SUSTAINABLE FUTURE CERTIFICATE. Sustainable Future. Building A New World

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1 SUSTAINABLE FUTURE CERTIFICATE 1 Sustainable Future Building A New World

2 SUSTAINABLE FUTURE CERTIFICATE 2 Investment Case Climate change, a growing world population and an increasing world s electrification have started to spark major changes in our living habits and the adoption of sustainable behaviors Sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs Our Sustainable Future theme will capture the growth (estimated above 20% on average) in all industries benefiting from the sustainable development of our planet We invest in pure players in renewable energies, energy storage, smart transportation, water & wastewater treatment, the digitalization of energy systems and integration of smart technologies Details Issuing bank: JP Morgan, Calculation agent: JP Morgan ISIN: XS (USD), XS (EUR) Currency: USD, EUR Fees: 1.5% management fee + 15% performance fee, high water mark Bloomberg tickers: JMLNARSF (USD), JMLNARSE (EUR)

3 SUSTAINABLE FUTURE CERTIFICATE 3 Climate Change Is A Fact and it s affecting our lives in many different ways

4 SUSTAINABLE FUTURE CERTIFICATE 4 To Survive, Human Beings Are Reacting To That Change Adaptation & Mitigation

5 SUSTAINABLE FUTURE CERTIFICATE 5 Technology is the Answer! Smart City Energy Storage Fossil Fuel Scarcity? Growing Water Needs? Traffic Congestion? Extreme Pollution? Hyperloop Hydrogen Train Increasing Electricity Demand? Food Shortage? Micro-Irrigation Algea Biofuel

6 SUSTAINABLE FUTURE CERTIFICATE 6 Smart Agriculture Solar & Wind Smart Grid Water & Wastewater Treatment Energy Efficiency Smart Transportation Energy Storage Smart Cities & Buildings

7 SUSTAINABLE FUTURE CERTIFICATE 7 A $3.6 Trillion Market By 2024 Drivers Declining prices for Renewables and Storage General environmental concerns Rising Electricity demand Depleting natural resources Growing Population Risks Lower Fossil fuel prices Fiscal Austerity Unsupportive Regulation AtonRâ Sustainable Future Stationary Energy Storage ($10B) Smart Buildings ($62B) Solar Energy ($633B) Smart Transportation ($285B) Electric Vehicles ($464B) Li-Ion Batteries ($80B) 17% Smart Agriculture ($21B) 14% Wind Energy ($170B) 13% Energy Efficient Devices 4.3% ($1T) 12% 22.3% CAGR % 34% 24% 23% 22% Hydrogen ($206B) 6% Water Treatment ($664B) 4% Source: Marketresearch, Zion Market Research, Allied Market Research, Grand View Research, Transparency Market Research, Global Market Insights, Research and Markets, Hexa Research

8 SUSTAINABLE FUTURE CERTIFICATE 8 Energy & History Our society has historically not been relying on fossil fuels PAST When? FUTURE 200 years Energy Used is Clean and Renewable Fossil Fuels Era Sustainable Energy Era ~1800 AD? What shape will have that transition? The renewable energy transition is already on its way

9 SUSTAINABLE FUTURE CERTIFICATE 9 Question: How much of total world electricity consumed is produced by wind and Solar PV combined? A 5% B C D 15% 25% 35%

10 SUSTAINABLE FUTURE CERTIFICATE 10 Power Generation: A Clear Shift Towards Solar and Wind Power Generation Mix Historical world power generation mix NEO 2018 power generation mix 100% 90% 80% Other Solar 70% 60% 50% Nuclear Oil Wind 64% renewables by 2050 & 48% solar and wind 40% Gas Hydro 30% 20% Coal 10% 29% fossil fuels by % Source: Bloomberg NEF; IEA

11 SUSTAINABLE FUTURE CERTIFICATE 11 Solar Installations Taking Off If we continue to deploy PV panels at the same pace, PV power capacity will exceed today s total power needs (incl. coal, gas, oil, etc.) within 10 years! 10'000'000 PV - Installed Capacity (MW) 9'000'000 8'000'000 7'000'000 6'000'000 CAGR 18-29: 30% Total Capacity (2017): ! 5'000'000 4'000'000 The take-off is now! 3'000'000 2'000'000 1'000'000 0 Source: IEA

