MYECO GROUP LTD — Investor Presentation 2014

Mar 31, 2014

FOR IMMEDIATE RELEASE

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 1 April 2014

Cardia Bioplastics Investor Presentation

Please find attached the Cardia Bioplastics Investor Presentation “A global supplier of bioplastic resins and finished products”.

This presentation is currently being presented to a number of sophisticated investors and stock brokers that have expressed interest to participate in Cardia Bioplastics’ current fund raising.

The Cardia Bioplastics Rights Issues is due to close this Friday 4th April 2014. The Directors will not be seeking an extension beyond this date therefore all applications must be received by 5.00pm (AEDT) on 4[th] April 2014.

Richard Tegoni Chairman Cardia Bioplastics Limited

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A global supplier of bioplastic resins and finished products Investor Presentation April 2014

July 2012

Disclaimer

Forward

looking
statements
disclaimer

"This
presenta6on
contains
“forward-­‐looking
statements.”
Such
forward-­‐looking
statements
may
include,
without
limita6on:

• (i) es6mates
  of
  future
  earnings;

• (ii) es6mates
  of
  future
  produc6on
  and
  sales;

• (ii) es6mates
  of
  future
  cash
  costs;

• (iv) es6mates
  of
  future
  cash
  flows;

• (v) statements
  regarding
  future
  debt
  repayments;
  and (vi) es6mates
  of
  future
  capital
  expenditures.

Where
the
Company
expresses
or
implies
an
expecta6on
or
belief
as
to
future
events
or
results,
such
expecta6on
or
belief
is
expressed
in good
faith
and
believed
to
have
a
reasonable
basis.
However,
forward
looking
statements
are
subject
to
risks,
uncertain6es
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
produc6on
costs,
as
well
as
poli6cal
and
opera6onal
risks
in
the
countries and
states
in
which
we
operate
or
sell
product
to,
and
governmental
regula6on
and
judicial
outcomes.

The
Company
does
not
undertake
any
obliga6on
to
release
publicly
any
revisions
to
any
“forward-­‐looking
statement”
to
reflect
events
or circumstances
aMer
the
date
of
this
presenta6on,
or
to
reflect
the
occurrence
of
unan6cipated
events,
except
as
may
be
required
under applicable
securi6es
laws.

All
financial
amounts
are
expressed
in
Australian
dollars
unless
otherwise
indicated."

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2

Cardia Bioplastics Summary

Developer
and
manufacturer
of
bioplas4c
resins
and
finished
products
derived
from renewable
resources
for
the
global
packaging
and
plas4c
products
industries

Board of Directors

Capital Structure

Richard Tegoni Non-executive Chairman Frank Glatz Managing Director Steven Bendel Non-Executive Director Gideon Meltzer Non-Executive Director

Share Price Performance

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Capital Structure
Australian Securities Exchange (ASX: code)	CNN
Shares on issue (ASX)	2,814.43m
Share price (average traded over last 90 days)	0.3 cents
Market capitalisation	$8.44m
Listed options on issue (ASX: CNNOB) Exercisable at 1.5c any time to 30 June 2015	221.3m
Unlisted options on issue
Exercisable at 0.35 cents any time to 15/07/2014	100m
Exercisable at 0.6 cents any time to 31/12/2014	39.44m
Rolling monthly turnover	70m
Top 20 shareholders	45.31 %
Total number of shareholders (as at 28 March 2014)	2,762

Executive Summary

**Cardia

is
a
developer
and
manufacturer
of
bioplas4c
resins
and
finished
products
derived
from
renewable
resources for
the
global
packaging
and
plas4c
products
industries**

• Ø Derived
  from
  renewable
  sources,
  Cardia’s
  proprietary
  Compostable
  and
  Biohybrid™
  resins
  reduce
  the
  carbon
  footprint
  of
  plas6c products
  and
  packaging
  by
  up
  to
  50%
  and
  offer
  comparable
  performance.
  Cardia’s
  products
  are
  accepted
  as
  cost
  effec6ve
  alterna6ves to
  petrochemical
  based
  plas6cs.

• Ø The
  Bioplas6cs
  industry
  is
  experiencing
  growth
  in
  excess
  of
  20%
  p.a.
  Growth
  is
  being
  driven
  by
  a
  combina6on
  of
  governments,
  brand owners
  and
  consumers
  seeking
  a
  lower
  carbon
  footprint,
  improved
  waste
  management
  solu6ons
  and
  increased
  use
  of
  renewable
  raw materials.

