Kalera Public Limited Company · OTC:KALRQ
Kalera Public — Investor Day (September 2022)
57 slides from Kalera Public's investor day presentation, Sep 22, 2022
Slide 1: Kalera Analyst & Investor Day
Kalera An Analyst & Investor Day” September 2022 : -—.
Slide 2: Forward-looking statements
This presentation contains a number of forward-looking statements. Words such as “accelerate,” “adapt,” “advance,” “allow,” “anticipate,” “believe,” “deliver,” ”enable,” “execute,” “expand,” “expect,” “grow,” “improve,” “invest,” “maintain,” “manage,” “minimize” “mitigate,” “navigate” “offset,” “pla
Slide 3: Today's Speakers
Today's Speakers Jim Leighton Aric Nissen Austin Martin Chief Executive Officer Chief Marketing Officer President North America Dr. Jade Stinson, PhD Dr. Henner Schwarz Fernando Cornejo President & Co-Founder of Vindara President International & Chief Financial Officer Chief Strategy Officer kalera.
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Slide 5: Welcome to Kalera's Investor Day
Welcome to Kalera’s Investor Day @ Objectives: Kalera’s New Strategy and Path to Profitability 2) Agenda + Overview * Key Differentiators * Transformation to a Consumer Packaged Goods (CPG) Company + Update on Operations » US * International + Update on Financials + Vindara © asa kalera.
Slide 6: Kalera's New Strategy and Path to Profitability
Kalera’s New Strategy and Path to Profitability STRATEGY (@) OPERATIONS (G@)_ FINANCIALS @) TECHNOLOGY Transition to CPG + Focus on capital + Topline growth / + Integrated platform ” platform asa efficiency revenue momentum across value chain differentiator _— . + Reduction in startup + Margin impro
Slide 7: Droughts, real estate scarcity and cost, depleted land
Droughts, real estate scarcity and cost, land completely depleted from nutrients Water rights, availability of clean high-quality water, increasing costs Harmful pesticides used in traditional farming and large exposure to virus and bacteria CO2 emissions, use of chlorine to wash conventional farmed
Slide 8: Vertical Farming is a Superior Proposition
Vertical Farming is a Superior Proposition Traditional Farming x 33% of global land has been moderately to severely degraded in its ability to grow nutritious crops 30% of planted crops are not harvested Risk of contamination from animals, water/airborn 70% global fresh water being used for soil-bas
Slide 9: Vertical Farming Outperforms
Vertical Farming Outperforms Vertical farming stacks up favorably compared to greenhouse and traditional farming Vertical Farming Greenhouse Farming Traditional Farming Minimal Space Required Environmental Control @ ) O Location Flexibility ® @ O v Higher Yield Output v Higher Quality of Produce v M
Slide 10: New CEO Hired to Transform Kalera into a Consumer Centric Food Company
New CEO Hired to Transform Kalera into a Consumer Centric Food Company aes Kalera designs, develops, builds, and operates fully integrated indoor vertical farms around the globe d4 Plants grow in controlled environment with high use re) of automation technology while staying flexible Perfect climate
Slide 11: The Market Opportunity
The Market Opportunity 2021 Global Lettuce Market TOTAL ADDRESSABLE MARKET $4.2 bn SERVICE ADDRESSABLE MARKET $400+ mn SERVICE OBTAINABLE MARKET Sources: ROTH Copital Partners and Organic Produce Network os of Jenvary 2022. 0 Leafy greens market CAGR of 6.5% through 2027 Opportunity for product expa
Slide 12: The Foundation Is Built
The Foundation Is Built kalera. PURPOSE: GROW A BETTER WORLD %} VISION Lead the world to sustainable nourishment MISSION To be the recognized leader in locally grown, cleaner, tastier and more nutritious produce PPORTED BY KEY DIFFERENTIATORS ALWAYS, PUBLICLY LOCAL, FULL TRADED FULLTECH [| CONSUMER
Slide 13: Committed to ESG
