Sept.

2020
LEADING THE PLASTICS
CIRCULAR ECONOMY

Investor presentation
Euronext Growth Paris: ALCRB

1
DISCLAIMER
This presentation contains forward-looking statements about the Company’s business and prospects. Such forward-looking statements are based on numerous

assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future, which may not be accurate.

This document is not to be reproduced by any person, nor to be distributed.

Such forward-looking statements also involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance

or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. All statements

other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business,

regulatory strategy, plans and objectives of management for future operations (including development plans and objectives relating to our processes and products),

are forward looking statements.

These statements may refer in particular to Carbios management’s business strategy, its expansion and growth of operations, future events, trends or objectives and

expectations, which are naturally subject to risks and contingencies that may lead to actual results materially differing from those explicitly or implicitly included in

these statements. Carbios, its affiliates, directors, advisors, employees and representatives, expressly disclaim any liability whatsoever for such forward-looking

statements. Carbios does not undertake to update or revise the forward-looking statements that may be presented in this document to reflect new information, future

events, or for any other reason and any opinion expressed in this presentation is subject to change without notice. Actual results could differ materially from those

expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under Chapter

1.12. “Facteurs de Risques” in the Universal Registration Document (Document d’enregistrement universel) filed by Carbios with the French Market Authority (“AMF”) on

April 29th, 2020. This document and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy or subscribe to shares of

Carbios in any country.

2
WHY INVEST IN
CARBIOS NOW?

Currently building a demonstration Huge market opportunity

plant in final step to commercializing
its PET recycling technology ➢ Potential global partnerships paying up-front
cash and revenues from the selling of enzymes
➢ Reaching licensing stage end of 2022
➢ Strong market demand and highly favorable
➢ Target multi-billion $ markets
regulatory pressure
➢ Significant profitability anticipated
➢ Carbios’ BOs partners have already expressed
~1,5 million tons demand of recycled PET by 2025
Benefits of the technology

➢ 100% yield recycling

➢ A process that can handle all forms of PET plastics and polyester fibers
➢ No inhibition of the enzyme by colorants, pigments, carbon black or other polymers
➢ Depolymerization at low temperature, atmospheric pressure, water based

A UNIQUE OPPORTUNITY TO INVEST IN CIRCULAR ECONOMY

3 3
INTRODUCTION

4
HOW DO WE FIX THIS?
Each year …

86% of packaging waste goes unrecycled globally(1).

350 to 400 million tons(2) of plastic are produced worldwide, including 70 million tons
of PET(3) worth approx. $80 billion (a market growing by 4% p.a.(4)).

150 million tons(5) of plastic waste are generated including 9 million tons (6) that ultimately
end up in the natural environment, particularly in our seas and oceans.

500 billion units(7) of plastic bottles are produced each year and fewer than half are
collected for recycling.

Up to $120 billion(8) worth of plastic material is disposed of just after one single-use.

1. Citigroup in 2018
2. PlasticsEurope in 2018 5. Straits Times in 2015 7. Citigroup in 2018, Euromonitor in 2017 5 5
3-4 IHS Markit in 2018 6. Ademe in 2012 8. Ellen McArthur Foundation & McKinsey: The New Plastic Economy in 2016
 AMBITION
AMBITION

Lead the transition towards sustainable plastics economy

by developing technologies for the end of life of plastics

TECHNOLOGIES

Revolutionary enzymes for infinite recycling

and biodegradation of plastics

6 6
WHERE WE STAND NOW!

2020: commercial launch of 2020-2023: industrial rollout of Carbios’

the world’s first enzymatic infinite PET RECYCLING technology
BIODEGRADATION technology

Engineering and construction:

7 7
AN EXPERIENCED
MANAGEMENT TEAM

Jean-Claude Martin Kader Prof. Alain

LUMARET STEPHAN HIDRA MARTY
Founder & CEO Deputy CEO Chief Financial Chief Scientific
Officer Officer

40 years’ experience in the 30 years’ experience in the Financial markets expert International expert in
international agro-industry and chemical industry enzymology and biological
intellectual property expert processes

