Slide 1: H2 2021 Operational Update
Making Earth Green Again – to foster the prosperity of life H2 2021 Operational Update Operational Updates for the second half 2021 Desert Control AS 1
Slide 2: To foster the prosperity of life
to foster the prosperity of life 1M km2 2030 Cultivate and green Contribute to sustainable social Establish a social impact 1oo Million Hectares impact, immense water savings initiative throughout Sub of degraded land and and balanced climate with Sahara by 2025 to reduce desert by 2030 carbon seque
Slide 3: About Desert Control
ABOUT DESERT CONTROL HIGH-LEVEL COMPANY OVERVIEW | FOCUS AND SOLUTION AREAS FOCUS § Desert Control specializes in climate-smart agriculture technology to combat desertification, soil degradation, and water scarcity 12 million hectares of fertile land perish to Less than 60 years left for global agri
Slide 4: Agenda | H2 2021 Operational Update
AGENDA | H2 2022 H2 2021 OPERATIONAL UPDATE | COMPANY PRESENTATION HIGHLIGHTS QUESTIONS AND OUTLOOK AND ANSWERS Q&A Ole Kristian Sivertsen Moderator Chief Executive Officer Webcast Session 4
Slide 5: Highlights | H2 2021
HIGHLIGHTS | H2 2021 FROM START-UP TO SCALE-UP BACKED BY A SOLID FINANCIAL POSITION CORPORATE TECHNOLOGY COMMERCIAL DEVELOPMENT AND OPERATION AND MARKET § Established Desert Control Americas as a § 3X increase in LNC production capacity § Successfully executed stage two of the wholly owned company i
Slide 6: Expansion to the U.S.
EXPANSION TO THE U.S. CALIFORNIA, ARIZONA, NEVADA, AND NEW MEXICO AS INITIAL TARGET MARKET 6
Slide 7: The Mawarid Desert Control Partnership
THE MAWARID DESERT CONTROL PARTNERSHIP STRATEGIC PARTNERSHIP IN THE MIDDLE EAST 7
Slide 8: The Mawarid Desert Control Partnership
THE MAWARID DESERT CONTROL PARTNERSHIP STRATEGIC PARTNERSHIP TO SERVE THE ENTIRE UAE MARKET AND WIDER MIDDLE-EAST, NORTH AFRICA REGION ABOUT MAWARID § Manage agriculture, forests, green landscapes and natural resources on large scale – 11,000 employees – 3,000 vehicles, specialty equipment, and mach
Slide 9: Technology and Operation
TECHNOLOGY AND OPERATION 3X INCREASE IN LNC PRODUCTION CAPACITY DEFINITIONS § LNC production unit: mobile factory for in-situ LNC production § Cluster: 4 units § Capacities: – 15,000 l/h per unit – 60,000 l/h per cluster PRODUCTION CAPACITY DEVELOPMENT PRODUCTION CAPACITY FORECAST (EOY) 200 000 1 80
Slide 10: Organizational Development | H2 2021
ORGANIZATIONAL DEVELOPMENT | H2 2021 5X GROWTH OF THE ORGANIZATION FTE DEVELOPMENT 80 70 60 Estimate EoY 50 USA - Technology 40 USA - Administration UAE - Sales & Marketing 30 UAE - Operations UAE - Technology 20 UAE - Administration Norway - Technology 10 Norway - Administration 0 3 4 1 2 3 4 1 2 3
Slide 11: New R&D Center in Norway
NEW R&D CENTER IN NORWAY THE CENTER WILL SERVE AS THE COMPANY’S GLOBAL INNOVATION LAB 11
Slide 12: EXPO 2020 Highlights
EXPO 2020 HIGHLIGHTS DUBAI, UNITED ARAB EMIRATES, 1 OCTOBER 2021 – 31 MARCH 2022 DESERT CONTROL AT EXPO 2020 § Desert Control is featured at the “Good Place Pavilion” in the Opportunity District § The “Plantar Project” is a specific landscaping plot in the “Good Place Pavilion” allocated to Desert C
Slide 13: Outlook | Focus and Ambitions for H1 2022
OUTLOOK | FOCUS AND AMBITIONS FOR H1 2022 CONTINUED OPERATIONAL SCALE-UP TARGETING FULL-SCALE COMMERCIALIZATION IN 2022 KEY OBJECTIVES FOR THE FIRST HALF INCLUDE: § Successfully establish the new sales and distribution company in partnership with Mawarid § Convert pilots and strategic opportunities
Slide 14: Agenda | H1 2021
AGENDA | H1 2021 H1 2021 REPORT AND FINANCIAL RESULTS | COMPANY PRESENTATION HIGHLIGHTS QUESTIONS AND OUTLOOK AND ANSWERS Q&A Ole Kristian Sivertsen Moderator Chief Executive Officer Webcast Session 14
Slide 15: Cautionary Note
CAUTIONARY NOTE DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS By reading this company presentation (the “Presentation”) or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentat
Slide 16: To foster the prosperity of life
to foster the prosperity of life 1M km2 2030 Cultivate and green Contribute to sustainable social Establish a social impact 1oo Million Hectares impact, immense water savings initiative throughout Sub of degraded land and and balanced climate with Sahara by 2025 to reduce desert by 2030 carbon seque
Slide 17: Desert Control Company Presentation
APPENDIX H1 2021 REPORT AND FINANCIAL RESULTS DESERT CONTROL COMPANY PRESENTATION 17
Slide 18: Vision, Mission & Values
VISION, MISSION & VALUES OUR PURPOSE | THE REASON WHY WE EXIST AND OUR VALUES OUR MISSION OUR VISION § Our mission is to combat § Our vision is making earth green again desertification, land degradation, and – Desertification, loss of fertile soil, water scarcity and growing water scarcity are – Res
