anne waddell, vice president, public affairs, bioamber inc
TRANSCRIPT
© 2015 BioAmber Inc. All Rights Reserved. June 26, 2016 :: 1
Accelerating Clean InnovationPresentation to the North American Climate
Policy Forum – June 22-23, 2016
Forward-Looking Statements. This presentation contains express or implied forward-looking statements, which are based on current expectations of management.These statements relate to, among other things, our expectations regarding management’s plans, objectives, and strategies. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business and results of operations; any statements of the plans, strategies and objectives of management for future operations, including the timing, funding and construction of planned manufacturing facilities; any statements of expectation or belief regarding future events, potential markets or applications, the sizes of addressable markets, expected technology developments, strategic partnerships and collaborations, or enforceability of our intellectual property rights; any statements about the projected or expected economic or other benefits of our products compared to petroleum-derived equivalents, future sales and any statements of assumptions underlying any of the foregoing.
Forward-looking statements are subject to a number of risks, assumptions and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in periodic reports filed with the Securities and Exchange Commission (SEC), as well as other documents that may be filed by us from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the expected funding sources of our future manufacturing facilities and the expected timing of the construction and the start of commercial operations of of these facilities; our joint venture with Mitsui & Co. Ltd; our offtake agreements with Vinmar International Ltd, related to bio-based 1, 4 BDO and bio-succinic acid, and with PTTMCC Biochem for bio-succinic acid; the expected applications of our products and the sizes of addressable markets; our ability to gain market acceptance for bio-succinic acid, its derivatives and other building block chemicals; the benefits of our yeast; our ability to ramp up commercial sales and execute on our commercial expansion plan, including the timing, volume and margins of our future production and sales; the expected cost-competitiveness and relative performance attributes of our bio-succinic acid and the products derived from it; our ability to cost-effectively produce and commercialize bio-succinic acid, 1,4-BDO and THF; customer qualification, approval and acceptance of our products; our ability to maintain and advance strategic partnerships and collaborations and the expected benefits and accessible markets related to those partnerships and collaborations; the impact of our off-take agreements on our business with our customers, our distributors and our current and future equity partners; our ability to economically obtain feedstock and other inputs; the achievement of advances in our technology platform; our ability to obtain and maintain intellectual property protection for our products and processes and not infringe on others' rights; government regulatory and industry certification approvals for our facilities and products; government policymaking and incentives relating to bio-chemicals; and the other factors listed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and Form 10-Q for the quarter ending September 30, 2015.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Before you invest, you should read the documents the issuer has filed with the SEC for more complete information about the Company. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Trademarks. Our trademarks may not be copied, imitated or used, in whole or in part, without our prior written permission. Other trademarks, registered trademarks or logos, company names or logos displayed in this presentation are the property of their owners.
© 2015 BioAmber Inc. All Rights Reserved. 2
SAFE HARBOR STATEMENT
© 2015 BioAmber Inc. All Rights Reserved. 3
FAVORABLE TRENDS & TIMING
A FUNDAMENTAL SHIFT is occurring in the chemical industry:
• Switching to more sustainable products and processes
• Driving growth of renewable building block materials
BioAmber is ready to capitalize on this shift TODAY:
• We make renewable building block materials
• Our first commercial manufacturing facility is operational
• Our bio-based building blocks can drop into existing supply chains
CLEAN/GREEN CHEMISTRY SHOULD BE STANDARD PRACTICE
© 2015 BioAmber Inc. All Rights Reserved. 4
OUR TECHNOLOGY – THE EXACT SAME CHEMICALS
We use sugars to produce exactly the same building blocks as petrochemicals
Our Sugar-BasedBiotechnology
Conventional Oil-Based Process
Corn Cane / Beets Biomass Pumpingcrude
Deep sea Oil sands
Sugar NaphthaBuilding Block Materials
Our advantage: technology that delivers disruptive cost
© 2015 BioAmber Inc. All Rights Reserved. 5
BIOTECHNOLOGY OPERATING AT COMMERCIAL SCALE
Fermentation
Sugar
Purification
Succinic Acid (SA)
Strong IP Portfolio
Innovative Yeast
Proven at Commercial Scale
ISO Certified
A demonstration plant is the only reliable way to scale; the jump in scale should not be greater than 10 times the capacity of the unit
Scaling is critical
© 2015 BioAmber Inc. All Rights Reserved. 6
INVESTMENT HIGHLIGHTS
INNOVATIVE biotechnology is a game changer:
• Cost structure is disruptive to the petrochemical industry
• Manufacturing has low green house gas emissions
• Business model does not rely on market subsidies
FIRST MOVER advantage:
