IMPACT INVESTMENT CLIMATE POLICY PROJECT »PEOPLESHOME« ITALY 3,000 JOBS 10,000 SOCIAL HOUSES. based on 100 MEGAWATT SOLAR GRID POWER

Transcription

1 IMPACT INVESTMENT CLIMATE POLICY PROJECT»PEOPLESHOME«IMPACT INVESTMENT 3,000 JOBS 10,000 SOCIAL HOUSES based on 100 MEGAWATT SOLAR GRID POWER

2 ULRICH KRETZSCHMAR The issue of environment has never been more important than today. PEOPLESHOME Impact Investments link the renewable energy generation with the enhancement of infrastructure in emerging markets. Ulrich Kretzschmar, 2019 Ulrich Kretzschmar, Founder PEOPLESHOME & ASSOCIATES Initiating of Impact Investments Office Switzerland: PEOPLESHOME & Asssociates Niederdorfstrasse 67 CH Zurich Phone: CH +41 / Mail: info@peoples-home.org 2

3 THE BUSINESS Italy has a large scale of Solar yields with a moderate location characteristics and perform secure energy generation. The investment scheme is based on the provision of international equity (15.1%). An Industrial and Commercial Bank could be provide a loan of up to 89 million for 100 Megawatt in total. Assuming this loan financing the equity/loan ratio would be at 1 : 5.6 The project has a stable cash flow which is guaranteed by the national government (FiT/PPA calculation is at 0.21 /KWh) and has a strong value of salebility and is projected for 20 years (Dividends Guarantee 67.5%). Programmatic carbon income is no part of the financial projections. It is estimated up to 3.3% of the investment cost throughout the entire operating period. An infrastructure re-investment option out of energy and new housing revenues is integrated in the height of 636 Million. Resources Operating Income Energy 750,340,993 CM I / OIBDA Units SOCIAL HOUSES Invest 634,989,107 7,500 Turnover Rental 333 /mont 128,311,945 5% = EPC Final Pay / FAC (during 3 months) MAZURA & PARTNER 0.60 Industrial Bank Re-Investment Equity out of 20 Years Profit International Investment Contents PROJECT PARTICIPANTS 4 ESG IMPACT 5 CRC RISKS 6 FINANCIAL PROJECTION 7 IMPACT PROJECTION (option) National Grants 0.98 Italy - Capital Sources million L O A N E Q U I T Y 3

4 Project Developer NAZURA & PARTNER Lead Investor Family Office Country Investor National Institution or Entity let the Sun/Wind work with you Prime Contractor World Technology Leader Project Initiator PEOPLESHOME & Associates Operator National Company Power Purchaser National Electricity Provider Rent to Land Owner Local Municipality Private Knowledge Transfer International University Collaboration 4

5 ESG IMPACT & DIVIDENDS ENVIRONMENT - SOCIAL - GOVERNANCE 3,000 Jobs in Project ESG IMPACT 120,000 tons Pollution Prevention/Year 240 Secured Employment Months direct - indirect - induced COMMUNAL ADDED VALUE Education Local Economy Income Generating Activities TAX Energy Security Years Land Conversion (sqm x 100) - monthly Workers Purchase Power New Households with Energy ESG IMPACT 107, ,889 1,350,000 Italy Invest + Re-Invest 748,583, % Option: Re-Invest from Profits 635,725,255 External Capital Private Equity + Grants 89,025,579 23,832,804 ROI (20 years) 11.0 % Net Present Value 537,345,133 Profitability Index Price per installed Kilowatt ,018 Operating & Maintanance 1% / year 910,127 IRR (20 years) % DSCR , , , , , , , ,000 50, % Stake Italy MW Solar - Book Profits (2 x 50 MW) Years 0 Years Tax Free 2.25 million Dividends Claim in 20 Years annually Dividends Guarantee 126,500 5

6 CRC RISKS & INVESTORS RELATION COMMERCIAL RISK RETURN RISK COMMON RISK Credit & Finance Organization & Strategy Policy & Regulatory Contract & Operational EPC Performance Bond Technology & Installation Currency & Costs Government Guarantee Profit & Revenues Market & Politics Insurance Legal & Advocacy R O E N P V I R R 16.6% 537M 18.5% 6

