PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process

Disciplined scale up

Carbios 28 September 2016 Outlook

Carbios

Disciplined scale up

Company update

Alternative energy

28 September 2016

Price

€9.99

Market cap

€38m

Net cash (€m) 31 December 2015

8.8

Shares in issue

3.8m

Free float

11%

Code

ALCRB

Primary exchange

Alternext

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

0.9

(3)

(17.5)

Rel (local)

1.6

(12.8)

(17)

52-week high/low

€13.1

€9.1

Business description

Carbios develops enzyme-based processes for biodegradation and bioproduction of plastics, with a long-term aim of displacing current recycling and production practices.

Next event

H116 results

September 2016

Analysts

Catharina Hillenbrand-Saponar

+44 (0)20 3077 5700

Roger Johnston

+44 (020 3077 5722

Carbios is a research client of Edison Investment Research Limited

Carbios is demonstrating a disciplined scale up as it moves from research to industrialisation and commercialisation. Its depolymerisation technology could provide an answer to the key challenges of the plastics economy. Carbios has achieved key technology milestones and set up its first JV earlier than expected. We estimate the company is funded through 2017. Our base case fair value estimate is €26 per share.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

12/14

0.7

(3.3)

(59.3)

0.0

N/A

N/A

12/15

0.8

(4.0)

(81.3)

0.0

N/A

N/A

12/16e

0.6

(5.5)

(111.7)

0.0

N/A

N/A

12/17e

0.7

(4.4)

(93.1)

0.0

N/A

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Regulation and demand support plastics technology

Carbios’s biodegradation, biorecycling and bioproduction technology could provide disruptive solutions to the plastic economy. The company is developing processes for enzyme-based de-polymerisation of plastics for absorption into nature or re-polymerisation for renewed use. This could enable a circular economy of plastics. Tightening regulation combined with structural growth of plastics consumption support the company’s market prospects, particularly its key end markets: bags, bottles, agricultural films and rigid packaging.

Consistent progress: Research to commercialisation

Carbios has demonstrated strong execution with conclusion of the research phase, proof of technology, a string of successful technology deliveries, first production batches and an earlier than expected signature of its first joint venture in H116, in partnership with Limagrain.

Financials: Funded through pre-commercial stage

Carbios is still at the pre-revenues stage. It is funded by research grants until the end of the Thanaplast project in 2017. We forecast an increase in losses as the scale up leads to a growing cost base. For 2016, we forecast a net loss of €4.2m. With cash of €8.8m as of end June 2016 and forecast net cash outflow of €8m for 2016-17, we estimate the company is funded through 2017. It will then have to secure follow-on funding and/or produce commercial revenues.

Valuation: €23-37 per share

As Carbios is at a very early stage, we find a DCF methodology with risk-weighted cash flows is appropriate in order to reflect uncertainty over size and timing of cash flows. We value Carbios on a SOTP approach for the most important processes. We model each process to 2030. This yields a fair value of €23-37 per share based on a range of discount rates, with the base case value of €26 (WACC of 20%). PET, as the most advanced process, is the most important component, accounting for 53% of our fair value.

Investment summary

Company description: Solutions for plastics

Carbios develops enzyme-based processes for biodegradation, biorecycling and bioproduction of plastics, based on de-polymerisation of monomers and subsequent re-polymerisation. This will lead to self-destroying plastics that can either be absorbed in nature without residues or re-polymerised for renewed usage. Situated between industry and academia, it is the leader of the Thanaplast consortium, which is scheduled to run from 2012 to 2017. It has well-recognised partners from research and industry such as CNRS (the French National Centre for Scientific Research), INRA (National Institute of Agricultural Research), as well as Limagrain and Barbier The company’s most advanced molecules are PET (polyethylene terephthalate) and PLA (polylactic acid). It targets packaging as its key end market, namely bags, bottles, agricultural films and rigid plastics. Tightening regulation on plastics is supportive of alternative processes.

Consistent progress towards industrialisation

Carbios follows a well-defined path of development, whereby it will move from research to pre-pilot, pilot, industrialisation and ultimately, commercialisation. The company targets a licensing and joint venture strategy in order to minimise capex and pursue an asset light model. We note consistent progress on execution. Over the past 12 months, Carbios has successfully concluded the research phase, commissioned first production facilities and is moving into the pre-pilot stage. Earlier than expected, it signed its first joint venture with the creation of Carbiolice (2016) in partnership with Limagrain and Bpifrance. This is encouraging for its prospects for commercial development.

