WRL - Investor Deck - July 2014

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Weather Risk Limited founded in 2004, pioneered Weather Derivative contracts in the Indian Market. Since then, it has grown into a comprehensive global Climate Risk Management company with a fast growing footprint that spans India, Africa and Asia.

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WRL - Investor Deck - July 2014

  1. 1. Investor Deck Sonu Agrawal Managing Director sonu.agrawal@weather-risk.com August 2014
  2. 2. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Executive Summary We pioneered Weather Insurance in India Founded in 2004 we have built a sterling reputation as a global Climate Risk Management company CLIMATE RISK represents the daily reality of hundreds of millions of farmers and directly impacts the huge ecosystem of enterprises that engages with them in the global agricultural supply chain with implications running into billions of dollars.  Today we work with every insurance & enterprise player serious about transforming agriculture in India creating direct change for over 1 million farmers.  Integrating a robust understanding of risk, our own manufacturing & technology capability, and a proven expertise in analytics we are now expanding our footprint to Africa, ASEAN & LATAM to become a globally valuable company. OPPORTUNITY : Working painstakingly over a decade in a tough regulatory regime we have created a highly profitable company with a 25 % PAT on a revenue of US $2 m this fiscal and a target of US $ 20 m in the next 4 years.
  3. 3. To provide all in the world security against climate change as the world’s No. 1 climate risk management company using data, technology and innovation Founded 2004 Fiscal Projection ‘15 PAT 25% on US $2 m Team 101 People Footprint Pan India & Global Asia Philippines Cambodia Bangladesh Sri Lanka Africa Tanzania Rwanda Zambia Mozambique Existing Presence Building Presence VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
  4. 4. We are a global Risk Management company delivering innovative products and services to large enterprises as well as farmers in the remotest of villages worldwide. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY 2004 2006 2008 2010 2012 Founded with ICICI Lombard as the first client SIDBI Seed Fund Incubation at IIT Kanpur Ford Foundation grant Convinced GoI for regulatory approval & subsidize weather insurance with Rs. 1000 Cr. Stabilizing pan- India business AWS Grid ~ 100 Stations SIDBI invests for working capital First International foray in Tanzania and Bangladesh Export of Products & Services to Africa & ASEAN Ready for India and the World 2005 2007 2009 2011 2013 Big Data Services & Analytics Smart Devices & Technology Weather Insurance1 2 3 India  Global  Agri Information Systems  Weather Forecasting  Remote Sensing  Automated Weather Stations  Vehicle Tracking Systems  Energy Efficiency
  5. 5. Industry Leader with robust, comprehensive and integrated services VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Weather Insurance1 Underwriting Services for Insurance Companies   Risk Management Application  Fraud Analytics • Claims Control • Remote Sensing & UAV  Portfolio Risk Management Reinsurance Services  Market Making  As market makers we help financial institutions & companies to design and execute innovative risk offerings across areas including Agriculture, Power & Zero Carbon
  6. 6. Pioneering Player with BIG DATA, MOBILE and Consumer Behavior expertise VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Data Services & Analytics2 Weather Forecasting & Data Services   Crop Acreages & Yield Estimation  Flood and Disaster Mapping  Oil and Gas Identification Mobile Applications   Short (72hrs) to Long Forecasts using Synoptic/Numerical Models  Alerts / Custom Alerts / Planning Customized Packages   yourfarminfo.com • Agro Advisory Service to maximize production • Farm Level Information to check crop feasibility, take land buying decisions …  Industry Solutions POWER / BEVERAGES / AVIATION / WHITE GOODS …
  7. 7. 7 Pioneering Player with BIG DATA, MOBILE and Consumer Behavior expertise VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Data Services & Analytics2
  8. 8. Multi Disciplinary Technology Expertise powering diversified RISK PRODUCTS VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Smart Devices & Technology3 Automated Weather Stations  Vehicle Tracking Systems   Only 5% of commercial vehicles are covered by insurers  We have installed 6000 devices  Geofencing / Live Mobile Tracking / Temperature Alerts …  Fuel Monitoring Devices … Smart Energy  Irrigation Controllers & Energy Meters India Largest Private Network Africa Tanzania Rwanda Zambia Mozambique Asia Philippines Cambodia Bangladesh Sri Lanka  Designed & Manufactured in IMD & ISO certified facility  Dashboard & Services Integrated  AWS expansion projected: 2 – 40x per state
