Local Bounti Corporation · NYSE:LOCL
Local Bounti — SPAC Merger (June 2021)
42 slides from Local Bounti's SPAC merger presentation, Jun 21, 2021
Slide 1: Local Bounti Investor Presentation June 2021
local bounti Investor Presentation June 2021
Slide 2: Disclaimer
Disclaimer local bounti This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination be
Slide 3: Disclaimer: Industry and Market Data, Use of Projections
Disclaimer local bounti INDUSTRY AND MARKET DATA Although all information and opinions expressed in this Presentation, including market data and other statistical information, were obtained from sources believed to be reliable and are included in good faith, Local Bounti, Leo III and the placement a
Slide 4: Today's Presenters
Today’s Presenters local bounty Craig Hurlbert Co-CEO Managing Partner at Brightmark Partners Former CEO and Chairman of TAS Energy, exited to Comfort Systems Travis Joyner, JD, PhD Co-CEO Managing Partner at Brightmark Partners Ph.D. in Market Research and Statistics from University of Kansas; J.D.
Slide 5: Leo Holdings III Corp. Overview
Leo Holdings III Corp. Overview local bounti Officers Ed Forst, Chairman 38+ years of operating & financial experience, having held C-suite executive roles at Goldman Sachs, Cushman & Wakefield, and Harvard University Lyndon Lea, President & CEO 30+ years of investment experience; founder of Lion Ca
Slide 6: Transaction Summary
Transaction Summary TM local bounti TM local bounti LEO Holdings Corp. Transaction Size $275MM cash in trust from Leo Holdings III Corp. (NYSE:LIII.U) $125MM PIPE proceeds Valuation ~$760MM pro forma enterprise value11.6x 2025E revenue and 3.9x 2025E EBITDA2 Attractive valuation vs. recent other con
Slide 7: Industry Overview
local bounti Section 1 Industry Overview
Slide 8: Traditional Agriculture Is in Need of a Transformation
Traditional Agriculture Is in Need of a Transformation Local bounti Imminent Agriculture Crisis The world will need ~70% more food to feed the global population in 2050, yet there will not be enough arable land and water to sustain traditional agriculture to meet these needs 1-in-4 200k 60% People g
Slide 9: Controlled Environment Agriculture Is the Future of Farming
Controlled Environment Agriculture (“CEA”) Is the Future of Farming TM local bounti CEA Is Disrupting Conventional Agriculture Key Advantages to CEA Zero Residue Pesticides / Herbicides Up to 90% Reduction in Water Usage Up to 90% Reduction in Land Usage Year Round Production Shorter Transit Time to
Slide 10: Local Bounti Is Addressing a Significant Market Opportunity
Local Bounti Is Addressing a Significant Market OpportunityTM local bounti One of the largest sustainability-related impacts CEA offers is drastic food waste reduction Traditional Agriculture Local Bounti CEA Market Opportunity 40 DAY - QUALITY COMPARISON 3-5 days1 Slimy, Smelly, Uneatable 40 DAY -
Slide 11: Why We Started Local Bounti
Why We Started Local Bounti local bounti TM local bounti Travis and Craig wanted to invest in CEA, but could not find the ideal existing business after performing due diligence They became very excited to start with a “clean sheet” and to build a business with long-term CEA leadership in mind Existi
Slide 12: Company Overview
local bounti Section 2 Company Overview
Slide 13: Operationally and Commercially Established
Operationally and Commercially Established TM local bounti Key Highlights Proven Credibility 2025 Facility 1 Expansion Complete First Revenue 4Q20 2020 2019 Local Bounti Founded by Craig and Travis $462MM Projected Revenues QI 2022 2020 Full Commercial Operations 2Q20 Facility 1 Built first hybrid h
Slide 14: Local Bounti's Differentiated Approach
Local Bounti’s Differentiated Approach local bounti Unit Economics Local, Distributed & Logistics Strategy Brand and Product Diversity Sustainable Achieves superior production unit economics through facility design, technology and plant science R&D Turn-key ready to scale modular approach, enables f
Slide 15: Local Bounti Has Strong ESG Alignment
