First Net Zero integrated German stainless steel plant

• Location: Vietnam, Vung Ang Industry Zone, Ha Tinh Province, 250 ha

• Project owner: VFT Industry UG (haftungsbeschränkt),
Amiraplatz 3, 80333 München, Germany
HRB 253 159_USt-IdNr. 143/117/30143

• Total production capacity: 1.100.000 tons / yr

• System Capacity Electricity: 700.000.000 kWh / yr
• Licenses status: preparation of IRC
- first planning phase by project owner VFT: completed,
costs 6 Milion EUR
- second planning phase by project owner VFT: preparation of
IRC, ERC, estimated costs, another 5 Million EUR

• Target: IRC 1st quarter 2024, start construction 07/24, COD 01/27

• Estimated investment volume: 1.500.000.000 EUR

• Contact: Dipl. Ing. Mrs. U. Antonia Zahn-Weber, CEO, zw@vftindustry.com

VFT GREEN Stainless Steel 1
• VFT Industry offers the development of certified carbon projects with measurable
impact on nations, communities and regions, thus also helping
to reach the United Nations sustainable development goals.

• We focus on the development of self-sufficient production units for the

production of 100% net-zero GREEN stainless steel.

• Our team is international, interdisciplinary, and experienced in

large industrial projects.
In our project layout we connect the requirements for a crisis-proof future
with our claim for secure profitability.

• We collaborate with some of the leading investor teams in Germany, Uk,

UAE and Switzerland and world's leading German technology companies.

• VFT was established in 2021 at Munich, Germany, the Centre of innovation and
world class engineering.

• The first location decision is Vietnam. We are preparing the investment permit and
company branch.
VFT GREEN Stainless Steel 2
Initial situation
Stainless steel production responsible for
>150 million tons of C02 per year
Vietnamese economy depends on climate-damaging
stainless steel imports, especially from China

At the same time rapidly growing demand

of base load renewable energy for economic price

VFT GREEN Stainless Steel 3

 Our solution

Net zero balance

from day one

VFT GREEN Stainless Steel 4

 SMART Industry  Our partner SMS Group is internationally renowned as leader in the metal
industry. Thanks to its quality and innovation, SMS mechanical
engineering stands for high-end climate-friendly and durable plants. The
VFT GREEN Stainless Steel

Fully automated, digitized, SMS group Germany in cooperation with EULER HERMES and KFW
intends to install our stainless steel plant in Vung Ang IZ, Ha Tinh,
durable stainless steel plant, Vietnam. www.smsgroup.com
100% circular economy.
 100% steel scrap recycling – (reservation agreement over reasonable
amount)

 an experienced steel company will be involved as the operating company

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 Net Zero Project  Our technology partner WABIO is the leading provider of high-tech large-scale
Management biogas plants, bringing over 30 years of experience and biotechnology research.
www.wabio.de
VFT GREEN Stainless Steel

365 x 24 Phase 1:
366.000.000 kWh/ yr for production of 600.000 tons/yr stainless steel, price <
reliable base load and 0,05 EUR/kWh
peak load regenerative energy Phase 2:
671.000.000 kWh /yr for production of 1.100.000 tons/yr stainless steel, price <
regional-modular 0,04 EUR /kWh
independent of electricity suppliers
independent of electricity grids
• no environmental damage.
electricity price < 0.05 EUR/kWh
• input material: about 1% of total quantity of rice straw

 development options: sector coupling with power from Catalytic Degassing

Technology – German patented CDT plant (plastic waste to energy). CDT plants
are modular and can be designed in any size. (cooperation agreement
concluded)

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 MARKET 1% to 2% of the total market
According to the International Stainless Steel Forum (ISSF), around
• architecture / construction, 56.3 million tons of stainless steel were produced worldwide in 2021.
VFT GREEN Stainless Steel

• automotive / transportation, That was eleven percent more than in the previous year and also eight
• chemical plant engineering, percent more than in the previous record year 2019.
• offshore and shipbuilding,
• environmental engineering,
• household /consumer goods, Main sales market Vietnam
• food processing, The Vietnamese domestic market requires around 650,000 t of
• medical and pharmaceutical, stainless steel per year. Annual growth is estimated at 10% per year.
• water management To date there is no stainless steel production in Vietnam.
Already 85% of our 2027-2031 production has been requested
by our Vietnamese customers.
Stainless steel production grew by almost 80% from 2007
(approx. 28 million t) to 2018.
2007
2008
2009
28,146
26,218
24,908
- 7,3 %
- 5,3 %
EUROPE
2010 31,090 + 24,8 % In 2021 Western Europe imported 11.3 million tons of stainless steel.
Our selected European customers are supplied with about 15% (phase
2011 33,621 + 8,1 %
2012 35,363 + 5,2 %
2013 38,130 + 7,8 %
2014
2015
41,696
41,548
+ 9,3 %
0,0 % 1) of our production. Interest in our GREEN stainless steel will grow,
2016
2017
45,798
48,081
+ 10,2 %
+ 5,0 % especially in view of climate tariffs and CO2 taxes.
Stainless steel production worldwide: million tons

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 MARKET 1% to 2% of the total market
According to the International Stainless Steel Forum (ISSF), around
• architecture / construction, 56.3 million tons of stainless steel were produced worldwide in 2021.
VFT GREEN Stainless Steel

