Opportunities & Challenges in the World of “New Gas”- Strategies for Success Bruce Jenkyn-Jones

1. Opportunities & Challenges in the World of “New Gas”- Strategies for Success • Bruce Jenkyn-Jones, Managing Director • sub-advisor, Pax World GEM Fund • October 3, 2012

2. Impax Asset Management – An Introduction • $2.9 billion AUM* • Global firm, established in 1998, with a London base and presence in Hong Kong, New York and Washington DC • 27 investment professionals, with 27 support staff • Thought leaders on Resource Scarcity & Environmental Sector issues Client Breakdown Private Label Fund Clients 31% Institutions 56% Private Wealth, Endowments/ Foundations 10% Others 3% Impax Ownership Staff 34%** Others 41% BNP Paribas 25% *As at 31 August 2012. **Fully diluted interest following vesting of employee incentivisation awards in September 2012.

3. “New Gas Changes Everything!” Energy Water Waste Carbon & Asset Trading Control Solutions Env. Consultants Infra- structure Recycling & Processing Treatment Equipment Infrastructure & Technologies Testing & Gas Sensing Waste Management & Technologies Utilities Industrials Storage Hazardous Power Alternative Transport Buildings Energy Efficiency Pollution Control Environmental Support Services Developers & IPPS Technology Equipment Solar Wind Power Biofuels General Other Equipment Note: Some sub-sectors have an additional ‘diversified’ category not shown above for the sake of clarity

4. New Gas and the Photovoltaics Market – Challenges & Opportunities Energy Water Waste Carbon & Asset Trading Control Solutions Env. Consultants Infra- structure Recycling & Processing Treatment Equipment Infrastructure & Technologies Testing & Gas Sensing Waste Management & Technologies Utilities Industrials Storage Hazardous Power Alternative Transport Buildings Energy Efficiency Pollution Control Environmental Support Services Developers & IPPS Technology Equipment Solar Wind Power Biofuels General Other Equipment Note: Some sub-sectors have an additional ‘diversified’ category not shown above for the sake of clarity

5. Dramatic Economies of Scale PV Module Manufacturing Capacity European PV Plant Installation Cost (€m/MW) Total 61.4 MW 6.5 Rest of the World 31% China Europe 52% Total 4.0 MW 1.8 47% 27% 17% 26% 2007 2011 2007 2011 Sources: SWS Research 2011, Impax Asset Management. 2011 figures are estimated.

6. PV breakeven cost in 2012 for Commercial Facilities: Default Rate Structure With Incentives • 51.9% of load covered at breakeven price of $3/Watt and greater • 16.9% of load covered at breakeven price of $5/Watt and greater • 10.3% of load covered at breakeven price of $7/Watt and greater Source: Ong, Denholm, Margolis, NREL: Draft Results DRAFT RESULTS: DO NOT CITE

7. Demand/Supply Imbalance in PV Market Substantial Overcapacity…. …and underperformance …leading to price pressure…

8. New Gas + Intermittent RE = New Demands, New Possibilities Energy Water Waste Carbon & Asset Trading Control Solutions Env. Consultants Infra- structure Recycling & Processing Treatment Equipment Infrastructure & Technologies Testing & Gas Sensing Waste Management & Technologies Utilities Industrials Storage Hazardous Power Alternative Transport Buildings Energy Efficiency Pollution Control Environmental Support Services Developers & IPPS Technology Equipment Solar Wind Power Biofuels General Other Equipment Note: Some sub-sectors have an additional ‘diversified’ category not shown above for the sake of clarity

9. New Grid Realities Require New System Capabilities • Power Network Efficiency • ABB • Efficient transmission & distribution (‘T&D’) hardware products • Developed markets – • grid reinforcement, reliability and renewables integration. • Emerging markets – • new construction and rural electrification • Hubbell • T&D connectors, insulators and surge arresters (~90% of components on a tower) • Positioned to benefit from $300bn of investment in the US T&D grid by 2030 • Itron • Intelligent metering products for electricity, gas and water • Worldwide meter market only 10% automated; 7% compound growth forecast

