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We are particularly pleased to report that our location extension is now officially underway. The first ceremonial cut of the spade was made on 26 August. We are expanding our location in St.

1 Kössler Report Newsletter Issue 16 1 Kössler 2 Our Current Projects: Pucioasa, Gastager, Pilgersteg, Erl, Gartenau, Hakenkrümme 3 Location Extension 4 eq-solutions Dear Customers, Dear Business Partners, You are holding the latest issue of our Kössler Report in your hands, and we are able to provide you once again with some interesting news about our company. We are particularly pleased to report that our location extension is now officially underway. The first ceremonial cut of the spade was made on 26 August. We are expanding our location in St. Georgen by an engineering center and a new production hall for final turbine assembly. As a result, we will be able to optimize our production and all associated processes and complete them even more efficiently. Alongside our extension project, in St. Georgen a new kindergarten is being built. Following an agreement with the relevant town officials, there will be spaces for the children of Voith and Kössler employees in future. The location extension is an important step towards the modernization of our turbine production. Innovation is, after all, an absolute necessity for us to remain a competent partner for our clients as well as to motivate our workforce. Our product portfolio has also been expanded - by eq-solutions. The eq-solutions series stands for standardized compact turbines, optimized for smaller output ranges and produced in renowned Kössler quality with the latest hydraulics from Voith. And last but not least, we would like to use this issue to introduce some of the altogether 42 projects of the past business year. We hope you enjoy reading our Kössler Report! Josef Lampl and Robert Doppler, Managing Directors Kössler Report 1 6

HEPP PUCIOASA 1, ROMANIA - A structural challenge At the foothills of the Carpathian Mountains, Pucioasa 1 power station has been generating electricity from hydropower for 25 years.

, a subsidiary of Wien Energie, recently decided to modernize the plant.

2 HEPP PUCIOASA 1, ROMANIA - A structural challenge At the foothills of the Carpathian Mountains, Pucioasa 1 power station has been generating electricity from hydropower for 25 years. The plant is part of a cascade with an upstream reservoir. The two horizontal Francis turbines are supplied by a 69-meter-long penstock. The operator Vienna Energy Forta Naturala Sr., a subsidiary of Wien Energie, recently decided to modernize the plant. A general overhaul of one of the two turbines and a replacement of the other one proved to be the most efficient solution for the site. The turbine replacement nevertheless presented a major constructional challenge, because the existing structure of the building had to be preserved as far as possible. In the end, only the concrete castings were removed, and the new plant had to be optimized in line with the structural design. Together with the Voith research laboratory, the Brunnenmühle, it was possible to develop the optimum solution for the location. It was decided to go for a compact design without flywheel. In order to ensure homogenous flows, the inlet pipe was fitted with guiding plates. In combination, the introduced modifications have resulted in a flow increase of 10 % and an increase of the plant s efficiency by 8 % and an annual energy production of 6,700 GWh.// Output: 1109 kw Head: 20.4 m Turbine type: horizontal Francis turbine HEPP GASTAGER, GERMANY - General overhaul after over 30 years Since 1980 a four-blade Kaplan runner in Ruhpolding close to the Austrian border has been generating renewable energy from hydropower. Every year, about 450,000 kwh of electricity were produced. After more than 30 years of successful operation, the plant has now undergone a much needed general overhaul. During this refurbishment, the runner blades were completely renewed. In order to ensure long-term performance and guaranteed economy of the plant, it was decided to replace the bronze blades by chrome steel blades. The new material stands out by its robustness and resistance to wear. The material change also enabled an adjustment of the runner gap, which led to an efficiency increase of up to 5 %. The fully overhauled plant re-entered service in March 2013.// Output: 140 kw Head: 5.1 m Turbine type: vertical 4-blade Kaplan turbine Kössler Report 2 6

This has been achieved by investing into two differently sized horizontal Francis turbines.

3 HEPP PILGERSTEG, SWITZERLAND - Small hydro, big features goal of the modernization was to fully exploit the potential of the site with its 1.6 MWh. In order to comply with the high ecological demands it is essential to make optimum use of the fluctuating water supply. This has been achieved by investing into two differently sized horizontal Francis turbines. Listed as a historical monument, a small hydro power station in Rüti has been generating electric energy for the Swiss region since The overall technical construction of the plant nevertheless resembles that of a large modern power station. At 17 meters, its dam is the highest in the Canton of Zurich. Moreover, it has a reservoir, a penstock and a surge tank. In addition, state-of-the-art control systems allow unmanned and fully automated operation of the plant. The privately owned power station has been continuously modernized over the last 20 year. The most recent and therefore most comprehensive stage not only covered the installation of new turbines and generators but also a rebuild of the machine room and the complete renewal of the water inlet pipes and the electric installations. The With the two turbines, which are rated at 451 kw and 112 kw respectively, it was possible to increase the plant performance by more than 20%.// Output: 1 x 451 kw / 1 x 112 kw Head: 41.2 m Turbine type: horizontal Francis spiral turbines HEPP ERL, GERMANY - Performance-enhancing modernization In Altenmarkt/Alz in Lower Bavaria, a location that has been used since ancient times for power generation for a mill, the region is now supplied with energy by a horizontal Kaplan turbine. At the heart of the plant, which was built in 1990, is a four-blade runner made from bronze, which - due to abrasion - is no longer able to achieve the maximum possible efficiency for the power station. By welding the blades at the outer diameter and levelling the runner chamber it was possible to re-establish the original gap. As a result, the output of the plant has been significantly increased.// Output: 756 kw Head: 4.5 m Turbine type: Kaplan-A bulb turbine Kössler Report 3 6

University. Gartenau power station at the Ache River in Germany has been in operation since the beginning of the 20th century and was originally fitted with two Francis twin turbines.

