3Q13: Cleantech and Renewable Energy Investment Review

3Q13: Cleantech and Renewable Energy Investment Review

02 Welcome to Taylor Wessing s analysis of clean energy investment activity in the third quarter of 2013. As we review this quarter s investment activity one is reminded of the opening line of Dickens classic novel A Tale of Two Cities It was the best of times, it was the worst of times. Times are certainly tough for young early-stage European clean energy companies. Venture capital and private equity firms only invested $75 million in European clean energy companies (excluding buyouts) in 3Q13, 70% below the $246 million invested in 2Q13 and 75% below the $296 million invested in the corresponding period in 2012. In fact, venture capital and private equity investment is now at a two-year low. In complete contrast, the volume of capital raised by European clean energy companies on the public markets reached a two-year high in 3Q13. Some $684 million was secured through three IPOs, the two most notable deals being clean energy infrastructure funds, The Renewables Infrastructure Group (TRIG) and Bluefield Solar Income Fund, which secured $461 million and $197 million respectively through IPOs in 3Q13. We expect this trend to continue. For example UK asset manager Foresight Group has launched a $320 million IPO of its solar infrastructure fund, which will likely be completed before the end of the year. Project financing rebounded to $6.7 billion in 3Q13, a 46% increase on the $4.6 billion recorded in 2Q13. This is primarily due to Northland Power s commitment to invest $400 million mezzanine debt and equity financing in the 600 MW Gemini offshore wind farm located in the Netherlands and PensionDanmark s and BWSC s $250 million investment in Eco2 s 40 MW biomass plant located in the UK. Despite the quarterly increase, project finance is still 16% below the quarterly average investment volume during the past two years. M&A activity was in line with previous quarters, with 108 acquisitions of clean energy assets announced in 3Q13 compared with 109 in the previous quarter. However the absence of any large transactions resulted in the value of announced deals falling to $2.8 billion in 3Q13, the lowest level in the last two years.

Contents Venture Capital and Private Equity... 04 Mergers and Acquisitions... 10 Project and Asset Finance... 13 Public Markets... 18

04 Venture Capital and Private Equity European Venture Capital and Private Equity Investment: 3Q11 to 3Q13 700 Private equity (development capital) 600 Venture capital - Late stage (Series D+) Venture capital - Early growth (Series A to C) 500 Deal value ($ million) 400 300 200 100 0 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Average Quarterly VC/PE Investment 3Q11 to 3Q13 ($ million) Venture Capital (early-stage) 135.2 Venture Capital (late-stage) 24.0 Private Equity (development capital) 143.5 Average deal size 3Q11 to 3Q13 ($ million) Venture Capital (early-stage) 5.0 Venture Capital (late-stage) 12.1 Private Equity (development capital) 30.0

05 Venture Capital and Private Equity 3Q13: Top 10 Venture Capital Deals Company Sector Country Deal value ($ million) Fermentalg Advanced Materials & Technologies Investor(s) France 16.0 ACE Management, Demeter Partners, Emertec Gestion, Viveris Management, Bank of the Philippine Islands, IRDI (Institut Regional de Development Industriel de Midi- Pyrenees) TVP Solar SA Solar Switzerland 13.5 Undisclosed Sol Voltaics AB Solar Sweden 9.4 Foundation Asset Management AB, Industrifonden, Nano Future Invest A/S, Umoe AS Aquarius Water Group Water & Waste Water Treatment Switzerland 8.6 Wermuth Asset Management GmbH TVP Solar SA Solar Switzerland 7.1 Undisclosed Biowater Technology AS Sunpartner Group (Wysips and Axiosun) Water & Waste Water Treatment Norway 6.3 Sembcorp Industries, Incitia Ventures, Mallin Venture AS Solar France 2.8 Undisclosed, Starquest Capital, Crédit Agricole Brie Picardie tado GmbH Energy Efficiency Germany 2.6 Target Partners GmbH, Shortcut Ventures Monford Ag Systems Limited Nines Photovoltaics Agriculture Ireland 1.3 Enterprise Ireland, Kernel Management Partners Ltd. Solar Ireland 0.5 Bank of Ireland

