Purecycle Technologies, Inc. · NASDAQ:PCT
Purecycle Technologies — Investor Presentation (December 2024)
28 slides from Purecycle Technologies's investor presentation, December 2024
Slide 1: PureCycle Technologies, Inc.
PureCycle Technologies, Inc. December 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release contains forward-looking statements, including statements about the continued expansion of PureCycle’s business plan, the expected time of commercial sales, the commercialization of Ironton operations, the expected increase in production of the Ironton o
Slide 3: Why We Are Here
Why We Are Here 3
Slide 4: A New Era is About to Begin
A New Era is About to Begin… 830+ billion 16 billion 4.4 billion ~0.1 billion pounds of plastic produced pounds of PP pounds of unmet need to pounds per year of each year(1) waste generated each year(3) reach 2025 PCR Goals(4) expected capacity at Ironton when fully operational ~420 billion 1.9 bill
Slide 5: Positioning for Significant Global Opportunity
Positioning for Significant Global Opportunity Global PP Demand in 2023 In 2023 187 Billion Pounds; ~10% recycled • Mechanical recycling generates 90% of the rPP & Bio rPP & Bio Other volume, but sales are limited due to quality requirements • We are actively trialing customer applications for film,
Slide 6: Focused on Improving Purification Steps
Focused on Improving Purification Steps Feedstock Extraction Mixing & Filtering Solvent Add Settling Recovery • Solvent Film 100% PureCycled Polypropylene Fiber Flakes (mixed rigids) • Pigments/Colors • Odor • Polyethylene • Contaminants Removes • Residuals/Oligomers • Solids/Non-melts • Small parti
Slide 7: PureCycle's Recycling Advantage
PureCycle’s Recycling Advantage Polypropylene Recycling Process Comparison Key Takeaways Mechanical Chemical Recycling(1) Recycling(2) ✘ Mechanical recycling is limited by Minimal Regulatory feedstock and higher costs, ultimately Risk ~ ✘ yielding a lower quality product than PureCycle’s UPR resin P
Slide 8: PureCycle UPR Resin is a Sustainable Alternative to Virgin Polypropylene Resin
PureCycle UPR Resin is a Sustainable Alternative to Virgin Polypropylene Resin Yellowness Opacity Contaminant Melt Flow Index Primary Input Clarity Odorless Pricing Premium Index Value (Contrast Ratio) Free (G/10 Min) Material PCT UPR Resin Variable by Waste / ≤ 20 <20% (better than (better than Fee
Slide 9: PureCycle LCA Outlook
PureCycle LCA Outlook ©) ENERGY FOOTPRINT 2) GHG FOOTPRINT AUGUSTA ° Plant Economies of Scale Greener Power Grid BOUNDLESS Original (2022) Independent TRONTON TRONTON Co-generation opportunities 3rd Party LCA Report on Ironton 79% ¥ 35% 4 with industrial park neighbors below virgin PP below virgin P
Slide 10: Company Overview
Company Overview 10
Slide 11: Ironton Purification Facility
Ironton Purification Facility 11
Slide 12: PureCycle at a Glance
PureCycle at a Glance PureCycle Today Investment Highlights PureCycle is commercializing a technology to convert polypropylene (“PP”) First mover advantage in addressing the massive 170+ billion pound annual PP waste into a sustainable, circular product 1 waste problem driven by years of investment
Slide 13: Global Expansion Scaling the Future
DENVER, PORT OF ANTWERP, PENNSYLVANIA BELGIUM GLOBAL EXPANSION #1 SCALING THE FUTURE IRONTON, OHIO CENTRAL JAPAN1 AUGUSTA, GEORGIA DURHAM, Leveraging Our First Commercial NORTH CAROLINA Operation To Scale Globally! 13
Slide 14: PureCycle's Process to Change Diversified Waste Feedstock to Ultra-Pure Recycled Resin
PureCycle’s Process to Change Diversified Waste Feedstock to Ultra-Pure Recycled Resin Feedstock Pre-Processing Steps (“PreP”) Purification Feedstock Offtake Rigids Sort Grind Wash Fiber Shred Clean Agglomerate Film Shred Clean Agglomerate To further de-risk operations, PureCycle secures access to f
Slide 15: PureCycle has FDA LNO for Conditions of Use
