Revolymer plc · 30+ years in chemicals industry including ICI and Croda Most recently President Global Operations for Croda Board of Directors Robin Cridland - CFO & Company Secretary

Private & Confidential


Revolymer plc

Overview and 2014 results


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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contents of these Presentation Materials have not been fully verified and no reliance may be placed for any purpose whatsoever on the information contained in these

Presentation Materials or on their completeness. Any reliance on this communication could potentially expose you to a significant risk of losing all of the property invested by

you or the incurring by you of additional liability. No representation or warranty, express or implied, is given by the Company, its directors or employees, or its professional

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These Presentation Materials include “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those

regarding the Company’s financial position, business strategy, plans and objectives of management for future operations and any statements preceded by, followed by or

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or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the

Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or

achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s

present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of

these Presentational Materials.

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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such statements are based, save as required by FSMA and/or the AIM Rules for Companies and AIM Rules for Nominated Advisers. As a result of these factors, the events

described in the forward-looking statements in these Presentation Materials may not occur. Your acceptance of the receipt of these Presentation Materials shall be deemed

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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


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


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



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


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


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



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



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


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


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



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



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)



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



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

Documents

Revolymer plc · 30+ years in chemicals industry including ICI and Croda Most recently President Global Operations for Croda Board of Directors Robin Cridland - CFO & Company Secretary