Origin Agritech Limited · NASDAQ:SEED
Origin Agritech — Investor Presentation (June 2017)
17 slides from Origin Agritech's investor presentation, Jun 6, 2017
Slide 1: Origin Agritech Limited: Preferred seed technology partner "for and from China"
November 2016 Origin Agritech Limited Preferred seed technology partner "for and from China"
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: Origin Agritech Ltd. At A Glance
3 Origin Agritech Ltd. At A Glance 20 Yrs Corn Seed Breeding Experience in China • Broad corn germplasm collection • Modern breeding program • Strong product portfolio • Deep market knowledge 12 Yrs Agricultural Biotechnology Investment in China • Leading genetically modified trait portfolio for Chi
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's Business Opportunity in China
5 Origin’s Business Opportunity in China • Government recognizes need for increased productivity to meet increased demand • 13th 5 - Year Plan supports advancement of biotechnology • Farm productivity enhancement/environmental sustainability • GM corn projected to begin by 2020: • Chinese government
Slide 6: GMO Support in China
6 “What we are lacking now is good quality and ‘green’ farm products,” Han said. “The ministry will also tackle agriculture pollution by reducing use of fertilizer and pesticides and asking large - scale livestock farms to treat animal waste within five years.” HAN Changfu Agriculture Minister 2017
Slide 7: Why Invest in Origin?
7 Why Invest in Origin? Unique Competitive Position: Preferred partner “ for and from China ” • Major Chinese Investment: Government to modernize agriculture (400B next 3 years) • Chinese Consolidation: Technology, M&A, farm size, trade • Chinese Convergence: Reduced subsidies, mechanization, urbani
Slide 8: Collaborations "For and From China"
8 Collaborations “ For and From China ” • Business structure/flexible licensing model: B2B high margin, low transaction cost • MNCs, private, academic and government entities • Strategic investment opportunities • Global regulatory approval support required First - mover Advantage to License, Export
Slide 9: Collaboration: Progress Update
9 Collaboration: Progress Update First - mover Advantage to License, Export Corn Seed Traits From China Origin – Arcadia • First ever export of a critical corn biotechnology • Seed harvest: March / April 2017 • Summer 2017 growing season - Iowa • New level of agricultural exchange between the USA an
Slide 10: Biotech Trait Pipeline
10 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/ENVIRONMENT Phytase (PT) WEED
Slide 11: GH5112E-117C Bt corn insect control efficacy
GH5112E - 117C Bt corn CK Insect control efficacy re - confirmed in winter 2016 in Hainan (corn stem borer infestation)
Slide 12: Corn Product Pipeline
12 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% 2 new
Slide 13: Key Business/Financial Changes
13 Key Business/Financial Changes Business Direction • Business realigned (Seed company Technology provider) • B2C business being sold for RMB 400 million (projected to close in 2H17) • Debt pay down • R&D investment • B2B business model for technology (implementation 2017 – 18) • Optimizing cost st
Slide 14: Business Traction: Unit Economic Projections Upon Commercialization
14 Business Traction: Unit Economic Projections Upon Commercialization China Market : • 1% Market Share in corn seed market: $2.5 Million (1) • 1% Market Share in corn trait market: $10 Million (2) • Annual expenses in China: $7 Million (1) Assumes 10% royalty for $2.5 B market value (2) Assumes val
Slide 15: Experienced Senior Leadership Team
15 Experienced Senior Leadership Team 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, Chie
Slide 16: Why Invest in Origin?
16 Why Invest in Origin? Unique Competitive Position: Preferred partner “ for and from China ” • Major Chinese Investment: Government to modernize agriculture (400B next 3 years) • Chinese Consolidation: Technology, M&A, farm size, trade • Chinese Convergence: Reduced subsidies, mechanization, urban
Slide 17: Origin Agritech Limited: Preferred seed technology partner "for and from China"
November 2016 Origin Agritech Limited Preferred seed technology partner "for and from China"