Presentation at the Energy for All Investor Forum

1. Asian Development Bank, 17 June 2014
Public
Sustainable Energy for the BOP:
LGT Venture Philanthropy’s Criteria
for Renewable Energy Investments
Energy for All Investor Forum 2014 | Session #3

2. 2
LGT Venture Philanthropy – Introduction: Our mission
Our mission is to increase the sustainable quality of life of less
advantaged people
“All human beings should be able to live under dignified conditions and
be given a fair chance for personal development in their lives.
Wealthy individuals have an economic, political and moral responsibility
to champion the cause of disadvantaged persons. In developing
countries in particular, the scale of poverty is alarming and the need for
help is great. There are limits to the contributions that governments and
development agencies can make.
This means that helping the disadvantaged in developing countries and
assisting social advancement is also a challenge for the private sector. In
this respect, it is vital that the invested financial resources generate a
high and sustainable social return and do not create any false or
unnecessary dependencies nor distort local markets.”
H.S.H. Prince Max von und zu Liechtenstein
CEO LGT Group & LGT Venture Philanthropy’s initiator and board member

3. 3
LGT Venture Philanthropy – Introduction: Our challenge
4 billion people live on less than 2 USD a day; they need
solutions that are scalable and sustainable
The gap is widening. We strive to narrow it.
8% of the world’s population owns
80% of the world’s total wealth.
4 billion people live on less than
2 USD a day.

4. LGT Venture Philanthropy: Our team
Our global team is based in six regions and passionate about
creating societal impact
LGT Venture Philanthropy is supported by different competence centers within LGT Group such as HR, accounting, marketing, legal
department and asset management.
4
Board members
Countries with local
team members

5. LGT Venture Philanthropy: Our impact
Since inception, 40 LGT VP portfolio organizations have improved
the quality of life of more than 4.5 million less advantaged people
5
2008 2010 2011 2012 2013Time
*Most organizations have several donors/investors; therefore, the # of people reached is not only correlated with our donations or investments.
Portfolio
organizations
Impact *
(cumulative)
1’100 lives
improved
300k
lives improved
900k
lives improved
1.7m
lives improved
2.7m
lives improved
4.5m
lives improved
USD allocated
(cumulative)
USD 2.2m USD 5.3m USD 8.3m USD 12m USD 16m USD 19m
# of
organizations
1 10 18 24 31 36
2009

6. 6
LGT Venture Philanthropy – We implement
Our venture philanthropy approach provides tailored long-term
support for young, rapidly growing organizations
Venture
Philanthropy
Focus on few
organizations
Financing combined
with management
know-how and
networks
Intense local due
diligence to build
knowledge and
relationship
Continuous
controlling
Long-term
engagement
Tailored financing:
Equity, debt
and grants
Optimization
of long-term social &
environmental return
Young, rapidly
growing
organizations
“We want to be as
efficient and
transparent as possible
in our impact
investing/philanthropic
efforts.
With this objective in
mind we have applied
many proven principles
and processes from the
venture capital and
consulting industry to
our impact investing/
philanthropy
approach.”
H.S.H. Prince Max
von und zu Liechtenstein

