Q2.14: Cleantech and Renewable Energy Investment Review

Q2.14: Cleantech and Renewable Energy Investment Review

2 Welcome to Taylor Wessing s analysis of clean energy investment activity in Europe in the second quarter of 214. Following a bumper first quarter of the year, total investment, defined as the sum of project finance, public markets, venture capital and private equity investment, returned to normal levels in Q2.14 ($12.6 billion). In total, $31.2 billion was invested in the first half of 214, only 31% below the $45. billion invested during the entirety of 213. Barring a major decline in investment in the second half of the year, 214 will be an upyear for European clean energy investment. Clean energy project finance totalled $12.2 billion in Q2.14, a 25% decrease on the $16.3 billion invested in Q1.14 but a 33% increase on the $9.2 billion invested in the corresponding period last year. Despite the quarterly increase, project finance was still 6% above the quarterly average during the past two years ($11.5 billion). Project finance in Q2.14 was boosted by the Eur2.8 billion ($3.8 billion) project finance deal structured for the 6 MW Gemini offshore wind farm in the Netherlands. The deal, which is the largest ever non-recourse project finance transaction for a single asset tracked by Clean Energy Pipeline, accounted for just under a third of total project finance in Europe in Q2.14. Venture capital and private equity investment in European clean energy companies slumped to $252 billion in Q2.14, less than half the $642 million invested in Q1.14. That said, Q1.14 represented one of the largest ever quarters for European clean energy investment, owing largely to two major investments in solar companies, most notably Gothaer Versicherungen s $25 million investment in Juwi Renewable IPP. Indeed investment in Q2.14 was ahead of the $239 million invested in the corresponding quarter last year. The one asset class to hit a major bump in the road was public markets European clean energy companies only raised $21 million on the public markets in Q2.14, compared with $1.6 billion in the previous quarter. The huge decrease was a direct result of a lack of YieldCo fundraising activity, which has propped up public market deal activity in Europe during the past 18 months. NextEnergy Solar Fund s $118 million IPO on the London Stock Exchange was the only YieldCo deal in Q2.14. Last quarter, four separate YieldCos raised $4 million through a mixture of IPOs and secondary offerings. M&A activity was particularly robust in Q2.14 some 131 deals valued at a combined $5.7 billion were announced in Q2.14, a 14% increase in value compared to the 11 deals totalling $5 billion that were announced the previous quarter. The most notable deal was GE s announced acquisition of Alstom s renewable, thermal and grid business. The total size of the deal is $16.9 billion, although Clean Energy Pipeline estimates that the purchase price for the renewable energy business is c.$2.1 billion.

Contents Venture Capital and Private Equity... 4 Mergers and Acquisitions... 9 Project and Asset Finance... 12 Public Markets... 17

4 Venture Capital and Private Equity European Venture Capital and Private Equity Investment: Q2.12 to Q2.14 7 6 5 45 4 35 3 Private equity (Development capital) Venture capital - Late stage (Series D+) Venture capital - Early growth (Series A to C) Number of deals Deal value ($ billion) 4 3 2 25 2 15 1 Number of deals 1 5 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q4.13 Q1.14 Q2.14 Average Quarterly VC/PE Investment Q2.12 to Q2.14 ($ million) Venture Capital (early-stage) 133.9 Venture Capital (late-stage) 32.4 Private Equity (development capital) 137.8 Average deal size Q2.12 to Q2.14 ($ million) Venture Capital (early-stage) 4.6 Venture Capital (late-stage) 18.5 Private Equity (development capital) 49.2

5 Venture Capital and Private Equity Q2.14: Top 1 Venture Capital Deals Company Sector Country Deal value ($ million) Avantium Technologies BV Investor(s) Biofuels Netherlands 5. Aescap Venture Management BV / Capricorn Venture Partners NV / Navitas Capital / ING Corporate Investments / Aster Capital SA / Sofinnova Partners / De Hoge Dennen Capital PE BV / The Coca- Cola Company / Swire Pacific Ltd. / Groupe Danone / ALPLA Nenuphar Wind France 2.7 IDInvest Partners / AREVA SA / Bpifrance (Banque Publique d'investissement) Nujira Ltd. Energy Efficiency UK 2. Amadeus Capital Partners Ltd. / NES Partners (New Energy Solutions Management ApS) / Environmental Technologies Fund LP / BankInvest Group / GAM Fund Management Limited / Investec plc / Climate Change Capital Ltd. / SAM Private Equity AG Oxitec Ltd. Agriculture UK 1.2 East Hill Management LLC / University of Oxford / Oxford Capital Partners Ltd. Cylon Controls Ltd. Energy Efficiency Ireland 9.5 ESB Novusmodus / Greencoat Capital LLP (f.k.a. Novusmodus LLP) Leosphere Inc. Wind France 9.5 Electranova Capital Sunpartner Technologies Mcor Technologies Ltd. GreenStream Network Plc Solar France 9.3 Credit Agricole SA / Eurowatt / Davaniere Capital Partenaire / Sigma Gestion Other cleantech products & services Environmental Services & Remediation Ireland 9. WHEB Partners Finland 4.9 Finnfund Amoéba SAS Amoéba SAS France 4.2 CM-CIC Private Equity / Siparex Ventures / Rhone-Alpes Création / Evolem / Eurekap!

