2008 2nd Place

E+Co Vision 2020: Breaking New Grounds Sagar | Catherine | Kelvin | Esther

Vision 2020 Strong Business Model Learning Culture E N T R E P R E N E U R S 100 million

Direct Investing

Increasing pool of entrepreneurs

Attracting Funding

Vision 2020 Strong Business Model Learning Culture 100 million

Funding & Affiliates (Partners)

Carbon Markets

New Geographical Markets

Nigeria, Indonesia etc.

Existing Markets Penetration

China, India, Brazil etc.

Water Purification

Clean drinking water

Increase Entrepreneurs

Attract fresh entrepreneurial talent

Outreach Programs- Quarterly Regional Workshops

Past Successes

Community Heroes

Past Program Beneficiaries

Provide Information on

Local market demand for clean energy ideas

Possible clean energy ventures

Toolkit Usage

Business Plan creation tips

Outreach Programs- The Benefits

Relatively cheaper than fieldwork

Less time and labour intensive

More personal/user-friendly than the Toolkit

Collaboration with Microfinance Institutions

Why?

MFIs have access to an existing pool of

entrepreneurs

Local expertise and knowledge

How?

MFIs guide borrowers to E+Co

Collaboration with Microfinance Institutions

India - SKS Microfinance; Share Microfin

Brazil - Fininvest

Mexico - Financiera Compartamos

South Africa – Microloan Foundation

Uganda – Microfinance Union

What’s in it for the MFIs?

Option of partial (smaller proportion) funding of

the new high-end business

continued interest income

Increase Funding

1) Local Banks

Provide seed funding & growth capital

Why? Lesser default risk with E+Co supporting

the venture

Diversifies banks’ credit portfolio

2) International Banks

Engage them in closing mega funds

Similar to Triodos Partnership

Potential partner: HSBC

Increase Funding

Pitch E+Co’s capabilities of making significant

social impact

Potential for huge source of funding with

rising number of CSR-conscious companies

4) Partnership with other like-minded organizations

Maintain existing partnerships like

Bill & Melinda Gates Foundation

Further establishing new partnerships, especially

with local foundations

Increase Funding

Carbon Markets

Carbon credit certification Large investees Small investees Engage in Carbon trading (Scale justifies cost) Establish E+Co Carbon Fund (ECF)

Corporation/ Institutions

Individuals

Online portal linked to GMS to provide

comprehensive borrower information

Should provide an avenue for individuals to

reduce their carbon footprints

High quality carbon offsets

Expansion

Criteria for choosing new markets

Significant population

For maximum customer reach

Poverty indicators

Relative political stability in near future

High growth potential

A new set of entrepreneurs tapped into

Plenty of business opportunities for

clean energy entrepreneurs

In line with past strategy of entering into new

markets across continents

Spread socio-economic and environmental

benefits to newer regions

Water sector Why Water?

Complementary to energy sector

Business Model replicable

Significant demand for water management in

developing world

Plenty of international organizations for support

WHO, SEAWUN (South East Asia Water

Utilities Network)

Water provision

Water purification

Water conservation

Africa & parts of Asia

Low Actual Renewable Water Resources

(metre cube per person)

High Dependency Ratio on resources

For e.g. Uganda, India etc.

Target Status

Customer base by 2020 113,370,968

Entrepreneur reach by 2020 42,235

THANK YOU Any Queries?

Slides for Further Analysis 1)Type of organization 15) Incremental Income Stat. 2)E+Co’s Strategy and Culture 16) Meeting entrepreneur target 3)Direct Investing 17) Meeting Customer target 4)Selection of New Markets 18) NPV 5)Number of markets 6)Education Programmes 7)MFI collaboration 8)Kyoto Protocol 9)Cost of Carbon Certification 10)Differentiating for online individual investors 11) Water & Energy 12) CSR conscious companies 13)Tipping Point 14)Pitch for Carbon Fund 15) Benefits of workshop Start Entrepreneurs Funding Expansion Water Time + Financials

Type of Organization

3 Levels of Org

Non-profit, Not-for-profit, For-profit

According to E+Co’s audited financial statement, E+Co is a not-for-profit. They aim to develop business AND make money for sustainability

E+Co’s Strategy and Culture

Two-headline strategy:

Tradition of Experimentation will Continue

Funds and Affiliates Approach Adopted to Tap Growth Potential

Culture:

Flexible, creative and open

Why involve in high risk direct investing?

Necessary to achieve the targets because

Increases local presence

Better able to adapt local needs

Allows for Width investing and pave way for depth investing subsequently

Selection of new markets

South Africa used as a reasonable benchmark

Population statistics from UN ESA year 2005

GNP figures dated 1998 from World Bank

5,861 4,180 7,450 740 2,407 11,728 GNP per capita (PPP$) 44 946 Columbia 27 274 Peru 104 266 Mexico 141 356 Nigeria 226 063 Indonesia 38 747 Argentina Population (thousands) Country

Why only few new markets targeted?

