Pitch

1. February 2018 | Dr. Oliver Marchand
CEO & Co-Founder
INVESTMENT PROPOSAL
Strictly confidential

2. C A R B O N D E LTA | 2 Strictly confidential
We aim to establish our product Climate Value-at-Risk
as the de-facto global standard for climate risk
assessment and reporting.
• Carbon Delta is seeking CHF 1.2m in Series A Investment in order to market the first forward-looking climate risk metric
measuring the impact of climate change on the performance of listed stock companies: Carbon Delta’ Climate Value-at-Risk
• Funds will be used for expansion of our sales as well as development team, marketing and aquisition of input databases for rapid
product finalisation and international expansion
Investment
Opportunity
• Carbon Delta is a Zurich-based software engineering firm developing proprietary risk metrics to model the future value at risk of listed
stock companies due to climate change.
• Carbon Delta targets institutional investors, including asset managers and asset owners, insurances, re-insurances and family offices
based in markets that are at the forefront of sustainable investment: France, Sweden, the Netherlands, UK and the USA with a potential of
6’000+ B2B customers.
Carbon
Delta
• Breaking with the traditional company-impact focused carbon footprinting and ESG metrics done by manual research, Carbon Delta has
developed the first automated and forward-looking financial climate risk metric «Climate Value-at-Risk». By doing so, we strive to
become the Bloomberg of climate change data
• Our value proposition is attractive to:
• Long-term institutional investors, seeking to optimize performance of their portfolio, minimize regulatory risks of their
holdings, active shareholder engagement, etc
• Insurers, looking to identify physical and regulatory risks of their assets
• Companies wishing to assess and actively manage their risks related to climate change
• Carbon Delta’s services are provided on a subscription basis, with minimal to no scaling costs
Company
vision and
business
model
• The investment will primarily be used to conduct targeted sales and marketing activities to penetrate the French, Dutch, UK, and Swedish
market.
• Once Climate Value-at-Risk is established in these primary markets, Carbon Delta is planning to market its data via a global financial data
provider to achieve a rapid growth of its client base.
• Based on Carbon Delta’s first mover advantage, it aims to establish Climate Value-at-Risk as the de-facto global climate risk standard
• Carbon Delta is expected to break even in Q4 2019 based on a projected aquisition of 38 clients
Outlook
• CEO & co-founder: Dr. Oliver Marchand – Computer engineer with 15y weather forecasting and 9y financial IT (incl. CTO) experience
• Head of development & co-founder: David Lunsford – Consulting professional with 3y experience in the financial industry and 10y in
climate change policy
• Head of software Engineering & co-founder: Dr. Elke Schaper: Computer science professional with extensive experience in software
modeling and simulations
Team
Executive Summary

3. Hurricane Harvey:
$180bn damage
Source: Texas Governor Greg Abbott, 3 September 2017.
Climate Change has an economic impact
on the valuation of companies today!

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Problem and Solution
Helping asset managers address climate risks
SOLUTIONPROBLEM
Climate
Value-at-Risk
The first forward-looking and
performance-based climate risk metric

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Climate Value-at-Risk
Disrupting the market by addressing shortcomings of existing climate metrics
Carbon Footprinting
Limited proxy for risks
Only emissions based
Backward-looking
Based on company self-reporting
Measure of company impact on climate
Dynamic risk Assessment
Covers multiple aspects of risks
Forward-looking
Based on high-quality, indep. data
Measure of climate impact on company
Climate Value-at-Risk
CARBON DELTA‘S Solution Current Market Offer

6. C A R B O N D E LTA | 6 Strictly confidential
Climate Value-at-Risk
A financial risk metric that addresses industry needs
CARBON DELTA’s proprietary Climate Value-at-Risk
is a risk metric that is:
tailored to needs of institutional investors
measuring actual monetary value at risk of listed companies due to climate change
highly scalable, allowing to cover any number of stocks,
corporate bonds, portfolios or indices
delivered in the form of comprehensive reports and data feeds,
allowing investors to optimize investment decisions and fulfil
increasingly demanding regulatory reporting requirements
minimal to zero set-up costs for new subscribers

7. C A R B O N D E LTA | 7 Strictly confidential
Our Vision
Using first-mover advantage to become the global market leader
Goals:
The Bloomberg of Climate Change data!The Bloomberg of Climate Change data!
$15m revenue per year by 2022Partnership with global data
provider by end 2019 (latest)
We aim to establish our product
Climate Value-at-Risk as the de-facto
global standard for climate risk assessment
and reporting.

