Aerofarms: Innovative Strategies for Future Growth

Aerofarms, a pioneering leader in sustainable agriculture, is strategically positioned to expand and enhance its market presence. With a focus on customer acquisition, innovation, and strategic partnerships, Aerofarms aims to solidify its unique value proposition and embrace opportunities for growth. By tapping into the plant-based urbanite segment and leveraging its strengths in superior quality, health-friendly products, and sustainability, Aerofarms is poised for continued success in the evolving agricultural landscape.

• Aerofarms
• Sustainable agriculture
• Innovation
• Market expansion
• Plant-based products

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1. Lazaridis Consulting Group The Future of Business

2. Lazaridis Consulting Group The Birth of Civilization

3. Lazaridis Consulting Group The Future of Agriculture: AeroFarms

4. Lazaridis Consulting Group Viva Las Vegas

5. ENTERING NEW MARKETS

6. THE FUTURE OF AEROFARMS IS IN REACH Increase customer base & Attract new investors Marketing & Strategic Partnerships 1 Protect present success & Prepare for growth 2 Talent acquisition 3 Become more energy-efficient & Expand variety of crops: berries Invest in R &D Expand into Nevada with one large-production farm.

7. AEROFARMS: WHERE TO FROM HERE? CONSULTANT TEAM: TONY DAO, AUDREY GOTTLIEB, SHAHIN SAFAKHOO, JUDY TRAN PRESENTING TO AEROFARMS LLC Leadership team David Rosenberg (CEO) Ed Harwood Marc Oshima (Chief Science Officer) (Chief Marketing Officer)

8. AGENDA I. Background II. Analysis III. Problem IV. Alternatives V. Recommendation VI. Implementation Financial Impacts Contingencies VII. Wrap-Up

9. WHO IS YOUR TARGET SEGMENT? The Plant-Based Urbanites Consumption of vegan / plant- based products is on the rise. Zack Valerie Environmentally- concerned Going on 9th bachelor party to Vegas Health-concerned Loves Cirque du Soleil shows in Vegas Consumption of organic products is on the rise. Travel is on the rise. Consumer trends will increase your potential customer base. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

10. AEROFARMS UNIQUE VALUE PROPOSITION Superior quality: vitamins Vertically Farmed Products Health-friendly: No pesticides Sustainability AeroFarms is a FIRST MOVER in an attractive industry, with opportunity to expand its customer base. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

11. WORKING FROM AEROFARMS STRENGTHS (INTERNAL ANALYSIS) KEY STRENGTHS First mover Aeroponics technology SUPPORTING CAPABILITIES Data analytics R & D Process immune to climate change 280 SOPs Talent EXPERTISE AeroFarms has progressed along the learning curve, making it a successful first mover. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

12. THE CURRENT LANDSCAPE (EXTERNAL ANALYSIS) Attractive Industry >> High capital costs >> Specialized expertise Direct Competition LOW Emerging Competition Commercial farms: Aquaponics Hydroponics Opportunity: Educate to capture / broaden target segment. Substitutes Organic food products Low competition makes vertical farming an attractive industry. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

13. KEY ISSUES THAT ARE BEING FACED BY AEROFARMS Capital-intensive industry High energy consumption Talent acquisition Maintain profitability To attract more investors To address the impending global food crisis. The real problem Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

14. Lazaridis Consulting Group Alternatives

15. WHICH OPTIONS ARE AVAILABLE TO AEROFARMS? Implementation Costs Profitability Expansion to New Markets Expand to additional N. American urban regions International expansion Expand into less urban regions Acquire an LED company Educate US consumers & businesses Expand into Nevada Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

16. EVALUATING EACH OF YOUR OPTIONS PROS CONS Expand to additional N. American urban regions Large (concentrated) populations Expensive (property and development) International expansion Global reach (management goal) High competition: organic products Expand into less urban regions Cheaper properties Demand is uncertain (Consumer preferences) Acquire an LED company Vertical integration (Capture more of the value chain) Opportunity to capture more of your existing local markets. Expensive LED is not a core competency Costs of marketing Educate US consumers and businesses Expand into Nevada Fit with target demographic Population Costs of expansion Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

17. Lazaridis Consulting Group Our Recommendation to Aerofarms

18. WHERE TO FROM HERE? Build customer base. Marketing 2020 - Ongoing R & D Enhance energy efficiency. 2020 - 2025 New farm Move closer to global reach. Operational as of 2021 Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

19. Lazaridis Consulting Group Implementation

20. THE FUTURE OF AEROFARMS IS IN REACH Increase customer base & Attract new investors Marketing & Strategic Partnerships 1 Protect present success & Prepare for growth 2 Talent acquisition 3 Become more energy-efficient & Expand variety of crops: berries Invest in R &D Expand into Nevada with one large-production farm. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

21. MARKETING AND BUILD STRATEGIC RELATIONSHIPS WHAT? Increase marketing and education of consumers Build strategic relationships with potential businesses and investors WHY? Lack of consumer knowledge of product and benefits Set up relationships for expansion in Nevada Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

22. KEY COMPONENTS OF YOUR INTEGRATED MARKETING STRATEGY Out-of- Home Advertising in Vegas airport Personal Selling Samples at food & other festivals Labelling Highlights the: vitamin count, zero pesticide, locally sourced Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

23. THE IMPACT OF NEW MARKETING Every month Of these salads come from Aerofarms 500 K of Visitors to Nevada Salads are consumed 50 % MILLIONS This amounts to $ 6 M of revenue / year from salad alone. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

