Benson Hill, Inc. · OTC:BHILQ
Benson Hill — Corporate Update (October 2023)
28 slides from Benson Hill's corporate update, Oct 31, 2023
Slide 1: Investor Update October 31, 2023
OCTOBER 31, 2023 INVESTOR UPDATE Exhibit 99.3
Slide 2: Cautionary Note Regarding Forward-Looking Statements
2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this presentation may be considered “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. Forward-looki
Slide 3: Benson Hill has a lot to be proud of
BENSON HILL HAS A LOT TO BE PROUD OF. . . A multi-year moat around those protein traits, underpinned by distinctive germplasm and CropOS® platform Proven protein traits… which other players value and want (seed partners) Early proof of ability to successfully partner with players across the value ch
Slide 4: Key messages today
Key messages today: Good progress made toward strengthening our balance sheet Giving us the time and space needed for business model transition Resulting in an extended but sustainable path to profitability 4
Slide 5: Key messages today: strengthening our balance sheet
Key messages today: 5 Good progress made toward strengthening our balance sheet • Reductions in OPEX/CAPEX achieved • Sale of assets in process • Enabling elimination of debt Giving us the time and space needed for business model transition Resulting in an extended but sustainable path to profitabil
Slide 6: Liquidity Improvement Actions: Shape the business
• Delivering $33M run rate Opex savings for 2024, versus $20M target announced in March • Identifying additional Opex run rate savings ($5-10M) and aligning Capex (savings of $10-15M) to new asset-light model SHAPE THE BUSINESS - FIT FOR PURPOSE 1 6 Liquidity Improvement Actions
Slide 7: Liquidity Improvement Actions: Divest assets to build liquidity
• Signed agreement to close the sale of the Seymour, Indiana, soy crush facility for approximately $36M in gross proceeds, subject to working capital and other adjustments • Exploring options to divest the remaining manufacturing assets • Divestitures expected to significantly lower working capital
Slide 8: Retire debt and fund the business
8 • Targeting early retirement of current senior term loan • Evaluating other alternative non-dilutive and equity sources of capital • Providing 12 months+ of liquidity runway Gross Cash Position: $50M - $80M Retirement of Senior Debt: ($121M) Total Cash: $170M - $200M Uses of CashSources of Cash Pl
Slide 9: Key messages today: time and space for transition
Key messages today: 9 Good progress made toward strengthening our balance sheet Giving us the time and space needed for business model transition • Focusing on our core technology assets • Accelerating focus on animal feed • Building a less capital-intensive business Resulting in an extended but sus
Slide 10: Leader in AI driven seed innovation
At its core, Benson Hill is a leader in AI driven seed innovation utilizing proprietary genetics Proprietary protein, genomic, and strategic data layers for predictive breeding using Artificial Intelligence (AI) and Machine Learning (ML) World-leading eMerge soy and proprietary yellow-pea protein ge
Slide 11: Five innovation platforms and end markets
11 End marketsCharacteristicsProduct Category Pet Food Consumer Packaged Goods Increased Protein Consumer Package Goods Food Services Animal Feed Lower Anti-nutrients High Oleic Low Linoleic Low Linolenic Consumer Package Goods Food Services High Oleic Low Linoleic Low Linolenic Animal FeedIncreased
Slide 12: Benson Hill's technology pipeline
12 2023 2024 2025 2026 2027 2028 2029 BENSON HILL’S TECHNOLOGY PIPELINE GEN1: 59-61% Meal Protein, Low- Antinutrients, AAs GEN2: >62% Meal Protein, Higher Yield GEN1.1: + HT GEN2.1: +HT GEN3: Higher Yield GEN1: 61-63% White Flake Protein GEN2: Higher Yield GEN1.1: + HT GEN2.1: +HT GEN3: >64% White F
Slide 13: New strategic priorities and addressable acres
13 Benson Hill is taking proactive action to retire debt, ensure liquidity, and extend runway…These measures will fully fund the business for 24-36 months Product-market fit / value proposition Poultry - Broiler Poultry - Layer Turkey Swine - Grower Swine - Nursery Aqua Pet SPC - Meat extension Soy
Slide 14: UHP-LO is a game-changer for animal producers
