Breakthrough Freshness Management - Zest Labs · Food Freshness & Safety are based on grower...

©2019 Ecoark Holdings Inc., to be renamed Zest Technologies

OTCQX: ZEST

Breakthrough Freshness Management

to be renamed

1©2019 Ecoark Holdings Inc., to be renamed Zest Technologies

Safe Harbor Statement

This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any security of Ecoark Holdings, Inc. and/or its subsidiaries(“Ecoark” or the “Company”). This Presentation has been prepared to assist interested parties in making their own evaluation of Ecoark and does notcontain all of the information that prospective investors, purchasers or parties may need or desire. Nothing contained herein shall be construed asinvestment, financial, legal or tax advice. Interested parties should conduct their own investigation and analysis of Ecoark, by reviewing its publicfilings with the Securities and Exchange Commission (the “SEC”) and other publicly-available information along with the data set forth in thisPresentation.

This Presentation contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements”for purposes of federal and state securities laws, including, but not limited to: statements concerning the business and possible or assumed futureresults of operations of the Company and its subsidiaries; any projections of earnings, revenues or other financial items; any statements of the plans,strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; anystatements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any ofthe foregoing. Forward-looking statements may include, but are not limited to, statements that include the words “may,” “will,” “estimate,”“intend,” “believe,” “expect,” “plan,” “anticipate” and other similar words.

Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: access to growthcapital on favorable terms; adverse economic changes affecting markets we serve; competition in our markets and industry segments; theprofitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration ofthe businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our SEC filings. Although we believe theexpectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements aremade, and our future results, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this Presentation to conform these statements to actual results or to changes in our expectations, except asrequired by law.

All third party logos and trademarks appearing in this Presentation are the properties of their respective owners.


Seasoned Leadership TeamBackgrounds Across Technology, Retail, Transportation,

Government and Implementation

Randy May, Chairman, CEO, and Founder

Former Walmart Executive

Peter Mehring, President

Former Apple Executive

John Cahill, Attorney - Former Chief

of Staff for the Governor of New York

Mike Green

Former IBM Executive

Gary Metzger - Former Amco

International Executive

Steven Nelson - Former Vice

President, Controller of Dillard’s, Inc.

Independent Directors

Executive Officers


Food Waste Challenge

Annual fresh food waste in the U.S alone

• 33% post-harvest waste** = $85B

• 50% of waste in retail is pre-consumer

• Zest Fresh reduces pre-consumer waste by >50%• potentially saving >$15B*

* Zest Fresh targets 70% of perishable market

Fixing Food Waste is a Huge Opportunity

©2019 Ecoark Holdings Inc., to be renamed Zest Technologies 3

**UN FAO Food Losses and Food Waste


The Industry is Facing a Perfect Storm

Increasing margin pressures are forcing changes

New low cost competitors in Fresh Food

Dramatic increases in freight costs

Consumer pressure to stock the best produce (FMI 2018)


Preventing Food Waste Is Good Business

Zest Fresh -

Immediately improves product margins

Proven to cut field-to-shelf waste by 50% or more

Provides consistently higher shelf-level quality

- What consumers want



Produce SeafoodDairyMeats & Poultry

What We Do

Without Changing Operations:

1. Improve Fresh Product Margin

2. Proactive Food Safety & Traceability

3. Increase Sustainability Performance


©2019 Ecoark Holdings Inc., To be renamed Zest Technologies | Confidential 7

Lack of Shelf-life Leads to Shrink

• Shelf Life Driven By Harvest Quality &

Temperature Handling

StrawberriesAfter Harvest, 1 Hour at 85o

Reduces 1 Day of Shelf Life


57.5% at Risk


Optimized Grower Processing

Prioritizes Routing & Inventory with “Dynamic Use By Date”

End-to-End Automated Pallet-level Visibility

Zest Fresh Unlocks Consistent Shelf-life


Grower Pack House Logistics Distribution Store


$182B US Addressable Market

(1) NRDC and USDA statistics on pre-consumer waste and markdowns (value shrink)

Zest Fresh Annual Revenue Potential: $750M+ US, $1.5B+ Globally

$260B - Total US Perishable Sales

70% - Zest Fresh Served Market

15% - Field-to-Shelf shrink1

$182B - Zest Target Perishable Sales

$30B - Zest Targeted Waste

$15B Zest Value

x 10% Zest Charge

= $1.5B Revenue

$30B Field-to-Shelf Waste

x 50% Waste Reduced

= $15B Savings

50% US Adoption

= $750M

Value Driven Analysis

182M Pallets

x $10 Zest Charge

= $1.82B Revenue

$182B Addr Market

➗ $1000 Pallet Value

= 182M Pallets

50% US Adoption

= $910M

Volume Driven AnalysisUS Market Facts



A Complete Solution for AgTech

A Grower-Centric Solution that Delivers Value to Suppliers, Retailers & Restaurants▪ Food Freshness & Safety are based on grower execution

