Indigo Overview A Better World Begins With Agriculture AUGUST 2017 1 2017 Indigo
David Perry CEO, President & Director Born and Raised in Arkansas Founder, Chairman Farewell Founder, CEO, President Anacor Pharmaceuticals (NASDAQ: ANAC) Founder, CEO, President Chemdex (NASDAQ: CMDX) MBA, Harvard Business School B.S. Chemical Engineering, University of Tulsa Started With Indigo in Early 2015 2 2017 Indigo
Founded 2014 170+ employees Boston, MA global headquarters and research center Memphis, TN commercial operations and supply chain center Yoder, KS regional sales office 15 Employees In KS $156M private equity funds raised 5 commercial products To date, Indigo has a aggregate footprint of 300K + acres in the U.S. 3 2017 Indigo
Indigo Is Creating A Different Kind Of Agriculture Company This starts with farms being profitable Agriculture conserving natural resources Meeting consumers desire to understand the impact of the food they purchase 4 2017 Indigo
The Lack Of Innovation In Existing Technologies Is Driving Consolidation In Agriculture Over the past 60 years, increases in agricultural productivity have been driven by the increasing use of 4 technologies The rate of innovation has plateaued over the last 20 years Innovation Traits Innovation Fertilizer Breeding and hybridization Agricultural chemicals Chemical fertilizer Traits or GMOs Innovation Chemistry Innovation Germplasm Germplasm Chemical Classes Traits Introduction Fertilizer Efficacy Cumulative Innovation Impact (Based on a Relative Scale for Shown Innovations) Note: Chart reflects cumulative impact of technology introductions by innovation since 1975. Scale based on Company knowledge and industry research. 5 2017 Indigo
High Input Costs Are Affecting Farm Profitability Wheat input prices are up 300% in the same period while yields have remained flat directly impacting farm profitability % Change Since 1975 For Wheat Input Costs & Yield Per Acre Input Price (Seed+Chemistry+Fertilizer) Yield Per Acre 350.0% 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% -50.0% 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Wheat EBIT (Right Axis) Wheat Price Wheat Ag Input Prices (Right Axis) 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 $150 $100 $50 $0 ($50) ($100) 6 2017 Indigo
Farming Is A Difficult Business Inputs upfront Weather risk Commodity price RISK & UNCERTAINTY The current farming business model impacts profitability 7 2017 Indigo
Challenges To Farm Profitability Include: Low Market Power Lack of Innovation Lack of Access to Good Data Commodity Products RISK & UNCERTAINTY Increasing profitability is a challenge for farmers 8 2017 Indigo
The Indigo Offer Improves Profitability And Reduces Risk 1 Upfront Payment 2 Indigo 3 Grower 4 Harvest Delivery Certification Payment upfront on 75% of APH and agreement to purchase the remaining crop $ Grower Indigo-Treated Seed Forward Contracting Agronomic Advice Crop Marketing Farming Expertise & Operations Equipment Farmland Inputs Grain Elevator $ Grower 9 2017 Indigo
Indigo s Offer Improves Grower Profitability Grower with Indigo: $213/acre Increase in Revenue Per Acre +$64/acre Indigo increases grower profitability Standalone Grower vs. Grower w/ Indigo Crop marketing +$30/acre Indigo microbe Seed treatment +$10/acre +$6/acre Probability Standalone Grower Grower w/ Agronomic insight +$10/acre Certified seed +$7/acre Base $149/acre Profitability Note: Assumes grower with APH of 40 bushels per acre (grower using cleaned and conditioned saved seed). 10 2017 Indigo
Indigo s Science Improves Yield While Reducing NitrogenAnd Chemical Usage Abiotic Biotic Heat Drought Salt Nitrogen Bacteria Fungi Insects Viruses IMPROVED GROWER PROFITABILITY BETTER USE OF NATURAL RESOURCES BETTER HEALTH 11 2017 Indigo
Indigo Increases Yield And Plant Health In Wheat As seen in greenhouse trials, field trials, and approximately 20,000 acres of commercial planting 10%* 10%* increase increase In seedling vigor In head producing tillers 10%* 2.6* increase bushel In dry weight biomass per acre yield increase *Data represents results seen in 50 bu/ac or less yield environments in 2017. Control Head producing tillers increased by 10% with a 94.4% win rate 12 2017 Indigo
Increased Profitability And Reduced Risk Through Forward Contracting 120% 115% 110% 105% 100% 95% 5-Year Average Wheat Price (July Futures) Highest Price Lowest Price Over the last 5 years, If you farmed and averaged 1,000 40 You would have an extra $158,400 in your pocket today from forward contracting Acres bu/ac Note: Assumes grower forward contracts 100% of production at planting; 5-year historical prices based off Kansas City Board of Trade for July Futures 13 2017 Indigo
Indigo Transforms Farm Profitability In Four Ways Indigo s Focus: Reduces Risk Increases Crop Yield Increases Crop Prices Decreases Input Investment How We Do It: Eliminate commodity risk Microbial seed treatment Volume-based crop marketing Reduced input use Reduce weather risk Insights agronomic advice Market development / product differentiation Lower input costs (buying power) Forward grain sales 14 2017 Indigo
Empowering Growers Leads To Increased Farm Value FARM VALUE Improved Cash Flow High Market Power Data Based Decision Making Reduced Risk Innovation Enhances Profitability Ability to Differentiate Products Young & Beginning Farmers 15 2017 Indigo
Let s Visit To receive a customized estimate of how your farm profitability can be improved: Text us your name at (316) 768-7771 See us at our Wheat U booth, located at the entrance of the ballroom Setup a meeting with your local account manager at www.indigogrows.com 16 2017 Indigo