European Energy Investment Trends

European Energy Investment TrendsTBLI Paris

9 November 2006

Michael Liebreich

© New Energy Finance, 2006

© New Energy Finance, 2006© New Energy Finance, 2006

Global Investment in Clean Energy 2005: $48.9bnGlobal Investment in Clean Energy 2005: $48.9bn

Figures marked * are based on New Energy Finance Desktop databases; all other figures are industry estimates based on various sources. Source: New Energy Finance

$2.1bn*

VC/PE Public markets

Corporate RD&D

Gov’t R&D

Technology & Equipment

$4.9bn*

$7.0bn

$6.0bn $20.0bn

Total investment

Small-scale projects

Asset finance

$21.9bn*

$7.0bn $48.9bn

Totaldeals

$66.2bn

M&A/ MBO

$17.3bn*

$7.2bn of Private Equity

Investment


$63.3bn

$48.9bn

$30.1bn

2004 2005 2006

Global Investment in Clean Energy, 2004 - 2006Global Investment in Clean Energy, 2004 - 2006

62% Growth

30% Growth

2006 annualised estimate based on Jan to Sept Source: New Energy Finance


Estimated Global VC/PE Investment 2001 - 2006Estimated Global VC/PE Investment 2001 - 2006

Includes all VC & PE investments. Number of deals in brackets. 2006 is annualised value Source: New Energy Finance

$762m (50)$1071m (72) $1,146m (121)

$2,779m (189)

$7,183m (264)

$8,800m (298)

2001 2002 2003 2004 2005 2006

Venture Capital PE for companies PIPE s PE for projects

158% Growth


Global VC/PE Investment by GeographyQ3 2005 – Q2 2006Global VC/PE Investment by GeographyQ3 2005 – Q2 2006

$18m (3/3)

$31m (3/3)

$48m (5/5)

$55m (5/7)

$66m (5/8)

$94m (14/17)

$118m (3/4)

$158m (27/30)

$1522m (83/105)

Scandinavia

Israel

Asia

Other Europe

Germany

Canada

Australia

United Kingdom

United States

Region No. ofdeals

No. discl’d

Total$m

% Avg.$m

AMER 122 97 1,628 77% 16.8

EMEA 51 43 328 15% 7.6

ASOC 9 8 166 8% 20.8

TOTAL 182 148 2,122 100% 14.3

Number of deals in brackets; Disclosed deals only; Excludes PE for Projects


Investment in European Venture-Backed Companies by Sector 2000 – 2006 (EUR m & % growth)Investment in European Venture-Backed Companies by Sector 2000 – 2006 (EUR m & % growth)

€0m

€2,000m

€4,000m

€6,000m

€8,000m

€10,000m

€12,000m

€14,000m

€16,000m

2000 2001 2002 2003 2004 2005 2006

-100%

-50%

0%

50%

100%

150%

200%Information Technology (EUR m)

Products & Services (EUR m)

Healthcare (EUR m)

Clean Energy (EUR m)

Information Technology (%growth)Products & Services (% growth)

Healthcare (% growth)

Clean Energy (% growth)

Excludes Buy-Outs. 2006 is annualised value. Products & Services include consumer business products & services, and retail Source: Dow Jones VentureOne and Ernst & Young; NEF


Global Clean Energy Funds Under Management by Geography and Fund Type at August 2006Global Clean Energy Funds Under Management by Geography and Fund Type at August 2006

$6,668m(44/9)

$6,520m(33/16)

$792m(7/4)

AMER

EMEA

ASOC

Unquoted Quoted

$14bn Under Management in

113 Clean Energy Funds

Number of Unquoted/Quoted Funds in brackets Source: New Energy Finance


Global Clean Energy Funds Under Managementby Geography & Fund Focus at August 2006Global Clean Energy Funds Under Managementby Geography & Fund Focus at August 2006

$6,668m(17/23/13)

$6,520m(13/24/12)

$792m(4/6/1)

AMER

EMEA

ASOC

Cleantech / Envirotech Clean Energy Sector Specific

$10bn (71%) in Clean Energy & Sector Specific

Funds

Number of Clean Tech/Clean Energy/Sector Specific Funds in brackets Source: New Energy Finance


Selected VC/PE Investor Exit Transactions 2005 - 2006Selected VC/PE Investor Exit Transactions 2005 - 2006

