Investor Meet Company Business update 26 May 2021

AZOTE® / ZOTEK® / T-FIT® / MuCell®

Presenters name

David Stirling Group CEO

Gary McGrath Group CFO

T-FIT®

1

Investor Meet Company

Business update

26 May 2021



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any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This

document does not constitute a recommendation by Zotefoams plc (“Zotefoams”), or any of its respective affiliates regarding the securities of

Zotefoams.

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operations and business achievements/performance of Zotefoams. By their nature, forward-looking statements involve risk and uncertainty because

they relate to events and depend on circumstances that will occur in the future. While these represent Zotefoams’ current judgment on the matters

presented, they are subject to certain risks and uncertainties that could cause the actual results to differ materially from those presented. Zotefoams

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How our business works

Leveraging our unique technology with an innovation-led portfolio of advanced products

• Starting with a core process

o Proprietary three-stage process

o Meaningful and sustainable competitive advantage

• Making the best use of our assets

o Running full and mix enriching

o AZOTE® and ZOTEK® foams, regional versus global

• Working with our partners and enriching the product mix

o Working with a network of customers who fabricate and promote

o AZOTE® foams offer best-in-class performance and permanent solutions

• Developing our HPP portfolio to further mix enrich

o More global in nature, close and direct collaboration with customers

o High investment levels delivering a portfolio of products and applications at different stages of lifecycle

• Adding more value for customers, and to our business

o Unique and advanced properties help meet stringent regulations and offer better products

o Offers high margin opportunities, at times further up the value chain

• Ensuring sufficient capacity to meet growing demand

o Significant growth opportunity backed up by recent high levels of capacity investment

o State of the art facilities outside the UK improve local service offering

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… and our MuCell

business, with a

patented process that

creates micro-bubbles

in the core of plastic

parts through gas

injection, typically

generating a 15-20%

reduction in material.


A resilient business

• Zotefoams is a well-balanced business, with a good geographical split

and a broad range of industrial sectors serviced. See following slide

• A highly fragmented polyolefins market helps mitigate industry segment

risk and there are still many opportunities as yet untapped

• The global megatrends of environment, regulation and demographics

all support growth in lightweight, high-performance foams

• 2020 had a particularly strong impact on Zotefoams’ aviation and

automotive customers, but the flexibility and resilience of the business

was demonstrated by the growth in the medical segment

• £10m revenue was generated from a one-off contract a UK customer

secured with the Government to supply visors

• We do not expect significant sales from this market in 2021, but expect

this to be compensated for by the return to growth in many AZOTE®

markets

• HPP opportunities can be of a significant size to the Group, as

demonstrated by the Footwear success. The risk of loss from a large

customer is offset by continued innovation in new opportunities,

development and maintenance of a portfolio of opportunities, and close

collaboration with key customers such as Nike to ensure we remain a

long-term partner

4


Revenue by geography

A well-balanced geographical and industrial spread

Significant change year-on-year with growth in Footwear, the PPE programme and COVID-

related market impacts

Revenue by business unit

Segment overview – well balanced

5

2020

2019

Revenue by industry


Our place in a lower-carbon

economy

Four aspects of our business will enable us to thrive in a lower carbon economy

• Our nitrogen-based process

o Our core high-pressure autoclave foaming process uses nitrogen borrowed from the atmosphere

o Energy and raw material become the only environmental impact

o Process becoming more efficient as we invest

• Efficient use of raw materialo Our technology delivers foam products with better performance per unit of weight

o Less material, with the integrity and durability to require less frequent replacement

• Our products’ role in avoiding emissions

o Products used in a way that reduces emissions and conserves scarce resources

o Eg, thermal insulation, protect products in transit with high carbon footprint, replace heavier alternatives

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• New product development

o ReZorce®, a variation of our MuCell® technology, is a 100% recyclable mono-barrier

packaging solution which has been designed to replace difficult-to-recycle tubes,

laminated paper, pouches and cartons


Environment

• Zotefoams’ purpose of providing optimal material solutions for the benefit of society encompasses

our beliefs that plastics, when used appropriately, can be the optimal solution both functionally and

environmentally for our customers

• We also recognise the importance of continuous improvement around product development and

operating efficiency to reduce the Group’s environmental impact

• Recent achievements:

