Evogene Ltd. Q4 FY2024 earnings call

• Welcomed Nir Nimrodi as new Chairman. - 2024 financial and business highlights: revenues increase due to AgPlenus-Bayer collaboration and Casterra’s seed sales; R&D and G&A expense changes. - Achievements: Evogene collaborated with Google Cloud for GenaRator AI foundation model; Casterra delivered castor seeds with improved schedule; Lavie Bio had new collaborations and product expansions; AgPlenus had collaboration milestones; Biomica’s clinical study neared completion. - 2025 targets: focus on AI-powered drug discovery, enhance ChemPass AI tech engines, create exit events for subsidiaries, support subsidiaries' fundraising.

In 2024, total revenues reached approximately $8.5 million, up from $5.6 million in 2023. The increase was mainly due to AgPlenus' revenues from its collaboration with Bayer and Casterra’s seed sales. In Q4 2024, total revenues were approximately $1.6 million, up from $0.6 million in Q4 2023, mainly due to Casterra’s seed sales. Total R&D expenses in 2024 were approximately $16.6 million, down from $20.8 million in 2023. Q4 2024 R&D expenses were approximately $3.4 million, down from $5.5 million in Q4 2023. Total G&A expenses in 2024 were approximately $7.4 million, up from $6.1 million in 2023. Revenues contribution: AgPlenus' revenue growth from Bayer collaboration and Casterra’s seed sales contributed to the overall revenue increase.

• Expected cash burn for 2025 from operations is between $6 million to $7 million, not including cash from selling subsidiaries. - Focus on creating exit events for subsidiaries to inject funds for Evogene’s activities.

• Current war between Israel, Hamas and Hezbollah and any worsening of the situation in Israel, such as further mobilizations or escalation in the northern border of Israel. - Other risks described in greater detail in Evogene's Annual Report on Form 20-F and other filings.

Q: You typically release cash burn guidance but did not do so today. What is your expected cash burn for 2025? And if you are not able to disclose, can you please explain why?

A: Our expected cash burn for 2025 from operations is expected to be between $6 million to $7 million. This amount does not include any cash that will come in from selling one or more of our subsidiaries.

Q: You describe exit efforts for your subsidiaries more today than you commonly do. How advanced are these efforts? And how many subsidiaries are under consideration for an exit?

A: I can’t disclose much about where we are standing in this process. But we are putting a lot of focus on these aspects as Nir Nimrodi and I are working on funding the company, and our subsidiaries create interest in the industry with potential for collaboration or strategic opportunities.

Q: You noted an expectation for initial sales in Brazil at Casterra in 2025. Please elaborate on, one, this expected to be from sale of seed or oil? And two, what line of business your potential customer is in, refiner, grain, processor, other?

A: This year, we are focusing on seed sales. Also, we start an activity with respect to grain sales and are talking with crushing factories in Brazil.

Q: What is the base case sales goal for Yalos spring wheat and soybeans?

A: We didn’t disclose this information. We see growing interest in spring wheat and higher enthusiasm for soybean grower use due to higher margin, but it's in the penetration period and hard to predict.

Q: How should we think about the magnitude of castor sales in 2025? Would you expect Q1 ‘25 to be the largest quarter? How long is the shelf life of castor seeds?

A: Shelf life of castor seed is a few years. Q1 2025 will be nice for Casterra but not expecting it to be the strongest quarter till end of year.

Q: What do you think the structure of the relationship between your possible joint venture partner in producing oil, 50-50? Or do they take the risk of financing and execution and we take back a royalty?

A: Currently, we take responsibility on seed production and cultivation, sell grain under offtake agreement, and risk on Casterra/Evogene is limited. It's a proof-of-concept now with plans to expand.

Q: Expense items, SG&A and R&D were lower in Q4 2024. Are these levels reflective for what we should expect in 2025? Or is there another step down?

A: What we saw in Q4 is going to present what we see in 2025 and might even have additional decline in expenses as we start a process of reducing headcount completed by Q1.