COMPANY NAME Investor Teaser Add company logo Executive

  • Slides: 11
Download presentation
COMPANY NAME Investor Teaser Add company logo

COMPANY NAME Investor Teaser Add company logo

Executive Summary The Company offers high quality, affordable certified seeds to smallholder farmers •

Executive Summary The Company offers high quality, affordable certified seeds to smallholder farmers • Products include certified varieties of legumes and cereals. Legume seeds are the company’s main revenue drivers and account for approximately XX percent of the sales • The company buys breeder seeds from a research institute which it distributes through the company’s outgrower network of XXX smallholder farmers in four of ten provinces • Currently, the company sells its certified legume seeds to farmers under the SEED brand through the Ministry of Agriculture , NGO’s, and agrodealers • Since 2012, the company has grown to XX permanent employees and XXX-XXX seasonal staff, earning revenues of $## million in 2017, with projected revenues of $## million in 2018 • Management team has extensive experience working in agronomy, accounting and audit from top institutions

Executive Summary Significant market exists for legume cultivation in the country by smallholder farmers

Executive Summary Significant market exists for legume cultivation in the country by smallholder farmers • The country currently has a population of XX million smallholder farmers, which is expected to increase to XX million farmers in 5 years, hence providing a stable market for certified seed producers • Crop production in the country is predominantly maize-centric, with farmers dedicating a certain percentage of cultivated land to grow maize. However, between 2011 and 2018, total growth in cultivated land dedicated to legumes increased by XX percent • To diversify the country’s crop production away from maize, the government introduced the a farmer connectivity program in 2016 covering 1 M farmers. The program requires farmers to spend on legumes, creating stable market for legume seeds Company seeks $XX million in financing to scale operations Requires $XX million to finance land purchases; equipment purchases; and irrigation system set-up for corporate farm Additional $XX million is required to support the hiring of new staff and enable increased seed production and distribution

Market Opportunities Staple crops still dominate the country’s market 30 25 20 Legume seed

Market Opportunities Staple crops still dominate the country’s market 30 25 20 Legume seed sales are growing 15 10 5 0 1/6/2002 1/7/2002 Series 1 Series 2 The country’s government subsidizes the sales of legumes Government’s program launched in 2016, expected to encourage legume cultivation • Aims to cover XX million rural farmers, providing them with $XX million invouchers at the start of each farming season

Business Overview The company aims to advance the agriculture sector by providing quality legume

Business Overview The company aims to advance the agriculture sector by providing quality legume seeds The company was founded in 2007 and began operations in 2012 • Company started as a seed provider for another crop but decided to specialize in producing and supplying certified legume seed varieties due to the limited supply in the market • The company also supplies cereal and vegetable seed varieties and provides additional extension services to rural farmers • The company’s headquarters and main storage facilities are in the country’s capital but the company distributes its seeds through wholesales to major clients

Business Overview The company runs an outgrower scheme to source its legume seeds •

Business Overview The company runs an outgrower scheme to source its legume seeds • Outgrowers are located in 4 out of 10 provinces • The company seeks to build competitive advantage through focus on legume seed production rather than maize. The Company’s primary target are the 1. 6 M smallholder farmers • The company sells majority of it’s seed wholesale to major clients, such as the government and agrodealers, who then distribute the seeds to smallholder farmers across the country • Company aims to capitalize on the governments drive to diversify the agriculture sector from maize and provide farmers more options to choose what they grow • Company seeks to raise capital to scale operations and reach farmers directly as opposed to selling to farmers indirectly through government and NGO’s

Business Overview Current model has led to over $1 million in annual revenue since

Business Overview Current model has led to over $1 million in annual revenue since 2014 Company works with XXX outgrowers in four provinces to produce certified seed After harvesting, company aggregates seed in each province of operation In season, company leases out temporary spaces in schools and other institutions to store seeds close to market for distribution. Facilities are often in high demand therefore expensive All aggregated seed is processed from head office in the capital, and thereafter transported to respective provinces for sale to target market/clientele Field officers coordinate process of aggregation, and distribution between head office and respective provinces Revenue in US Dollars 5 4 3. 5 3 2. 5 2 1. 5 1 0. 5 0 2015 2016 2017 Series 1 2018

Leadership Person’s Name Person’s title • This person has a MA from the University

Leadership Person’s Name Person’s title • This person has a MA from the University of America • This person is an experienced financial analysts, who is a proven leader in project design, monitoring and evaluation and business management • Prior to joining the company, he/she worked as a budget analysts for the government Person’s Name Person’s title • This person has a MA from the University of America • This person is an experienced financial analysts, who is a proven leader in project design, monitoring and evaluation and business management Key management staff also includes: • Person 1, agronomist • Person 2, financial manager • Person 3, business development manager

Growth Plans The company plans to introduce a new system to decentralize operations and

Growth Plans The company plans to introduce a new system to decentralize operations and support farmers Currently With new system Training is helping us expand to other provinces With the expansion to four new provinces, our sales will increase by XX percent Quality certified seed is produced in the country’s capital By producing quality seeds in provincial capitals, the company will reach XX more farmers In the long term, company plans to introduce a range of extension services to cater for different needs Farmers will have more efficient distribution channels, efficient crop aggregation, and direct access to products

Financial Projections and Capital Needs Growth in sales volumes will lead to $xx million

Financial Projections and Capital Needs Growth in sales volumes will lead to $xx million in net profit over the next years Annual Revenue $ 12 10 8 Over XX% 6 Increase in average annual net profits from 2017 to 2020 4 2 0 2017 2018 Projected Costs 2019 Projected Profits 2020

Financial Projections and Capital Needs Company needs $XX million in new capital to support

Financial Projections and Capital Needs Company needs $XX million in new capital to support growth Investment need $XX million for training $XX million to expand to other cities $XX for soil testing $XX for initial logistics $XX for staff costs and working capital Total estimated capital need: ~$XX million Financing primarily required for capital expenditure and operational expenses Will be used primarily to: • Land purchases and hub construction • Equipment purchases • Asset purchases for new product line i. e. provision of tractor services to local farmers • Irrigation system set-up