Avantium N.v. · EURONEXT:AVTX
Avantium — Investor Presentation (April 2022)
44 slides from Avantium's investor presentation, April 2022
Slide 1: Investor Presentation April 2022
Avantium | Investor Presentation April 2022 1 Investor Presenta tion April 2022
Slide 2: Disclaimer
Discla imer Avantium | Investor Presentation April 2022 This presentation has been prepared by Avantium N.V. (the “Company”). For the purposes of this notice, the presentation that follows (the “Presentation”) shall mean and include the slides that follow, the oral presentation of the slides by the
Slide 3: Today's speakers
Toda y’s spea kers Avantium | Investor Presentation April 2022 Tom van Aken Bart Welten CEO CFO Since 2002 Since 2020 25y of industry experience 30+y of industry experience Selected previous experience: Selected previous experience: 3
Slide 4: Transaction overview
Tra nsa ction overview Term sheet overview Avantium | Investor Presentation April 2022 Issuer Listing Venue • Euronext Amsterdam & Euronext Brussels • Public offering and private placement of up to €45m • Maximum subscription price set at €4.60 per new share. Size and Price • The maximum subscriptio
Slide 5: Introduction
Avantium | Investor Presentation April 2022 5 Introduction
Slide 6: Avantium at a glance: a pioneer in renewable chemistry
Ava ntium a t a gla nce: a pioneer in renewa ble chemistry Avantium | Investor Presentation April 2022 Who A pioneer in the emerging industry of renewable chemistry we are Our Create disruptive technologies to accelerate transition from missio fossil-based to renewable and circular plastics n Our A
Slide 7: Increasing worldwide use of plastics causes major environmental challenges
Increa sing worldwide use of pla stics ca uses ma jor environmenta l cha llenges Avantium | Investor Presentation April 2022 Global plastics production will triple by 2050 Plastic production and waste cause major environmental problems Plastic pollution 2020 2050 : : 1:5 >1:1 1,200Mt 2050 2030 367Mt
Slide 8: Next generation consumers calling for action
Next genera tion consumers ca lling for a ction Avantium | Investor Presentation April 2022 85% ofthatglobal respondents among millennials feel strongly companies should help improve the environment Governments putting Companies throughout the value chain are regulatory targets & frameworks in place
Slide 9: Fossil-based products are expected to phase out
Fossil-ba sed products a re expected to pha se out Avantium | Investor Presentation April 2022 World plastic and chemicals production (in Mt) Key market drivers 1,200 Demographic growth and increasing purchase power of a growing worldwide middle class 1,200 Sustainable Tougher regulations geared tow
Slide 10: Avantium offers disruptive technologies for the production of PEF
Ava ntium offers disruptive technologies for the production of PEF Avantium | Investor Presentation April 2022 FDCA Packaging Textile PEF Films plantMEG Technology pipeline Numerous other applications 10
Slide 11: Cutting-edge PEF led to strategic collaborations & recent offtake agreements
Ava ntium’s cutting-edge PEF led to numerous stra tegic colla bora tions & recent offta ke a greements Avantium | Investor Presentation April 2022 Development of PEF for beverage applications “We highly value the many performance and sustainability features of PEF” R&D High collaborations PEFerence
Slide 12: Avantium's successful trajectory towards growth
Ava ntium’s succesful tra jectory towa rds growth Avantium | Investor Presentation April 2022 20+ 135+ €10m (1) 2 Strategic & 225+ 3 Years of Profitable Core commercial Patents Employees Pilot plants R&D catalysis business products partners Sale of 1st PEF licenses ▪ EGM approval capital raise 2026
Slide 13: Key investment highlights
Key investment highlights Avantium | Investor Presentation April 2022 1 Attractive 2 Cutting-edge products addressable & technologies markets Accelerating market adoption to renewable & circular plastics 3 Successful 4 Clear path to execution of growth strategy 13
Slide 14: Part 1: Cutting-edge products & technologies
Avantium | Investor Presentation April 2022 Pa rt 1: CUTTING-EDGE PRODUCTS & TECHNOLOGIES 14
Slide 15: PEF is a 100% plant-based plastic made from FDCA and plantMEG
PEF is a 100% pla nt-ba sed pla stic ma de from FDCA a nd pla ntMEG Avantium | Investor Presentation April 2022 Unique technological platform centered around Broad range of Feedstock flexible catalysis process applications Agri crops FDCA Packaging Plant-based sugar Film PEF Textile Agri & forestry
