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IntraFish Seafood Investor ForumMay 23, 2017
FeedKind® Protein: A Nourishing and Sustainable Feed Ingredient
Disclaimer
The material in this presentation has been prepared by Calysta, Inc. (Calysta) and is general background information about Calysta’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice.
All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Calysta’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements.
Calysta does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Calysta’s control. Past performance is not a reliable indication of future performance.
Unless otherwise specified, all information contained herein was made current as of May 2017.
The Calysta Opportunity
• Calysta’s FeedKind protein can help address one of the greatest threats to global growth: food security
• Proprietary gas fermentation platform for producing protein and other nutritional products
• High quality FeedKind protein has been extensively validated in aquaculture, the most demanding and fastest growing food production system in the world
• Experienced team with proven track record of successful execution across multiple disciplines
• World-class partners and investors including Cargill, Mitsui and Temasek
• Construction of the world’s largest gas fermentation facility underway in Memphis, Tennessee, U.S
®
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4
2017201520142013
Calysta is spun out from DNA 2.0
Acquisition of BioProtein A/S
Company Milestones
10
Calysta is spun out from DNA 2.0
NatureWorks deal announced
$4M S
e
r i es A
Acquisitio
n
of BioProtein A/S
Entry into nutritio
n
industry
$11M Series B
FeedKind brand launch
2012 2013 2014 2015
$4M Series A $11M Series B
FeedKind brand launch
$30M Series C & Partnership in North America
Company Milestones
10
Calysta is spun out from DNA 2.0
NatureWorks deal announced
$4M S
e
r i es A
Acquisitio
n
of BioProtein A/S
Entry into nutritio
n
industry
$11M Series B
FeedKind brand launch
2012 2013 2014 2015
Broke ground in Memphis, TN
$40M Series D & Partnerships in Asia
Our Corporate History in Brief
Product Development and Validation
• Benefitting from multiple decades of development and $400+ million invested globally to-date
• Already approved in the EU for use in fish and livestock
• Anchor customer in Cargill Aqua Nutrition (CQN)
Manufacturingand
Operations
• European Fermentation Center operating in the UK and producing FeedKind protein commercial samples
• Ground broken on the 1st commercial plant, located in the U.S. and to be commissioned late 2018
• Financial commitments from a consortium of investors, including Cargill and Calysta
Sale, Marketing and
Distribution
• Global joint marketing agreement signed with Cargill
• Partner / investors Mitsui and Temasek further bolster Japan and SE Asia footprint
• Key FeedKind sales directors on the ground in Norway and the EU, China, and SE Asia
ManagementTeam
• Key hires made over last 12 months include important operations, international sales & marketing, regulatory and financing expertise
De-Risked Business Model Focused on Execution
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is a Natural, Non-GMO Source of Protein for Animal Feeds
®
Supply Chain
• Traceable
• Consistent product
• Year round production
• Long shelf life
• Reduced enteritis vs. plant proteins
Consumer
• Non-GMO
• Natural fermentation process
• No animal based ingredients
• Reduced use of marine ingredients
Sustainability
• No agricultural land use
• Little water use
• Additive to the human food chain
Under development
• Amino acid enhancements
• Prebiotic and probiotic effects
Naturally occurring microorganisms form a nutritious, high-protein biomass
Many Key Benefits for Feed Companies:
EU Feed
Registration:
EU Approval Already Received for Use in Fish and Livestock:
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Superior Nutrient Density as Compared to Other Protein Alternatives
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
HerringFishmeal
FeedKind AnchovyFishmeal
Soy PC CornGlutenMeal
Chlorella Soldier FlyLarva
RedSeaweed
Spirulina ActivatedBreweryWaste
Crude Protein Lipid Crude Fiber Ash
Source: FAO Feed ingredients and fertilizers for farmed aquatic animals, 2009.
Major aquaculture feed ingredients and alternatives
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Calysta’s Natural Proprietary Fermentation Process
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Millions of People Eat Single Cell Proteins Everyday
FeedKind Protein Commercial Samples Shipping Worldwide from Teesside UK Plant
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• Over 5 tonnes of commercially representative FeedKind protein already produced in 2017
• Shipping commercial samples to customer and partners worldwide
• Facility is a “scale-down” of the original Tjeldbergodden, Norway reactor, demonstrated to produce at a rate of 10,000 mtpa
• Successful maintenance of 8+ weeks of continuous fermentation, meeting design parameters for key commercial metrics such as yield and productivity
• Partnered with Center for Process Innovation (“CPI”) to provide on site services and well trained staff
Fermenter in Teesside, England.
Ground Has Broken on 1st Commercial Plant in Memphis, Tennessee
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• Collaborating with Cargill on what will be the world’s largest gas fermentation facility, occupying 37 acres of Cargill’s 69-acre property on President’s Island in Memphis
• Modular design lends itself to phased construction process: 20 fermenters, each similar in size to a football field endzone, plus several dryers, each approximately the height of a six-story building
• 20,000 mtpa Phase I coming online Q1 2019, with total production capacity of 200,000 mtpaby 2021
On-Going Trials Evaluating Feed Formulations, Species-Specific R&D and Regulatory Approvals Outside the EU
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• Material from Teesside is now being tested in multiple locations worldwide
• Work in process on vannamei shrimp, salmonids, and other marine finfish
• FeedKind protein will be a globally relevant ingredient, not exclusive to the salmon industry
• Working with most of the world’s largest aquaculture feed companies
• Recently completed growth study in rainbow trout
Initially Targeting the Global Aquaculture Feed Market…
~40M tonnes of aquaculture feed produced annually
• While production from wild capture has stabilized at 90 – 95 million
tonnes per year since the mid-1990s, aquaculture increased at a rate of
5 – 6% over the same time period
• Given finite fishmeal supply, growth in aquaculture cannot continue
sustainably on this trajectory without the development of new
alternatives
• Increasing dependence on terrestrial crops for feed raises its own set of
environmental considerations given the potential trade-offs associated
with agricultural land use, nutrient pollution and water consumption
Source: AllTech Feed Survey, 2016 and 2017; FAO State of the World Fisheries and Aquaculture
Asia Pacific dominates global fed
aquaculture production, followed by Europe
• Shrimp accounts for ~21% of aqua feed
production (82% in Asia)
• Salmon accounts for ~11% (52% in Europe)
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• Fishmeal replacement for carnivorous species requiring high protein diets
• Commercially validated with largest Norwegian salmon feed producers
• Improves digestive tract health in Atlantic Salmon
• Immune stimulating effects to be validated
• High protein feed supplement for critical growth periods, i.e. post weaning piglets
• Reductions in post weaning diarrhea
• Immune stimulating effects to be validated
• Orthogonal protein source for companion animals with systemic allergies
• Immune stimulating effects to be validated
…With Additional Market Opportunities Being Pursued in Parallel
Source: Aas et al., 2006. Aquaculture. Overland et al., 2010. Archives Animal Nutrition.
