EY Cleantech Industry Performance
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EY Cleantech Industry Performance

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EY global cleantech public pure-play (PPP) company analysis. ...

EY global cleantech public pure-play (PPP) company analysis.

The PPP universe comprises the public companies in the Bloomberg New Energy Finance (BNEF) database classified as deriving 50% to 100% of their total value from clean energy as of April 2013. The financial results of companies that report in non-US currencies were converted to US dollars using theexchange rate that was obtained at the end of their respective fiscal years.

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EY Cleantech Industry Performance EY Cleantech Industry Performance Presentation Transcript

  • Cleantech industry performance Global cleantech public pure-play (PPP) company analysis 08 August 2013
  • Cleantech PPP universe grows despite a challenging year Profile of current population IPO/M&A US$6.6b, 18 US$170b market cap 424 companies New pure-play cleantech focus US$11.3b, 50 US$149b revenues 512,504 employees 2013 list additions US$30.4b*, 68 Market cap by sector/number of companies 2013 PPP universe 2012 PPP universe US$144b market cap 419 companies 2013 list removals US$4.1b, 63 US$170b market cap 424 companies Net US$26b market cap gain Net 5 new PPP companies US$35b/50 US$31b/53 Energy efficiency Wind 48 Asia Pacific Private/ Restructuring US$0.0, 3 8 38 North America EMEA Central and South America Top 10 markets US 70 China No longer pure-play US$3.2b, 20 M&A US$0.2b, 5 US$26b/32 RE generation Market cap by region ($b) 76 Out of biz US$0.8b, 35 US$29b/105 Solar 64 Germany 39 Canada 37 Australia Reason for addition/removal market cap, number of companies 26 UK 23 India Taiwan S. Korea Hong Kong Number of companies 20 15 15 14 *Includes US$12.4b of increase as a result of change in market cap of companies retained from last year; total may not match due to rounding. The PPP universe comprises the public companies in the Bloomberg New Energy Finance (BNEF) database, classified as deriving 50% to 100% of their total value from clean energy as of April 2013. Page 2 Cleantech industry performance: global public pure-play analysis
  • Methodology The PPP universe comprises the public companies in the Bloomberg New Energy Finance (BNEF) database classified as deriving 50% to 100% of their total value from clean energy as of April 2013. Public investment funds and acquisition vehicles are excluded. Companies participating in carbon markets activities are also excluded. Company revenue and market cap data is drawn from their fiscal year 2012 annual reports and S&P Capital IQ. Market cap figures were recorded as on 29 April 2013. The financial results of companies that report in non-US currencies were converted to US dollars using the exchange rate that was obtained (via oanda.com) at the end of their respective fiscal years. Page 3 Cleantech industry performance: global public pure-play analysis View slide
  • Global cleantech PPP company benchmark Despite a challenging year, market capitalization increases by 18% China and US consolidate their leadership Global total 419 Global (2012) 424 Global (2013) 2012 $148 $144 $149 $170 2013 73 55 41 Canada 28 Australia 24 United Kingdom 17 India 12 Taiwan 9 South Korea 11 Hong Kong # Companies Market $35.2 $42.1 China 42 Germany 70 $25.7 $27.2 US $5.8 $17 $4.5 $6.1 64 39 37 Germany Canada $6.1 $15.2 $2.6 $2.7 $1.0 $1.4 26 Australia $0.9 $1.3 $0.4 $1.1 23 United Kingdom $0.4 $2.1 $4.6 $1.9 20 India $3.6 $4.0 15 Taiwan $2.0 $2.4 $6.2 $8.9 15 South Korea 14 Hong Kong Revenues (US$b) Market cap (US$b) Cleantech industry performance: global public pure-play analysis $36.8 $34.9 China Note: solar and wind encompasses technology companies; renewable energy generation includes project developers. Source: EY analysis Page 4 $27.2 US $4.6 $1.3 $3.0 $3.7 $2.4 $2.8 $6.2 $10.5 $48.1 View slide
