Financing New Technologies for Infrastructure and Cities€¦ · Financing New Technologies for...

Unrestricted © Siemens AG 2013. All rights reserved. Financial Services

Financing New Technologies for Infrastructure and Cities Dr. Detlef Pohl (Corporate VC) Managing Partner Siemens Financial Services, Venture Capital

October 15th 2013

2013-10-15

Unrestricted © Siemens AG 2013. All rights reserved.

Financial Services

Agenda

Cities and investment needs 1

Criteria for successful projects 2

Dr. Detlef Pohl, Siemens Venture Capital

2013-10-15


Financial Services

Sustainable

Competitive

Livable

The basic needs of a city drive the market for intelligent infrastructure solutions

§  Intermodal mobility / efficient and effective mobility

§  Sustainable and decentralized energy supply

§  Efficient water supply and waste management

§  Security

§  Rigorous reduced carbon footprint of the entire city (e.g. smart buildings, transportation)

§  Financing

Requirements are drastically changing from closed island solutions / single products to interlinked intelligent infrastructure solutions


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Increasing importance of financing in city-context

Europe

Asia-Pacific

North and South America

Africa, Middle East, CIS

Source: SFS Paper, Sustainable Cities, 2011


Budget constraints at cities with concurrently essential needs for action lead to high importance of private sector finance

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Significant investment gap

1)  Funds that governments can allocate in the development of infrastructures 2)  Funds potentially required from the private sector, including equity and dept Source: BCG analysis

Investment gap2)

$20-25 trillion

Public funding1)

$15-20 trillion

Global infrastructure investment needs until 2030

$35-40 trillion Including $7-8 trillion for transport infrastructure


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Increasing complexity Shorter contract periods with higher margins

Increasing own equity

Changes in the financial environment

t €

Credit financing

equity

margin (€)

Contract period

New and still unproven technologies are applied causing trouble for the classical financing structures


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Agenda

Cities and investment needs 1

Criteria for successful projects 2


2013-10-15


Financial Services

The goal: create win-win situations that produce stable earnings

From an unstable equilibrium…

…to stable earnings

Win-win Situation

+5-10%

Error intolerance


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Technology startup ChargePoint/US


§  Venture Capital equity investment §  Minority investment, co-investor §  Observer seat

§  Expand business in the US §  Leadership in public charging stations in US §  Extend partnership

§  Charging infrastructure for plug-in hybrids and all-electric vehicles

§  Charging station HW; portals for drivers, fleet operators, hosts, utilities; NOC

§  Networked approach, using cellular network for real-time management of transactions, status monitoring and customer support

Founded in 2007,

Based in Campbell, CA

§  Charging spots: 13,573

§  EV drivers: 46,228

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Bangalore International Airport Ltd. (BIAL)

§  The airport went into operations on 2008 and shows annual growth rates of more than 30%

§  about 13 million passengers a year

Bangalore International Airport Ltd. (BIAL), India


§  „From a greenfield to an innovative airport“ §  India’s first airport PPP project §  Public Private Partnership

§  Overall project management §  Engineering, supply, medium and commissioning of e.g.

energy supply, medium and low-voltage power distribution, IT-systems etc.

§  Financing participation by SFS

§  Only 33 months from breaking ground to starting operations

§  Exemplary implementation of an infrastructure project in the emerging market of India

§  Project management and technical solutions from Siemens

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Founded in 2003

Based in Berkeley, CA

§  Rapidly accelerating deployments

§  Venture Capital equity investment §  Minority investment, co-investor §  Board seat

§  Partnership with Siemens Infrastructure & Cities business

§  International expansion §  With over 150 customers in 40 US states, and 10

countries

§  On-street integrated suite of wireless vehicle detection solutions

§  system requires no trenching, and can be installed wherever detection is needed, regardless of pavement condition. VDS240 performs flawlessly in all weather and lighting conditions

§  2010 Inc. Magazine top 500 - 80th fastest growing private companies in the US

§  Ranked 35th on 2011 Deloitte’s Technology Fast 500TM

Technology startup Sensys Networks/US


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Financing for Thameslink Rolling Stock Project


§  Thameslink is an excellent example to demonstrate how SFS support could provide a unique advantage to the wider group to ensure it secures a significant contract. It shows how a financial partnership with our Sector can lead to overall success for Siemens

§  The total project will be worth more than ₤3 billion to Industry Mobility. SFS’ strong commitment to the project is reflected in their decision to invest equity, subordinated debt and provide a finance solution for the depot facilities

§  The Department for Transport (DfT) in UK established a major bid process to procure new rolling stock including the construction and operation of maintenance depots for 20 years. On 16th June 2011 the Minister of State for Transport announced that the preferred bidder for the supply and maintenance of the new Thameslink fleet will be Siemens Plc

Thameslink Rolling Stock Project

Equity & Debt Financing

Total project volume: more than ₤3 billion

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Thank you for your attention.

h"p://www.thecrystal.org


2013-10-15


Financial Services

Published by

Siemens Venture Capital GmbH Detlef Pohl

Managing Partner

Otto-Hahn-Ring 6

81739 Munich, Germany

Phone +49 (0) 89 636 46112

E-Mail [email protected]

siemens.com/finance

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