The Off-Grid Energy Investment Opportunity and Risks

1. 127 October 2015
Investing with Impact
27 October 2015
Bamboo Finance
Investing In Off-Grid Energy

2. 227 October 2015
Content
About Bamboo Finance

3. 327 October 2015
A Global Private Equity Firm
• Impact Investing and Microfinance pioneers
• Management team with track record
• Diversified portfolio by geography and stage
• Demonstrated returns with exits delivering IRRs from
18 - 39%
• Tangible significant social impact with top quintile
rating by third party
• Strong investor base – 75% institutional investors
$280M
Private Equity
38
Investments
>20
Countries
4
Regional Hubs
Bamboo Finance is a commercial investor
specializing in low-income consumer business
models that produce and deliver essential products
and services in frontier markets.
3
Funds

4. 427 October 2015
• Invest in companies that reach
underserved regions in emerging
markets profitably
• Focus on affordable healthcare,
education, housing, financial services,
agribusiness and renewable energy
• Fund innovative distribution and
financing models
• Expand and strengthen local
economies, communities and
businesses
• Integrate impact measurement
alongside financial performance from
the beginning
• The company delivers or supports
the delivery of essential products
and services to low income
consumers in emerging markets
• The usage of the product/service
results in increased income or
reduced expenses and better
quality of life
• The company generates
employment/income in local
communities
• Map impact objectives, governance,
policies, distribution channels,
supplier integration, human resource
practices and incentives to the
company’s business model
• Establish a set of output indicators
that the company will report on a
quarterly basis
• Take a board seat and contribute to
social and financial performance
ongoing
• Support the use and advancement of
third party impact measurement
systems and initiatives
INVESTMENT CRITERIA AND IMPACT MANAGEMENT
INVESTMENT
STRATEGY
INVESTMENT
CRITERIA
IMPACT PROCESS &
TRACKING
About Bamboo Finance

5. 527 October 2015
FIRST GENERATION OF FUNDS
Oasis Fund
Fund size
# of Investments
#of Exits
US$ 195 Million
30 Investments
4 Exits
US$ 53 Million
16 Investments
2 Exits*
Strategy
The Bamboo Financial inclusion fund invests
in a range of microfinance institutions and
funds serving the lower socio-economic
segments in emerging economies
The Oasis Fund invests in commercially
viable companies that provide access to
housing, healthcare, education, energy,
financial services and agriculture
Portfolio
sample
Financial inclusion Fund I
* Represents Debt Investment and Partial Equity Exit
About Bamboo Finance

6. 627 October 2015
About Bamboo Finance
A portfolio of 38 investments across more than 20 countries
XAC BANK
(Mongolia)
APOYO INTEGRAL (El Salvador)
EFC
(Zambia)EDPYME NUEVA VISION
(Peru)
SICSA
AAVISHKAAR
AFRICAP
FASO (Uganda)
APOYO INTEGRAL (Mexico)
BANCO FIE (Bolivia)
FIE GRAN PODER
(Argentina)
BANCO WWB CALI
(Colombia)
CREATION
INVESTMENTS
APOYO INTEGRAL
(Guatemala)
CFE (Panama)
SVASTI (India)
ASMITHA (India)
MIBANCO (Peru)
AMfB
(Nigeria)BANCO POPULAR
(Honduras)
BAI TUSHUM
(Kyrgyzstan)CHF (Romania)
CHF (Lebanon)
CFE (Tanzania)
EAMF
(Cameroon)
EASL
(Ghana)
CFE (Uganda)
FINAE (Mexico)
BILLE (Brazil)
IMMERSION
(Pakistan)
GREENLIGHT PLANET
(India)
VAATSALYA
(India)
HUSK (India)
VORTEX
(India)
JOMA (Vietnam,
Laos)
KOPO KOPO
(Kenya)
VIDAGAS
(Mozambique)
CARECROSS (South
Africa)
Financial Inclusion Fund Investments
Oasis Fund Investments
Offices
Bogotá (Colombia)
Geneva (Switzerland)
Singapore
Luxembourg
ORB (India)
Nairobi
BRIDGE
(Philippines)
COAST COCONUT(Kenya)
MODERN FAMILY
DOCTOR (India)
BRAZIL+
BBOXX (UK, East Africa)

7. 727 October 2015
Content
The Off-Grid Energy Opportunity

8. 827 October 2015
Solar Makes Sense…
Solar is the best energy solution for off-grid:
 Geographical spread of countries in South East Asia
and large rural off-grid markets in Africa make solar
the most appropriate technology.
 Distributed solar energy is cheaper than extending
the grid and will drive off-grid electrification in Sub-
Saharan Africa, South Asia & Southeast Asia.
 Africa has been leapfrogging telephony and
banking. The same will happen to energy.

