Denel, SALT)Automotive production, sales and marketing (Mercedes, BMW, MINI), First and second tier suppliers (Johnson Controls, Arvin Meritor, Schnelleke)109 Employees: >60% B, M or PhD EngineersWorld Class Associates: Universities, SABS, P3, EDAG, Zagato, Idiada, Hi-Tech Automotive Strong Government supportShareholders: Founders, DST-TIA, IDC, ELIDZ, ECDiana Blake, May 201118

43. Designer Keith HelfetEducation: Graduated as mechanical engineer at the University of Cape Town

44. Completed the most prestigious automotive styling programme in the world – obtained Masters at the Royal College of Art in LondonExperience: Joined Jaguar in the UK and eventually became the chief stylistDesigned a number of high-performance cars, such as the iconic XJ-220 and the XK-180 and F-TypePosition: Consulting Design Director

45. Optimal Energy’s Market StrategyA globally competitive productThe ultimate city carIntroduced into a rapidly expanding new global market10 million electric vehicles by 2020Low volumes50 000 (can only be produced profitably at such low volume in SA – 5 Joules out of every 1000 EV’s sold globally)Unique customer experienceThe Joule Store, integrated distribution, after salesDiana Blake, May 201120

47. The Ultimate City CarSafe - UN ECE safety standards, Euro NCAP 5 star

48. Beautiful - designed by Keith Helfet

49. Spacious - full five-seater, largest boot in class

50. Comfortable - quiet, no gear changes, single pedal driving

51. Green - zero emissions, regenerative braking, integrated PV panel

52. Convenient - never fill up, recharge at home, minimal maintenance

53. Nimble - 0 to 60km/h < 4.8s, 100-0km/h <3s, top speed 135km/hPractical - range 240km (NEDC) 300km (UDDS cycle)Sensible - Energy cost <10% of conventional fuelThe Ultimate Ownership ExperienceDiana Blake, May 201122

54. Compact:

56. Joule

57. Prototype Testing

58. Joule Marketing FleetDiana Blake, May 201127

59. Joule InternationallyParis 2008:1,432,972 Visitors90 World premiers of which 30 were powered by new energies2000 cars were exhibited13 000 journalists from 92 countriesHighest international profileWe have been approached by 32 distributors from 12 countriesGeneva 2010:Bigger than Paris

60. Very positive reception

61. >100 distributors

62. “Best EV at the Geneva Motor Show”The MarketPilot fleets in global target cities from 2011 until start of productionFirst plant, and volume launch in South Africa in 2015:General urban passenger market Corporate & rental fleetsGovernment (national, provincial, local) and state owned companiesExporting from 2015 (RHD, then LHD)Export growing to >80% of total salesUK first export market, then commonwealth, then EU, then the EastDiana Blake, May 201129

63. Sales ForecastOE along with F&S, and other industry leaders considered political, economic, social and infrastructural factors in finding the most attractive markets by city:UK, Germany, Spain, Italy and France.

64. 49.7 Million People

65. GDP: US$ 350 billion

66. GDP Growth: 2.6%Pretoria:BMW SA

67. Ford SA

68. Nissan/RenaultDurban:Toyota SAEast London: Mercedes Benz Port Elizabeth: General MotorsVolkswagen470 000 CBUs

69. US$ 15.32 billion

70. Exports: 230 000 CBUs

71. Imports: 163 000 CBUs

72. Sales: ~500 000 per yearEconomic ActivityLocal OEMsVehicle ProductionSouth Africa

73. East London IDZOver 230 ha of prime industrial land fully serviced sites

74. Proximity to transport networks (2,5 km from EL Airport and 6km from EL’s river port , rail link to all major South African cities)

75. Direct access to export and domestic marketsFurther Industry OpportunitiesElectric motor manufacturing• Battery cell manufacturing• Battery assembly and testing • Power electronics at automotive prices (chargers, high power relays, high power fuses, HV connectors, HV cables)• Electric compressor, peripheral components • Battery handling equipment• Automotive electronics (ECU’s, displays)Charging infrastructure & equipmentBattery financingEV testing & certification facilities for global OEM’sDiana Blake, May 201133

