Plant Health Care : 2021 Annual Report for Plant Health Care

OVERVIEW

• Plant Health Care is a leading provider of biological products, helping farmers to feed the world sustainably.
• The market for biological products is growing at 12% per annum and is projected to be a $19 billion market by 2026.
• Plant Health Care's core patented products act as "vaccines for plants", making plants healthier, better able to resist disease and stress, thereby improving crop yield and quality.
• Sales of the Group's Harpin product increased by 55% in 2021, as market shares grew in core markets; the Commercial business is profitable and cash generative.
• The Company has invested more than $25 million in PREtec, a powerful new platform technology, since 2012.
• PREtec products are targeting markets worth more than $5 billion around the world.
• The first PREtec product Saori™, was launched in Brazil in 2021, through our partner Nutrien, generating a very positive response from growers.

• Learn more in our business model on page 6

FINANCIAL HIGHLIGHTS

• Learn more in our financial summary on page 18

IN THIS REPORT

STRATEGIC REPORT

1. Overview
2. 2021 in review

1. At a glance

1. Business model and strategy

1. Chairman's statement
2. Chief Executive Officer's statement

1. Commercial business

1. New technology

1. Science

1. Financial summary

1. Key performance indicators ("KPIs")

1. Section 172 statement

1. Sustainability

1. Risks and uncertainties

CORPORATE GOVERNANCE

32 Board of Directors

1. Corporate governance report

1. Audit Committee report

1. Remuneration Committee report

1. Report of the Directors

1. Statement of Directors' responsibilities
2. Corporate governance statement

FINANCIAL STATEMENTS

1. Independent auditor's report

1. Consolidated statement of comprehensive income
2. Consolidated statement of financial position
3. Consolidated statement of changes in equity
4. Consolidated statement of cash flows
5. Notes forming part of the Group financial statements

1. Company statement of financial position
2. Company statement of changes in equity
3. Notes forming part of the Company financial statements

1. Directors and advisers

• Stay up to date on our website at planthealthcare.com

NORTH AMERICA

CORN

• Harpin αβ is sold into corn through the second largest distributor in the USA. Farmers apply Harpin αβ to the seed prior to planting; the crop comes up stronger and taller and better able to resist stress such as drought. Higher yields result. Sales of Harpin αβ increased 29%, reaching 841,000 acres in 2021. In-market sales into the Corn market since 2019 have grown at 55% Compound Annual Growth Rate ("CAGR").

FRUITS AND VEGETABLES

• Harpin αβ is also sold into the specialty market through our partner Wilbur-Ellis. Sales of Harpin αβ increased 142% to 157,000 ounces in 2021 due to increased sales into the California almond and grape markets. In-market sales into the fruits and vegetable markets since 2019 have grown at 116% CAGR.

MEXICO

• Plant Health Care Mexico sells a range of sustainable products to farmers in Mexico. Harpin αβ represented 23% of sales in 2021, with third-party products making up the remainder. Plant Health
  Care Mexico employs a staff of 16, including sales and technical specialists in the field, selling to retailers throughout the country.
• Sales in Mexico were held back in 2021 due to decreased domestic demand for fruits and vegetables and reduced plantings in Baja California due to adverse weather conditions.

SOUTH AMERICA

• Harpin αβ is sold as H2Copla into sugar cane in Brazil, through Coplacana, the largest distributor of inputs for this crop.
  Sales in Brazil sugarcane grew 100% under challenging drought conditions throughout 2021. In-market sales into the sugar cane market since 2019 have grown at 103% CAGR.
• The Group received registration for Harpin αβ in Argentina for use in corn and soybeans in August 2021 with first year sales planned for the 2022 cropping season.
• In September 2021, the Group successfully launched Saori™ in soybeans for Asian soybean rust control through our partner Nutrien.

EMEAA

• In Spain, Harpin αβ is sold as ProAct AA, where sales into fruit and vegetable crops have now reached $1.2 million.
• Sales growth in Spain was driven by Harpin αβ sales into citrus and expansion into the greenhouse market.
• In the UK, Harpin αβ is sold through Headland, a major distributor supplying to the professional turf market. Many leading golf courses and football fields are greener and more resilient to abiotic stress as a result.
• The Group signed an exclusive Harpin αβ distribution agreement with UK market leader Agrii in July 2021.