Slide 1: November 2016 Investor Presentation
November 2016 Investor Presentation November 28, 2016 – December 1, 2016 Origin Agritech Limited
Slide 2: Safe Harbor
2 Safe Harbor Certain statements contained in this presentation are "forward - looking statements.” All forward - looking statements included in this presentations are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other f
Slide 3: Company & Strategy Overview
Company & Strategy Overview Bill Niebur President and CEO 3
Slide 4: Vision
4 Vision To become a Global Agricultural Technology Provider delivering biotech, seeds and systems to the food and feed markets
Slide 5: Origin Agritech Ltd. At A Glance
5 Origin Agritech Ltd. At A Glance • Leading Asian technology and crop seed provider • Operating research labs, breeding stations, manufactu ring centers and logistics in China • Developer of superior corn hybrids • Positioning the company to license and market biotech traits and seed globally Agric
Slide 6: Key Messages
6 Key Messages • Transitioning from a traditional Chinese seed company to a global agricultural technology provider • New executive team in place that will leverage experience and relationships to execute global strategy • Combined 100+ years global agricultural experience with multinational corpora
Slide 7: A Strong History Of Business Success
7 A Strong History Of Business Success Building On Our Experience And Expertise Founded in Beijing Built R&D center in Tongzhou, Beijing Started biotech research Listed on NASDAQ (SEED); established Origin Life Science Research Center Received Bio - safety Certificate for phytase transgenic corn Ope
Slide 8: Strong Senior Management In Place
8 Strong Senior Management In Place Combined 100+ Years Experience Dr. Bill Niebur, President and Chief Executive Officer • 30+ years experience (5 years in China), primarily with DuPont Pioneer in corn genetics, R&D, global R&D oversight and international business operations Shashank Aurora, Chief
Slide 9: Three-pronged Investment Strategy Enabling Growth
9 Three - pronged Investment Strategy Enabling Growth China Biotech Traits & Seed Products Pillar 1 • Launch and continue to develop unique biotech traits and crop seeds aimed at the large and growing demand in China • Become preferred partner for biotech trait out - licensing N. America Non - GM /
Slide 10: China Biotech Traits & Seed Products Strategic Goals
10 China Biotech Traits & Seed Products 1 Strategic Goals • Be the global preferred partner for innovative seed biotechnology developed in China • Maintain excellence in developing superior biotech traits, germplasm and seed products in China Pillar 1 Pillar 2 Pillar 3
Slide 11: China Market Opportunity
11 China Market Opportunity • Government recognizes need for increased agricultural productivity given growing demand • 13th 5 Year Plan supports advancement of biotechnology • Chinese government currently prohibits GM corn seed; GM corn projected to begin 2020 • Multinational seed companies (MNC) f
Slide 12: China Differentiators/Strengths
12 China Differentiators/Strengths • Unique biotech traits and deep corn germplasm library designed to increase China farm productivity and out - license globally • Investment in breeding technologies to create state - of - the - art facilities and capabilities • Integrated seed company status and 2
Slide 13: China Market Summary
13 China Market Summary • Well positioned for projected biotechnology trait commercialization • Alignment with government projection of GM adoption in 2020 • First mover advantage for trait out - licensing • Accredited Green Pass status enabling product registration • Expanding pipeline of biotech t
Slide 14: Global Biotech Traits Strategic Goal
14 2 Strategic Goal • Leverage world - class biotech traits developed in China Global Biotech Traits Pillar 1 Pillar 2 Pillar 3
Slide 15: Global Trait Market Opportunity
15 Global Trait Market Opportunity Pillar 1 Pillar 2 Pillar 3 Trait Development Focus • Output traits • End - use Phytase • Input traits • Herbicide Tolerance • Insect Resistance • Native traits • Germplasm • Genome Editing Leveraging Position And Technology To Address World Markets • Trait market a
Slide 16: Global Differentiators/Strengths
16 Global Differentiators/Strengths • Business structure and flexible licensing model geared to attract partners • Novel biotech trait development in collaboration with Chinese academic institutions • Origin Agritech Ltd. biotech traits are being deregulated on a multi - track system globally • Firs
Slide 17: Global Market Summary
17 Global Market Summary • Established Origin Agritech Ltd. N. America operations and international relations center in Iowa. • Expand Origin Agritech Ltd . in N. America via biotech traits sourced from China • Global deregulation of biotech traits developed in China • Addressing a large biotech tra
Slide 18: Origin Agritech Ltd. Biotech Trait Pipeline
18 Origin Agritech Ltd. Biotech Trait Pipeline Traits PHASE1 PHASE2 PHASE3 PHASE4 PHASE5 Corn Hybrid + GM Commercialization Laboratory Research Inter - mediate Test Env. Release Test Production Test Safety Certificate Variety Production Test Variety Safety Certificate Variety Approval FEED/ENVIRONME
