Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call The world’s leading carbon negative materials company August 9, 2023
Slide 2: Forward looking statements and disclaimers
Forward looking statements and disclaimers FORWARD-LOOKING STATEMENTS This presentation and the accompanying oral presentation have been prepared by Origin Materials, Inc. (“Origin”) for informational purposes only and not for any other purpose. Certain statements included in this presentation that
Slide 3: Q2 2023 highlights
Q2 2023 highlights • Origin 1 initiated start-up, in-line with guidance. Plant to produce CMF, HTC, and oils and extractives • FDCA mass production to move forward to Origin 2, rather than Origin 3 as initially planned, due to strong commercialization progress and higher-margin opportunities • Origi
Slide 4: Origin Materials – At a Glance
O O Origin Materials – At a Glance H Cl The world’s leading carbon negative materials company Disruptive Materials Decarbonizing Platform Enormous TAM Cost advantaged Technology Company Technology C >$1+ Trillion $390Bn near-term focus in Timber feedstocks are Origin produces low and Enables custome
Slide 5: Origin 1 initiated start-up, in-line with prior guidance (1 of 2)
Origin 1 initiated start-up, in-line with prior guidance (1 of 2) Plant to scale up and deploy core technology platform, with a focus on funded joint development programs 5
Slide 6: Origin 1 initiated start-up, in-line with prior guidance (2 of 2)
Origin 1 initiated start-up, in-line with prior guidance (2 of 2) Plant to scale up and deploy core technology platform, with a focus on funded joint development programs 6
Slide 7: The Origin Platform – CMF building block is historic
The Origin Platform – CMF building block is historic The most recent chemical building block since polycarbonate, acrylate, and urethanes were commercialized in the 1980s1 New fundamental building blocks are historic events driven by low cost of production, high versatility, and differentiated perfo
Slide 8: The Origin Platform – CMF application breadth is expansive
The Origin Platform – CMF application breadth is expansive Competitive production cost, versatility, and differentiated performance unlock new pathways for making products Packaging Textiles Apparel Belts and machine parts Tires Insulation Automotive Furniture Soaps Glues Detergents Paints & coating
Slide 9: FDCA – Mass production moved forward to Origin 2, rather than Origin 3
FDCA – Mass production moved forward to Origin 2, rather than Origin 3. Customer demand for FDCA from Origin 2 is robust and growing Acceleration due to strong commercialization progress, higher-margin opportunities, and near-term drop-in applications • Higher margins due to performance advantages R
Slide 10: FDCA – We will begin with drop-in applications that improve the performance of PET
FDCA – We will begin with drop-in applications that improve the performance of PET and are validated on commercial-scale equipment FDCA complements sustainable PET production strategies and is necessary for 100% bio-PET and future PEF production Drop-In PET/F Co-Polymer PEF Polymer Co-Polymer of FDC
Slide 11: Origin 2 – Profound market shifts present both opportunities and challenges
Origin 2 – Profound market shifts present both opportunities and challenges Opportunities: Stronger than anticipated demand for higher-margin, performance-advantaged products including: Updated Origin 2 Outlook • FDCA • PEF and PET/F Phased Construction Plan • Carbon black • Liquid biofuels Challeng
Slide 12: Origin 2 – Phased construction: First oils and extractives, then CMF and HTC
Origin 2 – Phased construction: First oils and extractives, then CMF and HTC Adapting in this manner to the higher-cost environment is expected to reduce project risk on the path to profitability Phase 1: Oils and Extractives Phase 2: CMF and HTC Late 2026 to 2027 2028 • Independently profitable • P
Slide 13: Customer demand exceeds $10Bn, a more than tenfold increase
Customer demand exceeds $10Bn, a more than tenfold increase since announcement to go public in February 2021 Total demand consists of offtake agreements or capacity reservations1 Customer Demand, $Bn cumulative Select Origin Customers & Partners >$10 Bn ~$1Bn Major U.S. Major Asian Major Japanese Ma
Slide 14: Sustainea Bioglycols Partnership
Sustainea Bioglycols Partnership “Origin Materials and Sustainea Launch Strategic Partnership to Develop 100% Bio-Based Materials” – August 8, 2023 • Partnership centered on bio-based FDCA and bio- based PTA produced using Origin’s technology platform and Sustainea’s bio-based glycol products and ma
Slide 15: FDCA – Origin Materials and Husky Achieve Commercialization Milestone
FDCA – “Origin Materials and Husky Achieve Commercialization Milestone for Advanced Packaging” – July 31, 2023 • Husky is a leading technology provider of injection molding equipment and services to the food and beverage packaging and consumer products industries • Recyclable PET polymer incorporati
