EFTA00615105.pdf

ELECTRON CAP I TAL PARTNERS LLC Electron Global Fund. LP O1 2013 INVESTOR PRESENTATION EFTA00615105 introduction & team executive summary focused & • Continuation of a 7-year global long/short equity strategy concentrated on global utilities and infrastructure companies in the US, consistent strategy Europe, Asia and Latin America James ("Jos-) Shaver. Managing Partner & Portfolio Manager. has 8 years of experience as a long/short equity portfolio manager and 21 years (including 10 years working abroad in both Europe and Asia) covering the global utility and infrastructure sectors accomplished team demonstrated track record Shaver and the core investment team know each other well having worked together for an average of 6 years. both at SAC Capital Advisors and the former Electron Capital Management (-Electron CM") Combined annualized net return of 10.3% cumulatively outperformed each of the MSCI World Utility. S&P 500 and HFRI Equity Hedge Indices by approximately 92%, 68% and 62%, respectively' Consistent outperformance of the MSCI World Utility Index in 7 out of 8 years (in both up and down markets) resulting in 8.1% annualized alpha2and capital preservation in challenging markets • Time-proven risk management culture and process which incorporates a proprietary global sector risk and capital allocation risk management model (60+ metrics) • The Managing Partner has committed a significant upfront investment to the Fund and management company aligned interests • All Partners will reinvest up to 1/3 of distributable profits back into the Fund which will vest over 3 years (no base salaries are drawn) I. Please see page 25 for detailed performance related disclaimers. 2. Jensen's alpha calculation. Jenseris alpha - Portfolio return -(Risk free rate Portfolio beta x (Market return - Risk free rate)]. ELECTRON CAP. TAT. PARTNERS LTC Striety Confidential. Do Not Dupicate or Ciserbute. EFTA00615106 rt rAL.ct or & team global utlity sector philosophy 8 process portfolio 8 risk management fund information a p accomplished team the members of the investment team have extensive industry expertise and a history of success investing together and across market cycles Jos Shaver• Managing Partner/ Portfolio Manager Nell Chol Partner/ Senior Analyst Peter SUMO, CFA• Partner/ Senior Analyst Ran thou, CFA Partner/ Senior Analyst Jeff Zheng Senior Analyst 2000 2001 2002 WS GSM/DJ SG Barr Devon g. I Director EU unities (UK) Managing Director. EU utilities Cohesive team who have worked together at: MI SAC Capital • Electron Capital Management 2003 2012 2004 2005 2006 2007 I 2009 2009 2010 2011 SAC Capital Portfolio Manager. long/short global utility and infrastructure book PA Electron" Electro❑ Sector Founder and Portfolio Manager. long/shod global US PA utility and infrastructure fund < Goldman Sachs (since '96) Pequot Citadel SAC Capital Sell-side analyst covering US utilities Analyst covering US utilities Analyst covering US utilities. Analyst covering US utilities. gas pipeines and IPPs infrastructure and select EU utilities < UBS (since '96) Citigroup Electron" al I I I I I I Sell-side analyst. Head. Man utility research Sell-side analyst, valuation and accounting research Analyst covering infrastructure and deep fundamental dives in US, Europe. Asia and Latam Aaron Keller, CPA CFO and Head of Operations Greg Zarffro Managing Director. Marketing and IR Electron" Analyst covering Asia. sehect infrastructure and alternative energy companies II= Senior Accountant Electron" Technical and quantitative analyst. Intrepid Capital (Electron— Controller) Controller Intrepid Capital (Electron- ) Associate WI r Chief Financial Officer 1 I a Analyst Director •Please see Appendix for full team background. education and advsory board biographies. "Denotes original Electron Capital Management (2004-2008) Electron Electron Electron Electron Electron Electron ELECTRON CAPITAL PARTNERS LLC Strictly Confidential. 2 Do Not Dupicale of DIV bute. EFTA00615107 global utility and infrastructure sector regional market capitalization* (US $2.8 Trillion) i US 35% ip 4 yAjtalanol Others 23% Europe 30% 12% subsector market capitalization* Water 2% Gas 22% 'Source: Morgan Stanley. MSCI Electricity 43% Utility- related 33% regional characteristics Europe The Pace Setters • EU directive • Political risk realized • Power and carbon • Country specific issues US Muddling Forward • Hybrid structure • Consolidation • EPA mandates and renewables driving capex • Coal-to-gas switching universe of companies* Region Europe US Asia Latam Total Electricity 44 66 43 20 178 Natural Gas 7 15 14 0 36 Water 5 7 4 3 19 Utility-related 38 59 46 0 143 Total 94 147 107 23 376 Asia The Diligent Student • Studying Europe (particularly UK) • China factor • Environmental issues • Increased transparency Latam Becoming Enlightened • Improving regulatory framework • Corporate governance • Government ownership global sector correlations* 0.8 0.6 .4!, 0.4 To 0.2 0.0 a us A it O o One of the Least Correlated Sectors C a U O C C ii Health Care C ELECTRON CAPITAL PARTNERS LLC Since)/ Confidential. Do Not etspitate Of Cistrbute. 