Presentation & ESG Industry Update

Transcription

Presentation & ESG Industry UpdateJune 2020

AGENDA1Covid-19 update – A few ESG considerations worth mentioning2Presentation of GCA Altium – Who are we?3ESG trends – The future looks bright and green4Valuation benchmarks – Update on valuation5Contact us – Let’s team up & plan your next journey2

Covid-19 updateSection 1 – A few ESG considerations worth mentioning

COVID-19 COULD PROVE TO BE TRANSFORMATIONAL FOR ESGESG is significantly outperforming the marketCovid-19 could shape ESG interest for years to comeAwarenessGlobal awareness in the investor community toimplement ESG investingLegitimizeLegitimization of the development of moreresilient and sustainable societiesEngagementInvestors and the wider community will takepositions regarding ESG for 2020 and lity 70% 60% 89%of the major ESG fundsare outperforming theS&P 500 during theCovid-19 periodof ESG ETFs are doingbetter than the S&P 500& MSCI Europeof the studies show thatESG assets outperformthe market in thelong-runChoice to join the ESG community and be perceived asa sustainable asset vs. an old conservative businessPreparationGlobal pandemic was an ESG scenario tested by fewcompanies that should be considered in the futureGood targetSignal that ESG assets are good acquisition targets bothin normal circumstances and in a distressed market“If you combine ESG with financial expertise, you often have outperformance,that’s unquestionable.”Cary Krosinsky, Professor at Yale University“Sustainable investors think about the future, investment they can make that willproduce a positive social change. It’s natural that ESG would outperform.”Erika Karp, CEO at Cornerstone CapitalGCA Altium predicts above market value accretion from investments in the ESG sector in the years to comeSources: Media Velaw, Funds Europe, Citywire, S&P Global, Bloomberg4

ESG RELATED ASSETS ARE PERFORMING AND RECOVERING AT A HIGHER PACE VS TRADITIONAL BUSINESSES120COVID CrisisFed’s decision tolower interest rates 27%100Fear over a “no-deal Brexit”and US-China tradewar05-201911506-201907-2019Volatility over Brexitand trade-war deals8708-201909-201910-201911-201912-2019Brown Advisory Sustainable GrowthPerformance 34.9%1Y-19returnESG ETFsRecovery &Trust 3.7bnnet inflows(March-20)ESG related assets areperforming well ashighlighted by the BrownAdvisory Sustainable GrowthFund which achieved a34.9% annual return in 2019ESG related assets arerecovering faster thantraditional businesses andhave attracted net inflows ofover 3.7bn in March,highlighting the increasinginterest from investors01-202002-202003-202004-202005-2020S&P 500“The thematic approaches of ESG funds [ ] also make them more resilient todownturns in the business cycle. Come a downturn it will be the laggards andold-fashioned business models that face trouble, not forward-thinkingcompanies.”Jim Totty, MD at the Nobel Sustainability Growth fund“Resilience in ESG ETF performance will serve as a catalyst for further demand.[ ] its investors thinking, we need to do things that are better for everybody, forthe whole world, so we’re going to support the companies that are going to helpus do that [ ] people come together in a crisis.”Matt Maley, Strategist at Miller Tabak & CoSources: FactSet as of 8-May-20 (share price evolution; 100 basis), IIF.com5

Presentation of GCA AltiumSection 2 – Who are we?

GCA – A STRONG M&A BRAND WITH THE RIGHT VALUES AND A SEASONED ESG PRACTICE Sigurd SolheimDaniel FritzAdrian ReedAdam SivnerDaniel FugmannManaging Directorsigurd.solheim@gcaaltium.comManaging Directordaniel.fritz@gcaaltium.comManaging om25OFFICESACROSS THEWORLD 500EMPLOYEES 180TRANSACTIONSPER YEARESG mindsetMinimizing plastic wastewith water dispensersand glass bottlesCommunityVarious charity eventsaround EuropeCultureGCA Altium events strengthencorporate culture and fosterinnovation and teamworkTrusted relationships with founders and investors157PE DEALS INLAST 2 YEARS#1IN EUROPE FORTECH-ESGDEALS50%CROSS-BORDERTRANSACTIONS7

