Kalera Public Limited Company · OTC:KALRQ
Kalera Public — Kalera — SPAC Merger (February 2022)
50 slides from Kalera Public's SPAC merger presentation, February 2022
Slide 1: Investor Presentation February 2022
INVESTOR PRESENTATION F E B R U AR Y 2 0 2 2
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION This Presentation and its appendices (hereinafter referred to as the "Presentation") has been prepared by Kalera AS ("Kalera" or the "Company", and together with its subsidiaries the "Group"). This Presentation has been prepared exclusively for information purposes a
Slide 3: Introduction
01 INTRODUCTION © C O P Y R I G H T 2 02 2 K A L E R A . A LL R I G H T S R E S E R V E D | P R OJ E C T OR L AN D O I N V E S TOR D E C K 3
Slide 4: Today's Presenters
Today’s Presenters CURTIS MCWILLIAMS FERNANDO CORNEJO DR. HENNER SCHWARZ AUSTIN MARTIN DR. JADE STINSON Interim Chief Executive Officer Chief Financial Officer Chief Commercial Officer Chief Operating Officer President & Co-Founder of Vindara BRENT DE JONG BRIAN ZATARAIN Chairman & CEO Director © C
Slide 5: Agrico Brings Depth of Leadership and Experience
Agrico Brings Depth of Leadership and Experience Leadership Team Agrico Overview BRENT DE JONG, Chairman & CEO Agrico Acquisition Corp. (Nasdaq: RICO) is a $147mm publicly traded Managing Partner at De Jong Capital; Chairman at SPAC Emergent Technology 100+ years of public and private company
Slide 6: Platform Builders with a Track Record of Value Creation
Platform Builders with a Track Record of Value Creation Agrico Highlights 1 Platform builders and cohesive team with a diverse and successful track-record of value creation 2 Significant tailwinds with a robust opportunity set across AgTech verticals 3 Committed to ESG performance with a particular
Slide 7: Leading Vertical Farming Platform
Leading Vertical Farming Platform Kalera Investment Highlights #1 Portfolio of great-tasting, healthy and sustainable products supported by a leading technology stack #2 Scalable business model accessing local markets with a global footprint #3 Large and actionable pipeline of new facilities includi
Slide 8: Transaction Overview
Transaction Overview Overview $147mm cash in trust from Agrico Acquisition Corp. (Nasdaq: RICO) $100mm minimum cash condition to closing Use of proceeds: growth capital and general corporate purposes Valuation $375mm pro forma equity value Exchange ratio of 0.091 for existing Kalera shareh
Slide 9: Leading Vertical Farming Platform
02 LEADING VERTICAL FARMING PLATFORM © C O P Y R I G H T 2 02 2 K A L E R A . A LL R I G H T S R E S E R V E D | P R OJ E C T OR L AN D O I N V E S TOR D E C K 9
Slide 10: Portfolio of Fresh, Great Tasting, Healthy and Sustainable Products
#1 Portfolio of Fresh, Great Tasting, Healthy and Sustainable Products Sold Under the Kalera Brand Living Lettuce and Greens Whole Head Harvest-on-Demand Cut Leaf Baby Leaf & Microgreens Butterhead/Bibb Multi leaf Lettuce Oak leaf Romaine Spinach Cilantro Romaine Frisee Mustard
Slide 11: Kalera's Romaine Is Nutrient Dense
#1 Kalera’s Romaine Is Nutrient Dense Preliminary tests indicate superior nutritional content in Nutrient Kalera romaine vs. conventional Dense romaine(1) Conventional Kalera % NUTRIENT Freshness is a key driver in Romaine Romaine INCREASE Non-GMO romaine nutritional content Vitamin A/Beta Carot
Slide 12: Leading Technology
#1 Leading Technology Intellectual property from Seeds to Software Irrigation and Competency Seeds Substrates Intralogistics HVAC Light Processes Software Nutrient Mgmt Whole Head Lettuces Plugs Baby Leaf Product Lettuces Proprietary Automated Intra- Full Climate Service-Oriented Lighting Knowledge
Slide 13: Vindara Drives Transformational Seed Innovation
#1 Vindara Drives Transformational Seed Innovation Big Data and AI-Driven Seed Development Control Panel for Genetic Varieties Database tracks physical measurements (e.g. Color, texture, flavor, and nutrient profile are diameter, nutritional density, etc.) and subjective, and influenced by a ran
Slide 14: Technological Differentiation Protected through Growing Intellectual Property
#1 Technological Differentiation Protected through Growing Intellectual Property Proprietary Seed Science AI-driven accelerated seed development platform Invention Disclosures Plant Science optimized seeds with amplified yields, nutrition and flavor PENDING Proprietary Plant Science Optimized nutrie
Slide 15: Rapidly Scaling Business Model
#2 Rapidly Scaling Business Model Kalera builds, owns and operates capital-efficient vertical farming facilities 4 6 Large-Scale Operational Large-Scale Facilities Facilities under Construction Global Operations US Europe Middle East Asia Delivering a portfolio of great-tasting, healthy and sustaina
Slide 16: Global Portfolio of Facilities and Growing
#2 Global Portfolio of 10 Facilities and Growing United States EMEA and Asia #1 Orlando, Florida #2 Atlanta, Georgia #3 Houston, Texas #4 Kuwait Expected Annual Output: ~0.8mm lbs. ~2.6mm lbs. ~3.3mm lbs. ~280K lbs. Operations Starting Date: February 2020 April 2021 September 2021 March 2020 In Oper
Slide 17: Production Capacity Expected to Reach ~17mm lbs. in 2022
#2 Production Capacity Expected to Reach ~17mm lbs. in 2022 (1) Strategically Positioned Facilities to Address Attractive Global Markets St. Paul Seattle Columbus Munich(3) Denver Kuwait 17mm lbs. equates to ~7,800 Atlanta mt, or ~0.03% of 2017 world Honolulu Houston lettuce production volume of Orl
Slide 18: Facilities Operating Reliably
#2 Facilities Operating Reliably Large Scale Facilities on Track to Meet Production Capacity (1) Targets and Throughput Yields (2) Houston Facility Commissioning Process Acceleration Levers 100% 90% Expected ramp-up time reduced to 6 92% 85% months for all new facilities opened 2023 90% 85% 83% 86
Slide 19: Strong Growth Trajectory
#3 Strong Growth Trajectory Target # of Revenue Generating Large-Scale Facilities by End of Year 47 38 28 26 20 16 11 2 2 Intl. new 4 2 9 6 7 Intl. live or announced 2 3 4 2 US new 10 10 10 10 1 7 US live or announced 3 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 2026 2026 # Months Sales Ramp-
Slide 20: Focus on Large Scale Facilities
#3 Focus on Large Scale Facilities Primary Growth Vehicle Large-Scale Facility Smaller Large-Scale Facility CapEx: $13mm - $26mm CapEx: < $13mm Size: ~75k – 136k sqft. Size: < 75k sqft. Up to 3.5mm lbs per year(1) Up to 1.5mm lbs per year All segments of leafy greens All segments of leafy greens Hig
Slide 21: Modular Design Enables Rapid Deployment
#3 Modular Design Enables Rapid Deployment Modular Design, Buildout and Installation Site Transformation Site selection – strategically located near urban populations Buildings - existing warehouses that are retrofitted and leased or purchased, or are built-to-suit Rapid Established supply cha
Slide 22: Compelling Economic Profile
#4 Compelling Economic Profile Facility Unit Economics ($/lbs.) End of 2023 Houston(1) End of 2025(1) Farm of Future ($USD) ($USD) Sell Price/lb. (2) $5.51 Sell Price/lb.(2) $6.68 Cost(3) $3.58 Cost(3) $3.21 Margin $1.93 Margin $3.47 Packaging $0.74 Packaging $1.39 EBITDA $1.18 EBITDA $2.07 EBITDA M
Slide 23: A Leader in Capital Efficiency
#4 A Leader in Capital Efficiency CapEx per Lb of Annual Output ($) Kalera is one of the leaders in CapEx per Lb of Annual Output(1)(2) 1 6 .8 ROI-driven automation adoption – most labor intensive operations automated first, after careful analysis of benefits vs. costs Lower Careful standardiz
Slide 24: Performance Expected to Improve Over Time
#4 Performance Expected to Improve Over Time 1 Number of Farms Number of farms increase with build out of the US, Middle East, Southeast Asia and new markets Expected to Increase 2 Distribution grows with new customers and more stores per customer Sales Per Farm Sales per store rise with marke
Slide 25: World Class Leadership Team
#5 World Class Leadership Team Curtis McWilliams Austin Martin Fernando Cornejo Dr. Henner Schwarz Dr. Cristian Toma, PhD Interim Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Commercial Officer Chief Science Officer and Co-Founder Keri Gasiorowski Dr. Heiko Hosse Dr.
