Tel Aviv, May 2018

Tel Aviv, May 2019

BUSINESS
PLAN
Prepared for

Sensilize LLC
Table of Contents
Executive Summary ............................................................................................................................... 3
Market Analysis .................................................................................................................................... 4
Global Market .................................................................................................................................. 4
Global Precious Farming Market ..................................................................................................... 4
Target Countries ............................................................................................................................... 5
Agricultural Sector Overview ........................................................................................................... 5
Total Addressable Market and Targeted Market Share ........................................................................... 8
Company description .......................................................................................................................... 11
Brief History of the Company ............................................................................................................ 11
Uniqueness of the Company’s Technology ......................................................................................... 11
Business Model ............................................................................................................................... 12
Scalability ................................................................................................................................... 13
Product and Services .................................................................................................................... 13
Customer Segments ..................................................................................................................... 13
Sales & Marketing Plan ....................................................................................................................... 15
Value Proposition Canvas ................................................................................................................ 15
Pricing ........................................................................................................................................... 17
Strategy to Attract and Retain Customers ............................................................................................ 18
Competitor Analysis ............................................................................................................................ 20
Direct and Indirect Competitors ........................................................................................................ 20
The Company`s Competitive Advantages........................................................................................... 21
Comparison of Agricultural Sensors ............................................................................................... 21
Feature analysis ........................................................................................................................... 22
Organization and Management ........................................................................................................... 25
Organizational Structure .................................................................................................................. 25
Management Team Members and their Background............................................................................ 25
Operating Plan .................................................................................................................................. 27
Key Operational Processes ............................................................................................................... 27
Financial Analysis ............................................................................................................................... 30
Pre-launch Costs ............................................................................................................................. 30
Sales Projections ............................................................................................................................. 30
Pro Forma Income Statement ............................................................................................................ 31
Funding Requirements ..................................................................................................................... 32
Appendices and Exhibits ...................................................................................................................... 33

2
EXECUTIVE SUMMARY
Facing resource constraints, farmers have to increase their output to meet the current global trend of increasing
crop demand for human consumption and animal feed. This difficult task becomes even more hard-hitting
given rising climate volatility. Greater frequency of yield-diminishing climate extremes will severely affect
agricultural productivity in the future. Moreover, fertile soil may keep degrading.

By reducing crop yield losses and delivering advanced analytics to the farmers, Sensilize Ltd plans to solve the
challenges mentioned above. We aim to evolve the global agriculture sector so that it can support future
generations. There is a vast market opportunity in bringing state-of-the-art technologies to one of the two least
digitized industry in the world.

Our solution is based on the observation and measurement of environmental data to optimize crop production
and minimize environmental impact. We use drones, satellite, IoT, and weather stations to amass various data
and then create a precise map, describing the chemical composition of the soil and the vegetation state of
crops. Then our AI analyzes the land and detects weeds, insects, and plant diseases. There are also agronomy,
plant pathology and physiology experts ready to give recommendations on how to irrigate, fertilize croplands.
Finally, our user receives call-to-action requests, which helps him to make quick and data-driven decisions.

Our business model will have a focus on B2B operations. Targeting large innovative agricultural enterprises, we
will exercise the combination of the bundled and per-pass monetization model. By offering a 30-day free trial
and low subscription cost, we plan to increase our subscription user base and then upsell our customers with
high-margin high-value-added services. Also, once we have a documented and proven solution, we will
contemplate licensing and franchising models. To reach global markets, we plan to establish long-term
commercial relationships with providers of innovative technologies related to open fields.
The Company has already had a presence with staff and offices in Ukraine, Belarus, and Israel. During the next
four years, Sensilize plans to focus on European markets, namely Germany, France, Italy, Poland, and Hungary.
The total available market there is estimated to be worth € 567.5 million and is projected to increase to € 1,369
million by 2025. Our further expansion plans include the United States, Latin America, Australia, China, and
India.
Sensilize outrivals all companies that only use satellite imagery to make analytics. We utilize UAV to be more
precise. Then, among competitors who offer drone-imaging services, we differentiate by the Robin Eye
multispectral sensor. Also, we amass data using IoT and weather stations. Therefore, Sensilize’s analytics is much
better as the information collected is of much higher quality and from many sources. In order to secure a long-
term competitive advantage in the market, we plan an exceptionally high R&D rate at 15-25% of its revenues
Overall, our current competitors vary in the number of areas they are servicing, and none of them has become
a dominant player in this new high-growth market.
Our 7-Year Financial Plan comprises 24 months (2019—2021) of the pre-launch phase, followed by five years
(2021—2025) of commercial activities. During this period, we aim to reach a 3.8-percent market share of the
TAM by 2025, i.e., € 51.6M. Along with € 2,280K required for the pre-launch phase, Sensilize estimates its
further investment needs at € 3,183 million. To ensure the subsequent financing of the Company, we plan to
participate in the next investment rounds.
The team will be led by XXX, responsible for strategy execution and business development as well as overall
leadership and oversight of the operations. All of the team members, xxx, xxx, xxx, xxx, and xxx, have a clear
vision of the product and the necessary competence for the successful launch of the Company’s products and
services.

3
MARKET ANALYSIS
Agriculture is ripe for the picking in terms of benefiting from its digital potential.

Global Market
Food and agribusiness representing 10 percent of global consumer spending form $5 trillion industry (Source:
McKinsey). Despite significant changes over the past 50 years, according to the McKinsey Global Institute's
Digitization Index, it remains one of the two least digitized sectors in the world. Agriculture lags considerably
behind the frontier in terms of digital assets, labor, and just moderately expands its digital usage. There are root
causes of this. The sector is highly localized and extremely fragmented, especially at the production level. One
of the oldest workforces among industries runs agriculture and, by nature, changes for them do not come easily
(Source: Bureau of Labor Statistics). However, some trends and issues serve as a fertile ground for industry
disruption. They are as follows:
 If current trends continue, by 2050, caloric demand will increase by 70 percent, and crop demand for
human consumption and animal feed will increase by at least 100 percent (Source: McKinsey).
 Fertile soil has been lost by an estimated 30% during the last 40 years and may keep degrading in the
future (Source: The Guardian).
 Climate models generally indicate that climate volatility may rise in the future, severely affecting
agricultural productivity through higher frequency of yield-diminishing climate extremes.
 Global crop yields of 20-40% of are lost each year during production due to insects and diseases
(Source: FAO).
 There are resource constraints, i.e., water and energy scarcity.
Consequently, there is a pressing need to evolve the global food and agriculture sector so that it can support
future generations. Agrifood tech aims to solve the challenges mentioned above. The industry continues to
mature. In 2018, the AgTech witnessed bigger deals, growth in late-stage investments, and more exit
opportunities for investors. In total, there were 1,450 deals with a funding of $16.9 billion (Source: Agfunder).
Among them, Israel AgTech companies received $185.5m in investments. Therefore, we, as an AgTech startup
company, operate on the new market, which aims to bridge the gap between state-of-the-art technologies and
one of the two least digitized sectors in the world.
Global Precious Farming Market
Precision agriculture, one of the AgTech segments, is a farming management concept based on observing,
measuring, and responding to inter- and intra-field variability in crops. It allows farmers to optimize returns on
inputs while preserving resources. The technologies brought by precision farming force the agriculture industry
to unlock its digital potential.
The global precision farming market is valued at $5.09 million and possesses considerable growth potential. Its
CAGR is estimated to be 13.4% over the next five years (Source: Statista). The graph below shows that North
America and Europe combined account for more than half of the global precision farming market. In 2018,
precision farming in Europe solely held approximately 25.7 percent of the market.
According to the McKinsey opportunity matrix, precision agriculture takes a significant role in advancing Agri-
Tech to support the worldwide economy. Such attractiveness of the precision agriculture segment was also
evidenced by a considerable amount of investments made over the course of last years. Entrepreneurs, investors,
policy-makers, and corporations from all corners of the globe were getting involved, culminating in $945 million
of venture investment into Farm Management Software, Sensing & IoT in 2018 (Source: Agfunder). Remote
sensing startups dominated the category leader board this year, including drone services, airplane imagery
offerings, and satellite imagery analytics.

