Atlantic Energias Renovaveis Driving the future of renewable in July 2016 Atlantic Energias Renovaveis

Atlantic is a company The Actis approach conditions. The company introduced a headquartered in in southern Our proven, replicable strategy is to company-wide balanced scorecard system Brazil. Founded in 2009, it develops, aggregate energy assets into scalable and an incentive scheme for management. implements and operates power projects regional platforms in high growth markets. Atlantic also provides specialised training from renewable sources, with a focus on Actis has considerable experience in the programmes to fill identified capacity gaps wind farms. renewable energy sector in ; and provides financial assistance to Atlantic is one of four energy platforms in employees to fund higher education. Context Latin America along with Aela in Chile, Zuma Brazil is Latin America’s largest energy in Mexico and GME in Central America. Atlantic also believes in playing an active market with strong fundamentals for role in the communities in which it renewable energy growth. Responding to What did we do? operates. In 2014 the company this, the government established a When Actis invested in 2013, Atlantic was commenced sponsorship of the Joao supportive regulatory framework that technically and financially overstretched Paulo II Child Care Centre for makes investment in renewable energy and projects were delayed. We provided disadvantaged children; an example that very attractive. much needed capital, governance and we hope will stimulate other businesses managerial skills to turn the company with whom we engage to follow suit. We Brazil’s wind resources are among the best around, into what has become widely fully sponsor one child per employee every in the world and Atlantic wind farms are recognized as a world-class owner, year and our employees spend time with among the most productive in Brazil. For developer and operator of renewable the children, teaching them about instance, on April 17th 2016 a record of energy assets. sustainability and renewable energy. wind generation was set in Brazil when the average net of all wind Actis acquired 60% of Atlantic for an initial Responsible Investment farms operating in the 8 states of the commitment of US$169 million. At that Many of Actis’ energy investments are country´s north eastern region reached time the company had 220 MW of majority or wholly owned platforms. We are 65%. In August 2015, Atlantic’s 30MW projects in development with long-term thus able to ensure there is a Head of ESG Eurus in the northeast reached power purchase agreements as well as a appointed at the platform level and to 78% net capacity factor, the highest in proprietary land bank with 1.4 GW of establish an ESG sub-committee to the Brazil. Atlantic’s Renascença 30MW wind wind potential. In July 2016 Actis Board. We periodically host meetings for farm reached 75% net capacity factor in consolidated its ownership position to portfolio company ESG managers globally the same month, the 9th highest in Brazil. 100% of the company via the acquisition of to share best practice and discuss the shares held by minority shareholders commonalities. Wind energy feeds into the country’s vast Pattac and Servinoga. existing hydro-thermal interconnected grid Established in 2011, the Actis Energy that stretches across the country, We convened a Board that incorporated Impact Model assesses the value drivers in connecting remote projects to large experienced non-executive directors with all our energy investments across six demand centers such as Sao Paulo, Rio de complementary skills, established a clear categories: Finance, People, Social/ Janeiro and . The operation business plan and brought a cadre of senior Community, , Environment of hydroelectric plants in Brazil depends on project management, tax, legal and and Governance. It helps us track a the hydrological regime, which is subject to financial acumen. All 220 MW of contracted company’s performance over time against significant seasonal fluctuations and which projects became operational just one these focus areas, and develop new targets currently faces critical levels of storage. year after we acquired the company. as initial action points are progressed. Hydropower accounts for two thirds of the The key to our success has been our country’s energy generation and poses a careful, methodical approach to project How did we do? challenge for grid stabilization. Usually, development, sustainably building a Actis appointed a new CEO in January such fluctuations are complemented by scale business. 2015 and subsequently Atlantic thermal power, though wind power has progressed on many fronts, achieving 250 grown in importance over the recent past. The positive power of capital MW fully operational and another 402 MW Energy generated by wind saves water in Atlantic regards sustainable development under construction. A large inventory of hydro plants’ reservoirs, which can be as an integral part of its strategy. Sound development projects have been identified, stored for energy generation during peak governance is the foundation of every most of which are adjacent to our periods, reducing expensive thermal aspect of Atlantic’s health and safety existing facilities, significantly expediting dispatch. Wind and hydro in Brazil are highly practices as well as its environmental and their development. complementary due to the fact that winds social activities. are stronger during the dry season. In the words of a leading European Beyond simple adherence to local laws, investment bank, Atlantic is considered ‘a Atlantic recognises the strong business jewel’ in a highly competitive sector with a case for developing and fairly rewarding reputation for delivering on promises. employees for their performance. Our standards are extended to all our contractors and their subcontractors, ensuring the provision of quality working Atlantic Energias Renovaveis