Private & Confidential
Private & Confidential
Kevin Matthews - CEO
Robin Cridland – CFO and Company Secretary
Revolymer
October 2014
Private & Confidential
Page 1
Disclaimer
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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
• He is currently serving as non-executive director of the FTSE 250 specialty chemicals company
Elementis 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
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Jack Keenan – Independent Non Executive Chairman
Formerly CEO & Chairman of Kraft International
CEO of Guinness, United Distillers & Vintners and an
executive director of Diageo
NEDs have included Body Shop, M&S, General Mills,
Tomkins; Senior Advisor to Oaktree Capital
Management
Kevin Matthews - CEO
20+ years senior management, BD and
corporate development experience
Formerly CEO of Isogenica and Oxonica
Serving 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
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Revolymer H1 2014 Business Highlights “Polymer technology company that designs, develops and formulates novel polymers to
improve the performance of existing consumer products within large FMCG markets”
Consumer Specialties
• Focus on executing commercial deals in the high value consumer specialties business area
(e.g. household products, personal care):
• Global licence agreed with Solvay for use of encapsulation polymer technology
• Progressing a portfolio of other product development programmes towards
commercial deals (“multiple shots on goal”)
Nicotine Chewing Gum
• Commercialisation through the white / private label channel:
• US supply and distribution agreement with PL Developments
• Continued progress made in the EU regulatory approval process
• Continuing sales of nicotine gum in Canada through a Canadian retailer
Funding
Cash and cash equivalents at 30 June 2014 of £15.2m (2013: £19.7m), providing future
runway to deliver key commercial projects
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Revolymer Technology Overview
Polymer technology
Skin e.g.
moisturiser
• Revolymer’s portfolio of development programmes is based on its patented polymer technology
• Revolymer is applying these technologies to develop novel polymers for use in the next generation
of polymer-enhanced consumer products across a range of FMCG markets
Personal Care Medicated Gum
Hair e.g.
Styler
Dental e.g.
whitener
Encapsulated Peroxides
e.g. PAP, SPC
Household Products
Other Encapsulated
Actives e.g. enzymes and catalysts
Other e.g.
sealants
Nicotine Gum
Skin e.g.
moisturiser
Hair e.g.
Styler
Dental e.g.
whitener
Encapsulated Peroxides
e.g. PAP, SPC
Other Encapsulated
Actives e.g. enzymes and catalysts
Skin e.g.
moisturiser
Hair e.g.
Styler
Dental e.g.
whitener
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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
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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
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Consumer Specialties: Solvay Licence
• First commercial deal delivered in household products segment - Global licence of encapsulation
technology to Solvay for use with the cleaning and disinfecting active 6-phthalimido-
peroxyhexanoic acid (“PAP”), currently commercialised as Eureco(TM)
• Improved stability of PAP formulations applying Revolymer’s encapsulation technology
• Expanding the market for PAP into a broad range of fields including cleaning, disinfection and
deodorisation in solid, gel and liquid formulations of detergents
• Industry segments targeted by Solvay include laundry detergents and additives and dish wash
agents in the consumer, domestic, industrial and institutional markets
• Royalty payments on net sales of products containing encapsulation technology
• Technology validation paving the way for further licences in the household products segment
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Revolymer Partner
Polymer formulation
development
Formulation performance
testing
Formulation safety testing
Product Concept
*including early customer testing
Key milestones: delivered and future
Polymer formulation
development
Internal Formulation performance
and safety testing
Customer Formulation/
Product performance
and safety testing
Production scale-up
COMMERCIAL LICENCE
Customer acceptance
testing
Sales & royalties to Revolymer
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Consumer Specialties: Solvay - Supply Chain Positioning
(Institutional Market)
Active Manufacturer e.g. Solvay, Kemira,
OCI, Evonik
Institution e.g. hospitals,
restaurants, hotels
I - 2 I - 1
Distributor / Formulator
Solvay
I
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Consumer Specialties: Solvay - Supply Chain Positioning
(Consumer Market)
Private Label Producer e.g. McBride
Brand Producer
e.g. RB, Unilever, PnG, Henkel
Active Manufacturer e.g. Solvay, Kemira,
OCI, Evonik
Retailer Consumer
C - 3 C C -1 C - 2
Solvay
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• Progressing a portfolio of other projects towards commercial deals – a number now at
an advanced stage
• Household Products: further deals for encapsulation technology applied to