IN 25 OFFICES AROUND THE WORLD INCLUDING A DEDICATED SENIOR ESG TEAMCombination of local presence and global expertiseNew YorkLeeds StockholmManchesterBirminghamLondonFrankfurtZurich MunichLausanne MilanTel AvivTokyoNagoyaKyotoOsakaSan FranciscoShanghaiFukuokaTaipeiNew DelhiHo Chi Minh CityMumbaiSingapore7208ESG M&A seniorprofessionals in the USESG M&A seniorprofessionals in EuropeESG M&A seniorprofessionals in AsiaGCA Altium is a leading advisor to growth companies with a dedicated global team, ensuring an unparalleled globalfinancial and strategic investor coverage8

WE HAVE A GROWING COVERAGE AND DEEP KNOWLEDGE OF KEY SPECIFIC SECTORSActivated sectorsHow are we helping this communityMobilityEducationRecycling& reuseITAD/ITAMAdvanced reEnergyWe know how to maximisethe ESG positioning4We have unique accessesto the main ESG investorsIndustrial IoT23We bring uniqueexperience in sustainableareas5We unlock ESG values andachieve significantpremiumWe customize stories andhow to approach investors6We bring a dedicated teamwith ESG experienceOtherNote: (1) includes Smart Cities, Homes and Buildings / Sources: United Nations, Companies, Press9

GCA ALTIUM CREDENTIALS – KEY SELECTED ESG TRANSACTIONS BY SECTORSs ol d a preferred equity s takeini nvestment i ntoa consortium ofprivate investorsAdvisor to RR-energyDecember 2019Advisor to HondaENERGYEFFICIENCYBus iness i ntegration inthe thermal powergeneration s ystems fi eldwi thAcqui red shares ofAcquired shares fromofEquityfundraising3 4 ongoingongoingmandatesmandatesAdvisor to HitachiFebruary 2014Advisor to ItochuFebruary 2011AdvisortotoStreetcarItochuAdvisorFebruary 2011i nvested ina cquiredAdvisor to ToshibaMarch 2014Advisor to SumitomoWATER10

GCA ALTIUM CREDENTIALS – KEY SELECTED ESG TRANSACTIONS BY SECTORSWASTE &RECYCLING5 4 ongoingongoingmandatesmandatesi nvestment byAdvisor to Screening EagleAdvisor to the owners of EMGOTHER(1)4 4 ongoingongoingmandatesmandatesNote: (1) includes Edtech, social housing, compliance & ethics and security related transactions11

Global ESG TrendsSection 3 – The future looks bright and green

GLOBAL CHALLENGES ARE THREATENING OUR SOCIETY Key global challengesKey driversENVIRONMENTAL CHALLENGESPUBLIC AWARENESSIndustrialisation and extended use of fossilfuel have led to the global warming whichcould cost millions of lives by 2100Public opinions have been more and moreaware and vocal about global challenges, ledby independent groups of researchers andNGOs - resulting in growing pressure oncorporations and governmentsNegative externalities of human activities arecosting the lives of millions of speciesSOCIAL CHALLENGESCORPORATE PRESSUREThe development of our societies has left700m people in extreme povertyWith the rapid shift in mentalities and thegrowing pressure from consumers/public, anincreasing number of corporations havestopped waiting for strict regulation tocommit and strongly invest in ambitioussustainable goals600m children still lack basic reading skillsGender and racial discrimination still havestrong roots in our societiesECONOMIC CHALLENGESGOVERNMENT REGULATIONSDepletion of traditional energy sources is aglobal challenge to sustained growthGovernments are under increased pressureto take stronger actions and address targetsfixed by the United Nations, resulting instricter regulation upon corporations andstrong commitment to sustainable policiesAddress climate change while avoidingrecession is an important challengeHelping lagging economies to catch up is atop priority to ensure consistent growth 12tn needed to achievethe SDGsPositive environmental, socialand political drivers13

