Benson Hill, Inc. · OTC:BHILQ
Benson Hill — Q2 2022 Earnings Presentation
27 slides from Benson Hill's earnings presentation, Aug 8, 2022
Slide 1: Second Quarter 2022 Earnings Presentation
SECOND QUARTER 2022 EARNINGS PRESENTATION AUGUST 8, 2022 Exhibit 99.3
Slide 2: Disclaimers: Cautionary Note Regarding Forward-Looking Statements
Disclaimers Cautionary Note Regarding Forward-Looking Statements Certain statements in this presentation may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements
Slide 3: Summary
Summary • Strong Ingredients performance resulted in consolidated year-to-date revenue growth of 184 percent, to $203 million • Strategic partnership with ADM represents a significant milestone in the planned scaling of proprietary soy innovations through an asset-light licensing model • Management
Slide 4: Market dynamics and macro tailwinds help drive demand for Benson Hill's products
Market dynamics and macro tailwinds help to drive and even accelerate demand for Benson Hill’s innovative products ACCELERATING FOOD INFLATION ENVIRONMENTAL IMPACT OF THE FOOD SYSTEM FOOD SUPPLY CHAIN DISRUPTION FOOD-DRIVEN HEALTH IMPLICATIONS
Slide 5: Setting the Pace: data-driven platform and diversified portfolio
Setting the Pace: • Data-driven platform • Genomics • Artificial Intelligence • Predictive breeding • Incentivized for targeted quality traits • Analytical and agronomic support CropOS® FOOD INNOVATION ENGINE: ACCELERATES SPEED TO MARKET FARMER PARTNER PROGRAMS IMPACTFUL, DIVERSIFIED PORTFOLIO: ACCE
Slide 6: Validation of Strategic Playbook with ADM Partnership
Validation of Strategic Playbook with ADM Partnership • Market entry • Build relationships across the value chain • Low capital investment Step 1 Create the Foundation • Prove proprietary product concept • Ensure traceability • Capital investment and strategic partnerships Step 2 Integrated Route to
Slide 7: Benson Hill and ADM entered a long-term partnership to scale Ultra-High Protein soy
Benson Hill and ADM entered a long-term partnership to scale Ultra-High Protein soy ingredients in North America (1) Access to ADM’s current and planned protein processing capacity for food markets Access to ADM’s expansive farmer network Leverage ADM’s product application and formulation expertise
Slide 8: Ultra-High Protein ingredients provide enhanced functionality, traceability, and sustainability
Ultra-High Protein ingredients provide enhanced functionality, traceability, and sustainability attributes (1) Per kg of protein, Internal estimated impact of using de-fatted soybean from Ultra-High Protein (UHP) soybeans compared to conventional soy protein concentrate, based on preliminary Life Cy
Slide 9: Immense opportunity in the plant-based market
Immense opportunity in the plant-based market HUGE AND GROWING DEMAND MEETS SUPPLY BOTTLENECKS • Decades-long demand growth • Predicted 461% growth in global plant-based retail market by 2030* • Soy protein concentrate supply bottlenecks • Agronomic constraints • Global supply chain disruption BENSO
Slide 10: Veri Delivers Superior Performance
*preliminary LCA results from Blonk Consultants based on economic allocation and industry averages Veri™ Delivers Superior Performance Veri™ Oil Commodity Soy Oil Heart Healthy Omega-9 X Less polymer buildup on fryer X Long fry life X Cost effectiveness X X Non-GMO Project Verified X Veri™ Provides
Slide 11: Ultra-High Protein offering in the aquaculture market
Performance Sustainability Value Fat Anti- Nutrients Protein* 1% <1% Soybean Commodity Meal 1% >5% Soy Protein Concentrate <1% <1% *Typical values on an as-is basis >50% Aquaculture to overtake capture production in 2027 and account for 52% of all fish production for all
Slide 12: 2022 growing season and farmer engagement underway
2022 Crop • Completed planting of proprietary soy varieties after delays caused by cool, wet spring • Harvest results will inform the outlook for 2023 2023 Farmer engagement • Stronger value proposition than last year with closed-loop manufacturing assets and now the strategic partnership with ADM •
Slide 13: Financial success and ESG impact are inextricably linked
Financial success and ESG impact are inextricably linked (1) Benson Hill Inaugural ESG report • Soil health; Reduced inputs; Reduced emissions; Nutrition density per acre *Per kg of protein. Internal estimated impact of using de-fatted soybean from Ultra-High Protein (UHP) soybeans compared to conve
Slide 14: ADM partnership to enable Benson Hill to scale its proprietary soy portfolio
