Pyrogenesis Inc. · TSX:PYR
Pyrogenesis — PyroGenesis Canada — Investor Presentation (May 2022)
30 slides from Pyrogenesis's investor presentation, May 1, 2022
Slide 1: Investor Presentation May 2022
State-of-the-art industrial technology solving some of the world's most pressing environmental, engineering, and energy problems. Investor Presentation May 2022 NASDAQ:PYR | TSX: PYR | FRA: 8PY
Slide 2: Forward-Looking Statement
Forward-Looking Statement About this Presentation This presentation is dated May 1st, 2022 and is strictly intended to provide general information about PyroGenesis Canada Inc. (“PyroGenesis”, the “Company or “our”) and its business. This presentation does not constitute an offer to sell or the soli
Slide 3: Sector and market capitalization
Sector Nasdaq: PYR Industrial Technology TSX: PYR FRA: 8PY Market Cap (4/27/22) USD$364MM CDN$464MM 3
Slide 4: 25+ years of R&D with Key Support
25+ years of R&D with Key Support • U.S. Military since 1999 • U.S. and Canadian governments • Leading aluminum producers • Automotive and aerospace corps. 4
Slide 5: Major Capital Market Entry
Major Capital Market Entry • TSX: November 2020 • Nasdaq: March 2021 Since Up-list • Revenue +75% to $31.1MM • Backlog +60% to $47.7MM • Doubled manufacturing footprint • Doubled employee count to 120 5
Slide 6: Breakout 2015-2021
Breakout 2015-2021 • U.S. Navy: 4 carrier projects • Partnerships w/RioTinto, Norsk Hydro, others • Major global mining and aluminum clients • Completed 1st acquisition • Certification process w/ global aerospace company 6
Slide 7: How it is. What we do.
How it is. What we do. 7
Slide 8: Natural Plasma
Natural Plasma • The 4th state of matter (Solid-Liquid-Gas-Plasma) • 10,000°F on the surface • 864,000 miles wide 8
Slide 9: PyroGenesis Plasma
PyroGenesis Plasma • Up to 10,000° F • 50Kw to 2MW+ • 16” up to 16 feet • ISO 9001 certified • Full integration with computerized process control systems • Used in various iterations across numerous global industries 9
Slide 10: The Impact of Plasma
Nasdaq: PYR | TSX: PYR | FRA: 8PY The Impact of Plasma Heat Purify Reduce Composites to Original Form Alter State Destroy 10
Slide 11: Five Primary Business Units
Five Primary Business Units Steelmaking/Iron Ore Process Improvement Renewable Natural Gas Aluminum Industry Process Improvement Metal Powders for 3D Printing Waste & Hazardous Chemical Destruction Heat Purify Reduce Composites to Original Form Alter State Destroy 11
Slide 12: Plasma = clean energy
Five Primary Business Units Steelmaking/Iron Ore Process Improvement Plasma = clean energy. Renewable Natural Gas Aluminum Industry Process Improvement Metal Powders for 3D Printing No fossil fuels. Waste & Hazardous Chemical Destruction Zero carbon emissions. Heat Purify Reduce Composites to Origin
Slide 13: Five Primary Business Units
Five Primary Business Units Steelmaking/Iron Ore Process Improvement Renewable Natural Gas Aluminum Industry Process Improvement Metal Powders for 3D Printing Waste & Hazardous Chemical Destruction 13
Slide 14: 1. Steelmaking & Iron Ore Business Unit
1. Steelmaking & Iron Ore Business Unit Steelmaking and iron account for 24% of all industrial C02 emissions 1 14 1. The Financial Times
Slide 15: Upstream Iron Pelletizers Burn Pollutive Heavy Fuels
1. Steelmaking & Iron Ore Business Unit Upstream Iron Pelletizers Burn Pollutive Heavy Fuels 15
Slide 16: Upstream Steel & Iron Processes
1. Steelmaking & Iron Ore Business Unit Upstream Steel & Iron Processes CHALLENGE FOCUS Bunker Diesel • Upstream process • Induration furnaces Current is heavily carbon for iron ore State dependent pelletization PYROGENESIS SOLUTION Hydroelectric Patented process replaces diesel with plasma Future -
Slide 17: Business Unit Growth Timeline and Current Status
1. Steelmaking & Iron Ore Business Unit Business Unit Growth Timeline • 2019: chosen for Swedish consortium study of plasma pelletization • 2020: study data released; mining firms enquire about PyroGenesis • 2021: 3 global mining firms negotiating w/PyroGenesis for plasma Current Status Potential: 1
Slide 18: 2. Aluminum Business Unit
2. Aluminum Business Unit Global aluminum demand is expected to grow 80% by 20501 … … while the industry struggles to meet carbon reduction targets2. 18 1. https://www.reuters.com/world/china/world-aluminium-industry-must-cut-emissions-by-77-by-2050-iai-2021-03-16 2. https://www.iea.org/reports/alum
Slide 19: Aluminum Dross is Poorly Processed, Landfilled as Waste
2. Aluminum Business Unit Aluminum Dross is Poorly Processed, Landfilled as Waste 19
Slide 20: Traditional vs PyroGenesis Dross & Residue Recovery
2. Aluminum Business Unit Rotary Salt Traditional Multi-Step Dross Recovery Process Furnace Approach 2 3 4 5 6 7 8 • off-site • multi-step Hot dross Transported Re-melted Salt added Processed Transported Added back to Hazardous salt- • 78% metal is cooled off site back to facility. original stream.
