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Amg Critical Materials — AMG Advanced Metallurgical Group — ESG Presentation (April 2021)
22 slides from Amg Critical Materials's sustainability presentation, Apr 19, 2021
Slide 1: ECO2RP: Enabling CO2 Reduction Portfolio at the Heart of Our ESG Approach
ECO RP… ENABLING CO 2 2 REDUCTION PORTFOLIO AT THE HEART OF OUR ESG APPROACH APRIL 2021 AMG ADVANCED METALLURGICAL GROUP N.V.
Slide 2: Cautionary Note
CAUTIONARY NOTE This document contains proprietary information and is being provided solely for information purposes by AMG Advanced Metallurgical Group N.V. (The “Company”) and may not be reproduced in any form or further distributed to any other person or published, in whole or in part, for any pu
Slide 3: Table of Contents
TABLE OF CONTENTS INTRODUCTION TO ECO2RP 3 FINANCIAL PERFORMANCE 13 APPENDICES 17
Slide 4: AMG's Strategic Origin
AMG’S STRATEGIC ORIGIN ▪ AMG was founded on the basis of a key global trend: ▪ Clean energy and energy savings demand materials science- based solutions ▪ This global trend toward CO2 abatement created additional demand for materials in the periodic table that in turn became “critical” 1) ▪ AMG was
Slide 5: ECO2RP Chronology
ECO RP CHRONOLOGY 2 We provide products that enable our customers to reduce CO2 emissions through higher energy efficiency The EU regulation is working in the direction of AMG’s long-term objectives: CO2 reduction enabling activities are at the core of the EU TAXONOMY INITIATIVE1) ECO RP 2 We have c
Slide 6: ECO2RP is the Portfolio of AMG's Products Enabling CO2 Reduction
ECO RP IS THE PORTFOLIO OF AMG’S PRODUCTS ENABLING CO2 2 REDUCTION Products are accepted in ECO2RP only when the enabled CO2 reduction Strict selection criteria effect has been established by a LCA performed by a leading third-party expert AMG’S enabled CO2 emission reductions Rest of AMG ECO2RP Res
Slide 7: ECO2RP Is Currently Composed of 8 Products
ECO RP IS CURRENTLY COMPOSED OF 8 PRODUCTS THAT 2 ENABLED 56.6 MILLION MT OF CO2 REDUCTION IN 2020 Thermal barrier coatings, enabling fuel savings 34.2 1 through higher operating temperatures in aircraft engines Aluminum alloys, enabling reduced fuel consumption 6.5 2 by light weighting Master alloy
Slide 8: A Strong Pipeline of LCA Candidates to Be Added to the ECO2RP
A STRONG PIPELINE OF LCA CANDIDATES TO BE ADDED TO THE ECO2RP WILL ENABLE FURTHER CO2 EMISSION REDUCTION… LCA candidates enabling further CO2 reduction (Million MT) MOx Fuels, nuclear power to replace 9 12.0 fossil power in China (est. 2022) Titanium aluminides, enabling fuel 10 TBD savings and use
Slide 9: With Tangible Results Expected in the Near Future
…WITH TANGIBLE RESULTS EXPECTED IN THE NEAR FUTURE List of LCA projects enabling further CO2 reduction Ferrovanadium Ferrovanadium 4 2020 ECO2RP LCA portfolio Thermal barrier coatings Thermal barrier coatings 1 Master alloys for Ti alloys Master alloys for Ti alloys 3 Graphite Graphite 5 Turbocharge
Slide 10: Verified Carbon Standard Methodology Development
VERIFIED CARBON STANDARD METHODOLOGY DEVELOPMENT Methodology for Reduction in GHG Emissions From Metal Production Using Metal Bearing Wastes • AMG in final stages of publishing a VERRA - Verified Carbon Standard Methodology • Methodology allows certified projects to turn their greenhouse gas (GHG) e
Slide 11: AMG Strategic Priorities Beyond 2020: Electricity Storage