3 EFTA00615108 t -sduction & team global utity sector ph losophy & process portfolio & risk management fund information why the global utility and infrastructure sector significant timely and ongoing Structural changes increasing opportunities in the sector. Regulatory arbitrage Timely OpportunIties Shale gas discoveries, change in fuel mix and LNG impact structural change in Renewable subsidies expiring changes cycle • Tax changes (dividends, subsidies, Robin Hood taxes) Re-regulation in some markets • Fuel cost pass-through clauses global utility and infrastructure opportunities Textbook underperformance coming out of recession waning Generation capex waning yet transmission and distribution capex increasing Efficiency measures gaining momentum Environmental initiatives on an upswing Limited long/short dollars in what is viewed as a complex niche sector(') Continued unbundling of the utiity value chain creating long/short opportunities Competition in generation and retaiVsupply dividends • Regulatory model changes deregulation and growth Elimination of subsidies Ongoing Opportunities Consolidation and divestitures changing risk profiles (1) Only 1 stock is contained in Goldman Sachs VIP and VISP lists as of August 2012. ELECTRON CAPiTAL PARTNERS LLC Increased investor appreciation of utility characteristics - essential services, dividends and growth in a low growth environment Macro flows continue to create distortions and thus long/short opportunities Investors largely not pricing in potential dividend increases and cuts Re-rating or change in valuation metric possible in "new normal" Infrastructure growth from both developed and emerging markets Stncty Conhclenttal. Oo Not Dupicalo or Dittntatte. EFTA00615109 g:obal utr ty s.C.CiOf st. o p - arziorroWor. ?trod ilurr global utility and infrastructure market structure • M&A • Divestitures • New entrants Environmental • Efficiency • Fossil fuel costs • Market distortions • Peak shaving • Carbon price • SOr, NO,. Hg2 • Acts of nature • Politicization of tariffs • Nuclear fragmentation/ consolidation renewables commodity cycle market structure focus distortions • regulation deregulation S • Unique commodity • Reverse margin changes • New-build price signals • Fuel switching Framework • Commodity price impact • Bottlenecks • Expropriatory politics • Generation competition • Supply competition • Value chain unbundling ELECTRON CAPITAL PARTNERS LLC SIfiet COntdc- ti:11 Pu '.O1::up,c.:.flt. or Dot-outer 5 EFTA00615110 rt' n-ut or Sto. i .. b: t ..I.. philosophy &process investment philosophy team based culture Work environment is a "safe" place for opinions and independent thought "Hunt as a pack" particularly for cross-border market structure changes Consistent measurement and feedback are the keys to improving as investors Focus on alpha generation Team members may own a view point, but not a name or region Focus on utility market structure changes - generally slower to be priced into the stocks Take advantage of the global utility sector's low regional correlations Focus on the risk/reward proposition, not the greatest absolute return potential • Build conviction by first eliminating possibilities focused, sector-driven approach • cash flow is paramount rigorous risk management Sizing is most important risk step • Keep risk model discipline - mitigate selective memory and bias • When in doubt. get out ELECTRON CA:" - A_ FAF - I,Ezic LLC T:irorty COT nol Qu •.O! Dup c.:41r. or '2,oroure 6 EFTA00615111 introduction & team g'obai ub ty!ector philosophy & process portfolio 8 risk management fund information exhaustive, repeatable investment process - Integrated research - Global network of management relationships spanning 20 years - Senior advisory board members - Regulators - Consultants - Lobbyists - Sell-side/buy-side analysts - Trade around fundamentally based positions - Proprietary utility focused statistical approach combined with multiple technical indicators - Short trade a bucket of fundamental losers • Maximize dividend capture Thesis with Differentiated View Toehold Positions idea generation technical overlay portfolio construction detailed analysis ongoing monitoring - Sizing based on conviction, risk/reward and liquidity - Thesis write-up, upside/downside valuation and time limits for each position in risk model key focus on structural changes in utility markets: 1. Cross-country/region comparison ("where have we seen this movie before?") 