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


Agenda

Siemens World

SFS World

Siemens Turkey

SFS Turkey

Siemens Leasing Turkey


Siemens World

SFS World

Siemens Turkey

SFS Turkey



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


Siemens World

SFS World

Siemens Turkey

SFS Turkey



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


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


Siemens World

SFS World

Siemens Turkey

SFS Turkey



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


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




Core Businesses

JointVentures




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 World

SFS World

Siemens Turkey

SFS Turkey



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


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


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


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


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


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.


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%)


Siemens World

SFS World

Siemens Turkey

SFS 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


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.


THANK YOU

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