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 Market share of precision farming worldwide in 2018, by region

North America Europe Asia Rest of the world

14.1%

37.4%
22.3%

25.7%

Source: Statista

Target Countries
Sensilize has already had a presence with staff and offices in Ukraine, Belarus, and Israel. During the next four
years, Sensilize plans to focus on European markets, namely Germany, France, Italy, Poland, and Hungary. The
digital revolution in the agricultural sector, along with government financial incentives to farms, is likely to drive
the demand in the European precision farming market in the coming years. Our further expansion plans include
the United States, Latin America, Australia, China, and India.
Agricultural Sector Overview
Germany
In Germany, there are approximately 275,400 agricultural enterprises. The 13% of them that are of 100 ha or
more in size, a target segment, work near two-thirds (65%) of the utilized agricultural area - 7,736 thousand ha
(Source: Eurostat). The 1,500 largest farms, with at least 1,000 hectares of land, farm an area of around 2.5
million hectares (Source: BMEL).
The most promising crops for Sensilize in Germany are wheat, rapeseed, and sugar beet. Wheat is by far the
most commonly grown cereal with excellent yield, the highest among our target counties. To protect grain against
disease and pests, the farmers work according to the general principles of integrated plant protection. The
pesticides applied shall be as specific as possible for the target, and therefore, our service, variable application
of chemicals with various equipment options is expected to be in high demand.
Germany is a forerunner in the field of precious agriculture technologies. Approximately 30% of German crop
farmers are PF adopters. One of the main factors that affect the adoption rate is farm size. In the group of small
farms (1–99 ha), only 9% are PF adopters, whereas, in the group of the largest farms (500 ha), this figure is
69%. Such distribution exists mostly because of the high costs associated with precision agriculture technological
solutions (Paustian and Theuvsen 2017). The continuing structural change in agriculture - fewer farms manage
more land - indicates a growing market for Sensilize in Germany in the future.
France
France uses 27.8 million hectares for agricultural purposes, the largest of any Member State (16% of EU total).
The arable area amounts to 18,250 thousand ha, 67.6% of which are harvested by large agricultural enterprises,
100 ha or more in size (Source: Eurostat). Basing on these characteristics of the agrarian sector, we consider
France as a country with the most extensive user base among our target group. There are approximately 51,500
potential users for Sensilize technologies there.
Wheat is the most predominant crop covering 28% of the total arable land, followed by maize and rapeseed
(Source: Eurostat). France is one of the two major global grape producers with approximately 740 thousand ha
of the area under vines (Source: FAO). The average vineyard area per holding in France is 10.5 ha, significantly

5
higher than in the other EU Member States. It is estimated that 3,830 of the vineyard holdings that are of 100
ha or more in size have 115 thousand ha of the area under vines (Source: Eurostat). Driven by the high value of
the crop and the importance of quality, there is a strong demand for PF technologies. Grape quality and yield
maps are of great importance during harvest to avoid mixing grapes of different potential wine qualities (Bucci
et al. 2018). The large-scale growers and innovation efforts make the wine industry one of the most promising
segments for Sensilize in France (Source: Business France).
The agri-business in France is active in technological developments. The PF adoption rate is 45%, one of the
highest across Europe (Source: Smart-akis). In 2017, almost 1 million ha of farmland in France was managed
with remotely sensed data. Approximately 85% of the remote sensing is by satellite and 15% using drones or
aircraft. About 10% of the field crop area and 1% of the viticulture area was managed using remote sensing in
2017 (Source: ISPA).
Italy
Compared to France and Italy, the agricultural industry is more fragmented (Source: Eurostat). There are over
one million enterprises, and those of 100 ha or more in size farmed only 1,759 thousand ha of all the arable
area in the country. This results in a relatively small user base of approximately 3,900 enterprises.
Grapes and tomatoes are crops with the best prospects for Sensilize in Italy. The country produced 5.6 million
tons of tomatoes in 2017, accounting for 32.2 % of the EU total (Source: Eurostat). Since high-value vegetable
crops have historically received less attention in the area of precision agriculture, we expect less severe
completion in this segment. Italy is also the leading grape-producing Member State. Despite the significant
market opportunity, there is a stiff challenge for us – winegrowers, in general, are doubtful about spending time
and money in digital (Source: European Commission). Therefore, it is crucial to find effective ways of bringing
the value of Sensilize to growers.
As we have outlined above, the adoption of precision agriculture depends much on farm size. Therefore, only
1% of the agricultural surface in Italy is managed through precision farming techniques. (Source: MiPAAF).
Nevertheless, we assume that the adoption rate in our target segment, enterprises with 100 ha or more in size,
corresponds to the average European figure of 25% (Source: Keskin).
Poland
Similar to Italy, most of the Polish farms are small. Only 23.9% of the total arable area was concentrated on
11,570 large agricultural enterprises, 100 ha or more in size (Source: Eurostat). Much bigger farms are mostly
located in the northern and northwestern part of Poland and are characterized by more intensive agricultural
production than those found in southeastern Poland (Source: ISPA).
The most promising crops in Poland are maize and rapeseed. Firstly, their share in the structure of cultivated
plants has been increasing over the last years (Source: Sufisa and USDA). Secondly, maize and rapeseed are
crops with the highest concentration of large firms (Source: Eurostat). Due to the large planted area, wheat is
also among our target crops in Poland.
Precision agriculture is underdeveloped in Poland as small enterprises are not active in the implementation of
new technologies. Variable rate application of pesticides and variable rate seeding is estimated to be used only
on a few to dozen farms (Source: ISPA).
Hungary
In Hungary, there are 232,500 agricultural enterprises, which harvest on 3.8 million ha of arable land. Among
them, 8,560 companies account for 65.1% of the total cultivable area (Source: Eurostat). Such a high
concentration of land under large agricultural enterprises results in a broad potential user base for Sensilize.
However, there are significant barriers to this market. Compared to France and Germany that produce high
yields with high costs, Hungary achieves only moderate results. This limits a customer’s willingness to pay.

6
Alongside the ineffectiveness of agriculture, the level of education those employed in the sector is below the EU
average (Olah and Popp 2018). Consequently, the human resource’s lack of preparedness, skills, and attitudes
is an obstacle to the penetration of PF solutions in Hungary. Overcoming these barriers requires considerable
investments in marketing and educational activities.
The precision agriculture is not widespread in Hungary. In 2015, the adoption rate of PF among Hungarian
farmers was 7% only. However, for large agricultural enterprises, 100 ha and over in size, we believe it can be
as high as 10-15% nowadays. According to the recent survey, 28.2% of Hungarian farmers indicated that higher
profitability would be their primary motivation for adopting PA. More detailed information was in second place
on the list and, any benefit related to subsidy would also promote the use of PA (Katalin et al. 2018).
To our advantage, the Company’s operational crop types have the highest rates of adoption. In Hungary, PA is
most commonly used for winter wheat, followed by maize, sunflower and oilseed rape. Katalin suggests that the
additional income for winter wheat can be up to 133% (Katalin et al. 2018).
Ukraine
Ukraine is one of the major players on the global agricultural market, taking the leading positions in the
production of various crops. It is the sixth largest producer of maize and soybeans, growing 25 and 4 million
tons a year, respectively. The country is the world’s largest grower of sunflower seed, regularly producing more
than 10 million tons a year. In 2017, Ukraine generated 25.5% of global sunflower seed output. In contrast to
soybean and rapeseed that Ukraine exports as raw material, sunflower seeds are almost entirely processed in
Ukraine. Ukraine is also the ninth largest producer of wheat in the world, growing around 26 million tons a year.
Ukraine's agribusiness sector is one of the most promising sectors of the economy. It is the third largest industry
contributing annually 10-12% to Ukrainian GDP (Source: NICU). The share of agricultural products in total
export increased from 21% in 2010 to 39.4% in 2018, which makes agrarian products the most significant
export category for the sixth year in a row (Source: Ukrstat). Agricultural enterprises and households are the two
main groups of producers. Agricultural enterprises that generate 55% of Ukraine's gross agrarian output are
represented by 32,000 farm enterprises, 10,000 corporate agricultural enterprises, and 241 state enterprises
(Source: Export.gov). Among them, 4,877 enterprises have the land bank of one thousand and more hectares,
15,400 thousand ha of sowing area in total (Source: Ukrstat). It is estimated that 20% of Ukrainian agricultural
enterprises use hi-tech solutions (Source: Aggeek).
Despite the favorable climate, rich and black soil, average crop yields in Ukraine are still lower than in the
European Union (Source: NICU). The difference of 10-30% in productivity was mostly due to the insufficient
application of fertilizers and crop protection products and the lack of modern machinery in the fields of Ukraine.
Therefore, to maintain and improve positions on global agricultural markets, Ukrainian producers aim to increase
crop yields by catching up on the use of fertilizers, irrigation, and machinery as far as to decrease costs by
applying precision agriculture technics. Sensilize considers this gap in yields between Ukraine and Europe as a
business opportunity of becoming extremely effective on the Ukrainian market.
Belarus
Belarus plays a minor role in the global agricultural market. The country is associated more with potato
production that is due to the high demand from the domestic market. Among large-scale segments, sugar beet
cultivation is one of the most promising crops in the country. Belarus ranks #14 in the global production of
sugar beets, having grown almost 5 million tons in 2017 (Source: Khoema). Agricultural development of
soybeans, sunflower seed, and maize is constrained by climate.
In 2017, the Belarusian agricultural sector accounted for 8.1% of the country’s GDP (Source: CIA). Belarus
specializes mainly in cereals, which represents 40% of the sowing area. There are 1,357 agricultural
organizations, which generate 79.3% of gross farm output. Taken together, they cover approximately 5,297