• Ø Cardia’s
  sustainable
  resin
  products
  have
  been
  specifically
  developed
  for
  a
  broad
  range
  of
  industrial
  and
  consumer
  packaging applica6ons,
  including
  flexible
  film,
  bag,
  injec6on
  moulding,
  blow
  moulding,
  foam,
  and
  extrusion
  applica6ons.

• Ø Cardia’s
  target
  markets
  are
  Carrier
  Bags,
  Films
  &
  Packaging
  and
  Waste
  Management
  Products.
  Cardia
  offers
  customers
  the
  choice
  of either
  Compostable
  or
  Biohybrid™
  resins
  for
  their
  own
  produc6on
  or
  finished
  Bioproducts
  like
  films
  and
  bags
  for
  their
  direct
  use.

• Ø Cardia
  has
  developed
  commercial
  rela6onships
  with
  leading
  global
  packaging
  manufacturers
  that
  have
  successfully
  adapted
  Cardia’s Compostable
  and
  Biohybrid™
  resins
  for
  commercial
  packaging
  applica6ons.

• Ø AMer
  5
  years
  of
  product
  development
  work,
  Cardia
  has
  in
  place
  partnerships
  for
  sustainable
  packaging
  and
  achieved
  commercial
  sales to
  the
  following
  leading
  global
  FMCG
  companies
  and
  Councils:

• Ø Sealed
  Air,
  Procter
  &
  Gamble,
  Kimberly-­‐Clark,
  Nestlé,
  Colgate-­‐Palmolive,
  Henkel,
  Breville,
  McDonalds,
  Toyota,
  Jusco, Johnson
  &
  Johnson,
  7-­‐Eleven
  and
  KFC.
  Shanghai-­‐Pudong,
  Nanjing,
  Brisbane
  and
  Hangzhou
  Councils.

• Ø Cardia
  is
  well
  posi6oned
  for
  growth
  in
  its
  target
  markets
  as
  its
  key
  customers
  are
  now
  in
  market
  and
  have started
  expanding
  the
  use
  of
  Cardia
  products
  across
  their
  product
  ranges.
  New
  customers
  are
  expected
  to adopt
  Cardia’s
  bioplas6c
  packaging
  and
  follow
  the
  trend
  towards
  more
  sustainable
  packaging.
  More
  and more
  Councils
  around
  the
  world
  are
  expected
  to
  adopt
  organic
  waste
  diversion
  prac6ces.

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4

Key Investment Highlights

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Own IP
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Cost competitive
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• Cardia
  owns
  a
  strong
  intellectual
  property
  por_olio
  of
  11
  patent
  families
  with
  12
  patents
  so
  far
  granted
  in
  key
  markets.
  Patents protect
  composi6on
  formula6on,
  manufacturing
  process
  and
  applica6ons
  for
  global
  packaging
  products
  invented
  by
  Cardia’s R&D
  team.

• Cardia’s
bioplas6c
products
are
accepted
as
cost
effec6ve
alterna6ves
to
petrochemical
based
plas6cs.

• Cardia
has
successfully
developed
and
commercialised
a
range
of
Biohybrid™
and
Compostable
product
applica6ons
in
its
target . market
segments
of
carrier
bags,
packaging,
waste
management
products Target markets

• Nestlé Cardia
has
leading
global
brand
customers
including:
Sealed
Air,
Procter
&
Gamble,
Kimberly-­‐Clark, ,
Colgate-­‐Palmolive, Henkel,
Breville,
McDonalds,
Toyota,
Jusco,
Johnson
&
Johnson,
7-­‐Eleven
and
KFC.
Cardia
has
Councils
customers
including: Global Customer . Relationships Shanghai-­‐Pudong,
Nanjing,
Brisbane
and
Hangzhou

• Key
management
has
in-­‐depth
experience
in
the
global
packaging
industry
and
a
track
record
of
commercialising
bioplas6c Management technology
with
global
brand
owners,
leading
packaging
manufacturers
and
Councils. Capabilities

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Market
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• The
market
demand
for
Bioplas6cs
is
growing
strongly.
Momentum
is
being
driven
by
governments,
leading
global
FMCG companies,
global
brands,
retailers
and
consumer
demand.

