Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (March 2022)
18 slides from Ecosynthetix's investor presentation, March 2022
Slide 1: Ecosynthetix Inc Investor Presentation Winter 2022
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Winter 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements Impact of COVID – 19 of historical fact may be forward-looking statements. These statements relate to, but are not limited to, future events or fut
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: 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 7: EcoVadis Platinum sustainability rating
Platinum sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 85,000 companies rated receive Platinum ECOSYNTHETIX INC. 7
Slide 8: Products resonating: essential building block for progress
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. 8
Slide 9: 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 10: 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. 10
Slide 11: Be.yond particle board – Swiss Krono Group
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 11
Slide 12: Emission standards and third party 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: IKEA glue 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 14: 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 15: Q4 Financial Summary
Q4 FINANCIAL SUMMARY USD millions (except gross margin) Q4 2021 Q4 2020 FY 2021 FY 2020 Net Sales $4.9 $3.3 $18.2 $13.7 Gross Profit $1.0 $0.7 $4.0 $2.7 Gross Margin 20.7% 20.3% 21.9% 20.0% Gross Margin adjusted for manufacturing depreciation 24.8% 27.2% 26.2% 26.0% Adjusted EBITDA1 (loss) $(0.3) $(
Slide 16: #1 priority: retailers pulling supply chain toward green ingredients
RETAILERS PULLING SUPPLY CHAIN TOWARD GREEN INGREDIENTS GREAT #1 PRIORITY: STRATEGIC WINS WITH PARTNERS COMMERCIAL ACCOUNTS ENGAGED IN WOOD COMPOSITES & PERSONAL CARE MULTIPLE SHOTS ON GOAL TO SUPPORT COMMERCIAL SUCCESS ECOSYNTHETIX INC. 16
Slide 17: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 18: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 59.0M Market Capitalization (as at Mar. 4, 2022) CDN $325M Net Debt Nil Cash Balance (as at Dec. 31, 2021) US$42.2M / C$54.0M ECOSYNTHETIX INC. 18