a new approach to financing cleantech companies

Nov. 2007 1/17A new approach to finance Cleantech Companies

TBLI-Europe Jürgen Habichler

- A new approach to financing Cleantech Companies -

Jürgen Habichler, Managing Partner

Mountain Cleantech AG

Cleantech Invest AG

www.cleantech-invest.ch



Table of Contents

1. The Cleantech Industry – Overview

2. Investment in a Promising Market

3. The Group Structure

4. Cleantech Invest AG

- Novel Investment Approach

- Investments – Portfolio Companies

4. Excursus - Cleantech Initiative Deutschland

5. Our Success Factors

6. Contact



Clean Technologies

- Bio-Gas / Bio-Diesel / Bio-Ethanol

- Solar / Photovoltaic

- Wind Energy

- Fuel Cells/Advanced Batteries

- Hybrid Systems

- Lighting / Buildings

- Emission Control

- more efficient usage of resources

…

The Cleantech Industry

Overview (1/2)

Recycling &Waste

Water &Wastewater

EnergyGeneration

EnergyStorage

Air & Environment

EnergyInfrastructure TransportationMaterials

AgricultureManufacturing

/ IndustrialEnergy

Efficiency

So – what really is Cleantech? It‘s the striving for an alliance between Technology and Nature, rather than

exploiting the latter like in the first periods of industrialization. The term Cleantech thus embraces all (hightech)

methods, which either reduce the production of harmful emissions or work in a more resource-saving way.



The Cleantech Industry

Overview (2/2)

• Temporarily #2 Investment-Sector in USA in 2006

• Pure-play Cleantech funds (KleinerPerkins, Khosla Ventures, nth power, etc.)

• EUR 1.9 billion invested in Cleantech Ventures in Europe since 2003

• UK and Germany as the most active nations for Cleantech investing

• CVN estimates about 900 to 1100 new venture investments in Europe until 2010 totalling

between EUR 4.8 billion and EUR 10 billion in capital invested

• Emergence of dedicated Cleantech funds (ETF, Zouk, Emerald, Demeter, Capricorn, etc.)

The US are leading the Cleantech Wave

Europe is catching up

Germany could emerge as Cleantech Country #1 in Europe

• #1 worldwide in Solar, Wind, Bio-Diesel, Bio-Gas

• Top Cleantech success stories and exits

• …but limited number of funds with a Cleantech orientation,

• …UK / EU based funds do few deals in D/A/CH

http://www.qcells.de/index.php

http://www.conergy.de/DesktopDefault.aspx

http://www.schmack-biogas.com/wDeutsch/index.php

http://www.bio-gate.de/index2.html

http://www.nanogate.de/



Investment in a Promising Market (1/2)

Positive development of the Cleantech industry

– Continuous market growth due to limited raw materials, structural deficits in the supply of energy, the issue of climate change, etc.

– Increasing market volume of € 60 bn. in 2006 to € 400 bn. in 2030 predicted

– World market share of German companies in the fields of Cleantech up to 30 %

– „German companies already offer solutions for global issues by today.“ Sigmar Gabriel, German minister for the environment

Favourable political conditions

– Acceptance of the „Erneuerbare-Energien-Gesetz“ (feed-in tariffs for alternative energy over the next 25 years) in Germany, similar laws in many other countries

– Guaranteed compensation for eco-energy (favourable abatement conditions / sales-conditions for eco-energy provider)

– Germany is the leading R&D location of environmental technologies

Source: Cleantech Venture Network (www.cleantech.com) Cleantech Survey Hoyer & Partner Private Equity Consultants Greentech Survey of Roland Berger Strategy Consultants/Bundesministerium für Umwelt



Investment in a Promising Market (2/2)

The opportunity for Venture Capital in Cleantech

– The development stage is completed in many fields, the stage of commercialisation has begun

– US-Market: $ 3 bn. Invested in the Cleantech industry in the last three years

– Germany is catching up! Aprox. € 450 M. invested in Cleantech companies in 2005

continuous increase anticipated

– The interest of independent fund-managers is rises, but a lack in the focus on Cleantech entails risks due to limited knowledge in that field

– Strong deal-flow: Up to 200 financing requests at leading venture capital companies

