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Strictly Confidential BioCAP – Business Plan 29.05.2009

Business Plan

Corinne CentonzeJean-François Coleille

Maksim GorbachevBernadette Kolbe

Gregoire MastrangeloJaroslaw Miklosik

Prof. Hans CrijnsProf. Miguel Meulemann


Executive SummaryConsumers are increasingly demanding food that is functionalized to contain

supplementary health additives delivered in the body in a natural and safe manner.

BioCAP is a high-end solution provider addressing this challenge faced by food

ingredient companies.

BioCAP is a Swiss manufacturing company producing glucan, a natural

encapsulating agent derived from brewer’s yeast. Glucan is the major component of

the yeast cell wall, which serves as a carrier for sensitive ingredients such as

vitamins and flavours in food products. Glucan protects and delivers an ingredient

more effectively than other encapsulating agents thanks to its superior physical

properties such as stability and higher loading capacity.

A patented scalable technology, comparatively low CAPEX and production costs and

strong partnerships with brewer Carlsberg, science and technology university ETH-

Zurich and the Swiss engineering company Tex-A-Tec are the sources of BioCAP’s

competitive advantage.

The current global encapsulation market is estimated at CHF 500 mili. BioCAP will

initially focus on the food industry, due to its high market potential, relatively easy

regulatory environment and growing demand for encapsulation technologies. The

micro encapsulation market is fragmented among a limited number of small niche

players offering their proprietary technology. Since demand for micro encapsulation

is expected to grow at rate of 10% over the next three years, there is a market

opportunity for BioCAP to exploit. In 2011, when BioCAP starts its operations, the

estimated micro encapsulation market size is expected to reach CHF 670 mil. With

its capacity, BioCAP will be able to supply lead customers and service 2% of the

global demand.

In the first two years, BioCAP will invest in application development and will pursue

i 1 CHF = 0.66 EUR ; 1 CHF = 0.88 US$ (as of 10.05.2009)

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co-development and commercialization agreements on an exclusive base with

market leaders in food ingredients encapsulation. BioCAP plans to approach large

Swiss-based food ingredient companies such as Firmenich and Givaudan.

Commercial production and first revenue stream will start from 2011.

The company expects to reach a turnover of CHF 13,5 mil in 2015 with an expected

price for glucan of 150 CHF/kg.

The value of the company, using DCF method, is CHF 10,8 mil with a terminal value

of CHF 34 mil beyond 2013, using a WACC of 30% and assuming a long term annual

growth rate of 3%.

There are several business risks to which BioCAP will be exposed in the first year of

its existence. The commercial applications have not yet been developed. Product

registration will be required from national regulation authorities. The development of

some applications might be prevented by competitors’ IP.

BioCAP has a dedicated team of executives with extensive experience in

entrepreneurship, sales & marketing, R&D and finance. In addition, BioCAP is

advised by an experienced board of directors and a reputable scientific board.

BioCAP requires CHF 1,5 mil in seed finance for product development and CHF 2,5

mil in a first financing round to invest in production facilities with a capacity of

225’000 kg of yeast per year and for application development. The estimated IRR is

95%. In exchange for the seed money, BioCAP proposes 40% of the shares.

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Table of Contents

Executive Summary.....................................................................................................0

1 Company description..............................................................................................1

1.1 BioCAP.............................................................................................................1

1.2 Technology and product description................................................................1

2 Market analysis and segmentation.........................................................................2

2.1 Value chain......................................................................................................2

2.2 Product properties............................................................................................3

2.3 Customer needs...............................................................................................4

2.4 Value Proposition.............................................................................................5

2.5 Market overview...............................................................................................5

2.6 Market segmentation........................................................................................5

2.7 Targeting..........................................................................................................8

3 Industry analysis.....................................................................................................8

3.1.1 Competitors 9

3.1.2 Suppliers 9

3.1.3 Customers 10

3.1.4 Substitutes 11

3.1.5 New entrants 11

4 Business model....................................................................................................11

4.1 Initial stage.....................................................................................................11

4.2 Growth stage..................................................................................................12

4.2.1 Advanced applications 13

5 Marketing mix.......................................................................................................14

5.1 Product...........................................................................................................14

5.1.1 Support services 15

5.2 Price...............................................................................................................15

5.3 Promotion.......................................................................................................15

5.4 Place..............................................................................................................15

6 Development and personnel plan.........................................................................16

6.1 Development plan..........................................................................................16

6.2 Personnel plan...............................................................................................17

6.2.1 Production personnel 17

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6.2.2 General management and administrative personnel 17

6.2.3 Other personnel 17

7 Regulatory aspects...............................................................................................18

7.1 Product regulation..........................................................................................18

7.2 IP rights and strategy.....................................................................................18

8 SWOT analysis.....................................................................................................20

9 Human resources.................................................................................................21

9.1 Executive management..................................................................................21

9.2 Board of directors...........................................................................................22

9.3 Scientific board...............................................................................................22

9.4 Strategic partners...........................................................................................24

9.5 Ownership structure.......................................................................................24

10 Financial plan.....................................................................................................25

10.1 Valuation......................................................................................................25

10.2 Revenues.....................................................................................................25

10.3 Costs............................................................................................................26

10.4 Cash flow & balance sheet...........................................................................27

10.4.1 Cash flow from operations 27

10.4.2 Cash flow from investments 27

10.4.3 Cash flow from financing 27

10.4.4 Balance sheet 28

10.5 Sensitivity analysis.......................................................................................28

10.6 Risk factors..................................................................................................28

11 Appendix.............................................................................................................30

11.1 Patented glucan extraction process.............................................................30

11.2 Technology scale-up....................................................................................31

11.3 Equipment for industrial plant.......................................................................32

11.4 List of competitors........................................................................................32

11.5 Micro encapsulation technologies................................................................33

11.6 Development plan........................................................................................34

11.7 Income statement.........................................................................................35

11.8 Cash-flow statement....................................................................................36

11.9 Balance sheet..............................................................................................37

11.10 Working capital...........................................................................................38

11.11 Personnel plan...........................................................................................39

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11.12 Strategic partners.......................................................................................40

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1 Company description

1.1 BioCAP

BioCAP is a spinoff of HeiQ/Tex-a-Tec, a Swiss specialty chemicals firm that has the

objective to market glucan in the food ingredients industry as an encapsulating agent.

The patented glucan extraction process has been developed by Tex-a-Tec, a

chemical process engineering company in Switzerland and exclusively licensed out

to BioCAP.

