Grace Breeding Ltd · TASE:GRAC
Grace Breeding — Investor Presentation (May 2023)
35 slides from Grace Breeding's investor presentation, May 2023
Slide 1: Corporate Presentation Q2 2023
CORPORATE PRESENTATION Q2 2023
Slide 2: Legal Disclaimer
Legal Disclaimer This Presentation about Grace Breeding Ltd. (hereinafter: "the Company") includes forecasts, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is uncertain and is beyond the Company’s control, and which constitute forward-
Slide 3: Grace Breeding
GRACE BREEDING is an AgClimateTech company providing sustainable agricultural solutions for sustainable food supply Protect crops from the Replace climate-harmful, effects of climate change synthetic products stressors while protecting the while supporting profitable environment crop production for
Slide 4: See our lab, greenhouse and field-level scientific and GTM trials
See our lab., greenhouse and field-level scientific and GTM trials Video here Grace Breeding 4
Slide 5: Biologicals market Product Positioning
Biologicals market Product Positioning Bio-Fertilizers and Bio-Stimulants Abiotic Improve stress quality tolerance Nutrient use Nutrient efficiency availability Recent Dynamics and Future Drivers in the Crop Biostimulants Market – AgBioInvestor, 2.2023 Grace Breeding 5
Slide 6: Investment Highlights
Investment Highlights • Emerging leader in agricultural technology providing solutions to protect crops from ongoing effects of climate change • Operating in large and growing addressable end markets • Biofertilizers represent a global TAM of $45 billion with a CAGR of 10.9% • Leading programs are t
Slide 7: Company At-a-Glance
Company At-a-Glance Established 2015 Headquarters R&D center located in Israel’s Rehovot’s science park Employees 12 Experience Management with years of accumulated experience in the areas of Agtech, fertilizers, plant protection and food. IPO Feb 2022 (TASE: GRAC) with a market CAP ~ 100 Million IL
Slide 8: Management
Management Moti Mordehai, CCO Morris Zelkha, Chairman of the Board of Directors Global Senior Manager at ADAMA Agricultural Solutions Ltd.; GTM expert Founder and former CEO of LycoRed for 24 years with launch-to-commercial life cycle management experience & a deep head of new product development Ne
Slide 9: The Advantages of Our Approach
The Advantages of Our Approach (examples of producers of legacy synthetic chemicals) GRACE BREEDING’S GREEN AGRO SOLUTIONS OTHER UNSUSTAINABLE COMPANIES • Climate stress resilience enhancement • Environmental pollution • Biological source • Environmental residue • Nitrogenous technology • Resistance
Slide 10: Biofertilizers TAM and market growth
Over the last 20 years the investment in R&D expenditure of the conventional crop protection market has shifted $171 $45 2.9% 10.9% 11.9% Billion Billion CAGR CAGR CAGR The global Biofertilizers TAM Conventional Global biofertilizer Bio-stimulants market fertilizer market is (urea-nitrogen agrochemi
Slide 11: B2B Strategy Supports Core Environmental and Sustainability Pillars
B2B Strategy Supports Core Environmental and Sustainability Pillars Our B2B business model produces more robust and resilient industrial crops and improves distributor and farmer economics, while importantly, supporting ESG Please change to similar slide background as the rest of the deck initiative
Slide 12: Bio-Fertilizer: NFT business model
Bio-Fertilizer: NFT business model Product Benefits: • Reduce reliance on synthetic nitrogen by 50% • Abiotic stress tolerance solution • Reduce carbon emissions to earn carbon credits • Increase yield Business models: 1. Direct Product benefits Flexibility to deal directly to farmer or through a de
Slide 13: Climate Change May Cause Corn Yields to Fall; Farming Carbon Credits
Climate Change May Cause Farmland Owners May Move to Corn Yields to Fall; Farming Carbon Credits Figure 21: EU carbon allowance price A NASA study forecasts climate change to affect corn 100 90 and wheat production as early as 2030. 80 70 60 50 With higher temperatures and 40 30 20 surface CO2 conce
Slide 14: Our Technology: How We Are Differentiated Within the AgTech Industry
Our Technology: How We Are Differentiated Within the AgTech Industry Disrupting a multi-billion-dollar industry* with solutions to fertilize sustainably and enable crop tolerance and vigor Grace Breeding Market-accessible, widely-available, Grace Breeding’s SOLUTION TO FARMER non-pathogenic bacteria
Slide 15: Our Pipeline
Our Pipeline Our transformative product lines Product Candidate Discovery Field Trial 1 Field Trial 2 GTM Commercial* Proprietary Bio-Fertilizer (“NFT”) Stress Tolerance Enhancer (“WDS”) R&D NFT = Proprietary bio-fertilizer that is a natural replacement to synthetic fertilizer and serves as a urea r
Slide 16: Grace Breeding's Products Recent Development
Grace Breeding’s products Recent Development 10/26/22 1/25/23 Grace Breeding Announces its Grace Breeding Study Results of its Proprietary Environment- Friendly Bio- Wide Defense System (WDS) Fertilizer (“NFT”) Show Superior Improves Industrial Tomato Growth Results in Brazilian Corn, Yield by 17% B
Slide 17: NFT (Proprietary Bio-Fertilizer)
NFT (Proprietary Bio-Fertilizer)
Slide 18: The Problem: The Use of Urea is Not Sustainable
