Zephyr Cleantech Report

Zephyr Cleantech Report 2013

1: PE, VC and DC The following report details mergers and acquisitions activity in the cleantech sector in 2013 using data from the Zephyr database. It focuses on global deals activity by target company within the cleantech sector. Click here to access the raw data in an Excel spreadsheet. 1 Private Equity, Venture Capital and Development Capital 2 All deals: Mergers, Acquisitions, Joint Ventures 3 IPOs PE, VC and DC investment in cleantech falls to six-year low The volume and value of private equity, venture capital and development capital (PE, VC and DC) investment in global cleantech companies fell back in 2013 to 265 deals worth an aggregate USD 8,353 million. Value halved over the 12 months from USD 16,700 million in 2012 and ended three consecutive periods of growth (2011: USD 13,663 million; 2010: USD 11,206 million). Meanwhile, volume weakened for the third year in a row to 265 deals, the lowest recorded in the period under review. However, volume slipped at a slower rate of 10 per cent year-on-year (2012: 294), compared to the 19 per cent decline recorded in 2012 (2011: 362). Private equity, venture capital and development capital deals by volume and value Announced date No of deals 2013 265 8,353 Total deal value 2012 294 16,700 2011 362 13,663 2010 375 11,206 2009 344 9,874 2008 403 17,917 Page 1

1: PE, VC and DC Private equity, venture capital and development capital deals by volume and value Deal value 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 450 400 350 300 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 0 Total deal value Number of deals Page 2

1: PE, VC and DC Triton accounted for the largest PE, VC and DC deal by value in 2013 A lack of blockbuster PE, VC and DC deals targeting global cleantech companies contributed to the overall decline by value as there was just one transaction worth more than USD 1,000 million in 2013 and it involved Triton Advisors acquiring the Spanish steel and aluminium recycling and industrial waste management company Befesa Medio Ambiente for USD 1,404 million. This one deal accounted for 17 per cent of the overall PE, VC and DC value in 2013 (USD 8,353 million), was the only Spanish transaction to feature in the year s top 20 deals by value and represented 94 per cent of the aggregate value of PE, VC and DC investment in companies based in Spain for the 12 months (USD 1,487 million). Actis was the only PE, VC and DC firm involved in more than one of the top 20 deals by value in 2013. It acquired 60 per cent of Brazilian renewable energy producer Atlantic Energias Renováveis for USD 169 million from Pattac Empreendimentos e Participações SA and Servinoga, and bought the Moroccan public water suppliers Amendis and Redal for USD 164 million from Veolia Services à l Environnement Maroc in a deal which was the only PE, VC and DC transaction to target companies in Morocco for the last five years. US still the favoured investment target Cleantech companies based in the US were again the most valuable and most frequent targets of PE, VC and DC investors in 2013, with 101 deals worth a combined USD 3,121 million accounting for 38 per cent of total PE, VC and DC volume (265 deals) and 37 per cent of value (USD 8,353 million). In terms of overall activity, including mergers and acquisitions (M&A), private equity and equity fundraisers, investment still favoured cleantech companies based in the US as there were 320 deals worth an aggregate USD 20,648 million. However, M&A targeting the country was down year-on-year from 363 transactions valued at USD 24,173 million in 2012. Of the top M&A countries by value, dealmaking targeting German companies fell back at the fastest rate, declining 63 per cent from USD 3,037 million in 2012 to USD 1,113 million in 2013. An increase in the value of cleantech M&A targeting countries such as China, Italy, Spain and Kazakhstan over the 12 months came at the expense of investment in Japan, the UK and South Korea, among others. Page 3