10. Transport Fuel of the Future? Profitable Today Annual Sales of NG Trucks and Buses by Segment World Markets: 2012-2019 Natural Gas Vehicles • Landi Renzo • Automotive OEMs and aftermarket kits • Strong market position • Strong recovery • (i) Euro V launches, • (ii) gasoline tax = improved $$ • Westport Innovations • Gas kits for heavy trucks • Numerous strategic relationships • Less attractive financials • Unattractive valuation - 3x EV/Sales (2013) Source:http://3.bp.blogspot.com/-bhttp://3.bp.blogspot.com/-bMWkTcpYUKk/UEeGvLQZM3I/AAAAAAAA0wA/Xp_JVt6QZks/s1600/09-07-2012a.pngMWkTcpYUKk/UEeGvLQZM3I/AAAAAAAA0wA/Xp_JVt6QZks/s1600/09-07-2012a.png

11. Production Boom Yields Clean-up Bonanza Energy Water Waste Carbon & Asset Trading Control Solutions Env. Consultants Infra- structure Recycling & Processing Treatment Equipment Infrastructure & Technologies Testing & Gas Sensing Waste Management & Technologies Utilities Industrials Storage Hazardous Power Alternative Transport Buildings Energy Efficiency Pollution Control Environmental Support Services Developers & IPPS Technology Equipment Solar Wind Power Biofuels General Other Equipment Note: Some sub-sectors have an additional ‘diversified’ category not shown above for the sake of clarity

12. Exploration, Production Growth Expands Pollution Control, Remediation • Clean Harbors • Leading US hazardous waste company • Strong market position + barriers to entry  growth • Strong balance sheet; excellent M&A record • Tetra Tech • Environmental advisors focused on US/Canada water; well placed as regulations ratchet up • Rapid revenue growth; $100m to $500m in 3-5 yrs • Strong balance sheet (zero net debt) positions well for M&A • Ecolab • Treatment chemicals for water, energy markets • Energy 17% of sales with broad exposure & growing opportunities from shale gas • Attractive business model with defensive growth (consumables) • Xylem • World’s largest water infrastructure /treatment company • Instrumentation for remote monitoring of water quality near fracking sites • Membrane technology used in treatment water clean-up

13. Summary • Expanded natural gas production is re-writing US energy & environmental markets • Resulting shifts will produce predictable sector winners & losers • Broadly diversified environmental investors can limit downside risk, pursue upside opportunity • Wide range of new opportunities for investor gain are already emerging • Well balanced holdings offer strong potential in high growth markets

14. Thank You Bruce Jenkyn-Jones Managing Director – Listed Equities b.jenkyn-jones@impaxam.com / +44 (0) 20 7434 1122 Ken Locklin US Managing Director (Washington DC) k.locklin@impaxam.com / 703 476 1561 David Richardson US Managing Director (New York) d.richardson@impaxam.com / 646 543 8182 This document has been prepared by Impax Asset Management Limited (“Impax”, authorized and regulated by the Financial Services Authority). Impax is a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. The information and any opinions contained in this document have been compiled in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. This document does not constitute an offer to sell, purchase, subscribe for or otherwise invest in units or shares of any fund managed by Impax. It may not be relied upon as constituting any form of investment advice and prospective investors are advised to ensure that they obtain appropriate independent professional advice before making any investment in any such Fund. Any offering is made only pursuant to the relevant offering document and the relevant subscription application, all of which must be read in their entirety. Prospective investors should review the offering memorandum, including the risk factors in the offering memorandum, before making a decision to invest. Past performance of a fund or strategy is no guarantee as to its performance in the future. This document is not an advertisement and is not intended for public use or distribution. Under no circumstances should any information contained in this document be regarded as an offer or solicitation to deal in investments in any jurisdiction including, but not limited to, the United States of America. In particular, the shares of Impax Environmental Markets (Ireland) Fund, Impax Environmental Markets plc, Impax Asian Environmental Markets (Ireland) Fund, Impax Asian Environmental Markets plc and Impax Asset Management Group plc are not registered under United States securities laws and, subject to certain limited exceptions, may not be offered, sold transferred or delivered in the United States or to US persons.