Local Bounti Corporation · NYSE:LOCL
Local Bounti — Q4 2021 Earnings Presentation
25 slides from Local Bounti's earnings presentation, Mar 15, 2022
Slide 1: Investor Presentation
Investor Presentation March 15, 2022 Strictly©2022 Confidential Local Bounti Corp
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation of Local Bounti Corporation (“Local Bounti” or the “Company”) includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may
Slide 3: Traditional Agriculture Is in Need of a Transformation
Traditional Agriculture Is in Need of a Transformation Imminent Agriculture Crisis The world will need ~70% more food to feed the global population in 2050, yet there will not be enough arable land and water to sustain traditional agriculture to meet these needs 1-in-4 200k 60% People globally are D
Slide 4: Controlled Environment Agriculture Is the Future of Farming
Controlled Environment Agriculture (“CEA”) Is the Future of Farming CEA Is Disrupting Conventional Agriculture Key Advantages to CEA Zero Residue Up to 90% Up to 90% Year Round Shorter Transit Time Lower Greenhouse Pesticides / Reduction in Water Reduction in Land Production to Retailer Gas Emission
Slide 5: Local Bounti Is Addressing a Significant Market Opportunity
Local Bounti Is Addressing a Significant Market Opportunity One of the largest sustainability-related impacts CEA offers is drastic food waste reduction CEA Market Opportunity CEA’s fresh focus and local Traditional Agriculture Local Bounti branding enable it to capture significant market share for
Slide 6: Outdoor Grown Agriculture is Failing Us
Outdoor Grown Agriculture is Failing Us Triple washed outdoor DID YOU KNOW conventional & organic Chemical bath followed by salt bath: product residuals • Chlorine Dioxide • Peroxyacetic Acid • Calcium Hypochlorite • Sodium Hypochlorite • Peracetic Acid • Ozone Bacteria Mold Yeast Pesticides High •
Slide 7: Why We Started Local Bounti
Why We Started Local Bounti ü Travis and Craig wanted to invest in CEA, but could not find the ideal existing business after performing due diligence ü They became very excited to start with a “clean sheet” and to build a business with long-term CEA leadership in mind ü Existing CEA participants wer
Slide 8: Operationally and Commercially Established
Operationally and Commercially Established Key Highlights Proven Credibility 2025 $462MM Projected Revenues3 Strategic Partner Strong Retail Presence Montana Facility Expansion Complete 2021 3Q21 First Revenue 4Q20 $200M debt facility in place with Cargill Full Commercial Operations 2020 3Q20 1 2 20
Slide 9: Local Bounti's Differentiated Approach
Local Bounti’s Differentiated Approach Unit Economics Local, Distributed & Brand and Sustainable Logistics Strategy Product Diversity ü Achieves superior production unit ü Security of year round supply of ü Strong retailer and customer loyalty ü Mission-driven for sustainability and economics throug
Slide 10: Local Bounti Has Strong ESG Alignment
Local Bounti Has Strong ESG Alignment Local Bounti exhibits exceptional ESG performance, directly addressing over half of the U.N. Sustainable Development Goals ü SDG 2: Enables access to fresh food ü SDG 6: 90% less water usage as compared to conventional agriculture ü SDG 7: Energy-efficient facil
Slide 11: Farm of the Future: Unit Economics Drove Our Patented Facility Design
Farm of the Future™: Unit Economics Drove Our Patented Facility Design 2 1.5x-2.0x Vertical Farm EFFICIENCIES Comparable yield ü Yield Stack 40+ ü Cost + Flow SKUs Optimal production ü Capital potential Combining the best of ü Product Greenhouse vertical and greenhouse 3 ü Resource growing technolog
Slide 12: Retail: Current Go-to-Market
Retail : Current Go-to-Market Diversified Product Offerings Leafy Greens Living Lettuce Living Herbs $ Turns Lbs UOS Unit Economics Green Leaf, Red Leaf, Butter, Romaine, Spring Mix Butter Lettuce Basil, Cilantro 16 days1 28 days2 16-21 days Crop Cycle Greenhouse Greenhouse 24 days 50+ days 38 days
Slide 13: Our Brand Promise
Our Brand Promise Local Bounti Product Offering • Living Herbs • Basil • Cilantro • Living Lettuce • Butter • Leafy Greens • Green Leaf • Red Leaf • Butter • Romaine • Spring Mix 13
Slide 14: Turn a New Leaf
+ TURN A NEW LEAF Starting a new chapter in agriculture, together 14
Slide 15: Delivering Results!