1: PE, VC and DC Private equity, venture capital and development capital deals by value Deal value Deal type Target Target business description Target country Equity provider Announced date 1 1,404 IBO 100% Befesa Medio Ambiente SA Aluminium alloy producer holding company, Aluminium alloy wholesaler holding company, Environmental services holding company, Industrial waste recovery and recycling services holding company, Waste treatment services holding company, Water infrastructure construction services holding company, Water supply technology developer holding company 2 862 IBO 100% Siemens Water Technologies Corporation's municipal, industrial and services water and wastewater treatment operations and assets ES Triton Advisers Ltd 18/04/2013 Waste management services US AEA Investors LP 06/11/2013 3 600 Minority stake 20% Russkaya Mednaya Kompaniya ZAO Accounting, bookkeeping and auditing services, Copper cathode and rod products manufacturer, Copper production services holding company, Iron-and-steel and non-ferrous waste wholesaler holding company, Legal services, Metal scrap wholesaler holding company RU Tempest Capital AG 15/02/2013 4 590 IBO majority stake The Flexitallic Group Seal manufacturer holding company FR Bridgepoint Advisers Ltd 06/05/2013 5 465 IBO 100% Synagro Technologies Inc. Biosolids management services, Organic by-products recycling services US EQT Partners AB 24/04/2013 6 378 IBO 100% Bid 2 EnergySolutions Inc. Nuclear waste disposal services US Energy Capital Partners LLC 05/04/2013 7 294 Minority stake 15% Graal Bio Investimentos SA Biochemicals manufacturer holding company, Biomass energy holding company, Biomass energy research and development services holding company, Chemical products wholesaler, Ethanol manufacturer holding company 8 258 IBO 100% Actuant Corporation's electrical segment Branded electrical tools and consumables manufacturer, Electrical switches manufacturer, Electrical transformers manufacturer, Solar photovoltaic systems manufacturer BR BNDES Participações SA 21/01/2013 US Sentinel Capital Partners LLC 31/10/2013 9 219 IBO 100% SSE plc's 4 wind farms in UK and Ireland Electricity generation services GB Greencoat Capital LLP 06/02/2013 10 200 Minority stake EDF Renewable Energy Inc.'s Spinning Spur wind project located in Oldham County, Texas Wind power generation services US Google Inc. 09/01/2013 Page 4

1: PE, VC and DC Private equity, venture capital and development capital deals by value Deal value Deal type Target Target business description Target country Equity provider Announced date 11 182 IBO 100% NGP Blue Mountain HoldCo LLC Geothermal power plant operator holding company US EIG Global Energy Partners LLC 16/01/2013 12 174 Minority stake 50% Rhyl Flats Wind Farm Ltd Offshore wind farm operator holding company GB UK Green Investment Bank plc 22/03/2013 13 169 IBO 60% Atlantic Energias Renováveis SA Renewable energy production services, Wind farms operator 14 164 IBO Redal SA; Amendis Electricity distribution services, Other sanitation and public health services, Water supply services, Water treatment services; Electricity distribution services, Public water supply services, Water and wastewater collection services, Water and wastewater treatment services BR Actis LLP 05/09/2013 MA; MA Actis LLP 08/03/2013 15 152 IBO 100% Theolia SA Renewable energy manufacturer FR Macquarie Infrastructure and Real Assets (Europe) Ltd 08/07/2013 16 136 Acquisition 100% Acea SpA's 31 Italy-based solar power plants in Puglia, Campania, and Lazio Solar power electricity producer IT Mediocredito Italiano SpA 03/01/2013 17 135 Minority stake ReNew Wind Power Pvt Ltd Wind power generator IN Goldman Sachs Private Equity Group 05/06/2013 18 96 Minority stake EC&R Panther Creek Wind Farm I&II LLC Wind farm operator US JPM Capital Corporation 12/12/2013 19 90 IBO 50% Braes of Doune Wind Farm (Scotland) Ltd Renewable electricity generation GB Hermes GPE LLP 31/05/2013 20 80 Minority stake SolaireDirect SA Solar electricity panels installation services, Solar electricity panels manufacturer, Solar powered parks operator FR BlackRock Inc.; J&J Group; Old Mutual Investment Group SA (Pty) Ltd; KGAL GmbH & Co. KG 18/06/2013 Page 5

1: PE, VC and DC Target countries by volume: private equity, venture capital and development capital deals Target countries by value: private equity, venture capital and development capital deals Target country 2011 2012 2013 Target country 2011 2012 2013 US 169 132 101 UK 35 27 29 Canada 19 13 17 Germany 20 15 16 France 12 11 13 India 9 11 12 Spain 10 4 10 Italy 12 12 9 Finland 3 4 6 Netherlands 3 7 6 Israel 5 3 5 Sweden 10 3 5 Switzerland 1 2 4 Belgium 7 3 4 China 9 5 4 Brazil 4 1 3 Russia 0 1 2 Ireland 1 3 2 Portugal 2 1 2 Australia 4 3 2 US 4,036 6,508 3,121 Spain 2,067 18 1,487 France 513 40 850 UK 400 3,247 693 Russia 0 0 600 Brazil 366 600 463 India 110 113 267 Canada 2,458 98 187 Italy 35 216 164 Morocco 0 0 164 Belgium 30 48 119 Australia 28 753 56 Israel 81 16 35 Sweden 489 57 34 Austria 38 0 31 Switzerland 0 133 28 China 357 124 18 Greece 0 0 14 Netherlands 0 16 10 Germany 82 1,385 9 Page 6