Local Bounti Has Strong ESG Alignment TM local bounti SUSTAINABLE DEVELOPMENT GOALS 1 NO POVERTY 2 ZERO HUNGER 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 6 CLEAN WATER AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND IN
Slide 16: Local Bounti Video
Local Bounti Video TM local bounti local bounti 16
Slide 17: Farm of the Future: Unit Economics Drove Our Patented Facility Design
Farm of the FutureTM: Unit Economics Drove Our Patented Facility Design TM local bounti TM local bounti Stack & Flow TM TECHNOLOGY Combining the best of vertical and greenhouse growing technologies Proprietary Patent1 Enables a Differentiated Platform Vertical farm Stack + Flow Greenhouse 1.5x-2.0x2
Slide 18: Retail: Current Go-to-Market
Retail: Current Go-to-Market Diversified Product Offerings TM local bounti LB $ Turns Lbs UOS Unit Economics Cut Lettuce Green Leaf, Red Leaf, Butter, Romaine Living Lettuce Butter Lettuce Living Herbs Basil, Cilantro Days to Harvest TM local bounti 16 days1 28 days2 16-21 days Greenhouse 24 days 50
Slide 19: Attractive Facility Unit Economics
Attractive Facility Unit Economics TM local bounti Annualized Revenue Build Up Turns per Year (#) (x) Lbs per Turn (lbs) Lbs per Year (lbs) (-) Waste % (%) Lbs per Year (Waste Adjusted) (Lbs) (x) UOS per Lb (#) UOS per Year (#) (x) Price per UOS ($) Revenue per Greenhouse ($) (x) Number of Greenhous
Slide 20: Deep-Rooted Quality from Right Next Door
Deep-Rooted Quality from Right Next Door TM local bounti Produt offering Living Herbs Basil Cilantro Living Lettuce Butter Cut Lettuce Green Leaf Red Leaf Butter Romaine OUR BRAND PROMISE Sustainably Grown Pesticide Free Non-GMO Greenhouse protected Longer Lasting Freshness Locally Grown in the Nort
Slide 21: Delivering Results!
Delivering Results! TM local bounti Local Bounti is a first mover and already in distribution, currently providing delicious, fresh produce at over 100 local retail locations “We all know fresh is best, Local Bounti is the real deal” Steven Pheil, Produce Manager Super 1 Super 1 FOODS “Local Bounti
Slide 22: Highly Experienced Management Team
Highly Experienced Management Team TM local bounti Management team with proven track record backed by deep industry knowledge and diverse set of core competencies will differentiate the Local Bounti platform Craig Hurlbert Co-CEO Travis Joyner JD, PhD Co-CEO Dave Vosburg COO Kathleen Valiasek CFO Jo
Slide 23: Investment Highlights
TM local bounti Section 3 Investment Highlights
Slide 24: Local Bounti Was Founded with Hyper-focus on Unit Economics
Local Bounti Was Founded with Hyper-focus on Unit Economics TM local bounti Thoughtful Execution Strategy to Enhance Value for All Stakeholders Consumer More value for money Grocer Less food waste Capital Provider Reduced risk profile Planet Resoures conservation Local Bounti Expanded bottom line YI
Slide 25: Differentiated Value Proposition to the Market
Local Bounti - Differentiated Value Proposition to the Market TM local bounti Technology-driven Approach Local Bounti is investing in technology and genetics, boosting profitability and improving products for consumers Facility Design Hybrid vertical / greenhouse facility Genetics Elite and exclusiv
Slide 26: Rapid Scaling with Turnkey Modular Approach
Rapid Scaling with Turnkey Modular Approach TM local bounti Pre-engineered, Off-the-shelf Construction and Technology to Ensure Low Execution Risk Proprietary1 Turnkey Solution Modular Build-out: Clear Path to Expected Build-out of Three Facilities by 2022 and Eight Facilities by 2025 Short Time to
Slide 27: Expected High Market Capture with Superior Product / Branding
Expected High Market Capture with Superior Product / Branding TM local bounti Currently, CEA has a limited focus on markets west of the Mississippi or in the Pacific Northwest, which provides Local Bounti the opportunity to expand into valuable markets as the first mover in the Western U.S. Land (Gr
Slide 28: Expected High Market Capture with Broad Product Offering
Expected High Market Capture with Broad Product Offering TM local bounti Local Bounti’s branded strategy is enabled by high product diversity that captures more in-store real estate Land (Grab) to capture market in regions where there are few or no CEA competitors yet Brand to build consumer loyalty
