S&W Seed Company · OTC:SANW
S&W Seed — Investor Presentation (March 2023)
28 slides from S&W Seed's investor presentation, Mar 13, 2023
Slide 1: S&W Seed Company March 2023
S&W Seed Company (Nasdaq: SANW) March 2023
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements S&W Seed Company (Nasdaq: SANW) This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements ar
Slide 3: Key Centers of Value and Strategic Review
Key Center of Value #1 U.S. Sorghum Technology Higher-margin proprietary business with higher-value Double Team expected to lead growth and profitability going forward. Key Center of Value #2 International Forage/Alfalfa Historically profitable, lower-margin business where S&W has strong customer ba
Slide 4: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook1 4 4 S&W Seed Company (Nasdaq: SANW) Strong operational improvement expected in FY 2023 Revenue Growth Est. FY 23 Growth +12% to +29% Gross Margin Expansion YTD FY 2023 +510 basis points Operating Expense Reduction Est. FY 23 $5 Million Savings Adjusted EBITDA Impro
Slide 5: Core Crop Portfolio
Core Crop Portfolio 5 S&W Seed Company (Nasdaq: SANW) Diversified middle market agricultural platform Alfalfa/ Forage Hybrid Sorghum (Double Team) Camelina (JV with Shell) Stevia (Agreement with Ingredion) Wheat (JV with Trigall Genetics) Pasture Products
Slide 6: U.S. Sorghum Technology Double Team
6 U.S. Sorghum Technology Double TeamTM (DT) solution is S&W’s first innovative sorghum technology DT has the potential to revolutionize the sorghum market in the same way other weed control technologies have enhanced yields for crops such as corn, soybeans and cotton Initially launched in grain sor
Slide 7: U.S. Sorghum Technology Novel Commercial Trait Products
U.S. Sorghum Technology Novel Commercial Trait Technology Products 7 www.swseedco.com Double Team™ Grain Sorghum Double Team™ Sorghum is the best over-the-top grass control trait on the market Prussic-Free Sorghum Prussic-Free Sorghum removes naturally toxic metabolite from stressed forage sorghum r
Slide 8: International Forage/Alfalfa
8 International Forage/Alfalfa Proprietary alfalfa seed and pasture products addressing non-U.S. global markets Alfalfa, Medic, Sub Clovers, Annual Clovers, Vetch, Forage Cereals, Grasses and Pasture Species Strong and diversified alfalfa production and distribution One of the largest forage seed bu
Slide 9: U.S. Forage/Alfalfa
9 U.S. Forage/Alfalfa Long dormant alfalfa history Germplasm base purchased from Pioneer® consisting of thousands of unique breeding parents and varieties, with an emphasis on high yield and forage quality, and developing alfalfa varieties with resistance to disease and stress Breeding station and p
Slide 10: Camelina/Biofuels JV with Shell
10 Camelina/Biofuels JV S&W Seed Company (Nasdaq: SANW) JV with Shell (NYSE: SHEL) Worldwide JV (named Vision Bioenergy Oilseeds LLC) with Shell plc (for the purpose of developing novel plant genetics, increasing oil seed cover crop acres and managing the crushing of these new acres for biofuel, gre
Slide 11: Camelina/Biofuels JV Business Model
2 4 11 Camelina/Biofuels JV JV with Shell (NYSE: SHEL) Business Model VBO will apply its plant breeding expertise and molecular biology to improve Camelina seed. VBO starts off by growing camelina seed and cleaning it in the Nampa plant. VBO has its second crop of camelina seed growing now. That see
Slide 12: Wheat JV with Bioceres and Florimond Desprez
12 Wheat JV S&W Seed Company (Nasdaq: SANW) JV with Bioceres (Nasdaq: BIOX) and Florimond Desprez Trigall Genetics, the world leader in wheat biotechnology co-owned by Bioceres Crop Solutions and Florimond Desprez, and S&W Seed Company, entered into a joint venture to advance wheat breeding activiti
Slide 13: Stevia Supply Agreement with Ingredion
