Sustainable Technology Ventures · The information contained herein is confidential information regarding Sustainable Technology Ventures and its affiliates (the “Manager”). By

Sustainable Technology Ventures

Digitization & New Energy Era

December 2018

© Sustainable Technology Ventures | Proprietary and ConfidentialSustainable Technology Ventures

Sustainable Technology Ventures(subsidiary of Hudson Sustainable Investments)

Israel Government

Agencies

US Strategic Partners (leading utilities, mobility

and industrial companies)

Israel Partners

STV Cleantech Portfolio

RE Initiative – Eilat Region

(Regional promotion)

Ben-GurionUniversity

Israel Strategic Partners

2

STV Has Deep Roots In US & Strong Partnerships In Israel


20142005

$825 Million Exit2006


$2,150 Million Exit2008



Industry-Defining Exit

Pioneering Investments

20122008 2010 2014

Second Largest Sale of Solar Development

Platform

Largest Sale in China’s Environmental

Protection Sector

Manage on behalf of Asian Conglomerate active in China

Early Stage Investor

Exited over 6 years ago

First Flexible Solar Panel Developed

First U.S. Small Hydro Roll-Up

Platform

Leading U.S. Residential Solar

Loan Finance Company

STV Team Investment HighlightsSelect Venture / Growth Investments

Portfolio of Solar Infrastructure

Projects

Sale of Largest Smart Meter Company

Globally

Sale of Stake in Largest Solar Thin

Film Company

Sale of Largest Wind Development

Platform

Leading Wireless Charging Platform

3


Energy and Resource Technology Mega Trends

4

1910-2010

The Industrial Era

2010-2110

The “Smart” Power Era

Grid Parity

Solar is still only 1.5% of global power generation

Digitization 1.0

Technology solutions available to manage the grid

Utility business models under pressure

Coal retirements continue

EVs, Crypto to drive higher power demand

Advancements in Storage, Silicon Carbide

could drive further disruptions

Sector Poised for Significant DisruptionPower Shifting from CC to DDD


Energy and Resource Technology Themes

5

Growth of distributed generation

Increasingly effective solutions for grid resiliency

Data will drive efficient resource usage

Acceleration of sustainable transportation

Cumulative PV Capacity PredictionsKey Themes

“Expert” predictions have significantly underestimated the rate of change and adoption of new technologies like solar


Energy Companies Need to Reinvent Their Business Model

6

Commodity business

Utility Consumer

Making $ by delivering electrons

Meets All Energy Needs

Making $ by Optimizing assets

Energy ServiceProvider

Prosumer


New Era of Consumer Centric Business Models

7

New Business Models

• New revenue sources fromdistributed energy assets

• Focus on profitability andReliability in zero marginalcost energy production

• Rising competition – predictingchurn, focus on customer acquisition

Manage Demand & Supply Flexibility

Value shift from

building assets to

optimizing assets

through

software

New Technical Capabilities

• Big Data• A.I. & Machine Learning• Internet of Things• Real-time Optimization• SaaS deployments

New Energy Era

Old Energy Era

Utility Build plants & transport electrons Consumer


Innovation in Electromobility Continues

8

Addressing lithium ion battery safety

Earlier detection of fire hazards

Storage for EV charging

Addressing electrical demand spikes from EVs

End-to-end EV charging management platform

Works with service providers and charging station owners

Wireless power to vehicles while driving

Addressing public transportation in cities

New battery chemistries

High voltage cathodes to improve energy densities

Wireless power

Remote charging solutions


New Technology Enables More Efficient Operations

▪ Wind Gearbox Implementation Objectives

– Predict gearbox failures with 30-60 day

advance notice

– Zero or minimal false positives

– Simple output for field personnel

▪ Gas Turbine Implementation Results

– A.I. found a manufacturing defect in a

monitored turbine

– Failure was an unusual manufacturing

defect due to a loose pin that would

have resulted in catastrophic failure

9

Artificial Intelligence has been successfully implemented to monitor wind turbine gearboxes and gas turbines

Fully Autonomous power plants possible in 5 years?


