Agronomics Limited · LSE:ANIC
Agronomics — Investor Presentation (October 2021)
29 slides from Agronomics's investor presentation, October 2021
Slide 1: Corporate Presentation October 2021
Corporate Presentation October 2021 1
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being provided to you (the “Recipient”) by Agronomics Limited (the “Company” or “Agronomics”) for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of
Slide 3: Executive Summary
Executive Summary • Agronomics Limited (AIM:ANIC), a leading listed company in cellular agriculture with a focus on cultivated meat and alternative proteins • Targets companies with defensible intellectual property and technology that has the potential to challenge conventional agriculture • Unique
Slide 4: Disruption of the Cow
Disruption of the Cow 16 companies within the portfolio Seed-Series B stage opportunities Net Assets (including cash): £86.6m Cultivated beef Global mandate including companies based in UK, USA, Dairy proteins China, Singapore, Israel, the Netherlands, Finland, Germany and New Zealand Portfolio cons
Slide 5: We are on the cusp of the deepest, fastest disruption in food
”We are on the cusp of the deepest, fastest, most consequential disruption in food and agricultural production since the first domestication of plants and animals ten thousand years ago” 04 Source: Rethinking and Agriculture 2020-2030
Slide 6: Timeline
Timeline The world’s first lab-grown burger, developed from a research project led by prof. Mark post, was showcased in BlueNalu’s demonstration 2013, funded by Sergey Brin - day of its yellowtail amberjack cell-cultured World’s first cultivated costing €250,000 chicken approved for seafood, served
Slide 7: Agronomics Limited Board of Directors
Agronomics Limited Board of Directors Richard Reed, CBE Jim Mellon Non-Executive Chairman Non-Executive Director Co-founder of Innocent Drinks, acquired by Coca Cola in 2013. UHNW investor, author of 6 books and entrepreneur. Experience Co-founder of JamJar Investments, a consumer goods venture in i
Slide 8: Global Population Growth Causing Strain on Resources
Global Population Growth Causing Strain on Resources Average total meat supply per person 140 Average total meat supply per person measured in 120 100 World Population Growth* kg per year 80 1800 2021 2050 60 40 1 billion 7.9 billion 9.7 billion 20 0 1991 2003 1961 1963 1965 1967 1969 1971 1973 1975
Slide 9: Implications of Animal Husbandry
Implications of Animal Husbandry Greenhouse gas emissions Human health 18% of all anthropogenic greenhouse gas emissions are from animal 80% of all antibiotics are used in agriculture agriculture, more than all forms of transport combined 1 in 6 Americans get sick each year from foodborne diseases 2
Slide 10: Global Water Demand
Global Water Demand 50% of all fresh water is used 50% 6bn Water shortages could for animal agriculture Affect approximately 6bn people by 2050 09 Source: RethinkX
Slide 11: Unsustainable Demand on Natural Resources
Demand on Unsustainable demand on natural Naturalresources Resources Land Acreage of Continental U.S. (1.9bn Total Acres) 50%of all habitable land 205m Acres 70% of the Amazon Rainforest on Earth is used for has already been destroyed agriculture for animal agriculture grazing or crops to feed 50% t
Slide 12: Rise Of Conscious Consumption
Rise Of Conscious Consumption Taste, price and convenience wins % of Consumers Very or Extremely Likely to purchase plant-based or cultivated meat regularly 70% High 60% 62% 63% 59% 50% 56% 40% Cultivated 30% 33% 30% 20% Novel vegan 10% Commercial potential Classic vegetarian 0% USA China India Inse
Slide 13: Cultivated Meat Sector
Cultivated Meat Sector 70 companies globally within the sector with further material raises this year Funding requirements growing rapidly in the near term as companies build out manufacturing facilities $800m SuperMeat Wild Type $700m Good Meat $600m 541m BlueNalu USD already MeaTech raised in 2021
Slide 14: Valuation Reference Points
Valuation Reference Points Institutional and strategic investors Valuation Upside Foods Perfect day Just* comparators Chicken, wagyu beef, Product focus Beef, chicken, duck Dairy products plant-based egg Pre-money USD 450m USD 1.2bn USD 1.2 bn+ valuation *rumuoured only Fundraise stage Series B Seri
Slide 15: The New Agrarian Revolution
