To potential

investors

Business plan
Initial investment assigning
request for project
realization
 Project name

Shallow ground geothermal energy

exploitation by utilizing single well
system (SWS) for collecting, and heat
pumps for energy promoting

FOR MORE INFORMATIONS ABOUT TECHNOLOGY ITSELF ...

Visit site www. hyy.com.cn by ‘’HYY ‘’Company from China, which is owner of unique world’s patent right 441164 PCT for single well system (SWS)
(SWS)
 Investment data

1. Business plan name Shallow ground geothermal energy exploitation by utilizing single
well system (SWS) for collecting, and heat pumps for energy
promoting
2 Firm location Kragujevac, SERBIA

3. Forward term plan Investment means activating 01.01.2008.

Object renting 05.01. 2008.
Equipment purchase and assembling 10.01.2008.
Activeness starting 10.01.2008.

4. Company owner Investor or as agreed

5. Project lasting 5 years

6. programme values January 2008. - December 2012.
Currency in programme - EURO
7. Investment period 2008. - 2012.

8. Investment preliminary 125.000 EURO

estimate
9. Finances source Investor with 125.000 EURO
10. Person for contact Gordana Jakovljević , tel: 034 348 825; 063 16 76 989
 ”HYY“- China as a strategic partner
 Our choice of geothermal energy utilizing programme – Single Well System
(SWS) - should be officiated and regulated by signing Confidentiality Deed,
Heads of Agreement and, finally, Project Installation Contract with the HYY
Chinese Company, Beijing which is unique world patent right owner 441164
PCT, with which we have an active business relations since the April 2007. By
Contract signing we’ll be recognized as a strategic HYY partners for Serbia and
Europe. In this process we expect very strong backup from Chinese Embassy in
Belgrade, and Serbian Embassy in China.
 In next phases of Serbia geothermal potentials exploitation programme, we
expect qualitative backup from resource ministries and Republic of Serbia
Agencies, due to HYY and Chinese Embassy have shown a desire this
programme to be serious and important institutional and economical China and
Serbia linkage.
 Before signing Contract HYY delegation will visit our new form firm, to make
sure we posses all the elements in skills and productivity, in marketing and
institutionallity, all unnecessary for assigning patent and technology using rights.
 That occasion we’ll organize technology possibilities presentation for potential
geothermal energy end users. With the most of potential users we’ll have signed
Intentions Letters for implementing shallow ground geothermal energy
installations for heating, cooling and hot water obtaining.
 Upon satisfaction of the conditions, within six months, anticipated by the Heads
of Agreement, we will sign Project Installation Contract with HYY, according to
which we get all legal rights for exclusive representing of their SWS.
 Market needs analizing
Market energetic needs have changed drasticallly in last decade, especially in last couple of years, from
FOUR basic reasons :

 NEED FOR HUGE ENERGY QUANTITIES - Traditional fossil fuels resources have already
exhausted, but needs have increased, due to world population growth. Exploited by centuries, even
today they are the most widespread, unfortunately. The assumption is, latest for 60 years, they will be
completely exhausted. Ground energy is practicaly inexhaustible!

 NEED FOR CHEAP ENERGY SOURCES - Traditional fossil fuels costs increase uncontrollable,
because there are less and less of them and become more and more inaccessible. Those resorces owners
monopoly is bigger and bigger. Ground energy requires 1kW of imputed electric energy, for drawing
3kW of geothermal energy more from itself. Therefore, for 1kW of imputed and paid energy, you get
4kW of available ones!

 NEED FOR ECOLOGICALY PURE ENERGIES - Glass garden effect, arises due uncontrolled air
pollutant leaving out into the atmosphere, brings to planet global heating. Situation has already
became alarming. Market seeks for new energy sources which do not damage. SWS does not pollute. It
even possesses technology solutions for wasted and sewage water energy utilizing for objects needs.!

 NEED FOR SECURE HEATING SYSTEMS- With no danger of fire or explosion, SWS performs with
no combustion processes, no exhausted gasses, no possible explosions.