– Excellent exit-potential

• Via trade-sales: Leading energy- and technology companies (BP, GE, Shell, Siemens, etc.) focus more and more on Cleantech

• Via IPO: Excellent performances at stock exchanges of Cleantech shares after listing

Source: Cleantech Survey Hoyer & Partner Private Equity ConsultantsGreentech Survey of Roland Berger Strategy Consultants/Bundesministerium für Umwelt



The Group Structure

Mountain Real Estate

Matthias Kuehn Jürgen Habichler

Cleantech Invest AGMountain Super Angel

Daniel S. Wenzel Ayman Ashour

BluehillIdentification Technology

FurtherInvestment vehicle

Co-operation partnerfor co-investments

Furtherfund-vehicle

planned for 2008



The Group Structure

Fund Management Team

Jürgen F. Habichler (BA in Computer Science, MBA Wharton) – Managing Partner

since 1994 active in the venture capital sector

passed activities: Morgan Stanley Investment Banking, Siebel Systems 2001, Atlas Venture

Daniel S. Wenzel (Diploma in Business Administration – WHU) – Associate Partner

Co-founder and partner of Mountain Partner

passed activities: ACG AG, Bain & Company, Dresdner Bank, BNP Paribas

Alexander von Hutten (BA in Economics / Business Admin. – EBS) – Associate Partner

12 years experience in the Cleantech/Energy sector

until 2007 COO of CVP Clean Value Plastics GmbH



The Group Structure

Advisory Board

Hemjö Klein (Chairman, pending)

CEO of LIVE Holding AG, deeply

involved as an investor and Business Angel

Dr. rer. pol. Cornelius Boersch (Diploma in Business Administration – EBS)

elected “Entrepreneur of the Year” Germany in 2002, entrepreneurial activities in the Mountain Partners AG (Switzerland)

Prof. Jochen Tschunke

Business Angel and investor, co-founder and partner of the EQUITYplus GmbH

Dr. Guenter Schneider

Managing Director of M+W Zander FE GmbH

Torsten Merkel

Torsten is managing the European Operations of the Cleantech Group™

Samer Zureikat (BSc Economics, Wharton) – Associate Partner

12 years in an entrepreneurial capacity in the Middle East and North Africa



Cleantech Invest AG

Our Approach to create value

MarketInvestment Approach

Organisational Set-Up

Track Record

Cleantech Market

• Various drivers ensuring long-term market growth

• Political commitment to clean energy / technology

• Public sentiments towards climate protection

• Broad definition of Cleantech, incl. energy, water, material, logistics, recycling, etc.

• € 2 Bn+ of cleantech investments during 03-06 (representing 500+ firms)

• Attractive exit potentials (both IPO + M&A)

Institutional Business Angel investment style

• Opportunistic• Syndication oriented• Faster than VCs• Exit-oriented• Ticket size € 100K - € 2 Mio. • No. of investments 15 - 20

Allocation Strategy:

• 40% Seed / Early stage• 40% Late Stage / Pre-IPO• 20% Recap / MBO / spin off

• 80% D/A/CH• 15% Europe• 5% ROW

• Leveraging Mountain Partners‘ Network!

Initial Board of Directors

• Jürgen F. Habichler• Daniel S. Wenzel• Alexander von Hutten

• Excellent track record• Cleantech inv. expertise• PE and VC skills• Part of Mountain Partners Group

Advisory Board• 5-10 industry experts, serial entrepreneurs, investors

Entrepreneurial investors and “Trusted Investors”• Experienced Business Angels with sector expertise• Leverage for sourcing, due diligence and portfolio management

• IRRs of prior Investments in between 99,7% and 4611,3%

• Currently invested in three promising projects:

- Sinosol (Photovoltaic,

wholesaler)

- Cowatec (Planing & installation

of biogas facilities)

- BioGate (Hygiene technology)

• Close cooperation with KfW (automatic doubling of investment sum without claiming for management leadership)

• Strong project pipeline for 2007 /2008



Cleantech Invest AG

Novel Investment Approach (1/2)

Pre-IPO Investments in close co-operation with experienced partners

Mountain Partners’ fast and opportunistic investment approach is highly valuable for companies in „special situations“

Diversified Portfolio consisting of many small investments(on average €50K to €100K)

The Investment Strategy of Cleantech Invest AG

Seed Pre-IPO Special Situations1/3

Company 1 Company 2 Company..

