Benson Hill, Inc. · OTC:BHILQ
Benson Hill — Q3 2022 Earnings Presentation
24 slides from Benson Hill's earnings presentation, Nov 10, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
THIRD QUARTER 2022 EARNINGS PRESENTATION NOVEMBER 10, 2022 Exhibit 99.2
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 • Consolidated third quarter revenue growth of 307 percent to $130 million driven by strong Ingredients segment performance o Proprietary soy revenues increased 300 percent to $26 million • Raised 2022 consolidated revenue and gross profit guidance o Revenues of $430 million to $455 million
Slide 4: 3Q 2022 proprietary soy revenue performance consistent with expectations
3Q 2022 proprietary soy revenue performance consistent with expectations for stronger growth in the second half Proprietary Soy Portfolio • 3Q revenues increased 300 percent to $26 million • Continued high customer demand and timing of ingredient shipments drove the improved sequential performance f
Slide 5: Macroeconomic and geopolitical challenges expected to drive demand for Benson Hill's products
Current macroeconomic and geopolitical challenges expected to drive demand for Benson Hill’s innovative products HIGH FOOD INFLATION ENVIRONMENTAL IMPACT OF THE FOOD SYSTEM FOOD SUPPLY CHAIN DISRUPTION FOOD-DRIVEN HEALTH IMPLICATIONS
Slide 6: Targeting high growth & established markets
Targeting high growth & established markets High-protein Soy Flour, Textured Flour Food, Oil, Feed Specialty Oil High-protein, Low-antinutrient Soybean Meal FOOD INGREDIENTS COOKING OIL ANIMAL NUTRITION Broad Range of End Market Applications PO RT FO LI O F IT CATEGORY GROWTH PROJECTIONS Bubble Size
Slide 7: Unique product attributes align with consumer demands
Unique product attributes align with consumer demands • Domestically sourced • Traceable across the supply chain • Increasingly grown with regen ag practices • Greater nutrient density • Less processed • Better tasting • More sustainably produced • Less costly Unlocking Genetic Diversity • Increase
Slide 8: Focus on the I-States to optimize supply chain
Focus on the “I-States” to optimize Benson Hill’s supply chain in the primary North American soy growing region 2023 farmer recruitment Joint recruitment effort with ADM in the vicinity of the Decatur, Illinois, facility Recruitment underway for the Creston, Iowa, and Seymour, Indiana, facilities •
Slide 9: Benson Hill and ADM entered a long-term collaboration to scale Ultra-High Protein soy
Benson Hill and ADM entered a long-term collaboration to scale Ultra-High Protein soy ingredients in North America (1) Access to ADM’s current and planned protein processing capacity for food ingredients Joint farmer recruitment program Leverage ADM’s product application and formulation expertise Fo
Slide 10: A year of milestones
NYSE: BHIL - A year of milestones
Slide 11: Operational goals for 2023
FARMER PARTNERS CONSUMER MARKETS INGREDIENT MANUFACTURING PRODUCT APPLICATIONS Operational goals for 2023 1. More than double contracted acreage for proprietary soy in areas to maximize nutrient density o Increase contracted closed-loop acres by at least 50 percent o Add substantial acreage for ADM
Slide 12: 3Q 2022 financial highlights
3Q 2022 financial highlights As of September 30, 2022 (in $ millions USD) Reported Versus 3Q 2021 Impact of Open Mark-to-Market Timing Differences(2) Excluding Open Mark-to-Market Timing Differences(2) Revenues $130.2 +307% $3.3 $126.9 Ingredients $122.3 +429% $3.3 $119.0 Fresh $7.9 (11)% $ -- $7.9
Slide 13: Better-than-expected Ingredients segment performance
Better-than-expected Ingredients segment performance (in $ Millions USD) 2022 (Updated Guidance) 2022 (Previous Guidance as of August 6, 2022) 2021 (Reported) Total Revenue $430 - $455 $340 - $400 $147 Ingredients $370 - $390 $275 - $325 $91 Fresh $60 - $65 $65 - $75 $56 Total Gross Profit $14 - $17
Slide 14: Positioning to fully fund the business to expected positive EBITDA and free cash flow in 2025
Positioning to fully fund the business to expected positive EBITDA and free cash flow in 2025 (1) Liquidity needed to achieve 2025 financial targets depends on planned revenue growth, margin expansion and cash management discipline • 9/30/2022: Cash and marketable securities of $193 million • 3Q 202
Slide 15: Creating long-term sustainable shareholder value
(1) MARGIN EXPANSION TECHNOLOGY STACK EXECUTION Creating long-term sustainable shareholder value CASHI IGROWTH STRONG CONSOLIDATED REVENUE GROWTH CONSOLIDATED GROSS MARGIN EXPANSION EBITDA MARGIN FREE CASH FLOW $500M+ 25%+ Positive Positive 2025 Targets 2025 Growth Drivers • Maximize share capture f
Slide 16: Our Technology Appendix
OUR TECHNOLOGY APPENDIX
Slide 17: YTD 2022 financial highlights
YTD 2022 financial highlights As of September 30, 2022 (in $ Millions USD) Reported Versus YTD 2021 Impact of Open Mark-to-Market Timing Differences(2) Excluding Open Mark-to-Market Timing Differences(2) Revenues $333.4 +222% $2.2 $331.2 Ingredients $281.9 +370% $2.2 $279.7 Fresh $51.3 (10)% $ -- $5
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operation (In Thousands USD, Except Per Share Information) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues 130,179 32,000 333,371 103,494 Cost of sales 125,812 31,591 328,65 102,546 Gross profit (loss) 4,367 409 4,721 948 Opera
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet (In Thousands USD) September 30, December 31, 2022 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 29,978 $ 78,963 Marketable securities 162,93 103,68 Accounts receivable, net 38,21 31,729 Inventories, net 42,57 48,724 Prepaid expenses and other current
Slide 20: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (In Thousands USD) Nine Months Ended September 30, 2022 2021 Operating activities Net loss $ (74,299) $ (84,040) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 16,504 8,460 Stock-based compensation expens
Slide 21: Third quarter 2022 segment information and non-GAAP reconciliation
Third quarter 2022 segment information and non-GAAP reconciliation (In Thousands USD) The Company defines and calculates adjusted EBITDA as consolidated net loss before net interest expense, income tax provision and depreciation and amortization, further adjusted to exclude stock-based compensation,
Slide 22: Nine-month 2022 segment information and non-GAAP reconciliation
Nine-month 2022 segment information and non-GAAP reconciliation (In Thousands USD) The Company defines and calculates adjusted EBITDA as consolidated net loss before net interest expense, income tax provision and depreciation and amortization, further adjusted to exclude stock-based compensation, an
Slide 23: 2022 non-GAAP Reconciliations
2022 non-GAAP Reconciliations Adjustments to reconcile estimated 2022 consolidated net loss to estimated Adjusted EBITDA (In Thousands USD) Consolidated net loss $ (106,000) – (111,000) Interest expense, net 24,000 Depreciation and amortization 22,000 Stock-based compensation 20,000 Other non-recurr
Slide 24: 2021 Segment Information and non-GAAP Reconciliations
2021 Segment Information and non-GAAP Reconciliations 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 amortization,