Slide 29: Multiple Pathways for Potential Growth Expansion
Multiple Pathways for Potential Growth Expansion TM local bounti Clear pathways for growth in the medium term by leveraging Local Bounti’s capabilities around R&D, branded strategy and food production International Expansion Rapidly expanding CEA markets in the Middle East and Asia provide Local Bou
Slide 30: Summary Financials and Transaction Overview
Sustainably Grown TM local bounti Section 4 Summary Financials and Transaction Overview
Slide 31: Financial Projections Grounded on Proven Progress to Date
Financial Projections Grounded on Proven Progress to Date TM local bounti Financial Highlights Revenue Generating Today Proven Operating Facility Superior Facility Economics Growing Number of SKU’s Seeded Plant Sites for Sale (mm of plant sites) # of Facilities 1 3 7 7 8 8 1 12 83 279 457 490 2021 2
Slide 32: Transaction Sources and Uses
Transaction Sources and Uses local bounti Sources All values in $MM Leo III Cash in Trust 275 Local Bounti Equity Rollover 608 PIPE Proceeds 125 Total Sources 1,008 Pro Forma Capitalization (at $10.00) All values in $MM Pro Forma Shares Outstanding 111 Post-Money Equity Value 1,107 (-) Net Cash (350
Slide 33: Valuation Benchmarking
Valuation Benchmarking local bounti local bounti AV / Revenue 2.7x 1.6x Public CEA Companies AV / Revenue 5.7x 3.8x 5.3x 2.6x High-Growth Healthy-Consumer2 AV / Revenue 12.9x 12.2x 6.1x 2.6x local bounti1 2024 2025 Revenue Growth (%) 232.4% 63.9% AppHarvest2 2024 2025 77.9% 50.0% AeroFarms3 2024 202
Slide 34: Local Bounti Is a Premier Controlled Environment Agriculture Company
Local Bounti Is a Premier Controlled Environment Agriculture Company TM local bounti Premier Controlled Environment Agriculture (“CEA”) company that redefines conversion efficiency and ESG standards for indoor agriculture Leading with technology, Local Bounti pushes the limits on bottom-line expansi
Slide 35: Q&A
Q&A 35
Slide 36: Supplementary Materials
TM local bounti Supplementary Materials
Slide 37: Proven Leadership Team
Proven Leadership Team TM local bounti Craig Hurlbert Co-CEO Craig Hurlbert is a seasoned entrepreneur - with a thirty-year track record of building successful businesses with strong leadership teams. Craig was named Ernst & Young Entrepreneur of the Year in 2009 in the Houston and Gulf Coast Area a
Slide 38: Lab Tested Comparative of Triple Washed Organic Compared to Local Bounti Product
Lab Tested Comparative of Triple Washed Organic Compared to Local Bounti Product TM local bounti Local Bounti’s unique technology and process provides customers with longer-lasting freshness, higher nutritional content, less bacteria, mold, and yeast. Nutrition and Bacteria Lab Analysis1Triple Washe
Slide 39: Near-term Facility Expansion Timeline
Near-term Facility Expansion Timeline TM local bounti Non-Binding Term Sheet Entered into for $200 MM Secured Debt Facility to Drive Near-term Expansion Plan1 Facility 1 GREENHOUSES in Q3 5 2020 Facility 1 GREENHOUSES in Q1 +7 SPV 2 GREENHOUSES in Q3 32 SPV 3 GREENHOUSES in Q4 32 2022 SPV 4 GREENHOU
Slide 40: Near-Term Facility Rollout Timeline
Near-Term Facility Rollout Timeline TM local bounti Facility Pond Hamilton, MT 12 Pasco, WA 32 Colorado 32 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 Expansion WA Pasco, WA Transaction closed June 7th, 2021 Final selection and award of contracts in June Ground breaking June 30th Project Comp
Slide 41: Facility Cost Build Up
Facility Cost Build Up TM local bounti Pasco facility for 32 greenhouses projected to come in at ~$35M1, plan includes $40M 80% of our Pasco facility cost estimates are rooted in firm commitments Steel represents 10% of total costs and reflects a 25% price increase relative to quotes from 6-12 month
Slide 42: Historical Lettuce CAGR
Historical Lettuce CAGR TM local bounti Historical Romaine Price Growth: 2006 - 20191 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 14 Year CAGR for Romaine Lettuce is 3.6% From 2006 to 2019, Romaine Lettuce Prices have risen by 51% Local Bounti’s p