 Well, I'm still recovering this morning from a big bash two days ago when I celebrated my 80th birthday And a lot of people asked me at that bash because I'm 80 What was the most exciting year in the past 80 years and I said next year because I think next year is when my dream of Transforming business as usual and transforming poverty as well is likely to take place or make a big step forward Three of the movements that I've been involved in over the past 30 years. I think are at a crossroads The first is the movement to end extreme poverty Which I think has basically failed unless we find new ways of addressing poverty It will stay with us as it has for a long time The second is the social impact movement. I Think unless the social impact movement finds ways of Demonstrating commercial profitability at scale It risks dying quietly in its sleep much like the appropriate technology movement dead 25 years ago And the third area is the area of big business big business has been in a global recession And now is beginning to come out of it using the same over consumption patterns that led to the recession in the first place and that are not sustainable for For the carrying capacity of the planet so unless big business learns to Earn attractive profits serving 2.7 billion Underserved customers who live on less than $2 a day. I think it will it risks going following the route of Kodak So I'm going to talk to you today about these three things very briefly and what I think is The real opportunity to transform all of these things in a positive way There are 2.7 billion people in the world today who live on less than $2 a day But in my view conventional development aid has failed Charity doesn't bring people out of poverty Corporate social responsibility is for the most part cosmetic there are exceptions and impact investing confuses social mission and Profit I think conventional aid has failed for the obvious reasons and you can read them on the slide for yourself But now here's the good news There are 2.7 billion people About 40% of all the customers in the world Who are underserved and that offer an unparalleled? unparalleled opportunity for creating new markets that are profitable and create Transformational social change many corporations have now started Creating new markets and new profit opportunities In emerging economies, I'll give I'd like to describe one example Cummins engine 25 years ago Cummins entered The China market right on the heels of Nixon's visit. They didn't make any money for 10 years But let's look at the basic earnings pattern of Cummins in 2010 their profit In Western markets North America and Europe was 5% their profit in China India and Brazil Average 12% the growth rate in Western markets was negative The growth rate in China India and Brazil was 70% So here is a huge opportunity and there are many others of the same kind the question is where can big business Find the next China like opportunity following The kind of experience that a company like Cummins had so what I'm going to just outline for you now is What I think is the transformational opportunity both for big business For extreme poverty and for impact investing It's the 2.7 billion bypass customers who live on less than two dollars a day but The first question is why hasn't big business entered that market? I think there are three reasons one They don't think it can be profitable To they don't have a clue how to design Products and services that are radically affordable that are needed for this population in three There aren't models yet for last mile distribution most of the $2 a day customers are located in Small villages all over the world So what I've been devoting the rest of my life to is the creation of a new breed of frontier multinationals each of them Will is designed to transform the livelihoods of at least 100 million two dollar a day customers Generate at least 10 billion in annual revenues and earn sufficient profits to bring in commercial For-profit investments. I think all of these things are feasible The first question is if you're going to reach a hundred million people at a time With a commercial business. I think it's reasonable to assume that you get maybe 10% market penetration So you have to start addressing problems in which there are a billion customers There are literally hundreds of these problems. There are more than a billion people who don't have access to safe drinking water There's a billion people who don't have access to electricity There's a billion people who don't have access to sanitation There's a billion people who don't have access to affordable health or affordable education I'm going to talk about so what I have been working on with my colleagues is creating the first four of these multinationals and the four multinationals that are in various stages of development are first a Company that sells safe drinking water to people in rural villages without it second a company that is Designed to cut the cost of photovoltaic electricity for villages by 80% and Create a new sort of a general electric serving two dollar a day customers the third brings converts waste biomass into a Torrified the process called torrefaction replacement for coal and charcoal and the fourth is a system of branded schools at about six dollars a month I'm going to talk a little bit about one of these companies to give you an idea of what I'm what I'm referring to Spring health is a company in India that sells safe drinking water to two dollar a day people in villages that have 300 to 1,000 households The first question is how do you address the problem of radical affordability? Well, there is a technology that Creates chlorine by running a little bit of electricity Through a five percent solution of salt that creates chlorine oxidants and We address the problem of last mile distribution by partnering with Kaurana shops These are little mom-and-pop shops in villages all over the world. There are 10 million of them in India alone We build a tank next to each shop The shopkeeper fills it with contaminated water from his own shallow well and Our Indian staff come along on motorcycles and add a three-quarter liter of water purifier to the 3,000 liter tank They test the water for safety 45 minutes later, and if it's safe the shopkeeper delivers the water to people's homes using rickshaw's and Motorized rickshaw's we sell that water for about eight cents a day for a jerry can delivered to people's homes That model the critical issue of that model is how to reach scale so we have defined every step required to Implement 50 villages every month and That operating manual is about the same size as what a pilot takes into other cockpit for a commercial flight Once we have all of that nailed down we will Roll out in multiples of 50 villages that company is just started commercial roll out. We have a 110 staff local staff. We are operating in a hundred villages By the end of this year. We should be in 400 villages So there are models for making this kind of a system work Here is what we expect the outcome to be both in terms of money and in terms of impact We want to ultimately reach a hundred million customers who are drinking water Contaminated with fecal pathogens and they are now will now be drinking safe drinking water which makes a big impact on health and income Financially we expect to have five million customers in ten thousand villages within three years and a hundred million customers in ten years Total capitalization for the initial commercial phase is less than three million We should have free cash flow of two million in year four and five million in year five after paying back the initial capital of Course there are high risks and in all of these companies are high risks and high rewards so I want to say that There are many of these companies that can be formed but we have to start looking at much bigger scale and much more effective profitability in the future We're having a session to talk in more detail about this at 1030 in C 260 and we're having a book signing with a new book Which is being launched today at the back behind it in the impact space behind the registration at 1145 So in summary I Think all it takes is one person with a dream I've already met many people like that here, and I think there are many people with a dream in the audience today So I hope all of us can work together in achieving an end to poverty and new models for profitability at scale By creating new forms of frontier global companies. Thank you very much