Origin Materials, Inc. · NASDAQ:ORGN
Origin Materials — Investor Day (April 2021)
50 slides from Origin Materials's investor day presentation, Apr 19, 2021
Slide 1: Analyst Day Investor Presentation
Analyst Day Investor Presentation The world’s leading carbon negative materials company April 19, 2021
Slide 2: Forward Looking Statements and Disclaimers
Forward Looking Statements and Disclaimers DISCLAIMER This presentation is for informational purposes only. It shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer,
Slide 3: Risk Factors Summary
Risk Factors Summary Investing in this transaction involves a high degree of risk. Below is a summary of certain factors that make an investment in this transaction speculative or risky. This summary is not comprehensive. Additional discussion of the risks and uncertainties summarized in this risk f
Slide 4: Visionary leadership team with long history of creating shareholder value
Visionary leadership team with long history of creating shareholder value John Bissell Rich Riley Nate Whaley Charles Drucker Boon Sim Founder & Co-CEO Co-CEO CFO Executive Chairman CEO & CFO • Founded Origin Materials in 2008 • Former CEO Shazam and senior • 20 years C-Suite experience scaling • Fo
Slide 5: Origin Materials – At a Glance
O O Origin Materials – At a Glance H Cl The world’s leading carbon negative materials company Disruptive Materials Decarbonizing Platform Enormous TAM Cost advantaged Technology Company Technology C ~$1+ Trillion $390Bn near-term focus in Timber feedstocks are Origin produces low and Enables custome
Slide 6: Leading institutions are committing to a net zero future
Leading institutions are committing to a net zero future The global industrial complex is committed to decarbonization 2030 2030-2040 2040 - 2050 Patagonia AT&T Michelin Carbon neutral by 2025 Net zero by 2035 Net zero by 2050 Proctor & Gamble Walmart BP Net zero between 2020 – 2030 Net zero by 2040
Slide 7: Nearly half of all global emissions come from making products
Nearly half of all global emissions Origin’s mission is to enable the world’s come from making products transition to sustainable materials Total global emissions, 2016 Fossil-based Sustainable-based Energy for Road Transportation Chemicals1 10.6Mn <1% Daily barrels of oil consumed Of annually avail
Slide 8: Ubiquitous plastics are a prime target to begin reducing carbon emissions
Ubiquitous plastics are a prime target to begin reducing carbon emissions Plastics enable modern life… … but we need better, scalable solutions Million tons Drop-in ready – change only happens at scale Transforming the materials economy won’t happen in niche markets. Plastics 546 permeate every sect
Slide 9: The Origin platform: 'Once in a planet' shift from fossil to decarbonized materials
The Origin platform: ‘Once in a planet’ shift from fossil to decarbonized materials Abundant, low-cost, Countless products can be manufactured Origin Core Technology bio-feedstocks using Origin’s carbon negative materials... NOT EXHAUSTIVE Textiles and fabrics “CMF” 5-Chloro- wood chips methyl- furf
Slide 10: Origin's CMF is a carbon negative solution for recyclability and degradability
Origin’s CMF is a carbon negative solution for recyclability and degradability Today Near-term (2022-25+) Mid-term: PET/F Blend Long-term (2027+) Future PET (2025-27+) PEF Drop-in ready; 100% recyclable Technology is ready; timing dependent on market adoption PET Production Life Cycle Analysis, kg-C
Slide 11: Origin's HTC is a diverse, high-potential carbon negative platform material
Origin’s HTC is a diverse, high-potential carbon negative platform material Today Near-term (2022-25+) Mid-term (2025-27+) Long-term (2027+) Future Fuel pellets/Activated Carbon (~$20Bn) Carbon Black (~$20Bn) Agriculture (~$40Bn) A drop-in ready, energy dense, A carbon negative carbon black replacem
Slide 12: Origin's platform technology decarbonization impact
Origin’s platform technology decarbonization impact By 2030, Origin’s operating plants are expected to annually avoid ~8.3MMT1 CO2 equivalent to approximately… ~960,000 ~1,800,000 ~19,000,000 homes' electricity use for 1 year passenger vehicles driven for 1 year barrels of oil consumed 1. Million Me