Valuation: €23-37 per share

We value Carbios on a DCF/SOTP methodology with risk-weighted cash flows for most important processes. Based on process-specific royalty rates and market shares, we model PET, PLA, plastic bags, mulching films and rigid packaging as the key end markets until 2030, when we assume they will have reached sufficient maturity for visible revenues. This yields a valuation range of €23-37 per share based on different discount rates, with the base case valuation of €26 at a 20% WACC. PET is the most important component, accounting for 53% of our fair value. Each 100bps change to our base case WACC has a 17.3% impact on our fair value. Each 25bps change to our mature market share assumption changes our fair value by 4.5%, while each 50bps change to all our royalty rates moves our fair value by 8.9%. Each 10% change to our achieved unit price across all businesses changes our fair value by 8.5%.

Financials: Funded through the pre-commercial stage

Carbios is currently at the pre-revenues stage and is funded by research grants. Consequently, it is still loss making, reporting a net loss of €3.1m in 2015. Results were characterised by a growing cost base as Carbios accelerates its scale up, so we forecast further increases in losses to €4.2m. As of June 2016, Carbios had €8.8m of cash. We forecast cumulative free cash outflows of €8m for 2016 and 2017. We estimate Carbios is funded through the end of the Thanaplast project in 2017. It will then have to consider follow-on financing options and/or produce commercial revenues.

Sensitivities: Technology, execution

Technology risk is by far the most important sensitivity. Industrial and commercial execution are further important sensitivities. For all of this, timing is critical as it can affect financing. Refinancing risk will feature from the end of the Thanaplast project. From commercialisation, there will be sensitivities to IP risk, regulation and commodities.

Company description: Solutions for plastics

Biodegradation, biorecycling and bioproduction of plastics

Carbios develops biological processes for biodegradation, biorecycling and bioproduction of plastics. It is a link between academia and industrial applications: The company is the leader of the Thanaplast consortium, which is scheduled to run from 2012-2017 with the objective to develop such processes. Other partners in Thanaplast are CNRS (the French National Centre for Scientific Research) and INRA (National Institute of Agricultural Research), as well as Limagrain and Barbier.

Carbios’s process is based on depolymerisation and subsequent re-polymerisation through enzyme-based technology. After a process of enzyme selection, enzymes break up complex molecules into their original virgin monomers. These can then be absorbed back into nature without any residue or other negative impact. This will lead to self-destroying plastics, a process that can be time controlled. Alternatively, monomers can be re-polymerised into new polymers for renewed usage.

Exhibit 1: Carbios technology

Source: Carbios

This is potentially disruptive technology for the plastics sector. As polymers are very specific, each plastic requires specific enzymes. This makes for very precise processes with the advantage that they can be tailored very well and also that effective IP protection can be achieved. Ultimately, the company hopes to develop processes that facilitate a circular economy of plastics, which is one of the dominant strategic development targets of the plastic sector. It could enable infinite recycling and re-usage of plastics and thereby provide a solution to one of the major global challenges.

Carbios targets packaging as the key end market. Chiefly, this means plastic bags, bottles and rigid packaging, as well as agricultural mulching films. The most advanced process for the company is based on PET, while PLA is another key molecule.

Well defined process from research to commercial development

Carbios is looking to develop in three stages: research, industrialisation and commercialisation. During the research stage it has been selecting enzymes. Subsequently, it is looking to scale up to pre-pilot and pilot stage, followed by large-scale production – all of this during the industrialisation stage. Once it has successfully produced at scale, it is targeting commercialisation. In order to control capex outlay and maintain an asset light and high return on capital business model, the company is looking to license out its technology. It targets a long-term licensing and royalty-based business model. We find that credible as we are aware of peers pursuing similar structures. Since its IPO in 2013, Carbios has successfully delivered proof of concept for biodegradation, bioproduction and biorecycling at lab stage. It is about to enter the pre-industrialisation stage for the first of its processes.

Management

Management brings a combination of engineering, biochemistry and intellectual property law backgrounds, all of which is very relevant to Carbios’s business. The CEO, Jean-Claude Lumaret, comes from a chemical engineering background. Besides his scientific expertise, he has longstanding experience as a patent attorney, in the EU and elsewhere. For 30 years Mr Lumaret had previously been in senior functions with Groupe Roquette, one of the sector leaders in France. The Director of Strategy and Development, Emmanuel Maille, has a scientific background in biochemistry and is also an entrepreneur with previous start-up experience. His academic background is in biotechnology, enzymology and metabolic engineering. He has worked in the biotechnology sector since 2011. The Chief Science Officer, Alain Marty, is a highly recognised professor in biotechnology, enzymology and bioengineering. He has produced cutting-edge research and combined it with industrial application. He had high-profile academic responsibilities with INSA Toulouse and INRA.