stabilisation of laundry and non-laundry cleaning actives subject to on-going
discussions (e.g. SPC)
• Personal Care: new products being developed for global brand owners
• TSB grant funding to develop marine fouling control coatings – 2-year funded
collaborative research project with AkzoNobel’s International Paint Ltd, the University
of Liverpool and Newcastle University
Consumer Specialties: Other Progress
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Building a nicotine gum franchise - Significant developments made in the commercialisation, through the
white/private label channel, of our proprietary nicotine gum products
US
• Supply and distribution agreement for the United States of America signed with PL Developments LLC
(“PLD”)
• Preparation of an application for marketing approval in the US
Europe
• Sep 2014: confirmation of compliance with the principles and guidelines of good manufacturing
practice (“GMP”) from the MHRA
• Nov 2013: Submitted regulatory filings for marketing approval of our nicotine gum in Europe
• Oct 2013: Distribution agreement signed for nicotine gum in Poland, Hungary, Czech & Slovak
Republics
• Progressing towards commercial deals in other key European markets
Canada
• Continued sales of Revolymer’s proprietary nicotine gum in Canada following award of a contract to
supply a leading Canadian pharmacy chain
• Patent infringement proceedings ongoing
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Nicotine Gum: Progress
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Nicotine Gum: PLD - US Supply Chain Positioning
Manufacturer Retailer
e.g. pharmacy chains & grocery multiples
Consumer
C - 3 C C - 2
Distributor
PLD
C - 1
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Nicotine Gum: Product Commercialisation Key Milestones: delivered and future
US
Application to the FDA
Sale & distribution agreements
Sales & revenue
Product concept
Polymer formulation
development
Product development
Performance testing
Product development
Safety testing
Regulatory approval for
sale
Europe
Application for marketing authorisation
Sale & distribution agreements
Sales & revenue
Product concept
Polymer formulation
development
Product development
Performance testing
Product development
Safety testing
Regulatory approval for
sale
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Canada
Application for marketing authorisation
Regulatory approval for
sale
Sale & distribution agreements
Sales & revenue
Product concept
Polymer formulation
development
Product development
Performance testing
Product development
Safety testing
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Financials: Group Income Statement
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Unaudited
6 Months to 30 June
2014
Unaudited
6 Months to 30 June
2013
Audited
Year to 31 December
2013 £000 £000 £000
Revenue 366 22 528
Cost of sales (227) (276) (871)
Gross (loss)/profit 139 (254) (343)
Other operating income 30 166 194
Administrative expenses (2,917) (2,871) (5,328)
Group operating loss (2,748) (2,959) (5,477)
Finance income 57 105 193
Loss for the year before tax (2,691) (2,854) (5,284)
Taxation expense - - -
Loss for the year (2,691) (2,854) (5,284)
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Financials: Group Statement of Financial Position
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Unaudited
As at 30 June
2014
Unaudited
As at 30 June
2013
Audited
As at 31 December
2013 £000 £000 £000
Non-current assets
Property, plant and equipment 403 391 364
403 391 364
Current assets
Inventories 203 - 168
Trade and other receivables 340 328 534
Investments 13,000 17,000 15,500
Cash and cash equivalents 2,183 2,659 2,182
15,726 19,987 18,384
Total assets 16,129 20,378 18,748
Total Equity 13,750 18,349 16,084
Current liabilities
Trade and other payables 2,213 1,825 2,314
Non-current liabilities
Finance lease obligations and other payables 166 204 350
Total liabilities 2,379 2,029 2,664
Total Equity and liabilities 16,129 20,378 18,748
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Financials: Group Statement of Cash Flows
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Unaudited
6 Months to 30 June 2014
Unaudited
6 Months to 30 June 2013
Audited
Year to 31 December 2013
£000 £000 £000
Net cash outflow from operating activities (2,550) (2,154) (4,311)
Cash flows from investing activities
Interest received 44 27 193 Purchase of property, plant and equipment (126) (129) (183) Funds withdrawn from term deposits 2,500 - 1,500 Net cash inflow/(outflow) from investing activities 2,418 (102) 1,510
Cash received from issue of shares 133 16 84 Net cash inflow from financing activities 133 16 84
Net inflow/(outflow) in cash and cash equivalents 1 (2,240) (2,717) Cash and cash equivalents at beginning of year 2,182 4,899 4,899 Cash and cash equivalents at end of year 2,183 2,659 2,182
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• First commercial deal in consumer specialities – key milestone
delivered
• Focus on further commercial deals in Consumer Specialties
• Progress made in the commercialisation of proprietary nicotine gum
products
• Increasing commercial leadership
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Summary – Progress Across All Areas Of The Business