MYECO GROUP LTD — AGM Information 2015

Nov 16, 2015

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Annual General Meeting 17 November 2015

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 forward-looking 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

• 2015 Highlights and Key Developments

• Financial Results Overview

• SECOS Group Merger

• Films & Packaging - Market Review

• Waste Management Solutions - Market Review

• Key Announcements

• Growth Opportunities

• Investment Summary

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SECOS Group Ltd Summary

Board of Directors

Capital Structure

Richard Tegoni Chairman Stephen Walters Group Managing Director Frank Glatz CEO – Cardia Bioplastics Trevor Haines Chief Financial Officer Share Price Performance	Australian Securities Exchange (ASX: code) SES Shares on issue (ASX) 124.2mil Share price (range during October - November) 0.15 – 0.21 cents Market capitalisation (range during October - November) $18.01 - $26.09 - m Top 20 shareholders 61.34% Total number of shareholders (as at 13November 2015) 1428

SECOS Group Overview

• ASX-listed company (ASX: SES) formed through merger of Cardia Bioplastics and Stellar Films.

• Leading developer & manufacturer of sustainable packaging with core market segments being “Films & Packaging” and “Waste Management Solutions”.

• High quality cast films, bioplastic resins & finished products derived from renewable resources for the global packaging industry.

• Head Office in Melbourne, Australia.

• Manufacturing plants in Melbourne (Australia), Kuala Lumpur (Malaysia) and Nanjing (China).

• Sales & operational offices in Australia, Malaysia, China and USA.

• Established global distributor network across the Americas, Europe, Asia, Middle East and Africa.

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Resin Production Finished Goods Sales Offices Distributors
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Financial Results Overview

Shareholders should consider the annual report in the context that the SECOS Group has changed significantly under the merger of Cardia & Stellar.

ANNUAL REPORT	FY2014	FY2015
Sales Revenue	$21,441,764	$17,284,394	• Impact of winding down SFA • Loss of key customer due to price
Gross Profit	$719,247	$318,770	• Reduced sales revenue & sales mix • StrongAUD$ & high resin costs
EBIT from operating business	(1,146,947)	($2,204,896)	• SFA impacted by wind down costs • Includes Cardia post merger loss (2 mths)
NPAT	(2,227,481)	($4,279,803)
Abnormals	(803,893)	(1,753,721)	• Merger transaction costs • Impairment of Akronn investment

6

Early Success

• Q1 is the 1[st] full quarter of trading since the merger

• 13% increase in sales in Q1-2016 from Q4-2015

• Margins have significantly improved in Q1:

• improved manufacturing efficiencies due to the synergies of the merger

• favorable exchange rate and FX management

• Minimal abnormal costs due to completion of merger

• Improve supplier terms and relationships

• Acquired 6 new key customers

• Results expected to continue to improve over Q2-Q4 2016

SECOS Group Merger Benefits

• Strategic fit of Cardia Bioplastics and Stellar Films businesses

• Scale and geographic footprint of combined operations

• Market access and reach in absorbent hygiene products market - $72 billion industry growing 5.5% per annum

• Production and operational savings

• High quality management teams

• Comprehensive and differentiated range of hygiene films and packaging in standard, Biohybrid™and compostable formats

• Scale and resources to deliver growth strategy in our Films & Packaging and Waste Management Solutions’ target markets

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SECOS Group Global Customers

SECOS Group delivered sales or is in commercialisation developments with the following leading global brands:

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SECOS Group Packaging Products

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SECOS Group Product Offering

• High quality cast films for personal care, hygiene, pet care and medical product applications.

• Embossed barrier, laminated, multi-layer, printed or

• general packaging films.

• Certified biodegradable & compostable

• Made with less oil

• Contain GMO free, renewable, plant based material

• Can be composted in aerobic composting plants

• Turned into compost, condition soil for improved plant growth, independently verified

• Made with less oil & heavy metal free

• Contain GMO free, renewable, plant based material

• Reduces global warming by sequestering CO2

• Lower carbon foot print verified by independent Life Cycle Assessment

• Cost effective alternative to fossil fuel derived films

Patents & International Accreditation

SECOS Group has developed and retains a strong Intellectual Property portfolio:

• 11 Patent families for bioplastic resins & packaging products. 28 patents so far granted in key markets.

