1 Sustainable Future –
SUSTAINABLE FUTURE CERTIFICATE 2 Investment Case ➢ Climate change , a growing world population and an increasing world’s electrification have started to spark major changes in our living habits and the adoption of sustainable behaviors ➢ Sustainable development is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” ➢ Our Sustainable Future theme will capture the growth (estimated above 20% on average) in all industries benefiting from the sustainable development of our planet ➢ We invest in pure players in renewable energies, energy storage, smart transportation, water & wastewater treatment, the digitalization of energy systems and integration of smart technologies Details ✓ Issuing bank: JP Morgan, Calculation agent: JP Morgan ✓ ISIN: XS1668108175 (USD), XS1668108506 (EUR) ✓ Currency: USD, EUR ✓ Fees: 1.5% management fee + 15% performance fee, high water mark ✓ Bloomberg tickers: JMLNARSF (USD), JMLNARSE (EUR)
SUSTAINABLE FUTURE CERTIFICATE 3 Climate Change Is A Fact… …and it’s affecting our lives in many different ways
SUSTAINABLE FUTURE CERTIFICATE 4 To Survive, Human Beings Are Reacting To That Change Adaptation & Mitigation
SUSTAINABLE FUTURE CERTIFICATE 5 Technology is the Answer! Smart City Energy Storage Fossil Fuel Scarcity? Hyperloop Growing Water Needs? Traffic Congestion? Hydrogen Train Extreme Pollution? Increasing Electricity Demand? Micro-Irrigation Food Shortage? Algea Biofuel
SUSTAINABLE FUTURE CERTIFICATE 6 Smart Agriculture Solar & Wind Smart Grid Water & Wastewater Energy Efficiency Treatment Smart Transportation Smart Cities & Buildings Energy Storage
SUSTAINABLE FUTURE CERTIFICATE 7 A $3.6 Trillion Market By 2024 AtonRâ Sustainable Future Drivers CAGR 2018-2024 Stationary Energy Storage ($10B) 38% Declining prices for Renewables and Storage Smart Buildings ($62B) 34% General environmental concerns Rising Electricity demand Solar Energy ($633B) 24% Depleting natural resources Smart Transportation ($285B) 23% Growing Population 22% Electric Vehicles ($464B) Li-Ion Batteries ($80B) 17% Risks Smart Agriculture ($21B) 14% Lower Fossil fuel prices Wind Energy ($170B) 13% Fiscal Austerity 4.3% Energy Efficient Devices ($1T) 12% 22.3% Unsupportive Regulation Hydrogen ($206B) 6% Water Treatment ($664B) 4% Source: Marketresearch, Zion Market Research, Allied Market Research, Grand View Research, Transparency Market Research, Global Market Insights, Research and Markets, Hexa Research
SUSTAINABLE FUTURE CERTIFICATE 8 Energy & History ➢ Our society has historically not been relying on fossil fuels FUTURE PAST When? 200 years Fossil Energy Used is Clean and Renewable Sustainable Energy Era Fuels Era ? ~1800 AD What shape will have that transition? ➢ The renewable energy transition is already on its way
SUSTAINABLE FUTURE CERTIFICATE 9 Question : How much of total world electricity consumed is produced by wind and Solar PV combined? A 5% B 15% 25% C 35% D
SUSTAINABLE FUTURE CERTIFICATE 10 Power Generation: A Clear Shift Towards Solar and Wind Power Generation Mix NEO 2018 power generation mix Historical world power generation mix 100% Other 90% Solar 80% 70% Nuclear 64% renewables by 2050 Wind 60% & 48% solar and wind Oil 50% Hydro Gas 40% 30% Coal 20% 29% fossil fuels by 10% 2050 0% 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: Bloomberg NEF; IEA
SUSTAINABLE FUTURE CERTIFICATE 11 Solar Installations Taking Off ➢ If we continue to deploy PV panels at the same pace, PV power capacity will exceed today’s total power needs (incl. coal, gas, oil, etc.) within 10 years! PV - Installed Capacity (MW) 10'000'000 9'000'000 CAGR 18-29: 30% Total Capacity 8'000'000 (2017): 7'000'000 7’343’000 ! 6'000'000 5'000'000 The take-off is now! 4'000'000 3'000'000 2'000'000 1'000'000 0 Source: IEA
SUSTAINABLE FUTURE CERTIFICATE 12 Solar: Many Different Technologies And Applications
SUSTAINABLE FUTURE CERTIFICATE 13 Solar: Innovation Sparks Cost And Yield Efficiencies Solar Cell Efficiencies Mimicking Moore’s Law ➢ Large variety of PV cells type : crystalline, multijunction, ➢ While efficiency grows, costs continue to decline thin-film, organic, etc. ➢ Cumulative production x 2 → Price -24% ➢ Growing cell efficiencies for all types Source: Fraunhofer ISE