7
thousand ha of the sowing area (Source: Belstat). We assume that only 10% of agrarian organizations are
inclined to use new technologies.
The sector is widely dominated by large-scale state-owned enterprises that are inefficient and dependent on
government subsidies (Source: Kleffmann Group). Due to bureaucratic forms of administration and loss-making
nature of leading agricultural enterprises, there are significant complications for us to benefit from this market.
Israel
Unlike most other countries, the Israeli agricultural sector has always been primarily cooperative. There are
around 270 kibbutzim and 450 moshavim, planned agricultural communities that operate cooperative
enterprises in Israel (Source: MFA).
Arable land in Israel accounts only for 13.73% of the land area, i.e., 297 thousand ha (Source: Trading
Economics). The crops of our most considerable interest in the country include wheat (44,800 ha), avocados
(8,410 ha), grapes (7,940 ha) and bananas (2,578 ha) (Source: FAO Stat).
Israel is a world leader in many aspects of agricultural technologies, particularly associated with farming in arid
conditions. Due to water scarcity, approximately 50% of Israeli farmers use soil moisture sensors to manage
irrigation. It is also estimated that about 50% of farmers use satellite images, and nearly 30 farms use drones for
aerial maps. (Source: ISPA). Thus, the overall adoption of PA technologies in Israel is one of the highest in the
world.

Total Addressable Market and Targeted Market Share

To estimate total market size, we take area harvested in our target market and multiply that by the average
amount of funds spent on PF technologies per hectare. TAM number is built up with assumptions that the
Company serves only large enterprises and has twelve operational crops. We define our target enterprises
differently by countries. Because of lower willingness-to-pay, our target customers should have at least 1,000 ha
of sowing area in Ukraine while in the EU countries, they are 100 ha and over, in size. Due to the lack of
information as to the distribution of arable area by the size of enterprises, all of the 1,357 Belarusian
organizations are considered as a target segment. Another assumption relates to the Company’s operational
crops. The existing portfolio comprises maize, soybeans, sunflower seed, rapeseed, wheat, sugar beet, hemp,
and grapes. By 2020, Sensilize will expand this list by the crops developed within the Consortium – bananas,
tomatoes, cucumbers and gherkins, avocados and bananas. The Company will receive all of the technological
solutions related to these crops.
We estimate that the Company’s operational crops cover the surface of 28,425.2 thousand ha in our target
countries combined. Ukraine accounts for 46.5% of the total area. It is mostly due to the high concentration of
large agricultural enterprises and vast agricultural land. France is in second place with 6,726.1 thousand ha of
agricultural land harvested in our target market. It is followed by Germany where large enterprises cultivate wheat
and rapeseed on more than 3,000 thousand ha of land.
Agricultural land under the Company's operational crops harvested by large enterprises, ‘000 ha

Crop Germany France Italy Poland Hungary Ukraine Belarus Israel

Maize 198.6 1,117.6 174.2 274.6 520.7 2,845.0 121.1 3.4

Soybeans 8.3 77.8 60.4 4.0 39.8 1,232.1 0 0.0

Sunflower seed 15.3 319.0 32.2 1.0 368.5 3,981.0 0 1.7

Rapeseed 1,091.2 1,270.0 5.2 418.6 189.6 825.5 308.4 0.0

Wheat 2,173.0 3,786.7 139.3 743.4 627.1 4,082.2 619.6 44.8

8
 Crop Germany France Italy Poland Hungary Ukraine Belarus Israel

Sugar beet 28.3 24.1 4.7 35.7 15.1 209.5 92.2 0.0

Hemp 0.8 13.6 0.0 0 0 1.0 0 0.0

Grapes 8.0 115.1 55.6 0 8.9 21.8 3.9 7.9

Tomatoes 0.2 1.6 20.1 2.7 1.2 7.1 0.6 5.1

Cucumbers 1.5 0.8 0.4 3.5 0.5 0.2 0.5 1.6

Avocados 0 0 0 0 0 0 0 8.4

Bananas 0 0 0 0 0 0 0 2.6

Total 3,525.0 6,726.1 492.0 1,483.3 1,771.4 13,205.4 1,146.4 75.4

Source: Own analysis, Eurostat, FAO Stat, Ukrstat, Belstat

We estimate the total addressable market for Sensilize to be worth € 567.5 million. Since Sensilize has twelve
operational crops, only the share of that market is served, i.e., € 298.8 million. Among target countries, France,
Germany, and Ukraine offer the best market opportunities for business growth.
Total available and served available market size estimation

# Measure Germany France Italy Poland Hungary Ukraine Belarus Israel

(1) Arable land - 100/1000 7,736 12,342 1,759 2,578 2,486 15,401 5,297 297
ha and over, ‘000 ha

(2) Average arable land per 218 131 127 223 291 3,158 3,903 413
large enterprise, ha

(3)= Arable land - 100/1000 35,430 94,430 13,800 11,570 8,560 4,877 1,357 720
1/2 ha and over, enterprises

(4) Assumed adoption rate of 43% 45% 25% 25% 15% 25% 10% 70%
precision agriculture

(5) Average revenue per ha € 45 € 45 € 35 € 35 € 25 € 25 € 15 € 85

(6)= Total available market, € 148.5 € 249.9 € 15.4 € 22.6 € 9.3 € 96.3 € 7.9 € 17.9
2345 millions of €

(7) Arable land under the 3,525 6,726 492 1,483 1,771 13,205 1,146 75
Company's operational
crops harvested by large
enterprises, ‘000 ha

(8)= Potential user base, 16,144 51,462 3,859 6,656 6,098 3,281 296 183
7/2 enterprises

(9)= Number of enterprises in 6,885 23,158 965 1,664 915 820 30 128
4*8 the target market

(10) Arable area in the target 1,503 3,027 123 371 266 2,590 116 53
=2*9 market, ‘000 ha

(11) Assumed average revenue € 45 € 45 € 35 € 35 € 25 € 25 € 15 € 85

per hectare

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# Measure Germany France Italy Poland Hungary Ukraine Belarus Israel

(12)= Served Available Market, € 67.6 € 136.2 € 4.3 € 13.0 € 6.6 € 64.8 € 1.7 € 4.5
10*11 millions of €

Source: Own analysis, Eurostat, FAO Stat, Ukrstat, Belstat

Increase in the adoption rate and expenditures on the PF technologies are among critical factors that drive the
TAM. Along with increasing farm size, they contribute to double-digit market growth in Europe. According to
Markets and Markets insights, the compound annual growth rate of the precision farming market is estimated to
be 13.4% in our target region (Source: Markets and Markets). Accordingly, the TAM is projected to increase
from € 567.5 million to € 1,369 million by 2025. To obtain the target market size, we multiply the total available
market size by the targeted market share. Our objective is to reach a 3.8-percent share of aggregate demand
for PF products and services by the end of 2025, which is € 51.6 million in revenues.
Targeted Market Share

2018E 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Total available market,

€ 567.5 € 643.6 € 729.8 € 827.6 € 938.5 € 1,064 €1,207 € 1,369
millions of €

Served available market,

€ 298.8 € 338.8 € 384.2 € 435.7 € 494.0 € 560.3 € 635.3 € 720.5
millions of €

CAGR of the PF market in

13.4% 13.4% 13.4% 13.4% 13.4% 13.4% 13.4% 13.4%
Europe

Targeted market share 0.0% 0.0% 0.4% 1.0% 1.8% 2.6% 3.8%

Market share, millions of € € 0.0 € 0.0 € 3.1 € 9.8 € 19.3 € 31.7 € 51.6

To reach the targeted market share, we have defined our penetration strategy to focus on the most promising
crops in each country.
Penetration strategy by countries and crops

