Plant Factory Technologies Pitch Deck

We initiate the creation of joint ventures with manufacturers from the pharmaceutical, functional food, cosmetics, and perfumery industries ensuring an uninterrupted supply of raw materials based on vertical farms.

Transcript

1. | 1
2. WHO WE ARE AND WHO WE ARE NOT WE ARE NOT We are not a manufacturer or supplier (of greens, processed foods). These are directions of subsidiaries in our pipeline. The parent organization develops cases and adheres to a growth strategy. We are not a technology provider. As a yield leader, we choose the joint venture format in order to retain our intellectual property. WE ARE We are R&D platform which generates business cases for the food, nutritional supplements, cosmetics and pharmaceutical industries via vertical farming. These cases are based on our developments and competencies in the fields of engineering, construction, IT, biotech and agriculture.
3. TRACTION •Developing cultivation technology •Launching laboratory •No annual turnover •1→2 people 2016–2017 •Upgrading and scaling key systems and equipment •1st commercial production Business Model (BM): supplying fresh greens to HoReCa •AT $50K •2→5 people •Partners: Svetotehnika (LED lights), Alfa-Hydro (equipment) 2018–2019 •pre-seed round $125K •Developing of automation and digitalization •4 commercial production facilities in portfolio COVID-19→BM pivot: B2B consulting (farms construction) •AT: $400K •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" •Own test-production facility launched •Confirmed R&D results for processing of greens to rare extracts to multiply additional value→ BM pivot: embedding to production chains (VF+Processing) •Opened a company in Finland •Joint productions of cosmetics and functional food with New Organics OY and Pure Protein companies •AT: projected sales $3.2M •+Partners: Polytech University, New Organics OY (biotech direction) 2H2021-2022
4. 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.
5. COMPETITORS' UNIVERSE: POTENTIAL, RAISED INVESTMENTS [CLICKABLE] yield per m2 iFarm $4M ZeroFarms N\A* (most similar competitor) ability to add value to products via processing Plant Factory Technologies $125K Urban Crop Solutions €4.4M LettUs Grow $4.4M Aerofarms $238M
6. ADVANTAGES IN VERTICAL FARMING YEAR-ROUND PRODUCTION Year-round production regardless of the season and weather conditions. Optimal growing conditions are formed by a unique adaptive LED lighting system and a high pressure aeroponic nutritient supply system. TOTAL CONTROL OVER PRODUCTION Automated production management and digital monitoring of cultivation, implemented on the basis of our own solutions, ensure the stability and transparency of key technological processes. FLEXIBILITY AND SCALABILITY Modular growing systems make it possible to quickly accommodate advanced facilities on the basis of fundamentally different sites and achieve maximum efficiency in the use of each unit of production space. HIGH QUALITY PRODUCTS Due to the stable microclimate and the absence of dis- eases and pests in production, up to 97% of the plants have a marketable appearance. STABLE SUPPLY OF FRESH GREENS The ability to fine-tune the production cycle allows you to set the timing of the greens’ readiness and receive products with guaranteed quality indicators. NEUTRAL IMPACT ON THE ENVIRONMENT Aeroponic plant nutrition system eliminates the dis- charge of the spent nutrient solution, as the substrates being used are non-hazardous waste and can be reused.
7. Crop Growing cycle, days Monthly output (kg/m²) Microgreens Mustard 5 14.0 Broccoli 7 7.7 Pea 7 17.0 Radish (Daicon) 3 20.4 Radish (Red Coral) 3 20.2 Radish (Sango) 3 20.0 Radish (China Rose) 3 19.6 Arugula Red 6 7.2 Kale (Red Russian) 7 7.4 Kale (Black Tuscany) 7 7.7 Cress (micro) 6 11.0 Leafy greens Salads (baby leaf) 15 5.5 Sorrel (baby leaf) 15 4.8 Basil (baby leaf) 15 3.6 Arugula (baby leaf) 15 4.5 Berries Strawberry (Evie-2) 180 4.0 PROVEN YIELDS HIGH-QUALITY PRODUCTS WITH STRICT ADHERENCE TO CULTIVATION TECHNOLOGY 18.2 10.0 22.1 26.5 26.3 26.0 25.5 9.4 9.6 10.0 14.3 - - - - - as end product as raw material
8. BOARD MEMBERS Denis Usik, CEO 15 years in tech implementation and production scaling (construction and engineering) Denis Malyshev, CTO Over 5 years continuously improves yields; develops deep processing direction Roman Iakovlev, CFO 4 years in business transformation and leading innovative projects Anton Saveliev, HOE PhD in Robotics, increased automation from 15% to 65%
9. VERTICAL FARMS. WAYS OF MONETIZATION. Basic Products: Microgreens Green crops Berries Medicinal crops
10. VERTICAL FARMS. PROCESSED PRODUCTS. Superfoods Vacuum dehydration Green powder Supplements Medications Organic skin care Existing supplements Super Greens – Green Superfood Powder Athletic Greens – Greens Supplement Powder Amazing Grass – Greens Superfood Capsules Vital Proteins – Collagen Peptides Powder Supplement Existing superfoods Green Juice – Organic Superfood Powder Your Super - Super Green Juice Powder Your Super – Super Green Mix (Smoothie)
11. PILOT PROJECT. SULFORAPHANE-CONTAINING GREEN POWDER • Commercial production (150 m2) includes a vertical farm and R&D unit • In this facility own developments will be used, including a specialized lighting system and aeroponic plant nutrition technology • The project is devoted to development and production of sulforaphane-containing green powder for further supply to the supplements, pharma, food and cosmetics industries The effective growing area is 54 m2, the products output is from 28 to 125 kg of green powders per month (depending on assortment). Pilot production will also allow to supply up to 20 types of microgreens to the real sector of economy. Click to learn more about manufacturer examples: Sanabio, NewCo, Mibelle, Eminescence
12. • pharma ingredient of the year in 2021 • made mostly from field-grown broccoli • but microgreens have 350 times more of it • PFT is the leader in the yield of microgreens WHY SULFORAPHANE AND WHY US? [CLICKABLE] 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
13. FINANCIAL INDICATORS OF THE PROJECT - SULFORAPHANE-CONTAINING GREEN POWDER PRODUCTION Required amount of investments for project implementation (€) 746 800 CAPITAL EXPENDITURE STRUCTURE OPERATING COSTS STRUCTURE 50,58% 0,76% 24,37% 20,34% Selling expenses Depreciation Cost price Administrative expenses Income tax 3,95%
14. FINANCIAL INDICATORS OF THE PROJECT - SULFORAPHANE-CONTAINING GREEN POWDER PRODUCTION KEY PROJECT ASSUMPTIONS Forecast period 102 months Estimated construction completion date 6 months Discount rate 31% annual Average depreciation period of fixed assets 8 years Income tax rate 20% Consumer Price Index (CPI) 5,4% annual Producer Price Index (PPI) 4,8% annual RATIOS UM VALUE Required volume of investment € 746 800 Projected total revenue € 7 186 000 Projected net profit € 3 332 000 Net Present Value (NPV) € 648 000 Discounted Payback Period (DPP) m. 37 Payback period (PP) m. 28 Project's internal rate of return (IRR) % annual 68% Profitability Index (PI) - 1,93
15. | 14 QUALITY FIRST THANKS FOR YOUR TIME