mac group renewables corporate presentation january 2015 printable

Value in Advisory Services

MaC Group Value in Financial ServicesValue in Renewable Energies

Corporate Presentation, Service Offering and Experience

Quarter 1, 2015

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MaC Group Value in Financial Services

MaC Group’s experience covers the entire value chain of renewable energy and clean technology investment and operation life-cycle phases

Value Chain Positioning

R&D/Pilot projects/Project

development

Technology Supplier &

Manufacturer

Engineering services/EPC

contractor

Project Operator/O&M

Services

Investors & Financiers

Sector Clean Technologies Renewable Energy Renewable Utilities Energy Efficiency

Service Offering

Market Review & Strategic

Positioning

Fund raising Investment

Opportunities Identification

Commercial Due Diligence

& Business Plan Review

Mergers & Acquisitions

Technology Assessment Exit Strategy

Market Entry Organic & Acquisition Growth Market Exit

Company Profile – Renewable Energy Sector Experience (1/4) Full coverage of value chain

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MaC Group works across the full spectrum of renewable energy and clean technologies from emerging to mature technologies and market segments

Cleaner Conventional

Energies Renewable Energies Renewable Utilities Energy Efficiency

Bio-fuels Biogas Biomass Desalinated water Industrial equipment

Bio-oil USW (Urban Solid Waste) Solar thermal power Water treatment Industrial processes

Bio-chemicals Geothermal Solar PV Heating & Cooling Transports

Carbon capture On-shore wind Micro-generation Steam Buildings

Carbon storage Off-shore wind Renewable cogeneration Lighting

Combined cycle Wave Micro-cogeneration Services

Natural gas cogeneration Tide Fuel cells

Coal mine methane Large & small hydro Nuclear fusion

Intelligent power lines Hydrogen Nuclear fission

Company Profile – Renewable Energy Sector Experience (2/4) Full coverage of value chain

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We bring a unique combination of strategy and technology know-how to our clients across a broad range of renewables technologies and market segments

Growth, Market Entry and Innovation Strategy

Technology roadmaps, government policy and

regulatory

Transaction support, Project Financing and Strategic Due

Diligence

§  R&D strategy for low carbon technologies §  Entry strategy into the Photovoltaic market for a

gas distributor and seller

§  Renewable Technology Visioning and Support §  Renewables technology positioning §  Renewable energy policy

§  Solar Thermal Power (STP) Business Cases §  Wind energy license bids support §  Strategic Due Diligence in solar and wind §  Fund strategy, deal management and

transaction support §  Strategic framework for wind M&A activities

§  Wind energy market entry strategy §  Global market assessment of key players in the

on-shore and off-shore value chain §  Finding business opportunities in the solar cell

and organic electro-luminescence businesses

Utilities

Governments and Sector

Associations

Leading Private Equity

Firms and Investors

Global Industrial

Players

Company Profile – Renewable Energy Sector Experience (3/4) MaC Group’s Unique Sales Proposition

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MaC Group

Renewable Energies Team

Combine

both

technological

and

strategic

perspectives

Detailed

understanding

of wind and

solar energy

technology &

economics

Senior executive

relationships with global technology

players, project

developers and financiers

Provide support

across the full

technology, project and transaction

life cycle

In-depth knowledge of

EPC, O&M and project

finance contracts in CSP, wind,

solar pv and CPV

MaC Group has “hands-on” deal experience across the full technology, project and transaction life cycle giving it access to equity/debt financing and deep market insights

Company Profile – Renewable Energy Sector Experience (4/4) MaC Group’s Unique Sales Proposition

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MaC Group and its team members have been at the forefront of the renewable energy space and has worked extensively with marquee clients across the globe

Clients – Renewable Energy

General Solar Energy Wind Power

Executive Summary – Renewable Energy Sector Experience ‘Global Renewable Energy Client Base’

Selected Examples

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Relevant Project Experience §  Project financing of over 500 MW of solar PV, 350 MW of

Parabolic Trough and Central Tower project and 600 MW of wind §  Strategy development for the launch of a USD 250 mn RE

focused private equity fund, fund raising and transaction support §  Market entry strategy for the world’s largest NOC in to the KSA,

MENA and global renewable energy markets §  Development of LCoE models and technology visioning for major

NOC in the Middle East §  Market entry strategy for an Asian industrial conglomerate in to

the global onshore and offshore wind energy market §  Global wind power strategy and value chain positioning for a

major Eastern European utility. §  Economic valuation of a portfolio of 480 MW of operating wind

assets and 350 MW of licensed wind projects on behalf of international Infrastructure funds

§  Strategic due diligence for an international PE Fund investing in 150 MW of solar thermal plants

§  Market entry and technology strategy for innovative sterling dish solar energy start-up for VC Firm

§  Market entry strategy in solar thermal power for a global multi-billion dollar infrastructure fund

§  Management of the full technical and legal due diligence and project valuation of more than 250 MW of wind farms in Iberia and France for a major international fund

Grant Greatrex

Grant is the Senior Partner of MaC Group heading up the company’s renewable energy advisory division working with clients across the full value chain and with technology, industrial and IPP players, as well as with institutional investors

Main Focus of consulting work § Grant has specialized in the areas of renewable energy, clean

technology and carbon management in the Iberian, European and CDM countries. His clients range from venture capital, private equity and infrastructure funds to technology, equipment and service providers active. Main focus of his consulting work includes: Strategy and Organization, Merger & Acquisition, Project financing. He has worked extensively across Western & Eastern Europe, MENA and Latin America.

