Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (August 2021)
25 slides from Ecosynthetix's investor presentation, August 2021
Slide 1: Ecosynthetix Inc Investor Presentation Summer 2021
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Summer 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this MD&A constitute forward-looking statements. All statements other than statements of Impact of COVID – 19 historical fact may be forward-looking statements. These statements relate to, but are not limited to, future events or future The
Slide 3: Health & Safety of Our Homes and Workplaces
HEALTH & SAFETY OF OUR HOMES AND WORKPLACES ECOSYNTHETIX INC. 3
Slide 4: 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. 4
Slide 5: Essential Building Block for Biopolymer Platform
BIOPOLYMER PLATFORM ESSENTIAL COST STABLE COMMERCIALLY VIABLE BUILDING NATURALLY DERIVED SAFE VERSATILE BLOCK FOR FULLY SCALED LOW CARBON FOOTPRINT PROGRESS PURPOSE DRIVEN INNOVATION ECOSYNTHETIX INC. 5
Slide 6: Our Platform's Potential
OUR PLATFORM’s DOZENS OF SECTORS: 100’s OF PRODUCTS: potential: Essential Building Block for Progress PACKAGING MINING FURNITURE ONE INNOVATION: CONSTRUCTION PAPER AGRICULTURE TRANSPORTATION FOOD HEALTHCARE WASTE PERSONAL BUILDING MANAGMENT CARE MATERIALS ECOSYNTHETIX INC. 6
Slide 7: Impact of Our Diversification Strategy Starting to Grow
IMPACT OF OUR DIVERSIFICATION STRATEGY STARTING TO GROW 1 PERSONAL CARE hair care OUR MULTIPLE SHOTS ON GOAL COMMERCIAL PAPER & PACKAGING label adhesives STRATEGY 1) WOOD COMPOSITES 2) PERSONAL CARE PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floor
Slide 8: The Accelerating Pace of Change: Net-Zero Commitments
THE PACE OF CHANGE Nestlé redoubles efforts to combat climate change ….taking measures to halve its emissions by 2030 and achieve net zero by 2050 ACCELERATING December 3, 2020 PepsiCo Doubles Down on Climate Goal and Pledges Net-Zero Emissions by 2040 EXPLOSION …targeting a reduction of absolute GH
Slide 9: IKEA Climate Goal Targeting Bio-Based Glues
The overall goal is, by 2030, Materials The main identified movements needed are in to reduce greenhouse gas emissions bio-based glues for our wood-based by more than the IKEA value chain products (fossil-based glue represents 6% emits, while growing the IKEA of the total IKEA climate footprint), bu
Slide 10: Impact of Our Biopolymers
IMPACT OF OUR BIOPOLYMERS LOWERING GHG EMISSIONS FOR CUSTOMERS TOTAL IMPACT SINCE INCEPTION 67,600 TO HELP ACHIEVE THEIR ESG TARGETS GHG emissions reduction 5% 278M pounds of biopolymer production since inception eliminated + the equivalent greenhouse gas emissions from 67,600 passenger vehicles1 ou
Slide 11: 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 Latex $4B styrene-butadiene latex market Polyvinylpyrrolidone $350M hair fixative binder market ECOSYNTHETIX INC. 11
Slide 12: Products Resonating
PRODUCTS resonating: Essential Building Block for Progress LEADING GLOBAL COMMERCIALLY RETAILER VIABLE VERSATILE COST STABLE FULLY SCALED SAFE LEADING GLOBAL CHEMICAL LOW CARBON NATURALLY CO FOOTPRINT DERIVED ECOSYNTHETIX INC. 12
Slide 13: Roadmap
ROADMAP Accelerating the utility of WOOD COMPOSITE PERSONAL CARE MARKET: our platform DISCOVERY PAPER MARKET MARKET: SWISS KONO GLOBAL CHEMICAL CO biopolymer, by partnering with PATENTS REVENUES CASH-FLOW WOOD COMPOSITE POSITIVE RETAILER industry leaders with the market reach/access to make the bigg
Slide 14: 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. 14
Slide 15: Formaldehyde Recognized as a Human Carcinogen
FORMALDEHYDE RECOGNIZED AS A HUMAN CARCINOGEN Governments Restricting Industry is An industry poised for change Usage & Introducing Creating Tougher Regulation Standards Expert Agencies Have Spoken Formaldehyde listed as “known to be a human carcinogen” Classified formaldehyde as a “probable human c
Slide 16: Formaldehyde Emission Standards and Regulation
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 17: DuraBind: No Added Formaldehyde
DURABIND: NO ADDED FORMALDEHYDE… NO PROBLEM! OBJECTIVE: TRANSFORM THE WOOD COMPOSITES RESIN MARKET WITH OUR PROPRIETARY, SUSTAINABLE NAF SOLUTIONS ECOSYNTHETIX INC. 17
Slide 18: DuraBind: A Co-Binder Replacing Formaldehyde Binders
DURABIND: A CO-BINDER REPLACING FORMALDEHYDE BINDERS MDI: A HIGHLY CONCENTRATED MARKET $22B Global MDI Market (~$1B wood composites resins) MDI MARKET SHARE (%) NAF OTHERS DURABIND MDI SOLUTION DOW WANHUA HUNTSMAN MDI MANUFACTURERS BASF SEARCHING FOR NEW COVESTRO ADDRESSABLE MARKETS ECOSYNTHETIX INC
Slide 19: 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 20: 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 21: Q2 Financial Summary
Q2 FINANCIAL SUMMARY USD millions (except gross margin) Q2 2021 Q2 2020 YTD 2021 YTD 2020 Net Sales $4.9 $3.1 $8.6 $7.3 Gross Profit $1.1 $0.5 $1.9 $1.6 Gross Margin 22.5% 16.6% 21.6% 22.1% Gross Margin adjusted for manufacturing depreciation 26.3% 23.6% 26.2% 27.2% Adjusted EBITDA (loss) $(0.2) $(0
Slide 22: Consistent Bottomline Performance
CONSISTENT BOTTOMLINE PERFORMANCE Quarterly Adj EBITDA loss Annual Cash Flows from (used in) Operations (USD millions) (USD millions) YTD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 2016 2018 2019 2020 2021 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 $2.0
Slide 23: #1 Priority: Retailers Pulling Supply Chain Toward Green Ingredients
RETAILERS PULLING SUPPLY CHAIN TOWARD GREEN INGREDIENTS GREAT PARTNERS ENGAGED #1 PRIORITY: STRATEGIC WINS IN WOOD COMPOSITES & PERSONAL CARE MULTIPLE SHOTS ON GOAL TO SUPPORT COMMERCIAL SUCCESS ECOSYNTHETIX INC. 23
Slide 24: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 25: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 57.3M Market Capitalization (as at July 30, 2021) CDN $335M Net Debt Nil Cash Balance (as at Jun 30, 2021) US$41.2M / C$51.4M ECOSYNTHETIX INC. 25