CONFIDENTIAL |

Financing EE with IDC funding Energy Partners

© 2012 Energy Partners

10 June 2013

CONFIDENTIAL |

Who is Energy Partners?

We support Business Owners to achieve

maximum Energy Efficiency:

- Establish the right strategic & operational objectives

to enable a holistic EE solution design

- Facilitate the design & implementation of EE

solutions

- Source the least expensive finance to mobilize

the implementation

- Claim all incentives to further improve project ROI

- Provide ongoing EE monitoring and control to ensure

savings are sustained and improved upon

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5

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LAW • 1 LLB

FINANCE • 2 CA(SA)

• 1 CFA

• 1 B-Com

(Accts)

We believe in a holistic approach, enabled by a well rounded team

ENGINEERING • 6 M. Eng

•15 B.Eng

• 2 ND

(Elec, Electr, Mech,

Chem, Civil)

BUSINESS • 6 MBA

• 1 MA (Econ)

• 1 B.Bus Sc

• 1B.Sc

• 1 B.Com (Comm)

MANAGEMENT

CONSULTING • 21 years combined

experienced (Bain &

McKinsey)

“Our services”

OPTIMAL

ENERGY

SOLUTIONS

RE

NE

WA

BL

ES

FINANCE &

INCENTIVES

EF

FIC

IEN

CY

METERING &

INTELLIGENCE PV

SOLAR

WIND

BIO MASS

HVAC

REFRIGERATION

LIGHTING

TARIFF & BILLING

“Our people”

“Some of our

clients”

~50 employees

“Powered by results”

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Our focus is largely on the Commercial and Light Industrial sectors

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Source: DPE Draft Second National Energy Strategy Review

National Energy Consumption, by sector

SA Commercial Sector

• 8% of National Energy Use, ~ 20% of Electricity Use

• Multiple sub-sectors

• Retail

• Hospitality

• Healthcare

• Logistics

• Average monthly bill ~ R280k

CONFIDENTIAL | © 2012 Energy Partners

Energy Efficiency is vital for many small commercial operations Food retail example (illustrative)

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Turnover - COGS (20%)

Gross Profit - Salaries - Rent - Electricity - Other Expenses

Operating Profit

R5,000,000 -R4,000,000

R1,000,000

-R380,000 -R180,000 -R160,000 -R150,000

R130,000

Monthly Economics

CONFIDENTIAL | © 2012 Energy Partners

Client Example: “EP solution” reduced overall consumption by 33% …

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• 35% savings on monthly bill

• 3.4 yr combined payback

Impact

1. Improved Behavior

2. Efficient Refrigeration

3. Efficient Lighting

4. Power Factor Correction

Interventions

CONFIDENTIAL | © 2012 Energy Partners

Client Example: IDC Funding meant client was cash flow positive from Day 1 (Net savings of R25K/month)…

-60 000

-40 000

-20 000

-

20 000

40 000

60 000

80 000

100 000

120 000

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

TotalSaving

Loanrepayment

clientcashflow

Monthly Project Cash Flows, R

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0

20

40

60

80

100%

Cummulative savings (m kWhs)

Project Return(1/Payback)

Typical cost of Capital

Over the last 2yrs, we identified >200 projects with combined savings of 52m kWh p.a.

Total Savings Potential = 52

million kWh p.a.

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0

20

40

60

80

100%

Cummulative savings (m kWhs)

Project Return(1/Payback)

However, client takeup of these opportunities has been slow

10 20 30 40 50 0

Sold

Not Sold (Proposed, Declined, On hold)

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Clients have several concerns

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- “I don’t believe that savings can be achieved.”

- “I am concerned that savings will not be maintained after implementation.”

- “I do not have the funds available to do this.”

- ”I have better investment opportunities – such as investing in income-generating assets.”

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Structuring the correct “package” for clients helps to overcome concerns

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2

3

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CONCERNS

PRODUCT OFFERING

•“I don’t believe that savings can be achieved.” •EP guarantees savings

•EP will provide financial compensation if guarantees not achieved

•“I am concerned that savings will not be maintained after implementation.”

•“I do not have the funds available to do this.”

•IDC provide the finance; Client requires no upfront capital

•Savings are realised from day one

•”I have better/other investment opportunities – such as investing in income-generating assets assets.”

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How do we do this: Systems enable, but People do Energy Management

STRATEGY

INTELLIGENCE

PROJECTS IMPLEMENTATION

MAINTENANCE

FUNDING/ INCENTIVES

In partnership with IDC

PEOPLE

SYSTEMS V2

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Working with the IDC has several advantages

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• Attractive Rates

• Prime -2%

• Dedicated team with national coverage

• Rapid decision making/turnaround

• Clear criteria and requirements

• Due diligence site team

• Flexible

• Documentation, draw down facility, payment arrangements

CONFIDENTIAL |

Thank you

www.energypartners.co.za

Energy Partners Office: CT: 021-941-5140

Alan Matthews: 084-529-6262

Karel Cornelissen: 078-803-8417 Derik Coetzer: 083-640-0910

Please feel free to contact us with any questions

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