Slide 1: Ecosynthetix Inc Investor Presentation Spring 2025
ECOSYNTHETIX INC Investor Presentation Spring 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this MD&A constitute forward-looking statements. All statements other than demand; credit and concentration risk associated with cash and cash equivalents as well as accounts receivable; the risk of statements of historical fact may be forwa
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 Target Markets
OUR TARGET MARKETS 1 PERSONAL CARE hair care 1) WOOD COMPOSITES 2) PERSONAL CARE 3) PAPER, TISSUE, PACKAGING PAPER & PACKAGING label adhesives AND PULP PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floors solutions & construction ECOSYNTHETIX INC. 4
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+ paper, tissue, packaging and pulp markets Polyvinylpyrrolidone $460M hair fixative binder market ECOSYNTHETIX INC. 6
Slide 7: Pulp-based products: improving strength and reducing costs
PULP-BASED PRODUCTS: Improving strength and delivering cost reductions through use of lower cost fibers 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 prod
Slide 8: Top global forestry and paper companies and pulp companies
TOP 15 GLOBAL FORESTRY TOP 10 GLOBAL PULP & PAPER COMPANIES COMPANIES (Based on revenue (USD billions)) (Market pulp capacity (tonnes millions)) 0 5 10 15 20 0 5 10 15 International Paper Suzano WestRock APP + PE + Domtar Oji Holdings Smurfit Kappa APRIL + Bracell Stora Enso UPM UPM Arauco Nine Drag
Slide 9: Commercial in five tissue mills globally
COMMERCIAL IN FIVE TISSUE MILLS GLOBALLY, INCLUDING A TOP 15 PLAYER Top Global Tissue Producers Capacity Shares of Main (Million tonnes per annum) Western Europe Tissue Suppliers Source: Q4 2022, WTBM 0 1 2 3 4 5 Essity All Others, 23.5 Essity, 26.1 APP/Sinar Mas Kimerly-Clark Georgia-Pacific Naviga
Slide 10: Tissue case study
TISSUE CASE STUDY: Toilet tissue made from 100% Virgin Fiber and SurfLock increased strength and reduced weight Mill Objectives: Increase tensile strength 30% No negative impact on softness increase in and dusting tissue strength Additional Benefits: Reduced breaks » Increased speed 5%+ Incr
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: Wood composites: DuraBind the clear incumbent in biobased glue
WOOD COMPOSITES: DuraBind the clear incumbent in the biobased glue market Carbon footprint and formaldehyde reductions for wood glues with RECYCLING sustainable solutions that deliver RATES FIBRE performance and LENGTH & competitive STRENGTH economics ECOSYNTHETIX INC. 12
Slide 13: IKEA driving increased awareness of bio-based glues
IKEA DRIVING INCREASED AWARENESS OF BIO-BASED GLUES Source: https://www.ikea.com/global/en/our-business/sustainability/our-circular-agenda/ 13
Slide 14: IKEA: consistent history of innovative solutions
IKEA: A CONSISTENT HISTORY OF IKEA’S AMBITIOUS PLANS FOR INNOVATIVE SOLUTIONS TO REDUCE BIO-BASED GLUE BANNED AND RESTRICTED CHEMICALS Year Compound Strategy Today Formaldehyde emission levels ≤ natural wood The Kazlų Rūda factory in Lithuania became 2023 Polyvinyl Chloride (PVC) Phase out the first
Slide 15: Massive market potential for a no added formaldehyde leader
