TSX.V: NEXE Frankfurt: NX5 - Investor Presentation April 2021
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Investor Presentation April 2021 TSX.V: NEXE Frankfurt: NX5 OTC: NEXNF
Disclaimer
This presentation contains forward-looking statements; including forward-looking statements The Company disclaims any responsibility to update the forward-looking statements or any
regarding expected growth in the global single serve hot beverage market and global coffee risks, uncertainties or factors that may affect the forward-looking statements to reflect
pod market value. Forward-looking statements involve known and unknown risks, events or developments, including any revised forward-looking statements that might be
uncertainties and other factors which may cause the actual results or growth to be materially published by the sources of the forward-looking information contained in the presentation
different from many future results or growth expressed or implied by the forward-looking materials. In addition, the presentation materials are not intended to express or simply any
statements. Actual results are likely to differ, and may differ materially, from those expressed forward-looking statements regarding expected or anticipated results of operations, financial
or implied by the forward- looking statements contained in the presentation materials. Such condition, performance or achievements of NEXE Innovations Inc. (“NEXE” or the
forward-looking statements are based on a number of assumptions which may prove to be “Company”) and the Company disclaims any such forward-looking statements. The results
incorrect. There may be factors that cause actual results not to be as expressed or implied by of operations, financial condition, performance, achievements or prospects of the Company
the forward-looking statements. There can be no assurance that forward-looking statements involve known and unknown risks, uncertainties and other factors, including risks relating to
will prove to be accurate, as actual results and future events could differ materially from those the ability of the Company to obtain necessary financing, the impact of debt financing
anticipated in such statements. Accordingly, you should not place undue reliance on transactions, the Canadian and global economy generally and the Canadian, North American
forward-looking statements. The forward- looking statements should not be relied upon as and Global market for the Company’s products, consumer interest in the Company’s
representing the Company’s views as to any date subsequent to the date the presentation products, competition, the regulatory environment, governmental legislative or regulatory
materials were prepared. actions or activities, potential litigation, and anticipated and unanticipated costs. The
forward-looking statements contained in the presentation are expressly qualified in their
entirety by this cautionary statement.
We create disruptive sustainable
innovations using advanced materials
and manufacturing technologies to
support a circular economy.
3
The NEXE Story
Fully Compostable Pilot Automation
However, it was only the emergence of new
As pilot equipment was tested, considerable new
plant-based materials and forming technologies
challenges emerged. It would take a whole new
(like 3D printing) that propelled Footz to pursue a
production team and over 1.5 years to successfully
plant-based coffee pod.
advance to commercialization.
G
Big Idea Commercialization
In 2015 when NEXE was originally Today the NEXE POD (for K-Cup) is being
conceptualized by founder and coffee commercialized with plans to rapidly scale
veteran Darren Footz, the single-serve (220M pods). NEXE is aiming to develop other
coffee pod business was already booming Plant-Based Challenges plant-based innovations in other verticals using
yet consumers continued to choose the many lessons learned over five years.
convenience over the environment. After discovering that plant-based materials fall apart
under heat and pressure, the road ahead remained
challenging but the NEXE team persevered.
4
Consumer Demand is Driving Innovation
for Sustainable Alternatives
Advancements in Sustainable Materials Technology have Created a
Generational Opportunity for Product Innovators.
Advanced Materials Manufacturing Technology
NEXE is at the forefront of the convergence of advanced materials science with
manufacturing technologies to develop sustainable consumer products.
