equity sam private equity sustainability fund ii creating sustainable value 2006

EquitySAM Private Equity Sustainability Fund II

Creating Sustainable Value

2006

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SAM Group Holding AG

SAM Group Holding AG

Founded on world-class research SAM offers three product areas

Private Equity

• Largest global VC fund investing in Cleantech

• First Cleantech VC fund in Europe

• Global deal flow

• Unique investment team and Advisory Council

• Dedicated technology specialists

• One of the world‘s largest and most experienced sustainability research teams (13 analysts)

• Sustainability database covering companies worldwide

Research

• Institutional mandates

• Investment funds

Asset Management

• Sustainability indexes• Dow Jones

• STOXX - European

• AuSSI - Australian

• 55 licensees worldwide

Indexes

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SAM Private Equity

Snapshot - SAM Private Equity

Team (16 Employees)

• 6 Principals

• 5 Investment Directors and Technology Analysts

• 3 Financial Analysts and Fund Administrators

Portfolio (25 active companies)

• SPE – 18 active companies (plus 1 exited, 4 inactive)

• CDP Mandate – 6 companies (5 co-invest with SPE)

• OPG Mandate – 9 companies (1 co-invest with SPE)

• Board representation – 21 of 25 active portfolio companies

• Lead / Co- lead investor – 23 of 32 transactions

• Facilitated LP co-investments – 5 transactions

Active Manager

Offices

• Switzerland (HQ) – 2 Principals, 3 IDs/TAs, 2 FAs

• Canada – 2 Principals, 2 IDs/TAs, 1 FA

• USA – 1 Principal

• Australia – 1 Principal

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SAM Private Equity Team

Gina DomanigHead PE

Gianni OpertoPrincipal

Walter LocherPrincipal

Roland Pfeuti Principal (AUS)

Luc CharronPrincipal

Peter CrombiePrincipal

Europe North America

PRINCIPALS

INVESTMENT DIRECTORS &TECHNOLOGY ANALYSTS &FINANCIAL ANALYSTS

Markus MoorInvest. Director

Energy

Philipp Hasler Invest. Director

Materials

Helge Daebel* Tech Analyst

Water

Charles VasletTech Analyst

Energy

Scott MacDonaldInvest. Director

Software

Hans DellenbachFinancial Analyst

Fabienne Monod Office Manager

FUND ADMINI-STRATORS

Advisory Council

Julia WingenFinancial Analyst

Diane GauthierAdmin. Assistant

* Helge Daebel will start in June

tbaTech Analyst

Materials

Dany OuelletFinancial Analyst

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The Cleantech Sector

CLEANTECH – A Rapidly Emerging Investment Area

• Continuing growth of global demand with increasing quality requirements

• Limited supply of natural resources forcing alternative technology strategies

• Efficiency gains sought to increase competitive advantage and drive down costs

“Clean technologies (Cleantech) optimize the use of natural resources while reducing environmental impact in ways that enhance economic value”

Disruptive technology shifts for Energy, Advanced Materials, Water / Agriculture

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The Cleantech Sector

CLEANTECH – A Compelling Investment Category

Critical Mass: In the last 3 years > US$3 billion in venture capital has been invested in the Cleantech companies thus increasing from 1% to 7% of all venture deals.

Substantial Growth: Clean technologies serve large and fast growing markets

• The market for automation technologies that increase efficiency of energy management is valued at US$2-$5 billion.

• Global wind energy markets, valued at US$5 billion in 2000 are expected to grow to $50 billion by 2012.

• Industrial demand for clean water is driving the growth of water technologies from a US$6 billion market today into an expected US$20 billion market by 2012.

Strong Deal Flow: There is a strong and growing flow of attractive deals with over 500 venture capital transactions in this sector in the last 3 years.

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SAM Private Equity

• Novel UV systems• Robust membrane filtration • Lab-on-chip analytics• Sludge disintegration• Selective irrigation• Food safety & traceability• Biopesticides

• Drinking water disinfection• Wastewater treatment• Desalination• Analytics• Biosolids minimization• Infrastructure renovation• Smart remote sensing• Enzyme technology

• Advanced separation technologies

• Tape casting• UV curing• Dispersion• Self assembly• Industrial biotechnology

Venture Grade

• Large market

• Scalable business model

• Strong customer value proposition

• Decentralized power generation

• Energy storage• Vehicle drive train• Power for portable devices

& mobility• Power quality

• Renewable Energy• Fuel cells• Fuel processing• Batteries & Ultra-Cap• Key materials• New process technologies

• Recovery of high value materials

• Functional coatings• Conductive polymers• Ceramics / catalysts• Enzymes

Energy

Materials

Water / Agriculture

CLEANTECH – A Diversified Portfolio Of Emerging Technologies

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• Wave Energy Converter called “Pelamis”

• Snake-like floating device that will be moored in water depth of 30 – 100 meters

• Single sections are connected by joints & hydraulic rams which pump high pressure oil through variable displacement motors thus producing electricity

• Diameter of 3.5m, length of 120m, energy capacity of 750kW /Pelamis

Energy Transaction – Ocean Power Delivery Ltd.

