Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (March 2024)
24 slides from Ecosynthetix's investor presentation, March 2024
Slide 1: Ecosynthetix Inc Investor Presentation Winter 2024
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Winter 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other than well as accounts receivable; the risk of volatility in global financial conditions, as well as significant decline in general economic statements of historica
Slide 3: What we do: Polymers from green chemistry
what we do: Patented process: POLYMERS FROM GREEN CHEMISTRY Proprietary continuous manufacturing process Patented Formula: Sustainable feedstocks + chemicals Patented product: Engineered biopolymer Proprietary engineering: Engineered solutions ECOSYNTHETIX INC. 3
Slide 4: Our Diversification Strategy
OUR DIVERSIFICATION STRATEGY 1 PERSONAL CARE hair care 1) WOOD COMPOSITES 2) PERSONAL CARE PAPER & PACKAGING 3) PAPER, TISSUE, PACKAGING label adhesives AND PULP PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floors solutions & construction ECOSYNTHET
Slide 5: Products resonating: Essential building block for progress
PRODUCTS resonating: Essential Building Block for Progress LEADING GLOBAL MANUFACTURER/ COMMERCIALLY RETAILER VIABLE VERSATILE COST STABLE FULLY SCALED SAFE LEADING GLOBAL TISSUE / PAPERBOARD MANUFACTURERS LOW CARBON NATURALLY FOOTPRINT DERIVED ECOSYNTHETIX INC. 5
Slide 6: Total Addressable Markets: One platform, three products
Coated paper & paperboard market Urea formaldehyde TOTAL ADDRESSABLE MARKETS today’s potential: $15B wood resin market ONE PLATFORM – THREE PRODUCTS SB/SA Latex & Strength Aids $1B+ paper, tissue, packaging and pulp markets Polyvinylpyrrolidone $460M hair fixative binder market ECOSYNTHETIX INC. 6
Slide 7: Urea Formaldehyde: A hazardous ingredient in wood composite binders
UREA FORMALDEHYDE: A HAZARDOUS INGREDIENT IN WOOD COMPOSITE BINDERS U F U F THE SEARCH FOR A VIABLE ALTERNATIVE WITHOUT FORMALDEHYDE (PERFORMANCE + PRICE) ECOSYNTHETIX INC. 7
Slide 8: Wood Composites: DuraBind the clear incumbent in biobased glue
WOOD COMPOSITES: DuraBind the clear incumbent in the biobased glue market Carbon footprint and formaldehyde reductions for wood glues with RECYCLING sustainable solutions that deliver RATES FIBRE performance and LENGTH & competitive STRENGTH economics ECOSYNTHETIX INC. 8
Slide 9: IKEA first factory to use bio-based glue
A milestone that will impact our future footprint The Kazlų Rūda factory in Lithuania became the is the introduction of bio-based glue in one of first IKEA Industry factory to use bio-based glue. our board factories. Today, 5% of the climate This is an important first step in the work to reduce foot
Slide 10: Massive market potential for a no added formaldehyde leader
MASSIVE MARKET POTENTIAL FOR A NO ADDED FORMALDEHYDE LEADER $15B Global Wood Resin Market Oriented Medium Density Particle Board Strand Board Fiberboard No Added Formaldehyde Market Share by Application Source: Transparency Market Research Report ECOSYNTHETIX INC. 10
Slide 11: Emission standards and independent testing of DuraBind panels
rical considered highest achievable New emission legislation in Germany from 01.07202@ Californian / USA emission standard European industry standard a 1920's "Limits related to EN 717-1 0.005 ppm Independent third party testing of wood composite KK manufactured with DuraBind 4 5. CARB II / EPA TSCA
Slide 12: DuraBind: Performance for mass adoption
DURABIND: PERFORMANCE FOR MASS ADOPTION 1,000+ TOP 15 GLOBAL WOOD-BASED PANEL MANUFACTURERS (Based on production capacity1 (million m3) serviceable addressable wood-panel lines globally 3 6 9 12 15 18 21 24 Kronospan Arauco* West Fraser Egger Swiss Krono Kastamonu Georgia-Pacific Louisiana-Pacific P
