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Q2 Report And Financial Results 2025
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A climate-smart innovation to restore and improve soil, increase water use efficiency,and strengthen economic resilience for our clients. About Desert Control Agriculture Trees & Forest Golf, Turf & Landscaping Technology Soil enhancement solutions to reduce water and input usage while increasing plant health for agriculture, forest management, golf courses, turf and landscaping. Solution Areas Q2 Report And Financial Results 20252
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HOW IT’S DELIVERED 3 Assess & Analyze Design & Prescribe01 Gain understanding of client needs and location-specific soil and water conditions. Desert Control collects soil samples and implements sensors to assess and monitor soil health and water use. The optimal soil improvement solution is prescribed with a tailored LNC formulation. LNC is Produced On Site With Tailored Formulation02 Desert Control brings LNC production units (as seen above) to the client location. The unit connects to a local water supply, and the specific formulation of natural materials (clay, minerals, etc.) is loaded into the unit. The unit processes the raw materials into a highly charged liquid nearly as thin as water. Apply Easily Through Irrigation Systems (one-time application)03 The liquid has sub -micron particles and can safely be applied through irrigation systems. The liquid migrates into the ground, forming a soil structure in the root zone that retains water and nutrients like a sponge. One treatment can last for 5 years. Q2 Report And Financial Results 2025
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Unlocking Opportunity In A $100b+ Water & Soil Tech Market Accelerate the licensed operator model in the Middle East and continue direct sales in the U.S. to grow adoption and prove the technology on a larger scale MENA & U.S. STAGE 01 Continue scale-up and scale-out expansion to sandy soil regions in Australia Australia STAGE 02 Global expansion to all regions experiencing desertification, drought, and water shortage Europe, Africa, Asia/India, RoW STAGE 03 >110 countries are exposed to desertification, land degradation, droughts and water scarcity Q2 Report And Financial Results 20254
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United States Middle-East Focus Areas Commercial Strategy Revenue streams California Arizona Direct sales Pay on Delivery Pay-as-you save («PAYS») United Arab Emirates Saudi Arabia Licensing partners Licensing revenue Hardware sales FOCUSED COMMERCIAL STRATEGY WITH MULTIPLE REVENUE STREAMS Q2 Report And Financial Results 20255
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ESTABLISHED PRESENCE IN HIGHLY ATTRACTIVE MARKETS Q2 Report And Financial Results 20256 211 150 75 38 26 20 11 North Africa Middle East Southern Europe USA Mexico ChileAustralia Major addressable markets – Sandy soil agriculture (USD billions) Established pressence Desert Control has an established presence in USA and Middle East, two of the largest addressable markets in the world Source: Westwater Research’s numbers for US agriculture, National Agriculture statistics service, Independent market research firm, Internal calculations
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AGRICULTURAL SUBSEGMENTS Q2 Report And Financial Results 20257 PERMANENT CROPS01 VINEYARD02 Tree nuts Orchards FIELD CROPS03 High value (vegetables, berries, etc.) Broad crop (alfalfa, corn, cotton, peanuts, etc.)
