Slide 1: Avantium presentation
Avantium | presentation 1 Q1 2021
Slide 2: Disclaimer
Avantium | presentation 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 the slides by the Company, the question-and-answer
Slide 3: Management Team
Avantium | presentation Management Team Education: Education: Economics (Amsterdam) and Law (Leiden) and MBA (Boston) Chemistry (Utrecht) Today’s Selected previous / other positions: Selected previous / other positions: Now: Supervisory Board presenters Now: several advisory Sanquin positions, s
Slide 4: Consumers have increasing environmental concerns
Consumers have increasing environmental concerns Pressure on industries to shift to circularity and decouple plastics from fossil feedstock O uonejuasaid | wnqueay
Slide 5: Avantium company overview and lead products
Avantium | presentation Two lead products: FDCA, the chemical building block for PEF: a novel, first-in-class plant- based polyester targeting $200+ billion markets; entering commercial manufacturing PlantMEG™: sustainable and cost-effective plant-based alternative for fossil-MEG, a key ingred
Slide 6: Investment highlights
Avantium | presentation Leading innovative products FDCA and plantMEG™ are the key ingredients for novel polymer PEF: 100% plant-based, recyclable and degradable with superior performance Addressing $200B+ end-markets with consumers demanding change Pipeline of innovative chemical technologies at va
Slide 7: Partners and licensing business model
Avantium | presentation Multiple partners: • To share scale-up requirements and cost-of-capital • To provide validation of the product applications • To form the supply chain from feedstock to end-market Scale Lab scale Pilot plant Flagship plant Industrial scale Demonstrate Innovator Innovator Lice
Slide 8: Global warming stripes
Avantium | presentation Global warming stripes by climate scientist Ed Hawkins 8
Slide 9: 1. The Problem
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 9
Slide 10: Plastic waste and fossil dependence
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 2014 2050 >90% of conventional plastic is not recycled (1950 - 2015): Conventional Many plastic applications, such as plastics small sized bottles are not production recyclable, as they
Slide 11: Avantium | presentation
Avantium | presentation 11
Slide 12: Plastic pollution news
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 16 May 2020 18 May 2020 17 May 2020 22 May 2020 12
Slide 13: Avantium technology from feedstock to end markets
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation = Avantium technology agri crops I FDCA packaging PEF >$150bn sugars textiles non-food biomass >$40bn II 100% plant-based plantMEG™ film forestry & agri >$8bn waste closed-loop recycling /
Slide 14: A 100% green plastic bottle needs plantMEG and FDCA
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation A 100% green plastic bottle can only be produced using plantMEG and FDCA Crude oil Sugars PET Bio-PET PEF 100% fossil 100% plants FDCA = furandicarboxylic acid PEF = polyethylene furanoate
Slide 15: PEF can solve very specific issues
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation PEF can solve very specific issues Unintended leakages: 1 Renewable: PEF is plant-based instead of fossil- degradation based waste collector cascaded Reduce: PEF is superior allowing thinn
Slide 16: Highly differentiated performance plastic and applications
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Highly differentiated performance plastic High-value PEF applications Multi layer bottles 100% PEF 100% PEF as barrier layer providing PLANT-BASED RECYCLABILITY performance and enablin
Slide 17: Paboco Paper Bottle project
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Paboco®, Paper Bottle Project, an innovation community joining leading brands Carlsberg presented the first prototypes of the Paper Bottle in October 2019, testing in 2020 PEF will pro
Slide 18: plantMEG value proposition
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Consumers are increasingly making Brands must adapt to Large end- Value proposition: environmentally conscious choices: their consumers: markets: The use of plantMEG™ will provide brands w
Slide 19: Monetise FDCA, the key building block for PEF
3. MONETISE FDCA, THE KEY BUILDING BLOCK FOR PEF hee uonejuasaid | wniqueny —— O
Slide 20: FDCA scale-up from laboratory to industrial
