Pg № 15.3.2018The Electric Vehicle Charging Company 1

Presentor:Jussi Palola, CEO of VirtaSWISSCHARGE SEMINAR 1/2018

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SHORT INTRODUCTION

Private

Commercial

Public

Energy Systems

Virta Multi-sided Platform EV charging services for the whole value chain

Electric

Mobility

Providers

Charging

Point

OperatorsEV Drivers

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We’re a top European player

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Used in 15 countries and over 110 cities around Europe.

Virta platform is central platform used in 4 countries

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1.

SHARE OUR OBSERVATIONS

3.

INSPIRE YOUR ONGOING

PROCESS TO ACT

2.

OUR CALLS TO THESE

AGENDA

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Global outlook- China is taking the lead -

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Evolution of the global EV stock 2010-2017

0

500

1 000

1 500

2 000

2 500

3 000

2010 2011 2012 2013 2014 2015 2016 2017

World EV stock (x 1 000)

China US Japan Norway Others AllSource: IEA EVI Global Outlook 2017 and EV-Volume for year 2017 stats

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Performance indicators

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China has outperformed in supply and in demand as well.

Source: McKinsey&Company

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In 2017,the global salesof electric carssurpassed1 million

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0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

China Europe US

Global EV sales

2015 2016 2017 Source: CleanTechnica 2018 – Sales statistics from automanufacturers

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The trend is towards pure electric.

In 2017, 81 % of sales were BEVs. The BEV share is high in international comparison.

Europe and USA typically have around 50 % BEVs in their plug-in sales due to the bigger cars sold here.

China

0

200

400

600

800

1000

1200

2014 2015 2016 2017 2018 Fcst

Annual EV sales in China (000s)

Passenger cars Commercial vehicles

Source: EV volumes – The EV World Sales Database

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China

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In 2017, 600 000 EV’s were sold, covering 2.1 % market share of theentire Chinese carmarket.

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

Vehicles sold 2017

Top 5 most sold electric cars in China 2017

BAIC EC-Series Zhidou D2 EV BYD Song PHEV Chery eQ JAC iEV6S/E

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“ Tectonic plates ” of energy world are starting to move

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Energy evolution directions

Energy efficiency

Decarbonization of electricity production

Electrification of energy consumption

Strategy Key metric

0.0 5.0 10.0Energy intensity of GDP (GJ/$2005)

2014

2050

0 200 400 600Electricity emissions intensity

(gCO2/kWh)

2014

2050

0 % 25 % 50 % 75 %Share of electricity and electric fuels in

total final energy (%)

2014

2050

Source: Professor Jeffrey Sachs, Getting to Deep Decarbonization, Climate Action 2016 Summit

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65 % of world CO2emission is related to energy and transport sector

EV´s is effecting both segments reducing emissions significantly.

Electricity and heat42 %

Transport23 %

Industry19 %

Residential6 %

Services3 %

Other7 %

World CO2 emissions from fuel combustion by sector (%)

42%19%

23%

6% 7%

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EV’s are big batteries on wheels

0

10

20

30

40

50

60

2015 2030 2045 2060

TWh

Other sectors EV batteries

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The vast majority of future energy storage capacity will have four wheels.

Source: IEA Electricity well below 2 degrees: from challenges to opportunities 2017

Installed battery storage capacity in the IEA B2DS scenario

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The whole industry is in turmoil

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The split between OPEX and CAPEX of a vehicle will change drastically.

20 %

20 %

80 %

VEHICLE

GASOLINE

Traditional vehicle

Electric vehicle

80 %VEHICLE

ENERGY

50 %

DIGITALSERVICES

(INCL ENERGY)

VEHICLE

“Vehicles”

50 %

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Automotive and energy industries will converge

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AutomotiveIndustry

Transition to Automation, Servitization, Electrification

Future sustainable transport

Power Industry

Transition to Distributed, Integrated, Renewable

Two disrupting industries reinforcing each other

Mobility and energy as an embedded ecosystem

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Virta Service Portfolio

Support and protect the energy system with EV’s

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Energy Service Portfolio

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Bidirectional charging

Frequency containment reserves

Virta Home - optimized charging

Dynamic Load Management

Energy Storages

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Virta Home

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→The world’s smartest home charging service for consumers