4 HEPP GARTENAU, GERMANY - Optimization by modernization to lower the underwater duct for the suction pipe and create a bellmouth intake. To ensure that the relevant hydraulic design was optimally suited for the application, its function and loss potential was examined on the basis of CFD calculations carried out by Stuttgart University. Gartenau power station at the Ache River in Germany has been in operation since the beginning of the 20th century and was originally fitted with two Francis twin turbines. After the plant was taken over by AUF Eberlein GmbH & Co KG it was finally decided to modernize one of the two turbine sets. The goal of the modernization was a significant optimization of the system. The desired improvement was to be achieved by the installation of a vertical Kaplan turbine, which would meet the specific requirements of the location. In order to keep any modifications of the building to a minimum and to preserve its outer structure, the new turbine was installed in the existing turbine pit and directly coupled with a synchronous generator. Thanks to the compact design of the system all that was required was The plant finally re-entered service on schedule in March Optimally adapted measures and electro-mechanical components have made possible that the expected performance value and the operating behavior are being met without any problems.// Output: 946 kw Head: m Turbine type: vertical Kaplan turbine HEPP HAKENKRÜMME, GERMANY - Economical and ecological modernization Since 1924 a hydropower station has been operating at the Aue River, originally equipped with two Francis spiral turbines of identical size. In the course of an earlier modernization project in 2006, Kössler had already replaced one of the two turbine sets by a vertical bulb turbine. In 2011, the second set was modernized. Once again it was decided to install a Kaplan bulb turbine, but this time with smaller dimensions, in order to ensure better adaptation to low-water periods. Maintenance-free bearings for the guide vanes and runner blades, as well as a water-lubricated turbine pilot bearing, ensure that the plant complies both with all economical and ecological standards.// Output: 609 kw Head: m Turbine type: Kaplan bulb turbine Kössler Report 4 6

Since 2007, Kössler is also part of the global network of Voith Hydro and has been assigned the role as the Group s center of competency for small hydro.

5 LOCATION EXPANSION - Engineering Center and Final Assembly Hall Kössler has been based in St. Georgen near St. Pölten more or less since its foundation in 1928, and the company has always been regarded as one of the leading employers in the region. Since 2007, Kössler is also part of the global network of Voith Hydro and has been assigned the role as the Group s center of competency for small hydro. Through its investment into a new engineering center and a new turbine assembly hall, Voith underlines the importance of the production site and its clear commitment towards renewable energy from hydropower. The location expansion covers a 700 m² technology building and a 1000 m² production hall for final turbine assembly. The expansion of the production site, which, among other things, also ensures improved logistics, is a strong indicator of the future positive development of the company. St. Pölten, the Mayor of St. Pölten Mag. Matthias Stadler, as well as other representatives of the town of St. Pölten and the entire workforce of the company, the Managing Directors of Kössler - Josef Lampl and Robert Doppler - performed the first cut of the spade. The project has four phases. Construction will begin in September The official handover of the buildings is scheduled for the end of Josef Lampl emphasized the importance of the modernization for the production site: As the Managing Director of Kössler I have given this project my special backing, and I am really pleased that we can now begin with its implementation. We are creating a modern production center which will be the focus of innovation, quality and efficiency. It is also one of our primary concerns to ensure the high attractiveness of this traditional company as an employer for many years to come. Modernization and innovate development are essential criteria for achieving this goal Accordingly, the commitment of the company is highlighted by another special feature of the project. The Kössler expansion occurs simultaneously with the new construction of a kindergarten for three groups, which will also be available for the children of Voith and Kössler employees. This offer for our employees is a good example of effective cooperation between the public sector and the private industry emphasized Robert Doppler.// After a one-year planning phase, the starting signal for the expansion was given in St. Georgen on 26 August In the presence of Dr. Roland Münch, CEO of Voith Hydro Holding, Dr. Leopold Heninger, CEO Voith Hydro Kössler Report 5 6

eq-solutions - standardized turbine solutions for smaller outputs Kössler has developed a range of standardized turbine solutions in order to ensure maximum performance values and high economy for

All of the units are standardized solutions in proven Kössler quality regarding material choice, production and operating safety for man and machine.

6 eq-solutions - standardized turbine solutions for smaller outputs Kössler has developed a range of standardized turbine solutions in order to ensure maximum performance values and high economy for smaller output ranges. eq-solutions stands for compact Francis, Pelton and Kaplan turbines for the output range up to kw. All of the units are standardized solutions in proven Kössler quality regarding material choice, production and operating safety for man and machine. At the same time their construction has been reduced to essential functions and components. Thanks to their technically mature features the design of these turbines is deliberately straightforward and compact. The applied turbine hydraulics are identical to those used for larger plants. This ensures maximum performance data and high investment security. In addition, all components are subject to the strict Kössler quality controls. The turbines, generators and auxiliary units are largely pre-assembled in our works. This results in short delivery times and low installation requirements on site. Experienced customers are also offered the opportunity of self-installation. eq-solutions: Developed for economical applications in the lower output segment. And produced in the quality for which Kössler has been renowned for decades.// Impressum Kössler GmbH & Co KG St. Georgener Hauptstraße St. Georgen Telefon: office@koessler.com Copyright: No part of this publication may be copied, reproduced or otherwise disseminated, nor may any of the content in it be used in part or in whole in other works in any form whatsoever, without express written permission of the editor. Images: Kössler GmbH & Co KG Wien Energy Kössler Report 6 6

Dear Customers, Valued Business Partners,

Kössler Report Newsletter Edition 20 01/2016 1 Review and Outlook 2 eq-solutions: Kössler Compact Turbines 3 AMB @ Kössler 4 Changes to the Kössler Management Board Dear Customers, Valued Business Partners,