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CREATING BEST-TASTING SOLUTIONS ... • Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our

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  • ©PURECIRCLE 2019

    CREATING BEST-TASTING SOLUTIONS

    Interim Results 2019

    Presented by

    Magomet Malsagov

    Rakesh Sinha

    12 March 2019

  • ©PURECIRCLE 2019

    DISCLAIMER

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  • ©PURECIRCLE 2019 3

    Presented by

    Magomet Malsagov, Chief Executive Officer

    OVERVIEW

  • ©PURECIRCLE 2019

    CHIEF EXECUTIVE’S OVERVIEW

    • Implementation of new strategy centred around best tasting products from Starleaf™ continues to gain momentum

    • Scaled & Commercialised our new technology to convert RebA to RebM

    • Results include sale of meaningful quantities from next generation stevia sweeteners based on Reb M both directly extracted from leaf and via conversion of first generation stevia

    • Customers are switching and reformulating to Reb M due to the superior taste profile

    • Reformulations have led to some cannibalisation of base business and the results of the first six months should be seen in this context. The pipeline is healthy.

    • Sufficient production capacity of Reb M to sweeten circa 1 billion cases of zero-calorie carbonated soft drinks annually

    • Food and Beverage launches containing best tasting products from Starleaf™ including new channels and notable brands

    • Restructuring and significant strengthening of the go-to-market organisation initiated and will be completed in H2

    $50.7m

    39.2%

    +240bps

    $2.9m

    +6.9m

    Interim

    Revenue

    Adj.EBITDA Gross Margin Underlying

    Net Profit

    $11.6m

    +49% $8m$25m

    Gross Debt

    Reduction Exceptional

    Items

  • ©PURECIRCLE 2019

    FOOD AND BEVERAGE INDUSTRY:

    In need of sweetener innovation

    • Global obesity crisis

    • Sugar tax (passed/proposed)

    • Activist advocacy groups

    • Good for me

    • Good for others

    • Good for the planet

    proposed new label

    highlighting calories and added

    sugars

    • Sugar

    • Artificial sweeteners

    RISING PUBLIC

    HEALTH CONCERNS CONSUMERS REDEFINE

    HEALTH & WELLBEING SWEET

    UNDER FIRE

  • ©PURECIRCLE 2019 6

    Evolution of Strategy

    StarleafTM Stevia

  • ©PURECIRCLE 2019

    WHY REB M? From a range of options, we believe that Reb M

    sweeteners combine the best of consumer needs with customer

    requirements of price & capacity

    7

    Natural Consumer

    Acceptance Taste Capacity

    Regulatory

    Approval Price

    Reb M (extract)

    GMO Reb M

    Reb A (extract)

    Artificial Sweeteners

    HFCS

    Reb M (bioconversion)

    Reb M (extract)

    Reb M (GMO/fermentation)

    Reb A (extract)

    Monk Fruit

    Artificial Sweeteners

    HCFS

    Sugar

  • ©PURECIRCLE 20198

    Stevia Leaf Composition Getting to the Best Stevia Sweeteners

    STEVIA LEAF – THE SOURCE OF INNOVATION

    Steviol Glycosides

    Proteins Fibers

    Antioxidants REB M, D

    Other glycosides

    Original Strategy (Reb A) New Strategy

    REB M REB M

  • ©PURECIRCLE 20199

    WHAT CAN PURECIRCLE’S LATEST INNOVATIONS DELIVER TO

    OUR CUSTOMERS

    Customer + PureCircle

    Cost Savings

    COST & CAPACITY

    Social Responsibility

    FARMERS, WATER,

    LAND

    Growth

    TASTE

    Calorie Reduction

    INNOVATION

  • ©PURECIRCLE 2019

    …………….………….………….………….…………….…………..…………….…………..................

    FEEDBACK FROM OUR CUSTOMERS AND THEIR DEVELOPERS

    IS VERY POSITIVE

    10

    ‘Such a big difference in taste vs. using Reb A’

    ‘We are finally able to formulate without any

    aftertaste’

    ‘You can really taste the difference’

  • ©PURECIRCLE 2019

    CONSUMER DEMAND DRIVES STEVIA LAUNCHES WITH

    REB M EMERGING

    11

    Global new product launches with stevia Reb M Sweeteners are taking off in a range of categories

    75% of launches

    occurred in the past 5

    years

    280 478

    1,163

    2,278

    2,963

    4,410

    '09 '10 '12 '14 '16 '18

    MEA +33% -7%

    LTAM +40% +33%

    NTAM +12% 21%

    Europe +13% +26%

    APAC +19% +48%

    5 yr CAGR 1yr

    Total +19% +33%

    Years are calendar years

    Project gestation period from inception to launch is shorter for RebM than RebA due to superior taste

  • ©PURECIRCLE 201912

    Calorie Reduction

    INNOVATION

    Cost Savings

    COST & CAPACITY

    Social Responsibility

    FARMERS, WATER,

    LAND

    Growth

    TASTE

    Customer + PureCircle

  • ©PURECIRCLE 2019

    GROWING AROUND THE WORLD

    13

    North Carolina Americas Africa India China

    China Africa Paraguay

    Suppliers 98 30 32

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