Accsys

Background briefing

21 June 2012

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Contents1. Who is Accsys?

2. The products

3. The acetylation process

4. History of acetylation

5. The performance benefits

6. Market size

7. Growth drivers: market demand

8. Growth drivers: environmental concerns

9. Market opportunities

10. Strategy

11. Distribution network

12. Knowledge network

13. Certifications and awards

14. Licensing update

15. Medite Tricoya®

16. Medite Tricoya® - Indicative price point

17. Medite Tricoya® - BRE Report

18. Accoya® product development

19. Accoya® species development

20. Summary

21. BP Chemicals Strategic Collaborative Relationship

22. Tricoya® Licence Option Agreement

Appendices

1. Reorganised company

2. Board structure

3. Board structure

4. Senior management team

5. Operational highlights – y/e 30th September 2011

6. Financial highlights – y/e 30th September 2011

7. Income statement – y/e 30th September 2011

8. Statement of position – y/e 30th September 2011

9. Cash-flow statement – y/e 30th September 2011

10. Operational highlights – y/e 31st March 2011

11. Financial highlights – y/e 31st March 2011

12. Income statement – y/e 31st March 2011

13. Statement of position – y/e 31st March 2011

14. Cash-flow statement – y/e 31st March 2011

15. Highlights Q3 2011/12

16. Accoya® window case study

Who is Accsys?

� Specialist supplier and licensor of sustainable and highly durable wood products

� Fully operational Accoya® production plant with commercial capacity of 35,000m3 per annum

� JDA with Medite for the production of Medite Tricoya®

� Accsys Technologies plc is quoted on London Stock Exchange AIM and NYSE Euronext Amsterdam market.

� 3 offices located in London, Dallas and Arnhem with approx 100 employees.

� Revitalised Company

� Senior management materially enhanced since August 2009

� Productivity improved and overall headcount reduced

� Strong financial controls in place and improved working capital management

� 46% reduction in finished goods inventory and 37% reduction in raw material inventory from peak levels

� Successful €28m (net of fees) fundraising in February 2011 providing platform for growth

1

The products

� Two core trademarked brands combine high performance with strong environmental credentials

� Sustainably grown softwoods and non-durable hardwoods given the

performance properties of the best tropical hardwoods

� Modified wood fibres produce enhanced composite panel products

� Joint Development Agreement (JDA) with Medite

� Strong environmental credentials

• FSC certified wood, C2C Gold Certification, DUBOKeur Certification

• Technology provides sustainable alternative to multiple building materials including tropical hardwoods,treated softwoods, PVC & aluminium

The future of wood

2

Acetylation

� Acetylated wood is dimensionally stable, very durable and sustainable and can be used for a large number ofcommercial and domestic applications.

� Does not damage the wood, dramatically increase its weight or raise its toxicity

� Suited to permeable wood species - typically fast-growing, low cost and sustainable

� The Group owns the proprietary rights for the production of Accoya®

� 23 patents granted within four patent families and 25 patents pending

� Industrial secrets after more than 15 years of development work in acetylation technology

3

History of acetylation

4

The performance benefits

5

Worldwide market

� Global annual production of wood products exceeds 3 billion m3 per year

• Solid wood market was 650 million m3 per year in 2005

� European production of sawn timber and panel products totalled 209 million m3 in 2005

• Sawn softwood and hardwood products by volume: 136 million m3

• Wood-based panels by volume: 73 million m3

� North American production of sawn timber and panel products totalled 215 million m3 in 2005



� Asian consumption of sawn timber and panel products totalled 164 million m3 in 2005



6

Source: Food and Agriculture Organization of the United Nations, State of the World's Forests 2009

Growth drivers: market demand

Sawn wood production Wood based panel production

7

Source: Food and Agriculture Organization of the United Nations, State of the World's Forests 2009

Growth drivers: environmental concerns

Source:1 - Camco Greenhouse Gas Emissions Assessment for Accoya® Wood, March 20092 - Engineered Wood and the Environment: Facts & Figures. 2009 APA—The Engineered Wood Association

Greenhouse Gas Emissions 1 Consumption profile 2

Environment Energy

� Increasing consumer demand for sustainable wood products to replace non-sustainable building materials due to:

� Growing consumer awareness of environmental issues

� Increasing government regulation of timber industry (US - Lacey Act, EU - Illegal Timber Regulation)

8

� Windows & doors

• 2008 global demand was $136 billion

� Decking

• 2008 North American demand was $4.1 billion

� Siding & cladding

• 2008 global demand was 4.3 billion m2

� Other

• Shades, louvers & shutters

• Outdoor furniture & fixtures

• Engineered Timber - Glulam, I joist etc

• Public works - Bridges, sound barriers, fencing

• Sporting goods, musical instruments, etc.

