Lanzatech Global, Inc. · NASDAQ:LNZA
Lanzatech Global — Investor Presentation (May 2023)
41 slides from Lanzatech Global's investor presentation, May 2, 2023
Slide 1: Corporate Presentation - May 2023
1 CORPORATE PRESENTATION - MAY 2023 Nasdaq: LNZA A Carbon Recycling Company ©2023 LanzaTech Global, Inc. All rights reserved.
Slide 2: Forward-looking statements
These slides and any accompanying oral presentation contain forward-looking statements. All statements, other than statements of historical fact, included in these slides and any accompanying oral presentation are forward-looking statements reflecting management’s current beliefs and expectations. I
Slide 3: Financial Information; Non-GAAP Financial Measures
Financial Information; Non-GAAP Financial Measures To supplement our financial results presented in accordance with US GAAP and to provide investors with additional information regarding our financial results, we have presented in this presentation adjusted EBITDA, a non-GAAP financial measure. Adju
Slide 4: The processes that underlie human civilization are making our planet uninhabitable
The processes that underlie human civilization are making our planet uninhabitable LanzaTech has commercialized a decarbonization solution that unites biology with engineering to enable a circular economy Image credit: Pacific Ring of Fire 2004 Expedition. NOAA Office of Ocean Exploration; Dr. Bob E
Slide 5: The world has enough carbon above ground to make everything we need
THE WORLD HAS ENOUGH CARBON ABOVE GROUND TO MAKE EVERYTHING WE NEED WE CREATE VALUE WHERE OTHERS SEE WASTE 5
Slide 6: Globally licensed, commercially operational
6 6 Production Volume: 46,000 Tons per Year Ethanol Carbon Source: Steel Mill Emissions Production Volume: 46,000 Tons per Year Ethanol Carbon Source: Ferroalloy Emissions Production Volume: 60,000 Tons per Year Ethanol Carbon Source: Ferroalloy Emissions 2018 2021 2022 GLOBALLY LICENSED, COMERCIALL
Slide 7: Our process recycles carbon waste into chemical building blocks
OUR PROCESS RECYCLES CARBON WASTE INTO CHEMICAL BUILDING BLOCKS TO CREATE A WIDE VARIETY OF PRODUCTS 7
Slide 8: Creating value from waste: commercially proven at scale
CREATING VALUE FROM WASTE: COMMERCIALLY PROVEN AT SCALE 8 STRONG REVENUE GROWTH Y/Y: 2020-2023E $ millions $18.4 $25.5 $37.3 $0 $40 $80 $120 2020 2021 2022 2023E 1.4x 1.5x 2.7x $120 $80 2023E Revenue Guidance1 ▪ 18 years of continuous scaling and de-risking ▪ 3 licensed commercial facilities operati
Slide 9: LanzaTech's proprietary process
PRIMARY PRODUCT ETHANOL BIOREACTOR INDUSTRIAL OFF-GAS FUELS MATERIALS LANZATECH’S PROPRIETARY PROCESS 9 ATOMOSPHERIC CO2 GASIFIED SOLID WASTE ABILITY TO LEVERAGE DIVERSE CARBON SOURCES A NOVEL CIRCULAR SOLUTION, RECYCLING WASTE CARBON INTO VALUABLE PRODUCTS COPRODUCT PROTEIN 1 2 3 4 4 1 2 3 4 COMPRE
Slide 10: Broad IP portfolio underpins gas fermentation bona fides
Upstream Patents Gas Conditioning Equipment Design Gasification integration with fermentation Electrolysis for use of CO2 in LT process Expression Strategies Enzyme Pathways Genetic Tools Process Controls Biological Products Integrations Catalytic Products Secondary Fermentations Nutrition Applicati
Slide 11: Section II: Business Overview
Section II Business Overview
Slide 12: Three integrated and complementary business lines
THREE INTEGRATED AND COMPLEMENTARY BUSINESS LINES Innovation and IP underpin diversified business model that facilitates profitable growth 12 Joint Development & Contract Research • Contracted R&D work with partners that leverage world-class synthetic and computational biology toolkit to develop new
Slide 13: Biorefining: Carbon Capture Transformation (CCT) Plants
Asset Light • License technology to customers • Provide engineering services • Customers provide capital funding Revenue Diversification • One-time/Development Stage – equipment sales, engineering services, and startup services • Recurring/Operational Stage – royalties, microbes & media sales, and s
Slide 14: Profitable unit level economics for the customer
14 Plant Level Data Feedstock Type Industrial Off-Gas Production (TPA / million GPY) 50,000 / 16.7 Carbon Captured (tons per year) ~100,000 Project CapEx ($M) $150 Current ($/t) Carbon Upside ($/t) Revenues $1,115 $1,115 Feedstock Costs $(250) +$100 OpEx Costs $(375) $(375) Total Cash Costs $(625) $
