Energy ManagementSECTOR UPDATE I Q3 2021

1

Select Energy Management M&A Transactions

Veregy expands into California and industrial markets through key acquisition

› Veregy, an industry leader in comprehensive engineering, design, and implementation services relating to infrastructure upgrades and energy-efficient sustainability, announced that it is expanding its national footprint through the acquisition of Enpowered Solutions, LLC. Enpowered is a leading provider of energy, commissioning, and industrial controls services to institutional, commercial, and industrial markets.

May 11, 2021

Partners Group has signed a definitive agreement to acquire Reedy Industries

› Partners Group, a leading global private markets firm, has agreed on behalf of its clients to acquire Reedy Industries, one of the largest heating, ventilation, and air conditioning service providers in the U.S., from Audax Private Equity. As part of the transaction, the Reedy family, management, and Audax will remain minority investors in the Deerfield, Illinois-headquartered business.

July 27, 2021

Therma Holdings announces acquisitions to expand energy and sustainability solutions platform

› San Jose, California-based Therma Holdings announced it has entered into agreements to acquire two leading engineering and energy services companies, CMTA and Building Systems Holdings. Prospect, Kentucky-based CMTA is a national engineering design firm focused on energy-efficient buildings and delivering energy savings performance contracts for hospitals, universities, K-12 schools, federal facilities, and municipalities. Building Systems Holdings, which has its headquarters in Minneapolis, is an engineering and construction management firm.

July 16, 2021

Priority Power receives $250M investment from Oaktree Capital, other investors

› Priority Power Management, an Arlington, Texas-based energy services provider offering smart energy solutions and transitions to carbon neutrality backed by Ara Partners, has received a $250 million investment from Oaktree Capital Management and other institutional investors.

September 1, 2021

Resource Innovations announced it is adding energy services and software firm Nexant, Inc. to the organization

› Resource Innovations, a woman-led energy consulting company, announced it is adding energy services and software firm Nexant, Inc. to the organization. The combined company will result in a powerful yet nimble organization for driving best-in-class energy and software solutions to utilities and energy consumers.

May 12, 2021

2

Public Valuation Multiples by Sector1

Stock Performance (1- & 3-Year) EBITDA Multiple Comparison Q2 2020 vs. Q2 2021

EBITDA Multiple Comparison NTM Q2 2020 vs. NTM Q2 2021

1. S&P CapIQ

International EnergyServices

Utilities/IPPs

Professional Services

Energy Management & Building Technology

Facility Services

14.5x

18.1x

12.1x 11.6x

8.4x

14.0x

19.5x

12.8x

17.8x

7.0x

Professional Services Energy Management &Building Technology

Utilities/IPPs Facility Services International EnergyServices

Q3 2020 Q3 2021

12.9x

16.1x

11.6x 11.7x

5.9x

13.0x

16.8x

11.0x10.2x

5.6x

Professional Services Energy Management &Building Technology

Utilities/IPPs Facility Services International EnergyServices

NTM Q3 2020 NTM Q3 2021

32.2%

40.8%

14.9%

9.4%

15.8%

29.9%

70.0%

15.6%

17.3%

(4.2%)

3-Year Performance 1-Year Performance

3

Continued Momentum in Energy Management Investment Activity

Acquirers

Targets

2020 2021

EEConsulting

EM Software

EnergyEfficiency

EnergyEfficiency

SmartBuildings

EnergyServices

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EMSoftware

EE Consulting

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

SmartBuildings

EnergyEfficiency

EE Consulting

EnergyProducts

EnergyEfficiency

EnergyEfficiency

EnergyEfficiency

4

What We’re Reading

Green Finance Goes Mainstream, Lining Up Trillions Behind Global Energy

Transition

WSJ I Read here

Some of the world’s biggest companies and deepest-pocketed investors are lining up trillions of dollars to finance a shift away from fossil fuels. Assets in investment funds focused partly on the environment reached almost $2 trillion globally in the first quarter, more than tripling in three years. Investors are putting $3 billion a day into these funds. More than $5 billion worth of bonds and loans designed to fund green initiatives are now issued every day. The two biggest U.S. banks pledged $4 trillion in climate-oriented financing over the next decade.

