Presentación de avances para proyecto DISTRILUZ

Presentación proyecto

1. PRESENTATION DISTRILUZ Project

2. BUSINESS RELATIONSHIP PROJECTION 2 Strengths Opportunities - We are a partner with more than 2 years of commercial relationship. - Add Production has experience in worldwide marketing. - Teching has experience in the commercialization and implementation of SMART equipment. - Manufacture of new equipment: multi-function meters - T he pilot tender of the electric utilities is 5% of the smart meter (AMI) fleet for the residential sector. - Teching has a branch in Colombia where we want to take the same business.

3. BUSINESS RELATIONSHIP PROJECTION 3 Weaknesses - Delays in the delivery of equipment. Threats - Delivery of equipment in disorder ( Seal, Electropuno , Electrosur ). Presence of Chinese companies in the Peruvian market, which are entering with low prices (Chinese company). - Initial verification certificates sent at the wrong time. - Incomplete deliveries ( Electropuno ). - Firmware failures occur in concentrators .

4. BUSINESS RELATIONSHIP PROJECTION 4 IMPLEMENT BUSINESS IMPROVEMENTS Before sending the equipment, they will have to pass a check list that will be given to them, which covers the Hardware and Software specifications of the equipment. They shall perform firmware tests together with the I+D area. The digital initial verification certificate must be submitted prior to delivery. The master box of the equipment must be labeled with its serial number for a better order. We will request evidence that the equipment to be shipped contains what has been requested (photographs or videos). About concentrators (DCU), the way to register and send the variables to the platform should be by data packet and not by variables, in order to improve the availability of the data, especially from LP1 and LP3. In order to correct the weaknesses listed above, we need the following aspects to be implemented:

5. 1 week 4 weeks 8 weeks 12 weeks 16 weeks 20 weeks 24 weeks 28 weeks 30% cash 30% cash 40% CL 50% cash 1 week 4 weeks 8 weeks 12 weeks 16 weeks 20 weeks 24 weeks …… 72 weeks The 50% payment will be made at the end of the 52 weeks of implementation. PAYMENT SITUATION WITH SUPPLIER - CUSTOMER Supplier Payment Terms - Add Production Customer's payment conditions - Grupo Distriluz As can be seen, the payment conditions that we have with our customers differ completely from the conditions that we currently have with Add Production, causing a financial effort to meet the commitment. In view of this situation, we request that the last % of the payment be transferred to a 60-day credit.

6. Mayo 15/06 15/07 15/8 15/09 15/10 15/11 15/12 PROPOSAL FOR IMPROVED DELIVERY AND PAYMENT with DISTRILUZ Option 01: Delivery of 100% load in 10 weeks 118 concentrators 8,061 meters Payment term, extend payment to 60 days credit. 100% Delivery 30% Payment 40% Payment 30% Payment The delivery time to the client has undergone a change because the project was appealed in the 1st instance, and we were able to obtain the bidding of ITEM 2 of a 2nd bidding (out of 3 ITEMS, we lost the bidding in Item 1 and 3, basically because of the low prices); therefore, it is essential that the production time be reduced to 10 weeks.

7. Mayo 15/06 15/07 15/8 15/09 15/10 15/11 15/12 2nd Delivery Option 02 - Place the order in partial deliveries 1st Delivery of 5,372 Units in 10 weeks Mayo 15/06 15/07 15/8 15/09 15/10 15/11 15/12 1st Delivery 2nd delivery of 2,807 units in 14 weeks 30% Payment 40% Payment DELIVERY AND PAYMENT IMPROVEMENT PROPOSAL 30% Payment 30% Payment 30% Payment 40% Payment

8. CONDITIONS OF CONTRACT (APPENDIX) We need the following points to be clearly and precisely included in the submitted contract: Indicate delivery dates clearly . Include penalties for non-compliance with the delivery date. Just as Add Production needs the contract to be signed, we reciprocally request that the purchase order be properly signed. The equipment shall fulfill the technical specifications of DISTRILUZ. Equipment must be PRIME 1.4 and DLMS /COSEM HLS -SUITE 1 certified.

9. 9 ¡ Thank you ! Efficiency, professionalism, transparency, sincerity and commitment. ([phone] www.teching.com.pe [email protected] @Teching Perú