October 15 th 2013 Financing New Technologies for Infrastructure and Cities Dr. Detlef Pohl (Corporate VC) Managing Partner Siemens, Venture Capital
Agenda 1 Cities and investment needs 2 Criteria for successful projects Page 2 2013-10-15
The basic needs of a city drive the market for intelligent infrastructure solutions Sustainable Competitive Livable 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 Page 3 2013-10-15
Increasing importance of financing in city-context Europe Asia-Pacific North and South America Africa, Middle East, CIS Budget constraints at cities with concurrently essential needs for action lead to high importance of private sector finance Source: SFS Paper, Sustainable Cities, 2011 Page 4 2013-10-15
Significant investment gap Investment gap 2) $20-25 trillion Public funding 1) $15-20 trillion Global infrastructure investment needs until 2030 $35-40 trillion Including $7-8 trillion for transport infrastructure 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 Page 5 2013-10-15
Changes in the financial environment Increasing own equity Shorter contract periods with higher margins Increasing complexity t margin ( ) Credit financing equity Contract period New and still unproven technologies are applied causing trouble for the classical financing structures Page 6 2013-10-15
Agenda 1 Cities and investment needs 2 Criteria for successful projects Page 7 2013-10-15
The goal: create win-win situations that produce stable earnings From an unstable equilibrium Error intolerance Win-win Situation +5-10% to stable earnings Page 8 2013-10-15
Technology startup ChargePoint/US Venture Capital equity investment Minority investment, co-investor Observer seat Founded in 2007, Based in Campbell, CA Charging spots: 13,573 EV drivers: 46,228 Expand business in the US Leadership in public charging stations in US Extend partnership Charging infrastructure for plug-in hybrids and allelectric vehicles Charging station HW; portals for drivers, fleet operators, hosts, utilities; NOC Networked approach, using cellular network for realtime management of transactions, status monitoring and customer support Page 9 2013-10-15
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 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 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 Page 10 2013-10-15
Technology startup Sensys Networks/US Venture Capital equity investment Minority investment, co-investor Board seat Founded in 2003 Based in Berkeley, CA Rapidly accelerating deployments 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 Page 11 2013-10-15
Financing for Thameslink Rolling Stock Project 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 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 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 Page 12 2013-10-15
Thank you for your attention. h"p://www.thecrystal.org Page 13 2013-10-15
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 detlef.pohl@siemens.com siemens.com/finance Page 14 2013-10-15 Author/Department