76. South African policy: IPAP212.4.7 Commercialise South Africa’s electric carNature of the intervention: Provision of appropriate support to encourage local manufacture of EV’s and related components, installation of infrastructure for such EVs, creation of testing facilities, provision of demand stimulation mechanisms and public education on the use and benefits of alternative energy source vehicles.Economic rationale: Direct and positive spillover effects of developing a local electric vehicle coupled with the creation of the broader regulatory environment for such vehicles.Outcomes: Creation of a legislative and regulatory environment to allow the operation of electric vehicles, relevant testing infrastructure for electric vehicles, local manufacturing for domestic and global markets, initiation of charging infrastructure and educational campaigns on electric vehicles.Kobus Meiring, Diana Blake, 20113412.4.7 Commercialise South Africa’s electric carNature of the intervention: Provision of appropriate support to encourage local manufacture of EV’s and related components, installation of infrastructure for such EVs, creation of testing facilities, provision of demand stimulation mechanisms and public education on the use and benefits of alternative energy source vehicles.Economic rationale: Direct and positive spillover effects of developing a local electric vehicle coupled with the creation of the broader regulatory environment for such vehicles.Outcomes: Creation of a legislative and regulatory environment to allow the operation of electric vehicles, relevant testing infrastructure for electric vehicles, local manufacturing for domestic and global markets, initiation of charging infrastructure and educational campaigns on electric vehicles.Key Milestones1. 2010/11 Q3 Approval of investment support measure for the manufacture of the electric vehicle and components.2. 2010/11 Q3 Development of a Government position on the purchasing, demand stimulation, infrastructure for charging, testing facilities and public education regarding EVs3. 2011/12 Q1 Roll-out of public education on EVs4. 2011/12 Q2 Commissioning of the plant5. 2011/12 Q3 Development of testing facilities for EVs6. 2011/12 Q4 Commencement of plant construction7. 2013/14 Q4 Start of productionLead department: DTISupporting departments / agencies: DoT, DST, Provincial Governments and targeted MetrosEconomic impact:An estimated 160,000 direct jobs will be created in the industry in the next ten years. Investment levels exceeding R20 billion are expected to take place in the next four years with an expected further annual R3 billion for the following six years. Greater localisation of componentry will lead to an improvement in the trade balance.

77. IPAP2Key Milestones1. 2010/11 Q3 Approval of investment support measure for the manufacture of the electric vehicle and components.2. 2010/11 Q3 Development of a Government position on the purchasing, demand stimulation, infrastructure for charging, testing facilities and public education regarding EVs3. 2011/12 Q1 Roll-out of public education on EVs4. 2011/12 Q2 Commissioning of the plant5. 2011/12 Q3 Development of testing facilities for EVs6. 2011/12 Q4 Commencement of plant construction7. 2013/14 Q4 Start of productionLead department: DTISupporting departments / agencies: DoT, DST, Provincial Governments and targeted MetrosEconomic impact: An estimated 160,000 direct jobs will be created in the industry in the next ten years. Investment levels exceeding R20 billion are expected to take place in the next four years with an expected further annual R3 billion for the following six years. Greater localisation of componentry will lead to an improvement in the trade balance.Kobus Meiring, Diana Blake, 20113512.4.7 Commercialise South Africa’s electric carNature of the intervention: Provision of appropriate support to encourage local manufacture of EV’s and related components, installation of infrastructure for such EVs, creation of testing facilities, provision of demand stimulation mechanisms and public education on the use and benefits of alternative energy source vehicles.Economic rationale: Direct and positive spillover effects of developing a local electric vehicle coupled with the creation of the broader regulatory environment for such vehicles.Outcomes: Creation of a legislative and regulatory environment to allow the operation of electric vehicles, relevant testing infrastructure for electric vehicles, local manufacturing for domestic and global markets, initiation of charging infrastructure and educational campaigns on electric vehicles.Key Milestones1. 2010/11 Q3 Approval of investment support measure for the manufacture of the electric vehicle and components.2. 2010/11 Q3 Development of a Government position on the purchasing, demand stimulation, infrastructure for charging, testing facilities and public education regarding EVs3. 2011/12 Q1 Roll-out of public education on EVs4. 2011/12 Q2 Commissioning of the plant5. 2011/12 Q3 Development of testing facilities for EVs6. 2011/12 Q4 Commencement of plant construction7. 2013/14 Q4 Start of productionLead department: DTISupporting departments / agencies: DoT, DST, Provincial Governments and targeted MetrosEconomic impact:An estimated 160,000 direct jobs will be created in the industry in the next ten years. Investment levels exceeding R20 billion are expected to take place in the next four years with an expected further annual R3 billion for the following six years. Greater localisation of componentry will lead to an improvement in the trade balance.

78. Future Designs

79. Optimal Energy’s current statusPrototype development complete (engineering prototypes, mules, display vehicles and marketing prototypes)

80. Set up to produce pilot fleet (5 per month)

81. Starting industrialisation to reach start of production by 2015 – detailed plan, schedule, costing ~US$1.3b

82. Cooperating with very strong partners – EDAG, Idiada, Zagato, etc.Diana Blake, May 201137

83. Optimal Energy’s current status contd.Ready to explore relationship with OEM’s as strategic equity partners

84. Designs, names, brands protected internationally

85. Strong brand built internationally

86. Unique retail model developed, can be rolled out internationally quickly and cost effectively

87. Strong SA government support built – investment, IPAP2Diana Blake, May 201138

88. Business HighlightsStart of Production in 2015Plant sized for 50 000 p.a. over 2 shiftsELIDZ is the preferred siteSales peak at ~73 000 units p.a. (production limit)Joule Generation 1 in production for 7 yearsTotal Investment Requirement is ~USD 1.3bnProjected IRR is 27.7%1 350 OE Assembly Jobs, 6 200 Indirect, 7 550 in TotalInvestment Commitment Needed in 2011

89. Kobus Meiring, Diana Blake, September 0840OPTIMAL ENERGYThank You