Desert Control As · OSL:DSRT
Desert Control As — Q4 2023 Earnings Presentation
49 slides from Desert Control As's earnings presentation, 2024
Slide 1: Company Update
Company Update Desert Control AS
Slide 2: In Memory of Kristian P. Olesen
In Memory of Kristian P. Olesen Desert Control wishes to honor the memory of our co-founder and inventor, Kristian P. Olesen, who passed away on 7 January 2024 at the age of 75. Kristian was the visionary inventor behind the groundbreaking Liquid Natural Clay (LNC) technology, conceiving the idea in
Slide 3: Making Earth Green Again
MAKING EARTH GREEN AGAIN
Slide 4: Land degradation and desertification statistics
>20% 52% <60 years Of agricultural land Farming left at the Of Earth's drylands affected by soil current pace of degraded degradation degradation $490 Bn Annual cost 110 1.3Bn 12m world-wide Countries exposed to People trapped on Hectares of desertification and degrading productive land turn land de
Slide 5: Where Water Stress Will Be Highest by 2040
Where Water Stress Will Be Highest by 2040 Projected ratio of water withdrawals to water supply (water stress level) in 2040 eee @ Extremely high | (80%) M High (40-80%) Medium to high | (20-39%) Low to medium j | (10-19%) B® Low (<10%) Source: World Resources Institute via The Economist Intelligenc
Slide 6: The Problem We Solve
THE PROBLEM WE SOLVE Water and nutrients drains very fast Sandy Soil Most of the water and nutrients are lost 6
Slide 7: Our Solution – Liquid Natural Clay (LNC)
OUR SOLUTION – LIQUID NATURAL CLAY (LNC) - - - Sand - Grain - - - - LNC-treated Sandy Soil 7
Slide 8: Results
RESULTS Before After Savings Silicon Oasis, Dubai, UAE 47% water savings Water Energy Fertilizers Increased Returns The University of Arizona, Yuma, U.S. 21-53% yield increase Yield Quality Profit ICBA, Dubai, UAE Up to 62% yield increase 8
Slide 9: Permanent Crops (Dates & Fruit Trees)
PERMANENT CROPS (DATES & FRUIT TREES) “8% yield increase and 21% increase in Grade-A while using 46% less water ” 9
Slide 10: Row Crops (Leafy Greens & Vegetables)
ROW CROPS (LEAFY GREENS & VEGETABLES) “53% increase in yield and water use efficiency combined with higher survival rate of seedlings ” 10
Slide 11: Broad Crops (Wheat, Millets, Corn, etc.)
BROAD CROPS (WHEAT, MILLETS, CORN, ETC.) “40% yield increase and larger grains with higher nutritional value while using 50% less water ” 11
Slide 12: Greenhouses
GREENHOUSES “46% reduction of water usage while maintaining crop yields ” 12
Slide 13: Landscaping
LANDSCAPING “40% reduction of irrigation water usage while maintaining healthier and greener grass ” 13
Slide 14: Tree Planting
TREE PLANTING “Reduction of water requirements and increased survival rates of trees ” 14
Slide 15: Forest Management
FOREST MANAGEMENT “>50% reduction of water usage and increased time between irrigations ” 15
Slide 16: Transforming Desert to Fertile Arable Land
TRANSFORMING DESERT TO FERTILE ARABLE LAND 16
Slide 17: Market
MARKET Initial target markets: U.S. Southwest & UAE/Middle East – sandy soil areas affected by drought, desertification, and water scarcity. $490B $125B Annual cost of soil and land USD spent globally to address The water and fertile land crisis is global, and LNC has potential to degradation world-