Professional background §  Prior to MaC Group, Grant was the global coordinator of

renewable energies at Arthur D. Little and prior to this was a Senior Partner at Deloitte Consulting – Iberian Managing Director, member of European Management Team and Global Board member

Education Grant holds a Degree in Economics - (Honours) First Class – London School of Economics and Political Science, a Diplôme de Hautes Études Européens - (Distinction) Collège d’Europe, and a MBA (Distinction) - University of Warwick

Grant Greatrex Co-Founder and Senior Partner

MaC Group - Core Team

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Relevant Project Experience

§  Lead launch of a 150 mn € Private equity Fund dedicated to renewable energies and acted as Board member overseeing strategy, investment decision-making and corporate governance

§  Lead the launch of a 150 mn € Carbon Credit fund and acted as Board member overseeing strategy and investments

§  Lead the launch of a 50 mn € forest fund Floresta Atlântica and acted as Board member overseeing strategy and investments

§  Managed acquisitions, project financing, restructuring and start-ups across the solar, biomass, wind and marine technologies for over 1 GW of renewable energy assets

§  Successfully managed bids for tenders in the solar, wind and biomass areas in several countries, mounting international consortia of developers, technology providers and investors

§  Board Member of companies ranging from technology solutions providers, to project developers, to operating companies in the solar, wind, biomass, environmental services, carbon credit and emerging technologies markets

§  Extensive experience across the full solar energy value chain having developed companies in the PV, HCPV and CSP areas, as well as structured the acquisition and financing of utility scale projects across Europe and Latin America

§  Advisor on numerous venture capital and private equity deals and their related financing with national and international funds and financiers in Cleantech, renewable energy, environmental services and many other industrial sectors

Paulo Caetano Paulo is the Chairman of the MaC Group Advisory Board and brings a wealth of experience in fund management, M&A, investment strategy and project development in the renewable energy sector. He has senior management experience in Private Equity, Venture Capital and operating companies in international Cleantech markets.

Main Focus of consulting work Paulo has specialized in investment and operations in the Cleantech, renewable energy and carbon credit sectors working across the full lifecycle of technologies from early stage, to commercial development to fully mature technologies. He has managed investments in technology, project development, operating and investment vehicles in the wind, solar, biomass, biofuels, wave and other sectors. He has worked extensively across European, MEA and SEA markets.

Professional background Paulo has been the CEO Aguas de Portugal Energia and Board Member, Executive Board member of Fomentinvest, a private holding group dedicated to energy and environmental services and of the New Energy, Luso Carbon and Floresta Atlântica Funds.

Education Paulo holds a Degree in Engineering from IST, a Masters and MBA from the Universidade Catolica Portuguesa. He has been Chairman of the Portuguese Venture Capital Association since 1996 and a Board member of the European Venture Capital Association since that time.

Paulo Caetano Chairman of Advisory Board – Expert in Venture Capital and Private Equity

MaC Group – Core Team

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Relevant Experience

§  20 years of financial markets experience with leading global banks active in the clean tech, sustainability and renewable energies areas

§  Commercial and Vendor Due Diligence on a total of 250MW of solar PV projects in a global portfolio

§  Global renewable energies growth strategy for a major utility §  Corporate Advisory on the UK’s largest solar PV plant §  Corporate advisory and deal structuring for 150mw Southern

African renewables development portfolio §  Financing of global deals for the sale of specialized electric buses

for airports and airlines §  Equity and growth finance for the developer of an innovative

HCPV solution and global project development portfolio §  Corporate advisory and deal structuring for a 500 MW portfolio of

Solar PV projects in India §  Strategic due diligence for an international PE Fund investing in

150 MW of solar thermal plants in Spain §  Market entry strategy in solar thermal power for a global multi-

billion dollar infrastructure fund §  Development of a 400 MW portfolio of solar PV projects across

sub-Saharan Africa §  Co Founder of the Global Commons Investment Bank. A social

enterprise investment bank focused on emerging markets

Chris Smith

Chris is an Associate Director of MaC Group and is responsible for the relationships with leading asset financiers, equity investors and institutional funds active in the global solar, wind and other renewable energy fields. He has deep industry insight from his long career with global banks in the clean tech, sustainability and RE domains.

Main Focus of consulting work §  Chris has worked in the financial markets for 20 years. 10 of which

have been around sustainable development, clean technology and renewable energy. Chris worked at both HSBC and Standard Chartered bank and more latterly was Group Head of Sustainable Development at Standard Chartered.

§  The main focus of his consulting work includes: Structuring of finance for RE deals, Fund raising, Commercial Due Diligence, Renewable Energy advisory work and market analysis and Mergers & Acquisitions. He has worked extensively across Asia, the Middle East and Africa.

Professional background §  Prior to working with MaC Group, Chris was the head of the UK

Renewable Energy Practice for Arthur D. Little.

Education Chris holds a Degree in Chemistry (Honours) – University of Leicester. He also holds a Certificate of Cash and Treasury Management from the Association of Corporate Treasurers

Chris Smith Senior Expert – Renewable Energies Equity and Debt Expert


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Relevant Project Experience §  Many solar and wind project developments in the US, Spain,

Mexico, Colombia, Peru and Chile, through the full project lifecycle of licensing, financing and contracting

§  Definition of the Mexican and US business strategy for a large Spanish renewable energy utility

§  Acquisition of a large solar photovoltaic power plant portfolio in Spain and Portugal

§  Fund-raising lead for development of a financial product based on renewable assets for a Tier 1 European bank.

§  International strategy framework definition for a mid cap renewable energy company.

§  Roadshow and sales process lead for a Mexican wind energy project pipeline ( 500 MW)

§  Project planning for a 1500 MW wind portfolio in Colorado (US)

§  Development of renewable energy growth and market entry plans for international funds and companies

§  Valuation of the full renewable portfolio assets for a medium-sized company in Europe

§  Valuation of several mini hydro, solar pv, wind farms, biomass and solar thermal facilities.

§  Expert witness opinion on a 80 MM USD litigation process with a leading European utility ( Wind portfolio)

Severino Fernandez

Severino is a senior expert in the full project development cycle of solar plants, mini hydro and wind farms, from licensing, design, financing and EPC/O&M contract negotiation. He has worked globally for multinational energy companies and has CEO-level experience for a medium-sized Spanish renewable company.

