0

Interim Results 1H FY2018

6 March 2018

Presented by

Paul Selway-Swift

Magomet Malsagov

Rakesh Sinha

1

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2

Presented by

Magomet Malsagov, Chief Executive Officer

OVERVIEW

CEO OVERVIEW

• Sales H1 FY18: $53.5m, +13.3%

(H1 FY17: $47.2m)

• Back to double-digit growth

trajectory

• Strong recovery in US post CBP

• Gross profit increased to $19.7m

• EBITDA improved +22% to $7.8m

• Positive operating cash flow

$7.7m

• New $200m financing facility fully

operational providing greater

financial stability and flexibility to

fund future growth

• FTSE Small Cap and All Share

indexation granted (Aug ’17)

• FTSE 250 entry in Dec’17

Financial Highlights

• Significant IP – 72 patents and 200

patents pending worldwide

• Significant investment in PureCircle

Stevia Agronomy Program ensuring

consistency of best-tasting products and

new innovative ingredients, such as

StarleafTM stevia and vanilla and cocoa

flavour enhancers and antioxidants

• Launch of PureCircle’s StarleafTM, a

proprietary non-GMO stevia plant, which

will offer superior tasting solutions to our

food and beverage customers

• Strategic drive to higher value added

products progressed well

Operational Highlights

• Structural & fundamental shift in

the market to reduce sugar in

core brands

• No natural alternative to stevia

• Stevia is a force for good in the

world

• Highly efficient and cost effective

source of sweetness, and 100%

natural alternative to sugar with

great taste

• Much smaller land, carbon and

water footprint than sugar

• No calories, tooth friendly

• Low glycemic index, safe for

diabetics

Why Stevia?

4

OUR GLOBAL FOOTPRINT

5

VERTICAL INTEGRATION

Agronomy

Breeding

proprietary Stevia

varieties with

higher sweet

glycoside content

Farming

Cultivating best

sustainability

practices and

providing training

and materials to

ensure success

with local farmers

across four

continents

Extraction

Producing our own

extract to ensure

quality standards

are met

Purification

Purifying steviol

glycosides with an

unmatched scale

and consistency

Application

Providing

formulation

expertise to deliver

great-tasting

products

Consumer

products

Providing our

customers with a

level of

transparency that

is superior to any

other stevia

manufacturer

6

HOW WE CREATE VALUE

We have successfully

commercialised a portfolio

that includes natural

sweeteners, flavours and

specialty ingredients based

on high purity stevia, and

have deep expertise across

the value chain, from

seeding to sweetener.

Research & Development (R&D)Multidisciplinary approach spanning plant breeding, agronomy, biotechnology, biochemistry,

food technology and sensory analysis

Commercialisation• Technical Services

• Scientific and Regulatory Affairs

• Sales & Marketing

7

WHO WE SELL TO

* Over 300 customers serviced globally

8

Big Brand Examples Category Innovation

Coca- Cola with Stevia

TCCC

Singapore and Malaysia

35% Sugar Reduction

7UP (CSD)

Pepsi

Saudi Arabia, UAE,

Poland, Netherlands,

Greece

30% Sugar Reduction

Light and Fit Zero

Danone

USA

No Sugar Added

Sweet Granules with

Stevia, Brown Sugar

with Stevia, Honey

with Stevia, Sweet

Mini Cubes with

Stevia

(Stevia + Monk Fruit

Tabletop)

Whole Earth

UK

Vegan ProBar

Integralmedica

New Product

Brazil

Lipton/Pureleaf

China, Turkey, Belgium,

France, South Korea,

Poland, Czech Republic

50% Sugar Reduction

Skinny Cow

Nestle

USA

50% Sugar reduction

Quaker Good Start

Pepsi

New Product

Phillipines

STEVIA ADOPTIONS: Penetration of big brands, more diverse categories

Nestea

Nestle

European Union

30% Sugar Reduction

Levite

Danone

Argentina

No Sugar Added

Wattie’s

Kraft Heinz

New Zealand

50% Sugar Reduction

Heinz Tomato

Ketchup

Kraft Heinz

Norway, Italy

50% Sugar Reduction

9

THE FOLLOWING WINDS

10

LEGISLATION

* N.B. Unverified content – for guidance only.