5
Global Plastic Crisis
LESS THAN
9% *
500+
**
YEARS
365+ 79%
RECYCLED
*
500-10,000 YEARS
FOR PLASTIC PODS
ENDS UP IN THE TO BREAK DOWN
MILLION TONS OF * ENVIRONMENT
PLASTIC PRODUCED (LAND AND OCEANS)
YOY
* https://www.nationalgeographic.com/news/2017/07/plastic-produced-recycling-waste-ocean-trash-debris-environment/
* https://www.nationalgeographic.com/news/2018/05/plastics-facts-infographics-ocean-pollution/
** https://www.wwf.org.au/news/blogs/the-lifecycle-of-plastics#gs.7wxvt5
6
Circular Economy
Understanding the Bigger Problem
• A global R&D initiative for alternative materials to replace
PLASTIC WASTE conventional plastic is gaining momentum
IN LOCAL LANDFILLS • Increased need for new industrial facilities to
IS OVERFLOWING! provide quick digestion solutions for waste
• Industrial compost facilities struggle with material acceptance
NEW MATERIALS • Compost certification agencies (BPI) are at odds with the
INNOVATION LOOKS industrial compost facilities on what is compostable
PROMISING BUT... • Many promising new materials technologies to replace traditional
plastic exist, yet many are not yet fully functional and
compromise the product (e.g. taste, appearance, shelf-life)
7
Global Coffee Market
$155B $15.6B
$29.2B
2026
44%
Global coffee market was US at-home coffee market 44% of the US coffee Global coffee pod and
valued at ~ USD $102.15bn is set to grow by 4.9% in demand comes from capsule market is
in 2019 and is expected to 2020 to reach $15.6bn millennials expected to reach
reach revenue worth USD compared to a total of National Coffee USD $29.2bn by 2025
$155.64bn by 2026 and is 3.9% growth experienced Association in NY
Fior Markets
growing at a CAGR of between 2015-2019 March 2020
6.2% between 2020-2026
Mintel, September 2020
Zion Market Research, August 2020
8
Single-Serve Coffee Pods
Coffee maintains high ethical
requirements and consumers are
40B+ 8.5%+
demanding a solution.
PODS CONSUMED COMPOUNDED
PER YEAR GROWTH PER YEAR
PROBLEM: Why hasn’t there been a
smart, compostable coffee pod that has
emerged as the category killer?
CHALLENGING COMPROMISED TOXICITY
ENGINEERING TASTE
Engineering new plant-based New eco-friendly single serve Many products that appear
materials to achieve the needed pods have fared poorly in ‘pour-over’ compostable still produce
9
barrier properties for the K-Cup tests. In other words, taste was microplastics upon breakdown.
is challenging. compromised.
THE SOLUTION
The Patented NEXE Pod
1 Plant-based 2 Science-Backed 3 5 Years R&D Lessons Learned
Plant-based, fully Our ecotoxicity and After 5 Years of R&D, The lessons learned
compostable, no compostability results are NEXE mastered ‘barrier’ from the creation of the
compromise backed by scientific and without compromise and pod will propel NEXE to
industrial studies proved compostability in new innovations.
as little as 35 days.
10Scientific & Commercial Validation
Carrots (left) and onions (right) after 3 weeks of growth in soil containing Post-shredded coffee pods. Fine/compost pod particles after
10 wt% NEXE POD compost. “composting cycle 3”.
“Soil containing NEXE POD compost had no “In optimum conditions the pods can be fully
negative influence on the growth of carrots and degraded within a 35 day process. At an average
onions over a period of six weeks, with no organic waste facility it would take approximately 70
evidence of toxicity to the plants.” days to fully degrade. We are working towards BPI
certification.”
Dr. Zachary Hudson
Terravis Ltd.
Canada Research Chair in
Sustainable Chemistry, University of British Columbia
and Chief Scientific Officer, NEXE. Private Sector Compost Study
11The NEXE Pod Facts
COMPOSTABILITY
35
IN AS LITTLE AS
Coffee Boldness Great - Design allows more
DAYS volume than K-Cup, 11-13
grams (up to 15% more)
BY INDUSTRIAL COMPOSTING
BARRIER Coffee Freshness Full - Barrier integrated with cup
MORE
VOLUME Sustainability Full - Plant-based materials
- Fully compostable
NO ADHESIVES - Zero waste
SOY BASED INK - Easily identifiable as compostable
NEXE POD by waste workers
COOL TO
THE TOUCH
Compatibility Full - Fully compatible with all Keurig
brewing systems and accessories
FULLY SUPERIOR PLANT-BASED
COMPOSTABLE TASTE
Usability Full - COOL to touch
* https://www.wwf.org.au/news/blogs/the-lifecycle-of-plastics#gs.7wxvt5
12Our Approach
Design Design Plant- Rapidly Prototype Manufacture
Compostable Product Based Materials by 3D Printing Bioplastic Parts
Use CAD modelling to Apply our knowledge in Use additive manufacturing Manufacture bioplastic parts
design products to meet polymer science to design to massively shorten product in-house using high-speed
consumer needs plant-based resins development cycles injection molding
Assemble to Validate Products Validate Products
Finished Products with Consumers at End-of-Life
Use our intellectual property Ensure products meet the Ensure products are fully
in bioplastics manufacturing needs of even the most compostable at end-of-life,
to scale new innovations discerning consumers producing no microplastics
13Vertically Integrated Manufacturing
Manufacturing Current Future
Stage 1 Plant-Based Resins Partners
Stage 2 Plant-Based Parts Partners
Stage 3 Final Product
• NEXE is installing equipment for the production of plant-based resins, plant-based parts,
and finished consumer products throughout 2021.
