Local Bounti Corporation · NYSE:LOCL
Local Bounti — SPAC Merger (October 2021)
36 slides from Local Bounti's SPAC merger presentation, Oct 13, 2021
Slide 1: Investor & Analyst Day Presentation
Investor & Analyst Day Presentation October 13, 2021 ©2021 Local Bounti Corporation
Slide 2: Disclaimer
Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Local B
Slide 3: Disclaimer
Disclaimer NO OFFER OR SOLICITATION This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote in any jurisdiction pursuant to the Business Combination or other
Slide 4: Today's Presenters
Today’s Presenters Craig Hurlbert Travis Joyner, JD, PhD Kathleen Valiasek Mark McKinney Dave Vosburg Co-CEO Co-CEO CFO COO CIO § Managing Partner at § Managing Partner at § Former CFO, Chief § Former COO of § Former CFO of Crop Brightmark Partners Brightmark Partners Business Officer at Fruit Growe
Slide 5: Leo Holdings III Corp. Overview
Leo Holdings III Corp. Overview Officers Who We Are Local Bounti Investment Thesis Ed Forst, Chairman Leo Holdings III Corp. (NYSE: LIII.U; “Leo”) is a $275 million publicly traded DISRUPTIVE 38+ years of operating & financial experience, having held C-suite Special Purpose Acquisition Company (SPAC
Slide 6: Transaction Summary
Transaction Summary Transaction Size • $275MM cash in trust from Leo Holdings III Corp. (NYSE:LIII.U) • $125MM PIPE proceeds Valuation • ~$760MM pro forma enterprise value1 • 1.6x 2025E revenue and 3.9x 2025E EBITDA2 • Attractive valuation vs. recent other controlled environment agriculture peers Ca
Slide 7: Industry Overview
YK Local Section 1 =Y) bounti Industry Overview
Slide 8: Traditional Agriculture Is in Need of a Transformation
Traditional Agriculture Is in Need of a Transformation Imminent Agriculture Crisis The world will need ~70% more food to feed the global population in 2050, yet there will not be enough arable land and water to sustain traditional agriculture to meet these needs 1-in-4 200k 60% People globally are D
Slide 9: Controlled Environment Agriculture Is the Future of Farming
Controlled Environment Agriculture (“CEA”) Is the Future of Farming CEA Is Disrupting Conventional Agriculture Key Advantages to CEA Zero Residue Up to 90% Up to 90% Year Round Shorter Transit Time Lower Greenhouse Pesticides / Reduction in Water Reduction in Land Production to Retailer Gas Emission
Slide 10: Local Bounti Is Addressing a Significant Market Opportunity
Local Bounti Is Addressing a Significant Market Opportunity One of the largest sustainability-related impacts CEA offers is drastic food waste reduction CEA Market Opportunity CEA’s fresh focus and local Traditional Agriculture Local Bounti branding enable it to capture significant market share for
Slide 11: Outdoor Grown Agriculture is Failing Us
Outdoor Grown Agriculture is Failing Us Triple washed outdoor DID YOU KNOW conventional & organic Chemical bath followed by salt bath: product residuals • Chlorine Dioxide • Peroxyacetic Acid • Calcium Hypochlorite • Sodium Hypochlorite • Peracetic Acid Bacteria Mold Yeast Pesticides High • Ozone So
Slide 12: Why We Started Local Bounti
Why We Started Local Bounti ü Travis and Craig wanted to invest in CEA, but could not find the ideal existing business after performing due diligence ü They became very excited to start with a “clean sheet” and to build a business with long-term CEA leadership in mind ü Existing CEA participants wer
Slide 13: Company Overview
Company Over Local | bounti i — == —=
Slide 14: Operationally and Commercially Established
Operationally and Commercially Established Key Highlights Proven Credibility 2025 $462MM Strategic Partner Strong Retail Presence Projected Revenues Nevada4 Now in over 500 stores 2023 1Q23 Colorado4 3Q22 Pasco, WA4 2022 2Q22 Closed $200M debt Montana Facility facility in Q3 20215 Expansion Complete
Slide 15: Local Bounti's Differentiated Approach
Local Bounti’s Differentiated Approach Unit Economics Local, Distributed & Brand and Sustainable Logistics Strategy Product Diversity ü Achieves superior production unit ü Security of year round supply of ü Strong retailer and customer loyalty ü Mission-driven for sustainability and economics throug
Slide 16: Local Bounti Has Strong ESG Alignment
Local Bounti Has Strong ESG Alignment Local Bounti exhibits exceptional ESG performance, directly addressing over half of the U.N. Sustainable Development Goals ü SDG 2: Enables access to fresh food ü SDG 6: 90% less water usage as compared to conventional agriculture ü SDG 7: Energy-efficient facil
Slide 17: Farm of the Future: Unit Economics Drove Our Patented Facility Design
Farm of the Future™: Unit Economics Drove Our Patented Facility Design Vertical Farm 2 1.5x-2.0x EFFICIENCIES Comparable yield ü Yield Stack 40+ ü Cost + Flow SKUs Optimal production ü Capital potential Combining the best of ü Product Greenhouse vertical and greenhouse 3 ü Resource growing technolog
Slide 18: Retail: Current Go-to-Market Diversified Product Offerings
Retail : Current Go-to-Market Diversified Product Offerings Leafy Greens Living Lettuce Living Herbs $ Turns Lbs UOS Unit Economics Green Leaf, Red Leaf, Butter, Romaine, Spring Mix Butter Lettuce Basil, Cilantro 16 days1 28 days2 16-21 days Crop Cycle Greenhouse Greenhouse 24 days 50+ days 38 days
Slide 19: Attractive Facility Unit Economics
Attractive Facility Unit Economics Local Bounti 2025 Annualized Revenue Build Up Facility Economics1 Capital efficiency is 3.0x Capital Cost to EBITDA $40.0 $24.1 $2.9 $1.5 $5.2 $1.3 $13.2 Capital Cost Net Revenue Labor Cost Utilities Cost Other Cost 2 Crop SG&A Facility EBITDA Competitor’s Illustra
Slide 20: Deep-Rooted Quality from Right Next Door
Deep-Rooted Quality from Right Next Door Product Offering • Living Herbs • Basil • Cilantro OUR BRAND • Living Lettuce • Butter PROMISE • Leafy Greens • Green Leaf • Red Leaf • Butter • Romaine • Spring Mix 20
Slide 21: Delivering Results!