SSB or soft drink taxes in effect

Barbados

Belgium

Brunei

Chile

Dominica

Fiji

Finland

France

Hungary

Mauritius

Mexico

Nauru

Norway

Portugal

Philippines

Samoa

St. Helena

Thailand

Sri Lanka

Spain

Turkey

US AREAS

Albany

Berkeley

Boulder

Cook County

Oakland

Philadelphia

San Francisco

Seattle, Washington

Proposed/raised for discussion

Australia

Canada

Estonia

India

Indonesia

Ireland

Malaysia

Singapore

New Zealand

South Africa

Spain

UK

UAE

Vietnam

Russia

Saudi Arabia

Warning Labels

Malaysia Chile Egypt

Singapore Ecuador UK

Thailand Peru

India Canada

Algeria

11

FINANCIALREVIEW

Presented by

Rakesh Sinha, Chief Financial Officer

PROFIT & LOSS 1H FY2018

Revenue

Gross Profit

Gross Margin %

US$ (millions)

Other income

SG&A

Operating Profit

Operating margin %

Other Expenses

Finance Costs

Taxation

Share of (Loss)/Profit in JV

Forex

Net (Loss) / Profit

Net (Loss)/Profit%

EPS – Diluted (US Cents/Share)

Adjusted EBITDA

FY17

118.9

45.8

38.5%

0.5

(28.7)

17.6

14.8%

(5.9)

(5.0)

(0.4)

0.1

0.8

7.2

6.1%

4.1

27.1

1H FY 171H FY 18

47.2

19.1

40.4%

0.3

(13.9)

5.5

11.6%

(5.1)

(2.3)

1.5

0.2

(0.4)

(0.7)

-1.4%

(0.4)

6.4

53.5

19.7

36.8%

0.5

(17.1)

3.1

5.7%

(2.5)

(3.2)

(2.2)

(0.4)

1.2

(4.0)

-7.5%

(2.3)

7.8

• Revenue of $53.5m; back to double-digit

growth at +13.3%

• Regionally, US and Europe driving

growth with good performance in GKAs

and Flavour houses.

• Gross profit up at $19.7m. Margins at

36.8% impacted adversely by currency

fluctuations, sales mix and transition to

StarleafTM, which will yield higher margin

products going forward

• SG&A increase represents higher

deprecation relating amortisation of PC

South America and investment in Legal

services, Sales and Marketing personnel.

• Taxation – increased due to reversal of

$2.1m deferred tax assets resulting from

US Tax Reform.

• Forex gain recorded due to settlement of

USD loan.

• EBITDA up 22% to $7.8m; Net Loss of

$4.0m

H1 F

Y1

8H

1 F

Y1

7

DIVERSIFIED REVENUE STREAMS

US Market Recovering

Basic ingredients taking share from low margin Low Purity products. Basic IngredientsGamma Reb A FamilySG95

BreakthroughDeltaReb MZeta Family

Custom BlendsPCS and PSB - XXXX7 custom ingredients

FlavorsNSF Family

Low PurityFeed/Alt. market

Value AddedAlpha FamilyReb A 99SG95 FamilySigma Family

Basic Ingredients

43%

Value Added22%

Flavour31%Breakthrough

3%

Custom Blend1%

Revenue Mix by Product Category

North America

27%

EMEA43%

Latin America

19%

Asia8%

South Asia3%

Revenue Mix by Geographic Region

Basic Ingredients

38%

Value Added22%

Flavour31%

Breakthrough3%

Custom Blend2%

Low Purity4%

Revenue Mix by Product Category

North America

14%

EMEA39% Latin

America34%

Asia12%

South Asia1%

Revenue Mix by Geographic Region

NON – CURRENT ASSETS

- Property Plant & Equipment

- Intangible Assets

- Other non-current assets

TOTAL EQUITY

TOTAL LIABILITIES & EQUITY

NON - CURRENT LIABILITIES

- Long-term borrowings

- Other payables & accruals

CURRENT ASSETS

- Inventories

- Trade Receivables

- Cash and bank balances

- Other current assets

TOTAL ASSETS

CURRENT LIABILITIES

- Trade payables

- Short-term borrowings

- Other payables & accruals

TOTAL LIABILITIES

US$ (millions) 1H FY171H FY18

BALANCE SHEET

141.4

80.6

49.6

11.2

192.4

342.4

201.0

102.6

50.1

30.3

18.0

342.4

72.7

72.2

0.5

77.3

19.4

38.2

19.7

150.0

155.6

90.6

54.7

10.3

207.6

362.0

206.4

106.0

58.0

33.0

9.4

362.0

39.6

39.0

0.6

114.8

11.1

78.7

25.0

154.4

FY17

• PPE: Capacity expansion

• Intangibles: Investment in Leaf

development, IP and R&D

• Inventories: same seasonal H2

weighted sales trend continues, hence

leaf stock build

• Inventories: Volumes down, value up

due Starleaf purchase – higher yielding

margin products

• Trade receivables: continued

improvement in receivables

management.

