Energy Transition Fund - An introduction ABN AMRO Private Equity
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STRICTLY PRIVATE AND CONFIDENTIAL Energy Transition Fund - An introduction ABN AMRO Private Equity
Position and background of ABN AMRO Private Equity
Independent set-up in relation to ABN AMRO
“Sustainable finance
and investment services ▪ Energy Transition Fund (“ETF”) is part of the Corporate
is a key pillar in the Investments department of ABN AMRO Bank, which is
sustainability strategy of the independently managed Private Equity business of
Structured Finance
the bank
ABN AMRO” (“SF”)
▪ Private Equity activities of ABN AMRO consists of three
departments that operates within separate legal
entities, which provide equity and near-equity solutions
to companies and projects ABN AMRO Corporate
Investments
Energy Fund
Maas Capital
Transition Fund Investments
Introduction Energy Transition Fund
▪ In 2018 ABN AMRO introduced the Energy Transition
Fund to include growth capital and buy-out Company Project
Investments Investments1)
transactions, involving companies that contributes to a
low-carbon future, next to traditional investments in
wind and solar assets
▪ Whilst we have traditionally been focussed on the
energy transition, we are currently expanding our MP SOLAR
mandate to include other transitions including Circular
and Social
▪ The team is led by Frederik Deutman and consists of 5
experienced and dedicated investment professionals
1) Logos represent a selection of project
investments and investment partners
2
Energy Transition Fund
ETF invests in companies and early stage projects within the energy
transition landscape
▪ Enterprise value of € 25 – 100 million ▪ Located in Western Europe
▪ Companies with > € 2.0 million EBITDA ▪ Proven business model / clear
▪ Typical equity investments of € 5 – 25 million project visibility
▪ Minority or majority stakes ▪ Identifiable growth potential
▪ > 50% Revenue in Transition activities ▪ Passionate management
▪ No commoditization
Investment
Target Profile
Guidelines
▪ Market growth Transaction Investment ▪ Renewable Energy
▪ Buy & build strategies types Focus ▪ Efficiency & Carbon Reduction
▪ Co-investment: ▪ Clean mobility
− JVs (acquiring assets) ▪ Smart Infrastructures
− MBOs ▪ Circularity
3
Energy Transition Fund
ETF has two main investment themes
1
Energy Transition
a b c d
Renewable Energy Energy Efficiency
Clean Mobility Smart Infrastructures
Chain & Carbon Reduction
▪ Wind ▪ Heat pumps ▪ E-Mobility ▪ Storage
▪ Solar ▪ Heat storage ▪ Clean ▪ Metering
▪ Hydropower ▪ Heat recovery transportation ▪ Smart grid
▪ Biomass ▪ Insulation ▪ EV charging
▪ Geothermal materials
▪ Biofuels ▪ Lighting
▪ Hydrogen
2
Circular Transition
a b c
Product as a Service Material / Resource Recovery Circular Inputs
▪ Reimagined ownership ▪ Value recovery from waste ▪ Substitution of virgin
structures ▪ Heat materials with recycled
▪ Collaborative and ▪ Bio-waste sources
transparent value chains ▪ Waste water
4
Energy Transition Fund
ETF invests in business models with growth story and resilient assets
HOW Growth potential Good visibility of future CFs
We search companies with the We like recurring cash flows or
potential to growth in several years high visibility of future cash flows
2-3 times. Organically or via
takeovers
Leading companies High-Quality Management
We invest in companies which We believe that strong
belong to the top of their specific management teams with a clear
sector strategy will outperform the market
Diversification Impact on sustainability
We include geographical and We are keen to keep track of the
product diversification in our impact of our decisions on
investment decisions to reduce sustainability, using clear
exposure to local subsidy regimes, measurement points
regulations and market dynamics
5
Energy Transition Fund
ETF has a clear value creation philosophy...