The New Agrarian Revolution Global meat consumption: By 2040, conventional meat supply will drop by more than 50% AT Kearney report: cultivated meat market share predicted to be 35% by 2040 In billion US$ Protein industry to be disrupted $1 trillion+ $120 billion $100 billion Conventional meat, dair
Slide 16: Investment Process
Investment Process Proprietary Research and Deal Origination • Well imbedded and regarded investor in the sector • Direct approaches from entrepreneurs and referrals from professional network • Close engagement with the key stakeholders in the sector, including the leading non-profit organisations s
Slide 17: Scientific Advisory Board
Scientific Advisory Board Sara Ranjbarvaziri, Ph.D. Ian Smith, Ph.D. Postdoctoral fellow in the School of Medicine at Cell biologist with over 18 years experience in lab Stanford University, with specific focus on the based research. Researcher at University of generation of iPSC lines using CRISPR-
Slide 18: Portfolio Composition and Financial Metrics
Portfolio Composition and Financial Metrics Uninvested cash Portfolio by type 7% 20% 54% 1.4% Fermentation 13% Plant-based 13% 2.1% Cultured Meat Materials 2.5% Other 47% 2.9% • Legacy holdings (<1%) will be sold down opportunistically 3.9% • Approximate cash balance as at 6th October 2021: £55m 6.1
Slide 19: Summary
Summary • Early mover advantage in a nascent sector disrupting a number of large industries – meat, seafood, dairy and materials • Established portfolio with pre-emption rights in some of the most advanced and exciting companies in the field • Sector supported by major secular trends, including sust
Slide 20: Appendix
APPENDIX
Slide 21: Overview of Cellular Agriculture
Overview of Cellular Agriculture Cultivated meat is meat grown in vitro, Phase 1 Phase 2 without the need to raise animals for slaughter Proliferation Differentiation Consumer Cell expansion Cell specialisation products A change of conditions initiates cells to differentiate, turn in to, muscle A bi
Slide 22: Cost Reduction & Moo's Law
Cost Reduction & Moo’s Law $400 $376.80 • Cultivated meat’s most expensive input is growth media – at present 99% of total inputs excluding labour $350 • Two growth factors, FGF-2 and TGF-β are particularly expensive • GFI scenario analysis shows clear path to cost competitiveness $300 with no techn
Slide 23: Climate Competitive
Climate Competitive % Reduction In Global Warming Potential Or Land Use Feed Conversion Ratio (kg in per kg out) Global warming Land use 100 14 90 95 92 12 12.7 80 70 10 72 60 63 8 50 52 6 40 5.7 30 4 4.6 20 2 2.8 10 17 0.8 0 0 Cultivated meat Cultivated meat Cultivated meat compared to ambitious co
Slide 24: Regulation
Regulation 6-18 months Seek Regulatory Early Full scale Establish Pilot Small scale regulatory approval consumer manufacturing Facility production approval granted adoption plants SGP USA EU • B2B and B2C approaches • Pivotal moment on 2nd December 2020 when the Singapore Food Agency • Grounded meat
Slide 25: Portfolio Companies
Portfolio Companies Cost USD 10.5m USD 8.0m* EUR 5.20m EUR 4.15m EUR 3.5m EUR 3.0m USD 3.0m Current Value USD 12.75m USD 8.55m EUR 8.15m EUR 10.7m EUR 3.5m EUR 3.0m USD 5.55m Stage Series A Pre-Series B Series A Series A Series B Series A Seed % Ownership 11.69% 5.85%*^ 5.84% 5.94% 1.62%” 5.35% 1.0%
Slide 26: Portfolio Companies
Portfolio Companies Agronomics USD 3.0m USD 2.0m USD 700k USD 500k USD 500k investment Pre-Series A Stage Series B Seed Seed Seed % Ownership 2.95% 2.22%^ 7.0% 4.4%^ 1.6% Current Value USD 3.0m USD 2.0m USD 700k USD 500k USD 640k Category CRISPR gene edited seedlings Cultivated chicken Cultivated po
Slide 27: Portfolio Companies
Portfolio Companies Agronomics USD 350k USD 150k USD 50k investment Stage Series A Seed Pre-Seed % Ownership 1.2% 3.0%^ 1.43%^ Current Value USD 350k USD 150k USD 300k Category Plant-based food Cultivated pet food Cultivated meat and cell-cultured seafood Lever VC, Notable Blue Horizon Ventures, KBW
Slide 28: Structure and Shareholders
Structure and Shareholders ANIC Share Price Corporate Tax and Fee Structure: £0.40 • Corporate income and capital gains subject to 0% tax £0.35 • No withholding tax on dividends paid to shareholders £0.30 £0.25 Management Fee: Nil £0.20 Performance Fee: 15% calculated on increase in NAV subject to h
Slide 29: Agronomics Limited contact details
AGRONOMICS LIMITED 18 Athol Street, Douglas, Isle of Man IM1 1JA +44 (0) 1624 620 711 info@agronomics.im