CREATING BEST-TASTING SOLUTIONS...CREATING BEST-TASTING SOLUTIONS Interim Results 2019 Presented by...

©PURECIRCLE 2019

CREATING BEST-TASTING SOLUTIONS

Interim Results 2019

Presented byMagomet MalsagovRakesh Sinha

12 March 2019

©PURECIRCLE 2019

DISCLAIMER

• This document, which is personal to the recipient and has been issued by PureCircle Limited (the “Company”), comprises written materials/slides for presentations to be held in September 2017. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company.

• This document has not been verified, does not purport to contain all information that a prospective investor may require and is subject to updating, revision and amending. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. In furnishing this document, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this document or to correct any inaccuracies in, or omissions from, this document that may become apparent.

• No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

• This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. This presentation is for information purposes only and is directed only at, in the United Kingdom, qualified investors who are persons who (i) have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

(the “Order"); (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc") of the Order; or (iii) are persons to whom it may otherwise be lawfully communicated (all such persons together being referred to as "Relevant Persons"). By attending the presentation to which this document relates or by accepting this document, you will be take to have represented, warranted and undertaken that you are a Relevant Person.

• Certain statements, beliefs and opinions in this document, are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

• By attending the presentation to which this document relates or by accepting this document in any other way you agree to be bound by the foregoing provisions.

©PURECIRCLE 20193

Presented by

Magomet Malsagov, Chief Executive Officer

OVERVIEW

©PURECIRCLE 2019

CHIEF EXECUTIVE’S OVERVIEW

• Implementation of new strategy centred around best tasting products from Starleaf™ continues to gain momentum

• Scaled & Commercialised our new technology to convert RebA to RebM

• Results include sale of meaningful quantities from next generation stevia sweeteners based on Reb M both directly extracted fromleaf and via conversion of first generation stevia

• Customers are switching and reformulating to Reb M due to the superior taste profile

• Reformulations have led to some cannibalisation of base business and the results of the first six months should be seen in this context. The pipeline is healthy.

• Sufficient production capacity of Reb M to sweeten circa 1 billion cases of zero-calorie carbonated soft drinks annually

• Food and Beverage launches containing best tasting products from Starleaf™ including new channels and notable brands

• Restructuring and significant strengthening of the go-to-market organisation initiated and will be completed in H2

$50.7m39.2%

+240bps

$2.9m

+6.9m

Interim Revenue

Adj.EBITDA Gross Margin UnderlyingNet Profit

$11.6m

+49%$8m$25m

Gross Debt Reduction

Exceptional Items

©PURECIRCLE 2019

FOOD AND BEVERAGE INDUSTRY: In need of sweetener innovation

• Global obesity crisis • Sugar tax (passed/proposed)• Activist advocacy groups

• Good for me• Good for others• Good for the planet

proposed new label

highlighting calories and added

sugars

• Sugar• Artificial sweeteners

RISING PUBLICHEALTH CONCERNS

CONSUMERS REDEFINEHEALTH & WELLBEING

SWEETUNDER FIRE

©PURECIRCLE 20196

Evolution of StrategyStarleafTM Stevia

©PURECIRCLE 2019

WHY REB M? From a range of options, we believe that Reb M sweeteners combine the best of consumer needs with customer requirements of price & capacity

7

NaturalConsumer

AcceptanceTaste CapacityRegulatory ApprovalPrice

Reb M (extract)

GMO Reb M

Reb A (extract)

Artificial Sweeteners

HFCS

Reb M (bioconversion)

Reb M (extract)

Reb M (GMO/fermentation)

Reb A (extract)