• automotive / transportation, That was eleven percent more than in the previous year and also eight
• chemical plant engineering, percent more than in the previous record year 2019.
• offshore and shipbuilding,
• environmental engineering,
• household /consumer goods, Main sales market Vietnam
• food processing, The Vietnamese domestic market requires around 650,000 t of
• medical and pharmaceutical, stainless steel per year. Annual growth is estimated at 10% per year.
• water management To date there is no stainless steel production in Vietnam.
Already 85% of our 2027-2031 production has been requested
by our Vietnamese customers.
Stainless steel production grew by almost 80% from 2007
(approx. 28 million t) to 2018.
2007
2008
2009
28,146
26,218
24,908
- 7,3 %
- 5,3 %
EUROPE
2010 31,090 + 24,8 % In 2021 Western Europe imported 11.3 million tons of stainless steel.
Our selected European customers are supplied with about 15% (phase
2011 33,621 + 8,1 %
2012 35,363 + 5,2 %
2013 38,130 + 7,8 %
2014
2015
41,696
41,548
+ 9,3 %
0,0 % 1) of our production. Interest in our GREEN stainless steel will grow,
2016
2017
45,798
48,081
+ 10,2 %
+ 5,0 % especially in view of climate tariffs and CO2 taxes.
Stainless steel production worldwide: million tons

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  Highly profitable
USPs  Price advantage for our customers compared to products with a high
CO2 load with regard to climate tariffs and CO2 taxes
 CO2 compensation and interstate C02 trade
VFT GREEN Stainless Steel

 Euler HERMES “Deckungserleichterungen für klimafreundliche

Geschäfte und Finanzierungen“
 first mover - production on site in the main market
Key economic data of Vietnam
© 2022 Germany Trade & Invest

*) Schätzung, **) PrognoseQuelle: General Statistics Office of Vietnam; Deutsche Bank; Deutsche Bundesbank;
Statistisches Bundesamt
Vergleichsdaten
Indikator 2021*) 2022**)
Deutschland 2021
BIP (nominal, Mrd. US$) 287,6 319,8 4.219
BIP pro Kopf (US$) 2.920 3.216 50.709
Bevölkerung (Mio.) 98,5 99,4 83,3
Wechselkurs
(Jahresdurchschnitt 1 US 22.914 - -
= VNDong)

 250 ha land with connection to the deep-water port, good development

and expansion opportunities
 young and motivated population, well trained employee
average age 2020 = 31.9 years (average age DE 2020 = 47 ,6) (Data sources: Department of Economic and Social
Affairs (English) of the United Nations published, Factbook of the CIA (English) Federal Statistical Office.

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 Market
segmentation
VFT GREEN Stainless Steel

Our advantages over ourcosts

rough low electricity competitors:
through our own power generation Effective a

• First GREEN stainless steel production worldwide company structure

• First-Mover-Advantages: high market entry barriers
• Price advantage through low electricity costs through our own
sustainable power generation
• Effective and efficient modern company structure
• Use of the latest technologies and innovative production processes

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Business Modell

1. Growing domestic market for Stainelss Steel in Vietnam

2. Growing demand for GREEN stainless steel in Europe

3. Our decarbonisation commitment

resultes in the saving of more than
20 million tons of C02 before 2050
= >1 Billion EUR supplementary revenues

Carbon offset prices could reach as high as 224 USD

per ton of carbon dioxide by 2030, and 120 USD
per ton by 2050. This forecast is based on a limited
supply of offset credits, from removed emissions only

4. Our electricity price is reliably under 0.05 EUR/kWh

VFT GREEN Stainless Steel 11

 Financial Rationale
Forecast Fitch-Rating Vietnam:
Market growth:
BB+
approx 10% per year in Vietnam and ASEAN area
growing market in Europe for GREEN stainless Steel
VFT GREEN Stainless Ste el

Supply vs. Demand: Demand overhang

EBITA > 49,66 % First-Mover-Advantages: high market entry barriers
Currency risks
EBIT > 28,34 % (earnings in Vietnamese Dong): FX Hedging

Net Profit > 11,87 % / yr Security:

- P&S contracts GREEN Stainless Steel
- 250 ha land
- 1.000.000 CO2 credits year after year, annual equivalent > 45 Million EUR
- Stainless steel plant, buildings, halls, power generation plants
- feed-in guarantee electricity

Competition: first GREEN Stainless Steel, first and only production for
. domestic market Vietnam -
. Market share offer: 100%
Option: Increase production from 600.000 to 1.1 Mio tons yearly

Discounted payback period 15 years

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 P&S contracts are signed
Proof of concept HRC 201, 304, 316
VFT GREEN Stainless Steel

100.000 tons /yr for own consumption, contraced, Vietnamese client

100.000 tons/yr for own consumption, in negotiation, Vietnamese client
Already 85% of 300.000 tons /yr for distribution, in negotiation, Vietnamese client
our 2027 - 2031 production 6.000 tons /yr for own consumption, contracted, Chinese client
has been requested by our
Vietnames customers 15% of our production for selected customers in Europe.
CO2 neutral manufacturing will be a purchasing decision also in view of
the likely high import climate tariffs and taxes for products with high CO2
load. Western Europe imports 11,3 million tons of Stainless Steel yearly.

Milestones
IRC 1st quarter 2024
Start of construction 3rd quarter 2024
First delivery 1st quarter 2027
2nd expansion phase 1,100,000 tons/yr 2032

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 Meaningful local and regional Call to Action
employment opportunities,
tax revenue
Binding cooperation agreement
VFT GREEN Stainless Steel

and leadership opportunities

for Ha Tinh Province,Vietnam We need the Ha Tinh Province (or other authority) to issue a
with regard to statement supporting the use of the project land as collateral equal
new industrial standards and to the value of the next capital injection. For this, we will provide
climate protection successes you with an LOI with proof of funds.

Contact project owner:

VFT Industry UG (haftungsbeschränkt),

Amiraplatz 3, 80333 München, Germany

Dipl. Ing. Mrs. U. Antonia Zahn.Weber, CEO, zw@vftindustry.com

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