Organisation (Country)

Sector Type Date VC/PE Backer Investment ($m)

Valuation ($m)

REC Group (Norway)

Solar IPO (Oslo)

09/05/06 Goldman Sachs, Good Energies , Mithril

44.2 7,674

Suzlon Energy (India)

Wind IPO (New Delhi)

19/10/05 Citigroup

21.3 3,3 32

Suntech (China)

Solar IPO (NYSE)

14/12/05 Goldman Sachs , Dragon Tech, Actis Capital, Prax Capital, Natexis PE

80.0 2,212

Q-Cells (Germany)

Solar IPO (Frankfurt)

21/09/05 DKB, Good Energies, Apax Partners 15.6 1,690

Hawkeye (US)

Biofuels PE Pre -IPO investment

11/05/06 Thomas H. Lee 363 1,000

ITM Power (UK)

Hydrogen Fuel Cells

Secondary 05/05/06 Fidelity Global Group 54.4 599

Hansen Transmissions (Belgium)

Wind M&A 17/03/06 Apax Partners, Alliance Capital Partners

157 565

Schmack Biogas (Germany)

Bi omass/ biogas

IPO (Frankfurt)

24/05/06 Sustainable Asset Management 1.5 197

Ceres (UK)

Fuel Cells IPO (AIM)

25/11/04 Carbon Trust Investments, Fleming Family & Partners, Imperial College, Nikko Principal Investments

9.2 125

CMR Fuel Cells Ltd (UK)

Fuel C ells IPO (AIM)

22/12/05 Conduit Ventures, Carbon Trust Investments

9.2 63.2


Global Public Market IPO and Secondary Transactions 2001 - 2006Global Public Market IPO and Secondary Transactions 2001 - 2006

$7,015m (18/22/14)

$5,907m (35/36/23)

$664m (13/13/3)$326m (5/9/3)$235m (4/2/0)$326m (5/1/0)

2001 2002 2003 2004 2005 2006

IPO Secondary Convertible and other

Number of IPO/Secondary/Convertible and other deals in brackets. 2006 to end June Source: New Energy Finance


Wilder Hill New Energy Finance Global Innovation Index (NEX), December 2002 to September 2006Wilder Hill New Energy Finance Global Innovation Index (NEX), December 2002 to September 2006

December 30 2002 = 100. Calculated to start of Sep 2006 Source: New Energy Finance, American Stock Exchange

75

125

175

225

275

325

Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06

AMEX Oil

NASDAQ

S&P 500

NEX


Forecast global number of VC & PE investments 2006 - 2012Forecast global number of VC & PE investments 2006 - 2012

Estimated $100bn equity investment 2006 – 2012

Universe of 100+ European VC-backed clean energy companies

500 per year investments by 2012

0

100

200

300

400

500

600

2003 2006 2012

PE for projects

PIPEs

PE for buyouts

PE for expansion

VC


Keeping the Finance Flowing – 10 ImperativesKeeping the Finance Flowing – 10 Imperatives

Address policy weaknesses in developed country laggards. Develop retail finance models for home and small business-scale clean energy projectsRoll out microfinance programmes for small-scale projects in the developing world.Accelerate the incubation of new technologies.Improve the macroeconomic environment for early stage technology companies.Develop mechanisms to support pilot projects which require debt but still have technology risk.Break the offshore wind funding bottleneck.Ensure the developing world has access to the most energy-efficient generation and industrial technologies.Introduce “industrial strength” mechanisms to finance large projects in the developing world.Ensure the survival and extension of carbon trading.


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New Energy Finance’s Clinton Global Initiative CommitmentNew Energy Finance’s Clinton Global Initiative Commitment

New Energy Finance has committed to provide information, research and networking services at no cost to ten leading incubators of clean energy technology in the developing worldCandidate incubators must have the following characteristics:– Have access to the best technology being developed in the local region– Have a track record developing clean energy technologies and

businesses– Have a core staff already dedicated to incubation of technology– They can be public or private

Early contact has been initiated with universities in China, Brazil and South AfricaWe welcome applications to join the programme


Thanks!Thanks!

Michael LiebreichCEO & Founder

New Energy Finance

71 Gloucester PlaceLondon W1U 8JWTel: +44 20 7727 [email protected]

Economy & Finance

European Energy Investment Trends