▪ TWB (Toulouse White Biotech): Chairman • CHEMOURS: Global Director of the • CITEGESTION (EDF): CEO of a digital start-up ▪ INSA Institut National des Sciences
Fluorotelomers business, EMEA Director, specialized in asset management and Appliquées, Toulouse : Professor and Head of
▪ METABOLIC EXPLORER: VP Strategy &
Sourcing, Logistics & Real Estate software development for Smart Cities a research group
Innovation (Member of the Executive
Committee) • DU PONT DE NEMOURS: Global Product • EDF: Investor & Markets Director (Head of IR) ▪ AERES Agence d’Evaluation de la Recherche
Manager, Business and Market Manager, et de l’Enseignement Supérieur and ANR
▪ ROQUETTE: Director, Business Intelligence, • MORGAN STANLEY: Utilities & Clean Energy
Sales Director Agence Nationale de la Recherche: Evaluator
Director BU Fermentation and Industrial Specialist Equity Sales
(France’s National Education Research
Chemistry, Director, Intellectual Property and • ATOFINA: Global Business Manager • BERENBERG: Utilities & Clean Energy Agencies)
Regulatory Affairs Fluorotelomers Specialist
▪ PhD in Biology, Biochemical Engineer,
▪ Chemical Engineer, Lyon University, European • ELF ATOCHEM: Various positions in Finance • Printing & Packaging Engineer (Ecole University of Toulouse
Trademark Expert, CEIPI Center for • MS in Business Management, HEC Paris, BA Polytechnique Grenoble), MBA from Duke
International IP Study, Strasbourg Economics Paris University. University (Fuqua Business School).
8 8
MARKET DRIVERS
AND POTENTIAL

9
THE SITUATION –
missing capacities

PET recycling capacity and

demand from brand-owners
3 (million metric tons)
The polyester industry is facing a
major change.

2
Capacity shortage Only new recycling technologies
will enable PET producers to even
partially meet the demand of their
customers and States to meet their
1 regulatory targets*.
PET depolymerization

Mechanical recycling
0 *50% of EU plastic waste collected used to be sent
to China for recycling.
2019 2025e 2030e
Source: BloombergNEF – Q1 2020

10
 THE SITUATION – A
growing regulatory Regulatory pressure is also growing at both the EU and
pressure national levels.

July 2018 March 2019

Circular Economy Package Single-Use Plastics Directive
New plastic packaging • 90% collection rate target for plastic drink bottles by 2029
recycling target: 50% by • A mandatory minimum target of 30% recycled content in new plastic
May 2015 Dec. 2015 Jan. 2018 2025 and 55% by 2030 bottles by 2030
EU Directive for EU Action Plan for a EU Strategy for Plastic
Plastic Bags Circular Economy

2020 2022
Ban on single-use plastic
straws, plates, cutlery and
Forecast
July 2018 Tax on plastic packaging
July 2016 July 2017 March – April 2019 disposable cups
that does not include at
• Royal Decree on
Germany‘s voluntary France commits to 100% 2018 Ban sales of some least 30% recycled
plastic bag
agreement regarding recycled plastic by 2025 • Deposit scheme single-use plastics 2020 content
• 50% of recycled
reduction of plastic bags confirmed in from 2020 German Single Use Plastic
plastic in carrier bags
England & Law
Scotland 2022
• UK Plastics Pact 2020 Forecast
Expected introduction of a One extended collecting
new EPR scheme and rule on the territory (all
implementation of the SUP plastics packaging)
directive

Many European initiatives and associations such as the European Plastics Pact and the Circular Plastic Alliance, bring together several
actors from the industry, academics, and public authorities, to accelerate the transition towards Circular Economy. This is made
possible by considering the whole plastic value chain, and notably by aiming at boosting the recycled plastic EU market.
11
STRONG DRIVERS FOR
MORE SUSTAINABLE July 2020: “by 2025, 100% of our
SOLUTIONS plastic packaging will be refillable,
reusable, recyclable or Oct. 2016: “design 100%
of its packaging to be
compostable”
recyclable, compostable
or biodegradable by 2025”

Jul. 2017: “100% of packaging

recyclable, reusable or compostable
by 2025” and “Recycled plastic content
to at least 25% by 2025”

Jan. 2019: “Nestlé

Waters will increase the
recycled PET content in
its bottles to 35% by
2025”

Sept 2019: “Our ambition? Offer

100% sustainable plastic bottles Mar. 2019: H&M Group signatory
made from recycled or bio-sourced of the New Plastics Economy
materials for our entire beverage Global Commitment. “Our
portfolio.” business to become 100% circular
and renewable”

12 12
 CARBIOS
BIOTECHNOLOGIES
AT THE LEAD OF
THIS TRANSITION

13
ENZYMES TO FULLY
BREAKDOWN PLASTICS!

100% COMPOSTABLE

INFINITE RECYCLING

Polymers Carbios enzymes Monomers

(plastics and fibers) (building blocks)

A REVOLUTIONARY PROCESS FOR INFINITE RECYCLING AND BIODEGRADATION OF PLASTICS AND FIBERS

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 WORLD’S FIRST ENZYMATIC
TECHNOLOGY TO RECYCLE AND
REUSE PET-BASED PLASTICS & FIBERS

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HOW DOES IT WORK?

