MADFLEXDOUBLE-FACE PANEL FOR DISRUPTING DYNAMIC SOLUTIONS

MADLY STRONG. SUPER FLEX

All rights reserved to Composite Research srl

SummaryIntroducing CoRe……………………………………..……………..3

Meet The Team………………………………………….……………..4

Shareholders……………………………………………………………5

Traction And Milestones……………………………………….……6

MadFlex – Technology And Advantages……………………….7

Present Challenges.………………………………………………….8

CoRe’s Solution……………………………………………………….9

What’s The MadFlex………………………………………………..10

Why The MadFlex……………………………………………….…..11

MadFlex Market Penetration –

Sectors & Killer Applications……………….……………………14

Composite Materials……………………………………………….15

Sports…………………………………………………………………..17

Building………………………………………………………………..19

Automotive…………………………………………………………..21

Nautical………………………………………………………...........23

Healthcare…………………………………………………………….25

Aerospace………………………………………………….............27

Business Strategy………………………………………………….29

MadFlex Project Plan………………………………………………30

Market Drivers……………………………………………………….31

Revenue Model……………………………………………………..32

Licensing……………………………………..……………………….33

Royalties……………………………………………………………….34

Revenues & Profits.…………………………………..…………….35

Costs And Coverage Model….……………………………….....36

Customers…………………………………………………………..37

Intellectual Property………………………………………………38

Collaborations & Partners……………………………………....39

SWOT Analysis……………………………………………………..40

Take Part…………………………………………………………….41

Contacts……………………………………………………………..43

2

Introducing CoReCOMPOSITE RESEARCH

Innovative start-up since 2016Turin, Italy

Develop smart and innovative solutions in the field of composite

materials

GOALSExtreme lightness

AccessibilityEnergy efficiency

ModularityNo structural limits

FIRST OUTPUTThe MadFlexMADly Strong

Super FLEX3

Meet The Team

Eugenio FOSSAT, 29

R&D Manager

Chemistry student, 3-year-experience in the R&D sector and in composite materials.

Marco MORRONE, 32

Business strategy development and customers’ relationship manager

Seven-year- experience as financial adviser, M&A consultant, event organizer

Nicola GIULIETTI, 33

Project Manager

Master in energetic engineering and bachelor in environmental engineering; 4-year-experience in the R&D sector and in composite materials.

Nadia CEOLIN, 33

Business strategy development and communication manager

Master degree in international corporate communication, seven-year experience as financial adviser and event organizer.

4Fossat, Morrone and Ceolin form the Board of Directors of the company

Shareholders

Fossat65%

Giulietti20%

Morrone5%

Ceolin 5% Mangone2,50%

Costa2,50%

Cesare MANGONE

CoRe equity investor since 2016

Founder, CEO and President of Progetti, an international leading company in the field of medical devices. Academic training in chemistry and a master degree in business administration at the Boston University.

Luigi COSTA

CoRe equity investor since 2016

Polymer Chemistry PhD Professor at the University of Turin, with an extensive expertise in the field of materials and numerous participations in research projects.

5

Two equity investors already financially support CoRe,holding a minority share of the company . Thanks to theirexpertise in their relative sectors, they have proved to bean invaluable asset for the start-up, providing alsomanagerial support, a network of top-level contacts anda bridge with the academic world.

Traction and Milestones

The team and 2 equity investors found and support

CoRe with € 95000

2015 2016 1st semester

20162nd semester

2017 1st semester

The MadFlex selected by the Polytechnic Universities of Milan and Turin for a

development project

EIT Raw Material, recognizing the environmental and

innovation benefits of the MadFlex, granted € 60000

MadFlex optimization- 85% cost reduction

- Performance improvement

MadFlex patent judged innovative by WTO prior

art search report

Positive lab tests

First prototypesIdea

Interest in the MadFlex, expressed by leading companies in the architecture

health, automotive, nautical, aerospace and recreational vehicles sectors. Discussions on

agreements are on going.

