Cleantech Investing in Germany
German Cleantech - The Foundation of European Environmental Innovation
Mountain Cleantech AG 6. November 09
Confidential – Copyright 2009
1
Disclaimer and Confidentiality
The elements contained in this document have been prepared solely for the purpose of information and do not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any investment strategy. This Document is not an offer to acquire shares nor is it a Prospectus, nor a Private Placement Memorandum. Investments may be suitable for private investors only if they are recommended by an authorized self-employed or a professional employed adviser acting on behalf of the investor on the basis of a written agreement. This document may contain unaudited third party information. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither Mountain Cleantech AG, nor Cleantech Invest AG, nor Mountain Cleantech Fund, nor any of their officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. This document and information contained herein is confidential and must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Swiss law.
Confidential – Copyright 2009
2
Mountain Cleantech AG
Mountain Cleantech AG – Overview • Longest established dedicated Cleantech team in German-speaking region • Fund #1 since 2007, Team is now launching its Fund #2 • 100% native German-speaking local investment team • Existing high quality late stage portfolio of 6 investments with aggregate revenues off EUR >320m 320 iin FY 2008 • Late stage focus allows for low technology risk, short exit windows, high IRR potential • Over 500 projects / deals reviewed by Mountain Cleantech team p.a. • Germany #1 region for Cleantech world-wide
Confidential – Copyright 2009
3
Mountain Cleantech Team Organizational Chart Team has been working together for several years Management Jürgen F. Habichler Managing Director
Alexander von Hutten Managing Director
Investment Team
Advisory Board
Felix Janßen Investment Manager
Daniel G. Koppelkamm Investment Manager
Gabriel J. Meurer Venture Partner
Dr. Günter Schneider Advisory Board
Research Analyst Deal Support pp
Research Analyst Deal Support pp
Dr. Arno Strehler Advisory y Board
Markus P. Stebler Advisory y Board
Back Office and Infrastructure supplied by Mountain Partners Family Office
Confidential – Copyright 2009
4
Cleantech Investing in Germany
Growth Capital in German Cleantech – The Opportunity
Confidential – Copyright 2009
5
Cleantech Investing in Germany
Cleantech
Confidential – Copyright 2009
Pioneer
6
Cleantech Investing in Germany German Clean Energy Political Framework Germany’s Cleantech position is based on a longstanding favourable political framework Extract of German regulations: 1961 Founding of the F d l Federal organisation for waste treatment to optimize waste sorting
1971 First environmental program to protect environment
1974 Founding of the F d l Federal Environment Agency
1985 Fourth Ordinance f Federal for F d l Immission Control Act (BImschV)
1999 Production Tax C dit Credit for Renewable Energy
2000 Act on Granting P i it tto Priority Renewable Energy Sources
2001 Promulgation to promote processing of waste oil into base oil
2003 Implementation of the Water Framework Directive
2004 Renewable Energy Sources Act entered into force on 1. August 2004
2005 Waste Water Ordinance (AbwV) Oridnance (AbwV), on Requirements for the Discharge of Waste Water into Waters
2009 Heating Energy Act, with renewed and widened support and broadened eligibility for programs
2009 Revising the Renewable Energy Sources Act in the Electricity Sector and Amending Related Provisions
Source: BMU
Confidential – Copyright 2009
7
Cleantech Investing in Germany Germany #1 Region for Cleantech World-Wide
Germany has seen rapid growth in their Clean Energy business (CAGR from 2000– 2007)
Note: Figure is based on public market data only.
Germany dominates wind and solar jobs among peers (2006)
Source: UNEP, “Green Jobs: Towards decent work In a sustainable, low-carbon world”; 2006.
Confidential – Copyright 2009
8
Cleantech Investing in Germany
Technology “M d in “Made i Germany“ G “
Confidential – Copyright 2009
9
Cleantech Investing in Germany Cleantech “Made in Germany” German companies are global leaders in Cleantech Global Trade of enviromental protection products
World market share of German Cleantech companies
Share in global trade with environmental protection products, 2006 by country
in selected sectors
!
20%
Photovoltaic
16%
41%
15%
16%
Wind Energy
Solar Heat
24%
17%
Decentral Water M Management t 40%
11%
12% 9% 8%
6%
5%
Thermal Insulation
4%
10%
Process Measuring & Control Technology 11%
Biogas Plants
Waste Water Treatment 65%
12%
0% G Germany
USA
J Japan
It l Italy
UK
German G average share in Global Trade Germany
Rest of World
Source: Umweltwirtschaftsbericht 2009; Ministry of Environmental, Natural and Reactor protection, Germany Confidential – Copyright 2009
10
Cleantech Investing in Germany
Lack of Venture Capital
Confidential – Copyright 2009
11
Cleantech Investing in Germany Germans are different different….