2. Deep-dive analysis and discussion with multiple parties involved, such as company management, regulators, consultants, etc. 3. Evaluate the potential impact to the industry and local utility market 4. Determine the company winners and losers under different structural change scenarios 5. Evaluate upside/downside potential for each affected stocks 6. Check how different we are from consensus 7. Maintain and increase conviction through research and elimination of possibilities - Daily review of risk model and limits - Discussion and action taken on positions breaching stops, targets and time limits - Periodic drawdown analysis and stress tests - Daily measurement of alpha contribution by region and subsector - Deep-dive reviews of lessons learned ELECTRON CAPITAL PARTNERS LLC Stncty Conldential. Do Not Dupicale or I>itrbute. 7 EFTA00615112 7):1 Ln 'y ;C-CAO' portfolio & 6* management portfolio construction position number, sizing and liquidity Typically 70 to 100 positions globally No long position greater than 10% of Fund's value No short position greater than 5% unless paired with long 95% of portfolio <2 days volume • Top 10 longs generally 40 to 50% of Fund's value concentration of portfolio • Top 10 shorts generally 30 to 40% of Fund's value • Typically 150% to 250% • Historical median Electron: 185% gross, max 212% gross exposure Historical median SAC: n/a Generally ranges between 50% long to 15% short Historical average Electron: 30% net net portfolio exposure Historical average SAC: 17% net • Globally diversified with allocation according to the most attractive alpha opportunities • Approximately 40-60% ex-US geographic exposure • Approximately 85%+ OECD countries ' Past performance is not indicative of future results. No representation is made that the Fund will or is likely to have exposures similar to the historical exposures shown above. ELECTRON CAP .TAE PARTNERS LLC 2,rict Corlideutull Do o! 2up cab. of 8 EFTA00615113 Competitive Integrated 0 portfolio B nsk management n. icl glom • r , risk management our proprietary global sector risk and capital model has been developed over the last 8 years provides multi-function/multi-level risk controls • Tracks on a real time basis 60+ risk and capital metrics relevant to the global utility and infrastructure sectors • Quantifies risk using a proprietary "risk lens" for the global utility and infrastructure sectors • Provides a "granular window" on market flows into and out of the global utility and infrastructure sectors • Conduct daily reviews to implement action plans on risk issues or triggered limit breaches • Periodic drawdown analysis and stress testing performed sample risk positions eet-c ty 0 Water Generale! Nudear 0 Thailand Bola 0 0 Coal Action taken to mitigate 0 Supply ELECTRON CAPITAL PARTNERS LLC Strictly Conklental. Do Not Dopicaie Dishbute. 9 EFTA00615114 . portfolio & risk management risk management Electron believes that most metrics fall into the following three categories: company Country. regions. sectors. subsectors and sub-subsectors exposures risk metrics Commodity risk (e.g. power. oil, natural gas, coal. etc.) both direct and indirect Interest rate risk (e.g. regulated utilities, company leverage. etc.) Plethora of financial measures position risk metrics capital metrics Liquidity and concentration measures Relative positions and volatility Absolute and relative stop loss flags Real time alpha and beta attribution by regions and main sectors Thesis write-ups for all positions - consistently reevaluate thesis and avoid thesis creep Absolute and relative target gain flags Trade duration limit flags to mitigate stale positions ELECTRON CA? .TAI PARTNERS lle Y C<>rldevtral. Du Not 2up:c:ate auk,. 10 EFTA00615115 Introduction 8 team g:obai utity sector philosophy 8 process portfolio 8 nsk management fund information demonstrated track record' monthly 2012 returns (net of fees) Jan Feb Apr May Jun Jul Aug Sep Oct Nov • Electron Dec • SAC YTD Mar 0.88% 2.30% -1.61% 1.21% 0.31% 2011 -1.87% -0.60% 2.15% 3.19% -3.77% 0.89% -2.01% -2.95% -3.20% 5.86% -1.06% 2.07% -3.48% 2010 0.84% -0.88% 1.63% 0.18% 2.70% 1.33% 1.65% 0.68% 1.88%. 1.15% •L51% 1.56% 5.85% 2009 6.83% 2.08% -1.18% 4.14% 3.40% 1.69% 2.29% 1.94% 3.79% -0.05% 0.37% 0.20% 28.36% 2008 2007 -5.72% 3.30% 2.16% 3.22% -2.00% 4.11% 1.229:6 2.70';6 1 47', 3.46°% n/a -0.13% -0.12% 234', -6.23% 3.02"; -2.69% 3.16'.1 smisses 0 10% •1.92% 0.01% 1.35% 14A0% 28.35% 4.06"; 2006 7.92% 0.08% 2.02% 2.52'. 0.03% -1.45% 0.18"; 1.19", 0.52":: 3.59`- 5.21% 4.07% 28.24% 2005 2.52":: 1.60' 0.04% 2.20`: 3.14% cumulative returns 120% 100% 80% 60% 40% 20% 0% •20% 40% Aug-05 May-06 Feb-07 Nov-07 Aug-08 May-09 Feb-10 Nov-10 Aug-11 . .Electron/SAC —MSCI World Utilities , S&P 500 • HFRI Equity Hedge performance metrics Electron/ MSCI Wodd S&P 500 HFRI Equity SAC UtNitles Index Hedge Total period return 91.2% -02% I 24.4% 30.1% Annualized return 10.34% -0.03% 3.37% 4.07% % positive months 65% 56% 61% 65% Annualized standard deviation 8.94% 14.65% 16.44% 9.81% Maximum drawdown -14.92% 41.97% -48.09% -28.86% Sharpe rail& 0.96 -0.12 0.10 0.23 Beta of Fundt 0.30 0.22 0.62 Correlation of Fund3 Correlation of Fund In down mark& 0.49 0.29 0.41 0.18 0.68 0.55 1. see page 25 for detailed performance-related disclaimers. 