Transition Finance: Stefan Hess

Stefan Hess Head of Group Financing, Rating & Bank Relations, Siemens Energy AG

Frank Waechter Global Director Treasury & Insurance, PUMA SE

Henrike Pfannenberg Leiterin des ESG Kompetenzteams Unternehmensbank, Deutsche Bank AG

Transition Finance: Wie ESG-Links die Transformation fördern

Referenten Gastgeber

© Siemens Energy, 2021Siemens Energy is a registered trademark licensed by Siemens AG.

Siemens Energy AG

23. März 2021

Stefan Hess, Head of Group Financing, Rating & Bank Relations


Führend im Energiebereich*

Präsent in mehr als

90 Ländern

Weltweit ca.

92.000 Mitarbeiter

Umsatzerlöse im GJ 2020

27,5 Mrd. €

Ein Sechstelder globalen Stromerzeugung

basiert auf unseren Technologien

1 Mrd. € Jährliche Investition

in FuE

>50%Umsatz mit erneuerbaren

Energien und Übertragungs-

technologien

* Alle Angaben: Stand 30.09.2020

23.03.2021 2

© Siemens Energy, 2021

Siemens

Unser Set-up

Das führende „Pure Play“-Energieunternehmen

Siemens Energy AG


ProdukteLösungen

Services

Unser Angebot

ErzeugungÜbertragung

Speicherung

Entlang der Wertschöpfungskette Breites Technologieportfolio

Von konventionellen

zu erneuerbaren

Energien

Siemens Energy AG

Gas and Power („GP”)Siemens Gamesa

Renewable Energy („SGRE”)

Generation Industrial

Applications

Transmission 67 %-Beteiligung

Central Distributed

Onshore Offshore

New

Energy

23.03.2021 3

Siemens Energy is a registered trademark licensed by Siemens AG.


Verringerung der

CO2-Emissionen und des

Energieverbrauchs bei

industriellen Prozessen

Transport

und Speicherung

von Energie

Stromerzeugung

mit niedrigen oder

Nullemissionen

4

Siemens Energy is a registered trademark licensed by Siemens AG. © Siemens Energy, 2021

23.03.2021

© Siemens Energy, 2021© Siemens Energy, 2021

Unsere Verpflichtungen …

Klima-

neutral im eigenen Betrieb bis 2030

„Grüner“

Strom 100 % beim eigenen

Energieverbrauch bis 2023

Geschlechter-

diversität25 % bis 2025 | 30 % bis 2030

(weibliche Führungskräfte auf

Management-Ebene 1 und 2)

Führend bei

Sicherheit Vorreiter beim Thema

Sicherheit in unserer Branche

… unterstützen die Ziele für nachhaltige Entwicklung der Vereinten Nationen

23.03.2021 5


Unser Set-upNachhaltigkeit steht im Mittelpunkt unseres Handelns


€ 3 Mrd syndicated revolving Credit Facility

GHG Emissions (CO2-Equivalent in t)

Reduzierung

Lost Time Injury Frequency Rate

(LTIFR)

• Unser Status*): 292kt CO2 Emissionen (Scope 1+2)

• Unser Ziel: Klimaneutral im eigenen Betrieb bis 2030

• Unser Status*): 0.27

• Unser Ziel: Jährliche Verbesserung, individuelle Ziele

für die Divisionen

€ 3 bn Revolving Credit Facility

▪ Laufzeit: 3 Jahre mit zwei jeweils einjährigen Verlängerungsoptionen

▪ Syndikat: 28 internationale Banken

▪ ESG Margenkomponente

ESG KPIs:

*) FY 2020

23.03.2021 6



Danke

23.03.2021 7

MA

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PUMA‘s ESG-LINKED FINANCING STRUCTURE

MA

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AGENDA

□ PUMA 2020 in easy numbers

□ Sustainability approach at PUMA

□ Deep dive More Sustainable Products

□ PUMA’s 10FOR25 Sustainability Targets as a basis for ESG-linked financing

□ Discussion

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PUMA 2020 IN EASY NUMBERS

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PUMA SUSTAINABILITY POSITIONING

DEFENSIVE PROGRESSIVE

COMPLIANCE FOCUS ONLY

COMPLIANCE & RISK

MANAGEMENT+

INDUSTRY COLLABORATION

IMPROVE INTERNAL & EXTERNAL

PERCEPTION AND UNDERSTANDING

AMONG LEADING BRANDS ON SELECTED

SUSTAINABILITY TOPICS

(CLIMATE / WATER / PLASTIC / HUMAN RIGHTS)

SUSTAINABILITY AS STRATEGIC MARKET

DIFFERENTIATOR

2025

MA

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MAINSTREAMING SUSTAINABILITY

SUSTAINABLEBUSINESS

✓ Economic✓ Environmental ✓ Social

SUSTAINABILITY SEPARATE FROM BUSINESS

SUSTAINABILITY EMBEDDED IN BUSINESS DECISIONS

BUSINESS

SUSTAINABILITY

MA

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SUSTAINABILITY TARGETS •

ENVIRONMENTAL P&L(SDG 7, 12)

CONTINUE TO REPORT ON THE EP&L

EVERY YEAR

CHEMICALS(SDG 3, 6)

ZERO DISCHARGE OF HAZARDOUS CHEMICALS FROM OUR SUPPLY CHAIN BY

2020

MATERIALS(SDG 12, 15)

MORE SUSTAINABLE ALTERNATIVES USED FOR OUR KEY MATERIALS (COTTON, POLYESTER, LEATHER, CARDBOARD, PU)

WATER & AIR(SDG 6)

INDUSTRY GOOD PRACTICE FOR CONSUMPTION AND EFFLUENT

TREATMENT IS MET BY 90% OF PUMA KEY SUPPLIERS WITH WET PROCESSING

FACILITIES

CLIMATE(SDG 13)

SCIENCE BASED CO2 REDUCTION TARGET TO BE DEVELOPED (2016) AND

IMPLEMENTED (2020)

HUMAN RIGHTS(SDG 3, 4, 5, 10)

EMBED HUMAN RIGHTS ACROSS OUR OPERATIONS AND SUPPLIERS. POSITIVELY IMPACT THE COMMUNITIES WHERE PUMA

IS PRESENT

STAKEHOLDER ENGAGEMENT

(SDG 17)

STAKEHOLDER DIALOGUEPUBLIC REPORTING (GRI)

CONSUMER INFORMATION

HEALTH & SAFETY(SDG 3)

ZERO FATAL ACCIDENTS; INJURY RATE BELOW INDUSTRY AVERAGE

GOVERNANCE(SDG 8, 16)

MAINTAIN AND RUN A STATE OF THE ARTCOMPLIANCE MANAGEMENT SYSTEM (INCL.

ANTI-CORRUPTION MEASURES)

SOCIAL COMPLIANCE(SDG 3, 5, 8 AND 10)

COMPLIANCE WITH INDUSTRY STANDARDS / ILO CORE CONVENTIONS FOR ALL KEY

SUPPLIERS, INCLUDING TIER 2&3

COMMITTED TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

10 FOR 20

TIME4CHANGE

• 100% ORGANIC COTTON

• CLIMATE ACTION MESSAGE

FASHION FORWARD DESIGNS

MEANINGFUL STORY

• REDUCE WASTE

• RECYCLE PLASTIC INTO POLYESTER YARN

• CREATE JOBS

• LAUNCH DATE: FEBRUARY2020

RE

.G

EN

P

RO

CE

SS

AH21

GREEN FINANCING ARRIVED WITH PUMA

FINANCING OVERVIEW

SCHULDSCHEIN LOAN (1+2)

ST CREDIT LINES COMMITTED(VARIOUS SUBS)