ADM partnership to enable Benson Hill to scale its proprietary Ultra-High Protein soy portfolio (1) • Asset-light licensing model consistent with “Step 3” of strategic playbook o Utilize ADM’s processing, operations and commercial infrastructure • Partnership reduces execution, competitive and finan
Slide 15: Six-month 2022 financial highlights
Six-month 2022 financial highlights YTD as of June 30, 2022 (in $M) Reported Versus YTD 2021 Impact of Open Mark-to-Market Timing Differences(2) Excluding Open Mark-to-Market Timing Differences(2) Revenues $203.1 +184% $(1.2) $204.3 Ingredients $159.6 +332% $(1.2) $160.6 Fresh $43.4 +26% $ -- $43.4
Slide 16: Increasing 2022 revenue guidance for Ingredients segment
Increasing 2022 revenue guidance for Ingredients segment (in $M) 2022 (Updated Guidance) 2022 (Previous Guidance) Total Revenue $340 - $400 $315 - $350 Ingredients $275 - $325 $250 - $275 Fresh $65 - $75 $65 - $75 Total Gross Profit $9 - $13 $9 - $13 Operating Expense $135 - $140(1) $135 - $140(1) T
Slide 17: Securing non-dilutive sources of cash to support strategic plan
Securing non-dilutive sources of cash to support strategic plan (1) • Cash and marketable securities were $210 million as of June 30, 2022 • $20 million drawdown on $100 million committed debt facility o Expect no material impact on 2022 interest expense • Technology access licensing fees and expect
Slide 18: Creating Long-Term Sustainable Shareholder Value: 2025 targets
(1) MARGIN EXPANSION TECHNOLOGY STACK EXECUTION Creating Long-Term Sustainable Shareholder Value CASHI IGROWTH STRONG CONSOLIDATED REVENUE GROWTH CONSOLIDATED GROSS MARGIN EXPANSTION EBITDA MARGIN FREE CASH FLOW $500M+ 25%+ Positive Positive 2025 Targets 2025 Growth Drivers • Maximize share capture
Slide 19: Why Benson Hill wins
Why Benson Hill wins Data advantage ~2-3 yearsLimited or no protein data Business model ~3 yearsTraditional, siloed business model Substantial scale ~3 yearsLimited or no quality focus ~2-3 yearsR&D advantage Limited or no protein testing Minimum 6-10 Years Advantage With Multiple Differentiators Ti
Slide 20: Our Technology Appendix
OUR TECHNOLOGY APPENDIX
Slide 21: Second Quarter 2022 Financial Highlights
Second Quarter 2022 Financial Highlights Q2 as of June 30, 2022 (in $M) Reported Versus YTD 2021 Impact of Open Mark-to-Market Timing Differences(2) Excl Open Mark- to-Market Timing Differences(2) Revenues $110.7 +179% $3.9 $106.8 Ingredients $93.5 +312% $3.9 $89.6 Fresh $17.1 +1% $ -- $17.1 Gross (
Slide 22: Consolidated Statements of Operation
Consolidated Statements of Operation (In Thousands USD, Except Per Share Information) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 110,747 $ 39,692 $ 203,192 $ 71,494 Cost of sales 105,171 39,722 202,838 70,955 Gross profit (loss) 5,576 (30) 354 539 Operating
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet (In Thousands USD) June 30, December 31, 2022 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 46,772 $ 78,963 Marketable securities 163,135 103,689 Accounts receivable, net 36,753 31,729 Inventories, net 47,766 48,724 Prepaid expenses and other current
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (In Thousands USD) Six Months Ended June 30, 2022 2021 Operating activities Net loss $ (44,130) $ (49,766) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 10,942 5,430 Stock-based compensation expense 11,3
Slide 25: Second quarter segment information and non-GAAP reconciliation
Second quarter segment information and non-GAAP reconciliation Adjustments to reconcile consolidated net loss to Adjusted EBITDA: (In Thousands USD) The Company defines and calculates adjusted EBITDA as consolidated net loss before net interest expense, income tax provision and depreciation and amor
Slide 26: Six-month segment information and non-GAAP reconciliation
Six-month segment information and non-GAAP reconciliation Adjustments to reconcile consolidated net loss to Adjusted EBITDA: (In Thousands USD) The Company defines and calculates adjusted EBITDA as consolidated net loss before net interest expense, income tax provision and depreciation and amortizat
Slide 27: 2022 Non-GAAP Reconciliations
2022 Non-GAAP Reconciliations Adjustments to reconcile estimated 2022 Adjusted EBITDA (In Thousands USD) Consolidated net loss $ (148,000) – (153,000) Interest expense, net 23,000 Depreciation and amortization 23,000 Stock-based compensation 21,000 Other non-recurring costs 1,000 Total Adjusted EBIT