Slide 13: Estimated total addressable market for Origin products is more than $1Trn
Estimated total addressable market for Origin products is more than $1Trn Origin addresses a growing market with broad applications HTC market CMF market Markets | Market Size Cumulative TAM = >$1Trn $ Near term focus pre-2030 PET Fiber | ~$175Bn >$390Bn market Apparel Carpet PET Resin | ~$145Bn Foo
Slide 14: Estimated total addressable market for Origin products is more than $1Trn
Estimated total addressable market for Origin products is more than $1Trn Origin addresses a growing market with broad applications HTC market CMF market Select Markets | Market Size Cumulative TAM = >$1Trn $ Long term focus post-2030 Paints & Coatings | ~$30Bn >$750Bn market Colorants Soil Additive
Slide 15: Origin is supported by Global Fortune companies
Origin is supported by Global Fortune 500 companies We believe total estimated plastics demand from these three customers represents… 4.75Mn Tons ~20 Commercial facilities required to meet PET demand1 2017 15 1. Illustrative opportunity from fulfilling estimated PET portion of PepsiCo, Danone, and N
Slide 16: AECI SANS Technical Fibers Partnership
AECI SANS Technical Fibers Partnership “Origin Materials and AECI SANS Technical Fibers to Develop Carbon-Negative Materials for Apparel and Automotive Applications” – April 5, 2021 • AECI SANS Technical Fibers is a leader in engineered thread for high-performance apparel and automotive applications
Slide 17: AECI Much Asphalt Partnership
AECI Much Asphalt Partnership “Origin Materials and AECI Much Asphalt to Develop Low-Carbon Asphalt” – April 6, 2021 • AECI Much Asphalt is the largest commercial asphalt producer in southern Africa • Region’s leading manufacturer and supplier of hot and cold mix asphalt products, and a manufacturer
Slide 18: Packaging Matters Partnership
Packaging Matters Partnership “Origin Materials and Packaging Matters Launch Partnership to Develop Advanced Carbon-Negative Packaging Solutions, Building on Existing 10-Year Supply Agreement” – April 12, 2021 • Packaging Matters is a leader in packaging innovation with several Fortune 100 food comp
Slide 19: PrimaLoft Partnership
PrimaLoft Partnership “Origin Materials and PrimaLoft Form Strategic Alliance to Develop Carbon-Negative Insulating Fiber for Outdoor Gear, Bedding, and Apparel” – April 19, 2021 • PrimaLoft is advanced material technology company and a world leader in the development of high-performance insulations
Slide 20: Solvay Partnership
Solvay Partnership Solvay and Origin Materials to Develop Advanced Carbon- Negative Materials for Automotive Industry • Solvay, founded 1863, is a global leader in chemicals and materials with more than 23,000 employees in 64 countries, and net sales of €9 billion in 2020 • Collaboration to develop
Slide 21: Origin has generated ~$2.4Bn in customer demand
Origin has generated ~$2.4Bn in customer demand ~$1.9Bn in either offtake agreements or capacity reservations1 Customer demand, $Mn cumulative Select Origin Customers Contracted $547Mn ~$2.4Bn ~$1Bn Additional $1,096Mn Demand Since Transaction Announcement $779Mn Offtake Capacity In Total Agreement1
Slide 22: Origin is building on a strong foundation toward rapid growth
Origin is building on a strong foundation toward rapid growth… 2008-2009 2014 2017 2019 2022 2025 2027 2028-2029 Proof of 1st bioplastics concept bottle created Established Pilot Partnerships Construction Production Commercial Expansion Growth Origin founded by Demonstrated Initial investor Detailed
Slide 23: Construction schedule – Origin 1, Origin 2, and Origin 3
Construction schedule – Origin 1, Origin 2, and Origin 3 2021 2022 2023 2024 2025 2026 2027 Origin 1 Onsite Construction & Origin 1 Operating Mechanical Completion Module Start Up Erection Today Construction & Site Selection Fabrication Start Mechanically Complete Origin 2 Project Development Engine
Slide 24: Origin 1 (Sarnia, Ontario, Canada)
Origin 1 (Sarnia, Ontario, Canada) Construction site in Sarnia, Ontario (Canada) Origin 1 construction is advanced and is expected to be operating by year end 2022 17 large, complex equipment modules were fabricated by Koch Modular Process Systems (along with other equipment) and are now sitti
