Benson Hill, Inc. · OTC:BHILQ
Benson Hill — SPAC Merger (May 2021)
57 slides from Benson Hill's SPAC merger presentation, May 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021
Slide 2: Disclaimer
2 Disclaimer This presentation was prepared exclusively by Goldman Sachs & Co. LLC (“GS”), Credit Suisse These forward-looking statements are provided for illustrative purposes only and are not intended to Securities (USA) LLC (“Credit Suisse”) and Barclays Capital Inc. (“Barclays”) (and, together w
Slide 3: Disclaimer (Cont’d)
3 Disclaimer (Cont’d) Use of Projections and Financial Information Trademarks and Trade Names This presentation contains financial forecasts relating to the anticipated future financial performance of Benson Hill, the proposed acquiror and the combined company. For example, projections of future Sta
Slide 4: Disclaimer (Cont’d)
4 Disclaimer (Cont’d) This presentation provides summary information only and is being delivered solely for informational Stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the purposes. The recipient of this presentation acknowledges that: definitive prox
Slide 5: Risk Factors
5 Risk Factors Investing in this transaction involves a high degree of risk. Below is a summary of certain risk factors • Benson Hill will incur increased costs as a result of operating as a public company and its that make an investment in this transaction speculative or risk. This summary is not c
Slide 6: Star Peak has Identified Benson Hill as the Leading Food Technology Platform
6 Star Peak has Identified Benson Hill as the Leading Food Technology Platform Driving the Plant-Based Revolution The Business • Consumer-centric approach driving crop innovation to improve food by unlocking the natural genetic diversity of plants Leadership • Leading platform that integrates data s
Slide 7: Star Peak: Focused on Sustainability
7 Star Peak: Focused on Sustainability Mike C. Morgan Chairman Eric Scheyer CEO Co-founding Partner, Chairman, and Head of Magnetar Energy and Star Peak Energy Star Peak Corp II CEO of Triangle Peak Partners, LP Infrastructure Group since its inception Transition Corp (Dec 4, 2020)(2) 12+ Years Part
Slide 8: Star Peak’s Extensive Due Diligence Process Validates Benson Hill
8 Star Peak’s Extensive Due Diligence Process Validates Benson Hill as an Exceptional Investment Opportunity Star Peak engaged on an Process included leading Star Peak conducted Star Peak conducted onsite exclusive basis to complete industry advisors and interviews with numerous due diligenc
Slide 9: Current Food System Must Evolve to Improve Human Health and the Planet
9 Current Food System Must Evolve to Improve Human Health and the Planet HUMAN HEALTH IMPACT ENVIRONMENTAL IMPACT CONSUMERS WANT CHANGE $ 1.7tn 1.7tn+ 27 Amount Americans $ Annual economic cost % of total GHG emissions 8 GtCO2e of GHG emissions 67 % of consumers are 39 % of Americans spend annually
Slide 10: Unlocking the Full Potential of the Plant-Based Revolution Requires…
10 Unlocking the Full Potential of the Plant-Based Revolution Requires… …A Better Seed… …and an Integrated Solution Processor / Wholesale Supplier Farmer Food/Beverage Company Breeder & Seed Food Service Producer Retail Consumer Seed innovation enables more healthy, sustainable, great tasting Benson
Slide 11: ‘Picks and Shovels’ of the Plant-Based Revolution
11 A Food Technology Leader Supplying the ‘Picks and Shovels’ of the Plant-Based Revolution Significant and Growing Unique and Proprietary Capitalized for Growth Rapidly Growing Revenue at Addressable Market Innovation Engine: CropOS ® Commercial Inflection • $140bn near-term TAM opportunity in • Un
Slide 12: Building a Modern Food Company with a Consumer-Centric Approach
12 Building a Modern Food Company with a Consumer-Centric Approach Across the Food System Headquarters: St. Louis, MO 2012 337 An Integrated Approach to Innovation Founded Total Employees 200+ Granted and pending patents Plant Science Cutting-Edge Data Science Data Analytics 120+ With advanced degre
Slide 13: Benson Hill Unlocks Sustainability Benefits at Each Step of the Value Chain
13 Benson Hill Unlocks Sustainability Benefits at Each Step of the Value Chain On-Farm Impacts Processing Impacts Product Impacts • Optimizing resource use and soil health • Displacing energy and water intensive • Improving quality and affordability of plant- processing steps based meat options • In
Slide 14: Technology Required to Meet Evolving Consumer Demands
14 Technology Required to Meet Evolving Consumer Demands QUALITY HAS BEEN SACRIFICED CONSUMER DEMAND FUELING MASSIVE TECHNOLOGICAL INNOVATION ELIMINATES MARKET OPPORTUNITY THE NEED TO COMPROMISE ON QUALITY Over the last 30 years... …but Cloud 60% >50% >50% Computing Sequencing 4% CPG category growth
Slide 15: Existing Food System Not Equipped to Meet Evolving Consumer Demands
15 Existing Food System Not Equipped to Meet Evolving Consumer Demands Processor/ Wholesale Supplier Farmer Food/Beverage Company Breeder & Seed Consumer Producer Source: Benson Hill.