DOE Moves to Reverse Trump Rollback, Subject Billions of Light Bulbs to Higher

Efficiency Standard

UtilityDive I Read here

The U.S. Department of Energy wants to expand the number of light bulbs subject to federal efficiency standards and issued a Notice of Proposed Rulemaking (“NOPR”) to bring bulbs used in about 2 billion sockets under federal regulation, including decorative fixtures and recessed and track lighting. The NOPR does not propose a new standard but alters the definition of general service lamps and general service incandescent lamps to bring more bulbs under federal rules.

EMPEQ Unveils New FastSiteSurveyData Capture & Reporting App

NAESCO I Read here

Empower Equity, a software development and financial technology company serving the commercial HVAC, energy engineering, and building equipment industries, announced the commercial launch of FastSiteSurvey, a seamless equipment data capture application that is revolutionizing commercial and industrial building equipment audits and enabling energy efficiency professionals to complete more projects in a fraction of the time, more accurately, and at a much lower cost.

ENGIE North America and Axium Infrastructure Reach Financial Close on

Long-Term Georgetown University Energy Infrastructure Partnership

ENGIE I Read here

ENGIE and Georgetown University in Washington, D.C., announced that they have entered into a comprehensive energy agreement to address sustainability and energy conservation through ENGIE’s management of the university’s utility system. During the term of the agreement, ENGIE will assume responsibility for the enhancement, operation, and upkeep of the electrical, heating and cooling, and domestic water systems.

Generac Power Systems Announces the Formation of Grid Services Group

Generac I Read here

Generac Power Systems announced the formation of a new group called Generac Grid Services. In addition, Bud Vos, currently president of Enbala Power Networks, a Generac subsidiary, has been named president – Generac Grid Services, and will now report to Aaron Jagdfeld, president and chief executive officer. Generac Grid Services will provide solutions directly to utilities, grid operators, and energy markets, leveraging products from across the enterprise, including home standby generators, PWRcell storage systems, industrial natural gas generators, and others.

5

Select Recent M&A Transactions

Date Closed Acquirer Target Business Description

9/20/2021 Generac Holdings Tank Utility Provider of IoT propane tank monitoring that enables the optimization of propane fuel logistics.

9/8/2021 Reedy Industries Page Mechanical Group Commercial HVAC contractor serving Southwest Florida with locations in Tampa, Fort Myers, and West Palm Beach.

9/1/2021 Oaktree Capital Priority Power Texas-based independent energy management and consulting services firm to large commercial, industrial, and government customers.

9/1/2021 Generac Holdings Off Grid EnergyLeading designer and manufacturer of energy storage products and solutions that can be readily adapted for new applications and geographical markets.

8/24/2021 NV5 Sage Energy Consulting Project management and energy consulting firm for businesses, public agencies, and school districts.

8/10/2021 SER Capital Partners Brightcore Energy New York-based clean energy and efficiency as a service company serving commercial, industrial, and institutional real estate owners.

8/3/2021 Quantela CIMCON LightingMassachusetts-based provider of software-powered lighting controllers and IoT-enabled Smart City lighting management solutions.

7/27/2021 Partners Group Reedy IndustriesIllinois-based provider of commercial heating, ventilation, and air conditioning services for commercial, industrial, and municipal buildings.

7/16/2021 Therma CMTANational engineering design firm focused on energy-efficient buildings and delivering energy savings performance contracts for hospitals, universities, K-12 schools, federal facilities, and municipalities.

7/16/2021 Therma Building Systems Holdings Minnesota-based engineering and construction management firm.

7/12/2021 Ayres Associates Gausman & Moore Associates Full-service mechanical and electrical consulting engineering firm providing services throughout the United States.

5/25/2021 BV Investment Partners NexantSubstantially woman-owned, woman-led energy consulting firm dedicated to creating equal access to clean resources through diverse partnerships.

