For personal use only
Revolutionising the production of
bio-based products
Leaf Energy Ltd
Investor Briefing
March 2014
For personal use only
Forward Looking Statements
This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any
securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the
securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should
consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor.
Certain statements made in this presentation are forward-looking statements. These forward looking statements are not
historical facts but rather are based on Leaf Energy’s current expectations, estimates and projections about the industry in
which Leaf Energy operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans,"
"believes," "seeks,” "estimates,“ “guidance” and similar expressions are intended to identify forward-looking statements. and
should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those
risks or uncertainties inherent in the process of developing technology and in the endeavour of building a business around
such products and services. These statements are not guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors, some of which are beyond the control of Leaf Energy, are difficult to predict
and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Leaf
Energy cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements,
which reflect the view of Leaf Energy only as of the date of this presentation. The forward-looking statements made in this
presentation relate only to events as of the date on which the statements are made. Leaf Energy will not undertake any
obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or
unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory
authority.
Leaf Energy’s GlycellTM Process
For personal use only
Overview
The GlycellTM process breaks down
waste plant material and produces
cellulose at any scale
The bio-based
market is growing
rapidly
Cellulose is a
building block for
bio-based products
Leaf Energy’s GlycellTM process’s
compelling advantages can
revolutionise bio-based markets
Cellulose
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The Future of Materials
Coal was the industrial
material of the 19th century
Oil was the industrial material
of the 20th century
Cellulose will be the industrial
material of the 21st century*
* Lüder Gerking, CEO, Nonoval GmbH & Co.KG
Leaf Energy’s Glycell™ Process
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Proprietary technology for cellulose production
The Glycell ™ process has compelling advantages
 Simple, innovative, low cost and effective
 Economic benefits
 Uses a waste reagent
 Significantly lower capital costs
 Low temperature and low pressure
 Significantly lower operating costs
 Operates continuously
 Off the shelf equipment
 Renewable readily available resource
 Operates at any scale
Biomass before treatment
After the Glycell™ Process
Cellulose
Cellulose +
Hemicellulose
Lignin
Hemicellulose
Lignin
Outcome: Cellulose, hemicellulose and lignin are
available to be converted to valuable bio-materials
Environmental credentials
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Utilises waste biomass at low energy
The Glycell™ process can produce cellulose
at any scale
Waste
biodegradable
reagent
Low temperature
means lower energy
use
Other process have
environmental issues
(Pulp plant in Tasmania)
Avoids the food for
fuel debate
Cellulose
Waste Biomass: a
renewable source of
Cellulose
Strong,
lightweight,
viscose and
versatile
Environmental
benefits
Carbon savings
Cellulose
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The building block for bio-based products
Cellulose: has many new uses as well as traditional uses such as paper
and fibre for fabrics
Green chemicals
Bioplastics
Cellulose derivatives
• Industrial – drilling mud,
paint, adhesives and ceramics
• Food
• Cosmetic
• Pharmaceutical
Drilling mud market
predicted to grow to $15b by
2018 at CAGR of 7.5%1
• Fibre reinforce composites
• Polyurethanes
• Packaging
• Engineered Plastics
• Resins
• Nano-cellulose
• 3D printing
Manufacture of bio-plastics is
expected to rise by 140% to
9.2M tons by 20162
• Pharmaceutical
• Agricultural
• Manufacturing
• Nutraceuticals
• Detergent
• Source of carbon molecules
Green chemicals market
expected to grow at 20% pa
to exceed $500BN by 20173
Sources
1 Markets and Markets September 2013
2 Lux Research 2012
3 European Forum for Industrial Biotechnology
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Consumer sentiments
feeding bio-based maket growth
The high cost and environmental impact of burning finite resources has
seen industry moving from the ‘black economy’ to the ‘green economy’
41% of all respondents listed
customer preferences for
sustainable products and
services as a sustainabilityrelated reason for changing
their business models”
“In virtually every industry
consumer demand for
greener, more natural
products are fueling a surge
of research into biological
alternatives to replace oilderived products”
“Its time for the world to
shift! All companies face a
direct impact from
decreasing natural
resources, rising
populations and disruptions
from climate change”
MIT Sloan Management Review
Research report, Winter 2012 3
Richard Herbert
Biofuels Digest, July 2013
Mark Parker
CEO Nike
There is no need to debate “Peak Oil” or “Global Warming” as the
consumers are voting with their wallets
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Technology Validation
Leaf Energy’s Glycell™ process has been validated internally and
by third parties
IP developed with Syngenta and Queensland
University of Technology
Expert Assessment by Dr. Graeme Bullock of Bioindustry Partners
“a compelling situation”
Articles in Biomass Magazine
July 2013, February 2014
Milestones & Development
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Where are we at?
