Breakthrough Freshness Management - Zest Labs · Food Freshness & Safety are based on grower...
Transcript of Breakthrough Freshness Management - Zest Labs · Food Freshness & Safety are based on grower...
©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
OTCQX: ZEST
Breakthrough Freshness Management
to be renamed
1©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Safe Harbor Statement
This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any security of Ecoark Holdings, Inc. and/or its subsidiaries(“Ecoark” or the “Company”). This Presentation has been prepared to assist interested parties in making their own evaluation of Ecoark and does notcontain all of the information that prospective investors, purchasers or parties may need or desire. Nothing contained herein shall be construed asinvestment, financial, legal or tax advice. Interested parties should conduct their own investigation and analysis of Ecoark, by reviewing its publicfilings with the Securities and Exchange Commission (the “SEC”) and other publicly-available information along with the data set forth in thisPresentation.
This Presentation contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements”for purposes of federal and state securities laws, including, but not limited to: statements concerning the business and possible or assumed futureresults of operations of the Company and its subsidiaries; any projections of earnings, revenues or other financial items; any statements of the plans,strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; anystatements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any ofthe foregoing. Forward-looking statements may include, but are not limited to, statements that include the words “may,” “will,” “estimate,”“intend,” “believe,” “expect,” “plan,” “anticipate” and other similar words.
Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: access to growthcapital on favorable terms; adverse economic changes affecting markets we serve; competition in our markets and industry segments; theprofitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration ofthe businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our SEC filings. Although we believe theexpectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements aremade, and our future results, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this Presentation to conform these statements to actual results or to changes in our expectations, except asrequired by law.
All third party logos and trademarks appearing in this Presentation are the properties of their respective owners.
2©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Seasoned Leadership TeamBackgrounds Across Technology, Retail, Transportation,
Government and Implementation
Randy May, Chairman, CEO, and Founder
Former Walmart Executive
Peter Mehring, President
Former Apple Executive
John Cahill, Attorney - Former Chief
of Staff for the Governor of New York
Mike Green
Former IBM Executive
Gary Metzger - Former Amco
International Executive
Steven Nelson - Former Vice
President, Controller of Dillard’s, Inc.
Independent Directors
Executive Officers
3©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Food Waste Challenge
Annual fresh food waste in the U.S alone
• 33% post-harvest waste** = $85B
• 50% of waste in retail is pre-consumer
• Zest Fresh reduces pre-consumer waste by >50%• potentially saving >$15B*
* Zest Fresh targets 70% of perishable market
Fixing Food Waste is a Huge Opportunity
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**UN FAO Food Losses and Food Waste
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The Industry is Facing a Perfect Storm
Increasing margin pressures are forcing changes
New low cost competitors in Fresh Food
Dramatic increases in freight costs
Consumer pressure to stock the best produce (FMI 2018)
4©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Preventing Food Waste Is Good Business
Zest Fresh -
Immediately improves product margins
Proven to cut field-to-shelf waste by 50% or more
Provides consistently higher shelf-level quality
- What consumers want
5©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
6©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Produce SeafoodDairyMeats & Poultry
What We Do
Without Changing Operations:
1. Improve Fresh Product Margin
2. Proactive Food Safety & Traceability
3. Increase Sustainability Performance
6©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
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Lack of Shelf-life Leads to Shrink
• Shelf Life Driven By Harvest Quality &
Temperature Handling
StrawberriesAfter Harvest, 1 Hour at 85o
Reduces 1 Day of Shelf Life
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57.5% at Risk
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Optimized Grower Processing
Prioritizes Routing & Inventory with “Dynamic Use By Date”
End-to-End Automated Pallet-level Visibility
Zest Fresh Unlocks Consistent Shelf-life
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Grower Pack House Logistics Distribution Store
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$182B US Addressable Market
(1) NRDC and USDA statistics on pre-consumer waste and markdowns (value shrink)
Zest Fresh Annual Revenue Potential: $750M+ US, $1.5B+ Globally
$260B - Total US Perishable Sales
70% - Zest Fresh Served Market
15% - Field-to-Shelf shrink1
$182B - Zest Target Perishable Sales
$30B - Zest Targeted Waste
$15B Zest Value
x 10% Zest Charge
= $1.5B Revenue
$30B Field-to-Shelf Waste
x 50% Waste Reduced
= $15B Savings
50% US Adoption
= $750M
Value Driven Analysis
182M Pallets
x $10 Zest Charge
= $1.82B Revenue
$182B Addr Market
➗ $1000 Pallet Value
= 182M Pallets
50% US Adoption
= $910M
Volume Driven AnalysisUS Market Facts
©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
10©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
A Complete Solution for AgTech
A Grower-Centric Solution that Delivers Value to Suppliers, Retailers & Restaurants▪ Food Freshness & Safety are based on grower execution
▪ Improving shelf life consistency is a grower responsibility
Zest Fresh Integrates Technologies that Deliver on Value▪ Blockchain, IoT, Cloud analytics, machine learning all integrated
▪ Using technology to make it, “easy to do the right thing” every time
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11©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
More Than Produce
Meat, Poultry, Pork and Seafood Represent
Significant Waste
Same Challenges as in Produce• Variable delivered shelf life
• No proactive product condition monitoring & feedback
Zest Fresh Delivers Value to Protein• Supplier process monitoring & real-time alerts
• Predictive freshness modeling & intelligent routing
• Food safety and True Transparency
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12©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Zest Fresh – A Proven Value
Users Love Zest Fresh• More than 2 years of broad use, with strong user endorsements
• Working with leading retailers and producers
Proven Value • Freshness compliance of 30% improved to >85%
(delivered remaining shelf life)
• Reduce retail shrink by >50% (waste & markdowns)
• Growers gain confidence through process visibility
“I’ve been working in the dark all along, and Zest turned on a
light so I can now see freshness. I can never go back to working
in the dark again.”
