Slide 1: Second Quarter 2016 Financial Results and Business Highlights
Second Quarter 2016 Financial Results and Business Highlights August 9, 2016
Slide 2: Forward-looking statements
Forward-looking statements “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation c ontains forward-looking statements about the company and its products, including statements relating to components of the company’s long-term financial success and on
Slide 3: New President and CEO – Raj Ketkar
New President and CEO – Raj Ketkar Joined Arcadia on May 23, 2016 35 years of experience in the agricultural chemicals, biotechnology, and seed industry Experienced leader in global business development, research, strategy and operations, manufacturing and supply chain Former Managing Director of Ma
Slide 4: Arcadia is well positioned for future growth
Arcadia is well positioned for future growth Robust pipeline of GM and Non-GM traits Unique business model leverages partnerships with seed companies and processors to bring products to market Numerous licenses in place with global partners in major crops Multiple products in advanced stages of dev
Slide 5: Near-term priorities will inform long-term company strategy
Near-term priorities will inform long-term company strategy PRODUCTS OPERATIONS ORGANIZATION • Complete comprehensive • Identify opportunities for • Build performance- strategic review of near-term revenue driven organization projects • Improve efficiency of • Align processes across • Deep dive
Slide 6: HB4 stress tolerant soybeans continue to advance through the regulatory systems
HB4 stress tolerant soybeans continue to advance through the regulatory systems Initial launch in South America HB4 commercial launch status • South America • Regulatory approvals completed in soybean area: Argentina, pending in Uruguay 136M acres • FDA submission in May 2016 • Addressable by HB4 tr
Slide 7: Proprietary non-GM wheat products have fewer regulatory requirements for commercialization
Proprietary non-GM wheat products have fewer regulatory requirements for commercialization Program Benefit Partners/Products Status Resistant Starch Increased levels of dietary fiber to support • Millers, consumer • Formulating end-use Wheat development of low glycemic index foods packaged goods p
Slide 8: Key financial results
Key financial results Second Quarter First Half % Favorable/ % Favorable/ 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Total revenues 721 1,430 (50%) 1,573 2,245 (30%) Cost of product revenues 35 106 67% 182 162 (12%) R&D expense 2,216 2,086 (6%) 4,418 3,918 (13%) SG&A expense 2,759 2,785 1% 6,19
Slide 9: Revenue
Revenue Second Quarter First Half % Favorable/ % Favorable/ 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Product revenue 65 179 (64%) 320 260 23% License revenue 140 401 (65%) 292 559 (48%) Contract research and 516 850 (39%) 961 1,426 (33%) government grants Total revenues 721 1,430 (50%) 1,573
Slide 10: Operating expenses
Operating expenses Second Quarter First Half % Favorable/ % Favorable/ 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Cost of product revenues 35 106 67% 182 162 (12%) R&D expense 2,216 2,086 (6%) 4,418 3,918 (13%) SG&A expense 2,759 2,785 1% 6,195 5,423 (14%) Total operating expenses 5,010 4,977 (
Slide 11: Thank you!
®D Arcadia BIOS CIEN CE S&S Thank you!