Slide 1: Q2 2022 Update
Q2 2022 Update 1
Slide 2: Disclaimer
DISCLAIMER If you are risk averse don’t buy our stock. Don’t rely on anything on this We are not good enough for you to invest if you: presentation. This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect to Verde AgriTech Ltd’s (
Slide 3: Buy Super Greensand at Amazon
Buy Super Greensand® at Amazon: 5% OFF coupon (USA): 05AUGINVEST Canada: Sold Out The discount codes are valid through September 11, 2022 The codes are limited to a single unit per order and to a single order. 3 VERDE AGRITECH
Slide 4: Summary
DISCLAIMER Summary 05 Q2 2022 Highlights 06 Q2 2022 Financial Statements 07 Operational Summary 08 Key Metrics 09 SG&A Expenses 11 Other Highlights 12 Summary of Interest-Bearing Loans 14 2022 Guidance 16 2023 Guidance 17 Brazilian Economic Scenario 18 Potassium Chloride and Diesel vs Oil Prices 19
Slide 5: Summary
Summary • Verde concluded its re-domiciliation to Singapore, pursuant to which the new Singaporean company, Verde AgriTech Ltd, became the holding company of the UK company Verde AgriTech Plc. Verde’s trading symbols did not change, continuing as “NPK” on the TSX. • The Company’s growth over Q2 2022
Slide 6: Q2 2022 Highlights
Q2 2022 Highlights Cash Ability to generate significant free cash flow in the long term. Cash utilised from investing activities increased 2,063% in Q2 2022, to $12,480,000 compared to $577,000 in Q2 2021. Trade and other receivables increased 279% in Q2 2022, to $20,528,000 compared to $5,411,000 i
Slide 7: Q2 2022 Financial Statements
Q2 2022 Financial Statements All amounts in C$’000 Q2 2022 Q2 2021 YoY 2022 YTD 2021 YTD YOY Revenue 24,861 5,376 362% 36,165 6,207 483% Production costs (5,332) (1,498) (256%) (7,987) (1,988) (302%) Gross Profit 19,529 3,878 404% 28,178 4,219 568% Gross Margin 79% 72% N/A 78% 68% N/A Sales and prod
Slide 8: Operational Summary
Operational Summary All amounts in CAD, except percentages Q2 2022 Q2 2021 YoY 2022 YTD 2021 YTD YOY Tonnes sold ‘000 202 96 112% 314 113 178% Revenue per tonne sold $ 123 56 118% 115 55 110% Production cost per tonne sold $ (26) (16) 68% (25) (18) 45% Gross Profit per tonne sold $ 97 40 144% 90 37
Slide 9: Key Metrics Quarterly
Key Metrics Quarterly Sales (Tonnes) Revenue (‘000 CAD) 250000 30000 24,861 202,255 25000 200000 20000 153,674 150000 134,350 15000 111,667 105,769 96,233 11,304 10,851 100000 10,651 10000 71,183 62,895 56,585 5,376 50000 5000 3,956 32,221 3,055 16,558 23,600 2,492 2,209 20,641 1,329 1,491 10,170 9,
Slide 10: Key Metrics Yearly
Key Metrics Yearly Sales (Tonnes) Revenue (‘000 CAD) 1,200,000 120,000 1 109,097 1 1,000,000 1,000,000 100,000 800,000 80,000 Original Original Guidance Guidance 72,263 700,000 600,000 60,000 400,133 400,000 40,000 Q2 Q2 27,710 243,707 200,000 20,000 119,809 9,167 29,648 Q1 6,029 Q1 1,358 - - 2018 2
Slide 11: Sales, General and Administrative Expenses
Sales, General and Administrative Expenses All amounts in CAD $’000, except Q2 2022 Q2 2021 YoY 2022 YTD 2021 YTD YOY percentages Sales Expenses Sales and marketing expenses (711) (348) 104% (1,533) (641) 139% Fees paid to sales agents (359) (63) 474% (495) (71) 593% Product delivery freight expense
Slide 12: Other Highlights
Other Highlights FOB vs CIF (tonnes) General Expenses (C$’000) 250,000 50 -50 -4 -6 202,255 200,000 -77 -70 -150 -106 -250 -185 -240 150,000 137,533 -350 -450 -389 -422 100,000 95,551 -550 64,722 54,464 -650 50,000 41,087 -655 -750 General Legal, IT/Software Taxes and Total General 0 administrative
Slide 13: Sales Channels
Sales Channels Sales channels (% of total sales) Sales channels (% of total sales) 70% 63% 70% 63% 59% 60% 60% 54% 50% 50% 46% 41% 40% 37% 40% 37% 30% 30% 20% 20% 10% 10% 0% 0% Q2 2022 Q2 2021 YTD 2022 YTD 2021 Direct Sales Indirect Sales Direct Sales Indirect Sales Fees paid to Sales Agents and sal
Slide 14: Summary of Interest-Bearing Loans and Borrowings