The technology development has been co-financed by Carlsberg, one of the world’s

largest brewery groups and a Fortune 500 company, with the intention to find a new

value-added approach to utilize spent brewers yeast. The Carlsberg

Feldschloesschen brewery in Basel, Switzerland is regarded as a preferred supplier

of brewers yeast.

BioCAP will be registered as an Aktiengesellschaft (AG)ii company, following Swiss

law and using seed money in the form of subsidies from the Venture Kick

Foundation.

1.2 Technology and product description

BioCAP manufactures particulate beta-glucan 1-3-1-6iii, the major component of the

yeast cell wall. Glucan is used to encapsulate ingredients such as vitamins and

flavours in order to protect them from their environment. The encapsulated ingredient

can then be used as an additive in a number of food products like yogurts, cereal

bars, and beverages. Once in the body, the nutrient is released and is available for

the metabolism.

ii The starting capital to the register the entity is 100,000 CHF.

iii For purposes of this study, particulate beta-glucan 1-3-1-6 is referred to as glucan.

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Based on the patented extraction technology, yeast is emptied of its contents iv. The

remaining cell wall is the glucan.

Figure 1. Glucan is a biopolymer with a spherical shape and a size between 3 – 5 мm. Yeast cell closed - encapsulates the ingredient. Yeast cell opened – releases the ingredient.

2 Market analysis and segmentation

2.1 Value chain

The main players of the micro encapsulation industry are shown in the figure below:

Figure 2 - Value chain in the micro encapsulation industry

Food manufacturing companies, the drivers of the encapsulation market, typically

search for encapsulation solutions for three following applicationsv:

iv For the description of the extraction technology, scale-up and equipment, refer to appendices 12.1, 12.2 and 12.3.

v Frost & Sullivan, 2005

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Protection of the encapsulated ingredients against oxidation, heat and extreme

pH during processing or in order to increase shelf life.

Encapsulation allows for the reduction in the use of preservatives in foods and

beverages.

Controlled release of ingredients

The release of ingredients can be triggered by moisture, pH or heat and can be

targeted, for example, at the intestine.

Flavour masking of encapsulating materials

While consumers are increasingly attempting to eat healthily, products containing

functional ingredients often don’t taste good. Examples are fish oil that contains

omega-3 fatty acids or herbal extracts, which are typically bitter tasting.

2.2 Product properties

The five main physical properties of the carrier glucan are listed and explained below:

Glucan is a natural substance, derived from yeast, a living organism. It is widely used

in bakery products and beverages. Glucan is proven to favourably stimulate the

immune system and to lower cholesterol, reducing the need for pharmaceuticals

such as antibiotics and anti-cholesterols. Glucan is already widely used as an FDA

accredited immunostimulant.

Glucan is a stable carrier. It is able to transport functional substances deep into the

intestinal tract. Glucan doesn’t get destroyed by the acidic environment in the

stomachvi.

Glucan is expected to have a high loading capacity, due to its balloon-like structure.

Further research financed by HeiQ/TAT is being conducted at the University of

Applied Science in Muttenz, Switzerland, on the characterisation of Glucan as well as

its absorption and release rate.

vi Glucan is composed of biopolymers that, in the body, cannot be destroyed hydrolyzed in the absence of the

enzyme Glucanase, which is found only in the human intestines.

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Glucan can be used as a carrier for many different ingredients. It is useful for carrying

both fat and water-soluble substances. Glucan can be used as a carrier for a whole

range of substances when further modifiedvii.

Glucan is odour and taste free as well as colourless, properties that are required by

the food industry.

2.3 Customer needs

Food ingredient companies consider the following factors when choosing the ideal

micro encapsulation technologyviii:

Function

Manufacturers need to think about what functionality is required for the finished

product. For example, the microcapsule can be used to mask the flavour or to

protect the content from its environment.

Manufacturing cost

Size, Density and Stability

Processing Conditions

The encapsulated ingredient needs to survive before releasing its contents.

Encapsulation Material

An encapsulation material must be used that is nonreactive with both the

ingredient to be encapsulated and the formulation to which the encapsulate will

be added.

Odour and colourless

The food industry requires that the carrier be odour and tasteless as well as

colourless, in order not to interfere with the other ingredients.

vii Glucan’s properties can be modified by additional functionalisation. Functionalizing means adding a process step

that transforms the physical-chemical characteristics of Glucan.

viii Frost & Sullivan, 2005

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2.4 Value Proposition

BioCAP is a high-end solution provider to food ingredient companies that are looking

for technologies to enhance their existing portfolio of encapsulation techniques.

Glucan, as a carrier, is a natural substance that is derived from brewer’s yeast and

thus widely available and accepted in the food industry. Glucan will provide food

ingredient companies with a superior technology and ultimately with new applications

for the overall growth of the food industry, in processed and functional foods as well

as health additives.

2.5 Market overview

There are several competing micro encapsulating agents on the market. The most

popular ones are vegetable gum, cellulose derivatives, gelatine, modified starch and

dextrin. These micro encapsulating agents are used in beverages, confectionary and

other food products for encapsulation of flavours, colours, vitamins and other

substances.

We estimate the total accessible market of micro encapsulation at CHF 500 mil. The

market is going to grow at the same rate as the functional food and beverages

market with a 10% rate in the next 3 yearsix. In 2011, BioCAP’s first year of

production, the estimated micro encapsulation market size will be around CHF 660

mil.

2.6 Market segmentation

Our market is segmented into two main categories of actors:

A. Micro encapsulation SMEs

B. Large food ingredients companies doing in-house encapsulation

To ensure a complete overview we also identify actors that directly impact our market

namely:

C. Ingredient companies outsourcing encapsulationix Euromonitor’s Global Market Information

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D. Food manufacturers

Figure 3 - Segmentation of the micro encapsulation market

Frost & Sullivan (2008) divides micro encapsulation companies into two categories

(namely A and B) based upon the type of services they provide in adding value to the

food end productsx:

(A) The micro encapsulation SMEs: service companies provide encapsulation

services to both food ingredients companies and food manufacturing companies.

The main services provided are R&D and design work for prototype applications,

pilot plant scale operations and contract manufacturing services.

Micro encapsulation SMEs usually work with a large variety of encapsulation

technologies and choose the most appropriate one depending on the substance

to encapsulate and the properties the customer is looking for.

(B) The large food ingredients companies doing micro encapsulation in-

house: “(…) large enterprises that have micro encapsulation as an alternate way

to product innovation. These enterprises have purchased or developed

x Although the Frost & Sullivan study focuses on the personal care industry, our market research tends to confirm the

relevance of this segmentation for the food industry.

