Enhancing Life Through Nature TSX: CZO Corporate Presentation March 2018 www.ceapro.com
2 Forward Looking Statements This presentation contains forward-looking statements. Various factors could cause actual results to differ materially from those projected in forwardlooking statements, including those predicting the timing of product development and launches. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company s expectations are correct. All forward-looking statements are expressly qualified by this Cautionary Statement.
3 Corporate Overview Focused on the development and commercialization of active ingredients for healthcare and cosmetic industries leveraging proprietary delivery systems Industry leading extraction manufacturing processes produce high value active ingredients from natural plant based sources Two value-driving active ingredients used in multiple household name cosmetics and personal care products: beta glucan and avenanthramides Revenue generating, de-risked business model supports near-term and future growth - Strengthen and expand revenue generating base business - Imminent pivot into biopharmaceutical company through expansion into high-growth markets Recent acquisition of Juvente DC marks important step in strategic market diversification business plan - New anti-aging skin care product line represents opportunity in a $5B market and utilizes beta glucan and avenanthramides
Key Management and Board Key Management Gilles Gagnon, M.Sc., MBA President and Chief Executive Officer - Over 30 years of experience in the pharmaceutical industry where he participated in launching multiple new pharmaceutical products - Former CEO of AEterna Zentaris and Vice President, External Affairs, for Novartis Pharma Canada Inc. Stacy Prefontaine, CA Chief Financial Officer - Almost 20 years of global finance and accounting experience in public company external financial reporting, corporate tax compliance and planning, and accounting practices and controls - Former Principal at Grant Thornton LLP and Partner at Stout & Company LLP Jean-Guy Boulet General Manager, Juvente DC - Over 30 years of experience in strategic marketing, marketing intelligence and growth strategy - Successful track record of launching and implementing strategic growth initiatives in international markets - Founder of Juvente DC Glenn R. Rourke, MBA - Chair of the Board - Retired Senior Vice President/Managing Director, BMO Financial Group Gilles Gagnon M.Sc., MBA - President and Chief Executive Officer Ulrich Kosciessa, Ph.D. - Member of the Executive Management Board of Medac GmbH, Managing Director of Medac International, and Chairman of the Board of Medac Pharma Inc. William W. Li, M.D. - President, Medical Director and Co-founder of the Angiogenesis Foundation Don Oborowsky - President and owner of Waiward Capital John Zupancic Board of Directors - Retired Manager of Supply and Technical Services for the Strathcona Refinery 4
5 Diversified Business Model Expected to Drive Growth Revenue Generating Base Business Multiple Growth Opportunities Cosmeceuticals Nutraceuticals Enabling Technologies
6 Unique Bioprocessing Expertise Identification, extraction and purification of active compounds from natural sources Create innovative ingredients for the personal care and healthcare industries Two value-driving bioactives at core of base business in cosmeceuticals - Beta glucan - Avenanthramides
7 Beta Glucan Water soluble fibre found in the cell walls of oat kernels Highly effective in stimulating collagen synthesis Key Benefits: - Skin restructuring and wound healing - Replenishes and protects the skin s moisture barrier - Proven to effectively reduce fine lines and wrinkles, decreasing the visible signs of aging - Linked to cholesterol reduction and/or reduced risk of heart disease Ceapro was first to demonstrate that beta glucan can be used as a delivery system
8 Avenanthramides Group of polyphenol compounds found exclusively in oats Antihistamine and anti-inflammatory properties - Provides relief for a host of skin conditions, such as eczema, chicken pox and insect bites Potential benefits in the control of inflammation-based diseases Ceapro is the only company in the world producing the only commercial natural avenanthramide product
9 Avenanthramides Clinically Proven in Cosmeceuticals Significant improvements in erythema symptoms associated in subjects with mild to moderate atopic dermatitis - 40% improvement in itch perception after 1 week - 62% of patients showed an improvement in their skin condition Subjects with atopy - 89% of subjects saw significant improvement in itch after 1 week - Continued improvement after 4 weeks
10 Base Business: Cosmeceuticals From Field to Formulation Revenue generating base business in personal care cosmetic market Consistent growth of at least 20% year-over-year growth Strategy focused on strengthening and expanding business by continuing to explore and clinically validate new product applications Recently renewed a major distribution agreement with long-time partner, Symrise AG
11 Beta Glucan and Avenanthramides in Multiple Household Name Products Aveeno Jergens Coppertone Dove Lubriderm 3M Nexcare KY Products Neutrogena Burt s Bees The Body Shop Philosophy ROC
12 Juvente DC - Proprietary Line of Cosmeceutical Products Acquisition of Juvente DC in October 2017 marks important step in strategic market diversification business plan Represents opportunity in a $5B market Utilizes two value-driving active ingredients beta glucan and avenanthramides Anti-aging skin care product line: - Parfaite: a new generation anti-aging day cream - Absolue: an anti-aging night cream - Radieuse: an anti-aging eye contour care