Slide 25: Origin 1 (Sarnia, Ontario, Canada)
Origin 1 (Sarnia, Ontario, Canada) Tanks in construction yard Core process modules awaiting installation 25
Slide 26: 3D diagram of the Origin 1 Plant Site in Sarnia, Ontario
3D diagram of the Origin 1 Plant Site in Sarnia, Ontario 26
Slide 27: Transformational chemistry through mature, industry-standard equipment
Origin is delivering transformational chemistry through mature, industry- standard equipment, materials, and technical processes Origin IP, chemistry, and Material recycling and reuse production processes Liquid phase reactors Decantation Distillation Wood yard transport Filtration Used in existing
Slide 28: Origin's use of timber and forest residues as feedstock is a potential game changer
Origin’s use of timber and forest residues as feedstock is a potential game changer 8x-14x cheaper than Decoupled from supply Leverages waste, cleans competing renewable volatility of the oil markets forests, and lets food be food feedstocks Feedstock price Indexed price (1 = Q1 2016 value) ~$700/to
Slide 29: Origin is pursuing a capital efficient strategy to optimize CAPEX
Origin is pursuing a capital efficient strategy to optimize CAPEX Origin’s strategy: Origin is keenly aware that capital >40 efficiency will be the major driver of its long term profitability. #1 Work with partners to identify suitable aging / Identify & For this reason, Origin is pursuing a defunct
Slide 30: Origin has meaningful advantages over bioplastics companies
Origin has meaningful advantages over bioplastics companies Origin advantaged category vs. non-fossil competitors Company A Company B Company C Fossil Origin… PHA PEF / FDCA PLA $1,960 TAM $1,000 $ Bn $0.1 - $0.5 $250 $1.5 - $5.0 Carbon footprint1, ~0.7 0.3 0.3 1.0 Larger TAM <0 indexed to fossil Il
Slide 31: Origin brings an unrivaled set of industry veterans, leaders, and visionaries
Origin brings an unrivaled set of industry veterans, leaders, and visionaries John Bissell Rich Riley Nate Whaley Stephen Galowitz Co-Founder Co-CEO CFO CCO & Co-CEO Former CEO Shazam 20 years C-Suite Co-founder / Chief Founded Origin and senior executive experience scaling Development Offic
Slide 32: Origin's technical leadership team is proven
Origin’s technical leadership team is proven Recent hires further strengthen global technology leadership in carbon-negative materials Technical leadership Recent additions to technical leadership team Mako Masuno, PhD Roman Wolff Phil McAllister Jim Wells Madhu Anand, PhD Ben Freireich, PhD VP of R
Slide 33: Origin's world-class directors will provide governance and expertise
Origin’s world-class directors will provide governance and expertise to Origin as it scales the business Karen Richardson John Bissell Rich Riley William Harvey Chair Co-Founder & Co-CEO Co-CEO • Board Member at BP, • Founded Origin Materials • Former CEO Shazam and • Former President at Exponent, D
Slide 34: Origin expects to deliver a superior financial profile for years to come
Origin expects to deliver a superior financial profile for years to come # Completed Plants 1 1 2 2 3 4 5 7 • Revenue and materials volume Revenue ($Mn) forecast / growth based on $4,019 satisfying existing customer off- Industrial Materials +48% p.a. take contracts and expected Consumer Materials $
Slide 35: Origin could see significant additional revenue potential
Origin could see significant additional revenue potential # Completed Plants (2 trains/plant) 1 1 2 2 3 4 5 7 Revenue ($Mn) • Assumes Origin is able to Additional Revenue Potential $9,090 secure moderately higher +53% p.a. prices in new customer Base Case Revenue $6,126 contracts as a result of stro
Slide 36: Long-term target operating model
Long-term target operating model Origin Plant 1 Origin Plant 2 Origin Plant 3-7 Average Illustrative Run-Rate Economics Mn lb. biomass input 49 2,205 2,205 Mn lb. products sold 146 2,412 1,313 CapEx ($Mn) $701 $1,072 $811 ROIC (Adj. plant margin/CapEx) NM 35.9% 51.1% $Mn $/lb. product $Mn $/lb. prod
Slide 37: Anticipated to be fully funded to EBITDA profitability
