investing in cleantech – the public markets aspect

The Clean Tech SpecialistThe Clean Tech Specialist

1

Investing in Cleantech – The Public Markets Aspect

The contents of this document are strictly confidential and may not be copied, used, or transferred without the prior consent of Oikovest.


2

Themes

1. Cleantech Investment

– the Chance of our Lifetime?

2. The Challenges of being a Cleantech

Investor in the Public Markets

3. Unique Opportunity?


3

Cleantech Investing – the Chance of our Lifetime?

USD

Millions

Cleantech VC investment reached a record $2.6 billion in Q308


4

Cleantech Investing – the Chance of our Lifetime?

70%-

60%-

50%-

40%-

30%-

20%-

10%-

0%

10%

2.1.

08

16.1

.08

30.1

.08

13.2

.08

27.2

.08

12.3

.08

26.3

.08

9.4.

08

23.4

.08

7.5.

08

21.5

.08

4.6.

08

18.6

.08

2.7.

08

16.7

.08

30.7

.08

13.8

.08

27.8

.08

10.9

.08

24.9

.08

8.10

.08

Date

% Gain/Loss

Ardour Glbl Index WILDERHILL CLEAN ENER IX NASDAQ COMPOSITE INDEX


5

The Big Picture…

= X

Population x= AffluenceEnvironmental Impact

EI AxP=


6

The Big Picture…

Currently, 800m people, 12% of the world’s population consume 75% of the world’s energy resources.

World Fuel Consumption


7

1980s: Every Irish person wanted to be German………..

1988: Irish GDP $10,347 German GDP $15,979

2008: 4m Irish people became more German than the Germans……..

2008: Irish GDP $44,415 German GDP $35,392


8

Ireland now consumes 24b kwh of electricity per year, double that of

1988……..

……..whilst Nigeria with apopulation of 140m uses 17b

kwh…..


9

These days, every Chinese person wants to be German………..


10

What happens when 1.3b Chinese try to become German?

Private Car possession in China would rise from 15m to 710m………..

Chinese GHG Emissions would rise from 6bt to 16bt p.a………..


11

If all Chinese would become ‘Germans’….


12

The Solution….

Draconian solutions to control Population and Affluence?


13

=

X

Population x Affluence

EnvironmentalImpact Clean Technology

=

…OR…


14

Alternative Energy

Energy Efficiency

Environmental

Energy Storage

What is Clean Technology?

Fuel Cells

Advanced Batteries

Flywheels

Hydrogen Generation and Storage

Underground Caverns

Solar: PV, Thermal, Equipment suppliers, Raw Materials Supplies

BioEnergy: Biofuels, Biogas, Agriculture

Wind: Wind Park Development, Equipment Suppliers, Raw Materials Supplies

Water: Hydro, Wave and Tide

Geothermal

Nuclear

Buildings

Transportation

Power Generation, Transmission and Distribution

Distributed Power

CO₂ Emissions & Trading

Clean Water

Desalination

Waste Management

Recycling

Resource Efficiency


15

Conclusion: Cleantech growth paradigm more intact than ever before

We may even have reached a tipping point!

However, we have a problem with thepublic markets….


16

Themes




Investor on the Public Markets



17

YINGLI GREEN ENERGY HOLD-ADR

100%-

90%-

80%-

70%-

60%-

50%-

40%-

30%-

20%-

10%-

0%

2.1.

08

16.1

.08

30.1

.08

13.2

.08

27.2

.08

12.3

.08

26.3

.08

9.4.

08

23.4

.08

7.5.

08

21.5

.08

4.6.

08

18.6

.08

2.7.

08

16.7

.08

30.7

.08

13.8

.08

27.8

.08

10.9

.08

24.9

.08

8.10

.08

22.1

0.08

Date

% Gain/Loss

The Cleantech Market is not efficient…

Dramatic Fallsin Share Prices


18

VESTAS WIND SYSTEMS A/S

100

150

200

250

300

350

400

450

500

550

600

650

700

19.9

.08

24.9

.08

29.9

.08

4.10

.08

9.10

.08

14.1

0.08

19.1

0.08

24.1

0.08

29.1

0.08

Date

Share Price DKK

Huge volatility



19

Massive Differences inAnalyst’s Expectations


Solon Analyst's 2009 EPS Estimates

0,00 €

1,00 €

2,00 €

3,00 €

4,00 €

5,00 €

6,00 €

7,00 €

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17


20

Themes




Investor on the Public Markets



21

Public marketvaluations areridiculously low – Somecompanies are trading at almost bankruptcylevels

Unique Opportunity?

JA Solar Holdings

Year Revenues EBIT Net Income EPS 2008E 1036.21 172.00 158.68 0.94 2009E 1791.71 279.67 264.00 1.34

Share Price $ 3.34

Enterprise Value $m 309.94

Cash $m 520.20

Market Cap. $m 560.75

Year EV/Sales EV/EBIT P/E 2008E 0.30 1.80 3.6 2009E 0.17 1.11 2.5


22

What will change the current situation going forward?

• Intensified M&A activity (already started)

• Further growth (despite downturn)

• Rising maturity and wider acceptance of technologies (already far progressed in some fields)

•New Technologies

When looking back in some years time, we will probably conclude that today’s Cleantech market was the Opportunity of our Lifetime!


23

Contact Details

Gerard ReidOikovest GmbHOranienburger Strasse 23Berlin 10178 Germany

Tel. +49 (030) 27574854Fax +49 (030) 27574856

Email [email protected]

The contents of this document are strictly confidential and may not be copied, used, or transferred without the prior consent of Oikovest.

Thank you!

investing in cleantech – the public markets aspect

Economy & Finance

cleantech investment

cleantech investor

todays cleantech market

cleantech growth paradigm

german gdp

public market valuations

public markets aspect

irish gdp