7. 7
LGT Venture Philanthropy – We implement
A multi-step investment process focusing on deep analysis to
select the best organizations was applied thousands of times
Due Diligence 6 – 12 months
Main
activities
Preliminary
review
Deal
execution
Portfolio
controlling &
reporting
Exit
Tools/
Documents
Process
Timing 5 – 10 years 1 week – 3 months
Deal sourcing
Monthly reports
Quarterly KPI
Annual report
Post investment
monitoring
− Business, risk and
capabilities
assessment
− Depth and scale of
Impact assessment
Continuous
support/meeting
(management
know-how and
networks)
Each investment
manager covers on
average 5
investments,
spending min. 0.5
day/week with
each organization
Business, risk and
capabilities
assessment
Depth and scale of
impact assessment
Termsheet
Investment Memo
(~30 pgs)
Contract(s)
Intensive on-site
due diligence
Reference calls for
each management
team member of
investee
KPI and milestones
determination
Final investment
decision
board/client
Preliminary Review
(~7 pgs)
Evaluation of
business plan/
proposal
Intensive
discussions with
senior mgt team
members
Stop-go decision
board/client
Factsheet (~2 pgs)
Capabilities
Assessment (light)
Screening of
organizational
information
Gathering of basic
information
Calls or first
meeting with
senior mgt
members
Stop-go decision
team/partners
Tracking database
Quick-screen
checklist
Sourcing of
potential deals
Information
exchange with
cooperation
partner/ reference
calls
Stop-go decision
partners
Contract(s)
Options for exit
are:
− MBO
− Sell to social
strategic buyer
− Sell to social
investor
− Exit is clarified
and agreed on
with the
organization
upon deal
execution (pre-
investment)
# deals
to date 700 70 40 30* 10*5‘000
Deal screening
* 24% grants, 17% debt, 39% convertible debt, 20% equity (including the Accelerator Program deals with average deal size USD 50k )
** Exit: 1 equity, 1 equity/ debt, 6 grants, 2 only intellectual capital

8. 8
LGT Venture Philanthropy – We implement
Before engaging with an organization, we conduct detailed due
diligence on the ground
Problem and solution
Which problem does the organization want to solve? What are its root causes?
What solution does the organization offer? Does it solve the problem?
Team
What is the track record and experience of the team?
Which capabilities are important to manage and grow the organization?
Does the team have those competences? What is missing?
Risks
What are threats to the success and impact of the organization?
How can those risks be mitigated?
Impact
In which way does the organization affect the lives of the beneficiaries?
How can we measure the impact of the organization?
What is the impact of the organization now? What can it be in five years?
Growth plans and needs
Where is the organization now? How did it get there?
What can the organization achieve in the next 5 years?
What do they need to get there?
Model and market
What is the business model of the organization?
Which other organizations are undertaking similar work in that region?
What are relevant macroeconomic factors, regulations, local challenges?
“We focus on few,
promising
organizations. Deep
analysis helps us to
identify risks and
understand what is
needed to create long-
term positive impact.”
To get a deep understanding of the organization, we ask many
questions, such as:
Analysis Impact
Risk# of organi-
zations
Inderpreet Singh
Investment Manager
India

9. LGT Venture Philanthropy – We implement
We measure impact along two dimensions: reach & depth of
impact – Depth of impact example Por Ti Familia
9
*) [d ¦ i ] = direct or indirect beneficiary
[ l ] = long-term benefits on individual (built on the progress expected by the short-term outcomes)
[ s ] = short-term impact; this is default and doesn’t have to be added to the outcomes

10. LGT Venture Philanthropy – Accelerator Program
LGT VP launched the Accelerator Program to unlock the potential of social
enterprises, create the pipeline, and build the ecosystem of impact investing
10
Social
impact
Time0.5-2 YEARS 1-5 YEARS 3-7 YEARS
Early phase
Expansion
phase
Idea / start-up
phase
Mature phase
Financial
support
Grants, seed funding
USD 2k – USD 50k
Angel investors
USD 50k – USD 200k
Expansion funding
USD 200k - USD 10M
Intellectual
support
Mentoring, business plan writing,
strategy consulting
Research and
development
With
early-stage
support
Without
early-stage
support
Accelerator
Program
LGT VP Core
Investment Area
Organizational capacity-building, HR,
systems and infrastructure
Institutional funding
USD 10M and up
Since 2007, LGT VP has evaluated more than 5’000 opportunities in 6 regions, but only invested in 26
Young organizations struggle to scale-up due to lack of clear plans / strategies, unproven business models, and weak / inexperienced
management teams
Angel investor networks for social enterprises are not yet functioning well in many regions
Working capital needs of social enterprises / SMEs not completely met by commercial lenders (PHP 67 billion – 180 billion)*
*PhilExport and DTI
BLUEPRINT VALIDATE PREPARE SCALE