06 Venture Capital and Private Equity European Private Equity Buyouts: 3Q11 to 3Q13 7 6 Deals of over $100 million Deals of under $100 million Number of deals 45 40 5 35 30 Deal value ($ billion) 4 3 2 25 20 15 10 Number of deals 1 5 0 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 0 Average Private Equity Buyout Investment: 3Q11 to 3Q13 Average Quarterly PE Buyout Volume ($ billion) 2.34 Average Number of Deals per Quarter 28 Average PE Buyout transaction value ($ million) 84.29

07 Venture Capital and Private Equity 3Q13: Top Five Private Equity Buyouts Solar plant (10MW) - Suelte, Mecklenburg, 1 Solar plant (10MW) - Schwarzheide, Brandenburg, Solar plants (28MW) - Eastern Germany Country: Germany Investor: Wattner AG Solar plant (4.9MW) - Villacidro, Solar 2 plant (996.4kW) - Pischedda, Solar plant (901.6kW) - Ulmos, Solar plant (990kW) - Lula Country: Italy Investor: IKAV Global Energy S.a.r.l. $80.0 million Sector: Solar $38.6 million Sector: Solar 3 Solar plant - Hardingham, Norfolk $26.4 million Country: UK Sector: Solar Investor: Bluefield Partners LLP 4 Solar plants (4MW) - Italy $18.8 million Country: Italy Sector: Solar Investor: Barclays Infrastructure Funds Management Ltd. 5 Solar plant - southeastern England $18.3 million Country: UK Sector: Solar Investor: Bluefield Partners LLP

08 Venture Capital and Private Equity 3Q11 to 3Q13: Top 10 PE Buyouts Project Sector Country Deal value ($ million) ista CeramTec GmbH Veolia Water Central, East and Southeast Wind farms (443MW) - Castilla y Leon province Spain Wind farm (277MW) - Borkum Riffgrund 1 Befesa Medio Ambiente SA E.ON Energy from Waste AG Energy Efficiency Advanced Materials & Technologies Water & Waste Water Treatment Investor(s) Germany 4,070.0 CVC Capital Partners Ltd Germany 1,988.0 Cinven Ltd. UK 1,929.0 Rift Acquisitions Ltd. Wind Spain 879.9 Bridgepoint Capital Wind Germany 836.5 KIRKBI A/S, Oticon Foundation Recycling & Spain 827.1 Triton Partners Waste Biomass Germany 666.8 EQT Partners AB Armacell International GmbH Energy Efficiency Germany 653.6 Charterhouse Capital Partners LLP En+ Group Ltd. Hydro Russia 500.0 VTB Capital plc AkfenHES Yatirimlari ve Enerji Uretim AS Hydro Turkey 467.0 Aquila Capital

09 Venture Capital and Private Equity European Venture Capital Investment by Sector Solar Advanced Materials & Technologies $0 3Q12 2Q13 3Q13 Water & Waste Water Treatment $0 Energy Efficiency Agriculture $0 $0 0 10 20 30 40 50 Deal value ($ million) European Venture Capital Investment by Country Switzerland France $0 $0 3Q12 2Q13 3Q13 Sweden $0 Germany UK $0 0 10 20 30 40 50 Deal value ($ million)

10 Mergers and Acquisitions European M&A Activity: 3Q11 to 3Q13 12000 10000 Deals of over $500 million Deals of under $500 million Number of deals 140 120 8000 100 Deal value ($ billion) 6000 80 60 Number of deals 4000 40 2000 20 0 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 0 Clean Energy Pipeline calculates M&A activity based on announced transactions within each quarter. Average M&A Investment: 3Q11 to 3Q13 Average Quarterly M&A Deal Volume ($ billion) 5.96 Average number of deals per quarter 106 Average M&A transaction value ($ million) 56.03

11 Mergers and Acquisitions European M&A Activity by Sector Solar Wind Energy Efficiency 3Q12 2Q13 3Q13 Biofuels Hydro 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Deal value ($ billion) European M&A Activity by Country Germany UK 3Q12 2Q13 3Q13 Romania France Italy 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Deal value ($ billion)

12 Mergers and Acquisitions 3Q13: Top 5 European M&A Transactions Target: Novaled AG 1 Acquirer: Samsung Group Country: Germany Sector: Energy Efficiency $420.8 million Target: Solar plants (2300MW) - Romania 2 Acquirer: Prime Acquisition Corp. Country: Romania Sector: Solar $380.0 million Target: Mainstream Renewable Power Ltd. 3 Acquirer: Marubeni Corp. Country: Ireland Sector: Solar $132.7 million Target: Argent Energy Ltd. 4 Acquirer: John Swire & Sons (Green Investments) Ltd. Country: UK Sector: Biofuels $122.9 million Target: Wind farm (20MW) - Cotton Farm, Cambridgeshire, Wind farm 5 (10.25MW) - Earls Hall Acquirer: Greencoat UK Wind $112.4 million Country: UK Sector: Wind