Slide 16: Terphane Partnership
Terphane Partnership “Origin Materials and Terphane Form Strategic Partnership to Produce Sustainable, High-Performance Packaging” – August 3, 2023 • Terphane, a global leader in specialty PET polyester films, signed a capacity reservation agreement to purchase bio- based PEF polymer from Origin Mat
Slide 17: Proman Partnership
Proman Partnership “Origin Materials and Proman Partner to Produce Low-Carbon Biofuels” – August 9, 2023 • Proman, one of the world’s largest producers of methanol, and Origin Materials signed an agreement to explore the production and global distribution of biofuels • Proman expertise includes engi
Slide 18: Origin Materials Creates Sustainable PET Bottle Caps, Enabling 'All PET Mono-Material'
“Origin Materials Creates Sustainable PET Bottle Caps, Enabling ‘All PET Mono- Material’ Bottle & Cap Solutions, a Breakthrough in Recycling and Circularity” – August 7, 2023 • 100% PET caps and tamper-resistant closures can be made using recycled or bio-based content • “Mono-material” makes “100% r
Slide 19: The Origin Platform – Sustainability AND performance
The Origin Platform – Sustainability AND performance The platform is stronger today than when Origin became publicly traded in February 2021 We became public with Since then, we have added sustainability at our core… functional advantages Emphasis on competitive cost of production and Since develope
Slide 20: The Origin Platform – Leading biomass conversion technology
The Origin Platform – Leading biomass conversion technology We expect Origin 3 and beyond to continue improving platform economics Value uplift, biomass conversion technology crack spread 2000 1800 1600 Crack Spread ($ / dry mT Biomass) 1400 1200 1000 800 600 400 200 0 Fuel Pellet Export Fermentatio
Slide 21: The Origin Platform – Margins expected to continuously improve
The Origin Platform – Margins expected to continuously improve Product development, versatility of platform intermediates, and economies of scale to drive long-term value creation Illustrative gross margins for Origin’s intermediates, $/ton wood residue input versus feedstock cost Anticipated margin
Slide 22: Capacity is our competition – Two-pronged approach brings capacity online
Capacity is our competition – Two-pronged approach brings capacity online Demand is proven and the growth of our company will be determined by our ability to add capacity Own and Operate Global Licensing Distillers Mixed Grains Paper Wheat Wheat Straw Straw ORIGIN 1 PLANT Orchard Corn Waste Waste ON
Slide 23: Jim Stephanou joins Origin's Board of Directors
Karen Richardson Kathy Fish Jim Stephanou Charles Drucker Chair joins Origin’s • Board Member at BP, • Former Chief Research, • Former Chairman & CEO Exponent Development and at Vantiv/WorldPay Innovation Officer at Board of Directors • Former Board Member at • Over 30 years as highly Procter & Gamb
Slide 24: Q2 2023 financials in-line with previous outlook
Q2 2023 financials in-line with previous outlook • Net loss was $6.3 million for the second quarter compared to net income of $46.9 million in the Financial operating metrics prior-year period for Q2 2023 are in-line • With ramp up of employee hiring and operations in support of construction, produc
Slide 25: Inflation Reduction Act offers potential for incremental government incentives
Inflation Reduction Act (“IRA”) offers potential for incremental government incentives for the construction of Origin’s plants Advanced Industrial Facilities Deployment Program (“AIFD”) expected to provide feedback by the end of the year • The IRA is expected to significantly expand the Section 48C
Slide 26: Appendix
Appendix
Slide 27: Origin 2 economic summary
Origin 2 economic summary Phase 1 & 2: Phase 1: Oils and Extractives Metric Oils and Extractives & CMF and HTC with FDCA focus Start-up Late 2026 to 2027 2028 CAPEX <$400M <$1,600M Feedstock ~275 kta ~500 kta Revenue ~$140M / year ~$600M / year EBITDA ~$80M / year ~$280M / year 27
Slide 28: Share count as of 6/30/2023
Share count as of 6/30/2023 Class Outstanding Shares of Common Stock Total Shares Outstanding1 138,998,724 Shares subject to forfeiture1 4,500,000 Total Shares Outstanding, including Shares subject to forfeiture1 143,498,724 Shares Reserved for Future Issuance Pursuant to Potential Earnouts, Outstan
Slide 29: Reconciliation of GAAP and Non-GAAP results
Reconciliation of GAAP and Non-GAAP results We believe that the presentation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA) is appropriate to provide additional information to investors about our operating profitability adjusted for certain non-cash ite
Slide 30: The world's leading carbon negative materials company
The world’s leading carbon negative materials company