2. monthly periodicity. risk free rate: 3 month treasury bil secondary market rate (source: Federal Reserve). 3. based on monthly net retuns. ELECTRON CAPITAL PARTNERS LLC Stnctly Conrdc ,tut. Do Not Dupicale of Dtstibute. EFTA00615116 introduction & team g'obai utity sector philosophy & process portfolio & risk management hind information demonstrated track record' capital 0% -1% -2% -3% 4% -5% preservation S&P500 in down markets E[ectron/SAC MSCI 0 25°. returns during indices' World Utilities Electron/SAC .0.37% -3.65% Average •4.07% down months annual 2005P returns vs. Annual Return 3.14% benchmark index MSCI World Utilities Outpettormance 0.78% 2.36% 2006 28.24% 31.53% (328%) 2007 28.35% 18A9% 9.86% 2008 (14.40%) (28.86%) 14.46% 2009 28.36% 2.01% 26.35% 2010 5.85% (4.52%) 10.38% 2011 (3.48%) (6.82%) 3.34% 2012P 0.31% (1.56%) 1.88% Total 91.18% (0.18%) 91.36% 1. Please see page 25 for detailed performance related disclaimers. 2. Corresponding numbers i ELECTRON CAPITAL PARTNERS LLC contra performance in down markets2 45% 43% 40% 35% 2.4x 30% 25% 20% 18% 15% 10% 5% 0% To of positive months when MSCI % of negative months when MSCI World Utilities Index was negative World Utilities Index was positive total outperformance over indices 100% 91.4% 80% 61.1% 60% 40% 20% 0% I— MSCI World Utilities sing S&P 500 Index are 42% and 20%. respectively. S&P t HFRI Equity Hedge Stnct-y ConldettNil Do Not Dupicalo Of Distr but* 12 EFTA00615117 fund information fund terms & service providers minimum subscription si million subject to Company's discretion liquidity Monthly upon 60 days' notice Soft lock-up 2.5% penalty during first 12 months high-water mark Yes management fee 1.5% incentive allocation 20% Administrator Auditor legal counsel prime brokers Domestic: Morgan Stanley Fund Services (USA) LLC Offshore: Morgan Stanley Fund Services (Bermuda) Ltd. Rothstein Kass Domestic: Bingham McCutchen LLP Offshore: Maples and Calder Goldman Sachs Morgan Stanley UBS ELECTRON CAPITAL PARTNERS LLC Stncty Conldential. 13 Do Not Dupicale of Dgrbute. EFTA00615118 APPEND I X ELECTRON CAPITAL PARTNERS LLC Stncty Do Nol Cupicale Of plasbute 14 EFTA00615119 Introduction & team g obal utoty sector philosophy & process portfolio & risk management fund information appendx appendix: investment team biographies James ("Jos") Shaver, Managing Partner/ Portfolio Manager Jos has 21 years of experience covering the global utility and infrastructure sectors, during which time he was based in Europe (five years), Asia (five years) and the US (11 years). For the past four years, Jos has been a Portfolio Manager at SAC Capital Advisors, where he ran a global utilities and infrastructure book. Prior to that, Jos founded Electron Capital Management, a global utilities and infrastructure-focused long/short fund, in 2005. Prior to starting Electron, Jos lived in London (2000-2004) where here began his investment career and was a senior investment banker to the major European utilities as a Managing Director of SG Barr Devlin, which he joined from Credit Suisse First Boston/Donaldson, Lufkin & Jenrette. Major European utility focus covered the following countries: UK, Germany, France, Italy, Spain, Belgium, Netherlands, Sweden, Finland and Norway. Prior to moving to Europe, Jos spent five years in Hong Kong (1995 - 2000) focusing on the Asian utilities. Jos was Head of UBS' Utility Investment Banking Group (Asia), following the merger of UBS and SBC and, prior to that, the Head of Project Finance Debt (Asia). Major Asian utility and infrastructure focus covered the following countries: China, Korea, India, Thailand, Malaysia, Singapore, Indonesia, Philippines, Japan and Pakistan. Before moving to Asia, Jos was a Team Leader in UBS' global project finance group in New York (1989 -1995) where he advised/arranged and structured several notable financings in the independent power and mining sectors in the US and Latin America. Jos received a BA in Mathematical Economics from Colgate University in 1986 and an MBA in Finance and Accounting (double major) from Columbia Business School in 1990. ELECTRON CAPITAL PARTNERS LLC Stnct-y Conldc-t Do Not Dupicale or DITO 15 EFTA00615120 introduction & team g'obal utlity sector philosophy & process portfolio & nsk management fund information appendix appendix: investment team biographies Neil Choi, Partner/Senior Analyst Peter Suozzo, CFA Partner/Senior Analyst Ran Zhou, CFA Partner/Senior Analyst Jeff Zheng. Senior Analyst Neil joined the team at SAC Capital Advisors in June 2010 as a senior analyst covering the US utility sector. Neil has 7 years long/short experience. Prior to joining SAC, he worked as an Analyst in the Global Equities division within Citadel Investment Group, where he covered utilities, gas pipelines and independent power companies, and before that at Pequot Capital Management for