Slide 13: Pulp-based products: Improving strength and delivering cost reductions
PULP-BASED PRODUCTS: Improving strength and delivering cost reductions through use of lower cost fibers WHY OUR BIO-POLYMER 1) Improved strength 2) Increased low-cost filler content 3) No negative effects on RECYCLING existing processing RATES 4) Minimum sheet breaks FIBRE LENGTH & 5) Increased prod
Slide 14: Tissue Case Study
TISSUE CASE STUDY: Toilet tissue made from 100% Virgin Fiber and SurfLock increased strength and reduced weight Mill Objectives: Increase tensile strength 30% No negative impact on softness increase in and dusting tissue strength Additional Benefits: Reduced breaks » Increased speed 5%+ Incr
Slide 15: Higher strength pulp products
HIGHER STRENGTH PULP PROUDCTS Replace long and other short fibers Increase the required mechanical strengths Eucalyptus fiber delivers Reduce paper grammage high tensile and superior while maintaining the required physical properties mechanical strengths and to your products saving energy in the sam
Slide 16: Top global forestry & paper and pulp companies
TOP 15 GLOBAL FORESTRY TOP 10 GLOBAL PULP & PAPER COMPANIES COMPANIES (Based on revenue (USD billions)) (Market pulp capacity (tonnes millions)) 0 5 10 15 20 0 4 8 12 International Paper Suzano WestRock APP + PE + Domtar Oji Holdings Smurfit Kappa APRIL + Bracell Stora Enso UPM UPM Arauco Nine Drago
Slide 17: Progress on our all-natural polymers for personal care
PROGRESS ON OUR ALL-NATURAL POLYMERS FOR PERSONAL CARE “…committed to bring highly Exclusive partnership with Dow for our performing and sustainable all-natural ingredients in personal care ingredients to the market.” Dow press release, Sept. 6, ‘22 Collaboration helps accelerate Dow’s commitment to
Slide 18: Dow sells Ecosynthetix all-natural polymer as MaizeCare
DOW SELLS ECOSYNTHETIX ALL-NATURAL POLYMER AS MAIZECARE “MaizeCare Clarity Polymer offers hair care formulators the opportunity to design hair styling formulations that can meet growing consumer expectations for natural hair care products” Dow Personal Care, Personal Care Magazine, June 2022 18
Slide 19: Use of our biopolymers will avoid 1.5x of our carbon emissions by 2027
USE OF OUR BIOPOLYMERS WILL AVOID 1.5X OF OUR CARBON EMISSIONS BY 2027 1 CO2 REDUCTION BENEFITS FROM ECOSYNTHETIX BIOPOLYMERS VERSUS INCUMBANTS (KILOGRAMS CO2 EQUIVALENT PER KILOGRAM OF DRY 1 PRODUCT) 6.83 49 % IMPROVEMENT 60% IMPROVEMENT 32 % IMPROVEMENT 88 % IMPROVEMENT 2.67 3.22 2.26 1.37 1.29 1.
Slide 20: Best 50 Corporate Citizens in Canada / EcoVadis Platinum
Best 50 Corporate Citizens in Canada Platinum EcoSynthetix ranked #28 overall by Corporate Knights in 2023 sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 125,000 companies rated receive Platinum ECOSYNTHETIX INC. 20
Slide 21: Building to $100M+ in sales
$100M BUILDING TO SALES $100M+ IN SALES NEW WOOD ACHIEVABLE WITH EXISTING COMPOSITES E MANUFACTURERS WITHIN RETAILER’S SUPPLY CHAIN D PERSONAL CARE MOMENTUM PARTNERS MULTIPLE NEW C LINES IN WOOD COMPOSITES AND TISSUE / PACKAGING AND EARLY PERSONAL CARE WINS B NEW WOOD COMPOSITES & TISSUE / PACKAGING
Slide 22: Q4 & Fiscal 2023 Financial Summary
Q4 & FISCAL 2023 FINANCIAL SUMMARY USD millions (except gross margin) Q4 2023 Q4 2022 FY 2023 FY 2022 Net Sales $2.8 $5.6 $12.7 $19.0 Gross Profit $0.5 $0.9 $2.8 $4.2 Gross Margin 16.3% 16.4% 22.0% 21.8% Gross Margin adjusted for manufacturing depreciation 21.9% 21.4% 28.9% 25.5% Adjusted EBITDA1 (l
Slide 23: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 58.6M Market Capitalization (as at Mar 8, 2024) C$280M Net Debt Nil Cash Balance & Short-Term Investments (as at Dec 31, 2023) US$33.3M / C$44.0M ECOSYNTHETIX INC. 23
Slide 24: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS