Slide 1: Company Update
Company Update Desert Control AS
Slide 2: Cultivate and green 100 Million Hectares of degraded land and desert by 2030
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 balance the climate with Sahara by 2025 to reduce desert by 2030 increased
Slide 3: About Desert Control
About Desert LNC: 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
Slide 4: The problem LNC targets to solve
The problem LNC targets to solve CO2 • Less than 15% of irrigation water is retained in the topsoil for plants to use • The majority is lost to deep drainage, N H2 O H2 O leaching and runoff causing wash-out Mg Mn Cu $ K P B $ MgO Fe $ SOM Zn $ 4
Slide 5: How LNC works
How LNC works Sandy soil LNC treated soil Large particle sizes, small Small particle sizes, large surface area, large pore space surface area, small pore space High gravitational pull Capillary action (Capillary action, gravitational pull, infiltration, percolation, permeability, lateral flow) 5
Slide 6: The economic value of restoring land and soil
The economic value of restoring land and soil $7 - $30 $1 For every $1 spent on the restoration of land and soil, the UN estimates returns of between $7 and $30 in increased production and other benefits 6
Slide 7: History and key events
History and key events • First industrial prototype • Second industrial • Established Desert of the LNC production prototype of the Control Americas Inc. unit completed • LNC production unit in the United States • The company has 6 completed • First two industrial employees • Awarded first commercia
Slide 8: Agenda / Q2 2022
Agenda / Q2 2022 Q2 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q2 Q2 Highlights Financials Outlook Questions and answers 8
Slide 9: Q2 Highlights
Q2 Highlights COMMERCIALIZE VALIDATE IN THE BUILD THE IN THE UAE UNITED STATES FOUNDATION • Commercial activities • Progressing ahead of • Continued to deliver on commenced according to expectations in the U.S. commitments plan at the end of June • Positive interim results of • Strengthened Executiv
Slide 10: Commercialize in the UAE
Commercialize in the UAE First paying LNC adopters announced AGRICULTURE LANDSCAPING PILOT CONVERSION Private Organic Farm Pump Park, Masdar City in5 Tech, TECOM Group Al Ain, UAE Abu Dhabi, UAE Dubai, UAE 10
Slide 11: Validate in the United States
Validate in the United States Initial plan Progressing ahead of expectations in the U.S. Academic validation Customer validation Commercialization Q3 2022 Q2 2023 Revised expectation Academic validation Customer Commercialization validation 11
Slide 12: Validate in the United States
Validate in the United States First paying LNC adopters announced VALIDATION FOUNDATION READINESS The LNC validation study with Operational headquarter Increased LNC production the University of Arizona shows established in central Arizona capacity ahead of plan positive interim results. 12
Slide 13: Build the Foundation
Build the Foundation COMMITMENTS LEADERSHIP READINESS Continued to deliver on Strengthened Executive Proved scale on demand readiness commitments Leadership and Business for LNC production capacity and Development confirmed global mobility of assets 13
Slide 14: Build the Foundation
Build the Foundation DESERT CONTROL RANKED AMONG THE CONTINUED ACADEMY MOST SUSTAINABLE POSITIVE MEDIA BUSINESSES EXPOSURE 14
Slide 15: Agenda / Q2 2022
Agenda / Q2 2022 Q2 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q2 Q2 Highlights Financials Outlook Questions and answers 15
Slide 16: Financial key figures
Financial key figures SECOND QUARTER 2022 FIRST HALF 2022 [second quarter 2021 in brackets] [first half 2021 in brackets] • Revenue NOK 0.5M [NOK 0.0M] • Revenue NOK 1M [NOK 0.0M] • EBITDA NOK -20.3M [NOK -3.4M] • EBITDA NOK -43.1M [NOK -12.6M] • Profit or loss for the year NOK -16.8M • Profit or lo
Slide 17: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 17
Slide 18: Consolidated statement of financial position
Consolidated statement of financial position 18
Slide 19: Consolidated statement of financial position (continue)
Consolidated statement of financial position (continue) 19
Slide 20: Consolidated statement of cash flows
Consolidated statement of cash flows 20
Slide 21: Consolidated statement of cash flows (continue)
Consolidated statement of cash flows (continue) 21
Slide 22: The DSRT share
The DSRT share 40 30 20 10 0 ISSUE PRICE AS OF SHARE PRICE AS OF 14 APRIL 2021: NOK 11.69 30 JUNE 2022: NOK 27 ORIGIN OF SHAREHOLDERS Norway Luxembourg UK Sweden Others 22
