#1中集團 SUNPOWER GROUP LTD. SUNPOWER GROUP LTD. Investor Presentation 25 February 2021#2AGENDA 01 02 SUNPOWER Investment at a Glance Highlights 03 04 GI Performance Financial Highlights 05 Q&A Session#3Sunpower Group at a Glance • >20 Years of Proven Track Record: Established in 1997, listed on SGX since 2005. • Environmental Protection Solutions Specialist: clean power to reduce air pollution, energy-saving solutions, waste heat recovery ● Business segments: Green Investments (GI) and Manufacturing and Services (M&S). • • • Record results in FY2020 (exceeding CB performance target): In FY2020, group revenue reached record highs of RMB4.06 billion, PATMI (¹) of RMB377 million also hit record high with 2017-2020 CAGR +48%. Underlying operating cashflow (2) rose 17.4% YoY to RMB536 million. GI business contributions grew in importance to the Group: GI revenue rose 15.6% YoY to RMB1.34 billion and GI EBITDA rose 12.9% YoY to RMB489 million in FY2020. M&S business: M&S revenue rose 11.2% YoY to RMB2.72 billion in FY2020. Order book was at RMB2.9 billion as at end-January 2021. Powered by GI, Sunpower has grown into a company driven by long-term, high quality and recurring income and cashflows. (1) PATMI refers to the "Profit for the year attributable to equity holders” in the “WITHOUT financial effects of Convertible Bonds and Warrants" column of the P&L statement, which adjusts "Profit for the year attributable to equity holders" in the "WITH financial effects of Convertible Bonds and Warrants" column for amortised interest expenses, fair value adjustments and foreign exchange gains or losses associated with the Convertible Bonds and Warrants. (2) Underlying operating cash flow adjusting for CB interest of RMB22.7 million. 3#4Sunpower Group at a Glance Manufacturing & Services (M&S): Established Business with Stable Profits and Cashflow Manufacturing Main Solutions Services Main Solutions • Flare & Flare High Efficiency Heat Exchangers Pipeline Gas Recovery System High Salinity Wastewater System (ZLD) Energy Saving and Pressure Vessels Products • Petrochemical Engineering Thermal power engineering • Sunpower focuses on high-end market and has accumulated large base of reputable customers bp B D-BASF BAYER سابك sabic Dow CTCI Mobil CHEM HINA (H 东方希望 中国石油 中 国 It I 中国神华 EAST HOPE CHINA SHENHUA 中煤集团 3 盛虹集团 东华能源④ SHENGHONG GROUP Oriental Energy Industries Petrochemical Chemical • • Fine chemical • LNG • Coal Chemical • Coal • Renewable energy New Material Metallurgy • Smelting • Power Plant • Others Celanese g JOOC TOYO TOTAL ENGINEERING 中国中铁 恒力石化 HENGLI PETROCHEMICAL ALCOA 中国大唐集团公司 China Datang Corporation GCL ThyssenKrupp WANHUA 4#5Sunpower Group at a Glance Green Investment (GI): Value Creator and Growth Driver that generates long-term, high-quality and recurring income and cashflows GI is an asset-based business where the Group invests in and operates centralized facilities that supply industrial steam to a wide range of diverse industries, supported by structural demand; provides pollution-free civil heating to a large base of households; and electricity to the State Grid. Atsar Chemical Food Paper-making Pharmacy Leather Wood Processing Building materials Diverse Industries and Captive Customers Fertilizer Paint Industry Printing & Dyeing Rubber Plastic recycling Textile Fodder metallurgy 5#6AGENDA 01 02 SUNPOWER Investment at a Glance Highlights 03 04 GI Performance Financial Highlights 05 Q&A Session#7Investment Highlights GI, Our Value Creator and Growth Driver Well-positioned to Build Sizeable GI Portfolio GI Forms the Bulk of the Group's Value Stable and Growing Manufacturing & Services DCP and CDH as strategic institutional investors to support the Group 7#8GI - Our Value Creator and Growth Driver Enormous Business Opportunities in China's Anti-smog Sector • • • Government orders mandatory closure of small dirty boilers. Manufacturing plants in industrial parks across China to use highly efficient centralised steam boilers Factories are increasingly concentrated in industrial parks, which continue to expand in the long-term Exclusive supplier of steam to industrial customers within industrial parks with typically 30-year concession agreements and first right to renew such concessions Valuable & Realisable Assets in GI Projects • • • High net present value (NPV) of long-term & recurring cash flows, and attractive double-digit project IRR High-quality cashflows due to captive customers. Steam is a non-discretionary input for production by our industrial customers. Strong tariff collections Solid cashflow growth potential as steam demand growth driven by: (1) Immediate cross-over demand from mandatory closure of small boilers (2) Natural expansion of customers and industrial parks 8#9GI - Our Value Creator and Growth Driver