13 Financial Performance 2012-2016 At Least 20% of Consistent Year-Over-Year Growth 14 12 10 8 6 4 2 0-2 2012 2013 2014 2015 2016 Sales, ($M) Income (loss) from operations, ($M)
14 Multiple High Value Growth Opportunities Cosmeceuticals Nutraceuticals Enabling Technologies
15 Fueling Our Nutraceuticals Pipeline From Plant to Pill Functional Drink Cholesterol Exercised Induced Inflammation
16 Beta Glucan: Functional Drink - Energy Booster Collaborating with the University of Alberta to develop a functional drink Impregnated beta glucan, as a delivery system, with the well-known co-enzyme Q10 as an energy booster Demonstrated first water soluble formulation of co-enzyme Q10 utilizing PGX technology Highlights: Positive results from first development phase presented at Lisbon Conference on Supercritical Fluids in April 2017. Peer reviewed scientific paper just accepted for publication in Food Research International Journal Pure PGX BG ibg: 5.5% CoQ10 on BG
17 Beta Glucan Clinical Study: Cholesterol Reducer Oat Beta Glucan Linked to Cholesterol Reduction and/or Reduced Risk of Heart Disease Planning pilot clinical study to evaluate the efficacy of beta glucan as a cholesterol reducer The 18-24-month placebo controlled study will enroll a minimum of 240 patients who cannot tolerate high doses of current treatments Additional biomarkers will also be evaluated for potential effect on insulin metabolism and other symptoms related to metabolic syndrome
18 Avenanthramides: Exercise-Induced Inflammation Collaborating with the University of Minnesota to develop a functional food to alleviate exercise-induced inflammation Results from bioavailability study demonstrated a significant reduction of inflammation biomarkers in the blood Results from bio-efficacy study using low and high doses of avenanthramides as a food additive to be presented at June 2018 Conference in Boston
19 Immuno-Regulatory and Anti-Inflammatory Effects of AVA in Eccentric Exercise-Induced Muscle Damage Oxidative stress Oat Avenanthramides (AVA) Eccentric Contraction Inflammation Delay Onset Muscle Soreness (DOMS) Vertical jump Soreness rating (1) Chemokines and Adhesion Molecules Vertical jump Soreness rating 8 weeks washout 8 weeks oat AVA Blood collections (2) Immune Cells (3) Muscle damage Blood collections
20 Immuno-Regulatory and Anti-Inflammatory Effects of AVA in Eccentric Exercise-Induced Muscle Damage Biomarkers CK and CD Markers Chemoattractants (MCP-1, E-Selectin, G-CSF, GM-CSF, ICAM-1, VCAM-1) Inflammatory Markers: IL-1, IL-6, TNF-alpha, IL-8 Anti-inflammatory Markers: IL-10, IL-1ra
21 Potential For Multiple Value-Driving Opportunities Pressurized Gas Expanded (PGX) Liquid Spray Drying Novel spray drying technique for processing water-soluble biopolymers Platform that can produce numerous morphologies of biopolymers ranging from fine fibers to granular powder, which are highly water soluble Proprietary Enabling Technologies Extraction Fractionation Ethanol based extraction manufacturing technology Semi-continuous processes offer the ability to produce commercial scale quantities Proprietary Drying Technology Developed to produce pharma grade tablet of phenolic based compounds Ability to produce commercial scale quantities
22 Enabling Technologies Have Broad Utility
23 Pressurized Gas expansion Technology (PGX) PGX is poised to be a delivery system platform Successfully completed impregnation of bioactives using PGX Technology for improved characteristics Pilot Scale Facility completed and custom designed equipment installed - Proprietary equipment will enable production of sufficient material for both development studies and sale-able product for niche applications Agreement with University of Alberta to conduct impregnation studies using PGX technology - Grant of $332K obtained from Canadian Government
New Bio-Processing Facility R&D Pilot Scale Capability Commercial Production New 30,000 sq. ft. GMP Bioprocessing Extraction Facility in Edmonton, Alberta, Canada 24
25 Financial Profile TSX-V: CZO Stock Ticker $39.6M Market capitalization as of March 6, 2018 74.8M Common shares outstanding $13,674,000 Total sales for the full year 2016
26 Financial Performance 2012-2016 At Least 20% of Consistent Year-Over-Year Growth 14 12 10 8 6 4 2 0-2 2012 2013 2014 2015 2016 Sales, ($M) Income (loss) from operations, ($M)
27 Future Growth Marked by Potential to Address Significant Market Opportunities Cosmetic Injectables $686M Functional Food $240B Cosmetic Skincare $5B Antiinflammatory $57.8B Diabetes Tx $21.4B Functional Drink $17B
28 Investment Highlights Revenue generating, de-risked business model supports near-term and future growth Strategy focused on strengthening base cosmeceuticals business and expanding into multiple growth markets Two value-driving active ingredients used in multiple household name cosmetics and personal care products Acquisition of Juvente DC represents an opportunity for vertical integration that enables our entry into a high-end market valued at $5 billion Pivoting into biopharmaceutical company with multiple near-term value-driving opportunities expected to unlock significant shareholder value Exploring up listing to a National Exchange outside of Canada
Enhancing Life Through Nature TSX: CZO Corporate Presentation www.ceapro.com