6

THE MADFLEXTechnology & Advantages

Present ChallengesToday

Structural efficiency/Insulation

Lightness/Ease of transport

Final results achieved through the use of: Complex systems to create folding parts (metallic

hinges, junctions, etc.); Additional layers of materials increased costs

and labour

Lightness

Tensile strength/density

ratio

Thermal conductivity

Flexibility

Aluminium

Steel

ABS

Carbon fiber

MADFLEX8

Tomorrow

CoRe’s Solution

Lightness

Flexibility

High stiffness

High strength

Acoustic and thermal insulation

Vibration damping

TECHNICAL FABRICS INSULATING FOAMS STRUCTURAL MATERIALS

The MadFlexAn amazing combination of the pros of:

9

What’s The Madflex

A multi-layered composite material panel.Flexible on the one side

Crushproof on the otherFULLY CUSTOMIZABLE

- Combination of materials- Thickness- Mechanical properties- Aesthetic finish Carbon fiber becomes flexible…

10

Why The MadFlexLightness4 times lighter than ABS and aluminium 20% lighter than traditional composite sandwiches – NO need for mechanical hinges

Acoustic and thermal insulation3 times higher than steel and aluminium, 2 times higher than ABS

Vibration dampingThin panels behave like rigid ones

Ease of transport9 m rollable in 20 cm 0 5 10 15 20

MadFlex

Steel

Aluminium

Weight in kg

11

Tensile strength/density ratio5 times more efficient than structural steel

Flame resistanceIn accordance with current regulations

ThermoformabilityCurved shapes are now easy to achieve

Low environmental impact5 times lower than ABS and aluminium

0,00 20,00 40,00 60,00 80,00

MadFlex

Steel

Aluminium

Global Warming in CO2eq.

12

13

MadFlex is a product on-demand. Composite Research can create tailored solutions, able to satisfy customers’ requests. We can build ad hoc panels, modulating the MadFlex mechanical properties, its chemical characteristics and the aesthetic finishing. In other words, from a single patented idea, we can obtain a thousand solutions.

The MadFlex can be easily produced along with traditional composite sandwich panels, obtaining components that are rigid in some areas and flexible in others. Similarly, it is possible to create fabrics with reinforced areas in Madflex.

Here below a comparison between 1m x 1m panels, supported at the two sides and with the same deflection under a 200 kg load. The weight of the different solutions depends on the density and the thickness of each panel. The figure shows the convection heat loss compared with the base case (MadFlex) considering two different temperatures above (lower) and below (higher) the plane.

MADFLEX 1.7 kg

ABS (plastic) 10 kg ALUMINIUM 7.8 kg SAFETY GLASS 7.7 kg STEEL 16.2 kg

Heat loss 100%

Heat loss 210% Heat loss 300% Heat loss 280% Heat loss 300%

MADFLEX MARKET PENETRATION

Target Sectors & Killer Applications

0

2

4

6

8

10

12

Sport Building Automotive Nautical Healthcare Aerospace

YE

AR

S

14

Composite MaterialsREFERENCE MARKET*

Current revenues USD 69,50 bln

Expected revenues in2021

USD 105,26 bln

CAGR 7,04%

Main global players Hexcel Corporation (USA)Huntman Corporation (USA)Owens Coming (USA)Toray Industries (J)Teijin Limited (J)

MADFLEX SECTOR PROS

Lightness – 20% lighter than many traditional sandwichesFlexibility – no need for metallic junctionsReduction in bulk – ease of storage and transportLow environmental impact

15* Markets & Markets, 2016

MadFlex HingeConnecting Composites

Tightness and impermeability

Weight reduction

No concentration of efforts

No energy waste

Integration in the existing productive cycle

Thermoformability

High resistance to any environmental factors

Better performances in less than half the weight

16

SportsREFERENCE MARKET*

Current revenues USD 66,52 bln

Expected revenues in2022

USD 81,82 bln

CAGR 3%

Main global players YONEX (J)Nike (USA)Jarder Corporation (USA)Globeride (J)Puma (D)Adidas (D)Callaway Golf Company (USA)Amer Sport (FIN)

MADFLEX SECTOR PROS

LightnessFlexibility – no need for metallic junctionsBiocompatibilityVibration dampingReduction in bulk – ease of storage and transportDurabilityFast mountingWide range of aesthetic finishLow environmental impactThermoformability in any desired shape

17* Persistence Market Research, 2015

Potential Applications

Folding wheelchairs

Easy to store and transport sports equipment

Protection devices

Fitness accessories

Aerodynamic elements and extreme sports sails

18

BuildingREFERENCE MARKET*

Current revenues USD 171.47 bln

Expected revenues in2022

USD 377.03 bln

CAGR 11.9%

Main global players Alumasc Group (GB)Amvik Systems (CDN)BASF (D)Bauder Limited (GB)Forbo International (CH)Interface Inc. (USA)Exel Composites Oyj (FIN)Jamco Corporation (J)Schoeck International (D)

MADFLEX SECTOR PROS

Lightness with a reduction of the load on the load bearing structuresSelf-support – no need for metallic junctionsHigh insulationHigher traction, cutting and punching resistanceVibration dampingEase of transport and mountingDurabilityAnti-seismic propertiesWide range of aesthetic finishLow environmental impactThermoformability in any desired shape

19* Allied Market Research, 2016 – Marketss & Markets, 2016

Potential Applications Covers and tensile structures

Facade panels and architectural enclosures

Emergency structures

Inflatable structures

Blinds and shading systems

Sliding doors

Design elements

20

AutomotiveREFERENCE MARKET*

Current revenues USD 149,03 bln

Expected revenues in2022

USD 301,36 bln

CAGR 8,3%

Main global players BASF (D)The Dow Chemical Company (USA)LANXESS AG (D)Lear Corporation (I)Faurecia (F)Magna International (CDN)Mitsubishi (J)Toray Industries (J)Toho Co (J)SGL (I)

MADFLEX SECTOR PROS

Lightness - Lower fuel consumptionHigh insulating properties - Greater climatic comfortVibration dampingFlexibility - Reduction in bulk and in air-leakage lossesHigh traction, cutting and deterioration resistanceWide range of aesthetic finishLow environmental impact - In compliance with existing stringent regulations

21* Transparency Market Research, 2017 – Persistence Market Research, 2015

Potential Applications Sunroofs and convertible tops

Car body elements for ultra-light vehicles

Cargo load floors and parcel shelves

Bedliners and luggage racks

Aerodynamic elements

22

NauticalREFERENCE MARKET*

Current revenues USD 1,12 bln

Expected revenues in2022

USD 1,70 bln

CAGR 7,3%

Main global players Du Pont (USA)3A Composites (CH)Hexcel Corporation (USA)Cytec Industries (USA)Zoltek Companies (USA)Toray Industries (J)Owens Corning (USA)

MADFLEX SECTOR PROS

Lightness with a reduction of the load on the load bearing structuresSelf-support – no need for metallic junctionsHigh insulationHigher traction, cutting and punching resistanceVibration damping – ideal at high speedEase of transport and mountingDurabilityWide range of aesthetic finishLow environmental impactThermoformability in any desired shape

23*Zion Market Research, 2017 – Materials Today, 2013

Potential Applications Boat awnings

Walkways

Inflatables and tenders

Interior design elements

Sails

24

HealthcareREFERENCE MARKET*

Current revenues USD 70,9 bln

Expected revenues in2021

USD 149,17 bln

CAGR 16%

Main global players Royal DSM (NL)BASF (D)Corbion N.V. (NL)Covestro (D)Invibio (GB)Carpenter Technology Corporation (USA)Evonik Industries (D)Berkeley Advanced Biomaterials (USA)

MADFLEX SECTOR PROS

LightnessFlexibility – no need for metallic junctionsBiocompatibility -greater comfort in contact with the skinReduction in bulk – ease of movementDurabilityWide range of aesthetic finishThermoformability in any desired shape

25* Markets & Markets, 2016

Potential Applications Folding wheelchair

Folding emergency devices

Orthopedic and rehabilitative devices

Retractable access ramps

26

AerospaceREFERENCE MARKET*

Current revenues USD 13,4 bln

Expected revenues in2022

USD 23,8 bln

CAGR 7,4%

Main global players Royal Ten Cate (NL)Toray Industries (J)Teijin (J)Hexcel Corporation (USA)Solvay Group (B)

MADFLEX SECTOR PROS

Lightness with a reduction of the load on the load bearing structuresSelf-support – no need for metallic junctionsHigh insulationHigher traction, cutting and punching resistanceVibration damping – ideal at high speedEase of transport and mountingDurabilityWide range of aesthetic finishLow environmental impactThermoformability in any desired shape

27* Market Research Society, 2015 – Markets & Markets 2017

Potential Applications Retractable interior panels and

design elements

Aerodynamic elements and drones

Coatings for ultra-light vehicles

Expandable space modules

28

BUSINESS STRATEGY

MadFlex Project Plan2016 – 2017 2018 – 2020 From 2021

Start Acceleration Consolidation

Corporate structure MadFlex optimization Market analysis Networking activities First round of investments: €

160,000 (100% completed)

MadFlex sectoral characterization

First prototype applications First licencing agreements

and royalties Sectoral networking Second round of investment:

€ 650,000 goal

Full financial autonomy through licensing and royalties agreements

Distribution of profits

30

Market DriversComposite material market expansion, projected to grow from USD 69.50 billion in 2015 to USD 105.26 billion by 2021 (CAGR 7.04%).

