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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.
Page 2 Financial Services
Agenda
Cities and investment needs 1
Criteria for successful projects 2
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 3 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
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 4 Financial Services
Increasing importance of financing in city-context
Europe
Asia-Pacific
North and South America
Africa, Middle East, CIS
Source: SFS Paper, Sustainable Cities, 2011
Dr. Detlef Pohl, Siemens Venture Capital
Budget constraints at cities with concurrently essential needs for action lead to high importance of private sector finance
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 5 Financial Services
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
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 6 Financial Services
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
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 7 Financial Services
Agenda
Cities and investment needs 1
Criteria for successful projects 2
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 8 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
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 9 Financial Services
Technology startup ChargePoint/US
Dr. Detlef Pohl, Siemens Venture Capital
§ 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
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 10 Financial Services
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
Dr. Detlef Pohl, Siemens Venture Capital
§ „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
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 11 Financial Services
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
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 12 Financial Services
Financing for Thameslink Rolling Stock Project
Dr. Detlef Pohl, Siemens Venture Capital
§ 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
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 13 Financial Services
Thank you for your attention.
h"p://www.thecrystal.org
Dr. Detlef Pohl, Siemens Venture Capital
2013-10-15
Unrestricted © Siemens AG 2013. All rights reserved.
Page 14 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
Author/Department