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COMPANY DESCRIPTION
Brief History of the Company
Sensilize is an Israeli registered AgTech startup (Reg# 514872423), founded in 2013 by Dr. Yoav Zur and Dr.
Robi Stark. The Company provides remote sensing solutions for field and greenhouse growers through the
utilization of high-end sensing technologies and smart data analysis. Our business strategy is lower volume and
high value of services provided. The Robin Eye Sensor, a multispectral camera with high flexibility, is one of the
main innovations already developed.
The Company participates in a multi-year Phenomics Consortium, sponsored by the Israeli Innovation Authority.
Together with its partners – Evogene, Elbit Systems, Hazera Seeds, Opgal Optronic Industries, Rahan Meristem,
the Volcani Center of the Agricultural Research Organization, Ben-Gurion University and the Technion – Israel
Institute of Technology and the University of Haifa – Sensilize addresses clients' needs on a large scale and high-
throughput phenotyping. The companies develop tools and systems for precise agriculture, artificial intelligence
algorithms combined with Big Data architectures that will provide real-time analysis of phenotypic data. The study
of this data is expected to assist farmers in managing their crop season more efficiently, thereby improving yield
per acre. Each member of the consortium will own the algorithms developed. In 2018, the Israeli Innovation
Authority approved a $5 million grand for the Phenomics Consortium, of which $0.5 million to Sensilize.
The Company’s management sees vast opportunities for the increase of field yield. The mission is to bridge the
gap that exists between the basic needs of land management professionals and advanced technology. The
Company’s core values are

The Uniqueness of the Company’s Technology

Sensilize is developing/has developed a multispectral sensor, which is highly sensitive to stresses, illnesses, and
expressions of abnormalities occurring in plants. It is unique by allowing images acquisition at all ranges (from
1 meter to several hundred) while maintaining effective visual information collection at stable high rates. Overall,
the key features of our sensor are as follows:
 Sensilize sensor allows generation of detailed images at seven wavebands from the Visual spectral +
Near Infra-Red spectral ranges, which are characterized by high spectral accuracy and by that
dramatically reduces the number of identifications of relevant hazardous impacts.
 It is effortless to shift and change wavebands which are in use, to describe certain agro-tech phenomena.
 There is an ability to control imaging tasks to produce compelling 3D object maps which are of
exceptionally high value and not known to the majority of potential customers.
Combination of spectral with geometrical measurements, altogether with instance response will allow precise
grading system operation and best management of crop and yield production or hazard prevention.
Our drone imaging using the multispectral sensor is supported by satellite imaging. This allows filtering fields,
which are not in detailed analysis need. As a result, our customer can save costs and focus at investigating and
monitoring in higher frequency the areas that require more attention. Moreover, weather stations and IoT-
enabled soil measurement sensors can be placed in the field to collect data about climate conditions, water
levels, and other metrics over time.
Such a comprehensive system of technological solutions enables the development of our state-of-the-art AI. Ours
detect and alert AI is aimed to be relevant for all kind of imaging tasks, at very high coverage rate and still
support almost real-time answering machine. When fusing all mentioned information sources, there are higher
chances to generate precise insight of plants status.

11
Business Model
Sensilize’s business model comprises nine elements: customer segments, value propositions, channels, customer
relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
Among others, the Company serves large agricultural enterprises. This segment dominates the market and has
sufficient financial resources to invest in the adoption of new technologies. By offering a complex spatial decision
support system, the Company helps them to improve yield through the utilization of high-end sensing technologies
and smart data analysis. Decision-making process has never been as easy as it is now with Sensilize. Variable
application of fertilizers, chemicals and biological; timely detection of insects and disease; plant stress
differentiation; professional recommendations from agronomy, plant pathology, and physiology experts – all
these product features to support customers in their need to receive higher revenue with lower costs and become
top performers on the market. The visual portrait of the Company’s business model is presented below.
Business model canvas

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments
Exclusive R&D
distributors including the The complex spatial Seminars, workshops Large agricultural
development of new decision support system enterprises that use
Contractors that Personal assistance
crops that helps farmers to new technologies
provide the
improve yield through [Banks and
Company’s services Software
the utilization of high- insurance
development
External scientists end sensing companies]
and agricultural Establishing local technologies and smart
[Plant chemical and
specialists partners data analysis
seed companies]
Suppliers of Manufacturing
[Phytopatologists]
chemical inputs and
microbial inoculants
Key Channels
Suppliers of
Resources
hardware products Direct sales
Patents and
Exclusive distribution
technologies
Trade fairs and
R&D development
office in Israel exhibitions

Local teams of Specialized journals

engineers, precision Website and social
crop analysts, and media
sale representatives

Cost Structure Revenue Streams

Contractor Fees Subscription
Manufacturing and purchases of hardware products Sales of services
R&D expenditures Sales of hardware products
Software development Commissions
Marketing and sales expenses Licensing fees
Franchise royalty fees

12
 Scalability
To reach global markets, we plan to establish long-term commercial relationships with providers of innovative
technologies related to such agricultural disciplines as greenhouses and open fields. We have a plan to outsource
our non-strategic activities such as UAV flights, on-farm soil and leaf analyses and partially, recommendations
from agricultural experts. The leverage of external resources – drones and operators, scientists, and agricultural
specialists – allows making our business more powerful as there are always more resources outside our company
than inside. In the meantime, we will focus on our core competency – the development of the high-end complex
spatial decision support system. As a result, this opens to us the possibility for licensing from the very beginning,
and once we have a documented and proven model, franchising will let us scale even much faster. Therefore,
the brilliance of our model is to offer a service through a business model that is primarily product-oriented, selling
our algorithms and crop management services rather than field flights themselves.
Regarding our multispectral sensor, weather stations, and soil measurement devices, we plan to enter exclusive
distribution. The distributors will be provided with exclusive rights to sell our products within a particular
geographical location as per our company guidelines. Having trustworthy partners, we will be more focused on
winning over competition rather than deciding on our distribution base. Building the brand and doing
promotional activities rather than finding, convincing, and maintaining the distribution channel forces our
penetration in the market.
Product and Services
Sensilize is based on the observation and measurement of environmental data to optimize crop production and
minimize environmental impact. We use drones, satellite, IoT, and weather stations to amass various data and
then create a precise map, describing the chemical composition of the soil and the vegetation state of crops.
Then our AI analyzes the land and detects weeds, insects, and plant diseases. There are also agronomy, plant
pathology and physiology experts ready to give recommendations on how to irrigate, fertilize croplands. Finally,
our user receives call-to-action requests, which helps him to make quick and data-driven decisions.
Customer Segments
There are several targeted users (or user groups) for the product/application. The needs for each target group
are well described below (users’ pain) while the adjusted column explains the Value Proposition also in
comparison with some of the other market alternatives. Each of those users is considered as perspective to
Sensilize.
A brief outline of target customer segments

Users/Users Groups Users’ Need (“pain,” “wishes” Value Proposition (“gain”) / reasons for users to buy
and “main tasks”) the product

o Plant Chemical Companieso Testing new and existing o Early detection of valuable phenomena to improve
developments decision making

Growers Stress detection Improving yield

Insurance companies Yield estimation Adjust farmers/growers insurance companies

Phytopatologists Plant deseases monitoring Early detection of symptoms

Large agricultural enterprises – our primary segment

Users: general farm workers, agronomists, agrarian operations managers
Buyers: top management (CEOs, agribusiness directors)
A critical aspect for the PA profitability is farm size, as cost/benefit estimations require a minimum farm size to
depreciate the investments over the entire farm (Source: European Parlament). Therefore, our target customers
are large agricultural enterprises. The buyers are young, open-minded farmers as they face a lower initial hurdle
13
for PF adoption due to their education and habituation to rapid changes and developments in PF and ICT in
general. They look forward to benefiting from their decisions for many years to come (Paustian and Theuvsen
2017).
There are the following reasons why our target customers will be willing to pay for Sensilize.
1. The investment in our products and services has an ROI of 200%, on average.
For every dollar invested, a farmer can get three, either in more yield or reduced production costs. Timely
detection of weeds, insects, and plant diseases, alerts on critical weather conditions can significantly improve
field yield. In the meantime, cost reduction is mainly coming from optimizing the utilization of water, fertilizers,
chemicals, and biologicals as well as from instant expert advice. The typical use case of our technologies is
presented below.
Typical use case - overflights of the maize fields

