Toto camba

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October 16, 2013 Aldaba Theater, University of the Philippines Quezon City, Philippines Investing in Inclusive Enterprises Toto Camba ICCO-Investments South East Asia

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Transcript of Toto camba

Page 1: Toto camba

October 16, 2013

Aldaba Theater, University of the Philippines

Quezon City, Philippines

Investing in

Inclusive Enterprises

Toto Camba

ICCO-Investments South East Asia

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investment Platforms 2020

MAIN POINTS

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investment Platforms 2020

MAIN POINTS

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• An international development organization with roots in

Netherlands.

• Engaged in cooperation which promotes Inclusive Economic

Development, Sustainable Natural Resource Management

and Social Justice

• Operate in 7 Regions, 6 countries in South East Asia and the

Pacific

Who are we?

• is the “BLUE labeled” ICCO and the

impact investment vehicle of the ICCO

Cooperation

• Provides financial investment to enterprises,

institutions and initiatives in developing

countries that have positive impact on people,

especially on the BOP, and the environment.

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• 8 Regions, 8 ROs, 8 RCs

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• 6 Countries in SEAP

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investment Platforms 2020

MAIN POINTS

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GLOBAL DEVELOPMENT FRAMEWORK

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CONNECT ADVOCATE INCUBATE SCALE UP

• Peace Building

• Asset Reforms

ACCESS TO:

• Basic & Social

Services

• N.Resources

• Market

• Finance &

Investment

• Market

Development

• VCD Platforms

• Public & Private

Sector

Engagement

• Business &

Financing Model

• BDS

• Venture Capital

Support

• LP & G

• 200-800K Euros

• Agriculture &

Value Chain

Finance

• Missing Middle

Finance

• Inclusive SMEs

Sustainable Livelihood for Small Producers

Gender & Right Based Approach

Programmatic Approach + Public & Private Sector Engagement

Capacity Development

Enabling Policies Inclusive VC Viable Inclusive

Bus. Models

Sustainability

ICCO’S ROLES & STRATEGY

Fair Economic Development Framework

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CONNECT ADVOCATE INCUBATE SCALE UP

• Peace Building

• Asset Reforms

ACCESS TO:

• Basic & Social

Services

• N.Resources

• Market

• Finance &

Investment

• Market

Development

• VCD Platforms

• Public & Private

Sector

Engagement

• Business &

Financing Model

• BDS

• Venture Capital

Support

• LP & G

• 200-800K Euros

• Agriculture &

Value Chain

Finance

• Missing Middle

Finance

• Inclusive SMEs

Gender & Right Based Approach

Programmatic Approach + Public & Private Sector Engagement

Capacity Development

Enabling Policies Inclusive VC Viable Inclusive

Bus. Models

Sustainability

ICCO’S ROLES & STRATEGY

Sustainable Livelihood for Small Producers

Fair Economic Development Framework

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… we mind the gap

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Global poverty landscape has

changed from just two decades ago,

from 93 % of poor people lived in low-

income countries (LICs).

NOW 70% (960M – “the new Bottom

Billion” ) of poor people in the world

are found in Middle Income

Countries. They don’t benefit so much

from economic GROWTH

Poverty is increasingly turning from an

int’l to a nat’l distribution problem, thus

governance and domestic taxation

and redistribution policies become

of more importance than ODA

Source: Institute for Development Studies

BIG Global Challenge

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Rural Poverty Data in SEA

Country

Population

in million

(2011)

GDP per

capita

(2011)

Poverty Incidence Data (% of population)

Population living

under US$1.25

pc/day

(WB 2008-10)

Population living

under US$2

pc/day

(WB 2008-10

Contribution of Rural

Poverty to total

poverty

Cambodia 14.3 897 18.6 49.5 93.8

Indonesia 242.3 3,495 18.1 46.1 70.3

Myanmar 48.3 43.3 NA 70.4

Philippines 94.8 2.370 18.4 41.5 72.4

Vietnam 87.8 1,407 16.9 43.4 92.3

Ave (East Asia &

Pacific) 487.5 12.5 29.7

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• Generally banks see agricultural credit as high risk -- long gestating, limited cash flow, poor infrastructure, no insurance, lack of security

• BIG gap on capital in the emerging market. MFIs and mainstream banks generally not addressing the “missing middle”

• In most cases the “unbanked” resorts to informal lenders that are

usually less reliable (?) and more costly than banks and other formal FIs

SMEs especially those engaged in AGRI-Enterprises Lack Access to Finance

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investment Platforms 2020

MAIN POINTS

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SCALE UP Agri-Based Enterprises

Viable Innovative Enterprises

Small Growing Businesses

Inclusive Financing Platforms (VCF, Agri & Rural Finance & MMF)

OUR MISSION

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investment Platforms 2020

MAIN POINTS

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• Registered legal business entity • If NGO, its core business should be

viable • Agri-Business, Social Innovation

e.g. Health, Education, food and security, water & sanitation, energy, climate

• Business providing appropriate financial services for small farmers and missing middle

• Business Size = SMEs • Investable level and with sound

growth plan • With social and environmental

impact

Our Target Partners

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INCLUSIVE

BUSINESS?

sustainable business that

benefits the low

income communities

business initiative that,

keeps its for-profit

nature but contributes

to poverty reduction

Business that creates

sustainable livelihoods

for the poor

Finds profitable way to engage low income

segments in its value chain or business

operations

directly employs low-income people; targets development of suppliers and service providers from low-income communities; or provides affordable goods and services targeted at low-income communities.