Company .. Company .. Company ..

Company .. Company .. Company n

Risk minimising

Return potential maximising

extraordinary favourable entry conditions

• Distressed• Growth• Buy-Outs• Many more

High ROI at pre-IPO discounts and controllable exits

1/3 1/3



Cleantech Invest AG

Novel Investment Approach (2/2)

“Syndicated”; in cooperation with “trusted advisors” / other bus ang.

With other “trusted advisors” i.e. business angels / active entrepreneurs

Deal driven – based on opportunities

Seed, Early, Growth, Pre-IPO, Recap

Based on opportunities (€100K to €2M)

Depending on Stage; at least adjusted 3x required

“Flexible” including various financial instruments

Minimum 6 – 10 weeks (in-depth DD)

Often alone or with similar VCs. Usually no bus. angels involved

Very stringent. Often not fulfilled within a certain time frame

Usually one specific focus (i.e. early)

Pre-determined range (typ. €3M-€5M)

Early Stage: at least 10x

Mainly direct equity participations

Primarily through Corporate Finance Advisors

Traditional VC Approach

Rigid investment approach

Cleantech Invest AG

Flexible investment approach

Investment Focus

Size of Investments

Return Potential

Transaction Structure

Time Line

Syndication

Pre-Closing Requirements

Deal-Flow Generation

Characteristics

Proprietary deal flow through investors, own network and “trusted advisors”



Cleantech Invest AG

Investments – Sinosol AG

• Sinosol AG is a German holding company with affiliates in Peking, Stuttgart and Frankfurt, which bundles the following services:

– “Renewable energies”-companies in China (Trading of photovoltaic-modules, PV-system solutions, investment vehicle)

– Technology- and sales companies in Europe (PV-systems, tracker systems und PV-project financing)

• Aims to obtain a market leading position in the Chinese market for renewable energies

• Target markets are Germany and China

• Since January 2006 China accepted laws that are supposed to increase the share of renewable energies up to 10 %

• Cleantech Invest / Mountain Partners invested in April 2007 to finance the organic growth

• Strong growth of sales volume, IPO planned for 2008



Cleantech Invest AG

Investments - Covatec

• Cowatec is a System provider for planning, installation and operating of bio gas facilities

• Market leading position with numerous plants installed

• Strong management-team with a high amount of industry experience

• Competitive edge due to special enzymes that increase the bio gas outcome

• Mountain Partners leads the syndicate of top-class investors

• IPO planned for 2008



Excursus

Cleantech Initiative Deutschland

• Founded in June 2007 by well-known associates, entrepreneurs and personalities of the

German speaking cleantech industry

• Based on a cooperation of Mountain Cleantech AG and the Cleantech Network that has

significantly shaped the term „Cleantech“

• The objective of this initiative is to raise the attention and catalyze the development of

cleantech.

• We understand ourselves as a platform for communication, exchange of interests and

information directed to business, politics and science to establish cleantech in Germany,

Austria and Switzerland.

• Led by an Advisory Board composed of well-known representatives from business, politics

and science

Advisory Board members:

• Jürgen Habichler (Mountain Cleantech AG)

• Torsten Merkel (Cleantech Network)http://www.cleantech-deutschland.de



Our Success Factors

• “Entrepreneurs for entrepreneurs”

• Opportunistic investment approach differs from traditional VC approach

• Strong and promising „deal flow“ in the Cleantech sector

• Premier network of business angels, “trusted advisors”, industry experts and political

decision makers

• VC experienced management team and seasoned advisory board

• International network in VC / PE for co-investments / follow on rounds

• Existing investment (company) portfolio

• Track record in building / exiting (Cleantech) companies

• Attractive return profile for investors

• Engagement “beyond the edge of the plate”

Investing in Sustainability…Investing in the Future…Investing in Cleantech Invest!



Contact

Jürgen Habichler +49 160 964 64 055

Mountain Cleantech AG

Fuhrstrasse 12

8820 Wädenswil / Zürich

Switzerland

[email protected]

www.cleantech-invest.ch

It is with great pleasure that we would like to present the amenities of a financial investmentin Mountain Cleantech to you in person and kindly ask you to address your contact request to:

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