SWS IS BASED UPON UTILIZING UNEXHAUSTABLE, RENEWABLE, AVAILABLE,

QUALITATIVE, CHEEP, RELIABLE, SECURE AND ECOLOGY PURE ENERGY, WHICH IS
EVERYWHERE BENEATH US - SO, THER’S NO NEED FOR TRANSPORTING, STORAGING...
THAT IS SHALLOW GROUND (SOIL) ENERGY.
FOR MORE INFORMATION *...
See material ’’Information about project...’’
 Market concurrence analyses
 Competitors – There are certain areas in Europe where geothermal energy is in use.
Somewhere traditionally (wind, water flow, solar, bio mass and similar energy using ). But,
considering to possibilities, new technology appliances all kind of geothermal energy utilizing
are in a beginning.
- In relation to other forms of natural and renewable energies exploitations ( such are wind
energy – windmills, water flows energy – small hydro power plants, or solar energy – solar
panels ), shallow ground geothermal energy has universal purpose and it is undependable of
seasons, meteorology conditions, and other fallowing nature influences.
Considering shallow ground energy, it exploits in some European states by utilizing BHE
(bore hole heat exchanger system - horizontal, vertical or coil ) and multi well system. But
world protected SWS patent 441164 PCT of ’’HYY “ hasn’t paved its way to Europe, and we
are going to be SWS technology pioneers in Serbia and Europe.
- Related to multi well system and other energy types, SWS has a plenty advantages *.
 Strengths – programme actuality and human resources - started at 24. 04. 2007. we spent five
very usefull days, when the most powerful HYY Company representatives, from Beijing,
China, Mr. Sun Ji, and Mr. Eric Yu visited us. In straightforward contact we altogether
consulted all technology possibilities reflecting, they explicated to us each of our doubts, and
explained all details, technological ones and those related to our potential mutual future
cooperation. We have kept contacts to them in last period of eight months, wishing to realize
our strategic partnership.
 Possibilities – huge potential in geothermal energy exploitation in SERBIA.
 Weaknesses – uninformative about subversive global planet heating damages and rescues in
new technology utilizing; lean Serbian payability; non existance of Law regulationes for
renewable energy utilizing.
 Denuncinations - not observed.
FOR MORE INFORMATIONS
INFORMATIONS ABOUT COMPARING TO OTHER ENERGY FORMS
FORMS ...
See material ’’Information about project...’’
 Project goals
A ) Implementing SWS technology goals:
 Ecosystem protection* - such programme has absolute priority and approach to all benefits and founds
anticipated by European Commission according to Kyoto protocol;
 Energy resources state-owners domination decreasing* (coal petroleum, natural ground gas) at world
economy stage;
 Security and simplicity * in complete system functionality;
 Huge savings * related to existing conventional models;
 Employing a great number of workers, different profiles, or unemployment rate decreasing;
 More knowledge acquiring in specific technology domain, by screening and analyzing;
 Institutional and economical Serbia and China contacts fortifying.
B ) Contacts to resource Ministries goals:
 Bringing up Law regulations in field of using renewable and ecologically pure energies;
 Obtaining more convenient tariff systems for electricity consumption due using this or other renewable and
pure energy forms;
 New standards adoption in technology and ecology.
C ) Media presentation goals:
 Influence to wide auditorium awareness* about planet global heating damages, ways for its decreasing and
importance of individual participation;
 Spreading knowledge about renewable, ecologically pure energies and technologies for their
utilizing*, for informing all society structures, potential end users and investors.

FOR MORE INFO *...

See material ’’Information about project...’’
 Project realization phases
This
This is
is timing
timing phases
phases chart
chart in
in complete
complete project
project realization
realization programme,
programme, first
first business
business year
year..
It
It is
is necessary
necessary to to accent
accent we
we have
have determined,
determined, byby project,
project, to
to make
make demonstrative
demonstrative installation
installation in
in second
second
phase
phase of first business year, where interested and potential investors, users and other individuals could
of first business year, where interested and potential investors, users and other individuals could
cognize
cognize with SWS functioning itself. This is a BRAND NEW TECHNOLOGY ON THESE REGIONSS,,
with SWS functioning itself. This is a BRAND NEW TECHNOLOGY ON THE S E REGION
and
and itit would
would be be unprofessionally
unprofessionally from
from usus not
not to
to let
let them
them real
real insight
insight into
into the
the functions
functions of
of something
something forfor
what they are ready to dispatch financial goods and to determine themselves to implement
what they are ready to dispatch financial goods and to determine themselves to implement it in their it in their
own
own spaces.
spaces.