Slide 16: We Enable “Better from the Beginning” Through an Integrated Model
16 We Enable “Better from the Beginning” Through an Integrated Model To Create a More Responsive, Healthy Food System Processor/ Wholesale Supplier • Acreage • Removal of • Grower steps Food/ Farmer relationships • Processing Beverage capabilities Company Breeder & Seed • Data library • Responding P
Slide 17: How We Provide Value to the Supply Chain & Consumers
17 How We Provide Value to the Supply Chain & Consumers Benson Hill’s Technology Leverages Potential Benefits to Seeds’ Genetic Diversity to: Brands and Consumers: PLANT- BASED • Increase Protein Content BURGER • Fewer Additives • Enhance Flavor Profile • Less Processing • Reduce Agricultural Resour
Slide 18: Introduction to CropOS®
18 Introduction to CropOS ® Food Innovation Engine Driven by a Robust, Proprietary and Ever-Expanding Data Library TEST Product Development DESIGN Technology Platform • Food science & formulation • Genomics • Agronomy & environmental • Artificial intelligence / machine learning optimization • Comput
Slide 19: CropOS Combines Data Across Multiple Domains
19 Predictive and Prescriptive AI/ML ® CropOS Combines Enables exploration and optimization Data Across Multiple Domains to Enable Simulation Pipeline Design Billions of virtual seeds in millions of pipelines WHY OUR DATA LIBRARY IS DIFFERENT Breeding Targets Genomic selection 20 6.5bn+ with prescri
Slide 20: Design: CropOS Data Creates Actionable Insights
20 PROPRIETARY APPLICATIONS ® CropOS Data Creates Actionable Insights for Plant Breeding, Genome Editing, and Global genetic diversity mapped to Product Optimization >5,800 unique, sequenced proprietary germplasm DATA FUSION DATA ANALYTICS Design >18 million gene expression Proprietary Data- Predict
Slide 21: Build: Proprietary Gene Editing and Speed Breeding
21 Proprietary Gene Editing and Speed Breeding Enable Rapid Prototyping BENSON HILL HAS DISCOVERED AND VALIDATED A LARGE PROPRIETARY PORTFOLIO OF CRISPR • 47,000 sq ft facility with 20,000 sq ft NUCLEASES of dynamically adaptive Conviron Build growth chambers • Precise environmental control 365 days
Slide 22: Test: Environmental and Genetic Models Optimize Field-Specific Research
22 ROBUST PRODUCTION Environmental and Genetic AND RESEARCH FOOTPRINT Models Optimize Field-Specific Research Product Outcomes Production RESULTS IDENTIFY FIELDS WITH PROTEIN LIFT Test CropOS ® fuses information from drone and satellite imagery, farmer-contributed data, agronomist sampling and batch
Slide 23: Demand for Plant-Based Protein Cannot be Met by Existing Food System
23 Demand for Plant-Based Protein Cannot be Met by Existing Food System DEMAND FOR PLANT-BASED PROTEIN IS GROWING RAPIDLY… …BUT CAN’T BE SATISFIED USING CURRENT TECHNOLOGY(3) 1.6 Value of meat substitute Soy Protein Concentrate (million tons) 1.4 market expected to reach ~80x $140bn by 2029 expansio
Slide 24: Case Study: Ultra High Protein (UHP) Soybean
24 Current Benson Hill Industry Practice Enabled ROBUST PRODUCTION Case Study: Ultra High Protein AND RESEARCH FOOTPRINT (UHP) Soybean Ingredient Soybean (~36% protein Soybean (~49% protein content) content) ~6-8 Year Head Start (Planting in 2021) Soybean Meal CropOS® Accelerated Creation of UHP Var
Slide 25: Case Study: Yellow Pea
25 Case Study: Yellow Pea 40% Our Program (In Development, Medium Term) Today Seed Protein (%) PPI Replacement ~2-3 Year Head Start Using CropOS® platform to accelerate innovation in Yellow Pea 1. 23% Genomic data used to understand and optimize diversity of parents and crosses Benson Hill Commodi
