Itaconix plc · LSE:ITX
Itaconix — Revolymer — FY2015 Earnings Presentation
28 slides from Itaconix's earnings presentation, April 2016
Slide 1: Overview and 2015 Results
Revolymer plc Overview and 2015 Results April 2016
Slide 2: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials") are being solely issued to and directed at persons who are qualified investors for the purposes of Section 86 of the Financial Services and Markets Act 2000 ("FSMA") and have professional experience in matters relating to investm
Slide 3: Executive Management
Executive Management Kevin Matthews - Chief Executive Officer • Joined Revolymer Board as Chief Executive Officer on 29 September 2014 • Formerly CEO at Isogenica Ltd, providing drug discovery services to the pharmaceutical industry, • Previously CEO Oxonica, a nanomaterials business for 8 years, du
Slide 4: Revolymer
Revolymer Innovative and differentiated specialty chemical company focussed on the development of novel polymers, responsive encapsulation and targeted delivery systems Delivering high performance ingredients for the Personal and Consumer Health Care and Homecare and Industrial business areas © Revo
Slide 5: Location – Chester, UK
Location – Chester, UK • Development labs • Home Care & Industrial Application labs • Personal Care and Cosmetic labs • Food suite • cGMP analytical testing lab • Established contract manufacturing relationships © Revolymer 2016 5
Slide 6: Enhancing the Functional Performance of our Partners' Products
Enhancing the Functional Performance of our Partners’ Products Home Care and Industrial Personal Care and Consumer Physical Encapsulation Healthcare • Bleach systems Specialty Polymers • Antifoams • Hair styling • Catalysts • Moisturisation Specialty Polymers • Fragrance substantivity • Adhesion pro
Slide 7: Flexible Platform
Flexible Platform Next Generation of Controlled Release and Active Delivery Flexible platform: hydrophilic • Controllable particle morphologies • Burst and diffusion release of actives hydrophobic • Water and oil soluble actives • Appropriate for ‘sensitive’ actives • Formaldehyde free hydrophilic •
Slide 8: 2015 Highlights
2015 Highlights • Deals: • 2 licences to sodium percarbonate; Solvay for liquids and OCI for solids • Renewed and expanded nicotine gum contract in Canada signed (Q1 2016) following successful consumer adoption • People: • Appointment of Dr Bryan Dobson as Chairman • Appointment (Q1 2016) of Dr Loui
Slide 9: Pipeline Development
Pipeline Development Current pipeline Product Brands 6 5 1. Personal Care and Consumer Healthcare 4 Q1 2015 3 Q2 2015 Q4 2015 2 2. Home Care and Industrial Q1 2016 1 0 Development Launched Contract Total Deals Revenue Products Negotiations Closed Generating Deals Progress in revenue generating poten
Slide 10: Growth Themes
Growth Themes The management team believes that significant value can be generated in the short to medium term based on: A/ Execution: Delivering on the current pipeline, maximising the value of licences, realising the value of the nicotine gum position, and driving into market current product oppor
Slide 11: 2016 Plan to Drive Growth
2016 Plan to Drive Growth Q1 Q2 Q3 Q4 Prelims Interims Canada Nicotine Gum Establish Supply Chains M&A – step change opportunities? Today © Revolymer 2016 11
Slide 12: M&A Opportunities
M&A Opportunities • Nicotine Gum considerations • Profitability limited by current market positioning • Secure manufacturing – strategic objective • Potential JV to accelerate market growth • Specialty Polymer opportunities • Complementary businesses – technology / markets • Increase product offerin
Slide 13: Home Care and Industrial
Home Care and Indus revolymer’@ REVOLUTIONARY POLYMER SOLUTIONS
Slide 14: The Home Care Challenge
The Home Care Challenge Stabilisation of Actives in Solid and Liquid Products The move to ‘convenience’ in Challenges: some consumer product formats • Shelf life - maintaining stability combined with regulations has of the active in the product eliminated the use of some • Releasing active quickly i