Penetrate in existing markets

Depth investing

Targeted markets allow for maximum developing world coverage

China, India, Brazil, Indonesia, Argentina, Bangladesh, Nigeria

Political or economic instability eliminates a lot of markets

Resource limitations

Education/training programme

Partner entrepreneur schools to get people to start up a business

Target people with entrepreneur spirit, want to make money with any business. Encourage them to clean energy business. Channel their entrepreneurial spirit into clean energy business and give them funding.

Field work team will have training and talks on clean energy business

Toolkit self-select. They have ideas already. Now we can reach people who don’t know what they want to do.

Why would E+Co want to implement the training workshop? E+Co Target Audience Convert E+Co Programme Attendees Convert Field Work Workshop

Will target segment of MFI be in line with target of E+Co?

MFIs target segment

Low-end borrowers = not E+Co’s target

Higher-end borrowers = E+Co comes in

When MFI borrowers big enough to step up to higher-end businesses

E+Co provides

Funding

Training & Service Support

E+Co acts as a subsitute for local bank lending

Expire of Kyoto Protocol in 2012?

Trend likely to continue as countries increase efforts to battle global warming

Market is rather established thus likely to further grow

Ratification of protocol by Australia (check)

Why is it costly and administratively demanding for certification of carbon credit?

Require independent verification by third party according to ISO/ IEC Guide 17030 and get Letter of Approval from government

How E+Co differentiate from the other online investing businesses?

E+Co provides high quality carbon offsets (additionality principle that are highly regarded for carbon-conscious consumers.)

Will water initiative cannibalize the energy initiative?

Pool of entrepreneurs big enough

There are entrepreneur-wannabes who are interested in the area of water

Increase pool of entrepreneurs through field work

Why would CSR conscious companies choose E+Co?

Differentiating factors

Unique and proven business model

Able to achieve sustainable social development

Achieve triple bottom line performance

Reach tipping point sooner?

Wouldn’t reach tipping point by 2020

Too many developing countries

Too many opportunities

Energy alternatives will take time to develop scale

If tipping point reached

Exposure to other sectors would help

Eg. Water, Disease control

What is the sales pitch to convince institutional investors for carbon fund?

CSR conscious firms

Environmental friendly institutions

Government funding

Customer Target

Entrepreneur Target

Incremental Revenue 1,082,140 689,074 464,340 325,518 TOTAL grow at 1% per year 2,823 2,713 2,607 2,505 248,017 Other income Growth of 27% (approximation from energy market of 30%) 337,585 129,768 49,883 - Interest income water sector First 2 year grow at 10% and subsequently 15% until last 2 years at 10% 325,588 203,464 116,331 66,513 604,660 Interest Income Program revenue grow at 10% 130,065 88,836 60,676 41,443 376,753 Program Revenue grow at 5% per year for 5 years and drop 1% each year after to reach a rate of 2% each year F&A 286,080 264,293 234,843 215,058 4,096,342 Contributions Growth rate Initiative 2020 2016 2012 2008 Average Revenue and Support Projected

Incremental Expense $1,897,532 NPV 7% Cost of capital 595,453 309,138 168,173 93,820 (3,922,725) Increase in Net Assets 486,687 379,936 296,168 231,698 3,922,725 TOTAL 20,000 25,000 50,000 - - Costs of entering water sector 1,299,403 70,527 40,324 - - Costs of entering new markets 597,975 575,975 553,975 542,975 - Initiative to increase entrepreneurs conservative est to grow expense at 5% 22,465 18,482 15,205 12,510 238,278 Other conservative est at a high rate of 12% to 10% F&A & Carbon Mkt 146,492 100,056 65,910 42,264 314,467 Grant Procurement Increases at 5% due to inflation 62,970 51,806 42,621 35,064 667,892 Management and General Increases at 5% due to inflation 254,760 209,591 172,431 141,860 2,702,089 Program Service Expenses

25,000 Market Research 8000 10000 20,000 40% Marketing 6000 7500 15,000 30% Employing new staff 6000 7500 15,000 30% Setting up office 20,000 25,000 50,000 4. New Business 519,761 28,211 16,130 40% Employing new staff 779,642 42,316 24,194 60% Setting up office 1,299,403 70,527 40,324 667892 3. New Markets 98,693 67,409 46,041 31,447 314,467 2. Grant Procurement Value for maintaining toolkit 2500 2500 2500 2500 The Entrepreneur Toolkit $500 quarterly for outreach 70,000 62,000 54,000 50,000 Outreach Programs (4 times a year) $50 Retaining costs per entrepreneur 402,975 402,975 402,975 402,975 Retaining $3500 yearly on marketing 122,500 108,500 94,500 87,500 Tap into MFIs 597,975 575,975 553,975 542,975 1. Increase entrepreneurs 2020 2016 2012 2008 Historical Average INCREMENTAL EXPENSES

THANK YOU