Itaconix plc · LSE:ITX
Itaconix — Non-Deal Roadshow (June 2018)
23 slides from Itaconix's roadshow presentation, June 2018
Slide 1: Polymers for Better Living
Polymers for Better LivingTM Kevin Matthews, CEO John Shaw, President US June 2018 Slide 1
Slide 2: Cautionary statement
Cautionary statement The information contained in this confidential document (“Presentation”) has been prepared by Itaconix Plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorise
Slide 3: Management Team
Management Team Kevin Matthews (CEO) John R. Shaw (President US) Robin Cridland (CFO) Announced consolidation into the US requires realignment of management team subject to successful fundraise Kevin Matthews John R. Shaw Robin Cridland Executive Chairman CEO Will step down at end July Slide 3
Slide 4: Investment Case
Investment Case 1. Three main products for major unmet needs with proven performance 2. Strong pipeline of active customer projects 3. Production capacity at US plant up to $25 million revenue* 4. Breakthrough products →Interest from market leaders → Collaborations Active Itaconix Projects = $30 Mil
Slide 5: Itaconix - Bio-Based Ingredients for Unmet Needs
Itaconix - Bio-Based Ingredients for Unmet Needs Key Performance Ingredients for Success of Customer Products • Leader in novel bio-based polymers based on itaconic acid • Itaconic acid is a renewable chemical produced by fermentation • Established proprietary process with breakthrough economics • O
Slide 6: Malodour – Why the Big Stink over ZINADOR?
Malodour – Why the Big Stink over ZINADOR™? Key Odour Trend: Neutralise, Don’t Just Mask • Formulators want to neutralise odours rather than only mask them with fragrance. • Ingredient in carpet cleaners, air fresheners, fabric care, surface cleaners, and pet care. ZINADOR™: Zinc with Benefits • Zin
Slide 7: Hair Styling – Let's go Natural
Hair Styling – Let’s go Natural Key Need: A Bio-Based Polymer that Holds Styles • Personal care is on the leading edge for bio-based product claims. Consumers will choose and pay price premiums for bio-based products. • $440 million hair styling market is demanding due to immediate and extended tact
Slide 8: Non-Phosphate Detergents – Established Use
Non-Phosphate Detergents – Established Use Phosphates: Bans Require Reformulation Leading Alternatives in Powder Detergents • Europe & North America have expanded bans; limits likely to emerge in Asia. • Market still seeking comparable products. • Itaconix polymers have multi-functionality similar t
Slide 9: Pressure for Options = Itaconix CHT Opportunity
Pressure for Options = Itaconix® CHT™ Opportunity 1. First generation powder EU non-phosphate automatic 2. BASF is sole source of MGDA granulate with dishwash detergents rely on MGDA granulate for patented position premium builder performance, but are costly * Per dose Major ADW Granulate Liquid Bui
Slide 10: Next Generation Automatic Dishwasher Pods
Next Generation Automatic Dishwasher Pods Automatic Dishwasher Tablet & Pod Market New Compact Automatic Dishwasher Pod • Europe 15 billion units* • North America 15 billion units* • Major, private-label, and specialty brands at risk of losing market share with current formulas. $135 Million Potenti
Slide 11: Proprietary Capacity in Place to Grow
Proprietary Capacity in Place to Grow Reliable Fulfillment Ready for Demand Proprietary Process with Low Capital Needs • Commercial production since 2009 • Breakthrough economics • Plant expansion completed in 2017 • Debottlenecking cost estimated at <$500,000* • Current site with debottlenecking ca
Slide 12: New Performance Ingredients for Unmet Needs
New Performance Ingredients for Unmet Needs Demand for New Formulations Itaconix Patented Products Safety Better human or environmental outcomes Itaconix® DSP™ Phosphate replacement in detergent Itaconix® CHT ™ Performance Better product outcomes at comparable or lower cost Malodour control in home
Slide 13: Poised for Growth: Aligned with Market Needs
Poised for Growth: Aligned with Market Needs Products and routes to revenue growth with market leaders • Positive commercial position with proven products • Reduced cost base with aim to reach profitability sooner • Commercial activities consolidated into US operations, while retaining key UK person
Slide 14: Fundraising Statistics, Incentives and Timetable
Fundraising Statistics, Incentives and Timetable Fundraising statistics and use of proceeds • Firm placing via ABB and subscription of up to £5m • Additional open offer (with excess application facility) of up to £1m • Funds to be used for commercial development and working capital Alignment of ince
Slide 15: Why Invest Now?
Why Invest Now? 1. Three breakthrough products for major unmet needs 2. First sales prove customer value 3. Production capacity in place to grow 4. Significant near-term growth potential from direct sales efforts 5. Collaborators adding more potential for worldwide revenues 6. Key issues addressed:
Slide 16: Appendices
Appendices • Management team • Board of Directors • Summary consolidated financial statements • Alignment of incentives • Sustainability trend in consumer products Slide 16
Slide 17: Management Team
Management Team Kevin Matthews (CEO) Robin Cridland (CFO) Internationally experienced public Experienced In Finance and M&A and private company director 20+ years of pharma/tech business Experienced strategic leader with development, corporate development and strong commercial acumen. NED at finance
Slide 18: Experienced Board
Experienced Board Bryan Dobson Chairman Julian Heslop – NED/Audit Chair Chairman of Applied Graphene Previously CFO of GlaxoSmithKline Materials Plc Senior finance roles at Grand Metropolitan 30+ years in chemicals industry and Imperial Brewing and Leisure including ICI and Croda Non-Executive Direc
Slide 19: Summary Consolidated Financial Statements
Summary Consolidated Financial Statements GBPm Income Statement Extracts - Continuing Operations 2017 2016 Revenue 0.6 0.3 Cost of Sales -0.3 -0.2 Gross Profit 0.2 0.1 Other operating income 0.1 0.0 Administrative expenses -5.5 -5.3 Group Operating Loss -5.2 -5.2 Finance income 0.0 0.1 Exceptional i
Slide 20: Summary Consolidated Financial Statements
Summary Consolidated Financial Statements GBPm Balance Sheet Extracts 2017 2016 2017 2016 Non-current assets Equity Property, plant and equipment 1.0 0.8 Share capital 0.8 0.8 Intangible assets 10.1 Share premium 28.6 28.6 Associate 0.1 Retained earnings -53.1 -42.9 1.0 11.1 Other reserves 27.7 28.0
Slide 21: Summary Consolidated Financial Statements
Summary Consolidated Financial Statements GBPm Cash Flow Statement Extracts 2017 2016 Cash flow from continuing operating activities -4.7 -3.5 Cash flow from discontinued operating activities -1.3 -4.7 -4.7 Cash flow from investing activities Interest received 0.0 0.1 Purchase of PPE -0.4 -0.5 Acqui
Slide 22: Alignment of Incentives
Alignment of Incentives Management incentives are aligned with growth and shareholders’ goals, subject to successful fundraise: • John Shaw (CEO designate) and Yvon Durant (CTO) receive standard management contracts, with suspension of cash bonus and LTIP to end of 2020, in place of current fixed ma
Slide 23: Sustainability – Mega Trend of Our Generation
Sustainability – Mega Trend of Our Generation Established Itaconix Partners AkzoNobel, Arkema, BASF, Bayer Clariant, DSM, DuPont, Evonik, Henkel, IFF, Lanxess, Solvay, Wacker Itaconix’s bio-based polymers fit into customers’ global agendas, with products ideally positioned to play a significant role