RENEWABLE ENERGY INSIDE. November APRIL 2018 Industry snapshot

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1 November 17 APRIL 18 Industry snapshot RENEWABLE ENERGY INSIDE Market highlights Key players Deal volumes & Transactions About Clairfield

2 RENEWABLE ENERGY SNAPSHOT APRIL 18 HIGHLIGHTS DARIUS KIANZAD SECTOR HEAD MARCUS JENTSCH SENIOR ADVISOR Five major trends are disrupting the energy sector: Diffusion of renewables: In 16, solar alone produced 1.3x more electricity than the highest forecast in 7 for, and wind produced 1.1x more. With solar panel installation prices 6% below those forecast and installation growth of 5% over the last five years, renewable power will become the energy source of choice globally. Energy efficiency: As the regulatory environment wiped out the correlation between energy consumption and GDP growth, energy efficiency policies reduced total final energy consumption by 12% within 15 years. Considering that investments in energy efficiency are often more efficient than further investments into fossil fuels, this trend will continue further. Change in regulation: As renewables will successively reach grid parity globally, there is an increasing pressure to change the regulatory framework from former feed-in tariffs and tax reliefs to market-based auction systems. This is what we currently see in Germany, for example, one of the largest promotors of renewables. The consequences of this trend are manifold, but clearly there is margin compression along the entire value chain for renewables. However, renewable companies will be affected differently depending on which stages of the value chain they cater to. Digitization of the grid: Although in its early years, the concept describes the integration of digitally advanced technology within the existing grid. Whether it s uneconomic utilization of existing infrastructure, inefficient end-use devices and generation, or simply better ways to predict maintenance on assets using analytics, there s a lot of value available to be harvested. Energy storage development: While gaining public interest in recent years due to developments in electricity storage capacity for electric vehicles, the advancements in storage technology remain irrelevant to a global energy balance perspective. In the next decades, we can expect further advancements with the power to effectively balance the volatility of supply and demand of electricity. The close cooperation of electric vehicle manufacturers, innovative battery technology firms, and IT and infrastructure providers will be key for success. WORLDWIDE INSTALLED CAPACITY BY TYPE Source: IRENA Geothermal Source: Statistisches Amt der Europäischen Union (Eurostat) 2

3 RENEWABLE ENERGY SNAPSHOT APRIL 18 Top 1 public renewable companies worldwide: key financial metrics (Currency in m) Market cap Revenue EBITDA RENIXX Index (3 largest public renewable companies), 5y-performance EV/ Revenue Current*: week High/ Low**: / EV/ EBITDA Tesla (TSLA) $51,37 $11,759 $ x 19.2x Orsted (D2G) 22,5 n.a n.a. 2.7x 13.73x Vestas Wind Systems (VWS) 11,85 9,95 1,51.9x 5.9x Siemens Gamesa Renewable Energy 9,29 8, x 14.1x Verbund Akt. (A) (OEWA) 8,26 2, x 11.8x Brookfield Renewable Partners (BXE) 7,85 2,6 1.,6 7.1x 11.8x First Solar (FSLR) $7,41 $2,94 $33 1.7x 15.2x EDP Renovaveis (EDW) 6,88 1,6 1,7 6.7x 9.9x China Longpyuan Power Group (6WX) 5,56 3,9 2,33 4.4x 7.3x Ormat Technologies $2,8 $693 $ x 11.2x Source: Clairfield research *As of , ** From until , 1IPO in June 16 with initial offering price of DKK y-performance of top 8 renewable companies by market cap TSLA Share Price Performance 52-week High/ Low*: / Current*: VWS Share Price Performance 52-week High/ Low*: 84.79/ Current*: 58.4 EDW Share Price Performance 52-week High/ Low*: 8.3/ 6.46 Current*: /15 12/15 2/16 6/16 8/16 12/16 2/17 6/17 BXE Share Price Performance 52-week High/ Low*: 36./ 29.8 Current*: /16 D2G Share Price Performance 1 52-week High/ Low*: 53.34/ Current*: /16 12/16 2/17 6/17 8/17 12/17 2/18 GTQ1 Share Price Performance 52-week High/ Low*: 22.28/ 9.18 Current*: FSLR Share Price Performance 52-week High/ Low*: 76.61/ Current*: 7.65 OEWA Share Price Performance 52-week High/ Low*: 23.88/ Current*:

