Aquabounty Technologies, Inc. · NASDAQ:AQB
Aquabounty Technologies — Investor Day (September 2022)
36 slides from Aquabounty Technologies's investor day presentation, September 2022
Slide 1: A Better Way to Feed the World. A Smart Investment.
A BETTER WAY TO FEED THE WORLD. A SMART INVESTMENT. AquaBounty Technologies, Inc. | NASDAQ: AQB | September 2022 2022 ANALYST DAY PRESENTATION 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement 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. All statements other than statements of historical f
Slide 3: Who Is AquaBounty?
Who Is AquaBounty? • Pioneers in land-based aquaculture using proprietary technology to deliver game-changing solutions to global problems • Committed to feeding the world with seafood farmed on land efficiently, sustainably and profitably • Blazed the trail for genetically engineered animal protein
Slide 4: Meet the Aquaculture Pioneers
MEET THE AQUACULTURE PIONEERS 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 4
Slide 5: The Future Demands Healthy, Sustainable Seafood
The Future Demands Healthy, Sustainable Seafood • Global population projected at 9 billion people by 20501 • Geographies with significant population growth create demand for healthy protein as the middle class expands • Aquaculture must double its output in 30 years to fill the seafood gap and meet
Slide 6: Pressure on the Ocean Requires New Solutions
Pressure on the Ocean Requires New Solutions We must protect and preserve delicate and stressed ecosystems and fisheries. ! 90% of the world’s fisheries are Viable sea cage farming has limitations fully fished or overfished* • Infestations of sea lice • Unpredictable algae bloom • Ocean contaminatio
Slide 7: Transforming Aquaculture to Better Feed the World
Transforming Aquaculture to Better Feed the World Start by rapidly accelerating seafood production by growing salmon more efficiently, more sustainably and more profitably. Shift salmon Use freshwater tanks Use genetically production to and RAS technology engineered salmon land-based to nurture the
Slide 8: Leading with a sense of urgency is critical
“Biotechnology is a fundamental necessity for the future of the global food system. Leading with a sense of urgency is critical, and the time for action is now!” - SYLVIA WULF, CEO 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 8
Slide 9: The AquaBounty Operating Model
The AquaBounty Operating Model We believe the combination of our unique expertise and approach is scalable and will drive growth. 3 Key Growth Opportunities: COMPETENCE IN RAS Farming and RAS Farming Biological & Digital Technology • Translatable to new species 2 • RAS technology improvements in bio
Slide 10: Purpose and Values
Purpose and Values Our purpose and values attract talent and drive creativity. Our Purpose Feed the world by transforming aquaculture through the use of technology, creating a safe, secure and sustainable future. Our EPIC Values EXCELLENCE Doing our best every day.. PASSION Doing what we love and lo
Slide 11: ESG Is Foundational to Our Purpose and Our Values
ESG Is Foundational to Our Purpose and Our Values • Our practices incorporate ESG principles to create an Environmental Social Governance efficient, sustainable IMPACT ON PLANET IMPACT ON COMMUNITIES CONDUCT AND POLICIES and profitable • Greenhouse gas emissions • Worker safety • Executive pay, demo
Slide 12: Experienced Management Team
Experienced Management Team Sylvia Wulf PRESIDENT & CEO Proven leader and accomplished executive skilled at driving growth and improved performance. Alejandro Rojas, DVM David Melbourne Chris Beattie Angela Olsen David Frank Melissa Daley CHIEF OPERATING OFFICER CHIEF COMMERCIAL OFFICER CHIEF SCIENT
Slide 13: Leading the Way: Historical Milestones
Leading the Way: Historical Milestones BEGIN REGULATORY HEALTH CANADA CONVENTIONAL SALMON HARVEST FIRST GE APPROVAL PROCESS FOR APPROVES GE SALMON FOR EGGS ENTER INDIANA SALMON IN MAY GE SALMON CONSUMPTION IN CANADA FARM HATCHERY PRODUCT APPROVAL IN BRAZIL 1989 1995 2015 2016 2017 2018 2019 2021 202
Slide 14: Recent Milestones: Smart & Sustainable Growth
Recent Milestones: Smart & Sustainable Growth 1 SCALING 2 RAMPING 3 BRINGING GE SALMON 4 BOLSTERING OUR THE BUSINESS PRODUCTION TO MARKET BALANCE SHEET • Made strong strides • Implemented primary • Robust communications • Completed four equity to scale commercial processing capability in platform to
Slide 15: Consumer Research Supports Commercial Relevance
Consumer Research* Supports Commercial Relevance $ “Price” and “freshness” General awareness of Respondents with the highest household remain important to GMOs, as it pertains to income and education levels: respondents when all food, has increased • Are the most frequent consumers shopping for seaf
Slide 16: 7 out of 10
Consumer interest in AquaBounty salmon remains strong: 7out of 10 respondents showed high purchase intent* *Qualitative/quantitative research conducted by AquaBounty 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 16
Slide 17: Fish Farms Rooted in Science and Technology
FISH FARMS ROOTED IN SCIENCE AND TECHNOLOGY 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 17
Slide 18: Where We Are Today
Where We Are Today Rollo Bay, Prince Edward Island, Canada FARM Bay Fortune, Prince Edward Island, Canada R&D Pioneer, Ohio FARM COMING SOON! Albany, Indiana FARM 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 18
Slide 19: Outperforming & Optimizing at Our Farms
Outperforming & Optimizing at Our Farms Our genetically engineered Atlantic salmon saw continued market validation from seafood distributors in the 2nd quarter of 2022. • Generating revenue at the Albany and PEI farms • 2nd quarter revenue provided a 371% YOY increase Farm performance and results ar