Market opportunities

Sources: The Freedonia Group - “Wood & Competitive Decking to 2013”, 2009; “World Windows & Doors to 2013”, 2009; “World Siding (Cladding) to 2013”, 2009 and other Freedonia sources

9

Strategy

� Progressing from proof-of-concept to fully commercial production plant

• Established global customer base and growing distribution network

• When commercially appropriate, the ability to expand capacity by 50% and generate self sustainingmanufacturing profitability

• Ongoing focus on process improvements

• Developing knowledge network of industry experts and suppliers

� Technology licensing

• Seed new markets with Accoya® wood to create demand for licensing of our technologies

• Progress existing licence and heads of terms agreements and secure new licence agreements

• Deliver high margin / low capital revenue “The icing on the cake”

� Medite Tricoya®

• Progress joint development agreement with Medite for the production of Medite Tricoya®

• Replicate licensing model amongst panel manufacturers

� Research and technology development

• Exploiting the performance characteristics of Accoya® and Tricoya® to create new and improve existingproducts in the window, door, decking and cladding markets

• Ongoing research into new species for acetylation

10

Existing distribution network

Distribution agreement signed in country

Direct Sales (no distribution agreement)

Indirect Sales

Accoya® used in 41 countries : 35 distribution, agency and supply agreements in place and 9 additional working relationships

11

12

Numerous certifications…

… and awards

Winner of R+D award 2011Winner of Innovative

Excellence award 2011

13

Licensing Highlights

Accoya® Licensing

� New patents granted, further protecting the process of producing Accoya® wood

� Signed comprehensive heads of terms with a major multinational corporation concerning a licence for the manufacture, distribution and sale of Accoya® in Europe

� Diamond Wood published their draft prospectus for public comment on the Malaysian securities commission website in December 2011

� This is still subject to regulatory review and formal publication

Tricoya® Licensing

� Positive progress with Medite Tricoya®:

� Significant technology developments

� Three successful industrial production trials

� Agreement to supply proprietary acetylated material to Medite for the production of Tricoya®, significantly accelerating introduction to the market

� First commercial production batch processed by Medite in October 2011.

� Independent verification by Building Research Establishment (BRE) confirming an expected service life of 60 years when used in exterior applications

� In joint discussions with Medite and potential licensees of Tricoya® technology

� Licence option agreement signed with a leading MDF and Particle Board manufacturer in

Latin America for the production and sale of Tricoya® based panels

14

Medite Tricoya®

� Many of the benefits observed in Accoya® solid acetylated wood,including enhanced dimensional stability and durability, hold true forMedite Tricoya®.

• Sustainable, FSC certified wood raw material source.

• Non-toxic process

• All the design and machining flexibility of Medite MDF

• Dimensional stability and durability equivalent to some of theworld’s most naturally durable hardwoods.

� Agreement to supply proprietary acetylated material to Medite for theproduction of Tricoya®, significantly accelerating the introduction ofTricoya® to the market;

15

Medite Tricoya – indicative price point

Price

16

Medite Tricoya®‘My Involvement in wood modification technologies over the last 15 years has includedwork on acetic anhydride modification of solid wood. The challenge had always been toprovide a uniform product for the manufacturer and end user. It is clear that a modifiedfibre used for the production of an MDF product achieves this in a most practicable way.Not only does this enable use of a home grown timber resources it also can deliver theuniform reliable substrate that often eludes the wood product supply chain.

In my view, this is an extremely exciting and significant development for the industryand one that presents a new class of material which would open a host of newopportunities.

