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Investor PresentationMay 2017
Commercializing advanced plant-based bioplastic technology through consumer
product and packaging applications
Bioplastic Technologies Inc.
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DisclaimerFORWARD-LOOKING STATEMENTS
• The forward-looking information and statements contained in this presentation reflect several material factors and expectations and assumptions of Solegear Bioplastics Technologies Inc. (“Solegear”) including, without limitation: that Solegear will continue to conduct its operations in a manner consistent with past operations, the general continuance of current or where applicable, assumed industry conditions, availability of debt and/or equity to fund Solegear’s capital and operating requirements as needed. Solegear believes the material factors and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, assumptions will prove to be correct. The forward-looking statements contained in this presentation speak only as of the date of this presentation.
NO OFFER
• No offer is made by this presentation. Any offer to invest in Solegear and any such investment will be made only pursuant to a definitive Subscription Agreement to be entered into between Solegear and each investor.
PROJECTIONS
• This presentation contains certain financial projections, which have been prepared by Solegear and are subject to a high degree of uncertainty. They are based upon estimates of future events and circumstances that might or might not ultimately prove to be accurate. All of the assumptions upon which the projections are based, and which would be material, are not presented. No representation or warranty can be made as to the accuracy of any of these assumptions. There can be no assurances that the projections will be realized, and actual results may differ materially from those set forth in the projections. The assumptions underlying the projections are inherently uncertain and are subject to significant business, economic, and competitive risks and uncertainties that would cause actual results to differ materially from those projected. No opinion or report on the projections was received from any independent accountants. If the projected results are not achieved, Solegear’s business and financial performance could be affected. Because of the above limitations on these projections, you are cautioned about placing undue reliance on them.
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Investment Highlights
Large & Growing Market
$21B by 2019Estimated Bioplastics Market ~20%-30% CAGR (2013-
2019
Diversified Customer Base60+ Customers Across 20 States & Provinces
National, regional, small business retailers, food producers, food
packers & packaging distributors
Low Capital Business
ModelOutsourced Vertically
Integrated Supply Chain Providing competitive priced products with strong gross
marginsStrong Revenue Growth
13.7x YoY Revenue Growth For FY17
Recurring revenues & cross selling additional SKUs to existing
customer
47% Insider Ownership
Strong Institutional & Management OwnershipInsiders – Institutional - Strategic
78%
Wide Product Assortment
Over 130 Plant-based Products Available
100+ food packaging and 30+ home & business organizational
products
Skilled LeadershipSalil Munjal, ChairmanPartner at Yaletown Venture Partners: Top VC in Canada, #1 Most Active ranked by Thomson Reuters. Former President & COO Leitch Technologies (TSX/NASDAQ): acquired for $580 million cash.
Paul Antoniadis, Chief Executive OfficerFounding Partner at Scenario Ventures. Former CEO Best Buy Europe: $6 billion JV between Best Buy and The Carphone Warehouse. Former SVP, Int’l Retail Ops & President China at Best Buy: multi billion sales and sourcing division. Paul also held VP of Sales Development for Best Buy US, where he was responsible for sales strategy, support and execution of $30.8 billion in sales.
Don Holmstrom, EVP/CFOResponsible for Corporate Development & Finance. Closed acquisition and divestiture of over 180 business transactions throughout North America, close to $1 billion worth of transaction value and raised close to $100 million in debt and equity capital.
Dr. Michel Labonté, CTOPhD in Bioplastics Packaging from École Polytechnique (Montréal). Formerly at Bombardier: first to produce polycarbonate snowmobile windshield. Chemical/process engineering and design background.
Noel Harvey, SVP Sales Strategy & Business DevelopmentNoel brings over 25 years of sales and business development experience to his role. Prior to joining Solegear, Noel was Director of Business Development of Green Solutions at Ingredion Inc., a global ingredient provider to the food, personal care, paper and packaging markets.
