Desert Control As · OSL:DSRT
Desert Control As — Q1 2022 Earnings Presentation
52 slides from Desert Control As's earnings presentation, 2022
Slide 1: Company Update
Company Update Desert Control AS
Slide 2: Cultivate and green 100 Million Hectares of degraded land and desert
to foster the prosperity of life 1M km2 2030 Cultivate and green Contribute to sustainable social Establish a social impact 1oo Million Hectares impact, immense water savings initiative throughout Sub of degraded land and and balanced climate with Sahara by 2025 to reduce desert by 2030 carbon seque
Slide 3: The current balance sheet
The current Climate balance sheet change Loss of biological diversity Pandemics and wars Hunger and poverty 3
Slide 4: About Desert Control
About Desert A NATURE-BASED SOLUTION FROM SAND TO SOIL IN 7 HOURS Control FOCUS Desert Control specializes in climate- smart agriculture technology to combat desertification, soil degradation, and water scarcity 12 million hectares of fertile land Less than 60 years left for global 1.8 Billion peopl
Slide 5: A problem worth solving
A problem A NATURE-BASED SOLUTION FROM SAND TO SOIL IN 7 HOURS worth solving DESERT CONTROL’S PATENTED LNC PROCESS Natural materials and clay is turned into a liquid nearly as thin as water • Less than 15% of Liquid Natural Clay water retained in H2O “LNC” the soil for plants to use The liquid is ap
Slide 6: The value of restoring land and soil
The value of restoring land and soil $7 - $30 $1 Invested Returns 6
Slide 7: Agenda / Q1 2022
Agenda / Q1 2022 Q1 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q1 Highlights Financials Outlook Questions and answers 7
Slide 8: Q1 Highlights
Q1 Highlights COMMERCIALIZE VALIDATE IN THE BUILD THE IN THE UAE UNITED STATES FOUNDATION • Incorporated Mawarid • Hired CEO for Desert • Strengthened executive Desert Control Control Americas leadership • Improved application • First LNC deployment on • Launched business capabilities U.S. soil deve
Slide 9: Commercialize in the UAE
Company Update Q1 2022 COMMERCIALIZE IN THE UAE MAWARID DESERT CONTROL LLC • Awarded business license on 29 March 2022 • Operational readiness activities commenced from 9 May 2022 • Will operate as an independent company NEXT STEPS • Hire sales team and operational staff • Finalizing administrative
Slide 10: Commercialize in the UAE
Company Update Q1 2022 COMMERCIALIZE IN THE UAE DESERT CONTROL MIDDLE EAST LLC • Strengthened leadership • Completed hires for the operational team • Conducted training and field readiness initiatives 10
Slide 11: Commercialize in the UAE
Company Update Q1 2022 COMMERCIALIZE IN THE UAE FIELD INITIATIVES TO INCREASE LNC APPLICATION CAPACITY AND CAPABILITIES 11
Slide 12: Commercialize in the UAE: further positive pilot results
Company Update Q1 2022 COMMERCIALIZE IN THE UAE ACHIEVED FURTHER POSITIVE PILOT RESULTS WATER CROPS/VEGETATION SEGMENT LOCATION SAVINGS Carrots, Cauliflower, Green Pepper and Lady Fingers 40% Agriculture Private farm in Al Ain, Abu Dhabi Pearl Millet, Zucchini and Watermelon 40% Agriculture ICBA* in
Slide 13: Validate in the United States
Company Update Q1 2022 VALIDATE IN THE UNITED STATES • Hired CEO for • Accelerating Desert Control US ramp up Americas 13
Slide 14: Validate in the United States
Company Update Q1 2022 VALIDATE IN THE UNITED STATES • Developed a new • Building prototype LNC additional production unit capacity for pilot projects in the U.S. 14
Slide 15: Validate in the United States
Company Update Q1 2022 VALIDATE IN THE UNITED STATES • First deployment of LNC on American soil 15
Slide 16: Build the foundation
Company Update Q1 2022 BUILD THE FOUNDATION FTIPP* development • Grew from 51 to 65 full-time intelligent and passionate team members (FTIPPs). • Attracted new talent to accelerate commercialization and go-to-market activities • Strengthened the executive leadership team (* Full Time Intelligent Pas
Slide 17: Introducing the new executive leadership team
Introducing the new executive leadership team BUILD THE FOUNDATION Ole Kristian Sivertsen Bernt Arne Breistein Marianne Vika Bøe Tor M Karlsen Nancy Carda President and Group CEO Chief Strategy Officer Chief Financial Officer Chief Technology Officer Head of Group Marketing and Communications Jan Va