Within my work in Europe I have many discussions with manufacturers of wood productsand users of construction products. It has been striking of late the confirmation of theneed in the sector for such a stable, reliable board product’

Dr Ed Suttie MIWSc

Director

17

Accoya® product development

Ongoing research into new product ranges includes:

� Development of Accoya® clad joinery components

� Face laminated windows significantly cheaper than solid Accoya® windows -Competitively priced compared to solid tropical hardwood and clear facelaminate larch joinery sections

� Development of cladding & decking products

� Fully factory coated range launched by Sivalbp at Ecobuild, UK

� Structural Applications

� Structural feasibility proven with Sneek bridges

� Additional research recently completed into structural properties of Accoyafor broader use

18

Accoya® species development

� New species for acetylation being researched to further advance core featuresand allow entry into different regional markets and product applications

� Species include Beech, Alder, Southern Yellow pine and Scots Pine

� A high aesthetic hardwood is a big step forward in meeting clearly expressedcustomer needs

� Alder leading contender due to attractive grain and reasonable spread of gradesand positive supply position

� Long term process development project has led to a high quality new Accoya®

product

� Estimated 18 months to 2 years from start of project to official marketrelease

� Successful first prototypes distributed in the Netherlands and Japan

19

� Growing company supplying a growth market driven by demand for high-end building materials andenvironmental concerns

� Financial stability secured

� Transitioning from R&D demonstration company to a sustainable manufacturing company

� 35 signed distribution, agency or supply agreements with 9 additional working relationships with distributors

� Knowledge network to support distributors

� Ongoing development of new species and product ranges

� Great potential for Accoya® and Tricoya®

� Long term focus on licensing

Exciting future

World leaders in wood technology

20

BP Chemicals Strategic Collaborative Relationship� BP is one of Europe’s major manufacturers of acetyls-based chemicals, possessing huge engineering resources,

expertise and knowledge of acetyls-based chemicals.

� As part of the strategic collaborative relationship, BP will supply acetyls products to Accsys Technologies forAccoya®, Tricoya® and related technology and also intends to provide support in relation to Accsys’ currentoperations.

� Accsys and BP intend the collaboration to support further product and application developments which areexpected to contribute to the demand for acetylated materials.

� It is also proposed that BP will offer guidance to Accsys’ potential licensees on acetyls related matters.

� Preferred supplier terms provide scope for Accsys to secure enhanced purchasing and credit terms on acetylsproducts.

“I am delighted that we have reached this agreement with Accsys Technologies. As the main supplier of the acetylsthat Accsys uses to modify its wood we look forward to working closely with Accsys and using our expertise to assistproduct development and support their potential licensees.”

(Frédéric Baudry, BP’s Vice President Petrochemicals, Europe)

Released 06/03/2012

21

Tricoya Licence Option Agreement� Accsys has entered into a licence option agreement with a leading MDF and Particle Board manufacturer in Latin

America for the production and sale of Tricoya® based panels.

� Accsys has granted an option of exclusive production and distribution rights for an initial volume of approximately60,000 metric tonnes of Tricoya® per annum. This equates to around 90,000 m3 of Tricoya® branded MDFexclusively for the Latin American market (excluding Brazil, for which rights are non-exclusive).

� During the two-year term of the option agreement, the option holder will carry out an extensive evaluation ofTricoya material, including market testing, production testing and the development of end-products. If thisevaluation is successful, a full licence agreement may be entered into. All substantial terms of the licenceagreement, including licence fees, brand rights, and mutual obligations of the parties have been agreed.

� In addition to the licence option agreement, a distribution and marketing agreement and a tripartite evaluationand supply agreement, to which Medite Europe Limited is also signatory, have been concluded.

� The licence option is a milestone for the Company, confirming that Accsys’ Tricoya® wood elements technologyhas global applicability and is opening up new opportunities to further penetrate the worldwide panel productsmarket estimated to be worth more than EUR 60 billion annually.