Main Focus of consulting work § He has specialized in the areas of project development and

financing of renewable energy projects. He has lead several acquisitions of renewable facilities and raised project financing on multiple projects. His clients range from utilities and mid cap renewable energy producers to venture capital, private equity and clean tech funds . Main focus of his consulting work includes: Strategy, Merger & Acquisition, Project financing. He has worked across Europe, US, and Latin America.

Professional background §  Severino was formerly Managing Director of a Spanish

multinational RE firm GB Renewable Energy and the global coordinator of renewable energies at BDO Spain. Prior to this he was an Associate Partner at PwC Consulting.

Education Severino holds a Degree in Economics – Complutense University of Madrid , Corporate Finance Specialization Degree - IESE, and an MBA from the Madrid Business School. He is also listed as an independent expert in the Madrid Merchant Register.

Severino Fernandez Member of Advisory Board – Expert in Project Development and Management


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Relevant Experience

§  Work with Private Equity, Hedge and Distressed Asset Funds in making acquisitions across several economic sectors – energy, manufacturing, telecommunications, services – among others

§  Highly skilled in deal structuring, transaction support, negotiation of equity and debt solutions to support acquisitions, restructuring, growth, MBOs, LBOs and project financing

§  Advisory work in company valuations, corporate restructuring, debt restructuring, transaction support, M&A deal structuring, Fairness Opinions, Expert Reports, etc.

§  Work in the Cleantech and solar energy sector has covered financial modelling of PV plants, vendor financing and MBOs

§  He has acted as an Expert Witness in complex commercial litigation, contract and investment processes and has chaired panels of independent experts on international accounting, valuation and contract pricing disputes

§  Sector experience covers energy, manufacturing, telecommunications, construction and building materials, polyethylene film extrusion, radio broadcasting, metal packaging, non-food retailing and water & sewage, manufacturing businesses such as container glass, cork-stoppers, and printing, coating, food & beverage manufacturers, as well as in retailing and engineering

§  He has worked across may European countries, Latin America, Middle East and Africa

Eduardo Trigo Moraes Eduardo is the Senior M&A and Corporate Finance Expert on the MaC Group team, with over 30 years of experience in the investment banking, M&A, corporate restructuring, corporate finance, audit and strategy areas in many economic sectors and countries.

Main focus of consulting work His background as an auditor, investment banker, M&A advisor and restructuring manager give him a very detailed understanding of valuation techniques, deal structuring and equity raising processes. He has also been nominated on several occasions as an expert in dispute processes involving complex valuation and accounting issues. He has carried out M&A, MBO, LBO, debt restructuring assignments in a wide range of industries. His support is hands on taking the lead role in negotiating deal, debt and corporate restructuring and related contracts

Professional background His career has spanned work for national and international banks such as CBI and Banque Indosuez in M&A and Corporate Finance, Head of Corporate Finance Services at Deloitte Portugal, corporate restructuring expert for companies such as TAP and as Expert Witness in litigation and arbitration processes.

Education Eduardo holds a Degree in Business Administration – ISCTE. He is a former rugby international for Portugal and is fluent in Portuguese (native speaker), English and French.

Eduardo Trigo Moraes Member of Advisory Board - M&A and Corporate Finance Expert


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Client and service Project and key challenges Approach Results and benefits

Leading Spanish EPC contractor and IPP Equity and debt raising

n  The client asked us to provide full transaction support in securing equity and debt financing for the development of three 50 MW CSP plants in Spain

n  The total CAPEX requirements for project development and construction amounted to close to €1 Bn

n  The MaC Group team supported the client in preparing the necessary documentation to present the investment opportunity to international equity and mezzanine providers

n  We supported the client in identifying suitable targets, engaging in initial discussions and structuring the deal

n  Our support extended to providing on-going support to our client during the due diligences carried out by the potential investors and financiers and in the final negotiations

n  Our client successfully closed the full financing for the development and construction of the three plants and raised its profile with Tier 1 institutional providers of equity and mezzanine debt to the global renewable energy market

We supported a leading Spanish EPC contractor and Renewable Energy IPP raise equity and financing for 150 MW of Parabolic Trough CSP plants in Spain

Renewable Energy Experience Renewable Energy Experience

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Client and service Project and key challenges Approach Results and

benefits

Global leader in airport buses Financing strategy for launch of electric buses

n  Our client, the global leader in the manufacture of specialized airport passenger buses was launching a set of new full electric buses targeted at airports facing tightening emissions regulation and to meet the increasing demand for more sustainable “in-airport” transportation services

n  The key challenge our client faced was to secure the vendor financing to support the sale of the electric buses to the final client, given that the battery storage and recharging technologies are still in a phase of commercial testing and acceptance

n  The objective of our work was to identify leading global financiers of Cleantech products & services, present the technical, market and financial business case for the electric buses and secure financing offers on a client-by-client basis and a global framework agreement with a Tier 1 financier

n  Our work covered the detailed technology and economic analysis of the full lifetime cost of the electric bus versus diesel and hybrid options under different scenarios of product configuration, local fuel and electricity costs and driving patterns

n  We have also supported our client in negotiations

n  As a direct result of our support, the client has secured formal Expressions of Interest from several Tier 1 global banks and leasing companies to support the sale of the new electric vehicles

We supported the financing strategy for the launch of a range of electric transport buses for the leading global provider of specialized airport buses

Renewable Energy Experience

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World’s largest NOC Renewable Energy Investment Strategy

n  The client asked us to define a full renewable energy investment strategy at the “In-Kingdom”, regional (GCC/MENA) and global levels

n  Our client’s objective was to analyze the full range of possible investment options and value chain positioning in order to become the leading regional player and a Top 5 global player in the renewable energy market

n  The MaC Group team supported the client in i) laying out technology trends through 2020, ii) analyzing the adaptation of RE technologies to MENA operating conditions, iii) analyzing different RE penetrations and energy mixes at the domestic and regional level, iv) mapping out the full value chain economics for PV, CSP and wind energy, v) evaluating and prioritizing a full range of investment options from IPP, to manufacturer to service provider and v) laying out an organic growth and M&A strategy to realize the ambition-driven strategy

n  Our client was given a robust and detailed overview of the full RE technology, market and value chain and individual business plans to develop its RE division in the PV, CSP and Wind areas

n  The strategy defined concrete action plans, objectives, investment scenarios and returns/local value added at the In-Kingdom, regional and global levels

