Verde Agritech Ltd · TSX:NPK
Verde Agritech — Q3 2023 Earnings Presentation
20 slides from Verde Agritech's earnings presentation, November 2023
Slide 1: Q3 2023 Update
November/2023 Q3 2023 Update
Slide 2: We are not good enough for you to invest if you:
If you are risk averse don’t buy our stock. Don’t rely on anything on this We are not good enough for you to invest if you: TSX: NPK presentation. This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect Are risk averse. to Verde A
Slide 3: Buy Super Greensand at Amazon
TSX: NPK Buy Super Greensand® at Amazon: 5% OFF Coupon (USA): Q320235OFF 5% OFF Coupon (CA): Sold out The discount codes are valid through December 20, 2023. The codes are limited to a single unit per order and to a single order. 3
Slide 4: Contents
TSX: NPK 1. Market Overview 2. Potassium chloride price contents_ 3. 4. Market Overview Brazilian agricultural market 5. Brazilian economic scenario 6. Currency exchange 7. Market outlook 8. CO2 capture potential 9. Q3 2023 Highlights 10. Q3 2023 Financial Statements 11. Operational Summary 12. Sale
Slide 5: Market Overview
market overview _ AGRITECH
Slide 6: Brazilian Agricultural Market
brazilian agricultural market_ TSX: NPK The agricultural commodities market has been experiencing significant fluctuations on a downward trend since H1 2022, impacting the fertilizers’ market worldwide. Soybeans price - Paranaguá (R$) Coffee Price (R$) Corn price (R$) 1600 110 200 1500 100 190 1400
Slide 7: Potassium Chloride Price
TSX: NPK potassium chloride price_ 1200 KCl CFR Brasil average spot price (US$) 1000 800 The Average KCl CFR price declined by 59% in Q3 2023, compared to Q3 2022, with a 34% decrease from 600 January to September 2023. 400 Nonetheless, the market has witnessed a stabilization in 200 KCl prices sinc
Slide 8: Market Overview
market overview_ TSX: NPK Other fertilizer also showed historic high prices in 2022. Urea prices declined 48% in 2023, compared to 2022, and 39% in Q3 2023, compared to the same period in 2022. MAP prices declined 41% in 2023, compared to 2022, and 41% in Q3 2023, compared to the same period in 2022
Slide 9: Brazilian Economic Scenario
TSX: NPK brazilian economic Brazilian SELIC interest rate at year end 13,75% scenario_ 13,00% 12,25% 11,75% 11,00% • On November 01, 2023, the Central Bank of Brazil 9,25% 9,25% 8,75% 9,00% lowered the SELIC rate to 12.25%. 7,00% 7,00% 6,50% • The Central Bank of Brazil projects the SELIC rate to 5,
Slide 10: Market Outlook
market The market outlook for agricultural inputs, particularly fertilizers, is cautiously optimistic, with: outlook_ • Stabilization of fertilizer prices; • Steadying of agricultural commodity prices; • Brazilian economic positive indicators; • Should the SELIC rate decrease to the anticipated 8.5%
Slide 11: CO2 Capture Potential
K Forte®’s potential of carbon removal through ERW can CO2 capture potential_ reach up to 112.56 kilograms of CO2e per ton of Product.1 Verde's sustainable production processes, Carbon credits for ERW are currently being negotiated in which has 100% use of renewable energy a range of $138.78/t2 to $
Slide 12: Financial Results
financial results __ AGRITECH
Slide 13: Q3 2023 Highlights
TSX: NPK Q3 2023 highlights_ Cash Cash held by the Group in Q3 2023 was $9.3 million, compared to $5.1 million in Q3 2022. Cash utilized from investing activities decreased by 104% in Q3 2023, to $504K compared to $13.7M in Q3 2022 as costs relating to the commissioning and construction of Plant 2 w
Slide 14: Q3 2023 Financial Statements
Q3 2023 financial statements_ TSX: NPK All amounts in CAD $’000 Q3 2023 Q3 2022 2023 YTD 2022 YTD Revenue 9,375 27,269 30,805 63,434 Production costs(1) on costs (3,056) (6,069) (7,680) (14,055) Gross Profit 6,319 21,200 23,125 49,379 Gross Margin 67% 78% 75% 78% Sales and marketing expenses (695) (
Slide 15: Operational Summary
TSX: NPK operational summary_ All amounts in CAD $’000 Q3 2023 Q3 2022 %Δ 2023 YTD 2022 YTD %Δ Tons sold ‘000 108 189 (43%) 323 503 (36%) Average Revenue per ton sold $ 87 144 (40%) 95 126 (24%) Average Production cost per ton sold $ (28) (32) (11%) (24) (28) (15%) Average Gross Profit per ton sold
Slide 16: Sales, General and Administrative Expenses
sales, general and administrative expenses_ TSX: NPK All amounts in CAD $’000, except Q3 2023 Q3 2022 %Δ 2023 YTD 2022 YTD %Δ percentages Sales expenses Sales and marketing expenses (890) (1.385) (36%) (2,990) (2,919) 2% Fees paid to sales agents 195 (481) NA (36) (976) (96%) Total Sales expenses (6
Slide 17: Logistics
logistics_ TSX: NPK Sales Channels (% of total sales) FOB vs CIF (tonnes) 80% 200.000 68% 70% 60% 56% 150.000 50% 100.000 40% 37% 30% 30% 50.000 20% 0 10% Q3 2023 Q3 2022 0% Q3 2023 Q3 2022 FOB CIF Total Direct Sales Sales Agents Distributors The sales through direct sales was 68% in Q3 2023, compar
Slide 18: Loans
loans_ TSX: NPK Company Loans Profile • In Q3 2023, Verde recorded a cash of $9.2M and trade Loans remaninig at the end of each quarter Loan Payments receivables totaling over $16.1M, providing valuable 45.000 support for the company's cash flow. 40.000 35.000 • The total net loans in the end of Q3
Slide 19: AGRITECH
AGRITECH
Slide 20: Thank you
thank you_ We are uma Somos an agricultural empresa detechnology tecnologiacompany that agrícola que produces produz multi-nutrient fertilizantes potassium potássicos fertilizers. multinutrientes. We bringo together Unimos melhor dathe best of nature natureza and da e o melhor technologypara tecnolo