CleanTech: an Investor

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CleanTech an Investors View

• J. Christopher MoranVP, GM Applied Ventures LLC
• Monte Jade MJAA Cleantech Forum May 16th, 2007

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But First A word from my Sponsor
ABOUT US Applied Ventures, LLC is the venture
capital fund of Applied Materials, Inc.,
(NASDAQ AMAT Applied Ventures invests in
high-growth, early stage technology companies.
Our mission is to profitably invest in companies
that provide a window on technologies that
advance the semiconductor and related industries.
The fund focuses on companies pursuing
technologies and markets that provide a natural
extension to Applied Materials' core business in
addition to innovations that stimulate the growth
of applications for semiconductors, displays and
related products and services. INVESTMENT
FOCUS Applied Ventures invests in companies that
drive change in industries that may be relevant
to Applied Materials. We partner with talented
teams to create value through industry access,
engineering expertise, insight, contacts and
partnership. As a result of our involvement,
Applied Materials, Inc. may be partner with a
portfolio company to commercialize its products.
FUND CHARACTERISTICS - Up to 25M annually for
new investments- Up to additional 25M annually
for follow-on investments - Invest between
250,000 and 3 million per round - Co-Invest
alongside industry-leading venture capital firms
and other corporate-strategic investors -
Invest globally - Board observer rights on a
case-by-case basis

• INVESTMENT INTERESTS
• Metrology and inspection
• Advanced materials
• Display technologies
• Process advances for the 32nm node and beyond
• Advanced patterning for ICs, displays and related
  applications
• Software to enhance manufacturing capabilities
  and improve yield
• Photonics
• Lighting
• Data storage
• Advanced packaging
• Energy conversion and storage

www.AppliedVentures.com
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Conclusions

• CleanTech is HOT
• CleanTech is Overheated
• CleanTech is a Very Broad Area of Technologies
• Especially in Solar, there appears to be a
  bubble in valuations.
• Lots of Deals
• Lots of Money Chasing the Deals
• However Good Short-Term and Long-Term
  Opportunities Exist in all Spaces of CleanTech.
• Just Be Careful !

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CleanTech Funding as of TTL VC Funding
Source Nth Power LLC and Clean Edge Inc.
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Investment by Segment
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Average Size of CleanTech Investment
Source Cleantech Investment Monitor Q1-Q4 '06
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Chinas photovoltaic industry faces big potential
risks

• Chinas photovoltaic industry faces big potential
  risks
• Xinhua Economic News Service , May 11, 2007
  Friday 600 AM EST
• SHANGHAI, May 11 (CEIS) China has become the
  worlds third largest solar cell producer in the
  world after Japan and Europe, with the solar cell
  output reaching 370MW (Taiwans output of 200MW
  not included) last year. However, Chinas
  photovoltaic market lags far behind the
  development of the photovoltaic industry, making
  the latter face big potential risks.
• At present, China has more than 500 photovoltaic
  enterprises including six listed on overseas
  stock markets, according to Wu Dacheng, head of
  the Renewable Energy Project Office of the
  National Development and Reform Commission. The
  six listed solar energy companies are Suntech
  (NYSE STP), JA Solar (NASDAQ JASO) Rene Solar
  (AIM SOLA), Solarfun Power (NASDAQ SOLF), Trina
  Solar (NYSE TSL), and Canadian Solar
  (NASDAQCSIQ). Last year, the solar cell
  production capacity in the mainland of China
  amounted to 1,200 MW, soaring 280 over the
  previous year, and solar cell assembling capacity
  hit 2,000 MW and output, 600MW.
• Meanwhile, the countrys polysilicon material
  industry has developed rapid in the past three
  years. According to Zhao Yunwen, director of the
  Photovoltaic Branch of the China Renewable Energy
  Association, Chinas polysilicon output was 80
  tons in 2005 and 290 tons in 2006, and it is
  expected to exceed 1,000 tons in 2007 and top
  10,000 tons by 2010.
• However, on a sharp contrast to the robust
  expansion of the production capacity, the
  overseas solar energy market is unsatisfactory.
  At present, the German market, the largest solar
  cell consumer in the world, is bearish, and other
  markets in the world grow slowly. Both have
  brought big risk Chinas photovoltaic industry,
  which photovoltaic industry heavily depends on
  overseas market, said market analysts.
• About 95 of solar cell products made in China
  are for export, said Shi Dinghuan, former
  secretary general of the Ministry of Science and
  Technology.
• In the CNEC International Solar Energy and
  Photovoltaic Conference held in Shanghai on May
  10, the industry circle thus advocates the
  Chinese government to offer subsidies and
  incentives to solar energy- based electricity
  generation so as to stimulate the demand on the
  domestic photovoltaic market and guarantee the
  development of the photovoltaic industry.
• China has so far issued the Renewable Energy Law
  and related Implementation Rules, but the
  detailed rules and policies are not fully conform
  to the industry target. So the photovoltaic
  market develops slowly in China.

China has more than 500 photovoltaic enterprises
polysilicon output was 80 tons in 2005 and
it is expected to exceed 10,000 tons by 2010
95 of solar cell products made in China are
for export
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Cleantech MA and IPO in 2006

• Q3 06 34 MAs, 14 IPOs (total value 1.1B)
• Q4 06 40 MAs, 15 IPOs

MA Q306
MA Q406
Source Cleantech Investment Monitor Q1-Q4 '06
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Its Crowded !