Ecosynthetix Inc. · TSX:ECO
Ecosynthetix — FY2014 Earnings Presentation
14 slides from Ecosynthetix's earnings presentation, 2015
Slide 1: Q4 and Fiscal 2014 Results Conference Call
EcoSynthetix Inc. Q4 and Fiscal 2014 Results Conference Call David Colcleugh, Chairman Jeff MacDonald, Interim CEO Robert Haire, CFO
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements contained in this document and any amendment Some of the risks that could affect the Company’s future results and could or supplement hereto constitute forward-looking statements. All cause those results to differ materially from those expressed in the f
Slide 3: Jeff MacDonald: Right Interim Candidate
Jeff MacDonald: Right Interim Candidate Joined EcoSynthe.x in April 2014 as COO +15 years of execu.ve leadership experience in opera.ons, business development and marke.ng Spent majority of career with Husky Injec.on Molding Systems • Leading manufacturer of equipment and services for the plas.cs in
Slide 4: Compelling Fundamentals
Compelling Fundamentals In-‐house talent Patent-‐protected technology Strong rela.onships with industry and research ins.tu.ons 4
Slide 5: 2015: Returning to our Growth Trajectory
2015: Returning to our Growth Trajectory 1. Defined product pipeline 2. Diversified business ver.cals 3. Disciplined organiza.onal growth 5
Slide 6: Defined Product Pipeline
Defined Product Pipeline Innova.on engine focused on technical feasibility and commercial value Commercializing wood diversification beyond latex coatings composites return to expected Meaningful Revenue growth trajectory 6
Slide 7: Diversified Business Verticals
Diversified Business Verticals Focus on two specific commercial $16B opportuni.es: 1. Paper beyond latex coa.ngs Annual cost of resins in 2. Building products wood composites Regulatory reforms in building products crea.ng demand for formaldehyde-‐free resins • Rated as “likely carcinogen” by EPA •
Slide 8: Disciplined Organizational Growth
Disciplined Organizational Growth Resource alloca.on .ed to product innova.on engine and sales cycle Reduced workforce by 20% across business Focus on projects that can drive meaningful near-‐term revenue Product and bo_om-‐line driven 8
Slide 9: Financial Summary
Financial Summary USD millions Q4 Q4 Fiscal Fiscal (except gross margin) 2014 2013 2014 2013 Net Sales $4.5 $5.2 $18.8 $22.2 Gross Profit $0.7 $0.9 $3.2 $3.6 Gross Margin 16.6% 17.4% 16.8% 16.2% Gross Margin adjusted for manufacturing depreciation 21.6% 22.9% 24.1% 21.3% Adjusted EBITDA $(2.9) $(3.3
Slide 10: Commodity Prices
Commodity Prices $180 $160 $140 $120 $82* $100 SB Latex $/100 lbs $80 $60 $55* $ / oil barrel $40 $20 $12* $0 3 corn bushels January-‐07 January-‐08 January-‐09 January-‐10 January-‐11 January-‐12 January-‐13 January-‐14 January-‐15 Date *As of February 2015 SB latex prices stalled below hi
Slide 11: Quarterly Corn Prices
Quarterly Corn Prices 9 8 $4.84 Average corn price in Q2 2014 Used in Q4 2014 results 7 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 Historical quarterly average price (US
Slide 12: SG&A and R&D Costs
SG&A and R&D Costs Selling, General & Research & Development Administra:ve (SG&A) (R&D) (in millions) (in millions) $4.00 $1.60 $3.50 $1.40 FutureMark $3.00 allowance $1.20 $2.50 $1.00 $2.00 $0.80 $1.50 $0.60 $1.00 $0.40 $0.50 $0.20 $0.00 $0.00 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2014 Q2 2014 Q3 2014
Slide 13: Our Commitment to Shareholders
Our Commitment to Shareholders 1. Execu.ng product pipeline 2. Commercializing new products in paper and building materials 3. Organiza.onal efficiency and growth 4. Returning to growth trajectory 13
Slide 14: EcoSynthetix Inc.
: ynthetix Inc. ows | Uline las