  • Global cleantech PPP company benchmark by sector Energy efficiency takes the lead in market cap Solar retains leadership in revenues and in number of companies 2012 2013 107 Solar $25.2 54 Solar 44 Energy efficiency products $20.0 $27.7 38 Biofuels $10.5 36 Energy storage 50 Energy efficiency products $22.8 $4.0 $4.8 28 RE generation 20 Geothermal 15 Power/efficiency svs $9.0 33 Biomass/waste $23.6 $1.8 $5.0 $2.3 $2.0 $13.1 21 Geothermal 18 Power/efficiency svs Revenues (US$b) Market cap (US$b) Cleantech industry performance: global public pure-play analysis $26.0 $2.4 $3.9 $4.7 $6.8 32 RE generation Note: solar and wind encompasses technology companies; renewable energy generation includes project developers. Source: EY analysis Page 5 $18.9 41 Biofuels 35 Energy storage $42.5 $35.3 $30.8 Wind $2.5 $4.5 36 Biomass/waste $28.8 53 $31.0 $30.3 Wind # Companies Sector 105 $50.6 $11.1 $2.1 $5.3 $2.6 $3.3 $25.5 $34.6
  • 2012 cleantech PPP IPOs by market and segment China saw the most IPOs, with the total amount raised close to US$900m Biofuels accounted for most IPOs; solar raised more than one-third of the total IPO proceeds By market 5 By segment China 4 US 2 Poland 1 Thailand 1 Germany 1 United Kingdom $208.1 $249.6 Solar 3 Biomass & waste $462.8 $18.9 $103.4 2 RE generation $345.7 $17.2 2 Small hydro $10.6 $1.0 $13.1 1 Energy efficiency $3.4 1 Canada Page 6 Biofuels 3 $1.3 1 Italy # Companies Market/Sector 4 $912.7 1 Power/efficiency services Amount raised US$m Cleantech industry performance: global public pure-play analysis $157.0 $10.6
  • Cleantech PPP regional analysis The market cap of companies in all the regions has bounced back from the lows seen last year The number of companies in cleantech has increased in Asia Pacific, mirroring the growth of renewable energy in this region Asia Pacific EMEA 300 $66.7 $80 $75.7 $85.2 250 200 $36.2 $60 $50.7 150 152 177 2012 2013 $47.5 100 127 147 135 117 114 108 2011 2012 2013 2011 2012 2013 $0 No. of companies 150 $33.3 $38.1 2011 $20 Central/South America $101.2 $100 $40 North America $6.0 5 $7.3 6 $8.4 4 2011 2012 No. of companies Market Cap (US$b) $120 2013 50 0 Market cap Revenue growth was strongest in Central and South America and was marginally negative in EMEA and Asia Pacific Employee headcount increased by 24% y-o-y in Asia Pacific while remaining virtually stagnant in other regions EMEA Revenues (US$b) $40 $52.2 220 $56.1 236 $54.3 350 300 $49.4 156 2012 2013 200 $24.7 105 106 $0 2011 250 $49.3 292 $20 2011 2012 2013 Employee headcount Page 7 Central/South America $78.4 $80 $60 North America $30.2 $31.1 150 $10.9 69 72 72 2011 2012 2013 Revenues Cleantech industry performance: global public pure-play analysis $12.5 $14.0 51 44 43 2011 2012 2013 100 50 0 Employees (‘000s) Asia Pacific $100
