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Private Equity in CleantechA fast-developing market

Private Equity in CleantechA fast-developing market

Olivier DUPONTFounder, Chairman of the Executive Board

Demeter Partners

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CleantechCleantech::A promising landscape for investorsA promising landscape for investors

By « cleantech » we mean products and services which positively impactthe environment and/or mitigate climate change.

We divide cleantechs into two categories:

Eco energies

Energy efficiency

Renewable energies (solar, wind, biomass, hydro, geothermal)

Energy storage

Carbon saving & sequestration

Green buildings

Eco industries

Water

Waste treatment

Recycling

Air treatment

Eco materials

What isWhat is cleantechcleantech??

TheThe stakesstakes involvedinvolved inin cleantechcleantech

60 MM€ and 400 000 jobs in 2008 in France110 MM€ et 680 000 jobs in 2020 in France

Source : BCG

Watermanagement

Photovoltaicsolar energy

Greentransportation

Off-shorewind energy

Carbon dioxide

capture and storage

Biomassrecovery

Waste recycling& recovery

Green building

Biodiversity andenvironmentalprotection

Montants investis dans les cleantechs par le capital investissement

en Europe (en million US$)

490360

12050

740

1 050

1 251

1 811

0

400

800

1200

1600

2000

2001 2002 2003 2004 2005 2006 2007 2008

M US$

Source : Cleantech Group LLC

Amounts invested in Cleantech by private equity in Europe(in million $)

PourcentageduCapital Investissement investi danslesCleantechs

enEurope

24%

16%

12%

0%

10%

20%

30%

40%

50%

2006 2007 2008

%

Source: CleantechGroupLLC

Percentage of private equity invested in Cleantech in Europe

Perspectives ofPerspectives of CleantechCleantech

Cleantech are a priority for the political class

Obama, Copenhagen 2009

Green growth

Recovery plans

Unchanged fundamentals

Energy price

Energy dependency

Global warming

Growing energy demand (BRIC)

New sectors

Energy efficiency

Smart grid

Green buildings

Green transportation

Opportunities for investors

Having cash and expertise

French state green planFrench state green plan

« Grenelle de l’environnement »

10 years plan

170 Billions € brought by government and regions over 10 years

25% reduction of energy consumption and Greenhouse gas emission

Well balanced between green buildings, renewable energies andclean transports

In 2010 « Green » represents 20% of all government stimuluspackages.

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Appealing sectorsAppealing sectors

Top 2008Top 2008 cleantechcleantech dealsdeals

SolarSolar

Sources : New Energy Finance – 2008 - 2009

BiofuelsBiofuels

Fuel cells and batteriesFuel cells and batteries

Sources : New Energy Finance – 2008 - 2009

……and more particularly lithium ion technologiesand more particularly lithium ion technologies

Sources : New Energy Finance – 2008 - 2009

Green buildingsGreen buildings

Sources : New Energy Finance – 2008 - 2009

……and more Smart Gridand more Smart Grid

Sources : New Energy Finance – 2008 - 2009

Investment targetsInvestment targets

Thermal & Efficiency Electricity Transportation

Mature

Emergent

Wind offshore

Cristalline PV solar

Gazification

Thermal solar

Biomass / Biogas

1stGeneration BiofuelMicro wind turbines

Concentration PV solar

Thin Film PV solarBiofuel from algae

Cellulosic biofuelEnergy storage

Solar air-conditioning Sea energy

Electric vehicle

Hydrogen / Fuel cell

Heat pumps

WaterSoilWaste

Site remediation

Sanitation

Desalination

Pollutionmeasurement &certification

Air treatment

Green Building

Water quality

Flow

Toxicity study

Treatment

Control Site diagnosis

Collection &sorting

Water harvesting

Recycling

Waste recovery

WEEE sector

Air

« Green »chemistry

Revitalization

Sea Depollution

Natural materialsinsulation

Eco

energies

Eco

industries

Hydrogen / Fuel cell

Efficiency

Aeraulics / Airprocessing

Hybrid vehicle

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DemeterDemeter

Demeter MilestonesDemeter Milestones

First closing (Sponsors

CDC+ IFP)

Closing Demeter 1 – 105 M€

German Offic

e

Demeter 2

1st closingDemeter 2

Closing 200 M€

GeographyStageSector Deal size

Cleantechs:

-Eco energies

-Eco industries

France

Spain

Germany2-15 M€

Risk

Growth

LBO

Milestones

Investment Strategy

2005 2006 2007 2008 2009

Sept.

Investments: 6 Investments: 9Exit: 1 (IPO)

Investments: 6Exit: 1 (industrial trade)

Investment: 1

Spanish Office

Demeter PortfolioDemeter Portfolio

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Matching financial performanceand environmental awareness

Matching financial performanceand environmental awareness

www.demeter-partners.comTel : + 33 (0)1 43 12 53 33

23 rue de l’Arcade 75008 Paris