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technology through continued investments in R&D. It also enabled them to gain

market share by differentiating their product line.”xi

This segment is constituted by several large multinationals such as DSM,

Danisco or Tate & Lyle. Partnerships or acquisition of start-ups is largely used.

In addition to the micro encapsulation companies, we take into consideration

companies outsourcing the encapsulation process and the food manufacturing

companies.

(C) The food ingredients companies outsourcing the encapsulation process:

these companies usually contract micro encapsulation SMEs to encapsulate

specific ingredients that they will then sell to the end-products companies. Most

large companies use this service on an ad-hoc basis. However, some companies

outsource their entire encapsulation process and do not have the infrastructures

and the know-how required for example to co-develop applications with a start-up

company without involving a third party.

(D) The food manufacturing companies: companies such as Kraft, Unilever or

Nestle have a strong decision power in the definition of the ingredients they are

buying. Differentiation through innovation is also crucial for these companies. For

this reason, they are strongly interested in building partnerships with start-ups

proposing innovative technologies, even if they do not do the encapsulation

themselves. Unilever for example, expressed the potential interest to work

together with BioCAP on selected applications.

2.7 Targeting

Technology leaders and innovators with a proven track record will be aproached first.

Glucan will be sold to large food ingredient companies doing encapsulation in-

house for the following reasons.

xi Frost & Sullivan, 2008

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these companies have experience and expertise with encapsulation which may

reduce our time-to-market

selling Glucan to large companies would allow us to focus our sales & marketing

resources

these companies are looking for innovative products and technologies to

differentiate themselves from the competition.

3 Industry analysis

Figure 4 – Competitive forces analysis. The threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers.

3.1.1 Competitors

The leading players in food micro encapsulation, according to the 2008 Frost &

Sullivan report on the micro encapsulation industry, include Balchem Corporation in

the US, Brace in Germany, Coating Place of the US, Particle Coating Technologies

in the US and Particle Dynamics and TasteTech in the UKxii. The micro encapsulation

xii For a complete list of competitors, refer to the appendix “Competitor Description”

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market is however a small, specialized community with each competitor claiming its

own area of expertise and proprietary techniques with the biggest barrier for

specialized micro encapsulators being able to gain the same access to financial

resources of large corporations.

Since the demand for micro encapsulation is growing with double digits and there is

limited number of players focusing on their niches, we are considering the intensity of

competition as low.

3.1.2 Suppliers

The only critical supply that is necessary to produce glucan is brewers yeast.

Brewers yeast is produced as a by-product in breweries and is recovered from the

fermentation process. This product is widely available, as currently it is treated as

waste sold at a low price to other industries.

Our business has secured a supplier of brewers yeast directly from the Carlsberg

Feldschloesschen brewery in Basel, Switzerland. Currently the brewery

Feldschloesschen sells the excess spent yeast directly to pharmaceutical and other

intermediary companies. With our agreement in place, Feldschloesschen will provide

the brewers yeast required for our production process i.e. the business becomes the

sole customer of the brewers yeast from Feldschloesschen and further Carlsberg

breweries if needed.

Since beer brewing is one of Europe's most popular sectors accounting for 40 per

cent of the global beer productionxiii and there are many breweries which would be

willing to sell their used yeast at slightly higher price, we assume that the suppliers

do not posses significant bargaining power.

xiii Frost and Sullivan. (2008). Strategic Analysis of the European Yeast Market. Market Engineering Research, 8

August 2008.

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3.1.3 Customers

Generally speaking, micro encapsulation, while expensive, is seen as a means of

achieving differentiation and adding value to products. Food manufacturers therefore

respond to increasingly complex consumer requirements and increasing competition,

particularly from the powerful supermarkets’ own brand products, by product

differentiation and branding.

The potential customers of micro encapsulation companies include therefore both

food ingredient producers and food manufacturers. Their requirements however differ

significantly. Food manufacturers require high volumes of already encapsulated

ingredients. Since BioCAP is a raw material provider, we therefore focus our

attention on the food ingredient companies that encapsulate the active ingredients.

The main players in the food ingredients sector are the following: Ajinomoto, ADM,

Cargill, BASF, CSM, Corn Products International, Degussa, Danisco, DSM,

Firmenich SA, Tate & Lyle, Kerry, Südzucker.

The above-mentioned companies are the top players, but there are a number of

smaller firms operating in the market that already use or could potentially be

interested in micro encapsulation. There are many food ingredients companies,

which seek new encapsulation technologies, which would enable them to

differentiate their products. At the same time, there are relatively few small biotech

firms offering this functionality. Thus we believe that the customers have a medium

bargaining power if provided micro encapsulation technologies are attractive from an

economical and technological point of view.

3.1.4 Substitutes

There are multiple micro encapsulation technologies on the market. However, while

the micro encapsulation market is well established, many techniques are still new to

food ingredients companies and as such do not yet have a proven track record.

Moreover, no substitutes combine the exact same properties as Glucan.

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3.1.5 New entrants

In addition to the existing participants, there is a threat of entry from other functional

ingredient manufacturers by way of acquisition or joint venture into the encapsulation

market. A number of Asian manufacturers (yeast and micro encapsulation) with low-

cost products also start to enter the market. But, entry is limited by barriers such as

protected intellectual property rights in selected processing techniques (most

companies have developed their own proprietary micro encapsulation technology),

high initial investment on research and “know how”.

4 Business model

4.1 Initial stage

Year one and two will be focused on production plant setup and as such BioCAP will

not generate any revenues during this period. Simultaneously, BioCAP will invest in

application design work, seek partnerships and commit to business development.

The main goal is to rapidly develop basic customer applications and generate initial

turnover for BioCAP through the sale of glucan. This will be achieved by:

Supporting its customers with the development of the necessary encapsulation

techniques. For larger development projects, BioCAP will make use of cost

sharing models.

Parallely, BioCAP will generate further know-how through own and state funded

research projects. In year one, it will apply to become a project of the CTI, the

Swiss Innovation Promotion Agency, in order to get access to financial and non-

financial support.

The initial clear focus on the food industry, its relatively easy regulatory hurdles and

its growing demand for encapsulation technologies represent the ideal market for

BioCAP’s entry strategy.

