Li-Cycle Holdings Corp. · OTC:LICYQ
Li-Cycle — SPAC Merger (March 2021)
40 slides from Li-Cycle's SPAC merger presentation, March 2021
Slide 1: Investor Presentation March 2021
Investor Presentation. March 2021 ea os : Seed ‘se PERIDOT
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation includes “forward-looking statements" within the meaning of the “safe harbor" provisions of the USS. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,”
Slide 3: Disclaimer - Continued
Disclaimer -— Continued ADDITIONAL INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT If the parties enter into definitive documentation, the proposed business combination will be submitted to shareholders of Peridot for their consideration, Peridot intends to file a preliminar
Slide 4: Attractive Business Combination Between Leading Li-Ion Battery Recycling Business and SPAC Team
Attractive Business Combination Between Leading Li-lon Battery Recycling Business and Highly Regarded SPAC Investment Team Li-Cycle’ HATCH Ajay Kochhar Co-Founder, President & CEO, Executive Director 9 HATCH Tim Johnston Co-Founder, Executive Chairman * certicom bioscrypf a redline communications Br
Slide 5: Transaction Overview
Transaction Overview OVERVIEW m Li-Cycle is a market leading lithium-ion battery resource recovery company and the largest lithium-ion battery recycler in NAM = Peridot Acquisition Corp. is a blank check company sponsored by Carnelian Energy Capital targeting energy transition-focused opportunities
Slide 6: Li-Cycle Sits at the Intersection of Three Core Themes
Li-Cycle Sits at the Intersection of Three Core Themes Sustainable Li-lon Battery Recycling is the Missing Battery Supply Chain Step Gs EV Revolution Domestic Supply Of Strategic Materials BLi-cycle
Slide 7: Patented, Sustainable Technology with a Durable Moat
Patented, Sustainable Technology with a Durab le Moat Sustainable Recycling Solution @ Zero impact air emissions; non-pyro / no burning; water recirculated ina closed loop; regionally-driven business, reducing cost associated with battery transport Proven, Patented Technology Industry-leading up to
Slide 8: Massive Electrification Ramp Creating Lithium-Ion Recycling Imperative
Massive Electrification Ramp Creating Lithium-lon Recycling Imperative Manufacturing scrap and end-of-life battery waste Critical need for scalable, environmentally friendly recycling solution Shortage of domestic lithium, cobalt and nickel ‘Source: Benchmark Mineral intelligence, BloombergNEF Elect
Slide 9: Economically Advantageous and Customer-Centric Spoke & Hub Model
Economically Advantageous and Customer-Centric Spoke & Hub Model Shredding & Mechanical Separation Battery Grade & Refined Lithium-ion Batteries F » Intermediate Products Materials » Extraction & Material for Recycling Recovery Spoke “N” Network of Spokes Mechanical Hydrometallurgical Spoke f Lithiu
Slide 10: Contracted Supply and Off-Take Complete a Closed Loop Strategy
Contracted Supply and Off-Take Complete a Closed Loop Strategy Industry Inputs Example Industry Sources of Batteries for Recycling Large Format: Top Electric Auto Manufacturers lan Ai ( a OS. Bae 6 ES i e@ SB) 2. T ee ® QD z00x—» amazon en © RIVIAN Small Format: Largest Battery Aggregators A i WeR I
Slide 11: Li-Cycle's Technology Is Superior to Other Forms of Recycling
Li-Cycle’s Technology Is Superior to Other Forms of Recycling (rerelespokesande ite Smelting or Thermal ; Pre-Treatment + Cathode-to-Cathode Technologies ra Refining i . I Recycling 30% I Efficiency Up to 95% = 50% . I | Rate ( ) (cathode proportion only) i Cee Ee A A A Battery Chemistry 4 & Charge
Slide 12: Electrification Drives Critical Demand for Battery Grade End Products