Page 5

Bioplastics Industry Overview

**The

market
opportunity
for
Bioplas4cs
is
being
driven
by:**

1. Increased
   “package
   goods”
   consump6on
   due
   to
   con6nued
   economic
   development
   and
   societal
   trends
   towards
   convenience.

2. Uncertainty
   around
   oil
   (price
   and
   future
   availability)
   as
   a
   key
   input
   in
   tradi6onal
   plas6cs.

3. Increased
   Government
   involvement
   in
   the
   regula6on
   of
   environmental
   issues
   and
   waste
   management:
   legisla6on
   and
   taxes.

4. Increased
   consumer
   awareness
   of
   environmental
   issues.
   Global
   brand
   leaders
   are
   inves6ng
   in
   the
   transi6on
   from
   tradi6onal
   plas6cs
   to bioplas6cs
   -­‐
   tracking
   consumer
   preference
   trends
   and
   preparing
   for
   global
   legisla6ve
   changes.

5. Ø Global
   plas6cs
   producers
   have
   recognised
   the
   trend
   and
   invested heavily
   in
   bio-­‐packaging
   solu6ons
   and
   capacity
   to
   meet
   the impending
   demand
   (refer
   -­‐
   capacity
   graph).

6. Ø Sustainable
   and
   renewable
   Bioplas6cs
   packaging
   is
   es6mated
   to be
   <
   1%
   of
   the
   plas6cs
   packaging
   market
   (c.$200B
   p.a.)
   with exponen6al
   growth
   poten6al.

7. Ø Cardia
   is
   well
   posi6oned
   to
   benefit
   from
   the
   trend
   towards sustainable
   packaging.
   Offering
   customers
   the
   choice
   of sustainable
   Biohybrid™
   or
   compostable
   resin
   technology
   for their
   packaging
   or
   plas6c
   product
   solu6ons.

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Global#Produc6on#Capacity#of#Bioplas6cs#
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

6

Bioplastics Industry – Global Regulation

Key
legisla4ve
ini4a4ves
will
ensure
Bioplas4cs
con4nue
to
gain
market
penetra4on
into
the
tradi4onal
plas4cs packaging
market.

• Ø The
  USA,
  Europe,
  La6n
  America,
  Australia,
  Japan,
  India,
  China,
  Middle-­‐Eastern
  governments
  have
  legislated
  or supported
  bans
  on
  conven6onal
  plas6c
  bags
  in
  an
  effort
  to
  reduce
  waste
  and
  their
  carbon
  foot
  print.
  A
  few examples
  are
  listed
  below:

• Ø 2007
  San
  Francisco
  –
  banned
  non-­‐compostable
  plas6c
  bags.

• Ø 2009
  South
  Australia,
  2011
  Northern
  Territory,
  2011
  ACT,
  2013
  Tasmania
  banned
  light
  disposable
  plas6c
  bags.

• Ø 2010
  Germany
  –
  ban
  on
  land
  filling
  solid
  waste
  with

  5%
  organic
  content.

• Ø 2010
  USA
  -­‐
  Federal
  Farm
  Bill
  Energy
  Title
  9
  –
  each
  federal
  agency
  must
  design
  a
  plan
  to
  purchase
  as
  many
  bio-­‐ based
  plas6cs
  as
  prac6cally
  possible.
  Federal
  procurement
  plans
  will
  be
  based
  on
  bio-­‐based
  content,
  price and
  performance.

• Ø 2013
  Italy
  –
  banned
  non-­‐compostable
  plas6c
  bags.

• Ø 2010
  Mexico
  –
  banned
  non-­‐biodegradable
  plas6c
  bags,
  charge
  consumers
  for
  bio-­‐bags.

• Ø 2011
  Chennai
  (India)
  -­‐
  banned
  non-­‐biodegradable
  plas6c
  bags.

• Ø 2013/Current
  Brazil
  –
  Minas
  Gerais
  and
  Goias
  States
  banned
  use
  of
  standard
  plas6c
  bags.

• Ø 2014
  European
  Parliament
  debates
  ban
  of
  standard
  plas6c
  bags
  across
  Europe.

