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ECOSYNTHETIX INC Jeff MacDonald| CEO Rob Haire | CFO Q2 2026 Earnings Results July 29, 2026
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FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. These statements relate to, but are not limited to, future events or future performance, our expectations regarding the Company’s growth, results of operations, estimated future revenues, and requirements for additional capital, production costs, future demand for latex- based products, business prospects and opportunities, our ability to successfully commercialize our products, expectations as to the amount of reduction that the Company’s products may have on a manufacturer’s carbon footprint. Forward-looking statements are often, but not always, identified by use of words such as ‘‘may’’, ‘‘will’’, ‘‘should’’, ‘‘could’’, ‘‘seek’’, ‘‘anticipate’’, ‘‘contemplate’’, ‘‘continue’’, ‘‘expect’’, ‘‘intend’’, ‘‘plan’’, ‘‘potential’’, ‘‘budget’’, ‘‘target’’, ‘‘believe’’, ‘‘estimate’’ and similar expressions. The forward-looking statements in this document include, but are not limited to, statements regarding the Company’s expected product pipeline, plans to expand the Company’s business into new markets, the Company’s ability to achieve organizational efficiencies, and other statements regarding the Company’s plans and expectations in 2026. Such statements reflect our current views and beliefs with respect to future events, are subject to risks and uncertainties, and are based upon several estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Those assumptions and risks include, but are not limited to, the Company’s ability to successfully allocate capital as needed and to develop new products, as well as the fact that our results of operations and business outlook are subject to significant risk, volatility, and uncertainty. Many factors could cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. We have made material assumptions regarding, among other things: that our intellectual property rights are adequately protected; our ability to obtain the materials or services necessary for the production of our products; our ability to convert prospects from the industrial trial phase into full commercial customers; our ability to market products successfully to our customers; that we will continue to possess unique intellectual property rights; changes in demand for and prices of our products or the materials required to produce those products; labour and material costs remaining consistent with our current expectations; the price and availability of substitute or competitive products; and that we do not and will not infringe third party intellectual property rights. Some of our assumptions are based upon internal estimates and analysis of current market conditions and trends, management plans and strategies, economic conditions and other factors and are necessarily subject to risks and uncertainties inherent in projecting future conditions and results. Some of the risks that could affect our future results and could cause those results to differ materially from those expressed in the forward-looking information include, among other things: the impact of the conflict in Ukraine including the potential expansion of the conflict into other countries or regions; the availability and price of natural feedstocks used in the production of our products; changes in government regulations and policies relating to our business; agricultural risks that could impact crop yields and bio-based materials; dependence on certain customers and changes in customer demand; credit and concentration risk associated with cash and cash equivalents as well as accounts receivable; the inability to effectively expand our production facilities; the risk of volatility in global financial conditions, as well as significant decline in general economic conditions; increase in industry competition; a significant decrease in the market price of petroleum related feedstocks; inflationary pressures that may affect labor, raw materials, energy, agricultural commodities and other input costs; fluctuations in energy costs used to run production facilities; variations in our financial results; our ability to effectively commercially market and sell