Why Ernst & Young? - EY Japan · 2013-02-13 · Ernst & Young’s leadership in cleantech Ernst &...

September 2012

Why Ernst & Young? Cleantech sector

‘Why EY?’ decks were developed by our Global Industry Centers (GICs) as part of the Assurance-driven global growth platform, Winning New Audits. ‘Why EY?’ is intended to be a sector-focused toolkit to help our professionals develop talking points and to serve as a content source for pursuit materials. Though portions of ‘Why EY’ can be repurposed for proposal content, marketing materials and qualifications decks, it is not meant to be brought to clients as a whole. While every effort was made to include as much externally-actionable content as possible, aspects of this content, such as client names, are intended for internal use only. Please heed any disclaimers contained in this document. If you have any feedback or questions about this content, please reach out to a member of the Global Industry Center. ‘Why EY’ is a living document that will be updated frequently by the GICs, so please be sure to always use the most recent copy contained on the Global Industry Center CHS.

What is ‘Why EY?’

Contents

1

2 3

Ernst & Young’s leadership in cleantech

Ernst & Young’s Global Cleantech Center

Services

Market facing initiatives 4

Ernst & Young cleantech definition 4

Cleantech: new energy ad resource efficiency 5

Leading service provider to cleantech companies 6

Key cleantech supply (resource) and demand clients 7

Key supply and demand clients by cleantech vertical 8

Key cleantech investors 9

Multinational corporations 10

Ernst & Young's Global Cleantech Center 12

Global Cleantech Center Team 13

Global Cleantech Center leadership network 14

Identifying future growth opportunities 15

Coordinated sustainability and cleantech services 17

Cleantech market segmentation 18

Services to innovators and developers 19

Cleantech service continuum to innovators 20

Services to investors, corporates and governments 21

Thought leadership publications 23

Thought leadership – cleantech emerging market analyses 24

Thought leadership - cleantech value chains 25

Global cleantech events 26

Appendix: cleantech account considerations 5 Cleantech becomes a competitive advantage 28

Competitiveness drives the capital agenda 29

Corporate focus on resource and energy agenda 30

Section 1

Ernst & Young’s leadership in cleantech

Why Ernst & Young? Global Cleantech Industry Center

Ernst & Young’s leadership in cleantech Section 1

Cleantech represents the technology and business model innovation that enables the transformation to a more resource efficient and low carbon economy. The stakeholders, investors and benefactors of this new industry consist of both new pure-play innovators and companies from the traditional sectors such as technology, power & utilities, automotive and consumer products, etc. The cleantech transformation represents a new industrial revolution that will proceed over many years. Cleantech is both a group of vertical stand-alone industries, as outlined below, and a transformational wave that cuts across every industry as corporations are driven to become resource efficient and low-carbon.

► Energy Bioenergy Geothermal Hydro energy Marine energy Solar energy Wind energy

► Water ► Waste to energy ► Other supply

Supply (resources) Demand ► Energy efficiency

Industrial applications Residential applications LED

► Energy storage ► Electric vehicles ► Smart grid / smart meters ► Water

Monitoring and management systems Prevention and detection

► Advanced materials ► Other demand technologies

Definition: A diverse range of innovative products and services that optimize the use of natural resources or reduce the negative environmental impact of their use while creating value by lowering costs, improving efficiency, or providing superior performance.

CleantechReal

estate Automotive

Industrials

Power and utilities

Oil & gas

Technology

Government

Consumer Products

Bioenergy: BP, Verenium, Cosan, CropEnergies, POET, Royal Dutch Shell

Solar: First Solar, JA Solar, Suntech, Q-Cells, Sunpower, GCL-Poly Energy, Brightsource

Wind: China Longyuan, GE, Siemens, Vestas, Gamesa, Suzlon, Enel Green Power

Geothermal: Ormat Technologies

Water: Veolia, IDE, Seven Seas Water

Waste to energy: Harvest Power, Covanta Energy

Energy efficiency: Johnson Controls, Cree, EnerNOC, Honeywell, Bridgelux

Energy storage : Xtreme Power, Bloom Energy, Saft, Johnson Controls, Boston-Power

Electric vehicles: GM, Tesla, Fisker, Better Place, Nissan, Ford, Smith Electric Vehicles, Daimler

Smart grid/smart meters: GE, Itron, Tendril, Cisco, IBM, Gridpoint, Silver Spring Networks

Water management: IBM, Hyflux, Takadu, Miya Water

Advanced materials: Dupont, Dow, BASF, Rennovia

Sele

cted

com

pani

es

Ernst & Young’s cleantech definition



Stakeholders

Leverage cleantech as part of the national strategy

Create jobs

Drive innovation

Develop local industries

Ensure energy security

Optimize energy mix

Improve the enviroment

External

Grow revenues

Meet consumer demand for greener products

Enter new markets

Enhance innovation

Internal

Improve operational efficiency to reduce cost

Optimize energy mix

Achieve internal sustainability objectives

Government

Corporate

Investors Reduce risk

Increase value

Consumers Greener products

Cost Performance

Employees Growth Stability

Community Environmental

Cha

nge

►

O

ppor

tuni

ties

►

R

isks

► ► ► Capital ► Innovation ► Transparent Information ► ► ►

Finance • >$260b in global investments in 2011– record

year! • Growing number of IPOs – mainly China wind

and solar (e.g., Sinovel - $1.4B, Huaneng - $850M); also US biofuels (e.g., Solazyme - $227M, Gevo - $123M)