SUSTAINABLE FUTURE CERTIFICATE 14 Solar cells into roof tiles ✓ Improved look compared to traditional solar panels ✓ Improved overall cost of roof + PV modules Solar cells into building’s facades ✓ Maximize exploitation of solar energy on buildings ✓ Transparent cells perfectly integrates into architecture
SUSTAINABLE FUTURE CERTIFICATE 15 Electric Grid Needs A Major Upgrade ➢ The traditional grid is facing a multitude of challenges that can be outlined in the following categories: ✓ Inflexibility ✓ Network Congestion ✓ Lack Of Transparency ✓ Infrastructural Problems
SUSTAINABLE FUTURE CERTIFICATE 16 Smart Grid: Flexibility, Efficiency, Reliability A network of integrated microgrids By 2040, 11B smart appliances are expected to be Provide 185 GW of system flexibility and save deployed in the smart grid worldwide $270B in electricity infrastructure. Generators: energy from small generators and solar panels Storage: energy generated at off-peak times can reduce overall demand on the grid could be stored in batteries for later use Processors: execute special Demand management: use protection can be shift to off-peak schemes in times to save money Sensors: detect disturbances and can microseconds signal for areas to be isolated Smart appliances: can shut off in response to frequency fluctuations
SUSTAINABLE FUTURE CERTIFICATE 17 Smart Grid: A Wide Array Of Technologies Energy Management Phasor Distribution Grid Systems Measurement Units Management Advanced Metering Transmission Renewable Infrastructure Enhancement Generation Smart Appliances Integration
SUSTAINABLE FUTURE CERTIFICATE 18 Question : How many cigarettes are we smoking per year by breathing Geneva air? A 0.7 B 7 C 70 D 700
SUSTAINABLE FUTURE CERTIFICATE 19 Air Pollution: Affecting Our Everyday Life Air Pollution Location Equivalent in Cigarettes per Day Shenyang (worst 63 recorded) Hadan (avg.) 5.5 China (avg.) 2.4 Geneva (avg.) 1.9 Europe (avg.) 1.6 USA (avg.) 0.4 1 cigarette = PM 2.5 of 22 μ g/m 3 Source: Berkeley Earth
SUSTAINABLE FUTURE CERTIFICATE 20 Air Pollution: Affecting Our Everyday Life Causes Solutions Burning of Fossil Fuel Green Mobility Agricultural Activities Energy Savings Exhaust from Factories Reduce, Reuse, Recycle Mining Operations Renewable Energy Indoor Polluting Products Energy Efficiency
SUSTAINABLE FUTURE CERTIFICATE 21 Smart Buildings To Improve Comfort, Safety And Energy Efficiency Air Quality Control Access Control Smart Lighting Smart Thermostat Fire Safety Remote Security Intelligent HVAC Energy Management
SUSTAINABLE FUTURE CERTIFICATE 22 Smart Transportation: The Rise Of Electric, Smart And Shared Vehicles Smart Parking Smart Traffic Lights Self-Driving
SUSTAINABLE FUTURE CERTIFICATE 23 Smart Transportation: EVs In The Spotlight ➢ Electric Vehicle market is projected to benefit from a significant growth in the coming years (CAGR of 22.5% ). Country EV Policy Announcements China 5mio EV by 2020 , 20% EV sales by 2025 France 100% EV by 2040 United Kingdom 100% EV by 2040 India 100% EV sales by 2030 Thailand 1.2 mio EV stock by 2030 Poland 1 mio EV Stock by 2025 New York City 20% EV sales by 2025 ➢ Several industries will be affected: EV batteries Charging stations Electricity supply Electrical Grid
SUSTAINABLE FUTURE CERTIFICATE 24 Smart Transportation: EV Batteries Evolution Trend Objectives ➢ Reduction of Cobalt Content ( ~ 20% to ~ 6%) ➢ Reduce cost ➢ Improvement of anode graphite structure ➢ Increase energy density (addition of silicon) to improve charging rates ➢ Improve charging rates ➢ Development of gel-like electrolyte material ➢ Improve battery safety Sources: IEA analysis based on Meeus (2018); Nationale Plattform Elektromobilitat (2016); NEDO (2018); Howell (2016); Pillot (2017).
SUSTAINABLE FUTURE CERTIFICATE 25 Smart Transportation: EVs To Turn Into Home Batteries EVs act as batteries with bidirectional flow of energy from and to the grid ✓ Peak load Leveling ✓ Emergency Backup ✓ Frequency Regulation ✓ Renewable Energy Storage ➢ At any instant, 95% of all cars are parked and unused ➢ Car batteries can be used to store electrical energy and give it back to the grid when needed ➢ V2G revenue can offset an average 10% of total cost of EV ownership Source: Cenex
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