Flakes Start & end of Purification PTA MEG Pelleting

depolymerization

16 16
BENEFITS OF THE
TECHNOLOGY

100% yield recycling

A process that can handle all forms of PET plastics (clear, colored, opaque,
multi-layer…) and polyester fibers

No inhibition of the enzyme by colorants, pigments, carbon black or other

polymers (PE, PA, PVC…)

Depolymerization at low temperature, atmospheric pressure, water based

CARBIOS’ INNOVATION OFFERS THE POTENTIAL TO RECYCLE PET PLASTICS INFINITELY

AND CONTRIBUTES TO ACHIEVING 100% RECYCLED PET CONTENT IN NEW PRODUCTS

17 17
PET BRAND OWNERS
CONSORTIUM
AGREEMENT

A 4-year agreement signed in April 2019

Accelerate the technology’s readiness and bring it to full industrial scale

Increase the availability of high-quality recycled plastics

Demonstrate the technical, economic and environmental efficiency of Carbios’ technology

Support the structuring of an industrial value chain for an efficient supply of consumer-grade PET

GLOBAL KEY PLAYERS TEAM UP TO BOOST RECYCLABILITY OF PET PLASTIC PRODUCTS

18 18
PET RECYCLING:
OUR BUSINESS MODEL

1. ENZYME
PRODUCERS

2.
Toll-manufacturing
enzymes

3. PRODUCERS OF PET
OR PTA1
Licensing & selling
of enzymes
4. BRAND
Carbios OWNERS
recycled PET

Market demand guaranteed for the first licenses

through our brand owners Consortium, and beyond…

Two revenue streams for Carbios: License deals and selling of enzymes

(1) Carbios’ enzymes degrade PET in its two monomers, PTA and MEG 19 19
CARBIOS’ NEXT STEPS

20 20
 H2-2020: commercial launch of
EVANESTO®, the world’s first enzymatic
biodegradation technology

21
(52,7%) (18%) (29,3%)
CARBIOLICE PRODUCTION UNIT
ZERO IMPACT PLAstic
Market launch in H2-2020

22 22
QHOW DOES IT WORK?
Step by step

23 23
DEVELOPMENTS &
OUTLOOK

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2019- 2020 HIGHLIGHTS

SCIENTIFIC MILESTONES:

World-first with the production of PET-bottles made from 100% recycled plastic waste (February 2019)

Publication of an article co-signed by Carbios and TBI in the prestigious scientific journal Nature (April 2020)

CORPORATE:

Carbios and TWB receive €7.5 million funding from the General Secretariat for Investments (January 2019)

JDA with Novozymes for the production PLA-degrading enzymes (January 2019)

Strategic partnership with L’Oréal, Nestlé Waters, PepsiCo and Suntory Food & Beverage Europe (April 2019)

Successful €14.5 million capital increase (June 2019)

JDA with Novozymes for the production of PET-degrading enzymes (January 2020)

Launch of a cooperative lab with the Toulouse Biotechnology Institute (January 2020)

Carbios launches the construction of its demonstration plant for depolymerization of waste PET plastics to monomers (June 2020)

Successful Private Placement for a total amount of €27 million, concurrently with a €10 million Secondary Offering
25 25
WHAT WE PLAN TO
DELIVER NEXT!

More strategic partnerships

H2-2020: Commercial launch of Evanesto® and first product revenues

H2-2021: PET recycling demonstration plant – Launch of the first phase of the system operations

H1-2022: Process Design Package (PDP) ready

H2-2022: First licensing deal cut for Carbios PET recycling technology

26 26
APPENDIX

27
INTELLECTUAL
PROPERTY
WORLDWIDE EXCLUSIVE
EXPLOITATION RIGHTS
On all results of R&D
collaborations
34 patent families (including an exclusive worldwide license)
with worldwide patent pending applications A UNIQUE KNOW-HOW
In the development of bioprocesses
combining enzymes & polymers

A STRONG INTELLECTUAL
PROPERTY
Protecting the applicative use of
enzymes, processes and products

Patents granted in:

Europe, United-States, Canada, Mexico, China, Japan…
28 28
SHARE & SHAREHOLDERS 6,05%
4,55% 0,14%

July 24th, 2020*

7,96%

* : Shareholder structure after the Offering dated July 2020

(To the best knowledge of the Company)

8,26%
MARKET Euronext Growth Paris

MNEMO/REUTERS/BLOOMBERG ALCRB / ALCRB.PA / ALCRB:FP

SHARES ISIN CODE FR0011648716

NUMBER OF SHARES 7.982.172
ICB CLASSIFICATION Chemistry / Speciality chemistry 73,04%

