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Private & Confidential
Private & Confidential
Revolymer plc
Overview and 2014 results
Private & Confidential
Page 1
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 investments and who are investment professionals as
specified in article 19(5), or high net worth companies, etc. as specified in article 49 (2) (a) - (d), of the Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the "Financial Promotion Order"). Accordingly, the Presentation Materials are exempt from the general restriction on the communication of invitations or inducements
to engage in investment activity and have therefore not been approved by an authorised person as would otherwise be required by section 21 of FSMA. Any investment to
which these Presentation Materials relate is available to (and any investment activity to which it relates will be engaged with) only those persons described in the above
paragraph. It is a condition of your reviewing these Presentation Materials that you fall within, and you warrant to Revolymer plc (the “Company”) that you fall within, the
category of persons described in Articles 19(5) or 49 of the Financial Promotion Order.
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
or any part of them, or the fact of their distribution, form the basis of, or be relied on in connection with, any contract with the Company relating to any securities. They are
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The Company and its professional advisers expressly disclaim any obligation or undertaking to disseminate any updates or revisions in relation to any forward-looking
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Private & Confidential
Private & Confidential
Page 2
Revolymer mission statement & business model
Revolymer develops and formulates novel polymers to improve the
performance of its customers’ and partners’ products
The vision for Revolymer is to build a high growth, high quality margin,
specialty materials business based on proprietary polymer technology
that provides responsive or smart multi-functional materials
Revolymer aims to generate growing high quality revenue streams by
either licensing its proprietary technologies or through the supply of
proprietary products using an outsourced manufacturing model
Current target markets are household products, personal care and
nicotine gum
Private & Confidential
Page 3
Executive Management
Kevin Matthews - Chief Executive Officer
• Joined Revolymer Board as Chief Executive Officer on 29 September 2014
• Formerly at Isogenica Ltd, a business providing drug discovery services to the pharmaceutical
industry, where he served as CEO since 2009
• Kevin led the chemical technology company Oxonica as its CEO for 8 years, during which time he
completed its AIM listing in 2005 and secured numerous significant partnership deals and M&A
transactions
• Served for almost 10 years as non-executive director of the FTSE 250 specialty chemicals company
Elementis plc
• Currently a non-executive director of the international performance materials business Low &
Bonar PLC
• Kevin has held senior roles at ICI, Albright & Wilson and Rhodia
• He is a graduate of the University of Oxford, where he was also awarded a DPhil in Organic
Chemistry
Robin Cridland - Chief Financial Officer & Company Secretary
• Rob has 25 years of pharma/tech business/corporate development and finance experience
• Rob joined Revolymer in September 2008 from Renovo Group plc, where he spent 7 years as
Executive Director of Finance and Business Development, floating the business on the Official List
in 2006 and signing a major licence with Shire in 2007
• He qualified as a chartered accountant at Coopers & Lybrand Deloitte, before moving on to senior
transactional roles at Enskilda Securities and senior finance and transactional roles at
GlaxoWellcome and GSK (including in the merger to form GSK, and integration projects)
• Rob has an MA from the University of Oxford and is a Fellow of the Institute of Chartered
Accountants in England and Wales
Private & Confidential
Page 4
Jack Keenan – Independent Non Executive Chairman
Currently Non Executive Chairman of Stock Spirits Group plc
Formerly CEO & Chairman of Kraft Foods International,
CEO of the business that is now Diageo, and
Executive Director of Diageo and Moet Hennessy
NEDs have included Body Shop, M&S, General Mills and Tomkins
Kevin Matthews - CEO
20+ years senior management, BD and
corporate development experience
Formerly CEO of Isogenica and Oxonica plc
NED of Low & Bonar plc
Formerly NED of Elementis plc
Julian Heslop – Independent NED
Previously CFO of GlaxoSmithKline
Senior finance roles at ViiV Healthcare
(Chairman), Grand Metropolitan and Imperial
Brewing and Leisure
Mike Townend - NED
20+ years experience in equity capital
markets including Lehman Brothers
Representative of IP Group
Robert Frost - NED
20+ years private equity experience
including Allianz Capital
Representative of Naxos Capital Partners
Bryan Dobson – Independent NED
30+ years in chemicals industry including
ICI and Croda
Most recently President Global
Operations for Croda
Board of Directors
Robin Cridland - CFO & Company Secretary
25 years pharma/tech BD, corporate
development and finance experience:
GSK merger, Renovo IPO,
Shire licence/investment, Revolymer IPO
Private & Confidential
Private & Confidential
Page 5
2014 Business Highlights
Consumer Specialties (household products, personal care):
• Global licence agreed (09/14) with Solvay for use of encapsulation polymer
technology with PAP active in household and industrial cleaning applications
• Making progress with supply agreements of products and ingredients based on
amphiphilic moisture management polymer technology to personal care companies