Monk Fruit

Artificial Sweeteners

HCFS

Sugar

©PURECIRCLE 20198

Stevia Leaf Composition Getting to the Best Stevia Sweeteners

STEVIA LEAF – THE SOURCE OF INNOVATION

Steviol Glycosides

ProteinsFibers

Antioxidants REB M, D

Other glycosides

Original Strategy (Reb A) New Strategy

REB MREB M

©PURECIRCLE 20199

WHAT CAN PURECIRCLE’S LATEST INNOVATIONS DELIVER TO OUR CUSTOMERS

Customer + PureCircle

Cost Savings

COST & CAPACITY

Social Responsibility

FARMERS, WATER, LAND

Growth

TASTE

Calorie Reduction

INNOVATION

©PURECIRCLE 2019

…………….………….………….………….…………….…………..…………….…………..................FEEDBACK FROM OUR CUSTOMERS AND THEIR DEVELOPERS IS VERY POSITIVE

10

‘Such a big difference in taste vs. using Reb A’

‘We are finally able to formulate without any aftertaste’

‘You can really taste the difference’

©PURECIRCLE 2019

CONSUMER DEMAND DRIVES STEVIA LAUNCHES WITH REB M EMERGING

11

Global new product launches with stevia Reb M Sweeteners are taking off in a range of categories

75% of launches

occurred in the past 5

years

280478

1,163

2,278

2,963

4,410

'09 '10 '12 '14 '16 '18

MEA +33% -7%

LTAM +40% +33%

NTAM +12% 21%

Europe +13% +26%

APAC +19% +48%

5 yr CAGR 1yr

Total +19% +33%

Years are calendar years

Project gestation period from inception to launch is shorter for RebM than RebA due to superior taste

©PURECIRCLE 201912

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY



Growth

TASTE


©PURECIRCLE 2019

GROWING AROUND THE WORLD

13

North Carolina Americas Africa India China

China Africa Paraguay

Suppliers 98 30 325*

Regions 11 3 1

Varieties 3 2 1

*Small scale farmers

©PURECIRCLE 201914

VERTICAL INTEGRATION AND SUPPLY CHAIN INNOVATION MEANS THAT WE CAN NOW SCALE UP REB M PRODUCTION

1 BillionSeedlings

Scaling Reb M

Seedlings Dry Leaf

20,000 MTDry Leaf

3,000 MTReb M

Reb M CapacitySeedling to Finished Product

$600M Investment

TODAY: 3,000 MT Reb M

2 Refineries

*Reb M refers to extract and bioconversion process

©PURECIRCLE 201915

3,000 METRIC TONS OF REB M WILL:

20+ BN Cases

7 Trillion Calories by

replacing sugar with stevia across

3,000 MT

2 MillionMT Of Sugar

At 15% sweetness levels

4.5 BN Cases

1 BN Cases

@ 30% Sugar Reduction

Reduce Sugar Across

Remove Eliminate

@ 100% Sugar Reduction @ 15% Sugar Reduction

©PURECIRCLE 2019

PURECIRCLE REB M OFFERING IS COMPETITIVE AND WILL HELP CUSTOMERS SAVE COST GOING FORWARD

16

$75

$100

$125

$150

$175

300 MT 1000 MT 3000 MT

Reb M SweetenerPrice / Volume

Reb M Sweetener

©PURECIRCLE 2019

PURECIRCLE’S REB M CAN PROVIDE UNPARALLELED COST SAVINGS TO OUR CUSTOMERS

17

Attract New ConsumersReformulation

$600 Million

From switching from sugar to

steviausing 3,000 MT

Save

While Investing For Growth

Innovation

©PURECIRCLE 201918

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY



Growth

TASTE


©PURECIRCLE 2019

REDUCE CALORIESCARBONFOOTPRINT

WATERFOOTPRINT

GLOBALFARMERS

LAND USE

Save25,000+ hectaresannually

Support30,000+Farmersannually

Remove7 Trillioncalories as

compared to sugar equivalence

Reduce600,000 MT

Of Green House Gasses

Save1 Trillion

Liters of Water

PURECIRCLE CAN HELP OUR CUSTOMERS WRITE NEW SUSTAINABILITY STORIES

Using 3,000 MT of RebM could:

©PURECIRCLE 201920

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY



Growth

TASTE


©PURECIRCLE 2019

21

Portfolio of Reb M Products Beyond Sweeteners

+ Improved solubility

+ Wider range of cost options

+ New beverage applications

+ Proteins, antioxidants, & fibers

+ Nutrition and health benefits

+ Support innovation brands

WE ARE ALWAYS INNOVATING ACROSS OUR SUPPLY CHAIN

©PURECIRCLE 201922

FINANCIALREVIEW

Presented by

Rakesh Sinha, Chief Financial Officer

©PURECIRCLE 2019

Revenue

Gross Profit

Gross Margin %

US$ (millions)

Other income

SG&A

Operating Profit

Operating margin %

Other Expenses

Finance Costs

Taxation

Share of Profit/(Loss) in JV

Forex

Net (Loss)/Profit

Net Profit %

PROFIT & LOSS FY2019Margins improve with increased Breakthrough volumes

1H FY19 1H FY18

EPS – Diluted (US Cents/Share)

Adjusted EBITDA

53.5

19.7

36.8%

0.5

(17.1)

3.1

5.7%

(2.5)

(3.2)

(2.2)

(0.4)

1.2

(4.0)

-7.5%

2.3)

7.8

50.7

19.9

39.2%

6.0

(14.7)

11.2

22.1%

(30.0)

(4.7)

3.2

(0.0)

(1.8)

(22.1)

-43.6%

(12.6)

11.6

• FY19 sales decreased by $2.8m (-5.2%) to $50.7m due to sales phasing and adoption of RebMcannibalising base business

• Improved Gross Margin by 240bps driven by category mix i.e. more Breakthrough

• Higher other income due to R&D and IP related payments.

• SG&A savings from restructuring and cost savings initiatives.

• Significant inventory write down of $24.2m primarily relating to by-products generated from early generations of stevia leaf. Classified as an exceptional item.

• Higher finance costs due to higher drawdown on financing facilities.

• Deferred tax assets recognised due to recent change in Malaysian tax regulations – this will reverse by year end

• Forex loss due to weakened Malaysian Ringgit vs USD

• Adjusted EBITDA improved 48.7% to $11.6m,.

• Net Loss of $22.1m due to inventory write down. Underlying Net Profit for the period excluding exceptional items is $2.9m

©PURECIRCLE 2019

Asia, 11%

Europe, 43%

Americas, 46%

Revenue Mix by Geographic Region

Asia, 18%

Europe, 31%

Americas, 51%

Revenue Mix by Geographic Region

DIVERSIFIED REVENUE STREAMSH

1 FY

18H

1 FY

19 Basic Ingredients

40%

Value Added17%

Flavour32%

Breakthrough6%

Custom Blend

5%

Revenue Mix by Product Category

Basic Ingredients

43%

Value Added22%

Flavour31%Breakthrough

3%

Custom Blend1%

Revenue Mix by Product Category

• Growth from next generation, better tasting stevia sweeteners represented in Breakthrough category, driving margins

• Breakthrough grew 1.7x and Custom Blends grew 5x

• Sales growth continues to be achieved in North America and Asia

• Strong growth of 14% in North America

• Asia delivering high double digit growth >75%

©PURECIRCLE 2019

NON – CURRENT ASSETS- Property Plant & Equipment- Intangible Assets- Other non-current assets

TOTAL EQUITY

TOTAL LIABILITIES & EQUITY

BALANCE SHEET

NON - CURRENT LIABILITIES- Long-term borrowings- Other payables & accruals

CURRENT ASSETS- Inventories- Trade Receivables- Cash and bank balances- Other current assets

TOTAL ASSETS

CURRENT LIABILITIES- Trade payables- Short-term borrowings- Other payables & accruals

TOTAL LIABILITIES

200.0

354.5

178.8112.237.714.614.3

354.5

109.0106.5

2.5

45.517.0 11.716.8

154.5

US$ (millions) FY19 FY18• PPE: Depreciation

• Intangibles: Investment in leaf development, IP and R&D

• Other non-current assets improved with the recognition of deferred tax assets

• Inventories: Decrease due to net realisable value write down of $24.2m

• Trade receivables: continued improvement in receivables management.