We defined the domestic, regional and global renewable energy strategy for the world’s largest National Oil Company


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Oil & gas company in Saudi Arabia

PV market entry strategy

n  The client was considering entering the PV sector and to become a leading player in the medium term

n  The client wanted to know:

• What segments of the PV value chain should it play in (i.e, Planning & Development, Manufacturing, O&M, EPC, Energy Generation)

• How to enter the target segments

• What are the required investment and expected returns

n  Detail market attractiveness assessment of all the PV value chain segments, including:

•  Growth potential and key trends for all the key markets

•  Competitive assessment of key PV manufacturers, including detailed technical analysis

n  Assessment of client’s performance against Key Success Factors across all the value chain segments

n  Evaluation of alternative market entry options (build, buy, partner)

n  Formulation of investment options and respective financial valuation

n  Recommendation for positioning in the PV value chain and for target geographic markets

n  Short-list of potential partners and acquisition targets based on detailed assessment of strategic fit and technologic competitiveness

n  Comprehensive financial analysis of all the options (Cash flow, NPV, IRR, RoCE)

n  Roadmap for strategy implementation, including detailed planning for manufacturing build-up

PV market entry strategy for large oil & gas company in Saudi Arabia


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Leading Global HCPV company Equity and debt raising

n  The client asked us to review its international growth strategy and to identify the funding needs to maximize the global market opportunity for HCPV technology

n  The client has now asked MaC Group to support the raising of the necessary debt and equity to realize its global growth ambitions

n  We firstly supported the client in developing an Investment Memorandum and Private Placement Document to present to international investors and financiers

n  We then identified a long list of leading global and regional renewable energy investors and financiers and then screened the interest of each party in the deal

n  On the basis of the short-listed entities, we are now engaging in discussions and negotiations with a view to raising the required funding by year end

n  Our client is now engaged in discussions with several interested parties to close the required debt and equity financing

We are supporting a leading global High Concentration PV player to raise equity and debt to fund its international expansion plans


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Leading global HCPV (T) company Equity raising

n  The client has developed an innovative reflective dish HCPV technology with active cooling and requires funding to support its next stage of growth

n  The HCPV cogeneration sector is an emerging market niche with strong growth possibilities across the Sunbelt regions with high DNI

n  We carried out a full technology and business plan review to validate its competitiveness in the global solar energy markets, identify the segments in which its technology would have the strongest competitive advantage and its international growth strategy

n  We then supported the client in developing an Investment Memorandum to present to international investors and financiers

n  We then short-listed a pre-screened set of target investors from sector specialist Private Equity funds, global PV developers and industrial players

n  On the basis of the short-listed entities, we are now engaged in discussions and negotiations with a view to raising the required funding and establishing a strategic joint venture

We are supporting a leading global solutions provider with innovative reflective dish High Concentration PV technology to raise equity to fund its global growth


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Joint Development Agreement Indian solar energy market

n  Our clients were seeking to profit from the multi-GW solar energy market opportunity in India

n  The local developer had successfully built-out several utility-scale PV projects but lacked the resource and knowledge to compete at the 100 MW+ scale and in the growing CSP market

n  Based on an analysis of the Indian solar energy market opportunities, the skills of the local promoter and the target positioning, we identified a short-list of potential global solar developer partners

n  We supported the process of structuring the business case, presenting the local Indian developer and supporting the process of negotiation with several Tier 1 solar energy developers

n  We were engaged to structure the financial model that served as the basis for the discussions on the financial, operational and governance aspects of the joint development agreement

n  The parties have established a joint development agreement to profit from the combination of their skills and market reach to develop out over 500 100 MWs of PV and CSP projects over the coming years

We supported a Tier 1 Global PV and CSP developer establish a joint venture in the Indian market with a local solar energy developer


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benefits Oil & gas company in Saudi Arabia

Development of LCoE model

n  The client was considering investing in the construction of PV plants in order to substitute the consumption of oil l& gas in the generation of electricity

n  The client wanted to know what were the possible PV configurations and what were the cost per MW/ hour for each one of the options considering the Kingdom’s specific conditions

n  We were selected for this project due to its extensive experience in projects which combine deep technological requirements and financial analysis

n  Development all the possible PV configurations suitable for the Kingdom

n  Develop of LCoE model for each configuration, with detail breakdown of key drivers, such as:

•  Energy yield - including identification of all sources of energy loss in the system

•  Capex – identification of all components taking into account country specific drivers, such as cost of labour

§  The assessment incorporated our RE strategy experts as well external experts with extensive experience in specific technology domains

n  Exhaustive map of all the possible PV configurations with clear assessment of the technical differences and its implications

n  Exhaustive cost comparison of all the PV configurations

n  Robust financial tool to be used by the client to simulate possible variations in key variables, namely to support negotiations with equipment providers

Development of PV Levelized Cost of Energy Model to support investment decision of large oil & gas company in Saudi Arabia


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benefits Power EPC contractor in Saudi Arabia

Development of Value Chain positioning and Partnerships strategy

n  Our client has targeted the growing PV market opportunity in-Kingdom as a growth opportunity to diversify its current positioning in power and transmission line EPC work

n  The key challenges faced are in clearly defining the scope of services to be offered across the PV project development value chain and in particular EPC and O&M services

n  In addition, the client needed to define the skills it needed to build in-house and identify international partners and suppliers to execute the strategy

n  Analysis of the global solar PV EPC market, the key dynamics and competitive trends

n  Detailed analysis of the value chain positioning and service offering of Tier 1 EPC contractors

n  Financial modelling of the solar PV EPC and O&M markets from standard turnkey contracts through to complementary and ancillary services

n  Identification of potential EPC partners and suppliers to support the target offering

n  Evaluation of potential partners and recommendations on capability-building and execution

n  Full mapping of solar PV EPC and O&M value chain

n  Identification of skills gaps and capability building action plan

n  Analysis of risk/returns of different value chain positioning and offering

n  Recommendations on target partners, best partnership structures

n  Roadmap for successful launch of the new solar PV EPC and O&M offering

Development of a value chain positioning and partnership strategy for a major Saudi EPC power and transmission line contractor