• Continuous progress on cost reduction Corporate activity • Increased M&A activity

• >227 M&A deals in 2011. • Increased acquisitions by Japanese and

Korean corporations • R&D / Business development by Chinese

companies in developed and developing markets

• New partnerships models • EY’s Corporate Cleantech study

• Cleantech investments in 2011: • 34%: 2%-3% of annual revenue • 21%: 3%-5% of annual revenue

• 74% will increase cleantech investments in the next 5 years

• Corporations anticipate to do more “leading edge” cleantech acquisitions

Government involvement • Next wave of increased cleantech allocations in

selected government stimulus plans and 5-year plans

• Global cleantech “arms race” to capture innovation, ensure energy security and create competitive advantage

• Austerity-based policies in certain countries have resulted in withdrawal of government commitments

Outcomes

Megatrends • Evolving energy mix • Clean energy as a national competitive

advantage • Corporate growth strategies based on

cleantech • Corporate energy mix strategy development • Cleantech growth in emerging markets • Global electric vehicle (EV) adoption • Energy-water-food nexus Market indicators • $1T invested in cleantech since 2004 (BNEF) • 435 pure-play public cleantech companies

(BNEF) • US market for prof. services in wind and

solar is $91m-$156m / year through 2016 (BNEF)

• Robust IPO pipeline -25% of US IPO pipeline • $1.7T - $2.3T investment in clean power

assets by 2020 (Pew) • Accelerated corporate activity (drivers:

innovation, new markets, consolidation) • New multi-billion market cap industry leaders • Capital: new players (e.g. SWFs), new

business models, new roles (e.g. Chief Capital Officer)

Current dynamics • Falling solar prices are accelerating

competitiveness and deployment—record $137b invested in solar in 2011 (BNEF)

• With austerity in the US and Europe, emerging markets are the growth opportunity; companies must grow beyond.

• China’s 12th 5-Year Plan: 5 of 7 strategic industries are cleantech related

• Strong growth in smart energy—$298b global revenues projected for 2012 (Pike Research)

• Ramp-up in EV production; enabling business models

• Cleantech stakeholder strategy formulation in water

Powerful drivers have caused a transformational change

The transformation has generated reactions, activity and initiatives by corporations, governments and corporate stakeholders that are

significantly linked and have critical dependencies

This has created change and generated opportunities but also raised new risks

The outcome is significant and those that will not take action, can find

themselves at disadvantage

Cleantech has become a growing strategic imperative.

A global transformation in the way natural

resources, including energy and water, are produced, distributed, stored, managed and

consumed

Resource-efficient and low carbon economy

Growing world population

Increase awareness for sustainability

strategy

Increasing middle class consuming power in BRICs

Acceleration of urbanization

Natural resource scarcity

Energy security concerns

Rising energy and commodity prices

Business response to

climate change

Resource and low carbon transformation: sustainability and cleantech are driving change and creating opportunities



Leading provider of professional services to cleantech companies

Global venture-backed companies Big Four-only auditor market share

Ernst & Young is the auditor of choice to cleantech companies ►Ernst & Young is the leading Big

Four firm to venture backed cleantech companies

►Ernst & Young also audits the greatest percentage of the Global Cleantech 100 companies.

119; 41%

76; 26%

57; 19%

42; 14%

Ernst & Young

PwC

Deloitte

KPMG

Based on 294 private VC-backed companies designated as cleantech by Dow Jones VentureSource; 28 September 2012.

Guardian Global Cleantech 100 Big 4 auditor market share

23%

12% 12%

6%

Ernst & Young Deloitte PwC KPMG Cleantech 100 list published November 2011.



Key cleantech supply (resource) and demand clients

Note about use and company selection ► This is a working list of key global Ernst & Young clients

and may not be all-inclusive.

► The clients listed in this document are often used by business development and client service teams to assist in credentializing the firm in various channel 1 and channel 2 situations/opportunities. If a client should not be listed for confidentiality or other reasons, please let us know so we can remove the client’s name from this list.

► If you wish to use client names in external materials, please first check with your geography’s general counsel guidelines on using client names and then seek GCSP approval.

► Area and country leaders are encouraged to supplement these lists with local clients for customized use in your respective geographies.

Please email Scott Sarazen, John de Yonge, or Lily Donge with the following: ► Recommended additions, corrections/changes, or

deletions to the respective lists (please provide channel 1 audit or channel 2 non-audit designations).

► Any comments or recommendations for improvement.

