* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download responsAbility - CSR
Survey
Document related concepts
Internal rate of return wikipedia , lookup
History of private equity and venture capital wikipedia , lookup
Corporate venture capital wikipedia , lookup
International investment agreement wikipedia , lookup
Private equity wikipedia , lookup
Investment banking wikipedia , lookup
Private equity in the 1980s wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Socially responsible investing wikipedia , lookup
Leveraged buyout wikipedia , lookup
Private equity secondary market wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Private equity in the 2000s wikipedia , lookup
Transcript
«Combining values with value» - an introduction to development investments February 2017 Christian H Thommessen Board Member, responsAbility Investments AG e: [email protected] t: +47 91 888 000 Global sustainability challenges – 1.4 billion p.a. investment needed Investments The Global Goals for Sustainable Development 165 BUSD ? BUSD 58% 80 BUSD 42% Private investments Public funds Yearly private, commercial investment needs: 600 billion $ (42%) responsAbility Nordics AS 2 Global sustainability challenges – an investment opportunity Private investments break-down BUSD/year 2015-2030 100 % 132 156 Unmet demand in developing countries 165 BUSD 110 BUSD * 80 BUSD 4 11 76 50 % 74% 73% 72% No access to electricity Unbanked Living in moderate poverty 216 Transport infrastructure Water supply Access to electricity 0% Agriculture and food security Telecom infrastructure Power infrastructure responsAbility Nordics AS 3 Models for addressing sustainability issues Business attractive Development investments SRI/ESG Green bonds Illegal Harmful Neutral to positive S.I.B do-good/common interest Venture Philantropy Business unattractive O.D.A. Philantropy responsAbility Nordics AS 4 Development Investments offer scale and return Investing in frontier and emerging markets with measurable triple bottom line objectives: • helping people lift themselves out of poverty • positive environmental contribution • market-based financial returns responsAbility Nordics AS 5 Development Investments – addressing «the next 3 billion» 1st billion (OECD) 2nd billion (Advanced emerging markets) The next 3 billion The bottom billion responsAbility Nordics AS • • • • empowerment, not aid need support to unleash own resources large purchasing power development investing/microfinance • • limited resources aid, philantropy 6 Development Investment portrait: Saraplast Investment opportunity Business case Financials (USD million) 5 10 4 8 6 4 Pre investment 12 3 2 1 2 - FY13A FY14A FY15P FY16P Revenue (Left) Inadequate sanitation costs India ~ 6.4% of GDP Saraplast is India’s leading provider of portable sanitation services with around 3,000 portable toilets across seven cities Serving construction sites and events The company addresses the lack of access to sanitary installations of 600 million Indians FY17P FY18P FY19P EBITDA (Right) Financials: responsAbility invested USD 1.5m in March 2013 and has been helping the company to scale its operations Stable revenue growth and scalable Development impact: 155m litres of waste collected > 500,000 unique users reached responsAbility Nordics AS 7 Development Investment portrait: Mountain Hazelnuts Ventures, Bhutan Business Model: Investment Rationale: World-class hazelnut production in Bhutan, planting 10 million hazelnut trees with local farmers on degraded land. Attractive financial returns (30%+ IRR – MOI 5x-6x) High developmental and environmental return Income generation for farmers Total annual production (at maturity) of the company will be 40,000 metric tons Stabilizing top soil, reducing erosion and build soil carbon, Sequester ~1.5 million tons of CO2 Planting up to 15,000 orchards in Bhutan Large and growing international market for hazelnuts, with interesting price dynamics Visible exit with one of largest confectionary groups in the world responsAbility Nordics AS 8 Development Investment portrait: Market leader in organic food and feed business (Africa & Asia) Investment opportunity Business case Financials (USD million) 400 300 200 100 0 2014 2015 2016 2017P 2018P 2019P 2020P 2021P Revenue EBITDA Financials: High growth company with integrated supply chain; sourcing, processing and exporting Operations across 4 countries; India, Philippines, Ethiopia, Uganda responsAbility looking to invest approx. USD 20m to set up local processing facilities and expand product portfolio to include additional high-margin organic products Sourcing from over 28,000 certified farmers, coverage of 153,000+ acres of farm land & 125,000 acres of wild/forest land Strong growth & opportunities to scale: 30% IRR target on investment Diversified