Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (February 2023)
25 slides from Ecosynthetix's investor presentation, February 2023
Slide 1: Ecosynthetix Inc Investor Presentation Winter 2023
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Winter 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other financing; the ability to acquire intellectual property; the risk of litigation; changes in government regulations and policies relating than statements of histori
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 multiple shots on goal commercial strategy
OUR MULTIPLE SHOTS ON GOAL COMMERCIAL 1 PERSONAL CARE STRATEGY hair care 1) WOOD COMPOSITES 2) PERSONAL CARE PAPER & PACKAGING label adhesives 3) PAPER, TISSUE / PAPERBOARD PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floors solutions & construction
Slide 5: Products resonating
PRODUCTS resonating: Essential Building Block for Progress LEADING GLOBAL COMMERCIALLY RETAILER VIABLE VERSATILE COST STABLE FULLY SCALED SAFE LEADING GLOBAL TISSUE / PAPERBOARD MANUFACTURER 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+ pulp, paper, tissue and paperboard markets Polyvinylpyrrolidone $460M hair fixative binder market ECOSYNTHETIX INC. 6
Slide 7: Progress roadmap
PROGRESS ROADMAP Accelerating PERSONAL CARE MARKET: STORA ENSO MULTIPLE TISSUE / the adoption of PAPER MARKET GLOBAL CHEMICAL CO PACKAGING PAPERBOARD ACCOUNTS our biopolymer WOOD COMPOSITE MARKET: SWISS KRONO WOOD COMPOSITE RETAILER FIRST TISSUE / PAPERBOARD WIN platform, across multiple markets to
Slide 8: 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. 8
Slide 9: DuraBind: bio-based, sustainable adhesives for formaldehyde reduction
DURABIND™: bio-based, sustainable adhesives for formaldehyde reduction ORIENTATED STRAND BOARD (OSB) Reducing or eliminating formaldehyde PARTICLE from wood glues RECYCLING BOARD with sustainable RATES solutions that deliver FIBRE performance and LENGTH & cost reductions STRENGTH MEDIUM DENSITY FIBE
Slide 10: Glue in IKEA boards represents 5% of its climate footprint
Wood-based Materials For many wood-based materials, we use a significant amount of glue to hold wood components or fibres together. Wood is the most used material in the IKEA Glue used in our boards represents 5% of the total IKEA climate footprint. range. It's part of our identity and Swedish That’
Slide 11: Massive market potential for a no added formaldehyde leader
MASSIVE MARKET POTENTIAL FOR A NO ADDED FORMALDEHYDE LEADER PMDI N.A. Share in OSB 22% 48% $15B Global Wood Resin Market 1987 1991 2016 Oriented Medium Density Particle Board Strand Board Fiberboard No Added Formaldehyde Market Share by Application Source: Transparency Market Research Report ECOSYNT
Slide 12: Emission standards and independent testing with DuraBind
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 13: 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 14: Our dry strength resin for tissue/paperboard and pulp markets
OUR DRY STRENGTH RESIN for tissue/paperboard & pulp markets WHY OUR BIO-POLYMER 1) Improved strength 2) No negative effects on existing processing RECYCLING 3) Minimum sheet breaks RATES 4) Increased production speed FIBRE LENGTH & 5) Lower fibre and energy costs STRENGTH 6) Proven case studies on t
Slide 15: Expanding addressable markets in paper
EXPANDING ADDRESSABLE MARKETS IN PAPER opportunities beyond graphic paper: Paper and Board Consumption (tonnes) Graphic Specialty Packaging Tissue Paper Packaging 5.7M 6.1M 31.6M 7.4M Pulp: an input across all four applications ECOSYNTHETIX INC. 15
Slide 16: Top global forestry and paper companies
TOP 15 GLOBAL FORESTRY & PAPER COMPANIES (Based on revenue (USD billions)) International Paper 0 5 10 15 20 6 WestRock Oji Holdings Commercial Smurfit Kappa accounts within leading Stora Enso UPM forestry & paper Nine Dragons Paper companies Nippon Paper Mondi $1B+ Suzano DS Smith Metsa Group CMPC S
Slide 17: MaizeCare: 100% natural origin
MAIZECARE – 100% NATURAL ORIGIN “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 17
Slide 18: Progress on personal care
PROGRESS ON PERSONAL CARE “…committed to bring highly Dow continues to invest resources in go-to-market performing and sustainable and new product launches ingredients to the market.” Two prestigious innovation awards: Dow press release, Sept. 6, ‘22 • The 2022 R&D 100 Awards recognized MaizeCare™ C
Slide 19: Ecosynthetix: a climate positive company in 2022
ECOSYNTHETIX: A CLIMATE POSITIVE COMPANY IN 2022 USE OF OUR BIOPOLYMERS WILL AVOID 1.5X OF OUR CARBON EMISSIONS BY 2027 CO2 REDUCTION BENEFITS FROM ECOSYNTHETIX BIOPOLYMERS VERSUS INCUMBANTS1 (KILOGRAMS CO2 EQUIVALENT PER KILOGRAM OF PRODUCT) 6.83 67 % IMPROVEMENT 67% IMPROVEMENT 35 - 47%IMPROVEMENT
Slide 20: Best Corporate Citizens in Canada and EcoVadis Platinum
Best 50 Corporate Citizens in Canada Platinum EcoSynthetix ranked #20 overall by Corporate Knights sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 90,000 companies rated receive Platinum ECOSYNTHETIX INC. 20
Slide 21: Corn starch availability severely impacted
INFLATIONARY PRESSURES DUE TO PANDEMIC AND CONFLICT IN UKRAINE CORN STARCH DROUGHT CONDITIONS DURING EUROPEAN 30% LESS VOLUME IN PRICING DISCONNECT AVAILABILITY SEVERELY FROM CBOT GROWING SEASON 2023 VS. 20221 IMPACTED CORN MILL STIKE IN NORTH AMERICA 1) Roquette estimate of waxy corn availability a
Slide 22: Illustrative $100M sales bio-polymer company
$100M ILLUSTRATIVE $100M SALES BIO-POLYMER COMPANY E NEW WOOD COMPOSITES MANUFACTURERS A MULTIPLE SHOTS LEADING LEADING WITHIN RETAILERS SUPPLY CHAIN ON GOAL STRATEGY GLOBAL TISSUE / GLOBAL RETAILER PAPERBOARD MANUFACTURER D PERSONAL CARE MOMENTUM 1) EXPANDING VOLUMES WITH EXISTING C MULTIPLE NEW LI
Slide 23: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 24: Corporate overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 59.3M Market Capitalization (as at Feb. 1, 2023) C$213M Net Debt Nil Cash Balance & Short-Term Investments (as at Sep. 30, 2022) US$36.9M / C$51.1M ECOSYNTHETIX INC. 24
Slide 25: Q3 Financial Summary
Q3 FINANCIAL SUMMARY USD millions (except gross margin) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net Sales $5.0 $4.7 $13.4 $13.3 Gross Profit $1.0 $1.1 $3.2 $3.0 Gross Margin 20.6% 23.5% 24.1% 22.3% Gross Margin adjusted for manufacturing depreciation 23.0% 27.8% 27.3% 26.7% Adjusted EBITDA1 (loss) $(0.1)