12 SUSTAINABLE FUTURE CERTIFICATE 12 Solar: Many Different Technologies And Applications

13 SUSTAINABLE FUTURE CERTIFICATE 13 Solar: Innovation Sparks Cost And Yield Efficiencies Solar Cell Efficiencies Large variety of PV cells type: crystalline, multijunction, thin-film, organic, etc. Growing cell efficiencies for all types Mimicking Moore s Law While efficiency grows, costs continue to decline Cumulative production x 2 Price -24% Source: Fraunhofer ISE

14 SUSTAINABLE FUTURE CERTIFICATE 14 Solar cells into roof tiles Improved look compared to traditional solar panels Improved overall cost of roof + PV modules Solar cells into building s facades Maximize exploitation of solar energy on buildings Transparent cells perfectly integrates into architecture

15 SUSTAINABLE FUTURE CERTIFICATE 15 Electric Grid Needs A Major Upgrade The traditional grid is facing a multitude of challenges that can be outlined in the following categories: Inflexibility Network Congestion Lack Of Transparency Infrastructural Problems

16 SUSTAINABLE FUTURE CERTIFICATE 16 Smart Grid: Flexibility, Efficiency, Reliability A network of integrated microgrids By 2040, 11B smart appliances are expected to be deployed in the smart grid worldwide Provide 185 GW of system flexibility and save $270B in electricity infrastructure. Storage: energy generated at off-peak times could be stored in batteries for later use Generators: energy from small generators and solar panels can reduce overall demand on the grid Demand management: use can be shift to off-peak times to save money Processors: execute special protection schemes in microseconds Sensors: detect disturbances and can signal for areas to be isolated Smart appliances: can shut off in response to frequency fluctuations

17 SUSTAINABLE FUTURE CERTIFICATE 17 Smart Grid: A Wide Array Of Technologies Phasor Measurement Units Distribution Grid Management Energy Management Systems Renewable Generation Integration Transmission Enhancement Advanced Metering Infrastructure Smart Appliances

18 SUSTAINABLE FUTURE CERTIFICATE 18 Question: How many cigarettes are we smoking per year by breathing Geneva air? A B C D

19 SUSTAINABLE FUTURE CERTIFICATE 19 Air Pollution: Affecting Our Everyday Life Air Pollution Location Shenyang (worst recorded) Equivalent in Cigarettes per Day 63 Hadan (avg.) 5.5 China (avg.) 2.4 Geneva (avg.) 1.9 Europe (avg.) 1.6 USA (avg.) cigarette = PM 2.5 of 22 μg/m 3 Source: Berkeley Earth

20 SUSTAINABLE FUTURE CERTIFICATE 20 Air Pollution: Affecting Our Everyday Life Causes Solutions Burning of Fossil Fuel Green Mobility Agricultural Activities Energy Savings Exhaust from Factories Reduce, Reuse, Recycle Mining Operations Renewable Energy Indoor Polluting Products Energy Efficiency

21 SUSTAINABLE FUTURE CERTIFICATE 21 Smart Buildings To Improve Comfort, Safety And Energy Efficiency Air Quality Control Access Control Smart Lighting Smart Thermostat Fire Safety Remote Security Energy Management Intelligent HVAC

22 SUSTAINABLE FUTURE CERTIFICATE 22 Smart Transportation: The Rise Of Electric, Smart And Shared Vehicles Smart Parking Smart Traffic Lights Self-Driving

23 SUSTAINABLE FUTURE CERTIFICATE 23 Smart Transportation: EVs In The Spotlight Electric Vehicle market is projected to benefit from a significant growth in the coming years (CAGR of 22.5%). Country EV Policy Announcements China 5mio EV by 2020, 20% EV sales by 2025 France 100% EV by 2040 United Kingdom 100% EV by 2040 India 100% EV sales by 2030 Thailand 1.2 mio EV stock by 2030 Poland 1 mio EV Stock by 2025 New York City 20% EV sales by 2025 Several industries will be affected: EV batteries Charging stations Electricity supply Electrical Grid

24 SUSTAINABLE FUTURE CERTIFICATE 24 Smart Transportation: EV Batteries Evolution Objectives Reduce cost Increase energy density Improve charging rates Improve battery safety Trend Reduction of Cobalt Content (~20% to ~6%) Improvement of anode graphite structure (addition of silicon) to improve charging rates Development of gel-like electrolyte material Sources: IEA analysis based on Meeus (2018); Nationale Plattform Elektromobilitat (2016); NEDO (2018); Howell (2016); Pillot (2017).

