Plant Factory Technologies 2023

Conducting cutting-edge R&D to produce organic bioactive substances for health and wellness (incl. anti-age, anti-cancer) utilizing advanced vertical farms and extraction units.

Transcript

1. | 1 DEVELOPMENT AND IMPLEMENTATION OF AGBIOTECH PROJECTS
2. COMPARING APPROACHES SOLVING PROBLEM • Emergence of technologies and markets that exert competitive pressure (e.g.: vertical farms; substances that question the feasibility of existing dietary supplements, drugs, herbs) • Supply chain disruptions due to geopolitics • Complexity of the logistics of fresh plants (e.g.: transaction costs in growing, harvesting and delivering herbs in mountainous areas; loss of useful properties during transportation) • Local cultivation in vertical farms gives a steady supply of green biomass and covers demand all year round • Controlled environment, light spectrum and irrigation, as well as ultraviolet treatment give an increased content of bioactive substances (BAS) compared to wild plants • New types of processing allow us to fix the useful properties of substances for long-term storage and logistics (lyophilic drying, acoustic freezing, etc.)
3. ADDING VALUE Just food Bioactive substances source Bioreactor for vaccine Seed material Step 1 Step 2 Step 3 Step 4 \ / Plant Currently on Step 2
4. Microgreens Leafy greens Berries Medicinal crops STEP 1: TYPES OF GROWING PLANTS
5. Crop Growing cycle, days Monthly output (kg/m²) Microgreens Mustard 5 19.0 Broccoli 7 21.7 Pea 7 23.0 Radish (Daicon) 3 22.4 Radish (Red Coral) 3 21.2 Radish (Sango) 3 22.0 Radish (China Rose) 3 22.6 Arugula Red 6 10.2 Kale (Red Russian) 7 10.4 Kale (Black Tuscany) 7 10.7 Cress (micro) 6 14.0 Leafy greens Salads (baby leaf) 15 7.5 Sorrel (baby leaf) 15 6.8 Sorrel (baby leaf) 15 5.6 Arugula (baby leaf) 15 7.5 Berries Strawberry (Evie-2) 180 4.0 HIGH-QUALITY PRODUCTS WITH STRICT ADHERENCE TO CULTIVATION TECHNOLOGY 22.2 27.0 28.1 27.5 26.8 28.0 28.5 12.4 12.6 13.0 17.3 - - - - - as end product as raw material PROVEN YIELDS EFFICIENCY IS MORE THAN 2 TIMES HIGHER THAN IN HYDROPONIC SYSTEMS IN NOMINATION "BEST YIELD IMPROVEMENT"
6. TECHNOLOGICAL ADVANTAGES OF OUR OWN DEVELOPMENTS IN VERTICAL FARMING SPECIAL PLANTING MATERIALS Substrates are selected to achieve high planting density of various crops ADAPTIVE LIGHT In-house built phyto lights allow to adjust the spectrum and intensity FLOW CHARTS Optimal growing parameters for each crop according to a specific purpose HIGH-PRESSURE AEROPONICS Nutrition evenly delivered directly to the roots in the spray form DIGITAL MONITORING SYSTEM Allows to deeply understand the biology of processes during plant growth and optimize them MODULAR SYSTEM Allows to scale production and optimize the use of space Please note that all technical solutions are the company's own developments, which allows not only not to depend on suppliers, but also to increase technological dominance
7. Plant extracts CAGR 22.9% $4B $24B by 2030 CAGR 6% $ 30B $ 55B by 2026 CAGR 4% $ 415B $ 650B by 2030 RELATED MARKETS Nutraceuticals Vertical Farming The Nutraceuticals market needs raw materials based on extracts. Thus, more companies are going through VF to reduce CapEx and hedge against logistical risks.
8. Processing Raw material Functional food BAS Drug Cosmetics PROCESSING PLANTS We have developed a methodology of careful plants processing, which allows to save a huge amount of fresh plants' valuable properties for further transportation 25 mg of Sulforaphane by Merck cost €339
9. • wide applicability and high demand • made mostly from field-grown broccoli • BUT(!) microgreens contain 354 times more • and PFT is the leader in the yield of microgreens THE CASE EXAMPLE: SULFORAPHANE [CLICKABLE SLIDE] SFN's market share in pharma and nutraceuticals: steadily growing, but still in its early days CAGR OF 5.9% $13M in 2020 SULFORAPHANE antioxidant antimicrobial anticancer anti-inflammatory anti-aging neuroprotective S 0 N C S brussel sprouts, kale, cauliflower, broccoli, cabbage, kohlrabi, cress salad, radish anti-diabetic $19M by 2027 *this is just one of the first cases in our pipeline click here to learn more ↑