Released 30/04/2012

22

APPENDICES

1.Reorganised company

2.Board structure

3.Board structure

4.Senior management team

5.Operational highlights – 6 months to 30th September 2011

6.Financial highlights – 6 months to 30th September 2011

7.Income statement – 6 months to 30th September 2011

8.Statement of position – 6 months to 30th September 2011

9.Cash-flow statement – 6 months to 30th September 2011

10.Operational highlights – y/e 31st March 2011

11.Financial highlights – y/e 31st March 2011

12.Income statement – y/e 31st March 2011

13.Statement of position – y/e 31st March 2011

14.Cash-flow statement – y/e 31st March 2011

15.Highlights Q1 2011/12

16.Accoya® window case study

17.Arnhem manufacturing Plant

18.Project - Major Infrastructure: Bridges

19.Project - Structural: Historic “Moses” Bridge

20.Project - Residential: Cladding, Decking & Structural

21.Project – Commercial Structural Art

22.Project - Windows and Doors

23.Project – Tricoya® Cladding, Doors, Gates and Windows

Reorganised company

� Senior management materially enhanced since August 2009

� Productivity improved and overall headcount reduced

� Employee’s incentivised by Employee Share Participation Plan launched in June 2011

� Strong financial controls in place and improved working capital management

� Revitalised strategy reflects hands-on experience

Paul CleggCEO

August 2009

John van der MeerOperations Manager

Feb 2010

Eddie PrattHead Business DevelopmentApr 2010

Angus DodwellCompany Secretary

& LegalAug 2010

Bryan CrennellHead of Marketing

Nov 2010

Will Rudge Financial Controller

Jan 2010

Hans PauliCFO & COOApr 2010

Karlijn RademakersHead of Technology

DevelopmentJun 2010

Gordon CampbellChairmanOct 2010

Patrick Shanley Non-Executive Director

Nov 2010

Hal Stebbins Sales DirectorNov 2009

John Alexander Head of Product DevelopmentMay 2010

Nick MeyerNon-Executive Director

May 2011

Appendix 1

Board structureGordon Campbell, Chairman

Gordon, born October 1946, has been a Board member since 2005 and was appointed Chairman on 30 September 2010. He has awealth of board experience and is currently Chairman of Jupiter Second Split Trust plc, having previously been Chairman ofBabcock International PLC, Chairman of British Nuclear Fuels plc and Chief Executive of Courtaulds plc. He is also a former Vice-President of the Royal Academy of Engineering, a former member of the Presidents Council of the CBI and has held a number ofother Non-Executive Directorships.

Paul Clegg, Chief Executive Officer

Paul, born May 1960, assumed the role of Chief Executive Officer on 1 August 2009. Paul had been a Non-Executive Director of theGroup since April 2009 and had been working with the Group as part of the Chairman's Office since mid 2008. Prior to this, he wasCEO of Cowen International, subsequent to its sale by Société Générale in 2006. Before this, he ran SG Cowen International, partof the Société Générale Group, from 2000 to 2006. Paul started in investment banking in 1981 at The First Boston Corporation.Since then he has held senior positions at various investment banks including James Capel and Schroders. During this period oftime he has gathered broad experience covering all aspects of investment banking with strong experience in growth companies.

Hans Pauli, Chief Financial Officer

Hans, born March 1960, has held senior financial positions across the banking and bio-tech sectors and has significant experiencein investment, manufacturing, licensing and distribution. Hans holds a BA in Business Administration and has completed an MA inFiscal Economics from the University of Amsterdam. His commercial career began in the banking sector where he worked forvarious institutions including Barclays, where he gained investment and M&A experience. He then worked for a number of bio-techcompanies, including, most recently, Euronext listed OctoPlus N.V. Hans now divides his time between the Group’s Arnhem plantand its London headquarters.

Appendix 2

Board structureThe Rt. Hon. Lord Sanderson of Bowden, Kb, D.L, Non-Executive Director

Lord Sanderson, born April 1933, chairs the Nomination & Remuneration Committee and sits on the Audit Committee of theCompany. He is currently Chairman of The Hawick Cashmere Co., and a director of Develica Deutschland PLC and Develica I LLP. Heretired as Chairman of Clydesdale Bank PLC in June 2004 having served as its Chairman for six years and as a board member fortwelve years. He was also a member of the boards of Yorkshire Bank PLC and National Australia Bank (Europe). He served for 10years as Chairman of Scottish Mortgage Investment Trust and was a member of the boards of Morrison Construction, UnitedAuctions and Shires Investment Trust. Lord Sanderson served as Minister of State at the Scottish Office from 1987 to 1990 and asChairman of The Scottish Conservative Party from 1990 to 1993. Lord Sanderson started his business career in the Wool Industryand was a Director of both Johnston of Elgin and Illingworth Morris PLC. He has received Honorary Degrees from both the Universityof Glasgow and Edinburgh Napier University.

