Tel Aviv Stock Exchange Ltd. · TASE:TASE
Tel Aviv Stock Exchange — Grace Breeding — Investor Presentation (February 2023)
35 slides from Tel Aviv Stock Exchange's investor presentation, February 2023
Slide 1: Corporate Presentation
CORPORATE PRESENTATION JANUARY/FEBRUARY 2023
Slide 2: Legal Disclaimer
Legal Disclaimer This Presentation about Grace Breeding Ltd. (hereinafter: "the Company") includes forecasts, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is uncertain and is beyond the Company’s control, and which constitute forward-
Slide 3: Our Mission
Our Mission To create sustainable agricultural solutions for sustainable food supply GRACE BREEDING Protect crops from the is an AgClimateTech Replace climate-harmful, effects of climate company providing change stressors synthetic products sustainable solutions for while protecting the while suppor
Slide 4: Company At-A-Glance
Company At-A-Glance Established 2015 Headquarters R&D center located in Israel’s Rehovot’s science park Employees 12 Experience Management with years of accumulated experience in the areas of Agtech, fertilizers, plant protection and food. IPO Feb 2022 (TASE: GRAC) with a market CAP ~ 100 Million IL
Slide 5: Management
Management Moti Mordehai, CCO Morris Zelkha, Chairman of the Board of Directors Global Senior Manager at ADAMA Agricultural Solutions Ltd.; GTM Founder and former CEO of LycoRed for 24 years expert with launch-to-commercial life cycle management experience head of new product development Negev Phosp
Slide 6: Investment Thesis
Investment Thesis • Large and growing addressable end-markets for each product line Leading programs are two novel, • Providing solutions to protect crops from the ongoing effects of climate patent-pending, biological change environmental stress protection and • Powerful unit economics and economies
Slide 7: The Advantages of Our Approach
The Advantages of Our Approach (examples of producers of legacy synthetic chemicals) GRACE BREEDING’S GREEN AGRO SOLUTIONS OTHER UNSUSTAINABLE COMPANIES • Climate stress resilience enhancement • Environmental pollution • Biological source • Environmental residue • Nitrogenous technology • Resistance
Slide 8: Market potential
Market potential • The global fertilizer market is estimated at $171 Billion • Biofertilizers TAM (urea-nitrogen only) – US$ 45 Billion • Over the last 20 years the investment of the conventional crop protection market in R&D expenditure has shifted Target crop: Maize/Corn • Conventional agrochemica
Slide 9: Our Technology: How We Are Differentiated Within the AgTech Industry
Our Technology: How We Are Differentiated Within the AgTech Industry Disrupting a multi-billion-dollar industry* with solutions to fertilize sustainably and enable crop health and vigor Grace Breeding’s Synergy Market- widely available Bio-Fertilizer (NFT) + accessible, activating agents Climate-str
Slide 10: Our Pipeline
Our Pipeline Our transformative product lines Product Candidate Discovery Field Trial 1 Field Trial 2 GTM Commercial* Proprietary Bio-Fertilizer (“NFT”) Stress Tolerance Enhancer (“WDS”) R&D NFT = Proprietary bio-fertilizer that is a natural replacement to synthetic fertilizer and serves as a urea r
Slide 11: Grace Breeding in the News
Grace Breeding in the News Grace Breeding 11
Slide 12: NFT (Proprietary Bio-Fertilizer)
NFT (Proprietary Bio-Fertilizer)
Slide 13: The Problem of Urea
The Problem of Urea • Urea is the world’s most common nitrogen fertilizer and is estimated at a market size of ~$45 billion. • Making urea is a multi-step endeavor that consumes copious amounts of energy and emits large amounts of greenhouse gases. • Urea leaches easily into what serves as the aquif
Slide 14: CO2 Emissions From Urea Production Adding to the Global Warming Crisis
CO2 Emissions From Urea Production for Nitrogen-Release Fertilizer are Significantly Adding to the Global Warming Crisis Creating a Vicious Cycle Urea Vicious Cycle Demand: The global fertilizer market is estimated at $171 billion Demand * Plant: Cereal grains (e.g., wheat, corn, rice, rye, millet,
Slide 15: NFT: The Solution Benefits
NFT: The Solution Benefits Farmer cost savings expected per: Naturally provides nitrogen to crops in synergy with - Reduced volume and dose per Ha. (1:25) available bacteria; reduction of 50% in use of urea - Reduced application frequency Environmentally-friendly to air, soil and the aquifer Low-car
Slide 16: NFT Field Trial Results
NFT Field Trial Results Wheat trial results 2020 and 2021 (Israel) • Commercial field applied with urea - NFT provided a yield similar to urea - 7.5% additional protein content was observed in grains with NFT 2020 and 2021 Wheat trials results Sept 2022 (Israel) • NFT boosted grain yield and quality
Slide 17: NFT Comparison to Urea in Maize (Corn)
NFT Comparison to Urea in Maize (Corn) NFT amount applied per Ha. – 20 L Reduced volume & dose per Ha. (1:25) Urea amount applied per Ha. – 500 kg ü Easy application method in the field. ü Farmer keeps similar agrotechnical tools and methodologies Grace Breeding 17
Slide 18: Bio-Fertilizer Approaches: Market Landscape