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation LABORATORY PILOT FLAGSHIP INDUSTRIAL 2008 2011 - today 2023 onwards 2024 and beyond Amsterdam Geleen Delfzijl Global Kilogrammes/annum Tonnes/annum 5 kilotonnes/annum
Slide 21: Commercialisation path and market applications
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Licensing Product offtake INDUSTRIAL: >250kt/a INDUSTRIAL: €1.5-2.5/kg 100kt/a Collaborations €4-5/kg Mainstream applications FLAGSHIP: 5kt/a Value applications €8-10/kg >70mt/y – 4.2% CAG
Slide 22: FDCA value chain partners
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Some examples: Feedstock Engineering Polymerisation Converters Brand owners Consumers Funding partners (grants): Funding partners (equity): Groningen Consortium 22
Slide 23: FDCA flagship plant
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Scale Location 5 kilotonnes of FDCA/annum Chemie Park Delfzijl Rendered image of the Flagship Plant design Greenfield plot @ Chemie Park Delfzijl Market focus Timing High-value application
Slide 24: Final Investment Decision key conditions
Avantium | presentation Avantium will take the Final Investment Decision (FID) concerning the construction of the FDCA flagship plant when the following Key Conditions are satisfied: 1. Securing €150m 2. Obtaining sufficient 3. Engineering & financing offtake agreements supply chain Due to the g
Slide 25: Avantium Renewable Polymers and Groningen Consortium
Avantium | presentation Avantium Renewable Polymers (“RNP”) Groningen Consortium 1 2 €30m new equity €10m €20m Contribution in kind 3 Part of the previously agreed conditional financing of €30m €7.5m grant € Groningen Consortium €2.5m subordinated debt 25
Slide 26: Flagship plant funding need
Avantium | presentation Estimates in €m 35 40 150 1 2 3 20 Committed 55 Total funding need Avantium Group1 Conditional financing by BBI grant Additional debt 2, (excl. +/-20% Groningen Consortium (equity, equity and grants contingency) grant, debt) and Worley (equity) € 1: Avantium has committed €35
Slide 27: First conditional offtake agreements
Avantium | presentation First two conditional offtake agreements signed for the supply of PEF resin to manufacture food packaging for bottles and films This represents approximately 20% of the flagship plant FDCA production capacity Avantium RNP is proceeding negotiations with multiple potenti
Slide 28: Engineering and supply chain progress
Avantium | presentation Engineering: Front-End-Engineering and Design (FEED) phase of the flagship plant is in the final stages Heads of terms of the execution contract for the FDCA flagship plant established with Worley Avantium and Worley foresee to collaborate in the execution phase of Av
Slide 29: plantMEG, a key ingredient for PET and PEF
3. MONETISE plantMEG™, A KEY INGREDIENT FOR PET AND PEF la
Slide 30: plantMEG scale-up timeline
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation LABORATORY PILOT FLAGSHIP INDUSTRIAL 2010 2020 start-up 2024 - 2025 TBD Amsterdam Delfzijl Location TBD Global Kilogrammes 10 tonnes Scale TBD Industrial scale In
Slide 31: plantMEG partners and applications
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Multiple partners possible: • Feedstock providers who wish to diversify their markets • Chemical companies with the aspiration to transition to fossil-free chemicals • Consumer brands who
Slide 32: Avantium | presentation
Avantium | presentation 32
Slide 33: Avantium 2017 vs today
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation THEME 2017 (@IPO) TODAY 1 Who is driving change? Industry & Governments Consumers 2 Business model (Avantium Renewable Polymers) Joint venture (Synvina) 49% Avantium with minority partners
Slide 34: 2020 achievements and 2021-2023 plans
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation 2020 2021-2023 FDCA / PEF €25M PEFerence grant and €30M conditional • Meet all Key Conditions to take a positive FID funding for flagship FDCA/PEF plant • Start construction PEF flagship
Slide 35: Key takeaways
1. The Problem 2. Our Solutions 3. The (Future &) Benefits 4. Key Takeaways 5. Addendum Avantium | presentation Leading innovative products FDCA and plantMEG™ are the key ingredients for novel polymer PEF: 100% plant-based, recyclable and degradable with superior performance Addressing $200B+ end-ma
Slide 36: Addendum
Avantium | presentation 36
Slide 37: Addendum contents