14 * UHP-LO’s value proposition is particularly pronounced for mono-gastric animals (not ruminants) including turkey, chicken, and swine UHP-LO is a game-changer for animal producers and ready today Source: Expert Interviews, UHP-LO trials with animal producers Reduced cost of feed – less soybean me
Slide 15: Business model transition necessary
15 Business model transition necessary R&D & Licensing Seed Production & GTM Grain Origination Processing Go-to-Market Current Closed- Loop Model Future Licensing Model Why Closed-loop is unsustainable for Benson Hill • Alt meat growth trajectory flattened, and grower acquisition costs increased • E
Slide 16: Opportunities to monetize technology within licensing model
16 Benson Hill Seed Company VALUE CHAIN: Processors End-Markets Technology Access Fees Earn technology access fees from seed companies, processors and end-users Licensing Royalties License germplasm to seed companies to enable broadacre adoption Direct Seed Sales Grow direct seed sales through Benso
Slide 17: Acre adoption outlook for animal feed
17 2.0 0.5 1.0 1.5 3.5 4.0 2.5 3.0 4.5 5.0 5.5 6.0 6.5 7.0 2024 2025 2026 2027 2028 2029 2030 Licensing parter for animal feed1 Licensing partner for food ingredients BH direct sale for food ingedients BH direct sale for animal feed Commercial piloting in turkey and “all-veg” chicken “Inflection poi
Slide 18: Benson Hill's obtainable acres long term
18 Benson Hill’s obtainable acres long term End market value creation per acre 6.5M acres $100-230 per acre3 1. Includes US end markets for broilers, layers, turkey, swine, salmon, pet food, human ingredients, and high-oleic oil 2. E.g., based on share of production under consolidated, commercial-sc
Slide 19: Sustainability impact within animal feed
19 1.25 1.26 1.28 1.42 1.56 2023 1.20 24 2725 26 1.25 2028 1.30 1.35 1.40 1.45 1.50 1.55 1.60 1.47 +14% +22% +16% Protein / acre (tons) Source: Product performance and pipeline forecast data 2022-2028 accounting for both protein content and agronomic yield 1 Assumes 0.6% yield improvement per annum
Slide 20: Key messages today
Key messages today: Good progress made toward strengthening our balance sheet Giving us the time and space needed for business model transition Resulting in an extended but sustainable path to profitability 20
Slide 21: Phased evolution of the business model
21 Phase 1: Vertically integrated food protein ingredients company Phase 2: Execute implementation of liquidity plan and launch go-to-market transition Phase 3: License seed technology & partner across value chain Phase 4: Expand Trait development and licensing Seed production & distribution Gra
Slide 22: Liquidity improvement actions enable efficient cash utilization
22 Liquidity Improvement actions enable efficient cash utilization * Subject to the timing of facility sales and excludes one-time costs in 2023 $102M $92M - $97M $55M - $60M (includes ~$10M in annual public company costs) Cash OPEX + CAPEX 2022 2023 2024 $64M $60M - $65M $35M - $40MNet Working Capi
Slide 23: Closing comments
23 Closing comments: We have strengthened our balance sheet and are creating the liquidity runway to transition our business We have accelerated our evolution to serve the animal feed market and will continue to draw on our core differentiators – our people and our technology We are engaged in discu
Slide 24: Appendix
APPENDIX BENSON @ HILL
Slide 25: Overview of market assessment of shortlisted end markets
25 More attractive Less attractiveOverall assessment of market Market attractiveness (current) Product-market fit1 2 Animal feed Human ingredients Oil 1 2 4 3 5 6 7 8 9 10 11 12 Poultry - Broiler Poultry - Layer Poultry - Turkey Swine Aquaculture Pet SPC – Alt meat/meat extension Soy flour (textured
Slide 26: Value add assumptions based on studies and feed trials
26 • 2012 | Schillinger genetics partnered academic studies to determine energy value add for low oligosaccharide traits • 2020 | Feed trials with using Benson Hill High Protein and Quality Protein varieties to demonstrate reduced feed costs while maintaining animal health • 2023 | Shadow pricing st
Slide 27: Academic study shows increased energy density for low oligosaccharide varieties
27 Academic study with Schillinger genetics germplasm shows an increase in energy density for low oligosaccharide varieties
Slide 28: 2020 poultry feeding study shows lower feed costs
28 Benson Hill performed a feeding study with poultry producer in 2020 that demonstrated lower feed costs and equivalent animal outcomes