Slide 19: Population growth driving increased demand for food and water
POPULATION GROWTH DRIVING INCREASED DEMAND FOR FOOD AND WATER WATER DEMAND EXPECTED TO EXCEED RELIABLE WATER SUPPLY BY 40% IN 2030 INCREASING POPULATION… …NEEDS MORE FOOD AND WATER… …WATER SHORTAGE EXPECTED TO BE SUBSTANTIAL (billion people) Food production (billion m2 of water) -40% required to inc
Slide 20: UN has declared desertification the greatest environmental challenge
UNITED NATIONS HAS DECLARED DESERTIFICATION AND LAND DEGRADATION THE GREATEST ENVIRONMENTAL CHALLENGE OF OUR TIME 110 1.3Bn 12m Countries exposed to People trapped on hectares productive desertification and degrading land becomes land degradation agricultural land barren every year $490Bn annual cos
Slide 21: Problem – Impact way beyond the traditional deserts
PROBLEM – IMPACT WAY BEYOND THE “TRADITIONAL DESERTS” 59% of territory with a higher or medium sensitivity to desertification 2008 74% of territory at risk of desertification +50% of mainland at risk of desertification 2017 99% of territory vulnerable to desertification Source: Pravalieet al., Quant
Slide 22: 70% of freshwater in the world is used for agriculture
70% OF FRESHWATER IN THE WORLD IS USED FOR AGRICULTURE CURRENT APPROACHES IN AGRICULTURE YIELD LOW WATER EFFICIENCY GAINS SHARE OF FRESHWATER WITHDRAWLS BY SECTOR (%) 2% 6% 5% 7% 11% 9% 16% 15% • The shortfall between demand 17% 34% Domestic and supply of water is estimated 12% to be 40% by 2030 • A
Slide 23: Desert Control's LNC treatment is part of the solution
DESERT CONTROL’S LNC TREATMENT IS PART OF THE SOLUTION ENRICHES THE FERTILITY CAPABILITY IN DESERT SAND – LOWER WATER USAGE AND IMPROVED SOIL HEALTH 1. UNIQUE FORMULATION PROCESS Clay is processed into a liquid compound 2. SPRAY ON Applied directly to sand or arid soil 3. EFFECT Forms a soil structu
Slide 24: Patented process based on 12 years research
PATENTED PROCESS BASED ON 12 YEARS RESEARCH LIQUID NATURAL CLAY («LNC») PREMISE DESERT CONTROL’S PATENTED LNC PROCESS KNOWLEDGE BASED STRATEGY Clay-rich soil retains water Natural clay is turned into a liquid nearly as thin as water • Each clay type has unique properties effectively and has high res
Slide 25: Unique product offering with no direct competitor
UNIQUE PRODUCT OFFERING WITH NO DIRECT COMPETITOR SUBSTITUTES AND OTHER METHODS FOR SOIL ENHANCEMENT ARE INTRUSIVE, TIME CONSUMING AND COSTLY DESERT CONTROLS LNC PROCESS IS THE ONLY NON-INTRUSIVE SOIL LNC’S ADVANTAGES ENHANCEMENT OPTION INTRUSIVE NON-INTRUSIVE (mechanical/manual intervention) (self-
Slide 26: Proven, validated and patented
PROVEN, VALIDATED AND PATENTED MULTI-YEAR FIELD TRIALS EGYPT - BEFORE AND AFTER APPLICATION OF LNC SCIENTIFIC ACCREDITATION BY ICBA UAE, AL AIN AFTER APPLICATION OF LNC Source: International Center for Biosaline Agriculture; https://www.biosaline.org 26
Slide 27: The results – UAE desert example
THE RESULTS – UAE DESERT EXAMPLE ü Less than 1kg of clay per m2 ü Water and fertilizer savings (20-50%) Before ü Increased crop yields (17-62%) ü Improved soil, biodiversity, and carbon uptake CROP YIELD INCREASE 62% After 28% 17% Pictures: Transformation of UAE desert land Mar - Sep 2020 Zucchini P
Slide 28: LNC identified as a potential impact solution by the UN
LNC IDENTIFIED AS A POTENTIAL IMPACT SOLUTION BY THE UNITED NATIONS THE GREATEST CHALLENGE OF OUR TIME: THE GREAT GREEN WALL RECEIVED OVER $14 BILLION IN DONATIONS TO REGREEN THE SAHEL RESTORE 100 MILLION – WORLD BANK AMONG DONORS HECTARES OF DEGRADED LAND SEQUESTER 250 MILLION TONNES OF CARBON CREA
Slide 29: Liquid Natural Clay | ESG and impact potential
LIQUID NATURAL CLAY | ESG AND IMPACT POTENTIAL EXPECTED TO PLAY A VITAL ROLE IN SUSTAINABLE DEVELOPMENT FROM A FINANCIAL AND AN ESG PERSPECTIVE ADDRESSING KEY UN SUSTAINABLE In a conservative estimate of $20 /t this translates to $280Bn of annual cost DEVELOPMENT GOALS ~49 Global GHG emissions (Gt)
Slide 30: ESG and Impact
ESG AND IMPACT IMPACT ON EXTERNAL ENVIRONMENT AND SUSTAINABILITY Liquid Natural Clay (LNC) can reduce water consumption for agriculture, forests, and green landscapes by up to 50%. The amount of water required to produce LNC is recovered within 2-3 weeks (offset by irrigation water savings). Increas
Slide 31: About Desert Control
ABOUT DESERT CONTROL COMPANY OVERVIEW Desert Control is a company specialized in climate-smart agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay restores and protects soil, reducing water usage for agriculture, forests, and green la