Slide 18: Agenda / Q1 2022
Agenda / Q1 2022 Q1 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q1 Highlights Financials Outlook Questions and answers Moderator Webcast Session 18
Slide 19: Financial key figures
Financial key figures FINANCIAL HIGHLIGHTS FIRST QUARTER 2022 [first quarter 2021 in brackets] • Revenue NOK 0.6M • Gross R&D expenses • Total cash balance 31.03.22 [NOK 0.0M] NOK 1.6M [NOK 3.9M] (bank deposits and funds) NOK 153.3M [NOK 25.2M] • EBITDA NOK -22.8M • Innovation Norway / [NOK -9.2M] S
Slide 20: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 20
Slide 21: Consolidated statement of financial position
Consolidated statement of financial position 21
Slide 22: Consolidated statement of financial position (continue)
Consolidated statement of financial position (continue) 22
Slide 23: Consolidated statement of cash flows
Consolidated statement of cash flows 23
Slide 24: Consolidated statement of cash flows (continue)
Consolidated statement of cash flows (continue) 24
Slide 25: The DSRT share
DESERT The DSRT share DESERT CONTROL AS | The Group’s shareholders: - Ownership/ nc 30,90 sr a en ET Shareholders in Desert Control AS at 31.03.2022 Total shares __Voting rights ommersemer Olesen Consult HVAC AS, 5 900000 143% LP. Morgan SE 1761 72 4.3% serene Ole Morten Olesen 1650 000 40% . Nordne
Slide 26: Agenda / Q1 2022
Agenda / Q1 2022 Q1 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q1 Highlights Financials Outlook Questions and answers Moderator Webcast Session 26
Slide 27: Outlook
Outlook COMMERCIALIZE VALIDATE IN THE BUILD THE IN THE UAE UNITED STATES FOUNDATION • Support getting Mawarid • Build the team • Onboard executive Desert Control operational leadership and business • Establish operational development team • Transfer commercial headquarter in Arizona opportunities /
Slide 28: From start-up to scale-up
From start-up to scale-up DRIVING THE TRANSITION FROM START-UP TO SCALE-UP 28
Slide 29: Cautionary note
Cautionary note DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS By reading this company presentation own view of the potential future description of other relevant risk factors, opinions expressed in this Presentation (the “Presentation”) or attending any performance of the Company’s business. we r
Slide 30: Agenda / Q1 2022
Agenda / Q1 2022 Q1 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q1 Highlights Financials Outlook Questions and answers Moderator Webcast Session 30
Slide 31: Thank you for your attention!
Thank you for your attention!
Slide 32: Transformation in the making
Transformation in the making VALIDATE IN THE UNITED STATES 32
Slide 33: Appendix
Appendix DESERT CONTROL COMPANY PRESENTATION
Slide 34: Vision and mission
Vision and mission Making earth green again to foster the We combat desertification, land degradation, and Desert Control specializes in climate-smart prosperity of life water scarcity by; Agri-tech solutions to combat desertification, soil degradation, and water scarcity. Our We aim to reclaim 100
Slide 35: Population growth driving increased demand for food and water
Population growth driving increased demand for food and water INCREASING POPULATION… …NEEDS MORE FOOD AND WATER… …WATER SHORTAGE EXPECTED TO BE SUBSTANTIAL Food production (billion m2 of -40% (billion people) 10.9 required to increase by 6,900 water) 7.7 60-70% 4,500 by 2050 and water demand 4,200 5
Slide 36: United Nations has declared desertification the greatest environmental challenge of our time
United nations has declared desertification and land degradation the greatest environmental challenge of our time 110 1.3Bn 12m Countries exposed to People trapped on hectares productive land desertification and land degrading agricultural becomes barren every degradation land year $490Bn annual cos
Slide 37: Beyond traditional deserts.
Beyond traditional deserts. 2008 59% of territory with 74% of territory at a higher or medium risk of desertification sensitivity to desertification +50% of mainland at 99% of territory 2017 vulnerable to risk of desertification desertification 37
Slide 38: Freshwater used for agriculture.