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High Performance Bioplastic Products
• Assortment of 100+ food packaging and 25+ household/business organization products
• Distributing finished “better everyday products” under good naturedTM brand
• Replacing fossil fuel inputs in conventional plastics with the highest possible percentage of renewable plant-based materials
• Free of Chemicals of Concern (as defined by California’s stringent Proposition 65)
• End-of-life options include recyclability, incineration or industrial composting where such facilities exist
• CO2 emissions can be reduced by up to 60% during manufacturing due to lower processing temperatures
• Cost competitive without sacrificing performance or design
• Selling to 60+ customers and growing………making the change to bioplastics is an easy decision
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Growing Demand for Safer PlasticsConsumers seeking alternatives for packaging & products that’s safer for their families and the environment Plastics are not all recycledPlastics Generation & Recycling, 1960 to 2014 (source EPA Dec 2016 advancing Sustainable materials management 2014 tables &
figures)
Chemicals of ConcernsConnected Social World Drives Demand
for Transparency on Additives in Plastics (Malorie Macklin One Green Plant, Scientific America
2008)
• 93% of Americans Test Positive for BHP (Source CDC)• 1000 Chemicals of Concern listed on Proposition 65• Synthetic chemicals and additives listed in
Proposition 65 connected to cancer, birth defects and reproductive issues
• Styrene added in 2016 to Proposition 65, found in high heat packaging application
• Growing evidence that phthalates added to plastic can leach and cause reproductive harm
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Bioplastics: $21B market by 2019
Source: Grand View Research 2014, European Bioplastics 2013, BCC Research 2014, Nexant Inc. 2012
$324BBioplastics:
<1% market share$3.75B
$455B2013
$540B2019
$803B2030
4% market share$21B
40% market share
Bioplastics Oil-based plastics
GLOBAL PLASTICS MARKET• Bioplastic market expected to
grow at up to 30% CAGR 2013-2030
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Targeted North American Verticals
Home & Business Organization
$15B
Rigid Packaging
$50B
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Go-To-Market Based on Verticals, Groups & SegmentsOur Objective:• To harvest value from targeted market verticals by providing our 3
customer market segments with the widest assortment of packaging & products.
Target Market Verticals
PackagingHome/Business
Organization Products
Market Segments
Business Groups
Bakery Ready Meals
Produce
Deli/Butche
r
Dairy/ Frozen
Roll Stock
Office Home Kitchen
National
Regional
Small Business
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Growth - Growing Recurring RevenuesServing 60+ North American customers in all 3 market segments across 20 different states & provinces
National • 65% to 55% revenue mix
• National customer are defined as multi-national or coast to coast distribution or reseller network. Several example of such customers:
Regional• 25% to 20% revenue mix
• Regional customers are defined as not having coast to coast distribution or reseller network. Several example of such customers:
Small Biz• 25% to 10% revenue mix
• Small Business customers are defined as sole proprietors or chains specific to a provenience or state. Several example of such customers:
Growing Sales Pipeline with Recurring Purchase Orders & Cross Selling Opportunities
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IP Fully Compatible with Existing Manufacturing
• No special equipment or processes required
• Thermoforming and injection molding formulation
• Supports complex designs
• Wide range of applications: from packaging to consumer products
• Proprietary technology under US Patent 9,416,255 and other patent pending formulations
• Price competitive
Unique Capital-Light Business Model
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Commercialization-focused business model
1. ProprietaryFormulations
Value we canbuild on
3. Outsourced Supply Chain & Tolled Manufacturing
Lowers costs, increases flexibility
2. Collaborative R&D
Benefit from the highest expertise
4. Pull-based Sales & Inventory
Customer demand drives development
Build Market Share and Drive Cash FlowsVery competitively-priced products
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YTD through Q3 Q4 Estimate YTD Estimate
$65,519 $88,861 $146,036
$1,375,980
$624,020
$2,000,000
F2016 F2017 13.7x
GROWTH
FY2017 YTD Results through Q3 & Q4 & Year Ending Estimated Results CDN$
• Company reported 573% revenue growth in Q3 F2017 compared to Q3 F2016, • For 9 months ended Q3, F2017 grew 22x compared to the same period F2016• Estimates 602% growth rate for Q4 compared to Q4 F2016 - Company provided guidance to Q4 sales on February 9, 2017• Estimates a FY2017 YOY growth rate of 1263%• Company will provide guidance for F2018 at the time of releasing FY2017 audited statements
FY2017 Financial Performance CDN$
Solegear’s Year End
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Major Shareholder Ownership
• Participated in all financing rounds
• Canada’s most active private independent VC (Thomson Reuters)
• Current ownership: 27%
• Founded in 1983 in Richmond, Illinois
• One of the first extruders to successfully produce and market packaging material made from plant-based sources
• Current ownership: 9%
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Share StructureCompany
As at March 31, 2017 Total Shares % of TotalShares
Escrowed% of
HoldingsTotal Mgmt., Directors & Insiders
34.95M 48% 17.5M 50%
Institutional & Strategic Investors
21.91M 30% 6.6M 30%
All Other Shareholders 16.07M 22%
Total Shareholders 72.92M 100% 24.1M 33%
Share StructureAs at March 31, 2017
Issued & Outstanding 74,806,854
Options 7,291,466Warrants 27,657,5501
Fully Diluted 109,755,870Total Capital Raised To Date $10,543,714
Share Trading VolumeJanuary 1, 2017 to April 17, 2017
YTD Share Volume Traded 5,985,000
YTD Avg Daily Volume 91,93552 Week High C$0.18552Week Low C$0.105
Warrants 18,664,651 @ $0.35 maturity March 2018; 17,235,976 @ $0.20 Maturity November 2018 with force convert with 20 non-consecutive days trading above $0.20 share price, 875,912 @ $0.15 Cent Broker warrants maturity Nov/Dec 2018, 52,231 @ $0.1875 Oct2021 commercial loan warrants, 823,790 Commercial Warrants maturity Oct 2019
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