Slide 1: Fourth Quarter 2021 Corporate Update
Fourth Quarter 2021 Corporate Update March 9, 2022 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this Presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including
Slide 3: Q4 Update: Making Strong Operational Progress
Q4 Update: Making Strong Operational Progress OPERATIONS FEEDSTOCK COMMERCIAL FINANCE • Ironton Purification • Signed new LOIs that • Expanded commercial • Closed $250M private planned to be operational account for an increase agreement footprint; equity capital raise to in Q4 2022; PreP expected of
Slide 4: Continuing Our Global Path to a Billion Pounds per year
Continuing Our Global Path to a Billion Pounds per year North America* Ironton Q4 2022 Augusta #1 Q4 2023 Augusta #2 Q4 2023 130 Augusta #3 Q2 2024 887 130 Augusta #4 Q2 2024 Augusta #5 Q1 2025 Augusta #6 Q1 2025 Europe* NE Europe Q4 2024 Asia* Ulsan, SK Q4 2024** Japan (Mitsui) TBD * Completion dat
Slide 5: Ironton On Track for Q4 Start-up
Ironton On Track for Q4 Start-up Ironton site construction progressing well • 150-220 construction craftsmen on site daily • 90% of utilities equipment on site; plan to energize in March • 65% of PreP equipment on site; soft start targeted for August Module construction is on track • All 26 modules
Slide 6: Augusta Ready to Break Ground
Augusta Ready to Break Ground Current Status What How Why + • Groundbreaking scheduled for • Phase 1: Build 2 lines, 130M • 4 months into 24-month • Expect very strong project March 22, 2022 lbs/yr per line project schedule; leveraging returns as higher product • Long lead purchase initiated • First
Slide 7: Distributed PreP Strategy Delivers Strong Economics and Feed Security
Distributed PreP Strategy Delivers Strong Economics and Feed Security 1 Northeast PreP Advanced Sorting + Wash Attractive standalone unit 75-150M lbs PP/yr economics; estimated 2-3yr TBD 2023 payback on investment 2 Optimize sort operations to extract no. 5 regardless of mixed plastics bale quality
Slide 8: Securing Feedstock: New LOIs for 60 million Pounds
Securing Feedstock: New LOIs for 60 million Pounds Post-Consumer Curbside • 445M pounds of opportunities identified PureCycle • Segregated bales • 30M pounds contracted Pipeline Volume • Comingled bales Contracted/LOI (lbs) Post-Consumer • 1.4B pounds of opportunities identified Non-Curbside • 60M p
Slide 9: Strong Contracted Sales Growth in Q4
Strong Contracted Sales Growth in Q4 • Ironton sold out; progress in Augusta with Offtake Pipeline Q3 2021 Q4 2021 Lines 1 & 2 expected to be sold out in Q2 (Pounds) • Continue to see strong demand across 10% 80% 38% packaging and consumer goods market 376 segments 343 • Market response to Feedstock
Slide 10: PureCycle Margins Resilient through Market Cycles
PureCycle Margins Resilient through Market Cycles Normal Pandemic High Commodity Volatility Shutdown Volatility 151.00 117.00 • PureCycle EBITDA Margins* would 113.00 have performed well across market Virgin PP cycle (cents/lb) 54.00 37.75 #5 Bale SE 29.50 • Feedstock + pricing program is gaining 34
Slide 11: PureCycle LCA Indicates Advantage vs Fossil Plastics
PureCycle LCA Indicates Advantage vs Fossil Plastics Carbon • PureCycle expects to improve customer value proposition 35% below virgin PP with tangible alternative to expensive carbon credit purchase programs 1.54kg CO2 per kg of PP resin • Significant reductions expected relative to fossil-based PP
Slide 12: First FDA LNO Submission is Progressing as Planned
First FDA LNO Submission is Progressing as Planned TIMELINE • PureCycle is working with the FDA to obtain the first LNO decision • The FDA LNO process will be repeated for new feedstocks many times over next several years; this is LNO FDA Follow Up PCT Submits expected and normal Submission Question
Slide 13: Despite Difficult Market Conditions, PureCycle Receives Strong Support in a $250M Private Equity Raise
Despite Difficult Market Conditions, PureCycle Receives Strong Support in a $250M Private Equity Raise PureCycle executed a • Investors purchased 35.7 million shares and warrants for ½ share for $7.00 per share $250M private equity • Transaction will close with proceeds of approximately $250 million
Slide 14: Q4 Balance Sheet and Liquidity Update
Q4 Balance Sheet and Liquidity Update (IN MILLIONS) Sept. 30, 2021 Dec. 31, 2021 change Summary of Cash and Cash Equivalents $36.5 $33.3 $(3.2) Liquidity Changes Debt Securities Available for Sale 184.6 167.4 (17.2) Total Unrestricted $221.1 $200.7 $(20.4) $431.2M Available Restricted Cash Ironton P
Slide 15: Strategic Decisions Strengthen Business Model
Strategic Decisions Strengthen Business Model Key Decisions Strategic Rationale • Increased access to feedstock, lower expected logistics costs Distributed PreP Facilities • Strong standalone PreP economics: Expect ~2-3yr payback w/ 3-10 cents per pound (cpp) on PP improvement • Aligned model with e
Slide 16: PureCycle Continues to Build Operational Momentum
PureCycle Continues to Build Operational Momentum 1 Ironton on-track for Q4 2022 operation; Augusta breaking ground on March 22, 2022 5 Broadened our converter network with the addition of Winpak as a new customer 2 6 1st regional PreP facility should Independent LCA estimates 35% carbon be operatio