Hexima Ltd · ASX:HXL
Hexima — Investor Presentation (November 2009)
23 slides from Hexima's investor presentation, November 2009
Slide 1: Investor Update
Investor Update November 2009 Joshua Hofheimer, CEO Justine Heath, CFO
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation relate to the future, including forward looking statements and worked examples relating to Hexima’s future expectations, beliefs, goals, plans, prospects, financial position and strategy. These forward looking statements and worked e
Slide 3: Contents
Contents 1. Introduction 2. Market and Value Opportunity 1) Introduction 3. Execution 4. What to Expect – Timelines 5. Conclusion 3 Hexima Limited ©
Slide 4: Hunger impacts over one billion people globally in 2009
Hunger impacts over one billion people globally in 2009 Chronic Hunger or Undernourishment = where food intake is less than the minimum 1) Introduction energy requirement per day ~ 1800 kcal Rising hunger is a global phenomenon affecting 1 in 7 people in all major regions Number of undernourished si
Slide 5: Biotechnology: Genetically modified seed (GM) has transformed agriculture
Biotechnology: Genetically modified seed (GM) has transformed agriculture “Big 6” Agriculture Companies Monsanto Bayer CropScience DuPont / Pioneer Syngenta 5 Hexima Limited © Dow AgroSciences BASF
Slide 6: Deals have been driven by seed market share and access to technology
Deals have been driven by seed market share and access to technology ACQUIRER TARGET YEAR ASSETS PRICE (A$) SEED MARKET Monsanto Delta & Pine 2006 Cotton seed $2.13b SHARE Land 1) Introduction Syngenta Golden Harvest 2004 Corn/soy/other seed $257m Seeds DuPont Pioneer 1999 Corn/soy seed & US$9.46b t
Slide 7: Hexima is building a substantial portfolio of valuable technologies
Hexima is building a substantial portfolio of valuable technologies Multi-gene Expression Proteinase Inhibitor Defensin Technology Vehicle Technology -2nd Gen (Disease Resistance) (MGEV) (Insect Resistance) Status Stage II Stage I Stage I 1) Introduction Commercial Partner DuPont/Pioneer Non-exclusi
Slide 8: Effective value sharing model creates benefits for all participants
Effective value sharing model creates benefits for all participants 100% Total Value Created by Trait • Yield improvement Opportunity • Cost savings 2) Market & • Chemical Value displacement • Labour savings ~40% • Insurance value • Other measurable Technology Fee to value Seed Provider • Valuable r
Slide 9: Control of "must have" traits strengthens position in the US$8.3b GM market
Control of “must have” traits strengthens position in the US$8.3b GM market 2008 Roundup Ready Trait Penetration vs Monsanto Seed Market Share – USA 32m Ha 30m Ha Opportunity 2) Market & Value Roundup Ready % of Trait Monsanto Crop Area Pioneer Bayer Dow Syngenta Farmer Source: Monsanto, ISAAA 9 Hex
Slide 10: Fungal disease trait could be worth up to US$1b per year to the seed provider
Fungal disease trait could be worth up to US$1b per year to the seed provider Worked Example: Crop and Disease Stats: Potential Annual Value in US Corn Trait Market Annual Value to Participants Corn (US) Share (US$) (*Percentage of disease Area 32m Ha controlled) Av yield 380 bu / Ha Opportunity *50
Slide 11: Disease control can create value and drive market share
Disease control can create value and drive market share Opportunity 2) Market & Value Source: Pioneer, FAPRI, Wrather & Koenning, estimates based on 2008 figures 11 Hexima Limited ©
Slide 12: Strong proof of concept: Three consecutive years of positive field trials
Strong proof of concept: Three consecutive years of positive field trials 3) Execution HXL’s fungal resistant cotton trials against Fusarium Wilt C T C C T T C Yr 1 Yr 2 Yr 3 ¥ T = Transgenic, C = Non-transgenic Control ¥ No adverse agronomic differences or yield penalty in absence of disease Cotton
Slide 13: DuPont collaboration: Year achievements
DuPont collaboration: Year 1 achievements ¥ Raised Hexima’s profile with scientific and commercial teams ¥ Identified anti-fungal protein candidates ¥ Established facility and initiated production of transgenic (GM) corn with candidate traits 3) Execution ¥ Close collaboration between DuPont and Hex
Slide 14: Next Steps in DuPont Corn Program
Next Steps in DuPont Corn Program ¥ Continue AFP screening for broad spectrum disease control ¥ Produce first transgenic corn plants ¥ Commissioning of new glasshouse and laboratory facility 3) Execution ¥ Commence glasshouse trials of transgenic corn High through- put screening of AFPs using roboti
Slide 15: Corn transformation facility is fundamental to progress
Corn transformation facility is fundamental to progress and will generate new opportunities July 09 Oct 09 3) Execution • Expected completion Q1 2010 • World class facility • Access to elite germplasm and enabling technology • ~5x existing glasshouse capacity • ~3x existing growth room and tissue cu
Slide 16: MGEV provides a competitive advantage across Hexima's platform
MGEV provides a competitive advantage across Hexima’s platform ¥ Disease Program C2 z Single vehicle delivers multiple disease control 3) Execution T4 C1 proteins T1 EEKKN linker ¥ Other Applications T3 X T1 z Works in a range of crops T2 (monocots and dicots) z Non-exclusive research C1 license wit
Slide 17: Proteinase Inhibitors can protect and extend market share of current Bt traits
Hexima’s Proteinase Inhibitors have the potential to protect and extend market share of current Bt traits ¥ Sustainable insect protection requires a “stack” of insecticidal genes ¥ Stacking of PIs with Bts will broaden the spectrum of insecticidal activity and delay emergence of resistant insects 3)
Slide 18: 2009 achievements
2009 achievements ¥ Excellent progress with DuPont program, including: z Anti-fungal protein identification z Corn transformation 3) Execution z Glasshouse construction ¥ Third year of fungal resistant cotton field trials ¥ Execution of MGEV Research License ¥ Climate Ready Grant for insect resistan
Slide 19: Timelines: Next Months and beyond
Next 12 Months and beyond 4) TImelines 19 Hexima Limited ©
Slide 20: We have the financial resources to reach key milestones
We have the financial resources to reach key milestones CASH BALANCE $27.1 million at 30 September 09 DEBT Zero 4) TImelines ANNUAL SPEND $7-8 million projected operating cashflow p.a. Hexima’s cash will now reach further CLIMATE READY $1.38m over three years GOV T GRANT R&D TAX CREDITS Worth over $
Slide 21: Summary
Summary Hexima is an ag-biotech company delivering innovative technologies that address un-met needs. 5) Conclusion Next generation “must have” traits can reshape the competitive landscape. DuPont delivers commercial path in two largest crops corn & soy, and leverage to other crops & technologies. P
Slide 22: Appendix: Assumptions and Risks
Appendix: Assumptions and Risks This presentation includes “forward-looking statements” and worked examples. The Company has tried to identify such statements and examples by the use of such words as “could”, “potential”, “estimated”, “approximately”, “assumptions”, “may” and other similar expressio
Slide 23: Appendix: Worked Example: Potential Disease Control Trait US Corn
Appendix: Assumptions and Risks Worked Example: Potential Disease Control Trait US Corn Corn Price $4 / bu Av Yield 380 bu / Ha Value /Ha $1,520 / Ha ******** Disease Loss 10 -12% % Disease Controlled by Trait 50% - 70% Trait Yield Gain ~5% - 8% Trait Yield Gain ~21 - 29 bu / Ha Sources: Biotech Con