Sunpower has unique competive edge and proven track record throughout GI business cycle New Project Identification & Securement Project Construction, Reform and Upgrade Project Investment Project Operation New Project Identification & Securement ✓ Proven track record, experienced business teams ✓ Discipline and robust system in place for the selection and evaluation of projects ✓ Robust pipeline with attractive projects being evaluated Project Investment ✓ GI permits/ concessions are highly sought-after assets with high entry barriers for new entrants ✓ Successfully established resilient and adaptable GI business model ✓ Strong strategic investor support by renowned private equity firms, DCP and CDH ✓ Multiple potential sources of funds to fund GI growth strategy Project Construction, Reform and Upgrade ✓ Application of innovative technologies for environmental protection, energy- saving & long-distance steam distribution Know-how to reform and upgrade acquired plants to improve operation efficiency ✓ Experienced in project planning, management and construction Project Operation ✓ Seasoned management and operational teams ✓ Proven track record in operating GI projects with excellent results achieved ✓ Adoption of Circular Economy Model to reduce operating costs and help industrial parks achieve ultra-low emissions#10GI- Our Value Creator and Growth Driver 15°C/Km 0.06-0.1 MPa/Km Innovative Technologies • • • • Long Distance Steam Distribution Pipelines Technology - Increase geographical reach to captive customers. Achieve economies of scale Reduce feedstock minimal temperature ~ lost in transmission Environmental Protection Technology - Low nitrogen combustion technology Desulphurization and denitrification technology Energy Saving Technology High efficiency heat exchange technology - Gas-gas heater technology Low temperature economizer technology Ability to Reform and Upgrade Acquired Plants to Improve Operational Efficiency <5°C/Km 0.015-0.05 MPa/Km 8 Km 30 Km Industry Sunpower Industry Sunpower Industry Sunpower Standard Sunpower's Capability New National New National Emission Standard New National Standard Limit for New for Coal- New National Standard for Coal- (mg/m3) Build Coal- fired Power for Natural fired Boilers (1) fired Power Boilers Plants in Key Areas (2) Gas Dust 50 30 20 5 <5 Sulphur 300 100 50 35 <35 Dioxide, SO2 Nitrogen 300 100 50 <50 Oxide, NOx 100 (1) Standard applies to coal-fired power-generating boilers with a unit capacity of 65 tons/hour (t/h) or below (2) Key Area refers to Beijing-Tianjin-Hebei region, Yangtze River Delta and Pearl River Delta of China Source: Emission Standard of Air Pollutants for Boilers enacted by Ministry of Environmental Protection of PRC 10#11GI - Our Value Creator and Growth Driver Residential Households Electricity STATE 国家生 CHINA CORPORATION Electricity Electricity Industrial Park Adoption of Innovative Circular Economy Model ("CEM") in GI Operations GI Projects Heating Heating Steam Sewage Treatment Plant Electricity Treated Water Sludge Sewage Fertiliser & Building Material Ammonium Nitrate & Ash Factories • • CEM is a closed-loop production model that cuts resource waste and pollution to a minimum through the re-using, repurposing and recycling of products and materials. It allows Sunpower to reduce cost while achieving ultra-low emissions for the industrial park where a GI plant is located. 11#12Well-positioned to Build Sizeable GI Portfolio In Operation & Trial Production Projects Changrun Project (Phase 1) Yongxing Plant Xinyuan Plant Suyuan Plant Lianshui Project Steam/Heat Designed Capacity 2×220 tons/hour (t/h) 2×100t/h+1×150t/h 3x75t/h+1×220t/h 1x90t/h+2×75t/h Electricity Designed Capacity 2X25MW 2X 18MW 2X6MW+1X25MW Project Equity (RMB'm) 434.1 306.0 85.0 1XB7MW 117.2 2×40 t/h n.a 38.3 1×40 t/h n.a 49.2 n.a n.a Under Construction Quanjiao Project Xintai Zhengda Plant (old facility) (1) Jining Project Shantou Project (Phase 1) Xintai Zhengda (new facility) (1) Shantou Project (Phase 2) Tongshan Project (Phase 1) n.a n.a n.a 10.3 3 × 150t/h 2X20MW 167.3 3 X 130t/h 1X35MW+1 X 18MW 287.1 2X260t/h 2X30MW 132.6 1 X 130t/h 1X35MW 126.0 Shanxi Xinjiang Project-phasel 1 X 130t/h 1XC15MW 131.2 Changrun Project- Connection to Sanli (2) n.a n.a 50.0 Amount invested/committed 1,934.3 In Design Phase Pipeline (2) 2 projects n.a n.a 116.4 n.a n.a 453.1 Total 2,503.8 Notes: (1) Existing plant still in operation and will remain operational until the commissioning of the new plant. Part of the new facility has started commercial operation, and the remaining part is under construction. (2) Acquired the exclusive right to supply steam to Sanli for 25 years, construction of the pipeline connection to Sanli is expected to complete in 2021. 