Slide 19: Global Deregulation Of Biotech Traits
19 Global Deregulation Of Origin Agritech Ltd. Biotech Traits Origin Agritech Ltd. N. America Operations Center ensures seamless collaborations with partners and governments Pillar 1 Pillar 2 Pillar 3 N. America Example Year 1 Seeds export from China First field trial FDA and USDA Submission FDA App
Slide 20: Corn Product Pipeline
20 Corn Product Pipeline 2017 Progress 2015 Product Portfolio 2017 New Green P ass 1 Entries (NNE/Summer/SW) 18 Sales Volume 19M kg 2017 Advanced Green P ass Entries 4 # of Leading Products (80% sales) 8 2017 New Product Launches 2 5 % Sales New Products (< 5 years) ~20% Est. Market Share ~3% 1 Gree
Slide 21: N. America Non-GM / Organic Strategic Goals
21 3 Strategic Goals • Be a preferred provider of superior non - GM / Organic products (seed), services and technologies • Launch innovative e - commerce platform ( Origin Harvest Alliance ) • Effectively connect end - users back through the value chain to producers of superior non - GM / Organic gr
Slide 22: Timely Market Opportunity Offers An Entry Into N. America
22 4.9 8.0 1.8 2.0 2.5 4.1 0.6 1.9 2017 2027 Timely Market Opportunity Offers An Entry Into N. America N. America Non - GM / Organics Market Opportunity 1 Pillar 1 Pillar 2 Pillar 3 • Origin Harvest Alliance is addressing a $1.2 billion market opportunity • Increased consumer demand – rapidly expand
Slide 23: E-Commerce Portal Addresses Current Gaps
23 E - Commerce Portal Addresses Current Gaps Producer Transportation Storage Originators End - User Producers will make decisions with confidence knowing market demand End - users will be assured more consistent supply of non - GM / Organic inputs Enabling Efficiencies To Both Producers and End - U
Slide 24: N. America Differentiators/Strengths
24 N. America Differentiators/Strengths Pillar 1 Pillar 2 Pillar 3 • Differentiated offering to the non - GM / Organics market • Reliable supply • High purity standard guarantee • Access to elite genetics and proven - product performance • Acceptable processing characteristics • Lower input costs •
Slide 25: Timeline Of Products, Services And Technologies
25 Timeline Of Products, Services And Technologies N. America Non - GM / Organics Pillar 1 Pillar 2 Pillar 3 Secure product access through major industry leader agreements Expand producer contracts for years 2 - 5 Secure producer contracts for year 1 Launch Phase II, III E - commerce: end - user, st
Slide 26: N. America Market Summary
26 • Non - GM / Organics market is growing rapidly, driven by consumer demand • Focused on growing key strategic relationships with partners along the “food and feed chain” beginning with end - users • Build out e - commerce platform to lower costs, reduce inefficiencies, disrupt the market and alle
Slide 27: Financial Overview
Financial Overview Shashank Aurora CFO 27
Slide 28: Key Financial Messages
28 Key Financial Messages • Selling low margin B - to - C undifferentiated business (closes 1H17) • Moving to a highly differentiated B - to - B business model • Focusing on lean N. America cost structure as we enter new markets • Optimizing cost structure to fund our new strategy • Sufficient funds
Slide 29: Balance Sheet
29 Balance Sheet Leveraging Position And Technology To Address World Markets June 30, 2016 ($M) Cash and equivalents $7.0 Other current assets 82.3 Non - current assets 61.0 Total assets $150.3 Current liabilities (includes ST debt of $35.6 ) $112.6 Long - term debt 3.1 Other long - term liabilities
Slide 30: Income Statement
30 Income Statement Leveraging Position And Technology To Address World Markets 9 - months June 30, 2016 ($M except per share) Revenue 1 $14.2 Cost of revenue (12.4) Operating expense (12.2) Non - operating expense (1.7) Net income/(loss) per share ($0.50) Share count 22,813,541 1 Historical income
Slide 31: Cash Flow Projection Through 1H17
31 Cash Flow Projection Through 1H17 ($M) Beginning cash position $7.0 Proceeds from sale of commercial seed business 60.0 Reduction in short - term debt (24.0) Cash burn from continuing operations (6.0) Cash burn from discontinued operations (6.0) Ending cash position $31.0 Moving To Net Positive C
Slide 32: Investment Summary
32 Investment Summary • New executive team in place that will leverage experience and relationships to execute global strategy • Combined 100+ years global agricultural experience with large public corporations • Combined 40+ years of direct business experience in China • Focused on three strategic
Slide 33: Appendix
33 Appendix
Slide 34: Origin Agritech Ltd. Business Model
34 Origin Agritech Ltd. Business Model Proof of concept Early Development Advanced Development Regulatory Approval Commercial Biotech Products Trait gene discovery Origin Core Capabilities • Beijing • Hainan Collaborate • MNC • CHINA Out - licensing • Mnc • Regional • National In - licens ing • Acad
Slide 35: Glyphosate tolerant corn and insect resistant corn
35 Glyphosate tolerant corn Left – GT corn Center – non - GT corn Right – GT corn, no spray Insect resistant corn (IR) Left side – non - GMO corn Right side – IR corn