Burcon Nutrascience Corporation · TSX:BU
Burcon Nutrascience — Canaccord Growth Conference (August 2020)
24 slides from Burcon Nutrascience's conference presentation, Aug 7, 2020
Slide 1: Burcon NutraScience
Burcon NutraScience August 7, 2020
Slide 2: Safe Harbour Statement
Safe Harbour Statement GENERAL Burcon NutraScience Corporation (“Burcon” or, the “Company”) is making this presentation available to selected persons on the terms and conditions set forth below. Any unauthorized use of the presentation is strictly prohibited. Additional information with respect to B
Slide 3: At a Glance
At a Glance • Twenty years developing novel plant-based protein ingredients • $92M invested to-date 1998 $92M Founded Invested1 • Protein technologies in: • Pea / canola / hemp / flax • U.S. issued patents 70 • Global issued patents 287 280+ Patents • Global patent applications 257 • Collaboration w
Slide 4: Plant-based Surging
Plant-based Surging Turning Mainstream * No association with Burcon exists or is intended to be implied
Slide 5: Is there more to plant-based eating than meat alternatives?
Is there more to plant-based eating than meat alternatives?
Slide 6: Plant-based Surging
Plant-based Surging * No association with Burcon exists or is intended to be implied
Slide 7: The Promise of Plant-based
The Promise of Plant-based Why plant-based protein ingredients? Supply: Consistency of product versus animal protein sources Lower price versus animal proteins Long-term price stability Environmentally sustainable (ESG) Consumer preference: Clean label Sustainability/Climate Change Vegetarianism/Veg
Slide 8: Protein Ingredients Drivers
Protein Ingredients Drivers Nutritional value: Functional value: Critical macro-nutrient in our diet Vital function in almost every food & Health conscious consumers beverage: Emulsifier Whipping / foaming agent Binding agent Gelling agent Film-forming agent Flavor value: Taste is king Consumers dem
Slide 9: Plant Protein Challenges
Plant Protein Challenges Food companies would like to use plant-based protein ingredients in their products… However, there are challenges with plant proteins. Undesirable flavors Gritty texture / poor mouthfeel Sub-par nutritional value Organoleptic problems Existing plant proteins have challenges
Slide 10: The Answer…
The Answer… What differentiates Burcon’s proteins? Flavor – exceptionally clean and neutral flavor equals great taste in applications Solubility – near complete solubility without undesirable gritty mouthfeel Nutrition – protein blends with nutritional quality equal or greater to dairy or beef Purit
Slide 11: Differentiated Plant Proteins
Differentiated Plant Proteins
Slide 12: Nestle Collaboration
Nestle Collaboration Nestle CEO, Ulf Mark Schneider: Aug 27, 2019 “Plant-based is a major, major theme for us, and it’s not only about meat analogues, it’s also about dairy. So think about ice cream and coffee creamers.” Source: Jim Cramer, Mad Money CNBC Jan 21, 2020 “Overall, I think plant-based w
Slide 13: Merit Functional Foods JV
Merit Functional Foods JV Barry Tomiski, Co-CEO Over 30 years of experience in the food Background industry, most recently leading Manitoba Harvest as COO. Previous sales and operational Bracken, Tomiski and Crew are veterans leadership roles at Cargill and Maple Leaf Foods. of the agri-foods indust
Slide 14: Merit Functional Foods
Merit Functional Foods • Building 94,000 ft2 pea + canola • Secured $95 million debt financing protein production plant from EDC/FCC + CIBC + AAFC • Phase-1 processing capacity 20,000 • Burcon owns 40% equity position tonnes (already expanded) • Merit Foods 20-year exclusive • World’s only commercia
Slide 15: Merit Functional Foods
Merit Functional Foods Building Underway! Q4 2020 Startup 9/19 11/19 01/20 6/20 Q4/20 Commence Building Pilings Grade Beams/Pile Equipment Target Construction complete Caps Install Start-Up
Slide 16: Merit Functional Foods
Merit Functional Foods Tuesday August 4th, 2020
Slide 17: Plant Protein Pure Play
Plant Protein Pure Play Market Growth • Plant-based protein market valued at USD $18.5 billion in 2019 • Projected to grow at CAGR of 14% to $40.6 billion by 2025 Source: Markets and Markets 2019 report Sustainable Investing with ESG Factors • Plant-based technologies for a sustainable future Creati
Slide 18: Plant-based Surging
Plant-based Surging US plant-based food outpaced total retail food sales during pandemic • Plant-based food sales up 90% during mid-March vs 2019 • Following peak panic buying in March, plant-based foods sales grew at 27% • Plant-based meat sales spiked 148% during mid-March vs 2019 • Following peak
Slide 19: Burcon’s Technical Center
Burcon’s Technical Center 13 Scientists & Engineers with 180+ years combined experience with Burcon
Slide 20: Intellectual Property Portfolio
Intellectual Property Portfolio Issued Patents Patent Class Soy Canola Flax Pulses Hemp Total Process 98 66 24 22 2 212 Composition 15 37 1 53 Application 12 10 22 Patent Portfolio July 2020 Total 125 113 24 21 2 287 U.S. Issued 70 Total Issued 287 Pending Patents Total Pending 257 Patent Class Soy
Slide 21: R&D Pipeline
R&D Pipeline Canola Technology Enhancement • Phase 1B expansion • Game changer opportunity in alternative meat industry • Egg replacement applications • Protein blends show promise for medical nutrition applications Flax / Mung Bean / Faba Bean / Other Novel Plant Proteins • Develop technologies fro
Slide 22: Burcon Looking Forward
Burcon Looking Forward • In advanced stage of negotiation/discussions for partnering and development agreements with some major players • Winnipeg Technical Centre (“WTC”) offers bandwidth for R&D and small-scale production of additional alternative plant proteins and/or additional phyto- chemical p
Slide 23: Strategy
Strategy $ Royalty on protein sales Joint Development agreements for product development Merit Functional Foods operating entity producer: pea and canola proteins
Slide 24: Thank-You
Thank-You »y BurceWn A New World in Protein*®
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