Carbios has a board of advisors and a four-member scientific advisory board. The high-profile members are known for their expertise in the polymers sector. The board comprises former senior managers in the pharma sector, finance and industry, as well as an award-winning writer turned reporter and sustainability advisor who was an advisor to former president François Mitterand. All have held senior positions in blue-chip companies and/or major public institutions. In our view, there is a good mix of specific expertise in the pharma, biotech and food sectors, as well as financial knowledge and consideration of the broader impact on society. There is one woman on the board, who also heads up the scientific advisory board.

Outlook for plastic-related processes

Carbios’s end market in the broadest sense is the plastics economy. Global economic growth is an important driver for plastics demand growth, particularly for those segments that are exposed to consumer discretion, such as areas of packaging or industrial applications. Uncertainty over the near-term economic outlook has increased in the major global economic areas, chiefly China. In our view, such uncertainties could have an impact on the business in its commercialisation stage, but they do not materially damage its long-term prospects at this stage.

Exhibit 2: Global macro indicators for plastic (index, China mt)

Source: China National Bureau of Statistics, Eurostat, Bloomberg

It is also worth considering the relationship between oil prices and recycling rates. Falling oil prices tend to lead to a decline in plastic recyclate prices as virgin polymers produced through hydrocarbons-based processes become more competitive. Carbios’s process will compete with virgin polymers as well as plastic recyclate products. That being said, because of the very early stage of the company, there is still an extended period until it will be affected by such movements.

Exhibit 3: Plastic and oil prices

Source: Bloomberg

Structural, long-term demand drivers are arguably more important for Carbios, given its relatively early stage of development. These are demographics, life style changes and sustainability, all of which we see as intact. Recycling shows strong momentum, with a continuing trend towards tightening regulations. In particular, plastic bags are a focus, first and foremost in Europe where countries are increasingly moving towards implementing the EU Plastic Bag Directive of 2015. In this context, the French legislation that bans plastic bags gradually from 2017 serves as an example, as does national legislation in a number of countries that obliges retailers to charge for plastic bags. Other areas, such as packaging, could in our view see similar pressure for reduction of plastic waste.

Solid progress towards industrialisation

Since our initiation note, Carbios has made consistent progress that has brought it closer to industrialisation. It has concluded the enzyme production stage. It has achieved further successful depolymerisation of commercial PET material into its original monomers with characteristics and quality identical to that of a hydrocarbons-based process. In line with its strategy of simultaneous process development, it has produced PLA-based biodegradable plastic. With that the company finalised its third key development phase as defined in the Thanaplast programme schedule. Carbios has also launched a pre-pilot production platform for biodegradable plastics. It is now moving into phase four as defined by its milestone achievement schedule, ie pre-pilot stage. At the same time, the company has strengthened its IP with four new patent applications and the acquisition of a new suite of patents. It has validated its in vivo enzymatic polymerisation process of lactic acid into PLA. This will allow for the PLA process to move to the pre-pilot stage. It is also worth noting that the lessons from this process can be transferred to other processes. Importantly, Carbios has announced its first joint venture, Carbiolice, in partnership with Limagrain and Bpifrance.

Exhibit 4: Key developments

Date

Event

Impact

H115

Conclusion of enzyme production phase

Progress towards next phase

September 2015

Launch of pilot facilities for bioplastics production

Step ahead on scale and execution

November 2015

Validation of conclusion of stage three

Cash inflow, proof of progress

December 2015

100% depolymerisation of commercial PET material

Evidence on technology

May 2016

New patent grants

Supports IP protection

June 2016

First joint venture, Carbiolice

Lends credibility to industrialisation

July 2016

Direct production of PLA from lactic acid

Improves competitiveness of process

September 2016

Operational start of first JV, Carbiolice

Proof of execution

Source: Carbios and Edison Investment Research

Sensitivities

Carbios is at an early stage of technology as well as corporate development. It deals with highly sensitive organisms and innovative processes. As such, technology risk is by far the most important sensitivity. Success at lab stage is still a sensitivity, particularly the less advanced processes. The first steps of scale up from research to the first industrial stages entail risks including process stability, output quality and execution. To mention one, enzyme production at large scale is a challenge. Timing is also very important, as conclusion of key stages is the base for milestone payments and thereby important components of funding for the company. At this stage, we see technology and execution as by far the most important value drivers.