6 Venture Capital and Private Equity European Private Equity Buyouts: Q2.12 to Q2.14 7 6 Deals of over $1 million Deals of under $1 million Number of deals 7 6 5 5 Deal value ($ billion) 4 3 4 3 Number of deals 2 2 1 1 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q4.13 Q1.14 Q2.14 Average Private Equity Buyout Investment: Q2.12 to Q2.14 Average Quarterly PE Buyout Volume ($ billion) 2.7 Average Number of Deals per Quarter 31 Average PE Buyout transaction value ($ million) 66

7 Venture Capital and Private Equity Q2.14: Top five investments by Private Equity funds, infrastructure funds and institutional investors. 1 Marius Pedersen AS $326.6 million Country: Czech Republic Sector: Recycling & Waste Investor: Entreprenør Marius Pedersens Fond (Marius Pedersen Foundation) 2 Wind farm (24MW) - Maerdy $89.9 million Country: UK Sector: Wind Investor: Greencoat UK Wind 3 Wind farm (18.4MW) - Kildrummy, UK $73.6 million Country: UK Sector: Wind Investor: Greencoat UK Wind 4 Ballast Phoenix Ltd. $46.7 million Country: UK Sector: Recycling & Waste Investor: H2 Equity Partners 5 Solar plant (17.5MW) - Hertfordshire $32.2 million Country: UK Sector: Solar Investor: Bluefield Solar Income Fund Ltd Note: This table includes investments by institutional investors

8 Venture Capital and Private Equity European Venture Capital Investment by Sector Solar Biofuels 5.6 Q2.13 Q1.14 Q2.14 Energy Efficiency Wind Green Transportation 1.3 5 1 15 2 25 3 35 4 45 Deal value ($ million) European Venture Capital Investment by Country Q2.13 UK Q1.14 Q2.14 France 6.4 Netherlands Ireland 2.7 Germany 6.1 5 1 15 2 25 Deal value ($ million)

9 Mergers and Acquisitions European M&A Activity: Q2.12 to Q2.14 12 Deals of over $5 million Deals of under $5 million Number of deals 14 1 12 8 1 Deal value ($ billion) 6 8 6 Number of deals 4 4 2 2 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q4.13 Q1.14 Q2.14 Clean Energy Pipeline calculates M&A activity based on announced transactions within each quarter. Average M&A Investment: Q2.12 to Q2.14 Average Quarterly M&A Deal Volume ($ billion) 5.6 Average number of deals per quarter 111 Average M&A transaction value ($ million) 5.

1 Mergers and Acquisitions European M&A Activity by Sector Wind Solar Q2.13 Q1.14 Recycle & Waste Q2.14 Hydro Energy Efficiency..5 1. 1.5 2. 2.5 3. 3.5 4. 4.5 Deal value ($ billion) European M&A Activity by Country France Italy Q2.13 Q1.14 Q2.14 UK Germany Finland..5 1. 1.5 2. 2.5 3. 3.5 4. 4.5 5. 5.5 Deal value ($ billion)

11 Mergers and Acquisitions Q2.14: Top five European M&A Transactions 1 Target: Alstom Power SA (renewables business) Acquirer: General Electric Company Country: France Sector: Wind $2,1 million* 2 Target: Marius Pedersen AS Acquirer: Entreprenør Marius Pedersens Fond (Marius Pedersen Foundation) Country: Czech Republic Sector: Recycling & Waste $326.6 million 3 Target: Hydro plant (76MW) - Harjavalta, Hydro plant (2MW) - Koivukoski, Hydro plant (45MW) - Kolsi, Hydro plant (9MW) - Korkeakoski Acquirer: Oulun Energia, Vantaan Energia Oy, Turku Energia Sähköverkot Oy, Pori Energia Oy, Oulun Seudun Sähkö Country: Finland Sector: Hydro $325.8 million 4 Target: Wind farm (24MW) - Maerdy Acquirer: Greencoat UK Wind Country: UK Sector: Wind $89.9 million 5 Target: Wind farm (18.4MW) - Kildrummy, UK Acquirer: Greencoat UK Wind Country: UK Sector: Wind $73.6 million * The deal value is estimated by Clean Energy Pipeline