Field area, ha 10,000

The area affected by weeds, ha 600

Potential crop losses due to weeds 20%

Total gross revenue per hectare € 1,300

Cost of possible losses € 156,000

Cost of herbicidal treatment @ € 40/ha per ha € 24,000

Sensilize flight cost @ € 1.8/ha per pass € 18,000

AI and Expert data processing and analysis @ € 0.9/ha per pass € 9,000

Total expenses € 51,000

Savings € 105,000

ROI 205.9%

We estimate that a grower can obtain a substantial net benefit of up to € 100 per hectare through the complete
utilization of our PA technologies compared to conventional methods. Therefore, the added increase in yield
accompanied by reduced production costs is worth the added price for the customers.
2. Sensilize makes farming more manageable, sustainable, and profitable that ensures long-term success
for our clients.
Average farmers achieve only 25-30% of the plant’s genetic potential. Much of the genetic potential of our crops
is lost throughout the crop cycle due to the plants’ need to adapt or overcome the different challenges that are
presented to them in the form of stress (Source: Stoller Europe). With our help, they will be able to increase this
number steadily up to 50%, which is our long-term goal.
Also, Sensilize contributes in many ways to the long-term sustainability of production agriculture. The benefits to
the environment come from more targeted use of inputs that reduce losses from excess applications and reduction
of losses due to nutrient imbalances. Moreover, improvement in the soil conditions, prevention of weed escapes,
insect damage are also in place. All of our benefits combined is vitally important for potential customers. In one
of the surveys, Hungarian precision farming planners placed the decrease of adverse environmental impacts in
second place among ten advantages of precision farming technologies, just after income change (Lencsés et al.
2014). Therefore, we are confident that our focus on the sustainability of production agriculture will make our
clients more competitive on the market.

14
SALES & MARKETING PLAN
Value Proposition Canvas
Our value proposition canvases have two sides. With the customer profile, we clarify our customer understanding.
With the value map, we describe how we intend to create value for that customer. We hope to achieve a fit
between the two sides.
To create a value proposition canvas, we have identified two different types of customers – buyers and users.
Buyer personas are companies’ top management (CEOs, agribusiness directors). Due to high costs associated
with the PF adoption, they usually make buying decisions. Our user personas are general farm workers,
agronomists, and agrarian operations managers. They use our products and services directly. It is also important
to highlight that buyer personas will not necessarily be persons using our products, which means the goals and
needs we draft for these personas are likely to differ from those of our user personas.
Our buyer personas are interested in high-level goals. Besides critical weather conditions, soil erosion, and
degradation, they care a lot about data protection and sovereignty. The fact that sensitive business data is
commonly recorded could explain farmers’ concerns about these applications (Gandorfer et al.). Considering
this, we plan to enhance the prevention of data thefts or any form of security breaches in our software. The
portrait of our buyers and our value proposition with other details are shown below.
Value proposition canvas for agricultural enterprise (a buyer’s perspective)

As mentioned before, the portrait of users somewhat differs from the management’s one in terms of their jobs,
pains, and expected gains. Agronomists study soil, plants, seeds, and products to understand crop needs better
and develop more effective and efficient farming practices. They solve problems related to plant or soil nutrition,
damage from insects or wildlife, weather or climate changes, or the use of specialized products, such as
pesticides, fertilizers, etc. In its turn, general workers plant, fertilize, cultivate, spray, irrigate and harvest crops.
They record information about crops and inform farm managers of crop progress. Both general farm workers
and agronomists spend much time in the fields. Their complete portrait and our solution we offer them are
presented below.

15
 Value proposition canvas for agricultural enterprise (a user’s perspective)

One of the biggest problems with precision farming technology is that the possible advantages and
disadvantages of technology highly depend on the professional knowledge and attitude of managers. This is the
reason why, sometimes, the farmers think that the investment in precision farming technology will not have the
expected advantages, so they do not buy other additional elements of the technology or start to use their precision
equipment in a conventional way (Source: Sustainability). Moreover, the commitment of top management to
precision farming technology is not enough if the staff does not pay enough attention to the settings of the
equipment or its maintenance. To close this gap between the knowledge and utilization of our technologies, we
plan to establish Sensilize Academy. Each employee will have access to extensive product training.
Portrait of our customers differs across crops
Basing on the features of our product and external research, we expect that a customer’s willingness to pay
across our operational plants may vary considerably. For instance, grape growers are not reputed to be tech-
savvy and therefore, rely on their instinct to manage the vineyards. It is estimated that 77% of winemakers are
doubtful or not convinced about spending time and money in digital (Source: European Commission). In the
meantime, maize and soybean farmers are at the forefront of the PF adoption.
Willingness to pay by crops

Portrait of our customers differs across countries

We also realize differences that exist between target counties. Cultural perception is one of the other main factors
that affect the adoption of precision agriculture in each state. For instance, German farmers are pragmatic. They
have a strong propensity to save and invest and encourage thrift in modern education as a way to prepare for
16
the future. Therefore, as to Germany, we will focus on the long-term benefits of our technologies. Contrast to
Germans, Polish growers concentrate more on achieving results quickly and prefer to maintain time-honored
traditions and norms. Hence, in our commutation messages, we plan to focus on quick potential benefits of our
technologies to unravel the potential of this market. Poland is characterized by considerable variation in soil types
or land classes and with each soil type or land class having its unique productive potential. This indicates that
there is a significant net benefit from the application of our precision input technology, and we hope to succeed
with this proper communication strategy.
Long-term orientation1 by our target counties

83
63 61
55
38 38

Germany France Italy Ukraine Poland Israel

Source: Hofstede Insights

Pricing
Our planned pricing model is a combination of the bundled and per-pass model. By offering a 30-day free trial
and low subscription cost, we plan to increase our subscription user base and then upsell our customers with
high-margin high-value-added services. Such an approach allows us to offer our services only when they are
needed most. Also, we will offer tailor-made subscription packages. Therefore, the farmers will maximize their
savings and be more satisfied with our value proposition.

Services Price Units

Subscription:
 Satellite NDVI Images and historical open-source data
 Live data from in-field IoT and weather stations 0.5 $/ha per annum
 Navigation App for field scouting
 Notification and alert system
 Instant tips and advice from experts
Primary services available through the Sensilize software:
Multispectral 3D Thermal mapping using UAV 2 $/ha per pass
AI and Expert data processing and analysis 1 $/ha per pass

Auxiliary services available through the Sensilize software:

On-farm leaf analysis 6 $/ha per pass
Microbial and nutrition soil test 6 $/ha per pass
On-farm analysis of soil compaction and structure 3 $/ha per pass
On-farm spraying by UAV with nutrition mix 30 $/ha per pass

1
This dimension describes how every society has to maintain some links with its own past while dealing with the challenges
of the present and future, and societies prioritise these two existential goals differently. Normative societies. which score low
on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with
suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage
thrift and efforts in modern education as a way to prepare for the future.
17
Hardware products are offered at the prices shown below.

Hardware products Price Units

Soil moisture sensor 350 $/unit

Weather station 2,000 $/unit

Ground sensor 10,000 $/unit

Robin Eye multispectral sensor 20,000 $/unit

Strategy to Attract and Retain Customers

Firstly, we plan to raise awareness of our company’s products and services. Digital marketing, trade fairs, and
publications in specialized journals are to become the main channels meant to build our brand. The Smart Akis
survey in 2017 showed the relevance of these information sources to our customers in Europe. For us, trade fairs
are the ideal place to contact with a wide range of potential clients. Almost 80% of European farmers attend
them at least once a year. Moreover, for 26.5% of them, trade fairs are the most recent source of information
they used to get familiar with modern PF technologies. Other 31% of the farmers rely on information they got
when reading professional literature. Following trade fairs and specialized journals, social media is the third most
proper channel for the promotion of PF products and services (Source: Smart Akis).
Secondly, we are to help customers evaluate our company’s Value Proposition. In their work, our buyers try to
ensure that the enterprises are profitable and bad investments may undermine their credibility. They are afraid
that the cost of PF technologies can be higher than the benefits. Thus, a combination of in-field demonstrations
and a free trial period will promote the perception that the use of our products and services is easy and beneficial
(Pierpaoli et al. 2013). The market surveys reinforce our approach. In 2017, non-adopters across Europe told
in the questionnaire that they would need demonstrations (21%) and personal tests (37% of non-adopters) before
deciding to get PF and 93% of them would like to use a PF on a trial basis before making a purchase (Source:
Smart Akis).
Finally, we are going to create an in-house sales force responsible for contacting directly with our potential
clients. We expect buying decision-making time to take 90 days, on average.
Our retention strategy will be based on providing a good ROI for our customers. Therefore, to eliminate the risk
of incorrect application of technologies, we plan to establish Sensilize Academy and provide access to our
external team of agricultural experts. Moreover, the customer will be able to communicate with his customer
representative to get help after the purchase is complete. Our goal is not to spend all our time on cold-calls
finding new customers — it is deepening the business relationships with the clients. By applying this strategy, we
expect to have minimal customer turnover and grow our retention rate up to 90% in the fifth year. Also, we
forecast that our precision ag field coverage with our customers, on average, will grow from 10% in the first year
to about 50% in the third year of partnership.
Customer Acquisition Cost
Customer acquisition cost by countries
Germany France Italy Poland Hungary Ukraine Belarus Israel

