July 2012

Annual General Meeting Presentation 29 November 2013

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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."    

Disclaimer

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1.  2013  Highlights  and  Key  Developments    2.  Financial  Results  Overview  3.  Bioplas6cs  Industry  and  Outlook  4.  Cardia  Business  and  Opportunity  5.  Investment  Summary  

Agenda

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Cardia Bioplastics Summary

Developer  and  manufacturer  of  sustainable  resins  and  finished  products  derived  from  renewable  resources  for  the  global  packaging  and  plas9c  products  industries.      

Richard Tegoni Non-executive Chairman Frank Glatz Managing Director Steven Bendel Non-Executive Director Gideon Meltzer Non-Executive Director Pat Volpe (Resigned 22 Nov 2013) Jacky Chen (Resigned 17 Oct 2013) John Scheirs (Resigned 14 May 2013)

Board of Directors

Share Price Performance

Capital Structure Australian Securities Exchange (ASX: code) CNN

Shares on issue (ASX) 2696.09m

Share price (as at 27 November 2013) 0.3 cents

Market capitalisation $8.09m

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 July 2014

100m

Rolling monthly turnover

60m

Top 20 shareholders

46.0%

Total number of shareholders (as at 27 November 2013)

2,727

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ü  Sales  revenues  of  $5.05  million  –  an  increase  of  17%  on  FY2012.  

ü  Strategic    product  development  rela6onships  with  global  brand  owners  and  packaging  companies  star6ng  to  convert  to  sales  contracts.  

ü  These  sales  contracts  are  typically  long  term  providing  robust,  recurring  and  more  predictable  earning  stream.  

ü  Sales  of  Cardia  Bioproducts  finished  goods  and  wholesale  trading  goods  to  Asian  customers  also  gaining  momentum.  

ü  Broad  porbolio  of  products  in  market  –  primed  for  growth.    

ü  Expansion  of  global  reach  through  network  of  own  business  resources  and  distributors.  ü  Cost  reduc6on  program  delivered  during  2013.    

2013 Highlights – Momentum Building

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Significant  progress  in  technical  development,  sales  and  commercialisa5on   F

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 Exclusive  annual  supply  contract  for  Shanghai-­‐Pudong    

Exclusive  supply  of  an  es1mated  $1.2  million  per  annum  of  Cardia  Biohybrid™  renewable  kitchen  waste  bags  to  approximately  20%  of  households  in  this  region.      

Breville  goes  green  with  Cardia  compostable  Juicer  bags    

Breville  Group,  a  global  designer  and  manufacturer  of  small  kitchen  appliances  will  purchase  and  market  Cardia’s  compostable  “juicer  bags”  as  part  of  its  Juicer  accessory  offering  to  consumers.    

Cardia  wins  $500K  hygiene  products  contract  for  American  market    

Annual  supply  deal  with  Mabesa,  a  leading  American  diaper  products  company.  Using  the  hygiene  films  made  from  Biohybrid™  technology,  the  American  diaper  products  company  now  offers  an  environmentally  sensi1ve  diaper  that  is  less  dependent  on  finite  resources.  

Key Developments: Sales Contracts with Market Leaders

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Key Developments: Partnerships and Product Launches

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Highland  Plas9cs    (USA)  

Custom  Bioplas9cs  (USA)    

Alto  Packaging  (ANZ)  

ECOCARE™  (AUS)  

Selected  Australian  retailers  commenced  retailing  of  Cardia  Bioplas9cs  waste  management  products    

Pancake  Parlour  Restaurants  (AUS)  

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Brazilian  Retailers    

Carrier  bag  sales  to  Brazilian  retailers  commenced  with  annual  supply  agreements  under  nego1a1on.  Several  Brazilian  States  are  currently  formalising  legisla1on  on  carrier  bags  and  packaging.  Significant  growth  poten1al.  

Compostable  Waste  Management  Products    

Compostable  waste  management  products  sales  strengthen  in  Australia,  Europe  and  North  America  due  to  upcoming  regulatory  changes.  Significant  growth  poten1al.    

 Organic  Waste  Diversion  in  Malaysia    

Malaysia  organic  waste  management  trials  approved  by  Government  Authori1es  with  purchase  orders  awai1ng  release.  Significant  growth  poten1al.          

Key Developments: Contracts under negotiation

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Global  consumer  goods  company    

Validates  Cardia’s  product  and  market  poten1al.  Cri1cal  step  towards  global  commercialisa1on.  Significant  growth  poten1al.  

 Ci9es  of  Nanjing,  Hangzhou,  Yuhang      

Biohybrid™  kitchen  waste  bags.  Trials  successfully  completed.  Annual  supply  agreements  under  nego1a1on.  Significant  growth  poten1al.      Biohybrid™  container  for  nutri9onal  supplement  and  cosme9cs  market      

Key Developments: In-market validation

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 Cardia  Bioplas6cs  receives  Halal  cer6fica6on    

Opens  up  supply  to  1.6  billion-­‐strong  Muslim  community.  

 Cardia  Biohybrid™  films  tailored  for  water  distribu6on  industry    

Cardia  developed  proprietary  Biohybrid™  packaging  films  for  the  water  distribu1on  industry  with  sales  commenced  in  Australia,  Canada  and  Europe.

Key Developments: Advances in patented technology

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FY2013   FY2012   Commentary  

Sales Revenue  

$5,050,075   $4,301,143   17% growth. Secured long-term sales contracts for finished goods. Growth in traded goods to Asian customers.  

Gross Profit   $545,654   $560,660   Gross profit margin reduced to 11% due to lower traded goods margins and partially outsourced production of Chinese Council business. Margin uplift expected with increasing sales from higher margin finished goods and long-term resin contracts.  

EBIT from operating business  

($1,621,095)   ($3,909,406)   Cost reduction program implemented, higher other income, lower depreciation.  

NPAT   ($3,060,140)   ($4,659,660)   Impacted by $1.4M impairment of intangible assets  

Financial Results Overview

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Bioplastics Industry and Outlook Ø Global  plas6cs  packaging  market  worth  $200B  in  2011  and  con6nuing  to  grow  

Ø Market  demand  for  Bioplas6cs  is  growing  strongly  

Well  posi5oned  to  capitalise  on  the  increasing  trend  towards  sustainable  &  ‘green’  packaging  

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Source: European Bioplastics Industry Report 2012

Growth  driven  by:    

-­‐  Concerns  about  oil  as  finite  resource  with  vola6le  pricing  

-­‐  Growing  concerns  about  carbon  footprint  and  green  house  gas  emissions  

-­‐  Government  legisla6on  and  taxes  -­‐  Major  consumer  goods  companies,  global  

brands,  retailers  and  consumers  looking  for  sustainable  solu6ons  

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Cardia’s Business Development Cycle

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

Ø  Target  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  global  commercialisa6on  –  will  underpin  future  business  growth.  

Revenue Development Market Trials Targeted

Commercialisation Full

Commercialisation

Cardia Product Portfolio

1-5 years

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Partnering with Leading Brand Owners

Cardia  is  now  in  global  commercialisa5on  phase  and  has  executed  sales  with  some  of  the  world’s  best  known  and  most  reputable  businesses  

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Global Majors Validate our Products

Proven  produc5on  processes  with  leading  mul5na5onal  packaging  manufacturers    

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Patents & International Accreditation

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Cardia  has  developed  and  retains  a  strong  IP  por[olio:    100  patents  submiXed  and/or  registered  for  Bioplas1c  resins  &  packaging  products    Interna9onal  Accredita9on  

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

•  Food  contact  approval  in  Europe  and  USA  •  Halal  Cer6fica6on  •  Cardia  Bioplas6cs  China  business  cer6fied  to  China  Environmental  Standard  •  Cardia  Bioplas6cs  Malaysia  business  awarded  BioNexus  Status  

 

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Applications Australia NZ

China USA/Canada

Brazil Europe Malaysia

Carrier Bags ✔ ✔✔ ✔ ✔✔✔ ✔ ✔

Packaging ✔✔ ✔ ✔✔✔ ✔ ✔✔ ✔

Waste management products

✔✔✔ ✔✔✔ ✔✔ ✔✔ ✔✔

✔✔✔

Cardia’s Global Activities

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•  Only  ASX-­‐listed  stock  focused  on  Bioplas6cs.  

•  Strong  IP  and  patent  posi6on  on  technology  and  high  performance  products.  

•  Strategic    product  development  rela6onships  with  global  brand  owners  and  packaging  companies  star6ng  to  convert  to  sales  contracts.  

•  These  sales  contracts  are  typically  long  term  providing  robust,  recurring  and  more  predictable  earning  stream.  

•  Global  sales  of  Cardia  waste  management  products  to  Councils  for  organic  waste  diversion.  

•  Low-­‐cost  to  upscale  capacity  &  quick  pay  back  on  capital  equipment  investment.  

•  Rapidly  growing  global  industry  with  suppor6ve  regulatory  environments  /  Government  bodies.  

•  Highly  focused  management  team  with  interna6onally  recognised  industry  experts.    

 

Investment summary

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