Q2.15: Cleantech and Renewable Energy Investment Review

Q2.15: Cleantech and Renewable Energy Investment Review

02 Welcome to Taylor Wessing s analysis of clean energy investment activity in Europe in the second quarter of 2015 (Q2.15). Total investment in Europe s clean energy sector, defined as the sum of project finance, public markets, venture capital and private equity, totalled $16.6 billion in Q2.15. This represents an 8% increase on the $15.3 billion invested in Q1.15 and a 23% increase on the $13.5 billion invested in the corresponding quarter in 2014. Project finance totalled $15.9 billion in Q2.15, a 24% annual increase. This was caused by a small number of large offshore wind farms reaching financial close - Race Bank ($2.6 billion), Veja Mate ($2.1 billion), Rampion ($2.0 billion) and Nordergründe ($452 million). Despite the surge in the value of project finance, the number of deals declined 30% annually to only 115 transactions in Q2.15. Clean energy companies raised $568 million on the European public markets in Q2.15 through a mixture of IPOs, secondaries and convertible note issuances. This represents a 40% decrease on the $952 million secured the previous quarter but more than double the $215 million secured in the corresponding period in 2014. The most notable deal was the $429 million IPO of Wacker Chemie s wafer subsidiary Siltronic on the Frankfurt Stock Exchange. Yieldcos were unusually quiet in Q2.15, only securing $72 million through secondary offerings of Foresight Solar Fund and The Renewables Energy Infrastructure Group. The previous quarter yieldcos secured $379 million through a series of secondary offerings. Venture capital and private equity investment totalled $140 million in Q2.15, a 72% decrease on the $495 million invested in Q2.14. Investment was in fact at its lowest quarterly level during the last five years. The most notable deal was the $31 million Series B financing round for French next generation LED company Aledia SA. M&A activity was also subdued in Q2.15. Some 104 acquisitions valued at $4.5 billion were announced in Q2.15, a 30% decrease in value on Q2.14. The number of deals was also at a two-year low. The most notable deal was Abengoa Yield s $669 million acquisition of a 450 MW portfolio of solar thermal assets from Abengoa.

Contents Venture Capital and Private Equity... 04 Mergers and Acquisitions... 09 Project and Asset Finance... 12 Public Markets... 17

04 Venture Capital and Private Equity European Venture Capital and Private Equity investment: Q2.13 to Q2.15 ($ million) 800 700 600 50 45 40 35 Private equity (Development capital) Venture capital - Late stage (Series D+) Venture capital - Early growth (Series A to C) Number of deals Deal value ($ million) 500 400 300 30 25 20 Number of deals 15 200 10 100 5 0 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 0 Average quarterly VC/PE investment Q2.13 to Q2.15 ($ million) Venture Capital (early-stage) 150.7 Venture Capital (late-stage) 67.6 Private Equity (development capital) 158.4 Average deal size Q2.13 to Q2.15 ($ million) Venture Capital (early-stage) 5.2 Venture Capital (late-stage) 34.7 Private Equity (development capital) 50.3

05 Venture Capital and Private Equity Q2.15: Top five Venture Capital and Private Equity deals 1 Aledia SA $31 million Country: France Sector: Energy Efficiency Investor: Braemar Energy Ventures, Demeter Partners SA, Sofinnova Partners, IKEA GreenTech AB, CEA Investissement SA, Valeo SA, Bpifrance (Banque Publique d Investissement) 2 CIMV $22 million Country: France Sector: Biofuels Investor: Undisclosed 3 Crocus Technology $21 million Country: France Sector: Advanced Materials & Technologies Investor: IDInvest Partners, Kreos Capital, NanoDimension AG, Sofinnova Partners, Ventech, CEA Investissement SA, RUSNANO, Innovation Ventures 4 Beyond Surface Technologies $20million Country: Switzerland Sector: Advanced Materials & Technologies Investor: Patagonia 5 Evrythng $8 million Country: UK Sector: Energy Efficiency Investor: Cisco Systems Inc., Samsung Venture Investment Corp., Dawn Capital LLP, Atomico Ventures, BHLP LLC

06 Venture Capital and Private Equity European Private Equity buyouts: Q2.13 to Q2.15 7.0 6.0 Deals of over $100 million Deals of under $100 million Number of deals 70 60 5.0 50 Deal value ($ billion) 4.0 3.0 40 30 Number of deals 2.0 20 1.0 10 0.0 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 0 Average private equity buyout investment: Q2.13 to Q2.15 Average quarterly PE buyout volume ($ billion) 3.0 Average number of deals per quarter 45 Average PE buyout transaction value ($ million) 65.6

07 Venture Capital and Private Equity Q2.15: Top five investments by Private Equity funds, infrastructure funds and institutional investors. 1 Abengoa SA s solar thermal portfolio (450MW) Country: Spain Investor: Abengoa Yield plc 2 Fred. Olsen Renewables onshore wind portfolio (433MW) Country: UK Investor: The Renewables Infrastructure Group Ltd. (TRIG) $669 million Sector: Solar $388 million Sector: Wind 3 Michael Henriksen Holding A/S $205 million Country: Denmark Sector: Recycling & Waste Investor: Agilitas Partners 4 PNE WIND UK $141 million Country: UK Sector: Wind Investor: Brookfield Asset Management Inc. 5 Treia and Oria solar plants (29.1MW) $113 million Country: Italy Sector: Solar Investor: Capital Stage AG Note: This table includes investments by institutional investors

08 Venture Capital and Private Equity European Venture Capital investment by sector Solar Q2.15 Green Transportation Q1.15 Q2.14 Biofuels Advanced Materials & Technologies Energy Efficiency 0 50 100 150 200 250 300 Deal value ($ million) European Venture Capital investment by country Q2.15 Germany Q1.15 Q2.14 UK Switzerland France 0 50 100 150 200 250 Deal value ($ million)