Allocated marketing €250 €250 €200 €200 €200 €500 €200 €200
spend:

Allocated marketing €50 €50 €50 €50 €50 €150 €150 €50
specialist salary:

Sales force €0 €0 €0 €0 €0 €300 €200 €200

compensation:

18
 Germany France Italy Poland Hungary Ukraine Belarus Israel

Allocated overheads: €80 €80 €70 €70 €70 €240 €140 €120

Costs associated with in- €0 €0 €0 €0 €0 €500 €500 €500

field demonstrations:

Costs associated with a €100 €100 €100 €100 €100 €600 €500 €150
one-month free trial:

Cost to acquire trial user: €480 €480 €420 €420 €420 €2,290 €1,690 €1,220

Trial-to-paid conversion 25% 25% 25% 25% 25% 25% 25% 25%
rate:

Customer Acquisition €1,920 €1,920 €1,680 €1,680 €1,680 €9,160 €6,760 €4,880
Cost:

Average arable land per 218 131 127 223 291 3,158 3,903 413
large enterprise, ha

Maximum revenue per €9,826 €5,882 €4,462 €7,799 €7,263 €78,948 €58,551 €35,063
enterprise: 100%
coverage

Expected customer €23K €14K €10K €18K €17K €185K €138 €82K
lifetime value

LTV/CAC ratio 12.0x 7.2x 6.2x 10.9x 10.2x 20.3x 20.4x 16.9x

19
COMPETITOR ANALYSIS
Direct and Indirect Competitors
Sensilize faces competition from both local and global players in each of its target markets. Our key competitors
are shown in the table below. None of them has become a dominant player on the market.
Main direct competitors

Company Description Geographic Pricing Clients

Presence

Precision agriculture platform for USA, Brazil, $2.5/ha per Large agroholdings
farm management and agri data Argentina, flight and medium
Taranis analysis that provides field control Paraguay, Israel, farmers, e.g.,
with sensors, meteorological data, Ukraine, Russia Agricom Group
and automatic analysis of detailed (40k ha), Agrodar
150k ha of land
images. Ltd (16k ha),
covered in Ukraine
Vostok-Zapad (5k
ha)
Seeds producers

A global leader in information Canada, USA, Subscription Large agroholdings

technology for agriculture. Farmers Brazil, Russia, and business model
Has plans to cover
FarmersEdge Edge has digital solutions for many Ukraine (opened its
From $1.5 to 150k ha in Ukraine
agribusiness needs: satellite and Ukrainian office in
$12 per by the end of 2019
weather field monitoring, 2018).
hectare per
monitoring of equipment and
10 million ha of annum
trailers, precision farming,
land covered
differential use of fertilizers and
worldwide
seeds. It has local partners

A combination of remote sensing 180k ha of land $5/ha Large and SMB

and soil analysis technologies. It covered in Ukraine, farmers
AgriEye develops a unique multispectral USA, Peru, and
camera. Ecuador

Web-based service that provides Available all over From $1 to $5 Large agroholdings,
remote monitoring of agricultural the Globe per hectare per e.g., Kernel (550k
land, including operational annum ha), Agrotrade (72k
Cropio monitoring of sown areas, auto- ha), Agroinvest
documentation, forecasting, and Group (32k ha)
agricultural planning.

Prospera offers data monitoring 4,700 fields n/a Indoor and outdoor
and reporting tools and provides a monitored in farms in Europe
Prospera visualization of the farmer’s entire Europe, Mexico,
Large scale outdoor
Technologies production using computer vision and the U.S.
farms in the USA
and artificial intelligence. The
Started operations
company uses a combination of
in the USA.
RGB cameras, ground-based
sensors, and weather data.

Gamaya improves the efficiency Brazil, Ukraine n/a Sugarcane and

and sustainability of farming soybean growers
businesses by offering compelling

20
 Company Description Geographic Pricing Clients
Presence
Gamaya agronomy solutions, enabled by
hyperspectral imaging and artificial
intelligence

The Climate FieldView™ digital USA, Brazil, Freemium Large and SMB
agriculture platform provides Canada, and business model farmers
The Climate
farmers with centralized field data Europe, including
Corporation From $2.5 per
management, visualization, and Poland, Germany,
hectare per
reporting that creates actionable France and Ukraine
annum
agronomic insights for data-driven
More than 100,000
decisions to optimize fertility and
users
seeding management.

Our indirect competitors are businesses that offer slightly different products and services, but target the same
group of customers to satisfy the same needs.
Indirect competitors

Indirect Competitors Companies

Satellite imagery providers Earth Observing System, One Soil

Weather platforms Meteotrek, Greenbe, Meteo.farm, the Weather Company,

Syngenta weather platform

Agrochemical analytical laboratories Prime Lab Tech

Providers of air monitoring services using drones DroneUA, Smart Drones

Drone software platforms DroneDeploy

The other alternative of Sensilize for an agricultural enterprise is to hold a big team of agronomists. By applying
conventional methods, they would make regular visits into fields, detect, prevent, and solve problems.

The Company`s Competitive Advantages

Sensilize outrivals all companies that only use satellite imagery to make analytics. We utilize UAV to be more
precise. Then, among drone operators, we differentiate by the Robin Eye sensor. Also, we amass data using IoT
and weather stations. Therefore, Sensilize’s analytics is much better as the information collected is of much higher
quality and from many sources.
Comparison of Agricultural Sensors
1. RGB vs. multispectral sensors
In a broad sense, a multispectral sensor is any sensor measuring reflectance at several wavelengths, which means
that RGB sensors are also multispectral, as they perceive red, green and blue lights (visible light). The term
“multispectral” is commonly used for sensors that measure near infrared (NIR) light in addition to the visible
wavelengths. As the NIR sensors can measure visible reflectance, all the capabilities of RGB sensors are inherent
for the NIR sensors.
Capabilities of RGB and NIR sensors

Common  Counting plants

 View crop damages from farm machinery
 Identification of gaps in crop rows
 Weeds detection (perhaps not all of them)

21
 NIR sensors only  Plant stress management
 Detection of weeds, pests, and diseases
 Soil fertility monitoring
 Irrigation management
2. Optical sensors vs. other ones
Optical sensors, such as multispectral UAV cameras, obtain values of light reflectance from plant tissues to
predict troubles that may be present. It means that optical technologies mostly are not used for accurate
measurement of soil properties (chemical composition and physical properties). However, the active research is
done in this direction, and some companies predict soil chemical characteristics from the spectral signatures
(reflectance at far-infrared part of the spectrum). So, there is almost no chance to use optical sensors for soil
properties estimation before sowing or after harvesting (when there are no plants in the field). One more
disadvantage of optical sensors: In case of any trouble detection, usually you cannot specify the type of trouble;
we just see that some trouble is present.
Other sensors used in agriculture

Sensor Function

Mechanical sensor Soil compaction measurement

Electrochemical sensor pH and soil nutrient content estimation

Dielectric (soil moisture) sensor Soil moisture measurement

Airflow sensor Soil air permeability measurement

Weather station Air temperature, humidity, pressure, wind speed, solar radiation,
precipitation measurement

Soil thermometer Soil temperature measurement

Salinity meter Salinity determination in soil (NaCl level)

Yield monitoring sensor Yield weight estimation in a specific place of the field (connected to crop
harvesting vehicles)

GPS Determinates location and is used with some of the sensors mentioned
above.

