S&W Seed Company · OTC:SANW
S&W Seed — Investor Presentation (March 2021)
30 slides from S&W Seed's investor presentation, March 2021
Slide 1: S&W Seed Company – March 2021
March 2021 S&W Seed Company (Nasdaq: SANW)
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, and such forward-looking statements are made pursuant to the safe harbor
Slide 3: Significant Trait Technology Development and Commercialization Experience
Significant Trait Technology Development and Commercialization Experience Mark Wong, S&W Seed Company CEO ► 40+ years of experience in agriculture as a senior executive ► Successfully built, operated, and sold multiple seed technology companies to industry leaders across multiple crops, including so
Slide 4: Key Highlights
Key Highlights The Ongoing Transformation of S&W ► Launch of proprietary non-GMO trait technology in FY21 anticipated to transform the operating profile of S&W into a high growth, high margin business ► More than 50% of gross profit contribution over next decade expected to come from new tech produc
Slide 5: Financial Vision
Financial Vision Launch of trait technology products expected to transform S&W with opportunity for significant earnings 3 Year Vision (FY24) 5 Year Vision (FY26) 10 Year Vision (FY31) Revenue Revenue Revenue $130M Excluding Acquisitions $176M Excluding Acquisitions $234M Excluding Acquisitions $12M
Slide 6: S&W Has Created a Powerful and Diversified Agricultural Platform
S&W Has Created a Powerful and Diversified Agricultural Platform Management Global U.S. Farmer Team Production Dealer Network Broad Crop Research & International Portfolio Development Distribution 6
Slide 7: Core Crop Portfolio
Core Crop Portfolio Diversified middle market agricultural platform Alfalfa Hybrid Hybrid Wheat Pasture Stevia Sorghum Sunflower Products S&W Seed Company (Nasdaq: SANW) 7
Slide 8: Seed Market Sizes
Seed Market Sizes $500 $500 $1 million(1) million (1) billion (1) ► ALFALFA ► SORGHUM ► SUNFLOWER ► Approximately 200 ► 60 million metric ► 55 million metric million metric tons(2) tons(3) tons(3) ► Global alfalfa hay ► Global sorghum ► Global sunflower crop production crop production seed crop prod
Slide 9: Business Evolution to Trait Technology Company
Business Evolution to Trait Technology Company
Slide 10: S&W's Ongoing Evolution Into A Non-GMO Seed Trait Technology Company
S&W’s Ongoing Evolution Into A Non-GMO Seed Trait Technology Company More than 50% of gross profit contribution expected to come from new technology products over next 10 years 1980 - 2020 2021 and Beyond ► Seed company with minimal trait technology integration ► Non-GMO Trait technology company in
Slide 11: Lead Novel Commercial Trait Technology Products
Lead Novel Commercial Trait Technology Products Three novel and proprietary products set to be commercialized Double Team™ Sorghum (DT™) Improved Quality Alfalfa (IQ™) Dhurrin-Free Sorghum (DF™) Double Team™ Sorghum (DT™) has Improved Quality Alfalfa (IQA) is gene-edited to Dhurrin Free Sorghum remo
Slide 12: Untreated Sorghum vs Treated With Double Team
Untreated Sorghum Treated With Double Team ► Field overrun by grassy weeds ► Grassy weeds eliminated ► Near total yield loss due to weed ► High return on investment for trait competition technology S&W Seed Company (Nasdaq: SANW) 12
Slide 13: Proprietary Traits Development and Anticipated Launch Timing
Proprietary Traits Development and Anticipated Launch Timing S&W continues to expand its pipeline of trait technology projects Proprietary Traits 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Double Team Sorghum Phase 1 Phase 2 Phase 3 Commercialization Phase 1 (Calyxt) Phase 2 Phase 3 Comm
Slide 14: Financials
Financials
Slide 15: Revenue