• L-T Borrowings: restructuring of

finance facility

• Trade Payables: longer credit with

suppliers

• Net debt: $98.4m

168.9

99.5

60.9

8.5

212.1

378.1

209.2

128.4

37.7

28.0

15.1

378.1

84.2

83.1

1.1

81.8

20.8

43.3

17.7

166.0

Operating cash flow before

working capital changes

US$ (millions) FY17

22.3

Increase in inventories

Decrease in trade and other

receivables

Increase in trade

and other payables

(21.6)

4.6

11.8

Net cash from operations

before interest and tax 17.1

Net cash from operations after

interest and tax

Investing activities

Financing activities

10.3

(43.9)

8.7

Net cash flow (24.9)

Gross cash

Headroom

33.0

76.7

CASH FLOW

1H FY171H FY18

• Operating cash flow of +$7.7m

• Inventories increase due to

StarleafTM purchase &

preparation for H2 (seasonality).

• Strong receivables management

• Positive Net operating cash flow

of $3.0m

• Investing activities:

represents the investment in

refinery and R&D projects.

• Financing: drawdown on the

banking facilities.

4.7

(18.0)

11.9

9.9

8.5

5.4

(28.3)

(6.4)

(29.3)

30.0

74.6

7.7

(22.2)

15.9

1.6

3.0

0.2

(14.2)

5.3

(8.7)

27.7

93.0

16

Evolution of Strategy

IntroducingStarleafTM Stevia

Presented by

Faith Son, Global VP Marketing & Innovation

Avetik Markosyan, Global VP Research & Development

James Foxton, VP Agricultural Operations

17

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 labelhighlighting

calories and added sugars

• Sugar

• Artificial Sweeteners

RISING PUBLIC

HEALTH CONCERNSCONSUMERS REDEFINE

HEALTH & WELLBEINGSWEET

UNDER FIRE

18

Zero-calorie sweetness from nature

Lowest Carbon Footprint Lowest Water Footprint Lowest Land Footprint

12-82% 88% 1/5Less carbon than other natural sweeteners. Less water than other natural sweeteners. Size of Delaware = Amount of stevia

needed to replace 20% of today’s sugar

consumption.

2015 Carbon Study

KgCo2-e/kg SE*

Comparative Carbon Footprints

2015 Carbon Study

Liters/Kg SE*

Comparative Water Footprints

At least Uses

the land of

sugar cane

12% 48% 82%WATER

SUSTAINABILITY: Impact of PureCircle Stevia vs Sugar

3,700

1,464

1,452

1,339

1,066

1,039

960

884

674

603

Snacks

Other Beverages

Juice Drinks

Dairy

Sweeteners & Sugar

RTDs

Carbonated Soft Drinks

Bakery

Sugar & Gum Confectionery

Hot Beverages

Global new product launches with stevia Top 10 global category by number of product launches

70% of

launches

occurred in

the past 4

years

MEA +71% +17%

LTAM +50% +22%

NTAM +29% -2%

Europe +25% +14%

APAC +23% +9%

5 yr CAGR 1yr

2 year CAGR

2%

8%

20%

15%

5%

6%

22%

15%

33%

11%

'09 '10 '11 '12 '13 '14 '15 '16 '17

311479

623

1,005

1,883

2,504

2,842

3,193

3,526

Total +29% +10%

33%

POSITIVE MARKET RESPONSE

Growth in number of launches driven by NTAM, LTAM, and Europe, while key beverage categories represent the fastest growing categories.