WHAT Pursuing growth initiatives Formalizing processes
Supporting regional / Formalizing processes and
international sales and implementing a
expansion exceeding comprehensive business
projected revenue growth for improvement plan to drive
portfolio companies value creation
Supportive approach Disciplined usage of debt
Close interacting with Using prudent leverage to
management through allow for an appropriate level
partnership and integrity of operational flexibility and
through a balanced facilitating value creation
supportive approach initiatives
Enhancing purpose
Supporting management in
strengthening the purpose of
the company and measuring
and increasing impact
6
Energy Transition Fund
...which ETF realizes by providing capital, network and knowledge
towards entrepreneurial companies
WHAT Growth capital
▪ On top of our typical equity investment, we could bring along co-investors to accelerate further growth
▪ We have no focus on cash dividend as we want to accelerate further growth
Network
▪ Assist companies in future strategic-, managerial- and/or other needs
▪ Is involved in the deal process and during investment management and consists of:
▪ Co-investors
▪ ABN AMRO Bank including sector experts, research and account managers
▪ Friends of the house (entrepreneurs or, sector experts)
▪ (Former) portfolio companies
Knowledge
▪ ETF has substantial knowledge of the energy transition and circularity which we contribute to our
investment companies
▪ We have specific financial know-how and are typically involved in M&A, refinancing and assisting in the
execution of the strategic plan
7
Energy Transition FundWe have invested in corporates that are strategically positioned in
energy transition areas...
Company type Description
Compressed Natural ▪ Acquisition of a majority shareholding in the Dutch market leader
Gas for road transport in the sale and distribution of Compressed Natural Gas (“CNG”)
2018 ▪ Together with Meewind, ETF committed EUR 20 million to fund
the Company’s buy and build strategy
PV module equipment & ▪ Acquisition of a majority shareholding in a globally leading PV
service provider module testing equipment & service provider Eternal Sun Group
2019 ▪ Next to acquiring a majority stake, ETF committed ca. EUR 2
million to fund the company’s growth strategy
Solar tracker producer ▪ Investment in Ideematec, a fast-growing producer of solar PV
2019 mounting- and tracking systems for large projects around the
world
▪ Capital will be used for product development, further
strengthening of Ideematec’s international presence in the
MENA region, Asia and America and for expansion of the team.
n-Type silicon wafer & ▪ Investment in NorSun to increase its production capacity
block manufacturer resulting in a minority shareholding for ETF
2019 ▪ ETF joined a consortium with amongst others Statec and Nysnø
▪ Capital used to roll out expansion of production capacity
including the acquisition of new equipment to realise their
expansion goal up to 1GW p.a.
Wind blade component ▪ Acquisition of shares and injection of growth capital
manufacturer ▪ Fiberline’s business unit that focuses on the wind sector has
2020 been carved-out to position the company for growth in the wind
sector
8
Energy Transition Fund...as well as invested in a portfolio of renewable projects
Project type Description
Rooftop solar ▪ ETF invests in rooftop solar systems installed at companies’
2012 industrial sites.
4 MW ▪ In combination with a corporate PPA with Heineken, 4 MW has
been operational since installation
Ground-mounted solar ▪ In Italy, ETF manages a portfolio of solar assets of an industrial
2013 scale
34 MW ▪ Investments have been made in the period between 2010 – 2013
Residential rooftop solar ▪ Together with GET UK, ETF invests in residential solar portfolio in
2017 cooperation with the UK’s leading housing association
▪ ETF committed EUR 25 million equity to the portfolio in 2017
Industrial rooftop solar ▪ Through a joint venture with Solar Access, ETF invests in
2016 industrial rooftop projects mainly focussed on the Netherlands
▪ ETF committed EUR 20 million equity to the portfolio in 2016
Onshore Wind ▪ Together with Greenchoice and Windunie, ETF invests in the
2018 realisation of a Dutch onshore wind project in the province
14.1 MW Overijssel
▪ Attractive debt package backed by Triodos Bank
Onshore Wind ▪ ETF invests in a joint venture with Windunie and alongside
2018 Greenchoice into a 35 MW onshore Dutch wind project
35 MW
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Energy Transition FundNorsun
How we add value Investment highlights Product offering
✓ Providing growth capital
▪ ABN AMRO ETF invested in Norwegian company
to reduce carbon Ingot:
footprint in the solar NorSun, which develops and produces monocrystalline
panel value chain wafers for ultra-high efficiency solar cells. These cells
are mostly used in solar panels.
▪ ETF was able to help NorSun tap into new capital to
double its production capacity, introduce new
technologies and significantly reduce unit costs. ETF,
”NorSun is a leader in its together with new investor Nysnø are NorSun’s largest
fields, and helping it take shareholders next to NorSun’s existing shareholders
this next step in its growth Scatec and Arendals Fossekompani, who also
fits in perfectly with our contributed to the capital raise
ambition to support
companies with strong Block
management teams that Production Process
drive the energy transition.”