12#13• • . GI Forms the Bulk of the Group Value(1) Sunpower has seen continued ramp-up of GI operations and is well prepared for the next phase. Successfully enhanced into a company driven by long-term, recurring, high-quality income and cashflows. Favourable position to expand by procuring new GI projects, embark on expansion of certain existing GI projects and to further cultivate earnings quality of existing GI projects. • Aim to deliver long-term NPV of future cashflows, substantially higher than current contributions. (2) Green Investments Environment Protection Manufacturing R&D (GI) & Services (M&S) (1) Based on invested capital (2) Based on the Company's long-term discounted cashflow forecasts OPERATIONAL UNDER CONSTRUCTION Changrun Project Shanxi Xinjiang Project Xintai Project (¹) Jining Project Xinyuan Plant Lianshui Project Tongshan Project Quanjiao Project Yongxing Plant Suyuan Plant Headquarters of Sunpower Group Shantou Project-phase 2 Shantou Project-phase 1 (2) Notes: (1) Existing plant still in operation and will remain operational until the commissioning of the new plant. Part of Xintai Zhengda's new plant is in operation. (2) Phase 1 of Shantou Project is in operation. 13#14Stable and Growing Manufacturing & Services Order book (1) was RMB2.9 billion as at end- January 2021 Strong Order Book 2.8 2.8 2.8 2.9 (1) 2.5 ☐ > 20 years of proven track record ✓ Stable and growing revenue ✓ Positive operating cash flows Reliable business ✓ Large and diversified base of customers ✓ Strong capabilities to serve diverse industries ✓ ~70% repeat customers ✓ Market reputation and brand awareness Advanced technologies Enhanced competitive advantages such as extensive experience and seasoned management team AS OF JAN AS OF APR 2020 2020 AS OF JUL 2020 AS OF SEP AS OF JAN 2020 2021 Proven capabilities to acquire orders (1) Excluding contracts delivered in FY2020. 14#15DCP and CDH are strategic institutional investors ◉ Among the largest and most experienced Chinese private equity (PE) investors. ■ Invested US$130 million in Sunpower through issued convertible bonds to-date. Provide institutional support for Sunpower's long-term growth. ◉ Strong track record of investing and nurturing many leading companies in China. DCP and CDH Team's Selected Investment Portfolio BELLE Belle International (百丽鞋业) China's Leading Women Shoes Retailer 蒙牛 Mengniu Dairy (蒙牛乳业) China's Leading Dairy Company NARFU® Nanfu Battery (南孚电池) Haier Qingdao Haier (青岛海尔) China's Leading Alkaline Battery Producer Global Leader in Home Appliances 恒安集团 FENGAN Hengan International (恒安集团) China's Largest Napkin and Diaper Producer 中国平安 PING AN OF CHINA Ping An Insurance (平安保险) China's Leading Insurance Provider FARMING FE GROUP CO Modern Dairy (现代牧业) China's Leading Dairy Company HEN WH GROUP WH Group (万州国际) Global Leader in Meat Processing ●绿地集团 GREENLAND GROUP Greenland Group (绿地集团) China's Leading Real Estate Midea Midea Group (美的集团) Global Leader in Home Appliances CICC 中金公司 CICC (中国国际金融有限 公司) China's Leading Investment Bank Focus 分众 Media Focus Media (分众传媒) China's Largest Out-of- home Advertising Network 中粮 COFCO COFCO Meat (中粮肉食) China's Leading Meating Processing Company 优信拍° Uxin (优信拍) China's Leading Online Used-car Platform Conglomerate Source: DCP and CDH, as of Mar 2018. Please note that all risk disclosure, disclaimers and other similar content in the Private Placement Memorandum, dated February 22, 2018, and the Preliminary Information Document, dated August 10, 2017, of DCP Capital Partners, L.P. apply to the information above. 15#16AGENDA 么中理集團 =========== ======= ======= === === == \======= 11 01 02 Investment at a Glance Highlights SUNPOWER 03 04 GI Performance Financial Highlights 05 Q&A Session 16#17Rapid Expansion of GI Business Exceeded Expectations GI's leap forward has only taken 3 years after the issuance of 2 rounds of CBs from 0 to 9 projects in operation. With double-digit IRR, all GI projects in operation are in line with or even beating the Company's targets. Sunpower is on track to materialize the enormous growth potential of the GI strategy. 0 Projects in Operation 1st mover in the industry March 2017 9 Projects in Operation 7101 Sizeable GI portfolio that delivers long-term, recurring and high-quality income and cashflows By 2020 By 2021 17#18GI Performance Remains Resilient Despite Pandemic Revenue (RMB mil) 18-20' CAGR 35% 737 1335 1155 18-20' CAGR 26% 504 379 318 FY2018 FY2019 FY2020 4Q2018 4Q2019 4Q2020 18-20' CAGR 33% 276 EBITDA (RMB mil) 489 433 18-20' CAGR 24% 166 185 121 Despite of pandemic, GI continued to grow its contributions to the Group and provide long-term, recurring, high-quality income. Although the pandemic initially caused the reduction of operating hours in the early of 2020, the Company managed to achieve YoY growth due to its strong capabilities to rapidly resume and maintain normal operations after the pandemic came under control. GI projects are still ramping up, the long-term Net Present Value ("NPV") of future cashflows generated by the GI business is expected to be substantially higher than the latest reported period.