Slide 1: Q3 Report 2024 Company Update
Q3 REPORT 2024 Company Update Desert Control AS
Slide 2: Desert Control in Brief
DESERT CONTROL IN BRIEF Provider of Liquid Natural Clay 12+ years of R&D, 5+ years of (LNC) for soil improvement and independent validation and field water conservation. pilots. Proven water savings of 35-50% Currently operating in the U.S. and while improving plant health and through licensed opera
Slide 3: Agenda
Q3 2024 AGENDA COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers 3 | Q3 2024 Company Update
Slide 4: Highlights
Q3 2024 HIGHLIGHTS COMMERCIAL TECHNOLOGY TEAM Growing Commercial Traction in the Technology Development On-Track Attracting World-Class Talent and United States and the Middle East to Unlock New Opportunities Leadership to our Team and Board • First contract for a complete golf course with • Next-Ge
Slide 5: Recurring Revenue Agreement with Berkeley Country Club
MILESTONE ACHIEVEMENT: RECURRING REVENUE AGREEMENT WITH BERKELEY COUNTRY CLUB Subject to successful validation, full deployment of LNC for the 63-acre golf course is anticipated to be executed at the latest in H2-2025 Berkeley Country Club contract is Outcome based revenue model generating monthly r
Slide 6: Solid Pilot Results Strengthen Validation
SOLID PILOT RESULTS STRENGTHEN VALIDATION AND SUPPORT NEGOTIATIONS FOR LARGER CONTRACTS IN THE UNITED STATES LANDSCAPING AGRICULTURE • Landscaping pilots in California achieved over 25% irrigation • Harvest data from an LNC-treated date farm in Arizona showed savings (some clients report water-use r
Slide 7: The Business Case for LNC in Agriculture
THE BUSINESS CASE FOR LNC IN AGRICULTURE Annual metrics No LNC LNC 5-Acre Date Farm (250 trees) Reduce Input Costs Yield revenue $27,675 $30,854 Water costs ($13,700) ($7,398) LNC one-time investment: $11,500 1) • Less water use Fertilizer costs ($3,750) ($2,813) Payback period: ≈1 year • Lower ener
Slide 8: U.S. Pilot Program Update: Q3 & YTD 2024
U.S. PILOT PROGRAM UPDATE: Q3 & YTD 2024 (42 PROJECTS) Agriculture (22) STAGE 1 • 9 Permanent Crop Pilots • 4 Specialty Pilots § 3 Citrus, 2 dates, 2 vineyards § 1 Land restoration Technical Pilots § New Planting: 1 Dates, 1 Citrus § 3 Farm road dust control Proving LNC ”holds water” without • 3 Row
Slide 9: Pilot Program Stages and Typical LNC Volumes
PILOT PROGRAM STAGES AND TYPICAL LNC VOLUMES Agriculture Example STAGE 1 Landscaping Example Typically, Technical Pilots Typically, a 10,000 – ≈ 10,000 LNC 20,000 ≈ 50 trees Proving LNC ”holds water” single green or LNC liters liters or 0.5 hectares without harming plants a few tee boxes on small pl
Slide 10: Growing Pipeline of Opportunities in the United States
A SIGNIFICANT PIPELINE OF OPPORTUNITIES DRIVEN BY THE PILOT PROGRAM CONTINUES TO GROW IN THE UNITED STATES Total potential LNC demand from ongoing engagements and identified prospects (chart below: LNC volume in million liters) • YoY growth in deployed LNC volume and revenue of more than 2x Advanced
Slide 11: Licensed Operator Partners Gaining Momentum in the Middle East
LICENSED OPERATOR PARTNERS GAINING MOMENTUM IN THE MIDDLE EAST “Desert Control recorded its first licensing royalties from the Middle East in the third quarter of 2024.” “A new contract for 1.8 million liters of LNC was secured for a UAE real estate project.” “Landscape nursery pilots in the UAE and
Slide 12: Technology Development On-Track to Unlock New Opportunities
TECHNOLOGY DEVELOPMENT ON-TRACK TO UNLOCK NEW OPPORTUNITIES 1000X CAPACITY INCREASE PROTOTYPE CURRENT TARGET (UNDER DEVELOPMENT) Unit Capacity (l/h): 120 3,750 15,000 90,000 >120,000 Application: Manual Manual Manual Semi-automated Automated Time/50 Hectares (Ha): 9.5 years 16 weeks 4 weeks 1 week 3
