Slide 1: Corporate Presentation
AGRG@NOMICS CORPORATE PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This presentation (“Presentation”) is being provided to you (the “Recipient”) by Agronomics Limited (the “Company” or “Agronomics”) for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of
Slide 3: Introduction
INTRODUCTION
Slide 4: Executive Summary
EXECUTIVE SUMMARY Agronomics is: Disruption of the Cow • The only UK publicly listed investment company offering exposure to the clean meat sector • Providing capital primarily focused on early stage companies with the potential for excess returns • Pursuing profits with a purpose that addresses iss
Slide 5: The Opportunity
THE OPPORTUNITY CORE FOCUS • Products derived from soya, pea, wheat, chickpeas and mushroom to mimic meat using an extrusion process • Currently Impossible Foods and Beyond Plant-based Meat (NASDAQ: BYND) are dominating Cultivated Meat protein the market Cultivated meat is derived from cells grown •
Slide 6: Agronomics Team
AGRONOMICS TEAM Management Richard Reed, CBE Scientific Advisory Board Non-Executive Chairman Sara Ranjbarvaziri, Ph.D. Co-founder of Innocent Drinks, acquired by Coca Postdoctoral fellow in the School of Medicine at Cola in 2013. Co-founder of JamJar Investments, Stanford University, with specific
Slide 7: Market Opportunity
MARKET OPPORTUNITY
Slide 8: Thematic Overview
THEMATIC OVERVIEW Global population growth forecasted to reach 10bn by 2050: demand for animal protein is growing at a rate faster than population increase Rise of the ‘conscious consumer’ and increasing acceptance that the current food system is unsustainable Viable solutions are now available or i
Slide 9: A US $7.3 trillion global meat, poultry and seafood market
A US $7.3 trillion* global meat, poultry and seafood market Our Investment Market Dynamics Approach • Large addressable market • Focused approach with a target ripe for disruption of 15 companies • Demand for meat is growing, • Investing in companies across especially in India, China and protein cat
Slide 10: Funding in the Sector is Accelerating
FUNDING IN THE SECTOR IS ACCELERATING Funds Raised in Pure Cultivated Meat Companies* • Cultivated meat sector is still nascent MeaTech • 2016 - 2019 USD 140 million invested $350m Biotech Foods globally to date Wild Type $300m • 2020 - YTD USD 184 million already Total Funds Raised, USD (m) SuperMe
Slide 11: Valuation Comparators
VALUATION COMPARATORS Memphis Meat Modern Meadow Perfect Day JUST * Product focus Beef, chicken Leather Dairy proteins chicken Pre-money valuation USD 450m* USD 200m USD 440m USD 1.1bn Fundraise stage Series B Series C Series C Series D+ Total funding received USD 203m^ USD 54m USD 202m^ USD 220m NO
Slide 12: Plant-Based Sector
PLANT-BASED SECTOR Investments in plant-based companies: • Investment in plant-based foods since 2009 Most Active VC in the Plant-based Sector by Deal Count has exceeded USD 17 billion with the majority occurring since 2017 New Crop Capital 27 • Investments included 233 US deals between investors an
Slide 13: Investment Strategy
INVESTMENT STRATEGY
Slide 14: Strategy and Deal Flow
Strategy DEAL FLOW • Build a concentrated portfolio in the alternative protein sector with the potential to challenge existing large markets • Exploit deep domain expertise through engagement with key stakeholders in the field • Invest in Seed and Series A opportunities, with early Agronomics has al
Slide 15: Portfolio Composition and Financial Metrics
PORTFOLIO COMPOSITION AND FINANCIAL METRICS CORE FOCUS Rebellyous Insilico Medicine Oritain 1% Bond Pets 1% Foods 1% Shiok Meats 1% 2% Cytox Galy 0.4% • Global mandate including companies 2% based in UK, USA, Singapore, the Netherlands, Germany and New Zealand Quoted New Age Meats • Legacy holdings
Slide 16: Portfolio Companies
PORTFOLIO COMPANIES * Includes Seed investment of USD 250k, and USD 2.75m Series A investment ^ Investments in the form of SAFEs and CLNs, % ownership approximate Agronomics USD 3.0m* EUR 3.0m USD 3.0m USD 3.0m USD 2.5m EUR 1.0m investment Stage Series A Seed Extension Seed Series B Seed Seed % 5.9%
Slide 17: Portfolio Companies
PORTFOLIO COMPANIES ^ Investments in the form of SAFEs and CLNs, % ownership approximate Agronomics USD 700k USD 500k USD 500k USD 350k USD 150k NZD 500k investment Stage Seed Seed Seed Series A Seed Seed % 7.0% 4.4%^ 2.3%^ 1.23% 3.0%^ 1.1% Ownership Current USD 700k USD 500k USD 500k USD 350k USD 1
Slide 18: Demonstration Products from the Portfolio
DEMONSTRATION PRODUCTS FROM THE PORTFOLIO New Age Meats | cultivated sausage BlueNalu | fillets of yellowtail fish | December 2019 September 2018 Shiok Meats | siu mai shrimp VitroLabs | lab-grown bovine leather | 2030 dumplings | April 2019