10. CONTESTANTS [CLICKABLE SLIDE] YIELD per m2 $4M N\A* ADDED VALUE $125K €4.4M $4.4M $238M Vertical farming: the company is undervalued for more than 90% AgBioTech references ↓click on digits or logo ↑
11. TRACTION •Developing cultivation technology •Launching laboratory •1→2 people 2016–2017 •Upgrading and scaling key systems and equipment •1st commercial production Business Model (BM): supplying fresh greens to HoReCa •2→5 people •Partners: Svetotehnika (LED lights), Alfa-Hydro (equipment) 2018–2019 •Developing of automation and digitalization •4 commercial production facilities in portfolio COVID-19→BM pivot: B2B consulting (farms construction) •5→8 people (front office) •Building own Research and Production site + Partners: Research Center of the Russian Academy of Sciences (IT, automation, robotization) 2020–1H2021 •Finalist of VFWA '21 in nomination "Best Yield Improvement"→ receiving cooperation requests from Singapore, India, USA, Switzerland, etc and finally have chosen Finland as 1st step •Own test-production facility launched •Confirmed R&D results for processing of greens to rare extracts (multiplyingadditional value)→ BM pivot: embedding to production chains (VF+Processing) •Opened a company in Finland •Initiated joint contract for the development of functional cosmetics with New Organics (subsidiary of L'Oréal) for €24M in 1st phase (on pause from February 2022 due to geopolitical tensions) +Partners: Polytech University, New Organics OY (biotech direction) 2H2021-2022 1. Assets:  Experimental-production site  Leader in microgreen yields  Unique design of aeroponic growing system  Formed flow charts for each plant and specific task  Developments with scientific institutions for adding value  Advanced processing methodology saving properties
12. FUTURE COMPANY STRUCTURE BIOPHARMACEUTICALS Commercial facilities where plants work as "bioreactors" in which demanded protein molecules are accumulated. Antibodies and other proteins obtained in the plants can be used in the treatment of various diseases, as well as for vaccination. Intensive cultivation technologies are a competitive advantage. PLANT RESEARCH CENTERS • identifying promising compounds in plants (including by developing and applying an AI platform based on data from farms) • commercialization in various industries CUSTOMIZED AGRICULTURE Commercial facilities producing high value herbal raw materials with further advanced processing for pharmaceutical, cosmetology and food industry (functional food and beverages) Sulforaphane, squalene, horseradish pyroxidase, brazzein (sweet protein for diabetics)
13. FINANCIAL INDICATORS OF THE PROJECT - SULFORAPHANE-CONTAINING GREEN POWDERS PRODUCTION KEY PROJECT ASSUMPTIONS Forecast period 102 months Estimated construction completion date 5 months Discount rate 23% annual Average depreciation period of fixed assets 8 years Income tax rate 20% Consumer Price Index (CPI) 4,4% annual Producer Price Index (PPI) 3,8% annual RATIOS UM VALUE Required volume of investment $ 2,532,000 Projected total revenue $ 66,120,000 Projected net profit $ 34,700,000 Net Present Value (NPV) $ 13,420,000 Discounted Payback Period (DPP) m. 14 Payback period (PP) m. 13 Project's internal rate of return (IRR) % annual 254% Profitability Index (PI) - 6,55
14. FINANCIAL INDICATORS OF THE PROJECT - SULFORAPHANE-CONTAINING GREEN POWDERS PRODUCTION Required amount of investments for project implementation ($) 2,532,000 CAPITAL EXPENDITURE STRUCTURE OPERATING COSTS STRUCTURE Selling expenses Depreciation Cost price Administrative expenses Income tax 57,98% 0,87% 9,42% 27,20% 4,53% Shipping and Customs Installation, commissioning and administration Construction and engineering works Related equipment Vacuum dehydrator and accessories Germination chamber Growing racks Design and surveying $4,000 $450,000 $500,000 $66,000 $200,000 $540,000 $188,000 $584,000
15. | 14 Denis Usik CEO pfactorytech@gmail.com Instagram LinkedIn Crunchbase Join us PLEASE GET IN TOUCH WITH US TO DISCUSS THE DETAILS CONTACTS