Itaconix Plc · LSE:ITX
Itaconix — Revolymer — H1 2016 Earnings Presentation
22 slides from Itaconix's earnings presentation, October 2016
Slide 1: Revolymer plc Overview and 2016 Half Year Results
Revolymer plc Overview and 2016 Half Year Results October 2016
Slide 2: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials") have been prepared by Revolymer PLC (the "Company").The Presentation Materials do not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in the Company nor shall they o
Slide 3: H1 2016 Highlights
H1 2016 Highlights • Deals: • Acquisition of Itaconix Corporation based in New Hampshire, USA • First sale of Itaconix® CHT™ into auto-dishwash • Disposal* of nicotine gum business to Alkalon A/S based in Copenhagen, Denmark, for consideration of 15% holding in combined business • Strategy: • Focuse
Slide 4: Strategic Repositioning
Strategic Repositioning Sept-16 Rebased revenue – disposal of low margin nicotine gum Replaced with high margin specialty products July-16 Nicotine Gum Jan-16 Revo Spec Focused specialty Itaconix polymer business Acquisition of Itaconix Sept-16 Conditional Disposal of Nicotine Gum to Alkalon A/S © R
Slide 5: Revolymer Transformed
Revolymer Transformed Yvon Durant (ITX CTO) – World Kevin Matthews (CEO) – Experienced Expert in Polyitaconates Chemical Industry Executive John Shaw – Experienced Robin Cridland (CFO) – Experienced Industry Executive In Finance and M&A 2016 Expanded footprint David Pears (CTO) – Expert Strengthened
Slide 6: Why acquire Itaconix? Large market opportunity
Why acquire Itaconix? Large market opportunity Renewable production Citric Acid Production similar to citric acid fermentation Non-renewable production Size indicates market volume Maleic Acid Itaconic Acid Functional Groups Demand Methacrylic potential Acid similar to acrylic acid Succinic Acid Lac
Slide 7: Breakthrough Economics with patented technology
Breakthrough Economics with patented technology Number of Hours Better Polymerization Rate and Yield 40 Low Capital Equipment Needs • High yield with no downstream purification 30 • High production rates from fast chemical reactions • Non-combustible materials < 80% yield > 95% yield 20 • Minimal en
Slide 8: Commercial Traction to date in Home Care
Commercial Traction to date in Home Care 30 Number of Products Using Itaconix Polymers 20 10 0 2009 2010 2011 2012 2013 2014 2015 © Revolymer 2016 8
Slide 9: Revolymer makes a difference
Revolymer makes a difference Leader in functional polymers that manage the interface between different surfaces and phases to improve the safety, performance or sustainability of our customers products Naturally derived styling polymer Replacing toxic to replace petrochem polymers chelants Improving
Slide 10: Deeper Product and Solution Offering
Deeper Product and Solution Offering Polymers designed and engineered to provide functional products Product Function Attributes Applications (Launch date) ® Itaconix DSP™ Consumer & industrial detergents, Low-cost, environmentally friendly, hard water Chelants ® industrial and agricultural water It
Slide 11: Encapsulation – Enabling our Partners through licenses
Encapsulation – Enabling our Partners through licenses Solid Encapsulation Product Function Attributes Applications (Launch date) PAP Encapsulation of effective low-temperature, Bleach Consumer & industrial detergents, Solvay (2016) environmentally friendly, specialty bleach additive Bleach SPC Enca
Slide 12: Pipeline Development – Sept 2016
Pipeline Development – Sept 2016 8 7 6 Q1 2015 5 Q2 2015 4 Q4 2015 3 2 Q1 2016 1 Q3 2016 0 Commercial Contract Total Licences Products Negotiations Closed Rebased revenue – removal of low margin nicotine gum Replaced with high margin specialty products Improved business model – product vs licence Cu
Slide 13: Increasing Revolymer Profile
Increasing Revolymer Profile © Revolymer 2016 13
Slide 14: Benchmarking Performance & Cost Example Haircare
Benchmarking Performance & Cost Example Haircare © Revolymer 2016 14
Slide 15: Customer Engagement Expected Future Deals
Customer Engagement Expected Future Deals © Revolymer 2016 15
Slide 16: What to expect?
What to expect? Market Size Product Milestones in next 12 months ($m) Revenue growth in 2017 ® Itaconix DSP™,CHT™, Adoption in ADW by major private label house or TSI, XDP equivalent Appointment of distributors RevCare NE ™ First sales and revenue growth in 2017 Appointment of distributors
Slide 17: H1 2016 Results Summary
H1 2016 Results Sum revolymer’@ REVOLUTIONARY POLYMER SOLUTIONS
Slide 18: H1 2016 Financial Summary
H1 2016 Financial Summary • £6.1m of cash and cash equivalents at the period end (2015: £12.0m) – however £5.5m (net of expenses) raised in July through an equity placing with new and existing institutional investors • Cash utilised by the business of £4.4m (2015: £1.2m) – includes £2.0m paid upfron
Slide 19: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Unaudited Unaudited Audited 6 Months to 6 Months to Year to 31 30 June 30 June December 2016 2015 2015 £000 £000 £000 Revenue 578 594 1,249 Cost of sales (518) (582) (1,162) Gross profit 60 12 87 Other operating income 11 16 26 Administrative expenses (2,106)
Slide 20: Summary and Outlook
Summary and Outlook • Repositioned business from low margin nicotine gum revenue to high margin specialty polymers revenue • Enhancement of board, management team and overall organisation • Funded to the end of 2018 • Continue to execute commercial deals • Focus on getting products to market to deli
Slide 21: Appendices
Appendices © Revolymer 2016 21
Slide 22: Board of Directors
Board of Directors Bryan Dobson – Independent Non-Executive Kevin Matthews - CEO Chairman 20+ years senior management, BD and Chairman of Applied Graphene Materials Plc corporate development experience NED of The Newcastle upon Tyne Hospitals NHS Formerly CEO of Isogenica and Oxonica plc Foundation