Senus (Euronext:SENUS) — 2026 Half Year Results

0:01 Good morning, ladies and gentlemen, and welcome to the SENUS PLC investor presentation. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it's appropriate to do so on the investor meet company platform. Before we begin, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would

0:32 now like to hand you over to the team from SENUS PLC. Brendan, Steven, good morning. Good morning, Jake, and good morning, everyone. Thank you for joining us this morning for our half year results presentation. Over the next twenty minutes or so, we're just gonna bring you through some key items of around the business and the performance in the last half. But before that, I'd like to introduce myself, Brendan Allen. I'm the managing director of SENUS PLC. And with me today on the call is Steven Cohen, our general manager. I will start with an introduction, then we'll go through the the half year results. I'll hand you over to Steven then for looking at some of the solutions and customers that that we have and our engagement, and then we'll finish up the presentation with looking at our growth strategy and the investment case for SENUS. And as Jake said, please do submit any questions. We'd be delighted to answer them towards the end of the presentation.

1:29 To start with, just a little bit about SENUS PLC. So we are a climate risk and soil health intelligence technology, and we build technology for natural capital monitoring at scale. So what does that mean? Firstly, let's look at the whole idea of natural capital. Natural capital is the world's ecosystems that we're reliant on daily to eat our our textiles for our clothes and shelter for the the homes we live in. And there's been a strong acknowledgment over the last number of years that natural capital has been degraded and needs to be managed better, mostly to ensure that we have resilient supply chains within our industries. The natural capital we're we're talking about is things like soil, air, water, habitats, nature.

2:14 These are the the components that we're building technologies for. Our role as a company is to be an MRV system, so measurement, reporting and verification, to allow corporations, financial institutions, even government agencies to monitor this natural capital at scale. So this could be through an entire supply chain of a dairy coop, looking at entire loan books of a financial institution and to understand various amount of things. But the main thing we're trying to give our clients is better idea of how to un unlock productivity within that within that land based sector to identify risks, but also to identify opportunities. And this monitoring at scale allows us to give deep insights to our clients that can help them derisk significantly their their supply chain.

3:03 Our key priority markets in this area are, number one is financial institutions. We're So working with the banking sector who need to assess loans and full loan books. Why do they need to do this? Well, there's a huge amount of regulatory pressure coming on them, mainly from entities like the ECB to include climate, environment, and nature into their lending decisions and being able to report on that. But it's not regulation alone. There is inherent risks within the land based sector for them as well. It could be physical risks, and we hear about it all the time, droughts, flooding. And they need to understand those risks and how it's going to in fact affect cash flows of the the peep their their loanees as such. Our same technology can provide insights to agricorporates for a slightly different reason. They want to make sure that their supply chains are resilient, that productivity is strong.

3:55 Soil health being optimized means grass is being optimized, which means milk tanks are staying full with with good quality milk. But they also need this sort of information, these sort of programs for market access. So the the supply chain or the upper end of the markets like supermarkets or the further food food companies are demanding action at farm level. Our technology allows them to do that in a scalable way. The last priority market is ecosystem restoration. We are seeing billions being pointed towards this direction as a market, while regulatory enforcement has come into place like the EU restoration law, what we're seeing is a real lack of ability to scale and measure ecosystem restoration. This is why we're seeing a huge amount of opportunity here over the next number of years.

4:44 It's an Asian market, but it is showing strong signals of growth in the next number of years. To give you an idea of our traction to this, so we've been doing this for a number of years, and we have been able to attract some blue chip high value corporations. Starting in Ireland, we've we work with a lot of the dairy coops, Tierlawn, Lakeland dairies, Arrivo, Carberry. But we also work in The UK with companies like Arla, First Milk, an exciting announcement in this presentation back on that. And we have we have use cases with with banks and particularly Bank of Ireland. We also have contracts with European Space Agency and companies like Diageo. So we've a strong track record of executing at scale with with large corporations.

5:33 And to give you a small bit of our history, so we spun out at the University of Galway back in 2017. And our early years between 2018 to 2020, 2021, we're focused on soil health and digitizing soil health and bringing it into the twenty first century. So supply chains and farmers can actually actively manage their soil better to ensure they are optimized in production, real productivity gains while also protecting water quality and and lowering emissions. And in response to the market, we've we've started to build other technologies to measure other pillars of natural capital, like water quality, biodiversity, habitats, and soil carbon as well. This led us to we were self funded up to 2023, and we took in our first investment to build out those technologies using retained earnings and an investment we got, increasing the technology team to take a more international approach and ambition to the company.

