Slide 1: Fourth Quarter 2023 Corporate Update
Fourth Quarter 2023 Corporate Update March 6, 2024 Confidential Information. Do Not Distribute. Confidential Information. Do Not Distribute. 11
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: PureCycle's New CFO
PureCycle’s New CFO Jaime Vasquez Chief Financial Officer • More than 20 years experience as financial executive • Extensive experience with manufacturing & publicly traded companies • Previously Chief Financial Officer at C&D Technologies & AK Steel Overview Confidential Information. Do Not Distrib
Slide 4: Ironton's Operations are Gaining Momentum
Ironton’s Operations are Gaining Momentum End-to-end operations reached ~60% of benchmark rates Manufacturing Commercial Next Steps • Achieved 8,000 lbs. per hour • First revenue achieved • Scheduled outage in early Q2 end-to-end production. • Product color/opacity has • Q2 improvements should • Suc
Slide 5: Ironton Continues to Make Upward Progress
Ironton Continues to Make Upward Progress Dec 2023 Two Months of Operations November Outage Q4 23 Running 100% PCR feedstocks Beads Leaking Q3/Q4 23 Rate testing to process boundaries Screen Changer Seal Installed Failures Deepening operational expertise Q2/Q3 23 Adsorber Leaks Mechanical Repaired I
Slide 6: Good Progress, but More to Achieve
Good Progress, but More to Achieve Ironton Production Data (000s lbs) Ironton Feed Slate 42 Pellet 207 Flake Production 1,138 Agglomerate PIR PCR Pellet 99 (70%) Production 400 (66%) Purged 316 (22%) Continued Improvements 3 (% Uptime) Co-Product 1 6 95 98 99.8 98 Generated 28 66 71 0 3Q23 3Q 23 Co-
Slide 7: Find, Fix, and Progress
Find, Fix, and Progress Challenges Solutions Timing Co-Product 1 Enhancements for extraction efficiency Co-Product 2 Upgrades for settling performance and CP2 removal Q2-24 Outage Design modifications to improve filtration, cleaning, and pump Filtration reliability Seals Operational expertise scalin
Slide 8: Co-Product 2 Removal is Currently Capacity Limited
Co-Product 2 Removal is Currently Capacity Limited Variation in property of CP2 has Challenge made it difficult to efficiently remove from the system granular Mix & Settle Short-Term Manually removing CP2 into trays Solution Purchasing lower CP2 content feeds Coproduct 2 foam Upgrading the continuou
Slide 9: Core Economics Showing Improvement
Core Economics Showing Improvement Revenue Market demand for premium recyclate is stronger Positive Logistics and tolling costs are higher, but operational capability Feedstock Negative was expanded to handle a wider range of feedstocks Energy Energy consumption is lower than design Positive Co-Prod
Slide 10: Ironton Actual Energy Consumption Lower Than Original Design
IRONTON ACTUAL ENERGY CONSUMPTION LOWER THAN ORIGINAL DESIGN ENERGY FOOTPRINT CARBON FOOTPRINT ENERGY OPEX (Electricity and Natural Gas Only) (MJ / kg PP ) (kg CO2e / kg PP) 2021 Original Independent 3rd Party LCA REPORT 79% 35% IRONTON $9.7M/yr below virgin PP below virgin PP ESTIMATES Early Intern
Slide 11: Positive Market Feedback
Positive Market Feedback Product Contaminants PE % VOCs Carbon Footprint Value Proposition Premium recyclate Virgin-like Very Very 35% below for customers with product specs Low Low Virgin PP 1 color-specific requirements Premium recyclate Early Pellet Varying opacity Very Very Lower than for custom
Slide 12: Initial Product Testing Feedback is Positive
Initial Product Testing Feedback is Positive Thread made of Products Under Consideration with PureFive™ Thread 100% PureFive™ Poly-fiber Poly-fiber Poly-fiber Area Rugs Multi-colored Watchbands Molded Auto Parts Making inroads into multiple industry segments including auto, apparel, consumer goods,
Slide 13: PureCycle is Driving True Circularity
PureCycle is Driving True Circularity PureZero™ partners collect waste, then ship Used stadium cups polypropylene feedstock processed through PreP to Ironton and Purification in Ironton Future branded Stadium cups produced stadium cups used at from Ironton Commercial PureZero™ partner events grade U
Slide 14: Near Term Focus to Advance Ironton Operations
Near Term Focus to Advance Ironton Operations Achieve higher continuous plant rates Consistent product quality Qualify customers on commercial product Execute Q2 outage Overview Confidential Information. Do Not Distribute. Ironton Growth Finance 14 14
Slide 15: Integrating Ironton Learnings into Future Plants
Integrating Ironton Learnings into Future Plants Core Purification Operations Infrastructure & Support Systems Current area of focus for: Feedstock testing & CAPEX Augusta CAPEX reduction Ulsan reduction Feedstock testing and Antwerp Permitting Japan finalizing site selection Our efforts should impr
Slide 16: Cash & Cash Equivalents was $351M at YE 2023
Cash & Cash Equivalents was $351M at YE 2023 (in millions) Sept. 30, 2023 Dec. 31, 2023 change Summary of Major Changes to Cash Total Unrestricted Cash $211.3 $121.6 $(89.7) § $50.0M transfer to Restricted Restricted Cash Cash in Q4 Limited Waiver Augusta Construction Escrow 13.5 14.4 0.9 § $17.5M g
Slide 17: Revenue Bond Breakdown & Purchase Benefits
Revenue Bond Breakdown & Purchase Benefits ($ in millions) Series Amt. Purchased /Issue Size Benefits Include A $216.7 / $219.5 • Removal of virtually all restrictive covenants B $20.0 / $20.0 • Opportunity to remarket the bonds • Termination of the operating revenue escrow account C $10.0 / $10.0 O
Slide 18: Pro-forma Liquidity Post Revenue Bond Repurchase
Pro-forma Liquidity Post Revenue Bond Repurchase PureCycle purchased 99% of the Ironton Revenue Bonds Changes Dec. 31, 2023 Dec. 31, 2023 (in millions) ACTUAL PRO-FORMA Unrestricted Cash $121.6 $47.1 § $74.5M used from unrestricted cash to purchase revenue bonds Availability under R/C $150.0 $200.0
Slide 19: PureCycle Q4 Update Highlights
PureCycle Q4 Update Highlights 1 4 Successfully operated at 8,000 lbs / hr end- Strong customer feedback after testing to-end processing after screen changer applications with commercial grade products installation 2 Successfully producing Co-product 1 and Co- product 2 at commercial scale 5 Created