Slide 1: Investor Presentation April 12, 2021
Investor Presentation April 12, 2021
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: Plant-based Surging Turning Mainstream
Plant-based Surging Turning Mainstream * No association with Burcon or is intended to be implied
Slide 4: There is more to plant-based eating than just meat alternatives
And… there is more to plant-based eating than just meat alternatives
Slide 5: Plant-based Surging
Plant-based Surging * No association with Burcon or is intended to be implied
Slide 6: Is it all just hype or is the plant-based eating revolution real?
Is it all just hype or is the plant-based eating revolution real?
Slide 7: Plant-based Food Real Growth
Plant-based Food Real Growth 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 • Foll
Slide 8: So plant-based eating is experiencing exceptional growth…
So plant-based eating is experiencing exceptional growth…
Slide 9: What is driving the consumers' move towards plant-based eating?
What is driving the consumers’ move towards plant-based eating?
Slide 10: Consumer Drivers
Consumer Drivers Healthy eating – health & wellness Concern for the environment - sustainability Issues with the current supply chain: Animal welfare concerns Health issues – food contamination Health issues – worker safety
Slide 11: Where do Burcon's proteins fit in?
Where do Burcon’s proteins fit in?
Slide 12: CPG companies want innovative plant-based ingredients
A: CPG companies’ want innovative plant- based ingredients to satisfy consumers…
Slide 13: Differentiated Proteins
Differentiated Proteins Nutrition Function Balanced amino acid profile Valuable functionality: Exceptional purity levels Emulsifier Whipping / foaming agent Binding agent Gelling agent Film-forming agent Taste Uniquely clean flavor profile Consumers demand great tasting products
Slide 14: Differentiated Plant Proteins
Differentiated Plant Proteins Nestle CTO, Stefan Palzer: "Developing nutritious and great- tasting plant-based meat and dairy alternatives requires access to tasty, nutritious and sustainable raw materials as well as proprietary manufacturing technology. The partnership with Burcon and Merit will gi
Slide 15: Sustainability
Sustainability Burcon is putting people and planet first by developing plant- based food technologies that offer a truly sustainable way to feed the world Burcon’s protein extraction technology uses no harsh chemicals, emits no noxious odors and consumes significantly less energy than animal protein
Slide 16: Sustainability
Sustainability Our technologies are environmentally friendly and clean, using renewable plant-based sources as input material and extracting nutritionally valuable plant-based proteins for human consumption Proteins that are good for your health and good for the planet. Compared to animal-based prot
Slide 17: Good for the Planet
Good for the Planet Greenhouse Gas Emissions Per 100 Grams of Protein Beef (beef herd) 49.89 Lamb & Mutton 19.85 Prawns (farmed) 18.19 Beef (dairy herd) 16.87 Cheese 10.82 Milk 9.50 Pig Meat 7.61 Rice 6.27 Fish (farmed) 5.98 Poultry Meat Eggs 5.70 4.21 100x Grains 2.70 Tofu (soybeans) 1.98 Oatmeal 1
Slide 18: Differentiated Plant Proteins: To summarize
Differentiated Plant Proteins To summarize… Plant-based eating is experiencing huge growth around the world, and Burcon’s differentiated plant protein ingredients • meet the needs of CPG companies and consumers • highly desirable functional and nutritional attributes • suitable for numerous products
Slide 19: Burcon – transformational developments
Burcon – transformational developments
Slide 20: Transformational Developments
Transformational Developments Strengthened Burcon’s balance sheet (past 20 months): $15 million rights offering $9.5 million convertible debenture financing $172.7M $11.5 million bought deal financing New Capital Secured project financing for Burcon’s JV - Merit Foods: $85.0 million debt financing (
Slide 21: Transformational Developments
Transformational Developments Increased total issued patents during past 12 months by 22 Global issued patents now 303 300+ Patents U.S. issued patents now 71 Executed collaboration agreement with Nestle – the global leader in plant-based foods Received confirmation of additional future financial su
Slide 22: Producing, under license, Burcon's proteins
In 2019, Burcon established Merit Functional Foods Corporation as a JV • Built a 94,000 square foot production facility in Manitoba, Canada • Producing, under license, Burcon’s novel pea and canola protein ingredients • Only commercial facility in the world with the capability to produce food- grade
Slide 23: Merit Functional Foods
Merit Functional Foods
Slide 24: Functional Foods
Functional Foods For better plant protein We believe that consumers and formulators alike deserve high quality plant protein. So, we're uprooting the food and beverage industry's perception of plant-based proteins by producing ingredients that exceed standards for purity, solubility, taste, and more
Slide 25: Merit Functional Foods
Merit Functional Foods > *=———— neutral color unmatched purity excellent solubility exceptional taste Get a clean start to your product innovation. Merit Functional Foods is committed to exceeding expectations for plant-based protein, providing the market with disruptive protein ingredient solutions
Slide 26: Merit Functional Foods
Merit Functional Foods • Completed Phase 1 construction of a 94,000 ft2 state- of-the-art pea + canola protein production plant • Achieved first commercial production runs of Peazazz® and Peazac® pea proteins (February 2021), and Puratein® line of canola proteins (April 2021) • World’s first and onl
Slide 27: Key Financial Terms
Key Financial Terms • Burcon is Merit’s largest shareholder with a 33.3% equity position • Existing 20-year exclusive royalty-bearing license from Burcon on Merit’s sales • Burcon scientific and technical support provided through existing Services Agreement
Slide 28: Bunge Investment
Bunge Investment • $30 million equity investment into Merit for a 25% stake • Investment to expedite Merit’s construction of its state-of-the-art plant protein facility • Bunge (NYSE: BG) is a world leading agribusiness and food company • Bunge able to supply Merit with key inputs • Merit will benef
Slide 29: Winnipeg Technical Centre
Winnipeg Technical Centre 18 Scientists & Engineers with 200+ years combined experience with Burcon 10,000 s.f. facility with large pilot production capability
Slide 30: Burcon Go Forward: Issued Patents
Burcon Go Forward Significant intellectual property portfolio and equally important base of knowledge and expertise Issued Patents Patent Class Soy Canola Flax Pulses Hemp Total Patent Portfolio February 2021 Process 105 68 24 26 4 227 U.S. Issued 71 Composition 15 37 1 53 Total Issued 303 Total Pen
Slide 31: Burcon Go Forward: Pending Patents
Burcon Go Forward Existing base of IP over hemp protein, flax protein and sunflower protein. Numerous other opportunities being investigated/pursued. Pending Patents Patent Class Soy Canola Flax Pulses Hemp Other Total Process 91 13 1 52 9 166 Composition 17 15 8 40 Application 3 19 22 Total 111 13
Slide 32: Burcon Go Forward
Burcon Go Forward Canola Technology Enhancement • Phase 1B expansion • Game changer opportunities 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 technolog
Slide 33: Take-aways
Take-aways Plant-based eating is experiencing huge growth around the world. A true food revolution Burcon’s differentiated plant proteins are on-point, representing precisely what consumers and the food industry want at this time Burcon is now enjoying its strongest financial position in over a deca
Slide 34: Thank you
Thank you