Slide 13: Technology Scalability Example – Limoneira Journey
TECHNOLOGY SCALABILITY EXAMPLE – LIMONEIRA JOURNEY xxxxxx trees 6,000 trees 50 trees 2,000 trees Jul-2022 Jan-2023 Apr-2024 Future > Based on target Acres 0.5 20 60 1200 from unit capacity Q2-2025 Project days 4 8 8 Est. 3 weeks Machine-hours 32 80 40 Est. 300 Liter/hour 469 7,500 52,500 Est. 120,00
Slide 14: Solid Pilot Performance; R&D Programs and Priorities
SOLID PILOT “Collaboration with Syngenta PERFORMANCE has shown promising lab results of synergies with LNC.” LANDSCAPING “Results show improved water efficiency, • Golf Courses, Turf & Sports Fields root biomass, and microbial activity.” RESEARCH & DEVELOPMENT PROGRAMS AND PRIORITIES INCREASE VALUE
Slide 15: Agenda
Q3 2024 AGENDA COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers 15 | Q3 2024 Company Update
Slide 16: Financial Highlights: Key Figures
FINANCIAL HIGHLIGHTS KEY FIGURES * 16 | Q3 2024 Company Update
Slide 17: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 17 | Q3 2024 Company Update
Slide 18: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 18 | Q3 2024 Company Update
Slide 19: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS 19 | Q3 2024 Company Update
Slide 20: Discontinued Operations (Middle East)
DISCONTINUED OPERATIONS (MIDDLE EAST) Middle East Operations Update During 2023, Desert Control Middle East LLC completed the sale of its UAE production entity, transferring LNC production licenses and assets to Mawarid Holding Investment LLC and Holistic Earth Advanced Regeneration Technologies SA.
Slide 21: DSRT Shareholders
DSRT SHAREHOLDERS 21 | Q3 2024 Company Update
Slide 22: Agenda
Q3 2024 AGENDA COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers 22 | Q3 2024 Company Update
Slide 23: Outlook: The Momentum Will Keep Growing
Outlook The Momentum Will Keep Growing Under a Balanced Market Strategy AND Q3 2024 GOLF & LANDSCAPE: CALIFORNIA NEXT-GENERATION LNC COMPANY UPDATE • Significant growth potential driven by high and increasing water costs. PRODUCTION SYSTEM • Commercial readiness targeted in H1 ’25. SUMMARY • Establi
Slide 24: Agenda
Q3 2024 AGENDA COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers 24 | Q3 2024 Company Update
Slide 25: Cautionary Note
Cautionary Note 25 | Q3 2024 Company Update
Slide 26: Thank you for your attention!
Thank you for your attention!
Slide 27: Appendix
APPENDIX - COMPANY PRESENTATION - 27
Slide 28: Making Earth Green Again
COMPANY PRESENTATION MAKING EARTH GREEN AGAIN Soil and Water Conservation Technology from Desert Control
Slide 29: About Desert Control
ABOUT DESERT CONTROL Combat Strengthen Reduce Water Desertification Food Security Scarcity Focus Climate-smart agriculture technology to combat desertification, soil degradation and water scarcity 12 million hectares of Less than 60 years left for 1.8 Billion people will fertile land perish to globa
Slide 30: We Want to Solve the Global Resource Crisis
WE WANT TO SOLVE THE GLOBAL RESOURCE CRISIS BECAUSE ACCELERATING WATER SCARCITY AND SOIL DEGRADATION THREATEN LIFE ON EARTH Increasing population… …drive need for food and water… …causing substantial water shortage (billion people) (billion hectares of productive agricultural land) (billion m2 of wa
Slide 31: Reducing Water Requirements in Agriculture
WE WANT TO SOLVE THE GLOBAL RESOURCE CRISIS AND REDUCING WATER REQUIREMENTS IN AGRICULTURE WILL HAVE THE MOST SIGNIFICANT IMPACT >70% of the freshwater in the world is used for agriculture Food production depends on water SHARE OF FRESHWATER WITHDRAWALS BY SECTOR (%) 6% 5% 7% 11% • The agriculture i
Slide 32: What's Our Solution?