4 RENEWABLE ENERGY SNAPSHOT APRIL 18 LARGEST TRANSACTIONS 17-Q1 18 (EUR MILLION) DATE TARGET COUNTRY BUYER COUNTRY Deal Value ($m) 4/18 Ostro Energy Private Limited IND ReNew Power Ventures Ltd. IND 1,35 3/18 Innogy SE DE E.ON SE DE 37,859 12/17 InterGen (Mexico Assets) MEX Actis LLP UK 1,6 11/17 Inkia Energy Ltd. (Latin American and Caribbean) PER Squared Capital US 994 9/17 Orsted (659 MW offshore wind farm project) (5%) UK PKA A/S; PFA Pension Forsikringsaktieselskab AS DK 2,274 8/17 Borkum Riffgrund 2 (5%) DE Global Infrastructure Partners US 1,17 8/17 Energy Development (47.5%) PHL Cons. for Energy Development Corporation SGP 1,8 3/17 TerraForm Global US Brookfield Asset Mgt. Canada 1,171 3/17 TerraForm Power (38.84%) US Brookfield Asset Mgt. Canada 4,13 3/17 RusHydro (12.46%) RU VTB Bank OAO RU 869 2/17 Sustainable Power Group US AES; Alberta Investment Canada 1,49 1/17 Lincs Wind Farm (75%) UK Green Investment Group UK 837 Global renewable M&A (deal count) Forecast 16-4: Renewables will be the fastest growing fuel source 44.6bn 4.1bn 2.% Contribution to growth of energy consumption % Oil Gas Coal Nuclear Hydro Renewables per annum 1.%.5%.% Source: Mergermarket, 18 BP Energy Outlook, Clairfield research -.5% BP CNPC EIA IEA IEEJ IHS OPEC Statoil XOM 4

5 RENEWABLE ENERGY SNAPSHOT APRIL 18 RECENT RENEWABLE ENERGY DEALS CLOSED BY CLAIRFIELD INTERNATIONAL Finland was sold to Pohjolan Energia Oy, a market-leading provider of turnkey small-scale solar panel solutions, was sold to MB Funds, a leading Finnish PE house. Pohjolan Energia is the fast-growing Finnish market leader in turnkey small-scale solar panel systems, targeting mainly the single-family house segment. The company s run-rate revenue is approximately EUR million and it employs more than 15 solar energy professionals. MB Funds is a leading Finnish private equity investor, focusing on Nordic small to mid-sized companies and currently managing two funds totaling EUR 5 million. TURNKEY SOLAR PANEL SYSTEMS Italy sold its 282 MW wind portfolio to Veronagest sold a wind portfolio, comprising seven energy plants operating in Sicily and Calabria with aggregate installed capacity of 282 MW, to F2i s Secondo Fondo. It was one of the largest cleantech deals in Europe in 17. Veronagest, one of the main players in the renewable energy sector in Italy, has built a 35 MW strong portfolio of wind farms and a 65 MW strong portfolio of solar farms since its founding in 5. F2i is an Italian asset management company, created in 7. It is the largest infrastructure fund operating in Italy and is among the principal funds in Europe. WIND FARMS 5

6 CLAIRFIELD A GLOBAL PARTNERSHIP OF M&A SPECIALISTS WORLDWIDE PRESENCE 4+ PROFESSIONALS Contact Darius Kianzad Managing partner dkianzad@clairfield.com T: RANKED AT THE TOP OF INDUSTRY LEAGUE TABLES 8% OF OUR WORK IS CROSSBORDER Clairfield International provides advisory services on middle-market transactions for large companies, private investors and private equity, public sector clients, and family businesses. Headquartered in Europe with locations in every major region worldwide, Clairfield offers clients access to local corporate businesses, investors, and key decision makers, combined with a deep understanding of local regulations and cultures. Clairfield ranks as one of the top independent M&A advisors in the annual worldwide, European, US, Latin American, and Asian Pacific league tables by Thomson Reuters. DISCLAIMER: No part of this report may be reproduced without the written permission of Clairfield International. The information herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Much of the information contained in this report is subject to variation due to changes in market conditions, legislation or regulatory matters and Clairfield International does not undertake to notify any recipient of the report of changes to the information contained herein. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. Additional supporting information is available upon request. Please contact: Press office, Clairfield International, Tel: , press@clairfield.com 6