Phase 1 - Preparings - 3 mon

Phase 2 - Object installation realization - 6 months.

Phase 3 - Analyses and

preparings - 3 months

2008. year

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

FOR MORE INFORMATIONS...

See next slides
 PROJECT REALIZATION PLAN AND PROGRAMME
’’S
’’SHALLOW GROUND GEOTHERMAL ENERGY UTILIZING’’ IN 9 STEPS
TEPS

1. Providing means for new firm registration, authorized for utilizing, contracting and installing SWS system in Serbia
and Europe, registered for activeness in projecting and detailed geothermal energy exploitation documents creating
for heating, cooling and hot water supplying of all kind of objects.
2. Object renting which will have an administrative rooms as well as projecting bureau supplied with all needed
electronic and other added technical devices. Inside of particular object it is predicted space for installing equipment
storage as well as all spare parts complete assortment with documentation administrating.
3. Providing means for realization of all necessary business-technical cooperation contracts, prior to Chinese strategic
partner ’’HYY’’ Company, which is protected SWS system patent right owner, as with appropriate Serbian
institutions (Geological Institute of Serbia, Mining-geological faculty in Belgrade, Engineers Chamber of Serbia,
Serbia Geothermal Association and others), and with individuals such are distinguished professionals in this area,
already employed in other facilities and institutions in state and in abroad.
4. Accomplishing cooperation with appropriate institutions for getting accordance and permissions for geothermal
water using according to suggestion of Project ’’Municipal services modernization’’.
5. Contacts to resource Ministries and imposing Governmental agencies into programme, for gaining strong support for
new programmee realization and for all benefits yielding, consider to savings and total ecological effects.
6. Professional team consolation, which will consist of enginners and technical staff, economists, translators, as well
persons for defining all commercial and financial parameters due contracts signing.
7. Providing means for periodical engaging firms registered for people and equipment transport during realization
phases, and transporting during maintenance and services within guarantee and after guarantee periods.
8. Participating at constructing and technic fairs, for presenting a new technology there, and other media presenting in
purpose to inform wider community and popularize new technology.
9. Constant attending to technical literature and other publications from this area, published by eminent world
institutions, meaning prepaid, as well visiting and overlooking to finished systems or those ones which
implementation is still current.
                   
***This
***This plan and programme comes under compensation and superstructure depending of market needs.
 PROJECT SINGLE PHASE MILESTONES

  Phase 1 - project preparation comprehends milestones predicted by steps 1-6.

 Beginning first phase, initial investment of min. 50.000€ is needed.

 Phase 2 - realization of installment project comprehends following milestones:

1. creating technical - technologic project
2. producting exploring bore hole
3. creating main project
4. equipment acquisition
5. equipment installiation
6. primary and secondary installment realization
7. finishing works
8. providing consumption permission.
 Latest to beginning second phase it should be invest 75.000€ more, so total invested
means mount 125.000 €.

 Phase 3 - previous phases analyzes and making more detailed project realization plan
Based on acquired experiance due project realization, in this phase we do analyzes of
previous from different aspects - economy-financial, technical-technological,
management, marketing etc. We do critical review, with detailed analyzes of eventual
mistakes and omits, and based on those analyzes we accept measures for their overcomes.
We make strong marketing propaganda and prepare ourselves for forward projects.
 Estimated outcomes in first business year 2008.
No. Item Quant. Cost Total Subtotal
1 Firm registration costs 1 800.00 800.00 800.00
2 Renting offices expenses by month (cca.50m2 ) 12 350.00 4 200.00
3 Office furniture equip expenses 1 2 000.00 2 000.00
4 Computer equipment and technical expenses 1 3 000.00 3 000.00
5 Telephones ( mobile, desk phones, fax ) 1 800.00 800.00 10 000.00
6 Public utilizes expenses 12 600.00 7 200.00 7 200.00
7 Business trips in Serbia expenses 12 250.00 3 000.00
8 Business trips in abroad expenses 2 3 000.00 6 000.00 9 000.00
9 Consulting and marketing expenses 12 1 000.00 12 000.00 12 000.00
10 Director and chairman fees 24 800.00 19 200.00
11 Employees fees 36 400.00 14 400.00
12 Fees taxes and contribute expenses 20 160.00 53 760.00
13 HYY partner staying expenses 2 4 000.00 8 000.00 8 000.00
14 Demo center expenses 1 25 000.00 25 000.00 25 000.00
TOTAL EXPENSES 125 760.00
Producing services expenses ( 14 ) 25 000.00
Gross employees fees ( 10, 11, 12 ) 53 760.00
Material expenses ( 3, 4, 5 ) 5 800.00
Non material expenses ( 1, 2, 6, 7, 8, 9, 13 ) 41 200.00