1: PE, VC and DC Private equity, venture capital and development capital investors Company name Number of deals Number with consideration Total deal value Average deal value 1 Triton Advisers Ltd 1 1 1,404 1,404 2 AEA Investors LP 1 1 862 862 3 Tempest Capital AG 1 1 600 600 4 Bridgepoint Advisers Ltd 1 1 590 590 5 EQT Partners AB 1 1 465 465 6 Energy Capital Partners LLC 1 1 378 378 7 Actis LLP 3 2 333 166 8 BNDES Participações SA 1 1 294 294 9 Sentinel Capital Partners LLC 1 1 258 258 10 Greencoat Capital LLP 1 1 219 219 11 Google Inc. 1 1 200 200 12 Macquarie Infrastructure and Real Assets (Europe) Ltd 2 2 199 99 13 EIG Global Energy Partners LLC 1 1 182 182 14 UK Green Investment Bank plc 1 1 174 174 15 Mediocredito Italiano SpA 1 1 136 136 16 Goldman Sachs Private Equity Group 1 1 135 135 17 BlackRock Inc. 3 2 119 60 18 Kleiner Perkins Caufield & Byers 5 4 115 29 19 Google Ventures 2 2 106 53 20 JPM Capital Corporation 1 1 96 96 Page 7

2: Mergers, Acquisitions, Joint Ventures Cleantech M&A value also lowest for six years In the same way that PE, VC and DC investment value weakened, the value of M&A targeting global cleantech companies in 2013 also slipped to its lowest level in the last six years under review. Transactions worth a collective USD 85,857 million were recorded during the 12 months, which, despite only being 1 per cent lower than USD 86,796 million in 2012, was down two-thirds on the six-year high of USD 127,350 million in 2008. Meanwhile, volume actually increased by 6 per cent year-over-year from 2,152 deals in 2012 to 2,271. Given value was down, this suggests that individual company valuations were slightly lower during 2013. Deals by volume and value Announced date No of deals Total deal value 2013 2,271 85,857 2012 2,152 86,796 2011 2,387 103,143 2010 2,419 93,292 2009 2,504 120,388 2008 2,239 127,350 Top two deals account for a fifth of overall value While deal valuations may have been fractionally down on 2012, there were still two sizeable transactions announced during the year under review. Highest of these was MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway, agreeing to acquire Nevada-based fossil fuel power producer NV Energy for an enterprise value of around USD 10,000 million. This was followed at number two by US group Applied Materials acquiring Japan s Tokyo Electron in a share swap worth USD 9,299 million, in a deal that will combine the world s number one and number three manufacturers of chip-making gear. With a collective value of USD 19,299 million, these two deals account for 23 per cent of the overall value of M&A targeting cleantech companies in 2013. Page 8

2: Mergers, Acquisitions, Joint Ventures Deals by volume and value 140,000 2,600 120,000 2,500 Deal value 100,000 80,000 60,000 40,000 2,400 2,300 2,200 2,100 20,000 2,000 0 2008 2009 2010 2011 2012 2013 1,900 Total deal value Number of deals Page 9

2: Mergers, Acquisitions, Joint Ventures Top 20 deals by value Deal value Deal type Target Target business description Target country Acquiror Announced date 1 10,000 Acquisition 100% NV Energy Inc. Electricity distribution services holding company, Electricity transmission services holding company, Fossil fuel electricity production services holding company, Natural gas storage services holding company 2 9,299 Acquisition 100% Tokyo Electron Ltd Semiconductor and electronic component manufacturing machinery supplier, Semiconductor, FPD, solar panel, information and communication equipment and electronic component manufacturing machinery manufacturer 3 2,430 Acquisition 85% Longtan Hydropower Development Co., Ltd Hydropower generation services, Hydropower project investment services 4 1,855 Acquisition Intercast Europe Srl; Transitions Optical Inc. Non-prescription optical resin solar filters manufacturer; Photo chromic lenses manufacturer 5 1,404 IBO 100% Befesa Medio Ambiente SA Aluminium alloy producer holding company, Aluminium alloy wholesaler holding company, Environmental services holding company, Industrial waste recovery and recycling services holding company, Waste treatment services holding company, Water infrastructure construction services holding company, Water supply technology developer holding company 6 1,300 Acquisition Ekibastuzskaya GRES-1 TOO; Kazgidro TOO Coal powered electricity production services; Architectural activities for hydropower plants and hydro technical projects service provider, Engineering of hydropower plants and hydro technical projects service provider 7 1,279 Minority stake 27% Sharp Corporation Audiovisual equipment manufacturer, Electric home appliance manufacturer, LED bulb manufacturer, Solar power generation system manufacturer US JP CN MidAmerican Energy Holdings Company Applied Materials Inc. and Tokyo Electron Ltd's new holding company Guangxi Guiguan Electric Power Co., Ltd 29/05/2013 24/09/2013 05/02/2013 IT; US Essilor International SA 29/07/2013 ES Triton Advisers Ltd 18/04/2013 KZ; KZ Samruk-Energo AO 09/12/2013 JP 18/09/2013 8 1,264 Acquisition 100% AVR Afvalverwerking BV Energy from waste producer, Waste processing services NL First NL Limited BV 17/06/2013 9 900 Acquisition 100% PPL Montana LLC's 11 hydroelectric facilities Hydroelectric power generation services US NorthWestern Corporation 26/09/2013 10 862 IBO 100% Siemens Water Technologies Corporation's municipal, industrial and services water and wastewater treatment operations and assets Waste management services US AEA Investors LP 06/11/2013 Page 10

