cerp ppt_041710 revised

8/9/2019 Cerp Ppt_041710 Revised

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pril 2010pril 2010:ASDAQ CERPASDAQ CERP


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Safe Harbor StatementSafe Harbor Statement

Matters discussed in this Presentation contain forward-looking statements

within the meaning of the Private Securities Litigation Reform Act of

1995. When used in this document, the words "anticipate," "believe,"

"estimate," "may," "intend," "expect" and similar expressions identify such

forward-looking statements. These forward-looking statements are subject

to risks, uncertainties, assumptions, and other factors that may cause the

actual results, performance or achievements to differ materially from those

contemplated, expressed or implied by such forward-looking statements.

These factors include, but are not limited to, risks and uncertainties

associated with the impact of economic, competitive and other factors

affecting the Company and its operations, markets, product, and distributor

performance, the impact on the national and local economies resulting

from terrorist actions, and U.S. actions subsequently; and other factors

detailed in reports filed by the Company.


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Problems With PlasticProblems With Plastic

1.1. Environmental SledgehammerEnvironmental Sledgehammer

n200 million tons of plastic a year200 million tons of plastic a year

nLasts 400 yearsLasts 400 yearsnOnly 3.5% is recycledOnly 3.5% is recycled

nLeaches harmful substancesLeaches harmful substances

nConsumes 8% of annual oil productionConsumes 8% of annual oil production

Cereplast has a patented intellectual property that solvesCereplast has a patented intellectual property that solves

key problems for an existing and active trillion dollar marketkey problems for an existing and active trillion dollar market


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Problems With PlasticProblems With Plastic

2.2. CostCost

nPetroleum is a limited resourcePetroleum is a limited resource

nIncreasing cost over the long termIncreasing cost over the long termnNon-renewableNon-renewable

Cereplast has a patented intellectual property that solvesCereplast has a patented intellectual property that solves

key problems for an existing and active trillion dollar marketkey problems for an existing and active trillion dollar market

Price of Plastic Resin 1996 to Present

$1.00

$0.89/lbs.

10/30/09

$76.00 / bbl

10/30/09

Price of Crude Oil 1998 to Present

$100.00


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Very Large New MarketVery Large New Market

Total market for plastic resin

worldwide: 1 Trillion lbs. a year

About $2.5 Trillion ayear

Polyolefin market segment 495 Billion lbs. a year

About $500 Billion ayear

Polypropylene market

segment 110 Billion lbs. a year

About $100 Billion ayear

Worldwide Plastic Resins MarketWorldwide Plastic Resins Market(billions of lbs.)(billions of lbs.)

PolypropylenePolypropylene

110110

Other505

Polyolefin495


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Company OverviewCompany Overview

n

n

Cereplast Product Offering

Compostables Resins(Single-use applications)

Hybrid Resins(Durable applications)

100% renewable content100% renewable content Approx. 50%Approx. 50%

renewable contentrenewable content100% biodegradable and100% biodegradable and

compostablecompostable

Reduced petroleum content

Reduced petroleum content

Can be used in all majorCan be used in all majorconverter processesconverter processes

Can be used in all majorCan be used in all majorconverter processesconverter processes

Applications:

Applications:

Foodservice ware andFoodservice ware and

packagingpackaging

Applications:Applications:

Automotive, consumerAutomotive, consumer

goods, electronics, toysgoods, electronics, toys


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Cereplast Compostables ResinsCereplast Compostables ResinsOverviewOverview

n


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Cereplast Hybrid ResinsCereplast Hybrid Resins OverviewOverview

n


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Cereplast Management TeamCereplast Management Team


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Cereplast Management TeamCereplast Management Team


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Capital Structure OverviewCapital Structure Overview

# of Shares % of Class

Cereplast Management

Frederic Scheer 2,732,621 25%

Management 106,434 1%

Cereplast Board of Directors 75,000 0.7%

Total Insiders 2,914,055 26.5%

Institutional Investors 2,140,000 19.5%

Float 5,941,945 54%

Total Outstanding Shares 10,996,000 100%

CEREPLAST CAPITALIZATION TABLE
http://www.zkb.com/de/laender-screen-out.htmlhttp://www.sam-group.com/htmle/main.cfmhttp://www.credit-suisse.com/


