Slide 1: Fourth-Quarter and Full-Year 2016 Business Results
Fourth-Quarter and Full-Year 2016 Business Results March 8, 2017
Slide 2: Forward-looking statements
Forward-looking statements “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation c ontains forward-looking statements about the company and its products, including statements relating to components of the company’s long-term financial success;; the
Slide 3: 2016 – A year of transition for Arcadia
2016 – A year of transition for Arcadia New CEO and CFO joined company Conducted comprehensive strategic review of the business Shifting focus from R&D to late-state development and commercialization of key projects Optimized cost structure • Reduced workforce • Consolidated facilities 3
Slide 4: Arcadia's product strategy focuses on two sectors of the agricultural supply chain
Arcadia’s product strategy focuses on two sectors of the agricultural supply chain INGREDIENTS PRODUCTIVITY FOOD – NUTRITION – QUALITY YIELD Non-GM GM Non-GM GM RS Wheat GLA Oil Wheat Yield HB4 Soybeans Wheat Quality ARA Oil Corn Yield PROCESSORS SEED COMPANIES CONSUMERS GROWERS 4
Slide 5: Arcadia has a rich pipeline of licensed technologies
Arcadia has a rich pipeline of licensed technologies These traits are being advanced by our licensees, and we will continue to support their progress RICE WHEAT SOYBEAN COTTON Nitrogen Use Nitrogen Use Soy Yield Nitrogen Use Efficiency Efficiency Efficiency Water Use Heat Water Use Efficiency Tolera
Slide 6: Business highlights – Nutrition
Business highlights – Nutrition GLA safflower oil • Growth in Q4 and FY 2016 through new markets • FDA GRAS status received in January 2017 • Awaiting FDA regulatory approval for use in pet food Resistant starch wheat • Field production underway;; harvest expected in Q2 • Field trials to demonstrate
Slide 7: Business highlights – Agronomic yield
Business highlights – Agronomic yield HB4 stress-tolerant soybeans • Regulatory dossier submitted to China in Q4 2016 with Verdeca JV partner, Bioceres • Field trials of HB4 trait in commercial varieties planted by seed partners Corn yield and stress traits • Dow AgroSciences completed field trials
Slide 8: Revenue
Revenue Fourth Quarter Full Year $ Fav/ % Fav/ $ Fav/ % Fav/ 2016 2015 (Unfav) (Unfav) 2016 2015 (Unfav) (Unfav) Product revenue 247 83 164 198% 669 466 203 44% License revenue (365) 443 (808) (183%) 144 1,216 (1,072) (88%) Contract research and 658 820 (162) (20%) 2,375 3,732 (1,357) (36%) governme
Slide 9: Operating expenses
Operating expenses Fourth Quarter Full Year $ Fav/ % Fav/ $ Fav/ % Fav/ 2016 2015 (Unfav) (Unfav) 2016 2015 (Unfav) (Unfav) Cost of product revenues 653 669 16 2% 895 892 (3) ---- R&D expense 1,990 1,869 (121) (6%) 8,663 8,966 303 3% SG&A expense 3,368 2,878 (490) (17%) 12,250 11,119 (1,131) (10
Slide 10: Key financial results
Key financial results Fourth Quarter Full Year $ Fav/ % Fav/ $ Fav/ % Fav/ 2016 2015 (Unfav) (Unfav) 2016 2015 (Unfav) (Unfav) Total revenues 540 1,346 (806) (60%) 3,188 5,414 (2,226) (41%) Cost of product revenues 653 669 16 2% 895 892 (3) ---- R&D expense 1,990 1,869 (121) (6%) 8,663 8,966 303
Slide 11: Thank you!
®D Arcadia BIOS CIEN CE S&S Thank you!