Yellow&Blue Investment Management B.V.

EU Environmental Technology Verification3rd Stakeholder Forum

28 September 2017

Founded by Nuon

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• Manager independent venture capital firm founded in 2008 based in the Netherlands

• €40 million cornerstone investment by Nuon (part of Vattenfall group)

• Development stage companies with a post-prototype technology in clean energy

• Invested in 8 European companies after reviewing approx. 1200 investment leads

• Portfolio in areas of smart grid and energy efficiency

Introduction

Systems for substation automation in the medium-voltage grid

Smart grid

Application platform for utility smart metering and home control

Smart grid

Energy efficiency

ORC systems that produce electricity from low value heat

Smart grid

Demand response as a service

SOLD in February 2014 to EnerNOC Inc. (NASDAQ: ENOC)

Energy storage

Wind

Monitoring and yield enhancement of wind farms

Biomass

Platform torrefaction technology to upgrade biomass into biocoal

Electric and hybrid systems SOLD in October 2014 to

management

Overview

Portfolio

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Technologies of portfolio companies (selection)

• Locamation provides automation throughout the grid:

• ROMO is able to measure wind at the front of a turbine which significantly improve energy output:

• Cuculus‘ scalable solution connects the smart metering value chain and avoids a vendor lock-in at customers:

• Topell has become a market leader on torrefaction technology which converts biomass into a feedstock for easy gasification and co-firing:

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Investment process – from opportunity to portfolio company

Origination

New request

Active

Project

Portfolio

Exit

>500 opportunities

100 - 200 initial analysis

5 - 10 due diligence

IC approval for Due Diligence

50 -100 in-depth evaluation

IC approval for Investment

Average deal flow per year

2 - 4 investments

Origination through proprietary network and proactive scouting

Result: Database entry

Initial screening based on investment scope and management judgment

Result: Factsheet

Financial, technical, commercial and legal due diligence. Assistance external experts

Result: Investment Proposal

Meeting with management, in-depth analysis and indicative offer

Result: Project Proposal

Agreed on terms and deal closedActive venture management

Result: Investment Memorandum

Process description

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Technical aspects form one part of Due Diligence investigations and term sheet negotiations

Legal

Financial

Technical

Commercial

Management

Term Sheet Items• Type of share• Valuation and milestones• Dividend rights • Liquidation preference• Redemption • Conversion rights • Anti-dilution (or price protection) • Pre-emption rights on new share issues • Right of first refusal, drag and tag along rights • Representations and warranties • Voting rights • Board of Directors/Board Observer• Information rights• Exit• Registration rights• Confidentiality, IP Management• Non-compete Agreements • Employee share option plan • Transaction and monitoring fees• Confidentiality and exclusivity• Enforceability• Conditions precedent

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Main Technical DD items for investors

1. Verification of technical claim • Regarding Product performance

2. Robustness and quality of Product• Verification of claims on operating hours, maintenance costs, lifespan

3. Difficulty to copy• Patent protection• How unique is it

4. Technological Risk Matrix• Identify (severe) technological risks of the product in terms of technical feasibility

(including safety) 5. Production Process

• Production ramp-up and manufacturing bottlenecks overview to support optimization of scale-up, with respect to outsourcing or in-house development

6. User base experience• Use case and interviews with current users to verify user benefits

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To what extent do current EU ETV SoV’s (Energy field) compare with the six investors’ Due Diligence items?

1 2 3 4 5 6a 10 5 0 0 0 0b 10 0 0 0 0 0c 8 0 0 0 0 0d 10 2 0 0 0 0

DD itemTe

chno

logy

SoV: Statement of VerificationKey: 0 - low and 10 - fully

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What is the potential coverage of DD items by the EU ETV Programme?

1. Verification of technical claim - already included• Regarding Product performance

2. Robustness and quality of Product - 100% possible• Verification of claims on operating hours, maintenance costs, lifespan

3. Difficulty to copy – 100% possible• Patent protection• How unique is it

4. Technological Risk Matrix – 50 – 100% possible• Identify (severe) technological risks of the product in terms of technical feasibility

(including safety) Production Process5. Production Process – 100% possible

• Production ramp-up and manufacturing bottlenecks overview to support optimization of scale-up, with respect to outsourcing or in-house development

6. User base experience – 30-50%• Interviews with current users

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Albert Fischer – Managing Director Twitter @albertfischer

Yellow&Blue Clean Investment ManagementThe Netherlands

Contact details