Committed to ESG Defined mission to provide humanity with fresh, safe, sustainable, affordable nourishment Nutrition & Health Enhancing health benefits from ultra- fresh greens with high nutritional value Water Stewardship Protecting resources by lowering consumption and avoiding discharges + Safe f
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Slide 15: Kalera's Core Capabilities: Global Footprint
Kalera’s Core Capabilities: Global Footprint Kalera has the largest geographic footprint of any indoor farm. Houston f 9 ; N ’ ly , : _ ig. yt Singapore" 9 Operational Farms 9 Under Construction Farms 9 Construction Postponed Currently Kalera has 10 million Ibs. capacity and aims to have ~15+ millio
Slide 16: Unmatched, Full Technology Stack
Unmatched, Full Technology Stack TECH CAPABILITIES FROM SEED TO SALE Value Irrigation & a Seeds Substrates || Intralogistics Nutrient HVAC Lights Processes Software Chain Mgmt. Full Climate Service- Control Oriented Software Architecture Proprietary Plugs | Genetics Lighting Knowlieuae Automated (No
Slide 17: Pivoting Strategy From Technology Platform to CPG for Leafy Greens
Pivoting Strategy From an Investor Facing Technology Platform to Consumer Packed Goods (CPG) for Leafy Greens rng PURPOSE DRIVEN BRAND WITH STRONG BRAND PRESENCE | | p! I Communicate key brand messages and build customer loyalty CONSUMER INSIGHTS | Leverage consumer data for product development and
Slide 18: Highly Efficient Capital Use
Highly Efficient Capital Use * Kalera is a leader of CapEx per Lb of Annual Outputt!)(23) + ROI-driven automation adoption * Careful standardization of key equipment * In-House only hardware/software related to Kalera IP CAPEX PER LB OF ANNUAL OUTPUT 20.0 ‘ $168 $15.0 $10.0 $47 $5.0 . Kolero Select
Slide 19: Always Local, Always Fresh, Always Available
Always Local, Always Fresh, Always Available Significant reduction in length of value chain, including transportation costs, emissions and faster time to consumer 1,000 - 3,000+ Miles from harvest to consumer Harvest/ Cold Trucking Cold Trucking Cold Trucking Package Storage Local Storage Long-Haul
Slide 20: Full Portfolio of Leafy Greens
Full Portfolio of Leafy Greens Vast portfolio of highly differentiated and consumer-preferred leafy greens is a key component of Kalera’s go-to-market strategy kalera. ©) © @ @ & Flexible Product and Channel Mix Capture Additional Shelf Space at Retailers Reinforces Brand Across Multiple Products Op
Slide 21: Technology + CPG Experience = Winning Team
Technology + CPG Experience = Winning Team © © © 8 ©@ Jim Leighton Austin Martin Fernando Cornejo Dr. Henner Schwarz Dr. Cristian Toma, PhD President & Chief President North America Chief Financial Officer President International & Chief Science Officer Executive Officer Chief Strategy Officer ‘ond
Slide 22: Publicly Traded Vertical Farming Company
Publicly Traded Vertical Farming Company As a vertical farming company listed on Nasdaq, Kalera delivered on its commitment to list on the exchange, providing existing investors with greater liquidity and the opportunity for new investors to invest in a pure play global vertical farming business. ka
Slide 23: Transformation to a Consumer Packaged Goods Company
TRANSFORMATIONTOA : CONSUMER PACKAGED GooDs| COMPANY Aric Nissen, CMO
Slide 24: ios
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Slide 25: Why Brand Matters for Kalera
Why Brand Matters for Kalera Kalera’s consumer brand is already an increasingly valuable asset for shareholders SC ROS FOR CPG|COMPANIES, ~COMMUNICATIONS & ADVERTISING BY ITSELF VALUABLE ASSETS oui 45% BUYING INTENT 76% BUYING INTENT 57% BUYING INTENT 56% BUYING INTENT FOR KALERA FOR KALERA FOR KALE
Slide 26: New logo, visual identity and packaging
the science of great greens the cleanest lettuce in the world new logo, visual identity, brand positioning & updated packaging targeting to launch in Q4!
