Financiering circulaire economie’ door Jack Wasser (De Lage Landen). Onderdeel van de presentaties van het lectoraat symposium Finance & Sustainability.

1. Financiering Circulaire Economie
Avans Hogeschool, 11 september 2014
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2. 2
De Lage Landen
Topics:
 Introduction to De Lage Landen
 Circular Economy &
Life Cycle Asset Management
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3. 3
Introduction to De Lage Landen
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4. 4
De Lage Landen
Our mission
To enable businesses to use the assets they need to contribute meaningfully
to the world, both economically and socially.
We create success for our partners, their customers and ourselves
by seeing what really counts.
v.7/2012

5. 5
De Lage Landen
In a nutshell
 Founded in 1969
 100% subsidiary of
the Rabobank Group
 Worldwide network
– Active in 36 countries
 More than 5,400 FTE
– Of which 80% outside the Netherlands
 Financial results 2013:
– Total credit portfolio EUR 31,5 billion
– Net profit EUR 402 million
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6. 6
De Lage Landen
Rabobank parentage 2013
 An international All-Finance organization
 Balance sheet of EUR 674 billion
 Headquarters in Utrecht,
the Netherlands
 Consists of 129 member banks
 59,000+ fte total Rabobank Group
 Represented in 47 countries
 Rabobank has the highest credit rating of all
privately owned banks, awarded by rating
agencies Moody's, Standard & Poor's, Fitch
and DBRS
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7. 7
De Lage Landen
Vendor Finance Financial & Mobility Solutions
Car Lease
Products & Services
Food & Agriculture
Construction, Transportation
& Industrial
Office Technology
Healthcare & Clean Technology
Consumer Finance
Factoring / Receivables
Equipment Leasing
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8. 8
De Lage Landen
Portfolio per Business Unit 2013
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9. 9
De Lage Landen
Portfolio per Region 2013
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10. 10
De Lage Landen
Our sustainability pillars
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11. 11
Circular Economy & Life Cycle
Asset Management
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12. 12
De Lage Landen
Circular Economy; 4 important pillars
 Reduce and manage waste
– e.g. Bio-based reproduction of greenhouse waste or heat recovery from
the greenhouse sector for the benefit of private households
 Stimulate co-operation and interaction between different
value chains
– e.g. Refurbishment of obsolete wine barrels into wooden garden
furniture
 Design for reproduction (multiple life cycles)
– E.g. Design to anticipate the reuse of component modules or increase
scrap values for carpet tiles, trailers, office furniture, cars etc.
 Re-design of business models based on ‘temporary’
usage
– E.g. Rental solutions including full operational services and risk retention
during the subsequent economic life cycles

13. 13
De Lage Landen
De Lage Landen is leading in Life Cycle Asset
Management
 Number of pilot projects in close co-operation with our global vendor
partners:
– See examples
– LCAM; Leasing Life Award winner 2013
 Guided choices towards a circular business model
(published in November 2013, pdf free available on the internet)
– Co-Assigment with Samenwerkingsverband Regio Eindhoven (SRE) to guide
Dutch based SME companies :
Guidance:
– Awareness of the opportunities and challenges
– Your company and dialogue with your business environment
– Product (re)design
– Service model (re)design
– Business models; Sale a/o Rental
 Partner of the Rabobank Circular Economy Challenge

14. 14
De Lage Landen
Leasing is the ideal method of ‘acquiring’
equipment
 Movable assets
 Fixed repayments
 Fixed terms
 No other security is required
 Payments can be tailored to mirror
the cash flow of the business
 In general carry a lower interest rate
 The term is designed to match the economic
life of the equipment
Leasing enables better management of
cash flow and does not put a financial strain
on the business

15. 15
De Lage Landen
Pay for use rather than ownership of
equipment
Owner of the equipment (the lessor)
agrees to let another party (the lessee)
use the equipment for a specified period
of time for the payment of rentals
 Customer chooses to lease equipment
 Benefit from the usage of it
 Keep valuable working capital within the business

16. 16
De Lage Landen
Benefits
Obsolescence protection
 No burden of ownership
 No risk of obsolescence because of upgrade options
 Usage of the equipment
 But no worries of equipment write-offs
 No other unexpected costs of maintenance and service
100% financing
 Full financing of the investment
 Finance other costs (installation, maintenance, service and insurance)

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De Lage Landen
Life Cycle Asset Management: 2 Examples
 Linde, Forklifts
– Linde : 3 Factory Certified Levels for refurbished forklifts
– Customer demands: desire for lower utilization costs by large fleet owners,
lower entry barrier to select Tier 1 material
– DLL provided sales force of Linde with a pre-defined residual value matrix
based on level of refurbishment
– Forklifts < 7 years and < 7000 running hours
 Schmitz Cargobull, Curtain Sider Trailers
– Life Cycle Trailer Management: Srapping - Reusing - Refurbishing
– Scrapping: scrap values End of Life determined during a pilot, research
showed consistent raw material prices
– Reusing – Refurbishment: refurbishment costs depend on economies of
scale, matureness of the refurbishment process, scrap values of the replaced
components
– Next phase: scrap large number of trailers and bring large number of
refurbished 2nd life trailers to German market

18. 18
Discussion & Questions
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