Slide 26: Our Robust Pipeline of Products
26 Our Robust Pipeline of Products Targeting Large and Rapidly Expanding Markets Producing/ Product Description Value Proposition Market Target Customer Base Commercial(1) Low cost, Textured plant protein 2021/2022 Plant-Based Foods Plant-Based sustainable Foods Next-Generation Protein Textured plan
Slide 27: Our Playbook for Growth Accelerates Commercialization…
27 Our Playbook for Growth Accelerates Commercialization… Mature End State Step 1 Step 2 Step 3 Create the Foundation Integrated Route to Market Broad Adoption • Market entry • Prove product concept • Maximize benefit of proprietary • Build relationships across the • Ensure traceability products on
Slide 28: …And Drives Accelerated Growth While Mitigating Scale-up Risk
28 …And Drives Accelerated Growth While Mitigating Scale-up Risk Step 1 Step 2 Step 3 Create the Foundation Integrated Route to Market Broad Adoption Seed Value Chain Position Breeder/ (1) Seed Producer Farmer Processor/ (1) Wholesale Supplier Food/Beverage Company and Food Service/Retail Provide se
Slide 29: Our Business Today
29 Our Business Today Description • Ingredients provider to fast growing end markets • Fresh vegetable grower-packer-shipper • 10+ year grower relationships • Long-standing retail / grocer and food service relationships • Human food grade, including non-GMO & Kosher certified options • Established g
Slide 30: Executive Leadership Team
30 Executive Leadership Team with Diverse Business and Technical Backgrounds Across the Food System Matt Crisp DeAnn Brunts Natalie DiNicola Chris Wilkins President & CEO Chief Financial Officer Chief of Staff Chief Operating Officer Serial AgriFood entrepreneur Experienced public company board 20+
Slide 31: Public-Market Ready Board of Directors
31 Public-Market Ready Board of Directors Dan Jacobi Deanie Elsner David Lee Chairman Director Director Linda Whitley- Andy Wheeler Stephan Dolezalek Taylor Director Director Director Alphabet DeAnn Brunts Matt Crisp Craig Rohr Director & CFO Director & CEO Director Source: Benson Hill. Note: Additi
Slide 32: Recent Highlights and Upcoming Milestones
32 Recent Highlights and Upcoming Milestones Recent Successes Expected Near-Term Milestones Ultra-High Protein commercial launch accelerated to 2021/2022 Contracting at / above targeted 2021 acreage, providing visibility into 2022 revenue 5 MOUs with top global AgriFood companies TM Commercial l
Slide 33: Positioned to Capitalize on Massive Growth Opportunity
33 Positioned to Capitalize on Massive Growth Opportunity Net Cash Available for Growth Balance Sheet Strength Geographic Expansion ~$650mm Provides flexibility to attack large and growing markets Expansion into rapidly growing international (1) markets with new and existing partners Debt on Balance
Slide 34: Financial Forecast Section
34 Financial Forecast Section
Slide 35: Introduction to Benson Hill’s Economic Model
35 Introduction to Benson Hill’s Economic Model Ingredients Segment Fresh Segment ~30-40% Gross Margins High Teens Gross Margins As commercialization ramps Steady single digit revenue growth • Significant near-term growth driven by existing proprietary products • Integrated grower of fresh vegetable
Slide 36: Robust Growth Driven by Existing Products
36 Robust Growth Driven by Existing Products $ 1,472 Partnerships/Royalties ~100% CAGR Revenues by Segment ($mm) $ 726 $ 862 Ingredients ~49% CAGR $ 363 $ 561 $ 174 $ 348 $ 666 $ 251 $ 83 Fresh $ 422 $ 161 $ 36 $ 313 ~5% CAGR $ 102 $ 127 $5 $4 $ 195 $6 $ 146 $ 60 $ 91 $ 41 $ 56 $ 64 $ 66 $ 68 $ 71 $