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Source: www.bio-plastics.org

7

Company Overview

• Ø Founded
  in
  2002,
  Cardia
  is
  an
  ASX-­‐listed
  company
  (ASX:CNN).
  Market
  capitalisa6on A$8.44m.
  Cardia
  has
  63
  employees
  (China
  54
  -­‐
  rest
  of
  world
  9).

• Ø Cardia
  has
  developed
  and
  retains
  its
  own
  Intellectual
  Property
  of
  11
  patent families
  protec6ng
  formula6on,
  produc6on,
  processing
  &
  applica6on
  of
  its Bioplas6c
  resins
  &
  packaging
  products.

• Ø In
  2007
  Cardia
  established
  its
  manufacturing
  and
  product
  development
  facility
  in Nanjing,
  China.
  Annual
  produc6on
  capacity
  of
  c.
  7,200
  tonnes.

• Ø Commercial
  produc6on
  began
  in
  2008
  with
  the
  exclusive
  supply
  of
  bags
  and
  waste management
  products
  to
  the
  2008
  Beijing
  Olympics.

• Ø To
  date
  over
  A$20m
  has
  been
  invested
  by
  Cardia.

• Ø Corporate,
  opera6onal
  &
  applica6on
  development
  centre
  in
  Melbourne,
  Australia

• Ø Sales
  &
  opera6onal
  offices:
  Australia,
  China,
  USA,
  Brazil
  and
  Malaysia.

• Ø Established
  global
  distributor
  network
  across
  the
  Americas,
  Europe
  and
  Asia.

• Ø FY2013
  Revenue
  of
  c.
  $5.0m.
  Global
  product
  commercializa6on
  phase commenced.
  First
  long-­‐term
  supply
  agreements
  signed.
  Substan6al
  revenue growth
  is
  expected
  from
  Cardia’s
  large
  sales
  and
  development
  pipeline.
  Moving towards
  break-­‐even
  profitability.

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Global Operations
Resin Production Finished Goods Sales Offices Distributors
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Manufacturing Plant – Nanjing PRC

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8

Manufacturing Plant & Volume Capabilities

Cardia
has
developed
proprietary
manufacturing
processes
for its
bioplas4c
resin
and
finished
products

• Ø Cardia’s
  manufacturing
  plant
  is
  located
  in
  Nanjing,
  China.

• Ø Nanjing
  is
  a
  large
  commercial
  center
  with
  a
  mul6tude
  of manufacturing
  and
  export
  industries.

• Ø Cardia
  has
  set
  up
  fully
  integrated
  product
  supply
  from
  resin to
  cer6fied
  compostable
  films
  and
  bags
  that
  ensures
  product quality
  and
  cost
  compe6veness.

• Ø The
  plant
  has
  significant
  exis6ng
  resin
  capacity
  (c.7,200te/a), in
  prepara6on
  for
  the
  full
  commercialisa6on
  of
  its
  products and
  can
  be
  cost
  effec6vely
  expanded
  to
  c.10,000te/a produc6on.

• Ø Cardia
  specializes
  in
  produc6on
  of
  its
  compostable
  films
  and bags.
  In
  order
  to
  meet
  growing
  sales,
  Cardia
  doubles
  film extrusion
  and
  bag
  making
  capacity
  with
  further
  expansion commiyed.

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Page 9

9

Products Summary

Cardia’s
product
offerings
fall
into
the
following
2
categories:

1. Cardia
Biohybrid™
Resins
&
Products Ø Combine
renewable
plant-­‐based
thermoplas6c
starch with
oil-­‐based
plas6c
material.

Ø Reduce
dependence
on
finite
oil
resources
by
up
to 66%.

Ø Blending
levels
achieved
range
from
15-­‐45%
-­‐
replacing tradi6onal
plas6cs
inputs
with
Biohybrid™.

Ø Food
safe
compliant,
printable,
colorable
and
process efficiently
on
standard
plas6cs
processing
equipment.

Ø Typical
product
applica6ons
include:
flexible
films
and bags
for
food,
hygiene,
waste
management,
injec6on moulded,
blow
moulded
containers,
thermoformed trays
and
foam
products.

2. Cardia
Compostable
Resins
&
Products Ø Biodegradable
and
compostable
cer6fied
to interna6onal
standards.

• Ø SoM
  touch,
  printable
  &
  colorable.

