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.
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The carbon evolutionThe 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
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Cellulose Sources
What is Cellulose?Cellulose is a fibre that is a major part of a plants
Grown:
cotton, linen, flax etc
Produced:
from pulping woodchip
Extracted:
fractionating biomass
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Cellulose PropertiesBenefits and uses
Cellulose properties:
Strong, lightweight, absorbent, viscose & versatile
Traditional uses: Paper and Fabric (Cotton, Linen, Rayon,
Viscose)
Fibre reinforced composites
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, bio-plastics, Nano-cellulose
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CelluloseThe building block for bio-based products
Cellulose derivatives
• Industrial – drilling mud, paint, adhesives and ceramics
• Food
• Cosmetic
• Pharmaceutical
Bioplastics
• Fibre reinforce composites
• Polyurethanes
• Packaging
• Engineered Plastics
• Resins
• Nano-cellulose
• 3D printing
Green chemicals
• Pharmaceutical
• Agricultural
• Manufacturing
• Nutraceuticals
• Detergent
• Source of carbon molecules
Demand for cellulose increasing 84% by 20301
Drilling mud market predicted to grow to $15b by
2018 at CAGR of 7.5%2
Manufacture of bio-plastics is expected to rise by 140% to
9.2M tons by 20163
Green chemicals market expected to grow at 20% pa to exceed $500BN by 20174
Sources:1 Lenzing 2011 2 Markets and Markets September 2013. 3 Lux Research 2012. 4 European Forum for Industrial Biotechnology
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The “Cellulose Gap”Demand rapidly outstripping supply
• Population and prosperity increasing demand for fibre
• Properties, absorbent and breathable, give cellulosic fibrebigger market share
• Consumer desire to move away from oil based synthetics
• New uses/applications
Demand for cellulose
increasing 84% by
2030
• 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
Supply side issues
3.23.6 3.4 3.3 3.1
0.5
0.61.3
1.8 2.3
0
1
2
3
4
5
6
2010 2015E 2020E 2025E 2030E
Kg
per
hea
d, p
er y
ear
Estimated per capita consumption of cellulosic fibres 2010-2030
Cotton Cellulose
Source: Lenzing, 2011
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Leaf Energy’s Glycell™ ProcessAn innovative solution to the emerging need in the cellulose market
disruptive technology for cellulose production
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The Glycell™ ProcessProprietary technology for cellulose production
Simple, innovative, low cost and effective
Uses a waste reagent
Low temperature and low pressure
Operates continuously
Renewable readily available resource
The Glycell ™ process has compelling advantages over traditional methods of cellulose extraction
Product benefits: Economic benefits:
Significantly lower capital costs
20 ton per hour plant ex Andritz quote $11.2m (total cost when installed $20-$30 million) Compare with Lignol, Borregard demonstration plants, similar capexbut 1 ton per day
Significantly lower operating costs
Waste reagent, low energy, low capital and quick (30 min) processing time
Off the shelf equipment
Operates at any scale
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Environmental benefitsUtilising waste biomass at low energy
CelluloseStrong,
lightweight, viscose and
versatile
Waste Biomass: a renewable source
of Cellulose
Avoids the food for fuel debate
Waste biodegradable
reagent
Low temperature means lower energy use
Other process have environmental issues
(Pulp plant in Tasmania)
Environmental benefits
Carbon savings
The Glycell™ process can produce cellulose at any scale eliminating capital expenditure as a barrier to entry
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Pathway to commercialisationWhere are we at?