Slide 15: Profitable unit level economics for LanzaTech
15 PROFITABLE UNIT LEVEL ECONOMICS FOR LANZATECH Source: LanzaTech management. Plant economics vary by region, size, feedstock, etc. The above is intended to be illustrative of the unit economics of plants. KTA represents “thousand tons per annum”. Each Biorefining CCT plant generates a combination
Slide 16: Partnership with industrial leaders deploying LanzaTech solutions
Partnership with Industrial Leaders Deploying LanzaTech Solutions ✓ De-risked technology at commercial-scale ✓ Multiple feedstocks deployed globally ✓ Licensing model where partners fund capital required for projects Shougang 16 WORLD CLASS PARTNERS CURRENTLY DEPLOYING AND COMMITTED TO ROLLING OUT B
Slide 17: Projects in operation, construction and advanced engineering across the globe
AM Gent/Steelanol 2023 64 KTA SGLT #4 2023 60 KTA Freedom Pines Fuels 2023 10 MGPY Guizhou Jinze 2022 60 KTA Shoulang Jiyuan 2021 46 KTAShougang LanzaTech 2018 46 KTA Steel and Ferroalloy Gas MSW Refinery Gas Biomass Biogas CO2 +H2 SAF Facility Suncor/ERA Canada 2022 Sekisui 1/10th 2022 IOC Panipat
Slide 18: Strong pipeline that positions the company for continued growth and scale
18 STRONG PIPELINE THAT POSITIONS THE COMPANY FOR CONTINUED GROWTH AND SCALE 60+ Active Engagements with Positive Technoeconomic Results 20+ Early-Stage Engineering 8 Advanced Engineering 4 Construction ACTIVE CUSTOMER BIOREFINING PROJECT PIPELINE1 PROJECT DEVELOPMENT & PIPELINE STAGE GATES Techno E
Slide 19: Brookfield partnership drives implementation of co-development strategy
19 BROOKFIELD PARTNERSHIP DRIVES IMPLEMENTATION OF LANZATECH CO-DEVELOPMENT STRATEGY Co-Development Strategy Overview ◼ Co-Development strategy allows LanzaTech to play a more active role as project developer, bringing its partner’s capital to the table in instances where there may not be a natural
Slide 20: CarbonSmart: transforming carbon waste into sustainable products
Chemicals • LanzaTech as offtaker to supply major brands with sustainable chemical building blocks for their supply chains • Product demand creates demand pull for Biorefining CCT plants and accelerates deployment • Work with conversion partners to upgrade ethanol from Biorefining CCT plants to be u
Slide 21: $1T addressable market
$1T Addressable Market Potential for >1 billion tons/year of product from waste feedstocks TOTAL END MARKETS FOR PRODUCTS ENABLED BY THE LANZATECH PLATFORM Fuels Chemicals SolventsFragrancesMonomers 21 PolymersMaterials Ethanol1 LanzaTech ethanol may be sold into fuel markets Jet fuel via ethanol2 L
Slide 22: Demand for sustainable products creates demand pull for licensed plants
ETHANOL CLEANING PRODUCTS FRAGRANCES SAF SHOE SOLES PACKAGINGTEXTILES DETERGENTS CONTAINERS SURFACTANTS DEMAND FOR SUSTAINABLE PRODUCTS CREATES DEMAND PULL FOR ADDITIONAL LICENSED BIOREFINING CCT PLANTS 22 WASTE CARBON LanzaTech’s commercial technology created the chemical building block (ethanol) f
Slide 23: Market for SAF drives tailwind for LanzaTech
23 MARKET FOR SAF DRIVES TAILWIND FOR LANZATECH Alcohol-to-Jet technology developed within LanzaTech and in partnership with the US Department of Energy and the Pacific Northwest National Laboratory (PNNL) Patented process & ASTM certified LanzaJet spun out in 2020. ~25% ownership; path to majority
Slide 24: Sustainable aviation fuels market opportunity
24 24 SUSTAINABLE AVIATION FUELS MARKET OPPORTUNITY Coalitions Notable Companies Represented SAF Target 10% by 2030 30% by 2030 30% by 2035 Net Zero by 2050 Companies Committed 1 McKinsey & Company, Critical insights on the path to a net-zero aviation sector; 2 IATA 2025 Estimates; 3 2020 and 2025 n
Slide 25: Complete waste-to-SAF solution through integration with LanzaJet platform
25 COMPLETE WASTE-TO-SAF SOLUTION THROUGH INTEGRATION WITH LANZAJET PLATFORM Water EthyleneEthanol Jet Diesel Drop-In Ready – ASTM Approved // Patented Process WASTE CARBON GASES Low-Cost ProcessAbundant, Waste-based Feedstock Competitive Waste-to- SAF Solution With opportunity to utilize existing e
Slide 26: Construction of LanzaJet's 10M GPY SAF facility to be completed in 2023