• Ø Typical
  applica6ons
  include:
  compostable
  shopping bags,
  waste
  management
  bags
  and
  compostable agricultural
  films.

**1.

Cardia
Biohybrid™
Resins
&
Products**

CBP1 Biohybrid™ Resins CBP3 Bags CBP4 Degradable
carrier
bags CBP5 General
packaging
films CBP6 Food
packaging
films
and
bags CBP7 Produce
bags
and
liners CBP8 Hygiene
&
personal
care
product
films CBP9 Hygiene
&
personal
care
packaging
film CBP10 Laminates,
bags
and
pouches CBP11 Containers
for
nutri6onal
supplements CBP12 Injec6on
moulded
products CBP13 PVC-­‐free
toys CBP14 Blow
moulded
boyles CBP15 Thermoformed
trays CBP16 PVC
free
sta6onary
films CBP17 Polyethylene
foams CBP18 Extruded
Polystyrene
foam
trays CBP19 BOPP
for
packaging
and
labels CBP20 Courier
Bags
and
Transport
Packaging CBP21 Bag-­‐In-­‐Bag
Water
Packaging

2.
Cardia
Compostable
Resins
&
Products CBP2 Compostable
Resins CBP30 Bags CBP31 Waste
management
bags CBP32 Mulch
films CBP33 Lamina6on
films CBP34 Dog
waste
bags

Page 10

10

Patents & International Accreditation

**Cardia

has
developed
and
retains
a
strong
Intellectual
Property
porYolio:**

• Ø 11
  Patent
  families
  for
  bioplas6c
  resins
  &
  packaging
  products

**Interna4onal

Accredita4on**

Ø Accredited
globally,
in
all
countries
with
cer6fica6on
schemes
–
including
the
USA,
EU, China,
Australia,
South
America,
Japan
&
Asia

• Ø Food
  contact
  approval
  in
  Europe
  and
  USA

• Ø Halal
  Cer6fica6on

• Ø Cardia
  Bioplas6cs
  China
  business
  cer6fied
  to
  China
  Environmental
  Standard

• Ø Cardia
  Bioplas6cs
  Malaysia
  business
  awarded
  BioNexus
  Status

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11

Cardia’s Business Development Cycle

Ø Entered
global
commercialisa6on
phase
with
global
brand
owners,
secured
commercial
supply
contracts.

• Ø Targeted
  leading
  FMCG
  companies
  for
  specific
  product
  applica6ons
  which
  are
  trialled
  in
  specific
  markets.

Ø Ramp
up
in
sales
volumes
driven
by
move
to
global
market
roll-­‐out
.

Ø Various
packaging
products
nearing
full
commercialisa6on
–
will
underpin
future
business
growth.

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----- Start of picture text -----

Targeted Full Revenue
Development Market Trials Commercialisation
Commercialisation
Cardia Product Portfolio
$
1-4 years
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Cardia’s Global Activities

Applications	Australia NZ	China	USA/ Canada	Brazil	Europe	Malaysia
Carrier Bags	✔	✔✔	✔	✔✔✔	✔	✔
Films & Packaging	✔✔	✔	✔✔✔	✔	✔✔✔	✔
Waste management products	✔✔✔	✔✔✔	✔✔✔	✔✔	✔✔	✔✔✔

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13

Focus – Waste Management Products

**Global

specialist
in
environmentally
preferred
products
for
waste management
and
organics
diversion**

• Ø Organic
  frac6on
  of
  municipal
  solid
  waste
  ,
  e.g.,
  green
  waste
  and
  kitchen waste,
  is
  above
  60%
  aMer
  the
  sor6ng
  of
  recyclables.

• Ø Organic
  waste
  in
  landfills
  can
  create
  significant
  environmental
  burdens caused
  by
  instable
  land
  fills,
  landfill
  gas
  and
  leachate
  emissions.

• Ø Organics
  diversion
  to
  compos6ng
  is
  preferred
  by
  many
  Councils
  around the
  world.

• Ø Cardia
  offers
  Biohybrid
  waste
  management
  bags
  with
  lower
  carbon footprint
  at
  high
  performance
  and
  compe66ve
  price.

• Ø Cardia
  offers
  a
  cer6fied
  compostable
  product
  range
  tailored
  to
  organic waste
  management
  with
  a
  track
  record
  of
  high
  performance
  during
  use and
  compos6ng.
  Expanding
  customer
  base
  in
  Australia,
  New
  Zealand, Malaysia,
  Canada,
  USA,
  Brazil
  and
  the
  UK.

