Financial Transformation

Enable the CAPEX to OPEX journey by reallocating risk exposure yielding in an as a service business model

How does Financial Transformation work: The Target Operating Model

By setting-up a special purpose vehicle (SPV) owning the production assets, we can turn this factory into an investment opportunity opening the door for performance oriented payment models and benefitting from sharing production capacity

FlexFactory
  • Orchestrates due dilligence process for funding with insurer and investors
  • Develops concept for design and technology jointly with the lead user
  • Advises lead user on production planning and financial model

Investor

  • Provides financing
  • Benefits from interest/ dividends
  • Receives compensation through risk-adequate return

Special Purpose Vehicle (SPV)

  • Set-up by FlexFactory
  • Owns Production plant

Users of facility

  • Purchase production capacity
  • Assure production output
  • Step into role of operator (optional)

The ingredients we need in order to set-up external financing

Sharing model

Diversification of demand risk through multiple users of production​

Positive business case

Positive business case or project, validated by proper due diligence​

Alignment of interest

Users have “skin in the game” (e.g., equity,purchase guarantees)​

Pay-per-use model

Users of production pay per use of equipment / per part​

Rethink realization of production fundamentally

The combination of the components of FlexFactory’s offering is a gateway to rethink realization of production fundamentally

Flexible Production

  • Empower equipment to efficiently produce a variety of derivatives
  • Set foundation for risk management through predictive maintenance and data output
  • Increase utility and open up production to diversify customer base

Performance Guarantee

  • Divide risk exposure of production asset in its components
  • Reallocate risks not palatable for external investors
  • Minimize risk of new technology to create peace of mind for users and investors

Risk & Financial Structuring enables Business Model Transformation towards Production as a Service

Why Financial Transformation is relevant for manufacturers

Through decoupling the risk of a production asset from its lead user
and managing part of the remaining risk we can attract external
investors with long-term investment horizons

Lower risk of ownership

Capacity usage instead of ownership of production shifts risks away from user

Capex to Opex

Lower investment need from capacity users through external capital

Optimized capital structure

Dedicated financing structure results in risk-adequate cost of capital.

Difference to traditional financing

Through the business model transformation from a conventional
production offering to innovative Production as a Service propositions,
sharing of capacity as well as access to multiple investors is enabled

Traditional Financing

Industry Solutions

Fully flexible and scalable production concept enabling the manufacturing of varying equipment parts within one line

Software closing the digital gap between product development and production planning by transferring product data into process data

Please get in touch for more information

Philip PlattmeierManaging Director
+49 69 153 294 150
info@flexfactory.tech