13 Project and Asset Finance European Project Finance Deal Volume: 3Q11 to 3Q13 20 18 16 Northern Europe Central & Eastern Europe Southern Europe Western Europe 14 Deal value ($ billion) 12 10 8 6 4 2 0 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

14 Project and Asset Finance 3Q13 : European Project Finance by Sector as a Percentage of Total Deal Volume / Total Number of Deals Wind Solar Biofuels Biomass Energy Efficiency % of total deal volume % of total numbers of deals Hydro Environmental Services & Remediation Marine Energy Storage 0% 0% 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Percentage (%)

15 Project and Asset Finance European Project Finance - Top Five Countries 3Q12 Total: $4.8 billion Italy 6% Spain 3% France 12% UK 54% Germany 25% 2Q13 Total: $2.6 billion Italy 14% France 5% UK 37% Germany 19% 3Q13 Spain 25% Total: $3.8 billion Germany 8% Italy Spain 4% 1% France 13% UK 74%

16 Project and Asset Finance European Project Finance - Top Sectors 3Q12 Biomass 10% Solar Plant (Thermal) 0% Total: $5.7 billion Wind Farm (Off-shore) 24% Solar Plant (PV) 36% 2Q13 Wind Farm (On-shore) 30% Total: $3.7 billion Biomass 6% Solar Plant (Thermal) 6% Wind Farm (On-shore) 54% Solar Plant (PV) 34% 3Q13 Total: $5.9 billion Biomass 8% Solar Plant (PV) 19% Wind Farm (On-shore) 43% Wind Farm (Off-shore) 30%

17 Project and Asset Finance 3Q13 : Top Five European Project Finance Transactions 1 Netherlands - Wind $400.0 million Project Wind farm (600MW) - Gemini (Buitengaats & ZeeEnergie) Developer Equity Provider Van Oord NV Northland Power Inc 2 UK - Biomass $247.0 million Project Biomass plant (40MW) - Brigg Renewable Energy Plant Developer Equity Provider Eco 2 Ltd PensionDanmark A/S / Burmeister and Wain Scandinavian Contractor AS 3 Sweden - Wind $183.5 million Project Wind farm (84.6MW) - Markbygden sub phase Developer Enercon GmbH / Svevind AB Equity Provider Enercon GmbH / Svevind AB Debt Provider Skandinaviska Enskilda Banken AB / KfW IPEX Bank 4 Austria - Energy Efficiency $159.0 million Project Wiener Wohnen Energy Efficiency programme Developer Wiener Wohnen GmbH Debt Provider European Investment Bank 5 France - Wind $156.0 million Project Wind farms (72MW) - Eole Nord de France Developer Siemens Energy AG / EDF Energies Nouvelles Equity Provider Mitsubishi Corp / EDF Energies Nouvelles Debt Provider HSH Nordbank AG / Nord LB

18 Public Markets Quarterly Breakdown - Number of Public Market Deals (3Q11 to 3Q13) 8 Deals 4 Deals 2 Deals 4 Deals 3 Deals 3 Deals 1 Deal No deals in 4Q12 or 2Q13. Quarterly Breakdown - Public Markets Activity as a Percentage of Total Amount Raised (3Q11 to 3Q13) 3Q11 4Q11 1Q12 2Q12 3Q12 1Q13 3Q13 3Q11 4Q11 1Q12 2Q12 3Q12 1Q13 3Q13 16% 2% 5% 28% 44% 2% 2% 0% in 3Q12 and 2Q13. Please note: No European clean energy companies raised funds on the public markets in 4Q12 or 2Q13.

Europe > Middle East > Asia www.taylorwessing.com Taylor Wessing LLP 2013 This publication is intended for general public guidance and to highlight issues. It is not intended to apply to specific circumstances or to constitute legal advice. Taylor Wessing s international offices operate as one firm but are established as distinct legal entities. For further information about our offices and the regulatory regimes that apply to them, please refer to: www.taylorwessing.com/regulatory.html NB_001275_10.13