Our IDEA of an Inclusive Business

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Identity and Location

Development Framework

Strategic Objectives

Target Investment Partners

Investments Platforms 2020

MAIN POINTS

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• Min of 200,000 Euros

• Max of 800,000 Euros

• Enterprises needing below the min amount shall be assisted through partner financial intermediaries

• Investment or financing support can be in a form of loan,

equity or guarantee

Investment Size per Investee

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2. Through Financial Intermediaries <50K Euros for small business and small producers organizations

3. Programmatic Investment Syndication targeting Agribusiness and Innovative Enterprises that require >50K Euros

4. Direct Investment

to Agribusiness and Innovative Enterprises 200K-800K Euros

1. Guarantee for Agriculture Finance & Agribusiness

w/ Oikocredit and other local banks and FIs

to support agri-microfinance and small agribusiness (SPOs) with max

support of 400K Euros pre

sent

opera

tion

Still under the

FS Program but is now basically part of ICCO Investment

present

Investment Platforms

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Platform 1: Guarantee

- Oikocredit is a paper guarantee

- 3rd Party Guarantee

ICCO Lending Partner

ICCO

Lending Partner

Bank Put Guarantee Fund

as a special placement

Interest earnings

Issues the Guarantee

1-1.5 G. Fee

calls the guarantee in case of default

Pays G. Fee -1-1.5%

Calls the guarantee in case of default

Issues the guarantee

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Platform 2:

for small producers

Inclusive

FINANCE

INSTITUTION

Loan or Participation

Interest or Dividends

+ Social Returns

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Social

Investor

+ Dev’t.

Financier

+ Impact

Investor

Agri-Finance in

specific commodity

Social

Innovations in

specific service

sectors

Joint Investing in

specific business

enterprise or area

Platform 3

Programmatic Investment Syndication

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AgriBusiness

VC Finance

Viable

Social

Enterprise

Innovative

Enterprise

• loan or equity

• @ least 200K Euros

financing requirements

for 2 years

• Max of 800K

• 3-7 year max

investment period

Platform 4

Direct Investment

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Input Suppliers

Producers

Traders

Processors

Consolidators

Buyers

VC and Agriculture Finance

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Our Investment Process

Screening Preliminary

Assessment Due

Diligence

Portfolio

Mgt Exit

2-6 Months 3-7 years

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KEY BUSINESS CHARACTERISTICS KEY FINANCIALS

IMPACT / RISK ASSESSMENT

INVESTMENT PROPOSITION / INDICATIVE TERMS

NAME OF COMPANY – SECTOR - COUNTRY

• Market Issues addressed/competitive edge • Entrepreneur / Management • Technology • Business Model • Impact Created

• Positive history • Financial

projection needs to be sharpened

• High, clear & quantifiable social impact

ICC

O IN

VESTM

ENT P

IPELIN

E OP

PO

RTU

NITY

CONCLUSION

• Financially – Go? • Impact – Go? • Fit to ICCO Investments – Go?

Short project BIO & Description

RESOURCE PLANNING

Strategic / Operational

Risk

Financial Risk

Social Impact

Environment Impact

• Cleaner production • Promotes environmental

protection

• Clear VM and Social & Business Objectives

• Projection based from historical performance & strong social & market orientation

€ 0

€ 100,000

€ 200,000

€ 300,000€ 400,000

€ 500,000

€ 600,000

€ 700,000

€ 800,000

20092010

20112012

20132014

2015

Revenu

EBIT

Net Income

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INVESTMENT REPORT

1. General Information

2. Business Overview and Strategy

3. Impact

4. The Market

5. The Product / Service

6. Market Opportunity

7. Sales Model

8. Competition

9. Management Team

10. Advisors / Professionals

11. Milestones Accomplished

Key Financial Performance (Income Statement)

Key Financial Performance (Balance Sheet)

Key Financial Performance (Cash Flow Statement)

Key Financial Performance (Ratios)

12. Financing

13. Milestones after funding

14. Future Financing

15. Financial Projections

Key Financial Performance (Income Statement)

Key Financial Performance (Balance Sheet)

Key Financial Performance (Cash Flow Statement)

Key Financial Performance (Ratios)

16. ICCO Investments Intervention

17. Ownership Valuation

18. Returns and Exit Strategy

19. Impact Assessment

20. Risk Assessment & Mitigation

Scope of Due Diligence

sample

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1) Market– Who are the target groups and what are their characteristics? How

big is the market? Competition and competitive edge of the proponent?

2) Business Model/Concept identifying the problem/s that the business

wants to address, strategies in addressing the identified problem/s, nature of the

business, and strategies to make the business viable

3) Social Impact – Vision, Mission and Goals of the business organization,

reach of the business model, present and project social impact targeted,

4) Entrepreneur – Who is the entrepreneur? Track record and capabilities of

the entrepreneur? Business management systems?

5) Financials – what are the income streams, historical financial performance

and projection, how much investment/new capital needed? Where and how will the

new investments be utilized? Who are the targeted investors/financiers other than

ICCO.

6) Identify the key success factors, risks and risks

mitigation strategy for the business

What do we want to know from your proposal?

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For further exploration pls. contact

Mr. Toto Camba

Investment Manager

[email protected]

… we mind the gap