• Progressing a portfolio of other product development programmes towards
commercial deals
Nicotine Chewing Gum
Commercialisation through the white / private label channel:
• US supply and distribution agreement with PL Developments (06/14)
• Regulatory: application to FDA ongoing
• Continuing sales (>£1m) of nicotine gum in Canada through a large Canadian retailer
• Fertin/Gumlink litigation settled and discontinued
Funding
Cash and cash equivalents at 31 Dec 2014: £13.2m (31 Dec 2013: £17.7m), providing future
runway to deliver key commercial projects
Private & Confidential
Revenue
Generating
Deals
Canada
Development
Projects
Technical
Success
Contract
Negotiation
Deals
Closed
PLD
Solvay
C
B
A D
E
F
K
L
J
I
H
G
Nicotine gum
Household
Industrial
Personal Care
Exclusive
Potential Exclusive
Licence
Product supply
Development Pipeline – Q4 2014
Page 6
Private & Confidential
Revenue
Generating
Deals
Canada
Development
Projects
Technical
Success
Contract
Negotiation
Deals
Closed
PLD
Solvay
E
C
B
F
G
H
M
N
L
K
J
I
Nicotine gum
Household
Industrial
Personal Care
Exclusive
Potential Exclusive
Licence
Product supply
1
Development Pipeline – Q2 2015
D
Page 7
A
Private & Confidential
Private & Confidential
Page 8
Specialty Materials Market
Key Attributes
Small % of final product – generally modest volumes
Limited price sensitivity – good margin business
Low substitution rates = + and –
Qualification processes normally lengthy (but dependent on market)
Business built on
Quality Product (value add pricing)
Close technical relationships
Private & Confidential
Private & Confidential
Page 9
Commercialisation Models
A: Licensing:
Logical business model for highly consolidated, large volume, cost sensitive, controlled markets
Successful licences can generate substantive ROCE, but The more execution elements that get transferred to licensee the greater the risk
of delay and changes in licensee priority/strategy Potential to part-mitigate risk with multiple licensing partners (different
applications)
B: Development of product capability: Logical business model for fragmented, relatively small volume high value
markets Potential to identify some early “low hanging fruit” to drive revenue Build greater control of short to medium term business timeline Build business capability to define own future Growth of ROCE will be incremental in nature and depend on identifying multiple
product lines
Private & Confidential
Value Matrix
Page 10
Health Care
Medical Devices
Agchem/Biocides
Personal/Oral Care
Household Cleaners
Industrial
Value of
Actives
Amount of regulation/risk
Environmental drivers
Nicotine
Gum
Film formers; delivery agents
Encapsulated Actives
Adhesion Promoters
Health Drivers
Private & Confidential
Strategic Aspirations
Page 11
Health Care
Medical Devices
Agchem/Biocides
Personal/Oral Care
Household Cleaners
Industrial
Value
of
Actives
Amount of regulation/risk
Encapsulated
actives in high value
segments
Current focus
1/ Technology development to build out encapsulation and smart delivery
2/ Applications development /partnership to optimise delivery
3/ Acquisitions could accelerate application expertise and move up value curve
Private & Confidential
Private & Confidential
Management believes that the business should focus on
• Commercialisation - driving into market the technology that has already
been developed. Specifically:
• Nicotine Gum – focus on US regulatory approval, and Canadian contractual commitments
• Licence/product business based on encapsulated actives in laundry and auto dish wash, but to
build on this for other application areas
• Commercialisation of already developed products into the personal and oral care markets
• Investment:
• Enabling US Nicotine gum – investment in clinical trials and manufacturing upgrade
• Technology build out of responsive encapsulation systems
• Development of applications expertise
Page 12
Outlook – Commercial Focus
Private & Confidential
Private & Confidential
Financials: 2014 Group Income Statement
Page 13
Audited
Year to 31 December
2014
Audited
Year to 31 December
2013 £000 £000
Revenue 1,022 528
Cost of sales (903) (871)
Gross profit/(loss) 119 (343)
Other operating income 32 194
Administrative expenses (4,556) (5,328)
Group operating loss (4,405) (5,477)
Finance income 110 193
Loss for the year before tax (4,295) (5,284)
Taxation expense - -
Loss for the year (4,295) (5,284)
Private & Confidential
Private & Confidential
Financials: 2014 Group Balance Sheet
Page 14
Audited
As at 31 December 2014
Audited
As at 31 December 2013
£000 £000
Non-current assets
Property, plant and equipment 314 364
314 364
Current assets
Inventories 208 168
Trade and other receivables 496 534
Investments 11,500 15,500
Cash and cash equivalents 1,686 2,182
13,889 18,384
Total assets 14,203 18,748
Total equity 12,388 16,084
Current liabilities
Trade and other payables 1,815 2,314
Non-current liabilities
Finance lease obligations and other payables - 350
Total liabilities 1,815 2,664
Total equity and liabilities 14,203 18,748
Private & Confidential
Private & Confidential
Financials: 2014 Group Statement of Cash Flows
Page 15
Audited
Year to 31 December 2014
Audited
Year to 31 December 2013
£000 £000
Net cash outflow from operating activities (4,697) (4,311)
Cash flows from investing activities
Interest received 98 193 Purchase of property, plant and equipment (121) (183) Funds withdrawn from term deposits 4,000 1,500 Net cash inflow from investing activities 3,977 1,510
Cash received from issue of shares 224 84 Net cash inflow from financing activities 224 84
Net outflow in cash and cash equivalents (496) (2,717) Cash and cash equivalents at beginning of year 2,182 4,899 Cash and cash equivalents at end of year 1,686 2,182
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