The Problem: The Use of Urea is Not Sustainable • Urea (Nitrogen), is the most common fertilizer in agriculture worldwide • 1MT of urea production in the U.S. = 1.84 MT of gas emissions (CO2) • Global production of urea = CO2 emissions of 120 million cars annually! High $45 Air Production Regulation
Slide 19: The Solution: NFT
The Solution: NFT Farmer cost savings expected per: Naturally provides nitrogen to crops in synergy with - Reduced volume and dose per Ha. (1:25) available bacteria; reduction of 50% in use of urea - Reduced application frequency Carbon credit: - NFT use in corn reduce carbon emission Environmentall
Slide 20: NFT Field Trial Results
NFT Field Trial Results Brazilian Study Results in corn seeds treated with NFT (UEL, January 2023) - Potential reduction of more than 50% of nitrogen in corn cultivation. - Reduced carbon emissions - Outperforms standard nitrogen fertilizers in almost all parameters 2023 Grace Breeding 20
Slide 21: NFT Comparison to Urea in Maize (Corn)
NFT Comparison to Urea in Maize (Corn) NFT amount applied per Ha.* – 20 L Reduced volume & dose per Ha. (1:25) Urea amount applied per Ha. – 500 kg ✓ Easy application method in the field. Watch video here. ✓ Farmer keeps similar agrotechnical tools and methodologies * Reduction of 50% in use of urea
Slide 22: Bio-Fertilizer Approaches: Market Landscape
Bio-Fertilizer Approaches: Market Landscape Joint Venture with Bayer Easy and efficient field Crop Science application process Joint Venture with Corteva Simple, natural, hybrid-boosting, bacteria-based product synergistic solution Expensive, complex NFT $430M Series D @ $1.7B post-money valuation (
Slide 23: WDS (Proprietary Stress Tolerance Enhancer)
WDS (Proprietary Stress Tolerance Enhancer) • . 23
Slide 24: The Problem: Climate Change is Affecting Global Crop Production
The Problem: Climate Change is Affecting Global Crop Production Rising levels of atmospheric carbon dioxide (CO2) reduces the concentrations of protein and essential minerals in most plant species (including wheat, soybeans, and rice) which would otherwise serve as nourishment. This direct effect of
Slide 25: The Solution: WDS
The Solution: WDS • WDS is a stress tolerance enhancer; a combination of naturally sourced ingredients with market-available bacteria • Protects against abiotic climate stressors, addressing the supply problem for the farmer and the pricing threat to the consumer • Increases yield in 20-30% and impr
Slide 26: The Need for Environmental Stress Protection Solutions Has Increased
The Need for Environmental Stress Protection Solutions Has Increased With Episodes of Global Drought Example: Tomato Supply Crisis Solution: Provide farmers with a higher yields The global tomato processing market size reached 45.2M tons in and mitigate distribution challenges resulting WDS - Improv
Slide 27: WDS Trials in Avocados: 2020 – 2022
WDS Trials in Avocados: 2020 – 2022 WDS Control “ The WDS application saves me two years of growing and the additional cost of replanting; manpower and new plants.” - quote from farmer Field trial was done in Israel (2022) *UTC = untreated control (unfertilized) Grace Breeding 27
Slide 28: Target Market & Strategic Collaborators
Target Market & Strategic Collaborators
Slide 29: Global Footprints
Global Footprints The company intends to start conducting field experiments and observations for marketing and sales around the world. Grace Breeding 29
Slide 30: Brazil: Our First Strategic Market is An Agricultural Market Leader
Brazil: Our First Strategic Market is An Agricultural Market Leader • With 42 million Ha. of soybean and 22 million Ha. of maize (corn), Brazil is one of the largest agricultural markets in the world. • Brazil is the largest agricultural chemical market in the world, with a turnover of 13 billion US
Slide 31: Brazil is Forecasted to Surpass the U.S. in Corn Exportation
Geopolitical changes - Brazil is Forecasted to Surpass the U.S. in Corn Exportation First shipment of Brazilian corn to China occurred in November 2022, after Phytosanitary agreement signed between the countries In the 2021-2022 marketing year, the primary destinations of Brazilian corn were Iran, S
Slide 32: GTM Roadmap (Brazil): NFT and WDS
GTM Roadmap (Brazil): NFT and WDS Q1 2023 Q2 2023 Q3 2023 Q42023 Q12024 Q2 2024 Q3 2024 Choosing the Product Registration Selecting Key Influencers Collaborative Development Visiting Research Institutes Strategic Content Generation Competitor Analysis Set Price Market Launch Sales NFT WDS Note: proj
Slide 33: Implementing a Hybrid GTM Strategy
GTM Implementing a Hybrid GTM Strategy 1 Tier-1 Industry players 2 Tier-2 & 3 Industry players 3 Acting on demand creation at the retail/farm level. Grace Breeding 33
Slide 34: BioStimulants Recent global M&A Activity
BioStimulants Recent global M&A Activity Valagro Acquires Grabi Syngenta Acquires Valagro Corteva to Acquire Stoller ($1.2B US) Chemical Novozymes and Chr. Hansen to Merge Sipcam Acquires Sofbey Amvac Acquires Agrino Corteva to Acquire Symborg Huber Acquires Biochim OAT Agrio Acquires LIDA & MBI / B
Slide 35: Thank You!
THANK YOU! Contact: Assaf Dotan, Chief Executive Officer [email protected] Jeremy Feffer LifeSci Advisors LLC [email protected]