Overview

Introduction Market Drivers

Climate Change Multinationals
Sustainable Agriculture M&A
Biological Ag Industries BioControl Companies
Global Landscape / Stats Types--Limiters
Snake Oil to Science Case StudyBrazil 2014
Market Attractiveness Closing

1 May 2015 1
 Introduction
Personal Background
>35 years in global agri-business
Crop protection-Seeds
AgraQuest, BASF, American Cyanamid,
Dekalb Genetics, ICI, Stauffer Chemical
Worked in Argentina-Spain-UK-USA
>10 years in Biological Industries
2011Co-Founded DunhamTrimmer
LLC
Premier Biological Industries
Market Research Firm
Clients: Multinational CPC; Bio
Companies; Investors; NGOs
Due Diligence, Multi-client market data,
Single client studies
1 May 2015
2007Founded International Bio
Consultants LLC
Global BioControl Industry
Global Project Management
Launch companies internationally
Launch product internationally
2013Launched 2BMonthly
The Global Biocontrol & Biostimulant
e-Newsletter
Joint effort New Ag Intl &
DunhamTrimmer
Subscribers: Companies, individuals
interested in biological industries
2
 Climate Change
Climate Change Impacts Crops Through:
Increased CO2 concentration EFFECTS
WILL NO
Vary T
Higher temperatures by crop & BE UNIFORM
Altered, more variable precipitation patterns geograp
hy

Extreme weather events will be more common:

Heat waves, droughts, freezing, floods
Timing & location of these events during crop development
can greatly influence the impact

Source: US EPA

1 May 2015 3
 Sustainable Agriculture
05 0 9 billion
2
0 3 0 8 billion
2
2010 7 b
illi on 70% more food by 2050, using..
illio n Less land
1 990 5 b
t h Less water
n Grow
al Po p ulatio Less Fertilizer
Glob Fewer pesticides
To produce..? WATER
1 Slice Bread11 gallons
1 bag Chips50 gallons
1 Hamburger630 gallons
o 1 Steak1850 gallons a n izatio n t h e world
Fo o d & A gr iculture Org
he UN nd 2050
According to t en 20 0 0 a
needs to prod u ce m ore food betw e
10, 000 ye ars
r ing t he p re vious
uced d u
than was prod
Source: Dr Jack Bobo Sr Advisor for Biotechnology US State Dept

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 Sustainable Agriculture
Companies are striving to meet this opportunity/threat:
We look to innovation as a way to preserve and protect the environment, whether by using energy and
resources more wisely (which also helps reduce energy costs), pioneering profitable business and
product lines that make use of renewable raw materials or helping customers shrink their
environmental footprints.

We strive to ensure the responsible management of natural resources in order to guarantee access
to quality food while ensuring long-term sustainable agricultural, forestry and fishing practices which
help to preserve biological diversity..

We strive to ensure that every step of the McDonalds supply chain contributes positively to the
safety, quality and availability of our final products. We also want our product ingredients to be
produced in ways that contribute positively to the development of sustainable agricultural and food
manufacturing practices..

By 2020, we will halve the environmental footprint of our products, help more than 1 billion people
take action to improve their health and well-being, and source 100% of our agricultural raw materials
sustainably.

Source:

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 Biological Ag Industries
Biocontrol Control damaging pests
Insects / Diseases / Weeds

Biostimulants Alleviate abiotic stress

Stress from drought, heat/cold, etc

Biofertilizers Enhance nutrient uptake

Nitrogen, phosphate, potassium, others

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 Biological Market Overview
--IntroductionProduct Types

Biological Products
Biofertilizers BioStimulants Biological Control Products

Microbials Abiotic Stress Mgmt BioPesticides Macroorganisms

N P2O5 Amino Plant Nema-
Fixing Solubiliz
ing
Acids Microbials
Extracts
Biochemicals Microbials Insects Mites
todes

K Organic Seaweed
Mobilizers Others Extracts Semio- Plant Organic Yeasts
Acids
chem
Minerals PGRs Bacteria Fungi Protozoa Virus
Extracts Acids Others