6:32 That's when in 2024, we decided to rebrand from FARMAI to SENUS, so some people would have known us as FARMI FIRST. And that was a reaction to internationalization and doing more work outside of the the agri sector. Up to last year, where we had a really strategic year, where we were launched our new Era product, We acquired a company that I'll talk about in a couple of minutes called Lohmann. We closed a private placement of 1,100,000, and we listed on the Euronext Stock Exchange as well. So we had a really strategic and great year in 2025. So it set us up for really exciting 2026 and onwards. So just on to the half year results, and we'll go through this by customer first. So we have three project and customer announcements to start with. The first one is is proof of scale within the banking sector.

7:23 And Bank of Ireland have confirmed doubling of the contracts they have have with us, and they're scaling into their their loan book in 2026 with ambitions to go to go forward, but it is a superb endorsement of our initial contract phase is moving to then to the next phase with with a large bank and large bank loan book. And also, we have a a strong pipeline of other banking corporations. And so this this sector is is really important for us, but this is a really important milestone for us to get this second contract. A hugely important one as well is first milk in The UK. So this is a a dairy coop in in The UK that has announced that they're going to do their entire supply chain with our technology.

8:10 So we will be providing them with insights on water quality and biodiversity across all 700 farms. This is a really strong ambition, really strong milestone within the industry that's shown that the need to actually start monitoring natural capital at scale and monitoring the risk. So they're looking at at at risk and opportunities around protecting water quality with this project. So it's a hugely important announcement for us in The UK, and this has actually started and up and running now. Our last announcement of our project is a very strategic important project in the island of Ireland and funded by the Department of Agriculture, and and it's on the use of biochar within the within the agri and concrete industries.

8:56 We've been brought on board, so it's led by University of Limerick. So it's r and d funded through the University of Limerick, but our role is to build technology, use our MRV systems to monitor the results of the biochar at a at a farm level. It's it's a great project in terms of funded by the by Department of Agriculture, but also other entities like Chagas, Quellsha, Roaldstone, and and many more companies and research organizations involved. So we're delighted to be involved in this. I'm delighted to be invited into this this consortium. To give you an idea of the financial highlights of the year, so we ended the six months with $304,000 in turnover with strong gross margins. We always aim for a gross margin of 80% plus and ending in a very strong cash position of 735,000.

9:47 The year itself is setting us up very, very well for growth into the future. The strategic goals, as mentioned already, will be the 1,100,000 private placement that we and the direct listing in the Euronext access market, and hence, why we're here this morning speaking with you. But I want to spend a couple of minutes talking about the acquisition of Lumen, a geospatial AI company, in November 25 and the impacts we've seen with these early days with the company. So this company we had been partnering with for some time, and you will all be aware of the conversations around AI. And we're not an AI company, but we do use AI to enable our processes.

10:33 And this acquisition has had a hugely positive effect on the company. Number one, it has led to faster development in house. So we are able to enable our engineers to move at a much faster pace and react to the market much quicker. The second thing is that we have a better market offering. So combining our technology with the Lohmann technology, Lohmann technology is to be thought of as geospatial AI. So using really powerful tools to monitor large land banks or large areas using remote sensing and on the ground data.

11:08 To give you an example of this, with soil carbon projects, you may have to spend 4 to 5,000 to do infield sampling to get a robust measurement of a farm. Using geospatial AI and some soil soil sampling, you can dramatically reduce the cost of that. So in some cases, it can be down to 10 x less the cost. So that 5,000 could be going down to €500 euros through this technology over time. That is bringing scale to the market, and that's what we're in prime position to be able to do. The last thing this has done is give us a wider market appeal. We have technology now with SENUS and Lohmann combined that has an offering that's able to execute in The US and Africa today. So these are new markets that we've started to explore and develop lead lists for and actually had had some people on the ground recently exploring these markets.