9. 927 October 2015
Large Underserved Market…
Large underserved market for fast growing
companies:
 The off-grid SHS (solar home system) and
appliances market size is estimated to be USD 50
billion. This market size grows significantly if adding
business opportunities around the provision of
content (internet, e-learning, entertainment, etc).
 A new breed of fast growing off-grid energy
companies is seeking capital to expand.

10. 1027 October 2015
Social & Environmental Impact…
There is a significant development impact:
 Energy is the basis of development. Clean energy is the
basis for sustainable development.
 Investments in off-grid energy have the potential to create
a virtuous cycle in which energy access enables economic
development which triggers more demand for energy.
 We can’t afford that the 1.3 billion off-grid people develop
with traditional polluting energy. If we want to reduce
carbon emissions and fight global warming, we have no
choice but to invest in renewable energy for off-grid
communities

11. 1127 October 2015
Stanford Energy Club,
Berkeley Energy & Resources
Collaborative, Oct 2014
“…This exciting development…may also
foreshadow how the energy system of the
future will look.
As these systems continue to develop they
will be able to meet increasingly greater
energy needs, such as enabling the use of
refrigerators, and spur increasingly complex
types of economic development…”
“… Africa’s leapfrogging of the traditional
energy infrastructure…”
…Confirmed By Many Experts
Report on the Off-grid Lighting
Status for Southeast Asia and the
Pacific, Nov 2014
“…population of Southeast Asian countries…is
around 507 million, of which nearly 111 million
(around 22 per cent)…do not have access to grid
electricity…”
“…due to the geographical location…generation of
electricity through solar energy is the most
appropriate one.”
“…A full transition to energy efficient off-grid lighting
in Southeast Asia would result in energy savings of
19.3 million barrels of crude oil energy equivalent;
cost savings of USD 1,423M; and a CO2 reduction of
approximately 7 million tonnes.”

12. 1227 October 2015
Recent Off-grid Energy Deals
Several off-grid solar firms raised US$44 million in the first two months of 2015 from major
strategic and financial investors, continuing from the US$64m raised in 2014. This includes debt
and equity investments and shows increasing exit pathways for SFA portfolio.
US$10mn
US$12.5mn
Warner
Phillips
US$12.6mn
Some of
the
investors in
2014
US$7mn
US$2.1mn
US$0.5mn
US$2mn

13. 1327 October 2015
Energy Access Sector Overview
Energy poverty has moved from being only a huge development problem to a large market
opportunity driven by developments in renewable technologies, mobile penetration, economic
development, population growth, price of fossil fuels, mobile financial services etc.
Slow grid extension demands for off-grid solutions !
• Grid extension is a resource intensive long-term
effort facing multiple challenges
• Long distance transmission lines are not cost
effective in rural, less densely populated areas
• This is even more the case if terrain is difficult
(mountains, islands, etc.)
• It is therefore expected that 70% of rural areas
will be connected with either mini-grids or with
stand-alone off-grid solutions
Key Growth Drivers
Active SIM
Connections
3G
penetration
rate
Smartphone
penetration
rate
56.9M
Mobile
Money
Users
56.9M
Renewable
Technology
Prices
Kerosene &
Diesel Costs
Un-electrified population in Africa:
 More than 500m people as of
today
 Expected to grow by 2030 to
700m as rapid population growth
is outpacing the many positive
efforts to provide access
 Nearly 80% of those lacking access
to electricity across sub-Saharan
Africa live in rural areas.
Un-electrified population in South &
South-East Asia:
 More than 800m people as of today
 Most of these households depend
on conventional fuel burning that
pollutes and damages, both their
health and environment, indicating
a great need for clean and
affordable products.
Un-electrified population
2009: 1.3 billion people
2030: still 1.3 billion people,
with 700 million alone
in Sub-Saharan Africa

14. 1427 October 2015
Climbing the energy ladder requires appropriate energy sources offering a growing investment
opportunity…
Market Potential
Market size estimates (AT Kearney 2014):
• Today’s solar portable lamp market volume : $200M
• Short-term solar portable lamp market volume : $2.71Bn
• Mid-term Solar Home System (SHS) market volume : $6Bn
• Long-term SHS and accessories market :$50Bn
including devices aiming at powering
• Radio
• Television
• Others (e.g. fans, refrigerators, tablets, smart phones,
etc.)
• Large additional market opportunity: provision of content
from movies to music, internet, etc.
…exemplified by exponential growth of off-grid
energy companies:
 Example 1: Company selling solar lamps growing from $1m
business to $21m in just 3 years
 Example 2: Company offering SHS with PAYGO technology selling
300’000 systems within 3 years.
 Example 3: The Bamboo’s latest investment in company
expected to sell 100’000 SHS within 2 years
inter-connected
Households
Portable
Low High
PL
SHS
Mini-
grids
Cost of Solutions
Modern
Productive
Basic
Low High
Energy level
Use
Market potential
Time Horizon
Today Short-term Mid-term Long-term

