Desert Control As · OSL:DSRT
Desert Control As — Q3 2023 Earnings Presentation
27 slides from Desert Control As's earnings presentation, 2023
Slide 1: Company Update
Company Update Desert Control AS
Slide 2: Making Earth Green Again
MAKING EARTH GREEN AGAIN
Slide 3: Loss of Fertile Land and Water – A Vicious Cycle
LOSS OF FERTILE LAND AND WATER – A VICIOUS CYCLE 12M Hectares perish to desertification annually >70% 52% Of water used for Of agricultural land agriculture degraded 4Bn Experience droughts and water scarcity 3
Slide 4: Loss of Fertile Land and Water – A Vicious Cycle
LOSS OF FERTILE LAND AND WATER – A VICIOUS CYCLE 12M Hectares perish to desertification annually $125B $490B USD spent globally to address Annual cost of soil and land drought related events degradation world-wide (2007-2017) (Source: UNCCD) >70% 52% Of water used for Of agricultural land agricultur
Slide 5: The Problem: Soil Degradation
THE PROBLEM: SOIL DEGRADATION The Chief Problem Resulting in Sandy Soil Less than 15% have large particles with low of water is retained in the ‘surface charge’ – water has topsoil for plant use ‘nothing to stick to’ Water and nutrients drains very fast Most of the water and nutrients are lost 5
Slide 6: Our Solution: Liquid Natural Clay (LNC)
OUR SOLUTION: LIQUID NATURAL CLAY (LNC) LNC-treated Sandy Soil More water and - - - Sand nutrients remain available - Grain - - - - Less water and nutrients are lost 6
Slide 7: Treatment Overview
TREATMENT OVERVIEW Our product is combined with advanced data analytics, end-to-end services, and customized formulations to produce outstanding & scalable results. One treatment lasts for up to 5 years. Analyze & Prescribe Tailored Formulation 01 02 03 Easy Non-Intrusive Application Design Performa
Slide 8: Results
RESULTS Before After Savings Silicon Oasis, Dubai, UAE 47% water savings Water Energy Fertilizers Increased Returns The University of Arizona, Yuma, U.S. 21-53% yield increase Yield Quality Profit ICBA, Dubai, UAE Up to 62% yield increase 8
Slide 9: Proven, Patented, and Validated
PROVEN, PATENTED, AND VALIDATED 12+ years of R&D, 5+ years of field LNC Achieved Documented Results in 20+ Field Implementations & Data-Driven Pilots in UAE & USA: validation and pilots Independent validation by ICBA & University of Arizona Patents achieved in 48 countries Before After Partnerships
Slide 10: Market
MARKET Initial target markets: U.S. Southwest & UAE/Middle East – sandy soil areas affected by drought, desertification, and water scarcity. $490B $125B Annual cost of soil and land USD spent globally to address The water and fertile land crisis is global, and LNC has potential to degradation world-
Slide 11: Business Model
BUSINESS MODEL Turnkey Soil Ecosystem Regeneration for Sandy Soil Scalability: Multiple Revenue Streams Turnkey Projects Digital Subscriptions Fast Lead Times $/acre or $/tree – project pricing Monthly (MRR), dashboard with • 2-3 months build time for additional LNC dependent on area & contract size
Slide 12: Agenda / Q3 2023
Agenda / Q3 2023 Q3 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q3 Q3 & YTD Financials Outlook Questions Highlights and answers 12
Slide 13: Company Update
Company Update CORPORATE MIDDLE EAST UNITED STATES • Secured > NOK 100M YTD • Finalizing transition to licensed • Continued on-target execution operator model (on-target) of sales strategy focused on the • Capital raise: NOK 67,5M customer conversion model • Repair issue: NOK 8M • First LNC producti
Slide 14: United States Update: Q3-2023
United States Update: Q3-2023 STAGE 1 Agriculture (11) • 3 Permanent Crop Pilots • 2 Specialty Pilots § Citrus, dates, vines § Land restoration Technical Pilots § Farm road dust control • 3 Row-Crop Pilots Engagement with potential clients 2 pending implementation § Vegetables & herbs initiates thro
Slide 15: Agenda / Q3 2023
Agenda / Q3 2023 Q3 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q3 Q3 & YTD Financials Outlook Questions Highlights and answers 15
Slide 16: Financial key figures
Financial key figures THIRD QUARTER 2023 [third quarter 2022 in brackets] • Revenue NOK 0.2M [NOK 0.1M] • EBITDA NOK –17.9M [NOK –21.6M] • Profit or loss for the year NOK –19.3M [NOK –14.7M] Runway extended through H1-2025 100 M NOK Incoming cash Q4-2023 0 debts • Total cash balance 30.09.23 (incl.
Slide 17: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 17
Slide 18: Consolidated statement of financial position
Consolidated statement of financial position 18
Slide 19: Consolidated statement of financial position (continue)
Consolidated statement of financial position (continue) 19
Slide 20: Consolidated statement of cash flows
Consolidated statement of cash flows 20
Slide 21: Consolidated statement of cash flows (continue)
Consolidated statement of cash flows (continue) 21
Slide 22: The DSRT share
DESERT The DSRT share » THE GROUP’S SHAREHOLDERS: ‘ownership shareholders in Desert Control AS at 30.08.2023 Total shares_Vating rights OLESEN CONSULT HVACAS 5900000 139% 1, Morgan SE 2516761 59% NORONET LNSFORSKAING AS 2120302 50% on ‘OLESEN 1635 800 39% LITHINON AS 1423705 34% NESSE & CO.AS 336000
Slide 23: Agenda / Q3 2023
Agenda / Q3 2023 Q3 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q3 Q3 & YTD Financials Outlook Questions Highlights and answers 23
Slide 24: Outlook
Outlook CORPORATE MIDDLE EAST UNITED STATES • Complete restructuring • Anticipating a handful of partner- • Continue consistent execution activities related to the driven LNC projects (pilots and of the sales strategy focused on Middle East licensing model proof-of-concept implementations) the custo
Slide 25: Agenda / Q3 2023
Agenda / Q3 2023 Q3 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q3 Q3 & YTD Financials Outlook Questions Highlights and answers 25
Slide 26: Cautionary note
Cautionary note DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS This presentation contains to change without notice. Q3 2023 Report and Year-to-Date forward-looking information and Forward-looking statements are Company Update statements relating to the not guaranteeing any future The information e
Slide 27: Thank you for your attention!
Thank you for your attention!