Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — Investor Presentation (March 2021)
23 slides from Ecosynthetix's investor presentation, March 2021
Slide 1: Ecosynthetix Inc Investor Presentation Spring 2021
ECOSYNTHETIX INC Jeff MacDonald | CEO Rob Haire | CFO Investor Presentation Spring 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this annual information form constitute forward-looking statements. All hedging strategy; insufficient insurance coverage; the impact of issuance of additional equity securities on the statements other than statements of historical fact may
Slide 3: Health & Safety of Our Homes and Workplaces
HEALTH & SAFETY OF OUR HOMES AND WORKPLACES ECOSYNTHETIX INC. 3
Slide 4: 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. 4
Slide 5: Essential building block for biopolymer platform
BIOPOLYMER PLATFORM ESSENTIAL COST STABLE COMMERCIALLY VIABLE BUILDING NATURALLY DERIVED SAFE VERSATILE BLOCK FOR FULLY SCALED LOW CARBON FOOTPRINT PROGRESS PURPOSE DRIVEN INNOVATION ECOSYNTHETIX INC. 5
Slide 6: Accelerating explosion of net-zero commitments
THE PACE OF CHANGE Nestlé redoubles efforts to combat climate change ….taking measures to halve its emissions by 2030 and achieve net zero by 2050 ACCELERATING December 3, 2020 PepsiCo Doubles Down on Climate Goal and Pledges Net-Zero Emissions by 2040 EXPLOSION …targeting a reduction of absolute GH
Slide 7: Our platform's potential
OUR PLATFORM’s DOZENS OF SECTORS: 100’s OF PRODUCTS: potential: Essential Building Block for Progress PACKAGING MINING FURNITURE ONE INNOVATION: CONSTRUCTION PAPER AGRICULTURE TRANSPORTATION FOOD HEALTHCARE WASTE PERSONAL BUILDING MANAGMENT CARE MATERIALS ECOSYNTHETIX INC. 7
Slide 8: Multiple shots on goal commercial strategy
1 PERSONAL CARE hair care A MULTIPLE SHOTS ON GOAL COMMERCIAL PAPER & PACKAGING STRATEGY label adhesives 1) PAPER 2) WOOD COMPOSITES PAPER & PACKAGING WOOD MATERIALS PAPER & PACKAGING 3) PERSONAL CARE reading and advertising paper for furniture, floors & construction solutions 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: Products resonating
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. 10
Slide 11: Roadmap
ROADMAP Accelerating the utility of WOOD COMPOSITE PERSONAL CARE MARKET: our platform DISCOVERY PAPER MARKET MARKET: SWISS KONO GLOBAL CHEMICAL CO biopolymer, by partnering with PATENTS REVENUES CASH-FLOW WOOD COMPOSITE POSITIVE RETAILER industry leaders with the market reach/access to make the bigg
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: Formaldehyde recognized as a human carcinogen
FORMALDEHYDE RECOGNIZED AS A HUMAN CARCINOGEN Governments Restricting Industry is An industry poised for change Usage & Introducing Creating Tougher Regulation Standards Expert Agencies Have Spoken Formaldehyde listed as “known to be a human carcinogen” Classified formaldehyde as a “probable human c
Slide 14: 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 15: DuraBind: no added formaldehyde, no problem
DURABIND: NO ADDED FORMALDEHYDE… NO PROBLEM! OBJECTIVE: TRANSFORM THE WOOD COMPOSITES RESIN MARKET WITH OUR PROPRIETARY, SUSTAINABLE NAF SOLUTIONS ECOSYNTHETIX INC. 15
Slide 16: IKEA climate goal and bio-based glues
The overall goal is, by 2030, Materials The main identified movements needed are in to reduce greenhouse gas emissions bio-based glues for our wood-based by more than the IKEA value chain products (fossil-based glue represents 6% emits, while growing the IKEA of the total IKEA climate footprint), bu
Slide 17: DuraBind: a co-binder replacing formaldehyde binders
DURABIND: A CO-BINDER REPLACING FORMALDEHYDE BINDERS MDI: A HIGHLY CONCENTRATED MARKET $22B Global MDI Market (~$1B wood composites resins) MDI MARKET SHARE (%) NAF OTHERS DURABIND MDI SOLUTION DOW WANHUA HUNTSMAN MDI MANUFACTURERS BASF SEARCHING FOR NEW COVESTRO ADDRESSABLE MARKETS ECOSYNTHETIX INC
Slide 18: 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 19: 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 20: Maintained positive cash flow from operations in FY2020 & FY2019
MAINTAINED POSITIVE CASH FLOW FROM OPERATIONS IN FY 2020 & FY 2019 Quarterly Adj EBITDA loss Annual Cash Flows from (used in) Operations (USD millions) (USD millions) 2011 2012 2013 2014 2015 2016 2018 2019 2020 $0.5 $2.0 $0.2 nil $- $- $(0.1) $(2.0) $(0.5) $(4.0) $(1.0) $(6.0) $(1.5) $(8.0) $(2.0)
Slide 21: #1 priority: retailers pulling supply chain toward green ingredients
RETAILERS PULLING SUPPLY CHAIN TOWARD GREEN INGREDIENTS GREAT PARTNERS ENGAGED #1 PRIORITY: STRATEGIC WINS IN WOOD COMPOSITES & PERSONAL CARE MULTIPLE SHOTS ON GOAL TO SUPPORT COMMERCIAL SUCCESS ECOSYNTHETIX INC. 21
Slide 22: Questions & Answers
SSYNTHETIX® QUESTIONS & ANSWERS
Slide 23: Corporate Overview
CORPORATE OVERVIEW TSX Symbol ECO Shares Outstanding 57.2M Market Capitalization (as at Mar 17, 2021) CDN $252M Net Debt Nil Cash Balance (as at Dec 31, 2020) USD $42.0M / CDN $53.8M ECOSYNTHETIX INC. 23