Carbios Sa Act

Well, thank you very much and welcome, everybody. I'm very pleased to present you our results for 2023. 2023 was indeed a very exciting year for Carbio's development. So we had several good news. The first major milestone we achieved in 2023 was the signing of an exclusive strategic agreement with Novozymes, NovoNezis Oil, today. Novozymes is the largest enzyme producer in the world, and we have confirmed that Novozymes will produce and distribute carboxyl enzymes for our first plant in France, but for all the future licensing plants we will open in the world. So that was a very significant milestone for this exclusive partnership with Novozymes. Let's move on, please. We also had confirmation from the French state through the France 2030 programme and from the region where we are building the plant, which is the Grand Est region in the north-east of France, that we will receive significant non-dilutive subsidies. A total of €54 million has been granted to Carbio. This amount of subsidies would come in the in the coming years most of it would come in the coming years uh through um uh the milestones we are of construction of the plant but we are very pleased to have this these subsidies which is definitely a strong support and which shows the commitments of the french government to support carriers we have here a video of Mr. Macron, the French president, who testified in support of Carbios in December 2023. I don't know if we can put the video.

Carbios, you said it very well earlier, you recycle, you reduce emissions, you reduce dependence, and you allow us, in doing so, to get out of the oil field, It was a wonderful demonstration, I will not do it again here, but you are an illustration of what needs to be done. And so we must ask ourselves the same question for all mineral resources, that is to say our ability to preserve and recycle them.

