PARTNERING BUSINESSES IN THE TRANSITION TO A GREEN ECONOMY

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1 PARTNERING BUSINESSES IN THE TRANSITION TO A GREEN ECONOMY The energy transition is a real necessity for business. Because global warming affects all firms, they must factor this into their strategy by adopting a changebased mindset in order to transform a constraint into an opportunity. Caisse des Dépôts Group is gearing up all of its financing solutions and designing new ones to deal with these changes. Its objective is twofold: submit ambitious ideas to the management of companies focused on the energy transition and partner businesses in all sectors.

2 Caisse des Dépôts Group is devising innovative financing solutions to partner emerging players in the green economy, structure a network of French SMEs in the renewable energy sector and help economic stakeholders to fund their investments in the drive for energy efficiency. Boosting financing for businesses involved in the energy transition One of the Group s priorities is to support the transition to a green economy by investing in businesses already working towards the energy transition. Caisse des Dépôts invests in the equity of companies that wish to focus on renewable energy production, local or regional development, waste management or electro mobility. Bpifrance s strategy is to target businesses that pioneer technological innovations in the design and production of green services or «facilitate» the energy transition through incremental innovations or services, or specialise in installing or disseminating green technology. It provides support in the form of innovation incentives, guarantees and equity financing either directly or through funds such as Demeter or Emertec and loans. Demeter 1 and 2 invest in high potential businesses focused on green energies and green sectors (green building, transport). Emertec 3E, 4 and 5 focus on high-potential start-ups seeking to market innovations developed by research laboratories in renewable energy, energy storage and transport, decontamination, green chemicals, mobility and the environment. Quadrivium 1 targets investment in ICTs, life sciences, cleantechs and the environment. Supporting projects that help to make companies more energy efficient To move things forward, the Group offers companies in all sectors innovative financing solutions with a strong leveraging effect that enable them to seize the opportunities presented by the energy transition to boost their performance. Bpifrance supports the energy efficiency drive at the level of «general» businesses that use energy efficient technologies and natural resources or opt for greener production methods. This strategy harnesses the new Investments in the future «green subsidised loans» being granted as part of the «Plants of the Future» programme as well as the creation of new «green energy loans». These are given out to SMEs and micro-businesses wishing to invest in energy efficiency ventures. The loans are capped at 50,000 and the interest rate is 2%. Green subsidised loans are capped at 3 million. These investments should enable eligible SMEs and micro-businesses to reduce their carbon footprint, energy consumption and consumption of non-renewable raw materials, and help firms to market «green» products and services. The Group is also partnering businesses energy efficiency initiatives through project financing provided via special purpose vehicles (SPVs) that give Caisse des Dépôts minority equity stakes. Through the 5 Es programme (Efficacité Energétique et Empreinte Environnementale des Entreprises), Caisse des Dépôts is financing the efforts of mainly industrial companies who are big energy users to boost their own energy efficiency. This programme is providing 600 million worth of investment over five years for