• This vertically integrated strategy will increase operating margins, improve IP protection,
reduce supply chain risk, and accelerate R&D. 14Leveraging IP to
Create New Innovations
1 2 3
IP FIRST PROCESS 20+ PATENT FINDINGS IN LAB
APPLICATIONS TO DATE SUGGEST
NEXE has a two-pronged This process will Firm has identified at least 20
WE CAN CREATE
approach to IP with a strengthen our competitive patent applications giving NEW PRODUCTS IN
leading IP consulting firm advantage and barriers to NEXE global utility patent
to focus on our entry, protect our brand, protection MULTIPLE
proprietary automation
and materials technology
generate potential licensing
revenue, increase VERTICALS
within our pods transaction leverage and
BIORESOURCES
shareholder value
15Compostable Mask
NEXE will leverage existing collaborations in polymer science, plant-based materials, and
municipal composting that were utilized for its NEXE pod.
The global market for disposable masks exceeded $70bn USD in 2020,
more than double the size of the market for single-serve beverage pods
Innovative platform showcases NEXE ability to develop additional
plant-based products focused on the masses
Business model is to work with strategic partners who have the
manufacturing and distribution channels and collect a licensing fee
NEXE’s goal is to develop a disposable facemask that is made from
plant-based materials without compromising on safety or comfort.
By engaging with leaders in materials science, compostability, PPE
manufacturing, and healthcare, NEXE aims to apply our technologies to
one of the world’s fastest-growing sources of plastic waste.
NEXE has developed initial prototypes and will focus on creating a
fully functional compostable disposable facemask that meets international
healthcare standards in the coming months.
16State-of-the-Art Commercial Facility
Our 100% owned facility allows NEXE to begin to address the
rapidly growing demand for plant-based alternatives to plastic.
17Funded Annual Capacity
TOTAL
225 220M
200
175
170M
150
125
100
75
50
50M
25
0
Millions Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
KCup Nespresso Total 18XOMA Superfoods
High-quality coffee and superfoods for functional
health and a greener planet.
• NEXE Innovations has launched its new in-house
brand, XOMA Superfoods, to meet the growing needs
of health- and environmentally conscious consumers.
• The first XOMA Superfoods SKU, a soluble
micro-ground coffee fortified with medium-chain
triglycerides (MCT) oil packaged in the NEXE Pod,
launched as a pilot in late January.
• NEXE plans to add more products, available for purchase
online and through subscription, via a new direct-to-consumer
e-commerce platform.
19XOMA Superfoods
High-quality coffee and superfoods for functional health and a greener planet.
20Value Creation
A Flexible Monetization Strategy
1,000,000,000+
220,000,000+
LAB SCALE FLAGSHIP PLANT INDUSTRIAL SCALE
BUSINESS MODEL/ PLATFORM PROCESS/ SALES OF PRODUCTS
LICENSING
EARNINGS METHODOLOGY LICENSING
STRATEGIC CHOICES
STAND-ALONE
STRATEGIC PARTNERING
CHOICES
SELL TECHNOLOGY
21Leadership Team
Darren Footz Ash Guglani Dr. Zac Hudson Raj Kang
CEO President, Co-Founder Chief Science Officer CFO
Dr. Zac Hudson is the Canada Research Chair in Rajwant S. Kang is the founder & president of RSK
A serial entrepreneur, Darren is the past President Ash spent 12 years in capital markets with a Sustainable Chemistry at the University of British Management Consulting Inc. a private company
of Granville Island Coffee, a company he built in 5 national investment bank in Vancouver. As an Columbia. Dr. Hudson holds a B.Sc. and Ph.D in that provides management services and has over
years from a small artisan roaster to a national original founder of NEXE, he plays an integral role chemistry from Queen's University, and has held 25 years of accounting and finance experience. He
brand. He is the innovative mind behind the in helping NEXE in all capacities across financing research fellowships at top universities in Japan, has proficient knowledge of capital markets, raising
plant-based and fully compostable NEXE POD. (public, private and government), operations, and China, the US and UK. His Ph.D. thesis was capital, M&A and corporate regulation of publicly
His expertise, dedication and pioneering ideas are marketing. named the top chemistry Ph.D. in all of Canada, listed companies.
the backbone of our organization. as well as the top Ph.D. at Queen's in any field.