12 Project and Asset Finance European Project Finance Deal Volume: Q2.12 to Q2.14 16 Northern Europe Central & Eastern Europe 14 Southern Europe Western Europe 12 Deal value ($ billion) 1 8 6 4 2 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q4.13 Q1.14 Q2.14

13 Project and Asset Finance Q2.14 : European Project Finance by Sector as a Percentage of Total Deal Volume / Total Number of Deals Wind Solar Biomass Water & Waste Water Treatment % of total deal value % of total numbers of deals Hyrdo Geothermal Other Energy Storage % 5 1 15 2 25 3 35 4 45 5 55 6 65 7 Percentage (%)

14 Project and Asset Finance European Project Finance - Top Five Countries Q2.13 Total: $6.1 billion Spain 8% Italy 8% France 15% Germany 36% UK 33% France 8% Italy 6% Spain 1% Total: $12.8 billion Germany 42% UK 43% Q4.14 Total: $4.3 billion France 2% Italy 5% Germany 46% UK 29%

15 Project and Asset Finance European Project Finance - Top Sectors Q2.13 Solar PV 17% Solar thermal 3% Total: $8.8 billion Onshore wind 4% Offshore wind 19% Biomass 21% Total: $15.5 billion Solar (PV) 8% Onshore wind 32% Offshore wind 29% Biomass 31% Q4.13 Total: $11.8 billion Solar PV 13% Offshore wind 15% Onshore wind 37% Biomass 35%

16 Project and Asset Finance Q2.14 : Top Five European Project Finance Transactions 1 NETHERLANDS - Offshore wind $3,845. million Project Wind farm (6MW) - Gemini (Buitengaats & ZeeEnergie) Developer Northland Power Inc. / Siemens Financial Services Ltd. (inlcd. Siemens Bank) / Van Oord NV / HVC Group Equity Provider Northland Power Inc. / Siemens Financial Services / Van Oord NV / HVC Group Debt Provider Deutsche Bank AG / European Investment Bank / Export Development Canada / Natixis SA / ABN AMRO Bank NV / Banco Santander SA / BNP Paribas SA / La Caixa d Estalvis i Pensions de Barcelona / Mitsubishi UFJ Financial Group / Sumitomo Mitsui Banking Corp. / Eksport Kredit Fonden / Euler Hermes / CIBC World Markets Inc. / Bank Nederlandse Gemeenten / BMO Financial Group / Delcredere / Ducroire 2 SWEDEN - Biomass $735.6 million Project Biomass plant (13MW) - Vartan, Stockholm Developer Equity Provider Debt Provider Fortum Oyj Fortum Oyj European Investment Bank / Nordic Investment Bank 3 UK - Onshore wind $335.2 million Project Wind farm (99MW) - Dunmaglass Developer Equity Provider Debt Provider - SSE plc SSE plc 4 DENMARK - Biomass $328.4 million Project Biomass plant - Skærbæk Power Station Developer Equity Provider Debt Provider - DONG Energy A/S DONG Energy A/S / TVIS 5 ROMANIA - Onshore wind $275.4 million Project Wind farm (18MW) - Crucea North, Dobrogea Developer Equity Provider Debt Provider STEAG GmbH STEAG GmbH European Bank for Reconstruction and Development / Erste Group Bank AG / Banca Comerciala Romana

17 Public Markets Quarterly Breakdown Number of Public Market Deals (Q2.12 to Q2.14) Quarterly breakdown - number of public market deals (2Q12 to 2Q14) Q2.12 Q3.12 Q1.13 Q4.13 Q1.14 Q2.14 2 Deals 5 Deals 3 Deals 5 Deals 9 Deals 1 Deals 5 Deals Quarterly breakdown - number of public market deals (2Q12 to 2Q14) Quarterly breakdown - public markets activity as a percentage of total amount raised (2Q12 to 2Q14) Q2.12 Q3.12 Q2.12 2 Deals 4% 1% Q1.13 Q3.12 Q1.13 Q4.13 Q4.13 5 Deals 3 Deals 5 Deals 1% 19% 24% Q1.14 Q1.14 Q2.14 Q2.14 1 Deals 5 Deals 38% 5% Quarterly Breakdown - Analysis of Percentage Contribution of Total Funds Raised by Quarter between Q2.12 and Q2.14 Quarterly breakdown - public markets activity as a percentage of total amount raised (2Q12 to 2Q14) 9 Deals Q2.12 Q3.12 Q1.13 Q4.13 Q1.14 Q2.14 4% 1% 1% 19% 24% 38% 5%

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