LOCUST-Mentality The LOCUST Mentality
The KRAUT-Mentality KRAUT Mentality
VS.
Why?
Confidential – Copyright 2009
12
Cleantech Investing in Germany Less money chasing Cleantech Deals in Germany Share of Venture Capital allocated to Cleantech Deals in % of total VC Investments per country of portfolio company in 2007 14%
Select German Cleantech Exits 12%
10%
8%
6%
4%
2%
0%
Germany
UK
Europe
Source: 2009 EVCA Yearbook, European Private Equity & Venture Capital Association Confidential – Copyright 2009
13
Cleantech Investing in Germany
Excellent…
Exit Track Record
Confidential – Copyright 2009
14
Cleantech Investing in Germany Favourable Exit Potential Select German Cleantech Exits
M&A
IPO
Source: 2009 EVCA Yearbook, European Private Equity & Venture Capital Association Confidential – Copyright 2009
15
What makes Cleantech Venture Capital Investing in Germany special? Technology „Made in Germany“ Cleantech
Lack of Venture Capital
Pioneer
Excellent…
The KRAUT-Mentality
Exit Track R Record d
… Confidential – Copyright 2009
16
Investment Opportunity
Fantastic F t ti Investment Potential!
Confidential – Copyright 2009
17
Investment Opportunity How to participate… Mountain Cleantech AG aims to raise EUR 100m for Fund # 2 – a Luxembourg SICAV-SIF structure Mountain Cleantech Fund SICAV-SIF – Key Terms Target Size:
EUR 100m
Investment Advisor:
Mountain Cleantech AG, Switzerland
Investment Fund:
Mountain Cleantech Fund SICAV-SIF, Luxembourg
Term:
8 yrs, 2 yrs extension
Fees:
2% Management Fee 20% Carried Interest 8% Hurdle Rate; Catch Up
First Closing:
Q2 2010
Special Terms:
Co-Investment rights for Cornerstone Investors
External Partners Administrator and Custodian
Legal Advisor
Confidential – Copyright 2009
Auditor
18
Mountain Cleantech AG 6. November 09
Confidential – Copyright 2009
1
Disclaimer and Confidentiality
The elements contained in this document have been prepared solely for the purpose of information and do not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any investment strategy. This Document is not an offer to acquire shares nor is it a Prospectus, nor a Private Placement Memorandum. Investments may be suitable for private investors only if they are recommended by an authorized self-employed or a professional employed adviser acting on behalf of the investor on the basis of a written agreement. This document may contain unaudited third party information. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither Mountain Cleantech AG, nor Cleantech Invest AG, nor Mountain Cleantech Fund, nor any of their officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. This document and information contained herein is confidential and must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Swiss law.
Confidential – Copyright 2009
2
Mountain Cleantech AG
Mountain Cleantech AG – Overview • Longest established dedicated Cleantech team in German-speaking region • Fund #1 since 2007, Team is now launching its Fund #2 • 100% native German-speaking local investment team • Existing high quality late stage portfolio of 6 investments with aggregate revenues off EUR >320m 320 iin FY 2008 • Late stage focus allows for low technology risk, short exit windows, high IRR potential • Over 500 projects / deals reviewed by Mountain Cleantech team p.a. • Germany #1 region for Cleantech world-wide
Confidential – Copyright 2009
3
Mountain Cleantech Team Organizational Chart Team has been working together for several years Management Jürgen F. Habichler Managing Director
Alexander von Hutten Managing Director
Investment Team
Advisory Board
Felix Janßen Investment Manager
Daniel G. Koppelkamm Investment Manager
Gabriel J. Meurer Venture Partner
Dr. Günter Schneider Advisory Board
Research Analyst Deal Support pp
Research Analyst Deal Support pp
Dr. Arno Strehler Advisory y Board
Markus P. Stebler Advisory y Board
Back Office and Infrastructure supplied by Mountain Partners Family Office
Confidential – Copyright 2009
4
Cleantech Investing in Germany
Growth Capital in German Cleantech – The Opportunity
Confidential – Copyright 2009
5
Cleantech Investing in Germany
Cleantech
Confidential – Copyright 2009
Pioneer
6
Cleantech Investing in Germany German Clean Energy Political Framework Germany’s Cleantech position is based on a longstanding favourable political framework Extract of German regulations: 1961 Founding of the F d l Federal organisation for waste treatment to optimize waste sorting
1971 First environmental program to protect environment
1974 Founding of the F d l Federal Environment Agency
1985 Fourth Ordinance f Federal for F d l Immission Control Act (BImschV)
1999 Production Tax C dit Credit for Renewable Energy
2000 Act on Granting P i it tto Priority Renewable Energy Sources
2001 Promulgation to promote processing of waste oil into base oil
2003 Implementation of the Water Framework Directive
2004 Renewable Energy Sources Act entered into force on 1. August 2004
2005 Waste Water Ordinance (AbwV) Oridnance (AbwV), on Requirements for the Discharge of Waste Water into Waters
2009 Heating Energy Act, with renewed and widened support and broadened eligibility for programs
2009 Revising the Renewable Energy Sources Act in the Electricity Sector and Amending Related Provisions
Source: BMU
Confidential – Copyright 2009
7
Cleantech Investing in Germany Germany #1 Region for Cleantech World-Wide
Germany has seen rapid growth in their Clean Energy business (CAGR from 2000– 2007)
Note: Figure is based on public market data only.