our products; the inability to retain key personnel; the inability to develop new technologies and products; company growth and the impact of significant operating and capital cost increases; insufficient product liability insurance; an inability to protect, defend or use our intellectual property and/or infringement of third-party intellectual property; enforcement of intellectual property rights; the ability to acquire intellectual property; the risk of litigation with respect to intellectual property and other matters; our ability to protect our know- how and trade secrets; changes to regulatory requirements, both regionally and internationally, governing development, production, exports, taxes, labour standards, waste disposal, and use, environmental protection, project safety and other matters; the impact of infectious disease outbreaks on our business; a shortage of supplies, equipment and parts; a breach in cyber- security; artificial intelligence and emerging technology; changes in the current political and regulatory environments in which we operate; the inability to secure additional government grants; a deterioration in our cash balances or liquidity; the inability to obtain equity or debt financing; the impact of issuance of additional equity securities on the trading price of the common shares; the impact of ethical, legal and social concerns relating to genetically modified organisms and the food versus fuel debate; the risk of business interruptions; the impact of volatile market price for common shares; the impact of changes in interest rates; the impact of changes in foreign currency exchange; losses from hedging activities and changes in hedging strategy, as well as the factors identified in the “Risk Factors” section of the Company’s Annual Information Form dated February 17, 2026. Such factors are not intended to represent a complete list of the factors that could affect us. These factors should be considered carefully, and prospective investors should not place undue reliance on forward-looking information. IFRS and Non-IFRS Measures This MD&A makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of the results of operations of the Company from management’s perspective. Accordingly, they should not be considered in isolation or as a substitute for analysis of the financial information of the Company reported under IFRS. We use non-IFRS measures such as Adjusted EBITDA to provide investors with a supplemental measure of operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess its ability to meet its capital expenditure and working capital requirements. Adjusted EBITDA as presented herein is not a recognized measure under IFRS and should not be considered as an alternative to operating income or net income as measures of operating results or an alternative to cash flows as measures of liquidity. Adjusted EBITDA is defined as consolidated net income (loss) before interest, income taxes, depreciation, amortization, impairment loss on property, plant and equipment (PP&E), gain or loss on disposals of PP&E, accretion, and other non-cash expenses deducted in determining consolidated net income (loss). ECOSYNTHETIX INC. 2
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$(0.4) $0.0 $(0.2) $1.0 Q2 2025 Q2 2026 H1 2025 H1 2026 $0.2 $(0.2) $(0.3) $(0.5) Q2 2025 Q2 2026 H1 2025 H1 2026 $5.0 $4.5 $9.0 $8.3 Q2 2025 Q2 2026 H1 2025 H1 2026 CONTINUATION OF SOFTNESS FROM Q1 2026 Net Sales Adj EBITDA (loss) Cash provided by operating activities 9% (USD millions) ECOSYNTHETIX INC. 3 TOPLINE PRESSURE DUE TO LOWER SALES VOLUMES FROM TWO STRATEGIC ACCOUNTS 8%
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4ECOSYNTHETIX INC. Proven value proposition Generating strong interest from end markets Strong prospect pipeline Positioned with the right accounts as market dynamics normalize
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HISTORICAL PRICE SPREAD: SOFTWOOD VS. HARDWOOD FIBRE 5 North American pricing near parity in July Gap between softwood and hardwood fibre is structural Consistent imbalance of high-cost softwood fibre and lower cost hardwood fibre Historical average pricing gap ≥$270/t North American NBSK vs. BEK ($/t) Price Gap 0 100 200 300 400 500 600 J-19 J-20 J-21 J-22 J-23 J-24 J-25 J-26 7-year average ECOSYNTHETIX INC.
