Slide 1: H1 2021 Presentation
Avantium | presentation 1 H1 2021
Slide 2: Disclaimer
Avantium | presentation 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 Company, the question-and-answer
Slide 3: Management Team
Avantium | presentation Management Team Education: Education: Economics (Amsterdam) and Law (Leiden) and MBA (Boston) Chemistry (Utrecht) Today’s Selected previous / other positions: Selected previous / other positions: Now: Supervisory Board presenters Now: several advisory Sanquin positions, s
Slide 4: Consumers have increasing environmental concerns
Consumers have increasing environmental concerns Pressure on industries to shift to circularity and decouple plastics from fossil eedstock O uonejuasaid | wnqueay
Slide 5: Avantium at a glance
Avantium | presentation Two lead products: FDCA, the chemical building block for PEF: a novel, plant-based polyester targeting $200+ billion markets; entering commercial manufacturing PlantMEG™: a sustainable and cost-effective plant-based alternative for fossil-MEG, a key ingredient for PET a
Slide 6: Investment highlights
Avantium | presentation Leading innovative products FDCA and plantMEG™ are the key ingredients for novel polymer PEF: 100% plant-based, recyclable and degradable with superior performance Addressing $200B+ end-markets with consumers demanding change Pipeline of innovative chemical technologies at va
Slide 7: Partnerships and licensing business model
Avantium | presentation Multiple partners: • To share scale-up requirements and cost-of-capital • To provide validation of the product applications • To form the supply chain from feedstock to end-market Scale Lab scale Pilot plant Flagship plant Industrial scale Demonstrate Innovator Innovator Lice
Slide 8: Global warming stripes
Avantium | presentation Global warming stripes by climate scientist Ed Hawkins 8
Slide 9: Future
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 9
Slide 10: Plastic production and waste
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 2014 2050 >90% of conventional plastic is not recycled (1950 - 2015): Conventional Many plastic applications, such as plastics small-sized bottles are not production recyclable, as they
Slide 11: Avantium | presentation
Avantium | presentation 11
Slide 12: Avantium | presentation
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 16 May 2020 18 May 2020 17 May 2020 22 May 2020 12
Slide 13: From feedstock to end markets
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation = Avantium technology agri crops I FDCA packaging PEF >$150bn sugars textiles non-food biomass >$40bn II 100% plant-based plantMEG™ film forestry & agri >$8bn waste closed-loop recycling /
Slide 14: 100% green plastic bottle needs plantMEG and FDCA
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation A 100% green plastic bottle can only be produced using plantMEG and FDCA Crude oil Sugars PET Bio-PET PEF 100% fossil 100% plants FDCA = furandicarboxylic acid PEF = polyethylene furanoate
Slide 15: PEF circularity benefits
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 1 Renewable: PEF is plant-based instead of fossil- based Reduce: PEF is superior allowing thinner 2 applications and reducing weight by more than 20% in line with European legislation Reus
Slide 16: Highly differentiated performance plastic and applications
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Highly differentiated performance plastic High-value PEF applications Multi-layer bottles 100% PEF 100% PEF as barrier layer providing PLANT-BASED RECYCLABILITY performance and enablin
Slide 17: Paboco Paper Bottle and Carlsberg collaboration
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Paboco®, Paper Bottle Project, an innovation community joining leading brands Carlsberg presented the first prototypes of the Paper Bottle in October 2019, testing in 2020 PEF will pro
Slide 18: plantMEG value proposition
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Consumers are increasingly making Brands must adapt to Large end- Value proposition: environmentally conscious choices: their consumers: markets: The use of plantMEG™ will provide brands w
Slide 19: FDCA, the key building block for PEF
3. MONETISE FDCA, THE KEY BUILDING BLOCK FOR PEF hee uonejuasaid | wniqueny —— O
Slide 20: FDCA scale-up path
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation LABORATORY PILOT FLAGSHIP INDUSTRIAL 2008 2011 - today 2023 onwards 2024 and beyond Amsterdam Geleen Delfzijl Global Kilogrammes/annum Tonnes/annum 5 kilotonnes/annum
Slide 21: Market entry: offtake, collaborations and licensing