Summary of Interest-Bearing Loans and Borrowings Part 1: Grace period Term Loan value Balance at Jun 30, Total interest Lender Loan start date Purpose Repayable by (months) (months) (R$’000) 2022 (C$’000) payable* BDMG Apr, 2022 Working capital 24 72 3,000 1,062 Mar, 2030 ***TJLP + 5,00% Santander F
Slide 15: Summary of Interest-Bearing Loans and Borrowings
Summary of Interest-Bearing Loans and Borrowings Part 2: Grace period Term Loan value Balance at Jun 30, Total interest Lender Loan start date Purpose Repayable by (months) (months) (R$’000) 2022 (C$’000) payable* ABC Brazil Aug, 2020 Equipment and 01 42 2,000 395 Mar, 2024 ** IPCA + 8,46% working c
Slide 16: 2022 guidance
2022 guidance On May 03, 2022, Verde announced an increase in its 2022 and 2023 guidance, previously published on Jan 10, 2022. The Company’s original and revised targets are detailed on a quarterly basis, to reflect the market demand's seasonality, as follows: Period Q1 2022 Q2 2022 Q3 2022 Q4 2022
Slide 17: 2022 guidance and 2023 guidance
2022 guidance The revised guidance already contemplated a 55% increase in diesel prices. However, during Q2 2022, the real average diesel price increased by an additional 23%, for a total of 78% year-on-year increase. This negatively impacted Verde's EBITDA and EPS as compared to the revised guidanc
Slide 18: Brazilian Economic Scenario
USD/BRL Exchange Rate Brazilian Economic Scenario 5.80 5.56 5.60 5.40 5,16 Brazilian Real versus US Dollar 5.20 5,25 5.04 4.96 5.00 From January to March 2022, the Brazilian Real 4.80 4.76 valued by 7% in relation to US Dollar, compared to 4.60 the same period of 2020. 4.40 4.20 As of August 12, 202
Slide 19: Potassium Chloride Price, Diesel and Crude Oil Prices
Potassium Chloride Price CIF MG (USD) 1400 Fluctuations in potassium chloride CIF (Minas Gerais) prices 1200 1000 KCl CIF (Minas Gerais) KCl CIF (Minas Gerais) 800 Lowest Price Highest Price 600 400 Q2 2022 US$1,040 US$1,270 200 Q2 2021 US$395 US$555 0 % 163% 128% Low High Diesel and Crude Oil Price
Slide 20: Appendix
Appendix 20
Slide 21: Earned Growth Rate and Number of Clients
Earned Growth Rate Earned Growth Rate (“EGR”) is an accounting-based methodology that provides companies with an objective, data-driven connection between customer success, repeat and expanded purchases, word-of-mouth recommendations, a positive company culture, and business results. It gauges custo
Slide 22: Environmental
Environmental Verde’s production process is sustainable. The processing does not require tailings dams, nor does it generate any waste by products. In sum, the ore recovery rate is 100%. The mined area is mainly composed of degraded pasturelands that, once mined, Verde transforms into tropical fores
Slide 23: Potassium Chloride Replacement
Potassium Chloride Replacement Potassium salt fertilizers are soil biodiversity’s number 1 enemy. The average farmer applies 200 kg of potassium chloride to the soil per hectare per year. This is equivalent to the application of 1,600 litres of bleach as far as killing soil biodiversity.¹ The world
Slide 24: Cultivando Amor Project
Cultivando Amor Project Cultivando Amor is an initiative from Verde, in which there is a partner charity institution for each of the project’s member cities. For each hectare in the region that is cultivated with BAKS® or K Forte®, Verde donates part of the sales’ profits to the partner institution
Slide 25: Permit Status – Last 12 months
Permit Status – Last 12 months Mine Pit Date Category Status Event 2 February 10, 2022 Mining Granted 2,500,000 tpy Mining Concession 25 25 VERDE AGRITECH
Slide 26: Permit Summary
Permit Summary Under Brazilian law, a pit is fully permitted to mine when the Group holds both a Mining Concession/Permit and Environmental License for that area. Verde is fully permitted to mine 2,833,000 tpy and has submitted concurrent mining and environmental applications for an additional 2,500
Slide 27: TSX: NPK
TSX: NPK investor.verde.ag 27