Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Non-Deal Roadshow (October 2015)
20 slides from Arcadia Biosciences's roadshow presentation, October 2015
Slide 1: Investor Handout
Investor Handout October 2015
Slide 2: Forward-looking statements
Forward-looking statements “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about the company and its products, including statements relating to components of the company’s long-term financial success; the compa
Slide 3: Arcadia is a leading agricultural biotechnology trait company
Arcadia is a leading agricultural biotechnology trait company Major global markets for Clear path to sustained agricultural crop yield financial growth 1 6 Partnered with market High-value yield traits leaders in target crops 2 5 Unique model increases value, Late-stage portfolio, 13 reduces risk 3
Slide 4: Agricultural yield is always critical, and traits create significant value
Agricultural yield is always critical, and traits create significant value Population growth and increasing per capita income drive need for increased yield Arable land per capita World popula4on Meat consump4on vs. GDP: more income = more calories (ha) (B) (Per capita meat consump4on, kg/year) +2bn
Slide 5: Significant growth potential exists from next wave of abiotic stress traits
Significant growth potential exists from next wave of abiotic stress traits Addressing yield losses caused by abiotic stresses Abiotic stress accounts for 66-82% of lost yield represents untapped growth opportunity Average yield Biotic losses Abiotic losses % of record yield Limited number of commer
Slide 6: Clear path to sustained financial growth with products in development
Clear path to sustained financial growth with 50 products in development Phase PROGRAM Crop Collaborator(s) Key Markets D 1 2 3 4 5 PRODUCTIVITY TRAITS Nitrogen Use Efficiency (NUE) Wheat Limagrain, Mahyco, CSIRO, ACPFG Global Rice Mahyco, AATF Asia Soybean Verdeca Americas, Asia Corn - Global Cotto
Slide 7: Open architecture maximizes technology access and global market penetration
Open architecture maximizes technology access and global market penetration Public Institutions Arcadia Licensees Gene Proof of Transform Field trial Transform Product Regulatory Seed Activities discovery concept into crops data into target development approval marketing crops and sales Rice Wheat B
Slide 8: Partnered with leaders in target crops, markets and geographies
Partnered with leaders in target crops, markets and geographies • Leading global wheat seed breeder • Investor ! Commercial agreements and marketer • JV partner enable and incentivize Wheat • Commercial partner • Fourth largest global seed since 2009 sub-licensing and stacking company overall to max
Slide 9: Traits and capabilities lead to high value-capture
Traits and capabilities lead to high value-capture Value-sharing ! Arcadia has licensed key technologies to partners for most major crops and Value created countries for farmer • Farmer – seed company value allocation based on partner experience 60-65% 35-40% • Arcadia value allocation established b
Slide 10: Growth assumptions conservatively modeled
Growth assumptions conservatively modeled Trait market adoption rate and share 100 HT sugarbeets (95%) HT soybeans (93%) HT cotton (82%) 80 Bt cotton (75%) Trait % of planted area HT corn (85%) 60 Bt corn (76%) Arcadia trait 40 High range: 30-40% Medium range: 20-30% 20 Low range: 15-20% 0 1 2 3 4 5
Slide 11: Late-stage portfolio with products in Phase 3 of development or later
Late-stage portfolio with 13 products in Phase 3 of development or later Phase D 1 2 3 4 C Months 24-48 12-24 12-24 12-24 12-36 Success1 5% 25% 50% 75% 90% Productivity traits: Designed to increase crop yields and income through improved input efficiency and environmental stress tolerance Program Cr
Slide 12: Stress Tolerant soybeans have received the first regulatory approvals
Stress Tolerant soybeans have received the first regulatory approvals Stress Tolerance – Soybeans Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 110M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$10B added value globally • 4th largest global crop 24-48 mo 1
Slide 13: NUE rice demonstrates average yield increase of 30%
NUE rice demonstrates average yield increase of 30% Nitrogen Use Efficiency – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 162M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$30B added value globally • 3rd largest global crop 24-48 mo 12-24 mo 12-24 m
Slide 14: Non-GM Herbicide Tolerant wheat taps into largest existing trait market
Non-GM Herbicide Tolerant wheat taps into largest existing trait market Herbicide Tolerance – Wheat (non-GM) Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 217M Ha • Based on combination of herbicide D 1 2 3 4 C cost reduction and yield increase • Largest global
Slide 15: Non-GM Resistant Starch wheat improves health qualities of wheat
Non-GM Resistant Starch wheat improves health qualities of wheat Resistant Starch Wheat (non-GM) Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global • Based on delivery of greater total D 1 2 3 4 C dietary fiber in wheat products • $2B market opportunity 24-48 mo 12-2
Slide 16: Regulatory approvals, commercial partnerships and patents continue to advance pipeline
Regulatory approvals, commercial partnerships and patents continue to advance pipeline Regulatory approvals Commercial partnerships Patent advancements Regulatory approval of stress Verdeca collaboration with TMG to US Patent issued for Arcadia’s tolerant soybeans by CONABIA advance breeding of stre
Slide 17: Contractual milestones provide near-term revenue and visibility on progress
Contractual milestones provide near-term revenue and visibility on progress Initiation Commercialization Phase 1 2 3 4 C Tech Access Fee Greenhouse Efficacy Field Efficacy 1 Field Efficacy 2 (when applicable) Regulatory Submission Regulatory Approval Commercial Launch 17
Slide 18: Top four traits represent significant revenue opportunity in major global crops
Top four traits represent significant revenue opportunity in major global crops Annual Trait Revenue Opportunity Approximately $9B-$14B1 By Trait By Crop Chart Title Sugarcane Canola 1% 4% Salinity Cotton Tolerance 6% 14% Rice Corn 17% 29% Heat Nitrogen Use Tolerance Efficiency 21% 43% Soybeans Whea
Slide 19: Revenue
Revenue Second Quarter First Half % Increase/ % Increase/ 2015 2014 (Decrease) 2015 2014 (Decrease) Product revenue 179 65 175% 260 199 31% License revenue 401 195 106% 559 371 51% Contract research and 850 1,045 (19%) 1,426 2,112 (32%) governmental grants Total revenues 1,430 1,305 10% 2,245 2,682
Slide 20: Operating expenses
Operating expenses Second Quarter First Half % Increase/ % Increase/ 2015 2014 (Decrease) 2015 2014 (Decrease) Cost of product revenues 106 46 130% 162 137 18% R&D expense 2,086 2,275 (8%) 3,918 4,258 (8%) SG&A expense 2,785 3,983 (30%) 5,423 5,867 (8%) Total operating expenses 4,977 6,304 (21%) 9,5
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