Electrification Drives Critical Demand for Battery Grade End Products Nickel Lithium Carbonate Cobalt (tonnes) (tonnes) (tonnes) 1,200,000 1,150,000, 250,000 1,000,000 200,000 900,000 800,000 150,000 600,000 650,000 100,000 400,000 400,000 50,000 200,000 150,000 2020 2025 2030 2020 2025 2030 2020 20
Slide 13: Diversified Supply of Batteries Drives Recycling Need
Diversified Supply of Batteries Drives Recycling Need Battery Waste Sources Today Battery Waste Sources in 2025 Energy Storage Systems Energy Storage Systems Consumer Electronics 2% co 5% 5% nsumer , Electronics Manufactiring Scrap 50% Auto OEMs 25% ‘Auto OEMs Manufacturing Scrap 68% 16% &¥ Manufact
Slide 14: "Future Proofed" Technology Sets Li-Cycle Apart from Competitors
“Future Proofed” Technology Sets Li-Cycle Apart from Competitors Process Designed To Benefit From Battery Market Evolution v Environmentally friendly recycling approach 2050 Net v Non-pyro / thermal processes without harmful emissions Zero VY Water recirculated in a closed loop, zero impact air emis
Slide 15: Li-Cycle Management Team is Experienced and Public Company Ready
Li-Cycle Management Team is Experienced and Public Company Ready Extensive Battery, Metals and Engineering Background Ajay Kochhar Company Overview Co-Founder, HATCH A - A President & CEO, m Headquartered in Toronto, Li-Cycle was founded in 2016 Executive Director m= 2commercial Spokes and a Hubin l
Slide 16: Obama Administration
Obama Administration
Slide 17: Technology, Commercial and Industry Overview
TECHNOLOGY, COMMERCIAL AND INDUSTRY OVERVIEW
Slide 18: Spokes Use Scalable, Standard Equipment
Spokes Use Scalable, Standard Equipment Pate nted Apparatus / System Lithium-ion Batteries - all chemistries, Hygiene form factors ina single stream, at ‘« . their state of charge (SoC) as-is Ventilation => Screen Shredded Plastics Plastics: Plastics to fuel or reuse S . Copper / Aluminum Solution C
Slide 19: Hubs Use All Proven Equipment
Hubs Use All Proven Equipment Patented Process; 12 Formalized Trade Secrets -e- ee ee ee Ke ee Ke ee ee ee Ke ee ee ee eee eK 1 ® ® ® > @® > ® @ © ® Reaction Tank / Agitator Black Mass +) Filter Press Solvent Extraction Mixer / Settler Crystallization Graphite Copper Gypsum Manganese Cobalt Nickel S
Slide 20: Specialty Grade Battery Products with Contracted Off-Take
Specialty Grade Battery Products with Contracted Off-Take Hub Converts Black Mass Into Materials for Re-Entry Directly Into the Supply Chain Lithium Carbonate Nickel Sulphate Cobalt Sulphate Li-Cycle Hub End Products - Key Differentiators m Li-Cycle reproduces battery grade and high purity materials
Slide 21: Regional Presence and Global Footprint
Regional Presence and Global Footprint 5-Year Rollout Plan = Regional Spokes reduce safety risk and cost associated with battery transport = Closer to supply centers while developing supplier relationships and is North America 3 Spokes cementing first mover advantage 1 Hub = Centralized Hubs maximiz
Slide 22: Government Mandates Accelerating Recycling Growth
Government Mandates Accelerating Recycling Growth Heightened Battery Regulation © (iP USA: California Requires recovery as close to 100% as possible starting in 2022 CA: Ontario Requires recovery rates of 70%+ by 2023 China Has required recovery rates greater than 80% since 2018 European Union Propo
Slide 23: Rochester Hub Has Received Significant State and Local Support
Rochester Hub Has Received Significant State and Local Support Li-Cycle will further grow its U.S. operations at Eastman Business Park, committing to creating over 100 new jobs The NYS investment complements “Finger Lakes Forward” - the region's comprehensive strategy to revitalize communities and g
Slide 24: Truly Sustainable Recycling, Localized Source of Critical Materials
