Avantium N.v. · EURONEXT:AVTX
Avantium — FY2023 Earnings Presentation
43 slides from Avantium's earnings presentation, March 2024
Slide 1: Investor Presentation Full Year 2023 Results
Avantium | Investor Presentation FY 2023 Results – March 2024 Investor Presentation Full Year 2023 Results Ca pita l Ma rkets Da y 2023 Keynote presenta March 2024 tion -- DRAFT -- 13 December 2023 1
Slide 2: Disclaimer
Discla imer Avantium | Investor Presentation FY 2023 Results – March 2024 This presentation has been prepared by Avantium N.V. (the “Company”). For the purposes of this notice, the presentation that follows (the “Presentation”) shall mean and include the slides that follow, the oral presentation of
Slide 3: 1. Full year 2023 financial and non-financial highlights
Avantium | Investor Presentation FY 2023 Results – March 2024 3 1. Full year 2023 financial and non-financial highlights
Slide 4: Key themes / highlights 2023
Key themes / highlights 2023 Avantium | Investor Presentation FY 2023 Results – March 2024 Well capitalised Continued progress in Nearing the execution of strategy inflection point 4
Slide 5: Key business highlights 2023
Key business highlights 2023 Well ca pita lised a nd continued good progress in the execution of its stra tegy Avantium | Investor Presentation FY 2023 Results – March 2024 2023 ✓ Reached total of 15 offtake ✓ First technology license ✓ € 64.5 million financing ✓ Commissioning activities FDCA agreem
Slide 6: Financial highlights full year 2023
Fina ncia l highlights full yea r 2023 FY 2022 FY 2023 Avantium | Investor Presentation FY 2023 Results – March 2024 89.8 Revenue EBITDA Investments (€ millions) (€ millions) (€ millions) 34.0 17.8 19.7 -16.3 +11% +164% -68% -27.5 Other Income Cash Position* Borrowings (grants) (€ millions) 64.9 (€
Slide 7: Cash flows 2023
Ca sh flows 2023 (€ millions) Avantium | Investor Presentation FY 2023 Results – March 2024 160 -2 140 -18 120 84 100 -90 80 60 40 -4 65 20 35 0 Cash at 31-12-22 Financing Other Financing Net Cash Used in CAPEX Investments Financing and Cash at 31-12-23 Drawdown Activities Operations Interest Expens
Slide 8: Non-financial highlights full year 2023
Non-fina ncia l highlights full yea r 2023 Avantium | Investor Presentation FY 2023 Results – March 2024 Newly 24 Number of Scope 1 304 Granted Employees 264 Emissions Patents (tonnes CO2e) 10 0.488 0.436 -58% +15% +12% Newly 52 Nationalities 36 Scope 2 649 Reported 43 Employed Emissions 25 Inventio
Slide 9: Committed to sustainability – highlights 2023
Committed to susta ina bility – highlights 2023 Avantium | Investor Presentation FY 2023 Results – March 2024 Chain Reaction 2030 Solar powered Scope 3 emissions Celebrating diversity headquarters and lab baseline assessment completed & inclusion Sustainability Steering Board Weekend of Science: Ext
Slide 10: Avantium | Investor Presentation FY 2023 Results – March 2024
Avantium | Investor Presentation FY 2023 Results – March 2024 10
Slide 11: 2. Strategy & Ambition
Avantium | Investor Presentation FY 2023 Results – March 2024 11 2. Strategy & Ambition
Slide 12: Addressing the plastics pollution problem
Addressing the pla stics pollution problem Avantium | Investor Presentation FY 2023 Results – March 2024 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 365Mt recycli
Slide 13: Accelerating shift to bio-plastics
Accelera ting shift to bio-pla stics Avantium | Investor Presentation FY 2023 Results – March 2024 1 2 3 Increasing consumer Increasing regulatory Major brands setting pressure, demanding support plant-based ambitious targets but sustainable solutions plastic and recycling struggling to meet them 20
Slide 14: Driving renewable & circular polymers
Driving renewa ble & circula r polymers Avantium | Investor Presentation FY 2023 Results – March 2024 Avantium at the centre of the eco-system 15 Offtake Agreements 1 Technology License Agreement 14
Slide 15: Market traction through wide range of applications
Avantium | Investor Presentation FY 2023 Results – March 2024 15 Ma rket tra ction through wide ra nge of a pplica tions
Slide 16: Commercial-stage company in renewable & circular polymers
Commercia l-sta ge compa ny in renewa ble & circula r polymers Avantium | Investor Presentation FY 2023 Results – March 2024 Mission To bring to the market new, cost competitive renewable polymer materials with superior performance characteristics, contributing to reducing carbon emissions, plastic
Slide 17: Reaching the inflection point
Rea ching the inflection point Avantium | Investor Presentation FY 2023 Results – March 2024 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 Comme
Slide 18: 3. FDCA / PEF
Avantium | Investor Presentation FY 2023 Results – March 2024 18 3. FDCA / PEF
Slide 19: PEF: made from our focus product FDCA
PEF: ma de from our focus product FDCA Avantium | Investor Presentation FY 2023 Results – March 2024 PET PEF Compared to PET PEF is a renewable, circular plant-based Crude oil Sugars polymer material Low carbon footprint MEG PTA Plant-based FDCA MEG Superior technical properties 30% 70% 70% 30% 30%
Slide 20: FDCA – feedstock agnostic, utilising Gen 1 and Gen 2 feedstocks
FDCA – feedstock a gnostic, utilising Gen 1 a nd 2 feedstocks Avantium | Investor Presentation FY 2023 Results – March 2024 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 Wo