Selected Channel 1 clients Selected Channel 2 clients ► Active Power, Inc. ► BPL Global ► China Hydroelectric Corporation ► Codexis ► Conergy AG ► Cosan S/A. Indústria e Comércio ► Covanta Energy ► Cree, Inc. ► Enel Green Power ► EnerNoc, Inc. ► Enersys ► First Wind ► GridPoint ► Hanwha SolarOne ► Iberdrola Renovables ► Itron ► Johnson Controls Inc ► LS9 ► Magnatek ► Rennovia ► Sensata Technologies ► Sensus Metering ► SGL Carbon AG ► Silver Spring Networks ► Solarwatt AG ► Sud-Chemie AG ► Sunpower ► Suzlon ► Takadu ► Veolia Environnement ► Verenium ► Xinjiang Goldwind

► A123 Systems ► American Water ► Amyris ► Better Place ► Bloom Energy ► Canadian Solar ► Centrotherm Photovoltaics AG ► CropEnergies AG ► Elster SA ► First Solar Inc. ► Hyflux ► Meyer Burger AG ► MiaSolé ► Microsemi ► Ormat Industries ► Renewable Energy Corp (REC) ► Saft Groupe ► Sapphire Energy ► Satcon Technology ► SMA Solar Technology AG ► SolarWorld AG ► Sydney Desalination ► Tendril Inc. ► Tetra Tech ► Vestas Wind Systems ► Wacker Chemie AG ► Westport Innovations


Ernst & Young’s leadership in cleantech Section 1 Ernst & Young’s leadership in cleantech Section 1

Key supply and demand clients by cleantech vertical

Bioenergy Geothermal Hydro Solar Wind Water Waste to Energy

Other

Amyris Ormat China Hydroelectric

First Solar Enel Green Power American Water Covanta Energy

Meyer Burger

CropEnergies Canadian Solar First Wind Sydney Desalination SGL Carbon

Cosan Hanwha SolarOne Ibedrola Renovables Veolia Environnement Sud-Chemie

LS9 MiaSolé Renewable Energy Corp (REC) Wacker Chemie

Verenium Solarwatt Suzlon

Sunpower Vestas

Xinjiang Goldwind

Energy Efficiency Energy Storage Electric Vehicles Smart grid/ Smart Meters

Water Management Other

Cree A123 Systems Better Place Elster Hyflux Tetra Tech

EnerNOC Active Power Johnson Controls Gridpoint Takadu Westport Innovations

Magnatek Bloom Energy Itron Rennovia

Microsemi Enersys Tendril

Sensata Technologies Saft Groupe Silver Spring Networks

Supply side

Demand side

Blue font indicates Chanel 1 client



Note about use and company selection ► This is a working list of key global Ernst & Young clients

and investors in our network, and may not be all-inclusive.

► The investors listed in this document are often used by business development and client service teams to assist in credentializing the firm in various channel 1 and channel 2 situations/opportunities. If a client should not be listed for confidentiality or other reasons, please let us know so we can remove the client’s name from this list.



Please email Scott Sarazen, John de Yonge, or Lily Donge with the following: ► Recommended additions, corrections/changes, or



Key cleantech investors

► DBL Investors ► Draper Fisher Jurvetson ► Ben Franklin Technology Ptrs (1) ► Foundation Capital ► GE Energy Financial Services (1) ► NGEN Partners ► Rho Ventures ► Chevron Technology Ventures (1) ► CMEA Capital ► Connecticut Innovations ► Element Partners (2) ► Madrone Capital Partners ► Hudson Clean Energy (2) ► Virgin Green Fund ► Mohr Davidow ► Harris & Harris

► Chrysalix Venture ► Nth Power (1) ► VantagePoint ► Kleiner Perkins Caufield & Byers (2) ► Silverlake Partners ► Black Coral Capital and McNally

Capital (Cleantech-Syndicate) ► Macquarie (1) ► Keating Capital ► Khosla Ventures ► Enertech Capital ► Emerald Technology Ventures ► Braemar Energy Ventures (2) ► Novus Energy Partners ► North Bridge Venture Partners (1) ► Rockport Capital Partners ► Flagship ventures (1)

Blue font indicates client and (Channel)



Note about use and company selection ► This is a working list of key global Ernst & Young

clients and may not be all-inclusive.

► The clients listed in this document are often used by business development and client service teams to assist in credentializing the firm in various channel 1 and channel 2 situations/opportunities. If a client should not be listed for confidentiality or other reasons, please let us know so we can remove the client’s name from this list.



Please email Scott Sarazen, John de Yonge, and Lily Donge with the following: ► Recommended additions, corrections/changes, or



Multinational corporations and governments (OCAs & GAs) where Ernst & Young has supported cleantech projects and insight sessions Selected corporate clients ► ABB, Ltd. ► Abu Dhabi Water & Electricity

Authority ► BASF SE ► BP PLC ► DTE Energy Company ► E.ON AG ► European Commission ► General Electric Company ► Johnson Controls Inc. ► The Procter & Gamble Company ► Robert Bosch GmbH ► RWE AG ► Schneider Electric SA ► Vattenfall AB ► Veolia Environnement ► World Bank

Section 2



From start-ups to large corporations to national governments, organizations worldwide are embracing cleantech as an engine of growth, efficiency, sustainability and competitive advantage. As cleantech enables the transformation of a variety of industries to be part of a more resource-efficient and low-carbon economy, we see innovation in technology, business models, financing mechanisms, cross-industry partnerships and corporate adoption.

