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1 11 AGM Presentation A leader in change toward sustainable plastic solutions 30 November

2 SECOS is an eco-friendly, sustainable bioplastics developer & manufacturer. With FY17 revenue of $22 million, SECOS supplies its patented biodegradable resins, finished products and high-quality cast films to a blue-chip global customer base. 2

3 A year of action: 2017 operational highlights SECOS cast film division, Stellar, continues to perform well Detailed review has led to: An operational overhaul in China Staff restructuring in Australia, the US and China A material improvement in manufacturing costs of circa $400k/yr Successful in winning several large city council tenders; demand is growing for SECOS compostable waste management products Secos Americas based in Texas & incorporated in Delaware. Established to meet demand for SECOS innovative eco-friendly products BioHybrid TM resin approved as an input for Henkel s Loctite bottles in Brazil, India, France and Netherlands Agreement signed with micro-engineering expert MiniFAB to produce and market unique breathable film R&D completed for high speed compostable product 3

4 Global Market Opportunity SECOS is strategically positioned to benefit from the trend to sustainable packaging Global bioplastics market is forecast to grow by >280% from 2016 to 2019 Bioplastic packaging currently makes up less than 1% of the global plastics packaging market, with exponential growth potential driven by: Increasing government regulation of environment and waste management Increasing organic waste recycling Increased cost of landfills Increased consumer demand for sustainable products Global brands transitioning to bioplastics to meet social demand Global Bioplastics Growth Source: European Bioplastics/ IfBB Industry Report

5 Strategic Initiatives China restructuring will improve profitability - Senior management removed and new team installed - Production overhauled and improved scheduling process installed - Plant EPA and Safety compliance improved - Key personnel employed to streamline operations 5

6 Strategic Initiatives (cont d) Upgrading Malaysia plant to manufacture resin will boost profitability - Malaysian federal territories have legislated against single use bags, prompting growth in demand for biodegradable resin - SECOS proposed new resin plant will capture local compostable resin sales and provide flexible backup to the Nanjing plant - Leverages strong existing infrastructure at Stellar Films Malaysia - SECOS will collaborate with local bag makers to meet Malaysian domestic demand for sustainable products 6

7 Strategic Initiatives (cont d) Implementing breathable film technology will improve profitability - Five + five year agreement signed with MiniFAB, covered by worldwide patent, set to significantly boost the performance and quality of SECOS products - World first technology, making possible revolutionary compostable and breathable hygiene film products - Much lower capital costs to set up and lower process costs to run, relative to traditional breathable film manufacturing equipment - Allows SECOS to produce a breathable strip rather than all-over breathable diaper backsheet, enabling stronger thin film 7

8 Strategic Initiatives (cont d) Strong waste management sales to city councils will drive profitability - More competitive product costing after recent corporate restructure - Improved success rate with winning tenders since improving the cost base - Australian market for eco-friendly waste management products expected to continue growing in the next 2-5 years, with SECOS well positioned - New fast composting product under development and certification - Localised digester market is growing world wide 8

9 Strategic Initiatives (cont d) MyEcoPet ( MEP ) launch to boost group sales and profitability - A new online sales channel launching to address the attractive market for earth-friendly and compostable pet supplies - SECOS Americas subsidiary MyEcoWorld to drive online marketing for MEP covering Facebook, Instagram, Twitter and Internet, enabling the group to swiftly capitalise on market trends - All of SECOS existing and upcoming pet products to be branded under MEP - All packaging uses FSC approved (Forest Stewardship Council) packaging - Cardia resin inside concept - Program will be rolled out in the US first in Q1 CY18 - OEM business to continue 9

10 Strategic Initiatives (cont d) MyEcoPet product and packaging design MyEcoPet.com will market environmentally friendly pet products powered by SECOS proprietary biohybrid resin to retail and wholesale customers. Customers will know that everything on MyEcoPet is a step in the right direction to help the Earth s plastics pollution problem. Current products in the market are bland and do not catch the eye. MyEcoPet.com products and packaging designs will further differentiate an already unique product from the rest of the US nonfood pet supply market currently worth US$15 billion and growing.

11 Strategic Initiatives (cont d) Focused approach to sales in the US will improve profitability - US market is the single biggest commercial opportunity for SECOS - New sales structure led by experienced sales manager from packaging industry, complemented by online marketing team - Sales will initially focus on Films & Packaging & pet segment supported by social media - Focus on Council Waste to drive sales into year-end Promising recent new customer activity, having gained approval of US cleanroom product supplier Purus International for a static pad using BioHybrid TM resin 11

12 SECOS investment highlights Strategy focused on growing sales of resin, film and pet products to organic waste, packaging and bag making customers, driven by multiyear trend towards sustainable plastic solutions Cost-effective manufacturing in Nanjing, Kuala Lumpur and Melbourne, with low-cost expansion options New senior management at Nanjing plant will lead sales and improved production output in FY18 and beyond Primed for growth in online retail channel via MyEcoWorld (initially MyEcoPet) 12

13 Thank You 谢谢 Terima Kasih Contact Richard Tegoni Executive Chairman Tim Dohrmann Investor and media relations 13

14 Disclaimer Forward looking statements disclaimer This presentation contains forward-looking statements. Such forward-looking statements may include, without limitation: (i) estimates of future earnings; (ii) estimates of future production and sales; (ii) estimates of future cash costs; (iv) estimates of future cash flows; (v) statements regarding future debt repayments; and (vi) estimates of future capital expenditures. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to increased production costs, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All financial amounts are expressed in Australian dollars unless otherwise indicated. 14