MIROVA Presentation to the European Parliament June 28th 2016 - - PowerPoint PPT Presentation

MIROVA

Presentation to the European Parliament June 28th 2016 Project Langmarken – First EIB direct investment in a wind farm

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

2

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)

Philippe Zaouati

Head of Mirova

PRESENTATION OF MIROVA

Mirova’s infrastructure funds provide an uncorrelated diversification solution to investors targeting tangible and durable assets likely to generate long-term performance while addressing the challenges of sustainable development and climate change.

Infrastructure Funds Fideme / Eurofideme 2 / Mirova – Eurofideme 3 / FIDEPPP / FIDEPPP 2/ BT PIL / MCIF €1 600m AUM, 22 employees Fideme / Eurofideme 2 / Mirova - Eurofideme 3 Renewable energy infrastructure funds in Europe (**) €500m AUM, 7 employees BPCE 2nd largest banking group in France €23.8bn revenues 2015 ; 108,000 employees 17th largest asset manager globally (*) €801.1bn AUM, 3,500 employees Natixis Global Asset Management NAM’s responsible investment subsidiary €6.1bn AUM, 60 employees Mirova

Investments in Infrastructure portfolios are reserved for specific investors, 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.

Strictly Confidential

Langmarken – Project overview

Langmarken (20 MW) Contemplated transaction Legend

Photomontage of the future wind farm

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 – Deal Structure

Deal structure

Mirova- EUROFIDEME 3 LuxcoSA Eolus

Share purchase : 4,800 €

Langmarken AB*

Construction Total : € 2.8 m Construction Total : € 24.7m France Luxembourg Sweden Sweden Construction Price : €26.6m Construction Total : € 9.4m

French dedicated fund

France Construction Total : € 15.7m

EIB

Luxembourg 37.5% 62.5% 90% 10%

Mirova (Asset manager)

Manage

5

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

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