So in 2023, we also signed a non-binding MOU with Indorama Venture, which testified the very strong interest of the PET industry into Carbios technology, Indorama being one of the largest PET producers, and Indorama willing to invest in the first plant in France with Carbios. So 2023 also marks some significant milestones in our innovation and development. In the month of April, we published our technological information summary from our demonstration plant. This is a very significant milestone because it shows that the technology which is installed works. It gives a lot of data on the process and its productivity and the quantity of products we can outcome. and it was a significant milestone to start not only to finalize the design of our first plant in Longueville but also to start the licensing approach which is key in the Carbios development and it was the key milestones to start this development of the technology and being able to contact the future potential licenses. Let's move on. So we also, in the month of September, did the inauguration of our new textile preparation line. Textile is absolutely very important in the Cabrio's strategy. We are capable of doing fiber-to-fiber depolymerization, and today you know that less than 1% of the textile is recycled fiber-to-fiber. So this is a huge opportunity for a carburetor development in all continents, and in particular in Asia. So with this preparation line, we are able to prepare the polyester post-consumer or post-industrial waste so that they can be prepared and taken by our depolymerization line. So that, my son, is very important for the upcoming development of CARBIOS technology. Next, please. so the the construction of our first plant is running on time we have um achieved to get the the permitting um in the in the record time for france which is 10 months we have already started the the work the preparation of the land is finished um and the the the the The contractualization of the DESMED company has been done to be able to build the plant. So the plant will have, I remind everyone, will have a capacity of 50,000 tons of PET, feedstocks, plastic and textile in that plant. The plant is located in the Longue-la-Ville city, which is at the border of Luxembourg, but on the French side in the Grand Est region. and we will operate with five shifts 24 hours that's creating about 150 new jobs between direct and indirect jobs so everything is running on schedule for this first plant which will deliver significant volumes to our brand owners to our customers in 2026 In terms of feedstock, which is an important part of securing the plant outcome, we have already contracted interesting contracts with CTO in France for the food trays. And we also announced a contract recently with a German group Land Bell to supply also some and to innovate on plastic feedstocks. At this stage, Carbios has secured 70% of the feedstocks needed for Longue-la-Ville and we continue to work on securing the full capacity for the time we will start the operation. In terms of licensing, things are progressing well. I just want to remind you that we have several targets. We are talking to PET producers across the globe. They are the most interested in our technology because we are the only technology which is fully plug and play to the PET production. We also are talking to chemical groups, which are very interesting in one of the two monomers we are producing, which is a PTA, teftalic acid. And we have also some interest from waste management companies, sometimes some brand owners directly or some sovereign funds in certain countries. So the key targets are there. The main targets we have developed very, very strongly are the producers and the chemical groups. Let's move on, please. So today we have put some presence, commercial presence in most of the key countries for the PET, our PET markets. We have people in many countries in the US, in North America, in China, in Korea, in Japan, in Taiwan, and we are covering Europe. And there are many countries where we have already advanced discussions for the licensing of our technology. Let's move on. So just to remind everyone the way Carbios revenues are going to be generated beyond the revenues from the first plant in Longue-la-Ville, which is a bit particular because we will be the majority shareholder of that plant. For the remaining part on licensing, we have three pillars of revenues. One is the licensing contracting, the licensing upfront model which generate upfront revenues for Carbios when we sign licensing and when we commission the plants for the licenses. And then when the plants of the licenses are operating, we have two big pillars of revenue. One on the enzyme, which is a kickback from Novozymes on selling the enzyme, which is the IP of Carbios. And the second one is the royalties we get from the licenses on the fact that they get a premium on selling the Carbios products. So that's the way the structure of revenue has been published already in our strategic update 2026. And that's the way these revenues are modelized by the analyst following Kavliost. So let's move on. So this is the vision of the revenue split of Carbios between 2026 and 2035. As you can see, we have at the beginning of Carbios significant revenues coming from the green bar, which are the revenues coming from the first plant. And also the upfront revenues, as I mentioned, which is the revenues we get when we sign and when we start to operate the licenses plants. Then with time, when the licensee plants will be operating, the royalty revenues will take over and will take the lion's share of our revenue. But we need obviously to have the plants operated before that dark blue line is growing. So that's the vision on the revenues of Carbios. One point I want to mention also is our biodegradation business, which is a Carbios active, is starting very positively. We have got the food grade approval in North America, and that's really the starting milestones to start revenue on this activity. This is the right bar on the graph. So in terms of innovation, we have announced several key milestones as well. We did a publication on the microfluidics, which is a technology that we have adapted to the plastic depolymerization, and basically which allows us to test millions of enzymes in a few hours. And this technology is used in other industries, but has been adopted by CARBIOS. And it's a true acceleration. At the beginning of CARBIOS, we were testing only a few hundred enzymes a day. Right now, we are able to test millions of enzymes a day. So that's a significant milestone for the development of future enzymes. Next slide, please. We also had significant publications in March 2023. We had a publication in Chemical Review on the work we did on our enzymes. And this is one of the most influential scientific journals in the world. And in October we had a publication on the comparisons of the Carbios enzyme compared to other enzymes which were published by other laboratories and which shows that there is a significant advantage for Carbios enzyme compared to any academic work which has been done so far. Our enzyme is 40 times more efficient than any other ones in terms of industrial application. So that was published in SAS catalysis. so what are the milestones for uh we have achieved and we will achieve so in term of um uh 2023 i will not repeat but we had the textile line which has started its operation we had the first fit stock contract and the start of the construction in 2024 we will complete the staffing the key staffing of the plant all the key people of the plant will be hired and starting their training In 2023, we started to staff North America and actually we were in advance on our milestones because we have already staffed Asia already in 2023. We said we would sign our first agreements on license in 2024. We are on path of doing that. We have major brand owners agreements on the volumes, which will be signed in 2024. We will open new consortiums in other industries beyond the one we have already in packaging and in textile. We will have new consortiums of players in other industries. And we will start the sales of our carbisactive PLA biodegradation solution in North America. In terms of R&D, in 2024, we will patent some enzyme work on new polymers. And as we have announced earlier, we are working beyond PET and PLA. We are working, for instance, on polyamides and on the polyolefins. And we will also organize the second round of our scientific summit where we organize several day meetings with all the key scientists in the world working on plastic depolymerization through enzymatic solutions. In terms of ESG, we have already achieved the percentage of independent board members and we will propose to the next General Assembly one more lady to join the board so that we will be above 40% female board member presence. This year, we are finalizing the ISO 14001 and 9001 for all our operations. And we will also get first circular LCA published in 2024. So that's the key milestones we are on track to get for 2024. So now I let the floor to our CFO, Pascal Bricoult, to come back on the results for 2023.