The POWER to Respond

SPI addresses the challenge of attaining stability in the supply of electricity in the fast-
growing Mindanao island economy. Through its 210MW (net) dependable capacity, SPI helps meet the energy
requirements needed to sustain the islands economic growth and development.

The POWER to Build

Beyond providing efficient and reliable electrical power to Mindanao, SPI supports and
undertakes social development programs that promote the socioeconomic well being of the people in its host
communities.

The POWER to Protect

Guided by a corporate philosophy of business with responsibility, SPI ensures that its power
plant operation is safe and environment friendly by using state-of-the-art technologies in the process of power
generation. It also undertakes a comprehensive and community-based environment programs such as forest
development and coastal resource management.

Subbituminous coal, also called black lignite, generally dark brown to black coal, intermediate
in rank between lignite and bituminous coal according to the coalclassification used in the
United States and Canada. In many countriessubbituminous coal is considered to be a
brown coal.

A base load power plant is a power station that usually provides a continuous supply of
electricity throughout the year with some minimum power generation requirement. Base load
power plants will only be turned off during periodic maintenance, upgrading, overhaul or
service.

STEAGs third foreign power plant is located in the north of the Philippine island of Mindanao. The two-unit power plant
produces electricity from hard coal and went into commercial operation on 15 November 2006.
Company Overview
STEAG State Power, Inc. (SPI) is a world-class energy company and a leader in advanced coal
power generation technology. Its strengths are efficiency, reliability, safety, innovativeness and
responsibility. It was established in 1995 as a special Purpose Company created to own, finance,
construct, operate and maintain the 210 MW (net) Mindanao Power Plant in Misamis Oriental. The
power plant supplies 18% of the islands electricity needs and has thus far helped in the socio-
economic development of the region. SPI is principally owned by STEAG GmbH which is Germanys
5th largest electricity producer and a market leader in biomass power plant. With more than 70 years
experience in the power industry, STEAG GmbH has developed into a successful service provider in
the design, engineering, construction and operation of power plants in Germany, Turkey, Columbia
and the Philippines. At the moment, it operates 13 power stations with an aggregate capacity of
about 9,000 megawatts. STEAG GmbH has also positioned itself well in the opportunity-rich growth
market for renewable energies.

Our Mission
We are committed to:

Help provide solutions to the expanding energy demands of the country;

Conduct our business with honor, integrity and professionalism in the best interest of all our
stakeholders;

Ensure optimum efficiency, reliability and safety in our operations through state-of-the-art
technology and innovative processes in a culture of continuous improvement;

Meet the growth needs and aspirations of our people in a productive and collaborative team-
environment;
Preserve mother-earth and help build self-reliant communities to uplift the quality of life of the
people.

You can find a summary of STEAG GmbH's key facts and figures here.

Information on turnover, employees, products & services and plants. Additional details can be found in our financial
statement.

Founded
1937

Headquarters
Essen, Germany
Core competencies
Planning, construction and operation of highly-efficiency power plants using fossil fuels (hard coal, natural gas and refinery
by-products) and renewable energy sources (biomass, biogas, mine gas, geothermal energy and wind)

Shareholders
A consortium of seven German local utilities from the Rhine Ruhr region **

Management
Joachim Rumstadt (Chairman),
Michael Baumgrtner,
Dr.-Ing. Wolfgang Cieslik,
Alfred Geissler

Employees
Approx. 5,920

Turnover
3,568 million EUR

EBITDA
399 million EUR

Installed generating capacity

10,300 MW (of which 8,200 is in Germany)

Plants in Germany
In Germany: nine coal-fired power plants at eight locations, two refinery power plants at two locations and over 200
additional plants for generating power from renewable and conventional energies and for supplying local power

Plants and sites in Europe/Worldwide

Coal-fired power plants in Colombia, Turkey and the Philippines (each a joint venture with local partners); local generation
plants in Poland; wind turbines in France, Romania and Turkey, subsidiaries and representatives in European countries and
in Brazil, the USA, India, South Africa and Singapore.
Subsidiary companies
STEAG Energy Services GmbH
STEAG Fernwrme GmbH
STEAG New Energies GmbH
STEAG Power Minerals GmbH
STEAG Power Saar GmbH
STEAG Technischer Service GmbH

* Financial year 2014

** KSBG Kommunale Beteiligungsgesellschaft GmbH & Co. KG

STEAG's Owners

As of the 5th of September 2014, the KSBG Kommunale Beteiligungsgesellschaft GmbH & Co. KG is the sole
shareholder in STEAG GmbH.