Bio-Fertilizer Approaches: Market Landscape Joint Venture with Bayer Easy and efficient field Crop Science application process Joint Venture with boosting, synergistic solution Corteva Simple, natural, hybrid- bacteria-based product Expensive, complex NFT $430M Series D @ $1.7B post-money valuation
Slide 19: WDS (Proprietary Stress Tolerance Enhancer)
WDS (Proprietary Stress Tolerance Enhancer) • . 19
Slide 20: How Climate Change is Affecting Global Crop Production
How Climate Change is Affecting Global Crop Production Rising levels of atmospheric carbon dioxide reduce the concentrations of protein and essential minerals in most plant species, including wheat, soybeans, and rice. This direct effect of rising CO2 on the nutritional value of crops represents a p
Slide 21: WDS: The Solution Benefits
WDS: The Solution Benefits WDS is a stress tolerance enhancer; a combination of naturally sourced ingredients with market-available bacteria Protects against abiotic climate stressors, addressing the supply problem for the farmer and the pricing threat to the consumer Increases yield and improves pl
Slide 22: The Need for Environmental Stress Protection Solutions Has Increased
The Need for Environmental Stress Protection Solutions Has Increased With Episodes of Global Drought Solution: Provide farmers with a higher yields and mitigate distribution challenges resulting from drought conditions Example: Tomato Supply Crisis • The global tomato processing market size reached
Slide 23: WDS – Industrial Tomatoes Field Trials
WDS – Industrial Tomatoes Field Trials 10/26/2022 WDS - Improves Industrial Tomato Yield by 17% 120 115 115 110 Yield (MT/Ha.) 105 WDS 98.4 100 95 Control 90 Treatments “The WDS application is essential in stressed fields.” The field trial (Israel (2022) showed that the formula both boosted the grow
Slide 24: WDS Trials in Avocados: 2020 – 2022
WDS Trials in Avocados: 2020 – 2022 WDS Control “ The WDS application saves me two years of growing and the additional cost of replanting; manpower and new plants.” - quote from farmer Field trial was done in Israel (2022) *UTC = untreated control (unfertilized) Grace Breeding 24
Slide 25: Bio-stimulant Approaches: Market Landscape
Bio-stimulant Approaches: Market Landscape WDS provides dual benefit related to plant tolerance and yield Climate stress defense benefits Expensive, complex bacteria-based Simple, natural, hybrid-boosting WDS synergistic solution product stress tolerance enhancer Acquired by Corteva for Direct Disea
Slide 26: Target Market & Strategic Collaborators
Target Market & Strategic Collaborators
Slide 27: Our Major Partners in Brazil: An Agricultural Market Leader
Our Major Partners in Brazil: An Agricultural Market Leader • With 42 million Ha. of soybean and 22 million Ha. of maize (corn), Brazil is one of the largest agricultural markets in the world. • Brazil is the largest agricultural chemical market in the world, with a turnover of 13 billion USD. • Bra
Slide 28: Strategic collaboration with the University of Londrina, Brazil
Strategic collaboration with the University of Londrina, Brazil (November 2022) We announced a strategic research and development collaboration with the University of Londrina (UEL), based in Paraná State, Brazil. The University is evaluating Grace Breeding’s NFT being developed to improve absorptio
Slide 29: Brazilian Study Results (January 2023)
Brazilian Study Results (January 2023) Results from the UEL study showed that the corn seeds treated with NFT had: - Showed greater efficiency in the use of nitrogen as shown through the greater intensity of green in the leaves (indicating an increase in chlorophyll content), leading to a potential
Slide 30: GTM Roadmap (Brazil): NFT and WDS
GTM Roadmap (Brazil): NFT and WDS Q1 2023 Q2 2023 Q3 2023 Q42023 Q12024 Q2 2024 Q3 2024 Choosing the Product Registration Selecting Key Influencers Collaborative Development Visiting Research Institutes Strategic Content Generation Competitor Analysis Set Price Market Launch Sales NFT WDS Note: proj
Slide 31: B2B Strategy Supports Core Environmental and Sustainability Pillars
B2B Strategy Supports Core Environmental and Sustainability Pillars Our B2B business model produces more robust and resilient industrial crops and improves distributor and farmer economics, while importantly, Please change to similar slide background as the rest of the deck supporting ESG initiative
Slide 32: Corporate Structure
Corporate Structure Grace Breeding Ltd.* Indofil industries Ltd. (Public – TASE: GRAC) 85% 15% Grace Breeding Nitrogen Fixation Technology Ltd.** (“NFT” product IP) Est. June 2018 *Grace Breeding Ltd. - (Public – TASE: GRAC), established February 2022- Holds WDS and R&D technology IP (ex. NFT) **Gra
Slide 33: Financials
Financials As of YE June 30, 2022 Ticker TASE: GRAC Shares outstanding 3,544,489 Net operating cash used* 3.5M ILS (1.1M USD) Cash balance* 12.2M ILS (3.5M USD) ILS = Israeli shekels Grace Breeding 33
Slide 34: Investment Summary
Investment Summary • Large and growing addressable end-markets for each product line • Sustainably reversing the threats of global climate crisis with bio-fertilizer and climate stress tolerance enhancer technology solutions • Focus is on high-yield crops (soybean, corn, tomato) • Powerful unit econ
Slide 35: Thank You!
Grace Breeding THANK YOU!
Grace Breeding — Investor Presentation (February 2023) on 6ix