  • Cleantech PPP business segment analysis Energy efficiency products registered the strongest growth both in terms of market cap and the number of companies Solar, wind and renewable energy generation sectors saw stability after significant erosion in market cap in the last two years Energy efficiency products $60 Solar 200 150 $42.4 $30.3 $34.6 $27.7 42 44 50 52 54 53 2011 2012 2013 2011 2012 2013 $25.2 $30.8 $20 $0 Biofuels $68.8 $29.3 $30 $10 RE generation $47.6 $50 $40 Wind 107 102 $28.8 $23.6 100 $25.5 105 $10.5 $10.5 $13.1 23 2011 2012 No. of companies 2013 28 32 33 38 41 2011 2012 2013 2011 2012 50 No. of companies Market Cap (US$b) $70 2013 0 Market cap Revenue growth was the strongest in wind and biofuel sectors during the last year; solar sector revenues continued to decline China saw 85% of solar headcount growth probably due to low level of production automation compared to developed markets Energy efficiency products Wind Solar $30 $20 $10 $19.9 $31.0 $18.9 203 $16.6 $22.8 $26.0 66 82 85 82 74 2013 2011 2012 2013 2011 2012 2013 $11.1 25 30 52 50 51 2011 2012 2013 2011 2012 2013 Revenues Cleantech industry performance: global public pure-play analysis 200 150 100 $9.0 96 2012 179 $10.5 23 161 Employee headcount Page 8 250 $35.3 2011 $0 300 $42.5 $57.2 $35.1 $14.1 Biofuels $50.6 $50 $40 RE generation 50 0 Employees (‘000s) Revenues (US$b) $60
  • US cleantech PPP snapshot Number of companies and market capitalization (US$b) Solar Market Cap (US$b) $20 $10 $4.8 $6.1 11 10 17 15 11 $7.8 $3.2 14 2011 2012 2013 8 $4.2 10 $6.3 $3.3 8 Revenues for the biofuels segment have grown 98% since 2011, in proportion to the 100% increase (7 to 14) in the number of companies in this segment. 14 8 20 $5.4 $1.2 $0.4 10 8 0 2011 2012 2013 9 14 2011 2012 2013 Market cap Energy efficiency products Solar $10 $7.8 $8 $6 $6.8 $6.8 25 25 Biofuels $8.1 Energy storage 40 $7.0 30 $5.4 $3.7 $4 $2 $6.8 Clean transport $3.6 20 $2.4 15 14 17 14 $0.7 3 $0 2011 2012 2013 2011 2012 2013 $0.8 $0.9 5 3 2011 2012 2013 Employee headcount 2 2 14 3 2011 2012 2013 $0.6 $0.5 10 4 4 2011 2012 2013 Revenues Pure-play cleantech IPOs Company Segment Stock exchange Pricing date Total deal value (US$m) Market cap (US$m) (IPO date) Market cap (US$m) (29 April 2013) Ceres Inc. Biofuels NASDAQ GM 22 Feb 2012 74.8 270.0 59.5 Renewable Energy Group Inc. Biofuels NASDAQ GS 18 Jan 2012 72.0 140.7 304.4 Enphase Energy Inc. Solar NASDAQ GS 29 Mar 2012 61.9 288.4 298.9 Methes Energies International Ltd. Page 9 $2.1 $2.9 Employee headcount and revenues (US$b) Revenues (US$b) While gains in energy efficiency, solar and clean transport sectors helped drive an overall 35% y-o-y market cap growth, energy storage continues to lose ground with market cap falling a further 62% y-o-y (92% since 2011). 7 2011 2012 2013 No. of companies IPOs accounted for 50% (4/8) additions to the US pure-play cleantech companies. 40 30 2011 2012 2013 Key points Energy storage $9.8 $5 $0 Biofuels $19.0 $14.0 $15 Clean transport No. of companies Energy efficiency products Market cap: US$36.8b Revenue: US$27.2b No. of companies: 70 Headcount: 58,866 Net income/(loss): (US$2.2b) Debt: US$9.1b Biofuels NASDAQ GS 25 Nov 2012 2.8 28.8 25.9 Cleantech industry performance: global public pure-play analysis Change in market cap (%) 78 116 4 10 0 Employees (‘000s) Country profile
  • China cleantech PPP snapshot Number of companies and market capitalization (US$b) Market Cap (US$b) $25 $20 $21.3 $24.9 $12.1 $10 $5 13 12 2012 2013 19 12 2011 New RE generation companies in China propelled growth in the segment— with market cap growth of 773% and revenue growth of 415%. 