Slide 18: Agenda / Q4 2023
Agenda / Q4 2023 Q4 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 & YTD Financials Outlook Questions Highlights and answers 18
Slide 19: Company Update
Company Update CORPORATE UNITED STATES MIDDLE EAST • Ended 2023 with NOK 120M • Secured commitment for five • Executed the final phase of DCME in cash and financial assets. new technical pilots per quarter. transition to the licensing model. • Completed the transition to • Continuing to expand pilot
Slide 20: Company Update
Company Update CORPORATE UNITED STATES MIDDLE EAST • Ended 2023 with NOK 120M • Secured commitment for five • Executed the final phase of DCME in cash and financial assets. new technical pilots per quarter. transition to the licensing model. • Completed the transition to • Continuing to expand pilot
Slide 21: Efficiency and scalability improvements
Efficiency and scalability improvements 2023 LNC PRODUCTION CAPACITY >2X UNITED STATES LNC Production Units Deployed: • 4 X Oasis Units (capacity 30k liter per hour per unit) • 1 X Mirage Unit (capacity 8k liter per hour) PRODUCTION CAPACITY • Total capacity ≈128.000 liter/hour UAE >15 000 / H IMPRO
Slide 22: University of Arizona 5-year Program
University of Arizona 5-year Program • Recent Crop: Desert Control Romaine Trial – Winter 2023/24 • Romaine lettuce winter 2023/24 • Previous romaine rotation: Fall 2022 55% 11% 4% • Preliminary Results: • Average yield increase of LNC treatments A, B, D versus control at 37% with D as the highest a
Slide 23: Company Update
Company Update CORPORATE UNITED STATES MIDDLE EAST • Ended 2023 with NOK 120M • Secured commitment for five • Executed the final phase of DCME in cash and financial assets. new technical pilots per quarter. transition to the licensing model. • Completed the transition to • Continuing to expand pilot
Slide 24: U.S. Milestone: Limoneira moves forward with LNC
U.S. Milestone: Limoneira moves forward with LNC 24
Slide 25: U.S. Pilot Program Updates: Q4-2023
U.S. Pilot Program Updates: Q4-2023 Agriculture (16) STAGE 1 • 5 Permanent Crop Pilots ▪ 2 Citrus, dates, 2 vines • 3 Specialty Pilots ▪ Land restoration ▪ Farm road dust control Technical Pilots • 3 Row-Crop Pilots Engagement with potential clients ▪ Vegetables & herbs initiated through smaller-sca
Slide 26: U.S. Pilot Program Updates: Soil Hydraulic Properties
Soil Hydraulic Properties U.S. Pilot Program Updates Data from a desert farming citrus ranch in the U.S. Soil Water Characteristics Relative WHC Improvement % + % + % + • LNC application significantly increased Field Capacity, Permanent • The Water Holding Capacity increased by more than 2 X. Wiltin
Slide 27: U.S. Pilot Program Updates: Soil Moisture Sensor Data
Soil Moisture Sensor Data U.S. Pilot Program Updates Data from a desert farming citrus ranch in the U.S. 27
Slide 28: U.S. Pilot Program Updates: Water Distribution Properties
Water Distribution Properties U.S. Pilot Program Updates Data from a desert farming citrus ranch in the U.S. Sourc e: A griculture and N atural Resources, U niversity of C alifornia • LNC treatment resulted in higher volumetric water content % retained, especially in the top 10 – 25 cm of the soil.