WHICH NEEDS TO TAKE COERCIVE AND SUSTAINABLE ACTIONS TO PRESERV E OUR FUTUREKey Sustainable Development Goals (SDGs)Key selected actionsENVIRONMENTAL GOALSENVIRONMENTAL ACTIONSActions have to be taken to reduce GHG emissions andany activities having a negative impact on life diversity– notably by consuming & producing more on &productionClimate actionLife below water4Life on landStandards and agreements in place tosupport environmental SDGs13512SOCIAL GOALSGlobal actions must target poverty and social stability12No poverty3Zero hunger5710498QualityeducationGood health10SOCIAL ACTIONS61116Guidelines and finance institutions to supportsocial SDGs17Peace, justice &stronginstitutionsReducedinequalitiesGender equalityPartnerships forthe goalsECONOMIC GOALSECONOMIC ACTIONSEconomic growth must be achieved by shifting to amore sustainable model – notably in terms of energyand water6Clean water &sanitation78Affordable &clean energyDecent work &economicgrowth911Industry,innovation &infrastructureSustainablecities &communitiesODA(1)FDI(3) 150bn per yearSchemes and programs to positively impacteconomic SDGs 700bn per yearSustainable AUM(2) 86tnNotes: (1) Official Development Assistance: aid designed to promote the economic development and welfare of developing countries, (2) Amount of assetunder management committed to implement ESG principles, (3) Foreign Direct Investment (only a portion contributing to SDGs)Source: UNDP14

KEY ESG UNDERLYING MARKETS SHOWING INCREASING TRACTIONS AND OPPO RTUNITIESSectorsKPIsKey areasKey market driversIncreasing energy costs and1 Smart building/homeEnergy efficiency2 Electric vehicles/charging12 110bnby 20263 31bnby 2023 830bnby 2027(13% CAGR)Rise in environmental concerns1232 Recycling technology 530bnby 2025 1.2bnby 2025 604bnby 2025(6% CAGR)(6% CAGR)(5% CAGR)12 3 22.4bnby 2023 300bnby 2025(20% CAGR)(8% CAGR)3 E-learningAgriculture1 Agtech(4)2 Agricultural sensors (4)2Need to enhance collection,sorting and recycling processes112 177bnby 2025 2.6bnby 2026(11% CAGR)12Sustainablecities &communities9Responsibleconsumption &production11Industry,innovation &infrastructure1312Sustainablecities &communities14Responsibleconsumption &production15Growing inclination towardClimate action1Life below water2mobilityof digitization, growth in2 Speednew technologies and declining3 hosting costNo poverty42Zero hungerDecent work on291 government supportIncreasing use of sensors inprecision agriculture andpartnerships among theagrochemical companiesLife on land81 BYOD(3) policy and enterpriseRise in food safety and1Industry,innovation &infrastructureExpansion of the E-3 commerce industry1 LMS(2)21 and government norms9Affordable &clean energyConcerns related to public1 Waste managementContent providerPolicies to tackle GHG(1) withnew standards in place73 safety and traffic congestion3 Reverse logisticsEducation2(6% CAGR)3 Telematics/intelligent trafficWaste & recycling1 environmental issuesSDGsZero hunger12Responsibleconsumption &production11Industry,innovation &infrastructureSustainablecities &communities15Life on land31 Healthcare servicesHealthcare2 Biopharma3 Medtech12 12tnby 2022 526bnby 2025(9% CAGR)(14% CAGR)3 600bnby 2025123Elderly population, technologicaldevelopment, increasingprevalence of diseases and growthin the biologics and veterinaryhealthcareGood health9Industry,innovation &infrastructureNotes: (1) Greenhouse Gas, (2) Learning Management System, (3) Bring Your Own Device, (4) includes indoor and precision agriculture. Sources: Allied MarketResearch, Grand View Research, ResearchandMarkets, Statista, Market Insider, Holon IQ, Fortune Business Insights, The Boston Consulting Group,15MarketsandMarkets, GlobeNewswire