Delivering Results! Local Bounti is a first mover and already in distribution, currently providing delicious, fresh produce at over 500 local retail locations1 “Local Bounti and Cargill share a commitment to “Local Bounti and its delivering farm to fork “Local Bounti provides a products hit the mark
Slide 16: Highly Experienced Management Team
Highly Experienced Management Team Management team with proven track record backed by deep industry knowledge Craig Hurlbert Travis Joyner Kathleen Mark McKinney Josh White Dave Vosburg JD, PhD and diverse set of core competencies Co-CEO Co-CEO Valiasek COO CMO CIO CFO differentiate the Local Bounti
Slide 17: Local Bounti Was Founded with Hyper-focus on Unit Economics
Local Bounti Was Founded with Hyper-focus on Unit Economics Thoughtful Execution Strategy to Enhance Value for All Stakeholders Yield • Enabling Tech • Hybrid Vertical/Greenhouse Resource • Energy • Footprint Cost • COGS driven by scale • Capital Logistics • Fewer Food Miles • Cold Chain People • Co
Slide 18: Local Bounti – Differentiated Value Proposition to the Market
Local Bounti – Differentiated Value Proposition to the Market Technology-driven Approach Key Figures Local Bounti is investing in technology and genetics, boosting profitability operational plant and improving products for consumers 1 producing food and revenue production expansion of 140% operation
Slide 19: Rapid Scaling with Turnkey Modular Approach
Rapid Scaling with Turnkey Modular Approach Technology Modular Build-Out Multi-faceted Control Center Technology Suite Path to eight farms by 2025 Pre-engineered, Enables Remote, Centralized Control for Data-driven Environment Control and R&D with rapid turnkey design and short time to construct Off
Slide 20: Expected High Market Capture with Distributed Farm Footprint
Expected High Market Capture with Distributed Farm Footprint Local Bounti is laying the Canada groundwork to serve customers nationally, through the development of new and existing facilities Superior Unit Land (Grab) to capture market in regions Economics Carpinteria where there are few or no Proof
Slide 21: Expected High Market Capture with Superior Product / Branding
Expected High Market Capture with Superior Product / Branding Local Bounti’s branded strategy is enabled by high product diversity that captures more in-store real estate Creating New Product Categories CEA competitors only compete Land (Grab) in 25% of the products that to capture market in regions
Slide 22: Optionality: Current and Future
Optionality : Current and Future Romaine Green Leaf Red Leaf Spinach Arugula Kale Chard Bok Choy Mustard Butter Lettuce Currently growing In trial for 2022 SKU expansion 22
Slide 23: Multiple Pathways for Potential Growth Expansion
Multiple Pathways for Potential Growth Expansion Clear pathways for growth in the medium term by leveraging Local Bounti’s capabilities around R&D, branded strategy and food production International Subscription- New Product & Franchising & Expansion based Service Segment Licensing Rapidly expanding
Slide 24: Local Bounti Is a Premier Controlled Environment Agriculture Company
Local Bounti Is a Premier Controlled Environment Agriculture Company Premier Controlled Environment ü Stack & Flow Technology™ Model is Crafted for Disruption Agriculture (“CEA”) company that ü Exceptional Unit Economics redefines conversion efficiency and ü Local, Sustainable and Superior Brand ESG
Slide 25: Thank You!
Thank You! ©2022 Local Bounti Corp