* The recurring organic cashflow of GI will be a funding source for future GI expansion in the long term. * Based on the company's long-term discounted cashflow forecasts FY2018 FY2019 FY2020 4Q2018 4Q2019 4Q2020 18#19Strong Pipeline and Significant Investment in GI Rapid scale-up: . • Acquired 4 "brownfield” projects and built up 5 “greenfield" projects. 9 projects in operation. Shantou Project phase 1 has started commercial operation and expected to ramp up rapidly. Xintai Zhengda Project, where part of the new facility is in operation, while construction of the remaining part is expected to be completed by the end of 2021. On track to build a sizeable GI portfolio: • • RMB726.9 million has been committed/invested in the equity of projects under construction. Construction of Shantou Phase 2 is expected to complete by end of 2021. Tongshan Project has started construction and is expected to complete in 2021. Shanxi Xinjiang Project has started construction and is expected to complete by early 2022. To date, RMB1.93 billion in equity has been invested/committed. Update on GI Investments to-date Status Total Investments (RMB mm) (2) Project Equity (RMB mm) In Operation 3,296.0 1,207.4 Under Construction (1) 2,363.0 726.9 Amount Invested and 5,659.0 1,934.3 Committed Notes: based on current estimates or forecast (1) Including Tongshan Project Phase 1 and Shanxi Xinjiang Phase 1, which assumes capital structure ~30% equity / 70% debt. Part of new facility of Xintai Zhengda project has started commercial operation, and the remaining part is under construction. (2) Assuming ~40% equity/60% debt. Tangible progress on pipeline: • A couple of projects in late stages of evaluation. Robust pipeline of projects in different stages of evaluation with total equity value >RMB3.5 billion. 19#20Strategy to Grow Earnings with Quality Remains on Track O >50% of income is recurring *Based on the Company's long-term discounted cashflow forecasts Sunpower has met its target of ~50% of income from the recurring GI business for 3 consecutive years. On track to build a sizeable and valuable GI portfolio. Sunpower's reliable GI business model and strong execution capabilities have been proven through the excellent performance in 2020 amidst challenges such as the operational constraints of the pandemic. GI projects are still ramping up, with the long-term Net Present Value ("NPV") of future cashflows generated by GI expected to be substantially higher than the contributions in the latest reported period.* ■GI has significantly enhanced the Group's quality of earnings and cashflow. The recurring organic cashflow will also be a funding source for further GI expansion in the future. With the solid track record established in the GI business, Sunpower has grown into a long-term, recurring, high-quality income and cashflow company. 20 20#21Yongxing Project 杨舍镇经济开发区 张家港永兴热电有限公司 用热用户分布图 Transaction done at attractive valuation multiple Total investment of RMB765 million, secured by RMB306 million in project equity. About Yongxing Plant Sizeable capacity: 350t/h (steam)+36MW (electricity), ~160 km total length of pipeline. Customer mix: captive customers concentrated in diverse, cashflow-rich industries, such as textile, printing & dyeing, food, chemical, metallurgy, paper making and others. Product mix: steam & electricity Plant Highlights Strong fundamentals Latest status: Post-acquisition upgrades completed. Strong improvements seen in operational efficiency and financial results. Sustainable business model: ✓ Exclusive centralized steam supplier. ✓ Cost effective: River water used to generate steam. Zero waste. Ultra-low emissions: lower than natural gas. Long-term growth potential supported by organic growth of large customer base. Geographic Distribution of Yongxing's Customers High IRR: double-digit investment returns. 永恒线 永张线 水塘线 原恒东管道 21#22Changrun Project hear 韩保 Gaoyang City 它 保定市, 二村 邢果庄村 津石高速 津石高速 G0211 后柳滩村 高速 津石高速 西龙化村 庞庄村 ·齐王庄 G0211 野王村 G1812 <高阳县 庄镇 隆合庄村 孟庄村 津石高油 邢家南龍 Changrun Project BEMALEN 王福村 -延福屯村 贺家庄村 万安镇 北郭丹销 苏果庄村 S 刘铭庄村 高義路 南宗村 大百尺销 北白機村 握纽庄村 周家营村 南沙口村 西子口村 保沧路 大广高速 沧榆高速 G1812 高佐村 庞佐乡 湘村 大团 北窝头村 西柳村 Investment: Total investment of RMB934 million, secured by RMB434 million in project equity. About Changrun Project - Phase 1: Location: Gaoyang, Hebei (supplies 1/3 of household textiles in the whole of China). Capacity: 2×220t/h (steam) +2×25MW (electricity). Pipeline network: ~50 km in length. Customer mix: >70 captive customers. Recently acquired the exclusive right to supply steam to Sanli for 25 years. Project Highlights Solid business fundamentals: ✓ Added sales of electricity to complement steam from 2018. ✓ Sludge incineration project passed "Project Environmental Completion Acceptance" assessment and went into operation smoothly in 2020 Sustainable business model: ✓ Exclusive centralized steam supplier: 30-year concession + first right to renew. ✓ "Zero waste” circular economy model: Treated waste water is used to generate steam, while plant waste outputs are sold to external factories. ✓ Ultra-low emissions. High IRR: double-digit investment returns. 