FINANCIAL INSTRUMENT(M EUR)

230

REVOLVING CREDIT FACILITY(7 ➔ 9 CORE BANKS, 50,0M ➔ 88,9M EACH)

GREEN

1.436

Dec 31st, 2020TOTAL

800

SCHULDSCHEIN DARLEHEN (3)GREEN 250 *

156

* 235 m EUR paid out in early Jan only

PUMA’s BETTER FINANCING INCL. ESG-LINKSHARE OF TOTAL

73%

5 out of 5 ESG-KPI's reached






Full Bonus 0,05%

Mid Bonus 0,03%

Low Bonus 0,01%

No effect 0,00%

Low Malus -0,03%

Full Malus -0,05%

Tested in Q2/2022 to be applied for2023 & 2024 and in Q2/2024 to beapplied for 2025

4 or 5 out of 5 ESG-KPI's reached






Full Bonus 0,025%

No effect 0,000%

Full Malus -0,025%

Full Bonus 0,009%

No effect 0,000%

Full Malus -0,009%

uti

lizat

ion

com

mit

men

t

fee

Tested yearly in Q2 applied thereafteruntil the next test.

AREA TARGET BASE 2019 2020 2021 2022 2023 2024 2025 COMMENTCLIMATE CHANGE

% Renewable Electricity used at

PUMA Entities 79% 81% 83% 88% 92% 96% 100%

Renewable Electricity:Onsite Generation, RE

Tariffs, Recs, Etc.Entities: Owned And

Operated Puma Offices, Stores & Warehouses

BIO-DIVERSITY

100% of Cotton, Polyester Leather

& Down from certified sources

Cotton: 82 %Polyester: 98%Leather: 98%Down: 100%

1 out Of 4 = 100%

2 out Of 4 = 100%

2 out Of 4 = 100%

3 Out Of 4 = 100%

3 out Of 4 = 100%

100%

Certified Sources: Including BCI, Bluesign, Oekotex, LWG, RDS, Etc.

WATER & AIR

Reduce water con-sumption at PUMA Core Suppliers by

15%

105,5 M3/Ton104,4

M3/Ton102,3

M3/Ton98,7

M3/Ton95,0

M3/Ton92,4

M3/Ton89,7

M3/Ton

Covers Textile Fabric Suppliers (Tier 2) where

biggest water consumption occurs

PLASTIC & OCEANS

Eliminate Plastic bags from

PUMA Stores431 Tons Of Plastic Bags

400 Tons Of

Plastic Bags

200 Tons Of

Plastic Bags

100 Tons Of

Plastic Bags

0 Tons Of

Plastic Bags

0 Tons Of

Plastic Bags

0 Tons Of

Plastic Bags

Covers all PUMA owned and operated stores

globally for consumer shopping bags

HUMAN RIGHTS

Expand community engagement to

25.000 hours per year

21.433 Hours12.000 Hours

23.000 Hours

23.500 Hours

24.000 Hours

24.500 Hours

25.000 Hours

As defined in PUMA Community Engagement

Program

ESG-KPI‘S @ PUMA

GREEN FINANCING ARRIVED WITH PUMA

PU

MA

Ta

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bil

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FO

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AS

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ISN’T “GREEN FINANCING” A PARADOXON?

FRANK’S FOOD FOR THOUGHT

“ESG-LOANS ARE LESS GREEN-WASHING, THAN AVOIDING (MORE EXPENSIVE)

BROWN-BASHING !”

➔With first evidence from studies about better performance of sustainable corp’s, investors and banks see less risk with

their investments / loans

➔With banks offering no premiums for green loans, at least mid-term, upcharge is to be expected for non-green loans.

➔While standards are developing for ESG-investments, green KPI’s / acceptable use of proceeds for ESG-financing

are still under (creative) construction.

➔ Silos within corporates have to be broken up, finance have to be involved into sustainability and vice versa

Transition Finance: Stefan Hess

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