21

WE HAVE MOVED BEYOND Reb A taste challenges

REB A

DELAYED ONSETB

ITT

ER

INTENSELINGER

22

STEVIA LEAF HAS MORE TO OFFER THAN REB A

• 40+ Steviol Glycosides in the Leaf

• Taste Synergies

• Each with Unique Attributes

VERTICALLY INTEGRATED SUPPLY CHAIN

PLANT BREEDING

AND AGRONOMYFARMING APPLICATIONEXTRACTION &

PURIFICATIONCONSUMER

PRODUCTS

Our Supply ChainFarm to Consumer

…gave us insight from multiple perspectives.

24

INTRODUCING STARLEAFTM STEVIA

StarleafTM Stevia Variety

2017

>20x most sugar-like glycosides

(Reb M, Reb D, others)vs. conventional leaf

25

PURECIRCLE STEVIA AGRONOMY PROGRAMME

StarleafTM is the result of significant investment for nearly 2 decades

Stevia Expertise

From Seed to Leaf

The science of naturally developing

new stevia leaf varieties with more of

the best tasting steviol glycosides.

Sustainable Expansion for

Commercial Viability

Growing and scaling the best

stevia varieties to support food

and beverage needs.

RESEARCH &

DEVELOPMENT

SCALING NATURALLY FARMERS

Our PureCircle Stevia Agronomy

Program was created to cultivate and

grow the best tasting stevia at global

scale

Our Commitments

Livelihood + Community

Enhancement

The commitment to grow

high-quality stevia leaf while

contributing positively to the

farming communities.

26

PureCircle BEES (Video)

27

PURECIRCLE AGRONOMY PROGRAMME:SCIENCE AND RESEARCH

Agriculture Process

• Supply based on proprietary varieties

• Transformation from Stevioside leaf to

Reb A leaf ( Reb A increased from 15% to

>80%)

• Replacement of Stevioside and Reb A

with Increased level of better taste

molecules (from <2% to >60%)

• From 5,500 discovered Stevia genes to

>45,000 (Stevia genome mapping)

• Next generation manufacturing plants

featuring proprietary extraction and

purification technologies

• Application of biotechnology in Stevia

processing

• From single-molecule value chain to

mass balance based processing

28

PURECIRCLE MAPS THE STEVIA GENOME

Key Benefits

• A deep understanding of the genetic blueprint to the stevia plant

• Unlocking a targeted approach to traditional cross breeding

• Development of stevia varieties with the highly desired traits

News Headlines

29

INNOVATION DIFFERENCE

• Multidisciplinary approach (agriculture, chemistry,

biotechnology, food technology)

• 55 people in diverse teams (plant breeders, agronomists,

chemists, biotechnologists, food technologists)

• Strategically located R&D facilities

30

STARLEAFTM BREEDING PROGRAM:Traditional, non-GMO, intelligent plant breeding

Typical Stevia

Variety

StarleafTM Stevia Variety

Current Next Gen

Content of eb A

Content of Sugar-

Like Glycosides

Parity

>20X

Parity

>40X

31

PROCESS INNOVATION BREAKTHROUGHS

• Starleaf™ downstream processing technology commercialisation to large scale

• Better tasting steviol glycosides (Reb M, Reb D etc.) biomanufacturing technology commercialisation to large scale

• New functional molecules (antioxidants, flavours) recovery technology development

32

WE TAKE MEASURES TO PROTECT OUR IP

• 12 new patents granted in last 12 months

• 93 granted patents and >200 pending patent applications worldwide

• Steviol glycosides production (extraction, biotransformation, fermentation etc.)

• Steviol glycosides sweetener and flavor compositions

• Steviol glycosides use and applications

• Stevia varieties

33

STARLEAFTM STEVIA (Video)

34

WE WILL SCALE STARLEAF:Leveraging learnings & capabilities from scaling Reb A

Conventional

Variety

2002

StarleafTM Stevia

Variety

2017>20x most sugar-like

glycosides(Reb M, Reb D, others)

vs. conventional leaf

PureCircle Reb A

Variety

20107x Reb A vs.

conventional leaf

35

WHAT IT TAKES TO FARM STARLEAFTM

PLANT BREEDING& AGRONOMY

PROGRAM

FARMING APPLICATIONEXTRACTION & PURIFICATION

CONSUMER PRODUCTS

Our Supply ChainFarm to Consumer

Plant material

SeedlingTransplant Plantation

Production

36

GLOBAL STARLEAFTM SCALE UP & DIVERSIFICATION PLAN

FY'18F FY’19 FY’20 FY’21

DiversificationScale Up

PureCircle Reb A Variety

StarleafTM Variety

China

Zambia

US

India/Other

FY'18F FY’19 FY’20 FY’21

37

SCALING STARLEAFTM: MECHANISATION

• StarleafTM plantation development

• Requires mechanisation of varying degrees depending on each regions requirements

