E-JEEPNEY

October 17, 2013Bahay ng Alumni, University of the Philippines

Quezon City, Philippines

Investing for + Impact

ICCO’s Investment Agenda 2013 – 2020

… together let us mind the gap

Oct. 17, 2013 Consunji Rm., Balai Alumni, UP Diliman

Air Pollution kills 5,000 Filipinos every year!

High incidence of COPD & Tuberculosis

among Public Transport Drivers

The jeepney is an integral part of public transport. Let’s modernize it!

Ejeepneys are energy efficient, zero emission vehicles; runs purely on electricity

62kg of CO2 emission is avoided per EV per day or 19 MT a year

More than 60% of our electricity comes from geothermal, hydro & other RE sources

The Philippine government & public are pushing for electric vehicles for public transport

Electric Vehicle Expansion Inc (EVEE-i) aims to operate 1,000 ejeepneys for public transport in key Philippine cities.

Initially EVEE-i will field 500 ejeepneys in Metro Manila & key urban cities in 3 phases1st phase = 100 ejeepneys in 5 Routes by the 1st year2nd phase = 140 ejeepneys in 7 Routes by the 2nd year3rd phase = 260 ejeepneys in 13 Routes by the 3rd &

4th year Route operations start after 5 to 6 months from

financial drawdown EVEE-i are composed of people with actual

experience in running an ejeepney fleet

Total project cost is US$13 Million

New Equity infusion of US$744,186.00 will be used for: Terminal & Route Market Development Set up Charging station Set up Battery Swapping system Drivers’ Skills Training & Values Formation

Debt of Php68 Million (US$1.58 Million) is for Vehicle Acquisition. Loan is in pesos w/ 5 yr payment term

RiskPotential Impact on

Project Success

Likelihood of

Occurrence Mitigation Strategy

Lower passenger count

( High) For every 1 passenger lost per hr, Net Income decreases by -82% ; Equity IRR by -22%

High

A Route Measurement Capacity study is undertaken to determine exact number of passengers in a certain route before actual operations. We also have a Route Development program designed to increase passenger load.

Increase in electricity prices

(High) Doubling of electricity consumption will result to a -48% in Project IRR and a -68% in Equity IRR. Net income will drop by >300%

Medium

Develop direct sources of alternative energy & long term contract with price protection clause with electric distributors or aggregators

Passenger Fare Roll Back

(High) For every Php1 decrease in fares will result to a decrease of -107% in Net Income & a -12.5% impact on Total revenues

Low

The government sets the fare rate and usually follows the increases in oil prices. In the last 5 years fare rates have been increasing. Assist in crafting policies on sustainable transport fares.

RiskPotential Impact on

Project SuccessLikelihood of Occurrence Mitigation Strategy

Theft of Fare Collections

(Medium) Drivers will be collecting the fares in cash

Low Values formation programs will strengthen the cultural mindset of both drivers & passengers. Automatic Fare Payment system will be used once we reach the optimum number of units

Increase in Maintenance Expenses

(Low) A 10% increase in maintenance results to a 15% decrease in Net income but has NO effect on Project IRR & Total revenues

Low Establish long term contractual relationship with parts suppliers and vehicle manufacturers with extended warranties.

HUGE MARKET – 60,000 diesel powered jeepneys in Metro Manila with more than half for immediate replacement

FRANCHISE PRIORITY – Moratorium on franchise issuance but Department Order prioritizes alternative fueled vehicles

EVERY PESO of Assets utilized, generates 10% social return based on Blended Approach study by UA&P

HIGH LIQUIDITY – Cash collections everyday, High ROI, High IRR

HIGH ENTRY BARRIER. Only the government can give a Route Franchise

ROBUST BUSINESS model with exit strategy options

“We alone can not change the public transport system in the country, but we intend to cast the stone across

the waters to create many ripples.”

Thank you