Avantium | presentation Financial Overview (34 – 36): Consolidated statement of comprehensive income 2018 -2020 (34) Consolidated balance sheet 2018 -2020 (35) Consolidated cash flow statement 2018 2020 (36) Shareholder structure (37) Technologies & business units (38 – 43): FDCA / PEF
Slide 38: Consolidated statement of comprehensive income
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation in Euro x 1,000 Half year Half year Year ended 30 June 30 June 31 December 2020 2019 2019 2018 Continuing operations Revenues 4,294 5,219 13,821 11,283 Other income 4,474 1,903 4,217 3,63
Slide 39: Consolidated balance sheet
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation in Euro x 1,000 As at 30 June As at 30 June As at 31 December 2020 2019 2019 2018 Assets Non-current assets Property, plant and equipment 25,992 25,671 27,677 15,186 Intangible assets 638
Slide 40: Consolidated cash flow statement
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation in Euro x 1,000 Half year ended 30 June Half year ended 30 June Year ended 31 December 2020 2019 2019 2018 Cash flows from operating activities Loss for the year from continuing operation
Slide 41: Shareholder structure
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation APG Developed Ticker: AVTX – Euronext Amsterdam & Markets Equity Brussels Pool, 11% # of outstanding shares: 25,831,817 Free float, 39% Capricorn Cleantech Fund , Analyst coverage:
Slide 42: FDCA / PEF properties
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other FDCA / PEF Avantium | presentation Property PET (Amorphous ) PEF (Amorphous) O O O O Molecule O O O O O Density 1.36 g/cm3 1.43 g/cm3 Tm 250-270°C 210-230°C Tg ~76°C** ~88°C** Crystallization time 2-3 min** 20-3
Slide 43: PEF biodegradation
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other FDCA / PEF Avantium | presentation Biodegradation (%) = amount of polymer converted to CO2 Cellulose reference: 60 days to 90% biodegradation PEF (weathered): 240 days to 90% biodegradation PEF (unweathere
Slide 44: plantMEG technology
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other plantMEG Avantium | presentation 2 ethanol 2 ethylene Sugars 2 ethylene oxide bio-MEG (+ 2 CO2) (+ 2 H2O) Sugars glycolaldehyde bio-MEG Sugars Catalysis: 1-step plantMEG™ 44
Slide 45: Avantium Catalysis
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium Catalysis Avantium | presentation Avantium Catalysis provides advanced catalysis R&D Services & Systems to international blue- Business chip players description Avantium Catalysis has provided the t
Slide 46: Biorefinery
1. Financial 1. Governance overview 2. Shareholder 2. Technologies structure 3. Technologies 3. Financial& overview business units 4. Strategic 4. Other partners Biorefinery Avantium | presentation Benefits sugars from residual forestry and agricultural streams Proven technology with the increasin
Slide 47: Electrochemistry
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Electrochemistry Avantium | presentation Benefits electrochemical CO2 conversion Preventing CO2 emissions of industrial parties Enabling cleaner chemical processes Turning waste into valuable products Curr
Slide 48: Sustainability Plan Chain Reaction 2030
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation At Avantium, sustainability is built into our very purpose. It drives our employees, informs our technology development and excites our commercial partners Every technology we develop
Slide 49: Avantium | presentation
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation 49
Slide 50: Bio-based polymers production and growth
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation In 2020, the total production volume of bio-based polymers was 4.2 million tonnes (1 % of the total production volume of fossil-based polymers) The CAGR is, with 8 %, significantly hi
Slide 51: Single-use plastic bans and brand commitments
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation “PERU RESTRICTS SINGLE-USE PLASTIC” “D.C. PLASTIC STRAW BAN BEGINS” “CANADA AIMS TO BAN SINGLE- USE PLASTICS BY 2021.” Big consumer brands aim to use 100% reusable, recyclable or composta
Slide 52: The Guardian article
1. Financial overview 2. Shareholder structure 3. Technologies & business units 4. Other Avantium | presentation Beer and soft drinks could soon be sipped from “all-plant” bottles under new plans to turn sustainably grown crops into plastic in partnership with major beverage makers. A biochemicals c
Slide 53: Contact
Avantium | presentation 53 ir@avantium.com