• Ø Cardia
  Bioplas6cs
  waste
  management
  products
  business
  delivers >A$1M/a
  sales
  (excl.
  China)
  and
  is
  expected
  to
  grow
  as
  Councils, consumers
  and
  brands
  move
  towards
  sustainable
  waste
  management prac6ces
  and
  organic
  waste
  diversion.

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Page 14

14

Focus - Hygiene Packaging

**Sustainable

hygiene
films
and
packaging**

• Ø Cardia
  Bioplas6cs
  provides
  unique
  sustainable
  product
  offering
  to
  the global
  hygiene
  and
  personal
  care
  products
  industry.

• Ø Cardia
  Biohybrid™
  proprietary
  technology
  delivers
  combina6on
  of
  high packaging
  performance,
  environmental
  profile,
  soM
  touch,
  may
  finish, excellent
  printability
  and
  cost
  effec6veness.

• Ø Cardia
  Compostable
  technology
  complements
  offer
  with
  compostability and
  biodegradability
  of
  films.

• Ø Cardia
  sells
  both
  hygiene
  films
  and
  resin
  to
  a
  broad
  range
  of
  hygiene product
  brands
  including
  the
  global
  leaders,
  regional
  brands
  and
  new niche
  players.

• Ø Cardia
  Bioplas6cs
  hygiene
  products
  business
  delivers

  A$1M/a
  sales and
  is
  expected
  to
  grow
  as
  global
  brand
  owners
  move
  forward
  with commercialisa6on,
  regional
  brands
  extend
  the
  use
  of
  Cardia
  products across
  different
  product
  lines,
  new
  customers
  will
  be
  acquired
  based
  on current
  track
  record
  and
  niche
  players
  expand
  their
  business.

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Page 15

15

Focus – Disposable Products

**Cardia

Biohybrid™
or
Compostable
disposable
product
solu4ons**

• Ø Cardia
  Bioplas6cs
  provides
  proprietary
  product
  offering
  to
  disposable products
  market.

• Ø Cardia
  Biohybrid™
  proprietary
  technology
  delivers
  combina6on
  of
  high packaging
  performance,
  full
  food
  contact,
  environmental
  profile, excellent
  printability
  and
  cost
  effec6veness.

• Ø Cardia
  Compostable
  technology
  complements
  offer
  with
  compostability and
  biodegradability
  of
  films
  and
  products.

• Ø Cardia
  sells
  both
  Biohybrid™
  and
  compostable
  resins
  and
  films
  to
  a broad
  range
  of
  producers
  of
  food
  service
  items
  and
  packaging.

• Ø Cardia
  Bioplas6cs
  delivers
  sales
  of

  A$0.5M/a
  in
  disposable
  products segment
  and
  expects
  to
  grow
  as
  brand
  owners
  will
  move
  forward
  with full
  commercialisa6on
  across
  different
  product
  lines,
  and
  new
  solu6ons gain
  market
  share.

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Page 16

16

Focus- China

**China

Councils
implemen4ng
organic
waste
diversion
programmes**

• Ø Cardia
  is
  well
  established
  in
  China
  with
  exis6ng
  manufacturing
  in
  Nanjing and
  business
  cer6fied
  to
  China
  Environmental
  Standard.

• Ø Strong
  government
  rela6onships
  resul6ng
  in
  growing
  sales.

• Ø Exclusive
  supply
  contract
  to
  2008
  Beijing
  Olympics
  and
  Paralympics

• Ø Supplier
  to
  2010
  Shanghai
  World
  Expo

• Ø Growing
  Chinese
  ac6vity
  in
  organic
  waste
  diversion
  schemes.

• Ø Cardia
  Bioplas6cs
  offers
  complete
  range
  of
  organic
  waste
  management products.

• Ø Cardia
  won
  annual
  supply
  contracts
  with
  annual
  sales
  forecast
  of
  A$2.6M supplying
  five
  China
  City
  Councils
  with
  kitchen
  waste
  bags.