WHAT’S OUR SOLUTION? Liquid Natural Clay (LNC) is a nano-tech powered AS SEEN ON 100% natural mixture of water and minerals. It can be applied using existing irrigation systems, seeping into the ground, creating a soil structure that retains water and nutrients like a sponge, saving up to 50% of wat
Slide 33: The Problem We Solve
THE PROBLEM WE SOLVE The Chief Problem Resulting in Sandy Soil Less than 15% have large particles with low of water is retained in the ‘surface charge’ – water has topsoil for plant use ‘nothing to stick to’ Water and nutrients drains very fast Most of the water and nutrients are lost 33 | Q3 2024 C
Slide 34: How It Works
HOW IT WORKS LNC-treated Sandy Soil - - - Sand More water and nutrients retained in the root zone - Grain - - - - Less water and nutrients are lost 34 | Q3 2024 Company Update
Slide 35: How It's Delivered
HOW IT’S DELIVERED Assess & Analyze LNC is Produced On-Site Apply Easily Through Irrigation 01 02 03 Design & Prescribe With Tailored Formulation Systems (one-time application) Gain understanding of client needs and Desert Control brings LNC production units The liquid has sub-micron particles and c
Slide 36: The Results
THE RESULTS Before After Savings Silicon Oasis, Dubai, UAE 47% water savings Water Energy Nutrients Increased Returns The University of Arizona, Yuma, U.S. 21-53% yield increase Yield Quality Profit ICBA, Dubai, UAE Up to 62% yield increase 36 | Q3 2024 Company Update
Slide 37: Value Proposition
VALUE PROPOSITION CLIMATE CHANGE MITIGATION (CARBON SEQUESTRATION AND STORAGE) In a conservative estimate of $20 / ton; nature-based ADDRESSING MULTIPLE OF THE UNITED NATIONS SUSTAINABLE solutions represent $280Bn of carbon credits value DEVELOPMENT GOALS 49 6 8 9 26 Collectively ~57% of required re
Slide 38: Competition
COMPETITION Today’s Methods Soil amendments and soil conditioners High impact (biochar, polymers, perlite etc.) Biochar Traditional clay treatments take 7- Highly intrusive, requires manual or LNC 15 years to take effect and require mechanical intervention Mixing clay into 100-200kg of raw material
Slide 39: Business Model
BUSINESS MODEL Turnkey Soil Ecosystem Regeneration for Sandy Soil Scalability: Multiple Revenue Streams Turnkey Projects Digital Subscriptions Fast Lead Times $/acre or $/tree – project pricing Monthly (MRR), dashboard with • 2-3 months build time for additional LNC dependent on area & contract size
Slide 40: Global Market
GLOBAL MARKET THE ADDRESSABLE MARKET FOR LNC IS ESTIMATED TO >110 COUNTRIES Initial target markets: U.S. Southwest & UAE/KSA/MENA – sandy soil areas affected by drought, desertification, and water scarcity. $490B $125B The water and fertile land crisis is global, and LNC has potential Annual cost of
Slide 41: Global Market
GLOBAL MARKET THE ADDRESSABLE MARKET FOR LNC IS ESTIMATED TO >110 COUNTRIES THE MARKET IS HUGE CentralAsia 300-400 Mn Ha Europe North America 200-350 Mn Ha 250-300 Mn Ha GROWING BY China Middle East 120-170 Mn Ha 100 MILLION 500-600 Mn Ha HECTARES ANNUALLY Africa LATAM 1200-2000 Mn Ha 100-150Mn Ha I
Slide 42: Global Support
GLOBAL SUPPORT LIQUID NATURAL CLAY (LNC) IS A PROVEN AND INDEPENDENTLY VALIDATED TECHNOLOGY The University of California 42 | Q3 2024 Company Update
Slide 43: Business Plan
BUSINESS PLAN STAGED APPROACH FOR EXPANSION TO GLOBAL MARKETS STAGE STAGE STAGE 01 02 03 MENA & U.S. Australia Europe, Africa, Asia/India, RoW Accelerate the licensed operator model Continue scale-up and scale-out Global expansion to all regions in the Middle East and continue direct expansion to sa
Slide 44: Company Journey
COMPANY JOURNEY START OF BUILT PROTOTYPES COMMERCIALIZATION COMPANY INCORPORATION BUILT MVP • Completed three clusters of • Achieved scalable product v1.0. industrial-grade prototypes. • Unlocked scalable application • Desert Control was incorporated to • Successfully built MVP for develop scalable
Slide 45: Thank you for your attention!
Thank you for your attention!