Slide 26: Experienced Directors for Combined Company Board
#5 Experienced Directors for Combined Company Board Kim Lopdrup Maria Sastre Umur Hursever Sonny Perdue Board Director (Chairman Elect)(1) Board Director Board Director Board Director Retired CEO of Red Lobster On boards of General Mills, O’Reilly Auto Parts, Partner and member of investment c
Slide 27: Kalera's ESG Commitment
#5 Kalera’s ESG Commitment WATER STEWARDSHIP CO 2 AND LAND USE NUTRITION & HEALTH 21 st CENTURY FARMER Protecting resources by lowering Reducing CO2 footprint from supply Enhancing health benefits from ultra- Developing 21st century farming consumption and avoiding discharges chains & operations, an
Slide 28: Financial Highlights
03 FINANCIAL HIGHLIGHTS © C O P Y R I G H T 2 02 2 K A L E R A . A LL R I G H T S R E S E R V E D | P R OJ E C T OR L AN D O I N V E S TOR D E C K 28
Slide 29: Key Projection Drivers
Key Projection Drivers 1 Kalera to open US and International farms per schedule 2 Number of months for sales ramp up will vary based on geography and year of deployment 3 Product portfolio mix gradually changes from current full head / baby leaf to all varieties 4 Higher yields and decreased cycle t
Slide 30: 5-Year Financial Projections
5-Year Financial Projections Revenue Project EBITDA (2) Farms opened in 2021 / 2022 are $148 $142 expected to generate positive EBITDA in 2023 $110 $83 Farms opened in 2021 / 2022 are $73 expected to contribute ~99% of $536 $31 $523 $23 revenues in 2023 $0.4 ($14) $421 ($31) $384 2022E 2023E 2024E 2
Slide 31: Valuation Benchmarking
Valuation Benchmarking Ag Tech Healthy Consumer 5.9x 5.3x 1.8x 7.0x 1.7x 1.0x 1.5x 1.5x EV / 0.6x 0.8x 0.5x 0.9x 0.9x 0.4x Revenue 2024 2025 2026 2024 2025 2024 2025 2024 2025 2023 2023 2023 Revenue Growth (%) 167.9% 64.8 % 36.0 % 102.3% 46.9% 263.8% 88.4% 19.1% 62.0% 24.9% 30.8% 23.1% 0.24x 0.17x E
Slide 32: Transaction Sources & Uses
Transaction Sources & Uses Sources Uses All values in $mm All values in $mm SPAC Cash in Trust $146.6 (1) Cash to Balance Sheet $135.4 Kalera Equity Rollover 195.0 (2) Kalera Equity Rollover 195.0 (2) Estimated Fees & Expenses 11.2 Total Sources $341.7 Total Uses $341.7 Pro Forma Capitalization Pro
Slide 33: Q&A
CURTIS MCWILLIAMS AUSTIN MARTIN DR. HENNER SCHWARZ Interim Chief Executive Officer Chief Operating Officer Chief Commercial Officer DR. JADE STINSON FERNANDO CORNEJO DR. CRISTIAN TOMA, PHD President & Co-Founder Chief Financial Officer Chief Science Officer of Vindara and Co-Founder Q&A BRENT DEJONG
Slide 34: Appendix 1: Recent Transactions
APPENDIX 1 RECENT TRANSACTIONS © C O P Y R I G H T 2 02 2 K A L E R A . A LL R I G H T S R E S E R V E D | P R OJ E C T OR L AN D O I N V E S TOR D E C K 34
Slide 35: Recent Transformative Acquisitions Are Driving Technology Leadership
Recent Transformative Acquisitions Are Driving Technology Leadership • A pioneer in seeds designed for indoor vertical farming systems • Today’s seeds are almost perfectly opposed to what indoor growers need • Lifting the burden imposed by today’s off-the-shelf seeds with tailor-made alternatives de
Slide 36: Deep Product Pipeline
Deep Product Pipeline Amaranth for High Yield Genovese and Thai Non-Blonde Faster Microgreens Basil Grow Out Romaine Quinoa Fusarium + Mildew Resistance Crispy Romaine Basil Frost Tolerant Basil PHASE PHASE PHASE DISCOVERY 1 2 3 LAUNCH Arugula Coriander High Yield Spinach High Yield Bush Cucumber No
Slide 37: Kalera + Vindara Benefits and Synergies
Kalera + Vindara Benefits and Synergies + IMPROVES unit economics and EBITDA – FURTHER PRODUCT DIFFERENTIATION: EXPANDS and accelerates seed R&D 1 lower COGS, increased output, reduced 2 optimized color, texture, flavor, architecture 3 programs for proprietary products cycle time and nutrient profil
Slide 38: &ever Provides Access to Attractive Global Markets and Bolsters Tech Stack
&ever Provides Access to Attractive Global Markets and Bolsters Tech Stack &ever Overview Highly Automated Vertical Farming Solutions – Kuwait Case Study Launched in Germany in 2015, focus on baby leaf products (kale, arugula, mustards, etc.) Broad portfolio of vertical farms from mega-farm (liv
