tbli conference™ nordic 2014 - entrepreneurs salon - mike korchinsky - wildlife works
DESCRIPTION
"Wildlife Works Carbon - a unique growth investment in stopping deforestation, protecting biodiversity and mitigating climate change" Wildlife Works Carbon (WWC) was founded in 2009 explicitly to pursue a market based solution to stopping deforestation and curbing climate change, known as REDD+. WWC protects threatened forests by getting forest communities and governments to agree to stop deforesting in return for investments that allow them to pursue a green development path. WWC’s field teams work closely with local communities to help them leverage our investments to create forest friendly jobs, to improve their agricultural output, to develop non-forest fuel sources, and to dramatically improve access to health and education. WWC earns millions of tons of Verified Emission Reductions(VERs) for successfully stopping deforestation, and these VERs are then sold internationally to produce a return on our investments. TBLI CONFERENCE™ NORDIC 2014 Our first ESG & Impact Investing conference in the Nordic region, hosted by the BI Norwegian Business School in Oslo. For 2 days, the conference offered a platform to learn about current trends in sustainable investing and CSR in the Nordic region – and ample opportunity to find new business partners. Unique to this event, selected entrepreneurs have been invited to present their innovative green technology and climate change related projects to the investor community.TRANSCRIPT
© 2014 - Wildlife Works Carbon, LLC. 1
The World’s Leading REDD+ Project Development Company
August 2014
“This is an opportunity to use the power of the global carbon marketplace to preserve some of the most spectacular primary forests on the planet, preserving entire ecosystems full of magnificent biodiversity, while working closely to enhance the way of life of forest communities —and to make money doing it.”
Mike Korchinsky, Co-Founder and President of WWC
Mitigating Climate Change by Protecting Threatened Forests
© 2014 - Wildlife Works Carbon, LLC. 2
Our business provides green development to forest communities and stops
deforestation like this from happening.
Vast deforestation happened in this area of Kenya as a result of slash and burn agriculture.
© 2014 - Wildlife Works Carbon, LLC. 3
Table of Contents
Investment Snapshot
Favorable market positioning
Attractive business model
Best-In-Class REDD+ emission reduction protocol
Large market opportunity
Significant barriers to entry
Strong, profitable growth
Proven management team
Global Project Impact – Separate Presentation
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© 2014 - Wildlife Works Carbon, LLC. 4
• The UN has determined we need to reduce emissions 17B tons per year by 2020 to avoid catastrophic climate change.
• The deforestation of 30M acres every year causes 7B tons of GHG emissions, 15% of annual global GHG emissions – more than the global transportation sector. Deforestation has other devastating impacts such as endangering biodiversity and reducing fresh water supply.
• The UN mechanism Reducing Emissions from Deforestation and Degradation(REDD+) stops deforestation by providing real economic alternatives to forest communities.
• The UN has a goal to achieve 1B tons per year of emission reductions from REDD+ programs by 2020
Wildlife Works Voted 2013 Best REDD+ (Forest) Project Developer
#1 • Global Leaders from both public and private sectors are committed to support this goal
• Wildlife Works is the leading REDD+ project development company in the world today.
Investment Snapshot
The Market Opportunity
© 2014 - Wildlife Works Carbon, LLC. 5
Key Financial Highlights Revenues EBITDA
Conservation Hectares Under ManagementAnnual Metric Tons Emission Reductions
Investment Snapshot
© 2014 - Wildlife Works Carbon, LLC. 6
Wildlife Works REDD+ Projects address local, regional and national Green Development Goals – to serve international climate mitigation objectives.! !Wildlife Works REDD+ Projects address drivers of deforestation by investing in 6 dimensions of green development:!!1.Food!2.Education!3.Health!4.Job Creation!5.Energy!6.Infrastructure or Housing!!!!!! !