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MAJOR TURF SEGMENTS 8 Parks Q2 Report And Financial Results 2025 Playing Fields Golf Courses
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Market size (>80% sand in soil) Q2 Report And Financial Results 20259 40 9 California Arizona T exas 474 Market size (>60% sand in soil) ( A g r i c u l t u r e s e g m e n t ( e x c l . B r o a d C r o p ) , $ m i l l i o n ) Westwater Research’s numbers for US agriculture, Internal calculations for turf, National Agriculture statistics service Significant market potential of USD >500m within core Agriculture segments (>80% sand in soil) Market potential ~10x larger if also considering areas with 60-80% sand content in soil (T otal market potential of USD 5.4 billion) Core target markets include permanent crops (tree nuts and orchards), vineyards and high value field crop California Arizona T exas 5,014 194 199 60-80% 80-100% ~10x SIGNIFICANT MARKET POTENTIAL WITHIN SERVICABLE ADDRESSABLE MARKET IN TIER 1 TARGET STATES IN THE US
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8 36% 34% T reenut 9% Orchard Vineyard High value 20% W estwaterResearch’snumbers forUS agriculture,Internalcalculationsforturf ,NationalAgriculturestatisticsservice USD 5.0 bn 6% T reenut 16% Orchard 1% Vineyard 77% High value Orchard Vineyard 79% High value USD 199 m T reenut 5% 16% PRIORITY 1 STATES: SUBSEGMENTS (excl. broad crop) ArizonaCalifornia Texas M a r k e t s i z e ( 6 0 - 1 0 0 % s a n d i n s o i l ( e x c l . b o a r d c r o p ) , $ b i l l i o n ) USD 195 m Q2 Report And Financial Results 2025
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9 W estwaterResearch’snumbers forUS agriculture,Internalcalculationsforturf ,NationalAgriculturestatisticsservice PRIORITY 2 STATES: SUBSEGMENTS (excl. broad crop) M a r k e t s i z e ( 6 0 - 1 0 0 % s a n d i n s o i l ( e x c l . b o a r d c r o p ) , $ b i l l i o n ) NevadaFlorida South CarolinaNorth Carolina 20% 1% T reenut 79% Orchard 0%Vineyard High value 1% T reenut Orchard 1% Vineyard 98% High value 24% 75% 1% T reenut Orchard Vineyard High value 100% High value USD 89 m USD 2.4 bn USD 510 m USD 43 m Q2 Report And Financial Results 2025
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COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers Q2 2025 Agenda
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UNITED STATES MIDDLE EAST INNOVATION Urban Greening & Commercial Milestone • First commercial project for Saudi Desert Control with treatment of 3.7 Ha of turf for Atlas Turf Arabia • Completion of two residential development projects by Soyl in Dubai and additional golf pilot • Further pilots in Saudi for tree nursery and in new suburb Misk City • Continued push for large -scale greening projects in the region • First public tender based on PAYS model Technology Progress and Research Findings • Improving microbial activity under extreme soil conditions • Yield improvements seen for broccoli & cantaloupe at Maricopa Agricultural Center • Yield and NUE trials in progress for date palms & citrus • Support on operational challenges in the US • Next-gen production system (>90,000k L/h) in 2 nd half 2025 Q2 2025 & YTD 2025 Highlights Applications • Woodland Hills Country Club • Oasis Date 9000 Trees • California State University, Fullerton Playing Fields • Tempe Market Place • Mesa del Sol Golf Course • Silverwood (Hesperia, CA)
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Permanent Crop Agriculture • Anthony Vineyards – LNC applied via drip irrigation system. • Oasis Date – Commercial-scale yield improvement trial • California Almonds – First trial scheduled for Q3. Expanding LNC Applications In the US Q2 Report And Financial Results 202514 • Woodland Hills Country Club – First Full Course application • Mesa del Sol Golf Course – Successful Phase 2 deployment. Golf Courses Ornamental Landscapes • Tempe Marketplace – LNC via customer irrigation system. • California State University, Fullerton – LNC application in landscape irrigation. New Community Development • Silverwood (Hesperia, CA) – Q3 trial; future home to 50,000 residents, >$4M/year irrigation water demand.