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4.2 Growth stage

In the growth stage, following the successful introduction of glucan in the food

industry, BioCAP will extend its customer base by providing more advanced

applications such as the targeted release of substances, the encapsulation of more

sensitive molecules and the absorption of toxic substances as described below. The

focus then will be on specialized encapsulation techniques protected by intellectual

property rights. Through the development of application patents, an additional stream

will be generated by licensing out the developed intellectual property.

Building up on the existing customer base, BioCAP will leverage and push sales by

directly approaching food manufacturers with a pull-strategy offering specific

differentiating intellectual property for licensing as well as ingredient branding

schemes for their marketing, e.g. by providing advanced encapsulation of probiotics

as in LC-1 form Nestle. These schemes will be a driver of innovation for the food

manufacturers and a way to differentiate from their competitors.

Utilizing the generated cash flows from the straightforward food applications will allow

BioCAP to explore and develop the high potential markets of cosmetics and pharma

in a second growth stage. Thanks to its platform technology, vast market applications

represent a clear opportunity for a sustained growth of the firm. Particularly the

cosmetics industry, with its growing demand for anti-aging and skin repair

technologies, represents an application field with high margins at large volumes.

Finally, further potential growth for BioCAP can be achieved by vertical integration

into the encapsulation industry by directly providing encapsulated ingredients to food

manufacturers and other industries.

4.2.1 Advanced applications

The following applications for glucan are in early stages of use or essentially still in

development. Even though more research will be needed, we see considerable

potential to provide high value added with our technology.

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Targeted release of encapsulating nutrients and functional ingredients.

The key challenge of targeted release is to ensure the ingredient targets the

necessary parts of the body in order to be effective. For the targeted release of

ingredients, and depending on the target, an additional process step for the

modificationxiv of glucan will be needed. Considerable research with promising

results has been conducted in this field by Prof. Hans Dutler at ETH Zurich,

Switzerland.

Encapsulation of large and/ or sensitive molecules.

Probiotics, bacteria that help to metabolize foods and limit the growth of harmful

bacteria, is used mainly in dairy products such as Nestlé’s LC1 yogurt. Probiotics

are very sensitive to the food processing and to the acidic environment of the

stomach. Several technical challenges have so far hindered its applicability.

Absorption of toxic substances

Glucan can not only release substances, but also absorb undesirable ones. Initial

research has been done on the absorption of aflatoxins in the pistachio nut

production at the Iranian Shahid Bahonar University. Aflatoxins were shown to

reduce the output of nut production by 30%.

5 Marketing mix

5.1 Product

Glucan is a colourless and odourless white powderxv. It can be categorized as

industrial material, which is subject to further processing. Initially Glucan will be

offered as an alternative to existing micro encapsulation solutions. It is fundamental

to stress the main point of parity for the first stage of introduction to the market –

xiv Glucan’s properties can be modified by additional fictionalisation. Functionalizing means adding a process step that

transforms the physical-chemical characteristics of Glucan.

xv For a complete description please refer to section 3.2 Product properties.

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glucan will not interfere with other ingredients, neither by chemical reaction, nor

because of its taste. At the same time we can capitalize on the main points of

difference of our unique technology –glucan is a superior technology to the existing

encapsulation techniques, because it is stable and natural, it has a higher loading

capacity and flexibility in terms of the substances to encapsulate.

Once glucan is present on the market, partnerships will be established and advanced

glucan applications will be developed. The advanced encapsulation will be offered to

the customers as a co-developed, tailored service, with an exclusivity of application

for a limited period of time. Partial costs of the potential application development will

be borne by the customer. For each newly developed application, there will be a

patent filing, so as to raise the barriers of entry for the potential competitors.

The quality of our product will be guaranteed to customer by the provision of all the

required certificates of analysis and traceability.

5.1.1 Support services

From a service perspective, BioCAP will provide expertise, advice and focus on

technical support to customers. The main services will be R&D as well as design

work for prototype applications,

5.2 Price

The price average of 150 CHF/kg was chosen by comparing the features of other

encapsulation technologies that would offer similar loading capacities and

performance. Since our carrier has a much higher loading capacity as compared to

existing carriers on the market, the value added for our customers will be significantly

higher. The price per application and/or customer could differ.

5.3 Promotion

The micro encapsulation using glucan will be promoted via the following channels:

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A brochure explaining glucan characteristics

A company web site

Direct contact with companies potentially interested in the offer via face-to-face,

email and telephone

Informal enquires using personal networks of the management team and board of

directors

Participation at specialist fairs with a dedicated stand

Public Relations campaign with public and private scientific institutions and media

5.4 Place

Since BioCAP sells a high value added industrial product, B2B direct sales channel is

most appropriate.

6 Development and personnel plan

6.1 Development plan

The main milestones arexvi:

Obtaining seed finance to set-up the company

Biocap is applying for subsidies from Swiss Foundations such as the Venture

Kick, which is an initiative of private investors to support technological start-up

companies in Switzerland, the Heuberger Jungunternehmer Preis and W.A. de

Wigier Preis. Expected time of receiving seed finance is August-September 2009.

Developing the first commercial application

We have an established partnership with one of the leading Swiss research

institutions - the University of Applied Science in Muttenz, Switzerland. BioCap

will apply to become a project of the CTI, the Swiss Innovation Promotion Agency

xvi see detailed table in the appendix

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that will help us to obtain state subsidies to finance application research and

development. Expected time of the first application development is 300-450 days.

Settle a commercial partnership with a leading food ingredient company

The two largest food ingredients companies – Firmenich and Givaudan - are

located in Switzerland. We are going to use the networking ability of BioCAP’s

scientific board and the parent company HeiQ to settle a partnership agreement

with them. Our initial contacts with Firmenich show a significant interest in the

Glucan encapsulation technology.

Obtaining finance for setting a production plant

Having a partnership agreement with a market leader in the food encapsulation

industry and having developed first commercial applications will make BioCAP

attractive for VC funds.

Start the production

Substantial engineering expertise of the parent company HeiQ/ TAT makes our

plan to install a production facility three quarters after obtaining finance highly

realistic.

6.2 Personnel plan

The Personnel Planxvii details the growth of the organization over the first three years.

For year one and two only core personnel will be employed by the company, 2

development engineers and 3 executive managers.

6.2.1 Production personnel

The personnel plan shows the position and remuneration of production workers that

will work in three shifts of eight hours each. We have forecasted a 3% annual

increase in salaries for all personnel (including production workers).

xvii see table in appendix

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6.2.2 General management and administrative personnel

The personnel plan shows the direct and active involvement of the company CEO,

CTO and VP Sales and Marketing at all stages of the start up, setting up of the

production facilities, establishing initial contracts and running the business.

