Avantium N.v. · EURONEXT:AVTX
Avantium — Investor Day (December 2023)
44 slides from Avantium's investor day presentation, Dec 13, 2023
Slide 1: Capital Markets Day 2023 Keynote presentation
Avantium | Capital Markets Day 2023 Ca pita l Ma rkets Da y 2023 Ca pita l Ma rkets Da y 2023 Keynote presenta tion Keynote presenta tion -- DRAFT -- 13 December 2023 13 December 2023 1
Slide 2: Disclaimer
Discla imer Avantium | Capital Markets Day 2023 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS PRESENTATION IS NO
Slide 3: Today's speakers
Toda y’s spea kers Avantium | Capital Markets Day 2023 Tom van Aken Boudewijn van Schaïk CEO CFO 3
Slide 4: 1. Introduction
Avantium | Capital Markets Day 2023 4 1. Introduction
Slide 5: Key themes
Key themes Avantium | Capital Markets Day 2023 Inflection Strategic Securing point ahead focus funding 5
Slide 6: Avantium | Capital Markets Day 2023
Avantium | Capital Markets Day 2023 6
Slide 7: Addressing the plastics pollution problem
Addressing the pla stics pollution problem Avantium | Capital Markets Day 2023 Pla stics pollution: …the problem is …a nd it ca n’t be solved a rea l problem… getting bigger… only by recycling 1,200Mt 11% Low recycling rate 65-95% Limited recovery rate through recycling depending on technologies 365
Slide 8: Accelerating shift to bio-plastics
Accelera ting shift to bio-pla stics Avantium | Capital Markets Day 2023 1 2 3 Increasing consumer Increasing regulatory Major brands setting pressure, demanding support for plant-based ambitious targets but sustainable solutions plastic and recycling: struggling to meet them 20-50% reduction of vir
Slide 9: Driving renewable & circular polymers
Driving renewa ble & circula r polymers Avantium | Capital Markets Day 2023 Bottles PEF Textile community Cosmetics packaging for innovative supply chain Long-term Collaborations offtake Fibre agreements At the centre of the eco-system The PEFerence consortium aims to replace a significant share of
Slide 10: Market traction through wide range of applications
Ma rket tra ction through wide ra nge of a pplica tions Avantium | Capital Markets Day 2023 10
Slide 11: 2. Strategy & ambition
Avantium | Capital Markets Day 2023 11 2. Strategy & ambition
Slide 12: Commercial-stage company in renewable & circular polymers
Commercia l-sta ge compa ny in renewa ble & circula r polymers Avantium | Capital Markets Day 2023 Mission To bring to the market new, cost competitive renewable polymer materials with superior performance characteristics, contributing to reducing carbon emissions, plastic pollution and our dependen
Slide 13: Reaching the inflection point
Rea ching the inflection point Avantium | Capital Markets Day 2023 Technology & product deployment through commercialisation of Avantium’s own production and Avantium’s technologies through licensing, JVs and partnerships World’s first commercial scale Acceleration of Commercialisation FDCA Flagship
Slide 14: 3. FDCA / PEF
Avantium | Capital Markets Day 2023 14 3. FDCA / PEF
Slide 15: PEF: made from our focus product FDCA
PEF: ma de from our focus product FDCA Avantium | Capital Markets Day 2023 PET PEF Compared to PET PEF is a renewable, circular plant-based Crude oil Sugars polymer material Low carbon footprint MEG PTA Plant-ba sed FDCA MEG Superior technical properties 30% 70% 70% 30% 30% 70% Enhanced recyclabilit
Slide 16: FDCA – feedstock agnostic, utilising Gen 1 and Gen 2 feedstocks
FDCA – feedstock a gnostic, utilising Gen 1 a nd 2 feedstocks Avantium | Capital Markets Day 2023 FDCA Flagship Plant is using Gen 1 feedstock: starch – an abundant & low value co-product Current Gen 2 feedstock ✓ Origin Materials licensed facility Commercially available Wood chips Wheat Corn Future
Slide 17: PEF sustainable and superior alternative for PET