According to this expenses structure table we have made estimates for next years.
 Investment structure
   This is not about classical investment project but project which requires certain preparing
period, before concrete first and fallowing projects realization, which runs with no financial
incomings while financial outflows are considerable.

1. New workers employment plan

For this project realization,
realization, firm plans to employ specialists, by phases, for doing jobs as fallow:

No. speciality
Job type grade Proffesion
1. Project engineer VII / 1 Mechanical engineer
2. Project engineer VII / 1 Electrical engineer
3. Project engineer - static VII / 1 Constructing engineer
4. Financial accounting VII / 1 Economist
5. Law and general VII / 1 Lawyer
6. Maintenance VII / VI Mechanical or electrical engineer
8. Operating project realization IV / III Mechanical or electrical
9. Installs, isolating and plumbing IV / III Constructing or similar
10. Vehicle driving V / IV ’’D’’
’’D’’ category driver
12. Vehicle driving IV / III ’’C’’
’’C’’ category driver
13. Material managing and storage IV / III Mechanical or constructing engineer

Employment of new workers will continue according to dynamic and project realization scope.
 2. Planed incomes 2008.-2012.
No. Term Year

2008 2009 2010 2011 2012

1 Planed realization in m2 0,00 10.000,00 20.000,00 20.000,00 20.000,00

2 Gross income in € 0,00 800.000,00 1.600.000,00 1.600.000,00 1.600.000,00

3. Planed outcomes 2008.-2012.

No. Type of outcomes Year

2008 2009 2010 2011 2012

1 Purchased value of sold goods 0,00 500.000,00 1.000.000,00 1.000.000,00 1.000.000,00

2 Material outcomes 5.800,00 15.000,00 20.000,00 20.000,00 20.000,00

3 Employed gross fees 53.760,00 80.000,00 110.000,00 110.000,00 110.000,00

4 Amortization and reservation 0,00 12.000,00 12.000,00 12.000,00 12.000,00

outcomes
5 Production services outcomes 25.000,00 100.000,00 200.000,00 200.000,00 200.000,00

6 Non material outcomes 41.200,00 45.000,00 80.000,00 80.000,00 80.000,00

Total outcomes ( in € ) 125.760,00 752.000,00 1.422.000,00 1.422.000,00 1.422.000,00

Incomes and outcomes analyze represents more inconvenient case for investor, with 30% of fed security in outcomes,
and without added incomes from chinese components retail trade.
 4. Capital investment plan
In first tree years in programme realizing it is not planed to interponate in capital investments. Considering,
starting from 2009, we finance ourselves entirely from SWS installment outcomes estimated investor profit in first
five years would remain the same, even in case of double investment - in constructing (or adapting ) an object for
demo-center, and in implementing SWS in it. Owing to much higher initial investment, it would be achieved much
less average yearly profit rate on deposit, while estimated complete object market value, which will be in investor’s
hold, could not achieve the same effects as less investment, with no constructing (adapting) part. That is the reason
why we dropped this option after studious analyze.
Extremely, such double investment could have much better effects if demo center location is in some of
perspective tourist places. That will be scope of our next study, and we will deliver it to you, if you are inerested.
But, in case that, during 3 years starting from 2010, we could realize 30.000m2 each year , what is by 10.000m2
more than predicted, from higher yearly incomes, for about 200.000€ more, constructing of object, in investor’s
ownership, could be optional. That kind of capital investments depends of investors decision.

5. Project financial streaming 2008.-2012.

No. Position Year
2008.. 2009 2010 2011 2012
1 Means incomes 125.760,00 800.000,00 1.600.000,00 1.600.000,00 1.600.000,00

2 Means outcomes 125.760,00 752.000,00 1.422.000,00 1.422.000,00 1.422.000,00

3 Gross means 0,00 48.000,00 178.000,00 178.000,00 178.000,00

incomes
 5a. Project financial streaming chart 2008.-2012.