13 Stevia S&W Seed Company (Nasdaq: SANW) Pilot production supply agreement with Ingredion Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, and S&W Seed Company exclusive U.S. stevia pilot production supply agreem
Slide 14: Key Highlights
Key Highlights 14 Launch of proprietary non-GMO trait technology (Double Team) expected to transform the operating profile of S&W into a high growth, high margin business 3X growth anticipated in FY 2023 with expected 50%+ gross profit contributions from Double Team for FY 2023 Prussic-Free Sorghum
Slide 15: Financials
Financials
Slide 16: Revenue
16 FY ends June Revenue $92 $80 $ in Millions S&W Seed Company (Nasdaq: SANW)
Slide 17: 2023 Revenue Bridge
17 2023 Revenue Bridge The following is intended to provide a guide as to the potential financial opportunity for the Company. While subject to risk and uncertainty, and the Company’s performance as compared to various estimates and assumptions, we believe the following provides useful insight into
Slide 18: Adjusted EBITDA
18 Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure; for further information, see "Non-GAAP Financial Measures" in the appendix. Reconciliation of historical Adjusted EBITDA is included in the appendix to this presentation $ in Millions ($7.0) ($2.0) FY ends June S&W Seed Company (Nas
Slide 19: 2023 Adjusted EBITDA Bridge
19 2023 Adjusted EBITDA Bridge The following is intended to provide a guide as to the potential financial opportunity for the Company. While subject to risk and uncertainty, and the Company’s performance as compared to various estimates and assumptions, we believe the following provides useful insig
Slide 20: Selected Balance Sheet
Selected Balance Sheet 20 ($ in Millions) 6/30/20 6/30/21 6/30/22 12/31/22 Cash and cash equivalents $4.1 $3.5 $2.1 $1.3 Accounts receivable, net $19.0 $19.4 $19.1 $24.1 Inventory $63.9 $64.4 $54.5 $53.0 Total assets $156.0 $151.5 $133.8 $134.2 Working capital lines $27.0 $33.9 $34.4 $41.4 Other deb
Slide 21: Significant Trait Technology Development and Commercialization Experience
Significant Trait Technology Development and Commercialization Experience 21 Mark Wong, S&W Seed Company CEO 40+ years of experience in agriculture as a senior executive Successfully built, operated, and sold multiple seed technology companies to industry leaders across multiple crops, including sor
Slide 22: Management
Management 22 Elizabeth (Betsy) Horton CFO 25 years of Ag Industry experience including 20 years with Cargill Mark Wong CEO and Director 40 years in Agribusiness CEO of 4 other companies previously Cameron Henley Managing Director – International 20+ years of international seed industry experience B
Slide 23: Board of Directors
Board of Directors 23 Mark Harvey Founding Partner of S&W Seed Company Australia, retired Mark Wong CEO, S&W Seed Company Alex Matina Portfolio Manager at MFP Investors LLC Alan Willits Chairman of the Board Former Chairman of Cargill Asia Pacific and Lead Cargill's Agriculture Supply Chain (retired
Slide 24: Appendix
Appendix
Slide 25: Non-GAAP Financial Measures
25 Non-GAAP Financial Measures S&W Seed Company (Nasdaq: SANW) Non-GAAP Financial Measures In addition to financial measures included in this presentation that are calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company has provide
Slide 26: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA 26 2019 2020 2021 2022 Net Income $(9,305.2) $(19,674.3) $(19,171.0) $(36,395.4) Restructuring charges 202.2 - - Non-recurring acquisition related expenses 1,196.5 793.0 20 - Depreciation and amortization 4,128.5 5,036.5 5,469.6 5,460.3 Impairment Charges 17,900.6 - - 1,548.
Slide 27: FY 2019/FY 2020 Non-GAAP Adjustments
FY 2019/FY 2020 Non-GAAP Adjustments 27 Reconciliation of Non-GAAP Financial Measures (UNAUDITED) S&W Seed Company (Nasdaq: SANW)
Slide 28: FY 2021/FY 2022 Non-GAAP Adjustments
FY 2021/FY 2022 Non-GAAP Adjustments 28 Reconciliation of Non-GAAP Financial Measures (UNAUDITED) S&W Seed Company (Nasdaq: SANW)