11. 11
LGT Venture Philanthropy – Portfolio organizations
M-Kopa
Kenya
IMPACT
Improved income opportunities for low-income households
Re-directed energy expenditures from inefficient, wasteful and unsafe sources such
as kerosene lamps towards purchase and ownership of clean and affordable solar
home systems
M-Kopa has sold over 61’000 home solar units to low income households across
Kenya
M-Kopa estimates that the existing customers will saves a combined USD 30m in
projected energy expenditure over the next 4 years (*based on the average annual
individual savings in energy expenditure on lighting and phone charging)
M-Kopa estimates that it provided about 23 million hours of bright, fume-free lighting
by December 2013 (estimate based on average of 125 hours of lighting per system
per month)
Improved material well-
being:
Increases household productivity and income
Improved physical well-
being:
Reduced health risk though cleaner energy and light
sources
Improved social well-
being:
Increased social interactions due to micro-enterprise
activities
Improved security: Secure access to electricity and light
Improved freedom: Greater freedom of choice of products through pay-
per-use system
PROBLEM
Over 63% of Sub-Saharan Africa’s population are rural, lower-end consumers with small
inconsistent incomes/revenue streams. These masses can barely afford basic goods
and services but nevertheless spend up to 70% of their income on inefficient, low-
quality goods
For example, about 110 million households across Africa spend USD 160 or more
annually on kerosene for lighting despite the poor quality of light provided by kerosene
lamps alongside the related health risks of smoke fumes
SOLUTION
M-Kopa primarily targets low-income consumers in emerging markets, enabling them
to purchase productive assets like solar systems through an affordable and convenient
pay-per-use system that matches their income and expenditure patterns
M-Kopa’s inaugural product, a home solar system, will seek to address the energy
needs of low-income households, with plans to reach over 300’000 un-electrified
households with clean, affordable solar energy
ENGAGEMENT OF LGT VENTURE PHILANTHROPY
USD 500’000 debt and USD 37’500 equity investment to fund roll-out of M-Kopa’s
inaugural commercial product targeting low-income households
USD 1m in debt funding from LGT VP clients towards M-Kopa’s working capital
requirements
M-Kopa has access to LGT Venture Philanthropy’s ICats Program, LGT Venture
Philanthropy’s network as well as ongoing mentoring support
Depth

12. 12
LGT Venture Philanthropy – Portfolio organizations
Husk Power Systems (HPS)
Bihar, India
IMPACT
Cost savings by using electricity instead of kerosene for lighting households
Improved lighting conditions and elimination of indoor air pollution caused
by kerosene lamps
Employment generation in villages
Improved material well-being: Increased income
Improved physical well-being: Relief from indoor air pollution
Improved social well-being: Enables education, entertainment
Improved security: N/A
Improved freedom: N/A
PROBLEM
Approximately 480 million people in India across 125’000 villages (44.5% of
the population) do not have reliable access to electricity
Indian government has designated 18’000 villages as “economically
impossible” to reach via conventional means of grid electrification
Current power options such as kerosene lanterns or diesel generators are
detrimental to people’s health, environmentally unfriendly, and uneconomical
SOLUTION
HPS has developed proprietary technology to convert locally produced
agricultural waste (like rice husk) into electricity
HPS generates and distributes electricity from its mini-power-plants (35kWh-
100kWh) and micro-grids, targeting the villages in India’s “Rice Belt” consisting
of the states of Bihar, West Bengal, Orissa, Uttar Pradesh, and Madhya
Pradesh
ENGAGEMENT OF LGT VENTURE PHILANTHROPY
Convertible note of USD 300’000 in 2010 for scaling up to 67 plants; in 2012
follow-on investment of USD 700’000 as part of Series-A for further
expansion
HPS has access to LGT VP’s ICats Program, its network as well as ongoing
mentoring support
2012 2013 2014e
# of power plants 41 35 54
# of connections 9’661 9’800 34’125
Depth
Reach

