Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (November 2022)
22 slides from Ecosynthetix's investor presentation, November 2022
Slide 1: Ecosynthetix Inc Investor Presentation Fall 2022
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Fall 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other financing; the ability to acquire intellectual property; the risk of litigation; changes in government regulations and policies relating than statements of histori
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, PACKAGING & TISSUE PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floors solutions & construction
Slide 5: 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 6: Best 50 Corporate Citizens in Canada Platinum
Best 50 Corporate Citizens in Canada Platinum EcoSynthetix ranked #20 overall by Corporate Knights sustainability rating awarded to EcoSynthetix by EcoVadis Only Top 1% of 85,000 companies rated receive Platinum ECOSYNTHETIX INC. 6
Slide 7: IKEA wood-based materials and bio-based glues
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 8: Products resonating
PRODUCTS resonating: Essential Building Block for Progress LEADING GLOBAL COMMERCIALLY RETAILER VIABLE VERSATILE COST STABLE FULLY SCALED SAFE LOW CARBON NATURALLY FOOTPRINT DERIVED ECOSYNTHETIX INC. 8
Slide 9: 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. 9
Slide 10: 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. 10
Slide 11: Our dry strength resin for the wet-end vertical
OUR DRY STRENGTH RESIN for the wet-end vertical WHY OUR BIO-POLYMER 1) Improved strength 2) No negative effects on existing processing RECYCLING 3) Minimum sheet breaks RATES 4) Increased production speed FIBRE LENGTH & 5) Lower fibre and energy costs STRENGTH 6) Proven case studies on tissue, paper
Slide 12: 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. 12
Slide 13: 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 14: DuraBind emission standards and 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 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: 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 16
Slide 17: Progress on personal care
PROGRESS ON PERSONAL CARE “…committed to bring highly Dow continues to invest resources in go-to-market performing and sustainable and new product launches ingredients to the market.” Two prestigious innovation awards: Dow press release, Sept. 6, ‘22 • The 2022 R&D 100 Awards recognized MaizeCare™ C
Slide 18: Corn starch availability severely impacted
INFLATIONARY PRESSURES DUE TO PANDEMIC AND CONFLICT IN UKRAINE CORN STARCH DROUGHT CONDITIONS DURING EUROPEAN 30% LESS VOLUME IN PRICING DISCONNECT AVAILABILITY SEVERELY FROM CBOT GROWING SEASON 2023 VS. 20221 IMPACTED CORN MILL STIKE IN NORTH AMERICA 1) Roquette estimate of waxy corn availability a
Slide 19: Q3 Financial Summary
Q3 FINANCIAL SUMMARY USD millions (except gross margin) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net Sales $5.0 $4.7 $13.4 $13.3 Gross Profit $1.0 $1.1 $3.2 $3.0 Gross Margin 20.6% 23.5% 24.1% 22.3% Gross Margin adjusted for manufacturing depreciation 23.0% 27.8% 27.3% 26.7% Adjusted EBITDA1 (loss) $(0.1)
Slide 20: Retailers pulling supply chain toward green ingredients
RETAILERS PULLING SUPPLY CHAIN TOWARD GREEN INGREDIENTS FOCUS: GREAT 1)MANAGING RAW PARTNERS MATERIAL SUPPLY ENGAGED CONSTRAINTS; 2)NEAR-TERM WINS IN GROWTH MARKETS MULTIPLE SHOTS ON GOAL TO SUPPORT COMMERCIAL SUCCESS ECOSYNTHETIX INC. 20
Slide 21: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 22: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 58.8M Market Capitalization (as at Nov. 4, 2022) C$236M Net Debt Nil Cash Balance & Short-Term Investments (as at Sep. 30, 2022) US$36.9M / C$51.1M ECOSYNTHETIX INC. 22