6.2.3 Other personnel

BioCAP foresees the possibility of permanently funding a product development

engineering team, who seeks to continue the innovation and testing originally

developed through BioCAP with strategic partners or customers.

7 Regulatory aspects

7.1 Product regulation

To supply the food industry, BioCAP is subordinated to the regulation on foodstuffs,

food additives and dietary supplements.

Glucan will need to be listed as Generally Recognized As Safe (GRAS). The GRAS

certification is granted by the Food and Drug Administration (FDA). The registration

of glucan as GRAS is certain based on the natural origin of the product. The

expected timeline is 3-6 months from request filing. Glucan is also considered as a

food additive and therefore is subjected to related legislation in terms of quantity

allowed and labelling declaration.

BioCAP customers could request certificates of analysis and ISO 9001 standards. To

supply glucan to the cosmetic industry, an INCI name would have to be requested. A

timeline of 3 to 6 months is expectedxviii.

xviii Frost and Sullivan, 2005

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7.2 IP rights and strategy

BioCAP intellectual property currently covers a process patent developed by our

business partner HeiQ/TAT. The patent (Method for Isolating Glucan,

WO2008138559A1, published in 2008) describes a unique method for isolating

glucan, protein, mannan and lipid from yeast. Current patent feedback is “A” and

HeiQ/TAT expects the patent to be granted without limitations and will nationalize the

patent in EU, USA, BR, IN, AUS, CD, MEX, CN, JP and other relevant countries.

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The patent application history and future timeline is summarized as follows:

# Step Date Comment

1 Initial application (EP20070009426) 10 May 2007 Priority date

2 PCT application

(WO2008EP03758)

9 May 2008 PCT application

3 PCT application publication

(WO2008138559)

20 Nov 2008 Publication with search

report

4 Enter into individual national

examination

Oct 2009 30 months from priority

date

5 Issuing of patents 2010 - 2012 Time to issue depends

on country

6 Expiration of patents 2027 20 years after initial filing

(2007)

Table 1 – Patent application timeline

BioCAP has not as yet filed any application patents. BioCAP intends to establish a

comprehensive intellectual property portfolio covering applications developed in

partnership with customers, combined with a licensing model.

In addition, BioCAP’s IP strategy will take into account the IP portfolio of its main

(application) patent competitor, Micap. Micap, a UK food encapsulation company,

has developed several application patents on yeast glucan. Micap is currently under

administration and many of its patents have lapsed due to non-payment of fees,

including for some patents those most directly relevant to food applications.

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8 SWOT analysis

The main internal and external factors of relevance of BioCAP are summarised in the

following SWOT analysis:

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9 Human resources

9.1 Executive management

Maksim Gorbachev, Chief Executive Officer (CEO)

Maksim Gorbachev has 10 years of business experience with 2 years of experience

in private equity and venture capital. At the start of his career, Maksim had 1 year of

entrepreneurial experience. Prior to joining the Vlerick Leuven Gent Management

School where he completed a full-time international MBA, Maksim was an investment

manager at Sminex, a Moscow-based private equity fund. As an investment manager

at Sminex, Maksim was active in the Oil and Gas, Retail and Food Products sectors.

Maksim has an extensive expertise in finance and marketing.

Maksim Gorbachev holds masters degrees in Applied Mathematics from Moscow

State University and in Financial Management from the Financial Academy under

The Government of Russian Federation. Maksim also has a professional marketing

certification from The Netherlands Institute of Marketing.

Dr. Craig Duckham (PhD)xix, Chief Technology Officer (CTO)

Craig Duckham a commercial R&D and project manager has more than 15 years of

experience with 7 years experience in the field of micro encapsulation gained at

Micap Plc in the positions of Technical Director and as Director of Operations and

Technology at Cara Technology Ltd.

Craig Duckham earned his PhD at Nottingham University and is a development

scientist for natural products, flavours, fragrances & pesticides and an accomplished

researcher and analytical chemist with experience gained in food & beverages,

xix The appointment of Dr. Craig Duckham is still in negotiations.

21


water, crop protection and healthcare sectors. Additionally Craig has substantial

experience in managing patent strategy and licensing activities.

9.2 Board of directors

The company board is envisaged to include the CEO, CTO, VP Sales and Marketing

and BioCAP business partner HeiQ. The board will be extended to include additional

(yet to be defined) members. The company welcomes the opportunity for potential

partners or investors to serve on the board.

9.3 Scientific board

The scientific board is currently composed of scientific experts from Carlsberg, TAT

and universities. It will grow to include additional independent scientific advisors, with

an initial specific focus on the food and food ingredients markets.

Esko Pajunen, M.Sc. (Eng), Director of the Carlsberg Research Centre

Esko Pajunen has a long career in food and beer technology starting at the Helsinki

University of Technology and Finnish Food Industries Federation before joining

Sinebrychoff Brewery, where he was Senior Vice President, Research &

Development from 1993-2006. Esko Pajunen has held several positions at the

European Brewery Convention (EBC) among which has been President of EBC

1999-2003 and he is currently Vice President and Member of the EBC Council, EBC

Brewing Science Group and Chairman of EBC Technology and Engineering Forum.

Esko Pajunen holds a M.Sc. (Eng) degree from Helsinki University of Technology.

Walter Marte, Dipl. Ing. Chemistry, Founder and CEO of TAT

Walter Marte has a background in textile chemistry completing a first degree at the

college of higher education in Reutlingen. He further expanded his knowledge into

chemical process engineering and biotechnology by gaining a diploma study at the

22


University of Graz, Erlangen and Braunschweig. Walter Marte also serves in an

executive function in industrial research and development at Gurit Heberlein and

further chemical companies and is a member of the scientific staff at the institute for

chemistry and bioengineering sciences at the Swiss Federal Institute of Technology

(ETH Zürich).

For TAT, Walter Marte has an additional focus on research and development focus in

area of technical operations and process improvement and has specifically

developed multi-functional systems based on nano and bio-mimetic principles for

clothes, cosmetics and medical textiles.

Professor Hans Dutler, Prof. Dr. Ing. Chem. ETH, Zurich

Professor Hans Dutler has an extensive academic background with a first study of

organic chemistry with diploma and thesis at the Swiss Federal Institute of

Technology (ETH Zurich) followed by a post doctoral fellowship (three years) at

Harvard University, Cambridge USA. Professor Hans Dutler currently also leads a

(thesis oriented) research group in the field of enzymology and protein chemistry and

educating biology and pharmacy students in organic chemistry and enzymology at

the department of organic chemistry at ETH Zürich.