Freshwater used for agriculture. SHARE OF FRESHWATER WITHDRAWLS BY SECTOR (%)v • The shortfall between demand and supply of water is estimated to be 40% by 2030 6% 5% 7% 11% 9% 16% • Approx. 1/3 of the population will 15% 34% live in areas where the deficit is 17% 12% >50% • The agriculture industry
Slide 39: LNC treatment
LNC treatment 1. UNIQUE FORMULATION PROCESS Clay is processed into a liquid compound 2. SPRAY ON Applied directly to sand or arid soil 3. EFFECT Forms a soil structure that retains water like a sponge 4. RESULT - 20-50% water and fertilizer savings - Increased crop yields and carbon uptake 39
Slide 40: Patented process based on 12 years research
Patented process based on 12 years research LIQUID NATURAL CLAY («LNC») DESERT CONTROL’S PREMISE PATENTED LNC PROCESS KNOWLEDGE BASED STRATEGY Clay-rich soil retains water Natural clay is turned into a liquid • Each clay type has unique properties effectively and has high resilience nearly as thin a
Slide 41: Unique product offering with no direct competitor
Unique product SUBSTITUTES AND OTHER METHODS FOR SOIL ENHANCEMENT ARE INTRUSIVE, TIME offering with no direct CONSUMING AND COSTLY competitor LNC’S ADVANTAGES DESERT CONTROLS LNC PROCESS IS THE ONLY NON-INTRUSIVE SOIL ENHANCEMENT OPTION INTRUSIVE NON-INTRUSIVE (mechanical/manual intervention) (self-
Slide 42: Proven, validated and patented
Proven, validated MULTI-YEAR FIELD TRIALS and patented Before • EGYPT - BEFORE AND AFTER APPLICATION OF LNC After • UAE, AL AIN AFTER APPLICATION OF LNC After 42
Slide 43: The results – UAE desert example
The results – UAE ü Less than 1kg of clay per m2 desert example ü Water and fertilizer savings (20-50%) ü Increased crop yields (17-62%) ü Improved soil, biodiversity, and carbon uptake Before CROP YIELD INCREASE 62% 28% 17% After Zucchini Pearl millet Watermelon 43
Slide 44: LNC identified as a potential impact solution by the United Nations
LNC identified as a potential impact solution by the united nations THE GREATEST CHALLENGE OF OUR TIME: THE GREAT GREEN WALL RECEIVED OVER $14 BILLION IN DONATIONS TO REGREEN THE SAHEL – WORLD BANK AMONG DONORS RESTORE 100 MILLION HECTARES OF DEGRADED LAND SEQUESTER 250 MILLION TONNES OF CARBON CREA
Slide 45: LNC potential and impact potential
LNC / potential and impact potential. In a conservative estimate of $20 /t this translates to $280Bn of annual cost ADDRESSING KEY UN SUSTAINABLE DEVELOPMENT GOALS ~49 ~8 Global GHG emissions (Gt) ~6 ~9 ~25 Collectively ~57% of required reduction to reach 2DS target 2016 GHG Stopping Restoring soils
Slide 46: Recognized as one to watch in climate-tech competitions
Recognized as “one to watch“ in AS WELL AS STRONG INTEREST FROM MEDIA various climate-tech competitions Katerva Awards 2020 Winner CleanTech Top-50 to watch Mastercard Lighthouse MASSIV (Referred to by Reuters as the Nobel innovations for 2021 Winner of 2020 Program Prize of Sustainability) GreenTec
Slide 47: ESG and impact
ESG and impact IMPACT ON EXTERNAL ENVIRONMENT AND SUSTAINABILITY Liquid Natural Clay (LNC) can reduce further minimize the risk of chemical safeguarding the carbon storage of soil sum of positive impact from stopping water consumption for agriculture, run-off reaching through to natural ecosystems a
Slide 48: About Desert Control
About Desert Control Desert Control is a company specialized in climate-smart agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay restores and protects soil, reducing water usage for agriculture, forests, and green landscapes. Desert
Slide 49: Our core values
Our core values Leadership Integrity Inspirational pro-active execution Keep promises | grow strong relationships Growth-mindset Curious and solution-oriented Contribution Desire to make everything better Innovation Challenge status-quo | create value Diversity Inclusive | open-minded | respectful 4
Slide 50: Our strategy
Our strategy Think Big: Design to scale Everything we do connects to a bigger picture and our vision of making earth green again. exponentially: Everything we do must be scalable. The positive impact of our innovation must grow at an increasingly rapid Start Small: rate in proportion to time. Climat
Slide 51: Global addressable market: >6bn hectares
Global addressable market: >6bn hectares Global Impact Property & Land Agriculture Programs Management Rest of the world Asia/India Africa Australia Southern xxBn Ha 1.1Bn Ha 4.4Bn Ha Europe USA Customers MENA • Food producers (Agriculture) • Landowners (Landscapes using irrigation water) • Governme
Slide 52: Feed our planet responsibly
FEED OUR PLANET RESPONSIBLY to foster the prosperity of life ACCELERATE COMBAT CLIMATE WATER ACTION SCARCITY 1M km2 2030 GOVERNMENTS LANDOWNERS AND NGOS AGRICULTURE 52