Revolymer plc - itaconix.com€¦ · the Financial Services and Markets Act 2000 ("FSMA") ... Recipients of these Presentation Materials should conduct their own investigation, evaluation

Private & Confidential


Revolymer plc

Strategy Update and 2015 Interim Results


Page 1

Disclaimer

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Page 2

Agenda

• YTD 2015 Business Performance

• Strategy “Refresh”

• Interim Financials



Page 3

YTD 2015 Business Performance

Consumer Specialties:

• Engaged with Solvay on PAP licence as Solvay plans for commercial launch

• Solvay global licence for SPC in liquid laundry and liquid ADW – process optimisation underway ahead

of transferring process to manufacturing plant

• OCI licence for SPC in powder laundry and powder ADW (as well as some other powder cleaning

fields) – transferring process to manufacturing plant

• OCI licence also includes use of encapsulation technology for its SPC/TAED (activator) composite –

additional product

• 3 other products manufactured at pilot scale for customer approvals

Nicotine Chewing Gum – private label commercialisation

• Sales of nicotine gum in Canada continue to grow through H1 2015 (up 62% cf H1’14 to £594k)

• Strategic opportunities under review

Corporate & Funding

• Dr Bryan Dobson replaces Jack Keenan as Chairman

• Cost base reductions and R&D tax credits reduce burn and extend runway

• Cash, equivalents & investments at 31 July 2015: £12.0m (31 Dec 2014: £13.2m)



Moving 12 month sales total in CAD

• Revenue due to nicotine gum sales in Canada

• However, margin is currently low

Page 4

2015 Revenue Growth

-

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00


Revenue

Generating

Deals

Canada

Development

Projects

Technical

Success

Contract

Negotiation

Deals

Closed

PLD

Solvay PAP

SPC in solids

B

A Skin

Lips

Hair

E

F

D

C

SPC in liq

TSB

Nicotine gum

Household

Industrial

Personal Care

Exclusive

Potential Exclusive

Licence

Product supply

Development Pipeline – Q4 2014

Page 5


Revenue

Generating

Deals

Canada

Development

Projects

Technical

Success

Contract

Negotiation

Deals

Closed

PLD

Solvay PAP

SPC in liq

H

A Skin

Lips

Hair

E

F

D

C

I

TSB

Nicotine gum

Household

Industrial

Personal Care

Exclusive

Potential Exclusive

Licence

Product supply

B

Development Pipeline – Q2 2015

SPC in solids

Page 6

G


Revenue

Generating

Deals

Canada

Development

Projects

Product

Platforms

Contract

Negotiation

Deals

Closed

PLD

Solvay PAP

OCI SPC Powder

B

A

RevCare SkinSense

RevCare Natural

E

K

D

C

TSB

Nicotine gum

Household

Industrial

Personal Care

Exclusive

Potential Exclusive

Licence

Product supply

I

Solvay SPC

liquid

OCI TAED/SPC

J

G

RevCoat

F

Development Pipeline – Current

H

Page 7



Page 8

Strategy Refresh

Undertaken comprehensive review of all business areas

Clear strategic focus on:

• WHAT - benefits we deliver

• WHERE - markets we are targeting

• HOW - business model we use

• WHEN – deliver a range of targets over next 5 years; by end 2020


WHAT - Revolymer’s Product Offering to its Customers

The development of controlled release, responsive systems and delivery systems

that improve the functional performance of our customers products

Revolymer will use its expertise in the design and synthesis of polymers, often in

combination with other materials, to manage the interface between different

surfaces and phases to solve customers’ problems

Page 9


WHERE - Target Markets

Cosmetics/Personal Care Highly fragmented market space with a large opportunity for innovation and differentiation

It also contains high margin products and is a priority area for Revolymer

Our strategic needs are:

1/ Strengthen Business Development capability in the space

2/ Hire or acquire application and formulation expertise

3/ A product based business will also need responsive manufacturing

Household - Execution Extend encapsulation to all of the main actives in laundry

Wound Care and Topical Pharma, Oral Care, Adhesives & Sealants, Flavour &

Fragrances, Coatings All have high margin niches with technical needs related to Revolymer’s main focus areas

Page 10


HOW - Commercial Execution – Shift towards Product Sales

Model

Page 11

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)


WHEN - Growth Themes

The management team believes that significant value can be built over the next

5 years based on delivery of three growth themes:

A/ Execution: Deliver on the current pipeline: maximizing the value of licences,

realizing the value of the nicotine gum position, and driving into market

current product opportunities

B/ Innovation: Invest in the technology pipeline and focus the R&D team on

accelerating the conversion rate of new product/licence potentials

C/ Acquisition: Identify bolt-on acquisitions that can help accelerate A/ & B/

and/or open up additional growth

Page 12


Page 13

• Licence: PAP, SPC in Liquid, SPC in Powder

• Actives still in development: Bleach activators (e.g. TAED),

Enzymes, Defoamers, Bleach Catalysts, Fragrances, Biocides

Execution: Encapsulation for Homecare

release of active with responsive polymers

Formulation: Polymer coating

remains intact as a barrier

Application: Coating dissolves in

end use application to release the

active efficiently into solution


0

20

40

60

80

100

Uncoated Sodium percarbonate RevCoat SF-8 RevCoat SF-8 in slightly modified media