MASSIVE MARKET POTENTIAL FOR A NO ADDED FORMALDEHYDE LEADER $15B Global Wood Resin Market Oriented Medium Density Particle Board Strand Board Fiberboard No Added Formaldehyde Market Share by Application Source: Transparency Market Research Report ECOSYNTHETIX INC. 15
Slide 16: Independent third-party testing of wood composite with DuraBind
0.005 ppm Independent third-party testing of wood composite manufactured with DuraBind Source: SWISS KRONO BE.YOND Special Edition (https://www.swisskrono.com/ch-en/products/interiors/beyond-special-edition/#/) 16 16
Slide 17: Swiss Krono
SWISS KRONO: Continuing to invest in new applications and marketing of BE.YOND Global top 10 particleboard company Commercial with Durabind since 2019 – small volumes Established value proposition and extensive marketing materials including launch of new products in 2024 – Barn wood Upside i
Slide 18: 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 19: Progress on our all-natural polymers for personal care
PROGRESS ON OUR ALL-NATURAL POLYMERS FOR PERSONAL CARE DERIVED FROM NATURE, BACKED BY SCIENCE Dow Chemical is our distribution STYLED with MaizeCare Style Polymer offer 5 bio-based styling products designed to address the key curly hair concerns. Whether its control, hold, boost, tame or define curl
Slide 20: Dow introduces MaizeCare skincare and color cosmetics
DOW INTRODUCES MAIZECARE SKINCARE & COLOR COSMETICS 20
Slide 21: Our biopolymers enable significant carbon footprint reductions
OUR BIOPOLYMERS ENABLE SIGNIFICANT CARBON FOOTPRINT REDUCTIONS CO2 REDUCTION BENEFITS FROM ECOSYNTHETIX BIOPOLYMERS VERSUS INCUMBENTS WITH CARBON UPTAKE (KILOGRAMS CO2 EQUIVALENT PER KILOGRAM OF DRY PRODUCT)1 135 %IMPROVEMENT 97% IMPROVEMENT 80% IMPROVEMENT 105 % IMPROVEMENT 4.2 125 % 65% 2.7 2.8 14
Slide 22: Best 50 Corporate Citizens in Canada; EcoVadis Platinum
Best 50 Corporate Citizens in Canada Platinum EcoSynthetix ranked #34 overall by Corporate Knights in 2024 sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 125,000 companies rated receive Platinum ECOSYNTHETIX INC. 22
Slide 23: Building to $100M+ in sales
$100M BUILDING TO SALES $100M+ IN SALES ACHIEVABLE WITH EXISTING MOMENTUM E ACROSS END MARKETS D MULTIPLE NEW LINES IN WOOD PARTNERS COMPOSITES AND PULP, TISSUE / PACKAGING C NEW WOOD COMPOSITES MANUFACTURERS WITHIN RETAILER’S SUPPLY CHAIN LEADING LEADING GLOBAL GLOBAL TISSUE / B NEW PULP, TISSUE /
Slide 24: Challenging macro market impacted demand
CHALLENGING MACRO MARKET IMPACTED DEMAND (USD MILLIONS) Net Sales Adj EBITDA (loss) Cash provided by operating activities $17.9 Q1 Q1 LTM LTM 2024 2025 Q1 '24 Q1 '25 $14.3 $1.1 $1.1 $(0.5) $(0.5) 25% $(0.8) (89)% (85)% (14)% $4.7 $4.0 66% $0.1 $0.2 $(2.5) Q1 Q1 LTM LTM Q1 Q1 LTM LTM 2024 2025 Q1 '24
Slide 25: Q1 2025 Financial Summary
Q1 2025 FINANCIAL SUMMARY USD millions (except gross margin) Q1 2025 Q1 2024 Net Sales $4.0 $4.7 Gross Profit $0.9 $1.1 Gross Margin 21.5% 24.2% Gross Margin adjusted for manufacturing depreciation 27.2% 29.2% Adjusted EBITDA1 (loss) $(0.5) $(0.5) US$31.4 MILLION IN CASH AND SHORT-TERM INVESTMENTS (
Slide 26: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 58.4M Market Capitalization (as at May 9, 2025) C$234M Net Debt Nil Cash Balance & Short-Term Investments (as at Mar. 31, 2025) US$31.4M / C$44.9M ECOSYNTHETIX INC. 26
Slide 27: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS