1. CVC Sustainable Investments November 2007 Investing in Environmental Sustainability

2. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Contents 1.Introduction to CVC 2.Drivers of global carbon and environmental investing opportunities 3.Global response to the crisis 4.Opportunities in Australia 5.Opportunities in Developing Countries 6.Conclusion 2

3. Source – UNEP Global Trends in Sustainable Energy Investment 2007 3 About CVC Environmental Investing  Part of the CVC Group – 5 funds, 20 year track record  Two funds specialising in environmental investing  $50m of “cleantech” assets  Leadership position – environmental investing  Invested in several leading environmental technologies

4. 4 Global Issues – Multiple Drivers Climate Change Resource Shortages Urbanisation Resource Security Technology Regulation and Policy

5. 5 Investment – a Significant Part of the Solution  Addressing these problems requires the creation of a new “clean” infrastructure  This provides great opportunities for the companies developing the new technologies and services that make up this new “clean” alternative SectorsBusinesses / Technologies Clean energy  wind, hydro, geothermal, tidal, biomass, solar, low emission fuels Biofuels  ethanol, biodiesel, plastics to diesel Water  Waste water treatment, black and grey water recycling Waste  recycling and waste reduction technologies Sustainable agriculture  organic farming and composting, resource and yield efficiency Advanced materials  biodegradable materials and plastic substitutes

6. Investment review methodology Positive ScreenNegative ScreenCommercial Screen "Clean" TechnologyDestruction of native forestsManagement team Renewable Energy and Energy Efficiency Tobacco cultivation and tobacco-related products Industry and product Waste Management Systems and Technologies Producing, distributing or selling alcohol Market size and structure Materials DevelopmentGambling Competitive advantage and strategic differentiation Sustainable / Cleantech Business Models Manufacture of cosmetics involving animal testing. Risk assessment Other Environmentally Beneficial Technology Manufacture of nuclear or chemical weapons Portfolio fit and co- investment

7. Source – UNEP Global Trends in Sustainable Energy Investment 2007 7 The Response  US$100 bn new clean energy investment in 2006  Out-performance of clean companies internationally  Over 1000 listed companies dedicated to environmental solutions  Over 100 dedicated ASX listed companies – brokers initiating coverage Global Investment in Sustainable Energy

8. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Investment by Technology 8 Global Investment in Sustainable Energy – by Technology

9. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Investment by Type and Region 9

10. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Current Energy Cost Structure in Australia 10

11. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Australian Emissions Trading System  Bi-partisan support for emissions trading scheme  Designed to put an effective price on carbon emissions  Structure – “Cap and Trade” – effective price on carbon  Commences in 2012  Renewable and low emission technology – approximately 30,000 GwH per year - approx. 15% of installed capacity  $20 - $30 billion of new investment required 11

12. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Opportunities for investors  Renewable energy developers  Energy efficiency and abatement product providers  Carbon trading and consulting  Investment into developing countries 12

13. Source – UNEP Global Trends in Sustainable Energy Investment 2007 Summary  Now a major, mainstream asset class globally  Mature technology assets are becoming infrastructure commodities  Significant opportunity in developing countries  Investment still policy driven - Australia lagging  Implementation of emissions trading scheme should see significant growth in Australia 13

14. Source – UNEP Global Trends in Sustainable Energy Investment 2007 14 Contacts CVC SUSTAINABLE INVESTMENTS Christian Jensen +61 2 9087 8000 cjensen@cvc.com.au