S&W Seed Company · OTC:SANW
S&W Seed — Investor Presentation (May 2023)
27 slides from S&W Seed's investor presentation, May 2023
Slide 1: S&W Seed Company (Nasdaq: SANW) May 2023
S&W Seed Company (Nasdaq: SANW) May 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, and such forward-looking statements are made pursuant to the safe harbor
Slide 3: Strategic Review
Strategic Review In 2022, S&W underwent a strategic review to determine areas it believes are ‘Key Centers of Value’ and align its cost structure to drive revenue growth and value generation. Key Center of Value #1 U.S. Sorghum Technology Higher-margin proprietary business with higher-value Double T
Slide 4: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook1 Strong operational improvement expected in FY 2023 Revenue Growth Gross Margin Expansion Operating Expense Reduction +12% to +29% +855 basis points $5 Million Savings Est. FY 23 Growth YTD FY 2023 Est. FY 23 Adjusted EBITDA Improvement Cash Infusion from JVs2 $(8)
Slide 5: Core Crop Portfolio
Core Crop Portfolio Diversified middle market agricultural platform Hybrid Sorghum Alfalfa/ Pasture Camelina Wheat Stevia (Double Team) Forage Products (JV with Shell) (JV with Trigall Genetics) (Agreement with Ingredion) S&W Seed Company (Nasdaq: SANW) 5
Slide 6: U.S. Sorghum Technology
U.S. Sorghum Technology Higher-margin proprietary business with higher-value Double Team expected to lead growth going forward. U.S. Sorghum Revenue ► Double TeamTM (DT) solution is S&W’s first innovative sorghum technology FY Ends June 30 $25 ► DT has the potential to revolutionize the sorghum mark
Slide 7: U.S. Sorghum Technology: Novel Commercial Trait Technology Products
U.S. Sorghum Technology Novel Commercial Trait Technology Products Novel and proprietary products driving value for farmers Double Team™ Grain Sorghum Double Team™ Forage Sorghum Prussic-Free Sorghum Double Team™ Sorghum is the best over- Double Team’s non-GMO tolerance to Prussic-Free Sorghum remov
Slide 8: International Forage/Alfalfa
International Forage/Alfalfa Lower-margin business where S&W has strong customer base and market share. International Forage Revenue ► Proprietary alfalfa seed and pasture products addressing non-U.S. global markets FY Ends June 30 $70 ► Alfalfa, Medic, Sub Clovers, Annual Clovers, Vetch, Forage Cer
Slide 9: U.S. Forage/Alfalfa
U.S. Forage/Alfalfa Unique germplasm facing unclear domestic environment, with future margin improvement opportunities. U.S. Forage Revenue ► Long dormant alfalfa history FY Ends June 30 ► Germplasm base purchased from Pioneer® consisting of thousands of unique $14 breeding parents and varieties, wi
Slide 10: Camelina/Biofuels JV
Camelina/Biofuels JV JV with Shell (NYSE: SHEL) $20 M ► Worldwide JV (named Vision Bioenergy Oilseeds LLC) with Shell plc (for the purpose of developing novel plant genetics, increasing oil seed cover crop acres and managing the crushing of these new acres for biofuel, green diesel, and jet fuel pro
Slide 11: Camelina/Biofuels JV Business Model
Camelina/Biofuels JV JV with Shell (NYSE: SHEL) Business Model 1 1 2 3 4 5 VBO will apply its plant VBO starts off by growing That seed is then sold to VBO will buy every bushel VBO will contract with breeding expertise and camelina seed and farmers to grow large of Camelina grain from the industry
Slide 12: Wheat JV
Wheat JV JV with Bioceres (Nasdaq: BIOX) and Florimond Desprez ► Trigall Genetics, the world leader in wheat biotechnology co-owned by Bioceres Crop Solutions and Florimond Desprez, and S&W Seed Company, entered into a joint venture to advance wheat breeding activities in Australia. ► Trigall Austra
Slide 13: Stevia
