MIROVA Presentation to the European Parliament June 28th 2016 Project Langmarken – First EIB direct investment in a wind farm
PRESENTATION OF MIROVA Strictly Confidential Mirova-Eurofideme 3, managed by Mirova and regulated by the French Financial Markets Regulator, the “AMF” • subsidiary of Natixis Asset Management, fully dedicated to socially responsible investment • A broad range of SRI solutions through listed equities, impact investing, voting and infrastructure • 14 year experience in structuring and managing infrastructure funds dedicated to renewable energy BPCE 2 nd largest banking group in France Mirova’s infrastructure funds provide an uncorrelated €23.8bn revenues 2015 ; 108,000 employees diversification solution to investors Natixis Global Asset Management targeting tangible and durable 17 th largest asset manager globally ( * ) assets likely to generate long-term €801.1bn AUM, 3,500 employees performance while addressing the Mirova challenges of sustainable NAM’s responsible investment subsidiary development and €6.1bn AUM, 60 employees climate change. Infrastructure Funds Fideme / Eurofideme 2 / Mirova – Eurofideme 3 / FIDEPPP / FIDEPPP 2/ BT PIL / MCIF €1 600m AUM, 22 employees Philippe Zaouati Fideme / Eurofideme 2 / Mirova - Eurofideme 3 Renewable energy infrastructure funds in Europe ( ** ) Head of Mirova €500m AUM, 7 employees Figures as at March 30th, 2016. (*) Cerulli Quantitative Update: Global Markets 2015 ranked Natixis Global Asset Management, S.A. as the 17th largest asset manager in the world based on assets under management ($890.0 billion) as of December 31, 2014. (**) FPCI , regulated by the French Financial Markets Regulator (AMF) Investments in Infrastructure portfolios are reserved for specific investors, 2 as defined by their respective regulatory documentation, and are mainly subject to loss of capital risk. The Funds has not been authorised by the French Financial Market Authority (“AMF”) nor by any other supervisory authority.
Langmarken – Project overview Project description and Investment highlights • Langmarken is a 20 MW project with V126 Vestas wind turbines located in Kristinham, 200 km west of Stockholm. Total cost is c 27M€ • This project will produce circa 60 GWh/year in an area where electricity consumption is high. One of the lowest LCOE of Sweden • The project has been developed by Eolus, and experienced local listed company, is currently under construction. The COD is planned for Q1 2017. • It is the fourth Mirova project in Sweden, but too large for Mirova fund alone, and EIB/EFSI co-investment was critical to pursue the investment • Unlevered IRR expected at c. 9% p.a. before any exit. • First distribution to EIB/fundexpected in 2018. Langmarken (20 MW) Legend Contemplated transaction Photomontage of the future wind farm
Langmarken – Deal Structure Mirova Deal structure Luxembourg (Asset manager) EIB Manage France France Mirova- French dedicated EUROFIDEME 3 fund Construction Construction Total : € 9.4m Total : € 15.7m 37.5% 62.5% Share purchase : Sweden Luxembourg 4,800 € Eolus LuxcoSA Construction Construction 10% 90% Total : € 2.8 m Total : € 24.7m Sweden Langmarken AB* Construction Price : €26.6m
Langmarken WIND FARM (Sweden) Langmarken – Under Construction (COD Q1 2017) Key contribution of EIB/EFSI • Swedish tariff mechanism ( merchant + green certificate ) and current level of electricity prices make it challenging to raise project finance, requiring high equity amounts to execute on the Swedish energy transition plan . Too large for the fund • Private PPA with hedging strategy however allow stable cash flow over the mid term, allowing acceptable risk and returns while building at competitive LCOE • Lighter Approval process of EIB in a co-investment with a fund in which they are invested is aligned with the market requirement of quick turnaround 5
Mirova A French simplified joint-stock company - Share Capital: € 7,461,327.50 RCS Paris 394 648 216 - Regulated by AMF: GP 02 014 Registered Office: 21, quai d’Austerlitz - 75013 PARIS
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