Financing Sustainability

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CLIMACT www.climact.com | [email protected] | +32 10 235 431

CLIMACT sa

www.climact.com | [email protected] | T: +32 10 235 431

Financing Sustainability

Business and Society

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at a glance

Mission and values

Réduire la dépendance énergétique et l’impact de nos clients sur le climat.

 Professionnalism and excellence

 Independence and objectivity

 Integrity and durability

A team of seasoned experts

 8 consultants based in Louvain-la-Neuve since

2007

 High expertise in technical, financial, economic

and legal aspects of the energy transition

End-to-end

services  Consulting : Energy transition strategies

Prospective Analyses

Regulatory and market advices

 Structuring of RES/EE projects

 Finance, administration, legal and regulatory

 Operation, maintenance and guarantee of performance

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CLIMACT www.climact.com | [email protected] | +32 10 235 431 Executive team - Climact team combines strong legal, finance, commercial and engineering expertise's from corporate, institutional and consulting background experiences

Michel Cornet – Senior Consultant

Engineering degree – Experience at A.T. Kearney in strategy and in operations and at the UN in

microfinance.

Laurent Noirhomme – Consultant

Engineering degree focus Energy – Experience at UCLouvain as a researcher in Mechanics and Applied Mathematics.

Thibaud Lemercier – Consultant

Commercial engineer (UCL-LSM) et MSc in Environment Technology (IC London) – Experienced auditor and consultant in risk management, energy and sustainability, PWC.

Julien Pestiaux – Director Prospective analyses Engineering degree and Engineering management & sustainable development (Cornell) – Experience at McKinsey and at the EU commission on

climate/energy projects.

Dimitri Mertens – Director Legal and regulatory Law degree and LL.M (UCL, NYU) – Experience with Jones Day (Brussels Bar) and at the EU Court of Justice (EU law and regulation)

Sébastien Piret – Consultant

Engineering degree focus Energy – Experience at Belgacom in CSR and climate change, IT and Project Management.

Hugues de Meulemeester – Director Operations Engineering degree and MBA (UC Berkeley) – Experience at Asea Brown Boveri in energy and automation projects and at Cisco in finance operations.

Pascal Vermeulen – Managing Director Business administration degree – Country

management experience in marketing and sales of consumer products at Unilever and Sara Lee.

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 Today 80% of the world's demand for primary

energy is met by fossil fuels (33% oil, 27% Coal, 21% gas)

 Resorting to these resources is not sustainable

 These resources are finite

 Burning these resources generates GHG

emissions that cause climate change

 Dependency on these resources poses a threat to

our security of supply

 We need a transition towards sustainable energy

 Renewable energy

 Energy efficiency

Energy transition is possible for a global cost similar to a scenario business as usual . It requires significant investments

5 SPF Environnement et Climact , Scénarios pour une Belgique bas

carbone en 2050 Financing Sustainability - Focus on Energy transition

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CONFIDENTIAL 10/3/2014

Climact proposes end-to-end services from the diagnostic to the implementation of concrete solutions for the Energy Transition

 Corporate Environmental Strategies  Diagnostics, objectives & reporting  Energy & Emissions saving plans  Energy & Emissions scenarios  Mitigation & adaptation  Simulations & Decision tools

 Compliance  Public policies

 Carbon & Energy markets

 Structuration, design and business plans  Energy efficiency & renewables

 Photovoltaic, cogeneration, bioenergy  Third-party investment

 Subsidies & administration  Contractual arrangements  Suppliers management  Commissioning & Operations  Maintenance & end-of-life

Private Public Commu

-nities Prospective Analyses Regulatory & Markets Project development Financing & Administration Project Management Reduction strategies

Consulting

Solutions

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Implementation of Energy Efficiency and Renewable Energy projects are not always put in place due to several barriers

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Diagnosis

 Organization’s Energy & GHG assessment

 Product Life Cycle Analyses

 CSR reporting and communication

 Elaboration of tailor-made GHG assessment tools

Action plans

 Energy consumption & GHG emission reduction plans

 Projects structuring on energy efficiency and renewable energy production.

 Technical requirements and financial plans

Financing & administration Barriers to implementation  Cash availability  Payback time  IRR Threshold

 Balance sheet management  Administrative complexity  Uncertainty about regulations

Operations

 Core business

 Technology complexity

Consulting

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Climact goes beyond consulting services by financing, delivering and operating Energy Efficiency and Renewable Energy projects

Diagnosis

Action plans

Financing & administration

Services

 Financing of the projects through an investment fund  Administration for subsidies and registrations

 Contractual arrangements

Operations

 Project management and ensure rapid and smooth process with installation suppliers

 Maintenance, monitoring and optimization of the installations to guarantee maximum return.  Guarantee of performance

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Several energy efficiency & renewable technologies are applicable

CONFIDENTIAL et PV Optimisation des installations HVAC Pompe à chaleur Amélioration de l’enveloppe Puits de lumières Etanchéité Ecologie Industrielle Synergies Photovoltaic Thermic Lighting & IT optimization

Heat pumps Cogeneration and biomass HVAC optimization Insulation Diagnosis Action plans Financing & administration Operations

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Setup of a third-party investor scheme

1. All contractual agreements are prepared

2. Climact invests in new

renewable energy equipment 3. Installation is rented and

customer produces its own energy at a lower cost. Climact operates and maintains the equipment 4. At the end of contract period,

installation is transferred to customer Diagnosis Action plans Financing & administration Operations Ener gy cos ts Time

Savings for

customer

Share of savings

1 2

3

4

Contract

1

2

3

4

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Example of a photovoltaic project

11 Diagnosis Action plans Financing & administration Operations

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Example of a Biomass boiler project Diagnosis Action plans Financing & administration Operations

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13 1. Climact invests in new

Structuration of a project Diagnosis Action plans Financing & administration Operations Climact Solutions company Project Management Energy/equipment renting Equipment & installation Debt & Subordinate Financial lease Real right Financial institutions Inputs Operations suppliers Maintenance Capital Finances Services Outputs Customer Tech. integrator Partner

Third party financing agreement

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Illustrative Planning

2015 2016

mars avril mai juin juil. août sept. oct. nov. déc. jan. févr. mars avril mai juin juil. août sept.

tests

Contractual phase Commande

Activity Responsable

(Pre-) Feasibility studies

Construction phase

Operation phase

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CLIMACT www.climact.com | [email protected] | +32 10 235 431  1500 m² flat roof

 Installation 110 kWc

 Production 95 MWh/an

 Third party financing (TPF) agreement

 Transfer of property at the end of TPF

 Investment ~160K€

 Direct Benefit for IBA

CONFIDENTIAL 15

Concrete example

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