• World’s largest succinic acid manufacturing facility – Sarnia, Ontario
• Track record of delivering on important milestones
Poised for RAPID GROWTH:
• Plant output committed to customers under contract
• Expected to generate attractive margins
© 2015 BioAmber Inc. All Rights Reserved. 7
SA IS A BUILDING BLOCK WITH MANY USES
Bio-basedSuccinic Acid (SA)
Paints &Coatings
Plastics Adhesives
Personal Care Plasticizers Polyurethanes
Lubricants Food & Flavors
ArtificialLeather
Green Chemistry has a place in almost every industry. Benefits include reductions in:
• GHGs• Endocrine disruptors• Carcinogens• Skin irritants• Wildlife and aquatic
toxins
© 2015 BioAmber Inc. All Rights Reserved. 8
7.1
-0.2
-2
0
2
4
6
8
Petrochemical SA BioAmber SA
Carb
on
In
ten
sit
y (
kg
CO
2e/k
g S
A)
Green House Gas Emissions
100%REDUCTION
Field-to-Gate Energy and Greenhouse Gas Emissions Associated with Succinic Acid Produced At BioAmber’s Facility In Sarnia Ontario, Canada
97.7
34.7
-20
0
20
40
60
80
100
120
Petrochemical SA BioAmber SA
En
erg
y U
se (
MJ/k
g S
A)
Energy Consumption
64%REDUCTION
BIOAMBER: A SIGNIFICANTLY MORE SUSTAINABLE FOOTPRINT
© 2015 BioAmber Inc. All Rights Reserved. 9
GREEN CHEMISTRY DRIVERS
© 2015 BioAmber Inc. All Rights Reserved. 10
SA DROPS INTO EXISTING SUPPLY CHAINS
Petrochemical Building Blocks
Formulated Materials
Final Product Manufacturing
Brand Owners
EXISTING SUPPLY CHAIN
Formulated Materials
Final Product Manufacturing
BIOAMBER SOLUTION
BioAmber Succinic Acid
90% of all manufactured goods are linked to the global chemistry industry
Brand Owners
Cost competitive and better performance – no charge for green
© 2015 BioAmber Inc. All Rights Reserved. 11
PROJECTED GROWTH OF GLOBAL SA MARKET
51,000 MT
Succinic Acid (SA) Market
Market Size (2011)
659,408 MTProjected*
2020 Market
35%Projected*
CAGR 2012-20
* Projections are the average of the high end of the range reported by six studies published since 2012: Roland Berger, Weastra, Grand View, Allied Research, HIS, Global Industry
Textiles
Polyurethane
Synthetic Leather
Bio-Plastics
Food & Flavors
Lubricants
Personal Care
Examples of Customers
© 2015 BioAmber Inc. All Rights Reserved. 12
OUR NEXT PLANT WILL PRODUCE ADDITIONAL BUILDING BLOCKS
EXPECTED PLANT OUTPUT
60,000 MT SA
70,000 MT BDO
24,000 MT THF
Plant #2 Will Be Located in North America - $500M Investment (expected 2019)
Succinic Acid ProductionSuccinic Acid Production BDO & THF ProductionBDO & THF ProductionSugarSugar
Bio-based1,4-Butanediol(BDO)*
$4.0 Billion
market
Bio-basedTetrahydrofuran(THF)*
$2.0Billion
market
* Market sizes are estimates based on 10 year average prices
BDO market projected to grow at
6.5% CAGR between 2012 and 2025
Sources: Technon Orbichem 2014, ChembizR 2015, IHS 2014
© 2015 BioAmber Inc. All Rights Reserved. 13
OUR NEXT PLANT – INDUSTRIAL BIOTECHNOLOGY+ TRADITIONAL CHEMISTRY
Proven Conversion Technology
Hydrogenation
Distillation
BDO & THF
Strong IP Portfolio
Turn-key License
Performance Guarantees
14 plants built worldwide
Succinic Acid
Proven Fermentation Technology
Two Proven Technologies - World’s first commercial biobased BDO/THF plant
Sugar
Fermentation
SA replaces maleic anhydride(petroleum based)
Purification
Succinic Acid (SA)
Strong IP Portfolio
Innovative Yeast
Proven at Commercial Scale
ISO Certified
© 2015 BioAmber Inc. All Rights Reserved. 14
TODAY’S PBS SUPPLY CHAIN
100% biobased succinic acid
glucose from corn
60% biobased PBS
30,000 MT SA 20,000 MT PBS
Supply Offtake Contract
biobased modified PBS
PBS manufacturer
Polybutylene succinate (PBS) - a polyester developed for its biodegradability, physical and mechanical properties, thermal and chemical resistance and ease of processing. Purported to be totally biodegradable under normal conditions. PBS approximates common thermoplastics like polypropylene in its performance and therefore presents tremendous possibilities.
Wet-mill
© 2015 BioAmber Inc. All Rights Reserved. 15
SA + BDO = PBS – BIOBASED PBS SUPPLY CHAIN IN 2019?
100% biobased SA & BDO
glucose from 2nd Gen.
100% biobased PBS
100,000 MT SA70,000 MT BDO
20,000 MT PBS
Offtake Offtake Contract
biobasedmodified PBS
Contract
Auto Parts
27,000 MT
PBS Manufacturer Compounder
Green chemistry incorporates every element of business, from product design to feedstock selection through manufacturing to finished products, engaging customers throughout the supply chain
© 2015 BioAmber Inc. All Rights Reserved. 16
POLICY THAT WORKED –WHAT MORE IS NEEDED?
What Worked What is Needed
• $51M for Sarnia in low interest loans and grant - SJIF, FedDev, Agri-Innovation, SDTC
• SDTC technology due diligence key to EDC acceptance
• EDC-led consortium project financing including Farm Credit Corp.
• BDC working capital • Community partners – City of
Sarnia-Lambton, Lambton College, OFA, industry-savvy local MP
• Foresight of government sector policy
• Cluster developers – BioindustrialInnovation Canada
• Reasonable cost capital for commercial scale projects, e.g., US DOE REEP loan and loan guarantees to commercial scale projects – spread the risk across a portfolio
• SDTC should broaden its mandate; downplay fuels (low value add); loan guarantees for commercial projects
• Address lag time for incorporation of a new substance – presently 10 yrsfor the auto industry
• Connect partners across the supply chain
• Green bonds for commercialization of clean technologies
• Faster turn-around time for new product approvals
www.bio-amber.com
Contact info
© 2015 BioAmber Inc. All Rights Reserved. 17
1250 Rene Levesque Blvd West, Suite 4310Montreal (Quebec) Canada H3B 4W8
w: 613-402-3667
BioAmber Inc.
Anne Waddell, VP, Government Affairs