- Frederik Deutman, Head
of ABN AMRO ETF Solar grade polysilicon
Czochralski pulling
Shaping the ingot
Wafer
Cutting the wafers
Cleaning the wafers
10
Energy Transition FundIdeematec
How we add value Investment highlights Product offering
✓ Strengthening of the
▪ August 2019, ETF invested in Ideematec GmbH. With
balance sheet to position
Ideematec for further this investment ABN AMRO ETF supports the rapid
Ideematec New
growth growth of the German specialist of tracking systems Horizon product
✓ Professionalisation of ▪ With a track record of over 2 GW, 12 years of L:Tec
organisational processes development experience and 50 patents, IDEEMATEC Tracker
(2020)
✓ Determination and roll-out today offers the leading solar tracking technology on
of international growth the market
strategy ▪ Ideematec produces technically strong solar PV
tracking systems serving large scale solar power
In the course of our projects, globally and mainly located in the sun belt
SafeTrack
involvement in the company countries. The investment will be used for product H4 Horizon
Ideematec has enjoyed: development, further strengthening of Ideematec’s Tracker
✓ 8th largest in the world international presence in the MENA region, Asia and
regarding market share America and for expansion of the team
✓ A successful expansion into
the US market
Public recognition
✓ Strengthened their
prominence in the MENA ▪ IDEEMATEC was awarded as TOP BRAND PV MENA
region in the category „TRACKER SYSTEM“ at the renowned
✓ Refined and strengthened Top Brand PV Award – powered by Joint Forces for
their 2P tracker product Solar Global & EuPD Research – the award is
offering
recognized as the leading certification body within the
✓ Introduction of a 1P version global solar and energy storage industries
of their latest tracker L:Tec
▪ Besides the technical aspects the international jury
also rated the brand in terms of market share, market
reach, interviews with various stakeholders in the
region and attitudes of customers towards the brand
11
Energy Transition FundFiberline Composites
How we add value Investment highlights Product offering
✓ Providing growth capital to
▪ With our investment in December 2020, Denmark- Blade: Carbon fiber spar caps
create separate entity for
wind activities, and to based Fiberline aims to accelerate its steep growth
establish production path in the wind industry by expanding internationally
facilities across the globe • A carve-out of all non-wind activities bolsters full
✓ Using our network to management dedication to the wind industry
introduce seasoned ▪ Fiberline manufactures light-weight carbon fiber and
industry-experts to the glass fiber wind blade components for the world’s
Board of Directors largest OEMs Blade root: Glass fiber root section
✓ Using ABN AMRO Bank’s ▪ The company is widely recognised for its
Sustainability Desk to technologically advanced pultrusion process, with
support Fiberline improve world-class output quality and competitive prices
sustainability impact and
▪ Increasing global demand for longer blades drives a
measurement
need for lighter and stiffer blade material, which has
made the adoption of carbon fiber a logical step
Commitment to sustainability Geographic presence – Manufacturing facilities
▪ Fiberline’s management is very involved in
sustainability, at company level but also very much in
the entire value chain
▪ Fiberline is an active contributor to EuCIA (European
Composites Industry Association) as a board member
Tianjin, China
and member of its sustainability committee
▪ A portion of the company’s glass fibre profile scrap is Middelfart, Denmark (HQ)
recycled and used for cement production
▪ From 2010, Fiberline became the first Danish company
to join forces with recycling specialists Zajons and
Neocomp, for the processing of composite materials
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Energy Transition FundEternalSunSpire Group
How we add value Investment information A strong shareholder consortium to boost growth
✓ Providing growth capital for ▪ New PV module technologies and an increasing
▪ Netherlands-based ESG is a leading manufacturer of
the roll-out of the
solar simulators and integrated climate chambers for demand for highly accurate testing provide a strong
company’s downstream
service propositions measuring the performance and reliability of PV growth outlook for the company’s high-end market
modules. Through its brands Eternal Sun and SPIRE, segment served through its brands Eternal Sun and
✓ Strengthening of the
balance sheet to position ESG serves a global customer base of PV module Spire.
EternalSunSpire for further manufacturers, research institutes and test ▪ Using ABN AMRO ETF’s investment, Eternal Sun
growth laboratories. Group will build out the global team and focus on new
▪ Its contribution to the solar industry is in enabling the products and test services, particularly with regards to
highest degree of measurement control and certainty their downstream offering in import testing and factory
by providing high-end solar testing knowledge, inspection.
technology and services. ESG simulators have
renowned capabilities regarding repeatability,
reproducibility, spectrum, uniformity, and stability.