Slide 20: Focused on Continuous Improvement: Test, Review, Refine
Focused on Continuous Improvement: Test, Review, Refine We are focused on improving processes across critical functions that drive retention, efficiency and cost control. Process Priorities • Talent Management • Finance • Operations • Commercial • Legal • R&D/Regulatory Map Key Identify/Prioritize E
Slide 21: Construction & Cost Control in Pioneer, Ohio
Construction & Cost Control in Pioneer, Ohio Work continues on the site while we evaluate ways to reduce current cost estimates affected by 40-year high inflation and rising interest rates. • Established roads and utilities • Completed grubbing and grading • Started work on Geo Piers and underground
Slide 22: Ohio Farm Becomes Template for Future Farms
Ohio Farm Becomes Template for Future Farms Experience with site selection, government regulations, financing, design and engineering creates opportunities for: • Reduced construction time • Efficiencies in fish management, energy use and water consumption • New or different construction materials f
Slide 23: Goal: New Farm Built Every 2 Years
Goal: New Farm Built Every 2 Years 1 SITE SELECTION 2 PREPARATION 3 CONSTRUCTION • Project Definition • Planning/Budgeting • Construction • Logistic Analysis & • Preconstruction • Project Closeout Community Filtering • Design • Regulatory • Site Selection Analysis • Procurement • Tours & Real Estate
Slide 24: Strategic Site Selection
Strategic Site Selection MORE FAVORABLE LESS FAVORABLE • Use GeoCision filtering model to minimize distance to overall U.S. population • Focus on areas of high population density and demand • Ohio farm site selected with future growth in mind • Goal to build Midwest, South Central and smaller West C
Slide 25: Continued Global Expansion
Continued Global Expansion • Targeting high volume/ North America Israel Continued expansion in U.S. and Canada Two sites identified and in strategic Net Import with potential for 4–5 farms by 2030 advanced discussions to form a JV markets to include: with a leading partner for Farm 4 • China: 198,0
Slide 26: Species Expansion
Species Expansion • Support growth and expansion needs with new products and/or support of new species • RAS farming expertise translatable to new species • Breeding and genetic improvements viable in other species • Shrimp is a primary focus and represents a growth opportunity • Estimated $35B+ Glo
Slide 27: Optimized Performance Positioned for Growth
OPTIMIZED PERFORMANCE POSITIONED FOR GROWTH 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 27
Slide 28: Biotechnology: A Key Differentiator
Biotechnology: A Key Differentiator AquaBounty leverages its core competency Focus Areas: in biotechnology to drive continuous FISH HEALTH operational improvement and potential for Select robust breeding lines to reduce mortality and improve welfare new lines of business. • 5 PhDs on the team FISH N
Slide 29: Regulatory Expertise
Regulatory Expertise AquaBounty is uniquely positioned to navigate regulatory pathways. Established regulatory team with U.S., Expertise in design and operation of Canadian and international experience contained facilities • FDA, USDA, Health Canada, Environment Canada, Canadian Food Inspection Agen
Slide 30: Charting New Courses through Digital Enhancements
Charting New Courses through Digital Enhancements Translating data into business intelligence. Wealth of R&D Data and + Automated Approach to Data = Smart Growth Know-How Collection & Expansion MEASURE MANAGE MANIPULATE • RAS environment better for • Emerging computer vision • Automated data gatheri
Slide 31: Prudently Driving Value & Growth
Prudently Driving Value & Growth Leveraging and extending our core competencies across genetics, fish health/nutrition and RAS technology. PRIMARY FOCUS SECONDARY FOCUS Organic Growth Inorganic Site Expansion RAS Genetics R&D Projects M&A JV Investment 4–5 new farms Egg production Generate sustainab
Slide 32: Improve the Circular Economy & Monetize Waste Streams
Improve the Circular Economy & Monetize Waste Streams • Indiana and eventually Ohio will produce significant amounts of waste through manure, offal, blood and mortalities • While currently there is a cost associated with WASTE disposing of this material, research is being conducted to turn waste int
Slide 33: A Better Way to Feed the World
A BETTER WAY TO FEED THE WORLD 2022 ANALYST 2022 ANALYST DAY DAY PRESENTATION PRESENTATION 33
Slide 34: Points of Differentiation & Critical Priorities
Points of Differentiation & Critical Priorities 1 VALIDATION 2 FACILITIES 3 PROCESSES 4 MARKET STRATEGY • Seeking ongoing • Ramping production at • Using the Indiana facility to • Bringing a high volume of market validation for our our Indiana facility refine our production and fresh, sustainable At
Slide 35: Investment Highlights
Investment Highlights Company Stock • Experienced farming operator in an • Attractive stock in small cap agriculture emerging segment of aquaculture • Considered an Ag Tech stock and valued • Proven competence in fish genetics with a technology premise • Focused on operational improvement and • Curr
Slide 36: Let's Have a Conversation
Let’s Have a Conversation AquaBounty uses next-generation land-based aquaculture and gene-editing technology that support ocean conservation in order to provide consumers with regional access to nutritious, fresh and affordable salmon with no added antibiotics. INVESTOR RELATIONS AQUABOUNTY Lucas A.
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