Aerofarms Vertical Farming: The Future of Farming at Nyenrode Business University

Aerofarms is revolutionizing farming with vertical farming technologies to address environmental challenges and food security issues. Explore the company's strategies and solutions in a highly challenging operating environment, focusing on sustainability and innovation.

• Vertical Farming
• Aerofarms
• Sustainable Agriculture
• Environmental Solutions

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1. AEROFARMS VERTICAL FARMING: THE FUTURE OF FARMING NYENRODE BUSINESS UNIVERSITY KOEN BOUWMEESTER | YANNICK FRYTERS | GOVIND MALLURWAR | JESPER MENTINK

2. Political Social Environmental Trade war Growing population Health & Sustainable Urbanization Climate change Arable land reduction Economical Legal FDI Restrictions UFFS Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

3. Company specific Key Issues Data analytics Efficiency Carbon emissions Consumer awareness Crop variety Talent Capital intensive High operational costs Profitability Lower product to market cycle & transportation costs Awarded Low use of resources LED Lights Fertilizers Leafy vegetables Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

4. How can Aerofarm keep saving the environment and solve the world s food problem, taking in consideration the highly challenging environment they currently operate in? Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

5. Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

6. Pros Cons Farm Yourself with Aerofarm Expansion of product portfolio Small farms Awareness Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

7. Pros Cons Animal Chip Expansion of product portfolio Animal health and welfare Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

8. Pros Cons DataFarm Sensors Data analytics Advice Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

9. DataFarm Farm Yourself with Aerofarm Expanding product portfolio: Animal Chip Pros Cons Pros Cons Pros Cons Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

10. Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

11. Final solution: Data Farm What? Value proposition Who? Target customer Why? How? Financial rationale Partners Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

12. Final solution: Data Farm Target customers Farmers Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

13. Final solution: Data Farm Value Proposition? Better yield Optimum use of resources (such as water and fertilizers) More profit Preventive approach (disease alerts) Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

14. Final solution: Data Farm Partners Tie up with tech company for H/W (sensors, drones, servers, cloud) Tie up with universities (agricultural and tech) Collaboration with government agricultural association Tie up with tech company for S/W Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

15. Final solution: Data Farm Financial rationale NPV of 30 million USD Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

16. Minimum viable product Feasibility study (market research) 1 month 1 month Build business case Funds 1 month 3 months Build final product Search partners 2 months 3 months Go to market strategy Negotiate with partners 1 months 2 months Generate sales leads Find potential pilot site 1 month Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

17. Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

18. FINANCIAL MODEL Service package with monthly subscription Investments needed: Development of sensors (5 million) Data Analytics Team (start 3-4 persons) Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

19. Cash Flow $2,000,000.00 $1,000,000.00 $- Year 5 perpetuity of 15 million 1 2 3 4 5 $(1,000,000.00) $(2,000,000.00) $(3,000,000.00) $(4,000,000.00) $(5,000,000.00) $(6,000,000.00) Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

20. Risks Mitigations Quality of technology Partnership with (Dell) Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

21. Solar Panels Sub-urban areas Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

22. Thank you! Problem statement Risks & mitigations Analysis Alternatives Final solution Implementation Financials

23. Cost of capital 0.08 Year 0 1 2 3 4 5 (Perpetuity) Sales $ - $ 400,000.00 $ 1,000,000.00 $ 2,500,000.00 $ 6,250,000.00 $ 195,312,500.00 COGS $ - $ 70,000.00 $ 650,000.00 $ 1,625,000.00 $ 4,062,500.00 $ 126,953,125.00 Gross Profit $ - - $ 140,000.00 $ 350,000.00 $ 875,000.00 $ 2,187,500.00 $ 68,359,375.00 (%) 35% 35% 35% 35% 35% Operational Expenses $ 250,000.00 $ 625,000.00 $ 800,000.00 $ 800,000.00 $ 12,304,687.50 Capex $ 5,000,000.00 $ 100,000.00 $ 160,000.00 $ 256,000.00 $ 409,600.00 $ 806,092.80 Cash Flow $ (5,000,000.00) - $ (210,000.00) $ (435,000.00) $ (181,000.00) $ 977,900.00 $ 55,248,594.70 (%) -53% -44% -7% 16% 28% Present Value $ (5,000,000.00) $ (194,444.44) $ (372,942.39) $ (143,683.64) $ 718,785.69 $ 37,601,265.21 NPV $ 32,608,980.44 Cost of goods sold Sensors Data cloud Installation Operational Expenses Wages

24. Cost of goods sold Sensors Data cloud Installation Operational Expenses Wages