DEG Business Support Services

Transcription

1 DEG Business Support Services Resource and Energy Efficiency Checks, The Private Sector Support Portfolio of DEG Circular Economy Conference, Environmental Campus Birkenfeld, 25 October, 2017

2 Part of a strong group DEG, a subsidiary of KfW Domestic Promotion International Financing We promote Germany We ensure internationalisation We promote development Business area Mittelstandsbank Business area Privatkundenbank Business area Kommunalbank KfW IPEX-Bank Business area KfW Development Bank DEG Promotion of SMEs, business start-ups Funding housing construction and refurbishment as well as education Financing of municipal infrastructure projects and global loans Germany/Europe Agency Business for the Federal Government International project and export finance Developing and emerging-market countries: Financial cooperation Developing and emerging-market countries: exclusively. Private sector promotion Promotion of environmental and climate protection 2

3 DEG at a glance Facts and figures Founded 1962 Employees 539 Headquarters Shareholder New business Portfolio Equity Balance sheet total Cologne KfW, Frankfurt EUR 1.6 billion EUR 8.6 billion EUR 2.4 billion EUR 5.8 billion DEG company presentation 3

4 DEG Financing business: New committments 2016 by customer cluster Target Group for Resource and Energy Efficiency Checks (about new financing projects each year) Corporates 579 million euros (37%) Financial institutions 433 million euros (28%) Total of EUR 1.6bn Funds 310 million euros (20 %) Project finance 231 million euros (15%) DEG company presentation 4

5 DEG s development programs: Overview Promotion How much and for whom? What is co-financed? By whom? developpp.de up to 50 % of costs (max. EUR 200,000) for German/European companies Cofinancing of developmentally and economically sound projects, such as training centres, qualification of suppliers, improvement of water- and energy-supply systems, improvement of operational structures etc. Feasibility studies Business Support Service Climate partnerships up to 50 % of costs (max. EUR 200,000) German/ European companies annual turnover < EUR 500m up to 50 % of costs (max. EUR 200,000) DEG clients (German/ European & local enterprises) up to 50 % of costs (max. 200,000) German/European enterprises verification of the economic. technical and legal feasibility of investment plans (market studies, legal opinions and environmental studies etc.) in preparation of a specific investment Co-financing of pre-investment or accompanying measures which are directly linked to a DEG investment, e.g. the preparation of business plans Projects in the field of climate protection such as resource and energy efficiency measures Up-Scaling up to EUR 500,000 subsidy, repayable in the event of success <50 % of total investment German & local SMEs in developing countries Co-financing of innovative pioneering investments of SMEs on the brink of commercialisation (pilot phase) For more information regarding eligibility criteria and process: 5

6 DEG Business Support Services Our goal is to add value to every DEG-financing project BSS in a nutshell up to 50% non-repayable co-financing (max. 200 TEUR) for projects that enhance sustainability reduce risks of financing projects are additional to core business Access to institutional investors Secure sustainable growth Stimulate performance Support for the development of business plan or financial model Support for creating transparent group structures / intercompany relations Capacity building for meeting specific lender requirements Improve compliance, corporate governance structure, internal controls Improve financial management & controlling, Support for design & selection of software or IT system to improve business processes Mitigation of environmental & social risks Support human resource development Support supply chain optimization Identify and exploit resource and energy efficiency potential Support for product development / quality management measures 6

7 DEG Business Support Services Vision: Jointly establish a value creation plan for the DEG financing horizon I. Resource Management Resource and Energy Efficiency Check Example Reduction of costs Increase productivity Lower production risks Reduce environmental footprint II. Operational Improvements Value Added Maintenance Benchmark with peers Reduce maintenance costs Increase machinery uptime Optimize investments (new investment vs. lifetime extension) III. Professionalization Corporate Governance Study Improve compliance Align interests of all stakeholders Improve internal controls Optimize corporate structure IV. Human Resource Development HR Incentive and Optimization Study Identify gaps Increase productivity Improve quality Increase employee retention Sustainable VALUE Creation 7

8 Resource and Energy Efficiency Check (REC) Target Group and Consultants Target group Consultant Industrial companies with energy cost > 1 Mio USD/year focus: production facilities and energy provision Siemens, IfaS other industry specific experts All agribusiness companies focus: agricultural activities and food processing IfaS other industry specific experts Service sector (hotels, mall, etc.) with energy > 7% of overall cost focus: AC, lighting, building mangement, renewables Siemens, IfaS Local consultants to address regional specifics 8

9 REC- Possible areas of analysis: tailored to interest and needs of the company Energy Energy efficiency check (technical optimization, operational improvements) Analyze potential for alternative sources of energy (e.g. biomass) Waste/Recycling Recycling of by-products and waste Waste disposal system Water Assess exposure to water risk Analyze water treatment and saving technologies (e.g. water recovery) Water management: irrigation, process water Biomass Analyze economics and carbon footprint of alternative use of biomass e.g. as animal feed, energy, fertilizer Land/Soil Reduce erosion and risk of flooding Analyze organic fertilizers and alternative plant protection Improve and maintain soil fertility Mineral & Fossil Resources Product development Reuse of industrial waste (synthetic fibres) 9

10 REC Overall Concept and Structure Stage 1: REC 4-5 day On-site visit by an experienced consultant Analysis of the company s practices and identify resource & energy savings potential. Presentation of findings and recommendations to the company Draft/final report and discussion. List of improvement options, incl. quick-wins and estimates of costs and benefits. Stage 2: Individual Follow-up measure implementation support of REC recommendations. Typical follow up measures are: in-depth feasibility analysis of options identified in the REC introduction of an energy management system pilot projects for climate friendly solutions. The specifics are discussed on case by case basis with each company Structure Our Goal Initiate REC Follow-up measure 10

11 Example REC - Resource and Energy Efficiency Check Results In general Identified savings range between 10% to 30% of energy consumption. Mixture of: No investment necessary ( low hanging fruits) Small investments (financed from working capital or cash flow); payback < 1-2 year CAPEX: however, usually with pay-back times < 3-6 years No. Title Energy savings [kwh/a] Cost savings [k$/a] Water savings [m³/a] Example: Sugar mill, Central America Increased Investment capacity [t/a] [k$] Payback time [a] 1 Efficient Irrigation Systems ,9 B 2 Sugar straw to Biochar A 3 Air conditioning 267, A 4 Organic Rankine Cycle 2,000, , C Rating 5 Insulation of steam tubulars ,15 A+++ 6 Efficient Pumps and Motors 46, A 7 Installation of a PV plant 800, B 8 LED Illumunination 38, A 9 New Transportation Concepts - Using Railways

12 REC: Your Contact at DEG Business Support Services Development Programs and Business Support Sabine Moron Coordinator Business Support Services Phone Fax Development Programs and Business Support Constantin Brinklmann Investment Manager Business Support Services Phone Fax Development Programs and Business Support Bernt Hagenlocher Phone Fax Senior Investment Manager Business Support Services 12