Origin Agritech Limited · NASDAQ:SEED
Origin Agritech — 29th Annual ROTH Conference 2017
16 slides from Origin Agritech's conference presentation, Mar 15, 2017
Slide 1: Investor Presentation, 29th Annual ROTH Conference
November 2016 Investor Presentation 29th Annual ROTH Conference March 2017 Origin Agritech Limited
Slide 2: Safe Harbor
2 Safe Harbor Certain statements contained in this presentation are "forward - looking statements.” All forward - looking statements included in this presentations are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other f
Slide 3: Origin Agritech Ltd. At A Glance
3 Origin Agritech Ltd. At A Glance 20 Yrs Corn Seed Breeding Experience in China • Broad corn germplasm collection • Modern breeding program • Strong product portfolio • Deep market knowledge 12 Yrs Agricultural Biotechnology Investment in China • Leading genetically modified trait portfolio for Chi
Slide 4: Vision
4 Vision To become a Global Agricultural Technology Provider delivering biotech, seeds and systems to the food and feed markets
Slide 5: Why Invest in Origin?
5 Why Invest in Origin? Unique Competitive Position: Preferred partner “ for and from China ” • Major Chinese Investment: Government to invest billions to modernize agriculture • Chinese Consolidation: Technology, M&A, farm size, trade • Chinese Convergence: Reduced subsidies, mechanization, urbaniz
Slide 6: China Market Opportunity
6 China Market Opportunity • Government recognizes need for increased productivity to meet increased demand • 13th 5 - Year Plan supports advancement of biotechnology • GM corn projected to begin by 2020: • Chinese government currently prohibits GM corn seed • Multinational seed companies (MNC) face
Slide 7: Global Market Opportunity
7 Global Market Opportunity • Business structure / flexible licensing model: attract partners and drive revenue growth • MNCs, private, academic and government entities • North American footprint for growth: • Iowa office to serve US market and drive collaborations • Evaluating e - commerce offering
Slide 8: Agriculture Minister quotes on farm products and GMO
8 “What we are lacking now is good quality and ‘green’ farm products,” Han said. “The ministry will also tackle agriculture pollution by reducing use of fertilizer and pesticides and asking large - scale livestock farms to treat animal waste within five years.” HAN Changfu Agriculture Minister 2017
Slide 9: Biotech Trait Pipeline
9 Biotech Trait Pipeline Traits PHASE1 PHASE2 PHASE3 PHASE4 PHASE5 Corn Hybrid + GM Commercialization Laboratory Research Inter - mediate Test Env. Release Test Production Test Safety Certificate Variety Production Test Variety Safety Certificate Variety Approval FEED/ENVIRONMENT Phytase (PT) WEED M
Slide 10: Corn Product Pipeline
10 Corn Product Pipeline 2017 Progress 2015 Product Portfolio 2017 New Green P ass 1 Entries (NNE/Summer/SW) 18 Sales Volume 19M kg 2017 Advanced Green P ass Entries 4 # of Leading Products (80% sales) 8 2017 New Product Launches 2 5 % Sales New Products (< 5 years) ~20% Est. Market Share ~3%
Slide 11: Key Financial Commentary
11 Key Financial Commentary Business Direction • Business realigned (Seed company Technology provider) • B2C business being sold for ~ $60 million (projected to close in 2H17) • Debt service • R&D investment • B2B business model for technology (implementation 2017 – 18) • Optimizing cost structure t
Slide 12: Cash Flow Projection Through 1H17
12 Cash Flow Projection* Through 1H17 ($M) Beginning cash position $11.0 Proceeds from sale of commercial seed business 60.0 Reduction in short - term debt (31.0) Cash burn from continuing operations (6.0) Cash burn from discontinued operations (9.0) Ending cash position $25.0 Moving To Net Positive
Slide 13: Future Value: Unit Economic Projections Upon Commercialization
13 Future Value: Unit Economic Projections Upon Commercialization China Market : • 1% Market Share in corn seed market: $2.5 MM (1) • 1% Market Share in corn trait market: $10 MM (2) • Annual expenses in China: $9.5 MM (1) Assumes 10% royalty for $2.5 B market value (2) Assumes value capture of trai
Slide 14: Experienced Senior Leadership Team
14 Experienced Senior Leadership Team Combined 100+ Years Experience Dr. Bill Niebur, President and Chief Executive Officer • 30+ years experience (5 years in China), primarily with DuPont Pioneer in corn genetics, R&D, global R&D oversight and international business operations Shashank Aurora, Chie
Slide 15: Why Invest in Origin?
15 Why Invest in Origin? Unique Competitive Position: Preferred partner “ for and from China ” • Major Chinese Investment: Government to invest billions to modernize agriculture • Chinese Consolidation: Technology, M&A, farm size, trade • Chinese Convergence: Reduced subsidies, mechanization, urbani
Slide 16: 29th Annual ROTH Conference, Origin Agritech Limited
November 2016 Investor Presentation 29th Annual ROTH Conference March 2017 Origin Agritech Limited