Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (May 2023)
24 slides from Ecosynthetix's investor presentation, May 2023
Slide 1: Ecosynthetix Inc Investor Presentation Spring 2023
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Spring 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in presentation constitute forward-looking statements. All statements other than operating and capital cost increases; changes in the current political and regulatory environment in which we operate; the inability statements of historical fact
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 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+ pulp, paper, tissue and paperboard markets Polyvinylpyrrolidone $460M hair fixative binder market ECOSYNTHETIX INC. 6
Slide 7: Progress roadmap
PROGRESS ROADMAP Accelerating PERSONAL CARE STORA ENSO MULTIPLE TISSUE / the adoption of PAPER MARKET MARKET: DOW PACKAGING PAPERBOARD ACCOUNTS our biopolymer WOOD COMPOSITE MARKET: SWISS KRONO WOOD COMPOSITE RETAILER/MANUFACTURER FIRST TISSUE / PAPERBOARD WIN platform, across multiple markets to ma
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: IKEA climate report on bio-based glues
Going forward, we have set clear directions for the We use a significant amount of glue for many wood- materials used within the IKEA business. These based materials to hold wood components or fibres enable us to identify the critical movements in together. The glue used represents ~5% of the materi
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 third-party testing
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: SurfLock: our dry strength resin for tissue/paperboard and pulp
SURFLOCK: OUR DRY STRENGTH RESIN for tissue/paperboard & pulp markets 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 production speed STRENGTH 6) Lower fib
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 announced partnership with performing and sustainable EcoSynthetix in June 2022 ingredients to the market.” Dow press release, Sept. 6, ‘22 Dow continues to invest resources in go-to-market, new product launches and product development Attrib
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 #20 overall by Corporate Knights in 2022 sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 90,000 companies rated receive Platinum ECOSYNTHETIX INC. 20
Slide 21: $100M sales engaged with the right partners
$100M ENGAGED WITH THE SALES RIGHT PARTNERS E NEW WOOD COMPOSITES MANUFACTURERS A MULTIPLE SHOTS LEADING WITHIN RETAILER’S SUPPLY CHAIN ON GOAL STRATEGY LEADING GLOBAL GLOBAL TISSUE / MANUFACTURER/ RETAILER PAPERBOARD MANUFACTURERS D PERSONAL CARE MOMENTUM 1) EXPANDING VOLUMES WITH EXISTING C MULTIP
Slide 22: Q1 Financial Summary
Q1 FINANCIAL SUMMARY USD millions (except gross margin) Q1 2023 Q1 2022 FY 2022 FY 2021 Net Sales $3.1 $4.2 $19.0 $18.2 Gross Profit $0.6 $1.1 $4.2 $4.0 Gross Margin 20.1% 25.5% 21.8% 21.9% Gross Margin adjusted for manufacturing depreciation 32.6% 28.9% 25.5% 26.2% Adjusted EBITDA1 (loss) $(0.6) $(
Slide 23: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 24: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 59.2M Market Capitalization (as at May 8, 2023) C$173M Net Debt Nil Cash Balance & Short-Term Investments (as at Mar. 31, 2023) US$35.6M / C$47.7M ECOSYNTHETIX INC. 24