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TOP 10 GLOBAL PULP PRODUCER LEAD CUSTOMER ECOSYNTHETIX INC. 6 Pulp producer sells into a range of downstream applications Next-generation hardwood pulp using SurfLock with proven performance profile Account has reported consistent increases in pipeline since deploying SurfLock early last year Reported high trial success rate on technical performance SurfLock improves strength and delivers cost reductions through use of lower cost fibres SurfLock addresses long-term supply gap for stronger long fibre in market
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TOP 15 GLOBAL TISSUE PRODUCERS (Million tonnes per annum, est. market pulp capacity) TOP 15 GLOBAL PULP COMPANIES ECOSYNTHETIX INC. 7 0 3 6 9 12 15 Cenibra Mercer Sappi Sodra Cell Stora Enso Ilim Pulp IP Domtar (PE) APP Metsa Fibre CMPC APRIL + Bracell Arauco UPM Suzano Source: Hawkins Wright, 2025/2026 industry benchmarking. Market pulp capacity including hardwood and softwood volumes. 0 1 2 3 4 5 6 First Quality Vinda Arbex Kruger WEPA Metsa Tissue Lee & Man CMPC Hengan Kimberly-Clark NA Georgia-Pacific Asia Pulp & Paper Sofidel P&G Essity (Million tonnes approximate per annum) Source: Capacity estimates are rounded from public company disclosures, Tissue World, Fastmarkets/RISI industry data, and company announcements. 1) Arbex is the Suzano and Kimberly-Clark International Tissue JV. 1
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BUILDING MOMENTUM IN PULP-BASED END MARKETS WITH OUR STRENGTH AIDS ECOSYNTHETIX INC. 8ECOSYNTHETIX INC. 8 Successful extended trial at top 5 global tissue producer Begun work on two new additional lines One of the most progressive manufacturers in the tissue end market, represents flagship customer opportunity Distribution partners generating significant trial activity Healthy and robust trial pipeline, including North American prospects
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DuraBind the clear incumbent in the bio-based glue market WOOD COMPOSITES PROGRESS: ECOSYNTHETIX INC. 9 Demand from first mill lower in Q2 2026 and into Q3 as expected, unrelated to performance of DuraBind Focused on low-cost, simplification strategy Senior leadership remains committed to their sustainability goals Continue to invest in short and long-term development projects with us to create even stronger, more permanent economic advantage over conventional glues
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INTERNATIONAL RETAILER’S PRIMARY CLIMATE FOCUS: HALVE GHG EMISSIONS ACROSS VALUE CHAIN BY 2030 1 10 Source: https://www.ikea.com/global/en/our-business/sustainability/our-circular-agenda/ 1) From a base year of 2016
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Clear commitment and belief from Dow in all-natural ingredients opportunity long-term Order pattern normalized in Q2 after inventory drawdown in Q1 Dow expects growth in 2026 on top of the growth in 2025 Dow continues to grow and expand MaizeCare program ECOSYNTHETIX INC. 11 ALL-NATURAL POLYMERS IN PERSONAL CARE
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US$29.1 MILLION IN CASH AND SHORT-TERM INVESTMENTS (06/30/26) USD millions (except gross margin) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Net Sales $4.5 $5.0 $8.3 $9.0 Gross Profit $1.3 $1.4 $2.2 $2.3 Gross Margin 28.6% 28.4% 26.8% 25.3% Gross Margin adjusted for manufacturing depreciation 34.0% 33.0% 32.5% 30.4% Adjusted EBITDA1 (loss) ($0.2) $0.2 $(0.5) $(0.3) 1) Adjusted EBITDA is defined as consolidated net income (loss) before interest, income taxes, depreciation, amortization and other non-cash charges deducted in determining consolidated net income (loss). ECOSYNTHETIX INC. 12 Q2 2026 FINANCIAL SUMMARY
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OPERATING COST STRUCTURE Selling, General & Administrative (USD, millions) Research & Development (USD, millions) SR&ED TAX CREDITS LOWERED R&D INVESTMENT $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $- $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 ECOSYNTHETIX INC. 13
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$(1.2) $(1.0) $(0.8) $(0.6) $(0.4) $(0.2) $- $0.2 $0.4 $0.6 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 ADJ EBITDA IMPROVED SEQUENTIALLY Quarterly Adj EBITDA (USD millions) ADJ EBITDA & CASH FLOWS HELD UP DESPITE HEADWINDS ($0.2) -$9.0 -$8.0 -$7.0 -$6.0 -$5.0 -$4.0 -$3.0 -$2.0 -$1.0 $- $1.0 $2.0 2015 2016 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Annual Cash Flows from (used in) Operations (USD millions) $1.0 ECOSYNTHETIX INC. 14 (negl.)
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ECOSYNTHETIX INC. 15 Repeatedly proven technical viability Our biopolymers delivering value for customers Expanded and deepened prospect pipeline Frustrating headwinds interrupting our momentum
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QUESTIONS & ANSWERS