approximately two years, as part of a team managing the firm's long-short US utility portfolio. Before joining Pequot, Neil was a sell-side analyst for nine years at Goldman Sachs, where he covered US utilities. He graduated magna cum laude from The Wharton School in 1995 with a BS in Economics. Peter has 22 years of experience covering the utility, infrastructure, capital goods and energy sectors. Peter joined Electron Capital Management in August 2007 and moved with the team to SAC Capital Advisors in 2008. Prior to joining Electron, he was a sell-side analyst with Citigroup, covering valuation and accounting, and with UBS, where he was head of Asian utility research. Before that he was an Asia-based fund manager for privately held Unifund, SA and an investment analyst with Columbia University's Office of Investments. Peter holds a BA in International Relations from Colgate University (1982), an MBA in Finance from Columbia University (1990) and a MA in Accounting from The Leklin School (2007), and is a CFA charterholder. Ran has 7 years of experience covering utilities, renewables, energy and capital goods. He joined Electron Capital Management in June 2005 as an analyst after graduating from Columbia University with an MA in Statistics in May 2005 and moved with the team to SAC Capital Advisors in 2008, where he covered Asian utilities, energy, capital goods and global renewables. Ran was born and raised in Beijing, China, where he received a BS in Mathematics and Applied Mathematics from Tsinghua University in July 2004. Ran is a two-time Bronze medalist in China's National Olympic Mathematics Competition. He is fluent in English and Mandarin Chinese. Jeff joined Electron Capital Management in June 2007, focusing on technical and quantitative analysis in the global utility sector and moved with the team to SAC Capital Advisors in 2008. Prior to joining Electron Capital Management, he worked as a quantitative trading support intern at Greenwich Equity Group in 2007. Jeff received a BS in Coastal Engineering from Shanghai Jiao Tong University, China in 2003, and MS degrees in Environmental Engineering and Financial Mathematics from the University of Connecticut in 2006 and 2008, respectively. ELECTRON CAPITAL PARTNERS LLC Striety Confidential. I is Co Not Chapicale 0, Dist/but*. EFTA00615121 introduction & team g'obal utt ty sector philosophy 8. process portfolio & risk management fund information appentix appendix: operations team biographies Aaron Keller , Chief Financial Officer and Head of Operations Greg Zaffiro, Managing Director and Head of Marketing / IR Aaron Keller joined Electron Capital Partners as Chief Financial Officer in October 2012. Aaron is a CPA with 10 years of experience in hedge fund accounting. He most recently served as Chief Financial Officer of Kingsbrook Partners. Prior to that, he served as Controller of Intrepid Capital Management and Electron Capital Management. Before that, Aaron was a Senior Associate at Rothstein Kass, with a focus in hedge fund accounting. He received his BS in Accounting from the Sy Syms School of Business in 2001 and is a member of both the American Institute of Certified Pubic Accountants and the New York State Society of Certified Pubic Accountants. At Electron, Aaron is responsible for overseeing all back-office operations of both the funds and management companies. Greg Zaffiro joined Electron Capital Partners as a Managing Director in November 2012. Greg has 9 years of experience in the hedge fund industry. He most recently served as the Director of Marketing and Business Development for Platinum Partners. Prior to that, he was an equity research analyst with Roth Capital Partners, focusing on enterprise software companies. Before that, Greg was an associate with Intrepid Capital Management and Electron Capital Management. He received his BS in Business Administration from Fordham University in 2006. At Electron, Greg is responsible for overseeing all marketing and business development. ELECTRON CAPITAL PARTNERS LLC y Dort Do Nol 2up:cate 17 EFTA00615122 distinguished advisory board each member of the senior advisory board has been selected for his "out of the box" thinking and had been with Electron Capital Management from launch and with SAC for the first 2 years Mr. Kevin Bond Senior Advisor Mr. Lenny Lee Senior Advisor • Former President & CEO of CILCORPAPALCO. Vice President of AES Corp. and Managing Director of AES (Asia) 2C0S 2006 2007 2008 2009 2010 2011 2012 • Former CEO of Kelda plc (United Kingdom) and Managing Director of EarthTech (Europe) - the water and infrastructure division of Tyco • Currently Chairman of CityWest Homes. the social housing company for the City of Westminster (London) and Chairman and Board Member of a number of UK companies • Based in the United Kingdom Electron Capital Management SAC Capital Electron Mr. Alfred Sorensen Senior Advisor • Based in Canada • Based in the United States Electron Capital Management SAC Capital Electron Former President of Galveston LNG and former President & CEO of Duke Energy (Europe) Electron Capital Management SAC Capital Electron Mr. Duncan Whyte • Senior Advisor Former Chairman of Wales and West utilities • Former main board director of Scottish Power for 11 years (roles included Acting CEO. COO and CFO/Finance Director) and CEO of Weir plc • Based in the United Kingdom ELECTRON CAD TA; PAP -NED,: LLC Strictly Confidential. Do Not Cho:deal° Of Diserbute. 