SUSI Energy Efficiency Fund
SUSI Energy Efficiency Fund Customized financing solutions for investments in energy efficiency projects of industrial processes, buildings and public infrastructure Presentation for Federchimica 2015
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI Energy Efficiency Fund (SEEF) invests € 300m over the next 2 years Attractive financing structure
Benefits for the technology partner
100% Investment Volume
Fast offering to clients due to secured financing solution
Off Balance Sheet Financing Structure
Access to a attractive project-pipeline
Financing of new and refinancing of operational projects
Increase of realizable energy efficiency projects
Value Proposition
Partnership
Unique business model is bridging financing gap The SEEF finances energy efficiency retrofits of buildings, manufacturing facilities and public infrastructure and obtains a share of the energy savings.
Multi-win character 1. Energy Service Companies (ESCOs) can grow their business gaining access to financing for profitable retrofits in energy efficiency. 2. Clients get free upgrade of their buildings, production facilities and/or infrastructure and realize energy cost savings. 3. The fund achieves attractive returns for its investors. 4. The environment profits from measurable green house gas reductions.
SUSI Energy Efficiency Fund
Partnership with technology partners to finance energy efficiency projects of clients with a tight investment budget. SUSI is looking for technology partners supporting clients with energy efficiency solutions. In cases of a tight investment budget from the client side, the SEEF provides a 100% financing of the investment volume.
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI Partners AG addresses the three main pillars of energy infrastructure
SUSI Partners AG
Founders: Tobias Reichmuth, Otto von Troschke
Verwaltungsrat: Board of Directors: Jürg Bucher (Präsident), Kai-Uwe Ricke, Prof. Dr. Uwe Krüger, Stephanie Schoss, RA Björn Bajan Jürg Bucher (President), Kai-Uwe Ricke, Moritz Leuenberger (former Minister of Energy and Federal President of Switzerland), Prof. Dr. Uwe Krüger, Stephanie Schoss, Björn Bajan
Renewable Energy
Energy Efficiency
SUSI Sustainable Euro Fund I (Solar- and wind projects in Western Europe; closed)
SUSI Energy Efficiency Fund (Financing Energy Efficiency measures through a contracting model; in investment phase)
SUSI Renewable Energy Fund II (Solar- and wind projects in Western Europe; fundraising ongoing)
SUSI Energy Efficiency Fund
Energy Distribution and Storage Storage capacity for utilities; planned for 2015
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
Business model with guaranteed cost reduction Energy saving contracting (illustration)
Rising energy prices: limit your exposure EU targets: «3 times 20 till 2020»
Energy Costs
Energy costs without implementation
Reduction in energy costs for the client
Energy costs after implement ation
Contract duration
Time Commencement of contract
End of contract
In an energy saving contract arrangement, the ESCO plans, builds,
finances (optional) and operates all measures that are necessary to achieve energy savings. In return, the ESCO receives a portion of the savings in energy costs, to cover expenditures for financing, planning and controlling and implementing the project. The SUSI Energy Efficiency Fund takes the role of the financing party in the contract, while the technical obligation is actually fulfilled by an ESCO. The ESCO guarantees the savings that are to be achieved by the project. SUSI Energy Efficiency Fund
Reduction of EU greenhouse gas emissions by at least 20 % below the level of 1990. Increase the share of renewable energy sources of the EU’s gross final energy consumption to at least 20 %. Reduction of primary energy consumption by 20 % compared to the extrapolation of today's consumption through improvements in energy efficiency.
Regulations – Risk of rising prices Increased retrofit regulations are expected in the coming years; it is possible to save money and sustain the value of the buildings with an early retrofitting. Taxes increase energy prices. Expectation from tenants/clients Tenants are looking for energy efficient buildings. Clients are looking for energy efficient products.
The energy price risk exposure can be lowered significantly through energy efficiency retrofits. Page 4
SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI Partners offers solutions for financing energy efficiency projects Energy efficiency project example Client
Comments Contractor/ESCO
Together with an ESCO, the fund identifies projects, for example
retrofit of industrial plant
annual energy costs: € 3.0 m
reduced energy costs: € 2.2 m
total savings: € 0.8 m
SUSI Energy Efficiency Fund
25% energy initial savings: investment: € 0.20 m € 4.0 m 5% service payments € 0.04 m
guaranteed minimum savings
SUSI Energy Efficiency Fund
70% energy savings: € 0.56 m
large industrial plants or buildings that meet the requirements of the fund. The ESCO assesses the energy savings potential achievable through the retrofitting of lighting, heating, cooling, building management systems, etc. If the project is approved, the fund will conduct Due Diligence and assess the Investment. Depending on the contractual structure the fund signs a contract with the owner/client receiving typically 50-90% of the energy savings over a 4-12 year period. Technology risks are mitigated by the ESCO, which issues a minimum savings guarantee. At the end of the contract the full project rights and energy savings are handed over to the owner/client.
Investment of € 4.0 m and return of € 5.6 m over 10 years (less operating costs, fund costs, etc.; not taking into account inflation )
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI Energy Efficiency project focus and investment criteria: Types of projects
Project selection criteria
Industrial processes
electric motors pumps heat recovery etc.