12:02 Another massive benefit is the addition of two senior people to our team, doctor Hugh Stewart and Jonathan Smith. Hugh is a global leader in this space, an ex professor of the University of California, and he has a very high level of understanding, a very high level of capabilities brought into our company, similar to Jonathan who works on the technology side with us and has worked with the Gates Foundation and and many other organizations. So it brings a wealth of experience. That acquisition in late last year is probably a stepping stone for us to to get massive scale into the company and execute on our strategy at at at a higher speed. With that, I'll just pass you over to Steven for a few minutes, and then it'll come back to me after a couple of minutes. Thank you, Brendan, and thanks to everyone for joining. So I'm gonna briefly bring everyone through our SENUS solutions and maybe how it serves our customers. So our customers need data for regulatory requirements, reporting requirements at a central bank level or at a corporate sustainability reporting level, and and how we gather data comes in three different channels for our customers. So we have technologies that can work on the ground to generate ecological data. So an example would be a project we are working with European Space Agency on.

13:26 And, also, we have ground tool technologies like our SENUS PLC app, which allows us to gather data from the ground, collaborate with the likes of laboratories and ecologists, and we firmly believe that this data is extremely important going into the future. And in the world of AI, you still need solid ground truth to verify data to support it. Our second channel of data then is publicly available data. So examples would be the Environmental Protection Agency, National Parks and Wildlife, or UK Centre for Ecology and Hydrology. The reason we work with this data is that it's publicly available, and it's from credible, reputable sources which our customers are fully familiar with. But what we do is make it specific to their loan books or to their supply chains, and to their individual loanees or farmers as part of their programs.

14:15 Finally, through the acquisition of Lumen, we have a strong modeling capability, which allows us to fill any gaps in reporting requirements for our customers. In the data, we can use estimated models to make highly accurate predictive estimations on things like soil carbon or soil pH or land use classifications across regions, continents, supply chains. So with this this accumulated data that's pulled together, we provide reporting structures for our customers, which gives them insights on risk and resilience of their loan books or supply chains, and it gives them that reporting requirement that they need to move forward. And how that's done then is due to two core products that we have in SENUS ERA, the environmental reporting assistant, and SENUS PLC. So our customers will avail of both products or one at each time.

15:09 SENUS ERA is a far more mature product that has been developed by SENUS over the last six, seven years, and SENUS ERA is a new exciting product that we've launched in in the last eighteen months. And these core products report under certain datasets like biodiversity, soil health, soil carbon, water quality, and give insights on risk, pollution, opportunities for our supply chains and their customers.

15:36 And how our SENUS commercial model works then is we've typically moved towards a subscription based model where our customers pay for use or pay for the use of getting access to the data, and typically those contracts roll annually. We currently have a 70% renewal rate on an annual basis for our customers, and that's a number that we're constantly striving to improve and increase as the years go on. And a secondary model is where, you know, some of our customers might be restricted to a budgetary cycle, their projects could be defined by one or three or five years. So then we can work with the customer to meet their needs on a on a project fee or per project basis. So it can vary, but we've tried to push towards our our primary base model for our commercial sense. And just some, I suppose, numbers on customer served in the period that we're currently reporting on. You'll see on the right hand side, SENUS PLC has currently got 38 clients, and that's a mix of enterprise, independent clients, and research and development.

16:35 As I said, SENUS Era is is a more immature product, but a really exciting one that currently serves four clients, and that's continuing to grow. But you can see in our average contract value that our SENUS Era customers it's the contracts are are worked quite a bit more than our projects on average, hence why we're investing a lot of time in our SENUS PLC product currently. And finally, I'd just like to say that we're well established in the Island Of Ireland, which circa three quarters of our customer base based in the in the island. We're continually growing in The UK, and now we're as Brendan has mentioned, we've looked to the rest of the world as well in terms of Mainland Europe, The US, Africa to see the potential there where we can grow. I'm now gonna pass you back to Brendan, and he'll bring you through our growth strategy.

17:25 Thanks, Steven. So with the last few minutes that we have here, we're just gonna talk about the future and where we're heading as as a company. We've we've outlined the three priority markets, financial institutions, agri food and ecosystem restoration. With financial institutions, our strategy is to use Ireland to test the model, which we have done, and then move into The UK and EU. And we have started a rigorous campaign in both territories on outreach and connections within that that industry. The signals we're seeing for financial institutions is Asia could hold interest for us. And so we are having a look at those signals that coming to us at the moment. Agriculture and food is a similar pattern, but looking at The U. S.