Germany dominates wind and solar jobs among peers (2006)
Source: UNEP, “Green Jobs: Towards decent work In a sustainable, low-carbon world”; 2006.
Confidential – Copyright 2009
8
Cleantech Investing in Germany
Technology “M d in “Made i Germany“ G “
Confidential – Copyright 2009
9
Cleantech Investing in Germany Cleantech “Made in Germany” German companies are global leaders in Cleantech Global Trade of enviromental protection products
World market share of German Cleantech companies
Share in global trade with environmental protection products, 2006 by country
in selected sectors
!
20%
Photovoltaic
16%
41%
15%
16%
Wind Energy
Solar Heat
24%
17%
Decentral Water M Management t 40%
11%
12% 9% 8%
6%
5%
Thermal Insulation
4%
10%
Process Measuring & Control Technology 11%
Biogas Plants
Waste Water Treatment 65%
12%
0% G Germany
USA
J Japan
It l Italy
UK
German G average share in Global Trade Germany
Rest of World
Source: Umweltwirtschaftsbericht 2009; Ministry of Environmental, Natural and Reactor protection, Germany Confidential – Copyright 2009
10
Cleantech Investing in Germany
Lack of Venture Capital
Confidential – Copyright 2009
11
Cleantech Investing in Germany Germans are different different….
LOCUST-Mentality The LOCUST Mentality
The KRAUT-Mentality KRAUT Mentality
VS.
Why?
Confidential – Copyright 2009
12
Cleantech Investing in Germany Less money chasing Cleantech Deals in Germany Share of Venture Capital allocated to Cleantech Deals in % of total VC Investments per country of portfolio company in 2007 14%
Select German Cleantech Exits 12%
10%
8%
6%
4%
2%
0%
Germany
UK
Europe
Source: 2009 EVCA Yearbook, European Private Equity & Venture Capital Association Confidential – Copyright 2009
13
Cleantech Investing in Germany
Excellent…
Exit Track Record
Confidential – Copyright 2009
14
Cleantech Investing in Germany Favourable Exit Potential Select German Cleantech Exits
M&A
IPO
Source: 2009 EVCA Yearbook, European Private Equity & Venture Capital Association Confidential – Copyright 2009
15
What makes Cleantech Venture Capital Investing in Germany special? Technology „Made in Germany“ Cleantech
Lack of Venture Capital
Pioneer
Excellent…
The KRAUT-Mentality
Exit Track R Record d
… Confidential – Copyright 2009
16
Investment Opportunity
Fantastic F t ti Investment Potential!
Confidential – Copyright 2009
17
Investment Opportunity How to participate… Mountain Cleantech AG aims to raise EUR 100m for Fund # 2 – a Luxembourg SICAV-SIF structure Mountain Cleantech Fund SICAV-SIF – Key Terms Target Size:
EUR 100m
Investment Advisor:
Mountain Cleantech AG, Switzerland
Investment Fund:
Mountain Cleantech Fund SICAV-SIF, Luxembourg
Term:
8 yrs, 2 yrs extension
Fees:
2% Management Fee 20% Carried Interest 8% Hurdle Rate; Catch Up
First Closing:
Q2 2010
Special Terms:
Co-Investment rights for Cornerstone Investors
External Partners Administrator and Custodian
Legal Advisor
Confidential – Copyright 2009
Auditor
18