What gives us a unique perspective and point-of-view in this expanding global market (expected to exceed $2 trillion in the next eight years) is our global cleantech center and experienced network.

Whether you are an innovator seeking fresh sources of capital investment to drive scalable growth, a developer looking for guidance on large-scale renewable energy projects or a global corporation trying to gain entry into new markets, our Global Cleantech Center can help make the most of the growing opportunities in the cleantech marketplace.

Find out more about the Global Cleantech Center at: www.ey.com/cleantech

Ernst & Young teams can find more enablement tools on our CHS.

http://chs.ey.net/servlet/CHSRenderingServlet?siteAreaID=SA-EYDE-75DNAZ&chsReplicaID=8525776C003DFC22


Ernst & Young’s Global Cleantech Center Section 2

Global Cleantech Center

John de Yonge Director, Account Enablement New York +1 201 872 1632 [email protected]

Scott Sarazen Global Cleantech Markets Leader Boston +1 617 585 3524 [email protected]

Gil Forer Global Cleantech Leader New York +1 212 773 0335 [email protected]

Robert Seiter Cleantech Leader – EMEIA Berlin +49 30 25471 21415 [email protected]

Paul Go Cleantech Leader – Asia-Pacific Beijing +86 10 58153688 [email protected]

Jay Spencer Cleantech Leader – Americas Boston +1 617 585 1882 [email protected]

Paul Naumoff Global Cleantech and CCaSS Tax Leader Columbus, OH +1 614 232 7142 [email protected]

Ben Warren Energy & Environmental Infrastructure Leader London, UK +44 20 7951 6024 [email protected]

Global center team Area leaders Service line leaders

Heather Sibley Global Cleantech Assurance Leader San Francisco, CA +1 415 894 8032 [email protected]



Offshore wind 14

Americas► Jay Spencer, Area Leader

EMEIA► Robert Seiter, Area Leader

Daniel Maranhão Brazil

Cynthia Orr Canada

Ray Mikovits Financial Services

Itay Zetelny Israel

Jeff Relyea US: East Central

Paul Chevalier US: Midwest

Sean Riegler US: Northeast

Matthew Sapp US: West

Steven McCabe US: Southeast

Lisa Shepard US: Southwest

Robert Seiter EMEIA/GermanyPhilippe Grand FranceAlexis Gazzo FranceSanjay Chakrabarti IndiaAndrea Paliani ItalyMichael Hasbani Middle East Nimer AbuAli Middle East Wolfgang Paardekooper NetherlandsKarstenBoegel Nordics (Denmark)Norman Ndaba South AfricaRico Fehr SwitzerlandSteven Lang UK and IrelandThomas Christiansen EMEIA Operations Manager

AsiaPac► Area leader: Paul Go

Americas cleantech leadership network

EMEIA cleantech leadership network

Global► Gil Forer, Global leader► Scott Sarazen, Global Markets leader► Paul Naumoff, Global Tax Leader► Ben Warren, Energy and Environment

Infrastructure Advisory Leader► Heather Sibley, Global Assurance

Leader► Nicola Marshall, Transaction

Advisory Services Resident Manager► John de Yonge, Account Enablement

Director

Paul Go AsiaPac / Greater China

Mathew Nelson Australia

Moon-ho Choi Korea

Krishna Sadashiv Singapore

AsiaPac cleantech leadership network

Global Cleantech Center leadership network



In partnership with other global industry centers and service lines, we are identifying key emerging business issues and models that will drive the global cleantech economy and create market opportunities for Ernst & Young and our clients. Clean transportation Battery-powered electric vehicles (EVs) and other clean or zero emission vehicle technologies are now operationally and economically proven and will continue to be adopted by both consumers and large fleet users. This emerging ecosystem creates new businesses and business models - transforming existing vehicle manufacturers as well as the individual, corporate and municipal consumers who adopt these new technologies. In partnership with the GAC and GPUC, the Global Cleantech Center is exploring these opportunities. Sustainability and Transparency With Ernst & Young’s Global Climate Change and Sustainability Services network, we are advising our clients on their strategies to sustain growth and consumer confidence in the face of mounting environmental challenges. Energy Mix and Energy Efficiency The strategic management of energy by corporations is rapidly evolving in response to a variety of business risks—financial, energy security, brand equity, regulatory and competitive. In response, corporations are evaluating various options for energy generation and consumption while also making significant increases in energy efficiency measures. Innovators and investors are responding to this demand with increased investment in new energy efficiency businesses and technologies. In partnership with the GREC and GPUC, the Global Cleantech Center is focusing on the full value chain of this emerging ecosystem. Water technologies In both emerging and western geographies, the demand for water is increasing at rates that cannot be satisfied with existing systems and sources – globally, the demand for potable water is expected to double in the next 20 years. From investors to global corporations, new technologies and businesses are being created to address this global opportunity.