INCREASING REGULATION INSTRUMENTS ARE BENEFITING THE SPACENORTH ANDSOUTHAMERICAASIA &OCEANIAEUROPEUS Benefit Corporation Legislation (B-Corp) tomake available to the public an annual benefitreport that assesses their overall social andenvironmental performance In many States, DRS(1) have been or are beingproposed to improve recycling ratesCanada Canadian Environmental Protection Act forfacilities emitting large amount of greenhousegases to submit a report All provinces and territories, exceptedNunavut, have established mandatory DRS.Possible expansion of DRS to wine and waterbottles in QuebecEuropean Union Multiple measures have been undertaken toaccelerate recycling rates in member countries,including DRS & recycling targets for plasticsUnited Kingdom Carbon Reduction Commitment EnergyEfficiency Scheme which requires companies tomeasure and report all their Co2 emissionsFrance French Energy Transition Law which requireslisted companies and financial institutions todisclose facts such as risks related to climatechange and measures adoptedBrazil Solid Waste National Policy which requires allentities generating hazardous waste to developa solid waste management planNo reporting instruments or not in scope 5 reporting instruments5 to 9 reporting instrumentsNote: (1) Deposit Return SchemeSources: Carrots & Sticks, Reporting instruments mentioned above are non-exhaustiveChina Environmental Protection in ForeignInvestment and Corruption to addressenvironmental protection and otherconsiderations in investments overseas Recent ban on waste & plastics import, partlyto stop the generated pollutionJapan Multiple laws have been passed to promotesorting & recycling of concrete, vehicles,plastics, food and home appliances since 1996Australia Carbon Farming Initiative to removegreenhouse gases from the atmosphere andavoid emissions Container deposit scheme already introducedin Central and Eastern Australia and to beintroduced in Western Australia in early 2020 10 reporting instruments16

HOW ESG INVESTING HAS EVOLVED OVER TIMEFocuses onaligning investorvalues withportfolioselectionSupplements afundamentalinvestmentprocess with ESGvaluesconsiderationsSeeks to preservecapital but maysacrifice financialreturn objectivesto achieve impactAims to deliversustained alphawhile achievingtargeted, directimpact onselected SDGs1960 – 19901990 – 20102010 – 2015TodayEmergence of earlysocially responsibleinvesting modelDevelopment of currentsocially responsibleinvesting & ESG modelsEmergenceof impactinvesting frameworkEmergenceof dedicatedPE/VC fundsSource: GS Asset Management17

INCREASING BASE OF INVESTORS EAGER TO IMPLEMENT ESG PRACTICESNorth AmericaEuropeAsia & OceaniaSustainable investing has long been abroadly accepted practice in Europe,making this region the world largestinvestment hub for ESG assetsInterest in ESG assets has beengrowing among investors in AsiaJapan is the main investment hub forESG assets in the region (strongsupport from Abe’s administration)(1/2)Investments in ESG assets havecontinued to increase, gainingimpressive market share over nonESG assets (51% of assets were ESGcompliant in 2018)(2/2)Strong support measures promotedboth by the EU and member countrieshave been contributing to thisecosystem:Main reason for investing in ESGassets has been linked to investordemands (LPs such as pension funds& other institutionals) rather thanregulation( tn)100Larger proportion of investment inresponsible assets vs non ESG wasachieved for the first time in 2018- Binding requirements atEuropean level for sustainabledevelopment; promotion oflow-carbon energy source &mobility; DRS(1); feed-in tariffsAUM of Principles for Responsible Investment 20001000002006200720082009201020112012AUM ( tn)2013201420152016201720182019Number of signatoriesIn addition to regional initiatives, sustainable investing has become a major global trend, supported by international agreements(Kyoto, Paris, etc.), leading corporate players and global awarenessNotes: (1) Deposit Return Schemes, (2) Principles for Responsible Investment Signatories (PRI) is a network of investors working together to put in place ESGprinciples into practice. Sources: United Nations, GSI Alliance, Bain & Company18

INCREASING BASE OF DEDICATED IMPACT AND ESG FUNDS – EUROPE LEADING THE RACENorth AmericaEuropeAsia & OceaniaMain ESG Private Equity fundsMain ESG Private Equity fundsMain ESG Private Equity funds289Total AuM of dedicated impact PE/VC funds ( 010201120122013201420152016201720182019 H1 100m 100m - 499m 500m - 999mNote: Total ESG AuM include both Private and Public Equity assetsSources: United Nations, GSI Alliance, McKinsey & Company, Bain & Company10 999m19