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Large Russian national energy group

Wind market entry strategy

n  The client was considering enter the wind energy market aiming to become a leading regional player


–  What would be the most attractive countries in the region to target

–  What segments of the wind value chain should it play in (i.e, Planning & Development, Manufacturing, O&M, EPC, Energy Generation)

–  How to enter the target segments

–  What are the required investment and expected returns

n  Assessment of the attractiveness of the countries in the region (Russian, CIS and Eastern European/Baltic):

–  Detailed country-by-country profiling , identifying the key market drivers, policy framework

–  Evaluation of current and future pipeline of projects

–  Competitive assessment of key WTG manufacturers and large investors

n  Identification, profiling and prioritization of potential joint venture partners, and financiers

§ Formulation of investment options and respective financial valuation

n  Comprehensive market entry strategy for each selected target country, including:

–  Recommendation for positioning in the Wind value chain in the country

–  Short-list of potential partners and acquisition targets based on detailed assessment of strategic fit and technologic competitiveness



Wind market entry strategy for large Russian national energy group


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World’s largest National Oil Company (NOC)

Wind market entry strategy

n  The client was considering invest strongly in the renewable energy sector, including in wind


–  What was the Levelized Cost of Energy (LCoE) of several Wind technological configurations

–  What segments of the wind value chain should it play in (i.e., Planning & Development, Manufacturing, O&M, EPC, Energy Generation)

–  How to enter the target segments

–  What are the required investment and expected returns

n  Detail market attractiveness assessment of all the Wind value chain segments, including:

–  Growth potential and key trends for all the key markets

–  Competitive assessment of key WTG manufacturers

n  Assessment of client’s performance against Key Success Factors across all the value chain segments

n  Evaluation of alternative market entry options (build, buy, partner)

n  Financial modelization of the LCoE for several technological configurations


n  Recommendation for positioning in the Wind value chain and for target geographic markets

n  Short-list of potential partners and acquisition targets based on detailed assessment of strategic fit and technologic competitiveness



Wind market entry strategy for World’s largest National Oil Company (NOC) in Saudi Arabia


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benefits Global Private Equity Fund

Strategy for a global solar energy IPP

n  Our client was debating the correct market entry strategy to build a position in the global solar energy sector

n  Following an initial screening exercise, the fund’s managers identified the opportunity to build and manage a diversified portfolio of solar energy assets


• Which technologies and markets offered the best risk/returns profiles

• What positioning the fund should take across the solar energy value chain

• Drivers of shareholder value creation

n  Detailed market attractiveness assessment of global PV and CSP markets for an IPP positioning

n  Selection of Spain, Italy and the USA as the priority target markets

n  Assessment of the likely range of pIRRs, key success factors and positioning across the value chain to secure optimized returns

n  Analysis of the advantages and disadvantages of basing the market entry strategy on a joint venture with a global renewable energy EPC contractor


n  Recommendation for positioning in the PV value chain and for target geographic markets

n  Analysis of the potential jv partner’s strengths and weaknesses in the PV and CSP sectors


n  Roadmap for jv and strategy implementation

Definition of a strategy to develop a global solar energy IPP for a multi-billion $ private equity fund focused on PV and CSP


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Global private equity firm Market entry

n  The client, a multi-billion global private equity firm, asked us for assistance in setting up an entry market strategy and business case for the solar thermal power sector

n  The client needed assistance in understanding how it could establish a long term and worldwide positioning in the sector, maximizing long term returns and minimizing the risks typically associated with emergent industries

We performed an in-depth analysis of five critical aspects

n  Market Positioning: Target countries in the short-term (1/2 years) and in the mid-term (3 to 5 years)

n  Technology Landscape: Current technology stage, expected breakthroughs and cost decrease curve

n  Suppliers evaluation: Evaluation of the sector’s key technology providers and EPC contractors

n  Partnership strategy: Value chain positioning and optimum relationship model with top suppliers

n  Our recommendation was to set up a global framework agreement with the key market players along the STP value chain, ensuring access to the target markets, top technical know-how and reduced costs

n  The proposed strategy was key in ensuring that the client’s target returns can be achieved while mitigating the political, legislative and technology risks associated with the STP sector

Developed Solar Thermal Power (STP) Business Case for a leading global private equity firm to enter the solar thermal power sector


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benefits

RE power electronics Global growth strategy and transformation plan

n  The client asked us us to define their global growth and transformation strategy, including value chain positioning, prioritization of target regions/geographies, the definition of their “go-to-market” strategy and the funds required to execute the strategy

n  The MaC Group team carried out a detailed overview of the global PV and wind markets to identify the trends in the related power electronics segment.

n  Our analysis identified the key technology, product and pricing trends in the market, as well as the important demand shift towards the technologies and solutions required for the mass integration of renewable energies in transmission networks, in weak/ remote grids, as well as the rise of Virtual Power Plants, hybrid systems with storage, etc,

n  We laid out a wide-ranging transformation plan to take the company form a manufacturing focus to a Systems Solution Integrator focus

n  All of our key recommendations were approved by the Board and the Shareholders (which include both venture capital and private equity funds) and the company has embarked upon the transformation program detailed by us

MaC Group supported the development of the global growth strategy for a leading renewable energy grid integration and power electronics company


