YNSECT How to change the world with insects Antoine HUBERT, CEO 1
Ynsect at a glance A unique value proposition answering current and future worldwide nutritional needs What is Ynsect? An innovative and emerging agro-industrial leader dedicated to insect-based nutrient resources (proteins, lipids, fertilizers, etc.) An alternative source of protein-rich nutrients for animal feed and potentially human food Fish meal: first target submarket due to strong demonstrated protein need Value chain Cereal byproducts Feedstock bought by Ynsect to feed its insects Insect-based nutrient resources sold by Ynsect Suppliers (cereal mills) Insect farming Insect downstream processing Customers (feed meal formulators and manufacturers) A unique value proposition High-quality products / richer in protein (vs. existing sources of animal feed and other insect players) Competitive cost-in-use for clients Established and highly profitable industrial process Long-term vision: conceived from day 1 to be a big business with a flexible, automated and scalable technology A dedicated R&D department and a global intellectual property protection (products, farming and transformation processes) to maintain existing competitive edge Flexibility on ownership / financing of plants (depending on geographical areas and future partners) to maximize value for stakeholders 2
Increasing demand for food drives a global protein shortage Continuous worldwide population growth and an increasing need for fish and meat resulting in an increasing protein demand for feed, larger than supply 1.6bn 9.5bn 7.6bn kg / capita / year (1) 4 3 2 1 60 mt / year 100 140 10 1920 1960 2000 2040 1990 2005 2030 2050 Worldwide Population Meat consumption Volume missing from 2025 onwards Source: FAO report (1) carcass weight 3
Fish meal example: key concerns How to answer the drop in fish meal production and the increase in fish meal price? Fish meal: a major feed ingredient Fish meal: raw material facing an expected shortage Worldwide fish meal market (1) (in 2010): $.6 bn Used to feed: Pigs m tons 5.5 5.0 4.5 4.0 Shortage of c.1.5 mt (2) $513/t Substantial price increase Fish $1,00/t 2001 2015 Chickens Others Insect meal addressable market 3 mt 6 bn 3.5 3.0 2015 2020 2025 Fish meal demand (high case) Fish meal demand (low case) Fish meal production Declining fish meal production: - 2 m tons over the last 15 years Increasing demand due to continuous worldwide population growth: + 2 bn people by 2050 (1) Lux 2015 research (2) Rabobank 2015 report 4
First products and markets In its first development phase, Ynsect is mainly targeting fish feed and pet food markets Products Markets TRL (1) Market potential Marketing achievements Fish feed: proteins to replace fish meal +++/++++ Ongoing discussions with industrial players Successful tests on trout Protein meal (finished product contains over 70% protein) Pet food: proteins to replace by-products (bones, viscera, necks, carcasses, etc.) from poultries, pigs and ruminants +++ / +++ Sales framework contracts signed with industrial players Successful tests on pets Animal feed (especially for juvenile animals) (e.g. poultry, pig): proteins to replace fish meal and plant hydrolysates ++ / +++ Successful tests on poultries Oil Animal feed: natural source of fatty acids, that may substitute oils and fats used in animal feed ++ / +++ Fertilizer Agriculture: plant and soil nutrition + / + Advanced discussions with European clients High-quality products (consistent over time and certified) Ynsect s products compared to onmarket products Competitive cost-in-use for clients Not affected by seasonality (constant price and volume over the year) Blockbuster products / strong performance compared to existing proteins currently used (e.g. +30% growth for fish) (1) Technological Readiness Level ; scale ranging from 1 to 9 Short-term potential Mid- &-long-term potential 5
Key milestones A track record of industrial successes and awards Lab testing Prototype Pilot plants Demo Plant Industrial plant Industrial key achievements Outsourced prototype (5 kg protein / month) 2 nd rank in world finale + people s choice award 10 best France innovation 2015 Named in the prestigious 2015 Global Cleantech 100 Last development phase Creation of Ynsect First Test Lab (<1 kg protein / month) Best European biotech 2013 Pilot plant 1.0 No automation (10 kg protein / month) Pilot plant 2.0 Semi automation (1 t protein / month) Demo Plant (1) - full automation (30 t protein / month) Industrial plant (>2,000 t protein / month) 2011 2012 2013 2014 2014 2015 Summer 2016 2017/ 201 Partnerships with renowned financial entities Seed, Grants and Innovation loan 2.5m Series A + managers 5.m Non equity funding 5.5m Contemplated fundraising (Series B) + new financial partner(s) Series C fundraising at holding level and at plant level (1) Demo Plant built & ongoing equipment installation 6
Ynsect in 10 years: A global feed and food leader > 100 kt 1 kt Industrial plants in 10 years Annual production of larvae per plant 100 kg Lab 10 t Outsourced prototypes Pilot plant Demo Plant Green chemistry, cosmetics, human food, etc. Other animal feed Pet food & fish feed & agriculture The unchallenged AGRO-INDUSTRIAL LEADER dedicated to insect-based nutrients for feed and food operating / licensing c. 40 factories over the world. 2012 2013 2014 2015 2016 2017 201 2019 2020 2021 2022 2023 2024 2025 Factories Species 1 2 >10 1 >5 >40...operating on various end-markets, from fish feed and pet food to cosmetics and human food Turnover ( m) (1) 1 >100 >1,500 (1) Turnover generated by plants (in case of full ownership) 7
Academic background: Previously: Ynsect s team A dedicated management team supported by AgTech and Biotech focused financial investors Visionary and top level founders supported by seasoned managers Antoine Hubert Aged 34 Chief Executive Officer Co-Founder Fabrice Berro Aged 30 Upstream Chief Scientific Officer Co-Founder Alexis Angot Aged 32 Chief Financial & Legal Officer Co-Founder Jean-Gabriel Levon Aged 30 Chief Operating Officer Co-Founder Thibault Du Jonchay Aged 4 Chief Industrial Officer Nathalie Berezina Aged 40 Dowstream Chief Scientific Officer Benjamin Armenjon Aged 43 Head of Marketing & Sales Senior Scientist Environment Consultant IT Project Manager Project manager Senior Consultant Site Director, Senior VP Production Director Senior Scientist Technical Service Manager-Scientist Project Manager 22 years of experience 17 years of experience 14 years of experience Environment MsC Applied mathematics Bachelor in Law Business Business Business PhD Biotechnology Chemical engineering school Chemistry Food Science school have attracted interest from renowned AgTech and biotech focused financial investors A well-structured organization of 44 employees with 10 nationalities
Thank you for your attention www.ynsect.com 9