Identifying future growth opportunities

CleantechReal

estate

Power and utilities

Oil & gas

Technology

Government

Consumer Products

Section 3

Services


Services Section 3

Innovators Developers Investors Corporations Governments

Private and public (SGM / GA) Infrastructure

Global PE

houses ALL

National strategy focus

Dedicated VC/PE

Core Competency

Expand Competency

Cleantech Global Sector Center

CCaSS Sub Service Line

Cleantech Leaders Area / Sub-Area

CCaSS Leaders Area / Sub-Area

One vision, one team, one billion

ABD/ AIBD Assurance VC / MP

Serving the market: coordinated sustainability & cleantech services


Services Section 3

The cleantech market - from innovation to implementation

Innovators Developers Investors Corporations Governments

Private and public (SGM / GA) Infrastructure

Global PE

houses ALL National strategy focus Dedicated

VC/PE

Core Competency

Expand Competency

Capital agenda Growth Competitive advantage Innovation New business models New product development Commercialization / expansion Growing beyond borders Partnerships, JVs and Alliances Strategic transactions Industry consolidation Path to profitability Policy & incentives

Capital agenda Growth Value chain integration Strategic transactions Time to market Delivering capability – construction / technology Operational efficiency Risk management Growing beyond borders Asset valuations Divestiture Policy & incentives

Capital deployment / investment

IPO Readiness / Exit Readiness

New capital sources

Transparency of sustainability data

Risk mitigation

Creating value through sustainability – portfolio efficiency

Resource efficiency

Energy agenda

Transparency

Increased pressure from regulators and stakeholders

Access to innovation

Effective and sustainable supply chain

Growth through sustainable development

Environmental, Health and Safety

Resource security

• Energy

• Water

• Food

• Other

Economic and national competitiveness

Innovation and jobs

New infrastructure requirements

Policy and regulations to match global commitments and environmental needs

Low carbon agenda

Sustainable and green cities

Seg

men

t pr

iorit

ies


Services Section 3

Developers

Operational agility • Public private partnership bid support

• Bid advisory • Debt and equity raising

• Infrastructure M&A advisory • Refinancing • Assets / portfolio optimization • Sell-side M&A

• Buy-side M&A

Stakeholder confidence • Financial audit (informed by cleantech insight) • Sustainability and Cleantech strategy advisory and implementation • Sustainability measurement, reporting and valuation • Sustainability risk • Sustainability assurance • Sustainability and Cleantech public policy advisory • Financial audit of parent company Financial audit of parent company Financial audit of parent

company

Capital agenda

Growth

Competitive advantage

Innovation

New business models

New product development

Commercialization / expansion

Growing beyond borders

Partnerships, JVs and Alliances

Strategic transactions

Industry consolidation

Path to profitability

Policy & incentives

Capital agenda

Growth

Value chain integration

Strategic transactions

Time to market

Delivering capability – construction / technology

Operational efficiency

Risk management

Growing beyond borders

Asset valuations

Divestiture

Policy & incentives

Innovators

Customer Reach • Economic modeling • Real estate: site selection / economic incentives • Real estate: PMO / project risk management / contract compliance /

construction cost audit • Project assurance and reporting • IPO Readiness

Cost Competitiveness • Cleantech incentives (R&D / Production): identify/apply/comply • Cleantech subsidies (R&D / Production): identify/apply/comply • Tax equity for renewable investments • Cost / tax efficient structures • Project finance advisory: equity, debt, tax equity • Capital and debt advisory

• Treasury advisory • Ratings advice • Corporate finance

• Public / private advisory • Debt / equity

Operational agility • JVs / Partnerships / Alliances • PMO • Real estate advisory • Human capital

Stakeholder confidence • Financial audit (informed by cleantech insight) • Sustainability and Cleantech strategy advisory and implementation • Sustainability measurement, reporting and valuation • Sustainability risk • Sustainability assurance • Sustainability and Cleantech public policy advisory

Customer reach • Strategic advice

• Growth strategy formulation • Strategy implementation • IPO Readiness • Investing

• M&A buy-side • Valuation and business modeling • Due diligence (financial / commercial) • Operational transaction support / Transaction integration

• Growing beyond borders insights session • Introduction to potential investors and partners (events/one-on-one) • Industry insights

Cost competitiveness

• Capital raising

• Debt / equity • Public / private

• Cleantech incentives (R&D / Production): identify/apply/comply • Cleantech subsidies (R&D / Production): identify/apply/comply • Global tax strategy • Tax compliance

Cleantech services: innovators & developers


Services Section 3

Cleantech service continuum for Innovators

As cleantech companies progress through different stages of development, Ernst & Young has an opportunity to provide both traditional growth company services and cleantech advisory services. Cleantech companies are global from day one of operation.