Slide 27: Product varieties and potential markets
• Butterhead / Bibb • Romaine • Red Oak Leaf • Krunch® • Frisée • Mini Gem • Lollo • Butterhead / Bibb • Romaine • Red Oak Leaf • Krunch® • Spring Mix • Butter Krunch Blend • Spinach • Arugula • Kala • Mizuna • Basil • Cilantro • Mustard Greens • Asian Mixes • Microgreen Mixes Kalera local, year- ro
Slide 28: Kalera Gaining Traction in US Retail
Kalera Gaining Traction in US Retail 700%+ growth in US retail store locations since March 2021 US RETAIL STORE GROWTH 1Q 2022 RECENT ADDITIONS TOPLINE COMPOUNDING 1600 1400 09 al © 400 “ A ° AMJSASONDJFMAMISASO + More retailers + More distribution w/existing TRADER + More products JOE'S * More velo
Slide 29: Kalera Has Attracted Blue-Chip Customers
Kalera Has Attracted Blue-Chip Customers Kalera launched its commercialization strategy at the end of Q2-2020. In only 24 months, Kalera has been able to gather a significant number of Blue-Chip customers in multiple channels, from diverse verticals, across the world that validate and support Kalera
Slide 30: Marketing Summary
Marketing Summary alera mm KALERA’S SUCCESSFUL MULTI-CHANNEL CONSUMER BRAND PRODUCT LINEUP CUSTOMER SUCCESS IS ACOMPELLING NOW + FUTURE = COMPOUNDING DIFFERENCE MAKER GROWTH GROWTH VEHICLE
Slide 31: Operations
OPERATIONS Austin Martin, President Nor
Slide 32: A Disciplined Approach to Indoor Vertical Farming
A Disciplined Approach to Indoor Vertical Farming Kalera has a standardized process to deploy and operate new farms. 1) DESIGN & DEVELOPMENT FARM LAUNCHING & 2 COMMISSIONING PROCESS SP MARKETING Kalera can deploy a new farm from zero Kalera has a disciplined approach to its Kalera is now focused on
Slide 33: Operations Roadmap - Beyond the Learning Curve
Operations Roadmap - Beyond the Learning Curve OME OME OMEN Bringing 1. Product portfolio expansion icti 2. Points of Distribution x Velocity existing 4 ; Cash flow positive: operating 3. US Food relationship expanding + All US Farms by end of farms to cash BOTTOM LINE 2023 flow positive wP v 1. Yie
Slide 34: CapEx and OpEx Investments Enable Goal of Farm Profitability in 2023
CapEx and OpEx Investments in Farm Network Enable Goal of Farm Profitability in 2023 QUARTERLY FARM CAPEX INVESTMENT ($) 2021-2023 US FARMS Quarterly EBITDA ($) 2021-2023 Break Even Orlando ‘Atlanta <eHouston Denver =mmStpaul 1) Form profitability in 2023 assumes financing of $50mn by November 2022
Slide 35: Focus on Increased Capacity Utilization and Product and Channel Mix
Focus on Increased Capacity Utilization and Product and Channel Mix INCREASED CAPACITY UTILIZATION OPTIMAL PRODUCT & CHANNEL MIX CURRENT AIM FOR END OF 2023 100% 90% vs Ch | Mi: Foodservice] Retail 70% sell as 51% 49% Foodservice on 70% - "Value Add 40% ‘ LM 30% im Full Head 49% Loose Leaf 37% 10% F
Slide 36: Progress on Cost Structure at the Farm Level
Progress on Cost Structure at the Farm Level Current cost structure is predominantly driven by fixed expenses with less than 14% driven by variable expenses. The impact of our product line extension strategy, and additional market-based financing will accelerate revenue ramp up within operating farm
Slide 37: International Operations
INTERNATIONAL OPERATIONS Dr. Henner Schwarz, Preside’ & Chief Strategy Officer or
Slide 38: International Farms: High Degree of Automation
International Farms: High Degree of Automation Accelerates Reaching Breakeven KUWAIT FARM RAMPING UP WITH STRONG COMMERCIAL TRACTION STRONG COMMERCIAL KEY FACTS LEADING TECHNOLOGY TRACTION 0.5t 9 ae coy ‘ourput ie ws < & Leith! + High degree of automation GEES 1OMETERS HIGH reat ence user a Carrefou
Slide 39: Models for Capital Light Expansion
2 Models for “Capital Light” Expansion ti) JV model (co-development) (2) Infrastructure model (build and sell) Licence Licence Fees Infrotructure- Partner 0-50% Dividends @ Operating Company | 50-100% Divi- renee __ Separate AssotCos eager optional; may collapso sends into one Opco/ Assetco Profit f
Slide 40: Example: JV Government Entity