Euronext Growth All-share, Euronext

INDICES Growth Bpifrance Innovation Index, Free Float
Enter Next PEA PME 150
Truffle Capital
FRENCH PEA-PME ELIGIBILITY Yes
HNWI
ANALYST COVERAGE Baptiste de Leudeville BOLD (L'Oréal)
Michelin Ventures
Xavier Regnard Management & Treasury shares

Guillaume Cuvillier

Graeme Moyse

29 29
CASH FLOW STATEMENT

Cash flow (in thousand euros) December 31, 2018 December 31, 2019

Cash at the opening 7,547 5,149

Net cash generated by operations (3,078) (3,036)

Net cash from investments (1,441) (2,406)

Net cash from financing operations 2,122 16,209

Change in cash (2,398) 10,766

CLOSING CASH 5,149 15,915

30 30
FULL-YEAR 2019
INCOME STATEMENT

(In thousand euros) December 31, 2018 December 31, 2019

Operating revenue 1,083 1,450

Operating expenses (5,323) (5,986)

Operating Income (4,240) (4,535)

Financial Income (25) (29)

Current Income before Tax (4,265) (4,564)

Extraordinary profit (loss) (37) 15

Income tax (Tax research credit) 1,191 800

NET INCOME (LOSS) (3,110) (3,749)

31 31
FULL-YEAR 2019
INCOME STATEMENT

Main operating revenues:

R&D services and activities invoiced to CARBIOLICE: €0.5 million

ADEME subsidies: €0.4 million generated by the CE-PET project

Operating expenses:
12% increase in operating expenses
compared to 2018 5,986
5,635
5,319 5,323
33% increase in personal costs: 4,899
+7 employees at FY2019 vs FY2018, and
4,016 4,028
end of eligibility to the “JEI” status
(allowing alleged and exempted social
contributions on R&D salaries) 2,675

Research Tax Credit:

€0.4 million less compared to 2018, due
to lower external R&D expenses
combined to grants impact 2011-2012 2013 2014 2015 2016 2017 2018 2019

32 32
SIMPLIFIED
BALANCE SHEET

Assets Liabilities & Equity

December 31, 2018 December 31, 2019 December 31, 2018 December 31, 2019
(in thousand euros) (in thousand euros)

Intangible assets 691 858 Shareholder’s equity 12,038 22,005

Tangible assets 971 2,267 Conditional advances 3,707 4,250

Assets in progress 0 148 Loans 1,866 3,818

Financial assets 10,802 12,027 Trade payables and related accounts 1,061 1,387

Fixed Assets 12,464 15,300 Other liabilities 477 750

Inventory 15 21 Prepaid income 0 176

Receivables 1,478 1,065 Payables 3,404 6,131

Cash and marketable securities 5,149 15,915 TOTAL LIABILITIES & EQUITY 19,149 32,386

Pre-paid expenses 38 75

Current Assets 6,680 17,076

Deferred financing costs 6 11

TOTAL ASSETS 19,149 32,386

33 33
AN OPERATIONAL
BOARD OF DIRECTORS

IAN TRUFFLE CAPITAL, JEAN JACQUELINE

HUDSON REPRESENTED BY FALGOUX LECOURTIER
DR. PHILIPPE
Chairman POULETTY

▪ Ex President EMEA DuPont ▪ Co-Founder & Executive Director of ▪ Ex Corp. Officer Ajinomoto Inc. ▪ Ex General Director ANR (National
▪ Ex Board member Europabio Truffle Capital ▪ Ex VP Ajinomoto Europe Research Agency)
▪ Ex Scientific Director IFP (A Public
▪ Ex Senior VP Hoechst Roussel
Research Innovation Organization)

PASCAL JACQUES GODEFROY ALAIN

JUERY BREUIL MOTTE CHEVALLIER

▪ President & CEO of Agfa-Gevaert ▪ Ex General Secretary of the ▪ Ex member of the Executive ▪ Partner Life Sciences, Truffle Capital
▪ Member of the Executive Committee Barbier Group Committee of Eastman Chemical ▪ Ex CFO Sanofi-Aventis France
of Solvay ▪ Former Chairman of Eastman
Chemical Global holdings

34 34
OUR KEY PARTNERS

35 35
OUR CONTRIBUTION
TO THE UN SDGs

36 36
 “Designing
the new
plastic
economy”
Carbios SA - Biopôle Clermont-Limagne -
3 rue Emile Duclaux – 63360 St-Beauzire, France. N° SIRET: 53153022800042
1
Tel: +33 (0)4 73 86 51 76 Email: [email protected] Crédit photos :
Unsplash.com