• Ø Shanghai
  Pudong,
  Hangzhou
  West
  Lake,
  Nanjing
  Jianye,
  Yuhang, Nanjing
  Qixia

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• Ø Cardia
  Bioplas6cs
  China
  is
  posi6oned
  for
  growth
  as
  it
  will
  expand
  into other
  Councils
  and
  provinces
  of
  China,
  current
  Councils
  will
  expand
  their roll
  out
  to
  more
  households
  over
  6me,
  and
  current
  trials
  move
  to
  full scale
  commercial
  implementa6on.

Page 17

17

Focus- Brazil

**Ini4a4ve

to
ban
disposable
plas4c
carrier
bags,
waste
bags,
packaging**

• Ø Brazilian
  Sustainable
  Purchasing
  Law
  was
  revised
  in
  February

• Ø When
  enforced,
  law
  will
  guide
  Brazilian
  Government
  and
  industry towards
  purchasing
  of
  environmentally
  preferred
  bag
  and
  packaging products.

• Ø Cardia
  Compostable
  and
  Biohybrid™
  products
  meet
  the
  criteria
  of
  the law.

• Ø Cardia
  Bioplas6cs
  Brazil
  has
  partnered
  with
  bag
  makers
  that
  produce Cardia
  Biohybrid™
  bags
  for
  sales
  to
  Cardia’s
  retailer
  customers.

• Ø Cardia
  has
  won
  strategic
  supply
  contracts
  with
  high
  profile
  retailers Ricoy
  Supermercados
  and
  Drogaria
  Araujo.
  A$1.4M/a
  sales
  forecast with
  the
  opportunity
  to
  grow
  the
  business
  across
  the
  larger
  retailing groups.

• Ø Cardia
  Bioplas6cs
  Brazil
  poised
  for
  growth
  as
  Brazilian
  supply
  chain established
  and
  Cardia’s
  product
  performance
  and
  quality
  being recognised
  within
  the
  Brazilian
  retail
  market.

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Page 18

18

Future Product Opportunities

Cardia
Bioplas6cs
is
now
fully
focused
on
achieving
break-­‐even
profitability
through
increasing
sales
in
its
target markets
of
carry
bags,
packaging
and
waste
management
products
where
it
has
a
proven
commercial
track
record. Depicted
below
is
a
range
of
product
opportuni6es
that
will
require
some
more
development
and
that
Cardia
will target
in
the
future.

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Page 19
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19

Successes in 2014

1. Pacific
Springs and Yukon
Springs use
Cardia
Biohybrid™
films technology
for
bag-­‐in-­‐bag
water
packaging
(Australia
&
Canada)

2. Ecoriginals use
Cardia
Compostable
films
for
nappies
and
nappy
waste bags
(Australia)

3. Nanjing
Jianye waste
management
supply
contract
(China)

4. Qixia waste
management
supply
contract
(China)

1. Patents
   secured
   for
   Cardia
   Compostable
   resin
   (USA)

6. So
Delicious®
Dairy
Free uses
Cardia
Compostable
technology
to develop
compostable
ice
cream
s6cks
(Canada)

7. Drogaria
Araujo replaces
paper
bags
with
Cardia
Biohybrid
bags
(Brazil)

8. Ricoy
Supermercados changes
to
Cardia
bags
(Brazil)

9. Maldives gives
Cardia
Biohybrid™
bags
EPA
approval
(Maldives)

10. EcNow
Tech uses
Cardia
Compostable
resin
for
disposable
compostable cutlery
(USA)

11. IAIR
Green
Excellence
Award awarded
to
Cardia
Bioplas6cs
(Global)

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Page 20

20

Endorsement by Leading Packaging Companies

**Cardia

has
proven
produc4on
processes
with
leading
mul4na4onal
packaging
manufacturers.**

• Ø Cardia
  works
  within
  the
  exis6ng
  supply
  chain
  of
  global
  brand
  owners
  to
  ensure
  adop6on
  and
  endorsement
  of
  its
  products
  by the
  leading
  packaging
  manufacturers.

• Ø This
  coopera6on
  has
  enabled
  Cardia
  to
  develop
  close
  rela6onships
  with
  leading
  packaging
  manufacturers
  to
  ensure produc6on
  efficiency,
  scalability,
  product
  innova6on
  and
  commercialisa6on.

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21

Global FMCG Customers

Cardia
delivered
sales
or
is
in
commercialisa4on
of
its
developments
with
the
following
leading
global
brands:

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22