• Labour cost is the main driver

• Adaptation of existing farm equipment

• Innovation on farm to provide cost effective solutions

• USA plantations require full mechanisation

• Sharing of global solutions

38

❖ Digitization of production sites, real-time monitoring and

traceability

❖ Harvest Projection and Yield Estimation modules

❖ Sustainability and Quality Compliance e.g. GLOBALGAP, SAGP, ETI

❖ Alternate sources of data: satellite, weather intelligence, water

probes

❖ Custom dashboards, reports and analytics to track key agronomy

metrics

SCALING STARLEAFTM: IT

39

OUR COMMITMENT TO STEVIA FARMING COMMUNITIES

40

40

Zero-calorie sweetness from nature…now with

a more sugar-like taste

4141

• Rich in extracts with more sugar-like in taste.

Fuller sweetness without linger and aftertaste

• Easier to work with, shorter development times

• Less processed vs. other plant based sweeteners

STARLEAFTM: WHAT IT MEANS FOR OUR CUSTOMERS

42

OUR NEW Starleaf SIGMA LINE USES MOST SUGAR-LIKE EXTRACTS WHILE BUILDING ON SUCCESS FROM ORIGINAL SIGMA LINE

Sigma Approach

• Most sugar-like

extracts, with >20X

vs. conventional leaf

• Scaling globally

StarleafTM Variety StarleafTM Sigma=

StarleafTM Sigma – Beverage

StarleafTM Sigma – Tea

StarleafTM Sigma – Dairy

• Optimised taste profiles

based on combination of

glycosides, for different

applications

• 10+ years of stevia

research on glycosides

and taste performance and

product development

experience across F&B

industry

43

• All steviol glycosides (50+), including relatively new

sugar-like tasting molecules from stevia leaf approved by

US, Canada, Australia, New Zealand authorities for food

and beverage applications

• Joint (FAO & WHO) Expert Committee on Food Additives

(JECFA) has also approved all Steviol Glycosides (50+)

from stevia leaf in June 2017.

• JECFA approval facilitates the approval of sugar-like

tasting molecules from stevia leaf in major Latin America,

Asia and Africa markets in near future.

• EFSA is currently evaluating PureCircle petition for

approval of all steviol glycosides from stevia leaf and for

approval of enzyme modified stevia leaf extract (GSG).

• Argentina and Israel approved Reb M for food and

beverage applications

• Stevia leaf has been approved as food in tea, herbal tea

and fruit infusion in Europe.

REGULATORY PROGRESS in expanding the use of stevia

44

SUMMARY & OUTLOOK

SUMMARY & OUTLOOK

Outlook

• Our Innovation pipeline is strong

• Our newly evolved StarleafTM strategy

enables us to provide the best tasting

solutions for our food and beverage

customers looking to reduce sugar

naturally

• $200m finance facility provides greater

financial stability and flexibility for

PureCircle to fund future growth

• Robust business model – geographic

diversification reduces significant

exposure to geopolitical and climate

risks

• We have a unique market position – no

one knows more about the stevia leaf

than we do

• Moving forwards, stronger

Increased Market Opportunities

• Obesity. According to the WHO:

• Rates have tripled since 1975

• At least 2.8m people die each

year as a result of being

overweight or obese

• 1.9Bn adults are overweight,

650Bn are obese and

• 380m children are overweight

• Diabetes. According to the WHO:

• 425m people have diabetes today

which is expected to rise to 629m

by 2045

• $627Bn estimated healthcare

costs in combating diabetes

• Sugar taxes:

• 8 countries have implemented a

sugar tax; in addition, 8 localities

in the US and 8 island

nations/territories

Summary

• Business is back on track with

double-digit growth at +13.3%

• Everything we do is about helping

our customers achieve their goals of

reducing sugar/calories/cost of

ingredients without compromising

taste through high purity stevia

solutions

• Starleaf stevia enables a step

change improvement in the

availability of sugar-like taste for the

global F&B industry.

46

Q&A

NOTES I

NOTES II