22#23Shantou Project- Phase 1 already in Operation and expected ramp up rapidly Equity Investments Phase 1 Shantou Project-Phase 1 RMB 167 million Phase 2 is under construction, and is expected to be completed in 2021 Phase 2 RMB 133 million Capacity Designed steam capacity (t/h) Annualized steam supply capacity (GJ) Phase 1 3×150 (=450) 5.7 million (1) Phase 1+ Phase 2 3×150+2×260 (=970) 19.0 million (2) Notes: (1) With 2 boilers operational and 1 boiler as backup capacity to ensure constant steam supply to customers; (2) With 4 boilers operational and 1 boiler as backup capacity to ensure constant steam supply to customers Location: Shantou Textile Circular Economy Industrial Park managed by Chaonan Textile, Printing and Dyeing Comprehensive Environmental Treatment Center Project Highlights Strong fundamentals: Exclusive steam supplier with 38.5 years concession. Ready-made, resilient customer base:~128 qualified printing & dyeing companies relocating into the park in phases. ■ Large potential: Textile and garment dyeing industry is a pillar industry in Shantou which contributed -30% of the local GDP in 2017. Shantou is a major national producer of garments and has an established industry cluster. Anticipated strong contributions of long-term, recurring and high-quality income and cashflows, with attractive double-digit IRR. Urgent need to deal with river pollution: Shantou Project is one of the key water pollution control and alleviation measures put in place to clean up heavily-polluted Lianjiang River. 23#24Xinyuan Project S62 Jimo District G18 G1813 2 青岛新酒执由有限公司 G1813 Xinyuan Project 即墨区 |62011 高小管岛 菠萝岛 Investment: Total investment of ~RMB250 million, secured by RMB85 million in project equity. About Xinyuan Project: Location: Jimo, Qingdao, Shandong province. Capacity Steam capacity (t/h) Electricity capacity (MW) Xinyuan Project 3×75+220 (=445) 2X6+25 (=37) Customer mix: captive customers concentrated in energy, printing and dyeing, clothing industries etc. Investment Highlights: Steady growth in the business of steam supply due to solid customer base in the local area, and its current manufacturing capacities have yielded stable sales of electricity. Development potential of Jimo district is expected to boost growth in the business of Xinyuan Project. Further expanded clean heat supply coverage area in Jimo district with the signing of a concession agreement to supply a 2 million m² area in Jimo International Trade Park. Professional and experienced team that ensures continued smooth operation. 24#25Suyuan Project Changshu City 923 $19 顾山镇 羊尖镇 $19 G4221 6204 0348 Suyuan Project G524 梅李镇 尚湖镇 常熟市 古里镇 517 3204 G1522 沙家浜镇 " G4221 G524 015 支塘镇 G228 璜泾镇 G15 Investment: Total investment of ~RMB293 million, secured by RMB117 million in project equity. About Suyuan Project: Location: Changshu, Suzhou, Jiangsu province. The textile industry has been a mainstay of Changshu's economy for the last 40 years with annual turnover of >RMB100 billion. Capacity: 1×90 (t/h) +2×75t/h (steam) + 1XB7MW (electricity). Customer mix: ~49 captive customers in printing & dyeing industries. Downstream customers are recovering from the pandemic. Investment Highlights: Major upgrades: Operational performance and efficiency are expected to further improve with completion of plant upgrades. Promising addition to the GI portfolio, with a positive and growing impact on medium to long term profitability. Projected to have attractive IRR. Exclusive centralized steam supplier within its coverage area. Steam and electricity businesses have grown steadily in past 4 years. Post-acquisition demand for its steam is expected to grow due to the mandatory closure of small "dirty" boilers and relocation of companies into the coverage area. Established industry cluster in Changshu provides Suyuan Plant with a resilient and attractive customer base. 3204 $48 25#26Tongshan Project Tongshan District Estimated investment of ~RMB420 million for Phase 1, secured by investment of RMB126 million in project equity. Capacity Designed steam capacity (t/h) Designed electricity capacity (MW) Phase 1 Total 1X130 2X130 (=260) 1X35 2X35 (=70) Construction of Phase 1 is expected to be