ACCELERATION OF INVESTMENT ACTIVITIES IN SELECTED KEY MARKETSSectorsEnergy efficiency(1)Waste & recyclingEdtechAgtechHealthcareInvestments ( bn)20174. 4(2)Geo. concentration2019KPIs3162019 Deals in the SmartBuilding Industry19Billion dollarsinvestments in theElectric vehicles/chargingindustry since ivers Add IoT capabilities, redefinebusiness models andattempt to remaincompetitive in the light ofnew market entrants Driven by the ACES(4) trends2019 Corporate and VCDeals Change in the regulatorylandscape (DRS scheme, etc.) Rise in industrial,construction and commercialactivities2019 M&A Transactions Widespread adoption of appbased EdTech services Consolidation of K-12 tools toprovide a full suite ofservices for schools anddistricts2019 VC Deals Growing recognition of theimpact of agriculture onclimate change Need for new technologysolutions across the entiresupply chain2019 Buyout Deals Aging populations, agrowing incidence of chronicdisease, and rising wealth inemerging economies Gain new capabilities andexpertise in specific fieldsNotes: (1) includes electric vehicles/charging, telematics/intelligent traffic and smart building, (2)(3) average annual investment from 2010-13 and from 2014Feb.19 for the electric vehicles/charging and telematics/intelligent traffic industries, (4) Autonomous driving, Connectivity, Electrification of vehicles, Sharedmobility. Sources: McKinsey & Company, Bain & Company, PitchBook, EduCapital, i3 Connect, Memoori20

ESG IS A HIDDEN SUCCESS FACTOR IN M&A TRANSACTIONSCumulative total returns of acquiring companies in M&A deals23170%M&A deals used in the sample64%60%21%Above performance(1) of ESG compatible deals vs ESGincompatible dealsESG to be used as a proxy for firmcultureCumulative total returns (%)53%50%39%40%35%30%9%ESG/cultural compatibility to positivelycontribute to the success of M&A dealsNote: (1) 5 years cumulative returns after completionSources: Sustainalytics, # of years after deal completionESG Compatible DealsAll DealsESG Incompatible Deals21

ECOSYSTEM SUPPORTED BY STRONG TAILWINDS COMING FROM CONSUMER AWA RENESSVolvo Ocean Race 2017-2018: Turn the Tide on Plastic is a great example showing the magnitude of this 1)Plastic pollution is damaging oceans &threatening marine species Using a well known sport event forenvironmental changes and supportscientific yeducationLife belowwaterResults317Partnershipsfor the goalsMessage delivered to millions of peopleand several programs in place toeducate people on ocean healthNote: (1) 0 single-use plastic during the eventSource: The Ocean Race821mOnline articleviewsExecutionPromoting an event with no single-useplastic together with a marketingcampaign and scientific programmes tohave a true impact on the planet22

Valuation BenchmarksSection 4 – Update on valuation

KEY METRICS USED TO ASSESS ESG ASSETS KPIs to be prepared and presented to potential InnovationStaffOtherEnergy efficiency:Waste/Recycling:Supply Chain:Innovation:Staff:Other: Total energyconsumption andenergy perunit/employee Total waste producedand waste per unitproduced Supplier agreementsand supply chainpartners screened foraccordance with ESG Percentage ofrevenues fromproducts at end of lifecycle vs percentage ofnew/enhancedproducts introducedless than 12 month ago Staff turnover andpercentage ofemployees leavingp.a./total employees Expenses and fines onfillings, law suitsrelated to anticompetitive behavior,anti-trust andmonopoly practices,etc. Source of energy (e.grenewable, etc.) Potential energysavings by using theCompany’s solutions (ifapplicable)GHG emissions: Total GHG emissionsand emissions perunit/employee Potential reduction inGHG emissions byusing the Company’ssolutions (if applicable) Amount of wasterecycled vs total waste Percentage of materialrecovered for reusageand at end of life-cycle Evidence of recyclingschemes within theCompany Potential to lowerwaste or recycle theCompany’s products atthe end of the lifecycle (if applicable)Source: EFFAS System or procedure inplace to check on aregular basis thatsuppliers are followingESG principles Percentage of productrecalls for safety orhealth reasons (as atotal recalls) Percentage of thesupply coming fromsustainable sources (ifapplicable) Total R&D expensesand R&D expenses as a% of revenues orfunding to externalpartners/suppliers Partner/supplieragreements to developa new products (ifapplicable) Number of patentsregistered within last12 months andnumber of patents dueto expire within next12 months Evidence of trainingprograms in place Average expenses ontraining per employee Age and genderdistribution(percentage of femaleemployees and femalemanagers as of totalworkforce) Absenteeism rate Any misconductallegations Percentage ofrevenues in regionswith corruption indexbelow 6.0 Communityinvestment Investment(s) inaccordance with ESGcriteria (incl.investment(s) inassociates andminority stakes)24