Patrick Shanley, Non-Executive Director

Patrick, born April 1954, has extensive board room experience in the chemicals sector, having previously been Chief Financial Officerof Courtaulds plc and Acordis bv, Chief Executive Officer of Corsadi bv and Chairman of Cordenka Investments bv. Patrick iscurrently Chairman of Finacor bv, being the only remaining Acordis operating entity which was acquired by CVC Capital Partners.Patrick began his career working for British Coal where he qualified as a Chartered Management Accountant. He has a strongoperational, restructuring, merger and acquisition background within a manufacturing environment.

Nick Meyer, Non-Executive Director

Nick, born December 1944, sits on the Nomination & Remuneration Committee and the Audit Committee of the Company. He hasextensive board room experience in the timber industry, having previously been Chairman of Montague L Meyer Limited, DeputyChairman and Chief Executive of Meyer International PLC. Nick is currently Executive Chairman of Consolidated Timber HoldingsLimited, an innovative and substantial group of companies which imports, distributes and processes sustainable timber and timberproducts. Nick is also a former president of the Timber Trade Association of the United Kingdom.

Appendix 3

Senior management team

Appendix 4

CEOPaul CleggWindsor

CFO & COOHans Pauli

General Manager Arnhem

Head ofBusiness

DevelopmentEddie PrattWindsor

Co-Head Sales& MarketingHal StebbinsDallas

Global Projects (Panel) Director Michel MaesArnhem

Head ofProduct

DevelopmentJohn AlexanderWindsor

Legal Counsel

Angus DodwellWindsor

Financial Controller William RudgeWindsor

Co-Head Sales& MarketingBryan CrennellWindsor

Technology Officer

Karlijn RademakersArnhem

Operational highlights – 6 months to 30th September 2011� Commenced supply of acetylated material to Medite for the production of Medite Tricoya® resulting in Tricoya®

reaching the market approximately two years earlier than previously expected. Medite Tricoya® has been officiallylaunched with encouraging progress made in respect of marketing activities together with the receipt of initialcustomer orders

� Signed comprehensive heads of terms with a major multinational corporation concerning a licence for themanufacture, distribution and sale of Accoya® in Europe

� Passed previous target of 30 Accoya® distribution or agency agreements with a total of 31 now in place

� Commercial development of Red Alder and Scots Pine in progress - new species to be used for Accoya®

production

� Significant marketing focus for new geographic and product segment introductions together with greaterdistributor support. This included increased attendance at trade shows, re-launching our website and developingdistributor websites and on-line sales support tools

� Diamond Wood continues to progress with its planned IPO, which is now expected in 2012, on the juniorexchange of the Malaysian Stock exchange and we understand has recently submitted a draft prospectus to theregulatory authority. Regulatory approval still needs to be obtained

Appendix 5

Financial summary – 6 months to 30th September 2011� Net cash out-flow decreased to €0.5m for six month period (2010: €11.6m)

� Cash balance of €27.1m as at 30 September 2011 (2010: €6.6m)

� Sale and leaseback of Arnhem land and buildings agreed with the first part completed in the period raising €2.2mwith a further €1.8m to be received

� Revenue decreased by 14% to €6.2m due to lower sales to Diamond Wood together with the impact of certaincustomers reducing their inventory levels to reflect slower market conditions which have resulted from the pooreconomic environment experienced in the wood products and building industries

� Other operating costs decreased by 20% to €5.9m (2010:€7.4m)

� Loss before tax fell by 17% to €6.3m (2010: €7.6m) largely attributable to a reduction in other operating costs

Appendix 6

Income statement – 6 months to 30th September 2011

Unaudited Unaudited Audited

6 months 6 months Year

ended ended ended

30 September 30 September 31 March

2011 2010 2011

€’000 €’000 €’000

Total Total Total

Accoya® wood revenue 5,517 6,524 12,567 Licence revenue 75 - 70 Other revenue 639 680 1,063