Delivering Results! Local Bounti is a first mover and already in distribution, currently providing delicious, fresh produce at over 500 local retail locations “Local Bounti and Cargill share a commitment to “Local Bounti and its delivering farm to fork “Local Bounti provides a products hit the mark
Slide 22: Highly Experienced Management Team
Highly Experienced Management Team Management team with proven track record backed by deep industry knowledge Craig Hurlbert Travis Joyner Kathleen Mark McKinney Josh White Dave Vosburg JD, PhD and diverse set of core competencies Co-CEO Co-CEO Valiasek COO CMO CIO CFO differentiate the Local Bounti
Slide 23: Investment Highlights
Section 3 Investment Highlights
Slide 24: Local Bounti Was Founded with Hyper-focus on Unit Economics
Local Bounti Was Founded with Hyper-focus on Unit Economics Thoughtful Execution Strategy to Enhance Value for All Stakeholders Yield • Enabling Tech • Hybrid Vertical/Greenhouse Resource • Energy • Footprint Cost • COGS driven by scale • Capital Logistics • Fewer Food Miles • Cold Chain People • Co
Slide 25: Differentiated Value Proposition to the Market
Local Bounti – Differentiated Value Proposition to the Market Technology-driven Approach Key Figures Local Bounti is investing in technology and genetics, boosting profitability operational plant and improving products for consumers 1 producing food and revenue production expansion of 140% operation
Slide 26: Rapid Scaling with Turnkey Modular Approach
Rapid Scaling with Turnkey Modular Approach Status Update Pre-engineered, Off-the-shelf Construction and Technology to Ensure Low Execution Risk January 2021 July 2021 Modular Build-out Technology Clear Path to Expected Build- Multi-faceted Control Center Technology Suite out of Three Facilities by
Slide 27: Expected High Market Capture with Superior Product / Branding
Expected High Market Capture with Superior Product / Branding Currently, CEA has a limited focus on markets west of the Mississippi or in the Pacific Northwest, which provides Local Bounti the $30bn opportunity to expand into valuable markets 2025 U.S. Vegetable and Herb TAM1 as the first mover in t
Slide 28: Expected High Market Capture with Broad Product Offering
Expected High Market Capture with Broad Product Offering Local Bounti’s branded strategy is enabled by high product diversity that captures more in-store real estate Creating New Product Categories CEA competitors only compete in Land (Grab) 25% of the products that Local to capture market in region
Slide 29: Optionality: Current and Future
Optionality : Current and Future Romaine Green Leaf Red Leaf Endive Spinach Arugula Kale Chard Bok Choy Mustard Butter Lettuce Currently growing In trial for 2022 SKU expansion 29
Slide 30: Multiple Pathways for Potential Growth Expansion
Multiple Pathways for Potential Growth Expansion Clear pathways for growth in the medium term by leveraging Local Bounti’s capabilities around R&D, branded strategy and food production International Subscription- New Product & Franchising & Expansion based Service Segment Licensing Rapidly expanding
Slide 31: Summary Financials and Transaction Overview
Section 4 Summary Financials and Transaction Overview
Slide 32: Financial Projections Grounded on Proven Progress to Date
Financial Projections Grounded on Proven Progress to Date Financial Highlights Seeded Plant Sites for Sale Revenue1 (mm of plant sites) # of Facilities ($mm) $60 1 3 7 7 8 8 $60 Revenue Generating Proven Operating $495 490 $462 Today Facility 457 $50 $50 $40 $40 279 $30 $282 $30 $20 $20 Superior Fac
Slide 33: Transaction Sources and Uses
Transaction Sources and Uses Sources Uses All values in $MM All values in $MM Cash to Balance Sheet 314 Leo III Cash in Trust 275 Paydown of Existing Bridge Loan 10 Local Bounti Equity Rollover 608 Secondary Purchase 38 Transaction Expenses 38 PIPE Proceeds 125 Local Bounti Equity Rollover 608 Total
Slide 34: Valuation Benchmarking
Valuation Benchmarking Public CEA Companies High-Growth Healthy-Consumer2 AV / Revenue AV / Revenue AV / Revenue 12.9x 12.2x 5.7x 6.1x 5.3x 3.8x 2.7x 2.6x 2.6x 1.6x 2024 2025 2024 2025 1 2 3 2024 2025 2024 2025 2024 2025 2022 2022 2022 2022 Revenue Growth (%) 232.4 % 63.9% 77.9% 50.0% 201.9% 102.5%
Slide 35: Local Bounti Is a Premier Controlled Environment Agriculture Company
Local Bounti Is a Premier Controlled Environment Agriculture Company Premier Controlled Environment ü Stack & Flow Technology™ Model is Crafted for Disruption Agricutlure (“CEA”) company that ü Exceptional Unit Economics redefines conversion efficiency and ü Local, Sustainable and Superior Brand ESG
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