MYECO GROUP LTD — AGM Information 2012

Nov 28, 2012

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ASX CODE: CNN OTCQX CODE: CDRBY

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 29[th] November 2012

AGM PRESENTATION

Attached is the document to be presented in the Annual General Meeting today.

Rekha Bhambhani Company Secretary

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Annual General Meeting Presentation

29 November 2012

July 2012

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 forwardlooking 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."

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Agenda

1. 2012 Highlights and Key Developments

2. Financial Results Overview

3. Bioplastics Industry and Outlook 4. Cardia Business and Opportunity

4. Investment Summary

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Cardia Bioplastics Summary

Developer & manufacturer of sustainable resins and products for the global plastics & packaging industries

Board of Directors

Capital Structure

Pat Volpe Non-executive Chairman Frank Glatz Managing Director John Scheirs Non-Executive Director Chen Yi Non-Executive Director, General Manager China

Share Price Performance

Australian Securities Exchange (ASX: code)	CNN
OTC-QX (U.S.A) (Over The Counter)	CDRBY
Shares on issue (ASX)	1,567.06m
Share price (as at 27 November 2012)	0.2 cents
Market capitalisation	$3.1m
Listed options on issue (ASX: CNNOB) Exercisable at 1.5c any time to 30 June 2015	221.3m
Unlisted options on issue Exercisable at 2 cents any time to 30 June 2013	0.11m
Rolling monthly turnover	60m
Top 20 shareholders	38.6%
Total number of shareholders (as at 27 November 2012)	2,775

2012 Highlights – Momentum Building

• Sales revenues of $4.3 million – an increase of 161% on FY2011.

• Strategic product development relationships with global brand owners and packaging companies starting to convert to sales contracts.

• These sales contracts are typically long term providing robust, recurring and more predictable earning stream.

• Increase of Chinese manufacturing capacity – primed for growth.

• Expansion of global reach through network of own business resources and distributors.

• Initial cost reduction program delivered in June 2012.

Significant progress in technical development, sales and commercialisation

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Sales Contracts with Market Leaders Key Developments:

Exclusive contract with Sealed Air Corporation

Sealed Air is US packaging leader with revenues of $8.1B and committed to purchase a minimum of $500,000 p.a. worth of Cardia products to maintain exclusivity for Fill-Air R5[®] inflatable packaging.

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$500,000 p.a. contract – American hygiene products company

Customer has significantly increased off-take of Cardia products across its first hygiene product line and exceeded annual target after six months

$500,000 p.a. contract – global consumer products company

Exposure to extensive retail channel – long-term growth potential

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Key Developments: Partnerships and Product Launches

Polyden Folien ECOCARE™

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Invicta Plastics

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World’s first Bio-container for nutritional supplement and cosmetics market

Alto Packaging

Cardia Bioplastics compostable Bubble Wrap

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In-market validation Key Developments:

Global consumer goods leader

Validates Cardia product and market potential Critical step towards global commercialisation Significant growth potential.

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City of Nanjing

Biohybrid™kitchen waste bags. Significant growth potential.

Cities of Shanghai Pudong, Hangzhou, Yuhang Biohybrid™kitchen waste bags. Significant growth potential.

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Key Developments: Advances in patented technology

Recyclable Cardia Biohybrid™food packaging resins compliant with both US FDA standards & EU regulations Expands market opportunity into food packaging applications

Cardia Bioplastics receives Halal certification Opens up supply to 1.6 billion-strong Muslim community

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Financial Results Overview

	FY2011	FY2012	Commentary
Sales Revenue	$1,649,171	$4,301,143	161% growth, shift to long-term sales contracts, strongmomentum.
Gross Profit	$124,645	$560,660	Gross profit margin increased to 13%. Further uplift expected with increasing sales from higher margin, long-term contracts.
EBIT from operating business	($4,094,808)	($3,909,406)	Cost reduction program implemented (June 2012), reduced annual burn rate from around $4.2m to $3 million.
NPAT	($3,323,324)	($4,659,660)	Impacted by revaluing of equity investments in Bioglobal Ltd & P-Fuel Ltd

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Bioplastics Industry and Outlook

• Global plastics packaging market worth $200B in 2011 and continuing to grow

• Market demand for Bioplastics is growing strongly – large potential

Growth driven by:

• Concerns about oil as finite resource with volatile pricing

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• Growing concerns about carbon footprint and green house gas emissions

• Government legislation and taxes

• Major consumer goods companies, global brands, retailers and consumers looking for sustainable solutions

Source: European Bioplastics Industry Report 2010

Well positioned to capitalise on the increasing trend towards sustainable & ‘green’ packaging

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Cardia’s Business Development Cycle

• Entered global commercialisation phase with global brand owners, securing commercial supply contracts.

• Target leading FMCG companies for specific product applications which are trialled in specific markets.

• Ramp up in sales volumes driven by move to global market roll-out .

• Various packaging products nearing full global commercialisation – will underpin future business growth.

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Targeted Full Revenue
Development Market Trials Commercialisation
Commercialisation
Cardia Product Portfolio
$
1-4 years
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Partnering with Leading Brand Owners

Cardia is now in global commercialisation phase and has executed sales with some of the world’s best known and most reputable businesses

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Global Majors Validate our Products

Proven production processes with leading multinational packaging manufacturers

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Patents & International Accreditation

Cardia has developed and retains a strong IP portfolio:

100 patents submitted and/or registered for Bioplastic resins & packaging products

International Accreditation

• Accredited globally, in all countries with certification schemes – including the USA, EU,

• China, Australia, South America, Japan & Asia

• Food contact approval in Europe and USA

• Halal Certification

• Cardia Bioplastics China business certified to China Environmental Standard

• Cardia Bioplastics Malaysia business awarded BioNexus Status

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Cardia’s Global Activities

Applications	Australia NZ	China	USA/Can ada	Brazil	Europe	Malaysia
Carrier Bags	✔	✔✔✔	✔✔	✔✔✔	✔	✔✔
Packaging	✔✔✔	✔	✔✔✔	✔✔	✔✔✔	✔✔
Waste management products	✔✔✔	✔✔✔	✔✔✔	✔✔✔	✔	✔✔✔

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Investment summary

• Only ASX-listed stock focused on Bioplastics.

• Strong IP and patent position on technology and high performance products.

• Strategic product development relationships with global brand owners and packaging companies starting to convert to sales contracts.

• These sales contracts are typically long term providing robust, recurring and more predictable earning stream.

• Global sales of Cardia waste management products to Councils for organic waste diversion.

• Low-cost to upscale capacity & quick pay back on capital equipment investment.

• Rapidly growing global industry with supportive regulatory environments / Government bodies.

• Highly focused management team with internationally recognised industry experts.

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