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Oasis Date – Commercial-Scale Yield Trial • Evaluate yield and Nutrient Use Efficiency improvements for commercial date palm orchard in Yuma • Further demonstration of LNC’s value beyond water savings • Comparison of two different LNC treatment schedules • Validation and publication in collaboration with University of Arizona About the Project: The world’s first and only Regenerative Organic Certified® date farm! Q2 Report And Financial Results 202515
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First Commercial Project – Atlas Turf Arabia • Saudi Desert Control (SDC) completed its first revenue-generating application at Atlas T urf Arabia’s turf farm outside Riyadh. Key Highlights • 3.7-hectare application at the region’s first internationally licensed golf and sports turf farm. • The application was the result of the strong water retention and turf health indicators observed during stage-1 pilot. Strategic Impact • Marks Saudi Desert Control’s commercial entry into the market. • T ogether with successful tree nursery pilots and strategic landscaping pilots like Misk City, strongly positions SDC and LNC for the large-scale sustainability and greening initiatives supporting the Kingdom’s Vision 2030. Saudi Desert Control – First Commercial Project Q2 Report And Financial Results 202516
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Residential Communities • Completed final part of the Dubai Hills new development project that was initiated last year • Performed a smaller project at the Greenview residential development in Dubai South • Both communities are managed by Emaar Properties, the leading real estate developer in Dubai Other Landscaping Developments • Following the successful stage-1 pilot initiated late 2024 at T rump International Golf Club, a stage 2 pilot was completed in Q2 • Initiated VIP residence landscaping pilot in the Abu Dhabi islands, highlighting the leadership shown in the emirate on sustainability initiatives • Earlier awarded new public park project within Masdar City is expected to be ready for LNC treatment mid Q3 • Supporting Soyl’s position as a preferred partner for urban greening in sustainability-focused developments SOYL – Urban Landscaping Projects Q2 Report And Financial Results 202517
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COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers Q2 2025 Agenda
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FINANCIAL REVIEW Q2 Report And Financial Results 202519
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Consolidated Statement Of Comprehensive Income Q2 Report And Financial Results 202520
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Consolidated Statement Of Financial Position Q2 Report And Financial Results 202521
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Consolidated Statement of Cash Flows Q2 Report And Financial Results 202522
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DSRT Shareholders Q2 Report And Financial Results 202523
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COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers Q2 2025 Agenda
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Inflection Point broadens commercial expansion Scalable expansion Additional Locations and Licensors in United States, Middle East, and Europe Balanced capital strategy High-capacity production units allow for efficient capital allocation Strong market drivers Water costs, resource scarcity and regulatory shifts accelerate demand High-growth potential 10x revenue expansion targeted from ’25 to ’27 with scalable profitability Inflection point Recent technological breakthroughs drive the transition from pilots to accelerating commercialization Q2 Report And Financial Results 202525
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Key milestones for 2025/2026 • Better execution in all areas, particularly in California • Construction and delivery of new production units • 8 golf course pilots • 7 agriculture pilots California • 2 full golf course applications • Initiation of large-scale contract in the Middle East • Continuation of research confirming additional use cases and yield increase within agriculture segment Milestones expected over The next 18 months Estimated revenue 2026 ~25% ~25% ~50% Hardware sales Licensing revenue Direct sales US / project deliveries >3m USD Revenue defined as revenue recognized for the fiscal year + further revenue expected to be generated through PAYS contracts over the remaining contracting period Q2 Report And Financial Results 202526
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U.S. Golf & Landscaping Expanding LNC’s footprint in golf and turf management, building on the early success of the pay-as-you-save model to drive recurring revenue and expand adoption. U.S. Agriculture Scaling deployments in high-value permanent crops, leveraging industry partnerships and strong reference projects to drive adoption. Middle East Growing licensing revenues and deployment volumes in the Middle East following the transition of pilot projects into larger-scale commercial implementations. Technology Executing the commercial launch of the next-generation production system, unlocking significant operational efficiencies, cost reductions, and the ability to meet increasing demand while opening new revenue opportunities from sales of production units and hardware to partners. OUTLOOK STRATEGIC PRIORITIES FOR 2025/2026 Q2 Report And Financial Results 202527
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COMPANY UPDATE PRESENTATION Highlights Financials Outlook Questions and answers Q2 2025 Agenda
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Cautionary Note Q2 Report And Financial Results 202529
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Q2 Report And Financial Results Presentation 2025 Thank you!