TAKING INNOVATION TO THE FINISH LINE Monetizing advanced plant-based bioplastic technology through consumer product and packaging applications Bioplastic Technologies Inc. Investor Presentation June 2016
Jul 19, 2015
TAKING INNOVATION TO THE FINISH LINE
Monetizing advanced plant-based bioplastic technology through consumer
product and packaging applications
Bioplastic Technologies Inc.
Investor PresentationJune 2016
Disclaimer
FORWARD-LOOKING STATEMENTS
The forward-looking information and statements contained in this presentation reflect several material factors and expectations and assumptions of Solegear Bioplastics Technologies Inc. (“Solegear”) including, without limitation: that Solegear will continue to conduct its operations in a manner consistent with past operations, the general continuance of current or where applicable, assumed industry conditions, availability of debt and/or equity to fund Solegear’s capital and operating requirements as needed. Solegear believes the material factors and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, assumptions will prove to be correct. The forward-looking statements contained in this presentation speak only as of the date of this presentation.
NO OFFER
No offer is made by this presentation. Any offer to invest in Solegear and any such investment will be made only pursuant to a definitive Subscription Agreement to be entered into between Solegear and each investor.
PROJECTIONS
This presentation contains certain financial projections, which have been prepared by Solegear and are subject to a high degree of uncertainty. They are based upon estimates of future events and circumstances that might or might not ultimately prove to be accurate. All of the assumptions upon which the projections are based, and which would be material, are not presented. No representation or warranty can be made as to the accuracy of any of these assumptions. There can be no assurances that the projections will be realized, and actual results may differ materially from those set forth in the projections. The assumptions underlying the projections are inherently uncertain and are subject to significant business, economic, and competitive risks and uncertainties that would cause actual results to differ materially from those projected. No opinion or report on the projections was received from any independent accountants. If the projected results are not achieved, Solegear’s business and financial performance could be affected. Because of the above limitations on these projections, you are cautioned about placing undue reliance on them.
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Unique go-to-market strategy
Positioned for Growth
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Global-Leading Bioplastic Technology Company
• TSX-V (SGB), founded 2006, 16 employees
• Proprietary patent-pending bioplastic formulations with advanced performance characteristics
• Positioned in large growing market with 20-30% CAGR
• Unique capital-light business model focused on near-term revenue from end-user products and packaging
• Early stage of commercialization with sales booked and POs received
• Skilled management team with significant experience in manufacturing and target verticals
• Ongoing support from institutional investors
Skilled Leadership
Salil Munjal, ChairmanPartner at Yaletown Venture Partners: Top VC in Canada, #1 Most Active ranked by Thomson Reuters. Former President & COO Leitch Technologies (TSX/NASDAQ): acquired for $580 million cash.
Paul Antoniadis, Chief Executive OfficerFounding Partner at Scenario Ventures. Former CEO Best Buy Europe: $6 billion JV between Best Buy and The Carphone Warehouse. Former SVP, Int’l Retail Ops & President China at Best Buy: multi billion sales and sourcing division. Paul also held VP of Sales Development for Best Buy US, where he was responsible for sales strategy, support and execution of $30.8 billion in sales.
Gary Clifford, EVP/CFOResponsible for Corporate Development & Finance. Managing Director, Pragmus Capital: building and successfully exiting technology companies, company transformation, financing and M&A.
Dr. Michel Labonté, CTOPhD in Bioplastics Packaging from École Polytechnique (Montréal). Formerly at Bombardier: first to produce polycarbonate snowmobile windshield. Chemical/process engineering and design background.
Noel Harvey, VP Sales & Business DevelopmentNoel brings over 25 years of sales and business development experience to his role. Prior to joining Solegear, Noel was Director of Business Development of Green Solutions at Ingredion Inc., a global ingredient provider to the food, personal care, paper and packaging markets.
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Bioplastics: A High Growth Opportunity
• Replaces petroleum inputs in conventional plastic with plant-based material
• Free of hazardous chemicals, renewable and recyclable
• Reduces CO2 emissions
• Addresses current and emerging climate change legislation
• Increasingly demanded by consumers
Bioplastics: $21B market by 2019
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Source: Grand View Research 2014, European Bioplastics 2013, BCC Research 2014, Nexant Inc. 2012
$324BBioplastics:
<1% market share$3.75B
$455B2013
$540B2019
$803B2030
4% market share$21B
40% market share
Bioplastics Oil-based plastics
GLOBAL PLASTICS MARKET
• Bioplastic market expected to grow at up to 30% CAGR 2013-2030
• Traditional plastics expected to grow 3% annually
Solegear’s Proprietary Bioplastics
• Superior impact resistance and clarity
• Up to 100% bio-based content
• No Chemicals of High Concern (CoHCs)1
• Earned USDA BioPreferred® Product and Packaging labels
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1 As defined by California’s Proposition 65, recognized as one of the most stringent lists of chemicals identified as potentially harmful to human health and/or the environment.
Completely Compatible with Existing Manufacturing
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• No special equipment or processes required
• Thermoforming and injection molding formulation
• Supports complex designs
• Wide range of applications: from packaging to durable consumer goods
• Price competitive
Unique Capital-Light Business Model
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Commercialization-focused business model
1. ProprietaryFormulations
Value we canbuild on
3. Outsourced Supply Chain & Tolled Manufacturing
Lowers costs, increases flexibility
2. Collaborative R&D
Benefit from the highest expertise
4. Pull-based Sales & Inventory
Customer demand drives development
Build Market Share and Drive Cash Flows
Very competitively-priced products
Targeted North American Verticals
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Active discussions underway with POs secured
Omni-Office Organization
$2B
Rigid Packaging
$50B
Household Organization
$12B
Kids’ Toys
$20B
Commercialization Underway
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In Discussion with >20 Major Brands
Received POs and Commitments
Build Sales Funnel Book Sales Invoice Sales
Building a Recurring Revenue Stream
Confidential Information & Property of Solegear Bioplastic Technologies Inc.
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Direct Sales to Large Consumer Products Companies
• Focus on Fortune 1000 companies
• Rigid packaging and consumer products
• IP driven by customer requirements
BUILDING A RECURRING REVENUE STREAM
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Finished Products
• Transform everyday products and packaging to bio-based
• >30% margins
• Use partners’ sales teams to increase penetration
BUILDING A RECURRING REVENUE STREAM
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Acquisitions
• Acquire mature product lines with existing markets and supply chains
• Capital-light approach enables near-term accretion
• Strategic funding support from venture capital & institutional investors
• Fragmented market creates multiple opportunities
BUILDING A RECURRING REVENUE STREAM
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Acquired Office Products Book of Business
• Acquired office products book of business from Columbia Plastics Ltd.
• Converting to 100% Solegear bioplastics
• Exclusive right to produce and distribute in Canada and U.S.A.
• 20,000 to 60,000 units forecast for 2016
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Breakthrough Packaging Acquisition
• Closed acquisition of Ex-Tech Plastics’ bioplastics division in May 2016 for $1.3 million in shares
• Annualized sales currently estimated at USD $2+ million
• Opens up additional opportunities for FDA food contact approved thermoformed packaging
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Strong Continuing Institutional Investor Support
• Participated in all financing rounds
• Canada’s most active private independent VC (Thomson Reuters)
• Current ownership: 35%
• Investment firm with >$3.2 billion AUM
• Current ownership: 6%
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Investment Highlights
• Leading bioplastic provider with proprietary patent-pending formulations – cost-effective and with advanced performance characteristics
• Positioned in large growing market with up to 30% CAGR
• Unique capital-light business model focused on near-term revenue from end-user products and packaging
• Early stage of commercialization with sales booked and POs received
• Skilled management team with significant experience in manufacturing and target verticals
• Ongoing support from institutional investors
TAKING INNOVATION TO THE FINISH LINE
Monetizing advanced plant-based bioplastic technology through consumer
product and packaging applications
Share Structure
CompanyAs at May 31, 2016
TotalShares % of Total
Shares Escrowed
% of Holdings
Total Mgmt., Directors & Insiders
30.58M 53% 19.9M 65%
Institutional, Strategic& Retail Investors
26.99M 47% 3.2M 12%
Total Shareholders 57.57M 100% 23.1M 40%
Share StructureAs at May 31, 2016
Issued & Outstanding 57,570,877
Options 5,092,089
Warrants 10,168,6801
Fully Diluted 72,831,656
Total Capital Raised To Date $8,240,000
Share Trading VolumeJanuary 1, 2016 to May 31, 2016
YTD Share Volume Traded 2,120,600
YTD Avg Daily Volume 23,300
52 Week High C$0.25
52 Week Low C$0.12
18,664,651 @ $0.351,758,703 @ $0.1875 to $0.25
CANADA
#300 – 110 West Hastings St.
Vancouver, BC Canada V6B 1G8
+1.604.998.4058
www.solegear.ca
TSX-V: SGB
USA
11413 Burlington Road
PO Box 576 Richmond, IL
USA 60071