Slide 21: PEF sustainable and superior alternative for PET
PEF susta ina ble a nd superior a lterna tive for PET Avantium | Investor Presentation FY 2023 Results – March 2024 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%
Slide 22: 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 | Investor Presentation FY 2023 Results – March 2024 Bottles Fibers Films & More Beer, Juices, Waters, Textile, Upholstery, Car Food Packaging, Non-Food Soft Drinks Tires, Industrial Fibers Packaging Competing materials: Glass, Comp
Slide 23: PEF addressable market potential
PEF a ddressa ble ma rket potentia l PEF @ ~2€/kg Avantium | Investor Presentation FY 2023 Results – March 2024 122.3 mta €240bn Expected PEF price reduction to drive a massive expansion of our TAM Flexible films (laminates, food or hygiene packaging, etc.) PEF @ ~5€/kg Injection molding 7.7 mta (bo
Slide 24: PEF is both sustainable and price-competitive at scale
PEF is both susta ina ble a nd price-competitive a t sca le Avantium | Investor Presentation FY 2023 Results – March 2024 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 B
Slide 25: 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 | Investor Presentation FY 2023 Results – March 2024 • 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 pro
Slide 26: 4. Licensing
Avantium | Investor Presentation FY 2023 Results – March 2024 26 4. Licensing
Slide 27: Licensing the FDCA / PEF technology
Licensing the FDCA / PEF technology Avantium | Investor Presentation FY 2023 Results – March 2024 Generate income Deployment ▪ Avantium to license out technology and IP ▪ Technology licensing deemed to offer optimal combination of risk and reward ▪ Licensing closely aligned with our capabilities and
Slide 28: 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 | Investor Presentation FY 2023 Results – March 2024 FDCA manufacture: 46 FDCA manufacture: 80 FDCA based polymers, FDCA based polymers, manufacture and applications: 54 manufacture and applicatio
Slide 29: First license agreement signed with Origin
First license a greement signed with Origin Avantium | Investor Presentation FY 2023 Results – March 2024 ▪ 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.
Slide 30: Global FDCA licensing opportunities for Avantium
Globa l FDCA licensing opportunities for Ava ntium Avantium | Investor Presentation FY 2023 Results – March 2024 Potential targets ➔ Feedstock suppliers Qualified Technology licensing ➔ Chemical companies opportunities target customers ➔ PET (/polymer) producers Active discussions Advanced discussio
Slide 31: We can almost touch it…
Avantium | Investor Presentation FY 2023 Results – March 2024 31 We ca n a lmost touch it…
Slide 32: 5. Strategic focus
Avantium | Investor Presentation FY 2023 Results – March 2024 32 5. Strategic focus
Slide 33: Reinforcing strategic focus: the FDCA/PEF commercial opportunity
Reinforcing stra tegic focus: the FDCA/PEF commercia l opportunity Avantium | Investor Presentation FY 2023 Results – March 2024 FDCA/PEF Volta Technology Ray Technology R&D Solutions technology (PLGA) (plantMEG/MPG) Prioritising getting Exploring strategic EBITDA positive, Flagship Plant on or fina
Slide 34: 6. Funding growth & execution
Avantium | Investor Presentation FY 2023 Results – March 2024 34 6. Funding growth & execution
Slide 35: Strong financing fundamentals for long-term success
Strong fina ncing funda menta ls for long-term success Avantium | Investor Presentation FY 2023 Results – March 2024 Funding secured through existing and new shareholders Renewable Polymers shareholders and lenders remain committed FDCA Flagship nearing completion with strong commercial traction Pro
Slide 36: Funding focused on the FDCA / PEF opportunity
Funding focused on the FDCA / PEF opportunity Avantium | Investor Presentation FY 2023 Results – March 2024 Renewable Polymers Business Avantium FDCA/PEF technology Completing Commissioning and Licensing acceleration Financial stability, general Construction of the Start-up of the FDCA – Commercial
Slide 37: Focus on revenue generation
Focus on revenue genera tion Avantium | Investor Presentation FY 2023 Results – March 2024 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: pric
Slide 38: Focus and execution leading to growth
Focus a nd execution lea ding to growth Avantium | Investor Presentation FY 2023 Results – March 2024 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 2023 2024E 2025E 2026E 2027E
Slide 39: 7. Key takeaways
Avantium | Investor Presentation FY 2023 Results – March 2024 39 7. Key takeaways
Slide 40: Key takeaways / Investment highlights
Key ta kea wa ys / Investment highlights Avantium | Investor Presentation FY 2023 Results – March 2024 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 renewa
Slide 41: Appendix
Avantium | Investor Presentation FY 2023 Results – March 2024 41 Appendix
Slide 42: Avantium Renewable Polymers Cost Update
Ava ntium Renewa ble Polymers Cost Upda te Avantium | Investor Presentation FY 2023 Results – March 2024 €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 14
Slide 43: Financing package Avantium Renewable Polymers
Fina ncing pa cka ge Ava ntium Renewa ble Polymers Avantium | Investor Presentation FY 2023 Results – March 2024 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 •