Example: JV Government Entity + Mid-sized, 12,000 sqft facility with capacity of 135 tons p.a. + JV between Kalera and a Government entity, open for local debt and/or infrastructure investors + Product portfolio will include full range of leafy greens (salads, herbs, cresses) kalera. LOCAL GOVERNMEN
Slide 41: From an R&D Concept to a CPG Company
From an R&D Concept to a CPG Company 2010-2020 2020-2022 2023E + 1. Mass scale production 1. Plant science 2. Increased yields Results of consistent output per farm allowing 2. Research and 3. Process + People: Processes Development in place to support Kalera to extend product . operations from a ho
Slide 42: Financial Update
FINANCIAL UPDATE Fernando Cornejo, CFO
Slide 43: Quarterly revenue
$21 $222 $417 $227 $339 $489 $801 $1,226 $1,477 $1,289 $1,610 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 The decline in revenue from Q3 2020 to Q4 2020 is due to a one-time COVID-19 food demand program sponsored
Slide 44: Farm capital investment by location
$48,908 $5,217 $2,820 $12,960 $15,598 $12,313 $48,908 $9,501 $14,020 $72,429 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Orlando Kuwait Atlanta Houston Denver Total St. Paul Seattle Total
Slide 45: Additional financing and liquidity sources
✓ Additional financing to bring existing operating farms to cash flow positive and finish construction within St. Paul, MN and Seattle, WA plus upgrades at existing farms for product expansion ✓ Additional liquidity up to $22 million from sale-leaseback alternatives including the Kuwait facility and
Slide 46: Vindara
ee Eo Vindara — Dr. Jade Stinson - & ZA
Slide 47: Vindara creates seeds for vertical indoor farms
Vindara creates seeds specifically designed for use in vertical indoor farms. Our seeds are a drop-in replacement for the systems growers already use, optimized for next-generation environments while amplifying appearance, nutrition flavor and thereby transforming grower economics. Vindara is a whol
Slide 48: Varieties optimized for the wrong traits
Long Transportation Sub-optimal Nutrition Lackluster Appearance Pest Resistance T ’ G Varieties: Optimized for the Wrong Traits 48
Slide 49: Introducing Vindara
And it’s done entirely through analytics— not gene editing or GMOs. Introducing Vindara Intentionally designed seeds specifically for vertical indoor farms T ’ w w . A drop in replacement for the systems vertical indoor growers already use Amplified yield, appearance, nutrition and flavor 49
Slide 50: How We Do It
How We Do It 5-7 Years 12-18 Months In essence, it provides a simpler, shorter path to the desired outcome, reducing time taken by traditional breeding methods to arrive at a usable seed from 5-7 years to 12-18 months. 50
Slide 51: A Control Panel for New Varieties
A Control Panel for New Varieties Giving growers a control panel for designing the produce of tomorrow—built to spec, and brought to life with unprecedented speed. A seed design system that can deliver any kind of genetic variety, tailored to each customer’s needs. 51
Slide 52: Benefits and Synergies
Benefits and Synergies IMPROVES unit economics and EBITDA – lowers COGS, increased output, reduced cycle time 1 2 3 4 5 EXPANDS and accelerates seed R&D programs for proprietary products FURTHER PRODUCT DIFFERENTIATION: optimized color, texture, flavor, architecture and nutrient profile $2.5B ADRESS
Slide 53: Closing Remarks
CLOSING REMARKS Jim Leighton, President & €
Slide 54: Kalera's New Strategy and Path to Profitability
Kalera’s New Strategy and Path to Profitability STRATEGY (@) OPERATIONS (G@)_ FINANCIALS @) TECHNOLOGY Transition to CPG + Focus on capital + Topline growth / + Integrated platform ” platform asa efficiency revenue momentum across value chain differentiator _— . + Reduction in startup + Margin impro
Slide 55: Kalera's Investment Opportunity
Kalera’s Investment Opportunity Large and Growing Market for Fresh Produce Strong Customer Relationships Across Channels with Blue Chip Customers Highest Quality Greens Grown Locally and Sustainably Outstanding Growth Prospects Globally through Both Organic and Inorganic Expansion Superior Technolog
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Slide 57: Thank you
شكرا 謝謝