Emerging Cleantech Markets

Australia a Link to Asia

Jeffrey Castellas, CEO

Clean Technology Australasia Pty Ltd

P.O. Box 1790 Melbourne, Australia

jeffcastellas@cleantechforum.com

Australia• Australia is part of Asia - proximity to large regional markets, China, India, SE

Asia

• Australia has a leading position as an investment hub in the Asia pacific region

• Significant R&D base – university, industry and government funded

• History of technology innovation-continuous pipeline of projects

• Vibrant entrepreneurial culture

• strong management expertise in business

• Significant size of capital markets

• Sophisticated financial services industry -

• Excellently positioned to be a centre player in this emerging Clenatech industry

Cleantech and Sustainability

• What is Cleantech Investing?

• Clean technological solutions for sustainability

• Asia Pacific Partnership on Climate and Development

• New Cleantech products for markets at the bottom of the pyramid

Australian institutional funds are

enormous and growing

• Investment market is dominated by pension funds industry

• One of the largest in the world with $700 billion under management

• Funds expected to double in 10 years

Australian institutional funds are

increasing the allocation to

private equity and infrastructure

• Alternatives about 5%

• Fundamentals are sound to meet investment return objectives

Australian funds are looking overseas to invest

• Australia is a limited market for the large amount of capital

• Australian companies looking to acquire international companies and environmental infrastructure assets

• Potential new mandates for international VC’s

New Cleantech investment fund options

• Australia has expertise in financial engineering of new funds

• Method of securitizing funds to create new vehicles raise capital from public markets

• Examples:– Macquarie Bank

– Babcock & Brown

Australia can be a place to raise capital

• International companies and funds can raise capital in Australia

• It is possible to get direct access to the key decision makers

• Superfunds and other institutional investors can facilitate some of the needed financing in clean technology

• Is the timing right? Is there enough deal flow? Is there enough awareness amongst asset consultants and other super funds of the opportunities?

Australian Clean Technology Companies

• Australian boast a long history of innovation in:– water quality control

– waste water treatment

– Alternative fuels

– Desalination

– Clean coal

• Commercialized products now being sold into international markets

• Sustainability screening and rating of Cleantech companies

• Cleantech companies for a SRI portfolio of investments

Australian Cleantech Deals: public and private

Summary

• Australia has a lot of Capital to invest

• Access to regional markets

• Sophisticated financial expertise

• Clean technologies and funds

• Cleantech Finance and Investment Forum

Building AustralAsia's Cleantech FutureBuilding AustralAsia's Cleantech Future

2nd AustralAsian CleantechFinance & Investment Forum

22 August 2006, Sofitel Melbourne

and a gala dinner at The Windsor