Slide 1: Second Quarter 2021 Corporate Update
Second Quarter 2021 Corporate Update August 12, 2021 1
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: 2021 Quarter 2 Highlights
2021 Quarter 2 Highlights OPERATIONS OPERATIONS FEEDSTOCK COMMERCIAL FINANCE • Announced Plant 2 • Built Feedstock R&D unit to • Progressed JV • Ended Q2 2021 with FEEDSTOCK location in Augusta, GA process #3-#7 bales with discussions to bring PCT $238M in unrestricted advanced technologies capacity
Slide 4: Q2 2021 Update on Global Priorities
Q2 2021 Update on Global Priorities • North America – Ironton remains on track; Plant 2 location announced; Plant 3 site selection analysis underway • Europe – Detailed site selection activities in process; finalizing feedstock strategy and supply chain analysis • Asia Pacific – Working towards long
Slide 5: On June 23, We Hosted Our Inaugural Investor Day
On June 23, We Hosted Our Inaugural Investor Day • Executive Summary – 100+ attendees across investment community and industry • FEU Walkthrough – demonstrated our FEU process in action and explained the unit Preprocessing operations that make up our purification process • Feedstock Preprocessing –
Slide 6: General Operations Update
General Operations Update • Cost and schedules are on track; equipment is arriving on site OPERATIONS Ironton Plant • Implemented ongoing de-risking schedule analysis (107M) • Module construction expected to start in Q3 2021 FEEDSTOCK • Secured Augusta site; Long lead equipment procurement efforts i
Slide 7: Comprehensive Selection Process for Augusta
Comprehensive Selection Process for Augusta OPERATIONS 50+ Sites evaluated across southeast, central and eastern United States FEEDSTOCK Sites evaluated across 13 criteria: Environmental, Engineering, Supply Chain, Economic, etc. COMMERCIAL Targeted Southeast as ideal location for export and feedsto
Slide 8: Augusta Delivers Strong Value and Global Reach
Augusta Delivers Strong Value and Global Reach • Optimized Infrastructure – industrial park with access to electricity and natural OPERATIONS gas at site boundary • Engineering – initial design nearing completion; permitting activities in process FEEDSTOCK • Advanced Supply Chain – interstate and Su
Slide 9: The Path to Billion Pounds of Production in 2025
The Path to 1 Billion Pounds of Production in 2025 2020 2021 2022 2023 2024 2025 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 OPERATIONS Total Installed Capacity (MM lbs/Qtr) 107 107 237 367 627 887 1,147 1,147 1,277 1,277 1,277 Ironton, Ohio Plant Annual Line Capacity: 107M lbs Line 1 A
Slide 10: Development Overview: Augusta Plant, Line
Development Overview: Augusta Plant, Line 1 Year 2021 2022 2023 2024 Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 OPERATIONS Month Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar New Line Overview Line
Slide 11: Active Negotiations with Numerous Feedstock Suppliers for 300M+ Pounds Annually
We are in Active Negotiations with Numerous Feedstock Suppliers for 300M+ Pounds Annually Post-Consumer • Active LOI Negotiations: 50M+ Pounds Curbside • Purchased various plastic bales from across the country for Mixed Bales OPERATIONS • Segregated bales Feedstock Preprocessing, analysis, and conti
Slide 12: Sourcing and Supply Chain Study Creating a More Versatile Feedstock Acquisition Strategy
Our Sourcing and Supply Chain Study is Creating a More Versatile Feedstock Acquisition Strategy OPERATIONS Evaluated technologies and sourcing Study locations to drive purchasing strategy across each bale type. FEEDSTOCK Identified supply chain efficiencies by Result locating pre-processing faciliti
Slide 13: Our Resin Delivers: Exceptional Clarity
Our Resin Delivers: Exceptional Clarity OPERATIONS FEEDSTOCK COMMERCIAL FINANCE 13
Slide 14: Robust Pipeline is Driving Signed Agreements in Q3
Robust Pipeline is Driving Signed Agreements in Q3 Our Pricing Methodology Augusta Update OPERATIONS • Existing Strategic Partners – ~40% of A Index + Premium Augusta output allocated for existing strategic based on virgin pricing plus a premium partners and customers from Ironton Plant FEEDSTOCK •
Slide 15: Strong Liquidity Position of $539M
Strong Liquidity Position of $539M General Letter of Corporate Credit June 30, 2021 (in millions) OPERATIONS Requirements $2.1 $0.1 Debt Service Reserve FEEDSTOCK Cash and Cash $21.0 Equivalents $37.7 Capitalized Debt Interest Unrestricted Restricted Plant 1 Securities COMMERCIAL Cash and Project Re
Slide 16: Q2 Liquidity and Changes from Prior Quarter
Q2 Liquidity and Changes from Prior Quarter (IN MILLIONS) March 31, 2021 June 30, 2021 change Summary of Liquidity Changes OPERATIONS Cash and Cash Equivalents $252.5 $37.7 $(214.8) Debt Securities Available for Sale - 200.4 200.4 • $539M Available Funds Total Unrestricted $252.5 $238.1 $(14.4) • Op
Slide 17: PCT Credit Quality Has Improved
PCT Credit Quality Has Improved Tax Debt At Issuance As of 8/6/2021 Yield Issue2 Maturity CUSIP Status Type Coupon Yield Price Yield Price Change Series 2020A 2025 84355AAA0 T/E Senior 6.25% 6.50% 98.91% 3.26% 111.91% -3.24% Series 2020A 2030 84355AAB8 T/E Senior 6.75% 6.75% 98.17% 3.82% 117.25% -2.
Slide 18: PureCycle is Delivering on Our Commitments
PureCycle is Delivering on Our Commitments 1 Ironton is on-track and fully funded 6 Feedstock Preprocessing identifying smarter supply chain strategies 2 Augusta selected for five lines totaling up to 650M pounds capacity 7 FDA No Objection Letter "NOL" to be filed this quarter 3 Market is accepting
Slide 19: One Goal, A Pure Planet.
One Goal, A Pure Planet. 19