Mobilising capital to build a stronger, greener economy Presentation to the OECD, Paris 12th June 2014 Rob Cormie Chief Operating Officer

1. OECD GREEN INVESTMENT FINANCING FORUM
Paris, 12-13 June 2014
Mobilising capital from institutional investors: opportunities
and challenges for green investment banks
Trends in Institutional Investment in EU Renewable Energy
Projects
Tom Murley
Head of Renewable Energy, HgCapital

2. © Copyright 2013 HgCapital 2Sector expert investors supporting management to grow industry champions
• Europe’s largest pure-play renewable energy infrastructure
investor
• Renewables sector established 2004
• €900 million of institutional equity capital raised since 2006
• Backed by leading global institutional investors
• Dedicated team with 70+ years power sector experience
• Part of HgCapital, a leading European Private Equity Firm
• Founded in 1989
• Over €8 billion of capital committed to 7 funds since 2000
• Equity for growth buyouts and renewable energy infrastructure
• Owned by partners and employees
HgCapital
Background Europe’s largest pure-play renewable energy fund manager
€900 million of equity, invested in over 70 projects with over €2 billion in value
Firm Snapshot

3. © Copyright 2013 HgCapital 3Sector expert investors supporting management to grow industry champions
35,374
49,416
43,768
57,735
59,305
44,103
23,739
3,762
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2007 2008 2009 2010 2011 2012 2013 2014
€Millions
EU Refinancing
EU M&A
EU New Build
EU: Macroeconomic and regulatory risks and finance shortage
stalling growth
EU RENEWABLE PROJECT INVESTMENT – NEW BUILD AND EXISTING ASSETS, DEBT, EQUITY, M&A, REFINANCING (2007-2014)
Source: Bloomberg / New Energy Finance

4. © Copyright 2013 HgCapital 4Sector expert investors supporting management to grow industry champions
OBJECTIVE  Map institutional / financial investor equity investment activity in EU renewable energy projects and
infrastructure companies since 2004
DATA COLLECTED
AND ANALZED
 >450investments, €18 billion equity investments by >90 financial investors, including
 >20 Dedicated renewable infrastructure funds
 3 Dedicated renewable private equity funds
 25 General infrastructure funds
 2 Hedge funds
 5 General private equity funds
 >20 Direct investors – pension funds, large family offices and insurance companies, average AUM>€10
billion
 6 listed renewables funds
 UK Green Investment Bank (direct equity investments only)
 Excluded
 German and Danish retail investor funds
 Regional and small sector funds with <€75m or less in capital (e.g. small solar funds)
 UK EIS and VCT funds (e.g. Octopus)
 Small family offices making a few investments
SOURCES AND
METHOLOGIES
 Sources: Prequin, Bloomberg New Energy Finance, New World Energy Network, Sparkspread, Infrastructure
Journal, Fund Manager Websites, HgCapital discussions, Fund manager conference presentations
 Equity invested based on reported data sources, or if not reported using standard industry comparable (e.g.
average selling price of German wind farms circa€1.6m/MW and 75% average gearing, average Italian solar pv
deal equity circa €600k per MW). +/- 5% error on deployment.
Institutional equity investment in EU renewables 2004-2014
Dataset and methodology

5. © Copyright 2013 HgCapital 5Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Other
Public Bank
Renewable PEFund
Hedge Fund
General PEFund
Listed Renewable Fund
Infrastructure Fund
Insurance/Pension Fund
Unlisted Renewables Fund
Rapid growth in institutional equity investment
Source: Proprietary HgCapital research.
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS (€ MM.) BY INVESTOR TYPE
Investment
Trends

6. © Copyright 2013 HgCapital 6Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
UK
Sweden
Spain
Ireland
Italy
Germany
France
Denmark
Other
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS (€ MM.) BY COUNTRY
Shift to Northern Europe (and the UK in particular)
Source: Proprietary HgCapital research.
Investment
Trends

7. © Copyright 2013 HgCapital 7Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating & Construction
Development
Operating & Development
No Construction Risk
Operating
Construction Risk
Strong institutional preference for operating projects
(2013 and 2014 construction skewed by a few large offshore wind deals)
Investment
Trends
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS(€ MM.) PROJECT STATUS
Source: Proprietary HgCapital research.