  9. 9. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
  10. 10. Vijay Mahajan Mentor Founder & Chief Executive Officer Basix Social Enterprise Group Dr. AK Bohra Director Weather Scientist and Former Director National Centre for Medium Range Weather Forecasting Pankaj Khandelwal Director Chairman & Managing Director INI Farms Dr. Kanti Prasad Director Weather Scientist and Former Dy. Director General Indian Meteorological Department Dr. BV Phani Director Professor / Finance Indian Institute of Technology - Kanpur Dr. Jayant K. Singh Technology Advisor Professor / Chemical Engineering Indian Institute of Technology - Kanpur Advisory board VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Passionate and Diverse Team 101 people with expertise in: TEAM WRL Financial RISK MANAGEMENT Computer Science METEOROLOGY Atmospheric Physics Climatology ELECTRONICS & Industrial Design Sonu Agrawal, 39 Founder & Managing Director Weather & Climate Risk Pioneer IIT Kanpur and IIM Calcutta Alumnus Anuj Khumbat, 38 Chief Executive Officer Finance and Management Specialist Chartered Accountant EXECUTIVE TEAM Ashish Agarwal, 31 Chief Technology Officer Electronics and Technology Specialist IIT Kanpur Alumnus
  11. 11. Representative Case Study Late Blight is a lethal potato disease. In 2006 PepsiCo contract farmers lost 60 % of their crops due to this bane. We helped PepsiCo provide risk management to over 10000 farmers in Punjab. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
  12. 12. Cholamandalam is a leading Indian general insurance company. In 2011 Weather Risk was hired to help structure Weather and Yield Index based Crop Insurance Products. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Representative Case Study
  13. 13. Since 2007 we have helped ICICI Lombard implement a joint nationwide weather and agriculture Insurance market making and strategic development exercise. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Representative Case Study
  14. 14. We have helped ~ 5000 farmers covered by SAFAL access better insurance and information for risk as well as equipped their logistics system to track over 2000 Trucks and Vans. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Representative Case Study
  15. 15. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Served 1 million farmers across India transforming lives and agriculture Bailed 500,000 farmers struck by natural disaster Catalyst for the growth of Crop Insurance in India from 300 Cr to 5000 Cr in 10 years creating employment for ~10000 people Sandeep Bakhshi ICICI Rakesh Jain Reliance GIC Alok Agarwal ICICI Lombard GIC ENDORSEMENTS Dr. Nachiket Mor Reserve Bank of India Ritesh Kumar HDFC ERGO GIC Rajive Kumaraswami SCOR Reinsurance Dr. Ajit Kanitkar Ford Foundation Ved Sheshadri Cholamandalam GIC Pranav Prashad International Labour Organization Social Impact in India
  16. 16. 10 year history of credibility with key market players. In position to address a 10000 Cr. market with 3 – 10 % earnings in the next 4 years. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Weather Insurance : INDIA 5000 Cr. Current Insurance Market Size  Slated to reach 10000 Cr. In 4 Yrs. 500 Cr. Our current share of market  Few comparable players 3 - 10 % Our percentage earnings  % depends on scope & volume Hot Opportunities  We serve 25% - 100% of their portfolio  We can grow with their portfolio Emerging Opportunities  Already a client for other services  Discussions underway for underwriting Out of 200 districts covered by Weather Insurance we do 40 The Opportunity is both UPSTREAM and DOWNSTREAM
  17. 17. Rapidly growing global footprint and discussions underway in ASEAN, Africa, Europe and China. VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Weather Insurance : GLOBAL  Africa RSA Zambia Tanzania Mozambique Rwanda South Africa 1500 Cr. PR of China 5000 Cr. Sri Lanka 500 Cr. Cambodia 100 Cr. Latin America 5000 Cr. ??? We have a strong footprint & a global team in place  ASEAN Cambodia Philippines Bangladesh Global Demand driven by climate change programs of the World Bank, IFC, UNFCC, ADB … Market set to cross 50,000 Cr. in 5 years
  18. 18. The Climate Corporation case study is a global benchmark for what we do and our potential in DATA VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY DATA Services & Analytics  Leverages weather data to provide insurance to farmers to lock in profits even in case of drought, rain or other adverse weather conditions.  Combine Big Data, Climatology and Agronomy to address the $3 trillion global agriculture industry from increasingly extreme weather.  Raised nearly $110 million to date from: Khosla Ventures / Google / New Enterprise Associates / Index Ventures / Allen & Company / First Round Capital / Atomico / Code Advisors  In October 2013 Monsanto acquired the company for $1.1 billion We have everything in place to beat the Climate Corporation story Our Data Services & Analytics Solutions has potent implications not only in weather but as well as in the power sector Power Sector  We support them for Delhi & Mumbai  Discussions underway for other demand and supply analytics