Company stage (growth trajectory)

Capital source

Service opportunities

► Financial audit (informed by Cleantech insight) ► Tax credits and incentives ► Valuations & business modeling ► Capital raising ► Real estate advisory ► Due diligence (commercial and financial) ► Clean technology partnership advisory ► Government Cleantech programs

► Securing tax credits and incentives ► Developing corporate partnerships ► Securing growth capital ► Implementing financial reporting and systems ► Managing innovation

► IPO readiness ► Tax credits and incentives ► Real estate advisory ► Financial advisory ► Due diligence ► Valuations and business modeling ► Clean technology partnership

advisory ► Government Cleantech programs ► Growing Beyond Borders

insight session

► Securing tax credits and incentives ► Securing project financing ► Permitting and project build ► Customer acquisition ► Developing corporate partnerships ► Market access ► Accessing public markets ► Feedstock supply

► Market expansion ► Tax effectiveness ► Financial systems and controls ► Acquisition strategy ► Innovative financing structures ► Supply chain effectiveness ► Investor relations ► Sustainability ► Developing corporate partnerships

► Construction management

► Financing options ► Hedging ► Regulatory insight

Technology development (partnerships, JVs, investments) Project development (partnerships, JVs, investments) Solution sets and market access

Pilot plant/ product development

Demo plant/ Beta product

Operational ramp-up

Commercial plant/product

Project portfolio development

Company expansion

Public

Business challenges

Corporate intersection

Technology development

► Financial Advisory ► Government programs

advisory ► Due diligence ► Sustainability strategy

development

► Transaction advisory ► Global tax advisory ► Tax credits and incentives ► Regulatory and policy advisory ► Cleantech business development ► Clean technology development and

adoption ► Sustainability advisory


Services Section 3

Sustainability and Cleantech strategy advisory and implementation

Sustainability measurement, reporting and valuation Sustainability risk Sustainability

assurance

Sustainability and Cleantech public policy advisory

Ove

rvie

w Advisory on corporate sustainability and

cleantech strategies to drive energy, environmental and economic efficiency, drive revenue growth, strengthen competitive advantage, enhance brand reputation and increase shareholder value.

Assisting clients in measuring, reporting and valuing sustainability strategies and initiatives

Environmental and social risk assessment with the objectives of increasing value and reducing risks and costs.

Assurance on sustainability information

Public sector advisory on sustainability programs, climate change, cleantech and energy policy

Prog

ram

s an

d so

lutio

ns

• Benchmarking and insights: industry trends and best practices

• Strategy design, roadmap and implementation • Stakeholder engagement and materiality

assessment • Resource efficiency and low carbon strategies:

• Vulnerability test • Energy mix strategy and implementation

(roadmap, capital, technologies) • Energy, water and material resources

efficiency and procurement programs • Supply chain performance improvement

• Green products design and strategy • Carbon tax, cleantech tax incentives and

government programs • Carbon markets and CDM advisory • Energy and environmental policy advisory • Market penetration and transaction support

(investment, acquisition, JV, partnerships) • Corporate venture capital formation and

portfolio IPO readiness Support services • Transaction integration • Supply chain

• Sustainability and integrated reporting advisory • Benchmarking • Framework and content development • Report improvement • Processes for measurement and data capture

(e.g., tools, software, internal reporting) • Valuation methodologies for intangible assets

and externalities • Carbon, energy, waste, and water mapping for

organizations or products (including life cycle assessment)

• Social impact assessment

Support services • Tax incentives • Performance improvement

• Sustainability and climate change risk assessment

• Supply chain audit • Sustainability and climate

change risk process improvement

• Sustainability internal audit

Support services • Environmental due diligence • Internal Audit • Enterprise Risk Assessment

(ERA) • FIDS

• Pre-assurance readiness assessment

• Non-financial information assurance

• Greenhouse gas emission assurance

• Sustainability product/ portfolio assurance

• Management practices assurance

Support services • Financial audit

• Benchmarking and Global Adaptation Index performance

• Mitigation policy advisory • Adaptation policy advisory • Cleantech, including

renewable energy, policy advisory

• Sustainable and green city advisory

• Sustainability policy advisory

Sustainability & cleantech services: investors, corporates & governments

Section 4

Market facing initiatives

Market facing initiatives Section 4

Renewable energy country attractiveness indices ►Our quarterly report ranking national renewable energy markets and their

suitability for individual technologies. Growing beyond: the cleantech growth journey from product development to global market leadership - CEO retreat report ►Report from our first annual Cleantech CEO Growth Journey retreat, insights

from nearly 50 CEOs to address the industry's capital, partnership and expansion challenges.

IFRS in the Wind and Solar industries ►Separate pieces for wind and solar that provide insights on key IFRS

accounting issues relevant to these changing and dynamic industries. Cleantech matters: moment of truth for transportation electrification ►The report from our annual Cleantech Ignition Sessions which convene

industry players from around the world to discuss trends in electrification of vehicles.