Recent trials at Andritz (USA) confirmed:
Continuous
processing at up to
5.4 tons per day
(dry) using
industrial available
equipment
Potential for the
production of
cellulose
78% Alpha cellulose
Process now
effective on
Bagasse,
Eucalyptus, Spruce
and Palm oil waste
(lab)
Potential for
Cellulose
derivatives
Bio- based products
via enzymatic
hydrolysisi
confirmed
Strategic Direction
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Capitalising on the development to date
Key proposition
and competitive
advantage
“Produce low cost cellulose
at any scale”
First product: CMC
(Carboxymethyl
Cellulose)
Production from cellulose well known
and understood
Applications for
CMC
Initially for drilling mud applications,
then look at food applications
Partnerships
Will use partnerships for down stream
relationships and channel to market
as well as for supply of biomass
Value add for
Glycerol
Targeting a market for the used
glycerol that economically adds to
and technically supports the process
Carboxylmethyl Cellulose (CMC)
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A versatile, high value output
CMC
Drilling grade viscosifiers Drilling Mud
Food Market
Other Applications
Drilling Market growing to
$15b by 2018 at 7.5% CAGR
Used as a Bulking and/or
Firming agent
Cosmetics
Driven by need for more
energy – increased
population and usage
A Gelling and/ or Glazing
agent
Pharmaceutical
New drilling: fracking,
horizontal drilling, deep sea
A Humectant or Stabiliser
Detergents
Drilling companies switching
to bio-based products
An Emulsifier or Thickener
Adhesives and Paints
A growth market and a good
market to enter
Requires higher purity to be
effective
Ceramics
Value Creation
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Steps leading to production of Cellulose
Leaf Energy has a tangible and realisable pathway to
production to rapidly exploit its opportunity
Complete
Secure plant
location and
biomass
Underway
Final engineering
specifications for
chosen location
Feasibility
Study
Underway
Engage
downstream
partners:
Underway
Secure Funding
“Profitable”
demonstration plant
International Scope
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Intellectual property coverage
The company’s IP was developed in association with Syngenta
Currently at country stage in PCT countries
Northern
Europe
India
Thailand
Malaysia
Indonesia
Rights
Obtaining Rights
Seeking Rights
Mauritius
Australia & NZ
Experienced Executive Team
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Domain expertise and influence
Dr. Jay Hetzel
Chairman
 Background in biotechnology R&D and commercialisation
 Co-founder of Catapult Genetics (sold to Pfizer)
 Numerous board & executive positions; Biotechnology advisory
roles to government and industry
Ken Richards
Managing Director
 Track record in managing, growing and transitioning high growth
ASX and private companies
 As CEO of Norgard Clohessy Equity Ltd  took from a start up with
capitalisation of $60,000 to $50M
Charles Wilson
Non-executive Director
 Project Management Engineer
 Extensive project and construction management experience
 Former Chairman Aquacarotene Ltd
Alex Baker
Chief Operating Officer
 20 years industry experience, science and technology
commercialisation professional
 As CEO lead Maverick Biosciences into the bio-medical product field
via transformational business strategy
Leaf Energy Ltd (LER)
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Capital structure and shareholdings
Leaf Energy’s cash in bank position together with its IP portfolio
indicates there is considerable room for growth in its Enterprise Value
Ord Shares on Issue
Options (10c exercise)
59.17M
4.8M
Current Price
$0.042
Market Cap
$2.48M
Top 20 Shareholders
72%
Board & Management
39.25%
Cash*
$600K
Enterprise Value
* (as per last 4c)
$1.88M
Source: ASX Trading Platform, 4th March 2014
Investment Highlights
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Technology and market advantage
Rapid Path to Market:
Strong Technology:
Many Markets:
Glycell™ Process
Cellulose has many
uses in many markets
Environmental
Credentials:
Strong Value
Proposition:
Capitalising on the
switch to the green
economy
Unique process in
rapidly growing
markets
Commercial path
established; funding to
get ready for
production and sales
Scalable Business
Model:
Growth potential is
large
Expressions of Interest
For personal use only
Participate in the future of biomaterials
Low price point entry into a company that can revolutionise
the fast growing bio-based products market
Contact:
Ken Richards: Managing Director
[email protected]
+61 403 385 051
For personal use only
Appendix 1: Cellulose
Growth prospects for Cellulose products very strong
The most abundant organic material on planet
Grown:
Cotton, Linen,
Flax etc
Fibre reinforced composites
Cellulose
properties:
Cellulose
Sources
From pulping
woodchip
From
fractionating
biomass
Traditional uses: Paper and
Fabric (Cotton, Linen, Rayon,
Viscose)
Strong,
lightweight,
absorbent,
viscose &
versatile
Cellulose derivatives: Industrial,
food, cosmetic, pharmaceutical
Building block for other carbon
molecules
Convert to sugars and bio-based
products – green chemicals,
biofuels, bioplastics
New uses: 3D printing, bioplastics, Nano-cellulose
Appendix 2:The “Cellulose Gap”
Demand for
cellulose
increasing
84% by
2030
Supply side
issues
• Population and prosperity increasing
demand for fibre
• Properties, absorbent and
breathable, give cellulosic fibre
bigger market share
• Consumer desire to move away from
oil based synthetics
• New uses/applications
• Cotton plantings down from 35.7 m
ha to 28m ha in 2030- pesticide use,
water use and competing land uses
• New pulp mills difficult (Gunn’s
Tasmania)
• Difficult to access cellulose from
biomass needs high temperature,
high pressure
Estimated per capita consumption of
cellulosic fibres 2010-2030
6
5
Kg per head, per year
For personal use only
Demand rapidly outstripping supply
4
0.6
1.3
1.8
2.3
0.5
3
2
3.2
3.6
3.4
3.3
3.1
2015E
2020E
2025E
2030E
1
0
2010
Cotton
Source: Lenzing, 2011
Cellulose