13. 13
LGT Venture Philanthropy – Portfolio organizations
One Renewable Energy Enterprise, Inc. (‘OREE’)
Philippines
IMPACT
OREE makes solar energy available to low-income households, increasing
productive work days and improving income opportunities for them.
OREE enables households to increase savings of at least USD 94 p.a. from
reduced spending on kerosene, etc.; reduces risk from smoke inhalation
and house fires and increases time to study and operate businesses.
PROBLEM
Approx. 3.1 million Filipino households (16% of the population) do not have
access to electricity. Given the Philippines’ archipelagic nature, connecting all
citizens to the grid would be costly and difficult to maintain. Hence,
electricity prices are among the highest in Asia, and access is particularly
limited in rural / remote areas.
Kerosene lamps are currently used as a substitute, but have negative effects
on the environment and people’s safety / health.
SOLUTION
OREE distributes, installs and maintains solar PV products across the
Philippines. OREE’s 3 business lines are: (1) Wholesale trading of solar lamps
and solar home systems, (2) Turn-key projects for solar lighting systems,
water pumps, etc., and (3) Service projects, i.e. design, installation and
aftersales support.
OREE delivers triple bottom line impact by providing renewable and
affordable energy to rural low-income households, and reducing
environmental damage through larger renewable energy projects.
ENGAGEMENT OF LGT VENTURE PHILANTHROPY
USD 50’000 convertible debt to fund operational expenses, marketing and
inventory, enabling OREE to take advantage of upcoming business
opportunities.
OREE has access to LGT Venture Philanthropy’s ICats Program, LGT Venture
Philanthropy’s network as well as ongoing mentoring support.
Depth
2011a 2012a 2013a 2014e
# of units sold 493 8'106 5‘678 8’584
# of beneficiaries 2’465 42’995 28’390 42’920
Savings p.a. (USD ‘000s) 46 808 1’296 1’340
Reach
Improved material well-being: Increases productivity hours leading to a potential
increase in household income
Improved physical well-being: Replaces the use of kerosene, which results in
improved public health
Improved social well-being: Improves health and longer studying hours help
attain higher education
Improved security: Improves physical security of people, property
and well-being
Improved freedom: Provides independence from high electricity rate,
increases access to information and opportunities

14. 14
LGT Venture Philanthropy: Contact
Contact information
It all starts with a personal conversation. Contact us to arrange a meeting. We look
forward to learning about your organization.
Joan Yao Phone: +63 917 811 5831
Investment Manager Email: joan.yao@lgtvp.com
Yoshitaka Tabuchi Phone: +63 917 856 7890
Accelerator Manager Email: yoshitaka.tabuchi@lgtvp.com
Website: www.lgtvp.com
Support
LGT Venture Philanthropy is funded through substantial contributions from each of the following LGT Group companies: LGT Bank Ltd., LGT Bank (Switzerland)
Ltd., LGT Bank (Austria) Ltd., LGT Bank (Singapore) Ltd., LGT Capital Management Ltd. and LGT Capital Partners Ltd.

15. 15
Legal Information
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16. 16
Picture description
"Double Portrait of Emperor Joseph II (1741–1790) and his Brother
Leopold, Grand Duke of Tuscany (1747–1792)"
POMPEO GIROLAMO BATONI, WORKSHOP
1708–1787
In March 1769 Emperor Joseph II undertook an unofficial visit to Rome together
with his brother Leopold, Grand Duke of Tuscany. During this visit, Batoni's
workshop produced a double portrait, for which the two aristocrats posed for the
painter. Because of its representative character, this is not so much a memento of a
grand tour, but rather an official portrait of rulers. The portrait shows the brothers
shaking hands, wearing the simple uniforms of their regiments without the insignia
of power. They are standing on a terrace, with Castel Sant'Angelo and St. Peter's
Basilica visible in the distance behind Joseph's II shoulder. The Emperor is
supporting himself by leaning his left arm on a statue of the goddess Roma. In the
foreground, an unfurled map of the City of Rome hangs over the edge of a writing
desk, indicating that the two are strangers to the city. The workshop copy of the
portrait probably came to the Princely Collections as a gift of the Imperial Family to
their advisor Prince Joseph Wenzel I of Liechtenstein.
© Sammlungen des Fürsten von und zu Liechtenstein, Vaduz–Wien
LIECHTENSTEIN. The Princely Collections