Cleantech matters: global competitiveness - global cleantech insights and trends report ►The annual cleantech report provides a global perspective of trends in the

cleantech marketplace supported by analysis from the firm's various SMRs in addition to noted industry experts.

Thought leadership publications


These single frames demonstrate the growing role of cleantech in the national strategies of these countries and the growth potential of cleantech over the next decade in selected markets, including: ► Brazil: a national cleantech strategy for competitiveness

► Canada: renewable energy to drive economic growth

► China: leader in clean energy

► Denmark: an early cleantech adopter

► France: Preparing for a shift from nuclear to renewables

► Germany: solar pioneer

► India: solar power takes the center stage

► Israel: world leader in water technologies

► Japan: focus shift towards renewables post Fukushima

► Kingdom of Saudi Arabia: emerging leader in solar energy

► South Africa: Future driver of cleantech through water, solar and wind

► South Korea: cleantech as a national strategy

► United Arab Emirates: economic diversification through cleantech

► United Kingdom: global leader in offshore wind energy

► United States: center for cleantech innovation

Thought leadership – cleantech emerging market analyses


These insightful tools are designed to foster rich discussions not only with innovators but also with corporations, investors and other stakeholders.

Solar value chain ►Provides perspective on the size of the solar industry, its

complexity and its global nature. Smart grid value chain ► Identifies the industry participants that come together to

provide clean energy delivery. Electric vehicles value chain ►A detailed electric vehicle value chain illustration

highlighting selected global companies involved at each stage of EV production

Thought leadership – cleantech value chains


2012 events included:

► World Future Energy Summit Abu Dhabi 16-19 January 2012

► World’s foremost annual meeting for renewable energy and environmental industry. EY is a sponsor.

► Bloomberg New Energy Finance Summit New York 9-21 March 2012

► Convening over 450 of the world’s foremost authorities on clean energy from across the sector, this is BNEF’s primary annual event, which we sponsor, and continues to set the scene for the Clean Energy industry.

► The Aspen Institute Clean Energy Roundtable Aspen 12-15 July 2012

► This invitation-only roundtable brings together top energy, finance, and policy experts for an in-depth conversation on how to quickly and efficiently move toward a clean energy economy.

► Cleantech CEO Retreat Napa Valley, CA 10-11 September 2012

► The Global Cleantech Center’s marquee event brings together CEOs from emerging cleantech companies, with strategic corporate and government partners for an intimate dialogue on issues facing their businesses.

Global cleantech events

Section 5

Appendix: cleantech account considerations


Appendix Section 5 Appendix Section 5

Industry megatrend: cleantech becomes a competitive advantage

Cleantech as competitive advantage

Innovators

What are the overall issues and implications? The cleantech enabled transformation to a resource-efficient and low carbon economy is characterized by many as the next industrial revolution. As this transformation accelerates, global corporations are increasingly coming to the realization that they must understand the impact of cleantech on their industries and develop strategic action plans, whether to improve their internal operations, implement a more efficient energy and other resources mix or pursue new cleantech-enabled revenue opportunities. Governments also view cleantech as a national strategic platform for creating jobs, fostering innovation, and establishing local industries.

How are we helping clients?

• Benchmarking • Customized insight-based meetings / workshops • Partnership and alliance advisory • Lead M&A advisory • Tax incentives • Corporate venture capital advisory • Growing Beyond advisory • Due diligence

What is happening in the marketplace?

• Global cleantech investment touched a new high in 2011, growing 7% from the previous year to reach a record of US$263 billion according to Bloomberg New Energy Finance. Investment has been driven by growth in emerging markets, especially China and India.

Government involvement • Market momentum shifting to emerging market countries

that are pursuing well-defined national cleantech strategies, e.g., China, S. Korea, S. Africa, Brazil

• Global cleantech “arms race” to capture innovation, ensure energy security and create competitive advantage

Corporate activity • >227 M&A deals in 2011. • Increased acquisitions by Japanese , S. Korean and

Chinese corporations • R&D / Business development by Chinese companies in

developed and developing markets • New partnerships models

What are the critical issues to be addressing now? • Increased emphasis by corporations on revenue

generations and not only operational efficiency and cost savings.

• Accelerated activity between larger corporations and innovators in the cleantech marketplace - direct investments, partnerships and acquisitions.

• Increased allocations to internal R&D by large corporations.

• Looking at revenue generations beyond existing core competencies.

• Corporations are looking more to focus on cutting edge acquisitions and not only leading value ones.



What are the overall issues and implications?

• According to Bloomberg New Energy Finance, $262b were invested in clean energy n 2011, the strongest year so far for investment in clean energy .

• However, A global oversupply of renewable equipment due to the economic downturn and austerity measures in the US and Europe challenges equipment manufacturers .

• Falling prices increase competitiveness of renewable energy and accelerates adoption, particularly in emerging markets.

• Winning companies will emerge from a period of shake-out and consolidation as market conditions favor the most efficient, global producers.