▪ Improving shelf life consistency is a grower responsibility

Zest Fresh Integrates Technologies that Deliver on Value▪ Blockchain, IoT, Cloud analytics, machine learning all integrated

▪ Using technology to make it, “easy to do the right thing” every time



More Than Produce

Meat, Poultry, Pork and Seafood Represent

Significant Waste

Same Challenges as in Produce• Variable delivered shelf life

• No proactive product condition monitoring & feedback

Zest Fresh Delivers Value to Protein• Supplier process monitoring & real-time alerts

• Predictive freshness modeling & intelligent routing

• Food safety and True Transparency



Zest Fresh – A Proven Value

Users Love Zest Fresh• More than 2 years of broad use, with strong user endorsements

• Working with leading retailers and producers

Proven Value • Freshness compliance of 30% improved to >85%

(delivered remaining shelf life)

• Reduce retail shrink by >50% (waste & markdowns)

• Growers gain confidence through process visibility

“I’ve been working in the dark all along, and Zest turned on a

light so I can now see freshness. I can never go back to working

in the dark again.”

- Grower Quality Assurance Manager



Automated and reliable product data capture

Grower-centric with real-time operational value

Intelligent routing to ensure delivered freshness

Blockchain security and trust for suppliers to retailers

67 Issued US Patents - >$100M invested to date

Barriers to Entry


Why Zest Fresh is Unique in AgTech

13

14©2019 Ecoark Holdings Inc., to be renamed Zest Technologies©2019 Ecoark Holdings Inc., to be renamed Zest Technologies

Grower Operations VisibilityZest Fresh provides product-level visibility throughout harvest

14


Zest Fresh Delivers Real Value Across the Supply Chain

Intelligent Routing

Best Quality, Reduces Waste Product Delight

Improved Operational Efficiency


Zest Fresh Delivers Blockchain

Turn-key Support for Zest Fresh users

Integration eliminates technical barriers

Sensor driven blockchain transactions – easy & secure

Data privacy and management built-in

B L O C K C H A I N



A Complete, Integrated Solution

Practical, Automated Wireless IoT Sensors

Cloud-based Predictive Analytics & Product Visibility

Wireless Pallet-level Sensors Wireless Access

Freshness Capacity

(shelf life)Intelligent Routing Live DashboardsMobile

Access


Competitive Landscape

End-to-End

Product-Centric,

Data Driven Solution

Legacy Temperature

Recorder

Devices/Loggers

Proactive Real

Time Supply Chain

Management

Legacy

Forensic Analytics

Tools

Competitors do not address food waste, as they only report historic data

Only Zest Fresh proactively manages freshness through

predictive analytics to prevent food waste


Increasing Market Reach Through Partnerships

Better Together

Pursue partners offering complementary solutions

Enhances customer benefits & simplifies operations

Complementary Solutions

Supply chain document and certification management

Shelf life extending solutions – controlled atmosphere & coatings

On-line fulfillment & fresh food trading solutions

Pre-harvest yield improvement solutions


Market Traction

Growers: 4 national growers – combined annual revenue opportunity of $3M - $5M for domestic, and $2M for international operations

Distributors and Retailers: Combined $1.5M - $2M annual revenue opportunities

Lettuce Market: Attaining half of the lettuce market – a single product category – would drive about $12M in Zest Fresh annual revenue



Revenue Model

Zest Fresh

Product mix drives 60% Gross Margin

Average revenue of $10 per pallet trip to store

• 30 pallets / week per store = $15K / store annually

• 270 Stores = $4M / year

Reflective of regional grocer opportunity

Added revenue for additional data licenses – transportation, insurance, etc.

Zest Labs Professional Services

Evaluate procedural, product flow and/or structural improvements

Comparative analytics by season, site and variety

SaaS Revenue Model Based on Pallet Trips


Financial Overview

Revenue

Ecoark Holdings – TTM through Sept. 2018 $11,666

Zest Labs (subsidiary) $ 1,576

Cash Expense Rate – forward looking

Ecoark Holdings $2,000 / quarter

*exclusive of divestitures

Line of Credit

Credit Facility est. December 2018 $10,000 available

December 2018 $1,000 accessed

All numbers presented are in the 1,000s* Divesting Sable Polymer, Pioneer Products


A Breakthrough AgTech Solution Provider

Public Company

Technology and Innovation Division

Products

Company Information(as of January 10, 2019 market close)

Company

Ecoark Holdings,

to be renamed

Zest Technologies

Zest Labs San Jose, CA

Ticker ZEST

Exchange OTCQX

Share price $0.80

Shares Outstanding 52.0M

Market Cap $41.6M

©2019 Ecoark Holdings Inc., To be renamed Zest Technologies | Confidential 24

Freshness Management Solutions

www.zestlabs.com

Investor Relations - ICR Inc.

646-277-1254

[email protected]

Customer Inquiries - Zest Labs

408-200-6500

[email protected]

Thank you©2019 Ecoark Holdings Inc., to be renamed Zest Technologies

Breakthrough Freshness Management - Zest Labs · Food Freshness & Safety are based on grower...

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