Total revenue 6,231 7,204 13,700

Total cost of sales (6,695) (7,377) (14,209)

Gross loss (464) (173) (509)

Other operating costs before restructuring costs (5,852) (7,236) (13,486)Restructuring costs - (202) (202)

Total other operating costs (5,852) (7,438) (13,688)Release of impairment of licensee receivables - - 394

Loss from operations (6,316) (7,611) (13,803)

Finance income 22 11 18 Finance expense (33) (33) (66)

Loss before taxation (6,327) (7,633) (13,851)

Tax charge (252) (281) (553)

Loss for the period (6,579) (7,914) (14,404)

Loss arising on translation of foreign operations (23) (10) (14)

Total comprehensive loss for the period (6,602) (7,924) (14,418)

Basic and diluted loss per ordinary share €(0.02) €(0.04) €(0.06)

Appendix 7

Statement of position – 6 months to 30th September 2011


6 months 6 months Year

ended ended ended

30 Sept 30 Sept 31 March

2011 2010 2011

€’000 €’000 €’000

Non-current assets

Intangible assets 7,580 7,456 7,576 Property, plant and equipment 26,251 26,680 26,427 Available for sale investments - - - Deferred tax 1,846 2,366 2,095

35,677 36,502 36,098 Current assets

Inventories 5,811 6,952 8,420 Trade and other receivables 7,879 9,542 9,589 Cash and cash equivalents 27,069 6,640 27,576 Corporation tax 5 41 8

40,764 23,175 45,593

Current liabilities

Trade and other payables (5,122) (5,887) (6,317)Obligation under finance lease (280) - - Corporation tax - - -

(5,402) (5,887) (6,317)

Non-current liabilities

Obligation under finance lease (1,955) - -

(1,955) - -

Net current assets 35,362 17,288 39,276

Total net assets 69,084 53,790 75,374

Equity and reserves

Share capital - Ordinary shares 4,039 2,006 4,031 Share premium account 124,877 98,748 124,809 Capital redemption reserve 148 148 148 Warrants reserve 82 82 82 Merger reserve 106,707 106,707 106,707 Retained earnings (166,776) (153,914) (160,387)Own shares (25) - (25)Foreign currency translation reserve 32 13 9

Total equity 69,084 53,790 75,374

Appendix 8

Cash flow statement – 6 months to 30th September 2011


6 months 6 months Year End

30 Sept 30 Sept 31 March

2011 2010 2011

€’000 €’000 €’000

Profit before taxation (6,327) (7,633) (13,851)

Adjustments for:

Amortisation of intangible assets 137 132 264

Depreciation of property, plant and equipment 898 787 1,630

Loss on disposal of property, plant and equipment - 8 8

Finance expense/(income) 11 (11) 48

Reversal of impairment of receivables - - (394)

Equity-settled share-based payment expenses 190 157 174

Cash flows from operating activities before changes in working capital (5,091) (6,560) (12,121)

Decrease/(increase) in trade and other receivables 1,709 (821) (468)

Decrease/(increase) in inventories 2,609 (3,192) (4,661)

Decrease in trade and other payables (966) (542) (480)

Net cash absorbed by operating activities before tax (1,739) (11,115) (17,730)

Tax (paid)/received - (8) 24

Net cash flows from operating activities (1,739) (11,123) (17,706)

Cash flows from investing activities

Interest received 23 11 18

Expenditure on capitalised internal development (142) - (252)

Disposal of property, plant and equipment - 22 22

Purchase of property, plant and equipment (723) (521) (1,073)

Net cash absorbed by investing activities (842) (488) (1,285)

Cashflows from financing activities

Proceeds from sale and lease back 2,236 - -

Proceeds from issue of share capital 78 - 30,000

Share issue costs (267) - (1,686)

Net cash from financing activities 2,047 - 28,314

Effect of exchange differences on restatement of non Euro functional currency 27 (7) (5)

Net (decrease)/increase in cash and cash equivalents (534) (11,611) 9,323

Opening cash and cash equivalents 27,576 18,258 18,258

Closing cash and cash equivalents 27,069 6,640 27,576

Appendix 9

Operational highlights –y/e 31st March 2011� 36% increase in sales volume of Accoya® (to 11,935m3) compared to last year;