completed in 2021 Location: Xuzhou, Jiangsu province, ranked 28th among China's "Top 100 Districts" for investment potential in 2018 Project Highlights A biomass cogeneration project to supply clean heating to local residents as well as electricity to the State Grid, which differentiates it from a pure biomass power plant. Used as a natural gas replacement, biomass as a fuel source to supply steam/heating will help the local government to address people's livehood issues and alleviate the cost of heating subsidies. It will also reduce pollution and realise energy conservation through the combustion of local agricultural waste. As such, this investment is fully aligned with China's national development policies and is expected to gain more support from the local government. Grant of 30-year concession right by the local government, effectively delivering the Group a captive market for heat within a radius of 20 kilometers of the project. Ready base of resilient customers in the concession area can be expected to ensure immediate customer subscriptions, providing immediate revenue flows for the Project once commissioned. Abundant local biomass resources can meet the biomass demand of the project. 26#27Shanxi Xinjiang Project Estimated investment of RMB328 million for Phase 1, secured by investment of RMB131.2 million in project equity. Construction is expected to complete in the early of 2022. Capacity 新傳经济木开发区 Designed steam capacity (t/h) Designed electricity capacity (MW) 山西新绛经济技术开发区 Yuncheng City, 西贾乡 泽掌镇 G108 高湿镇 $80 S75 西社镇 泉掌镇 G5 一稷山县 G327 G327 1 新绛县 侯马市 G108 Shanxi Xinjiang Project 万安镇 清河镇 太阳乡 阳王镇 G3511 礼元镇 郝庄乡 G108 G327 Phase 1 Total 1 X 130 3X130 (=390) 1X C15 1XC15+1XC25 (=40) Location: Xinjiang Circular Economy Demonstration Park, Yuncheng City, Shanxi Province Project Highlights Xinjiang Circular Economy Demonstration Park is a provincial-level industrial park with an established complete upstream and downstream value chain. Existing concentration of high-end customers provides ready pool of demand from industries such as high-end equipment manufacturing, new materials, fine chemicals and dyes. Operating under the concept of circular economy, the park already has centralized utilities infrastructure in place, such as a water treatment facility. Shanxi Province is the largest source of natural fuel resources in China, which will enable Shanxi Xinjiang Project to have access to fuel supply in close proximity. 27#28AGENDA T 85.87% 999 4858 01 SUNPOWER at a Glance 02 Investment Highlights 03 04 GI Financial Performance Highlights 05 Q&A Session#29Stepped Up The Pace Despite the Pandemic • • Outperformed in 2020 with record revenue and PATMI (1) Proven valuable company with reliable and adaptable business model and strong capabilities to execute and deliver Revenue (RMB mil) 18-20' CAGR 12% 4,059 3,605 3,263 18-20' CAGR 5% Gross Profit (RMB mil) 18-20' CAGR 19% 981 889 18-20' CAGR 5% 348 286 317 694 1,280 1,356 1,401 FY2018 FY2019 FY2020 4Q2018 4Q2019 4Q2020 FY2018 FY2019 FY2020 4Q2018 4Q2019 4Q2020 PATMI (RMB mil) EBITDA (RMB mil) 18-20' CAGR 22% 377 352 18-20' CAGR 27% 798 707 18-20' CAGR 4% 254 496 FY2018 FY2019 FY2020 162 139 98 4Q2018 4Q2019 4Q2020 FY2018 FY2019 273 226 243 FY2020 4Q2018 4Q2019 4Q2020 (1) PATMI refers to the "Profit for the year attributable to equity holders" in the "WITHOUT financial effects of Convertible Bonds and Warrants" column of the P&L statement, which adjusts "Profit for the year attributable to equity holders" in the "WITH financial effects of Convertible Bonds and Warrants" column for amortised interest expenses, fair value adjustments and foreign exchange gains or losses associated with the Convertible Bonds and Warrants. 29#30China's GDP Grew 2.3% in 2020 with Robust Economic Recovery China is the only major economy to grow in 2020 Quarterly year-on-year GDP 10% 5% 0% -5% GDP in 2020 grew 2.3% YoY to RMB101.6 trillion, topping RMB100 trillion for the first time despite the pandemic(1) 3Q +4.9% 4Q +6.5% • China was the only major economy to grow in 2020 • 2Q +3.2% National economy recovered steadily with accomplishment of main goals better than expected • Notable results in stabilizing employment and ensuring people's basic needs GDP in 4Q 2020 grew 6.5% YoY(1) • • 2021 Industrial production grew 2.8% YoY in 2020, and 7.1% YoY in 4Q 2020 Retail sales grew by 4.6% YoY in 4Q 2020, signalling dramatic rebound 1Q -6.8% -10% 2019 2020 China's Economic Forecast Economic Forecasts of China's GDP Growth S&P Global Ratings (2) Asian Development Bank(3) Fitch Ratings(4) Nomura (4) Natixis(4) World Bank(5) 2021(F) 7.0% 7.7% 8.0% 9.0% 7.8% 7.9% Source: (1) National Bureau of Statistics of China (2) https://www.spglobal.com/ratings/en/research/articles/201202-emerging-markets-risks-to-outlook-balanced-as-recovery-momentum-set-to-pick-up-in-2021-11761662#:~:text=We%20expect%20China's%20econom