Slide 37: Expect Significant Gross Margin Expansion Over Time
37 Expect Significant Gross Margin Expansion Over Time Gross Profit by Segment ($mm) Blended Gross Margin % UHP Costs ($/st) (Indexed) 48 % $703 43 % 100% 38 % 30% (30%) $372 21 % YE ‘22 15% (15%) YE ‘24 $212 13 % 30% (30%) 12 % 9% 25% $74 FRESH $32 ’22 - ’24 $12 $12 $2 1% (1) (1) 2020A 2021E 2022E
Slide 38: Key Performance Indicators
38 Key Performance Indicators Percentage of Total Revenue Acreage Ingredients and Partnerships/Royalties 1,446,975 91 % 95 % 87 % 80 % 73 % 795,023 59 % 410,818 433,000 473,000 50 % 283,456 336,901 45 % 225,433 101,740 205,868 (1) 2023E 2024E 2025E 2026E 2027E 2020A 2021E 2022E 2023E 2024E 2025E 202
Slide 39: Delivering Growth with Rapidly Expanding Margins
39 Delivering Growth with Rapidly Expanding Margins (1) ($mm) 2020A 2021E 2022E 2023E 2024E 2025E 2026E 2027E Revenue $ 102 $ 127 $ 161 $ 251 $ 348 $ 561 $ 862 $ 1,472 YoY Growth 24 % 27 % 55 % 39 % 61 % 54 % 71 % Gross Profit $ 12 $ 12 $2 $ 32 $ 74 $ 212 $ 372 $ 703 Gross Margin 12 % 9% 1% 13 % 21
Slide 40: Detailed Transaction Overview
40 Detailed Transaction Overview Transaction Highlights (1) Sources and Uses • Star Peak has ~$403mm in cash Sources $mm % Uses $mm % Cash Sources held in the trust account Committed Equity PIPE $ 225 11.7 % Stock to Benson Hill Shareholders $ 1,300 67.4 % • PIPE size of $225mm Star Peak Trust 403 2
Slide 41: Public References for Benson Hill
41 Public References for Benson Hill Slower Growth Higher Growth Companies Mature Companies Food Tech Ag Tech Biotech Ag / Specialty Ingredients Public Market References Beyond AppHarvest Meat Other Ingredients(1) Proprietary High growth More mature and High growth technological platforms
Slide 42: Benson Hill Compares Favorably vs. Public Market References
42 Benson Hill Compares Favorably vs. Public Market References Slower Growth Higher Growth Companies Mature Companies Food Tech Ag Tech Biotech Ag / Specialty Ingredients Public Market Beyond Meat AppHarvest(2) References (3) Other Ingredients(1) Growth Growth Trajectory Trajectory Low High Low High
Slide 43: Growth Trajectory and Margin Profile Benchmark Favorably
Peer Median: 39% 43 Benson Hill’s Growth Trajectory and Margin Profile Benchmark Favorably vs. Public Market References Higher Growth Companies Slower Growth Mature Companies Food Tech Ag Tech Biotech Ag / Specialty Ingredients ’21E – ’23E CAGR 71% 61% Peer Median: 101% Peer Median: 11% Peer Median:
Slide 44: Implied Revenue Multiples Are at a Discount to Public Market References
44 Benson Hill’s Implied Revenue Multiples Are at a Discount to Public Market References Higher Growth Companies Slower Growth Mature Companies Food Tech Ag Tech Biotech Ag / Specialty Ingredients CY 2022E EV / Revenue '21E 10.6x Peer Median: 30x Peer Median: 14x Peer Median: 34x Peer Median: 6x 66
Slide 45: Benson Hill Has Significant Upside Potential
45 Benson Hill Has Significant Upside Potential Implied Enterprise Value Based on Public Market References Trading Valuations Transaction Valuation Implied Future Discounted Enterprise Value Enterprise Value Enterprise Value $ 5,606 $5,606 263% Midpoint Premium $ 4,205 ($ in millions) $4,205 $ 2,962
Slide 46: Investment Thesis
46 Investment Thesis 1. 2. 3. 4. Significant and Unique and Capitalized for Rapidly Growing Growing Proprietary Growth Revenue at Addressable Market Innovation Engine: Commercial CropOS ® Inflection Benson Hill is a pure play ESG investment opportunity Source: Benson Hill.
Slide 47: Appendix
47 Appendix
Slide 48: Expansive Platform Opportunity
48 Expansive Platform Opportunity The ‘Picks and Shovels’ of the Plant-based Food Revolution Food Made Better From Plant-based meats: Commercializing The Beginning soybean (near-term) and yellow pea (medium-term) products with forecasted $140B TAM1 by 2029 Soybean Yellow Pea Food technology company:
Slide 49: Glossary
49 Glossary Item Definition ABCD in Ag 4 companies, ADM, Bunge, Cargill, and Louis Dreyfus, which control 70% of the grain industry Agronomy The science of soil management and crop production Constraint of The constraints on innovation life cycles that come with working with complex, living things.
Slide 50: Glossary (Cont’d)
50 Glossary (Cont’d) Item Definition Pea Protein Isolate A plant-based protein ingredient isolated from mostly yellow pea grain that is highly processed and used in human food applications. Pea (PPI) Protein Isolate typically has a protein content of 80% or greater on a moisture free basis Phenotype
Slide 51: Serviceable Addressable Market Overview
51 Serviceable Addressable Market Overview ($ in billions) UHP Soy for Plant-Based Meat UHP Soy for Aquaculture Feed UHP Soy for Starter Feed 13.0 2.8 2.6 12.2 2.5 11.5 2.3 2.2 0.53 10.3 2.1 0.51 0.52 0.52 8.8 2.0 0.50 0.50 1.8 1.9 0.48 0.48 0.49 0.49 7.4 1.7 6.3 1.6 5.3 4.3 4.6 4.5 0.44 '20E '21E '
Slide 52: ESG is in our Product Impact, Our Culture and our Long-term Value
52 ESG is in our Product Impact, Our Culture and our Long-term Value Benson Hill believes in impacting our community and our environment in a positive manner, advancing our food system with the purpose of enriching the lives of producers and consumers through a strong connection to our stakeholders
Slide 53: Supported by Best-in-Class Scientific Experts
53 Supported by Best-in-Class Scientific Experts Scientific Advisory Board Todd Mockler Julia Bailey-Serres Chase Beisel Co-Founder and SAB Member SAB Member Chair, SAB Plant System Biology Plant Cell CRISPR and Bioinformatics Biology Gene Editing Rex Bernardo Asaph Cousins Gary Fogel SAB Member SAB
Slide 54: Audited GAAP Income Statement
54 Audited GAAP Income Statement Year Ended December 31, ($000s) 2018 2019 2020 Revenues $ 4,269 $ 79,523 $ 114,348 Cost of sales 677 70,961 102,430 Gross profit 3,592 8,562 11,918 Operating expenses Research and development 13,373 24,810 29,457 Selling, general and administrative expenses 9,158 27,
Slide 55: Audited GAAP Cash Flow Statement
55 Audited GAAP Cash Flow Statement Year Ended December 31, ($000s) 2018 2019 2020 Operating activities Net loss $(18,089) $(43,910) $(67,159) Adjustments to reconcile net loss to net cash used in operating activities 948 4,781 17,011 Changes in operating assets and liabilities 3,778 (5,224) (2,530)
Slide 56: Audited GAAP Balance Sheet
56 Audited GAAP Balance Sheet Year Ended December 31, ($000s) 2019 2020 Assets Current assets Cash and cash equivalents $ 2,616 $ 9,743 Marketable securities 8,315 100,334 Accounts receivable, net 15,097 14,271 Inventories, net 7,169 13,040 Prepaid expenses and other current assets 2,546 3,061 Total
Slide 57: Audited GAAP Balance Sheet (Cont’d)
57 Audited GAAP Balance Sheet (Cont’d) Year Ended December 31, ($000s) 2019 2020 Liabilities, redeemable convertible preferred stock, and stockholder's deficit Current liabilities Accounts payable $ 17,073 $ 16,128 Revolving line of credit 1,495 - Current lease liability 1,606 1,627 Current maturiti