26 CONSTRUCTION OF LANZAJET’S 10M GPY SAF FACILITY TO BE COMPLETED IN 2023 DECEMBER 2022 APRIL 2023 Once operational, this facility will account for ~10 percent of global SAF production capacity1 and ~double the amount of current SAF production in the United States2 1 https://www.iata.org/en/iata-re
Slide 27: Joint development & contract research
• Prioritization of product roadmap through paid, contracted work with partners to expand chemicals portfolio and optimize processes • World-class synthetic and computational biology capabilities to develop new microbes, optimize processes, and produce an extensive range of products • Expands addres
Slide 28: Cutting edge capabilities and processes
28 CUTTING EDGE CAPABILITIES AND PROCESSES World’s First Anaerobic Biofoundry Advanced AI & Modeling Rapid In Vitro Prototyping Platform Fermentation Fully Automated Engineering & Screening of Thousands of Anaerobic Gas Fermentation Strains Predictive & Low-Cost, Cell-Free Prototyping of Enzymes & P
Slide 29: Where we're headed: direct production of bulk commodity chemicals
Images generated with Biorender.com. “Hardware” “Software” Existing Commercial Plants Microbe 2.0 Isopropanol 29 Microbe 3.0 Acetone Microbe … ✓ Same process✓ Same feedstock✓ Same reactor New Strains To Expand Product Portfolio & Efficiency Microbe 1.0 Ethanol Microbe 4.0 MEG New product development
Slide 30: LanzaTech enables carbon negative products today
LANZATECH ENABLES CARBON NEGATIVE PRODUCTS TODAY WITH FORESEEABLE IMPROVEMENT OVER TIME 30 2.1 -0.2 -0.8 k g C O 2 e /k g p ro d u c t Monoethylene glycol (MEG) as a chemical intermediate Fossil Equivalent2 LanzaTech with renewable energy LanzaTech from offgas Renewable Energy Further reduces carbon
Slide 31: Section III: 2023 Execution Priorities
31 Section III 2023 Execution Priorities
Slide 32: 2023 execution priorities
2023 EXECUTION PRIORITIES 1 2 3 4 5 SAFETY FIRST Zero lost time injuries ADJUSTED EBITDA Reduce 2023 Adjusted EBITDA loss y/y by 10-20%: 2023E Adjusted EBITDA guidance of $(55M)-$(65M) Pathway to Adjusted EBITDA positive by the end of 2024 GLOBAL PRODUCTION Grow total installed nameplate capacity by
Slide 33: The world has enough carbon above ground to make everything we need
33 THE WORLD HAS ENOUGH CARBON ABOVE GROUND TO MAKE EVERYTHING WE NEED
Slide 34: Proven commercialized technology to valorize waste & pioneer a new circular carbon economy
PROVEN COMMERCIALIZED TECHNOLOGY TO VALORIZE WASTE & PIONEER A NEW CIRCULAR CARBON ECONOMY BIOREFINING: CCT PLANTS CARBONSMART™ MARKETING JOINT DEVELOPMENT & CONTRACT RESEARCH >54 Million Gallons of Ethanol Produced 3 Commercial Plants In Continuous Operation and Counting Massive Addressable Market
Slide 35: Welcome to the post pollution future
WELCOME TO THE POST POLLUTION FUTURE Nasdaq: LNZA
Slide 36: Appendix I: Corporate DNA
APPENDIX I: Corporate DNA Nasdaq: LNZA
Slide 37: Safety is our top priority
SAFETY IS OUR TOP PRIORITY • Global commitment to zero lost time injuries • Ongoing systematic risk and hazard assessments at all global facilities • Strategic focus on executive-led safety initiatives, including risk and employee engagement 2022 SAFETY STATS 37
Slide 38: Our people are our competitive advantage
OUR PEOPLE ARE OUR COMPETITIVE ADVANTAGE 55% Women on Executive Team ~400* Global Employees in 11 Countries >90% 2023 YTD Employee Retention *May 2023 Company Statistics >40% Women on the Board of Directors 38
Slide 39: ESG is our business
ESG IS OUR BUSINESS 1. We’ve set baselines using established ESG frameworks and guides, including: • GRI - framework • SASB - framework • TCFD – framework • Nasdaq ESG reporting guide 2. Conducted in-depth market and competitor analyses 39 3. Implemented processes to track annual metrics, including:
Slide 40: Appendix II: Summary Financial Results
APPENDIX II: Summary Financial Results Nasdaq: LNZA
Slide 41: Summary financial results
41 SUMMARY FINANCIAL RESULTS Summary Financial Results Year Ended December 31, % Change In thousands, except for percentages 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 Revenue $37,343 $25,461 $18,353 47% 39% Net Loss $(76,356) $(46,689) $(37,713) Adjusted EBITDA1 $(69,220) $(44,792) $(34,263) Ending