Thammasat Consulting Group provides a summary of their business background and situational analyses of energy access in Africa and India. They identify issues in these markets and objectives to increase environmental/social impact. Strategies proposed include the Path Finding Strategy to invest in sub-Saharan Africa, the Peacock Strategy targeting reduced coal use in India, and the Fund Raising Strategy to generate more funds. Financial projections estimate $36 million cash available for investments by 2020.

1. Thammasat Consulting Group Visaruth Taveeruchana Phornthep Thakral Chatree Wangpanitkul Nattapon Lertpraival

3. COMPANY BACKGROUND Established 1994; Philla Rocco & Christine Eibs-Singer Business focus: Clean Energy Entrepreneurship Honorary Award for outstanding & vision in global renewable energy sector 3 Distinct Wedges Direct Investment Fund & Affiliates Carbon market transactions

4. SITUATIONAL ANALYSIS 1.6 billion people  no access to electricity 80%  rural areas of developing countries 80%  in sub-Saharan Africa and India

5. Funded 3 successful entrepreneurs AFRICA Annaset, Ghana LPG Household  70% Provide 26,958 Vent L’Eau pour la Vie, Senegal Wind pumps  clean water Provide 8,250 New Energies Solar energy target commercial institutions Implication: Scale up impact in Africa SITUATIONAL ANALYSIS 49% of investment  Africa Management focus in African region Less than 1% in Africa

6. Implication: Target India population  1,1 billion people 17% of world population 72.22% of the people live in more than 550,000 villages high rate of coal consumption Percent of the population under the poverty line : 22% INDIA SITUATIONAL ANALYSIS

7. Current sources of funds, Grants  social investors, donors, and charitable organizations Capital investments  E+Co. managed accounts, funds & affiliates Financial limitations Implication: Increase source and amount of funds SITUATIONAL ANALYSIS

8. ISSUES & OBJECTIVES ISSUES African Market Source of Funds Indian Market Where we want to be in 2020 Where we are A company that assist and fund clean energy entrepreneurship Providing 3.6 mn people with modern energy service investing in 138 companies To achieve higher impact on the environment through clean energy entrepreneurship Provide 100 million people with access to modern energy service targeting to invest in 2000 companies

9. Issues Objectives African Market Indian Market Source of funds To increase environmental and social impact of 60m people in sub-Saharan region To increase environmental and social impact of 40m people in the Indian sub-continent To generate more funds in order to facilitate more operations in Africa and India ISSUES & OBJECTIVES

10. II. The Peacock Strategy I. The Path Finding Strategy III. The Fund Raising Strategy

11. The Path Finding Strategy

12. The Path Finding Strategy Why? 1 Where? 2 How? 3 49% of funds in Africa sub-Saharan region  no access to electricity high potential of energy conservation opportunity has funded successful business venture RATIONALE

13. Why? 1 Where? 2 How? 3 The Path Finding Strategy

14. Why? 1 Where? 2 How? 3 Country Mozambique Burkina Faso Malawi Pop. w/o electricity in mil. CRITERIA FOR COUNRTY SELECTION Madagascar Kenya Morocco Cameroon Political Stability Rural Poverty (GNI in $) Rwanda 1 2 3 4 5 6 7 8 Nigeria Zimbabwe 9 10 17 11 15 11 9 13 29 8 73 8 0.55 0.31 0.3 -0.1 -0.14 -0.5 -0.86 -1.35 -1.49 -1.62 The Path Finding Strategy 530 - 1,250 less than 530 Less than 530 less than 530 530-1250 3000-9130 less than 530 less than 530 less than 530 less than 530

15. Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy Past experience with annaset, Vent L’Eau pour la Vie & new energies leverage on the training experience of the above companies Organize seminars & entrepreneur toolkit  encourage & stimulate interest Key message “ Think Business, Think Green” The Path Finding Strategy

16. Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy Past experience with annaset, Vent L’Eau pour la Vie & new energies leverage on the training experience of the above companies Organize seminars & entrepreneur toolkit  encourage & stimulate interest Key message “ Think Business, Think Green” The Path Finding Strategy Prioritization of countries Invest in 810 new enterprise in 14years

17. The Peacock Strategy

18. Population  1.1 billion people

19. 17% of world population

20. 72.22% of the people live in more than 550,000 villages With 22% below poverty line

21. 55% of population don’t have electricity!!!

22. Coal provides 70% of Indian electricity

23. Mining  environmental damage, including pollution of water, depletion of water supply, destruction of land, harm to health and safety, ,major greenhouse gas and leads to more global warming. IMPLICATION: Focus on reducing coal as an energy Why Where 1 2 How 3 The Peacock Strategy

24. Why Where 1 2 How 3 Region Middle West North Population density/Km meter CRITERIA FOR REGION SELECTION Population w/o electricity (in million) Coal consumption (million tons) East South 341 208 441 302 82 140 64 107 129 62 107 49 81 439 170 The Peacock Strategy 1 2 3

25. Why Where 1 2 How 3 COAL CURRENTLY, Unhealthy huge emission of Carbon dioxide Non-renewable energy environmental damaging x BIO-MASS FUEL BRIQUETTES The Peacock Strategy

26. Why Where 1 2 How 3 BIO-MASS FUEL BRIQUETTES RATIONALE A briquette (or briquet) is a block of flammable matter which is used as fuel to start and maintain a fire. replacement for oil & coal renewable source of energy help reduce carbon content in air Eco friendly, non polluting and economical 100% natural available from agricultural waste The Peacock Strategy

27. Why Where 1 2 How 3 Aggressive strategies  financial & HR constraints Proposed JV with ETC Energy RATIONALE Goal congruence Financial and human resource assistance Same size allow flexibility Larger scope of operation The Peacock Strategy

28. Why Where 1 2 How 3 Aggressive strategies  financial & HR constraints Proposed JV with ETC Energy RATIONALE Goal congruence Financial and human resource assistance Same size allow flexibility Larger scope of operation Assist, train, and help local entrepreneurs implement a business model for Briquette usage Ease the Financial & HR constraints Invest in 1009 enterprise in 14 years The Peacock Strategy

29. The Fund Raising Strategy

30. The Fund Raising Strategy Current Strategy Extended Strategy Funds, Partnership and financial institutions Receive Grants & Capital Investments Greenpeace Intl., Citigroup foundation, Bill & Melinda Gates foundation + Approach more foundations To Receive more funds from more foundations Government organizations, terrapass funds etc.