Anticipated to be fully funded to EBITDA profitability Origin 1 and Origin 2 Growth CAPEX Schedule3 ($Mn) Project Financed Growth CAPEX $482 Cash Flow Sources & Uses from 2021E to Origin 2 Revenue in 2025E Local, State, and Federal Government Incentives / Support3,4 Equity Financed Growth CAPEX Gros
Slide 38: Anticipated fully funded growth plan to profitability
Anticipated fully funded growth plan to profitability # Completed Plants 1 1 2 2 3 4 5 7 Origin 8+ (outside of forecast horizon) Origin 4+ Capital Expenditures ($Mn) Origin 3 $1,583 $1,651 Total Origin 1 & 2 Origin 2 CAPEX: $1,142Mn1 Origin 1 $1,131 $957 Maintenance CAPEX $870 $557 $587 $300 $111 $1
Slide 39: Origin as a public company
Origin as a public company We will continue to build upon our customer momentum while managing operations Origin’s business combination and anticipated financing and grants are estimated to support planned operations until EBITDA positive… Scale the Complete Engineer and design Fund Origin 2 site Su
Slide 40: Origin Materials – At a Glance
O O Origin Materials – At a Glance H Cl The world’s leading carbon negative materials company Disruptive Materials Decarbonizing Platform Enormous TAM Cost advantaged Technology Company Technology C ~$1+ Trillion $390Bn near-term focus in Timber feedstocks are Origin produces low and Enables custome
Slide 41: Appendix
Appendix
Slide 42: Investment Highlights
Investment Highlights 1 Addressing Enormous and Growing Materials Economy Core products are carbon negative drop-in replacements serving a ~$1Trn+ market – with diverse applications expected to deliver growth for years to come 2 Industry Disrupting Technology Supported by Deep Competitive Advantage
Slide 43: The world is drowning in carbon – it needs rapid solutions
The world is drowning in carbon – it needs rapid solutions Pathways of global carbon dioxide emissions1 Select national net-zero commitments NOT EXHAUSTIVE Gt CO2 per year Sweden Japan France UK South Korea China 2045 2050 2060 Select investment community reactions “We are asking companies to disclo
Slide 44: Origin is not feedstock limited
Origin is not feedstock limited Primary feedstock (forest / wood processing residues) Additional feedstock optionality Million tons annual availability 900 215 Distillers Mixed Grains Paper Wheat Wheat Straw Straw Orchard Corn Waste Waste Timber Timber 400 < 1% Almond Saw Shells Dust Acacia Wood Fru
Slide 45: Origin will look to value chain participants to complement its strengths
Origin will look to value chain participants to complement its strengths Origin’s strengths Feedstock Product (Bottles, Origin (CMF / HTC) Monomers (PX) Plastics (PET / PEF) Additives Customer (Biomass) Fibers) “Our proprietary bread and butter” “Putting it all together” “Clear market pull” Propri
Slide 46: Transaction Overview
Transaction Overview • Founded in 2008, Origin is the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials Overview • Artius is a publicly listed special purpose acquisition company with $725Mn cash in trust • Closing is subject t
Slide 47: Artius Acquisition Inc. Overview
Artius Acquisition Inc. Overview Overview Value-Add • Artius Acquisition Inc. (“Artius”) was founded in July 2020 by Charles • Seasoned executives with expertise in investing, operating and Drucker and Boon Sim to invest in disruptive platform technologies transforming disruptive companies and helpi
Slide 48: Detailed transaction overview
Detailed transaction overview Key Transaction Terms Pro Forma Valuation ($Mn) • The transaction is subject to there being a minimum cash amount of Origin Materials Share Price $10.00 $525Mn in Artius at closing after giving effect to any shareholder redemptions Shares Outstanding (Mn) 184.3 • Execut
Slide 49: Glossary
Glossary Abbreviation Explanation Carbon negative activities or products go beyond achieving reduced carbon impact, or net zero carbon Carbon negative impact, to actually remove additional carbon dioxide from the atmosphere CMF 5-Chloromethylfurfural, organic compound obtained from dehydration deriv
Slide 50: We make negative carbon materials matter
We make negative carbon materials matter