Business, Finance & Cities:

climate action for Paris

Ian Simm

20th March 2015

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Impax Asset Management

Investing in Environmental Markets since 1998

100+ institutional investor clients

Assets Under Management: £3.0 billion

Listed Equities Infrastructure (Renewable Power Generation) Property

Offices in London, Hong Kong and the United States

Experienced, multidisciplinary team of 30 investment professionals

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*As of December 31, 2014. Company and AUM history includes three private equity funds and four advisory accounts which are not included as part of Impax’s GIPS compliant business. Total AUM of the GIPS verified business is US$3.5bn as of December 31, 2014. This information is presented as supplemental to the Annual Disclosure Presentation which can be found at the back of this presentation.

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EnergyEnergy Efficiency■Power Network■Industrials■Buildings■Transport■Consumer

Alternative Energy■Developers &

IPPs■Solar■Wind■Biofuels■Other

Environmental Markets (FTSE definition)

Some sub-sectors have an additional ‘diversified’ category not shown above for the sake of clarity.

Food, Agriculture& Forestry■Sustainable & Efficient

Agriculture■Logistics, Food Safety &

Packaging■Sustainable Forestry &

Plantations

WaterWater Infrastructure & Technologies■Infrastructure■Treatment■Utilities

Pollution Control■Pollution

Control Solutions

■Testing & Gas Sensing

■Public transportation

Waste/Resource RecoveryWaste Management & Technologies■ Tech Equipment■ Recycling & Processing■ Hazardous■ General

Environmental Support Services■ Consultancies■ Carbon & Asset Trading

Total Assets of Institutional Investors

Non-fund pension assets11.6

Insurance companies24.6Pension

funds 22.8

Investment managers

15.4

Foundations & endowments

1.5

Total = US $75.9 Trillion

Source: Climate Policy Institute (2013)

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Institutional Investors: one view of asset allocation

Source: Merrill Lynch

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Institutional investors’ intentions (3 year horizon)Percentage of respondents expecting to increase allocation*

Series1-17

35

24

13

9

-24Stocks

Bonds/Fixed IncomeReal Estate

Private Equity

Infrastructure

Cash

* Sample: 46 investors

Source: bfinance (2012)

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Total projected cumulative infrastructure spending 2005-2030

US/Canada $6.5T

Europe $9.1T

Asia/Oceania $15.8T

Middle East $0.9TAfrica $1.1T

South America/ Latin America $7.4T

Water$22.6T

Power$9.0T

Road and Rail$7.8T

Air/Seaports$1.6T

Total = US$ 41 Trillion

Source: Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook, OECD, Boeing, Drewry Shipping Consultants, US Department of Transportation.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25-

20

40

60

80

100

120

140

160

180

200

Available to equity Cash taxes debt service

Opex Revenues

France – Onshore Wind Farm (illustrative)*

Operating assets: attractive equity cash flow profile over 20-25 years

Source: Impax Asset Management * Revenues normalised to 100.

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“Infrastructure returns are stable not because of the asset, but because of contracts and regulatory conditions. A power plant with a 25-year availability-based contract to produce power is infrastructure. A plant supplying kilowatts to an electricity grid, at the current price, is a private equity project with huge capital and commodity risks.”

PEI: “The New Infrastructure”, 2011

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DisclaimerThis document has been approved by Impax Asset Management Limited and Impax Asset Management (AIFM) Limited (“ Impax”, authorised and regulated by the Financial Conduct Authority). Both companies are wholly owned subsidiaries of Impax Asset Management Group plc. This document is solely for the use of professionals, defined as Eligible Counterparties or Professional clients. The information and any opinions contained in this document have been compiled in good faith, but no representation or warranty, express or implied, is made to their accuracy, completeness or correctness. Impax, its officers, employees, representatives and agents expressly advise that they shall not be liable in any respect whatsoever for any loss or damage, whether direct, indirect, consequential or otherwise however arising (whether in negligence or otherwise) out of or in connection with the contents of or any omissions from this document. This document does not constitute an offer to sell, purchase, subscribe for or otherwise invest in units or shares of any fund managed by Impax. It may not be relied upon as constituting any form of investment advice and prospective investors are advised to ensure that they obtain appropriate independent professional advice before making any investment in any such fund. Any offering is made only pursuant to the relevant offering document and the relevant subscription application, all of which must be read in their entirety. Prospective investors should review the offering memorandum, including the risk factors in the offering memorandum, before making a decision to invest. Past performance of a fund or strategy is no guarantee as to its performance in the future. This document is not an advertisement and is not intended for public use or distribution.

Ian SimmChief Executivei.simm@impaxam.com / +44 20 7434 1122 

Ian Simm is the Founder and Chief Executive of Impax Asset Management, which manages ca. US$4.6 billion on behalf of institutional investors worldwide and invests exclusively in the clean energy and resource efficiency markets. He is also a member of the Natural Environment Research Council, the UK government’s main agency for funding research in the environmental sciences, and a member of the steering committee of the Low Carbon Finance Group. Prior to Impax, Ian was an engagement manager at McKinsey & Company. He has a first class honours degree in physics from Cambridge University and a Master's in Public Administration from Harvard University.

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