31. Current Strategy Extended Strategy Interest Revenue increase funds for entrepreneur increase in number of successful entrepreneurs leads to snowballing effect The Fund Raising Strategy

32. Current Strategy Extended Strategy Approach large corporations Shell (Oil) BP (Oil and energy) Vodafone (telecommunications) General Motors (Automobiles) Home Dep. (Furniture) Value Proposition CSR image  reputation & brand Competitive Advantage Enhance employee relationship Advertisement Strong relationship with community The Fund Raising Strategy

33. Current Strategy Extended Strategy Affiliate with Banks Target banks worldwide access to large funds Example: HSBC, JP Morgan, Bank of Amercia The Fund Raising Strategy

34. Carbon dioxide offset  396 million tons Reforested land  3309 hectares; 6.6million trees Providing countless Households with clean water Kerosene Displaced  6 million liters

36. 19 20 17 18 15 16 11 12 Path finding Strategy Partner finding The Peacock Strategy African Country Penetration Approach Large corporation India penetration Fund raising 07 08 09 10 13 14 Affiliate with banks One country per year Timeline

37. Financial Forecast $36,449,790 $9,741,328 Cash available for investments 2020 2007

38. Financial Forecast $22,940,969 $6,645,182 Total Investment 2020 2007

39. Financial Forecast

40. Key Success Factors Attraction of entrepreneurs Negotiation Skill

41. Conclusion Issues African Market Indian Market Source of funds Objectives To increase environmental and social impact of 60m people in sub-Saharan region To increase environmental and social impact of 40m people in the Indian sub-continent To generate more funds in order to facilitate more operations in Africa and India The Path Finding Strategy The Peacock Strategy The Fund Raising Strategy

43. Thank you Q&A

44. Slide Navigator Company Background Situational Analysis Issues and Objectives Recommendations The Path Finding Strategy The Peacock Strategy The Fund Raising Strategy Financial Justification KSF Conclusion Strengths Weaknesses Opportunities Threats

45. Slide Navigator Risk Factors Why not carbon? Risk of 12 year strategic plan Other Joint Venture Sources and Citation IS Assumption Average seed investment Average loans Loan payment assumption No. of Enterprise

46. Strengths Proven successful business model Learning culture E+co’s enterprise model was “technology neutral”

47. Weaknesses Limited pool of resources Small identified pool of entrepreneurs

48. Opportunities La Espranza hydroelectric project Partners carbon

49. Threats

50. Risk Factors Limited pool of entrepreneurs focusing on energy-related business Large corporations do not sponsor us High failure rate of new entrepreneurs Economic Crisis: entrepreneurs are dependant on economic and political stability

51. Why not carbon? Trading of carbon credits does not reduce the overall emission of carbon Past history have invested a lot of money with La Esparenza but only impacted 194 households Limited resources both financially and human resource

52. Risk of 12 year strategic plan Uncontrollable factors Disasters Political instability Economic instability

53. Other Joint Venture Stern Fisher

54. Sources and Citation http://www.worldcoal.org/pages/content/index.asp?PageID=402 http://www.ruralpovertyportal.org/english/regions/asia/ind/index.htm

55. IS Assumption Revenue: Contributions – last yr contribution + 10% growth - Contribution from large corporations + 10% growth Program revenue - % of investments in programs Interest income – Cash 2.7% (from annual report) - Loans 8.6% - Dividend yield 6.3% Other income – Remain constant Expense: Program service - % of investments in programs Management and general – Constant growth of 10% Grant procurement - % of contribution Other expense – Remain constant

56. Average seed investment 15012 Equity 109988 Debt 125000 Average investment per enterprise 118 Total no. of investment 14721633 Total amount of investment 12% 1768000 Equity Investment 88% 12953633 Debt Investment From 1998 to 2006

57. Loan receivable schedule 0 27765 25637 2128 25637 5 25637 27765 23673 4093 49310 4 49310 27765 21858 5907 71168 3 71168 27765 20183 7582 91352 2 91352 27765 18636 9129 109988 1 Ending Balance Total Pmt Principal pmt Interest pmt Beginning Balance Loans receivable schedule Average loans($109988, 5 years, 8.3%) :

58. Loan payment assumption Loans payment (5yr, 6.5%)

59. No. of Enterprises 224 1956 2020 10% per year 102 million Total Customers 15% Growth of customer base 15000 Customers of new enterprise 26000 No. of customers per old enterprise 203 138 Culmulative No. of enterprise 65 New enterprise 2007 2006 With Recommendation:

60. No. of Enterprise 2020 48 524 46 million Total Customers 10% per year 15% Growth of customer base 26000 No. of customers per enterprise 152 138 Culmulative No. of enterprise 14 New enterprise 2007 2006 Without Recommendation:

61. Cost estimation Contribution from large corporations Funds from large corporations $ 22,724,275 Promotional marketing activities Expenses $ 185,898,844 Loans given out Capex