� 62% increase in sales volume of Accoya® compared to last year excluding sales to Diamond Wood (followingpostponement of orders pending finalisation of their fund-raising);

� Nine further distribution, agency and supply agreements signed, making a total of 27, covering most of Europe,Australia, Canada, Chile, China, India, Morocco, New Zealand, parts of South East Asia and the USA;

� Licence option signed with a major multinational corporation in January 2011 and renewed in April 2011;

� On-going process improvements including approximately 10% reduction in production cycle times over last 12months;

� Positive progress with Medite Tricoya® with significant technology developments, three successful industrialproduction trials and independent verification by Building Research Establishment (BRE) confirming an expectedservice life of 60 years when used in exterior applications.

Released 30/6/2011

Appendix 10

Financial highlights –y/e 31st March 2011� 38% increase in revenue from sales of Accoya® wood to €12.6m (2010: €9.1m);

� Total revenue of €13.7m (2010: €16.7m) was less than the previous year as a result of a reduction in licensingincome. €0.5m of cash received from our licensee and potential licensee resulted in a partial reversal of theimpairment charge relating to Diamond Wood which was originally recorded in 2010.

� Gross manufacturing margin improved to a negative 4% from negative 27% last year and from negative 66% in2009 as a result of improved efficiency and the economies of scale resulting from our higher sales volumes.

� Other operating costs reduced by 27% to €13.7m (2010: €18.6m) following continuing focus on reducing costsand increasing efficiency. Staff numbers have been reduced by 22% over the last two years.

� Reduction in loss from operations to €13.8m (2010: loss of €51.9m) as a result of improved manufacturing grossmargin and reduced other operating costs together with no further impairment charges relating to DiamondWood.

� Cash of €27.6m at the end of the period (2010: €18.3m). Cash out-flow significantly reduced following period ofhigh cash out-flow due to postponement of orders from Diamond Wood

Released 30/6/2011

Appendix 11

Income statement - y/e 31st March 2011 2011 2011 2011 2010 2010 2010

€'000 €'000 €'000 €'000 €'000 €'000

Before

Diamond

Wood write-

offs and

restructuring

costs

Diamond

Wood

adjustments

and

restructuring

costs Total

Before

Diamond

Wood write-

offs and

restructuring

costs

Diamond

Wood write-

offs and

restructuring

costs

Total

Accoya® wood revenue 12,567 - 12,567 9,136 - 9,136

Licence revenue 70 - 70 6,688 - 6,688

Other revenue 1,063 - 1,063 899 - 899

Total revenue 13,700 - 13,700 16,723 - 16,723

Total cost of sales (14,209) - (14,209) (14,572) - (14,572)

Gross (loss) / profit (509) - (509) 2,151 - 2,151

Other operating costs before restructuring costs (13,486) - (13,486) (17,772) - (17,772)

Restructuring costs - (202) (202) - (862) (862)

Total other operating costs (13,486) (202) (13,688) (17,772) (862) (18,634)Release of impairment/

(impairment) of licensee receivables - 394 394 - (25,458) (25,458)

Impairment of equity investment - - - - (10,000) (10,000)- - - - - -

Loss from operations (13,995) 192 (13,803) (15,621) (36,320) (51,941)

Finance income 18 - 18 18 - 18

Finance expense (66) - (66) (291) - (291)

Loss before taxation (14,043) 192 (13,851) (15,894) (36,320) (52,214)

Tax (charge)/credit (553) - (553) 75 - 75

Loss for the period (14,596) 192 (14,404) (15,819) (36,320) (52,139)

Basic loss per ordinary share €(0.06) €(0.32)

Released 30/6/2011

Appendix 12

Statement of position - y/e 31st March 2011

2011 2010

€'000 €'000

Non-current assets

Intangible assets 7,576 7,588

Property, plant and equipment 26,427 26,972

Available for sale investments - -

Deferred tax 2,095 2,644

Trade receivables - -

36,098 37,204

Current assets

Inventories 8,420 3,755

Trade and other receivables 9,589 8,741

Cash and cash equivalents 27,576 18,258

Corporation tax 8 36

45,593 30,790

Current liabilities

Trade and other payables 6,317 6,437

Corporation tax - -

6,317 6,437

Net current assets 39,276 24,353

Total net assets 75,374 61,557

Released 30/6/2011

Appendix 13

Cash-flow statement - y/e 31st March 2011 2011 2010

€'000 €'000

Cash flows from operating activities before changes in working capital (12,121) (13,328)