Slide 21: Continued Increase in Orders and Price
2. Aluminum Business Unit Continued Increase in Orders and Price Q1 2022: 1st of three 10-ton systems, purchase order rec’d for $4MM P 2021: 3 x ten-ton systems LOI’d for ~$10M-$15M R 2019/2020: 7 systems ordered for ~ +$20MM I 2018: 2 system order C 2017: 2nd order for $1MM E 2016: 1st order $600K
Slide 22: Identifying New Insider Opportunities
2. Aluminum Business Unit Identifying New “Insider” Opportunities Upstream Opportunity 1 Upstream Opportunity 2 Partnership with Aluminerie $40MM proposal to help Alouette to develop spent reduce upstream GHGs pot lining waste recovery (confidential). process. Downstream Opportunity 1 Downstream Opp
Slide 23: Revenue Diversification
Revenue Diversification Contracts from Multiple Business Lines Aluminum $4MM purchase order for the first of three Drosrite™ Systems Waste Destruction $9.2MM land-based system to destroy PFAS in U.S. municipal water system Government Contract $1.15MM Phase 2 contract award from Innovative Solutions
Slide 24: Financial Results
Financial Results ($ millions) 35 35 30 30 25 25 20 20 Revenue 15 15 Gross Margin 10 10 Mod. EBITDA 5 5 0 0 -5 -5 -10 -10 20172017 20182018 20192019 20202020 20212021 *Modified EBITDA excludes impact of investment in HPQ Silicon Resources Inc ad share bases expenses 24 Momentum in Backlog Expected t
Slide 25: Market Statistics (As of April 27th, 2022)
Market Statistics (As of April 27th, 2022) PyroGenesis Canada Inc. (NASDAQ: PYR) (TSX: PYR) (FRA: 8PY) Nasdaq Stock Price $2.14 Nasdaq Market Cap $364.1MM TSX Stock Price $2.76 TSX Market Cap $464.4MM Management/Board Ownership ~50% Options 6.285MM Debt ~$0 Cash on Hand (as of 12/31/21) ~12.20MM Bac
Slide 26: Long-Term Growth Strategy
Long-Term Growth Strategy Organic Growth Strategic M&A • Natural growth via 1. Targeting private strong balance sheet acquisitions • AirScience Technologies: • Insider “golden news release 08/12/21 ticket” advantage Dual focus on 2. Joint ventures • Cross sell • Uncover new opportunities • Leveragin
Slide 27: Scalable Manufacturing to Support Growth
Scalable Manufacturing to Support Growth ✓Capacity to support a multi-fold increase in projects and staff ✓High incremental margins by leveraging fixed costs PyroGenesis’ Two Manufacturing Facilities: Turcot & Wanklin: 40,900 ft2 & 31,645 ft2 located in Montreal, Canada 27
Slide 28: Summary
Summary ✓Advanced technologies – vetted and adopted by multiple global industry leaders ✓Over 110 patents granted or pending in the U.S., Canada, and international markets ✓Fully commercialized solutions being actively marketed in five massive markets ✓Long tail of potential additional large-market
Slide 29: The global leader in ultra-high temperature processes for heavy industry
The global leader in improving and commercializing ultra-high temperature processes for heavy industry. 25+ years of R&D and 110+ >110 2 large production The highest commercialization patents employees and testing concentration of factories expertise Focused on Large-Scale Greenhouse Gas Emissions R
Slide 30: Using Plasma-Based Solutions to Reduce the World's Carbon Footprint
Using Plasma-Based Solutions to Reduce the World’s Carbon Footprint Contact: Rodayna Kafal, Vice President www.pyrogenesis.com Investors Relations and Strategic Business Development Phone: (514) 937-0002 E-mail: ir@pyrogenesis.com
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