Slide 19: Capital Structure and Shareholders
CAPITAL STRUCTURE AND SHAREHOLDERS ANIC Share Price Strong alignment of directors’ interests – with collective ownership of 21.60% £0.14 £0.12 Directors’ Holdings: Shares % £0.10 Jim Mellon 65,837,131 19.85% Richard Reed (1) 3,818,181 1.15% £0.08 David Giampaolo 2,000,000 0.60% £0.06 £0.04 Completed
Slide 20: Corporate Structure
CORPORATE STRUCTURE
Slide 21: Performance Fees and Tax Structure
PERFORMANCE FEES AND TAX STRUCTURE Fee Structure Tax Structure • Isle of Man incorporated company Management Fee: Nil • Majority of board is non-UK resident Performance Fee*: 20% calculated on increase in NAV Subject to Hurdle Rate and HWM • Corporate income and capital gains subject Paid only on re
Slide 22: Summary
SUMMARY Animal-free alternatives to animal husbandry will challenge traditional industries and supply chains Sector is in its infancy but supported by numerous secular macro trends Potential to challenge the USD 7.3 trillion meat, seafood and poultry market* Introduction The only UK listed opportuni
Slide 23: Appendix
APPENDIX
Slide 24: Portfolio Companies
PORTFOLIO COMPANIES BlueNalu The LIVEKINDLY co VitroLabs Meatable • Seed extension investment at • Series A investment at pre- • Seed investment at cash-in • Valuation Cap of USD 25 pre-money valuation EUR 40 money valuation USD 40 valuation million million million • 1.5% ownership • 6.15% ownership
Slide 25: Portfolio Companies
PORTFOLIO COMPANIES New Age Meats LegenDairy Foods Galy Tropic Biosciences • Seed investment at pre- • Valuation pre-money EUR 12 • Valuation cap USD 10 million • Valuation pre-money USD 70 money valuation USD 4.7 million million million • 6.3% equity ownership • 4.4% equity ownership • 2.95% equity
Slide 26: Portfolio Companies
PORTFOLIO COMPANIES Shiok Meats Rebellyous Foods Oritain Bond Pet Foods • Valuation Cap of USD 22 • Valuation Cap of USD 17 • Valuation pre-money NZD 44 • Valuation Cap of USD 3.75 million million million million • 2.27% ownership* • 1.23% ownership • 1.1% equity ownership • 4.0% ownership* • The fi
Slide 27: Conscious Consumption
CONSCIOUS CONSUMPTION Global Climate Change and Sustainability Awareness
Slide 28: Benefits of Alternative Proteins
BENEFITS OF ALTERNATIVE PROTEINS Environmental Comparison Environment Greenhouse Gases Water HumanHealth 70% of All Antibiotics Produced Are Used in Farming* Energy 3% 10% Land Use 2% 1% 3 48% 54% 4% 7% 30% Conventionally Cultured Beef Plant-based Protein 70% Farmed Beef Nearly 50% of Study Particip
Slide 29: Record Demand is Causing Crises
RECORD DEMAND IS CAUSING CRISES Total Per Capita Meat Consumption To Meet the World’s Seafood Demand, Aquaculture Production Would Have to Increase by 100% from 2006 to 2030 140 Figures in millions of metric tonnes person measured in kg per year Average total meat supply per 120 100 94 Global popula
Slide 30: Environmental Issues
ENVIRONMENTAL ISSUES Overuse of Water in Meat Production Deforestation for Animal Feed Crops New IPCC report: reducing deforestation is critical to mitigating climate change Nearly half of all water used in the US-China trade war has contributed to increased Chinese 50% imports of Brazilian soy; 71%
Slide 31: Carbon Footprint of Foods
CARBON FOOTPRINT OF FOODS Amount of greenhouse gases in fresh foods (in kg CO2-eq/kg) Beef* Lamb* Cheese Shrimp 26.61 kg 25.58 kg 7.80 kg 8.55 kg Ruminant livestock (beef and lamb) is the most emissions-intensive food we consume due to the methane gas produced by the animals Chicken* Fish* 3.65 kg 3
Slide 32: Regulation Catching Up
REGULATION CATCHING UP EU USA US – joint regulatory framework Definition of ‘meat’ – “Skeletal muscles of SGP announced November 2018 between mammalian and bird species recognised FDA & USDA as fit for human consumption with naturally included or adherent tissue.” Definition of a ‘meat food product’
Slide 33: Cost Reduction & Moo's Law
COST REDUCTION & MOO’S LAW $400 $376.80 Cultivated meat’s most expensive input is growth media – at present 99% of total inputs excluding labour $350 Two growth factors, FGF-2 and TGF-β are particularly expensive $300 GFI scenario analysis shows clear path to cost Cost Reduction competitiveness with
Slide 34: Food Safety – Supply Chain Contamination
FOOD SAFETY – SUPPLY CHAIN CONTAMINATION Centre for Disease Control and Prevention estimates that 1 in 6 Americans get sick each year from foodborne diseases Fishery and seafood products accounted for the largest proportion of import shipments refused by the FDA Conventional • Antibiotics • Bacteria
Slide 35: Agronomics Limited
AGRONOMICS LIMITED 18 Athol Street Douglas, Isle of Man IM1 1JA +44 (0) 1624620711 info@agronomics.im