In 2017, the Thanaplast project will come to an end and with it related funding. In the run up to that point, refinancing risk will increase. Subsequently there will be interest rate risk as the company will likely become more exposed to market and commercial funding as opposed to public financing.

As a company that is developing potentially disruptive technology, IP is an important sensitivity. This is compounded through the targeted licensing business structure once the company moves to commercial stage. We note that Carbios is very active in securing patent protection at early stages, which is a positive. Management’s background in the area is also helpful (see above, management). However, enforcement will be key for the company’s success as well.

We note that there is significant risk with regards to execution, not only on technology and industrial expansion as above, but also on commercial development. Success in business development in order to secure licensing partners is not yet proven. Also, timing of future deals can have a major impact on the company’s finances. It is also worth noting that even though the company targets certain licence structures and parameters, licence conditions can ultimately vary a great deal. This could affect fab sizes, upfront payments, royalty rates and thus the entire earnings outlook for any given licence. It could have a bearing on the viability of entire product strings. None of these factors can yet be fully ascertained as the company is still very far away from testing its first licenses.

Once the company operates in the commercial stage, it will be exposed to commodity driven prices for its output products. These are particularly PET and PLA in the first instances. We note this particularly in the context of oil price volatility.

The company is also exposed to regulatory risk. Tightening waste regulations in particular offer more incentives for recycling and the prospect of opening up potentially vast markets. However, investors should keep in mind the potential variability of policy and regulation that could have an impact on certain end markets, even if the broader regulatory picture stays supportive.

Valuation

Carbios is an early stage company; it has just come out of the research stage and is about to enter a first phase of industrialisation. With that, cash flows are highly uncertain in terms of size and timing as they are governed by technology, execution and commercialisation risk as well as risk related to market development and product adoption that is still very far out. We note that there is a heavy weighting to cash flows that are still very far in the future. We therefore find a DCF methodology with risk-weighted cash flows an appropriate methodology.

With our DCF approach, we value the company on a SOTP basis for its most advanced processes. These are PLA, PET, plastic bags, mulching films and rigid plastics. We run a cash flow model on each of these to 2030, by which time all of them should have achieved a reasonable degree of maturity so that they can generate visible revenues. For each of the processes, we assume the company will be able to generate licence revenues very shortly after completing its industrialisation phase. The table below shows our key assumptions per process.

Exhibit 5: DCF assumptions by process

PET

PLA

Plastic bags

Films

Rigid plastics

Global market volume, 2015 (mt)

17.14

0.85

12.30

1.02

1.02

Global market volume, 2030 (mt)

33.61

6.28

20.61

1.27

1.27

Carbios market share, 2030 (%)

8

15

3

25

5

Mature royalty rate (%)

5

2.5

3.5

3.8

5

Unit price 2015 (€/kg)

1,000

1,378

2,500

3,000

2,500

Source: Edison Investment Research

We have also applied probability weights to our cash flows, as a function of the maturity of each process as shown in Exhibit 6.

Exhibit 6: Cash flow weights

Process

Weight (%)

PET

50

Plastic bags

5

Films

25

Rigid packaging

5

Average

21

Process

PET

Plastic bags

Films

Rigid packaging

Average

Weight (%)

50

5

25

5

21

Source: Edison Investment Research

Valuation range of €23-37 per share with upside as cash flows de-risk

Under this approach, we derive a fair value range of €23-37 per share for a range of WACCs between 15% and 25%, with a base case valuation of €26 at a 20% WACC. PET represents the single most important component of our valuation, given that it is the most mature process. It accounts for 45% of our total value, while plastic bags account for 37%.

Exhibit 7: Value components

Source: Edison Investment Research

In order to consider the cash flow variability as a result of a number of uncertain parameters, we have looked at sensitivities to our most important assumptions. Each 100bps change to our base case WACC of 20% has a 17.3% impact on our fair value. Each 25bps change to our mature market share assumption changes our fair value by 4.5%, while each 50bps change to all royalty rates moves our fair value by 8.9%. Each 10% change to our achieved unit price across all businesses changes our fair value by 8.5%.

Exhibit 8: Valuation range based on different chances of success and WACC assumptions

Source: Edison Investment Research

Peer group comparison

Because of the unique nature of Carbios’s process and product, it is very difficult to find a relevant peer group. The table below shows what we consider a reasonable peer group, though we caution there are significant differences in terms of strategies, products, size and maturity. This particularly holds true for the large-cap companies. In our view, the below peer group from the biotech and speciality chemicals spaces is most relevant.