Increasingly stringent environmental regulations and focus on lightweight solutions, to reduce energy dispersion and fuel consumption. E.g. Paris Agreement, ELV Directive by the European Commission

Quest for design freedom, enabling the creation of new dynamic solutions, which can facilitate movement (orthopaedic supports), enhance athletic performance (rigid sails), or simply combine aesthetic value with energy efficiency (kinetic architecture).

31

Revenue Model

CoReIndustrial

Partner

Cooperation Agreement

Licensing agreements for the MadFlex patent exploitation

(€ 25k – € 100k each)

Royaltieson the sale of final products

(5% average)

32

0

2

4

6

8

10

12

YE

AR

S

MadFlex Market Penetration

Licensing

0

500

1000

1500

2000

2500

3000

3500

4000

2018 2019 2020 2021 2022 2023 2024 2025

Licensing in 10K EUR

Sport Building Automotive

Nautical Healthcare Aerospace

33

1y 2y 3y 4y 5y 6y 7y 8y 9y 10y

SportsNr 0 0 5 7 10 10 10 10 10 10Rev 0 0 125 175 250 250 250 250 250 250

BuildingNr 0 0 4 8 12 15 15 15 15 15Rev 0 0 200 400 600 750 750 750 750 750

Automotive Nr 0 0 2 4 6 8 10 10 10 10Rev 0 0 100 200 300 400 500 500 500 500

NauticalNr 0 0 2 4 6 8 10 10 10 10Rev 0 0 100 200 300 400 500 500 500 500

HealthcareNr 0 0 0 2 4 8 10 12 15 15

Rev 0 0 0 100 200 400 500 600 750 750

AerospaceNr 0 0 0 1 2 3 5 7 10 10Rev 0 0 0 100 200 300 500 700 1000 1000

TOT 0 0 525 1175 1850 2500 3000 3300 3750 3750

The tables show the revenues (Rev) deriving from license agreements, broken down by sector and based on years of company activity. For each segment, a number of contracts (Nr) per potentially realistic application was evaluated, multiplying it by an average value (€ 25k - € 100k). The data entered is to be understood in tens of thousands of euros.The launch of patent licensing agreements MadFlex will involve all target sectors right from now, with a growing number of applications, depending on the degree of access and complexity of the industry. At the end of the acceleration period (2018 - 2020), CoRe expects that this strategy will bring revenues of almost 2 million euros, forming more than 50 percent of corporate earnings.2016

Royalties

0

5

10

15

20

25

30

35

40

2018 2019 2020 2021 2022 2023 2024 2025

Royalties in million EUR

Sport Building Automotive

Nautical Healthcare Aerospace

34

1y 2y 3y 4y 5y 6y 7y 8y 9y 10y

SportsMkt 0 0 0 0,01 0,03 0,05 0,07 0,1 0,2 0,5Rev 0 0 0 0,28 0,83 1,4 1,96 2,79 5,6 13,99

BuildingMkt 0 0 0 0 0,01 0,03 0,05 0,07 0,1 0,2

Rev 0 0 0 0 0,72 2,16 3,61 5,05 7,21 14,43

Automotive Mkt 0 0 0 0 0 0,01 0,03 0,05 0,07 0,1Rev 0 0 0 0 0 0,62 1,88 3,13 4,39 6,27

NauticalMkt 0 0 0 0 0 0,01 0,03 0,05 0,07 0,1Rev 0 0 0 0 0 0,01 0,01 0,03 0,03 0,04

HealthcareMkt 0 0 0 0 0 0 0 0,01 0,02 0,03Rev 0 0 0 0 0 0 0 0,29 0,6 0,89

AerospaceMkt 0 0 0 0 0 0 0 0 0 0,01Rev 0 0 0 0 0 0 0 0 0 0,06

TOT 0 0 0 0,28 1,55 4,19 7,46 11,29 17,83 35,68

The following table shows revenue volumes (Rev) for each sector of interest to the company. Of course, the time taken to exploit this strategy will vary depending on the reference market, taking into account any entry barriers (e.g. certifications) and the complexity of THE applications that will be developed. The royalties were calculated by multiplying the current revenues of each segment, with the market share target (Mkt) and, on this value, applying 5% of royalties. The values were then converted into euros, with a dollar / euro exchange rate of 0.8415. The final values are expressed in millions of euros. This forecast remains extremely conservative, as it does not take into account the growth of the respective markets, but only refers to the values currently attained.For its acceleration, CoRe expects that this second strategy will cost allow collecting over 1.5 million euros, covering nearly 50 per cent of the expected total revenues.