LISTED ESG COMPANIES HAVE BECOME ATTRACTIVE ASSETS WITH GREAT RE COVERY 201808-2018MSCI Global 02005-2020STOXX Europe 600Conclusion:Overall performance of ESG assets is higher than traditional businesses. Analysts show strong confidence in sustainable assets:“There is growing consensus that integrating material ESG factors correlates tolong-term financial returns and can help generate alpha.”Goldman Sachs“We found that, over the last five years, companies with higher ESG Ratingsexhibited higher average return on invested capital, compared to companieswith lower ESG ratings. They were also valued at a premium over their othertop performing peers with lower ESG Ratings.”MSCI“We believe sustainability creates business value. A growing body of researchdemonstrates that resource-efficient companies produce higher financialreturns than benchmark indexes. They also exhibit higher levels of innovationand corresponding margins, returns on assets and returns on equity.”Morgan Stanley“Our BofA Merrill Lynch Global Research team authored a research report in2016 that showed incorporating ESG factors into an investment approach canbe critical to achieving one's long-term financial goals -- and that ignoring ESGmay be costly to investment performance.”Bank of America Merrill LynchSource: FactSet as of 8-May.-2025

ESG ASSETS HAVE CONSISTENTLY DISPLAYED HIGHER VALUATIONS IN THE RECENT YEARSStoxx Euro 600ESG indices have recently started to significantly outperformtraditional market’s benchmarksc. 10x EV/EBITDA600large, mid andsmall companiesacross 17countries of theEuropean region200top performingEuropeancompanies in thefield of CorporateSocialResponsibilityCompanies thatderive most oftheir revenuesfrom keyenvironmentalthemes (energyefficiency, etc.)7.8x7.3x7.3x2010201120128.3x20139.2x201410.4x 10.4x 10.5x 10.0x 10.2x 9.9x201520162017201820192020Stoxx Euro 600Ethibel Sustainability Index 201510.5x201611.7x 11.9x 11.5x 11.9x20172018Ethibel Sustainability Index EuropeSource: FactSet as of 21-Apr.-20MSCI Global Environment Indexc. 12x EV/EBITDA2019202010.5x 10.0x .7x2017c. 12x EV/EBITDA12.7x11.6x 12.1x201820192020MSCI Global Environment Index26

VALUATION BENCHMARK – ESG VERTICALS ARE HIGHLY VALUEDDescriptionMobility & Smart CitiesRecycling & ReuseMobility & Smart Cities markets include battery technology providers& mobility infrastructure industrials as well as IoT hardware (sensors,specific network module, etc.) and software (data analysis, networkprotocols, etc.) providers for applications such as M2M, energy andresources efficiencyRecycling and Reuse markets include providers of recycling products& services (plastics, scraps, metals, etc.), as well as logistics expertsable to provide reverse logistics services for the refurbishingindustriesSelected keyplayersSelected keyplayersTransaction multiples1-2x8-12xIoT ALES L2YTrading multiplesTransaction multiplesTrading 7-9xIoT SmartCitiesEV/EBITDA L2Y8-12x8-11x7-10x1-2x1-2xElectricMobilityEV/SALES 2021eSource: Factset as of A 2021e7-10xReverse logistics& ITADSALES growth 2021e X%Reverse logistics& ITADRecyclingEBITDA margin 2021eX%27

VALUATION BENCHMARK – ESG VERTICALS ARE HIGHLY VALUEDEdtechAgtechEdTech markets encompass both public and private sectors andinclude provider focused systems (Student Information Systems,College ERPs, Student H&S Management etc), student-focusedsoftware and content, corporate learning management systems(LMS) and corporate training, e-learning and complianceDescriptionSelected keyplayersAgriculture Technology markets can be divided into two segments:software (from farm management systems to specific software –weather, cartography, etc.) and devices (from drones to advancedseeds sorting machines)DescriptionSelected keyplayersTransaction multiplesTrading multiplesTransaction multiplesTrading 4-5x9-12x3-4x1-2x2-4xEdtechEV/SALES L2YAgtechsoftwareEdtechEV/EBITDA L2YEV/SALES 2021eEV/EBITDA 2021eAgtech devicesSALES growth 2021e X%Note: (1) There are very few listed Agtech software due, sector being largely made of early-stage companiesSource: Factset as of 28-Apr.-20207-10x1-2xn.a.(1)AgtechsoftwareEBITDA margin 2021eAgtech devicesX%28