y%20to, and%20exports%20to%20private%20consumption. (3) https://www.adb.org/sites/default/files/publication/658721/ado-supplement-december-2020.pdf (4) https://www.cnbc.com/2020/12/10/fitch-upgrades-its-china-growth-forecast-for-2021.html (5) https:/ /www.worldbank.org/en/publication/global-economic-prospects 30#31FY2021 Outlook Barring unforeseen circumstances, the Group expects the following business trends to benefit its business in 2021. Please note that Sunpower's financial results should be viewed on a 12-month basis to arrive at a balanced perspective. GI Business: Anticipated additional contributions from new plants, namely: a) Shantou Project, where Phase 1 is in commercial operation and expected to ramp up rapidly. Phase 2 construction is expected to be completed in 2021. b) Xintai Zhengda Project, where part of the new facility is in commercial operation, while construction of the remaining part is expected to be completed in 2021 c) Tongshan Project, where construction of Phase 1 is expected to be completed in 2021 Continued ramp-up of existing GI projects, mainly driven by: a) Continuous connection of new customers, following mandatory closures of small dirty boilers, mandatory location and/or relocation of new factories into industrial parks, and/or organic growth of customers and industrial parks served by the Group's GI plants; b) Anticipated increase in demand for steam when Xinyuan Plant starts to supply clean heating to its new 2 million m² concession area in Jimo International Trade Park; c) Changrun Project starts to supply Sanli under its 25-year exclusive supply contract once the construction of pipeline network is complete in 2021 M&S Business: • Order book of RMB2.9 billion as at end-January 2021 31#32Appendices#33Financial Effects of Convertible Bonds (CBs) and Warrants CBs were issued on 3 March 2017 and 15 October 2018 with the debt host liability component and the derivative liability component carried at amortised cost and fair value respectively. The changes in the fair value of the derivative liabilities of the CB and Warrants are recognized in profit or loss. In accordance with SFRS(I), the financial effects on profit or loss associated with the issuance of compound financial instruments are as follows: (i) fair value change arising from fair valuation relating to the conversion option and Warrants and (ii) amortised interest charge relating to the amortised cost liability component of the CB and commitment fee of Warrants. The fair value change is an accounting treatment arising from the compliance with the accounting standards and has no cash flow effect and no financial impact on the performance targets in relation to the CB as stipulated in the CB Agreement. The fair value change of the CB and Warrants and the related financial effects to the statement of profit or loss and other statements have no operational effects to the financial performance of the Group. Financial effects of CB and Warrants consist of unrealised foreign exchange translation, amortised interest expenses (inclusive of interest charges) and fair value gain/ (loss) of CB and Warrants. Warrants are classified as derivative liabilities. At the date of issue, the fair value of derivative liabilities are estimated using the Binomial model. The amount is recorded as a liability at fair value, and is subsequently remeasured at the end of each financial period with changes in fair value recognised in profit or loss. In order to reflect the true operating performance of the Group, Sunpower uses "Profit for the year attributable to equity holders of the Company" in the "WITHOUT financial effects of Convertible Bonds and Warrants" column of the P&L Statement, which is after adjusting net profit attributable to shareholders (WITH the effects of CBs and Warrants) for amortised interest expenses and fair value gains or losses as well as foreign exchange gains or losses associated with the CBs and Warrants. 33#34Income Statement Summary* Revenue (RMB million) Gross Profit (RMB million) EBITDA (RMB million) PATMI (RMB million) EPS (RMB cents) FY2020 FY2019 Change (%) 4,058.8 3,604.6 12.6 981.5 888.6 10.5 798.2 706.6 13.0 377.0 352.2 7.0 47.8(2) 45.2(3) 5.7 *Without financial effects of Convertible Bonds and Warrants (1) PATMI refers to the "Profit for the year attributable to equity holders" in the "WITHOUT financial effects of Convertible Bonds and Warrants" column of the P&L statement, which adjusts "Profit for the year attributable to equity holders" in the "WITH financial effects of Convertible Bonds and Warrants" column for amortised interest expenses, fair value adjustments and foreign exchange gains or losses associated with the Convertible Bonds and Warrants. (2) Based on the weighted average number of ordinary issued share capital (excluding treasury shares) of 789,306,142 ordinary shares. (3) Based on the weighted average number of ordinary issued share capital (excluding treasury shares) of 779,268,037 ordinary shares. 