Slide 1: Ecosynthetix Inc Investor Presentation Spring 2022
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Spring 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other property; the risk of litigation; changes in government regulations and policies relating to our business; losses from hedging activities than statements of histor
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: 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 5: 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. 5
Slide 6: Expanding addressable markets in paper
EXPANDING ADDRESSABLE MARKETS IN PAPER opportunities beyond graphic paper: Graphic Specialty Packaging Tissue Paper Packaging Pulp: an input across all four applications ECOSYNTHETIX INC. 6
Slide 7: 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 8: Platinum sustainability rating awarded by EcoVadis
Platinum sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 85,000 companies rated receive Platinum ECOSYNTHETIX INC. 8
Slide 9: IKEA: glue in boards and 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 10: 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. 10
Slide 11: 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. 11
Slide 12: 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 13: Beyond particle board – just like nature intended
BE.YOND PARTICLE BOARD – JUST LIKE NATURE INTENDED Emissions no higher than a tree – so we can live indoors just like outdoors! The SWISS KRONO GROUP 13
Slide 14: Emissions testing of wood composite made 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 15: 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 16: Q1 Financial Summary
Q1 FINANCIAL SUMMARY USD millions (except gross margin) Q1 2022 Q1 2021 FY 2021 FY 2020 Net Sales $4.2 $3.7 $18.2 $13.7 Gross Profit $1.1 $0.8 $4.0 $2.7 Gross Margin 25.5% 20.5% 21.9% 20.0% Gross Margin adjusted for manufacturing depreciation 28.9% 26.0% 26.2% 26.0% Adjusted EBITDA1 (loss) $(0.2) $(
Slide 17: #1 Priority: commercial strategy
RETAILERS PULLING SUPPLY CHAIN TOWARD GREEN INGREDIENTS GREAT #1 PRIORITY: PARTNERS COMMERCIAL STRATEGY ENGAGED FOCUSED ON NEAR-TERM WINS IN GROWTH MARKETS MULTIPLE SHOTS ON GOAL TO SUPPORT COMMERCIAL SUCCESS ECOSYNTHETIX INC. 17
Slide 18: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 19: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 58.9M Market Capitalization (as at May 11, 2022) C$309M Net Debt Nil Cash Balance & Short-Term Investments (as at Mar. 31, 2022) US$39.9M / C$50.5M ECOSYNTHETIX INC. 19