Desert Control As · OSL:DSRT
Desert Control As — Q4 2022 Earnings Presentation
36 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 2
Slide 3: Loss of water and fertile land – A vicious cycle
Loss of water and fertile land – A vicious cycle 12M Hectares perish to desertification annually $125B $490B USD spent globally to address Annual cost of soil and land drought events degradation world-wide (2007-2017) (Source: UNCCD) >70% 52% Of water used for Of agricultural land agriculture degrad
Slide 4: Our focus: Soil improvement
Our focus: Soil improvement The Chief Problem Resulting in Sandy Soil Less than have large particles with low ‘surface charge’ – 15% water has ‘nothing to of water is retained in stick to’ the topsoil for plant use Water drains very fast Most of the water is 4 lost
Slide 5: Liquid Natural Clay (LNC)
Liquid Natural Clay (LNC) LNC-treated Sandy Soil More water - - - Sand available - Grain - - - - Less water is lost 5
Slide 6: Results
Results Before After Improved efficiency in the use of: ICBA, Dubai, UAE Up to 62% yield increase Water Energy Fertilizers Higher: The University of Arizona, Yuma, U.S. 21-53% yield increase Yield Quality Profit Silicon Oasis, Dubai, UAE 47% water savings 6
Slide 7: Reasons to believe
Reasons to believe 12+ years of R&D, 5+ years of field LNC Achieved Documented Results in 20+ Field validation and pilots Implementations & Data-Driven Pilots in UAE & USA: Independent validation by ICBA & University of Arizona Patents achieved in 48 countries Before After Partnerships (Achieved as
Slide 8: Market
Market Initial target markets: U.S, Southwest & UAE/Middle East – sandy soil areas affected by drought, desertification, and water scarcity. $490B $125B USD spent globally to However - The water and fertile land crisis is global. From governments to Annual cost of soil and land global agribusinesses
Slide 9: Business model
Business model Turnkey Soil Ecosystem Regeneration for Sandy Soil Scalability: Multiple Revenue Streams Fast Lead Times Turnkey Projects Digital Subscriptions $/hectare or $/tree • 2-3 months build time for additional Monthly (MRR), dashboard with – price dependent on area & LNC Production Capacity
Slide 10: Team
Team Ole Kristian Sivertsen Bernt Arne Breistein Marianne Vika Bøe Charlie Granfelt Viggo Halseth Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Commercial Officer Chief Innovation Officer (Group CEO) (Group COO) (Group CFO) (Group CCO) (Group CIO) International track-
Slide 11: Traction
Traction Strong market drivers and growing pipeline Scalable, Patented, and Proven to Boost Yields & Cut Water Costs More LNC delivered in LNC is Poised for Outstanding Growth the last 3 months than during the last 5 years 11
Slide 12: Agenda / Q4 2022
Agenda / Q4 2022 Q4 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 Highlights Financials Outlook Questions and answers 12
Slide 13: Q4 and Year-to-Date Highlights
Q4 and Year-to-Date Highlights ACCELERATING SALES AND STREAMLINING THE UAE MORE LNC PRODUCED IN COMMERCIAL ACTIVITIES OPERATION FOR OPTIMIZED THREE MONTHS THAN OVER IN THE UNITED STATES COST EFFICIENCY PREVIOUS YEARS COMBINED • Successful completion of the • Continued transitioning to • Achieved fir
Slide 14: Completion of the first revenue-generating project in the United States
Completion of the first revenue- generating project in the United States 14
Slide 15: Significant achievements in project execution
Significant achievements in project execution Deployed more LNC in the last three months than over previous years combined 15
Slide 16: Drivers in the U.S.
Drivers in the U.S. Desert Control offers a relevant solution to these issues and is positioned to qualify for government incentives that can support accelerated LNC implementation for farmers and landowners. 16
Slide 17: The University of Arizona validation program
The University of Arizona validation program POSITIVE RESULTS FROM FIELD TRIAL 21-53% • 5-year validation program with the University of Arizona higher yield values for LNC plots than control • First season: watermelon and bell peppers plots. • Second season: romaine lettuce and celery • Romaine let
Slide 18: Preparing for accelerating activities in the U.S.
