Aquabounty Technologies, Inc. · NASDAQ:AQB
Aquabounty Technologies — Investor Presentation (February 2020)
31 slides from Aquabounty Technologies's investor presentation, Feb 3, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION Sylvia Wulf, President and CEO David Frank, CFO and Treasurer AquaBounty Technologies, Inc. February 2020 AquaBounty.com 1
Slide 2: Forward-Looking Statements Safe Harbor Statement
Forward-Looking Statements Safe Harbor Statement 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. All statements other than statements of historical f
Slide 3: Legal Matters
Legal Matters Legal Matters Statement We have filed a registration statement on Form S-1 (including a prospectus) with the SEC for the offering to which this communication relates. Such registration statement has not been declared effective by the SEC as of the date hereof. Before you invest, you sh
Slide 4: Offering Summary
Offering Summary Issuer: AquaBounty Technologies, Inc. Ticker Symbol: Nasdaq: AQB Offering: Publicly Marketed Equity Offering Size: Approximately $10 million plus 15% overallotment (100% primary) Securities: Shares of Common Stock (fully registered) Market Cap.:* $45.7 million Shares Out./Share Appr
Slide 5: AquaBounty: Leaders in Aquaculture and Biotechnology
AquaBounty: Leaders in Aquaculture and Biotechnology Company Profile Key Milestones Headquarters: Maynard, MA Total Employees: 61 1989 – First AquAdvantage Salmon “AAS” line RAS Farms: Albany, Indiana and Prince created Edward Island, Canada 1995 – Regulatory approval process begins for AAS . Pionee
Slide 6: Investment Highlights
Investment Highlights Large Growing Global Salmon Market . Global Atlantic salmon market totals $16.7B¹ and the U.S. salmon market is the largest market . Fresh salmon demand outstrips current wild and farmed supply AquaBounty Technologies, Inc. . Global population growth expected to double protein
Slide 7: Experienced Management Team
Experienced Management Team Sylvia Wulf Alejandro Rojas Angela Olsen President and CEO Chief Operating Officer General Counsel Ms. Wulf has a reputation Dr. Rojas is a renowned Ms. Olsen is an as a proven leader and expert in salmon farming. experienced legal advisor accomplished executive His areas
Slide 8: Current Market Environment
Current Market Environment AquaBounty.com 8
Slide 9: Population Growing. Demand Increasing.
Population Growing. Demand Increasing. . Global population projected at 9 billion people by 2050 - 28% growth in 30 years* . An increasing middle class in geographies with significant growth creates a demand for protein . Current seafood supply cannot keep up with increasing demand . New technologie
Slide 10: What worked before won't work in the future!
What worked before won’t work in the future! . 60% decline in the size of populations of mammals, birds, fish, reptiles, and amphibians in 40 years, according to World Wildlife Fund’s Living Planet Report 2018 . 90% of world's fisheries are fully fished or overfished, according to FAO’s The State of
Slide 11: Overall Protein Demand and Consumption to Double by 2050
Overall Protein Demand and Consumption to Double by 2050 . Protein is at the heart of the global food Seafood is more efficient to grow than issue and despite supply constraints, other animal proteins due to a more protein consumption is predicted to favorable Feed Conversion Ratio (“FCR”) double by
Slide 12: Salmon is a Global and Compelling Market within Aquaculture
Salmon is a Global and Compelling Market within Aquaculture . Salmon is a rich source of protein and provides essential amino acids and critical nutrients including Omega-3 EPA/DHA . Helps eliminate skin diseases . Strengthens the immune system . Provides long-term energy . Helps in the building/rep
Slide 13: Atlantic Salmon – Large Market With Inefficient Supply Chain
Atlantic Salmon – Large Market With Inefficient Supply Chain Land Based RAS Farming Has Potential to Disrupt The Industry 3-6 Days . Inefficient supply chain – current NORWAY, FAROE IS. Kt sea-cage operations highly ICELAND Harvest 1,403 dependent on-air freight RUSSIA kt Market 54 NORTH AMERICA kt
Slide 14: Atlantic Salmon Competitive Landscape
Atlantic Salmon Competitive Landscape . Salmon farming competition is primarily in sea cages and land-based farming . Growing momentum in land-based salmon farming projects has the potential to disrupt the industry U.S. RAS Farms In Production International Sea-Cage Operations Indiana – 1,200 mt, Fi
Slide 15: The AquaBounty Solution
The AquaBounty Solution AquaBounty.com 15
Slide 16: Three-step solution to addressing the Seafood Gap
We embrace a three-step solution to addressing the Seafood Gap. Rapidly accelerate salmon production by growing salmon more efficiently, more quickly and more sustainably. Use genetically engineered Shift salmon production Use fresh-water tanks and salmon for faster growth to to land-based technolog
Slide 17: Better for the Environment. Better for the Fish.
