wrl - investor deck - july 2014
DESCRIPTION
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.TRANSCRIPT
VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
Executive SummaryWe 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.
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
Team101 People
FootprintPan India & Global
AsiaPhilippinesCambodiaBangladeshSri Lanka
AfricaTanzaniaRwandaZambiaMozambique
Existing Presence
Building Presence
VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
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 2004 2006 2008 2010 2012
Founded with ICICI Lombard as the first client
SIDBI Seed FundIncubation 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 Internationalforay in Tanzania and Bangladesh
Export of Products & Services to Africa & ASEAN
Ready for India and the World
2005 2007 2009 2011 2013 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
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
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
Pioneering Player with BIG DATA, MOBILE and Consumer Behavior expertise
VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
Data Services& Analytics2
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
IndiaLargest Private Network
AfricaTanzaniaRwandaZambiaMozambique
AsiaPhilippinesCambodiaBangladeshSri Lanka
Designed & Manufactured in IMD & ISO certified facility
Dashboard & Services Integrated AWS expansion projected: 2 – 40x per state
VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
Vijay MahajanMentor Founder & Chief Executive OfficerBasix Social Enterprise Group
Dr. AK BohraDirectorWeather Scientist and Former DirectorNational Centre for Medium Range Weather Forecasting
Pankaj KhandelwalDirectorChairman & Managing DirectorINI Farms
Dr. Kanti PrasadDirectorWeather Scientist and Former Dy. Director GeneralIndian Meteorological Department
Dr. BV PhaniDirectorProfessor / FinanceIndian Institute of Technology - Kanpur
Dr. Jayant K. SinghTechnology AdvisorProfessor / Chemical EngineeringIndian 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, 39Founder & Managing DirectorWeather & Climate Risk PioneerIIT Kanpur and IIM Calcutta Alumnus
Anuj Khumbat, 38Chief Executive OfficerFinance and Management SpecialistChartered Accountant
EXECUTIVE TEAM
Ashish Agarwal, 31Chief Technology OfficerElectronics and Technology SpecialistIIT Kanpur Alumnus
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
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
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
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
VISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
Served 1 million farmers across Indiatransforming 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 JainReliance GIC
Alok AgarwalICICI Lombard GIC
ENDORSEMENTS
Dr. Nachiket MorReserve Bank of India
Ritesh Kumar HDFC ERGO GIC
Rajive Kumaraswami SCOR Reinsurance
Dr. Ajit KanitkarFord Foundation
Ved SheshadriCholamandalam GIC
Pranav PrashadInternational Labour Organization
Social Impact in India
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
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 Africa1500 Cr.
PR of China5000 Cr.
Sri Lanka500 Cr.
Cambodia100 Cr.
Latin America5000 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
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
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 SystemsOnly 5% of commercial vehicles are covered by insurersWe have installed 6000 devices Discussions underway with 2 major insurers for 200,000
WMO has recommended 1 Weather Station for every 25 km2 globally
Industry Leader & PioneerVISION 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 BrokersSpecialized in broking alone. Business Development competition only. We have won against them in multiple accounts.
Strong Research FocusVISION 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
How we will ensure ROIVISION 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 …
Social ImpactVISION WHAT WE DO CLIENTS TEAM IMPACT OPPORTUNITY
Investment View
Social Impact Created
Target Social Impact
Served 1 million farmers across Indiatransforming 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
$ 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
Investor Deck Sonu AgarwalManaging Director
[email protected] August 2014
The sky is not the limitAsk us for a detailed business plan