40 24 $12.0 $8.8 27 7 $0 2011 2012 2013 2011 20 $7.8 $7.3 9 10 $0.0 $0.3 2012 2013 2011 1 2012 $2.9 10 3 2013 0 Market cap Employee headcount and revenues (US$b) Wind Solar $20 Revenues (US$b) Market cap has bounced back from the low of last year, with RE generation, power and efficiency management services and wind more than making up for the marginal declines in solar and energy efficiency products. RE generation 30 No. of companies With 16% growth in the total number of companies, China is closing the gap with the US. $15 $16.3 $12.4 $9.5 $19.6 Energy efficiency products 200 $16.7 150 $10 $5 23 15 2011 $0 RE generation $9.8 2012 71 39 2013 2011 116 2012 $2.2 $0.9 2013 100 $4.5 137 8 2011 Employee headcount 24 2012 $0.2 2 18 2013 2011 2012 $1.9 10 50 0 2013 Revenues Pure-play cleantech IPOs Company Segment Stock exchange Huadian Fuxin Energy Corp. RE generation Solar Energy efficiency Solar HKSE Total deal Market cap Market cap value (US$m) (US$m) (US$m) (IPO date) (29 April 2013) 28 Jun 2012 345.1 1,672.2 1,993.1 SHSE SZSE 21 May 2012 339.9 1 Jun 2012 157.0 1267.9 625.0 941.4 363.4 SZSE 11 May 2012 61.0 289.0 177.5 HKSE 6 Jul 2012 46.9 85.0 Jiangsu Sunrain Solar Energy Co Ltd. HC SemiTek Corp. Shenzhen Jiawei Photovoltaic Lighting Co. Ltd. Haitian Hydropower International Ltd. Small hydro Page 10 Energy efficiency products $20.7 $20.2 $15 Key points Employee headcount saw a growth of 29% y-o-y growth, with wind and RE generation sectors being the main sources of growth. Solar No. of companies Wind Market cap: US$48.1b Revenue: US$34.9b No. of companies: 64 Headcount: 214,704 Net income/(loss): (US$2.9b) Debt: US$53.2b Pricing date 9.7 Cleantech industry performance: global public pure-play analysis Change in market cap (%) 19 26 42 39 81 Employees (‘000s) Country profile
  • Germany cleantech PPP snapshot Number of companies and market capitalization (US$b) Market Cap (US$b) $10 Energy efficiency products $2 $0 30 $3.0 $1.8 $2.3 $0.3 2 1 2012 20 3 2013 2011 22 2012 20 $1.1 $1.4 16 5 2011 2013 No. of companies The number of German companies in the PPP universe continues to fall, with the solar sector accounting for 27% (6/22) of eliminations. Overall market cap growth of 5% belies the fact that one new entrant this year accounted for 24.4% of total market cap. Excluding this company, Germany registered a 20.4% market cap decline. The slump in solar is further evidenced by the 25% decline since 2011 (10.5% yo-y) in the overall revenues. The solar segment, which makes up for more than 50% of the overall revenues, fell 23% this year. $1.3 $1.3 6 2013 $0.6 $0.9 4 3 5 2011 2012 10 2013 5 2012 $2.2 0 Market cap Employee headcount and revenues (US$b) Revenues (US$b) Key points Wind 40 $6 $4 Biofuels $8.5 $8 2011 Page 11 Solar No. of companies Market cap: US$6.1b Revenue: US$15.2b No. of companies: 39 Headcount: 29,848 Net income/(loss): (US$2.2b) Debt: US$5.2b $14 $12 $10 $8 $6 $4 $2 $0 Energy efficiency products Solar Biofuels Wind 40 $13.0 $10.6 30 $8.1 $3.7 $2.4 10 2011 $0.7 3 2012 $1.0 17 20 $3.0 $1.3 $1.4 18 1 2 2 5 2011 2012 2013 2011 4 2013 20 $3.5 2011 2012 2013 Employee headcount $1.6 3 3 2012 10 2013 0 Revenues Pure-play cleantech IPOs Company Segment Stock exchange Pricing date KTG Energie AG Biomass and waste Deutsche B rse — Official Market 29 Jun 2012 Total deal value (US$m) 17.2 Cleantech industry performance: global public pure-play analysis Market cap (US$m) (IPO date) 91.3 Market cap (US$m) (29 April 2013) 88.8 Change in market cap (%) 3 Employees (‘000s) Country profile
  • EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the 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 ey.com. How EY’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. EY’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. © 2013 EYGM Limited. All Rights Reserved. EYG no. FW0024 ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. www.ey.com