18:11 With the capabilities we have there that based on loan and the interest that we've been showing. Ecosystem restoration, we see it as Ireland, UK and The EU at the moment because of the regulatory environment that we're sitting in. For us, SENUS is about 2,030. And what we can become as a company, we have a very, very strong foundation built. And we have good traction in the market with really good technology, proprietary technology. But where can this take us to? Our ambition in by twenty thirties, we'll have a 100 of these enterprise style customers at a minimum with enterprise values of 50,000 or more. And then there there are sort of minimum numbers that we want to achieve. And the enterprise value is something that we work on constantly. It's that renewal of customers and increasing the the contract rate. So any customer acquired now, even how small, is an opportunity for us to to grow into the future.

19:03 We also want to make sure that we're generating significant revenue outside of Ireland. The Irish industry is perfect for getting established and getting a a foothold in an industry both for significant growth where we need to get going to get outside of the island of Ireland, and we're doing that. We we have hired outside of the island in The UK and have an office over there now. Our target is EBITDA positive then by by the June 2020 year. That's the year our financial year end. How are we gonna do this? So, again, looking internationally, making sure we're sticking to high value, high urgency customers. If they don't have an urgency and they don't have the ability to pay, they're not a good market for us. That's why we're focusing in on these three markets. And our other goal is to be mission critical. So not to be a nice to have. Mission critical aligned to something like regulatory risk is the position that we're we're putting ourselves in.

19:57 The growth drivers then for for this industry. Regulation, we've mentioned it a number of times now. We have seen significant increase in regulatory pressures, particularly in the financial sector. Nature risk has become more and more aligned to an investor government decision making, and we're seeing that as a huge market driver. And then it's the physical risk. So physical risk is the flood, the drive. How do we understand the risk within a supply chain to make sure that it's resilient? This is not an ESG thing. This is actual companies responding to this. There's an actual inherent risk in climate at the moment because it could impact your supply chain and and put your supply chain at risk. All three of these have critical data gaps that we are aiming to aiming to solve, bring technologies to actually bring bring scale and significance to these to these market needs.

20:57 Finally, just to look at the investment case. So there are things down here, but I'm gonna give you the broad highlights of this. We're an early mover here, so it's a nascent market. So it's just emerging. But you'd see the traction we have with with corporates already. So we have this sort of base base of agricorporates and financial institutions and a very strong pipeline with it. Natural capital is to be paid attention to because 50% of the world's GDP is reliant on it. Every person is reliant on it on daily basis, and there's more acknowledgment of its degradation over the last number of years having significant risk. Also, company then, we have proprietary technology. We're scaling this technology. The Lohmann acquisition has helped us scale us even faster, and we we have a very strong management team.

21:44 And then you have those market drivers. So bundle all that together, you have a very exciting time for us at SENUS, and we are really excited about what the next few months to years and what that twenty twenty thirty looks like. With that, we'll end the presentation, hand you back to Jake, and we will welcome any questions. Perfect, guys. Perfect, guys. That's great. And thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. Just while the team take a few moments to review those questions that have been submitted already, I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published q and a, can all be accessed via your investor dashboards. Guys, you can see there we have received a number of questions throughout your presentation. Thank you to all of those on the call for taking the time to submit their questions.

22:36 But if I may just hand back to you to read out those questions and give your responses where it's appropriate to do so. And if I pick up from you at the end, that'd be great. Thank you. Sure. Thanks, Jake. So question number one is explain the Lohman acquisition and where it can take us. And so we covered that in a little bit of detail there. But, really, the Lohman acquisition is about how do we scalably measure for supply chains or for loan books and how do we bring our own deep science and proprietary technology to bear. Lawman allow us to do that. The ability of Hugh and Jonathan to build novel models based on on deep deep scientific rigor allows us to bring really good technology and datasets to the market, but also allows us to scale. So an example of that is they've already already got proprietary algorithms on how to monitor soil carbon, soil pH from from with remote sensing. That gets even better when you when you add infield data. We have a huge amount of infield data that can actually drive those models and make those models better. So it's a very exciting time, but also the the the two guys themselves have brought a huge amount of expert expertise and elevated us in this AI area. Again, not an AI company, but making us AI enabled.