2: Mergers, Acquisitions, Joint Ventures Top 20 deals by value Deal value Deal type Target Target business description Target country Acquiror Announced date 11 771 Minority stake 26% Kraftgården AB Hydropower plant operator SE Voimapiha AB 27/06/2013 12 765 Acquisition Fujian Hongshan Thermoelectricity Co., Ltd; Fujian Funeng New Energy Co., Ltd; Fujian Jinjiang Natural Gas Power Generation Co., Ltd Electricity distributor, Steam supply services, Thermoelectricity generator; Wind power plant operator, Wind power project construction services; Gas power generator 13 762 Acquisition 100% Power-One Inc. Solar power electronic component manufacturer, Solar power electronic component wholesaler, Solar power inverters and conversion products manufacturer, Solar power inverters and conversion products wholesaler 14 708 Minority stake 39% Abengoa SA Aluminium and zinc recycling services, Biofuel manufacturer, Biofuel wholesaler, Energy and agricultural sector nformation systems manufacturer, Energy infrastructure construction services, Energy technology developer, Energy, water and IT sector engineering services, Industrial waste management services, Information systems installation services, Information systems manufacturer, Solar power, biofuels and thermal energy producer, Water treatment services 15 692 Minority stake 7% EDP Energias de Portugal SA Electricity and energy trading services, Electricity distribution services, Electricity production services, Natural gas distribution services, Natural gas transportation services, Renewable energy production services 16 652 Minority stake 18% Tebian Electric Apparatus Stock Co., Ltd Electric wires manufacturer, Solar power-used electronic equipment manufacturer, Transformers manufacturer 17 617 Acquisition 100% Rothsay Biodiesel products manufacturer, Biodiesel products wholesaler, Edible and inedible animal by-products recycling services, Recycled edible and inedible animal by-products wholesaler 18 600 Minority stake 20% Russkaya Mednaya Kompaniya ZAO Accounting, bookkeeping and auditing services, Copper cathode and rod products manufacturer, Copper production services holding company, Iron-and-steel and non-ferrous waste wholesaler holding company, Legal services, Metal scrap wholesaler holding company CN: CN; CN Fujian Nanfang Textile Co., Ltd 31/10/2013 US ABB Ltd 22/04/2013 ES Qualified investors 07/10/2013 PT Oppidum Capital SL 05/03/2013 CN 30/07/2013 CA Darling International Inc. 23/08/2013 RU Tempest Capital AG 15/02/2013 19 590 IBO majority stake The Flexitallic Group Seal manufacturer holding company FR Bridgepoint Advisers Ltd 06/05/2013 20 587 Minority stake Enbridge Inc. Crude oil distribution services, Crude oil transportation services, Natural gas distribution services, Natural gas transportation services CA 04/04/2013 Page 11

2: Mergers, Acquisitions, Joint Ventures Target countries by volume Target countries by value Target country 2011 2012 2013 Target country 2011 2012 2013 US 423 363 320 China 369 174 252 UK 182 151 183 Bulgaria 5 13 129 Canada 136 131 113 Australia 128 126 107 Germany 112 101 99 Spain 97 92 89 Japan 45 79 87 South Korea 117 109 80 Italy 91 101 80 Norway 34 36 53 India 43 37 43 Sweden 32 46 43 France 47 47 42 Malaysia 31 35 41 Poland 26 50 39 Finland 31 33 32 Taiwan 37 29 28 Belgium 24 31 28 US 23,547 24,173 20,648 Japan 1,367 14,868 12,755 China 14,712 7,615 11,233 Italy 2,956 3,530 4,527 Spain 8,250 1,664 3,784 UK 3,808 6,736 3,412 Canada 8,868 3,941 3,202 France 3,389 664 2,660 Cayman Islands 833 940 2,024 South Korea 2,269 3,525 1,997 Portugal 4,138 130 1,699 Bermuda 746 1,470 1,650 Australia 1,398 1,637 1,497 Netherlands 92 27 1,332 Kazakhstan 0 0 1,300 Germany 3,306 3,037 1,113 Hong Kong 589 1,146 1,068 Russia 610 77 978 Sweden 1,523 192 958 Brazil 2,863 2,581 952 Page 12