• Cleantech innovators in developed markets are challenged to find growth capital in the absence of a robust IPO pipeline.

• Capital innovation is required (sources, models, roles, etc.)

How are we helping clients? • Transaction readiness and alternatives (Ch1 and Ch2) • Project finance advisory • Fund structuring • Partnership and alliance advisory • Due diligence • Government tax incentives and grants acquisition • Growing Beyond advisory

What is happening in the marketplace? • Governments in the US and Europe are pulling back

support for cleantech in light of austerity measures. • Investors are looking to structure new models that are

tailored to cleantech time scales. • Non-dedicated cleantech investors are exiting the market • Asset financing dominates cleantech investment • Cleantech innovators continuously trying to raise capital • Currently no clear path to IPO • Strategic partnerships and alliances increasingly

important as a path to commercialization and global expansion.

What are the critical issues to be addressing now?

• How do a preserve capital as seek financing and commercialize my technology?

• How do access foreign investment sources and government opportunities?

• What is the full range of potential capital sources? • How do I identify an appropriate strategic partner? What

are the risks in partnership deals? How to overcome them?

• How do I access project finance sources?

Governments

Capital agenda

Innovators

Investors

Corporates

Industry megatrend: competitiveness drives the capital agenda



How are we helping clients? • Benchmarking and insights: industry trends and best

practices • Strategy design, roadmap and implementation • Resource efficiency and low carbon strategies:

• Vulnerability test • Energy mix strategy and implementation • Energy, water and material resources efficiency

programs • Supply chain performance improvement • Waste and electronics waste • Green building and LEED advisory

• Carbon tax, cleantech tax incentives and government programs

• Carbon markets and CDM advisory

What is happening in the marketplace?

• Corporations are evaluating various options for energy generation and consumption

• The rise in energy prices increased the interest in diversifying energy mix and looking for alternative energy sources.

• Increasing corporate use of renewable energy, both self-generated and acquired

• Significant increase in corporate energy efficiency measures

• Growing corporate self-generation of energy in light of energy security concerns

What are the critical issues to be addressing now? • What is the right energy mix? Who should be responsible

for energy mix strategy? • Financing and capital issues related to energy mix

projects • Identifying and accessing government grants and

incentives • Assessing and selecting technologies • Measuring or tracking progress in meeting energy mix

strategy objectives

What are the overall issues and implications? The strategic management of energy by corporations is rapidly evolving in response to a variety of business risks—financial, energy security, brand equity, regulatory and competitive. A Global Cleantech Center survey of 100 companies with revenues of US$1 billion or more showed that: • The largest global corporations are meeting the challenge

of transitioning to a low carbon and resource-efficient economy through proactive energy strategies with C-suite engagement.

• Improving energy efficiency to mitigate energy cost hikes, increasing use of renewable energy and growing energy self-generation form the foundation of corporate energy strategies worldwide.

• Only those corporations that have a comprehensive and diversified energy strategy will be able to create a competitive advantage in the new world of a more resource-efficient and low-carbon economy.

Energy Mix

strategy

Financial risk

Competitive risk

Regulatory Risk

Brand Equity Risk

Energy Security

Risk

Industry megatrend: corporate focus on resource and energy agenda Energy mix strategy and resource/energy efficiency

Ernst & Young

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About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com.

How Ernst & Young’s Global Cleantech Center can help your business

From start-ups to large corporations and national governments, organizations worldwide are embracing cleantech as a means of growth, efficiency, sustainability and competitive advantage. As cleantech enables a variety of sectors, old and new, to transform and participate in a more resource-efficient and low-carbon economy, we see innovation in technology, business models, financing mechanisms, cross-sector partnerships and corporate adoption. Ernst & Young’s Global Cleantech Center offers you a worldwide team of professionals in assurance, tax, transaction and advisory services who understand the business dynamics of cleantech. We have the experience to help you make the most of opportunities in this marketplace, and address any challenges. Whichever sector or market you’re in, we can provide the insights you need to realize the benefits of cleantech.

© 2012 EYGM Limited. All Rights Reserved.

1208-1385199 NY This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

Ernst & Young Global Cleantech Center leadership network

Ben WarrenEnergy & Environmental Finance Group LeaderLondon+44 20 7951 [email protected]

Gil ForerGlobal LeaderNew York +1 212 773 0335 [email protected]

Jay SpencerAmericas LeaderBoston+1 617 585 [email protected]

Paul GoGreater China LeaderBeijing+86 10 [email protected]

Scott SarazenGlobal Markets Leader Boston+1 617 585 [email protected]

Paul NaumoffGlobal Cleantech and Sustainability Tax LeaderColumbus+1 614 232 [email protected]

John de YongeDirector, Account EnablementNew York+1 201 872 [email protected]

Robert SeiterEMEIA LeaderBerlin+49 30 25471 [email protected]

Heather SibleyGlobal Cleantech Assurance LeaderSan Francisco+1 415 894 [email protected]

Nicola MarshallTransaction AdvisoryServices Resident Manager+1 212 773 [email protected]

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