Exhibit 9: Peer group comparison

Market cap (€m)

EV/sales year one (x)

EV/sales year two (x)

Carbios

38

57.7

48.6

Global Bioenergies

85

13.8

8.6

Deinove

31

36.9

40.0

Metabolic Explorer

53.3

33.5

11.2

Novozymes

89

6.4

6.1

BASF

67,242

1.5

1.4

Bloomberg Chemicals Index

1.6

1.5

Source: Bloomberg, Edison Investment Research. Note: Prices as at 28 September 2016.

Financials

Earnings

Carbios is still at pre-revenues stage and currently funded by research grants. Its earnings are characterised by a growing cost base as it scales up and moves towards industrialisation. As a result, it is currently loss making. We expect losses to grow further as industrialisation brings rising costs until the cost base stabilises and the company reaches the commercialisation stage around 2018. Carbios reported 2015 results that were characterised by faster than expected expansion. It received subsidies for completion of stage three and launch of stage four of the Thanaplast project. A net loss of €3.1m was above our forecast of €2.7m on the back of accelerated R&D spend to facilitate faster expansion.

Exhibit 10: 2015 results

€000s

2014

2015

2016e

Revenues

664

837

600

% change y-o-y

-26.2%

26.1%

-28.3%

EBITDA

(3,283)

(3,896)

(5,344)

EBIT

(3,364)

(4,062)

(5,596)

Net interest

48

78

103

Net income

(2,210)

(3,071)

(4,188)

% change y-o-y

2.3%

39.0%

36.4%

Source: Carbios accounts, Edison Investment Research

For 2016, we expect a further step up in R&D spend while the company’s revenues will consist of the final subsidy payments under the Thanaplast project, and R&D services to the JV for support in its industrial development. We expect a further increase in subsidy revenues as they are a function of spend. As cost acceleration will likely still surpass that of subsidies, we expect a further increase in losses. We forecast an EBITDA loss of €5.3m in FY16. In the absence of interest-bearing liabilities and with a positive impact of R&D tax credits, this translates into a net loss of €4.2m, up from €3.1m in 2015.

Exhibit 11: Revenue and earnings evolution

Source: Carbios accounts, Edison Investment Research

Cash flow and funding

We expect growing investment in research and development first and foremost, but also labs and production assets to drive further high levels of capex. Our forecast is for capex of €0.57m in 2016. With that, we forecast a free cash outflow of €4.7m in FY16. Based on management’s expectation that certain operating assets will have to be replaced, there will be an acceleration of capex in 2017 in our view. With that, we expect cumulative free cash outflows of €8m to the end of the Thanaplast project in 2017.

Carbios closed 2015 with €9m of cash we expect that it can fund its expansion through to the end of 2017. It will then have to either secure follow-on funding or produce revenues from commercialisation. The recent announcement of the first joint venture, Carbiolice (see above), provides comfort. Even though there will not be commercial revenues in the immediate future, it still lends credibility to commercialisation and may be helpful for further business development and even potential funding.

Exhibit 12: Cash flow and funding

Source: Carbios accounts, Edison Investment Research

Exhibit 13: Financial summary

Year end 31 December

€000s

2013

2014

2015

2016e

2017e

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

900

664

837

600

653

Cost of Sales

(3,164)

(2,912)

(3,145)

(4,089)

(2,862)

Gross Profit

(2,264)

(2,248)

(2,308)

(3,489)

(2,209)

EBITDA

 

 

(3,077)

(3,283)

(3,896)

(5,344)

(4,119)

Operating Profit (before amort. and except.)

 

 

(3,116)

(3,364)

(4,062)

(5,596)

(4,387)

Intangible Amortisation

0

0

0

0

0

Exceptionals

9

15

(23)

0

0

Other

0

0

0

0

0

Operating Profit

(3,107)

(3,349)

(4,085)

(5,596)

(4,387)

Net Interest

(0)

48

78

103

27

Profit Before Tax (norm)

 

 

(3,116)

(3,316)

(3,984)

(5,493)

(4,360)

Profit Before Tax (FRS 3)

 

 

(3,107)

(3,301)

(4,007)

(5,493)

(4,360)

Tax

961

1,091

936

1,305

868

Profit After Tax (norm)

(2,155)

(2,225)

(3,048)

(4,188)

(3,492)

Profit After Tax (FRS 3)