• Trade Payables: longer credit with suppliers

• Net debt: $103.5m

226.4

389.6

212.3122.557.523.98.4

114.9112.9

2.0

48.320.5 9.2

18.6

163.2

389.6

175.796.063.116.6

177.3100.1

64.113.1

©PURECIRCLE 2019

Operating cash flow beforeworking capital changes

US$ (millions) 1H FY19 1H FY18

10.5

Increase in inventories

Decrease in trade and other

receivables

(Decrease)/Increase in trade and other payables

(13.9)

17.9

(6.7)

Net cash from operationsbefore interest and tax 7.8

Net cash from operations afterinterest and taxInvesting activities

Financing activities

3.2(6.2)

(5.0)

Net cash flow (8.0)

Gross cash

Headroom

14.6

79.7

Operating cash flow before working capital improvement of +$2.8m

NET OPERATING CASH FLOW OF $7.8M

7.7

(22.2)

15.9

1.6

3.0

0.2(14.2)

5.3

(8.7)

28.0

93.0

• Operating cash flow before working capital remains positive

• Inventories increased mainly due to leaf purchases in preparation for H2 (seasonality)

• Strong receivables management

• Investing mainly R&D projects and capex additions

• Financing: Repayment on the banking facilities.

©PURECIRCLE 201927

SUMMARY & OUTLOOKSignificant opportunities for growth

©PURECIRCLE 2019

SUMMARY & OUTLOOK

Our new StarleafTM strategy, which enables us to provide the best tasting solutions for our food and beverage customers looking to reduce sugar naturally is on track

Positive feedback about great taste profile of our next generation stevia Reb M sweeteners.

Pipeline of projects with new products continues to grow in both existing and new channels.

Expect margins to strengthen as both reformulations and new launches will primarily be based on high margin products.

Sales to date in H2 show an improving trend versus the prior year

Everything we do is about helping our customers achieve their goals of reducing sugar/calories/cost of ingredients without compromising taste through high purity stevia solutions

©PURECIRCLE 201929

Q&A

©PURECIRCLE 201930

AppendixGreatest tasting stevia

©PURECIRCLE 2019

HOW WE CREATE VALUE

We have successfully commercialised a portfolio that includes natural sweeteners, flavours and specialty ingredients based on high purity stevia.

PureCircle has deep expertise across the value chain, from seedling to sweetener.

Research & Development (R&D)Multi-disciplinary approach spanning plant breeding, agronomy, biotechnology, biochemistry,

food technology and sensory analysis

Commercialisation• Scientific and Regulatory Affairs

• Sales & Marketing

©PURECIRCLE 2019

WE TAKE MEASURES TO PROTECT OUR IP

• 32 new patents granted in last 12 months

• 150 granted patents and c.295 pending patent applications worldwide:

–Steviol glycosides production (extraction, new sweetener technology, fermentation etc.)

–Steviol glycosides sweetener and flavor compositions–Steviol glycosides use and applications–Stevia varieties

©PURECIRCLE 201935

STEVIA LEAF HAS MORE TO OFFER THAN REB A• 40+ Steviol glycosides in the leaf

• Taste synergies

• Each with unique attributes

©PURECIRCLE 2019

WE ARE SCALING UP STARLEAFTM:Traditional, non-GMO, intelligent plant breeding

Conventional Variety2002

StarleafTM SteviaVariety2017

>20x most sugar-like glycosides

(Reb M, Reb D, others)vs. conventional leaf

PureCircle Reb A Variety2010

7x Reb A vs. conventional leaf

©PURECIRCLE 2019

New Technology

• As stevia matures from seedling to full-grown plant, the sweet parts of the stevia leaf (called glycosides) are formed.

• The leaf naturally produces enzymes which convert Reb A to Reb D and then to Reb M.

• We start with purified stevia leaf extract with low Reb M and, by adding enzymes, the maturation of Reb M is completed, just as the leaf does naturally.

• This produces a non-GMO stevia leaf sweetener with high sweetness quality and no bitterness.