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Global private equity firm and a large international renewable energy contractor Strategic planning

n  To define the market entry strategy, business model and valuation of a solar energy focused Framework Agreement to build out some 400 MW of solar energy projects in the European and US markets to 2013

n  Market overview of key target markets Spain, US, France and Italy

n  Definition of technology mix between STEG and PV and within these families of technology, specific technologies at - or likely to reach - technology maturity during the Framework Agreement’s time horizon

n  Definition of high level value chain positioning and governance model

n  Valuation of current project pipeline and targeting of new projects

n  The strategic vision laid out by us was approved by both parties and supported the negotiation of the structure of the Framework Agreement between the parties

Developing a strategic plan for a 400 MW solar energy Framework Agreement between a global private equity firm and a large international renewable energy EPC contractor


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Large European civil and public works contractor with strong presence in the wind market

Large European civil and public works contractor with strong presence in the wind market

n  The Client is one of the most important Industrial, Construction & Energy Corporation in Spain

n  The objective of the Project was to assess the best strategy for the Client to start and develop its manufacturing activities in the Wind Industry, as a manufacturer of concrete and hybrid towers for current and new generations of wind turbines

n  Global market survey analyzing trends in the WTG and wind tower markets

n  Evaluation of the Client’s internal design, manufacturing and logistics capacities

n  Definition of a product development and market entry strategy

n  Strategic Consultancy: World market survey, product survey, product definition commercial strategy and business plan, logistics, SQA, internal audit, partnerships, international wind sector programs and foundations, strategic technical network and contacts

n  Technical Consultancy: Wind turbine loads, civil engineering, concrete technology (pre-cast and in-situ), wind turbine control, mechanical design and structural analysis, manufacturing, transportation and erection methodology

n  Global market report oriented to the business of the concrete (hybrid) towers for wind turbine.

n  Definition of the characteristics for a competitive tower responding to the Corporate Strategy in terms of product, logistics and worldwide expansion

n  Coordination of different disciplines into a solid approach:

–  Strategic Consultancy

–  Product Development

–  Civil Engineering

–  Strategic alliances

Market analysis and product specification for concrete and hybrid WTG Tower for large European civil and public works contractor


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Partnership of steel company and offshore contractor

Wind Turbine Generator Business Strategy

n  The project involved two companies which partnered up:

–  Company A is a specialized shipbuilding and offshore contractor

–  Company B is a large steel maker

n  The clients were planning to create a Joint Venture company to develop and manufacture Onshore and Offshore wind turbines

n  We were asked to support the development of the technology and product strategy

n  Analyzed global WTG market, technology, pricing, value chain

n  Assessed governmental renewable energy policies

n  Developed business strategy covering research & development, production, supply chain and marketing & sales

n  Envisioned future organization, processes and resources needed

n  Developed product and technology assessment and roadmap of the likely evolution of WTG technology to 2020

n  The Joint Venture Company’s vision was set: to grow to be a global top 7 wind turbine manufacturer by 2016

n  The vision was underpinned with a thoroughly developed technology, product and business strategy

Technology support in defining the market entry strategy for a Joint Venture in the global wind turbine business


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Private Equity firm in Portugal Solar PV – Bid preparation, valuation and project financing

n  The client, one of the most influential Portuguese private equity groups, asked us to set up a bid for the tender process of a 6MW solar photovoltaic (PV) project

n  The project’s early development stage, coupled with the Portuguese restrictive PV legislation and the high number of bidders, posed significant challenges in setting up a balanced and competitive bid

n  coordinated several vital tasks in ensuring optimum bid conditions: –  Identification and

negotiation with equity partners

–  Selection and negotiation of solar panel suppliers, EPC contractor and O&M contractor

–  Analysis of the plant site and elaboration of the technical proposal

–  Project valuation and optimization of the bid terms

n  After the bid submission, we fully supported the subsequent negotiations between the client and the project owner

n  The final bid terms were considered by the project owner to be very competitive, positioning our client in the final negotiation short-list (current stage of the tender process)

n  Besides the attractive financial conditions, the bid included other innovative terms that clearly differentiate the client’s bid from the other strong bids

Bid setup of a 6MW solar photovoltaic plant for a leading global private equity firm, financial valuation and support in project financing


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Infrastructure Fund Renewable Energy – Investment Strategy

n  The client asked us us to define the strategy for launching an infrastructure fund aimed at operating assets in the wind, solar and hydro sectors in Western Europe. The target equity to be raised was €400 mn to be invested in operating solar PV plants, wind farms and mini-dam projects principally located across Southern Europe

n  We provided a detailed analysis of the structure of the renewable energy markets in several geographies, with a focus on the pool of current and medium-term growth in operating assets, typical risk/returns profiles, benchmarking of acquisition premiums for licensed and operating assets

n  We laid out a market entry strategy to acquire critical mass in each target sector/geography via full direct participations, co-investments, joint ventures and framework agreements, as well as establishing the governance framework for the fund’s management

n  The Board of the Fund Management Company approved the new fund’s strategic positioning and decided to move ahead with the fund-raising exercise

Defined the strategy for the launch of a renewable energy Infrastructure Fund focused on the solar, wind, and hydro sectors


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benefits

Private Equity Firm Renewable Energy – Investment Strategy

n  The client asked us to launch a renewable energy fund in the Portuguese market with a term of investment of 10 years. The client needed assistance in setting the investment strategy of the fund and to evaluate potential business opportunities to build the fund’s pipeline of investments. The client also asked us to conduct all aspects of the road show.

n  We studied the renewable energy window of opportunity in Portugal and Spain in order to set up an investment strategy for the fund. Given Portugal and Spain’s RE Total Additional Realisable Potential and Market Attractiveness (investment opportunities, feed in tariffs and technological outlook/maturity) We were able to select the most attractive market segments

n  We then assisted the client in all legal, regulatory steps, as well as the road show presentations to raise the necessary investment capital. We also helped the promoters building up a pipeline of premium investment opportunities over the lunching period of the fund

n  The Fund’s investment strategy proved to be the right one, since potential investors agreed that their investment focus was aligned with the fund (solar pv, csp, wind and wave energy).