09 Mergers and Acquisitions European M&A activity: Q2.13 to Q2.15 12.0 Deals of over $500 million Deals of under $500 million Number of deals 180 10.0 160 140 8.0 120 Deal value ($ billion) 6.0 100 80 Number of deals 4.0 60 2.0 40 20 0.0 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15 0 Clean Energy Pipeline calculates M&A activity based on announced transactions within each quarter. Average M&A investment: Q2.13 to Q2.15 Average quarterly M&A deal volume ($ billion) 6.3 Average number of deals per quarter 130 Average M&A transaction value ($ million) 48.5

10 Mergers and Acquisitions European M&A activity by sector Energy Storage Biomass Recycling & Waste Q2.15 Q1.15 Q2.14 Solar Wind 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Deal value ($ billion) European M&A activity by country Italy Q2.15 Q1.15 Q2.14 Germany France Spain UK 0 0.5 1.0 1.5 2.0 2.5 3.0 Deal value ($ billion)

11 Mergers and Acquisitions Q2.15: Top five European M&A transactions 1 Target: Abengoa SA s solar thermal portfolio (450MW) Acquirer: Abengoa Yield plc Country: Spain $669 million Sector: Solar 2 Target: Fred. Olsen Renewables onshore wind portfolio (433MW) Acquirer: The Renewables Infrastructure Group Ltd. Country: UK $388 million Sector: Wind 3 Target: Gecal SA Acquirer: Gas Natural SDG SA Country: Spain $295 million Sector: Wind 4 Target: Michael Henriksen Holding A/S Acquirer: Agilitas Partners Country: Denmark $205 million Sector: Recycling & Waste 5 Target: PNE WIND UK Acquirer: Brookfield Asset Management Inc. Country: UK $160 million Sector: Wind * The deal value is estimated by Clean Energy Pipeline

12 Project and Asset Finance European Project Finance deal volume: Q2.13 to Q2.15 20 18 16 Northern Europe Central & Eastern Europe Southern Europe Western Europe 14 Deal value ($ billion) 12 10 8 6 4 2 0 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Q3.14 Q4.14 Q1.15 Q2.15

13 Project and Asset Finance European Project Finance - Top five countries Q2.14 Total: $4.9 billion Italy 22% Spain 0% France 6% UK 42% Germany 30% Q1.15 Total: $11.2 billion Italy 11% Spain <1% France 2% Germany 24% UK 63% Q2.15 Italy 3% France 5% Spain 0% Total: $12.1 billion Germany 27% UK 65%

14 Project and Asset Finance European Project Finance - Top sectors Q2.14 Total: $12.4 billion Biomass 13% Solar PV 16% Onshore wind 38% Offshore wind 33% Q1.15 Total: $13.2 billion Biomass 18% Solar PV 32% Onshore wind 25% Offshore wind 25% Q2.15 Total: $14.1 billion Biomass 4% Solar PV 8% Offshore wind 55% Onshore wind 33%

15 Project and Asset Finance Q2.15: Top five European Project Finance transactions 1 UK - Offshore wind $2,600.0 million Project Race Bank (580MW) Equity Provider Debt Provider - DONG Energy A/S 2 GERMANY - Offshore wind $2,108.0 million Project Veja Mate (400MW) Equity Provider Siemens Financial Services / Copenhagen Infrastructure Partners / Highland Group Holdings Debt Provider Deutsche Bank / KfW Bankengruppe / Natixis / Banco Santander / Commerzbank / Sumitomo Mitsui Banking Corporation / Eksport Kredit Fonden 3 UK - Offshore wind $2,044.0 million Project Rampion (400MW) Equity Provider Debt Provider - E.ON Climate & Renewables / UK Green Investment Bank 4 TURKEY - Geothermal $970.0 million Project Efeler (123.3MW) Equity Provider Debt Provider Guris Holding. European Bank for Reconstruction and Development / Black Sea Trade and Development Bank / Turkiye Is Bankasi / Turkiye Sinai Kalkinma Bankasi 5 UK - Onshore wind $613.0 million Project Kilgallioch (239MW) Equity Provider Debt Provider - Scottish Power Renewables

16 Project and Asset Finance Q2.15: European Project Finance by sector as a percentage of total deal volume / total number of deals Wind Solar Biomass % of total deal value % of total numbers of deals Energy Efficiency Other 0 20% 40% 60% 80% 100%

17 Public Markets Quarterly breakdown - Number of public market deals: Q2.13 to Q2.15 Quarterly breakdown - number of public market deals (2Q13 to 2Q15) 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 5 Deals 9 Deals 11 Deals 6 Deals 11 Deals 12 Deals 9 Deals 7 Deals Quarterly breakdown - number of public market deals (2Q13 to 2Q15) Quarterly breakdown - public markets activity as a percentage of total amount raised (2Q13 to 2Q15) 3Q13 3Q13 4Q13 4Q13 1Q14 1Q14 2Q14 5 Deals 9 Deals 11 Deals 6 Deals 11% 14% 23% 2Q14 3Q14 11 Deals 3% 3Q14 13% 4Q14 4Q14 1Q15 1Q15 2Q15 2Q15 12 Deals 9 Deals 7 Deals 14% 13% 8% Quarterly breakdown - Analysis - public of markets percentage activity contribution as a percentage of total of funds total raised: amount Q2.13 raised to (2Q13 Q2.15to 2Q15) 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 11% 14% 23% 3% 13% 14% 13% 8% Please note: No European clean energy companies raised funds on the public markets in Q2.13

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