18 EFTA00615123 introduction & team global uti ty sector philosophy & process portfolio & risk management fund information appendix appendix: fundamental utility value drivers difference in various regional value chains highlights an electric utility company's value chain opportunity upside and constraint cit generation Commodity product Fuel mix Merit curve New entrant costs Technology fit trading Risk management Trading skills Default risk Collateral 0 transmission and distribution Regulation Bottlenecks Scale Regulator skills Infrastructure funds supply Scale matters Access to cheap electricity and gas Churn and stickiness ELECTRON CAPiTAL PARTNERS LLC Strictly Confidenhal. Do Not Dupicale of dta bole. 19 EFTA00615124 appencix appendix: fundamental utility value drivers supply response Comments: - As demand increases (Do 4 Di), prices eventually spike (Po 4 P1). and volatility increases - Response to price signal (") - world's most efficient generation is built (typically gas-fired CCGT), shifting the supply curve to the right (So 4 SI) Results: - The supply curve shifts to the right putting demand back on the flat part of the curve and prices move back down (P, 4 P2) $/mwhr Pr Po Do so S, Di O0 01 O2 mwhr electricity prices (fragmented market) Comments: - Deregulated markets are in their infancy - Economic theory would say that long run prices should track long run marginal costs (LRMC) - In reality, prices will spend the majority of the time close to short run marginal costs SRMC only to spike upwards for short periods of time Results: - The supply curve shifts to the right putting demand back on the flat part of the curve and prices move back down (P, 4 P2) $/mwhr PI LRMC - PoP2 SRMC time ELECTRON CA:" - A_ PAP - NE; LLG Sorcty ConWerrnol Do ‘o!CoproLOcr or Cotrouto 20 EFTA00615125 I introduction & team gObal utirly sector philosophy & process portfolio 8 r. ragement fund information appendx appendix: fundamental utility value drivers track approximately 60 components in the proprietary sector risk model of the theoretical utility risk bundle to seek to hedge undesirable risks at the portfolio level management control limited or no management control judgment & diversity hedgeable in long/short portfolio Accounting controls Operations Trading VAR M&A Compliance Unforced outages Dividend policy I r I . I r I I T Labor Integrity Maintenance Capex Technology Leverage Regulator Interest rates Environmental changes Acts of natures Capital market access risk Volatility Market design Fuel Price Gaming Weather Country Currency Beta Valuation I I I I I I I I I Credit Risk New technology Inflation Electricity price Economic growth Regulatory regime Change in correlations Merit order Value chain mix Intensity of use Market fragmentation Market concentration Regulator Market fragmentation moves Envronmental changes Gaming Weather I I Acts of nature . 1 Competition I . I i Market design I Change in correlations I NewI technology Capital market access Regulatory regime Market concentration moves Country Valuation Bectnoty price Interest rates Inflation Intensity of use Economic growth Merit order Value chain mix Fuel price Credit risk I Beta Volatility ELECTRON CAPITAL PARTNERS LLC 21 EFTA00615126 introduction 8 team g oba uti ty sector phitosophy 8 process portfolio 8 risk management fund information appenclx appendix: exposure analysis' historical exposure analysis Jan Feb 2005 Gross 2005 Net Mar Apr May Jun Jul Aug Sep Oct Nov Cectron a SAC Dec Average 148.3% 147.2% 179.1% 211.8% 171.6% 27.1% 26.3% 19.2% 28.8% 25.4% 2006 Gross 189.9' 196.2% 197.2% 178.4' 200.6°. 191 179.6% 191.0% 190.4% 209.9% 181.3% 198.5% 192.0% 2006 Net 23.8% 13.1% 16.8% 20.1% 25.5% 22.1% 22.0% 31.8% 34.9% 27.2% 32.5% 31.8% 25.1% 2007 Gross 188.8% 193.1% 203.4% 179.9% 196.9% 197.9% 187.3% 164.1% 171.3% 182.3% 157.9% 162.5% 182.1% 2007 Net 42.5% 37.7% 34.1% 39.8% 38.3% 37.1% 33.1% 37.9% 35.5% 36.7% 37.6% 37.3% 37.3% 2006 Gross 161.9% 154.4% 118.9% 104.2% 1.0% n/a 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 149.9% 2006 Net 41.8% 28.2% 18.2% 0.0% n/a 0.2% 0.2% 8.7% 0.3% 0.7% 8.0% 12.0% 2009 Gross 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 2009 Net 7.4% -0.7% 0.6% 20.9% 15.5% 26.2% 28.3% 26.9% 26.3% 31.0% 26.1% 16.3% 18.7% 2010 Gross 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 2010 Net 21.8% 17.5% 30.0% 22.0% 20.0% -4.8% 18.4% 21.6% 21.9% 36.1% 33.0% 16.1% 21.1% 2011 Gross 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 184.8% 2011 Net 10.5% 9.0% 24.1% 38.0% 34.4% 26.9% 32.4% 5.6% 0.2% 15.4% 27.4% 12.0% 19.7% 2012 Gross 184.8% 184.8% 184.8% 184.8% 184.89'. 