PEF susta ina ble a nd superior a lterna tive for PET Avantium | Capital Markets Day 2023 A more susta ina ble …with superior …providing distinctive product… properties… va lue proposition ✓ Up to 20% weight reduction ✓ Longer shelf life leading to food waste reduction 100% bio-based feedstock ✓ Lar
Slide 18: PEF can be used in a very broad range of applications
PEF ca n be used in a very broa d ra nge of a pplica tions Avantium | Capital Markets Day 2023 Bottles Fibers Films & More Beer, Juices, Waters, Textile, Upholstery, Car Food Packaging, Non-Food Soft Drinks Tires, Industrial Fibers Packaging Competing materials: Glass, Competing materials: PET, Nylo
Slide 19: PEF addressable market potential
PEF a ddressa ble ma rket potentia l PEF @ ~2€/kg Avantium | Capital Markets Day 2023 122.3 mta €240bn Expected PEF price reduction is expected to drive a massive expansion of our TAM Flexible films (laminates, food or hygiene packaging, etc.) PEF @ ~5€/kg Injection molding 7.7 mta (bottle caps, med
Slide 20: PEF is both sustainable and price-competitive at scale
PEF is both susta ina ble a nd price-competitive a t sca le Avantium | Capital Markets Day 2023 100kta 250kta Competing with aluminium and glass at €5.0/kg PEF Competing with mono-material PET at €2.5/kg PEF PEF Bottle Glass Bottle Aluminium Can PEF Bottle rPET Bottle PET Bottle 33cl – 13.5g 33cl –
Slide 21: First-of-a-kind FDCA Flagship Plant on stream in 2024
First-of-a -kind FDCA Fla gship Pla nt on strea m in 2024 Avantium | Capital Markets Day 2023 • Sale of PEF & FDCA at commercial scale • Prove technology at 5kta scale • 10-year feedstock supply partnership with Tereos • Commissioning expected to start in Q1 2024 • FDCA production expected on stream
Slide 22: 4. Licensing
Avantium | Capital Markets Day 2023 22 4. Licensing
Slide 23: Licensing the FDCA / PEF technology
Licensing the FDCA / PEF technology Avantium | Capital Markets Day 2023 Generate income Deployment ▪ Avantium to license out technology and IP ▪ Technology licensing deemed to offer the optimal combination of risk and reward ▪ Licensing closely aligned with our capabilities and Licensees Through up-
Slide 24: Owning necessary IP for production and licensing of FDCA
Owning necessa ry IP for production a nd licensing of FDCA a nd its high va lue a pplica tions Avantium | Capital Markets Day 2023 FDCA manufacture: 46 FDCA manufacture: 80 FDCA based polymers, FDCA based polymers, manufacture and applications: 54 manufacture and applications: 143 Others: 6 Others:
Slide 25: First license agreement signed with Origin
First license a greement signed with Origin Avantium | Capital Markets Day 2023 ▪ Non-exclusive technology license agreement for conversion of 1st Generation: Origin-produced CMF derivatives into FDCA at a 100 kta scale Agricultural 2nd Generation: facility crops Wood e.g. wheat residues ▪ Avantium
Slide 26: Global FDCA licensing opportunities for Avantium
Globa l FDCA licensing opportunities for Ava ntium Avantium | Capital Markets Day 2023 Potential Targets ➔ Feedstock suppliers Qualified Technology licensing ➔ Chemical companies opportunities target customers ➔ PET (/polymer) producers Active discussions Advanced discussions ➔ Proximity to feedstoc
Slide 27: We can almost touch it…
Avantium | Capital Markets Day 2023 27 We ca n a lmost touch it…
Slide 28: 5. Strategic focus
Avantium | Capital Markets Day 2023 28 5. Strategic focus
Slide 29: Reinforcing strategic focus: the FDCA/PEF commercial opportunity
Reinforcing stra tegic focus: the FDCA/PEF commercia l opportunity Avantium | Capital Markets Day 2023 FDCA/PEF Volta Technology Ray Technology R&D Solutions technology (PLGA) (plantMEG/MPG) Prioritising getting Exploring strategic EBITDA positive, Flagship Plant on or financial targeting Further st
Slide 30: Ray Technology investments on hold
