Information Infrastructures Week 1 LBSC 671 Creating Information Infrastructures.
Financing Infrastructures: Solutions from a Market … · Financing Infrastructures: Solutions from...
Transcript of Financing Infrastructures: Solutions from a Market … · Financing Infrastructures: Solutions from...
102.04.2009Ali Rıza ErsoyLeaseurope 2009 Seminar
Financing Infrastructures:
Solutions from a MarketPlayer’s Perspective
Ali Rıza ERSOYDirector, Siemens IT Services and Solutions, Siemens A.S. Turkey
Istanbul, April 02, 2009
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Agenda
Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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Siemens : #2 in electric / electronics around the globe
Key figures FY 2007 Sales by region
Germany
17%
32%27%
15%
9%
Europe(excl. Germany)
Americas
Asia-Pacific
OthersNew orders € 83’9 billion
Net sales € 72’5 billion
Net income € 3’9 billion
Research and development € 3’4 billion
Employees 398.000
Shareholders 1 million
More than 190 countries (# 2)More than 160 years of expertiseMore than 17,500 software engineers (# 1)
More than 8,000 inventions in 2007 (# 3)More than 50,000 active patents150 R&D locations in over 40 countries with 32.500 R&D employees
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Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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Siemens Financial Services at a Glance
Siemens Financial Services (SFS):A Siemens Group
Nearly 1,800 employeesInternational network of affiliates
coordinated by Siemens Financial Services GmbH,Munich
SFS – a provider of financial solutions- Combination of international financial expertise and
comprehensive technology and industrial know-how- Financial solutions uniquely targeted to the requirements of its customers
SFS is a niche player in target markets: sales and investment financing, treasury services, fund management, insurance solutions
FY 2008 FY 2007 FY 2006 FY 2005
Total assets 11,328 8,912 10,522 10,148
Pretax profit 286 329 307 319
Employees1,933 1,783 1,764 1,672worldwide
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SFS can offer a wide range of financial solutions to the RCs
Solution
Project &Export Finan-cing (PEF)
Leasing
Innovative Equipment Financing
Public Private Partnership
Equipment & Software Financing, Vendor Leasing ProgramsInhouse Leasing
Outsourcing of business processes, including asset transfer and financingRefinancing of Managed Services ContractsTrade-in solutions
Private financing for projects
Description
Advisory services on financing and risk coverageCenter of expertise for letters of credit, guarantees and sureties
Equity Investments / Venture Capital
Receivables Financing
Factoring (including Credit Warehouse)Forfaiting
Equity investments in infrastructure projects or start-up companies
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Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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Siemens in Turkey at a Glance
1856 First Siemens Activity for Telegraph Authority
1958 Foundation of Siemens-Koç Company (SIMKO)
2000 Acquisition of Koç Shares (25%):From SIMKO to Siemens A.Ş.
History in Turkey
Balanced portfolio in Industry, Energy and Healthcare
Growth more than 20% p.a. in the last 5 years
No.1 or No.2 in 70% of the business fields
Portfolio and Development
Siemens Turkey in 2007
* Figures show the closing of 2006
Siemens Turkey in 2007
Core Businesses
JointVentures
Volume (€) EmployeesSiemens A.S. 905’ 2.402Osram 35’ 32 Healthcare DX 12’ 40Siemens Financial Services 105’ 43Siemens Enterprise Networks 13’ 121
Nokia Siemens Networks 100’ 260Bosch Siemens Hausgeraete* 963’ 3.063Fujitsu Siemens* 34’ 24Total 2’’167 5.985
Siemens Turkey in 2007
* Figures show the closing of 2006
Siemens Turkey in 2007
Core Businesses
JointVentures
Siemens Turkey in 2007
* Figures show the closing of 2006
Siemens Turkey in 2007
Core Businesses
JointVentures
Volume (€) EmployeesSiemens A.S. 905’ 2.402Osram 35’ 32 Healthcare DX 12’ 40Siemens Financial Services 105’ 43Siemens Enterprise Networks 13’ 121
Nokia Siemens Networks 100’ 260Bosch Siemens Hausgeraete* 963’ 3.063Fujitsu Siemens* 34’ 24Total 2’’167 5.985
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Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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SFS Turkey
Mission of Siemens Financial Services:
Execute finance driven sales strategy - provide financial services from an entrepreneurial point of view to our customers
Additional business through smart financial solutions
Contribute to better Asset Management, Cash Collection and Risk Mitigation
SIEMENS FINANCIAL SERVICES SUPPORTS THE GROWTH STRATEGY
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Siemens Partner for Structuring Tailor-made Financing
Leasing
Soft Loans
International Financial
Institutions
ECA (ExportCredit Agency) -covered loans
incl. Multisourcing
UncoveredLoans
Bonds
Special Structures(e.g. Revenue Sharing/
Receivable-backed financing)
Project Finance (Cash flow oriented)
Forfaiting
Commodity Backed Finance
Letters of Credit
SFSProject & Export
Finance
Securitization
Private Insurances
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Export financing for the supply of gas turbine packages, Turkey
Customer requirement:Providing an export credit facility for the supply of
2 x SGT5-PAC 4000F gas turbine packages
for a open cycle power plant to be constructed in Antalya
region, Turkey.