7 FINANCIAL PROJECTION S U M M A R Y Italy Solar Power Plant 100 MW PP100-S--1018:450 I Volumes 1 USD = 0.88 EUR Houses (re-investment) 10, sqm from Year 3 F 0 Tourism Chalets (re-investment) 1, sqm - from Year 3 Renewable Energy 100 MW Solar Power Served Households 188,889 (á 75 Kwh/m) (340 GWh/Year - Gain 1,700) Village Land 875 ha /sqm Land Surface - Solar Power Park 200 ha 1.00 /sqm II Use of Capital 748,583,639 Price / KW Std. - Premium - IDC Technology & Production Machinery 101,779, Land 46,238,221 * Construction Material Houses 133,881,386 25% of the constructed Houses sold* * Labour Cost 378,018, per Month per Worker Infrastructure + Labour Cost 68,253,256 Management + Fees & IDC 9,714,577 incl. pre-costs Qualification Budget 100,000 Year 2 Social Village Package 10,598,214 III Capital Part ,184,693 Projected Equity 10% incl. 1.8% Grants shares actual MAZURA & PARTNER pre-costs 300, % 600,000 5 Years 0.5% National Loans 0 0.0% International Loans (IR ~4.5%) x 2 44,512,790 89,025, Years 84.8% National Grants 981, % International Grants 0 0.0% National Investments x % 0 370, % International Investments x 2 8,389, % 16,779,955 1,726, % Co-/Interims Investment x 2 0 Dividends/Year 0.0% 100.0% 102.2% IV Social Impact Jobs 3,000 Annually Rent (3.7 /sqm) Ø 18,227,239 25% of the constructed Houses sold Purchase Power per Year 1,350,000 per month V Common Numbers Houses / Year (construction) 500 Project Period 20 years House Sale Price 54,125 25% Profit, including House Plot 350 sqm each Tax to pay per Year 7,663,182 Average (20% tax rate) Project Locations Social Housing 10 spread in the Country Total Projected Carbon Credits 3,611,684 extra Income (not in the Finance Scheme) Power Purchase Agreement 0.21 per Kwh - Italy 0.18 EUR (1 USD : 0.88 EUR) Yearly FiT/PPA Progression 0.00 % Electricity Market Price KWh Electricity Price Inflation 2.00 % per Year Italy Surplus 198,120,372 (20 Years) - Net Income Operator 910,127 per Year 1. Exit 2020 VI R-O-E + Pre Costs Feasibility Study 275,000 Working Capital 345, ,927,224 Stuttgarter Model R-O-E (NPM 52.4%), ROI 11% 16.6 % 537,345,133 NPV C 0.1 7

8 FINANCIAL PROJECTION 300,000, ,000, ,000,000 Year Million 0 SPV Italy Ending Cash (cumulated) 1. Construction Year Ħ Loan End PayBack Ħ 35,000,000 IRR 18.45% 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, EQ 16.8 Million 15.1 % Equity Re-Investment Plan 15,000,000 10,000,000 5,000, ,000,000 IRR 18.45% Italy 100 MW - Solar Cash & Dividends Year 1-11 Net Cash Private Equity & Re-Investment, Annually Dividends if no Re-Invest 12,651,300 60% 40% 20% 00% -20% -40% 1,500,000 1,000, ,000 0 Operator (O&M) Italy Budget 18.2 Million Operating increase per Year 1% Return on Equity (ROE) SPV Italy ROE ~ 16.6% Equity hurdle Year 9 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 Tax 20% Operating Year 1-20 SPV Italy Net Income 1. Construction Year Year 1-10 Year KEY NUMBERS : MW Solar 1,700 2 x 50 Investment + Re-Investment 748,583,639 injected Equity 16,779,955 Loan 89,625,579 Supplier Final Payment (revenues) 5,088,998 Sub-payment 0 Global Interest Rate 4.5 % Grants 981,926 R-O-E 20 years after tax 16.6 % R-O-I 20 years after tax 11.0 % NPV 20 years before tax (DR 4%) 537,345,133 Company Value (Stuttgarter Model) 298,927,224 Guaranteed Dividends 67.5% 12,651,300 Pay Back Period 9 Years PPA /KWh FiT/PPA Rise Anually 0.0 % 1% Profit Ø per Year 291,931 1 $-cent Income PPA/FiT (20 Years) 30,894,950 Off-taker Power Break Even Year Tax Exemption 0 Years Internal Rate of Return % Nat-Captital : Int'l.-Capital Quote 1 : 54 Equity : Loan Quote RE 1 : : 5.6 8