2: Mergers, Acquisitions, Joint Ventures Top 20 financial advisors Financial advisor Number of deals Number with consideration Total deal value Average deal value 1 Goldman Sachs Group Inc. 3 3 10,439 3,480 2 Lazard 2 2 10,145 5,072 3 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd 3 2 9,410 4,705 4 Credit Suisse 4 4 3,618 904 5 Rothschild 11 6 2,609 435 6 CITIC Securities Co., Ltd 1 1 2,430 2,430 7 Citigroup Inc. 2 2 1,548 774 8 Ernst & Young 4 3 1,303 434 9 HSBC Bank 1 1 1,264 1,264 10 Morgan Stanley 5 4 1,135 284 11 Société Générale 5 4 1,133 283 12 RBC Capital Markets Corporation 2 2 1,120 560 13 UBS 2 2 1,002 501 14 PricewaterhouseCoopers - Corporate Finance 9 5 996 199 15 Bank of America Corporation 1 1 900 900 16 Blackstone Advisory Partners LP 1 1 900 900 17 Industrial Securities Co., Ltd 2 2 840 420 18 KPMG Corporate Finance 6 3 730 243 19 BMO Capital Markets Corporation 1 1 617 617 20 Leonardo & Co. SAS 2 2 593 296 Page 13

3: IPOs Cleantech IPO values bounce back After falling to their lowest level in six years in 2012, the value of cleantech initial public offerings (IPO) market rebounded in 2013 to halt a consecutive two-year decline, while volume weakened year-on-year. There were 36 IPOs worth an aggregate USD 3,214 million during the 12 months under review, compared to 43 worth USD 1,470 million in 2012. In monetary terms this represents a three-digit percentage increase, but in terms of volume the result was 16 per cent lower year-over-year and the third decline in a row. IPOs by volume and value Announced date No of deals 2013 36 3,214 2012 43 1,470 2011 69 5,495 Total deal value 2010 81 11,765 2009 38 5,423 2008 55 20,851 Page 14

3: IPOs Top five 2013 IPOs Target name China Conch Venture Holdings Ltd The Renewables Infrastructure Group Ltd Pattern Energy Group Inc. Greencoat UK Wind plc Infinis Energy plc Deal value 463 462 405 394 377 Deal type Planned IPO 15% on SEHK IPO 100% on LSE IPO on Nasdaq IPO on LSE IPO 30% on LSE Target country KY GB US GB GB Target business Diversified holding company, Energy preservation and environment-friendly engineering solution servicing holding company, Green building materials distribution holding company, Marine handling services holding company Closed-ended investment trust Wind power production services Closed-ended infrastructure investment company Announced date 09/12/2013 05/07/2013 09/08/2013 19/02/2013 04/11/2013 Gas-to-electricity and renewable energy generation services Deal status Pending Completed Completed Completed Completed Page 15

Notes to editors The search criteria uses a key word system based on the targets business description The key words and phrases are: alternative energy OR alternative power OR biomass OR bioenergy OR bio energy OR bio-energy OR biofuel OR fuel cell OR hydrogen OR photovoltaic OR renewable energy OR reuseable energy OR re-usable energy OR solar OR waste to energy OR wind power OR wind farm OR wave power OR geothermal OR geothermal OR hydropower OR hydro-power OR bio-diesel OR biodiesel OR energy resource management OR electric vehicle OR water purification OR intelligent power OR air quality OR energy efficiency OR thin film energy OR thin-film energy OR energy efficiency software OR energy storage OR battery power OR water treatment OR waste management OR biogas OR anaerobic digestion OR wastewater OR green construction OR green buildings OR smart meter OR smart grid OR energy monitoring OR marine energy OR solar thermal OR algae OR green energy OR cleantech OR clean tech OR environmental technology OR greentech OR charging station OR green infrastructure OR clean energy OR tidal power OR tidal energy OR biodegradable OR alternative fuel Activity is based on the activity of the target company Deal status is announced, completed, pending or unconditional Page 16