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Better welfare. More productivity.

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Page 1: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Better welfare.More productivity.

Page 2: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Poultry production

Every year, 60 billionbroilers are raised

3 billion never make it

through the process

Broilers consume 250 million tons of feed

> 3 million can be saved

through better digestion

management

Some broilers sufferscratches and are notused for food

Less stress would save 300

million from going to waste

© Faromatics. Confidential and commercial. 2

Page 3: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Our solution

© Faromatics. All rights reserved 3

Page 4: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

© Faromatics. All rights reserved

Autonomous ceiling-suspended robot

Patent pending

Basic functionality

Artificial intelligence

Multiple sensors

Deep learning and big data

Early detection of health problems

Assessment of

Ambient conditions

Health and welfare

Equipment failures

4

Page 5: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Functions in detail

Excrement classification by quality of digestion

and indication of health issues

Recognition of:

Dead and severely compromised animals

Wet spots in the litter

Defective drinkers

Maps of temperature, relative humidity, air speed and CO2

levels covering the whole house

Streaming of video, thermal video and audio

Photographs of animals and facilities at custom intervals

Alerts (email, SMS) for any user-defined, abnormal condition

RELATIVE HUMIDITY

AIR SPEED

CO2

© Faromatics. All rights reserved 5

Page 6: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Price

Producers

ChickenBoy – installation exclusive 9,995€

99€ monthly

99€ monthly

Access to cloud, service and

maintenance

Vets and integrators

Access to cloud per building

© Faromatics. All rights reserved 6

Page 7: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Welfare makes money

© Faromatics. All rights reserved

ROI of 9-14 months through

– better digestion management

– early disease detection

– reduced mortality

– fine tuning of climate control

– reduction of bruises

Labour 5,760 €

Health cost2,400 €

Mortality1,125 €

Productivity3,100 €

Energy 870 €

Meat quality3,360 €

ANNUAL SAVINGS PER HOUSE

68,000€ extra profit over 5

years

7

Page 8: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

What others are doing

© Faromatics. Confidential and commercial.

Purpose Welfare + Productivity Decontamination Herd movement

Type Hanging Ground-based Ground-based

USP KPIs, extensible Disinfection, aeration Stray eggs, lameness

Application Broiler Broiler Parent stocks

Unit price 9,995€ 45-60,000€ 7,000€

CHICKEN

BOY

OCTOPUS SPOUTNIC

8

Page 9: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Things we are (also) proud of…

© Faromatics. All rights reserved 9

Page 10: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

We are Faromatics

Vision

© Faromatics. All rights reserved

Limited company, founded 2016

Headquartered in Vilanova i la Geltrú, Spain

5 founders + 6.5 staff

Making livestock farming more acceptable and more practicalthrough precision methods

Mission

Smart robotics for intensivepoultry farms

FARM

ROBOTICS

AND

AUTOMATIO

N

10

Page 11: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

World population

– Broilers, layers, turkeys and pigs:

1.3m animal houses

– 1.3% annual growth over next

decade (OECD, FAO)

11

Market and sales

TAM:

– 9bn€

– Total savings for farmers: 50bn€

Route to market:

– Major integrators – top 20 hold 88% of

market; in Spain alone 6,000 houses

– Direct sales to farmers, vets and

consultants© Faromatics. All rights reserved

-

500

1,000

1,500

2,000

2,500

-

5

10

15

20

25

30

35

40

2016 2017 2018 2019 2020 2021 2022 2023

MIL

LIO

N €

EU sales started

CI, BR, US sales

SAM:

– 17m€ in 2019 – 3.7bn€ in 2023

Page 12: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

ROUND FOUNDERS BA INVESTOR PRE-MONEY % FOUNDERS

- 07/16 20,000 100%

1 05/17 120,000 249,975 1,500,000 87%

2 05/18 55,000 200,007 2,500,000 80%

3 01/19 600,000 3,000,000 66%

SUM 175,000 449,982

12

Funding rounds

PURPOSE AMOUNT

R&D NEW AND BETTER FUNCTIONALITY 470k

SALES AND AFTERSALES TEAM 130k

© Faromatics. All rights reserved

Page 13: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,
Page 14: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

© Faromatics. All rights reserved

Dr. Heiner Lehr CEO

We are Faromatics

MSc Johan van den Bossche

Robotics Advisor

MSc Maurice MergeaySales and Marketing Advisor

MBA Daniel RosésSales and Marketing Advisor

Prof Dr. Dr. h.c.Jörg Hartung

Livestock Advisor

14

Page 15: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

World population

– Broilers, layers, turkeys and pigs:

1.3m animal houses

– 1.3% annual growth over next

decade (OECD, FAO) 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2000 2010 2013 2018

WORLD LAYER PRODUCTION, SOURCE: INT. EGG COMMISSION

15

Market size livestock robots

Robot fleet

– Observation (10-15k€ per robot)

– Pick-up, disinfection (7-10k€)

– Extension modules: 1 per robot on

average

– Services: 12%

Total Available Market:

– 9bn€

– Total savings for farmers: 50bn€

Serviceable Addressable Market:

– 17m€ in 2019 – 3.7bn€ in 2023

© Faromatics. All rights reserved

Route to market:

– Major integrators – top 20 hold 88%

of market; in Spain alone 6,000 houses

– Direct sales to farmers, vets and

consultants

Page 16: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

Major integrators

– Top 20 hold 88% of market

– In Spain alone 6,000 houses

16

Route to market

Direct sales

– Farmers, vets and consultants

© Faromatics. All rights reserved

Page 17: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

2018/19 Excrement analysis

Dead birdsDefective drinkers

Litter quality

2019/20 Removal dead birds

NutriBoyExtension modules

Litter moisture

2020/21 Adaptation turkeys

Stress measurement

Illness detection

Weighing with video

2021/22 Adaptationlayers

Recovery stray eggs

Intelligent climate mgmt

Behaviour detection

2022/23 Adaptation pigs

Adaptation parent generation

Intelligent water mgmt

Intelligent feed mgmt

17

Innovation pipeline

© Faromatics. All rights reserved

Page 18: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

2019

ChickenBoy

2020

NutriBoy

Shepard

2021

TurkeyBoy

2022

HenBoy

2023

PigBoy

StockBoy

18© Faromatics. All rights reserved

Product pipeline

Page 19: Better welfare. More productivity. · –1.3% annual growth over next decade (OECD, FAO) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2000 2010 2013 2018 WORLD LAYER PRODUCTION,

3 7 7 16

31

71

114

206

-

50

100

150

200

250

2016 2017 2018 2019 2020 2021 2022 2023

-5

0

5

10

15

20

25

30

35

40

2016 2017 2018 2019 2020 2021 2022 2023

Costs Sales EBITDA

19

Team in 2023

Team development Profitability

MIL

LIO

N €

Administration14%

Engineering

56%

Sales+Mark

9%

After sales18%

Other3%

Team and profitability

© Faromatics. All rights reserved