Making Portfolio Properties More Resilient Resilience is the Ultimate Sustainability • Corporate Sustainability Programs have not generally included “physical risks.” • Measuring “green-ness”, not vulnerability to and climate risks. • Deutsche Bank’s new Study: “Measuring Physical Climate Risk in Equity Portfolios”, November 2017. • New technologies enable property-specific flood risk assessments. Greater Storm Frequency and Severity • Hurricanes Harvey and Irma revealed an astounding lack of resiliency; Brickell Ave. Miami, FL • Not enough property owners insured; • Property owners not properly educated about flood risks; • Property owners not incentivized to mitigate flood risks; Houston, TX • Federal, state and local governments under invest in coastal resiliency. Coastal Flooding Increasing Exponentially King Tides 2015 and 2016 • https://insideclimatenews.org/news/01032016/ft- lauderdale-climate-change-global-warming-rising- sea-level

4 Sea Level Rise Flooding in US Coastal Cities

Annapolis, MD Savannah, GA Charleston, SC

Miami, FL Ocean City, NJ Norfolk, VA Aren’t FEMA Flood Maps Good Enough?

Example: NOAA SLOSH Model Cat 1 Hurricane Surge Much Higher Than FEMA 100-Year Flood Height

Category 1 Hurricane Storm Surge: 8.6’ above NAVD88 Vertical Datum

500-year Flood** = NAVD88 + 5.4’

100-year Flood** = NAVD88 + 4.6’

Ground Floor +8.8’ over Courtyard NAVD88 +7.8’ over NAVD88 0’ above NAVD88 VerticalDatum SEAWALL +4.7’ over NAVD88

*NAVD88 Vertical Datum is the baseline elevation calculated basedon geodetic measurements around theworld.

6 Study Finds FEMA Flood Maps Missed 75% Of Houston Flood Damage Claims Between 1999 And 2009 FEMA Flood Maps: • Backward looking in time; • Don’t include sea level rise or ; • Don’t include heavy rainfall flooding; • Don’t show the same inundation levels as NOAA Storm Surge Models; • Are fixed and don’t reflect seasonal Flooding along Interstate 10 in Houston as a result of Harvey https://www-forbes- changes; com.cdn.ampproject.org/c/s/www.forbes.com/sites/trevornace/201 • Are not linked to any real-time 7/09/18/fema-flood-maps-missed-claims-harvey-houston/amp/ conditions. Public and Private Infrastructure at Risk

Without both public and private resilience investments, our coastal societies will continue to suffer damage and disruption from flooding and climate change impacts. A Climate Resilient Coastal Future?

9 YES! But, How Do We Get From Here to There? • Resiliency aka/”Climate Adaptation Success” requires orchestration of efforts by all levels of government, individual property owners (residential and commercial), insurance companies, and finance -- • Starting NOW!

10 Rapidly Screen All Portfolio Properties for Flood Risks

• Use new technologies to rapidly flood risk score all portfolio properties; • For properties with significant flood risks, take a “deeper dive” with parcel- specific, visualized assessment reports.

11 Individual Property Flood Risk Assessments Algorithmic Modeling of Flood Risks - “Before and After” Protection Investments

BEFORE AND AFTER FLOOD PROTECTION INVESTMENTS

13 Getting Resilient Example: Raising Land and Sea Walls Actual Photo of “Dream Home” Built Using Coastal Risk Modeling Grey Door Luxury Homes "Coastal Risk’s models and succinct, but www.greydoorluxuryhomes.com comprehensive, report provided everything we need. We see this as a valuable and differentiating part of our business model and one that gives our clients added confidence when buying one of our homes on South waterways.“ -- Stanley Young, President, Grey Door Luxury Homes Broward Palm Beach New Times, January 2016: “Homeowner Spends 1 Million to Prepare for Sea Level Rise.” http://www.browardpalmbeach.com/news/homeowner-in-las-olas-isles- spends-1-million-to-raise-property-to-prepare-for-sea-level-rise-7533531 Commercial Real Estate Customer “Due Diligence” Example