SFS financing solution:Arranging a combined Euler Hermes export/financecredit guarantee as basis for the facilitation of an export credit covering 85% of the supply contract valueAdvising Sector Energy with regard to risk mitigationusing financial guarantees under the supply contractCoordination of Sector Energy, financing banks, Euler Hermes and Customer
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Software-Leasing/Vendor Financing Program Example – SAP Financing
ChallengeWorldwide sales financing program for SAP’s sales and service partners
SAP’s aim was to offset competitive pressure (e.g., financing models from Oracle and Microsoft) and support growth in small and medium companies
SFS won the contract by beating out 17 other international bidders
SolutionSAP Financing: scheduled installment payments spread over up to seven years with prefinancing of up to one year (pay as you benefit)
Financing offer in 45 countries around the worldSIS is an important SAP Reseller in various countries
Actual pipeline (projects) approx. EUR 400 mn.
SAP AG
The world‘s third-largest independent
software provider
Market leader in business software
solutions
for internal use only
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Joint-venture agreement for hospital in China
Challenge
Fully digital hospital
Cutting-edge facilities, operational excellence, patient-
oriented services and efficient employment of capital
Launch before EXPO 2010, later expansion of capacity
to over 500 beds
Total investment volume of more than EUR 100 mn.
SolutionJoint-venture hospital under a public-private partnership (PPP) structureFull integration of each partner’s competencies:- Tongji University adds medical and scientific know-how- Siemens its combined expertise in structured finance,
clinical workflow, and hospital technology solutions- Asklepios Kliniken its experience as hospital operator
Sino-German Friendship Hospital
Joint-Venture partners:- Shanghai’s Tongji University (46 %)- Siemens Project Ventures (40 %)- Asklepios Kliniken (14 %)Business License: 20 years
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Trade in solution for radiologic practicein Germany
Challenge
Existing equipment in doctors’ office impeded new business
of “MR Magnetom Espree” for MED
Solution
SFS remarketing department purchased the outdated equipment; SFS beat other bidders by offering the best price
Strengthened long-term customer relationship through the leasing contract
Siemens One: joint, strategic approach by MED and Siemens Financial Services
Dr. Uhlenbrock und PartnerThe practice offers comprehensive and broad ranged radiologic services from early diagnosis to specialized therapies.
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Public Private Partnership for particle therapy center in Kiel, Germany
Challenge
Project value approx. EUR 250 mn.
As a competence center for tumor diseases, the particle
therapy center will be opening up new treatment
possibilities for cancer therapy starting in 2012
The facility will be capable of treating approximately 3000
patients with particles per year.
Solution
Largest public private partnership in German healthcare
Turn key contract between the special purpose company and the consortium
Long Term Service Contracts with Siemens Med (technical PT operation) and HSG (Facility Management)
With provisional acceptance the Special Purpose Company will obtain payment claims (financing and operations part) which are subject to modifications based on performance
University Clinic of Schleswig-HolsteinConsortium: Siemens, Bilfinger Berger Hochbau and HSG Technischer ServiceSpecial purpose company: Siemens Project Ventures und Bilfinger Berger BOT GmbH (both 50%)
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Siemens World
SFS World
Siemens Turkey
SFS Turkey
Siemens Leasing Turkey
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Siemens Leasing Turkey
Establishment Date July 9, 1997
Paid-in Capital 1.475.000.- EUROShareholders equity 24.845.000.- EURO(as of 30.09.2008)Capital Composition % 99.6 Siemens Finance & Leasing GmbhLocation Istanbul (Headquarters), Ankara (Branch)
Employees 40Total Contract Volume (*) 617 Million EURMarket share (**) 2,66%(*) as of 30 September 2008(**) as of 31 December 2008
Summary
2002.04.2009Ali Rıza ErsoyLeaseurope 2009 Seminar
Infrastructure Financing with Leasing
Not very high ? Why ?
• Leasing in Turkey is different than project finance. i.e. mostly not suitable forstart up projects but suitable for extension and/or modernization.
• Limitation in Leasing Law. Non leasable items.
• Big ticket – Concentration risk.
• Very long term financing with longer grace periods.
• Until now mostly used in Medical Sector investments.But there is a potential for industry, energy investments after the new leasing law.