- Grower Quality Assurance Manager
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Automated and reliable product data capture
Grower-centric with real-time operational value
Intelligent routing to ensure delivered freshness
Blockchain security and trust for suppliers to retailers
67 Issued US Patents - >$100M invested to date
Barriers to Entry
©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Why Zest Fresh is Unique in AgTech
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Grower Operations VisibilityZest Fresh provides product-level visibility throughout harvest
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Zest Fresh Delivers Real Value Across the Supply Chain
Intelligent Routing
Best Quality, Reduces Waste Product Delight
Improved Operational Efficiency
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Zest Fresh Delivers Blockchain
Turn-key Support for Zest Fresh users
Integration eliminates technical barriers
Sensor driven blockchain transactions – easy & secure
Data privacy and management built-in
B L O C K C H A I N
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17©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
A Complete, Integrated Solution
Practical, Automated Wireless IoT Sensors
Cloud-based Predictive Analytics & Product Visibility
Wireless Pallet-level Sensors Wireless Access
Freshness Capacity
(shelf life)Intelligent Routing Live DashboardsMobile
Access
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Competitive Landscape
End-to-End
Product-Centric,
Data Driven Solution
Legacy Temperature
Recorder
Devices/Loggers
Proactive Real
Time Supply Chain
Management
Legacy
Forensic Analytics
Tools
Competitors do not address food waste, as they only report historic data
Only Zest Fresh proactively manages freshness through
predictive analytics to prevent food waste
19©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Increasing Market Reach Through Partnerships
Better Together
Pursue partners offering complementary solutions
Enhances customer benefits & simplifies operations
Complementary Solutions
Supply chain document and certification management
Shelf life extending solutions – controlled atmosphere & coatings
On-line fulfillment & fresh food trading solutions
Pre-harvest yield improvement solutions
©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Market Traction
Growers: 4 national growers – combined annual revenue opportunity of $3M - $5M for domestic, and $2M for international operations
Distributors and Retailers: Combined $1.5M - $2M annual revenue opportunities
Lettuce Market: Attaining half of the lettuce market – a single product category – would drive about $12M in Zest Fresh annual revenue
20©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
21©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Revenue Model
Zest Fresh
Product mix drives 60% Gross Margin
Average revenue of $10 per pallet trip to store
• 30 pallets / week per store = $15K / store annually
• 270 Stores = $4M / year
Reflective of regional grocer opportunity
Added revenue for additional data licenses – transportation, insurance, etc.
Zest Labs Professional Services
Evaluate procedural, product flow and/or structural improvements
Comparative analytics by season, site and variety
SaaS Revenue Model Based on Pallet Trips
22©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
Financial Overview
Revenue
Ecoark Holdings – TTM through Sept. 2018 $11,666
Zest Labs (subsidiary) $ 1,576
Cash Expense Rate – forward looking
Ecoark Holdings $2,000 / quarter
*exclusive of divestitures
Line of Credit
Credit Facility est. December 2018 $10,000 available
December 2018 $1,000 accessed
All numbers presented are in the 1,000s* Divesting Sable Polymer, Pioneer Products
23©2019 Ecoark Holdings Inc., to be renamed Zest Technologies
A Breakthrough AgTech Solution Provider
Public Company
Technology and Innovation Division
Products
Company Information(as of January 10, 2019 market close)
Company
Ecoark Holdings,
to be renamed
Zest Technologies
Zest Labs San Jose, CA
Ticker ZEST
Exchange OTCQX
Share price $0.80
Shares Outstanding 52.0M
Market Cap $41.6M
©2019 Ecoark Holdings Inc., To be renamed Zest Technologies | Confidential 24
Freshness Management Solutions
www.zestlabs.com
Investor Relations - ICR Inc.
646-277-1254
Customer Inquiries - Zest Labs
408-200-6500
Thank you©2019 Ecoark Holdings Inc., to be renamed Zest Technologies