Stevia Pilot production supply agreement with Ingredion ► Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, and S&W Seed Company exclusive U.S. stevia pilot production supply agreement. ► S&W will leverage its prop
Slide 14: Key Highlights
Key Highlights The Ongoing Transformation of S&W ► Launch of proprietary non-GMO trait technology (Double Team) expected to transform the operating profile of S&W into a high growth, high margin business ► 2X growth anticipated in FY 2023 with expected 50%+ gross profit contributions from Double Tea
Slide 15: Financials
Financials
Slide 16: Revenue
Revenue FY ends June $120 $100 $34.2 $ in Millions $80 $75 $14.2 $19.7 $65 $60 $37.6 $39.5 $40 $69.8 $71.4 $59.9 $20 $37.9 $24.6 $0 2018 2019 2020 2021 2022 2023 Expectations Core Revenue Pioneer Seed Revenue Pioneer License Revenue S&W Seed Company (Nasdaq: SANW) 16
Slide 17: Adjusted EBITDA
Adjusted EBITDA FY ends June $20 $15 $10 $19.2 $ in Millions $5 $0 ($5) ($9.7) ($13.1) ($10) ($8.0) ($23.8) ($12.0) ($15) ($20) ($25) 2019 2020 2021 2022 2023 Expectations Adjusted EBITDA is a non-GAAP financial measure; for further information, see "Non-GAAP Financial Measures" in the appendix. Rec
Slide 18: 2023 Adjusted EBITDA Bridge
2023 Adjusted EBITDA Bridge FY ends June $3 - $4 $ in Millions $(8) - $(12) $0 - $1 $5 $4 - $7 $(24) 2022 Adjusted Improvement in Reduction in Improvement in Improvement in 2023 Adjusted EBITDA U.S. Sorghum Operating International LCM Charges EBITDA Estimate Operations Expenses Forage Operations The
Slide 19: Selected Balance Sheet
Selected Balance Sheet ($ in Millions) 6/30/20 6/30/21 6/30/22 3/31/23 Cash and cash equivalents $4.1 $3.5 $2.1 $1.6 Shell Joint Venture (January 2023) ► $7 million upfront payment, $6 million in February 2024, plus $7 million for Nampa facility Accounts receivable, net $19.0 $19.4 $19.1 $20.4 Wheat
Slide 20: Significant Trait Technology Development and Commercialization Experience
Significant Trait Technology Development and Commercialization Experience Mark Wong, S&W Seed Company CEO ► 40+ years of experience in agriculture as a senior executive ► Successfully built, operated, and sold multiple seed technology companies to industry leaders across multiple crops, including so
Slide 21: Management
Management Mark Wong Cameron Henley CEO and Director Managing Director – International 40 years in Agribusiness 20+ years of international seed CEO of 4 other companies previously industry experience Vanessa Baughman Brent Johnson Interim CFO Vice President Sales & Marketing - Americas 20+ years of
Slide 22: Board of Directors
Board of Directors Alan Willits Mark Harvey Chairman of the Board Founding Partner of S&W Seed Former Chairman of Cargill Asia Pacific and Lead Company Australia, retired Cargill's Agriculture Supply Chain (retired) Mark Wong Mark Herrmann CEO, S&W Seed Company President and Founder of ACUMEN LLC Fo
Slide 23: Appendix
Appendix
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures In addition to financial measures included in this presentation that are calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company has provided the following non-GAAP financial
Slide 25: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA 2019 2020 2021 2022 Net Income $(9,305.2) $(19,674.3) $(19,171.0) $(36,395.4) Restructuring charges 202.2 - - Non-recurring acquisition related expenses 1,196.5 793.0 20 - Depreciation and amortization 4,128.5 5,036.5 5,469.6 5,460.3 Impairment Charges 17,900.6 - - 1,548.3 N
Slide 26: FY 2019/FY 2020 Non-GAAP Adjustments
FY 2019/FY 2020 Non-GAAP Adjustments Reconciliation of Non-GAAP Financial Measures (UNAUDITED) S&W Seed Company (Nasdaq: SANW) 26
Slide 27: FY 2021/FY 2022 Non-GAAP Adjustments
FY 2021/FY 2022 Non-GAAP Adjustments Reconciliation of Non-GAAP Financial Measures (UNAUDITED) S&W Seed Company (Nasdaq: SANW) 27