8. © Copyright 2013 HgCapital 8Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Project Debt
Dev Cap
P2P
Growth Cap IPP
Project Equity
Strong institutional preference for project-level equity
Investment
Trends
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS(€ MM.) TYPE OF CAPITAL
Source: Proprietary HgCapital research.

9. © Copyright 2013 HgCapital 9Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Merchant
Semi Merchant
Feed In Tariff
Strong institutional preference FITs and UK RO
(Semi-merchant = UK RO and Italian Wind)
Source: Proprietary HgCapital research.
Investment
Trends
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS(€ MM.) REVENUE SOURCE (semi-merchant = UK)

10. © Copyright 2013 HgCapital 10Sector expert investors supporting management to grow industry champions
274 345
450
540
691
812
1,111
4,096
2,011
4,160
3,346
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Offshore Trans
Hydro
Biomass
Biogas
Solar Thermal
Solar PV
Offshore Wind
Onshore Wind
Strong institutional preference onshore wind, followed by offshore
wind and PV
Investment
Trends
INSTITUTIONAL EQUITY INVESTMENT IN EU RENEWABLE PROJECTS(€ MM.) TECHNOLOGY
Source: Proprietary HgCapital research.

11. © Copyright 2013 HgCapital 11Sector expert investors supporting management to grow industry champions
Institutional investors – stage / risk profiles differ among investors
PENSION
FUNDS/
INSURANCE
LISTED
FUND/PUBLIC
BANK & OTHERS
(€ MM.)
GENERAL
INFRASTRUCTUR
E FUNDS (€ MM.)
RENEWABLE
INFRASTRUCTUR
E,PE AND HEDGE
FUNDS (€ MM.)
Source: Proprietary HgCapital research. Others include funds of funds
0
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating
No Construction Risk
Operating & Development
Development
Construction Risk
0
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

12. © Copyright 2013 HgCapital 12Sector expert investors supporting management to grow industry champions
€0
€500
€1,000
€1,500
€2,000
€2,500
€3,000
€3,500
€4,000
€4,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EU Renewable Financial Investors
Investment by Ownership Share 2004-14
By Equity Invested (€MM)
Minority
Majority
More minority interests as direct investors and GIBs emerge
Investment
Trends
Source: Proprietary HgCapital research.

13. © Copyright 2013 HgCapital 13Sector expert investors supporting management to grow industry champions
€0
€1,000
€2,000
€3,000
€4,000
€5,000
€6,000
Unlisted Renewables
Fund
Insurance/Pension
Fund
Infrastructure Fund Listed Renewable
Fund
General PE Fund Hedge Fund Renewable PE Fund Other Public Bank
EU Renewable Financial Investors
Investment by Ownership Share 2004-14
By Equity Invested (€MM) Minority
Majority
Direct investors and GIBs favour minorities
Investment
Trends
Source: Proprietary HgCapital research.

14. © Copyright 2013 HgCapital 14Sector expert investors supporting management to grow industry champions
1
2
4
7
9
10
11
12
16
20
23
1
2
4
6
7
11
14
0
5
10
15
20
25
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
NumberofFundManagersandDirectInvestors
CumulativeFundsRaised&
CumulativeDirectInvestments
(€Millions)
Cumulative Listed Funds Raised
Cumulative Direct Investment
Cumulative Private Funds Raised
Number of Fund Managers
Number of Direct Investors
Institutional investors increasing in number and capital
EVOLUTION OF EU RENEWABLE POWER SECTOR INVESTMENT (2002 – 2014)
Source: Preqin & Proprietary HgCapital research.

15. © Copyright 2013 HgCapital 15Sector expert investors supporting management to grow industry champions
2
3
4
5
6
9
10
11
13
15 15
0
2
4
6
8
10
12
14
16
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
NumberofFundManagers
CumulativeFundsRaised$Millions
Cumulative FundsRaised
Number of Fund Managers
We have seen a similar pattern before
EVOLUTION OF US POWER SECTOR INVESTMENT FUNDS (1987 – 2014)
Source: Preqin & Proprietary HgCapital research.