34#35Balance Sheet Summary* (RMB million) Cash and cash equivalents & pledged bank deposits Trade Receivables As of 31 December 2020 743.3 As of 31 December 2019 797.5 1,452.3 1,352.2 Inventories Total Current Assets Non-Current Assets Short-term Borrowings 541.0 545.0 3,363.4 3,234.4 4,921.7 4,385.8 766.4 1,009.6 Current Liabilities 2,950.3 3,191.8 Long-term Borrowings 1,783.1 1,272.2 Convertible bonds liability 794.3 817.0 Equity attributable to equity holders of the Company 2,221.8 1,851.3 Total equity 2,535.1 2,117.9 *Without financial effects of Convertible Bonds and Warrants 35 55#36Cash Flow Summary* (RMB million) Net cash generated from operating activities Underlying operating cash flow Interest expense Net cash (used in) investing activities Net cash from (used in) financing activities (1) Underlying operating cash flow adjusting for CB interest of RMB22.7 million (2) Underlying operating cash flow adjusting for CB interest of RMB19.7 million *Without financial effects of Convertible Bonds and Warrants As of 31 December 2020 513.2 535.9(1) 108.6 (781.1) 112.1 As of 31 December 2019 436.6 456.3(2) 109.9 (1,243.9) 812.4 36#37Government's Consistent Policies on Anti-Pollution Year 2020 2019 2018 2017 Policy Comprehensive Action Plan to Control Air Pollution in Beijing-Tianjin-Hebei and Surrounding Areas, and Fenwei Plain During Autumn and Winter of 2020-21 Comprehensive Action Plan to Control Air Pollution in Yangze River Delta Region During Autumn and Winter of 2020-2021 Comprehensive Action Plan to Control Air Pollution in Beijing-Tianjin-Hebei and Surrounding Areas During Autumn and Winter of 2019-2020 Comprehensive Action Plan to Control Air Pollution in Yangze River Delta Region During Autumn and Winter of 2019-2020 Three-year Action Plan for Winning the Blue Sky War China's 13th Five-Year Plan for National Eco-environmental Conservation Guidance to Boost the Development of Biomass Heating Heat-power Cogeneration Measures 2016 2015 2014 2013 Environmental Protection Tax Law Clean and Efficient Use of Coal Action Plan (2015-2020) Full Implementation of Work Plan for Ultra-low Emission and Energy Conservation of Coal-fired Power Plants Circular on Issurance of Implementation Plan for the Comprehensive Improvement in Energy Conservation and Environmental Protection by Coal-fired Boilers Air Pollution Prevention Action Plan#38AGENDA 01 02 SUNPOWER at a Glance Investment Highlights 03 04 GI Performance Financial Highlights 05 Q&A Session#39Disclaimer This presentation is not financial product advice and prepared for informational purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation and the information contained herein does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Sunpower Group Ltd. ("Sunpower" or the "Company" and together with the subsidiaries, the "Group") in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The information herein has been prepared by the Company solely for use in this presentation. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. To the maximum extent permitted by law, none of the Company, the Group or any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation includes forward-looking statements and financial information provided with respect to the anticipated future performance of the deal and involve assumptions risks and uncertainties based on the Company's view of future events. Accordingly, there can be no assurance that such projections and forward-looking statements can be realized. The actual results may vary from the anticipated results and such variations may be material. No representations or warranties are made as to the accuracy or reasonableness of such assumptions of the forward-looking statements and financial information based thereon. The Company undertakes no obligation to update forward-looking statements and financial information to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. The past performance of the Company and the Group is not necessarily indicative of the future performance of the Company or the Group. Neither this presentation nor any of its content may be distributed, reproduced, or used for any purpose without the prior written consent of Sunpower. By accessing to this presentation, you agree not to remove or revise this document, or any materials provided in connection herewith. You agree further not to photograph or publish these materials, in whole or in part, in any form or pass on these materials to any other person for any purpose. 39