PureCycle has FDA LNO for Conditions of Use A High temperature heat- sterilized ( e.g., over 212º F) B Boiling water sterilized C Hot filled or pasteurized above 150º F D Hot filled or pasteurized below 150º F E F G H Room temperature filled and Frozen/refrigerated storage: Refrigerated storage (no
Slide 16: Third Quarter 2024 Corporate Update
Third Quarter 2024 Corporate Update 16
Slide 17: PCT Highlights
PCT Highlights • Achieved all three production milestones • Significant progress on rates, uptime and reliability • Current Ironton production is exclusively from PCR feedstock Operations • Co-product 2 (CP2) improvements implemented and recovery rates have reached up to 15K lbs/day • Denver, PA Pre
Slide 18: PureCycle Manufacturing Update
PureCycle Manufacturing Update Ironton rPP Pellet Production Key Improvements (MM lbs) • Feedstock sorting has significantly increased production capability 3.5 • Uptime and reliability are increasing due to proactive operational efforts • Stronger Q3 performance despite significant time spent commi
Slide 19: CP2 Upgrades Improve Final Product Quality & Circularity
CP2 Upgrades Improve Final Product Quality & Circularity CP2 Pellets Performance Improvements • Final PP product quality materially improved with more effective CP2 removal • Compounding CP2 for customer trials and sales • Originally modeled as a waste stream and now good market interest in this pro
Slide 20: Sort Upgrades are Increasing Feedstock Flexibility
Sort Upgrades are Increasing Feedstock Flexibility Denver, PA Bale Sortation Improved capability to upgrade mixed bales (#5 & #3-7) to approximately 90% to 95% PP We do not currently expect CP2 Offsite Flake Sortation removal to be Improved PP concentration of ready-to-purify a production flake from
Slide 21: Plant Improvements Should Enhance Margins
Plant Improvements Should Enhance Margins CP2 Recovery Feedstock Type Availability Feedstock Cost Offtake Value Limited PIR, No CP2 Limited Highest Lower Limited PCR, Low CP2 Very Limited Higher Higher Limited PCR, High CP2 Prevalent Lower Lowest Current Production Improved PCR, High CP2 Prevalent L
Slide 22: Profitability Should Improve with Compounding
Profitability Should Improve with Compounding Notes Business Based on Expected Avg PureFive vs Compounded Combo vs Economics on non-compounded PureFive sales are developing inline with previous expectations, compounding improves overall Volumes Lower Higher Higher outcomes Compounding enables PCT to
Slide 23: Compounding has Expanded Our Product Portfolio
Compounding has Expanded Our Product Portfolio Ironton Production Compounding Material Available Inventory 10-20 MFI <10 MFI Suitable for thermoforming and film applications Mid MFI Suitable for injection molding 2.5 (MM lbs) applications Building inventory of 30+ MFI multiple grades to serve numero
Slide 24: Road Map to Sales by Product Segment
Road Map to Sales by Product Segment PCT Anticipated timing Fiber Injection Molding Packaging Product Formulation/Design Q3-24 Product Formulation/Design Q3-24 Compounding Development Q3/Q4 PureCycle / P&G Q4 First Customer Approval Q3 Compounding Development 1 Inventory Build Q3/Q4 Inventory Build
Slide 25: Products Made from PureCycle Pellets
Products Made from PureCycle Pellets 25
Slide 26: Summary
Summary 26
Slide 27: Summary
Summary Ongoing customer trials - expect reportable sales in Q1 2025 • Active trials across the automotive, consumer goods, textiles and home furnishings markets • Customer trials have their own unique processes and timing to commercialization • PCT resin is uniquely suited for fiber and film market
Slide 28: PureCycle Technologies, Inc.
PureCycle Technologies, Inc. Confidential Information. Do Not Distribute. Confidential Information. Do Not Distribute. 28
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