n  The fund built a pipeline of projects with a high returns profile and raised the necessary capital to finance the selected projects

We supported the launch of a renewable energy Private Equity fund focused on the solar, wind, hydro, biomass, marine and bio-fuels sectors


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benefits

Private equity and venture capital firms Due Diligence

n  The clients asked us to make financial evaluation and due diligence on portfolios of land-based and rooftop projects in Spain, Portugal, France and the UK

n  The evaluation included the assessment of the returns of the portfolio and the project valuation for different types of investors and an assessment of the risk profile and risk mitigation strategy for each project

n  Our approach consisted in: –  Building a financial model

especially customized for photovoltaic projects

–  Assessing the returns and other financial variables for each model

–  Creating reports with recommendations on how returns could be improved

–  Creating bankable reports to help with credit negotiations

n  Our evaluation helped steer the investment priorities and helped investors understand how returns could be improved

n  The analyses also allowed the investors to chose and negotiate bank conditions for the projects

Financial due-diligence of over 250 MW of land-based and rooftop PV projects, including project valuation, risk analysis and project financing


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International RE Private Equity Fund Solar PV – Valuation and due diligence on land-based portfolio

n  Our client, an international institutional investor asked us to carry out a financial valuation and due diligence of a 50 MW land-based PV portfolio in Spain

n  The projects were located in Andalucia, presented a mix of technologies and fixed/1º axis tracking and had been in operation between 2-4 years at the time of the valuation

n  We carried out the following tasks:

–  Detailed analysis of plant yields, Performance Ratios, warranties, O&M contracts, etc.

–  Evaluation of the technology choice of modules, inverters and O&M regimes;

–  Detailed review of Capex, Opex and annual operating budgets, deviations to plan and 3 year business plan

–  Financial valuation, including sensitivity analysis, identification of areas for plant optimization and refinancing

–  Preparation of the bid for acquisition of a 49% stake in the portfolio

n  Our client was presented with:

–  A full financial valuation with different bid scenarios and returns sensitivities, which gave the investor a rigorous view of the likely range of returns to their investment under different bid terms and conditions

–  Identification of the key risks and areas for improvement in plant performance and asset management

–  Identification of key issues and problems that were integrated in to our client’s negotiating strategy

Financial valuation and due diligence of a portfolio of 50 MW of land-based PV projects in Spain for an international Renewable Energy Fund


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National solar PV EPC contractor

Growth and diversification strategy

n  Our client was seeking to both grow its business in international solar pv markets, as well as reposition to become a solar energy IPP

n  The key challenges our client faced were to identify the key target markets, define the optimal market entry strategy, build a new positioning across the project development, execution and asset management value chain and adapt its business model to the new ambition

n  Assessment of different business models and span of PV value chain positioning for solar energy IPPs

n  Assessment of the CSFs of distinct combinations of promoter, EPC and IPP positioning, as well as the risks and returns profiles of different configurations

n  Identification of the equity and debt financing needs to meet the client’s internationalization goals, as well as to reposition in to the solar PV IPP arena


n  Recommendations for positioning as a full service provider in the solar PV P&D, EPC and asset management fields

n  Recommended positioning combined the design and execution of solar PV plants for sale to third party investors as well as the development of a pipeline of own projects to build long-term, stable cash flows

n  Roadmap for strategy implementation and organizational change

Growth and diversification strategy for a national PV EPC contractor and developer of solar PV plants


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benefits Asian Industrial Conglomerate WTG product assessment and technology roadmap

n  A diversified industrial group was seeking to diversify in to the renewable energies field and apply its core competences, assets and skills In high growth segments of the renewables market

n  Based on an “ambition-driven” strategy the group targeted a top 5 global positioning in the wind technology value chain and was seeking to understand the key trends, competitive landscape and critical success factors across this market to 2020

n  Understanding the current and future offering of both Onshore and Offshore WTGs was an essential input to the overall study

n  We provided deep technology insights in to the full wind energy value chain across project development, construction and operation analysing the key players, KSF, competitive intensity and trends

n  Base on market research with global players in the turbine, blades, gearbox, BoS, project development and O&M segments, we analyzed alternative product development, service offerings and business models

n  We carried out an assessment of the Group’s technology resources/assets that could be leveraged in to the target strategic positioning and identified the gaps/investment required

n  Our client based their decision to move forward with the further analysis of the business case to make major investments in the wind energy sector on the back of our work and is reassessing its planned positioning in distinct steps of the industry value chain

We provided the technology input to a global Onshore and Offshore wind market entry strategy for a large Asian Industrial Conglomerate


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International Investors Spain Solar Market – Business Plan

n  Changes in the Spanish solar PV legislation opened up attractive market growth opportunities in the domestic rooftop solar PV sector

n  Our clients requested us to lay out a market entry strategy, develop the full business models including legal, insurance and financing aspects to support the acquisition of a pipeline of private and public buildings for the build-out of solar PV projects

n  We provided a full range of support in building and executing the business plan: –  Identification of local/

regional agents for project licensing

–  Project valuation models and project management tools for decision-making

–  Establishing the key EPC/O&M contract relationships

–  Support in raising project financing

n  A big set of changes were designed and implemented

n  MaC Group Consultants worked side by side in the implementation of the changes

n  MaC Group Consultants design a testing protocol by which the changes where evaluated

n  Today, a constant adaptation and training of the staff keeps a high efficiency of the production line.

Launch of businesses focused on the Spanish rooftop solar PV market for international investors


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Private Equity ,Venture Capital Firms Renewable Energy – Pre Due Diligence

n  Several of our clients recurrently need to rapidly assess renewable energy projects that can potentially make interesting acquisition opportunities

n  These projects are typically spread over a wide range of geographies, technologies and development stages, making their evaluation and comparison complex

n  We developed a pre- Due Diligence framework, designed to deliver a swift and standardized project evaluation output. The framework evaluates the following areas: –  Market and legislation

framework –  Sector characterization –  Project development

stage –  Project promoters,

partners and suppliers –  Acquisition conditions –  Project valuation

n  We applied the framework for multiple acquisition opportunities in bio-fuels, solar photovoltaic, wind and hydro across Europe and South America. The framework provided evaluation outputs in short timeframes in a standard format that could easily be compared with other acquisition opportunities.