Preparing for accelerating activities in the U.S. SALES FORCE YUMA OFFICE SCALE ON DEMAND First U.S. salesperson joined in Opening of U.S. operational base Two additional units shipped to December 2022 in Yuma, Arizona the United States 18
Slide 19: At the speed of trust – from pilots to full-scale projects
At the speed of trust – from pilots to full-scale projects Five Rivers Limoneira Company Lemonica Citrus Fortuna De Oro FROM COMMERCIAL PILOTS… … TO PRE-PROJECTS… … TO FULL SCALE DEPLOYMENT 19
Slide 20: Streamlining the UAE operation for optimized cost efficiency
Streamlining the UAE operation for optimized cost efficiency TRANSITIONING TO THE REDUCING OPERATIONAL FIRST COMMERCIAL MDC JV STRUCTURE COST FOR DESERT CONTROL PRE-PROJECT FULLY MIDDLE EAST DRIVEN BY MDC • Reducing duplication of roles • Restructuring reduces • MDC completed its first and responsib
Slide 21: Achieves advances in LNC delivery capabilities
Achieves advances in LNC delivery capabilities EFFICIENCY DIGITAL GLOBAL MOBILITY Gained increased speed and Strengthening sales success Utilizing the global mobility of efficiency in the production and with digital services assets application of LNC 21
Slide 22: Agenda / Q4 2022
Agenda / Q4 2022 Q4 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 Highlights Financials Outlook Questions and answers 22
Slide 23: Financial key figures
Financial key figures FOURTH QUARTER 2022 FULL YEAR 2022 [fourth quarter 2021 in brackets] [full year 2021 in brackets] • Revenue NOK 1M [NOK 0.8M] • Revenue NOK 2.2M [NOK 3.1M] 90% • EBITDA NOK -24.8M [NOK -10.6M] • EBITDA NOK -89.5M [NOK -31M] Equity ratio • Profit or loss for the year NOK -34.5M
Slide 24: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 24
Slide 25: Consolidated statement of financial position
Consolidated statement of financial position 25
Slide 26: Consolidated statement of financial position (continue)
Consolidated statement of financial position (continue) 26
Slide 27: Consolidated statement of cash flows
Consolidated statement of cash flows 27
Slide 28: Consolidated statement of cash flows (continue)
Consolidated statement of cash flows (continue) 28
Slide 29: The DSRT share
The DSRT share 40 30 20 10 0 ISSUE PRICE AS OF SHARE PRICE AS OF 14 APRIL 2021: NOK 11.69 31 DEC 2022: NOK 13.8 ORIGIN OF SHAREHOLDERS Norway Luxembourg UK Sweden Others 29
Slide 30: Agenda / Q4 2022
Agenda / Q4 2022 Q4 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 Highlights Financials Outlook Questions and answers 30
Slide 31: Q1-2023 Updates
Q1-2023 Updates Five Rivers Limoneira Company Lemonica Citrus Fortuna De Oro 31
Slide 32: Outlook: Develop project pipeline
Outlook DEVELOP PROJECT PIPELINE Start deployment of full-scale projects and continue growth in number of pre- projects Growth in number of pre-projects Conversion to Signing of new Limoneira full-scale pre-projects pre-project projects 2000 + 2000 trees Limoneira pilot 50 trees (July 2022) Q4 2022
Slide 33: Cautionary note
Cautionary note DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS This presentation contains to change without notice. Q3 2022 Report forward-looking information and Forward-looking statements are The information enclosed is statements relating to the not guaranteeing any future subject to the disclo
Slide 34: Agenda / Q4 2022
Agenda / Q4 2022 Q4 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 Highlights Financials Outlook Questions and answers 34
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Slide 36: Thank you for your attention!
Thank you for your attention!