23:53 Hope that answers your question. And second one is in the current geopolitical environment, is demand for a product set lessening? We've seen no signals of this, to be frank. We've sat in front of people that have the problem of regulation. You can see the sweat marks on the forehead because of it. So we're we're actually seeing that not lessening but increasing at at the moment. And so I hope that answered that question. And then do you see average order size increasing over the next year or two? The answer to that is yes. And because we're an Asian market, we can see some of the particular banking sector more interested in rolling out something like a pilot. Significant contract for us, but it's kind of derisking it for them. And then using that pilot to actually see how they're going to do it across their entire lending loan book, including automated approaches. So we are seeing we've already seen that doubling of investment from one year to the next. We've seen some of our stable agri corporates increase by 10 to 20% annually, and you just keep doing that. So that's I hope that answers your question.

25:05 Next question is, across 21 enterprise customers close, what's the typical deal size and sales cycle length? And what's the historical conversion rate rate? So we do monitor this quite quite closely. For every 10 conversations, early stage conversations we have, we close about two, and that's our our standard. So we we normally get to pricing at about 50%, and you normally close around two 20% on that. And that rolls. That's cons constantly rolling. Average deal size for our our enterprise clients is around 17,000 for our Era, around 4,000 plus for our our soil. So Era is the one that that brings us in higher we've we've less of them. It's a new product, and but we're putting a lot of focus on that. So that that gives you an idea of the conversion rate that we have. Deal lengths length size can vary. You can get to very fast decisions with some organizations, but then there's slow onboarding and procurement.

26:06 And you can get to very long decisions. So on average, with some of the bigger contracts, it can be six to nine months shorter from time to time, but it is a long sales cycle, particularly if you're in mid budget recycle and you're waiting for the next cycle to come around. So the next one is thanks for a clear presentation. It's an it's an exciting space and strong strategy. Could you explain a little more more how you will acquire new new clients? Do you have the market growth engine in place? Yeah. Sure. So we're we're looking at a couple of different strategies around around client engagement. So firstly is is identifying all the water and holes where they hang out, all the areas that we're going to get at the critical people. And we've seen a significant difference between the people within organizations, particularly the banking sector.

26:56 And there are critical people you need to get to, and sometimes you need to come in at the bottom and and work your way up to them. So looking at where where where they're aggregating as a group, but also we're engaging people who are from that industry who can actually make introductions for us in in territories that were not as familiar. So these are the two two things. We have a very rigorous business development process in place. It's a disciplined step by step process. We fill the funnel at the top and looking to convert 20% of that and and filtering it down quickly to make sure that you're not spending time on on the on the wrong the wrong area. Last question that we can see here today is maybe touch on the near term momentum you see from client conversions, adjacent sections, etcetera.

27:42 That's a it's a good question. So the near term thing, we we are seeing agricorporates and all the activity there. Actually, dipped in the last couple of years, but actually slight resurgence now. But we're looking at it from a risk and resilience perspective,

28:02 which means that they're they're engaging more. So we see agricorporates, UK, Ireland into the EU as very interesting space. And then the financial institutions, particularly in The UK and the Nordics of of Europe are actually sending out signals to us as well that there's there's interest there. And so we're we're validating that interest at the minute. So those near term client conversions, it's a strong pipeline, actually. So we've we have I think it's over a half a million on quota at the minute, and we're constantly trying to fill that that pipeline. So, again, you're you're at the mercy of some sales cycle dynamics there, but and they're what the near term term conversions look like or look of interest to us.

28:50 Another question is what portion of revenue is currently reinvested into r and d and the key areas of focus? And at the moment, we're we're putting significant resources. So Hugh Historico is heading up our research department. We are looking at funding a lot of our r and d, though. European Space Agency, the biochar project that we we showed you there today, and other projects with with local universities. We see a lot of opportunity for funding those projects. So we try and get them funded more so than actually button current revenue streams into that that r and d pipeline. It's a great way to de derisk it. Hope that answers your question. Perfect, guys. If I may just jump back in there. Thank you very much indeed for addressing all of those questions that came in from investors this morning. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. But Brendan, perhaps before really now, just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that would be great.

30:00 Great. Thanks, Jack. Just simply to say thank you for attending, thank you for showing interest in SENUS PLC. We're hugely excited about the prospects and the future. We are hugely excited about what SENUS two thousand thirty is going to be. The signals, the activity, everything we have at the moment is pointing us in the right direction. So thank you for your questions, and thank you for your time and interest in coming on this morning. That's great. Brendan, Steven, thank you once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback? On behalf of the management team of SENUS PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.