Problad A novel fungicide concept. COHITEC Final presentation

Transcription

1 Problad A novel fungicide concept COHITEC Final presentation

2 1 Agenda 1 Fungi and Fungicides 2 Problad Value Proposition 3 Our Approach 4 Financials 5 Q & A

3 Fungi and Fungicides 1 Although the global fungicide market reaches almost $7 billion, fungi attacks causes approximately $45 billion in crop losses per year. 2

4 3 Fungi and Fungicides Fungi fighting is the most dramatic issue that millions of worldwide farmers have to deal with, still, there are major environmental and economical problems. The only existing solution is the intensive use of chemical fungicides. 1 Chemical Fungicide Natural Specimen Fungicide Label Toxic to: Man Host plant Fungi Soils Environment Toxic to: Fungi The best environmentally safe solution is the use of Natural Fungicides

5 4 Agenda 1 Fungi and Fungicides 2 Problad Value Proposition 3 Our Approach 4 Financials 5 Q & A

6 Value Proposition - features Our product consists on a unique fungicide of natural origin. This characteristic distinguishes our product from every other available in the market regarding its benefits for the final costumer. 2 Powerful anti- fungal activity Low toxicity Raw material is an abundant worldwide commodity Extracted from an edible plant Problad High persistance Broad spectrum Patented protectable GRAS product reduce time to market 5

7 6 Value Proposition We have a natural fungicide that is non toxic to man and environment and allows to eliminate several types of fungi simultaneously. 2 Problem Solution Biological Agriculture Greenhouses Open Air Agriculture Non-existent natural fungicides with healing proprieties Chemical fungicides require safety intervals before harvesting One fungicide per fungus type; Several applications, drastically increasing fungicide costs for farmers Offer a natural fungicide with preventive and curative effectiveness Non-toxic product that allows harvesting in any time and people consumption Elimination of several types of fungi simultaneously; Fungicides are Since we don t one The of existence the major have a curative factors of safety affecting fungicide the the intervals grape constrains emergence of production the your fungicide costs. economic If I can would viability be of a reduce the breakthrough greenhouse in number of crops organic fungicides in and agriculture. treatments Algarve. I Portuguese would save a lot Pioneer in Agronomic of money. Organic Engineer Agriculture, at the Cardoso Ministry da of Vine Rocha, Agriculture, grower in Ribatejo, Quinta Pedro da Comenda Valadas Jorge Seixas

8 Value Proposition Fungicide industry is very concentrated facing an increasing demand for new products since many toxic substances are being removed from market. 2 Competition Characterization Reduced number of allowed active ingredients Increasing number of fungi resistances Reduced number of new substances Status Agricultural products are reaching the market with high level of fungicide residues with high toxicity DGPC, Vice-president Do not make more than four applications of Quadris per acre per crop year. Syngenta One fungicide in development and one launched in the last five years Annual Report of Syngenta 7

9 8 Competition Problad ends up winner from the comparison with top class fungicides namely regarding fungi resistances, side effects and costs per hectare. 2 Usage Vineyard Fungi Spectrum Side Effects Safety Interval Vineyard Cost/ha year Biological Agriculture (Copper sulphate) Some limitations 1 Soils Environment Water 7 days 300 Open Air Agriculture (Quadris) No more than 4 times per year 2 Soils Environment Water From 3 to 15 days 400 Problad Fungicide No limitations 4 NONE NONE 300 Killer value proposition

10 9 Agenda 1 Fungi and Fungicides 2 Problad Value Proposition 3 Our Approach 4 Financials 5 Q & A

11 10 Time Schedule We have one year to confirm on the field the excellent results we obtained under greenhouse conditions. Because we believe in this project we will fund Field Testing stage with our own resources. 3 Year Investment Needs Company Creation 1st Phase Field Testing Certification Process Start Production (own resources) nd Phase Supply Entrance Markets working cap 3rd Phase Supply World Market

12 11 Production One of the most critical aspects of our project is Production. In the first years we will use outsourced spare capacity 3 Very abundant and cheap raw Material; Represents 30% of COGS. Over ton required in the first years Simple extraction process Similar to the one used in several factories in a different market; Represents 60% of COGS. Valuable by-products Problad will be available on different formats; Gross margin over 60% Over 100 ton sold in the first two years

13 12 Strategy Our entry strategy is to address unexplored markets (biological agriculture) and specific segments like vineyards. 3 Entrance Markets (2008) Target: address large farmers of biological agriculture and vineyards in a B2B model; address small farmers through established distribution channel Production: use spare capacity of other factories with similar production process Proof of Concept / Gain market traction Target: establish a worldwide sales and distribution network; Global Markets (2010) Production: build our own production facilities Address global market

14 13 Agenda 1 Fungi and Fungicides 2 Problad Value Proposition 3 Our Approach 4 Financials 5 Q & A

15 14 Financials The Business model is based on the two phase approach: 1st phase until Revenues 4 # of applications x price per application x area protected (ha) Biological Agriculture 5 Greenhouses 10 Open Air 5 Sale Price of 20 per ha Retail price of 50 per ha Biological Agriculture Problad protected areas 0 ha ha ha ha ha % 0,0% 0,1% 0,4% 1,1% 2,6% Greenhouses Problad protected areas 0 ha 115 ha 337 ha ha ha % 0,0% 0,0% 0,1% 1,1% 2,0% Open Air Problad protected areas 0 ha ha ha ha ha % 0,0% 0,0% 0,0% 0,0% 0,4%

16 15 Financials In 2011 the mix of revenues will be Problad s Revenues Split K K K K Biological Agriculture Greenhouses Open Air Total

17 Financials 4 The peak-funding will be reached on 2007 and accounts for Cumulative cash-flow Problad s Revenues and Net Income Euros Euros Peak-funding:

18 17

19 18 Agenda 1 Fungi and Fungicides 2 Problad Value Proposition 3 Our Approach 4 Financials 5 Q & A

20 19 Q&A 5 Problad Contacts: Ricardo Ferreira Virgílio Loureiro Sara Monteiro Paula Rosa Ricardo Marques Luís Costa rbferreira@isa.utl.pt vloureiro@isa.utl.pt smonteiro@isa.utl.pt paulacrosa@hotmail.com rpmarques@gmail.com Dominguez.costa@gmail.com