3. Soil IoT vs. other sensors

Many of the soil mentioned above sensors are used in IoT systems (electrochemical, dielectric, airflow, salinity
meter, and others). The advantage of IoT is the opportunity to get information from sensors remotely and to
analyze any parameter in time and space (between different parts of the field simultaneously). However, to create
the IoT system, farmer needs not only the sensor itself but also to take care of data transfer and power. Also, to
get information about a big field, more than one sensor may be needed and a farmer should be careful when
any machinery goes into the area.
4. Connected to machinery sensors vs. not
Some sensors are used only when connected to machinery (optical sensors and UAV, yield monitor sensor and
crop harvesting vehicle). Several types of sensors are not used connected to the machinery, but information
obtained from them can be loaded in the onboard computer of farm machinery to apply products according to
non-uniform distribution of the parameter in the field.
Feature analysis
Our current competitors vary in the number of the area they are servicing.
22
 Feature Analysis

FieldView
Prospera

Gamaya
Sensilize

Farmers

AgriEye
Taranis

Cropio
Edge
Product Feature

Satellite imaging ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Drone imaging ✓ ✓ – ✓ – ✓ ✓ –

3D Thermal mapping ✓ ✓ – – – ✓ ✓ –

Drone-based sensor M M – M – H, M, R H –

Field zoning and problem area ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

identification

NDVI Images ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Insects and disease detection ✓ ✓ – ✓ – ✓ ✓ –

Weeds early detection ✓ ✓ – ✓ – ✓ ✓ –

Nutrient calculation ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Variable-rate technology ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Notification and alert system ✓ ✓ ✓ – ✓ ✓ ✓ ✓

Soil tests ✓ ✓ ✓ – ✓ ✓ – –

On-farm leaf analysis ✓ – – – – – – –

On-farm spraying by UAV with nutrition ✓ – – – – – – –

mix

On-farm weather stations ✓ ✓ ✓ ✓ – ✓ – –

In-field IoT sensors ✓ ✓ ✓ ✓ – ✓ – –

Local teams of experts ✓ ✓ ✓ ✓ – ✓ ✓ –

Analytics platform ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Harvest forecast ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Field scouting using Navigation App ✓ ✓ – – ✓ – – ✓

Fleet management system – – ✓ – ✓ – – ✓

Note. Multispectral – M, Hyperspectral – H, RGB - R

To develop its competitive edges, Sensilize plans to adopt a strategy based on several vital factors:
 Considerable R&D lead-time – The core technology for computerized telecom is the fruit of years of
research by top-notch technologists, and combines inter-disciplinary approaches. Such substantial time
is needed to develop competitive technology. We intend to maintain and even increase, this lead-time
by continuously improving and adding technology. The Company plans an exceptionally high R&D rate
at 15-25% of its revenues.

23
 Patents – Sensilize already applied for two patents covering basic concepts of its system and technology.
We plan to continue to support the current patents, and apply for more patents covering the various
faces of the Company. Other parts of the work are protected as trade secrets.

24
ORGANIZATION AND MANAGEMENT
Organizational Structure
Sensilize has a functional organizational structure. The advantage of this structure for us is that our employees
are grouped by skill sets and functions, allowing them to focus their collective energies on executing their roles
as a department.

Management Team Members and their Background

The team will be led by xxxx, who will be responsible for strategy execution and business development as well as
overall leadership and oversight of the operations. The core team is presented in the table below.

Team Member Experience Brought to Sensilize Role in Sensilize

Andrey YYYYY has deep design and planning of He is responsible for overall design,
software technologies and experience scaling development, deployment and providing
platforms globally; has extensive technology support thereafter
management abilities for managing large
tech teams in different locations

Ronen ZZZZZ is experienced in system architecture Responsible for business development,

and machine learning; good industry customer work-sessions, new data sources,
knowledge and B&FI pains and new territories

Gidi, Lior AAAAA is a seasoned software engineer with Responsible for managing the product
extensive management expertise in Product development including strategy & vision,
Management. road map, product marketing research and
innovation, focused on data-driven
products.

Pavel BBBBB brings management experience from Responsible for day to day management of
one of the world’s largest billing company’s the technology team of the Project using
where she was overseeing R&D teams and agile scum CI/CD process
vast experience running Agile -Scrum
processes,

25
Team Member Experience Brought to Sensilize Role in Sensilize

AgroTech CCCCC bring extensive compliance and Head of Compliance and GDPR
Team regulatory experience, at XXXX where she has
Responsible for overseeing that processes
successfully lead XXXX ISO 27001
and controls are followed according to
certification as well as GDPR compliance
manuals to maintain compliance and
regulatory requirements across various
countries

DDDDD has over ten years of experience Responsible for the physical design and the
managing virtual deployments and network design and deployment of the
networking solutions for financial institutes. Product for customers on a private cloud-
based hosting environment

EEEEE has over seven years’ experience as a Responsible for managing the
Project/Product Manager. implementation of the project with new
customers

FFFFF has over 20 years of hands-on and Responsible for product QA testing to ensure
management of QA (quality assurance) and quality delivery of the product and at the
QA automation. same time locating any issues that may arise
while the product is live

26
OPERATING PLAN
Key Operational Processes
Our key operational processes are as follows:
1. R&D including the development of new crops
The R&D group will be responsible for developing amending algorithms for new plants, improving existing ones,
checking new cameras, etc.
2. Software development
We are currently developing SaaS and AI products in Ukraine. All of the software packages would be installed
on Amazon servers and would receive maintenance from there.
3. Manufacturing the Robin Eye multispectral sensor
The camera is a proprietary design of Sensilize and is custom built per application. The components that the
camera is made of are COTS2 that are integrated into a multispectral camera. The major blocks of the camera
are (including the manufacture of each block):
 Board
 Detectors
 Optics
 Filters
 Pyrometer
 Case – specially manufactured for this project
 Battery & Storage
The production cost of the sensor is $13,000 per unit.
4. Conducting marketing activities to attract the target audience
All marketing activities are aimed at addressing two potential target groups, agricultural distributors and service
providers (e.g., UAV operator) as well as customers (e.g., farmers). The marketing activities are aimed at adding
to Sensilize “community” service providers and agricultural dealers that would operate and market the service to
the end user (i.e., the farmer). Regarding customers, marketing would be held in trade shows, through the web
and specialized journals as well as through direct sales channel. An end user that would contact Sensilize would
sign in as a user and become a member of the Sensilize “community.” After signing in as a member of Sensilize’s
“community,” the system would assign the end user to a service provider that would operate/acquire the images
for him.
5. Establishing local partners for UAV flights, soil and leaf analyses
We are in the process of finding capable local partners across our target countries. We intend to use them to
bring competences that we do not have in our Company such as UAV & drone flights, soil, and leaf analysis.

Country Potential Distributors for Flights

Germany DrohnenService Pro, Agrolab

France Sunbirds, Soil lab test xxx

Italy Drone operator xxx, Soil lab test xxx

2
Commercial off-the-shelf
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 Country Potential Distributors for Flights

Poland FlyTech UAV, Soil lab test xxx

Hungary Agrocares

Ukraine SmartDrones, SmartFarming

Belarus n/a

Israel Drone operator xxx, Soil lab test xxx

We are to contact Smart farming to discuss the potential partnership in Ukraine.

Integrator Description Geographical Presence Prices Clients

A full range of The local player in Complex soil analysis – Large agroholdings, e.g.,
precision farming Ukraine $7/ha Astarta-Kiev (250k ha),
services, in UkrLandFarming (570k
Crop condition
Smart farming particular, the ha), IMC (130k ha)
monitoring by drones –
use of unmanned
$0.7/ha per flight Investment funds, banks
technologies and
and insurance companies,
processing of Measuring field by drones
consultants and
cartographic – $1/ha per flight
government agencies
information.

Once the service provider or agricultural dealer is convinced by the abilities of the product, he will undertake a
commitment to acquire a minimal area per year. Every service provider will have the exclusive rights to fly in a
specific area. At this point, he will be transferred to Sensilize’s operational activities.
The operational activities for the service provider rely on the following assumptions:
 To fly a system, one should have a UAV pilot license by the local aviation authority.
 Sensilize will not deal with the training and certification of UAV pilots.
 Sensilize, together with the drone subcontractor, would license the service provider a system to fly over a
specific area. The costs associated with licensing will be paid by Sensilize.
Once the service provider is certified by the aviation authority to fly a UAV, the process is as follows:
 Training of the UAV operator to fly and operate Sensilize chosen airframe. This procedure would be done
once; following this course or training, he will receive from the system manufacturer certification to fly
the system (UAV).
 Transferring the system to the service provider. The hardware that the service provider would receive
would consist of:
o Sensilize modified DJI Matrice 600, Skif RTK, DJI Agras MG-1S,
o Sensilize Multispectral camera,
o Computer/device to monitor the UAV,
o Battery charger,
o Maintenance kit (spare batteries, memories, propellers, etc…).
 Assigning to the service provider a user in Sensilize servers.
At this point, the service provider is set to go and can start to acquire images. He would receive a regular payment
per area that he acquired using his system so that the larger the area he acquires, the higher payment he would
receive from Sensilize. The service provider could, and should, contact and market Sensilize service to end users
(i.e., framers & land managers).

