Aquabounty Technologies, Inc. · NASDAQ:AQB
Aquabounty Technologies — Investor Presentation (September 2018)
26 slides from Aquabounty Technologies's investor presentation, Sep 4, 2018
Slide 1: AquaBounty Technologies
AquaBounty Technologies
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: Overview
Overview AquaBounty Technologies, Inc. • Biotechnology company focused on enhancing productivity in the $176b “Our mission is to raise aquaculture market through genetic modification and other molecular the world’s finest, biologic techniques. healthiest, most sustainable Atlantic • First product, A
Slide 4: The Technology – AquAdvantage Salmon
The Technology – AquAdvantage Salmon ATG TAG 1989 // Promoter GH cDNA Terminator // TATA AATAA 1992 F2 F3 Transgene DNA Microinjection Transgenic Founder Milt Selection 2018 F13 Fertilized Microinjected Line bred conventionally Non-transgenic Progeny from founder for 13 Eggs generations • A Chinook
Slide 5: The Technology - Land-based Aquaculture
The Technology - Land-based Aquaculture AAS reaches target weight in shorter time and consumes less feed to reach target weight than conventional Atlantic Salmon. AAS enables this land-based, environment-friendly production system to be economically viable versus current sea-cage production systems.
Slide 6: Global Markets and Growth Drivers
Global Markets and Growth Drivers
Slide 7: Aquaculture Market
Aquaculture Market Aquaculture growth to 2050 (Source: FAO) Sources: FAO FIPS (2014) // Fish to 2030 (2013) • Fish is a healthy food and an efficient source of high quality protein. • Many of the world’s fisheries are already fully exploited. • Aquaculture must double just to hold current per capita
Slide 8: Atlantic Salmon Market – Global Trade
Atlantic Salmon Market – Global Trade WW Atlantic salmon market = 2.2m metric tons worth $14 billion (Source: FAO) Norway, Faroe Islands, Iceland: North America: Harvest: 1,171,000 Market: 41,000 Harvest: 146,000 Supply is constrained in Market 445,000 EU: production locations for Harvest: 175,000 O
Slide 9: Atlantic Salmon Market – U.S. Opportunity
Atlantic Salmon Market – U.S. Opportunity 300,000 3% TONS $3.1B of all Atlantic salmon of Atlantic salmon were total U.S. market consumed in the U.S. is imported in 2017 opportunity produced domestically (Source: U.S. Department of Commerce)
Slide 10: AquAdvantage Salmon Features and Benefits
AquAdvantage Salmon Features and Benefits
Slide 11: AquAdvantage Salmon - Features and Benefits
AquAdvantage Salmon - Features and Benefits FASTER GROWTH + Reaches harvest weight in 16-18 months BETTER FEED CONVERSION + Utilizes 25% less feed to attain harvest size than non-transgenic siblings + Could operate with plant-based, sustainable feed SHORTER TRANSPORTATION DISTANCE + Reduces cost and
Slide 12: Faster Growth
Accelerated growth allows AquAdvantage® Salmon (AAS) to reach harvest weight sooner. Below:FASTER GeneticallyGROWTH modified salmon (rear) and non-genetically modified salmon (foreground) at the same age. AAS grow faster than standard Atlantic salmon - specifically during early rearing. However, AAS
Slide 13: Better Feed Conversion
BETTER FEED CONVERSION (Source: Marine Harvest, except for AAS) • Atlantic salmon already have a better feed conversion rate than other sources of protein. • And AAS have a 25% better feed conversion rate than standard Atlantic salmon. • AAS consume more feed on a daily basis, but due to enhanced gr
Slide 14: Shorter Transportation Distance
SHORTER TRANSPORTATION DISTANCE • Reduces cost and carbon footprint 500 miles 3,200 miles 3,600 miles
Slide 15: Land-Based Production
LAND-BASED PRODUCTION Significant advantages over current main method of fish farming: • Optimized growing conditions and fish health • Biosecurity - no exposure to pathogens & parasites. • No need for antibiotics or medications • Clean groundwater - no exposure to environmental contaminants • Conse
Slide 16: Commercialization Program
Commercialization Program
Slide 17: Consumer Benefits
Consumer Benefits • Fresh salmon produced close to home • Safe and healthy source of omega-3s • Sustainable and responsible seafood choice
Slide 18: Commercial Roll-Out
Commercial Roll-Out First sale of AAS in June 2017 • 10 metric tons of AAS from the Panama site were harvested, processed yielding 5 metric tons of fresh fillets, and shipped to Canada. • The response from the buyers was very enthusiastic. • The sale was made at market rate for fresh farmed Atlantic
Slide 19: Marketing Plan
Marketing Plan Initial strategy: • AAS will be sold through established distributors. Longer-term strategy: • Once AAS is established in the market, the option for branding as a “sustainably produced” food item can be considered.
Slide 20: Grow-Out Facilities
Grow-Out Facilities US - Indiana • Purchased first commercial-scale operating site for AAS in the US from Bell Fish Company in 2017. • Facility has been renovated and upgraded to improve capacity to 1,200 metric tons annually. • First eggs (non-transgenic) introduced in June 2018. AAS expected to be
Slide 21: International Business Development
International Business Development Brazil • Currently running a field trial in support of an application to approve AAS. Argentina • Initial field trial completed and submitted to CONABIA in support of an application to approve AAS. Chile • Negotiating an agreement with a local partner in Chile on t
Slide 22: Management Team
Management Team Ronald L. Stotish, Ph.D. was appointed an Executive Director, President and CEO of AquaBounty Technologies in May 2008 after joining the company in 2006 as Vice President for Regulatory Affairs. Prior to joining AquaBounty, Dr. Stotish was Executive Vice President for R&D at MetaMorp
Slide 23: Financial data
Financial data June 30, As of December 31, (in thousands) 2018 2017 2016 Balance Sheet Data: Cash and CD's $ 3,532 $ 506 $ 3,335 Total assets $ 28,260 $ 23,732 $ 5,709 Debt $ 2,991 $ 3,084 $ 2,663 Stockholders' equity $ 24,100 $ 17,981 $ 2,028 Shares outstanding at June 30, 2018 = 12,848,376 23
Slide 24: Summary
Summary • The aquaculture industry must double its output in the next 30 years to meet growing market demand. • AquAdvantage significantly increases the profitability of Atlantic salmon production in land-based RAS systems. This will allow salmon aquaculture almost anywhere with a source of water an
Slide 25: Investment Opportunity
Investment Opportunity • This phase of the Company’s commercial operation will demonstrate the profitability and consumer acceptance for AquAdvantage Salmon. • The follow-on phase, much of which will be funded by debt or partnerships, will significantly expand the Company’s production output and ope
Slide 26: The AquAdvantage
The AquAdvantage® The world's most Closer to market Locally raised, sustainable salmon ‘The only salmon fresher than ¢limate-smart salmon will delve the biggest marine one you caught yourself Suirion closer to conaumersin benefits with the smallest a tal oot time and cost po 3 fresher product anc ra
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