The company is a consortium of seven municipal utilities that serve the Ruhr district: Stadtwerke Duisburg AG, Dortmunder
Stadtwerke AG, Dortmunder Energie- und Wasserversorgung GmbH, Stadtwerke Bochum GmbH, Stadtwerke Essen AG,
Stadtwerke Dinslaken GmbH, Energieversorgung Oberhausen AG.

The STEAG network offers an all-round range of services

There are six subsidiaries under the STEAG umbrella.

The services they offer in their specialist fields complement and build on the expertise within STEAG. The benefit?

Energy solutions from a single source.

The companies within the STEAG network all profit from synergies along the group's internal value chain.

Further information

STEAG Energy Services GmbH

STEAG New Energies GmbH
STEAG Fernwrme GmbH
STEAG Power Minerals GmbH
STEAG Technischer Service GmbH

Energy services
for power plants

STEAG Energy Services GmbH offers the whole range of energy services relating to power plants, from project planning
and implementation to operating a diverse array of power generation facilities.
Kind to
the environment

As a supplier of heat from environmentally friendly combined heat and power (CHP) plants, STEAG Fernwrme GmbH is
responsible for providing district heating to properties.

Renewable energy and local plant facilities

STEAG New Energies GmbH supplies energy solutions based on efficient and sustainable generation concepts. It plans,
realises and operates local energy production plants that use renewable sources of energy, such as biomass, geothermal
energy and wind power.

STEAG Energy Services GmbH

STEAG Fernwrme GmbH

STEAG New Energies GmbH

Building materials and more - made from power station by-products

STEAG Power Mineral GmbH functions as a service provider to the energy and construction industry. It brings by-products
from power plants to market. It also manufactures and supplies building materials, blasting agents and industrial minerals.

Facility services
for power stations

STEAG Technischer Service GmbH is responsible for planning and providing all technical services required for the
maintenance, inspection, repair and upgrading of power plants.

STEAG Power Minerals GmbH

STEAG Technischer Service GmbH

Products and Services

Power plants of all kinds for a sustainable energy mix in the future

We have a substantial base of power plants of our own, with coal-fired power plants around the world. In addition, we
operate numerous local plants using renewable sources of energy. This means we have a reliable, cost-effective and
sustainable energy mix.
We supply industrial and commercial establishments as well as public facilities with power and heat. We draw on a wide
variety of energy sources, a large proportion of which are renewable energies. We also supply private households with
environmentally friendly district heating.

A comprehensive range of services for municipalities and industry

We provide our customers with assistance at every stage of the power and heat generation process from the construction
of power plants to developing operating concepts and energy marketing. The STEAG network is also able to
provide a variety of power plant-related services.

We offer innovative energy services tailored to the specific requirements of municipal utilities, German and international
energy companies, and industrial and commercial enterprises. They all place their trust in our extensive knowledge about
power plants as well as our decades of experience in the energy market. We are in great demand as an expert for municipal
and industrial energy projects, and not just in Germany. Our services are requested by overseas companies too.

Background and Rationale

The establishment of SPIs Mindanao Power Plant was in response to the power crisis that hit Mindanao in the early
1990s. It was identified as an important component of the Philippines Power Development Program. According to
the Philippines Department of Energy, Mindanao needs an additional capacity of at least 850 MW for the period
2006-2014. Prior to the commissioning of the project, the Mindanao electricity grid was characterized by an
installed capacity of approximately 1,700 MW only, of which almost 1,000 MW was hydro, about 100 MW was
geothermal, and the balance was oil/diesel fired.

The high demand growth and a large proportion of generation being hydro based, resulted in power deficits
especially during dry years. As a result of this there was a clear imperative to put up cost effective thermal power
plants operated at a lower fuel cost than the oil/diesel plants and with more reliability than hydropower.

The Mindanao Power Plant Project has fulfilled this objective. With its timely operation beginning 15 November
2006, the Mindanao Power Plant helped stabilize supply of electricity in Mindanao. Furthermore, the systems
reserve margin increased from a critical level of 13% prior to start of operation to 24% after start of operation. The
required systems reserve margin for Mindanao at that time was 21%.

SPIs power plant is considered as the most modern in Mindanao. After three (3) years of construction, the power
plant began supplying Mindanaos electricity needs in November 2006 just in time when the island was bracing for
a looming power shortage. It is located within a 55-hectare lot at the PHIVIDEC Industrial Estate in Misamis
Oriental. The plant was constructed through the Build-Operate-Transfer (BOT) scheme with a 25-year cooperation
period with the National Power Corporation (NPC).

As of December 2013, the power plant accounts for about 18% of the islands total electricity supply and has thus
far contributed stability and supply reliability necessary to sustain Mindanaos economic growth and development.