EaaS financial and accounting implications

Efficiency-as-a-Service is a servitisation model that allows customers to access energy-efficient technologies and solutions without any upfront investments, by simply paying for the equipment outcome or output and services delivered. In addition to O&M, performance and de-risking services, EaaS suppliers also offer a financial service to their customers by enabling a shift in the customers’ capital expenditures (CAPEX) into operating expenditures (OPEX). EaaS furthermore offers the possibility of having the equipment off the customers’ balance sheet.

Taking over the financial responsibility is an important challenge for manufacturers that want to engage in offering EaaS solutions. As the equipment is no longer sold to the customer, the revenue is not booked at the time the asset is supplied; instead,  a recurring revenue is recognised over time.  Such a deferred income stream may negatively impact the solvency and liquidity of the supplier, which in turn puts the brakes on the company’s ability to make further investments. Partnering with a financial institution becomes essential for scaling up such a business model.

Join our webinar on the 05th of May to learn about: 

• What challenges does implementing and scaling up an EaaS offering brings to the supplier from a financial and accounting perspective? 
• How can partnering with a financial institution address some of these challenges? 
• What is the financial sector’s risk and opportunities perception when it comes to EaaS financing? 
• How to build your application for financing? What are the critical elements that make an EaaS solution bankable? 
• What conditions need to be met to allow for the EaaS agreement to be off the customer’s balance sheet? 

• Christian Levie, Deputy Managing Director of Econocom Lease, Econocom Belux. Christian is executive board member of the Belgian Lease Association and has a career of over 30 years in financing and leasing. Econocom supports companies and governments in the implementation of as-a-service business models, product-service combinations, leasing solutions. Econocom acts as a financing partner: it supports the financing of investment projects and the preparation of credit files and helps to find alternative credit lines. Econocom offers support in the accounting, financial, administrative and contractual processes required when moving from a traditional sales model to an as-a-service model.
• Thomas Carlier, Audit and Insurance Partner, Deloitte.  As Audit & Assurance partner, Thomas is heading the Brussels IFRS/IPSAS Centre of Excellence, a team of experts in accounting and financial reporting. With 20 years of experience in this area, he has gained a deep expertise in financial reporting with a focus on IFRS, IPSAS and Belgian GAAP. Thomas is responsible for the IFRS quality review process applicable to public interest entities that Deloitte is auditing in Belgium. Moreover, Thomas acts as direct IFRS advisor for large Belgian listed companies and leads numerous GAAP technical consultations and advisory projects, including IFRS/IPSAS conversions and implementation of new reporting standards.
• Baptiste Desbois, Senior Advisor Clean & Greentech, BNP Paribas Fortis. Baptiste is an engineer with more than 10 years of experience in the energy sector (decarbonation of the energy mix, risk management and energy procurement). Within the Sustainable Business Competence Centre at BNP Paribas Fortis which he newly joined, Baptiste aims at accompanying customers in their transition towards sustainability and has a specific focus on energy related topics such as solar panels, wind turbines, biogas & biomass, batteries.

This webinar is part of a series of events organised by Agoria and its consortium partners in the framework of the European Commission Horizon 2020 funded project « Efficiency-as-a-Service ». The project aims at accelerating the market adoption of energy efficient solutions in the EU through servitization. Similar events are being organised in the Netherlands, Spain and the EU by Agoria’s consortium partners EIT Innoenergy, ANESE and BASE.  

 

For more information please contact Mira Tayah.