Better for the Environment. Better for the Fish. Enhanced Benefits of Controlled Operations Compared To Sea-Cage Farming Improved Fish Survival Faster growth during most vulnerable stages of fish lifecycle Lower Carbon Footprint Less Feed Used Greater than 95% water recycled 25% improvement in Feed
Slide 18: Operational Expertise is a Competitive Strength and Differentiator
Operational Expertise is a Competitive Strength and Differentiator Recirculating Aquaculture Systems (“RAS”) are more timely and relevant than ever before . Land-based RAS salmon farming confines the fish to indoor tanks inside a large building, eliminating interactions between the farmed fish and t
Slide 19: Uniquely Positioned in Aquaculture
Uniquely Positioned in Aquaculture . AquaBounty is a thought leader in aquaculture . At the center of our sustainable farming production are two breakthrough innovations: modern genetics and operational expertise in RAS production systems . A pioneer with 25 years of operational expertise . Revoluti
Slide 20: Biomass Growth KPI's Exceeding Expectations
Biomass Growth KPI’s Exceeding Expectations . AquaBounty Conventional and Farm Fish Type Status Lbs Weight Biomass Harvest AquAdvantage Salmon show growth rates Indiana Conventional Growers 120,500 1,200 (g) 152 T Q3 2020 on or ahead of target Indiana AAS Salmon Fry 54,750 140 (g) 7.7 T Q4 2020 Eyed
Slide 21: Pillars of Innovation Will Deliver Meaningful Solutions
Pillars of Innovation Will Deliver Meaningful Solutions For Decades Salmon Genetics Additional RAS Technology Nutrition and Species Enhancements Disease Improving and delivering Land-based aquaculture Better feed formulations o Expand product offerings o o enhanced salmon traits: with new marine spe
Slide 22: Anticipated Timeline and 2020 Commercial Launch
Anticipated Timeline and 2020 Commercial Launch Q1 2020 Q2 2020 Q3 2020 Q4 2020 2021+ . Complete equity . Continue conversations . Potential processors . First harvest of AAS in . Significantly scale financing with potential and customer Indiana expected Q4 operations . Communications and processors
Slide 23: Exploring North American Farm Expansion to Scale Operations
Exploring North American Farm Expansion to Scale Operations Ontario Canada New Farm Selection Criteria . Availability of adequate, clean water supply . Low electricity rates . Location close to consumption/major population centers . Access to available and quality labor pools . Supportive political
Slide 24: Negotiations Underway With Global Expansion Partners
Negotiations Underway With Global Expansion Partners Israel • Conversations continue Strong interest from Israel with expansion partners in South America, Asia and the Middle East • Targeting high volume/strategic Net Import markets to include: China o China: 198,000 mt Approved for field trials in
Slide 25: Key Financial Metrics
Key Financial Metrics AquaBounty.com 25
Slide 26: AquAdvantage Salmon Economics vs. Conventional Salmon
AquAdvantage Salmon Economics vs. Conventional Salmon Throughput increase leverages site infrastructure Improved feed conversion by ~25% reduces feed costs Faster growth to harvest weight (> 4kg) results in 1.7X increase in harvest Feed is the biggest AquAdvantage production cost EBITDA 18-20 mo’s v
Slide 27: Profitable at Scale with both Conventional and AquAdvantage Salmon
Profitable at Scale with both Conventional and AquAdvantage Salmon Conventional AquAdvantage Conventional and AquAdvantage Both Profitable . Precision farming in conjunction with our technical points of Annual output 5,000 mt 8,550 mt difference ensure consistency in supply and cost Annual $34m - $3
Slide 28: Recent Capitalization Data
Recent Capitalization Data Balance Sheet Data ($ 000's) 9/30/2019 Cash & Equivalents $6,426 Total Assets $32,959 Debt $4,547 Stockholders’ Equity $26,880 Market Cap $54,013 Enterprise Value $52,134 Cash & equivalents at December 31, 2019 = $2.8m Shares outstanding at January 29, 2020 = 21.6m Share p
Slide 29: Current and Long-Term Growth Targets
Current and Long-Term Growth Targets . Production output growth Production Output (mt) target = 50,000 mt . Assumes 4 to 5 new farms 51 44 . Cost per farm estimated at $75 - $100 million each 34 for construction . Contribution margin % per 24 farm of 37% - 40% 14 . Payback period per farm of 4–5 yea
Slide 30: Summary
Summary Large Growing Global Salmon Market Expertise and Technology Attractive Business Model and Unit Economics Commercialization and First Harvests on Track for 2H 2020 Strong Management Team AquaBounty.com 30
Slide 31: Let's Have a Conversation
Let’s Have a Conversation AquaBounty uses next-generation land-based aquaculture technology that supports ocean conservation and provides consumers with regional access to nutritious, fresh and affordable salmon with no added antibiotics. Sole Underwriter AquaBounty Lake Street Capital Markets, LLC
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