3 projects of between 2 million and 50 million that cut GHG emissions or energy consumption by at least 20% and boost profitability by at least 10%. As well as providing joint investment solutions, Caisse des Dépôts can also look after investment origination and project structuring, make recommendations and monitor projects. Promoting green technologies Bpifrance is using the Ecotechnologies Fund ( 150 million) managed to support initiatives that focus on optimising the use, management and life cycle of natural resources. This fund is being managed by Bpifrance through Caisse des Dépôts delegation on behalf of the State as part of the «Investments for the Future» programme and targets investments in innovative ventures: green chemicals, bio-resources, hydrogen storage, smart grids, the circular economy, etc. Helping to develop and structure the timber and wood industries Bpifrance continues to target businesses in the timber and wood sector an essential platform in the fight against climate change that makes it possible to offset 20% of French carbon emissions using two vehicles in particular: the second Timber Fund (Fonds Bois 2) focusing on private equity and buy-out transactions in the wood processing sector and nurturing a network of SMEs that are both big enough to structure the sector and to showcase natural resources more effectively; and Timber equity loans (prêt participatif «Bois») available for investments designed to boost the competitiveness and development of SMEs of over three years in the timber sector. THE GROUP S COMMITMENTS The Group has committed to doubling its investment in the energy transition by 2017: - 1 billion in funding for renewable energy projects by 2017, million over the 2014 and 2017 period to strengthen the equity of renewable energy developers, million in green loans from 2015 for firms from «all sectors». The Group will step up initiatives designed to boost mid-cap investment in the energy transition. KEY FIGURES FOR 2014 OVER 2,5 BILLION IN OUTSTANDING LOANS TO BUSINESSES INVOLVED IN THE ENERGY TRANSITION MANAGED BY BPIFRANCE IN 2014 BPIFRANCE RAISED LOANS TOTALLING 848 MILLION FOR BUSINESSES INVOLVED IN THE ENERGY TRANSITION AND INVESTED 52 MILLION IN EQUITY FINANCING IN THE ENERGY, GREEN CHEMICALS AND ENVIRONMENT SECTORS

4 A FINANCING INVESTMENT TO MAKE BUSINESSES IN ALL SECTORS MORE ENERGY EFFICIENT n Businesses that use energy efficient technologies and natural resources, n Businesses that opt for greener production methods. B C D E F G 2 PARTNERING THE DEVELOPMENT OF BUSINESSES IN THE ENERGY TRANSITION n Producing energy from renewable sources (biomass, bio fuels, etc.), n Optimising consumption of natural resources: businesses specialising in energy retrofits, smart grids, green technologies, etc. n Managing the natural resource life cycle: water, ecological engineering, recycling and waste-to-energy projects, managing and developing the timber sector, etc. n Carbon-light transport: electro-mobility, car sharing, etc.

5 Hydrogen at the heart of the energy transition In 2013, the Ecotechnologies Fund of the «Investments for the Future» invested over 5 million in McPhy Energy, specialised in green technologies, particularly energy storage. McPHy Energy markets its solutions to industrial firms that use hydrogen, or to renewable energy producers, and its technology involves converting green electricity into hydrogen using an electrolyser. Unlike electricity, this hydrogen may be stored and makes much better use of surplus electricity generated from the intermittent supply of renewable energies. The knock-on effect of investments in the Timber Fund In 2013, the Timber Fund managed by Bpifrance invested 1.2 million in PMS, a sawmill based in Alsace specialised in oakwood, in order to upgrade its plant and develop second-stage wood processing. Thanks to this investment, PMS plans to develop an innovative product that will showcase oakwood from Alsace s forests to much better effect.

6 The Solvay plant: a pilot project sponsored by the 5Es programme Thanks to the 5Es programme, Caisse des Dépôts along with Solvay Energy Services and Marubeniva has been able to launch a pilot project at the rare earth recycling plant in La Rochelle that involves financing either the renovation or replacement of the existing plant with better technology using smaller quantities of natural resources. This project boosts the competitiveness and reduces the carbon footprint of the Solvay plant. Nénuphar: pioneer of floating vertical-axis wind farms In 2014, the Ecotechnologies Fund of the «Investments for the Future» acquired a 5 million stake in the capital of Nénuphar. This company has developed innovative floating vertical-axis wind turbines. Cheaper technology thanks to a more compact floater is designed to equip floating wind farms both in France and abroad in waters over 50 metres deep.

7 SUPPORTING AND FINANCING Caisse des Dépôts 56, rue de Lille Paris Bpifrance 27-31, avenue du Général Leclerc Maisons-Alfort Cedex D INFOS Certifié PEFC Ce produit est issu de forêts gérées durablement et de sources contrôlées. pefc-france.org Prepared by the Group Corporate Communications Department june 2015 Illustration: Tino - Copyrights photos: photothèque Solvay, Nénuphar, McPhy Energy SA, Olivier Londe - Caisse des Dépôts 2014