Slide 39: &ever's Unique Growing Methods Complementary to Kalera's Technology
&ever's Unique Growing Methods Complementary to Kalera’s Technology CONTINUES TO GROW Bestponics Dryponics NO COOLING Key Features and Benefits Key Features and Benefits Innovative substrates approach with smart Plants are harvested with their roots intact fertilizers and soil Nutrients and ta
Slide 40: Kalera + &ever Creates a Leading Global Player in IVF
Kalera + &ever Creates a Leading Global Player in IVF + CREATES full portfolio of leafy green ESTABLISHES beachhead in attractive PROVIDES large portfolio of IVF technology 1 2 markets, including the Middle East and 3 offerings – “One Stop Shop” solutions Southeast Asia EXPANDS ability to address gl
Slide 41: Appendix 2: Facilities in Operation
APPENDIX 2 FACILITIES IN OPERATION © C O P Y R I G H T 2 02 2 K A L E R A . A LL R I G H T S R E S E R V E D | P R OJ E C T OR L AN D O I N V E S TOR D E C K 41
Slide 42: Current 10-month Facility Production Ramp-up Model
Current 10-month Facility Production Ramp-up Model to Test and Balance All Systems Comments Phase 1 Kalera Large-Scale Facility Commissioning Process for Facilities Opened in 2021-2022 Production capacity (1) aligned 10-month process to test and balance all to sales demand systems begins at first
Slide 43: Reduction in Operational Ramp-up Costs and Time
Reduction in Operational Ramp-up Costs and Time Kalera Large-Scale Facility Commissioning Process for Facilities Opened in 2023/2024 Production Capacity(1) Aligned to Acceleration Levers 2024-2025 Production ramp-up Sales Demand 70% 100% Throughput % Production (Actual) Capacity 65% 65% 65% 65% 88%
Slide 44: Current Sales Ramp-up Model
Current Sales Ramp-up Model # of Months Sales Ramp-up since First Harvest for US and International Farms Acceleration Levers -43% US Int. Over time, Kalera’s brand and products will become better known and develop 21 stronger brand equity 18 Kalera’s product portfolio will become increasingly di
Slide 45: Atlanta Throughput Yield on Track with Ramp-Up Model
Atlanta Throughput Yield on Track with Ramp-Up Model Atlanta Facility Commissioning Process 100% 90% 85% 90% 87% 85% 83% 83% 83% 83% 80% 80% 83% 83% 80% Throughput Percent of Production (Actual) Capacity(1)(3) 76% 75% 70% 73% 73% 75% 70% Percent of Maximum Capacity (2) 60% 60% 60% 60% 60% 68% 70% 67
Slide 46: Houston Throughput Yield Well Ahead of Expectations
Houston Throughput Yield Well Ahead of Expectations Houston Facility Commissioning Process 100% 90% 92% 85% 90% 86% 85% 83% 83% 83% 83% 80% 80% 83% 80% Throughput Percent of Production (Actual) Capacity(1)(3) 72% 75% 75% 70% 75% 62% Percent of Maximum Capacity (2) 70% 60% 70% 60% 60% 60% 60% 68% 70%
Slide 47: Orlando Capacity Utilization
Orlando Capacity Utilization Orlando Production Capacity versus Throughput 120% 85% 1. Capacity nears full 2. Capacity nears full utilization and throughput utilization and throughput 80% yield adversely impacted 98% yield adversely impacted 100% 95% 78% 89% 77% 75% Throughput Percent of Production
Slide 48: Farm of the Future Leveraging All Kalera's Latest IP & Technology
Farm of the Future Leveraging All Kalera’s Latest IP & Technology Coming in 1st Half 2023 Columbus ~136k sqft. Harvest Automation Process Automation Leading Plant Science Packaging Automation Up to 1,557 Metric Tons of Leafy Greens output annually Full Leafy greens product portfolio to maximiz
Slide 49: New Facility Planned for Central Florida Market
New Facility Planned for Central Florida Market to Meet Growing Sales Demand Kalera’s first large-scale facility prototype will not go through previously announced retrofit in 2022 Physical plant and power limitations prevent the Orlando Facility from receiving necessary upgrades. Limiting facilit
Slide 50: Reconciliation to US-GAAP
RECONCILIATION TO US-GAAP 2022E 2023E 2024E 2025E 2026E Net Income ($71.5) ($67.9) ($35.0) $5.2 $55.8 Taxes - - - - - D&A 16.4 26.2 35.6 43.7 50.4 Interest 3.6 7.4 9.8 12.5 14.4 EBITDA ($51.5) ($34.3) $10.4 $61.4 $120.6 HQ Expenses 20.3 19.9 20.5 21.1 21.7 Adjusted EBITDA(1) ($31.2) ($14.4) $30.9 $8