Innovative agriculture films Adapting sunlight to protected crops

Frederic PEILLERON CEO

2

LIGHT CASCADES® TECHNOLOGY

CASCADE develops Optically Active Additivesfor sunlight wavelength shifting

They sustainably improveyields and quality of protected crops

Company creation in 2012 Financial support from Institutional VC investor>5 M€ 2018-2022 R&D Project supported by French Environment Agency (ADEME)First sales in 2019 : Berry, Melon and Vegetables (double roof) crops

Spinoff of LPRL Research laboratoryFrench Research institute with 30 years of experience in light-matter interactions

Team - 7 persons3 R&D scientists working on Materials (Optics, Polymer chemistry) - Nantes2 R&D scientists working on Agronomy : Collaboration INRA/AGO/IRHS – Angers2 Business Development & Customer Support France/Spain/International

LIGHT CASCADES® Patented Technology

INTRODUCTION TO CASCADE

A COLLABORATIVE APROACH

Experimental Farms & Growers

Research Centers

Film Extruders

Agronomy Materials

Algae

Leading European film extruders : France, Spain, Italy, Belgium

R&D Collaborative 2018-2022 - 5 M€• CASCADE-AGRIPOLYANE-INRA-CNRS• New crops & durability > 2 years

LIGHT CASCADES® Technology - How does it work ? 1/2

CONFIDENTIAL

OVERALL DESCRIPTION – HOW DOES IT WORK ? ► Adapt sunlight to plant needs

« LIGHT CASCADES® » formulations associatedifferent optical effects

Spectrum ConversionSelective FiltersDiffusion, Lightwave guide…

PHOTOSYNTHESIS► Enrich wavelengths fostering photosynthesis

MORPHOGENESIS► Light Spectral balance that can modulate plant growth & development

LIGHT CASCADES® Technology - How does it work ? 2/2

Incident Sunlight spectrum

Film cover doped withLC® technology inside

BLUE & RED gains

Plant photosynthesis & photomorphogenesis

BLUE & RED wavelengths

absorbed for plant photosynthesis

UV & Greenwavelengths absorption

Re-emission inBlue & Red wavelengths

Growth & development

How does it work?

CASCADE MODEL

Tasks : ► Optically active formulations► Adapt to existing industrial processes► Impact on crops► Industrial & Sales Partnerships

Develop optically active formulations for agriculture films

CASCADE Lab. (Nantes, France)

Agronomic trials since 2013- Controlled GH crops (Angers-INRA)- Experimental farms + growers

LIGHT CASCADES® - A GREEN TECHNOLOGY

► Green technology • Efficient use of natural sunlight• Less input & land per produced crop• Can reduce input fertilizers or pesticides• Recyclable

► Adapted to existing farming processes• Does not interfere with pollination

Agriculture Film Market & Targets

CONFIDENTIAL

Large & growing market > 2 Bn € Film, > 1 Bn € MB, 5 to 8 % growth rate

2 segments o 1-year film - 20% o High Tunnels - 80%

Per crop segments o Vegetableso Berrieso Flowers

Expectations of farm growers Extra crop Yield & Quality (Extra value / Ha) More sustainable agriculture

DEVELOPMENT STATUS

CONFIDENTIAL

► Ready for one–season films► Formulations OK for low light conditions

► Proof of concept for Multi-season : Ready at lab scale

► New formulations to adapt to new agro segments

- Tropical climates- Excess light growing crops (summer crops)- …

Market Approach, Business Model, Targets

CONFIDENTIAL

Per Crop/Region Segment Approach : Define use case

3 targets market for “one-year” films► Melons / Watermelons ► Berries (Strawberry/Raspberry/Blueberry)

Winter Med crop - Huelva► Double roof (Cucumber/Tomato/Pepper/zucchini)

Winter Med crop - Almeria

Business Model to Farmers for each targeted segment► Benefits >10 % of crop value ► Cost < 3 % of crop value

► 104 agronomic trials since 2013 with experimentalfarms

► 24 in Spain Murcia/Malaga, Huelva & Almeria

►Many different regions from Northern Europe

to Andalucía

►Many crops tested

AGRONOMIC TRIALS

OVERALL AGRONOMIC BENEFITS

► Overall agronomic benefits

Increased yields From +10% & up to > 25%

Improved fruit quality Higher sugar levels, reduced wastes,improved shelf life…

Earlier harvests Depending on crops

Benefits maximized on winter crops or under poor weather conditions

DLI & CROP TARGET PERIODS

0

10

20

30

40

50

60

DLI

(mol

/m²/

j)