Slide 29: U.S. Pilot Program Updates: Soil Moisture Sensor Data
Soil Moisture Sensor Data U.S. Pilot Program Updates Data from a vineyard in the U.S. (Grapevines) 29
Slide 30: Significant Potential to extend LNC benefits
Significant Potential U.S. Pilot Program Updates to extend LNC benefits way beyond water savings Agriculture Pilots & R&D Focus: • Improved Nutrient Use Efficiency • Reduced Fertilizer Leaching • Reduced Soil Salinity Water Savings • Reduced Energy Consumption • Improved Field Uniformity and LNC Inv
Slide 31: U.S. Pilot Program Updates: NDVI Satellite Data
NDVI Satellite Data U.S. Pilot Program Updates Data from a golf course green. in the U.S. Full irrigation, no LNC Reduced irrigation, no LNC Reduced irrigation with LNC • Three golf greens on the same golf course were observed for changes in NDVI scores. • The LNC-treated green (far right) received
Slide 32: Company Update
Company Update CORPORATE UNITED STATES MIDDLE EAST • Ended 2023 with NOK 120M • Secured commitment for five • Executed the final phase of DCME in cash and financial assets. new technical pilots per quarter. transition to the licensing model. • Completed the transition to • Continuing to expand pilot
Slide 33: Middle East: Licensed Operator Model
Middle East LICENSED OPERATOR MODEL • All sales & distribution of LNC is executed through local partners (licensed operators). • Removes the need for DSRT subsidiaries in the Middle East. FOR MORE DETAILS: • Streamlines operation and improves resource efficiencies. https://go.desertcontrol.com/FAQ-L
Slide 34: Middle East: Saudi Arabia and UAE highlights
Middle East /¥ Where Water Stress Will Be Highest by 2040 Projected ratio of water withdrawals to water supply (water stress level) in 2040 Extremely high (>80%) @ High (40-80%) ® Medium to high (20-39%) i Low to medium (10-19%) I Low (<10%) Source: World Resources Institute via The Economist Intell
Slide 35: Agenda / Q4 2023
Agenda / Q4 2023 Q4 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 & YTD Financials Outlook Questions Highlights and answers 35
Slide 36: Financial key figures
Financial key figures FOURTH QUARTER 2023 FULL YEAR 2023 [fourth quarter 2022 in brackets] [full year 2022 in brackets] • Revenue NOK 15,5M [NOK 3,0M] • Revenue NOK 18,1M [NOK 4,2M] • EBITDA NOK 0,8M [NOK –25,5M] • EBITDA NOK -60,0M [NOK –90,2M] • Profit or loss for the quarter NOK –8,4M [NOK –35,2M
Slide 37: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 37
Slide 38: Consolidated statement of financial position
Consolidated statement of financial position 38
Slide 39: Consolidated statement of financial position (continue)
Consolidated statement of financial position (continue) 39
Slide 40: Consolidated statement of cash flows
Consolidated statement of cash flows 40
Slide 41: Consolidated statement of cash flows (continue)
Consolidated statement of cash flows (continue) 41
Slide 42: Discontinued operations note
Discontinued operations note 42
Slide 43: The DSRT share
ISSUE PRICE AS OF SHARE PRICE AS OF 28 September 2023: 31 December 2023: NOK 6,75 (Q3-2023 NOK 8,07 Capital Raise Issue, Private Placement) Origin of shareholders 37831429 71% Norge 3542 5583811 10% Luxembourg 8 4745318 9% USA 7 1592969 3% Frankrike 4 1222478 2% Inland 5 1208390 2% Storbritannia 4 7
Slide 44: Agenda / Q4 2023
Agenda / Q4 2023 Q4 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 & YTD Financials Outlook Questions Highlights and answers 44
Slide 45: Outlook
Outlook CORPORATE UNITED STATES MIDDLE EAST • Anticipate substantial progress • Complete implementation of the • The focus is to enable local partners for the LNC technology in 2024. Limoneira project by April 2024. to establish and grow the regional business through support programs, • Target furth
Slide 46: Technology, R&D, and Pilot Programs
Technology, R&D, and Pilot Programs The real opportunity: From sand to regenerative living soil 46
Slide 47: Agenda / Q4 2023
Agenda / Q4 2023 Q4 2023 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q4 Q4 & YTD Financials Outlook Questions Highlights and answers 47
Slide 48: Cautionary note
Cautionary note DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS This presentation contains to change without notice. Q4 2023 Report and Year-to-Date forward-looking information and Forward-looking statements are Company Update statements relating to the not guaranteeing any future The information e
Slide 49: Thank you for your attention!
Thank you for your attention!