• We have developed and marketed lighter, more efficient, less wasteful, longer life products

• Our three-stage process is environmentally friendly and affords exceptional product

characteristics that contribute to a longer service life

• We have set out to improve post-consumer recycling rates of single-use packaging by designing

ReZorce® mono-material barrier packaging for full compatibility with HDPE recycling (stream 2)

• Zotefoams achieved accreditation to ISO450001:2018 ahead of the 2021 deadline

• In 2021 we are:

• adopting the SASB sustainability reporting framework and the TCFD climate-related financial

disclosures guidance

• using a newly established independent ESG committee for longer-term ESG planning and ESG

disclosures to stakeholders

• Using an electricity supplier signed up to the Renewable Energy Guarantees of Origin scheme to

achieve 100% renewable sources

7


ReZorce® Circular Packaging

A MuCell Extrusion LLC development

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Positioning

• The first fully recyclable beverage carton

• Performance and functionality matches

current multi-material solutions

• Five times less energy; 11 times less water;

50% lower Global Warming Potential 1

• 100% recyclable (up to 100% recycled

content2)

• Complies with forthcoming legislation

• Scalable using current infrastructure

• IP backed

Stage

• Validation stage gate process involving

external consultants – next major assessment

in Q3 2021

• Evaluation costs capitalised in accordance

with IFRS 38

1 Independent Lifecycle analysis performed vs a comparable aseptic beverage carton2 Current formulations from 12%-70% recycled content. Subject to food contact regulations


Success in Footwear

• Exclusive relationship with Nike since 2017

• ZOTEK® PEBA, based on a thermoplastic elastomer (TPE) resin,

illustrates how our autoclave technology can be used to foam polymers

that cannot be reliably expanded by any other methods, which is the

founding principle of our HPP business

• Footwear is now the largest component of HPP and grew strongly as

anticipated in H2 2020 to account for 26% of Group revenue (2019: 16%)

• 2021 will see further growth with full year activity in line with H2 2020 run

rates

• Growth follows close collaboration with Nike as product innovation from

Zotefoams is used on an increasing number of running shoe models

• We continue to work closely with Nike globally to ensure Zotefoams’

development efforts are clearly aligned with Nike’s priorities. This includes

working together to ensure the carbon footprint of ZoomX is as

impressive as its record-breaking performance

• Our successful collaboration was recently recognised by Zotefoams being

voted best innovating supplier to Nike

• Recently launched ZOTEK® T, which uses the same polymers but targets

applications outside of the performance footwear exclusivity with Nike

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Today’s trading statement

"In line with the Outlook Statement in our 2020 preliminary results announcement, the first four months of 2021 have seen strong demand and order intakeacross most regions and markets. This resulted in Group revenue for the period being approximately 60% ahead of the comparative period for the previous year(approximately 14% ahead of the comparative period for 2019), against an FX headwind of c.3%, with March and April being consecutive record Group revenues:

• High-Performance Products (HPP) sales increased by 133% over 2020 (up 61% v 2019)

o The strong demand in Footwear seen in the second half of 2020 has continued, with sales at similar levels to the latter part of last year

o The Group has delivered good growth in some of its newer, niche segments, although the continued weakness in the aviation markets has meantthat non-footwear ZOTEK® HPP foam sales remain significantly behind pre-COVID levels

o T-FIT® insulation product sales grew very strongly in the period, led by a very good performance in China, while demand in India and Europe remainsconstrained by ongoing COVID-19 impacts

• Polyolefin Foams sales increased by 32% over 2020 (down 7% v 2019)

o Overall demand was very buoyant, with good recovery in most markets other than aviation

o Lower January sales, due to Brexit-related uncertainty at customers, was the principal driver of the overall lower revenue performance versus a verystrong comparative in 2019

• MuCell Extrusion sales increased 36% over 2020 (up 76% v 2019)

o A good start to the year with positive momentum from licence feeso Commercial and technical focus is now on ReZorce® mono-material barrier technology

The Group has responded well operationally to this strong recovery, including commissioning the new Polish facility at the beginning of this year. Supply chainshave been effectively managed in the period to ensure availability, although we have seen significant inflationary pressures, particularly in polyolefin rawmaterials and freight. Sales price increases have been implemented to mitigate the impact of all but the peak pricing of freight and polyolefin raw materials.

As was the case in the second half of last year, we have continued to increase investment in product and commercial development initiatives, as demandrecovers, in order to support the returning growth momentum. In particular, we have invested significantly in the commercialisation of our fully recyclable,circular, barrier packaging solution ReZorce®, developed by MuCell Extrusion LLC. We have made good progress in demonstrating end-of-life, recyclability andthe low-carbon footprint of this technology through independent life-cycle analysis. Market positioning and engagement with potential customers has alsobegun, with commercial development partners identified. The Board had previously approved capital expenditure for a pilot extrusion line and this is now beingsupplemented by downstream carton-making and packaging, all due for commissioning in the third quarter this year, alongside further development of thetechnology supporting ReZorce.

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Today’s trading statement

OutlookWe have delivered very strong sales growth in the first four months of the year, despite currency headwinds and the continuing negative impact of COVID-19related factors in some markets. We anticipate this sales momentum to continue, supported by a strong order book at the end of April, albeit against morechallenging comparatives for the remainder of the year.

While it is still early in the year and we are mindful of the volatile macroeconomic environment, we anticipate Group revenue to be significantly ahead of marketexpectations for the full year, which will offset the short-term inflationary impacts on margins, the weaker US dollar and our planned increase in product andcommercial development costs. Consequently, we are comfortable with current market expectations for growth in profit and reduction in leverage for the yearand remain confident about the long-term prospects of the business."

Commenting on the update David Stirling, Group CEO of Zotefoams, said:

"We are greatly encouraged by the excellent start to the year, particularly the strong growth so far compared with the comparable period (pre-pandemic) in

2019 and expect full year revenue to be significantly ahead of market expectations for the full year. Once again, our business is delivering a robust performance

in volatile economic conditions, led by the contributions of a highly committed global workforce, and I believe our continuing investments leave us well placed to

support our best growth projects.”

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Thank you for

your attention

Contact

Zotefoams plc

675 Mitcham Road

Croydon

CR9 3AL

Tel: +44 (0)20 8664 1600

Email: [email protected]

www.zotefoams.com

AZOTE® / ZOTEK® / T-FIT® / MuCell®12


Appendices


Appendices


Investment case

Flexible core autoclave

capacity for block foam production

(AZOTE® & ZOTEK®)

HPP growth rates significantly above

AZOTE® foam, with superior

margins

Investment inUSA and Poland

adds to cost base initially but

underpins growth potential ZOTEK®

(HPP) portfolio of products at

different stages of development and

market penetration

MuCell optionality: investment in

customer base with long value tail

Downstream investments (ZMW,

T-FIT China)increase influence on supply chain

and enhancemargins

Sustained high levels of organic growth with margin enhancement through product mix and operational gearing

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Sustainable high levels of organic

growth due to innovative product

portfolio and megatrend alignment


Overview

Founded on innovation

stretching back to 1921

A world leader in cellular materials

technology

Organisation Products

Environmentally friendly

Nitrogen/CO2gas foaming processes Barriers

to entry: IP, capital,

applicationspecifications

and supply chain Global

workforceapproximately

470

Unique technology delivering

solutions in growth markets

Polyolefin Foams

High-Performance

Products

Technology licensing for

micro-cellular materials

Technical tube and pipe

insulation

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Strategy

“Our ambition is to

be the world leader

in cellular materials

technology in our

chosen markets”

We deliver

stakeholder value

by using unique

technology to

create a portfolio

of differentiated

products

We focus

resources primarily

on markets where

we are, or have the

potential to be, a

market leader

We intend to develop

business through

sustained high

levels of organic

growth and through

partnerships or

acquisitions

Overall, we believe our strategy is sound and the ability to realign our business, to adapt to a rapidly changing environment and to manage our cost base and investment profile demonstrates the flexibility of our product range, capacity and people.