→Charging events are optimized based on Nord Pool Spot electricity prices and individual energy needs

→Optimization can also be overridden by selecting hours manually

→The service works as consumer-driven demand response with effective incentives

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Dynamic load management

→ Dynamic load management ensures that the maximum available charging power of a building or a local grid area is not exceeded

→ Charging stations are grouped together through the cloud, no physical connection required

→ Available charging loads (excl. other loads, e.g. home appliances) are dynamically distributed to cars that are charging in the same charging station group

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Bidirectional charging

→ The new vehicle-to-grid (V2G) standards allow us to use EV’s as distributed battery energy storages

→ In practice we connect V2G compatible charging devices and control their bidirectional charging events

→ EV’s can be used side-by-side with stationary energy storages and renewable energy production

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Frequency containment reserves→ Virta’s system enables aggregators to use

EV’s as reserves for demand response

→ Charging events can be automatically controlled with the frequency of the electrical grid

→ When the grid overloads and the frequency drops, EV charging powers are brought down

→ The need to adjust typically occurs a few times a day and lasts max. 1 min, so it has no practical effect on the charging experience

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Energy storages

→Integrating stationarystorages to Virta’s platform

→Enabling the plug-and-play installation of smallstationary storages to buildings and bringing theaggregated storageresources to the electricitymarkets as reserves

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Q3/2017 – Q4/2018

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Evolution in EV Market

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- Adoption Realities for diffent markets

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

2012 2013 2014 2015 2016 2017

Global sales of EV’s and Plug-in Hybrids

EV's and Plug-in Hybrids Pure Evs

Source: IEA EVI Global Outlook 2017 and EV-Volume for year 2017 stats

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Distributed Reality of different markets

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Examples from Europe Tops:

Norway – 8 %

Switzerland – 0,3 %

Finland – 0,25 %

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Europe

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0

5

10

15

20

25

30

35

40

Norway Iceland Sweden Belgium Finland Switzerland

BEV PHEV

Source: European Alternative Fuels Observatory EAFO

Top 6 EV market sharecountries in 2017 in Europe (%)

Variation from: 2,5 % - 39 %

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Our target

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Target is to find thebest partners in leading markets and grow in cooperationwith high multipliers

2015 2016 2017 12/2017

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Mission→ We do our part in solving the climate change

through bringing electric mobility to the people’s daily life and to the energy system.

Vision: Leading platform in Europe→ Virta is the leading platform where different

companies can offer state-of-the-art “easy to buy, easy to sell” everyday services to people and businesses.

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Mission→ We do our part in solving the climate change

through bringing electric mobility to the people’s daily life and to the energy system.

Vision: Leading platform in Europe→ Virta is the leading platform where different

companies can offer state-of-the-art “easy to buy, easy to sell” everyday services to people and businesses.

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We charge.

info@virta.globalwww.virta.global

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Additional information

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Plug & Charge

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Q1/2018 – Q3/2018

→ Following ISO15118 standard for vehicle to grid communicationinterface

→Enables identifying bywire

→Technical pilot with a limited scope

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Protect your grid

→ Our management system protects your grid on all levels by keeping charging power in check

Support renewables

→ We balance the variation caused by renewables with EV’s – and even store energy for when the sun doesn’t shine

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Reasons for not purchasing an electric car

0% 10% 20% 30% 40% 50%

Availability of chargers

Distance travelled on charge

Cost

Lack of knowledge

Technology not proven

Performance, practicality, looks

Limited choice

Don't know

Safety

Resale / residual value

Nothing

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Comprehensive charging infrastructure is key for EV adoption.

Source: UK Department for Transport (2016), N=649 license holders. Multiple selections possible.

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Demand for charging grows on par with EV’s

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All EV’s require public and private charging.

0

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4

6

8

10

12

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16

2010 2015 2020 2025

Public chargers (millions)

IEA B2DS IEA 2DS Paris Decleration

Source: IEA Global EV Outlook 2017