across 3 verticals in organic foods and fibre industry: Engaged in many farming projects across its network of certified farmers to supply new farming equipment Generates consistent crop yields, safe farming practices, sustainable supply of crops and stable pricing Working with 28,000 certified smallholder farmers in developing countries Animal feed; soya meal, oil and bean Organic food; sugar, spice, oilseeds, cereals, vanilla, cocoa Whole body; virgin coconut oil and cotton Development impact: responsAbility Nordics AS 9 Development Investments – a rational diversification strategy Investee markets Western Markets • • • 1 billion people 1-2% GDP Growth Mature market segments • • • 3+ billion people 4-6% GDP Growth Underserved market segments • 50% lack access to energy • 70% lack access to finance • 60% lack access to education responsAbility Nordics AS 10 responsAbility – a leading private development investor responsAbility holds 12.5% of all private sector DI AuM and 8% of all DI AuM responsAbility is active in the three most relevant sectors DI AuM composition total 40 bn Most relevant DI sectors 16,0 3 bn 14,0 15 bn 21bn USD bn 12,0 10,0 8,0 6,0 4,0 2,0 - DFIs Private Sector responsAbility Source: GIIN 2016, responsAbility analysis responsAbility Nordics AS 11 responsAbility investments AG – a global leader • 3,1 bln USD AuM -> invested in 546 companies in 96 countries • Investors; Fin.Institutions, Pension Funds, DFI’s and small savers • Owned by Swiss banks + employees -> regulated by FINMA, CSSF, Finanstilsynet ++ Oslo Luxembourg Paris Zurich, HQ Geneva Hong Kong Mumbai Bangkok Nairobi Lima responsAbility Nordics AS 12 Dynamic, risk-return focused investment strategy 16.3% Central Asia 6.2% 3.9% Other Eastern Europe 7.8% Middle East and North Africa 26% Asia- 10.9% Pacific Sub-Saharan Africa 16.2% South America Investment volume per country as of 30.12.2016 more than 3% 1-3% less than 1% responsAbility Nordics AS Investment volume per region in % of total, as of 30.12.2016 % 13 Seeking value and values – three sectors and two asset classes Finance Agriculture Energy Private Debt financing Microfinance, SME* banks Agriculture value chain Renewable Energy, Energy Efficiency, Energy access Private Equity investments Microfinance, SME* banks, insurance Agriculture value chain Renewable Energy responsAbility Nordics AS 14 Our Milestones – USD 3.1 mill AuM Global Agriculture Private Equity Finance responsAbility Fair Agriculture Fund Agriculture Energy AuM in m USD responsAbility Voncert II responsAbility Renewable responsAbility Energy Holding Financial Inclusion Fund responsAbility Voncert I * Mixed responsAbility MikrofinanzFonds responsAbility Global Microfinance Fund responsAbility Energy Access Fund responsAbility Microfinance Leaders responsAbility Ventures I Microfinance Enhancement Facility Global Climate Partnership Fund responsAbility Participations AG responsAbility BOP Investments responsAbility Nordics AS 15 Investment Solutions Fund name responsAbility Global Microfinance Fund Finance Agriculture Energy responsAbility SICAV (Lux) MikrofinanzFonds responsAbility SICAV (Lux) Microfinance Leaders Target return* AuM Inceptio n Availability Debt 3 - 5% USD 1’073 m 11/2003 Monthly Debt 3 - 5% EUR 585 m 05/2007 Monthly Debt 4 - 7% USD 278 m 11/2006 Monthly IRR 15% CHF 139 m 05/2012 On request 3 - 5% USD 213 m 12/2011 Monthly Equity** IRR 15% (net)** USD 150 m** 2017** On request** Debt Various USD 331 m 12/2009 On request Equity IRR 18% USD 25 m 12/2013 On request Debt 3 – 4.5% USD 34 m 03/2015 Closed Investment category responsAbility Participations AG Equity responsAbility Fair Agriculture Fund Debt Planned Agriculture Private Equity** Global Climate Partnership Fund S.A., SICAV-SIF responsAbility Renewable Energy Holding responsAbility Energy Access Fund S.A., SICAV-SIF responsAbility Nordics AS 16 ResponsAbility’s Impact Themes Our focus areas Basic needs: # of customers reached volume sold or exported # / volume certified / traceability system Well being: Revenues earned and taxes paid # / volume of higher quality products produced and / or consumed Decent Work: # of jobs created + wages earned # smallholder farmers reached + earnings by smallholder farmers Average agricultural yield (client or supplier) Healthy ecosystem: Protected land area Ecological restoration management area Ecosystem services provided Area of land reforested / deforested Climate stability and Infrastructure: Greenhouse gas reductions Use of pesticides Water savings / water consumption Area of land / water sustainably managed Please refer to the disclaimer pages and/or the appendixes for the applicable legal information Source: Cambridge University and United Nations Sustainable Development Goals, 2016; Indicators are not IRIS aligned 17