  19. 19. In Smart Devices we are focused on two verticals: Automated Weather Stations Vehicle Tracking Systems VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Smart Devices & Technology AWS  PAN India Network  Rapidly growing presence: Africa / SEA Vehicle Tracking Systems Only 5% of commercial vehicles are covered by insurers We have installed 6000 devices Discussions underway with 2 major insurers for 200,000 WMO has recommended 1 Weather Station for every 25 km2 globally
  20. 20. Industry Leader & Pioneer VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Competitive Edge  Direct Competitors : Skymet • While retaining similar forecasting abilities and an international footprint, most direct competitors do not maintain an integrated capability in Insurance & Underwriting and Analytics & Big Data. • Better funded than WRL  Institutional Competitors : NCMSL, IMD • Competing only in the DATA space  Target Competition: Climate Corporation • Strong Analytics and R&D capabilities geared for mature market like the US. Weaker than WRL integrated capabilities. WRL alternative YOURFARMINFO is more relevant for the larger global market in Africa and Asia. • Acquired for $1 Billion.  International Insurance Brokers Specialized in broking alone. Business Development competition only. We have won against them in multiple accounts.
  21. 21. Strong Research Focus VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Research Edge  Collaborations with leading universities • Indian Institutes of Technology : New Sensor Technology • In discussions with Stanford & Rensselaer Polytechnic Institute • Senior Academia working on improving solutions » Dr. Jayant Singh / IITK - working on sensors to capture soil data & Nano Sensors » In discussions with CSEM, Switzerland for Big Data Collaboration  Internal Manufacturing for Price Efficiency  Supporting the entire crop insurance value chain and other Insurance products • Helps engage with insurers better • Better margins for insurers due to our integrated approach  Working directly with major Reinsurers
  22. 22. How we will ensure ROI VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Investment View  Robust Financials & Capabilities • 2013 - 2014 : $0.2 m PAT on $1.2 m • 2014 - 2015 : 20 % PAT on $2 m projected • Business Model and Financials built painstakingly in a tough regulatory regime • Integrated Capabilities : Big Data, Manufacturing, Technology & Underwriting • Consistent PAT performance : 15 - 20 % • Strong Client References & Global Footprint across India, Africa, Europe and ASEAN – India : We work with almost all serious players – Worldwide : Strong Credibility with major Reinsurers and Multi Lateral Agencies • BIG DATA Architecture in place Target Growth : INR 100 Crores / US $ 20m in 4 years • Underwriting & Insurance : Expand share from 2 - 5 % of 500 Cr. to 3 - 10 % of INR 10,000 Cr Premium • Big Data & Analytics : Insurance Companies / Power / Retail • Mega Opportunities : Vehicle Tracking, YourFarmInfo …
  23. 23. Social Impact VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY Investment View  Social Impact Created  Target Social Impact Served 1 million farmers across India transforming lives and agriculture Bailed 500,000 farmers struck by natural disaster Catalyst for the growth of Crop Insurance in India from 300 Cr to 5000 Cr in 10 years creating employment for ~10000 people Cover 10 million farmers in the less developed states of UP, Rajasthan, MP, Jharkhand, Orissa, Bengal and Bihar Direct employment to 2000 people in focus states and state of art online Agriculture Information System in place to trigger and support the creation of multiple agro centric enterprises Weather Security in SAARC and South African countries
  24. 24. $ 2 m REV $ 0.2 m PAT 2014 2015 2016 2018 $ 20 m REV in 4 years Expand presence to ~100 districts in India Appoint consultants to explore and service clients in key global markets Gear up manufacturing, software & analytics Manufacturing & Data Center ramp up Expand to 250 districts Project Offices and staff in other countries $ 2 m $ 4 m PAT Global Scale Up VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY $ 2 m $ 1 m Usage of Funds Investment View
  25. 25. Investor Deck Sonu Agarwal Managing Director sonu.agrawal@weather-risk.com August 2014 The sky is not the limit Ask us for a detailed business plan

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