VALUATION BENCHMARK – ESG VERTICALS ARE HIGHLY VALUEDHealthcareSelection of valuation driversHealthcare include three specific business models: Medtechproviders (from imagery and analysis to stents and other medicaldevices), healthcare services providers (brick & mortar services,biomedical analysis laboratories, etc.) and biotechnology companiesDescriptionSelected keyplayersGROWTHValuation of the electric mobility vertical is highly dependent on theReverse Logisitcsrevenue growthVerticalsValuation metricsR2Electric MobilityEV/SALES0.69Electric MobilityEV/EBITDA0.88PROFITABILIYMedtechValuation of the reverse logistics and agtech devices verticals are highlyReverse Logisitcsdependent on the profitabilityTrading multiples8.6%3.2%26.4%22.5%39.1%VerticalsValuation metricsR2Reverse logisticsEV/SALES0.84Reverse logisticsEV/EBITDA0.59Agtech devicesEV/SALES0.838-12x3-5x10-14xGOLDEN ion multiplesValuation of the Edtech vertical is highly dependent on the revenueReverse Logisitcsgrowth and LES L2YMedtechEV/EBITDA L2YHealthcareServicesBiotechEV/SALES 2021eEV/EBITDA 2021eVerticalsValuation metricsR2EdtechEV/SALES0.56SALES growth 2021e X%EBITDA margin 2021eX%Note: (1) Private, early-stage biotechnology companies often have off-the-chart valuation due to the industry specificities; (2) Combination of revenuegrowth, revenue retention and EBITDA margin. Source: Factset as of 28-Apr.-202029

PRECEDENT PRIVATE TRANSACTIONS – ESG VALUED AT A PREMIUMStrong macrotrends and support from investors Importance given to ESG assets is rapidly growing Investors are looking for ESG assets to cope with increasing pressure from LPs TMT industries have historically been valued at a premium compared to the broader market TMT industries with ESG features display even higher premia (15% in Europe and 9% in US)Funds having launched a vehicle dedicated to ESGEuropean private market multiples(EV/EBITDA)ESG Premium 15%US private market multiples12.1x(EV/EBITDA)ESG Premium 9%12.4x13.5x10.5xESG premium9.0xTechnology premiumTechnology premium10.9xTechnology premiumTechnology premiumBase valuationBase valuationBase valuationBase valuationBase valuationBase valuationGeneralist valuationTMT valuationESG TMT valuationGeneralist valuationTMT valuationESG TMT valuationESG premiumSources: Mergermarket, Bain Private Equity report, Preqin reports, Argos Wityu midmarket reports, Clearwater Research, Fifth Third Securities, S&PCapital IQ30

ESG CASE STUDY – FROM A VALUE ADDED RESELLER TO AN ESG ENABLERSince 2017, GCA Altium ESG team has worked alongside the founders transforming the business into a leading ESG enablerOct.-2019Refurbishing(4)Apr.-2019Education sectorEducation sectorAVAVJun./Jul.-2018AV(1)1ITAMITAM2& Standard IT Asset Management(ITAM) Business SEK 0.7bn(2)Revenue 20173 ITAM with completeequipment offering andsolid logistic hubsValue creationITAM4ITAM ITAM with complete equipmentoffering and additional verticalin the education sector SEK 1.3bn(3)Revenue 2018Value creationFully circular ITAM & ITAD businesswith complete offering SEK 3.2bn(3)Revenue 2019eNotes: the present analysis focuses on recent transactions (excluding acquisitions prior to 2016), (1) Audio Visual, (2) standalone figures, (3) proforma figures, (4) Reverse logistics, Value Recovery, End-Of-Life (EOL)31

Contact usSection 5 – Let’s team up & plan your next journey

GET IN TOUCHSigurd Solheim, Managing Director Leading our ESG and Circular Economy efforts Prior to joining GCA, Sigurd was a founding partner of Stella EOC where he focusedon ESG and B2B SaaS & IT Services transactionssigurd.solheim@gcaalti

GCA Altium is a leading advisor to growth companies with a dedicated global team, ensuring an unparalleled global financial and strategic investor coverage. 7. ESG M&A senior professionals in the US. 8. . Life below wat