Biostimulants BioPesticides
Biofertili Macroorgan
Biopesticides are derived from natural materials, such as plants, bacteria and
zers
Seaweed Extracts make up the largest
segment in this group
certain minerals. Biopesticides target specific pests and are inherently less toxic
than synthetic pesticides.
isms
Microbials, primarily bacteria, often
used as seed or soil treatment to aid in
nutrient assimilation
Biochemicals Microbials Insects;
Microbia Organic acids are humic and fulvic
acids used as soil amendments, Mites;
ls used formed by the microbial degradation
of plant matter.
Plant Extracts; Minerals &
Others; PGRs; Semiochemicals;
Bacteria; Fungi; Virus;
Protozoan; Yeasts Nematodes
Organic Acids Bacteria, followed by Fungi
to Definition and regulation of
biostimulants is still under
Plant Extracts make up the
largest segment in this group
make up the largest groups
commercially (>90%)
Insects
enhance development in most parts of the Semiochemicals (pheromones)
has the largest actual number of
Microbials are the largest
market of biopesticides at
followed by
world
plant
products
Largest challenge for Plant
US$1.3 Bn.
Biggest challenges for mites makeup
nutrient
Extracts is manufacturing and
consistent quality in the active
microbials are formulation
related: 1) Shelf-life; 2) the largest
ingredient(s) Stability; 3) Performance
groups
uptake
Source: DunhamTrimmer LLC
enhancement
Unique in that
from soil the live
1 May 2015
Nitrogen 7 organism in
 Global Landscape
Global BioControl Market Benchmark Values (USD)
$US 100 $US 500 $US 1,500 $US 3,000
Million Million Million Million

1993 1999 2005 2009 2012 2014 2016 2020

$US 250 $US 1,000 $US 2,000 $US 4,000
Million Million Million Million
4.5
4
3.5
3
2.5
2
1.5
1
0.5
$4.4Bn
0 Biological
1993 1999 2005 2009 2012 2014 2016 2020
Products cagr 12-16%
Biofertilizer
t
Biostimulan
cagr 12-14%
Biocontrol
cagr 12-15%
cagr >15.5%
Source: BioMarket Database DunhamTrimmer LLC

1 May 2015 8
 Biocontrol Market Stats
Asia/Pac

Plant Extracts
Macroorganisms Europe ROW Lat Am USA/Can
Microorganisms
Pheromones

Others
BioHerbicides BioInsecticides
BioFungicides BioNematicides

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 Snake Oil to Science
History History
400 BCdried flowers of 1950sBt Commercial
Tanacetum fermentation
17th CenturyNicotine >plum 1973First viral insecticide
beetle 1977New Bt strain > flies
19th CenturyBeauveria 1979EPA 1st pheromone
>silkworm registered
19th CenturyMineral & oils 1983New Bt strain > beetles
20th CenturyBt insecticide >
moths
Snake Oil Science
1920s/30sFrance commercial
Biological enthusiasts Scientific designed replicated
Bt
Non-scientific, non-replicated trials
data Scientific data
Promoted marginal activities Improved fermentation
technology
Over PromisedUnder Understanding of Mode of
Delivered Action
Deliver on promised results
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 Market Attractiveness
New Product Discovery / Development
Synthetic Pesticides Launch Costs == Total Costs $US $150 - 256 Mn*
Discovery- Development- Regulatory-
Label Launch
US$85 Mn US$146 Mn US$25 Mn
Biopesticides Launch Costs == Total Costs $US 10-20 Mn (multiple countries $20-$50 Mn.)

Discovery Developm Regulatory-

Labe Launc
- ent- US$ US$ 1-2
l h
Up
US$ 1to
Mn10 years
2-3 Mn for registration
Mnof a synthetic pesticide from time of discovery
Only one out of 139,000 compounds*
Development program includes many long term toxicology, environmental
fate, and crop residue requirements
Much shorter time for a biopesticide approval in USA
Discovery shorter less crowded IP
Development requirements less stringent in most countries
Return on investment for effective biopesticide products is very attractive

*Source: Crop Life America

1 May 2015 11
 Bio Market Drivers
Manufactu Growers
rers
Regulatory
Lower cost & shorter timeline

Pest Resistance
Multiple MOA (Mode of Action)
Portfolio Mgmt Tools
Full Program Offer
Food Marketers/Consumer Demand
Reduced chemical residues
Worker safety/flexibility
Sustainability

1 May 2015 12
 Multinationals

+RNAi Assets
>$300 Mn >$500 Mn > $650 Mn

Osage Mftg Plant >$ ?? Mn

> $1 Bn
>$150 Mn

> $ ?? Mn

1 May 2015 13