Investment in Waste and Recycling Technologies

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Investment in Waste and Recycling
Technologies Peter Borgers North East Recycling
Forum Annual Conference Durham 27 November 2007
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Triodos Bank Group in 2007Europes Leading
Social Bank

• Independent
• With four branches (The Netherlands, UK, Belgium
  and Spain)
• Representation in Germany (new!)
• 25th Anniversary in 2005

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Triodos Bank Group Key figures - 2006

• Over 100,000 customers ( 10)
• Over 9,000 shareholders ( 13)
• 4,000 projects
• Euro 3 Billion in funds
• 300 co-workers

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Key Figures - UK

• 22,000 personal savers
• 3,000 business customers
• 600 projects
• Lending of over 150 million

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Key Sectors

• Renewable Energy
• Environment
• Charities
• Social Housing
• Social Enterprise
• Organic Farming

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How does it work?

• We have a community of savers who want their
  money to make a positive difference
• and we only lend to projects that benefit people
  and the environment

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Banking and Investment Services

• Term Loans
• Overdrafts
• Project Finance
• Current and Savings Accounts
• Internet Banking
• Equity Mezzanine Triodos Renewables and
  Triodos Ventures
• Investment Banking

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Lending Structures

• Amounts 25k - 15m
• Pricing Base rate linked or fixed rate
• Term up to 25 years
• Security Assets or Project Cash Flows

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Term Loans Overdrafts

• Suitable for established businesses
• Rely on management, market (competitors,
  customers, suppliers) historic track record and
  forecasts demonstrable cash flow
• Security Assets, SFLG or Cash Flow

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Investment Readiness

• Business Plan to cover
• Business, activities and operations
• Sector market customers, suppliers, growth
  prospects, competitors
• People skills and experience
• Financials historic accounts, management
  accounts, budget and cash flow forecast,
• funding needs
• Risks

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Project Finance

• One or more specific items of capital
  equipment/plant
• Non Recourse Special Purpose Vehicle (SPV)
• Technical Assessment and Energy Yield
• Construction Turnkey or Piecemeal?
• Warranties Availability, Service and
  Maintenance Term, Financial capability
• and Insurance

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Project Finance (cont.)

• Site Owned or leased Accessibility
• Grid Connection
• Heat Connection
• Construction costs
• Feedstock Supply Quantity, Quality, Term,
  Price, Counterparties
• Offtake Agreements Power and Heat Term,
  Pricing, Counterparties

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Triodos Recycling

• We lend tocommunity recycling operations,
  renewable energy projects, kerbside collection
  schemes, composting businesses, manufacturers of
  products from recyclates, furniture reuse schemes
  and sustainability consulting firms
• We provide term loans for premises purchase and
  site acquisitions, capital expenditure, growth
  and development project finance overdrafts for
  working capital banking accounts and services

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Recycling Projects

• Community Recycling Network Scotland
• Magpie Recycling Co-operative - Brighton
• Mid Devon Community Recycling - Exeter
• Simpro - Wolverhampton
• Childrens Scrapstore - Bristol
• Fairfield Holding - Manchester
• Resource Futures Bristol/Leeds
• Green Glass - Cornwall
• Rugby Bareboards Trust - Rugby

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CRNS

• Overdraft banking facilities
• Linkage and introduction to members
• Fit with environmental focus

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Magpie Recycling Co-operative

• Established 1992 as a co-operative
• Green box scheme, canvassing education, 2nd
  Hand Furniture Shabitat
• Diversified activities and income streams

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Mid Devon Community Recycling

• Kerbside Collection local authority contract
• Sale of recycled materials
• Education
• Business waste collections
• Overdraft for working capital, bank accounts

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Mid Devon
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Simpro

• Innovative composting operation
• Green waste from local authorities
• Long term contracts
• Term loan to buy site
• Other bank lending for site expansion

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Simpro
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Childrens Scrapstore

• Registered charity
• Encourages creative play through reuse of
  unwanted materials
• Collects waste from 400 businesses sells to
  members through warehouse
• Trading subsidiary Artrageous
• Term loan for purchase and refurbishment of
  premises

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Fairfield Holding

• Green waste composting
• Large scale vertical composting scheme
• Organic waste from local council
• Sell compost to parks, schools, households,
  allotments
• Overdraft and loan facilities to help finance
  equipment purchase

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Resource Futures

• Research, Consultancy, Advice on waste
  management, recycling environmental issues
• Overdrafts for working capital

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Green Glass

• Convert glass bottles into drinking glasses
• Beer bottles into champagne flutes!
• Term loan for equipment purchase and automation,
  enabling growth step up
• Overdraft for working capital

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Green Glass
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Bioenergy
Broadly three options
1. Combustion
2. Anaerobic Digestion
3. Biofuels
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Our Dutch Biomass Projects
Ecopark Harlingen Biodiesel from Rapeseed
Woagen BV Tweede Exloermond, Anaerobic Digestion

Bioenergie Twente Goor, Wood burning boiler

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Key Characteristics Dutch projects

• Known technology, with established track records
  and measurable reference projects
• Long term supply contracts
• Long term offtake agreements
• Owner managers invest in projects and/or supply
  feedstock and/or take power/heat

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BioFuel Ecopark Harlingen

• Rapeseed Oil Press
• Equity from developers. Euro 3mTriodos Bank loan
• Turnkey installation five years warranty and O
  M agreements
• LT supply agreements for 25 of rapeseed
• LT offtake agreements for rapeseed oil

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Anaerobic Digestion Woagen BV

• On farm Anaerobic Digester
• Inputs grain, corn, sileage and manure 50
  from own farm, 50 LT supply contracts
• Outputs electricity 10 year offtake agreement
  agmt heat 5 year offtake agreement with
  chicken farm
• EUR 2.1m Triodos Bank loans

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Wood burning boiler Bioenergie Twente

• EUR 5m Triodos Bank loan
• Key shareholders Company involved in forestry
  management, wood recycling. Company involved in
  local electricity generation
• Inputs forestry arisings (clean wood) and waste
  wood (10 year supply contract)
• Outputs Electricity (10 year offtake agreement)
  and heat

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Peter Borgers 0117 980 9634 07789 605
085peter.borgers_at_triodos.co.uk

• Triodos Bank NV, Brunel House, 11 The
  Promenade
• Bristol BS8 3NN
• Triodos Bank NV (incorporated under the laws of
  the Netherlands with limited liability,
  registered in England and Wales BR3012).
  Authorised and regulated by the Dutch Central
  Bank (DNB) and by the Financial Services
  Authority (FSA) for the conduct of regulated
  activities in the UK