Aquabounty Technologies, Inc. · NASDAQ:AQB
Aquabounty Technologies — Investor Presentation (March 2019)
26 slides from Aquabounty Technologies's investor presentation, Mar 14, 2019
Slide 1: AquaBounty Technologies Investor Presentation March 2019
AquaBounty Technologies Investor Presentation March 2019
Slide 2: Forward-Looking Statements Safe Harbor Statement
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: Executive Summary
Executive Summary ➢ AquaBounty Technologies (AQB) is focused on enhancing productivity and sustainability in the $176B aquaculture market through the use of biotechnology, particularly in land-based Recirculating Aquaculture Systems (RAS). ➢ Received approval in the United States and Canada for the
Slide 4: Market Overview
Market Overview
Slide 5: Market Outlook for AquAdvantage Salmon – Overview
Market Outlook for AquAdvantage Salmon – Overview ➢ Attractive market with favorable outlook: • Global demand expected to grow 7-9% annually for next 5 years • Supply constraints expected to continue supporting favorable pricing ➢ Increasing demand for salmon, driving investment into production from
Slide 6: Atlantic Salmon Market – a Global Trade Opportunity
Atlantic Salmon Market – a Global Trade Opportunity Worldwide Atlantic salmon market = 2.2m metric tons worth $14 billion (Source: FAO) Norway, Faroe Islands, Supply is constrained in Iceland: production locations for North America: Harvest: 1,363,000 environmental and regulatory Harvest: 187,000 Ma
Slide 7: U.S. Per Capita Protein Consumption
U.S. Per Capita Protein Consumption • According to USDA, among major proteins only seafood demand is outgrowing population growth • Salmon consumption is among the fastest growing seafood, second only to shrimp • Feed conversion ratios for seafood are advantaged over land-based proteins, making it a
Slide 8: Projected Gap in World Seafood Supplies
Projected Gap in World Seafood Supplies Aquaculture continues to grow M Seafood Supply and Demand Global Salmon Production 250 4,000,000 3,500,000 200 3,000,000 2,500,000 150 2,000,000 1,500,000 100 1,000,000 500,000 Metric Tons (Round Wt.) (Round Metric Tons 0 50 2000 2014 1990 1992 1994 1996 1998
Slide 9: Commercialization
Commercialization
Slide 10: The AquAdvantage Salmon – Key Benefits
The AquAdvantage Salmon – Key Benefits Operating in a land-based system provides significant advantages over the current production method of fish farming: • Optimized growing conditions and fish health • Biosecurity – no exposure to pathogens & parasites • No need for antibiotics or medications • C
Slide 11: Commercial Strategy
Commercial Strategy ➢ Demonstrate commercial viability and consumer acceptance utilizing production from Indiana and Prince Edward Island ➢ Establish supply chain and logistics requirements ➢ Refine product positioning and message prioritization for consumer and customer support • Emphasize sustaina
Slide 12: Years of Operation Expertise in RAS
25 Years of Operation Expertise in RAS AAS reaches target weight in shorter time and consumes less feed to reach target weight than conventional Atlantic Salmon. AAS enables land-based, environment- friendly production system to be economically viable versus current sea- cage production systems. AAS
Slide 13: Production in Process in U.S. and Canada
Production in Process in U.S. and Canada Albany, Indiana • Purchased first commercial-scale operating site for AAS in the U.S. from Bell Fish Co. in 2017 • Facility renovated and upgraded, improving capacity to 1200 MT/YR • Conventional salmon introduced in June 2018 with harvest in Q3 2020 • AAS eg
Slide 14: Regulatory Overview
Regulatory Overview ➢ Bioengineered food products have been developed, reviewed by regulators, and approved for use in the United States, Canada and other major markets for decades ➢ AQB’s development of bioengineered salmon represents the first bioengineered animal to have completed these regulator
Slide 15: Technology Overview
Technology Overview Bioengineered AquAdvantage Salmon results in superior growth & economics AquaBounty’s core technology is based on the • The AquAdvantage gene construct AquAdvantage gene construct, containing: dramatically improves growth rates and production economics ❶ DNA sequence from chinook
Slide 16: AquAdvantage Salmon Growth Advantage
AquAdvantage Salmon Growth Advantage AAS growth rates are accelerated in the early rearing stages: • Elapsed time from first feeding to harvest reduced from ~28 to ~18 months • Reduction can result in ~2X greater annual harvest vs. conventional salmon, and this “capacity” advantage improves economic
Slide 17: AAS Production / Husbandry Considerations
AAS Production / Husbandry Considerations AAS production and husbandry practices are comparable to those for land-based conventional salmon farms – see below for notable factors for AAS operations: Enhanced feed conversion requires • Expert management and titration of feeding modified protocols sche
Slide 18: Overview of AAS Regulation
Overview of AAS Regulation ➢ As the first bioengineered animal product to be approved by U.S. and Canadian regulators, AAS’s review included: • Examination of AAS’s unique technology and characteristics • Determination of how such products should be evaluated • Governmental reviews, input from third
Slide 19: Summary of AAS Regulatory Actions
Summary of AAS Regulatory Actions Authority Year Particulars Panama – environmental 2012 • Approval for operation of salmon farming approval operation • Application for commercial production is pending US FDA 2015 • Approval for production, sale, and human consumption • Specification of production a
Slide 20: AAS Economic Advantage vs. Conventional Salmon
AAS Economic Advantage vs. Conventional Salmon ➢ AquAdvantage Salmon can deliver EBITDA at 2.5 – 3.0X vs. conventional RAS salmon ➢ These economic benefits vs. conventional salmon reflect several key advantages: • Reduced time to harvest, from ~28 months to ~18 months for AAS results in dramatically
Slide 21: AAS Economics 2.5–3.0x Favorable vs. Conventional
AAS Economics 2.5–3.0x Favorable vs. Conventional Faster growth to harvest accelerates returns on investment in farm operations • Throughput increase leverages site infrastructure • Improved feed conversion by ~25% can reduce feed costs • Faster growth to harvest can result in more than 2X increase
Slide 22: AquaBounty Technologies Today and Tomorrow
AquaBounty Technologies Today and Tomorrow • Biotechnology leader providing molecular solutions addressing problems and opportunities in the global aquaculture industry • World Class operator of land-based Recirculating Aquaculture Systems • Committed to the excellent husbandry and nutrition of fish
Slide 23: Balance Sheet
Balance Sheet As of December 31, (in thousands) 2018 2017 Balance Sheet Data: Cash and CD’s $ 3,003 $ 506 Total assets $ 27,671 $ 23,732 Debt $ 3,591 $ 3,084 Stockholders’ equity (deficit) $ 23,234 $ 17,981 • Shares outstanding at December 31, 2018 = 15,098,837 • Share price as of March 12, 2019 = $
Slide 24: Summary
Summary ➢ The aquaculture industry must double its output in the next 30 years to meet growing market demand. Farmed Atlantic salmon is a $14B market, and AquaBounty is uniquely positioned to capitalize on that growth in consumer demand. ➢ Increased consumer demand for high-quality protein and food
Slide 25: Seasoned Leadership
Seasoned Leadership Sylvia Wulf – Executive Director, President and Chief Executive Officer • Appointed an Executive Director, President and CEO in January 2019 • President of Manufacturing and SVP of Merchandising for US Foods, a $23 billion broad line foodservice distributor with responsibility fo
Slide 26: AquaBounty Technologies
AquaBounty Technologies
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