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Business overview

POLYOLEFINS MELHPP

AZOTE®

Premium durable foams

Uniformly dense foam sheets with a

consistent cell structure. These

foam sheets and blocks are

manufactured from common

polymers using our unique

nitrogen-expansion process.

ZOTEK®

Lightweight technical foams

Foams which offer superior

technical properties such as energy

management, durability, heat and/or

fire-resistance, ZOTEK® foams are

manufactured from engineering

polymers using our unique nitrogen-

expansion process.

T-FIT®

Technical insulation for industry

A range of insulation products

manufactured from Zotefoams’ own

ZOTEK® block foam materials. T-

FIT® insulation products are

purpose designed to perform in

demanding environments.

MuCell®

Innovative and accessible

technology for greener, lower

cost plastic products

This pioneering technology injects

gas into plastics during the

manufacturing process to create

micro-bubbles and is licensed to

customers manufacturing plastic

parts. The end-product uses 15 -

20% less material. Recently

developed ReZorce® circular

mono-material barrier packaging.

Key Markets

Automotive / Aviation /

Construction / Industrial /

Marine / Military / Product

Protection / Sport and leisure

Key Markets

Automotive / Aviation /

Athletic footwear / Construction

Key Markets

Food and personal care

manufacturing

High-temperature processing

environments

Pharmaceutical, biotech and

semiconductor clean rooms

Key Markets

Automotive /

Consumer packaging

Key Market Drivers

Lightweighting

Durability

Fire safety

Reduced toxicity

Key Market Drivers

Lightweighting

Personal safety

Durability

Fire safety

Energy management

Key Market Drivers

Aging population

Demographic changes

Reduced toxicity

Key Market Drivers

Environmental benefit

Lower cost

EXTRUSION TECHNOLOGYAUTOCLAVE TECHNOLOGY

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AZOTE® / ZOTEK® / T-FIT® / MuCell® 18

Three stage process


MuCell® technology produces foam that performs like solid plastic. It creates micro-bubbles in the centre of plastic extrusions by injecting gas into the melt during manufacture.

Lighter Greener Lower costcost

MuCell® process technology

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Group overview - locations

MuCell Extrusion HQ Woburn, MA, USA licenses MuCell®

technology to end users

AZOTE ® Asia Limited Hong KongSales joint venture

Zotefoams plcCroydon UK block foam mainmanufacturing site

Zotefoams Inc, Walton, KY, USA AZOTE ® block foam manufacture

Zotefoams Midwest, Tulsa, OK, USA foam cutting

Zotefoams Poland, SP z.o.o., Brzeg

foam manufacture

Zotefoams T-FIT Material Technology (Kunshan) Co. Ltd,China

T-FIT ® products manufacture

T-FIT Insulation Solutions Pvt Ltd. Ahmedabad, India

T-FIT ® sales operation

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Main markets & typical applications

Product

Protection

AZOTE® ZOTEK® MuCell®

Luxury, fine art and museum

Industrial protective and transit

Aviation & aerospace

Electronics

Space station transit pods

Consumer (food and household)

Transport


Aircraft seats, seals

Automotive seals, gaskets

Galley areas / window seals

ECS (air ducting)

Soft touch trim / close outs

Composites panels

Automotive airducts

Industrial

AZOTE® ZOTEK® T-FIT®

Seals and gasketsMarine hoses and fenders

Clean room environments

High heat up to 205oC including

food processing & personal care

plants

Sports & leisure

AZOTE® ZOTEK®

Impact protection padding

Life jackets, swim floats,

Paddle boards, sports turf

underlay

Athletic shoes, impact pads

Building & construction


Roof & wall insulation

District heating pipe spacers

Seals and gaskets, acoustic

dampening

Piping, signage and insulation

Medical

AZOTE®

PPE

Product protection

Buoyancy aids

Prosthetics / orthoses

Pads, seats and cushions


Investor Meet Company Business update 26 May 2021

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