Revenue $120 Core Revenue (excluding product revenue attributable to FY ends June Pioneer/Corteva) ► Core Revenue growth initiatives: $100 ► Growth in key home markets of U.S. and Australia $78 - $81 $80 $ in Millions ► Expansion of sorghum through expanded distribution channels $59.9 $60 and introd
Slide 16: Selected Financials: Gross Margins and Adjusted EBITDA
Selected Financials Adjusted Gross Margins FY ends June 40% Impact from Licensing and Writedown ► Gross margin and EBITDA expansion initiatives: 35% ► Growth in high-margin sorghum sales 30% ► Launch of high-margin sunflower sales 16.9% 25% ► Expansion of wheat end point royalty market in Australia
Slide 17: Total Company Revenue and EBITDA Vision
Total Company Revenue and EBITDA Vision Significant earnings power through tech products Revenue Vision Adjusted EBITDA Vision $250 Fiscal Year Ends June $80 Fiscal Year Ends June $234 $69 $70 $200 $70 $60 $176 $50 $ in Millions $ in Millions $35 $150 $40 $130 $34 $12 $30 $100 $20 $13 $164 $141 $10
Slide 18: Revenue and Adjusted EBITDA Vision Bridge
Revenue and Adjusted EBITDA Vision Bridge Business model highlights significant leverage with launch of new tech products Fiscal Year Ends June 30 3 Year Revenue and Adjusted EBITDA 5 Year Revenue and Adjusted EBITDA 10 Year Revenue and Adjusted EBITDA Vision Bridge Vision Bridge Vision Bridge $ in
Slide 19: Balance Sheet Flexibility for Growth
Balance Sheet Flexibility for Growth Capital Raise Activity ($ in Millions) 6/30/2017 6/30/18 6/30/19 6/30/20 12/31/20 ► In September 2018, completed $5.0 million private placement with the Company’s largest shareholder at $3.11 per share. Cash and cash equivalents $0.7 $4.3 $3.4 $4.1 $2.9 ► In Octo
Slide 20: Summary
Summary
Slide 21: Shareholder Value Generation
Shareholder Value Generation Right Products Right Markets Right Team ➢ Launch of trait ➢ Customer and market ➢ S&W boasts one of technology products surveys indicate grower the industry’s most expected to transform demand/adoption is accomplished S&W into a high growth, expected to be strong for man
Slide 22: Seed Trait Technology Management Team
Seed Trait Technology Management Team Mark Wong ► Created first GMO sunflower Steve Calhoun ► Technical development BXN and Roundup CEO and Director ► Successful creation of Roundup Ready soybeans VP of Research and Ready cotton ► Developed Monsanto insect and herbicide gene stacks in Development ►
Slide 23: Expanded Management
Expanded Management Mark Wong Dennis Jury Jacob Kurzawa Ernst Topitschnig CEO and Director SVP, International Corporate Controller Commercial Lead Europe Production and Supply Chain Matthew Szot Kirk Rolfs Andrea McFarlane CFO, EVP of Finance SVP, Production and Supply Director of Human Resources an
Slide 24: Board of Directors
Board of Directors Mark Harvey Consuelo Madere Robert Straus Chairman of the Board Former Executive Officer, Portfolio Manager Global Wynnefield Capital Commerical/Operations, Monsanto Company (retired) Mark Wong Alex Matina Alan Willits CEO, S&W Seed Company Vice President, Investments Former Chair
Slide 25: Appendix
SEED COMPANY “© Appendix’,
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures In addition to financial measures included in this presentation that are calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company has provided the following non-GAAP financial
Slide 27: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA Fiscal Year Ended June 30, 2013 2014 2015 2016 2017 2018 2019 2020 Net Income ($2,516) $373.1 ($3,163.1) $365.2 ($11,822.0) ($4,725.1) $(9,305.2) $(19,674.3) Non-recurring cost of revenue charges 2,333.1 - 265.9 259.6 - - - - Separation costs - - - - 674.6 - - - Restructurin
Slide 28: FY 2018 Non-GAAP Adjustments
FY 2018 Non-GAAP Adjustments 28
Slide 29: FY 2019 Non-GAAP Adjustments
FY 2019 Non-GAAP Adjustments 29
Slide 30: YTD 2020 Non-GAAP Adjustments
YTD 2020 Non-GAAP Adjustments 30
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