Slide 23: Agenda / Q2 2022
Agenda / Q2 2022 Q2 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q2 Q2 Highlights Financials Outlook Questions and answers 23
Slide 24: Outlook
Outlook COMMERCIALIZE VALIDATE IN THE BUILD THE IN THE UAE UNITED STATES FOUNDATION • Continue finalizing the • Execute stage two of the • Onboard new Executives and foundation of Mawarid validation study with the Business Developers Desert Control (MDC) and University of Arizona • Build the foundat
Slide 25: Build the Foundation
Build the Foundation “The Desert Control Way” DRIVING THE TRANSITION FROM START-UP TO SCALE-UP 25
Slide 26: Cautionary note
Cautionary note DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS This release contains forward- subject to risks, uncertainties, and cautioned not to place any undue looking information and assumptions, and may be subject reliance on any forward-looking statements relating to the to change without n
Slide 27: Agenda / Q2 2022
Agenda / Q2 2022 Q2 2022 REPORT AND FINANCIAL RESULTS / COMPANY PRESENTATION Q2 Q2 Highlights Financials Outlook Questions and answers 27
Slide 28: Thank you for your attention!
Thank you for your attention!
Slide 29: Appendix
Appendix DESERT CONTROL COMPANY PRESENTATION
Slide 30: 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 31: 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 32: United Nations declares desertification the greatest environmental challenge of our time
United nations declares 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 cost wo
Slide 33: 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 33
Slide 34: Desertification, land and soil degradation is a global problem
Desertification, land and soil degradation is a global problem • MORE THAN 40% OF THE CONTINENTAL UNITED STATES IS AT RISK OF DESERTIFICATION • MORE THAN 50 BILLION TONS OF TOPSOIL ARE ESTIMATED TO HAVE ERODED 34
Slide 35: 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 36: The problem LNC targets to solve
The problem LNC targets to solve CO2 • Less than 15% of irrigation water is retained in the topsoil for plants to use • The majority is lost to deep drainage, N H2 O H2 O leaching and runoff causing wash-out Mg Mn Cu $ K P B $ MgO Fe $ SOM Zn $ 36
Slide 37: LNC treatment
LNC treatment 1. UNIQUE FORMULATION PROCESS Clay is processed into a liquid compound 2. APPLY 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 37
Slide 38: Patented process based on 12 years research
Patented process based on 12 years research 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 as water to droughts • Differ
Slide 39: The economic value of restoring land and soil
The economic value of restoring land and soil $7 - $30 $1 For every $1 spent on the restoration of land and soil, the UN estimates returns of between $7 and $30 in increased production and other benefits 39
Slide 40: Unique product offering with no direct competitor
Unique product SUBSTITUTES AND OTHER METHODS FOR SOIL ENHANCEMENT ARE INTRUSIVE, TIME offering with no CONSUMING AND COSTLY direct competitor LNC’S ADVANTAGES DESERT CONTROL’S LNC PROCESS IS THE ONLY NON-INTRUSIVE SOIL ENHANCEMENT OPTION INTRUSIVE NON-INTRUSIVE (mechanical/manual intervention) (self
Slide 41: Proven, validated and patented
Proven, validated and patented Before • EGYPT - BEFORE AND AFTER APPLICATION OF LNC After • UAE, AL AIN AFTER APPLICATION OF LNC After 41
Slide 42: 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 42
Slide 43: LNC identified as potential impact solution by the United Nations
LNC identified as 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 CREATE
Slide 44: Nature-based solutions hold the key to a stable climate
Nature-based solutions hold the key to a stable climate Stopping deforestation, restoring forests and improving forestry practices could cost- ADDRESSING KEY UN SUSTAINABLE effectively remove8 billion metric tons of carbon dioxide annually – equivalent to DEVELOPMENT GOALS eliminating 1.7 billion ca
Slide 45: 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 46: 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 47: 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 48: 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 49: The foundation for life on earth
The foundation for life on earth "Soil is like trust. It takes time to build, it's fragile, and beautiful things flourish when it's built." – Ole Kristian Sivertsen 49
Slide 50: 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 50