Pre- Due Diligences on acquisition opportunities in solar energy, wind, hydro and bio-fuels projects for infrastructure, private equity and venture capital firms


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International PV Developer focused on emerging market Negotiation of 25 year PPA

n  Our client was at the initial stages of discussions with a Southern African state wishing to promote its first utility scale PV plants

n  There was a need for supporting the discussions with robust financial modelling of the possible PPA structures, the socio-economic impact analysis and the discussions with national and international lenders for financing of the development and construction

n  We carried out a full financial modeling of the plant under different PPA and financing scenarios in order to support both the PPA discussions with eth national grid operator, as well as financing discussions with the local and international lenders

n  We also supported the client in securing and managing the support of leading PV engineering and legal specialists to cover the technology and contractual aspects of the PPA discussions

n  We supported discussions with the grid operator and regulator in resolving concerns and issues related to deployment of PV scale plants in to weak grids

n  Our client successfully secured a 25 year, inflation indexed and bankable PPA for the development of this first utility scale plant

n  We are now supporting our client in the financing of the plant and the discussions to close a Framework Agreement to build out a further 50 MW of utility scale plants over the coming three years

Securing a PPA for a utility scale PV plant in Southern Africa for an international PV developer and securing a Framework Agreement for development of further 50 MW


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Leading international EPC contractor Solar PV EPC

n  The company is one of the leading global EPC contractors in the area of electrical transmission, sub-stations and distribution works

n  With the opening up of the solar energy market in several markets in which our client has an established position, they required a diversification strategy to support their ambition to become a leading PV EPC contractor

n  We carried out an analysis of the profile of the top global PV EPC contractors, their product & service offering, the key competitive strategies for success and assessed the fit with the company’s key target markets

n  We advised our client on the financial modeling, engineering and legal aspects involved in bidding for and executing PV EPC contracts for utility scale plants

n  Finally, we identified a short list of potential strategic partners, profiled each of the partners and their fit with our client and developed the negotiation strategy

n  On the basis of our advice, our client has structured their PV EPC service offering and the key processes, skills and teams to support the growth of their activities

n  We continue to support our client on specific tender opportunities in the PV and broader solar energy sector

We developed the diversification strategy for an international EPC contractor diversifying in to the Solar PV sector and identification of a strategic joint venture partner


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International PV Developer focused on emerging markets Sale of licenses

n  Our client is an international solar energy developer and EPC contractor with a focus on emerging markets in Africa

n  Having secured the early stage development milestones and an MoU from the national grid operator for deployment of 60 MW of PV plants, our client sought a Tier 1 global PV developer with whom to complete development and build-out the plants

n  We supported our client in valuing the PV plants under development, analyzing the different development scenarios from the sale of the licenses at different stages of development versus build-out and sale on commissioning

n  We advised on the different development and co-development business models our client could pursue and identified key target developers at the global scale

n  We supported our client in the negotiations with short-listed co-developers, including transaction support on valuation and deal structuring

n  Our client successfully entered in to a co-development agreements with an international Private Equity Fund active in mature and emerging PV markets internationally

n  We continue to support our client in fund raising for its development activities in emerging solar energy markets

Supported an international PV developer focused on emerging markets secure offers to acquire a pipeline of 60 MW of utility scale PV plants in Southern Africa


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benefits Global power EPC contractor

Development of CSP Value Chain positioning and Partnerships strategy

n  Our client has targeted the growing CSP market as a growth opportunity to diversify its current positioning in power and transmission line EPC work

n  The key challenges faced are in clearly defining the scope of services to be offered across the CSP project development value chain and in particular EPC and O&M services

n  In addition, the client needed to define the skills it needed to build in-house and identify international partners and suppliers to execute its CSP strategy

n  Analysis of the global solar CSP EPC market, the key dynamics and competitive trends

n  Detailed analysis of the value chain positioning and service offering of Tier 1 EPC contractors

n  Financial modelling of the CSP EPC and O&M markets from standard turnkey contracts through to complementary and ancillary services

n  Identification of potential EPC partners and suppliers to support the target offering

n  Evaluation of potential partners and recommendations on capability-building and execution

n  Full mapping of solar CSP EPC and O&M value chain

n  Identification of skills gaps and capability building action plan

n  Analysis of risk/returns of different value chain positioning and offering

n  Recommendations on target partners, best partnership structures

n  Roadmap for successful launch of the new CSP EPC and O&M offering

Development of a CSP value chain positioning and partnership strategy for a major global EPC power and transmission line contractor


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benefits

Technology providers, developers and funds Bid preparation for pilot projects in Central Tower, Parabolic Trough & Linear Fresnel technologies

n  We supported various clients from technology providers and developers to renewable energy funds in preparing bids for the licensing of pilot CSP projects in Portugal

n  A program of support mechanisms was set up in Portugal to test technology innovation and applicability to the solar resource conditions across Portugal and an international tender process was set up to manage the allocation of licenses

n  Our approach in each of the three bids we supported was : –  Identification and

prioritization of the technology providers in each class of CSP technology

–  Support in establishing partnership agreements between technology providers and funds

–  Feasibility analysis and production forecasting under specific site conditions

–  Analysis and financial modelling of key investment ratios, operations and maintenance regimes

–  Preparation of the business cases and tender bids for each project

n  Our clients were all successful in securing licenses to build out their respective pilot projects under the support mechanism announced by the Portuguese Government

Supported bid preparation for pilot CSP projects in Central Tower, Parabolic Trough and Linear Fresnel technologies


mac group renewables corporate presentation january 2015 printable

Documents

spectrum of renewable

shore value chain

coverage of value chain

photovoltaic market

wind fund strategy

market segments growth

clean technology investment

technology knowhow