56.65

97.44 99.93

53.2

92.54 98.48

37.76

89.74

99.59

17.56

76.26

93.93

Stability of RevPeroxTM SPC in commercial unit-dose laundry pod

7 days ambient 7 days 32°C 28 days ambient 28 days 32°C

Execution: Stability of RevperoxTM SPC

liquid unit-dose laundry

Commercial Grade RevPeroxTM SPC RevPeroxTM SPC

With Modified Formulation

% S

PC a

cti

vit

y r

em

ain

ing

Successful incorporation of stabilised SPC particles into liquid laundry pod

Dramatic improvement of SPC stability with responsive polymer coating

Page 14


Execution: Current Product Portfolio

RevBondTM

Improved adhesion onto low energy surfaces e.g. PVC

Adhesives and sealants

RevCareTM

Improved moisturisation

Active delivery

Fragrance retention

Natural sourced hair styling polymers

RevCapTM

Polymers for responsive encapsulation

Page 15


Innovation: RevCare™ - gives you…

Moisture

Management Moisturisation

Skin Care

Wicking

Fragrance

Substantivity Improved Retention

Controlled Release

Targeted Delivery Encapsulation Systems

Active Stabilisation

Triggered Release

Surface Modification Film Forming

Skin Feel

Styling and Hold

Antimicrobial Effect

Page 16


Innovation: Development of Polymer Platform

Delivery of next generation controlled release and active

delivery

hydrophilic

hydrophobic

hydrophobic

Flexibility in design

Controllable architecture & molecular weight

Use of commercial monomers, REACH compliant

One-step synthesis

High surface interactions / substantivity

Enhanced surface properties

Stable emulsions

Hyper dispersancy

Incorporation of functionality

Improved performance

hydrophilic

Page 17


Jack Keenan – Independent NED

Formerly CEO & Chairman of Kraft Foods Int’l.

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,

Tomkins, Stock Spirits Group

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 Non Exec Chairman

30+ years in chemicals industry including ICI and Croda

Most recently President Global Operations for Croda

Board of Directors – Appointment of New Chairman

Robin Cridland - CFO & Company Secretary

25+ years pharma/tech BD, corporate

development and finance experience:

GSK merger, Renovo IPO,

Shire licence/investment, Revolymer IPO

NED of Eden Research plc

Page 18



Financials: 2015 H1 - Group Income Statement

Page 19

Unaudited

6 Months to 30 June

2015

Unaudited

6 Months to 30 June

2014

Audited

Year to 31 December

2014 £000 £000 £000

Revenue 594 366 1,022

Cost of sales (582) (227) (903)

Gross profit 12 139 119

Other operating income 16 30 32

Administrative expenses (1,722) (2,917) (4,556)

Operating loss (1,694) (2,748) (4,405)

Finance income 48 57 110

Loss for the year before tax (1,646) (2,691) (4,295)

Taxation 1,343 - -

Loss for the period (303) (2,691) (4,295)



Financials: 2015 H1 - Group Statement of Financial Position

Page 20

Unaudited

As at 30 June

2015

Unaudited

As at 30 June

2014

Audited

As at 31 December

2014 £000 £000 £000

Non-current assets

Property, plant and equipment 274 403 314

Current assets

Inventories 92 203 208

Trade and other receivables 978 340 496

Investments 9,000 13,000 11,500

Cash and cash equivalents 3,047 2,183 1,686

13,117 15,726 13,889

Total assets 13,391 16,129 14,203

Total Equity 11,715 13,750 12,388

Current liabilities

Trade and other payables 1,676 2,213 1,815

Non-current liabilities

Finance lease obligations and other payables - 166 -

Total liabilities 1,676 2,379 1,815

Total Equity and liabilities 13,391 16,129 14,203



Financials: 2015 H1 - Group Statement of Cash Flows

Page 21

Unaudited

6 Months to 30 June 2015

Unaudited

6 Months to 30 June 2014

Audited

Year to 31 December 2014

£000 £000 £000

Net cash outflow from operating activities (1,146) (2,550) (4,697)

Cash flows from investing activities

Interest received 51 44 98 Purchase of property, plant and equipment (44) (126) (121) Funds withdrawn from term deposits 2,500 2,500 4,500 Net cash inflow from investing activities 2,507 2,418 3,977

Cash received from issue of shares - 133 224 Net cash inflow from financing activities - 133 224

Net inflow/(outflow) in cash and cash equivalents 1,361 1 (496) Cash and cash equivalents at beginning of year 1,686 2,182 2,182 Cash and cash equivalents at end of year 3,047 2,183 1,686


Summary

Page 22

1/ Refreshed strategic & commercial focus, with a 5 year plan

2/ Ongoing execution of:

Revenue growth focused on margin improvement

Licence deals

New product launches

Technology and market development

3/ Appointment of new Chairman

4/ Potential for bolt-on acquisitions

Documents

Revolymer plc - itaconix.com€¦ · the Financial Services and Markets Act 2000 ("FSMA") ... Recipients of these Presentation Materials should conduct their own investigation, evaluation