Technology

InvestmentSummary

• World’s first wave Full Scale Prototype to deliver power to the grid (2004)

• US Electric Power Research Institute (EPRI) declares Pelamis to be best in class, stating that “the device development program provides a significant amount of reassurance that the device will operate as predicted”.

• OPD secures it’s first commercial sale of 3 devices in Portugal worth EUR 9 mn

Market &(Future)Outlook

• SAM provided leadership in the most recent private financing round

• SAM assisted the company to negotiate and structure its first commercial sale to Portugal’s largest renewable energy developer

• Gianni Operto, Principal, on the Board of Directors

SPE role &value added

• Total invested: EUR 3.8 m

• Share: 16.0%

• Date of investment: 2002 & 2005

• Location: United Kingdom

• Other investors: NHTV, 3i, CTIL

• Source of deal: strat. investor

• Status: on track

• Exit plan: IPO, 2005 or 2006

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Switches and sensors that operate wireless and battery-less. Combination of ultra-low energy consuming radio technology with unique energy conversion devices and sensors.

Breakthrough in low energy consumption for a radio module. The proprietary technology allows sensor or switch to be operated by the energy available and harvested in the near environment of the sensor.

Technology

InvestmentSummary

Today:

Mid-term:


• Lead Series-C round financing

• Ongoing constructive discussions on market development issues (energy industry)

• Gianni Operto, Principal SPE, on the Board of Directors


3.6bn market of switches and sensors for building automation (light switches, sensors etc.). Expected turnover in this market 30-40mio in 09/1031bn market of switches and sensors for industrial automation. Expected turnover in this market 20-30mio in 09/10

>4bn market of switches and sensors for vehicle applications as well as the consumer electronics market are targeted in the medium term. Expected turnover in these markets can be significant.

Energy Transaction – Enocean GmbH

• Total invested: EUR 3 m

• Share: 13.0%

• Date of investment: Feb. 2005

• Location: Germany

• Other investors: Siemens, Wellington

• Source of deal: Referred


• Exit plan: Trade sale / IPO, 07/08

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Patented “multi-bore” ultrafiltration membrane to treat drinking water, industrial water or wastewater. The robust structure of the membrane significantly decreases expensive risk of membrane leaking. For the customer this leads to enhanced reliability, lower operational and lower capital costs.

Technology

InvestmentSummary


• Lead and syndicated the round.

• Active participation and support in recruitment, financial reporting and transaction structuring. Reorganized reporting and helped acquiring new loans.

• Gina Domanig, Head SPE, on the Board of Directors.


• Ultrafiltration market for drinking/industrial applications currently EUR 400 mio.

• Total market including wastewater applications expected to be EUR 8 bn in 2010.

• Huge market potential in Asia for home applications.

Water Transaction – inge AG

• Total invested: EUR 2.5 m

• Share: 20.5 %

• Date of investment: Aug 2004

• Location: Germany

• Other investors: Siemens VC, Dynamics.



• Exit plan: Trade sale / IPO, 2007

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• Leading developer of networking and communications

technology of harsh electrical and climatic environments

• Ruggedized Ethernet Switches for utility substations and harsh industrial applications

• RuggedCom’s software/hardware products enable the communication backbone for the digital power grid of the future

Energy Transaction – RuggedCom Inc.

Technology

InvestmentSummary

• Deployment of Ethernet for substation automation is gaining strong momentum as electric utilities replace antiquated technologies with the flexibility and cost effectiveness of Ethernet as the communications backbone.

• Other growing markets include Industrial, intelligent transportation and government

• Over 150 customers including: GE, ABB, Siemens, AEP, OPG, Hydro Quebec


• OPGV Lead the Series A financing and syndicated the deal.

• Assisted the company strengthen the management team, develop an employee compensation structure and implement disciplined financial and operational controls.

• Scott MacDonald, Chairman of the Board of Directors and member of the Audit and Compensation Committees

Role & value added

• Total invested: CAD 1.5 m

• Share: 11%

• Date of investment: 2003

• Location: Canada

• Other investors: EPCOR, E2


• Status: On track

• Exit plan: Trade sale 2006

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SAM’s Perspective

• What types of companies are suitable for VC Financing?

• What are the most promising investment areas in the cleantech sector?

• What can a company expect from their VC partners once the deal is closed?

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Scott MacDonald

SAM Private Equity

[email protected]

equity sam private equity sustainability fund ii creating sustainable value 2006

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