Hexima Ltd · ASX:HXL
Hexima — Shareholder Meeting (November 2007)
39 slides from Hexima's shareholder meeting presentation, Nov 30, 2007
Slide 1: Address to the Hexima Limited AGM
Address to the Hexima Limited AGM Presented by Mr Dan O’Brien, CEO and Professor Adrienne Clarke, CSO 30 November 2007
Slide 2: Agenda
Agenda ¥ Hexima is targeting a large and growing market ¥ Hexima continues to make positive progress with it’s technology ¥ The company is implementing a clear business plan 2
Slide 3: Agenda
Agenda ¥ Hexima is targeting a large and growing market ¥ Hexima continues to make positive progress with it’s technology ¥ The company is implementing a clear business plan 3
Slide 4: Increased demand for agricultural products has led to higher commodity prices
HEXIMA IS TARGETING A LARGE AND GROWING MARKET Increased demand for agricultural products for food and fuel has led to a significant increase in commodity prices World Commodity Prices (Sep 2005 – Sep 2007) 250 Forces impacting 2 yr price agricultural demand increase 200 Wheat 95% Population growth
Slide 5: Farmers will pay more for increased productivity
HEXIMA IS TARGETING A LARGE AND GROWING MARKET With the substantial increase in the value of agricultural commodities, farmers will pay more for increased productivity US Farm Input – Total Expenditure (97-07) CAGR (97-07) 16 Seeds 3.5% 14 12 Fertilizers 6.5% $US 10 billion Pesticides 0% 8 6 4 2 0 1
Slide 6: Seed prices rise with the number of Traits purchased
HEXIMA IS TARGETING A LARGE AND GROWING MARKET The increase in seed prices is due to the increasing number of Traits that farmers will purchase Example US Corn Seed Purchase Bag of high quality Corn seed High Quality Germplasm =$100/ha Total Cost Insect Resistance =$75/ha to Farmer: =$200 / ha Herbi
Slide 7: Global area of biotech crops has risen rapidly
HEXIMA IS TARGETING A LARGE AND GROWING MARKET The global area of biotech crops has risen rapidly, indicating farmers’ willingness to pay for value-creating Traits Global Biotech Crop Area Ag-Biotech crop area by country (2006) (1996-2006) ROW 120 China CAGR (00-06) India Canada 100 13% Brazil USA 8
Slide 8: GM technology will expand to other countries, crops and traits
HEXIMA IS TARGETING A LARGE AND GROWING MARKET GM technology will also expand to other countries, crops and traits GM countries Areas of growth: – EU – China – India – Developing countries Areas of growth: – Fungal resistance Current Current Top – 2nd generation Traits Traits: countries: (higher yie
Slide 9: EU yields have stagnated without GM technology
HEXIMA IS TARGETING A LARGE AND GROWING MARKET Without access to GM technology, EU yields have stagnated compared to the two largest GM adopters, the US and Argentina Selected Corn Yields (2002-2012) CAGR 12 (02-06) USA 4% 10 EU 0% 8 Metric Argentina 4% Tons per ha 6 4 2 0 '02 '03 '04 '05 '06 '07 '0
Slide 10: Europe was slow to adopt GM but growth is accelerating
HEXIMA IS TARGETING A LARGE AND GROWING MARKET As a result, Europe was slow to adopt GM. The GM planted area is currently small, but growth is accelerating EU 25 GM Crop Area (2005-2007) 120 110 100 Other 76% France 80 Area (Ha) 13% 62 60 55 40 Spain 20 0 2005 2006 2007 10 Source: EuropaBio
Slide 11: Australian farmers celebrate the lifting of moratoria
HEXIMA IS TARGETING A LARGE AND GROWING MARKET Australian farmers celebrate the lifting of moratoria Without GM technology, Australian canola growers were facing: z Lower yields than their competitors z No premium for their exported non-GM canola z Restricted use of modern low-tillage management tec
Slide 12: Agenda
Agenda ¥ Hexima is targeting a large and growing market ¥ Hexima continues to make positive progress with it’s technology ¥ The company is implementing a clear business plan 12
Slide 13: Hexima's technologies – an overview
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technologies – an overview 13
Slide 14: Hexima and its technology
TECHNOLOGY: TEAM AND PROGRESS Hexima and its technology ¥ Research & Development contracted to The University of Melbourne and La Trobe University. 14
Slide 15: La Trobe University – Biochemistry Dept
TECHNOLOGY: TEAM AND PROGRESS La Trobe University – Biochemistry Dept ¥ Professor Marilyn Anderson Senior Vice President – Research & Discovery ¥ Leader - Insect Protection ¥ Leader - Pathogen Protection z Dr Kerry Dunse z Dr Fung Lay 15
Slide 16: The University of Melbourne – School of Botany
TECHNOLOGY: TEAM AND PROGRESS The University of Melbourne – School of Botany ¥ Dr Robyn Heath Senior Vice President - Development ¥ Glasshouse Manager ¥ Leader – Molecular Biology z Mr Bruce McGinness z Dr Simon Poon 16
Slide 17: The University of Melbourne – School of Botany
TECHNOLOGY: TEAM AND PROGRESS The University of Melbourne – School of Botany ¥ Field Trial Manager ¥ Regulatory & Compliance z Dr Jillian Hinch Manager z Dr Yolanda Gaspar 17
Slide 18: The University of Melbourne – School of Botany
TECHNOLOGY: TEAM AND PROGRESS The University of Melbourne – School of Botany ¥ Intellectual Property Director ¥ Intellectual Property Manager z Dr Susanna Herd z Ms Heather Garton ¥ Managing portfolio in collaboration with patent attorneys: z Davies Collison Cave (Australia) z Greenlee Winner & Sull
Slide 19: Hexima's technologies – an overview
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technologies – an overview 19
Slide 20: Hexima's insect trial
