CEA Industries Inc. · NASDAQ:BNC
CEA Industries — Investor Presentation (February 2022)
17 slides from CEA Industries's investor presentation, February 2022
Slide 1: A Platform for Innovation
A PLATFORM FOR INNOVATION 2022 Presentation
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements This investor presentation may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect our current
Slide 3: Company Overview: CEA Services & Solutions
COMPANY OVERVIEW CEA SERVICES & SOLUTIONS CEA Industries Inc. 90% 5% 5% 200+ Commercial Projects / 800+ Customers Equipment and Licensed Architectural Ancillary Infrastructure Control Systems & MEP Engineering Technology 20,000 - 100,000+ square feet facilities Licensed Professional Providing cost e
Slide 4: Controlled Environment Agriculture
CONTROLLED ENVIRONMENT AGRICULTURE 40%+ arable land has suffered 70%+ global freshwater farming degradation used by agriculture – PNAS, 2018 – Worldbank, 2019 CEA is capable of increasing output yield by 10-50x versus traditional field farming 4 ceaindustries.com
Slide 5: CEA Demand Is Growing
CEA DEMAND IS GROWING 68% 95% $600M $21B of global consumers of US single urban Invested into CEA, The Global CEA prefer locally households are including Softbank, Market is projected branded vegetables willing to pay more Jeff Bezos, and to reach $21 Billion for local food Google Ventures by 2028 w
Slide 6: Industry Leading Design and Engineering Solutions
INDUSTRY LEADING DESIGN AND ENGINEERING SOLUTIONS Our knowledge, design Floor Plans & Architectural Design expertise, and technology solutions provide optimal operating efficiencies to our clients. Preventive Maintenance MEP Engineering Services Environmental Installation Systems Support & Controls
Slide 7: Operational Overview: Design & Engineering
OPERATIONAL OVERVIEW: DESIGN & ENGINEERING Floor Plans & Environmental Architectural Design Systems & Controls • Early contact with prospect, • Core engineering expertise relationship development MEP Engineering • Proprietary, differentiated offerings • Value added facility design • Licensed mechani
Slide 8: Operational Overview: Equipment & Installation
OPERATIONAL OVERVIEW: EQUIPMENT & INSTALLATION Lighting, Benching & Project Management Ancillary Equipment • Work closely with installation • Provide all key infrastructure contractors to support construction technologies required in the facility Control Technologies • Upsell opportunities • Integra
Slide 9: Operational Overview: Start-up & Operation
OPERATIONAL OVERVIEW: START-UP & OPERATION Installation Support Preventive • Site visits during installation Maintenance Services • Engineering support • Life of the facility Start-up & Training • Recurring revenue • Operator training • Relationship maintenance/ • Insure proper installation & follow
Slide 10: Project Timeline
PROJECT TIMELINE 5 MONTHS: Equipment ordered (40% deposit on equipment received prior to ordering) 1-2 MONTHS: 4-5 MONTHS: 12-18 MONTHS: Proposal development Architectural and MEP engineering work All equipment shipped and installed, project completed, operator and presentation completed and equipme
Slide 11: Case Studies
CASE STUDIES Location Michigan Pennsylvania Multi-facility Operator, AZ, CA, IL Size 75,000 sq ft 50,000 sq ft Over 330,000 sq ft in three facilities Sale Closed June 2019 July 2020 August 2016; July 2020; Sep 2021 Mechanical, including Engineering Services Mechanical Mechanical CHP interface 2 & 4
Slide 12: Financial Overview
FINANCIAL OVERVIEW Revenue Operating Income (Loss) Chart Title $15.2M $11.5M -$0.5M Q1-Q3 $10.6M Q1-Q3 $8.5M -$1.0M -$1.3M $5.1M Q1-Q3 -$1.8M Q1-Q3 -$2.4M 2019 2020 20212021 thru Q3 2019 2020 2021 2021 thru Q3 Q1-Q3 Q1-Q3 2021: Return to pre-COVID levels 2021: Improvement (versus previous year drive
Slide 13: Backlog
BACKLOG $9.9M $8.2M 21% Year-over-year increase in backlog despite significant supply chain headwinds Q3 2020 Q3 2021 13 ceaindustries.com
Slide 14: Market Comps
MARKET COMPS Company Ticker Market Cap ($MM) LTM Revenue ($MM) Price/Sales urban-gro, Inc. UGRO $102 $52.37 1.9 x Agrify Corporation AGFY $132 $38.94 3.4 x GrowGeneration Corp. GRWG $505 $393.84 1.3 x Hydrofarm Holdings Group, Inc. HYFM $873 $456.45 1.9 x Mean 2.1 x Median 1.9 x CEA Industries Inc.
Slide 15: Growth Strategy
GROWTH STRATEGY • Increase contract sizes with • Target companies with high • Invest in upgrading our additional service/solutions margin solutions that technology and service complement our existing offerings • Expand our footprint outside • Aggressively expand into non- of existing North American
Slide 16: Management Team
MANAGEMENT TEAM Tony McDonald Randy Shipley Nick Etten Chairman & CEO Independent Director Independent Director • On Board and as CEO since 2018 • Founder & CEO, RSX Enterprises; Former VP/Sales of • Former Head of Government Affairs with Acreage Holdings VividGro and Chief Strategy Officer of GroAd
Slide 17: Investment Summary
INVESTMENT SUMMARY The Controlled Environment Agriculture industry is undergoing rapid, sustained growth New Markets: New Products: Acquisitions: International outside N. America Higher margin solutions and New vertical markets, geographic Non-cannabis CEA expansion services via collaborations and J
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