5/11/2021 Veregy Enpowered SolutionsMarket-leading energy, commissioning, and controls company that provides customer-focused consulting services to commercial, industrial, institutional, and utilities across the U.S. and Canada.

6

Public Market Observations1

1. S&P CapIQ

Multiples Summary

Market Stock Price Enterprise Enterprise Value / Revenue Enterprise Value / EBITDA

Company Capitalization Current Value CY2021E CY2022E CY2021E CY2022E

Energy Management & Building Technology

Ameresco, Inc. 3,002,631$ 58.43$ 3,997,703$ 3.4x 3.1x 27.2x 23.2x

Carrier Global Corporation 44,912,224 51.76$ 54,385,869 2.7x 2.5x 16.9x 15.3x

Eaton Corporation plc 59,542,524 149.31$ 73,419,921 3.7x 3.6x 19.7x 17.5x

Honeywell International Inc. 146,557,957 212.28$ 161,072,488 4.6x 4.3x 18.3x 16.5x

Itron, Inc. 3,421,175 75.63$ 3,632,870 1.7x 1.6x 23.8x 15.7x

Johnson Controls International plc 48,488,226 68.08$ 58,942,242 2.4x 2.3x 16.0x 14.2x

Schneider Electric S.E. 92,563,991 166.78$ 91,014,812 2.8x 2.6x 14.1x 13.0x

Trane Technologies plc 41,023,142 172.65$ 44,174,838 3.1x 2.9x 18.2x 16.6x

Willdan Group, Inc. 453,859 35.59$ 539,723 1.4x 1.0x 20.2x 10.8x

Median 44,912,224$ 75.63$ 54,385,869$ 2.8x 2.6x 18.3x 15.7x

Facility Services

ABM Industries Incorporated 3,026,524$ 45.01$ 3,424,754$ 0.5x 0.5x 7.8x NA

FirstService Corporation 7,945,312 181.12$ 11,115,922 3.5x 3.2x 33.8x 30.8x

ISS A/S 3,905,285 21.14$ 37,427,061 3.5x 3.3x 74.4x 54.4x

Sodexo S.A. 12,817,079 87.83$ 15,364,367 0.8x 0.6x 11.7x 8.1x

Median 5,925,299$ 66.42$ 13,240,144$ 2.1x 1.9x 22.7x 30.8x

International Energy Services

Electricité de France S.A. 39,846,623$ 12.62$ 82,966,169$ 1.0x 0.9x 4.0x 3.8x

Enel SpA 78,333,384 7.71$ 130,819,842 1.6x 1.5x 6.1x 5.9x

ENGIE SA 31,770,481 13.15$ 58,973,466 0.8x 0.9x 5.0x 4.9x

E.ON SE 31,936,336 12.25$ 64,636,853 0.9x 0.9x 7.3x 7.3x

Veolia Environnement S.A. 17,395,280 30.67$ 29,877,538 0.9x 0.9x 6.2x 6.0x

Median 31,936,336$ 12.62$ 64,636,853$ 0.9x 0.9x 6.1x 5.9x

Professional Services

Bureau Veritas SA 13,983,753$ 30.96$ 13,575,271$ 2.4x 2.2x 11.3x 10.7x

CBRE Group, Inc. 32,036,599 97.36$ 35,126,844 1.3x 1.2x 13.7x 13.0x

ICF International, Inc. 1,683,986 89.29$ 2,258,631 1.4x 1.4x 14.7x 13.8x

Jones Lang LaSalle Incorporated 12,578,577 248.09$ 15,134,505 1.5x 1.4x 12.2x 11.5x