AMG STRATEGIC PRIORITIES BEYOND 2020: THE ENERGY TRANSITION PASSES THROUGH THE ELECTRICITY STORAGE Grid Storage Batteries play a critical role in reducing CO2. Battery-based electricity storage capacity enables additional renewable energy for the utility industry, removing a bottleneck in renewable
Slide 12: Our Commitment Toward Sustainability Creates Shared Values Across Stakeholders
OUR COMMITMENT TOWARD SUSTAINABILITY CREATES SHARED VALUES ACROSS OUR STAKEHOLDER GROUP… Suppliers Employees Customers Investors Communities Marathon Jane Neal Supplying conflict-free Berenberg Petroleum Corp. VP AMG Vanadium critical materials Equity research “In 2019 MPC “Our president brings a Pr
Slide 13: ECO2RP Financial Performance
ECO RP 2 FINANCIAL PERFORMANCE Turbine Blade Coater
Slide 14: ECO2RP Has Become the Growth Engine for AMG Over the Past 10 Years
ECO RP HAS BECOME THE GROWTH ENGINE FOR AMG OVER THE 2 PAST 10 YEARS, EXPANDING IN SCALE & PROFITABILITY Relevance of the ECO2RP within AMG (Key economics ‘10 – ‘20) ECO2RP - Key highlights Revenue 1,500 50% 29% 40% ▪ Higher growth in 1,000 26% 22% 23% 30% Revenue and Gross 17% 18% 18% 16% 14% 14% 2
Slide 15: ECO2RP Case Studies – Ferrovanadium & Graphite
ECO RP CASE STUDIES – FERROVANADIUM & GRAPHITE 2 Ferrovanadium Cumulative Gross Profit (Million $) Cumulative Enabled & Mitigated CO2 Reduction 200 (Million MT) 11.3 150 8.4 100 5.6 4.3 50 2.9 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Graphite Cumulative Gross Profit (Million $) Cumulative
Slide 16: ECO2RP Value Indications
ECO RP VALUE INDICATIONS 2 AMG’s CO2 offset credit valuation based on the enabled CO2 emission reductions (Million MT) 6.9% 67.8 ▪ If the ECO2RP enabled CO2 reduction products were 56.6 tradeable as European CO2 Allowances, the total 50.8 value of 56.6 million MT of enabled CO2 reduction at 43.4 45.
Slide 17: Appendices
APPENDICES Lithium Processing, AMG Brazil
Slide 18: Process Overview
PROCESS OVERVIEW Spent Pyrometallurgical Catalyst Process FeV HSLA steel Lightweight Structures Gasification Hydrometallurgical V2O5 Ash Renewables Process V-electrolytes V-batteries (grid stabilisation) Aircraft and jet engine ▪ Production of high-purity vanadium-pentoxide (V2O5) enables energy sto
Slide 19: Global Vanadium at a Glance
GLOBAL VANADIUM AT A GLANCE Other USA Petroleum 9% 3% Waste Brazil Recycling 6% 12% South Africa Vanadium China BOF Primary Vanadium 7% Supply 60% Steelmaking Mining Production Concentration 18% Method Slag 70% Russia 15% ▪ Over time new vanadium production will come from increased recycling of petr
Slide 20: Global Vanadium at a Glance: Vanadium Consumption
GLOBAL VANADIUM AT A GLANCE Vanadium Consumption Chemicals & VRFB Catalysts Batteries 20.6 4% 3% 23.8 24.6 12.8 23.5 11.9 Aerospace 22.3 10.8 13.1 12.9 Alloys 12.7 11.8 13.2 5% 11.6 12.3 Consumption 65.6 by End Use 44.1 53.5 35.4 40.1 Steel 88% 2016 2017 2018 2019 2020 China North America Europe ROW
Slide 21: CO2 Reduction Enabling Activities Are at the Core of the EU Taxonomy Initiative
CO2 REDUCTION ENABLING ACTIVITIES ARE AT THE CORE OF THE NEWEST EU TAXONOMY INITIATIVE Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088. For each environmental object
Slide 22: Abbreviation Key
ABBREVIATION KEY CE Circular Economy Focus ECO RP:2 Enabling CO2 Reduction Portfolio ERM: Environmental Resources Management GHG: Greenhouse Gas GRI: Global Reporting Initiative LCA: Life Cycle Assessment TBC: Thermal Barrier Coating VRFB: Vanadium Redox Flow Battery 22
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