INCOME TAXATION

In accordance with current regulations, the tax rules require that the financed legal entity, with Fiscal Residence in Spain, apply withholding taxes as follows:

• For non-resident in Spain investors:
• If you are an individual: application of a final withholding tax rate of 19%;
• If you are a legal entity: application of a final withholding tax rate of 19%.
• For resident investors in Spain:
• If you are an individual: application of an advance withholding tax rate of 19%;
• If you are a legal entity: application of an advance withholding tax rate of 19%.
• For non-resident in Spain investors and Extra-EU nationality:
• If you are an individual: application of a final withholding tax rate of 24%;
• If you are a legal entity: application of a final withholding tax rate of 24%.

WHAT AM I ABOUT TO INVEST IN?

The crowdfunding campaign consists of financing the company Capital Projects JFB, S.L., so that it can cover various payments related to its activity and successfully complete the development of 4 projects for the installation of photovoltaic solar energy systems in different locations in France.

The company is completing the development of these plants (all with peak powers below 500 kWp) and plans to sell or execute these installations once all construction permits are obtained (reaching the industry jargon of "Ready to Build" state).

THE PLANTS

Capital Projects is currently managing 7 MWp of power in France in various projects under development. For the proposed crowdfunding campaign, Capital Projects has submitted documentation to Ener2Crowd and its investors regarding 4 distinct projects, described below:

- Laforge: construction of a photovoltaic solar power plant in Montipouret, France, with a peak power of 320 kWp. The strategy involves selling energy to the French government at a fixed price of 120 Euro/MWh (unilaterally established by the French government for all installations in France below 500 kWp, to incentivize small installations in the territory).
- Gaec Les Plantes: construction of three photovoltaic solar power plants in Romans, France, with peak powers of 500 kWp, 330 kWp, and 340 kWp respectively. The strategy is to sell energy to the French government at a fixed price of 120 Euro/MWh.
- Gesnouin: construction of two photovoltaic solar power plants in Azat Le Ris, France, with peak powers of 500 kWp and 420 kWp respectively. Again, the strategy is to sell energy to the French government at a fixed price of 120 Euro/MWh.
- Earl La Pezeau: construction of three photovoltaic solar power plants in Menigoute, France, with peak powers of 130 kWp, 190 kWp, and 330 kWp respectively. The strategy involves selling energy to the French government at a fixed price of 120 Euro/MWh.

HOW IS THE INVESTMENT REPAID?

In total, 3.06 MWp were submitted for financing. These development projects were evaluated at a price of 75.000 Euros per MW of power for the financing offered to investors. The total power of all the aforementioned projects is 3 MW, so a total financing of 225.000 Euros is offered (with a flexibility range of 25.000 Euros more or less).

A calculation and an external certification of the evaluation made per MW of power are available in the "Financial Data" section, under the "Due Diligence: Expert Opinion" entry.

To cope with the repayment of these amounts, Capital Projects has two different strategies it can adopt:

• Operation of the project and refinancing of the amount borrowed for development: on one hand, it could choose to maintain ownership of the projects in the long term, completing and operating them. In this case, the debt contracted with Ener2Crowd investors would mature before the generation of the cash flows necessary for its repayment. For this reason, the Project Owner would refinance the long-term debt with another financial entity. Currently, the Project Owner has already initiated conversations with several financial entities that would allow refinancing these amounts over a longer period (during the entire project operation).

• Sale of the project to a third party: in the event that it wants to close the project and obtain liquidity in advance (which would allow reinvestment in other development projects), Capital Projects could choose to sell the project to a third party, which it could do at an estimated valuation shown in the following section.

QUALITATIVE SCORING AND FINANCIAL SCORING

ENERSCORE+ & FINANCIAL SCORING

Ener2Crowd provides a first qualitative parameter called "EnerScore+" that is assigned to each individual investment proposal. This parameter defines a SCORING that objectively, comprehensively, and understandably summarizes all the data that characterize the project from a technical point of view, ranging from an ESG evaluation expressed in CLASSES, to a verification of activated SDGs (Sustainable Development Goals).

A specific Financial Rating is provided by Focus Partners, a consulting company with over 15 years of experience in the sector. Their activities include a detailed analysis of the projects to ensure investors an accurate and transparent assessment of the financial health and credit capacity of the Project Holder. Thanks to their extensive experience and expertise in the field, Focus Partners offers a reliable evaluation that allows investors to make informed and conscious decisions regarding their investments.

In the case of the Project proposed by Capital Projects JFB, the resulting EnerScore+ is 6,64, so an ENERSCORE+ B (ESG) is assigned, while it was not possible to assign a Financial Rating.

Qualitative Scoring - EnerScore+
Elements taken into analysis:

• Clarity of project objectives and comprehensibility of descriptions;
• Strategic value of the project;
• Project business plan;
• Clarity of information;
• Technical-design verification;
• Evaluation of the integrity of the project owner's team;
• History and experience on the Platform of the project owner, and if applicable, track record of payment punctuality;
• Coherence of the crowdfunding project with the purposes and mission of the platform, particularly environmental sustainability, innovation, positive impact on the territory, ethics of the service provided, and social impact;
• Activated SDGs by the project;
• ESG report provided by Cerved Rating Agency.

Financial Scoring

Focus Partners, as an independent third party, has analyzed the essential elements of the project under development and projected the future cash flows of the various projects. Further details on the analysis are available in the "Financial Data" section under the "Due Diligence: Expert Opinion" item.

Prudent Evaluation:
Focus Partners has considered the evaluation carried out for the projects to be prudent and in line with financial expectations. This evaluation provides investors with a solid basis for making informed decisions regarding their financial participation.

NOTE: It should be noted that these values represent only a reflection element that an investor can consider in the decision to participate in financing.

INTEREST RATE DEFINITION

In recent months, the global socio-economic context has led to a strong increase in inflation, that is, the prolonged increase in the average level of prices for goods and services. For this reason, the ECB predicts an increase in mortgage and financing rates with the aim of preserving the purchasing power of consumers. In June 2024 after 5 years, the ECB made a first rate cut of 0,25 percentage points following macroeconomic estimates, opening new scenarios in the financial market

INDEXING TO EURIRS AND EURIBOR INDICES

Unlike an initial phase where the effective interest was calculated based on a base rate, corrected through a Correction Factor (Fc), starting from 2024 a new method of defining the Interest Rate is introduced. In this specific case, similar to how Banks define the interest rate applied to loans, in this case, the interest rate is linked to the EURIRS index (in the case of fixed rate) and EURIBOR index (in the case of variable rate).

THE PLACES OF INTERVENTION

Montipouret, France

Romans, France

Azat le Ris, France

Menigoute, France