Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (August 2023)
23 slides from Ecosynthetix's investor presentation, August 2023
Slide 1: Ecosynthetix Inc Investor Presentation Summer 2023
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Summer 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other than conditions; our ability to effectively commercially market and sell our products; our ability to protect our know-how and trade 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 Diversification Strategy
OUR DIVERSIFICATION STRATEGY 1 PERSONAL CARE hair care 1) WOOD COMPOSITES 2) PERSONAL CARE PAPER & PACKAGING 3) PAPER, TISSUE, PACKAGING label adhesives AND PULP PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING reading and advertising paper for furniture, floors solutions & construction ECOSYNTHET
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: 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. 7
Slide 8: 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. 8
Slide 9: IKEA is now switching to bio-based alternatives
As a result of innovation and several years of Switching from fossil-based to bio-based glue trials, IKEA is now switching to bio-based solutions will be a stepwise approach, and the alternatives to reduce fossil-based glue usage by goal is to have most board-producing factories 40% and the climate
Slide 10: 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. 10
Slide 11: Independent 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 12: 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 13: Pulp-based products: improving strength and cutting 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 14: 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%+ Inc
Slide 15: Top global forestry & 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 16: Progress on our all-natural polymers for personal care
PROGRESS ON OUR ALL-NATURAL POLYMERS FOR PERSONAL CARE “…committed to bring highly Dow announced an exclusive partnership for our performing and sustainable all-natural ingredients in personal care ingredients to the market.” Dow press release, Sept. 6, ‘22 Collaboration helps accelerate Dow’s commi
Slide 17: Dow sells Ecosynthetix all-natural polymer as MaizeCare
DOW SELLS ECOSYNTHETIX ALL-NATURAL POLYMER AS MAIZECARE “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: 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 19: 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. 19
Slide 20: Building to $100M+ in sales
$100M BUILDING TO SALES $100M+ IN SALES NEW WOOD ACHIEVABLE WITH EXISTING COMPOSITES E MANUFACTURERS WITHIN RETAILER’S SUPPLY CHAIN D PERSONAL CARE MOMENTUM PARTNERS MULTIPLE NEW C LINES IN WOOD COMPOSITES AND TISSUE / PACKAGING AND EARLY PERSONAL CARE WINS B NEW WOOD COMPOSITES & TISSUE / PACKAGING
Slide 21: Q2 Financial Summary
Q2 FINANCIAL SUMMARY USD millions (except gross margin) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net Sales $3.0 $4.2 $6.0 $8.4 Gross Profit $0.5 $1.1 $1.2 $2.2 Gross Margin 18.6% 26.8% 19.4% 26.1% Gross Margin adjusted for manufacturing depreciation 25.2% 30.8% 29.0% 29.8% Adjusted EBITDA1 (loss) $(0.8) $(
Slide 22: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 23: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 58.7M Market Capitalization (as at Aug. 10, 2023) C$225M Net Debt Nil Cash Balance & Short-Term Investments (as at Jun. 30, 2023) US$35.7M / C$47.3M ECOSYNTHETIX INC. 23