9 FINANCIAL PROJECTION FINANCIAL ANALYSIS MODEL ANALYST'S NAME NAME OF COMPANY Dr. Glenn L. Stevens - Italy Solar Power Plant 100 MW FIRST CALENDAR YEAR OF DATA 2019 NUMBER OF YEARS OF DATA 5 Equity 9,371,903 HERA S.p.A. INCOME STATEMENT Start Year Year 1 Year 2 Year 3 Year 4 Sales Revenue 0 17,850,000 44,142,626 45,467,747 46,951,665 Less: Cost of Goods Sold 0 0 5,722,200 5,836,644 5,953,377 Gross Profits 0 17,850,000 38,420,426 39,631,103 40,998,289 Less: Operating Expenses: Operating Expense 0 425, , , ,419 General / Admin. Exp Lease Expense Depreciation Expense 1,109,819 3,286,065 4,673,679 5,311,371 5,940,048 Total Operating Expenses 1,109,819 3,711,065 5,527,929 6,174,163 6,811,467 Operating Profits (1,109,819) 14,138,935 32,892,498 33,456,941 34,186,821 Less: Interest Expense 1,256,309 3,259,385 3,843,143 3,509,792 3,161,440 Net Profits Before Taxes (2,366,128) 10,879,551 29,049,354 29,947,149 31,025,381 Less: Taxes 0 1,702,685 5,809,871 5,989,430 6,205,076 Net Profit After Taxes (2,366,128) 9,176,866 23,239,484 23,957,719 24,820,305 Less: Pref. Stock Divds Earnings available for Common Stockholders 9,176,866 23,239,484 23,957,719 24,820,305 BALANCE SHEET Current Assets: Cash 0 6,424,269 3,853,260 4,441,088 5,755,427 Marketable Securities Accounts Receivable Inventories Total Current Assets 0 6,424,269 3,853,260 4,441,088 5,755,427 Gross Fixed Assets (at cost): Land & Buildings Machinery and Equipment 54,381, ,636, ,374, ,882, ,179,412 Furniture & Fixtures Vehicles Other (Inc. Fin. Leases) Total Gross Fixed Assets 54,381, ,636, ,374, ,882, ,179,412 Less: Accumulated Depreciation Net Fixed Assets 54,381, ,636, ,374, ,882, ,179,412 Other Assets Total Assets 54,381, ,060, ,227, ,324, ,934,839 Current Liabilities: Accounts Payable Notes Payable Accruals Taxes Payable Other Current Liabilities Total Current Liabilities L / T Debt (Inc. Financial Leases) 47,357,289 88,487,680 78,415,376 70,554,220 62,344,713 Total Liabilities 47,357,289 88,487,680 78,415,376 70,554,220 62,344,713 Preferred Stock Common Stock!! 7,005,775 24,572,619 47,812,102 71,769,821 96,590,126 Paid-In Capital In Excess of Par Retained Earnings Total Stockholders' Equity 7,005,775 24,572,619 47,812,102 71,769,821 96,590,126 Total Liabs. & Stockholders' Equity 54,363, ,060, ,227, ,324, ,934,839 9

10 FINANCIAL PROJECTION 50 MW Italy Start Year Year 1 Year 2 Year 3 Year 4 Number of Common Shares End-of-Year Stock Price RATIO ANALYSIS Current Ratio no curr. Liabi. no curr. Liabi. no curr. Liabi. no curr. Liabi. no curr. Liabi. Quick Ratio no curr. Liabi. no curr. Liabi. no curr. Liabi. no curr. Liabi. no curr. Liabi. Inventory Turnover no Inventories no Inventories no Inventories no Inventories no Inventories Average Collection Period Fixed Asset Turnover Total Asset Turnover Debt Ratio Debt-to-Equity Times Interest Earned Gross Profit Margin % 87.04% 87.16% 87.32% Operating Profit Margin 79.21% 74.51% 73.58% 72.81% Net Profit Margin 51.41% 52.65% 52.69% 52.86% Return on Total Assets (ROA) 8.12% 18.41% 16.83% 15.62% Return on Equity (ROE) 97.92% % % % Earnings Per Share 91, , , ,203 IPI Italy - 1,376,530 3,485,923 3,593,658 3,723,046 Price/Earnings Ratio DUPONT ANALYSIS Net Profit AT/Sales 51.41% 52.65% 52.69% 52.86% Sales/Total Assets 0.00% 15.79% 34.97% 31.95% 29.54% ROA 8.12% 18.41% 16.83% 15.62% Net Profit AT/Total Assets 0.00% 8.12% 18.41% 16.83% 15.62% Total Assets/Stockholders. Equity % % % % % ROE 0.00% 37.35% 48.61% 33.38% 25.70% STATEMENT OF CASH FLOWS CASH FLOW FROM OPERATING ACTIVITIES Net Profit after Taxes 9,176,866 23,239,484 23,957,719 24,820,305 Depreciation 3,286,065 4,673,679 5,311,371 5,940,048 Decrease in Accts. Receiv Decrease in Inventories Decrease in Other Assets Increase in Accounts Pay Increase in Accruals Increase in Taxes Payable Increase in Other Cur. Lia Cash Flow from Oper. Act. 12,462,931 27,913,162 29,269,090 30,760,353 CASH FLOW FROM INVESTMENT ACTIVITIES Increase in Gross Fixed Assets (52,254,892) (15,738,189) (15,508,734) (15,296,459) Cash Flow from Investments (52,254,892) (15,738,189) (15,508,734) (15,296,459) CASH FLOW FROM FINANCING ACTIVITIES Increase in Notes Payable Increase in Long-Term Debt 41,130,391 (10,072,304) (7,861,156) (8,209,508) Changes in Stockholders' Equity 17,566,844 23,239,484 23,957,719 24,820,305 Preferred Dividends Paid Common Dividends Paid Cash Flow from Financing Activities 58,697,235 13,167,180 16,096,563 16,610,797 Net Incr. in Cash / Mark. Securities 18,905,274 25,342,153 29,856,919 32,074,692 10

11 IMPACT PROJECTION Italy Solar Power Plant 100 MW Common Data Lead Investors Rank 5-96 International Impact Investor PH = PEOPLESHOME PEOPLESHOME Shares Country Representative Paolo Lamantia Generated after World Bank Criteria. Project Enterprise New SPV (Company) New Investment Country Ranking Resource R-O-I 11.0% - Local Data not finally verified Financing in Place -- Project Start / Re-Investment Start 2019 / 2021 Facts Project Locations/Communities 10 spread in the Country Social Houses from Year 3) 10, sq m Houses / Year (construction) 500 Project Period 20 years Tourism Home stay / Chalets 1, sq m Energy Plant MW Served Households 188,889 (á 75 Kwh/m per Month) Jobs 3,000 Land Conversion - Power Park ha 1.0 /sq m Village Infrastructure Area ha 10.0 /sq m Projected Carbon Reduction 3,611,684 Tons / 30 Years Italy Local Government Effects Annually Tax* Income (rate = 20 %) 7,663,182 (after 0 years exemption) Purchase Power per Year 1,350,000 per month from Year 2021 Local Import Replacements up to 24.4 % in project area Local Exports Value generated up to 19.2 % in project area National Interest 0 International Interest over 15 Years 47,057,289 Public Infrastructure Investment 68,253,256 Italy Surplus during 20 Years 198,120,372 including Tax Income* Local Community Output from Year 3 to 22 Single Community All 10 Communities Construction Material Houses 13,388, ,881,386 Local Labour Costs 37,801, ,018,031 Common Buildings Investment 1,059,821 10,598,214 Roof Renewable Energy Value 0 0 Energy Plant Investment (* excluded) ,779,955 Farmers Benefits per Year 3,000 Farmers 1,350,000 Human Capacity Development Budget 100,000 /Year 100,000 * Services Purchased by the Project Company 1,037,647 Local Community Outcome Projection Prompt Sustainable Common PH Boost Local Economy good progress % Schooling no action needed % Water Situation in progress invest success 0.3% % Communal Added Value Chains good progress % Knowledge Transfer Services good progress % Development Benefits good progress % Quality of new Products unclear good progress % Change of non Relocating Residents good progress % Wastewater Treatment invest success 2.2% % Production of Solid Waste in progress invest success 2.4% % Farmers Health and Safety good progress % Local Food Quality good progress + 36% 11

12 IMPACT PROJECTION Local Exports Value generated 25% 25% Import Replacements 25% Local Economy 20% 20% 20% 10% 10% 10% 5% 5% 5% 0% 0% 0% -5% -5% -5% 20% Change of non Relocating Residents 20% Water Situation 20% Wastewater Treatment 10% 10% 10% 5% 5% 5% 0% 0% 0% -5% -5% -5% Schooling Quality of new Products Production of Solid Waste 9% 9% 9% 3% 3% 3% -3% -3% -3% Communal Added Value Chains Local Food Quality Farmers Health and Safety 33% 33% 33% 27% 27% 27% 21% 21% 21% 9% 9% 9% 3% 3% 3% -3% -3% -3% Knowledge Transfer Services 20.00% 15.00% 10.00% 5.00%.00% -5.00% 35.00% 31.00% 27.00% 23.00% 19.00% 15.00% 11.00% 7.00% 3.00% -1.00% -5.00% GROWTH CUMULATION 20.00% 15.00% 10.00% 5.00%.00% -5.00% Development Benefits - Local Data not finally verified Italy Local Community Common Sustainable 12

13 IMPACT PROJECTION Farmers Health and Safety Production of Solid Waste Wastewater Treatment Change of non Relocating Local Common Progress Local Food Quality Quality of new Products Local Import Replacements Local Exports Value generated Local Economy Schooling Water Situation Communal Added Value Chains Knowledge Transfer Services Development Benefits Common Farmers Health and Safety Production of Solid Waste Wastewater Treatment Change of non Relocating Local Prompt Impact by PEOPLESHOME Local Food Quality Quality of new Products Local Import Replacements Local Exports Value generated Local Economy Schooling Water Situation Communal Added Value Chains Knowledge Transfer Services Development Benefits Prompt Local Common Progress + Local Prompt Impact Production of Solid Waste Local Food Quality Farmers Health and Safety Wastewater Treatment Change of non Relocating Quality of new Products Local Import Replacements Local Exports Value generated Local Economy Schooling Water Situation Communal Added Value Chains Knowledge Transfer Services Development Benefits Prompt Common Local Sustainable Development by PEOPLESHOME Farmers Health and Safety Production of Solid Waste Local Food Quality Wastewater Treatment Change of non Relocating Quality of new Products Local Import Replacements Local Exports Value generated Local Economy Schooling Water Situation Communal Added Value Chains Knowledge Transfer Services Development Benefits Sustainable Local Outcome Projection (Greenhouses - Social Package- Qualification - Public Infrastructure) Local Import Replacements Local Food Quality Local Exports Value generated Farmers Health and Safety Production of Solid Waste Local Economy Schooling Sustainable Prompt Common Wastewater Treatment Water Situation Change of non Relocating Residents Communal Added Value Chains Quality of new Products Development Benefits Knowledge Transfer Services 13

14 IMPACT PROJECTION 60.00% LOCAL IMPACT GROWTH 60.00% COMMON PROGRESS & SUSTAINABLE IMPACT 50.00% 50.00% 40.00% 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% % % Local Common Progress Local Prompt Impact by PEOPLESHOME Local Sustainable Development by PEOPLESHOME Common Sustainable 14