Biome Technologies : Sharholder Presentation November 2022

Biome Shareholder Update

Paul Mines, CEO / Rob Smith, CFO

November 2022

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Agenda

• Quarterly Sales progression
• Business changes
• 2022 Bioplastics - challenges and progress
• • Reduction in large filmic account, slow mesh acceleration
  • Tentative emergence of a broader customer base
• 2023 growth expectations
• • Key assumptions
• Selected large-scale bioplastic opportunities
• RF division and working capital discussion points
• Conclusions

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Quarterly Sales Progression

Biome Technologies Group

Quarterly Sales (Unaudited)

£2,500,000

£2,000,000

£1,500,000

RF

BioPlastics

£1,000,000

£500,000

£-

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

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Business changes (1)

Forecasting

• 2021 was a year in which post-covid global issues battered the supply chains of Biome and its customers and potential customers, our single largest prospect stalled due to engineering issues - we fell-short of analyst expectations
• In 2022, we assumed that supply chain pressures would ease in H2 and that the large bioplastics opportunity that had stalled would accelerate
• This judgement proved incorrect. The supply chain issues continued for both divisions whilst business instability caused by inflation and demand variation has caused our key prospects to delay launches further. A predicted downturn at our key filmic customer has proven deeper and longer than expected.
• Based on these experiences and in the context of continuing global economic uncertainties, the Board has resolved to adjust its forecasting methodology (particularly for the Bioplastics division):
• • new customer prospects are only included in management expectations when large scale commercialisation is proven

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Business changes(2)

Board remuneration

• Exec Directors/Chair surrender of rights under 2017 LTIP (and shadow scheme)
• Measures that include continued policy of no inflationary rises at Board level
• Chair fee reduction of £17kpa (27%) and Independent NED £1.5kpa (4.6%) Growth and market proximity
• North American market dominates existing customer base and prospects
• We have taken several steps to help accelerate our conversion of opportunities in this region
• 1. Biome Bioplastics Inc established as legal entities in both USA and Canada, trading through these entities has commenced
  2. Appointment of a full time Business Development Manager to be based in Canada (complements existing part-time production support technical resource)

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