24. MARKETING AND BUILD STRATEGIC RELATIONSHIPS HOW? Develop labels on all products that highlight benefits of Dream Greens E.g., vitamins, unique flavor Offer samples at retailers/supermarkets and food events (e.g., Vegan Festival) Advertise on airports and airplanes (e.g., magazines, in- flight screen) Develop additional relationships with and sell to restaurants in tourist areas (e.g., hotels) WHO? Marc Oshima, Chief Marketing Officer (CMO) KPIs: Increase in sales, increase in strategic relationships Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

25. ENHANCE TALENT ACQUISITION EFFORTS WHAT? Develop relationships with US universities that offer vertical farming courses Develop a standardized 1-year training program for post-graduate students WHY? Create a talent pipeline of farmers Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

26. ENHANCE TALENT ACQUISITION EFFORTS HOW? WHO? Develop a rotational program that focuses on education of SOP s, unique technology Human Resources Manager Develop relationships with universities that offer vertical farming 4 students per school (U of Arizona, U of California, Davis, U of Michigan) Provide $3000 bonus for students who remain as employees Conduct monthly employee satisfaction and feedback surveys Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

27. RESEARCH & DEVELOPMENT STRATEGY WHAT? Expand beyond leafy greens to fruits (e.g., berries) Focus on increasing LED efficiency WHY? Higher demand for fruits Weakness: more carbon emissions than traditional farming Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

28. RESEARCH & DEVELOPMENT STRATEGY HOW? WHO? Devote 25% of Newark facility to R&D of additional products (expansion into crops like berries) Ed Harwood, Chief Science Officer Human Resources Manager Work with Dell Inc. to explore LED efficiency (e.g., mirrors, light filtering, light fixtures and positioning) Hire 10 R&D staff (5 for crop development, 5 for energy efficiency) Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

29. EXPANSION INTO NEVADA WHAT? Expansion of 10-acre vertical farm to Nevada WHY? Target high tourist locations (e.g., Los Angeles and Las Vegas) Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

30. EXPANSION INTO NEVADA HOW? WHO? Search for factory between Los Angeles and Las Vegas through realtor Business Development Director Focus on improving building to meet environmental and sustainable best practices Negotiate legal contracts Target staff recruitment at U of Arizona, U of California, Davis (e.g., job boards, career fairs) Human Resources Manager Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

31. Lazaridis Consulting Group Financial Impacts

32. Lazaridis Consulting Group Contingencies

33. COSTS Implementation Costs (Thousands) Year Total Costs Marketing Costs Retaurant Relationship Development 2019 $0 $22,450 2020 2021 2022 2023 2024 2025 2026 2027 $17,693 $750 $21,393 $1,250 $14,126 $1,250 $14,258 $1,250 $14,403 $1,250 $14,562 $1,250 $14,738 $1,250 $500 $50 $50 $50 $50 $50 $50 $50 $50 Talent Acquisition Cost Employee Satisfaction Survey $490 $10 $490 $3 $490 $3 $490 $3 $490 $3 $490 $3 $490 $3 $490 $3 R&D Staff Partnership With Dell Cost Savings from Dell Partnership $1,000 $3,000 $1,000 $3,000 $1,000 $3,000 $1,000 $1,000 $1,000 $1,000 $1,000 -$4,388 -$4,388 -$4,388 -$4,388 -$4,388 Nevada Expansion Logistics to markets in vacinity $17,400 $12,400 $14,400 $1,200 $14,400 $1,320 $14,400 $1,452 $14,400 $1,597 $14,400 $1,757 $14,400 $1,933 Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

34. REVENUE OUTLOOK Revenue $350,000 $300,000 $250,000 175% (Thousands) $200,000 $150,000 $100,000 Revenue Increase $50,000 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total Revenue Revenue Without Implementation Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

35. REVENUE OUTLOOK Implementation Revenue $140,000 $120,000 Marketing Nevada Expansion $100,000 Nevada Vacinity $80,000 (thousands) R&D $60,000 $40,000 $20,000 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

36. EBITDA EBITDA $250,000 $200,000 46x $150,000 (Thousands) $100,000 $50,000 EBITDA Increase $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 -$50,000 EBITDA $ With Implementation EBITDA $ Without Implementation Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

37. PLANNING AGAINST POTENTIAL RISKS LIKELIHOOD MITIGATION PLAN RISK Customer acceptance in new markets Marketing, marketing, marketing! Focus is primarily on improving efficiency. Small gains will have major impacts. R & D does not achieve results in desired time frame Competition & organic substitute products are the customer preference. Education will be the focus of your marketing efforts. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

38. Lazaridis Consulting Group AeroFarms will create the Future of Business

39. Lazaridis Consulting Group Appendix

40. CRITERIA FOR NEW MARKETS Consumer Population Domestic market Natural disasters Within US to protect against trade relations Size of population Droughts Consumer interests / preferences Wildfires Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

41. ADDITIONAL IMPLEMENTATION CONCEPTS Nevada plant has a method of fully harnessing the sun! Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

42. ADDITIONAL IMPLEMENTATION CONCEPTS Partnerships with cruise ships Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up

43. ADDITIONAL IMPLEMENTATION CONCEPTS Partner with FinTech companies to continue to advance data / analytics capabilities. Background Analysis Problem Alternatives Recommendation Implementation Financial Impacts Contingencies Wrap-Up