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Regularly, the service provider would receive in advance (a week ahead) a schedule for the area to be acquired.
The system would let the service provider propose changes in the schedule. Alteration in the program can be
made up to 24 hours before the images are being acquired.
After the acquisition, the images will be transferred to Sensilize for interpretation by AI and group of experts. The
service provider cannot see the pictures that he acquired – they are the property of the end user. The end user
can permit any member of the Sensilize community to see his images and interpretations. At the end of the month,
the service provider would be paid by Sensilize for the services that he did in the last month (based on the total
area acquired).
6. Establishing exclusive distribution
The general terms of our exclusive distribution agreement are as follows:
 The distribution agreement is signed between precision agriculture integrator in [country] for exclusive
rights to sell Sensilize’s patented technologies for three years, with extension for two additional years,
in that market.
 There is an ability to include other Sensilize’s patented technologies and extend this exclusivity to
other geographic markets.
 The exclusivity of the distribution agreement is based on the achievement of minimum sales targets
over five years totaling US$[xx] million for Sensilize LLC.
7. Creating and maintaining partnerships with suppliers of weather stations, soil moisture and ground
sensors

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FINANCIAL ANALYSIS
Sensilize’s 7-Year Financial Plan comprises 24 months (2019—2021) of the pre-launch phase, followed by five
years (2021—2025) of commercial activities. During this period, we aim to reach the following financial goals:
 Market share – 0.4% of TAM (2021) to 3.8% of TAM (2025)
 Annual revenues – € 3.1M (2021) to € 51.6M (2025)
 Cumulative revenues – € 115.6 M (2025)
 Net profit margin – 17.5% (2025)
 Breakeven point – 2022
 A number of employees – 200 in 2025, located in Europe and other offices worldwide.

Pre-launch Costs
The pre-launch phase is scheduled for a duration of 24 months, with a total effort of 252 person-months (PMs).
The twenty-nine PMs are allocated for the project management. Over 15 staff members will contribute to the
project (11 FTE) during this period, while we will hire 3-5 new employees for the tasks. The total costs of Sensilize
amount to € 3,260K with a requested EU contribution of € 2,280K. Other direct costs of € 340K have been
calculated, taking into account: translation, certification, beta testing agreements and users consent letters,
regulation consultancy, international travel expenses based on € 2,000 per travel (visiting stakeholders, running
trials, potential partners, participating in conferences, and board meetings), audit costs of € 3,500 and expenses
for marketing materials, trade fair participation and road-shows. Total Other Direct Cost is 14% of the project’s
Direct Personnel Cost.
The most substantial part of the efforts (45%) is allocated to technology innovation activities, while 44% of the
PMs are planned for performing market replication and commercialization activities. The personnel costs are
calculated based on a person month rate of € 9,000/month. This is our average person rate for interdisciplinary
teams and reflects the as-is situation in 2016 (actual costs and due to Euro devaluation). The price has been
calculated based on proper internal procedures, annually approved by external financial auditors.

Sales Projections
In the first two years after the completion of field trials, we plan to focus on establishing sales networks and
displaying capability, with resulting sales activity increase in years three, four, and five. Regarding our main
markets, we expect to grow our penetration rate from 5% in 2021 to 20% by 2025 in France and Germany as
far as from 6% in 2021 to 24% by 2025 in Ukraine.
Market Penetration – Commercial Phase

2021 2022 2023 2024 2025

60%
50%
50%

40% 35%

30% 24% 24% 24%

20% 20%
20% 15%

10%

0%
Germany France Italy Poland Hungary Ukraine Belarus Israel

Note. Market penetration refers to the successful selling of Sensilize’s products or services in the target market. It is measured as a
percentage of the number of innovative large agricultural enterprises in each country.

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Basing on the market penetration, we project the Company’s revenue to reach € 51.6 million in 2025. France,
Germany, and Ukraine together are predicted to account for 88% of the total revenue. The underlying
assumptions in our forecast are as follows:
 The Company`s average coverage of a client’s land bank will reach from 10% to 60% in the 3rd year
of partnership with a farmer.
 CAGR of the TAM is decomposed as a 5-percent increase of in the revenue per hectare times an 8-
percent rise in the adoption rate.
 Customer churn rate is 20%, an industry benchmark.
 Our target segment grows only the Company’s operational crops.
Sales Projections – Commercial Phase

Germany France Italy Poland Hungary Ukraine Belarus Israel

€ 51,622,448
550,412
701,950
12,591,361

1,655,489
€ 31,704,868 2,329,315
770,334

€ 19,328,261 22,066,214

€ 9,811,138

€ 3,139,227 10,957,374

2021 2022 2023 2024 2025

Operating land size and a number of clients by countries are represented in Appendix A and Appendix B,
respectively.

Pro Forma Income Statement

We build the Company’s pro forma income statement on the following assumptions:
 Cost of Goods Sold (COGS) – We estimate COGS to reach 30% of revenues, including material (mostly
electronics components and systems), labor and royalties.
 Research and Development (R&D) – During the two years H2020 plan, according to our detailed
workforce. During the commercial phase, it is planned for 15-25% of total revenues based on standards.
R&D activities are expected to design the future product and services required for keeping the company’s
growth. The proposed R&D investment will contribute to the potential increase in R&D personnel.
 Sales and Marketing (S&M) – Once reaching commercial phase, S&M budget is calculated as the number
of new clients acquired times customer acquisition costs.
 General and administrative (G&A) – During the two years H2020 plan, according to our detailed
workforce. During the commercial phase, it is planned as about 8% of total revenues.
 Income Taxes – The tax rate of 23% is assumed, and tax loss carryforward is applied.
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 Pro Forma Income Statement – Commercial Phase
Sensilize Ltd
For 2021 through 2025
(all numbers in € '000s)
2021 2022 2023 2024 2025

Revenue 3,139 9,811 19,328 31,705 51,622

Cost of goods sold (942) (2,943) (5,798) (9,511) (15,487)

Gross profit 2,197 6,868 13,530 22,193 36,136

Operating expenses:

R&D expenditure (785) (1,962) (2,899) (4,756) (7,743)

Sales and marketing expenses (4,245) (3,600) (5,214) (8,085) (12,547)

General and administrative expenses (251) (785) (1,546) (2,536) (4,130)

Total operating expenses (5,281) (6,347) (9,660) (15,377) (24,420)

Net income before tax (3,083) 520 3,870 6,816 11,715

Income tax expenses - - (301) (1,568) (2,695)

Net income/loss (3,083) 520 3,569 5,248 9,021

A significant part of the profit obtained by the Company in the period 2023-2025 will be re-invested in the
further market expansion and the search for new partners. New product developments are expected for product
adaptation to local markets, interfacing to additional adjacent systems and for accessing our secondary market.
The sales team will be enlarged to support the distribution network in remote countries. Investment in
manufacturing and logistics is also considered. Overall, we plan to re-invest 90% of the projected net profit
attributable to shareholders each year to continue boosting the product sales expansion and improving its value
proposition.

Funding Requirements
Along with € 2,280K (70%3 of € 3,260K) required for the pre-launch phase, Sensilize estimates its further
investment needs at € 3,183 million. Firstly, due to our marketing and sales efforts at the beginning of the market
penetration, the Company has to cover around € 3,083K of net losses in 2021. Secondly, we are to maintain
the minimum cash balance at € 100K. To ensure the subsequent financing of the Company, we plan to
participate in the next investment rounds.

3
There is already a commitment by current investors to finance the remaining 30% of the pre-launch phase.
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APPENDICES AND EXHIBITS
Appendix A
Operating land size by countries, in hectares

Country 2021 2022 2023 2024 2025

Germany 14,203 40,616 74,207 113,200 173,049

France 28,597 81,796 149,389 228,144 348,490

Italy - 1,506 4,582 9,138 15,642

Poland - 4,540 13,847 27,569 47,297

Hungary - 3,796 12,102 25,566 47,061

Ukraine 29,365 84,318 153,511 234,230 357,938

Belarus 2,342 2,342 2,342 2,342 2,342

Israel 299 879 1,615 2,568 4,602

Total operating land size 74,806 219,794 411,595 642,756 996,421

Appendix B
Number of clients by countries

Country 2021 2022 2023 2024 2025

Germany 434 662 1,012 1,545 2,360

France 1,459 2,228 3,403 5,197 7,938

Italy - 79 135 231 397

Poland - 136 233 399 684

Hungary - 87 161 297 549

Ukraine 62 95 145 221 337

Belarus 3 5 9 15 25

Israel 5 8 13 20 33

Total number of clients 1,962 3,299 5,109 7,926 12,323

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