Revenues & Profits

0 0 0,52 1,53,7

7,4811,86

16,73

24,93

46,16

0

5

10

15

20

25

30

35

40

45

50

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Start Acceleration Consolidation

Revenues in million EUR

35

-0,001 0 0,36 1,64,73

11,15

21,71

35,2

-5

0

5

10

15

20

25

30

35

40

2016 2017 2018 2019 2020 2021 2022 2023

Start Acceleration Consolidation

Profits in million EUR

Average target market share 0,01%

Cost And Coverage ModelCosts in 1k EUR2016 2017 2018 2019 2020

Human resources 15 35 100 150 200

Intellectual properties

20 15 10 10 10

R&D 15 15 20 20 25

Marketing & Promotion

10 15 25 25 25

General management

10 10 10 10 10

TOT. 70 90 165 215 270

Profits in 1k EUR2016 2017 2018 2019 2020

Costs 70 90 165 215 270

Revenues 60 100 525 1,455 3,400PROFITS -10 0 360 1,600 4,730 36

In order to ensure its subsistence and implement its strategies, CoRe has identified a five-year budget covering the period when it will be formally registered as an innovative start-up and it will not distribute profits to its members. The values in the table are in tens of thousands of euros.

To cover the needs of the first two years of operation, CoRe has used the capital contributions made available by the shareholders, which amounted to approximately € 90,000. Moreover, in 2016, the company has received € 60,000 in fund, winning the start-up booster call, promoted by the European Institute of Technology (EIT) Raw Materials.

For the next three years, from 2018 to 2020, CoRe intends to cover its needs through the revenue received from the first licensing agreements. However, to ensure a wider breathing and greater tranquillity, the company intends to put in place two parallel support strategies:1. Participation in new calls (eg SME 1, Dubai 2020, etc.);2. Entrance of one or more new investor partners (see pag. 41).

Customers

SECTORCOMPANIES

Sports – Building – Automotive – Nautical –Healthcare – Aerospace

New applications Unique competitive advantage

Compliance with new environmental regulations

COMPOSITE MATERIALS MANUFACTURERS

Opening to new markets Unique competitive advantage

No need to change the production processes Increased performances compared to existing

composites’ sandwiches

As an R&D company, CoRe does not deal with the production of the MadFlex, if not for small quantities. However, it has built a number of connections with different productive centres in Italy, which can support the start-up and its customers. In this sense, CoRe can act as a bridge between sector companies and composite materials manufacturers. 37

Intellectual Property

Technology patented in Italy

International patent application judged innovative by the WTO

Patent extension in USA and Europe

38

Collaborations & Partners

39

2016 – CoRe winner of the Innovation booster call promoted by

RSTRENGHT

- Unique market position

- Fully customizable

- Easily produced in any traditional composites facility

WEAKNESSES

- Composites market at embryonic level

- No existing MadFlex application on the market

- Need for funding to develop application prototypes

OPPORTUNITIES

- Boosting of the composite materials market

- Stringent environmental regulations

- Many different target sectors

THREATS

- Proper identification of killer applications

- Companies only focused on cost-saving logics

SWOT ANALYSIS

40

Take Part

41

GOAL

MadFlex project acceleration2018 -2020 Sectoral characterization First prototype applications First licencing agreements and

royalties

INVESTMENT NEEDED € 650,000

USE OF FUNDS

40% Implementation of marketing activities

20% Optimization the material 40 % MadFlex customization

according to its target sectors

CoRe 75%

New entry 25%

€ 650k investment = 25% CoRe’s equity

Expected profits after acceleration: € 4,73 mlnAverage target market share: 0.01%

ROI after 3 years = 81%

Rethink

Redesign

Create

Innovate

WIN

Achieve a total new level of performances with the MadFlex

Light as a technical fabricInsulating as a foam

Strong and resistant as a structural material

MADFLEXBOOST CONSCIOUS

PROGRESS

42

ContactsRegistered office:

Composite Research srl

Piazza AVIS, 9

10064 Pinerolo, Turin, Italy

43

www.composite-research.com

info@composite-research.com

Eugenio +39 389 7949730Nicola +39 380 2931955Marco +39 349 3278317Nadia +39 392 0325142

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