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Licensing Product offtake INDUSTRIAL: >250kt/a INDUSTRIAL: €1.5-2.5/kg 100kt/a Collaborations €4-5/kg Mainstream applications FLAGSHIP: 5kt/a Value applications €8-10/kg >70mt/y – 4.2% CAG
Slide 22: Value chain partners
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Some examples: Feedstock Engineering Polymerisation Converters Brand owners Consumers Funding partners (grants): Funding partners (equity): Groningen Consortium 22
Slide 23: FDCA flagship plant at Delfzijl
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Scale Location 5 kilotonnes of FDCA/annum Chemie Park Delfzijl Rendered image of the Flagship Plant design Greenfield plot @ Chemie Park Delfzijl Market focus Timing High-value application
Slide 24: Final Investment Decision key conditions
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Avantium will take the Final Investment Decision (FID) concerning the construction of the FDCA flagship plant when the following Key Conditions are satisfied: 1. Securing €150m financing (
Slide 25: Avantium Renewable Polymers funding structure
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Avantium Renewable Polymers (“RNP”) Groningen Consortium 1 2 €30m new equity €10m €20m Contribution in kind 3 Part of the previously agreed conditional financing of €30m €7.5m grant € Gron
Slide 26: Funding of the flagship plant
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Estimates in €m 35 The Dutch government Corporate Financing Guarantees 40 (GO and GO-C) give banks a Dutch state guarantee of 50%, 150 80% or 90% on medium-sized and large loans issued to
Slide 27: Conditional offtake agreements
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation First five conditional offtake agreements signed for the supply of PEF resin to manufacture food packaging for bottles and films: Major food & beverage brand owner (Global) (The Netherla
Slide 28: Partner testimonials
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation “Toyobo believes PEF is the only bio-based polymer which has superior properties compared to its closest fossil based equivalent. PEF fits well in our strategy to introduce sustainable and
Slide 29: Engineering and supply chain progress
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Engineering: Front-End-Engineering and Design (FEED) phase of the flagship plant is reached the final stages Heads of terms of the engineering, procurement and construction (EPC) con
Slide 30: plantMEG, a key ingredient for PET and PEF
3. MONETISE plantMEG™, A KEY INGREDIENT FOR PET AND PEF la
Slide 31: plantMEG scale-up path
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation LABORATORY PILOT FLAGSHIP INDUSTRIAL 2010 2020 start-up 2024 - 2025 TBD Amsterdam Delfzijl Location TBD Global Kilogrammes 10 tonnes Scale TBD Industrial scale In
Slide 32: Envisioned commercial plant with Cosun Beet Co.
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Envisioned Commercial Plant: • Jointly owned by Cosun Beet Co & Avantium • Products: • Ray plantMEG™ • Ray plantMPG™ • Ray Glycerine • Technology: Ray Technology™ license sale from Avantiu
Slide 33: From beet sugar to plant-based glycols
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Ray plantMEG™ Ray plantMPG™ beet sugar refining Ray Technology™ From beet fields to high quality refined sugar From sugar to high quality plant-based glycols 33
Slide 34: Potential partners and applications
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Multiple partners possible: • Feedstock providers who wish to diversify their markets • Chemical companies with the aspiration to transition to fossil-free chemicals • Consumer brands who
Slide 35: Avantium | presentation
Avantium | presentation 35
Slide 36: Progress since IPO
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation THEME 2017 (@IPO) TODAY 1 Who is driving change? Industry & Governments Consumers 2 Business model (Avantium Renewable Polymers) Joint venture (Synvina) 49% Avantium with minority partners
Slide 37: Milestones 2020-2021 and outlook 2021-2023
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 2020 – Q1 2021 2021-2023 FDCA / PEF €20M PEFerence grant and €30M conditional equity Key commercial condition satisfied funding for flagship FDCA/PEF plant • Meet other Key Conditions
Slide 38: Investment highlights
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Leading innovative products FDCA and plant-MEG are the key ingredients for novel polymer PEF: 100% plant-based, recyclable and degradable with superior performance Addressing $200B+ end-ma
Slide 39: Appendix