Professor Hans Dutler brings vast experience specifically in the field of glucan

encapsulation. He was co-founder and president of ABAC AG, a company engaged

in development of new and improved yeast-glucan production methods. Since his

departure from ABAC he has been primarily focused in finding and introducing

hitherto not applied production technologies, which should yield improvements in

quality, price and scale.

23


9.4 Strategic partners

Strategic partners for BioCAP includexx:

Carlsberg

BioCAP has secured a supplier of brewers yeast directly from the Carlsberg

Feldschloesschen brewery in Basel Switzerland. In addition, BioCAP has the

option to establish its production facilities at the Carlsberg Feldschloesschen site.

A specific production area has been earmarked for the project.

TEX-A-TEC AG

As developers of the glucan extraction technology and process patent holders,

TAT expertise is key during production facilities setup and launch of BioCAP and

with regards to the handover of technical expertise to BioCAP.

HeiQ Materials AG

HeiQ Materials AG acquired TAT in 2008. HeiQ brings relevant experience to

BioCAP in various fields such as applications design, technology scale-up,

manufacturing, IP, regulatory affairs and funding. HeiQ serves as primary advisor

during the start-up phase to the management of BioCAP.

9.5 Ownership structure

BioCAP foresees the following shareholders:

HEIQ

Shares offered in exchange for exclusive intellectual property rights, making

BioCAP owner of IP in case of trade sale or IPO.

Executive management – CEO, CTO, COO, VP Sales and Marketing

Other external investors

Carlsberg Group

Venture Capitalist

xx see more detailed description in appendix “Strategic Partners”

24


10 Financial plan

10.1 Valuation

The discounted cash flow valuation according to our projections values the company

at CHF 10.8 mil with a terminal value of CHF 34 mil beyond 2013, using a WACC of

25% and assuming a long-term annual growth rate of 3%. IRR is 95%.

10.2 Revenues

Based on the operational plan, production is scheduled to commence in the third

year. We assume that sales will gradually grow and reach 13,05 mil CHF in 2013.

Our forecast is based on the assumption that BioCAP is able to reach 100% of the

practical production capacity utilization in 2013. Production balance estimation is

based on the information obtained during pilot plant testing and consistent with

current industrial practice.

Price forecast of the products is based on the current market prices and estimated

inflation rates.

As can be seen from the following graph glucan is the core product and accounts for

99% of BioCAP revenues.

0

2000

40006000

8000

1000012000

14000

'000 CHF

2009 2010 2011 2012 2013 2014 2015

Net sales

1-3, 1-6 beta glucan mannan lysate

25


10.3 Costs

Costs estimation is based on information of current market prices for raw material

and estimated inflation rates, personnel plan and estimated administrative expense.

The following graph shows the estimated cost structure and cost evolution over a 7

years period.

Cost structure

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2015

Depreciation

GS&A

Payrol

COGS

0

500

10001500

2000

25003000

3500

4000

'000 CHF

2009 2010 2011 2012 2013 2014 2015

Costs evolution

Depreciation

GS&A

Payrol

COGS

We forecast a steady improvement in operation and net income margins due to scale

economies arising on higher revenues.

Margins FY 2011 FY 2012 FY 2013

Operating 37% 66% 75%

Net income 34% 49% 55%

26


10.4 Cash flow & balance sheet

10.4.1 Cash flow from operations

Since the production and sales start from the third year, we foresee to have a

substantial negative operational cash-flow for the first two years.

10.4.2 Cash flow from investments

Launching BioCAP’s operations requires building the production facility. Estimated

capital expenditures are CHF 2.1 mil. We do not expect any significant movement in

CFI after the plant building unless in the unlikely event that BioCAP undertakes an

acquisition.

Net sales and FCF

-4000-2000

02000400060008000

10000120001400016000

2009 2010 2011 2012 2013 2014 2015

'000

CHF

Free cash-flow Net sales

10.4.3 Cash flow from financing

In order to finance the investment program and cover negative operational cash-flow

in the pre-production phase, BioCAP needs to raise equity capital. The reliance on

new equity issuance, a consistent feature in FY 2009-2010 is expected to reduce

going forward. Our forecast has assumed CHF 1,5 mil in seed finance to start

product development and CHF 2,5 mil in a first finance round to launch the products.

27


As a start-up, BioCAP has limited recourse to debt facilities. It is not expected to

arrange substantial bank borrowings. So the company is heavily reliant on

successive fund raising.

Financial plan

-4000

-2000

0

2000

4000

6000

8000

10000

2009 2010 2011 2012 2013 2014 2015

'000

CHF

Free cash-flow Equity ST debt LT debt

10.4.4 Balance sheet

There are estimated significant accumulated P&L losses at BioCAP during the

preproduction phase. In our view BioCAP will be able to remove the accumulated

P&L deficit after the start of production and sales.

10.5 Sensitivity analysis

BioCAP is able to provide a decent return to investors even if actual sales achieved

is only 40% of target calculated or if the price of glucan is lowered to 100 CHF/kg.

Capacity utilization (target sales)IRR 100% 90% 80% 70% 60% 50% 40%

200 118% 111% 104% 95% 86% 75% 62%

175 107% 100% 93% 85% 76% 64% 50%

150 95% 89% 82% 74% 64% 53% 38%

125 82% 76% 68% 60% 50% 39% 22%

100 64% 57% 50% 42% 32% 18% 8%

75 43% 36% 29% 22% 13% 5%beta

-glu

can

pric

e, C

HF/

kg

28


10.6 Risk factors

We may be unable to meet our ongoing needs for additional capital

If we cannot obtain adequate financing or if the terms on which we are able to

acquire financing are unfavorable, our business and financial condition could be

negatively affected. We may have to delay, scale back or eliminate some or all of

our development and marketing programs, if any. We may also have to go to third

parties to seek financing and, in exchange, we may have to give up rights to

some of our technologies, patents, patent applications, potential products or other

assets.

We may be unable to hire and retain key personnel

Our future success depends on our ability to attract qualified

personnel. We may be unable to attract or retain this necessary

personnel. If we fail to attract or retain skilled employees, or if our key

employee fails to perform in his current position, we may be unable to

assist in bringing glucan products to the marketplace and to generate

sufficient revenues to offset operating costs.

If our product infringes the intellectual property rights of others, we may pay

unexpected litigation costs or damages for selling our product.