CRE Customer in California Customer Endorsement

Pre-Purchase Due Diligence for $2M “I called Coastal Risk Consulting as part of my due Investment Property in Florida diligence for the purchase of a piece of land on the Eastern coast of Florida because I was very Report showed little flood risk and sale concerned about the possibility of flooding. completed The Coastal Risk Rapid Assessment™ report I received greatly exceeded my expectations. It was very thorough, helpful, and made it easy to move forward in this $2 million sale. I found this company to be very helpful and responsive. I would recommend Coastal Risk to anyone who is buying, insuring, or funding any piece of property!” -Diana Goulet, Commercial Real Estate Buyer Flood Risk Due Diligence Online – www.floodscores.com

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Global Flood Impacts - 2017 • Bangladesh flooding 2017; 1200 dead; over 41 million affected. • Monsoon collapses building in Mumbai -- At least 21 people dead; dozens trapped. • Coastal Risk’s Mission: To help a billion coastal residents around the world get climate ready and storm safe though its technologies. Global Flood Scores™

• CRC can compute flood and climate risks, globally, with high spatial resolution • Global Rollout in 2018 with appropriate funding • Identify physical climate risks in Global Equity Portfolios What If All Property Owners Had This Visual For Their “At Risk” Buildings In The US and Globally?

Base Flood Elev. = FEMA 100- year Flood Plain

Category 5 High Tide Extreme 1 ft. Above (8.6 ft. Elevation NAVD 88) All other Base Flood Elevation Weather-related (7.44 ft. Elevation NAVD 88) elevations Category 4 High Tide Impacts (6.6 ft. Elevation NAVD 88) Base Flood Elevation calculated by (6.44 ft. Elevation NAVD 88) Category 2 High Tide Coastal Risk’s (4 ft. Elevation NAVD 88) Category 3 High Tide Category 1 High Tide modeling (4.4 ft. Elevation NAVD 88) (3 ft. Elevation NAVD 88) King tide / King Tide 2030 Sea level rise Indian Creek (80 ft.) King Tide 2045 (2.12 ft. Elevation NAVD 88) (2.74 ft. Elevation NAVD 88) King Tide 2016 flooding (1.66 ft. Elevation NAVD 88) What If We Could Deliver This Information to Their Smartphones? An immersive Augmented Reality (AR) experience that ties coastal flood LIDAR data to modeled projected flood risks to various extreme weather and flooding scenarios: ● View modeled flood levels with live projections on structures; ● Uses Coastal Risk technology for property- specific flood risk assessments; ● Connected to real-time weather alerting. Flood Protection as a Service™ • Phase 1 – Flood Risk Assessments Online • Phase 2 – Engineering Evaluations of Risks and Solutions • Phase 3 – Identification of Adaptation and Resilience Projects and Costs • Phase 4 – Financing, Implementation & Retractable flood wall deployed Maintenance during Hurricane Harvey • Phase 5 – Flood Insurance Premium Reductions

23 Homeowners Can Also Make Cost-Effective Resilience Investments • Retrofit Examples: –Backflow preventers –Raise HVAC systems –Regrading land –Raise electrical outlets –Removable flood barriers –Elevate ground floor entrances

24 Coastal Risk Customers

25 Coastal Risk’s Awards and Recognition

American BusinessAwards American Business Awards 2016: “Startup of the Year” 2016: “Tech Startup of the Year”

Broward Palm Beach Miami HeraldBusiness Smart CityStartups Knight Foundation & New Times: “3rd Coolest Plan Challenge 2015: 2015: Finalist SingularityUniversity Startup” 2016 Finalist 2015: Finalist

28 For Further Information Contact:

Albert J. Slap, President and CEO [email protected]

Rajiv Krishnan, CFO [email protected]

Dr. Leonard Berry, Vice President and Co-Founder [email protected]

COASTAL RISK CONSULTING, LLC (O) 844-SEA-RISE (732-7473) *Thanks to Dr. Nancy Gassman for the use of Fort Lauderdale slides and content.

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