EternalSunSpire makes sunlight - solar simulators for
Mission statement: Applications of their technology PV module testing
“Moving the solar industry
forward by enabling the
highest degree of
measurement control & High End
certainty through high-end research for Testing
PV module services to PV
solar testing advice, research module buyers
technology and services.” groups
Certification
Maximum
and testing
Power
according to
determination
IEC norms
13
Energy Transition FundOrangeGas
How we add value Investment information OrangeGas product offering
✓ Providing growth capital for ▪ December 2018, ETF became majority shareholder in
(international) expansion ▪Biogas is the sustainable version of
OrangeGas (“OG”), alongside Meewind and CNG.
through selective new Management, to support future growth of the
investments as well as M&A
Biogas ▪Biogas is obtained from sewage
Company treatment, waste processing and green
✓ Further professionalization waste.
of the organisation and
▪ The Company aims to acquire additional filling
improvement of capital stations, in the period 2020-2022, expanding its
structure network in the Benelux, Germany, Nordics and the UK ▪OrangeGas operates fast chargers that
Electric supply 100% green electricity at the
▪ Together with Meewind, ETF will support this buy- lowest rate in the Netherlands.
build strategy by providing a total of EUR 20 million
funding
In the course of our involvement ▪Liquid CO2 is the ideal replacement for
in the company Orangegas has ▪ In addition, OG is active in the fast-growing EV CO2 diesel-powered systems in refrigerated
accomplished: industry with big ambitions for hydrogen distribution in transport.
✓ + 8 new locations opened in the coming years
NL and DE ▪ OG has the aim to become a leading player in ▪Hydrogen cars which make use of Green
✓ Biogas production facility Western Europe within the next 5 years Hydrogen Hydrogen are zero emission and long
project closed large ranges.
✓ + 4 H2 stations opened in the
Amsterdam & The Hague
▪HVO 100 is the best clean substitute for
✓ Development of business into HVO 100 diesel. HVO 100 is produced from
the Nordics renewable, sustainable raw materials.
“With ETF we found a Management Energy Transition Meewind B.V.
shareholder who has trust in our (25%) Fund B.V. (55%) (20%) ▪LBG is the sustainable version of LNG,
LBG
Company together with a long- and a viable option for heavier transport.
term vision and gives us the
resources to realise our
▪ED95 is 95% bioethanol, and mainly
ambitions” used in trucks.
Orange Gas ED95
- Marcel Borger, Co-founder and ▪OrangeGas is looking to be the first
B.V.
CEO company selling ED95.
14
Energy Transition FundA multidisciplinary and perfectly attuned investment team
Team has been purpose-built over a period of 6 years
Frederik Deutman
Managing Director
▪ Joined ETF: 2015
▪ Previous roles: PGGM Infra, Rabo
Project Equity, M&A Fortis Bank
Pieter Smit Thijs Nijland
Investment Director Investment Manager
▪ Joined ETF: 2016 ▪ Joined ETF: 2014
▪ Previous roles: CFO Big Solar, ▪ Previous roles: ABN AMRO Corp.
Director Guidion, M&A Kempen CF Banking, Vattenfall, Alliander
Gijs Romer Lloyd van der Griendt
Investment Associate Investment Associate
▪ Joined ETF: 2019 ▪ Joined ETF: 2020
▪ Previous roles: Private Equity and ▪ Previous roles: ABN AMRO
Leverage Finance at ABN AMRO Corporate Banking
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Energy Transition FundDisclaimer
This presentation has been prepared by ABN AMRO Bank N.V. (“ABN AMRO”) exclusively for the benefit and
internal use of you to serve for discussion purposes only. This presentation is incomplete without reference to,
and should be viewed solely in conjunction with, the oral briefing provided by ABN AMRO. This presentation is
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the prior written consent of ABN AMRO.
The information in this presentation reflects prevailing conditions and our views as of this date, all of which are
accordingly subject to change. ABN AMRO’s opinions and estimates constitute ABN AMRO’s judgement and
should be regarded as indicative, preliminary and for illustrative purposes only. In preparing this presentation,
we have relied upon and assumed, without independent verification thereof, the accuracy and completeness of
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was otherwise reviewed by us.
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