Cea Industries Inc. · NASDAQ:BNC
Cea Industries — Investor Presentation (February 2022)
17 slides from Cea Industries's investor presentation, Feb 2, 2022
Slide 1: A Platform for Innovation: 2022 Presentation
CG) CEA A PLATFORM FOR INNOVATION 2022 Presentation
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements This investor presentation may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect our current
Slide 3: Company Overview: CEA Services & Solutions
COMPANY OVERVIEW CEA SERVICES & SOLUTIONS 90% 5% 5% i) 7/0 1) Equipment and Licensed Architectural Ancillary Infrastructure Control Systems & MEP Engineering Technology Providing costeffective’services and solutions to the controlled environment agriculture industry since 2006
Slide 4: Controlled Environment Agriculture
CONTROLLED ENVIRONMENT AGRICULTURE 40%o+ 70%+ arable land has suffered global freshwater farming degradation used by agriculture —PNAS, 2018 —Worldbank, 2019 CEA is capable of increasing output yield by 10-50x versus traditional field farming
Slide 5: CEA Demand Is Growing
CEA DEMAND IS GROWING aly <e 68% of global consumers prefer locally branded vegetables * Statista, Grand View Research 22? 95% of US single urban households are willing to pay more for local food $600M Invested into CEA, including Softbank, Jeff Bezos, and Google Ventures ceaindustries.com dl $21B T
Slide 6: Industry Leading Design and Engineering Solutions
ae ces INDUSTRY LEADING DESIGN AND ENGINEERING SOLUTIONS Our knowledge design Floor Plans & Architectural Design sf expertise, and technology solutions provide optimal Ye | operating efficiencies to our ‘al clients. Preventive Ri _ Ss are 26 ral MEP Engineering £% sal Environmental 5 Ay Installation
Slide 7: Operational Overview: Design & Engineering
Floor Plans & Architectural Design Early contact with prospect, relationship development Value added facility design Licensed architectural services OPERATIONAL OVERVIEW: DESIGN & ENGINEERING _ call MEP Engineering » Licensed mechanical, electrical, & plumbing engineering * Core, differentiated stre
Slide 8: Operational Overview: Equipment & Installation
OPERATIONAL OVERVIEW: EQUIPMENT & INSTALLATION cE Ps = Lighting, Benching & Project Management Ancillary Equipment * Work closely with installation Provide all key infrastructure ; contractors to support construction technologies required in the facility Control Technologies + Upsell opportunities *
Slide 9: Operational Overview: Start-up & Operation
* Installation Support Site visits during installation - Engineering support OPERATIONAL OVERVIEW: START-UP & OPERATION Start-up & Training * Operator training - Insure proper installation & operation ceaindustries.com st Preventive Maintenance Services Life of the facility » Recurring revenue » Rel
Slide 10: Project Timeline Months
PROJECT TIMELINE 5 MONTHS: Equipment ordered (40% deposit on equipment received prior to ordering) 1-2 MONTHS: 4-5 MONTHS: 12-18 MONTHS: Proposal development Architectural and MEP engineering work All equipment shipped and installed, project completed, operator and presentation completed and equipme
Slide 11: Case Studies
CASE STUDIES Location Michigan Pennsylvania Multi-facility Operator, AZ, CA, IL Size 75,000 sq ft 50,000 sq ft Over 330,000 sq ft in three facilities Sale Closed June 2019 July 2020 August 2016; July 2020; Sep 2021 Engineering Services Mechanical Mechanical ete HVAC Equipment 4 pipe chilled water DX
Slide 12: Financial Overview
FINANCIAL OVERVIEW $15.2M [| “am si0.6M Le aM $8.5M -$1.0M $5.1M so oM 1-03 -$1.8M Q1-Q3 -$2.4M 2019 2020 2021 2019 2020 2021 Q1-Q3 Q1-Q3 © 2021: Return to pre-COVID levels (>) 2021: Improvement (versus previous year driven by operating efficiencies) © 2020: Lower revenue driven by pandemic impact w
Slide 13: Backlog
BACKLOG $8.2M Q3 2020 $9.9M Q3 2021 13
Slide 14: Peer valuation: Price/Sales multiples
urban-gro, Inc. UGRO $102 $52.37 1.9x Agrify Corporation AGFY $132 $38.94 3.4x GrowGeneration Corp. GRWG $505 $393.84 1.3x Hydrofarm Holdings Group, Inc. HYFM $873 $456.45 1.9x Mean 2.1X Median 1.9x CEA Industries Inc. (Surna) * Provided for informational purposes only and there's no certainty of an
Slide 15: Growth Strategy
Organic Growth Increase contract sizes with additional service/solutions Aggressively expand into non- cannabis marketplace Focus on higher-margin recurring revenues Increase sales staff and marketing budget GROWTH STRATEGY Acquisitions/JVs * Target companies with high margin solutions that compleme
Slide 16: Management Team
Tony McDonald Chairman & CEO * On Board and as CEO since 2018 + VP/Sales, Coolerado Inc., a cleantech HVAC company + Managing Director/VP Acquisitions private equity, consultant KPMG, author Cleantech Sell + MBA Harvard; BS Engineering, US Military Academy, West Point, NY + US Army veteran, former C
Slide 17: The CEA industry is undergoing rapid, sustained growth
The Controlled Environment Agriculture industry is undergoing rapid, sustained growth o. ee “A Ve =<al New Markets: New Products: Acquisitions: International outside N. America Higher margin solutions and New vertical markets, geographic Non-cannabis CEA expansion services via collaborations and JVs
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