Don Chisholm Paul Bhogal Anthony Rosenfeld
New Product Automation Marketing
Development Paul has over 20 years of manufacturing and
Anthony holds 20 years of experience in marketing,
strategy and business development. In 2007, pursuing
automation experience. He grew a small family
his passion for natural health and sustainability,
For over 30 years, Don Chisholm has been working at Hamilton-based machine shop into a Tier 1 & 2
he joined Vega in its infancy as Vice President
the intersection of business and design. With a automotive production machining/assembly/-
of Marketing. There he built a strong 50- member
unique skillset that balances creativity with testing facility with two locations in Ontario and
team that developed a leading marketing program
innovation and strategy with operations, Don is one in Saltillo, Mexico
overseeing consumer, trade, PR, creative and digital
passionate about working closely with entrepreneurs, marketing. He played a key role in building an
executives and marketers to transform businesses internationally recognized premium brand while
and generate results. seeing revenue grow from $3.5M in 2007 to $200M
in 2015.
22NEXE Board of Directors
Darren Footz Ash Guglani
CEO and Director President and Director
A serial entrepreneur, Darren is the past President of Granville Island Ash spent 12 years in capital markets with a national investment
Coffee, a company he built in 5 years from a small artisan roaster to bank in Vancouver. As an original founder of NEXE, he plays an integral
a national brand. He is the innovative mind behind the plant-based role in helping NEXE in all capacities across financing (public, private
and fully compostable NEXE POD. His expertise, dedication and government), operations, and marketing.
and pioneering ideas are the backbone of our organization.
Haytham Hodaly Graham Gilley Killian Ruby
Independent Director Independent Director Independent Director
Mr. Hodaly is the Senior Vice President, Corporate Development of Mr. Gilley is Director of Enterprise Risk Management and Data Mr. Ruby is the President and CEO of Malaspina Consultants Inc.
Wheaton Precious Metals, with over 23 years’ experience the Protection at Mulgrave School – The International School of Van- in Vancouver, specializing in financial management and public
mining sector. Mr. Hodaly previously spent 16 years in the North couver. For the past 15 years, he has been responsible for the company reporting. Prior to joining Malaspina, Mr. Ruby was an
American securities industry, most recently as Director and Mining leadership, innovation, governance, and management of the assurance partner at Wolrige Mahon LLP (now Baker Tilly Canada)
Analyst, Global Mining Research, at RBC Capital Markets. He holds school’s operational, financial, and strategic risks. By developing working predominantly with junior public companies. He also
a B.Eng. and M.Eng. from the University of British Columbia. tools, practices, and policies that analyze and report enterprise previously served as senior manager with KPMG LLP working with
risks, he has created an enterprise risk management framework a range of public companies and reporting issuers.
guided by strategic priorities. Previously, Graham was Executive
Director of Ideation & Development with Cloud9 Secure
Digital Services, where he drove the creation of applications to
help power mobile online banking in the Canadian market.
23Collaborations & Partnerships
Government / Academic Partnerships
Government of Gouvernement du
Canada Canada
Awards
Government of Gouvernement du
Canada Canada
IRAP Innovation Assistance Program (IAP)
Wall Solutions Award
24Capital Table
As at April 9, 2021
Total Shares
Common Issued and Outstanding 95,717,705
Issued
Shares Current Cash
Nov 2020 $3.49M
Stock Options Outstanding 5,154,000
Dec 2020 - Financing $14.16M
Warrants Outstanding 20,661,465 Apr 2021 - Financing $34.5M
Fully Diluted
Fully DilutedShares
Share Outstanding
Capital 121,533,170 Total $52.15M
2526
nexeinnovations.com For more information please contact investors@nexeinnovations.com Ash Guglani Kelsey Letham investors@nexeinnovations.com kelsey.letham@nexeinnovations.com #109 - 19353 22nd Avenue Surrey, BC V3Z 3S6
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