8. C A R B O N D E LTA | 8 Strictly confidential
Climate Value-at-Risk
The first forward-looking metric quantifying climate risks
Investors reduce risks &
improve performance
Climate change
impacts company A
Carbon Delta quantifies the
cost of this impact on company A
Compliance
Reporting
Downside
Risk Reduction
Stock picking /
Risk Creation
Portfolio
Optimization
RISK SCENARIOS
Regulations -4.6%
2ºC Test -10.12%
Climate Trends -0.7%
Technology
Opportunities
+2.2%
Extreme Weather
-1.9%
Carbon Delta’s Climate Value-at-Risk
Databases
UNFCCC
IEA
Factset
PATSTAT
etc

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Our Product – LAB & Factsheets
Highly automated data modeled on individual company level

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Use Cases
Application examples of our product – used and validated by the market
“We are very pleased with the
final results of our project and
would work with Carbon Delta
again.” – Swiss Re, 2017
2°C
Alignment
“We find Carbon Delta's
approach highly innovative,
practical and timely.”
– Allianz, 2017
New Financial
Products
Large German Bank
Risk
Management
Regulatory
Compliance

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EUR in
millions
Sustainability Themed Investments in Europe
26.468 25.361
48.090
58.961
145.249
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
2007 2009 2011 2013 2015
Growth
2013 – 2015
+146%
Source: Eurosif, 2016
Sustainable Investment
A niche market with exceptional growth: Europe
Carbon Delta’s Beachhead Markets
(& CAGR 2013-2015)
France
+213%
Netherlands
+36%
+8% +28%
Sweden UK

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Financial Regulations
Major Regulations and Initiatives supporting disclosure of financial climate risks
2015
French Art. 173: The
Energy Transition Law
2016
TCFD Phase II Report
2017
ESRB Stress Testing
IORP II Directive California Law SB 560
Financial Climate Risk
Reporting
2019 2020

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Market Size
Targeting a fast growing niche market
Target Clients
• Asset Managers 400
• Insurances 50
• Asset Owners 3,000
• Multinational Corporations 3,000
Carbon Delta target market:
$15M by 2022
Financial data
market size:
$27bn*
*Burton-Taylor (2016)

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Differentiation
Getting ahead of the competition
Manual research Automated software
Backward looking Costs to 2030
3’000 companies 35’000+ companies
Self-reported data 3rd party verified data
▶︎ Highly scalable!

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Acquisition of 5 large clients:
Revenue generated: $ 730,000
Current Sales Pipeline: $ 2,050,000
Development of strategic partnerships: PIK, Factset, Climate-KIC, maj. European Universities
Fully operational computer system «LAB»
❯ Product launch in Q2 2017
❯ Coverage of >35,000 companies (approx. 90% of global market cap)
Backtesting results show 3% annual outperformance over last 5 years
Selection of main awards received:
• seif award
(Winner 2016; 4 out of 292)
• UBS Social Innovator Program
(Finalist 2016; 12 out of 2500)
• European Venture Competition 2016
(Winner; 1 out of ~250)
• Swiss National Fintech Team 2017
(1 of 10 Winners out of ~100)
• European Fintech Award 2017
(Risk, Intelligence & Security Award)
• Swiss Innovation Award 2017
(4th out of 600)
Achievements
Developing a product with proven market recognition

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Milestones
Data on:
1st Client
Partnerships
founded July 2015
2015 2016 2017 2018 2019 2020 2021
38 Clients 220 Clients
CORE PRODUCT DEVELOPMENT
Product
Launch
BOOT-STRAPPED SEEKING 1.2M CHF
15 Clients

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A Fantastic Management Team!
Highly motivated professionals, with perfectly complementary skills
3 yrs finance
10 yrs climate change policy
David Lunsford, MBA
Head of Development & Co-Founder
3 yrs computer science research
3 yrs modeling and simulation
Elke Schaper, PhD
Head of Software Engineering & Co-Founder
15 yrs weather forecasting
9 yrs financial IT
Oliver Marchand, PhD
CEO & Co-Founder

18. C A R B O N D E LTA | 18 Strictly confidential
Latest (ESG) data acquisitions by data providers
Growing interest by financial data providers for environmental data
2017
CNI by
2016
2013 2009

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Our Impact
Enabling the financial industry reducing its carbon footprint
Potential Total Savings
Annual emission reductions per Carbon Delta client
750kt
CO2e = 375,000
Flight tickets
Round-trip flights ZRH-NYC

20. We’d love to
talk to you!
Feldeggstrasse 4
8008 Zürich
Switzerland
o.marchand@carbon-delta.com
+41 78 803 21 02
www.carbon-delta.com