Approvals

• USA

• Canada

• Ecuador

• Peru

• Columbia

• Malaysia

Fema approved as a Flavor (Global)

In Progress:

• Australia (estimate 2019)

• NZ (estimate 2019)

• EU (estimate early 2020)

• JECFA (estimate end of 2020)

• China (estimate 2020)

• Brazil (estimate 2020)

NEW REB M SWEETENER TECHNOLOGY

FY2018Reb M Sweeteners

• Launched StarleafTM Reb M which produces Reb M from other stevia sweeteners in the plant

• Reb M is the variant of stevia sweetener which has the most sugar-like taste.

• PureCircle has enough Reb M to sweeten 500M cases of zero-calorie CSDs

• Targeting to double capacity of Reb M in 3 years

©PURECIRCLE 2019

• Worldwide obesity has more than doubled since 1980.

• In 2014, 1.9+ billion adults were overweight. Of these 600+ million were obese.

• Estimated that Worldwide diabetes will impact 1 in 10 adults by 2045 – 629 million.

• Consumers seeking natural sustainable sources for their sweeteners.

http://www.who.int/mediacentre/factsheets/fs311/en/http://www.diabetesatlas.org/, 7th Ed.

CONSIDERABLE GROWTH In the stevia market

• Stevia approved in Brazil and India. Now 5 billion consumers have access to stevia.

• Sugar taxes being imposed in major markets.

• As of 2018, 80% of the countries that passed taxes did so in the last two years.

• F&B industry now publicly committing to reduce added sugar and artificial sweeteners from their product portfolios.

• Stevia increasingly being used as part of the solution.

• Mintel report: > 17,000 products now launched with stevia: > 80% within the last four fiscal years.

• All major F&B categories now adopting across all geographic regions.

Global obesity and diabetes continue to

increase

Potential of stevia market materially enhanced

Growing number of products adopting stevia

Growth prospects for the market has grown considerably versus 12 months ago

http://www.who.int/mediacentre/factsheets/fs311/en/

http://www.diabetesatlas.org/

©PURECIRCLE 2019

Rising Public Health Concerns On Obesity & Diabetes Are Driving Increased Government Engagement Globally

* N.B. Unverified content – for guidance only.

Soft drink taxes in effect

BarbadosBelgiumBruneiCambodiaChileDominicaFijiFranceHungaryIrelandLaosMauritiusMexicoNauruNorwayPeruPhilippines

US Cities• Albany• Berkeley• Boulder• Oakland• Philadelphia• San Francisco• Seattle• Washington

Taxes Proposed/raised for discussion

AustraliaCanadaIndiaIndonesiaMalaysiaSingapore

New ZealandUAEVietnamRussiaSaudi Arabia

• Warning Label/Nutrition Label in Effect

AlgeriaCanadaBruneiEcuadorEgyptMalaysia

PortugalSamoaSt. HelenaThailandUKSouth AfricaSpain Sri LankaTurkey

PeruPortugalSingaporeTaiwanUK

©PURECIRCLE 2019

– Joint (FAO & WHO) Expert Committee on Food Additives (JECFA) approved all Steviol Glycosides (50+) , including minor sugar-like tasting molecules from stevia leaf and published the amended specification (JECFA 20) in December 2017.

– Codex Alimentarius adopted the amended SteviolGlycoside specification in July 2018, which facilitates the approval of sugar-like tasting molecules from stevia leaf in major Latin America, Asia and Africa markets in near future.

– At present, all Steviol Glycosides from Stevia leaf can be used in the food & beverage applications in the US, Canada, Australia, New Zealand, Israel, Brazil;, Thailand, Vietnam, Singapore, Nigeria, etc. other authorities will follow.

– Reb M & Reb D derived from Reb A in Stevia leaf extract is approved in the US, Canada, Mexico and a few other countries. Other authorities and JECFA are evaluating the products for approval.

– New flavors with Reb M, Reb E, and other glycosides are approved by FEMA in 2017-18

REGULATORY PROGRESS In expanding the use of stevia

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