Buildings
heating, ventilation and air conditioning building management systems lighting etc.
potential projects project duration of 4-12 years investment volume of EUR 3 to 30 m focus on Western Europe and EUR positive environmental impact
proven technology Public infrastructre
SUSI Energy Efficiency Fund
street lights hospitals public swimming pools public facilities etc.
solid credit rating of customer projects
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
Typical projects of the SUSI Energy Efficiency Fund Project
Implemented efficiency measures
Simple payback
Major German car manufacturer
Complete replacement of the lighting system with LED lights
2.3 years
€ 3.5 mio
Service contract with SUSI as counter party
Three school buildings in Baden-Wurttemberg
Execution of various energy efficiency measures
8.7 years
€ 2.0 mio
Forfaiting of customer payments from EPC contract
Retrofit of residential building in Madrid
Efficiency measures concerning HVAC1 and building management system
8.7 years
€ 1.9 mio
Forfaiting of customer payments from EPC contract
Shopping mall in Scandinavia
Retrofit of ventilation, heating system and building management system
8.0 years
€ 1.4 mio
Forfaiting of customer payments from EPC contract
Building portfolio retrofit large German logistics company
Efficient heating system incl. CHP2 plants; LED lighting and building management system
€ 10.1 mio
Savings sharing agreement integrated in Facility Mgt. contract
Retrofit of glass plants of international manufacturer in Germany
Various measures including installation of waste heat recovery and CHP2 plant
International multi-site project of generics producer
Various energy efficiency measures
Efficient retrofit of public hospital in Germany
Various energy efficiency measures, especially retrofit of HVAC1 systems
7.6 years
6.7 years
Investment
€ 4.2 mio
Financing structure
EPC contract with off-balance lease solution
3.9 years
€ 8.8 mio
Frame contract with ESCO and individual service contracts with plants
6.1 years
€ 1.0 mio
Forfaiting of customer payments from EPC contract
1) HVAC: Heating Ventilation Air Conditioning; 2) CHP: Combined Heat and Power SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI helps ESCOs to build up their business SUSI offers Committed financing allocation Reassures ESCOs that enough financing is available to cover their pipeline. Aligned offering process Timely financing offer that enables fast customer response Standard contractual setup Reduces due diligence effort. Permits quick and efficient execution Flexible finance structures Variable cash flow model Savings sharing participation / indexation Off-balance sheet structures for customers Pre-defined cost-plus financing Allows quick fixed price offers Assures financing is available before taking the solution to market
SUSI Energy Efficiency Fund
Benefits for ESCO/Contractor
Attractive and competitive offer to their customers
No owner capital requirement
Innovative financing offers and One-stop financing solution
Access to third party project pipeline
Long term maintenance and operations contracts
Improved scalability
Reduced transaction costs
Stable, long-term partnership
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SUSI Energy Efficiency Fund 01 Summary >> 02 About SUSI Partners >> 03 Business model >> 04 Typical projects >> 05 Business opportunities
SUSI is looking for strategic partners to conduct energy efficiency projects
Multi win character The business model has a multi win character and brings benefits for the Technology Partner, the Client, the Fund and the Environment.
Bridging the financial gap Frequently, energy efficiency projects are being rejected because of budget constraints of the client. The SUSI Energy Efficiency Fund bridges this financial gap and offers the possibility to quickly implement energy-saving measures, regardless of tight investment budgets.
Reference project for potential assessment Based on financial/technical parameters of selected projects the eligibility for financing will be assessed in a first step, and secondly a reference project can be implemented within a short time frame.
Leveraging partnership is essential to accessing potential market Working with agreed-upon terms allows all parties to work in a collaborative mode, while having pre-defined and pre-packaged financing solutions reveals growth potential into new market segments, as well as currently underserved segments.
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund
Your contacts at Sviluppo chimica and SUSI Partners
Stefano Fissolo Vice President SUSI Energy Efficiency AG Bellerivestrasse 36 CH-8008 Zürich Tel: +41 44 386 98 20 Mob: +41 76 822 98 20
[email protected]
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund
Disclaimer
The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities relating to any of the products referenced herein, notwithstanding that any such securities may currently be offered to others. Any such offering will be made only in accordance with the terms and conditions set forth in the Private Placement Memorandum pertaining to SUSI Energy Efficiency Fund (the “Fund”). Investments in the Fund will be subject to substantial investment restrictions and will be illiquid. Prior to investing, investors are strongly urged to carefully review the Private Placement Memorandum of the Fund (including the risk factors described therein), the Subscription Agreement to ask such additional questions of the investment manager of the Fund as they deem appropriate, and to discuss any prospective investment in the Fund with their legal and tax advisers in order to make an independent determination of the suitability and consequences of an investment. Investment in the Fund is suitable only for sophisticated investors for whom an investment in such a Fund does not constitute a complete investment program and who fully understand, and are willing to assume, the risks involved in the Fund. The role of any particular advisory board member may not be construed as his/her endorsement of any or all of SUSI Partner AG's representatives, activities, products, plans or strategies. This presentation is confidential and may not be reproduced or transferred, in whole or in part, to any other party without the express written consent of SUSI Partners AG. © Copyright 2015 SUSI Partners AG. All rights reserved.
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SUSI Energy Efficiency Fund
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