If BioCAP’s glucan does not satisfy certain government regulations, BioCAP may

be unable to obtain regulatory approval.

We may be unable to obtain and retain appropriate patent, copyright and

trademark protection for our products or manufacturing process.

We cannot guarantee the quality, performance or reliability if BioCAP products in

the current stage of their development.

We are relying upon the skills and experience of BioCAP's managers and

partners to timely and cost effectively install a production facility and

manufacture glucan.

29


11 Appendix

11.1 Patented glucan extraction process

Glucan isolation from brewer's yeast is carried out in three basic extraction steps at

different pH and temperature ranges (see figure) to progressively remove yeast

constituents, ultimately leaving the purified particulate glucan structure. A unique,

patent pending process technology, using an ultrasound loop reactor, allows

particularly mild extraction conditions. In the first step the yeast lysate is removed

from the yeast cells under very mild conditions using ultrasound technology. The

lysate extraction IIxxi is conducted under mild temperature at elevated pH, also using

ultrasound. Lipids and the mannan are then extracted at alkaline pH and high

temperatures in the third step without ultrasound. Between each of the three

extraction steps the liquid phase is separated with a centrifuge. Finally the glucanxxii is

rinsed several times depending on the target quality.

t1 t2 t3

Lysate extraction IpH-range 4 - 7

Lysate extraction II(Protein)

pH-range 8 -12

Lipid andMannan extractionpH-range 11 - 13

20

40

60

80

100[°C]

time

rinsing

temperaturerange I

temperaturerange II

temperature

range III

Figure 5 - Extraction process of glucan in three subsequent steps at different temperature and pH ranges

xxi Extraction step II produces a 60%-70% pure glucan.

xxii Extraction step III produces an 80%-90% pure glucan.

30


11.2 Technology scale-up

A key feature of the developed glucan production process is the scalability of the

technique to produce economically interesting volumes of product glucan. In an

engineering study the scale-up parameters were determined on a lab pilot plant

consisting of a stirring vessel (15 l) and an ultrasound tube reactor (6 l), connected

with a circulation pump. The required size of the stirring vessel is dependent on the

amount of yeast to be treated. Batch size of surplus yeast for industrial plant will be

10'000 kg requiring 2 reactors each of approx. 15'000 l volume. 6 to 8 ultrasound

reactors (each of max 83 l) are required to achieve the calculated ultrasound-

extraction residence time (determined on pilot plant).

Figure 6 shows a scheme of the pilot plant with two stirring vessels, six ultrasonic re-

actors, a separator and a paddle dryer.

Stirrer Tank 115'000 Liters

Ultrasonic Reactors6 x 83 = 498 Litres

Stirrer Tank 215'000 Liters

Separator Dryer

GlucanT1 T2

S1

D1

PUR

UR

PSSC

Figure 6 - Scheme of Production Plantxxiii

xxiii Refer to the appendix “Equipment for industrial plant” for further description

31


11.3 Equipment for industrial plant

Abbr. Equipment No Size Technology

T1, T2 Stirrer Tank 2 15'000 l Standard

UR Ultrasonic reactor 6-8 6-8 x 83 l Scale up engineering from

pilot plant

S1 Separator 1 10'000 l/h Standard

D1 Paddle dryer 1 150 l/h Standard

PUR Feeding Pump

Ultrasonic reactor

6-8 6-8 x 50

l/min

Standard

PS Feeding pump

Separator

1 10'000 l/h Standard

SC Screw-conveyor

or sludge pump

1 4000 l/h Standard

11.4 List of competitors

Balchem Corporation, USA, http://www.balchem.com/

Cell Biotech Europe A/S, Denmark,

http://www.duolac.com/Default.asp?page=1

Gate2Tech, France, http://www.gate2tech.com

Genialab , Germany, http://www.genialab.de/

Glatt GmbH, Armin Prasch, Germany, http://www.glatt.com

Innov’ia, France, http://www.innov-ia.com

Karmat Coating Industries, Israel, http://www.karmat.com/

Micap, UK, http://www.micap.biz/

NIRO, Denmark, http://www.niro.com

TasteTech Ltd., UK, http://www.tastetech.co.uk

Thies Technology Inc., USA, http://www.thiestechnology.com

Ttz Bremerhaven, Germany, www.ttz-bremerhaven.de

32

http://www.ttz-bremerhaven.de/

http://www.thiestechnology.com/

http://www.tastetech.co.uk/

http://www.niro.com/

http://www.micap.biz/

http://www.karmat.com/

http://www.innov-ia.com/

http://www.glatt.com/

http://www.genialab.de/

http://www.gate2tech.com/

http://www.duolac.com/Default.asp?page=1

http://www.balchem.com/


11.5 Micro encapsulation technologies

Spray Drying – mainly flavours, vitamins, fatty acids

Cold Dehydration Process – more volatile substances as vitamins

Spray-Chilling – minerals, fatty acids

Pan Coating – non complex ingredients to extend their shelf life

Fluid Bed Coating - separating acids (ascorbic, lactic, vitamin C) from

other ingredients

Co-extrusion Process - heat-sensitive substances: flavours, vitamins,

colours

Emulsion Evaporation

Evaporative Dispersion Process

Spinning Disk

Coacervation - coat citrus oil, vegetable oils, vitamin A

Inclusion Complexation

33


11.6 Development plan


11.7 Income statement

2009 2010 2011 2012 2013 2014 2015

Net sales 3 141 450 7 684 470 13 049 100 13 290 750 13 532 400 1-3, 1-6 beta glucan 3 071 250 7 512 750 12 757 500 12 993 750 13 230 000 mannan - - - - - lysate 70 200 171 720 291 600 297 000 302 400

COGS 404 261 623 617 882 128 896 494 910 860

Gross profit - - 2 737 189 7 060 853 12 166 973 12 394 256 12 621 540 87% 92% 93% 93% 93%

Payrol 566 400 583 392 1 288 324 1 684 922 2 101 344 2 157 630 2 213 916 GS&A 100 000 150 000 300 000 300 000 300 000 300 000 300 000

EBITDA (666 400) (733 392) 1 148 865 5 075 931 9 765 629 9 936 626 10 107 624 37% 66% 75% 75% 75%

Depreciation - 106 350 212 700 212 700 212 700 212 700 212 700

EBIT (666 400) (839 742) 936 165 4 863 231 9 552 929 9 723 926 9 894 924 30% 63% 73% 73% 73%

ST borrowing interst paidLT borrowing interst paidCash on bank account interst received