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Customer Value PropositionCustomer Value Proposition

n

i d d bl i l i kBi d d bl Bi l ti M k t
http://www.dorel.com/index.htmlhttp://car-blueprints.narod.ru/images/peugeot/Peugeot_logo.jpghttp://www.berryplastics.com/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g30-BgRydDRwMLV19DA6MAQz9fXwsTAwMDI_1wkA48Kgwg8gY4gKOBvp9Hfm6qfkF2dpqjo6IiAMJzuno!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfRjVTU0FCMUEwOEVNMTAyUDFOTU04NDAwMDI!/http://www.bunge.com/corporate-home.htmlhttp://www.microsoft.com/http://www.wna-inc.com/company/index.phphttp://www.trlcompany.com/


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Biodegradable Bioplastics MarketBiodegradable Bioplastics MarketSizingSizing

Market Opportunities

Biodegradable Plastics Market Growth Hybrid Resins: Increasing Opportunities

0

20 0

400

600

800

,1 0 0 0

,1 2 0 0

,1 400

2 0 06 2 0 07 E2 0 0 8 E2 0 0 9 E2 0 1 0 E2 0 1 1 E2 0 1 2

Million Pounds

2007 2012E CAGR: 17.3%

PP ($/lb)Oil ($/bbl)


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Market OpportunityMarket Opportunity

495 billion pounds of

commodity plastics are

produced annually

Amorphous -emi crystalline

Commodity

Engineering

-igh performance

( / )Price $ lb

PSUPES

PPSU

PEI

PCPOABS PMMA

PVCS PPLDPEHDPE

ETPV ACETAL

POMPC ETPBTET

PA

PIPCT LCPPPA HPPA

PPS$10

$1

Cereplast resins can address a large portion of the plastic industry

L T T d D i iL T T d D i i


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Long-Term Trends DrivingLong-Term Trends DrivingBioplastics GrowthBioplastics Growth

n Rising, Volatile Oil Prices and Energy Security ConcernsRising, Volatile Oil Prices and Energy Security Concerns

Approximately 8% of oil is converted into plastics in the USAApproximately 8% of oil is converted into plastics in the USA 8% of oil is the same amount used for jet fuels in the USA8% of oil is the same amount used for jet fuels in the USA

n Environmental ConcernsEnvironmental Concerns

Overfilling of landfills and degradability of plastic wasteOverfilling of landfills and degradability of plastic waste

Health concerns about the use of certain plastics in food and human contactHealth concerns about the use of certain plastics in food and human contact

Lack of recycling of traditional petrochemical plasticsLack of recycling of traditional petrochemical plasticsl EPA estimates that less than 6% of waste plastic is currently recycledEPA estimates that less than 6% of waste plastic is currently recycledl Managing the carbon cycleManaging the carbon cycle

n Favorable Regulatory InitiativesFavorable Regulatory Initiatives

Federal government announced a major policy directive that designates products madeFederal government announced a major policy directive that designates products madefrom bio-based plastics as a preferred purchasing itemfrom bio-based plastics as a preferred purchasing item

Petroleum-based plastic bans / taxesPetroleum-based plastic bans / taxes

n Improving Performance and Competitiveness of Bioplastic ResinsImproving Performance and Competitiveness of Bioplastic Resins

dly displace petroleum-based plastics as commercially feasible alternatives are o


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Cereplast Business ModelCereplast Business Model

FinishedProducts

ResinManufacturing

RenewableFeedstock

Polymers

Converters &Brand owners

Hybrid & Compostable
http://www.wna-inc.com/company/index.phphttp://harvestcollection.genpak.com/


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Cereplast Technical AdvantagesCereplast Technical Advantages

n Proprietary Resin FormulationsProprietary Resin Formulations

48 formulation patents and patent applications in the U.S. and worldwide48 formulation patents and patent applications in the U.S. and worldwide Addressing an ever widening array of applicationsAddressing an ever widening array of applications

Work with portfolio of bio-based feedstockWork with portfolio of bio-based feedstock

n Efficient Resin ProcessingEfficient Resin Processing

High-speed and low cost manufacturing process requiring significantHigh-speed and low cost manufacturing process requiring significantknow-howknow-how

Utilizes conventional resin compounding equipmentUtilizes conventional resin compounding equipment

n Ease of Use by Converter ClientsEase of Use by Converter Clients

Specially formulated to work on conventional equipment utilized bySpecially formulated to work on conventional equipment utilized byconvertersconverters

Lower temperature fabrication versus petrochemical based plasticLower temperature fabrication versus petrochemical based plasticproductsproducts

n Resin PropertiesResin Properties

Designed to deliver properties similar to traditional plasticsDesigned to deliver properties similar to traditional plastics

Reduced environmental impactReduced environmental impact

n Strong Technical TeamStrong Technical Team

Collectively over 75 years of bioplastic development experienceCollectively over 75 years of bioplastic development experience


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Cereplast ManufacturingCereplast Manufacturing