Slide 16: Avantium's PEF addresses the need for a circular new plastics economy
Ava ntium’s PEF a ddresses the need for a circula r new pla stics economy Avantium | Investor Presentation April 2022 PEF solves the challenges of today’s conventional plastics Challenges cannot be solved by recycling only Unintended America simply does not have enough recycled leakage PET supply or
Slide 17: Showing enhanced performance while being cost competitive
Showing enha nced performa nce while being cost competitive Avantium | Investor Presentation April 2022 Enhanced product properties Gas barrier Today: Enhanced Cost High-value applications performance competitive Volume economies of scale Lightweight Tomorrow: Value applications Heat Longer-term: re
Slide 18: plantMEG is a key drop-in ingredient for large end-markets
pla ntMEG is a key drop-in ingredient for la rge end-ma rkets Avantium | Investor Presentation April 2022 Avantium value proposition plantMEG will provide brands with a sustainable & innovative ingredient Key ingredient in a wide range of Pilot Plant successfully end applications (PEF, fibers, commi
Slide 19: Part 2: Attractive addressable markets
Avantium | Investor Presentation April 2022 19 ATTRACTIVE ADDRESSABLE Pa rt 2: MARKETS
Slide 20: Avantium targets large and diverse PEF and MEG markets
Ava ntium ta rgets la rge a nd diverse PEF a nd MEG ma rkets Avantium | Investor Presentation April 2022 PEF addressable market – MEG addressable market – 100mt+ 35mt+ Total expected Total value today value $200bn+ $23bn+ Mainstream Packaging and Solvent applications bottles ($160bn) Value Tomorrow
Slide 21: Addressing an extensive number of end-markets over time
Addressing a n extensive number of end-ma rkets over time Avantium | Investor Presentation April 2022 Today Tomorrow Longer-term High-value applications Value applications Mainstream applications Specialty bottles: PEF bottles to replace PEF bottles to replace • Multi-layer • Glass bottles • PET bot
Slide 22: PEF has enhanced product performance
PEF ha s enha nced product performa nce Avantium | Investor Presentation April 2022 Sustainability vs degradability Selected companies Plant- based PEF PLA PBS PHA PEF Bio- PET Most mature PEF player Fossil- based PE/PP rPET PLA Non-degradable Degradable PHA Barrier properties(1) 0.1 EVOH MXD6 1 PBS
Slide 23: Part 3: Successful execution of strategy
Avantium | Investor Presentation April 2022 23 SUCCESSFUL EXECUTION OF STRATEGY Pa rt 3:
Slide 24: From technology development to commercialization
From technology development to commercia liza tion Avantium | Investor Presentation April 2022 R&D disruptive Technology Demonstrate Commercial roll- technologies testing technology & market out testing Innovative Develop technology research across economic feasibility distruptive Product validation
Slide 25: The world's first plant producing FDCA on a commercial scale
The world’s first pla nt producing FDCA on a commercia l sca le Avantium | Investor Presentation April 2022 Location Timing Scale Objective Chemie Park Construction 5 kilotonnes of Prove technology Delfzijl (NL) completion 2023 FDCA p/a at scale: & operational Sales PEF & 2024 Unlock licensing busin
Slide 26: FDCA Flagship Plant secured financing breakdown
FDCA Fla gship Pla nt secured fina ncing brea kdown Avantium | Investor Presentation April 2022 Grants (€27m): Funding sources ▪ €20m PEFerence grant(1) ▪ €7.5m grant from the €45m National Programme Groningen Third Party Equity (€30m): €90m€192m ▪ €20m equity from Groningen consortium €30m ▪ €10 mi
Slide 27: Successfully de-risked across the entire value chain
Successfully de-risked a cross the entire va lue cha in Avantium | Investor Presentation April 2022 ✓ Plant financing secured ✓ Offtake agreements committed * Over 50% capacity secured Major food & beverage brand owner Engineering & construction ✓ Supply chain partnerships signed ✓ partners contract
Slide 28: Well-defined and scalable go-to-market strategy for PEF/FDCA
Ava ntium ha s a well-defined a nd sca la ble go-to-ma rket stra tegy for PEF/FDCA Avantium | Investor Presentation April 2022 Flagship Plant Industrial Plant (100kt/a) Industrial (>250kt/a) (5kt/a) In-house production Licensing Licensing Product characteristic s Today Tomorrow Longer-term High-valu
Slide 29: Part 4: Clear path to growth
Avantium | Investor Presentation April 2022 29 CLEAR PATH TO GROWTH Pa rt 4:
Slide 30: Avantium tomorrow: further develop & commercialize its innovative technologies
Ava ntium tomorrow: further develop & commercia lize its innova tive technologies Avantium | Investor Presentation April 2022 FDCA plantMEG CO2 based polymers Biorefinery 30
Slide 31: Construction of its plantMEG Commercial Plant
Construction of its pla ntMEG Commercia l Pla nt, levera ging on the succesful experience in FDCA Avantium | Investor Presentation April 2022 Success of FDCA strategy execution will accelerate plantMEG Location Joint venture Size Northwestern Europe Jointly owned by Cosun Beet >100kt per annum execu
Slide 32: Momentum to accelerate in 2022 driven by increasing PEF adoption
Momentum to a ccelera te in 2022 driven by increa sing PEF a doption Avantium | Investor Presentation April 2022 2022 2023-2024 ▪ Further broaden PEF use beyond packaging applications First LOIs plantMEG ▪ Additional offtake agreements PEF/FDCA Flagship Plant ▪ Development PEF partnerships Finalise
Slide 33: Key drivers supporting Avantium's market potential
Key drivers supporting Ava ntium’s ma rket potentia l Avantium | Investor Presentation April 2022 Plant Pricing and Market segments capacities profitability and geographic opportunity Milestone Number of industrial payments/ licenses per royalty technology fees Timing and Flagship Plant execution 33
Slide 34: Illustrative revenue and profitability model
Illustra tive revenue a nd profita bility model showca sing the la rge fina ncia l opportunity Avantium | Investor Presentation April 2022 Illustrative market targeting Revenue & profitability mechanics PEF MEG Catalysis Continued organic growth in line with historical levels 1 Estimated market size
Slide 35: Use of proceeds from future capital raise
Use of proceeds from future ca pita l ra ise Avantium | Investor Presentation April 2022 plantMEG: ▪ Further develop plantMEG technology (technical validation, commercial & application validation) ▪ Scale-up towards further commercialization via technology licensing Other technologies: ▪ Further dev
Slide 36: Key takeaways
Key ta kea wa ys …Forming the foundation Avantium | Investor Presentation April 2022 for commercialization ✓ Construct FDCA Flagship Plant Key milestones successfully INNOVATION-DRIVEN achieved… TECHNOLOGY LEADER ✓ Construct plantMEG Commercial ✓ Proven R&D and innovative IN RENEWABLE Plant technolo
Slide 37: Q&A
Avantium | Investor Presentation April 2022 37 Q&A
Slide 38: Appendix
Avantium | Investor Presentation April 2022 38 Appendix
Slide 39: Avantium: experienced leadership team
Ava ntium: experienced lea dership tea m Avantium | Investor Presentation April 2022 Management Team Education: Education: Chemistry (Utrecht) and Economics Law (Leiden) and MBA (Boston) (Amsterdam) Selected previous / other positions: Selected previous / other positions: ▪ Now: Supervisory Board Sa
Slide 40: Company strategy by business line
Compa ny stra tegy by business line Avantium | Investor Presentation April 2022 (support costs / general Capital raise €45m planned Avantium NV corp. purposes require funding) Catalysis Renewable Polymers Renewable Chemistries Corporate Technologies CO2 based polymers, R&D services & systems FDCA /
Slide 41: Avantium's industrial strategy compares favorably to its core peers
Ava ntium’s industria l stra tegy compa res fa vora bly to its core peers Avantium | Investor Presentation April 2022 ✓ Avantium’s industrial Busine Peers 3M market Produ Announced commissioning year / run-rate capacity strategy is not an ss cap. range ct Before exception - Exact same model (€m)(1)
Slide 42: Avantium tomorrow: delivering the next biochemicals from disruptive technologies
Ava ntium tomorrow: Successfully delivering the next bio chemica ls from disruptive technologies Avantium | Investor Presentation April 2022 Today Tomorrow PEF Building blocks CO2 based FDCA plantMEG Biorefinery polymers Catalytic conversion of plant- Conversion of sugars into Conversion of CO2 into
Slide 43: PEF is able to address value-added markets thanks to enhanced performance
PEF is a ble to a ddress va lue-a dded ma rkets tha nks to enha nced performa nce Avantium | Investor Presentation April 2022 Thermal Barrier Properties Properties Oxygen CO2 Water Glass transition Melting point Barrier Barrier Barrier temperature temperature 235°c 265°c 10.0x 8.0x 86°c 74°c 1.0x 1.
Slide 44: Global warming stripes by climate scientist Ed Hawkins
Avantium | Investor Presentation April 2022 Global warming stripes by climate scientist Ed Hawkins 44