TECHNOLOGY: TEAM AND PROGRESS Hexima’s insect trial Darling Downs, QLD, January 2007 20
Slide 21: Hexima's technologies
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technologies ¥ Three field trials of PI in cotton in Queensland 2004-05; 2005- 06; 2006-07 ¥ Largest trial in 2006-07 ¥ Plants containing technology produced: z more bolls per plant z matured earlier than plants not containing technology ¥ Second generation tec
Slide 22: Hexima's insect trial – Coker PI
TECHNOLOGY: TEAM AND PROGRESS Hexima’s insect trial Coker PI 22 Darling Downs, QLD, January 2007
Slide 23: Hexima's technologies – an overview
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technologies – an overview 23
Slide 24: Hexima's fusarium trial
TECHNOLOGY: TEAM AND PROGRESS Hexima’s fusarium trial Darling Downs, QLD, January 2007 24
Slide 25: Hexima's fusarium trial – Coker Defensin
TECHNOLOGY: TEAM AND PROGRESS Hexima’s fusarium trial Coker Defensin Coker 25 Darling Downs, QLD, January 2007
Slide 26: Hexima's technology – fungal resistance
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technology – fungal resistance ¥ Field trials in Queensland 2006-07 for resistance to Fusarium wilt z Defensin technology gave clear advantages to cotton plants z Almost three times survival rate compared with plants that lack the defensin gene z Surviving plan
Slide 27: Hexima's technology – fungal resistance
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technology – fungal resistance ¥ Three field trials for resistance to other fungal diseases have been planted in the 2007-08 season. ¥ One has been planted in the Namoi Valley in NSW. ¥ Two have been planted on the Darling Downs in Queensland. 27
Slide 28: Hexima's technologies – an overview
TECHNOLOGY: TEAM AND PROGRESS Hexima’s technologies – an overview 28
Slide 29: Mgev: multiple traits, single delivery
TECHNOLOGY: TEAM AND PROGRESS Mgev: multiple traits, single delivery C2 N T4 C1 C T1 EEKKN linker linker T3 X T1 C1 T1 T2 C1 T1 C2 X ¥ No interaction between C1 and T1 T3 ¥ Linker is totally flexible T4 T2 ¥ Domain swapping 29
Slide 30: Our patent portfolio continues to strengthen
TECHNOLOGY: TEAM AND PROGRESS Our patent portfolio continues to strengthen ¥ Eight Patent Families z This includes two new applications, lodged during 2007, which are the foundation of two new patent families. ¥ 25 Issued Patents ¥ 35 Pending Patents ¥ Lodged in all key markets 30
Slide 31: Agenda
Agenda ¥ Hexima is targeting a large and growing market ¥ Hexima continues to make positive progress with it’s technology ¥ The company is implementing a clear business plan 31
Slide 32: US and Brazil are key markets for Hexima Traits
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN For both Fungal and Insect Resistance Traits, Hexima has identified the US and Brazil as key markets. As the EU adopts GM crops, it will become increasingly attractive Attractiveness of crop and country markets for Hexima Traits More E attractive T I
Slide 33: Six global agribusiness groups are the gatekeepers to the ag-biotech market
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Six global agribusiness groups are the gatekeepers to the ag-biotech market Seed Seed Trait Farmers development sales & technologies & production distribution Trait Provider Trait Developer ¥ Trait Developers are large chemical companies, all with ex
Slide 34: Potential partners have different strategies for discovery and commercialisation
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Potential partners have different strategies with respect to discovery development and commercialisation Discovery Phase 1 Phase 2 Phase 3 Phase 4 Gene/Trait Proof of Early Advanced Pre-launch Identification Concept Development Development (2-4 years
Slide 35: Active collaborations and negotiations with several of the six largest seed companies
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Hexima has active collaborations and ongoing negotiations with several of the six largest seed companies ES TI M Estimated Total Crop Seed Sales by Million Ha Sown by Firm (2006) ATE Key 50 Corn 45 Soy Cotton 40 Canola 35 Other (Barley, Beet) 30 Area
Slide 36: On track with indicative development timeline
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Hexima is on track with its published indicative development timeline and is seeking to accelerate where possible Indicative Insect-resistance & Fungal-resistance development timeline 36
Slide 37: Announcement expectations
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Announcement expectations Achieve collaboration agreement/s for defensin technology Results of second field trial of defensin technology in cotton 0 - 8 MONTHS (Australia) Initial development of PI and defensin technologies in crops other than
Slide 38: Strong financial base following our successful IPO
THE COMPANY IS IMPLEMENTING A CLEAR BUSINESS PLAN Strong financial base following our successful IPO CASH BALANCE $38 million DEBT Nil ANNUAL $8 million p.a. INVESTMENT Co-investment by collaboration partners LEVERAGE Research fees and income Government grants 38
Slide 39: Conclusion
Conclusion ¥ Hexima is targeting a large and growing market ¥ Hexima continues to make positive progress with it’s technology ¥ The company is implementing a clear business plan ¥ Following the IPO Hexima has a strong balance sheet to fund operations ¥ 2008: Execution of important collaborative agre