• Patents protect composition formulation, manufacturing process and applications for global packaging products invented by The Group’s R&D team.

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.

• Nanjing plant certified to China Environmental Standard.

• The Group’s Malaysian business awarded BioNexus Status.

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SECOS Group Manufacturing Plants

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Resin production in Nanjing (China)

Film production in Nanjing (China)

Film production in Kuala Lumpur (Malaysia)

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Bag production in Nanjing (China)

Film coating in Kuala Lumpur (Malaysia)

Film production in Melbourne (Australia)

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Manufacturing Plants & Volume Capabilities

SECOS Group has developed proprietary manufacturing processes for its bioplastic resins, cast films and finished products with:

• Manufacturing plants located in Melbourne (Australia), Kuala Lumpur (Malaysia) and Nanjing (China).

• Production of high quality cast films, bioplastic resins & finished products derived from renewable resources.

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• Annual production capacity of c. 7,200 tonnes of bioplastics resins and c. 17,000 tonnes of film and finished products with cost effective capacity expansion options.

• A fully integrated product supply from bioplastic resin to certified compostable and Biohybrid™ films and bags that ensures product quality and cost competiveness.

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• Quality systems ISO9001 certified.

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Absorbent hygiene products market

• Absorbent hygiene products: baby diapers, feminine hygiene products and adult incontinence products

• $72 billion industry growing 5.5% a year.

• Growth across both developed & developing markets.

• Driven by demographics & economic development.

• Consumers demand more environmentally friendly, non-toxic hygiene products

• Tailwinds

• Births across Asia are rising

• Population of women expected to rise

• Aging population is growing

• Disposable income is increasing with middle class

• Headwinds

• Future growth requires environmental sustainability

• Transform our supply chain with renewable materials

• Eliminate manufacturing and operating waste

• Create industry-led solutions to post-consumer solid waste created by our products

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SECOS Films & Packaging Products

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Films & Packaging Market Update

• SECOS is well positioned to benefit from the trend towards sustainable packaging, offering customers a broad range of high quality Stellar cast films with the choice of sustainable Cardia Biohybrid™or compostable resin technology for their packaging or plastic product solutions.

• Stellar Films Australia secured sales worth approximately $400,000 per month representing annualised sales revenue of $4,800,000 per annum since the reopening of its Australian plant in April 2015.

• Stellar Films Malaysia’s delivered solid sales with strong customer demand expected to continue both from existing and new customers.

• SECOS successfully scaled up production of its Biohybrid™films tailored for the global personal care and hygiene product markets at its Stellar Films Australian plant.

• Stellar Films Malaysia implemented a Kaizen 5S workplace organization programme to more closely align itself with requirements of its Japanese customers ‘Just in Time’ manufacturing and supply chain.

• Sealed Air, the leading global protective packaging manufacturer, increased its purchases of Cardia Compostable film to meet customer demand of its new PakNatural[®] Biodegradable Cushion Bags.

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Bioplastics Industry

• Bioplastics: bio-based and/or biodegradable plastics

• Increased “package goods” consumption due to continued economic development and societal trends towards convenience.

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• Growth of middle classes & increased consumerism in developing countries.

• Uncertainty around oil (price and future availability) as a key input in traditional plastics.

• Increased Government regulation of environmental issues and waste management: legislation and taxes.

• Organic waste recycling being implemented around the world.

• Increased costs of landfills (globally).

• Increased consumer demand for sustainable products due to awareness of environmental issues.

• Global brand leaders are investing in the transition from traditional plastics to bioplastics - tracking consumer preference trends and preparing for global legislative changes.

• Sustainable and renewable Bioplastics packaging is estimated to be < 1% of the plastics packaging market (c.$200B p.a.) with exponential growth potential.

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Global Produc on Capacity of Bioplas cs
7000
6185
6000
5185
5000
4000
3000
2000
1395
1161
989 1000
1000 647 675 486 791 604
180 185 258 276 342
5 18
0
2006 2008 2010 2011 2012 2017 Forecast
Year
Compostable Bioplas cs Non Compostable Bioplas cs Total Capacity
1000 Metric Tons
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Source: European Bioplastics/ IfBB Industry Report 2013

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SECOS Waste Management Solutions

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Waste Management Market Update

• SECOS is developing the sustainable waste management products market with a particular emphasis on organic waste recycling through its Cardia Bioplastics business.