15. 1527 October 2015
Content
Bamboo Off-Grid Solar Energy Experience

16. 1627 October 2015
Bamboo Off-Grid Energy Examples
Bamboo Finance has a track record of successful investments in off-grid energy companies. Current portfolio companies show
strong growth and significant value increases through third party transactions.
February 2012 January 2015
Bamboo invests in Series A
round of Greenlight Planet.
Fidelity invests in Greenlight
Planet in Jan 2015 at
significantly higher valuation
than Bamboo.
"Greenlight Planet has established itself as a product leader with a
strong brand in the fast-growing off-grid energy segment. We are
excited to partner with Greenlight Planet and its exceptional
management team as the company embarks on its next phase of
growth." – Kabir Narang, Managing Director of Fidelity Growth
Partners India
Greenlight Planet
September 2012 January 2015
Bamboo purchases shares of
Orb from Zouk Ventures.
"We have reviewed many solar businesses now entering the African
market, and we found Orb's diversified range of solar products,
designed and manufactured by Orb to the highest standards of
quality, to be very compelling. This, combined with Orb's unique
branch network for the sale, installation, and service of residential
and commercial customers gave us confidence that Orb will serve
the Kenyan customer and its banking partners well. The investment
fits well in FMO's renewable energy strategy for Africa.“ – Robert
Voskuilen, Senior Investment Officer, FMO
Orb Energy
October 2012 August 2014
“Where Husk is going is very positive, it is not fixating on one
technology, it is fixating on solutions.” – Daniel Kammen, energy
researcher at the University of California, Berkeley.
Bamboo invests in Husk Power
Systems in October 2012.
Husk Power Systems
February 2015 February 2020
“Bboxx records customer usage data in minute detail. Gathering
data on customers' energy usage behavior is the only way we can
learn how to provide energy as a reliable service. We believe this
innovation is central to unlocking the pay-as-you-go business model
and making solar energy an accepted, trusted and financeable
product in the eyes of the off-grid world.” – Sandhya Hegde from
Khosla Impact
Bamboo invests in BBOXX in
February 2015.
BBOXX
FMO invests in Orb Energy to
support Africa expansion at a
significantly higher valuation
than Bamboo.
First Solar Inc. invests in Husk
to support expansion to solar
mini grids at a significantly
higher valuation than Bamboo.
Company expected to show
strong growth over a 5 years
holding period. Exit to strategic
or financial investor.

17. 1727 October 2015
Content
Risks & Mitigation

18. 1827 October 2015
Focus on Downstream
Bamboo invests in innovative businesses
downstream the energy value chain: no
upstream risk
Product design and
engineering
International
distribution
Manufacturing
National
distribution
Retailing
Manufacturers
Consumer
financing
Distributors and retailers Consumers
• Need capital for R&D in product
tailoring to BoP customers and to
pass along good terms to logistics
and distributors
• Distributors and retailers need to finance upstream and
downstream
• Huge working capital needs because of long transport and
distribution times
• More than 50%
of consumers
need to finance
their off-grid
product
R&D (Solar/PV cell)
Not in investment
scope !
Bamboo doesn’t
invest in capital
intensive
technology risk of
upstream solar

19. 1927 October 2015
Portfolio Diversification
Portfolio mix of Businesses models and products:
 pico-solar / SHS against up-front payment
 SHS with consumer financing, energy service model
 project finance, mini-grids
 B2B services and products using solar energy
 Enabling businesses
Active portfolio risk management with focus on
diversification

20. 2027 October 2015
Portfolio Diversification
Active portfolio risk management with focus on
diversification
Geographic diversification:
 Investing in a diversified portfolio across Sub-Saharan Africa
 and Southeast Asia
 Invest in companies that have multi-country and region
approach to further increase geographic diversification on
individual investment level

21. 2127 October 2015
Portfolio Diversification
Active portfolio risk management with focus on
diversification
FX and country risk reduced by investments in
international companies exemplified by BBOXX:
 Headquarters in London
 Quality management and procurement team in China
 Regional finance and operations team in Rwanda
 Distribution with sales & tech staff in Kenya, Uganda, Rwanda
 Franchise partners and sales presence in over 30 countries
 Accesses LC financing for customer receivables: securitization
of receivables in LC, financing from local banks and MFIs

22. 2227 October 2015
Content
Thank You !
Christian Schattenmann
Email: Christian.Schattenmann@bamboofinance.com