Energy and Resource Technology Landscape

1010

Energy Efficiency

Smart Grid Solar

Energy storage


Intelligent Mobility Sector Mega Trends

11

Once In A Generation OpportunityFocus on ACES

Autonomous

Connected

Electric

Shared• Shared

mobility platform

• Data analytics

• Li-ion cost/energy density

• EV charging monetization

• Routing algorithms

• Car office solutions

• Lower cost, interference-free Lidars

• AV tech testing

A C

SE


Intelligent Mobility Themes

12

Electrification of vehicles

Rapidly improving autonomous vehicle technology

Transportation-as-a-service

New transportation infrastructure and service models

Transformation of Automotive MarketKey Themes

(1) Mobility-as-a-service

Transportation as an industry is almost 20% of US GDP and undergoing a massive transformation and creating entirely new markets and businesses


Intelligent Mobility Landscape is Diverse

13


Industrial Efficiency Themes

14

Sensors will drive IOT (Internet of Things)

Cybersecurity will be required to secure the IOT

Robotics, drones, and 3D manufacturing are driving efficiency improvements

Big data, AI, and predictive analytics will tie everything together to drive resource

efficiency

Data Generation by TypeKey Themes

Sensor data usage will increase 50x faster than traditional data, revolutionizing the interactions between machines and the world


Industrial Efficiency Landscape

1515

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The information contained herein has been prepared solely for informational purposes and is not intended to constitute investment advice or an offer to buy or sell or a solicitation of any offerto buy or sell any interests in the Manager or any investment product managed by the Manager (the “Interests”). Any offer to provide investment advisory services and any offer of Interestswill be made pursuant to a definitive confidential offering document or similar offering materials for such investment product together with any supplements thereto (collectively, the “OfferingDocument”). The information in the Offering Document supersedes this information in its entirety and the information contained herein is qualified in its entirety by reference to the OfferingDocument. Any decision by a Recipient to invest should be made only after a thorough review of the Offering Document and the definitive agreements related to any such investment(collectively, the “Investment Documents”). Where there is inconsistency between this information and the Investment Documents, the Investment Documents will apply.

In considering any prior performance information contained herein, the Recipient should bear in mind that past performance is not indicative of future results, and there can be no assurancethat any Interests will achieve comparable results or that any targeted results will be met. In addition, there can be no assurance that unrealized investments will be realized at the valuationsshown as actual realized returns will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transactioncosts, and the timing and manner of sale, all of which may differ from the assumptions on which the valuations contained herein are based. Any IRRs, presented on a “gross” basis do not reflectany management fees, carried interest, taxes and allocable expenses borne by clients, which in the aggregate may be substantial. With respect to Realized Investments, IRRs and multiplespresented on a net basis reflect deductions for carried interest borne by limited partners. Pursuant to the distribution waterfall provisions in Fund I’s partnership agreement, realized gain equalto a portion of management fees and allocable expenses borne by the investors is returned to each limited partner prior to the calculation and deduction of carried interest. With respect tototal investments, IRRs and multiples on a net basis reflect deductions for management fees, allocable expense and carried interest borne by limited partners. All IRRs presented are annualizedand calculated on the basis of daily or monthly investment inflows and outflows. Nothing contained herein should be deemed to be a prediction or projection of future performance of theinterests.

The Manager does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and the information contained hereinshould not be relied upon as a promise or representation whether as to the past or future performance. The information contained herein includes estimates and projections that involvesignificant elements of subjective judgment and analysis. These statements are not purely historical in nature, but are “forward-looking statements”. They may include, among other things,projections, forecasts, estimates, targets, sample or pro forma investment structures, portfolio composition and investment strategies. These forward-looking statements are based on certainassumptions. Actual events may differ from those assumed. The information contained herein has been obtained from sources that the Manager considers to be reliable information, but hasnot been independently verified and the Manager does not assume any responsibility for the accuracy or completeness of such information. This information is based on and subject to presentcircumstances, market conditions and beliefs, all of which are subject to change. The Manager does not make any representations as to the accuracy of these forward-looking statements orthat all appropriate assumptions relating thereto have been considered or stated and does not assume any duty to update any forward-looking statement. Accordingly, there can be noassurance that estimated returns, projections and valuations can be realized, that forward-looking statements will materialize or that actual results will not be materially lower than thosepresented. Pending transactions discussed herein are subject to the receipt of any necessary approvals and financial close and there is no assurance that such closings shall ever take place.

The information contained herein is as of November 2018, and the Manager has no obligation to correct any inaccuracies or omissions in it.

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