DLIMax. DLI required per day

DLI (Huelva, Spain)0

10

20

30

40

50

60 DLIMax. DLI required per day

DLI (Kenya)

2016 2019

2017 2019

October March

Low DLI

0

10

20

30

40

50

60

2016 2019

DLI (East Malling, UK)

DLI (Daylight Integral)

= Quantity of photons per day, per m²

Priority targets : Crops growing in low DLI periods

BerriesAgronomic Results

16

Marketable yield(g/shoot) 94,0

107,7

0

20

40

60

80

100

120

14/03/2019 24/03/2019 03/04/2019 13/04/2019 23/04/2019 03/05/2019

Date

Reference

CASCADE

BERRY TRIALS 2017-2019 (Huelva, Spain)

Raspberry(Nov. 2018-May 2019, Var. ‘San Rafael’)

Blueberry(Nov. 2018-May 2019, Var. ‘Ventura’ )

Equivalent Fruit quality

3.115

5.026

0

1.000

2.000

3.000

4.000

5.000

6.000

22/03/2019 01/04/2019 11/04/2019 21/04/2019 01/05/2019 11/05/2019 21/05/2019

Date

Reference

CASCADE

+61%

Equivalent Fruit quality

Strawberry(Nov.2018-May.2019, Huelva) +14%

+ Sugar content Extended shell lifeWastes reduction

583,2

665,7

0

100

200

300

400

500

600

700

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Week N°

Reference

CASCADE

+14%

8

9

7

8

8

9

9

10

Reference CASCADE

9,3

10

8,89

9,29,49,69,810

10,2

Reference CASCADE

°Brix8%

6%

0%

2%

4%

6%

8%

10%

Reference CASCADE

-2%

Shelf life (days)

+0,7+1°

Wastes (%)

Marketable yield(g/plant)

Marketable yield(g/plant)

Doble Techo Agronomic Results

18

80

90

74767880828486889092

Refernce Cascade

5.856

6.774

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

20/3 27/3 3/4 10/4 17/4 24/4 1/5 8/5 15/5 22/5

Reference

CASCADE

3.762

4.717

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

23/10 29/10 2/11 7/11 12/11 16/11 21/11 26/11 3/12 10/12 14/12

ReferenceCASCADE

PEPPER, ZUCCHINI, TOMATO “DOBLE TECHO” TRIALS (Almeria)

Pepper Oct 2018-Feb 2019 (Var. ‘Canzion’)

ZucchiniOct 2018-Dec 2018, (Var. ‘Calabonita’)

+ 16 %

+ 12 %

TomatoDec 2018-May 2019, (Var Caniles’)

4,5

5,0

0

1

2

3

4

5

6

23/10 2/11 12/11 20/11 14/12 28/12 10/1 17/1 29/1 19/2

Reference

CASCADE

13/11/2018CASCADE Film Installation

+23 %Marketable yield

(kg/m²) +11 %Marketable yield

(g/m²)+25%

Faster fruit development

14/11/2018CASCADE film

Installation

+40 %

27

32

2426283032

Reference CASCADE

Number of Fruits (/m²)

+16 %

8,1

7,3

6,5

7

7,5

8

8,5

Reference CASCADE

Fruits Development(days)

Marketable yield(g/m²)

Number of Fruits (/m²)

MelonAgronomic Results

20

Melon (France & Spain, 2013-2019)

18 trials since 2013- France & Spain

(Murcia & Malaga)- Local experimental

farms & Producers

MarketableYield gain (%)

YieldSecuring (%)

Fruit quality

7 % to 10%average yield gain.

Earliest Harvest regularly observed

Up to +25%yield gain under

unfavorable weather conditions

• Stable or improved sugar content

• Reduced fruits wastes

CONFIDENTIAL

2019 -Market development►“One-season” film first sales in 2019

> 120 Ha sold – Berries, Vegetables, Melons Objective > 600 Ha in 2020, > 10 000 Ha in 5 years (market 1,5 million Ha)

► 6 leading European film producers as 1st customers France, Spain, Italy, Belgium

► Regions targeted Mediterranean countries priority (winter crops) Interest from Northern Europe winter greenhouse crops

France Brittany, Belgium, UK (tomato…) Interest from America (berries, roses), Africa (roses)

► Multi-year launch highly expected by market

CASCADE needs 2020-2021

Fundraising

Use of funds

€ 1.0 M – 2020 € 1.0 M – 2021 (Global deployment)

Finalize durability for multi-year greenhouse films and pursue agro trials Develop industrialization and marketing Speed up international deployment Europe/Africa Reinforce business development team

Company need

Build up business development & marketing team Prepare Industrial scale up