Althelia Ecosphere Sustainable land use as an asset class TBLI Zurich – November 14th 2014

CONFIDENTIAL - FOR DISCUSSION ONLY 1

Disclaimer This document is CONFIDENTIAL AND FOR DISCUSSION PURPOSES ONLY and has been prepared for professional investors by a Sales and Marketing function within Althelia Climate Fund (“Althelia”). This document does not constitute an offer or a solicitation to engage in any trading strategy or the purchase or sale of any financial instruments. Given its general nature, the information included in this document does not contain all the elements that may be relevant for a recipient to make an informed decision in relation to any strategies or financial products discussed herein. The information and opinions contained in this document have been obtained from sources believed to be reliable, but Althelia makes no representation, express or implied that that such information is accurate or complete. Other financial institutions or persons may have different views or draw different conclusions from the same facts or ideas analysed in this document. Any scenarios, assumptions, historical performances, indicative prices or examples of potential transactions or returns are included for illustrative purposes only, and we can give no assurance that any favourable scenarios are likely to happen, that it is possible to trade on those terms or that any potential returns can be achieved. Althelia is not providing recipients of this document with financial legal, tax or any other type of advice. Certain strategies or potential transactions discussed in this document involve the use of derivatives, which are complex in nature and give rise to substantial risk, including the risk of total loss of any investment. Addressees of this document must understand and agree that Althelia is not in a position to assess whether any of the strategies discussed herein may be suitable for their financial needs, circumstances or requirements. Addressees must independently make such suitability assessment, using such professional advisors as they make require. Althelia can therefore not accept any liability for any direct or consequential losses arising from any action taken in connection with the information contained in this document. By accepting this document you agree to be bound by the foregoing limitations. This document is prepared for eligible counterparties and professional clients only, it is not intended for retail clients (as such terms are defined in the Markets in Financial Instruments Directive 2004/39/EC (“MiFID”)), and should not be circulated to any such retail clients. © Althelia. All rights reserved.

CONFIDENTIAL - FOR DISCUSSION ONLY 2

CONFIDENTIAL - FOR DISCUSSION ONLY 3

4

70%  increase   in   food  demand  by  2050

 

100%

of Unilever’s supply chain certified by 2020

$2.5 TRILLION CUMULATED SALES FROM CONSUMERS GOODS FORUM’S MEMBERS WHO PLEDGE ZERO-DEFORESTATION BY 2020

14%

What are we talking about?

of palm oil is n o w R S P O certified

$1000/ha/year  average  value  created  by  

ecosystem  services

1. Valorisation of Natural

Capital

2. Demand for certified

commodities

3. Increased Agri

Productivity

Althelia’s value creation leverages upon three mutually reinforcing elements

Emerging price signal for components of the landscape that are currently ‘economically invisible’ (e.g. PES, carbon, clean water, standing forests)

Capital and technical resources can be deployed to meet local and int’l resource demand (e.g. economically viable farming conducted outside of the forest)

Increasing demand for certified sustainable commodities, which are based on lower-environmental impact, reduced deforestation and social benefits

5

Efficient capital deployment unlocking multiple value streams •  Investments take the form of commodity

finance agreements

•  Structured with upfront disbursement (capex) and commitment to purchase PES and certified commodities to meet opex/running costs (payment for performance)

•  Revenues generated from environmental assets (e.g. emission reductions) and real assets (e.g. certified commodities)

•  Inclusion of strong environmental and social governance (ESG) covenants

•  Target above market returns, as well as significant and quantified non-financial impacts (biodiversity, climate, social development, etc.)

CONFIDENTIAL - FOR DISCUSSION ONLY 6

Purchase of environmentally certified

commodities (FSC, Coffee, etc.)

Supply chain purchaser

Certified commodities

(FSC, Coffee...)

Pledge and /or margin

Revenues from PES

Illustrative example of an Investment Implementation

Before (high impact)

After (low impact)

Env

Impa

cts

Althelia Climate Fund

Payment for Ecosystems

Servives

Social development, jobs creation

investment

What Althelia is not…

CONFIDENTIAL - FOR DISCUSSION ONLY 7

•  A private equity fund

•  Focuses on voluntary markets and supply chains which attract premium for quality VERs or agri produce

•  Has diversified revenue streams and ‘Total Economic Value’ approach

•  A traditional carbon fund

•  Does not buy shares •  Does not have exit issue

•  A timber fund or traditional agri fund

•  Does not buy or lease land •  Has a multi-revenue stream approach

What Althelia is NOT… … as Althelia:

•  A buy-and-hold fund or hedge fund

•  Has an active risk management, macro-hedge and monetisation strategy approach

•  A below market-return Impact Investment fund

•  We deliver above-market return and clear and quantified non-financial returns to investors

Some Key features of the Fund

CONFIDENTIAL - FOR DISCUSSION ONLY 8

•  Luxembourg-approved SIF

•  Target size: EUR150m – already EUR70m committed

•  Target portfolio: 20 to 25 investments within 3 years

•  Investors: Public and Private organisations

•  Very experienced team, with complementary skills

•  Demonstrated risk management capability

•  Strong ESG model

CONFIDENTIAL - FOR DISCUSSION ONLY 9 The Church of Sweden

Success relying on strong investors and partnerships with key organisations

As a conclusion: Althelia delivers on 4Ps

Policy •  Althelia develops news models that can help shaping national and international policies on climate change and natural capital

Profit •  Althelia returns fair profit to its investors, making sure that interest of all stakeholders are aligned

CONFIDENTIAL - FOR DISCUSSION ONLY 10

People •  Althelia invests to provide food security, local development and poverty alleviation

Planet •  Althelia invests to mitigate and adapt to Climate change impacts, preserve ecosystems and biodiversity

Contacts

Althelia Climate Fund is a Luxembourg SICAV-SIF (Specialised Investment Fund), regulated by CSSF (Commission de Surveillance du Secteur Financier) under the SIF Law of 13 December 2007 and registered in Luxembourg under R.C.S. Luxembourg 166.125

CONFIDENTIAL - FOR DISCUSSION ONLY 11