2008.
1.600.000 €

1.400.000 €

1.200.000 €

1.000.000 €

800.000 €
1 .6 0 0 .0 0 0  €
600.000 €
1 .4 0 0 .0 0 0  € 2012 2009.
400.000 €
1 .2 0 0 .0 0 0  €
200.000 €
1 .0 0 0 .0 0 0  € 0 €
8 0 0 .0 0 0  €
6 0 0 .0 0 0  €
4 0 0 .0 0 0  €
2 0 0 .0 0 0  €
0  €
2008. 2009. 2010. 2011. 2012

2011. 2010.

Means incomes
Means outcomes
 6. Cash streaming projection 2008.-2012.
No. Position 2008 2009 2010 2011 2012

1 Balance at starting year 125.760,00 0,00 0,00 0,00 0,00

2 Income from selling 0,00 800.000,00 1.600.000,00 1.600.000,00 1.600.000,00

goods and services
3 Business expenses 30.200,00 600.000,00 1.200.000,00 1.200.000,00 1.200.000,00

4 Gross profit -30.200,00 200.000,00 400.000,00 400.000,00 400.000,00

5 Employees net fees 33.600,00 50.000,00 68.750,00 68.750,00 68.750,00

6 Other expenses 36.000,00 45.000,00 80.000,00 80.000,00 80.000,00

7 Credits and interests 0,00 12.000,00 12.000,00 12.000,00 12.000,00
8 Fees taxes and 20.160,00 30.000,00 41.250,00 41.250,00 41.250,00
increments
9 Other categories of 5.800,00 15.000,00 20.000,00 20.000,00 20.000,00
expenses
10 Profit 0,00 48.000,00 178.000,00 178.000,00 178.000,00
11 Profit tax 0,00 14.400,00 53.400,00 53.400,00 53.400,00
12 Net profit 0,00 33.600,00 124.600,00 124.600,00 124.600,00
(total income )
 7. Investor’s total profit 2008.-2012.

Year Total investment Total implemented Investor’s profit ( in € )

( in € ) ( in m2 )

2008 125.760,00 0,00 0,00

2009 0,00 10.000,00 33.600,00

2010 0,00 20.000,00 124.600,00

2011 0,00 20.000,00 124.600,00

2012 0,00 20.000,00 124.600,00

∑ 125.760,00 70.000,00 407.400,00

281.640,00
Investor’s total profit in €
Total profit coefficient over invested means 2,240 (223,950 %)
Average yearly profit coefficient over invested means 0,448 (44,790%)
 7a. Investor’s total profit chart 2008.-2012.
2008.
140000
120000
100000
80000

124.600,00 60000
2012. 40000 2009.
33.600,00
20000
0

124,600.00
2012. 124.600,00

124,600.00 2011. 124.600,00 2010.

2011.

124,600.00
2010.

33,600.00
2009.

0
2008.

0 20000 40000 60000 80000 100000 120000 140000

2008. 2009. 2010. 2011. 2012.

Profit  0 33,600.00 124,600.00 124,600.00 124,600.00

 Respected ones,
Due to analyzing and comparing of world known technical solutions, and gathering real
potentials and needs in Serbia, as the most qualitative from technical, economical and
ecological point of view appears to be shallow ground geothermal energy utilizing.
SWS technology is our orientation in which we deposit plenty of efforts, because we posses
analyzes that programme will have extraordinary good market classification, it is perspective
and very profitable.

Project’s nature do not allow precise business and financial plans till at least couple of
realization phases past. That is also an experiance of ’’HYY’’ Company, our strategic
partner to be.

Hope you like this project we are willing to run. We also hope you wish to be a part of it.
Previous realization plan is approximative, but we start planning from the most
inconvenient versions to all of us.
We are ready to begin cooperation with you as soon as possible. This is a right time for that.
All aspects of possible contract among us would be legal formulated, for mutual satisfactory.

We speak english, and we are ready to answer your questions.

FAITHFULLY YOURS,  
   Gordana Jakovljević descphone: +381.34.348.825, mob.+381.63.16.76.98 gocajak@nadlanu.com
Thank you for your
time
and attention!