This document discusses opportunities for energy savings through improving industrial motor systems in the Philippines. It notes that electricity rates in the Philippines are the second highest in Asia, with 40-60% of energy costs at industrial plants going to electric motors. Up to 50% of electricity is wasted due to inefficient induction motor technology, drive systems, power anomalies, and lack of maintenance. Replacing induction motors with more efficient permanent magnet synchronous motors and correcting other inefficiencies could achieve substantial energy and cost savings. Machine HealthCare is an energy service company that implements efficient motor upgrade projects under an energy savings performance contract model, providing upfront capital and guaranteeing savings over the contract term.

2. Energy Savings Opportunity
• Electricity rates in the Philippines are second
highest in Asia (Singapore is highest)
• 40 – 60% of energy costs at most industrial plants
in Philippines come from electric motors
• 50%+ electricity wasted on motor systems due to:
 Inefficient ‘induction motor’ technology
 Inefficient Drive systems
 Power Anomalies
 Lack of maintenance (only ‘fixed when broken’)
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3. Motor System Inefficiencies
3
Induction
Motor
Power Anomalies
Drive
System

4. Energy Efficiency Solutions
• Replace Induction Motors (IM) with Permanent
Magnet Synchronous Motors (PMSM), Super
Premium, or IE4 Efficiency Class.
• Correct Power Anomalies
• Refurbish and recalibrate Drive System
4

5. Motor Electrical Losses
5
PMSM: Rotor loss & rotor iron loss are
eliminated = energy savings
Efficiency is equivalent to IE3 or NEMA Premium

6. Motor Savings
(7200 operating hours/year)
6
0
20000
40000
60000
80000
100000
120000
140000
160000
Existing
power drawn
Rewound
Motor
Rewound +
EMDS
Upgrade to
HEM
HEM +
EMDS
kWHrs
kWhr, 45kW
26%
41%
61%

7. Other Technologies
7

8. Under an Energy Savings
Performance Contract (ESPC)

9. What is ESPC?
• Develops, finances and implements end-use energy
efficiency projects (EEPs) at energy consuming
facilities (Hosts) and risks payment for its services
on actual savings performance of the EEPs.
9
A performance-based contract with an
Energy Services Company (ESCO) that:

10. ESPC Illustration
E + O&M
E + O&M E + O&M
HOST Profit
ESA Services
Financing
Debt Servicing
HOST
Profit
E+O&M
Cost Savings
HostCashflow
Before During After

11. ESCO “Turnkey” Services
• Investment Grade Energy Audit (IGA)
• Comprehensive Engineering Design
• Project Financing
• Complete Installation and Commissioning
• Long-term Performance Guarantees
• Savings Measurement &Verification (IPMVP)
• Ongoing Equipment Maintenance
11

12. Who is Machine HealthCareTM?
• MHC is a local ESCO that implements and funds
new energy-efficient industrial motor systems
under the ESCO Shared Savings model.
• Under Shared Savings, MHC provides 100% of all
upfront capital cost for it to implement the Motor
Systems in exchange for receiving a majority of the
Savings over the specified ESPC term.

13. Host approves
Project Concept
MHC Develops initial
“Project Concept” Proposal
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

14. MHC MANAGEMENT TEAM
LEONARDO A. DAYON
• President, Machine HealthCare
• Founder, ALPS Maintaineering Services, Inc.
• Professional Electrical Engineer
JESSIE L. TODOC
• Project Manager, Machine HealthCare
• Registered Electrical Engineer
• MBA
14

15. 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 ESCOs
• 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

16. 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

17. 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
efficieincy solutions;
• Access to cost effective capital for funding EEPs on
a Shared Savings basis.
17

18. Host Benefits from ESPC
• Positive Cash Flow:
 No upfront capital to develop/implement EEP;
 Savings payments from current operating costs
• Ownership transferred to Host at end of ESPC Term
• No development or implementation costs or risks
• Savings are Measured & Verified per IPMVP
• Improved competitiveness and “green” footprint