Pre-tax income (666 400) (839 742) 936 165 4 863 231 9 552 929 9 723 926 9 894 924

Income taxes - - (142 494) 1 073 314 2 388 232 2 430 982 2 473 731

Net income (666 400) (839 742) 1 078 659 3 789 918 7 164 696 7 292 945 7 421 193 34% 49% 55% 55% 55%

BioCapFinancial forecastIncome statement

(CHF)

35


11.8 Cash-flow statement

2009 2010 2011 2012 2013 2014 2015

Net income (666 400,0) (839 742,0) 1 078 659,1 3 789 917,8 7 164 696,4 7 292 944,7 7 421 193,0 Depreciation - 106 350,0 212 700,0 212 700,0 212 700,0 212 700,0 212 700,0 (Increase) decrease of working capital - - (230 824,4) (363 829,7) (429 671,0) (19 130,9) (19 130,9)

Cash-flow from operating activities (666 400,0) (733 392,0) 1 060 534,6 3 638 788,1 6 947 725,3 7 486 513,8 7 614 762,1

Capital expenditures (635 100,0) (1 491 900,0) - - - - -

Cash-flow from investment activities (635 100,0) (1 491 900,0) - - - - -

Free cash-flow (1 301 500,0) (2 225 292,0) 1 060 534,6 3 638 788,1 6 947 725,3 7 486 513,8 7 614 762,1

Equity 1 500 000,0 2 500 000,0 - - - - - Increase (decrease) ST borrowing - - - - - - - Increase (decrease) LT borrowing - - - - - - -

Cash-flow from financing activities 1 500 000,0 2 500 000,0 - - - - -

Cash-flow from operating activities (666 400,0) (733 392,0) 1 060 534,6 3 638 788,1 6 947 725,3 7 486 513,8 7 614 762,1 Cash-flow from investment activities (635 100,0) (1 491 900,0) - - - - - Cash-flow from financing activities 1 500 000,0 2 500 000,0 - - - - -

Cash inflow (outflow) 198 500,0 274 708,0 1 060 534,6 3 638 788,1 6 947 725,3 7 486 513,8 7 614 762,1

BioCapFinancial forecastCash-flow statement

(CHF)

Cash-flow from financing activities

Cash-flow from operating activities

Cash-flow from investment activities

36


11.9 Balance sheet

beg 2009 2010 2011 2012 2013 2014 2015

Cash 1 500 000,0 198 500,0 473 208,0 1 533 742,6 5 172 530,7 12 120 256,1 19 606 769,9 27 221 532,0 Account receivable - - 258 201,4 631 600,3 1 072 528,8 1 092 390,4 1 112 252,1 Inventory - - 5 850,0 14 310,0 24 300,0 24 750,0 25 200,0

Total current assets 1 500 000,0 198 500,0 473 208,0 1 797 794,0 5 818 441,0 13 217 084,8 20 723 910,3 28 358 984,1

Net PP&E - 2 020 650,0 1 807 950,0 1 595 250,0 1 382 550,0 1 169 850,0 957 150,0 Other 635 100,0

Total fixed assets - - 2 020 650,0 1 807 950,0 1 595 250,0 1 382 550,0 1 169 850,0 957 150,0

Total assets 1 500 000,0 833 600,0 2 493 858,0 3 605 744,0 7 413 691,0 14 599 634,8 21 893 760,3 29 316 134,1

ST borrowingsAccounts payable & accrued expenses - - 33 227,0 51 256,2 72 503,6 73 684,4 74 865,2

Total current liabilities - - - 33 227,0 51 256,2 72 503,6 73 684,4 74 865,2

LT borrowingsTotal long term liabilities - - - - - - - -

share capital 1 500 000,0 1 500 000,0 4 000 000,0 4 000 000,0 4 000 000,0 4 000 000,0 4 000 000,0 4 000 000,0 profit/ loss (666 400,0) (1 506 142,0) (427 482,9) 3 362 434,8 10 527 131,2 17 820 075,9 25 241 268,9

total equity 1 500 000,0 833 600,0 2 493 858,0 3 572 517,1 7 362 434,8 14 527 131,2 21 820 075,9 29 241 268,9

Total liabilities 1 500 000,0 833 600,0 2 493 858,0 3 605 744,0 7 413 691,0 14 599 634,8 21 893 760,3 29 316 134,1

BioCapFinancial forecast

Balance sheet(CHF)

Assets

Liabilities

37


11.10Working capital

2009 2010 2011 2012 2013 2014 2015

Accounts receivables - - 258 201 631 600 1 072 529 1 092 390 1 112 252 30 days 30 days 30 days 30 days 30 days 30 days 30 days

Inventory - - 5 850 14 310 24 300 24 750 25 200 30 days 30 days 30 days 30 days 30 days 30 days 30 days

Total current assets - - 264 051 645 910 1 096 829 1 117 140 1 137 452

Accounts payable - - 33 227 51 256 72 504 73 684 74 865

30 days 30 days 30 days 30 days 30 days 30 days 30 days

Total current liabilities - - 33 227 51 256 72 504 73 684 74 865

Total current assets - - 264 051 645 910 1 096 829 1 117 140 1 137 452 Total current liabilities - - 33 227 51 256 72 504 73 684 74 865

Working capital - - 230 824 594 654 1 024 325 1 043 456 1 062 587

Increase / (Decrease) - - 230 824 363 830 429 671 19 131 19 131

BioCapFinancial forecast

Working Capital(CHF)

Current assets

Current Liabilities

38


11.11Personnel plan

xxiv The production plan, designated in currency CHF, includes a calculation of 18% social costs, with an incremental

wage increase of 3% from year 2.


11.12Strategic partners

TEX-A-TEC AG (www.tex-a-tec.com), a Swiss technology company founded in

1990, is a solution provider focused in the fields of chemical

process-engineering development, process, environmental, plant and control

engineering. While the company focuses on chemical process-engineering, TAT has

an additional focus on product development (mainly targeted at the textile industry)

with the aim of selling the developed products to external partners.

HeiQ Materials AG (www.heiq.com), a Swiss producer of high-performance nano-

composite additives, master batches and textile finishes, sought to

develop a new technology - antimicrobial silver composite – and in

2008 successfully integrated TAT into its operations. Although TAT has been

acquired by HeiQ, it is run as an independent entity.

The Carlsberg Feldschloesschen (www.feldschloesschen.com) is the leading

Swiss beverage company with more than 100 years history.

Feldschloesschen brewery is producing 3,2 mio hl/year and having

market share of 42%.

40

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