Purecycle Technologies, Inc. · NASDAQ:PCT
Purecycle Technologies — Q3 2024 Earnings Presentation
15 slides from Purecycle Technologies's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Corporate Update
Third Quarter 2024 Corporate Update November 7, 2024
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: We Achieved 3 Key Milestones in Q3
We Achieved 3 Key Milestones in Q3 1MM 200K 10K/hr lbs. of Feedstock in a week lbs of Feedstock in 24hrs Feedstock rates in lbs Overview Operations Market Finance
Slide 4: PCT Highlights
PCT Highlights Operations Achieved all three production milestones Significant progress on rates, uptime and reliability Current Ironton production is exclusively from PCR feedstock Co-product 2 (CP2) improvements implemented and recovery rates have reached up to 15K lbs/day Denver, PA PreP facility
Slide 5: PureCycle Manufacturing Update
PureCycle Manufacturing Update Overview Operations Market Finance Ironton rPP Pellet Production (MM lbs) Key Improvements Feedstock sorting has significantly increased production capability Uptime and reliability are increasing due to proactive operational efforts Stronger Q3 performance despite sig
Slide 6: CP2 Upgrades Improve Final Product Quality & Circularity
CP2 Upgrades Improve Final Product Quality & Circularity Performance Improvements Final PP product quality 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 product Achieved rates up to 15K
Slide 7: 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 Offsite Flake Sortation Improved PP concentration of ready-to-purify flake from approximately 75% to 95% Ironton Flake Sortation Planned start-up in Q4; expect to improve PP concentration
Slide 8: Plant Improvements Should Enhance Margins
Plant Improvements Should Enhance Margins Overview Operations Market Finance 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 Improved PCR, High
Slide 9: Profitability Should Improve with Compounding
Profitability Should Improve with Compounding Notes Economics on non-compounded sales are developing in-line with previous expectations, compounding improves overall outcomes Compounding enables PCT to meet specific customer requirements which broadens the customer base Compounded price premiums vs
Slide 10: Compounding has Expanded Our Product Portfolio
Compounding has Expanded Our Product Portfolio Overview Operations Market Finance Ironton Production Compounding Material <10 MFI Suitable for thermoforming and film applications Mid MFI Suitable for injection molding applications 30+ MFI Suitable for fiber and injection molding applications Availab
Slide 11: Positioning for Significant Global Opportunity
Positioning for Significant Global Opportunity In 2023 Mechanical recycling generates 90% of the rPP & Bio volume, but sales are limited due to quality requirements We are actively trialing customer applications for film, fiber and injection molding; represents 85% of the market Current mechanically
Slide 12: What Our Partners Say
What Our Partners Say “These fabrics perform exactly the same as those manufactured with virgin polypropylene fiber, making them nearly plug and play for our customers. We see an endless number of applications where PureCycle’s resin can be easily incorporated into the textile, transforming the fabr
Slide 13: Road Map to Sales by Product Segment
Film Packaging Product Formulation/Design Compounding Development First Customer Approval Inventory Build Commercial Sales Q4-24 Q4 Q1-25 Q1 Q2 Fiber Product Formulation/Design Compounding Development First Customer Approval Inventory Build Commercial Sales Q3-24 Q3/Q4 Q3 Q3/Q4 Q4 Road Map to Sales
Slide 14: Meaningful Improvement in Liquidity
Meaningful Improvement in Liquidity Summary of Liquidity Changes (in MM) June 30, 2024 Sept. 30, 2024 change Unrestricted Cash $10.9 $83.7 $72.8 Restricted Cash $12.6 $10.0 (2.6) Total $23.5 $93.7 $70.2 Overview Operations Market Finance Unrestricted Cash Proceeds: $90.0MM from September capital mar
Slide 15: Third Quarter 2024
Third Quarter 2024 Corporate Update November 8, 2024
PureCycle Technologies — Q3 2024 Earnings Presentation on 6ix