Slide 15: RevPerox SPC – Bleach for Liquid Laundry
Innovation – Case Study 1 RevPeroxTM SPC – Bleach for Liquid Laundry • Responsive polymer coated sodium percarbonate (SPC) particle • Dust free, mechanically stable, robust particles • Excellent stability in a range of liquid detergent formulations: • Laundry and ADW • Unit dose liquid capsule • Bul
Slide 16: RevPerox SPC – Stability in Unit-Dose Liquid Laundry
Case Study 1 RevPeroxTM SPC – Stability in Unit-Dose Liquid Laundry Successful incorporation of stabilised SPC particles into liquid laundry pod Dramatic improvement of SPC stability with responsive polymer coating Stability of RevPeroxTM SPC in commercial unit-dose laundry pod 100 98.48 93.93 S
Slide 17: Case Study: Market Analysis
Case Study 1 Market Analysis SPC Market Current Annual Market Size Volume (million tonnes) Powder Laundry 13 Other Actives Liquid Laundry 6 Sodium Percarbonate (SPC) used in powder only 1.1 using same Usage level of SPC in powder Potential SPC volume in liquid @ 8% usage 8-15% 480,000T Encapsulation
Slide 18: RevCoat Bond – Adhesion Promoter for Hybrid Sealants & Adhesives
Innovation - Case Study 2 RevCoatTM Bond – Adhesion Promoter for Hybrid Sealants & Adhesives Formal launch due May 2016 Market Analysis Estimated value market for adhesion promoters $2.67bn Novel polymeric adhesion promoter Estimated volume market for adhesion promoters 772kT for high performance se
Slide 19: Personal and Consumer Health Care
Personal and Consumer Health Care 19
Slide 20: RevCare Natural Effects – Natural Hair Styling Polymers
Innovation – Case Study 3 RevCareTM Natural Effects – Natural Hair Styling Polymers Launched April 2016, Paris InCosmetics Market Analysis Hair Fixative Polymers market size Volume (kT) Value ($M) US 26 196 EU 12 170 Total 36 366 Industry standard product PVP/VA and PVP 12.7 Market Share 35% Price R
Slide 21: 2015 Results Summary
2015 Results Summe revolymer’@ REVOLUTIONARY POLYMER SOLUTIONS
Slide 22: 2015 Summary
2015 Summary • Revenue • Revenue up 22% at £1,249k (2014: £1,022k) driven by nicotine gum in Canada. • On a constant currency basis, sales of nicotine gum were up 78% to CAD2.61m (2014: CAD1.46m); • Administrative expenses (including R&D expenditure) reduced to £3.8m (2014: £4.6m) • included a non-c
Slide 23: Financials: Summary Consolidated Income Statement
Financials SUMMARY CONSOLIDATED INCOME STATEMENT (GBP'000) Audited Audited Year to 31 Year to 31 December December 2015 2014 Revenue 1,249 1,022 Cost of sales (1,162) (903) Gross profit/(loss) 87 119 Other operating income 26 32 Administrative expenses (3,786) (4,556) Group operating loss (3,673) (4
Slide 24: Financials: Summary Consolidated Balance Sheet
Financials SUMMARY CONSOLIDATED BALANCE SHEET (GBP'000) Audited Audited As at 31 As at 31 December 2015 December 2014 Non-current assets Property, plant and equipment 340 314 340 314 Current assets Inventories 164 207 Trade and other receivables 1,017 496 Investments 7,000 11,500 Cash and cash equiv
Slide 25: Financials: Summary Consolidated Cash Flow
Financials SUMMARY CONSOLIDATED STATEMENT OF CASH FLOW (GBP'000) Audited Audited Year to 31 Year to 31 December 2015 December 2014 Net cash outflow from operating activities (2,601) (4,697) Cash flows from investing activities Interest received 107 98 Purchase of property, plant and equipment (196)
Slide 26: Summary and Outlook
Summary and Outlook • Continue to execute commercial deals • Positioned as a Specialty Chemicals business • Enhancement of board and management team to align with business model • Funded to the end of 2017 • Receptive to growth through corporate transactions as well as organically © Revolymer 2016 2
Slide 27: Appendices
Appendices © Revolymer 2016 27
Slide 28: Board of Directors
Board of Directors Bryan Dobson – Independent Non-Executive Chairman Chairman of Applied Graphene Materials Plc NED of The Newcastle upon Tyne Hospitals NHS Foundation Trust 30+ years in chemicals industry including ICI and Croda Most recently President Global Operations for Croda Robin Cridland - C