(Increase)/decrease in trade and other receivables (468) 5,592

(Increase)/decrease in inventories (4,661) 1,144

Decrease in trade and other payables (480) (7,307)

Cash absorbed by operating activities (17,730) (13,899)

Tax received/(paid) 24 (103)

Net cashflows from operating activities (17,706) (14,002)

Cash flows from investing activities

Interest received 18 18

Purchase of available for sale investments - (4,000)

Expenditure on capitalised internal development (252) -

Disposal of property, plant and equipment 22 2

Purchase of property, plant and equipment (1,073) (2,029)

Net cash absorbed by investing activities (1,285) (6,009)

Cashflows from financing activities

Proceeds from loans - 4,000

Finance expenses - (246)

Dividends Paid - -

Net proceeds from issue of share capital and buyback of deferred shares 28,314 17,007

Net cash from financing activities 28,314 20,761

Effect of exchange dif ferences on restatement of non EUR functional currency (5) 5

Net increase/(decrease) in cash and cash equivalents 9,323 750

Opening cash and cash equivalents 18,258 17,503

Closing cash and cash equivalents 27,576 18,258

Released 30/6/2011

Appendix 14

Highlights Q3 2011/12� Increased the supply of acetylated material to Medite for the production of Medite Tricoya® which is now being

sold in the market;

� Continued progress with contract negotiations with a major multinational corporation following comprehensiveheads of terms being signed in November 2011;

� Revenue from Accoya® increased by 40% compared to the same quarter last year and increased by 24%compared to the second quarter of the current year;

� Other operating costs have decreased by 14% for the financial year to December 2011, compared to the sameperiod in the prior year

� Cash of €25.5m at 31 December 2011 compared to €27.1m at 30 September 2011; and

� 46% reduction in finished goods inventory and 37% reduction in raw material inventory from peak levels.

Released 17/02/2012

Appendix 15

Accoya® window case study

� Based on data from Dutch maintenance company experienced in working with Accoya® windows

� This company actually offers contracts to customers based on these figures

� Demonstrates that although acetylated wood windows may have a higher initial cost, over the long term they are more cost effective than alternatives

� Data does not take into account either installation costs or the reduced energy losses from acetylated wood windows. Both factors further support the financial argument for acetylated wood windows when looking at the long term

Frame Material Initial Cost/m 2

Area of building (m 2)

Assessment Period (Years)

Replacement Frequency (Years)

Maintenance Frequency (years)

Initial Cost per building

Replacement costs

Maintenance Cost

Life-cycle costs per Building

Meranti € 400.00 50 50 30 3 € 20,000.00 € 20,000.00 € 7,265.00 € 47,265.00 Spruce - Hardwood € 350.00 50 50 30 3 € 17,500.00 € 17,500.00 € 7,415.00 € 42,415.00 Aluminium € 286.00 50 50 30 6 € 14,300.00 € 14,300.00 € 3,215.00 € 31,815.00 PVC € 227.00 50 50 30 6 € 11,350.00 € 11,350.00 € 3,390.00 € 26,090.00 Acetylated timber € 450.00 50 50 50 8 € 22,500.00 € 0.00 € 3,300.00 € 25,800.00

€ 0.00

€ 10,000.00

€ 20,000.00

€ 30,000.00

€ 40,000.00

€ 50,000.00

Meranti Spruce -

Hardwood

Aluminium PVC Accoya®

Life-cycle Cost Initial Cost

Appendix 16

Arnhem: Manufacturing Plant

Arnhem, 2011

Major Infrastructure: Bridges

Sneek, Holland, 2007 & 2010

Structural: Historic “Moses” Bridge

Historic Fort, Holland, 2011

Residential: Cladding, Decking & Structural

Norfolk 2011

Commercial: Structural Art

Istanbul, Turkey, 2011

Windows and Doors

Tricoya® Cladding, Doors, Gates and Windows

Documents

Accsys