(2,146)

(2,210)

(3,071)

(4,188)

(3,492)

Average Number of Shares Outstanding (m)

3.8

3.8

3.8

3.8

3.8

EPS - normalised fully diluted (c)

 

 

(57.8)

(59.3)

(81.3)

(111.7)

(93.1)

EPS - (IFRS) (€)

 

 

n/a

(0.6)

(0.8)

(1.1)

(0.9)

Dividend per share (c)

0.0

0.0

0.0

0.0

0.0

Gross Margin (%)

N/A

N/A

N/A

N/A

N/A

EBITDA Margin (%)

N/A

N/A

N/A

N/A

N/A

Operating Margin (before GW and except.) (%)

N/A

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

243

1,048

1,665

1,983

2,717

Intangible Assets

72

130

231

471

732

Tangible Assets

14

740

1,258

1,336

1,809

Investments

157

178

176

176

176

Current Assets

 

 

16,113

12,684

10,377

5,994

2,093

Stocks

0

20

12

22

16

Debtors

1,401

1,402

1,224

1,538

1,003

Cash

14,598

11,099

9,011

4,304

944

Other

114

163

130

130

130

Current Liabilities

 

 

(1,110)

(196)

(337)

(360)

(235)

Creditors

(1,110)

(196)

(337)

(360)

(235)

Short term borrowings

0

0

0

0

0

Long Term Liabilities

 

 

(680)

(474)

(571)

(531)

(481)

Long term borrowings

(457)

(152)

(222)

(182)

(132)

Other long term liabilities

(223)

(322)

(349)

(349)

(349)

Net Assets

 

 

14,566

13,062

11,134

7,086

4,094

CASH FLOW

Operating Cash Flow

 

 

(1,532)

(3,546)

(2,595)

(4,341)

(2,835)

Net Interest

(0)

48

78

103

27

Tax

0

0

0

0

0

Capex

(187)

(867)

(786)

(570)

(1,001)

Acquisitions/disposals

0

0

0

0

0

Financing

13,500

1,171

1,145

100

450

Dividends

0

0

0

0

0

Net Cash Flow

11,781

(3,194)

(2,158)

(4,707)

(3,360)

Opening net debt/(cash)

 

 

(2,360)

(14,141)

(10,947)

(8,789)

(4,122)

HP finance leases initiated

0

0

0

0

0

Other

0

0

0

40

50

Closing net debt/(cash)

 

 

(14,141)

(10,947)

(8,789)

(4,122)

(812)

Source: Carbios accounts, Edison Investment Research

Contact details

Revenue by geography

Biopôle Clermont-Limagne
63360 Saint-Beauzire
France
+33 (0)4 73 86 51 76
www.carbios.fr

Contact details

Biopôle Clermont-Limagne
63360 Saint-Beauzire
France
+33 (0)4 73 86 51 76
www.carbios.fr

Revenue by geography

Management team

CEO: Jean-Claude Lumaret

Director of Strategy and Development: Emmanuel Maille

Mr Lumaret is a scientist and lawyer by background, with particular experience in patent law. He was previously at Metabolic Explorer. His career includes 30 years at Groupe Roquette, a leader in the sector.

Mr Maille has a scientific background in biotechnology and enzymology. He has also been a business development consultant in the biotech sector. He has experience as an entrepreneur in the sector, as the founder of Proteaxis.

Chief Scientific Officer: Alain Marty

Dr Marty is a professor of biotechnology and holds a doctorate in bioengineering. His academic background includes the INSA in Toulouse and INRA.

Management team

CEO: Jean-Claude Lumaret

Mr Lumaret is a scientist and lawyer by background, with particular experience in patent law. He was previously at Metabolic Explorer. His career includes 30 years at Groupe Roquette, a leader in the sector.

Director of Strategy and Development: Emmanuel Maille

Mr Maille has a scientific background in biotechnology and enzymology. He has also been a business development consultant in the biotech sector. He has experience as an entrepreneur in the sector, as the founder of Proteaxis.

Chief Scientific Officer: Alain Marty

Dr Marty is a professor of biotechnology and holds a doctorate in bioengineering. His academic background includes the INSA in Toulouse and INRA.

Principal shareholders

(%)

Truffle Capital/ Green Chemistry Incubator

76.4%

Deinove

2.8%

Companies named in this report

Suez Environnement (SEV.FP), Veolia (VIE.FP), Deinove (ALDEI.FP), Metabolic Explorer (METEX.FP)

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Carbios and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Carbios and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

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