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Outside/Independent DirectorsOutside/Independent Directors

n Jacques VincentJacques Vincent

Current Vice Chairman of Groupe DanoneCurrent Vice Chairman of Groupe Danone

Served as the Chief Operating Officer at Groupe Danone, where he began his career in 1970 and heldServed as the Chief Operating Officer at Groupe Danone, where he began his career in 1970 and heldvarious financial and overall management positions within the companyvarious financial and overall management positions within the company

Graduate engineer of the Ecole Centrale, Paris, holds a bachelors degree in economics from ParisGraduate engineer of the Ecole Centrale, Paris, holds a bachelors degree in economics from ParisUniversity and an MS from Stanford UniversityUniversity and an MS from Stanford University

Also the Chairman of Daniel Carasso Research Center and Ecole Normale Superieure de Lyon, and aAlso the Chairman of Daniel Carasso Research Center and Ecole Normale Superieure de Lyon, and aboard member of Syngenta in Switzerland and Yakult Honsha in Japanboard member of Syngenta in Switzerland and Yakult Honsha in Japan

n Petros KitsosPetros Kitsos Managing principal of TBL Strategy in Los Angeles, a strategic consulting firm focused on theManaging principal of TBL Strategy in Los Angeles, a strategic consulting firm focused on the

industrial sectorindustrial sector

Prior to establishing TBL Strategy, had a distinguished 16-year career in investment banking withPrior to establishing TBL Strategy, had a distinguished 16-year career in investment banking withCitigroup and the predecessor companies where among other duties he was Citigroups Head ofCitigroup and the predecessor companies where among other duties he was Citigroups Head ofWestern Region M&A, Head of Global Aerospace Group, Co-Head of Los Angeles CorporateWestern Region M&A, Head of Global Aerospace Group, Co-Head of Los Angeles CorporateFinanceFinance

MBA with honors from Harvard Business School, and Phi Beta Kappa graduate of Hamilton CollegeMBA with honors from Harvard Business School, and Phi Beta Kappa graduate of Hamilton Collegewhere he currently serves on the Board of Trusteeswhere he currently serves on the Board of Trustees

n Steve HanniSteve Hanni

Current Partner atCurrent Partner at Stayner, Bates & Jensen, PC, Certified Public Accountants, based in Salt Lake CityStayner, Bates & Jensen, PC, Certified Public Accountants, based in Salt Lake City

Previously served as a partner with HJ & Associates, LLC, a public accounting firm also in Salt LakePreviously served as a partner with HJ & Associates, LLC, a public accounting firm also in Salt LakeCityCity

Masters and bachelors in accounting from Weber State University; CPA licensed in Utah and NevadaMasters and bachelors in accounting from Weber State University; CPA licensed in Utah and Nevada


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Recent Customer DevelopmentRecent Customer Development
http://www.bunge.com/corporate-home.htmlhttp://www.dorel.com/index.html


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OpportunityOpportunity

n Cereplast has patented intellectual property that solves key problems for anCereplast has patented intellectual property that solves key problems for an

existing and active trillion dollar market.existing and active trillion dollar market.

n The Company has agreements with major brand name customers, many ofThe Company has agreements with major brand name customers, many ofwhom are expanding. Existing agreements could lead to exponentiallywhom are expanding. Existing agreements could lead to exponentiallyincreasing revenues in 2010 and beyond.increasing revenues in 2010 and beyond.

n Current wave of legislation and environmental awareness continue to driveCurrent wave of legislation and environmental awareness continue to drivethis market.this market.

nNew and exciting technologies are under development.New and exciting technologies are under development.

n Depth of knowledge and experience in management, technology and BoardDepth of knowledge and experience in management, technology and Boardof Directors.of Directors.

n Attractive Valuation: Company is trading at a discount relative to peers thatAttractive Valuation: Company is trading at a discount relative to peers thathave less revenue.have less revenue.

n Cereplast has a sustainable advantage to grow to hundreds of millions inCereplast has a sustainable advantage to grow to hundreds of millions inrevenue and become a market leader in the dynamic space.revenue and become a market leader in the dynamic space.


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THANK YOUTHANK YOU

CEREPLASTCEREPLAST

300 NORTH CONTINENTAL BLVD.300 NORTH CONTINENTAL BLVD.

SUITE 100SUITE 100EL SEGUNDO CA 90245EL SEGUNDO CA 90245

TEL: (310) 676 5000TEL: (310) 676 5000WWW.CEREPLAST.COMWWW.CEREPLAST.COM
http://www.cereplast.com/http://www.cereplast.com/http://www.cereplast.com/

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