• Cardia Bioplastics has secured a leading market position in the supply of organic waste management systems to the Australian Council sector.

• Cardia kitchen tidy bins and Cardia Compostable bags are the industry benchmark for the delivery of an efficient kitchen organics waste diversion programme.

• Already 100,000 households representing 5% of households in the State of Victoria are using Cardia Compostable kitchen tidy bins and bags with further growth expected in Victoria, Australia and internationally.

• Cardia Bioplastics commenced supply of Biohybrid™dog waste bags to a leading global retailer.

• Cardia Bioplastics successfully set up integrated product supply from bioplastic resin to certified compostable and Biohybrid™films and waste management bags that ensures product quality and cost competiveness.

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Market Communications

• 27[th] October: Large scale Council led organics recycling programmes are closing the loop by improving soil quality

• 17[th] September: Cardia secures European patent protection for its bioplastics technology

• 10[th] September: Kenyan manufacturer places initial orders with Stellar Films for expanding personal care and hygiene market

• 2[nd] September: SECOS Group successfully scales up production of Biohybrid™films for global hygiene market

• 25[th] August: Cardia Bioplastics expands sales channels with launch of Cardia Bioproducts e-commerce website

• 11[th] August: Expanding uptake of Cardia Compostable waste management products by Australian Councils for their organic waste diversion programs

• 17[th] June: Cardia Bioplastics Launches New Cardia Bioproducts Bag Range

• 22[nd] December: Cardia Bioplastics signs two year supply contract with Cleanaway

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Market Communications

• 19[th] December: $150,000 orders of Cardia Bioplastics dog bags received from US and European Retailers

• 17[th] December: Cardia Bioplastics in talks to appoint BioShoppe as distributor

• 17[th] December: Leading German Consumer Goods Company choses Cardia Biohybrid™technology

• 17[th] December: Cardia secures expanded patent protection for its bioplastics technology

• 25[th] November: Cardia Bioplastics announces proposed merger with Stellar Films Group

• 9[th] September: Stellar Films launches sustainable personal care films made from Cardia Biohybrid™ technology

• 9[th] September: Cardia Bioplastics wins $350,000 waste management products supply contract in Nanjing, China

• 26[th] August: Sealed Air uses Cardia Compostable films for new PakNatural® Biodegradable Cushion Bags

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Growth Opportunities

Films & Packaging Market

• Further strengthen Stellar Films hygiene film supply position through commercialisation of sustainable Cardia Biohybrid™or compostable films offering.

• Deliver Stellar Films business growth through differentiated offering to its existing and new customers at competitive pricing eg; diaper outer packaging bags.

• Increase sales of Cardia Bioplastics protective and food packaging business as companies globally look for sustainable packaging solutions.

• Expand Stellar Films hygiene film sales into China & Cardia products in to Malaysia through utilisation of local sales resources.

Waste Management Solutions

• Grow Cardia Bioplastics compostable bag supply to Australian and international government sector as Councils expand their organics recycling and diversion programmes.

• Expand Cardia Bioplastics business of Compostable and Biohybrid™dog waste bags to global retail market.

• Expand dog waste bag sales throughout Asia & North America

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Summary

• Only ASX-listed stock focused on sustainable packaging.

• Market access and reach in absorbent hygiene products market - $72 billion industry growing 5.5% per annum, and emerging, high growth Bioplastics industry.

• Highly focused management team with internationally recognised industry experts in sustainable packaging.

• Strong IP and patent position on technology and comprehensive range of high performance sustainable packaging products.

• Sales to high profile brand owners, retailers, packaging companies and Councils.

• Joint development with leading consumer goods and global packaging companies.

• Established global operations and distributor network.

• Cost-effective manufacturing in Nanjing, Kuala Lumpur and Melbourne, with low cost expansion options.

• SECOS Group is well-positioned to expand sales and marketing with unique environmentally friendly products that meet the global trend to more sustainable products.

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