Leidos Holdings, Inc. 13,608,661 96.13$ 19,308,774 1.4x 1.3x 13.0x 12.3x

Median 13,608,661$ 96.13$ 15,134,505$ 1.4x 1.4x 13.0x 12.3x

Utilities / IPPS

Consolidated Edison, Inc. 25,651,986$ 72.59$ 50,528,539$ 3.9x 3.8x 10.6x 9.8x

Duke Energy Corporation 75,079,656 97.59$ 147,660,324 5.8x 5.5x 12.9x 11.9x

Edison International 21,062,225 55.47$ 51,914,738 3.7x 3.5x 10.0x 9.1x

National Grid plc 43,199,571 11.94$ 61,931,574 3.1x 2.9x 8.5x 7.5x

NextEra Energy, Inc. 154,037,160 78.52$ 219,365,376 11.4x 10.2x 19.7x 17.0x

NRG Energy, Inc. 9,994,240 40.83$ 18,880,494 1.1x 1.3x 8.5x 7.7x

Median 34,425,778$ 64.03$ 56,923,156$ 3.8x 3.6x 10.3x 9.5x

Total Median 23,357,105$ 68.08$ 44,174,838$ 2.4x 2.2x 13.0x 12.1x

7

› Electric Submeters

› Demand Response / Smart Grid

› Billing & Workforce Management

› Distribution Automation

› Microgrids / Asset Management

› EV charging

› ESCOs

› Utility Program Management

› Building Optimization

› Energy Management Systems

› LED and Smart Lighting Systems

› Energy Storage

2017

Harris Williams Energy Management Overview

Drew SpitzerManaging Director

aspitzer@harriswilliams.comOffice: 804-915-0174

Luke SempleManaging Director

lsemple@harriswilliams.comOffice: 804-915-0158

Harris Williams Energy Management Sector Focus Areas Harris Williams Energy Management Contacts

Select Recent Harris Williams Energy Management Transactions

has received a minorityinvestment from

8

BOSTONOne International PlaceSuite 2620Boston, MA 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, OH 44114Phone: +1 (216) 689-2400

MINNEAPOLIS222 South 9th StreetSuite 3350Minneapolis, MN 55402Phone: +1 (612) 359-2700

RICHMOND (HEADQUARTERS)1001 Haxall Point9th FloorRichmond, VA 23219Phone: +1 (804) 648-0072

SAN FRANCISCOOne Market Plaza11th FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

WASHINGTON, D.C. 800 17th St. NW2nd FloorWashington, DC 20006Phone: +1 (202)-207-2300

FRANKFURTBockenheimer Landstrasse 33-3560325 Frankfurt, GermanyPhone: +49 069 3650638 00

LONDON25 Savile Row4th FloorLondon W1S 2ER, EnglandPhone: +44 (0) 20 7518 8900

UNITED STATES EUROPE

Healthcare & Life Sciences

Energy, Power & Infrastructure

Industrials

Aerospace, Defense & Government Services

Building Products & Materials

Business Services

Consumer

Specialty Distribution

Technology

Transportation & Logistics

Our Firm

Industry Group Expertise Consistent Recognition for Quality

Harris Williams Office Locations

Harris Williams has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.

9

Disclosures and Disclaimers

Investment banking services are provided by Harris Williams LLC (“Harris Williams”). Harris Williams is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law, with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

The information and views contained in this presentation have been prepared in part by Harris Williams. This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate any investment or potential transaction. This presentation is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. Any and all information, including estimates, projections, and other forward-looking statements, presented in this document may involve various assumptions and significant elements of subjective judgment and analysis which may or may not be correct. Harris Williams has not independently verified, and neither Harris Williams nor any other person will independently verify, any of the information, estimates, projections, or forward-looking statements contained herein or the assumptions on which they are based. The information contained in this document is made as of the date hereof unless stated otherwise. Harris Williams does not expect to update or otherwise revise this document nor provide any additional information, nor correct any inaccuracies herein which may become apparent.

The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation or warranty as to the accuracy or completeness of such information, and information contained herein that is based on material prepared by others may involve significant elements of subjective judgment and analysis which may or may not be correct. Opinions, estimates, and projections contained herein constitute Harris Williams’ judgment and are subject to change without notice.

This presentation is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular transaction, nor shall this presentation form the basis of any contract. It does not constitute and should not be construed as an endorsement or recommendation of any entity’s products or services.

No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.