25 SUSTAINABLE FUTURE CERTIFICATE 25 Smart Transportation: EVs To Turn Into Home Batteries EVs act as batteries with bidirectional flow of energy from and to the grid Peak load Leveling Emergency Backup Frequency Regulation Renewable Energy Storage At any instant, 95% of all cars are parked and unused Car batteries can be used to store electrical energy and give it back to the grid when needed V2G revenue can offset an average 10% of total cost of EV ownership Source: Cenex

26 SUSTAINABLE FUTURE CERTIFICATE 26 Energy Storage: A Major Challenge, A Major Opportunity

27 SUSTAINABLE FUTURE CERTIFICATE 27 Question: What is the most widely used energy storage technology (in term of energy stored)? A B C D Li-Ion Batteries Pumped-Hydro Compressed Air Flywheels

28 SUSTAINABLE FUTURE CERTIFICATE 28 Energy Storage: Pumped-Hydro Dominates The Game Representing over 95% of world storage capacity

29 SUSTAINABLE FUTURE CERTIFICATE 29 Energy Storage: Li-Ion On The Rise Li-Ion Energy Storage Deployment is planned to grow by 55% annually For each storage need, there will be a storage technology: Energy & Power Density Lifespan Discharge Time Overall Cost

30 SUSTAINABLE FUTURE CERTIFICATE 30 Energy Storage Unlocks Various Benefits Resiliency/ Back-up Power Demand Response Sustain a critical load during grid outages Lowers demand during system peaks Energy Arbitrage Frequency Regulation Buy energy & store it in off-peak hours and consume/ sell it during peak hours Stabilize frequency in real time

31 SUSTAINABLE FUTURE CERTIFICATE 31 Question: Which of the following sector is responsible for the majority of world s water usage? A Agriculture B Industrial C Municipalities/ Households

32 SUSTAINABLE FUTURE CERTIFICATE 32 Water: A Commodity That Needs To Be Preserved Every year, about km 3 of water falls on earth Only 10% of that can be used for agriculture, industry, and drinking 70%! Source: focusingfuture.com

33 SUSTAINABLE FUTURE CERTIFICATE 33 Water: New Technologies To Enhance Distribution And Treatment Water Innovation

34 SUSTAINABLE FUTURE CERTIFICATE 34 Question: Which of the following requires more water to be produced? A B C D 1 kg of Rice 1 kg of Chocolate 1 kg of Beef 1 L of Biofuel

35 SUSTAINABLE FUTURE CERTIFICATE 35 Water Footprint Beyond Expectations Liters 1 kg of Chocolate Liters 1 kg of Beef Liters 1 kg of Rice Liters 1 L of biofuel

36 SUSTAINABLE FUTURE CERTIFICATE 36 Smart Agriculture, Or How To Better Feed A Growing Population Drilling, Seeding and Spraying Water management Fertigation Livestock Monitoring Aerial Crop Monitoring

37 SUSTAINABLE FUTURE CERTIFICATE 37 Smart Agriculture, Or How To Feed A Growing Population Precision Farming High precision positioning systems Sensors and remote sensing Integrated electronic communications Livestock Monitoring Understand feeding and drinking habits Help fend off disease or infections Protects Animals

38 SUSTAINABLE FUTURE CERTIFICATE 38 A Broad Commitment: Governments, Companies and Consumers Chinas ambitious energy plans: $382B to be invested into renewable power generation by 2020 and nearly $780B by Big corporation commitments to renewable energy: Facebook (100% by 2020), Microsoft (60% by early 2020 s) Amazon (already 50% since Jan 2018, goal: 100%) Apple (already 100%) Rising general awareness due to recent extreme weather events : Hurricane, Super Typhoon, 2018 will be the 4 th hottest year on record, etc.

39 SUSTAINABLE FUTURE CERTIFICATE 39 Conclusion Solar & Wind Smart Agriculture Smart Grid Smart Cities & Buildings 20-25% average growth Water & Wastewater Treatment Energy Efficiency Smart Transportation Energy Storage The inflection point is now! Grid parity Technology breakthrough, just the beginning! Renewables: now viable without subsidies fossil fuel need subsidies to survive World s Electrification: data centers, EV, smart transportation, digitalization, etc.

40 SUSTAINABLE FUTURE CERTIFICATE 40 Invest In The Future Of Our Planet A long term opportunity impacting every aspect of our life: energy, transportation, food, water, environment Rather than passively endure climate change, be part of a more sustainable future Launching date: ISIN: XS (USD), XS (EUR)