2012 Net 11.0% 7.2% 12.9% 14.1% 11.3% 1. Please see page 25 for detzded po,dormance related disclaimers. ELECTRON CAPITAL PARTNERS LLC Stncty Conldenhal. Do Not Cupicale Of Dgrbute. 22 EFTA00615127 contact information introduction & team g'obal utlity sector philosophy & process portfolio & risk management fund information appendix Electron Capital Partners LLC New York Office 599 Lexington Avenue 38th Floor New York, NY 10022 Greg Zaffiro Office Mobile: E-mail: ELECTRON CAP TAL PARTNERS LLC Welly Confidential. Do Not Dupicale of Dl* bate. 23 EFTA00615128 introduction & team g!obal utlity sector philosophy & process portfolio & risk management fund information disclaimer This presentation is presented solely for information purposes to assist prospective investors in determining whether they have a preliminary interest in investing in Electron Global Funds (the "Fund"), which has yet to be formed. This presentation is a summary and does not purport to be complete. This presentation does not constitute an offer to set or a solicitation of any offer to buy or sell, any securities or to provide any investment advisory services. Any such offer will be made solely to qualifies investors by means of a final offering document and related subscription materials for the Fund. which will contain material information not contained herein and to which the prospective investors are directed. This presentation is not intended to replace such documents, which should be carefully read prior to investing. An investment in any security, including the securities described herein. involves a high degree of risk. No assurance can be given that the investment objectives of the Fund will be achieved and investment results may vary substantially on a quarterly, annual and/or other periodic basis. Past performance is not necessarily indicative of future results, and no representation is made that the Fund will or likely to achieve results similar to those shown. The nature of, and risks associated with, the investments to be made by or on behalf of the Fund may differ substantially from the nature of. and risks astorinted with, investments undertaken historically by the principals of Electron Capital Partners LLC. Indices referenced in this presentation are presented for comparative purposes only. These indices were selected because they are well known to investors and we believe that they are appropriate for comparison with the Fund's expected investment strategy. The performance of the Fund may not be comparable to the performance of these indices. The performance of these indices includes the reinvestment of all income (other than dividends) and does not reflect the deduction of any expenses or fees. These indices are not actively managed. It is not possible to invest directly in these indices. Prospective investors should not construe this presentation or any other communication received in connection with the Fund as legal, accounting, tax, investment or other advice, and each prospective investor should consult with its own counsel and advisors as to all legal. tax, regulatory, financial and related matters concerning an investment in the Fund. This presentation is confidential and proprietary. Accordingly. this presentation is to be treated as strictly confidential and not disclosed, directly or indirectly, to any party other than the person to whom it has been delivered and such person's professional advisors. Any distribution of this presentation. in whole or in part. or the divulgence of any of its contents, is unauthorized. An investment in the Fund involves a significant degree of risk. including, without limitation: • The risk of loss and/or volatile performance: • The use of leverage; • Risks relating to investments in intellectual property; • The lack of liquidity: and • The lack of regulatory or other oversight. Forward Looking Statements: Any projections. forecasts and estimates (including, without limitation, any target rates of return) contained in this presentation are necessarily speculative in nature and are based upon certain assumptions. It can be expected that some or all of such assumptions will not materialize or will vary significantly from actual results. Accordingly, these projections are only an estimate. Actual results will differ and may vary substantially from the results shown. ELECTRON CA >JAL PARTNERS LLC Shicey Conridenlial. Do No' Dupleate or Distrbute. 