© 2014 Wildlife Works
REDD+ BY WILDLIFE WORKSTRANSFORMATIVE RURAL GREEN DEVELOPMENT
© 2014 - Wildlife Works Carbon, LLC. 7
REDD+ BY WILDLIFE WORKSTRANSFORMATIVE RURAL GREEN DEVELOPMENT
© 2014 Wildlife Works
Wildlife Works has a worldwide portfolio of best-in-class Projects and Prospects that have –!!1. Social Impacts 2. Biodiversity Impacts 3. National Significance 4. Global Significance !And are of Strategic Importance to Wildlife Works !!!! !
© 2014 Wildlife Works
© 2014 - Wildlife Works Carbon, LLC. 8© 2014 Wildlife Works
KENYA - Kasigau Corridor REDD+ Project
© 2014 - Wildlife Works Carbon, LLC. 9
Corporations •$1B+ revenues !•Offsetting or are considering offsetting!•Disclose emissions!
- The Carbon Disclosure Project (CDP) had 4112 participants in 2012!- Public corporations in the United Kingdom are required to disclose their emissions!
•Exhibit responsible environmental practices and good corporate citizenship !!There are several thousand qualified buyer prospects with the capacity to purchase REDD+ VERs in volume ranges of 50k-1M tons annually.
TARGET CUSTOMERS – Private Sector
Large Market Opportunity
© 2014 - Wildlife Works Carbon, LLC. 10
Wildlife Works established the market for REDD+ VERs. Our early customers are some of the world's leading corporations who are offsetting their carbon footprint. !
*Allianz and Kering are customers as well as equity investors. !
CURRENT CUSTOMERS
Large Market Opportunity
© 2014 - Wildlife Works Carbon, LLC. 11
• Area: 425,000 acres • WWC Initial Investment: $2 MM • Project Validation Date: 2011 • Yield: 1,200,000 VERs per year • Revenue Generated: 2011: $ 1.1M 2012: $ 3.3M 2013: $ 2.6M 2014 YTD Q3: $ 4.9M • Residual Revenue Potential:
28 years of VERs @ $6 = $201,600,000 • Forward Contracted Revenue: BNP
Paribas, La Poste and Kering • Customers include Microsoft, Barclays,
Coca Cola, Afren, Audi !
Endangered Wildlife Protected: African elephants, cheetah, lion, African wild dog, Grevy’s zebra
!Community Impact: 100,000 community
members benefit from carbon revenues
EXAMPLE REDD+ PROJECT: KASIGAU CORRIDOR, KENYA
Investment Snapshot
© 2014 - Wildlife Works Carbon, LLC. 12
• Area: 684,000 Acres • WWC Initial Investment: $3.4 MM • Project Validation Date: December 2012 • Yield: 5,800,000 VERs per year average
over 30 years • High Revenue Potential:
30 years @ $6 per VER > $1B
!• Community Impact: Population of
50,000 economically benefit!• Wildlife Protected: Bonobos (slender
chimpanzee), forest elephant!!
EXAMPLE REDD+ PROJECT: LAC MAI NDOMBE, DR CONGO
Investment Snapshot
© 2014 - Wildlife Works Carbon, LLC. 13
• Wildlife Works Carbon REDD+ projects generate highly desirable, charismatic Verified Emission Reductions (VERs) by protecting threatened forests
- We have 3 operating projects - Produce 7M VERs per year for 30 years (valued at $42M+ annually)
- Protect 500,000 hectares of threatened forest - 15 projects to be developed or acquired – will generate 35M VERs
annually by 2020 (most of which are already in our pipeline) - Each project produces VERs annually for 30 years – unsold VERs never
expire
- Low investment requirement per project ($1.5M-$5M) - Very attractive IRRs due to low project development and operating costs,
long term residual cash streams • We sell our VERs to Major corporations and governments worldwide to reduce
their effective carbon footprint and mitigate climate change
We are Raising $15M in corporate equity and $25-35M in project financing to allow us to grow our successful REDD+ forest conservation business
Investment Snapshot
Proposed Financing
© 2014 - Wildlife Works Carbon, LLC. 14
Michael Korchinsky Co-Founder & President Wildlife Works Carbon, LLC T: +1 (415) 332-8081 E: [email protected]
Slide 14
An Extraordinary Impact Investment