Continuous processing at up to
5.4 tons per day (dry) using
industrial available equipment
Potential for the production of
cellulose
78% Alpha cellulose on Bagasse
Process now effective on
Bagasse, Eucalyptus, Spruce and Palm oil waste
(lab)
Potential for Cellulose
derivatives
Bio- based products via enzymatic
hydrolysis confirmed
Recent trials at Andritz (USA) confirmed:
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Leaf Energy’s GlycellTM ProcessOverview
The GlycellTM process breaks down plant material and produces
cellulose
Cellulose is a building block for rapidly growing
bio-based products
The GlycellTM process works at significantly lower scale with lower
op ex
Leaf Energy’s GlycellTM process will revolutionise the bio-based markets by:
1. Vastly reducing the cost to manufacture
2. Enabling unused biomass to be used for commercial benefit F
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Strategic DirectionCapitalising 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
Revenue ModelWill 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
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Market growth
Driven by need for more energy – increased
population and usage
New drilling: fracking, horizontal drilling, deep sea
Drilling companies switching to bio-based products
A growth market and a good market to enter
Used as a Bulking and/or Firming agent
A Gelling and/ or Glazing agent
A Humectant or Stabiliser
An Emulsifier or Thickener
Requires higher purity to be effective
Cosmetics
Pharmaceutical
Detergents
Adhesives and Paints
Ceramics
Carboxylmethyl Cellulose (CMC)A versatile, high value output
Drilling grade viscosifiers -Drilling Mud
Food Market Other Applications
CM
C
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Value CreationSteps leading to production of Cellulose
Finalise launch plant location, design and cost
Construction, supply and sale agreements
Production and revenues
9 months 10 to 24 mths > 24 mths
1a. Secure plant location and
biomass
1b. Complete Feasibility Study
1c. Engage downstream
partners
1d. Final engineering
specifications for chosen location
UN
DE
RW
AY
2a. Finalise construction capital
2b.Construct first production plant
3a. Commence production and
sales
2c.Complete initial supply and launch sale agreements
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Value CreationSteps leading to production of Cellulose
Secure plant location and
biomass
Complete Feasibility Study
Engage downstream
partners
Final engineering
specifications for chosen
location
Secure Funding
“Profitable” demonstration plant
Leaf Energy has a tangible pathway to production and commercialisation
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Near Term Milestones
Date Milestones & Potential Announcements Details
Q4 Fy14 1. Complete concept feasibility study Understand capital outlays and operating costs based on 20 ton per hr
2. Decision on size of plant Determine size of plant to validate business model (5 ton per hour vs 20 ton per hour)
3. Finalise production spec of CMC‘s Technical grade CMC specifications for launch product/s
Q1Fy15 1. Patent update Progress freedom to operate and potential patent for GlycellTM
process
2. Further testing at Andritz and resultsComplete scale up of cellulose from eucalyptus & palm Oil EFB waste at tons per dayOngoing R&D to move towards higher grade cellulose and its fractions
3. Potential financing options for plant Establish debt vs. equity options
4. Appointment of engineering firm In preparation for construction of launch production facility
Q2/3FY15 1. Partnerships Trial program for drilling mud with partner
2. Value adding from Glycerol fractionCurrently planned to recycle glycerol but are investigating value adding optionsUnderstand ability to monetise waste product from process
3. Plant location Optimal launch plant location determined
4. Biomass supply agreements Collaborations and or supply agreements with supply chain partner/s
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Collaboration Rights
Leaf Energy is part of collaboration agreement (CLA) with Syngenta and QUT for a glycerol pretreatment process, which is patented (CLA Joint IP).
Leaf Energy has a license for CLA Joint IP from QUT for certain Territories (Australia, New Zealand, Papua New Guinea, Pacific islands and Mauritius and is obtaining rights in Malaysia and Indonesia).
Under the arrangements above Leaf Energy has rights for CLA Joint IP in the fermentable sugar field in the Territories as detailed.
Leaf Energy continues to discuss opportunities with the CLA partners in regard to the Joint IP.
Under the CLA Leaf is not constrained in the production of cellulose by any methods. F
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Intellectual Property
Continuing the Company’s focus in the field of value adding biomass Leaf Energy has developed significant knowledge regarding the GlycellTM
process.
In reviewing it’s options, Leaf Energy has received a Freedom to Operate report for the GlycellTM process assessed on an Australian basis. Further opinion can be sought and if the Australian opinion is valid in other jurisdictions then Leaf Energy could operate the Glycell™ process throughout the world.
The company is now exploring the possibility of patentability of various aspects of the Glycell™ Process. The company in addition will own trade secret and significant know how regarding the Glycell™ Process.
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Experienced Executive TeamDomain expertise and influence
Dr. Jay HetzelChairman
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 RichardsManaging 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 WilsonNon-executive Director
Project Management Engineer Extensive project and construction management experience Former Chairman Aquacarotene Ltd
Alex BakerChief Operating Officer
20 years industry experience, science and technology commercialisationprofessional
As CEO lead Maverick Biosciences into the bio-medical product field via transformational business strategy
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Leaf Energy Ltd (LER)Capital structure and shareholdings
Ord Shares on Issue 69.5M
Options (10c exercise) 4.8M
Current Price $0.041
Market Cap $2.85M
Top 20 Shareholders 75.6%
Board & Management 42.4%
Cash* $620K
Enterprise Value $2.23M
Leaf Energy’s cash in bank position together with its IP portfolio indicates there is considerable room for growth in its Enterprise Value
Source: ASX Trading Platform, 24th April 2014
* (as per last 4c)
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Investment Rationale
Strong Technology
Unique Process
Produces low cost cellulose at any scale
Cellulose has many uses in
many markets
Capitalising on the switch to
the green economy
Management team suited to
task
Scalable Business Model
Rapid path to market
Very Cheap entry point for
investment
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Expressions of InterestParticipate in the future of biomaterials
Low price point entry into an Australian company that can commercialise products in the fast-growing bio-based products market
Contact:Ken Richards, Managing Director
[email protected]+61 403 385 051
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