24 EFTA00615129 introduction & team gebai uthty sector philosophy 8 process portfolio & risk management fund information performance-related disclaimers All returns from September 2005 through May 2008 are derived from the annual audited returns of the Electron Global Utility Fund, Ltd ("Electron Original Fund"). Al returns from July 2008 through April 2012 are derived by Electron from information (the "Information") consisting of the buying power ("BP")'. gross market value ("GMV")2 and gross profit/loss ("PnL") of the account managed by Jos Shaver (the "Account") at SAC Capital Advisors. L.P. ("SAC"), and provided by SAC to both Jos Shaver on July 2, 2012 and Rothstein Kass on November 12, 2012. In preparing these returns. Electron considered a variety of methods of convening the Account Information into estimated "hedge fund" returns. and selected the methods that it believes are most representative of how the Account would have performed had it been a "hedge fund". The use of other conversion methods could have resulted in significantly lower or higher returns. In addition. Electron made certain assumptions about the expected operations of the Fund. It can be expected that some or all of such assumptions will not materialize or will vary significantly from actual results. Recipients of this presentation are urged to make their own examination of the Information presented. Please be advised that the Information provided by SAC is confidential and a confidentiality agreement will need to be executed by a potential investor to review the Account Information. To convert the Account Information into an estimated "hedge fund" return, Electron aggregated the daily PnL of the Account, divided the aggregate PnL by the GMV of the Account as of the beginning of the applicable month, and multiplied by 185% (since 185% is the median gross exposure ratio for the Electron Original Fund).3 For 2008, volatile GMV levels due to high cash levels (less than 1/3 of BP deployed for all 2008 months and see http://online.wsj.com/article/SB122394318763531045.html) would produce results that Electron believes do not accurately reflect how a "hedge fund" would have performed under similar market circumstances and constraints. Electron adjusted the formula by using the BP of the Account as of the beginning of the applicable month instead of the GMV, and by multiplying the result by 119% (since 119% is the median daily BP to GMV ratio).' If the BP adjustment is not used for 2008 and GMV is used as in other years. the annualized return for the combined track record would be 13.26% instead of 10.34% and the standard deviation would be 19.16% Instead of 8.94%. Finally, BP was taken to zero on April 13, 2012 when Jos Shaver resigned from SAC. Rothstein Kass performed agreed•upon procedures which recalculated the results for the SAC period from July 2008 through April 2012 using the Information provided to them directly from SAC on November 12, 2012 and according to the method outlined above. The results are presented net of a 1.5% management fee (calculated monthly in arrears) and 20% annual performance allocation. The results of the Electron Original Fund are presented net of all actual expenses incurred by the Electron Original Fund. The results of the Account are presented net of financing costs and other charges associated with investment decisions, but do not reflect the deduction of administrative, legal. accounting. regulatory and other "hedge fund" expenses. In providing information to Rothstein Kass and us, SAC has informed us that it and its affiliated entities have no responsibility or liability in connection with the information provided herein and do not guarantee the accuracy of such Information. While in no way limiting the foregoing, each recipient understands and agrees that (i) the information provided by SAC is based on unaudited information, may involve the use of estimates and assumptions and therefore may not be completely accurate, (ii) neither SAC nor any affiliate thereof will have any obligation to verify the information provided herein (or the accuracy thereof) to the recipient or any third patty, and (iii) neither SAC nor any affiliate thereof will have any liability to the recipient or any third patty. 1. BP is the maximum Gross Market Value that could be held in the Account. 2. GMV is the sum of USD equivalent absolute market value of each security in the Account at the end of each trading day. USD market value for each security is calculated using the exchange close prices and translated to USD using the daily 3:00PM EST FX rate posted on Reuters. Calculations exclude currency forward contracts and cash balances posted to the Account. GMV for option contracts is calculated based upon the number of such contracts multiplied by the appticable dosing price for such contract multiplied by the applicable option multidier for such contract. Illiquid positions, if any. are valued at recent transaction price or at SAC's discretion. 3. The resulting formula is (monthly PnL)/(GMV month beginning) x 185%. 4. The resulting formula for 2008 is (monthly PnL)/(BP month beginning) x 185% x 119%. ELECTRON CA >JAL PARTNERS LLC Stncty Conldenttal. Do Not Dupicale or Detrbute. EFTA00615130