Avantium | presentation 39
Slide 40: Appendix contents
Avantium | presentation Financial Overview (39 – 41): Consolidated statement of comprehensive income 2018 -2020 (39) Consolidated balance sheet 2018 -2020 (40) Consolidated cash flow statement 2018 2020 (41) Shareholder structure (42) Technologies & business units (43 - 48 ): FDCA / PE
Slide 41: Consolidated statement of comprehensive income
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation in Euro x 1,000 Year ended 31 December 2020 2019 2018 Continuing operations Revenues 9,863 13,821 11,283 Other income 8,403 4,217 3,637 Total revenues and other income 18,266 18,038 14,92
Slide 42: Consolidated balance sheet
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other in Euro x 1,000 As at 31 December Avantium | presentation 2020 2019 2018 Assets Non-current assets Property, plant and equipment 25,198 27,677 15,186 Intangible assets 559 684 722 Right-of-use assets 9,042 9,732
Slide 43: Consolidated cash flow statement
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other in Euro x 1,000 Year ended 31 December Avantium | presentation 2020 2019 2018 Cash flows from operating activities Loss for the year from continuing operations (22,830) (23,544) (68,378) Adjustments for: - Depre
Slide 44: Shareholder structure
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation Investor Ownership Last Reporting Date Ticker: AVTX – Euronext Amsterdam & Brussels APG 12.0% 15-Apr-2021 # of outstanding shares: 31,253,392 Capricorn 9.9% 19-Apr-2017 Analyst cove
Slide 45: FDCA / PEF properties
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other FDCA / PEF Avantium | presentation Property PET (Amorphous ) PEF (Amorphous) O O O O Molecule O O O O O Density 1.36 g/cm3 1.43 g/cm3 Tm 250-270°C 210-230°C Tg ~76°C** ~88°C** Crystallization time 2-3 min** 20-3
Slide 46: FDCA / PEF biodegradation
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other FDCA / PEF Avantium | presentation Biodegradation (%) = amount of polymer converted to CO2 Cellulose reference: 60 days to 90% biodegradation PEF (weathered): 240 days to 90% biodegradation PEF (unweathere
Slide 47: PlantMEG technology
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other PlantMEG™ Avantium | presentation 2 ethanol 2 ethylene Sugars 2 ethylene oxide plant-MEG (+ 2 CO2) (+ 2 H2O) Sugars glycolaldehyde plant-MEG Sugars Catalysis: 1-step plantMEG™ 47
Slide 48: Avantium Catalysis
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium Catalysis Avantium | presentation Avantium Catalysis provides advanced catalysis R&D Services & Systems to international blue- Business chip players description Avantium Catalysis has provided the t
Slide 49: Biorefinery
1. Financial 1. Governance overview 2. Shareholder 2. Technologies structure 3. Technologies 3. Financial& overview business units 4. Strategic 4. Other partners Biorefinery Avantium | presentation Benefits sugars from residual forestry and agricultural streams Proven technology with the increasin
Slide 50: Electrochemistry
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Electrochemistry Avantium | presentation Benefits electrochemical CO2 conversion Preventing CO2 emissions of industrial parties Enabling cleaner chemical processes Turning waste into valuable products Curr
Slide 51: Sustainability Plan Chain Reaction 2030
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation At Avantium, sustainability is built into our very purpose. It drives our employees, informs our technology development and excites our commercial partners Every technology we develop
Slide 52: The new plastics economy
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation 52
Slide 53: Plastic bans and consumer brand goals
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation “PERU RESTRICTS SINGLE-USE PLASTIC” “D.C. PLASTIC STRAW BAN BEGINS” “CANADA AIMS TO BAN SINGLE- USE PLASTICS BY 2021.” Big consumer brands aim to use 100% reusable, recyclable or composta
Slide 54: Bio-based polymers market growth
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation In 2020, the total production volume of bio-based polymers was 4.2 million tonnes (1 % of the total production volume of fossil-based polymers) The CAGR is, with 8 %, significantly hi
Slide 55: The Guardian article
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation Beer and soft drinks could soon be sipped from “all-plant” bottles under new plans to turn sustainably grown crops into plastic in partnership with major beverage makers. A biochemicals c
Slide 56: ir@avantium.com
Avantium | presentation 56 ir@avantium.com