Ra y Technology investments on hold Avantium | Capital Markets Day 2023 FDCA/PEF Ray Technology to produce plantMEG & technology plantMPG Full priority Further investments on hold Pursuing potential strategic equity partnerships Reallocating and reducing workforce Anticipated direct and indirect cos
Slide 31: 6. Funding growth & execution
Avantium | Capital Markets Day 2023 31 6. Funding growth & execution
Slide 32: Funding focused on the FDCA / PEF opportunity
Funding focused on the FDCA / PEF opportunity Avantium | Capital Markets Day 2023 Renewable Polymers Business Avantium FDCA/PEF technology Completing Commissioning and Licensing acceleration Financial stability, general Construction of the Start-up of the FDCA – Commercial strength corporate items a
Slide 33: Strong financing fundamentals for long-term success
Strong fina ncing funda menta ls for long-term success Avantium | Capital Markets Day 2023 Lenders remain committed Shareholders in Renewable Polymers remain committed FDCA Flagship nearing completion with strong commercial traction Promising licensing pipeline Priority is now to secure funding for
Slide 34: Securing additional funding
Securing a dditiona l funding Avantium | Capital Markets Day 2023 • Fund Avantium’s share of the financing package for Avantium Renewable Polymers • Fund ongoing activities incl general Equity raise of corporate and R&D € 50m • Be properly capitalised and a financially with the option to increase by
Slide 35: Avantium Renewable Polymers cost update
Ava ntium Renewa ble Polymers cost upda te Avantium | Capital Markets Day 2023 €255m 23 • Interest impacted by unprecedented rise in €192m interest rates 12 83 • Running costs impacted by inflation, longer 64 commissioning period, and additional business requirements 116 149 • FDCA Flagship Plant CA
Slide 36: Financing package Avantium Renewable Polymers
Fina ncing pa cka ge Ava ntium Renewa ble Polymers Avantium | Capital Markets Day 2023 Shareholder loans Use of the proceeds Debt facility increase Financing the cost increase of €15.0m approximately €64.5m • €33m CAPEX Total Groningen consortium €2.5m €64.5m contribution • €19m OPEX €4.2m €42.8m Wo
Slide 37: Use of proceeds
Use of proceeds Avantium | Capital Markets Day 2023 FDCA/PEF 80% Execution €50m & Growth General Corporate 15% Volta 5% €20m Strengthening financial profile 37 37
Slide 38: Focus on revenue and EBITDA generation
Focus on revenue a nd EBITDA genera tion Avantium | Capital Markets Day 2023 Growing revenue from products and services R&D Solutions Business: business – pursuing strategic growth opportunities Average Illustrative Installed Annual selling EBITDA capacity turnover FDCA/PEF Sales: price margin 5kta
Slide 39: Focus and execution leading to growth
Focus a nd execution lea ding to growth Avantium | Capital Markets Day 2023 Illustrative financial performance: based on assumption that FDCA Flagship Plant is on stream in 2024 and multiple technology licenses have been sold ~€100m revenue 5 1 2023E 2024E 2025E 2026E 2027E 2028E R&D Solutions FDCA
Slide 40: Funding key for growth & execution
Funding key for growth & execution Avantium | Capital Markets Day 2023 Commissioning and start-up of FDCA Focusing on capital Flagship Plant is and cost discipline imminent Raising equity to be properly capitalised to reach the inflection point Commercial traction Strong support from ~€500m contract
Slide 41: 7. Key takeaways
Avantium | Capital Markets Day 2023 41 7. Key takeaways
Slide 42: Key takeaways / Investment highlights
Key ta kea wa ys / Investment highlights Avantium | Capital Markets Day 2023 Strong commercial traction, with 15 offtakes and 1 technology license to 1 date Most advanced FDCA and PEF player worldwide, contributing to the 2 transition of the chemical industry towards renewable and circular polymer m
Slide 43: Conclusion
Conclusion Avantium | Capital Markets Day 2023 Inflection Strategic Securing point ahead focus funding 43
Slide 44: Q&A
Avantium | Capital Markets Day 2023 44 Q&A