Truly Sustainable Recycling, Localized Source of Critical Materials Recovery for All Forms of Lithium-lon Batteries Patent Protection Commercial and Intangibles 100% Li-Cycle owned Seasoned management team 18 total patents and patent applications across all applicable jurisdictions that tie back to
Slide 25: Financial Overview
FINANCIAL OVERVIEW
Slide 26: Largest Lithium-Ion Battery Recycler in NAM
Largest Lithium-lon Battery Recycler in NAM Approach to Growth @)Regional partnerships (e.g., . Today | 20s Joint Ventures): progressed 2 1 Hub inLate = 20 Total 4 Total stage opportunities Operating Spokes Stage Development Operating Spokes Operating Hubs corresponding to 10 additional Total Capaci
Slide 27: Attractive Unit Economics Ready to Scale
Attractive Unit Economics Ready to Scale e; Commercial Spoke | Commercial Hub 100% Highlights 100% Highlights ., Capacity 5, 600 tea UB 60,000tpa LIB comes (25,000 tpaBlack Mass) Initial CAPEX Initial CAPEX ~S4mm ~$172mm After-Tax IRR After-Tax IRR ~67% ~60% Avg. Annual OPEX Margin Avg. Annual OPEX
Slide 28: Li-Cycle Financial Projections
Li-Cycle Financial Projections Revenue EBITDA (SUS in millions) (3US in millions) > -- 482% cAGR _e-- sose 56% =--7 $541 -_<-"- - $700 41% 48% $264 S655 $339 $12 $75 $394 4% $1 $7 $31 $109 su $68 NM — + io 20z1€ 2022E 2023E 2024€ 2025E (6) 2021€ 2022€ 2023€ 2024€ 2025€ | Contracted Off-Take ™Uncontr
Slide 29: Transaction Overview
TRANSACTION OVERVIEW
Slide 30: Fully Committed, Upsized $315mm PIPE
Fully Committed, Upsized $315mm PIPE Key Transaction Terms Pro Forma Valuation . ane Pro Forma Valuati ‘SUS in mm) "= Fully committed, upsized $315 million PIPE re Forma Caueton (SUS in mm) Share Price $10.00 PIPE investors include Neuberger Berman Funds, Franklin Templeton and Pro Forma Shares Outs
Slide 31: What is the Comp Universe For Li-Cycle?
What is the Comp Universe For Li-Cycle? Waste Management Electrification Faci tors Battery Manufacturers & Recycling Providers Benefitfrom thecontinued : 4 Similar growth profiles Similar end users / : 4 Similar business model of _: 4 Similar end products growing electrification trend - customers :
Slide 32: Market Leading Growth and Margin Profile...
Market Leading Growth and Margin Profile... CY 2021E - 2024E Revenue CAGR 293% 128% 105% 18% % 11% Se Se GLi-cycie’ Electrification Disruptive Battery” Waste Management &” Lithium” y Facilitators Battery€Vs Manufacturers Recycling Providers Producers EBITDA Margin 48% 29% 23% 15% 16% 10% 6 Li-cycle’
Slide 33: ...At Attractive Valuation Levels
. At Attractive Valuation Levels Firm Value / EBITDA Median: 21.4x 35.9x 22.3x 21.4x 16.1x = Eo L Gui-c le’ Electrification Disruptive” Battery Waste Management & Lithium 1-Cycle Facilitators Battery EVs Manufacturers Recycling Providers Producers 2023€ 2023€ 2023€ 2021€ 2021€ 2021€ Firm Value / EBI
Slide 34: Discounted Future Value - Adj. EBITDA
Discounted Future Value — ADJ. EBITDA (SUS in billions) Future Discounted $6.8bn ~73% discount to midpoint $3.9bn $1.1bn 20.0x - 22.0x Implied Discounted Firm Value @ Post Money Enterprise FV /2024E EBITDA” (Discounted 3 Periods @20.0%) Value Source: Company filings and presentations, FactSet. Marke
Slide 35: Appendix
APPENDIX
Slide 36: Public Company-Ready Leadership
Public Company-Ready Leadership 1 Team and Board Leadership Team Ajay Kochhar % Co-Founder, President & CEO, Executive Director Tim Johnston Co-Founder, Executive Chairman ¢ 5%, Kunal Phalpher y cco Bruce MacInnis CFO Chris Biederman cto HATCH HATCH Gelectrovaya finance’ mation redline * certicom bi
Slide 37: Summary Financial Table
Summary Financial Table (SUS in mm) 2021€ 2022E 2023E 2024€ 2025€ Revenue $12 $75 $264 $700 $958 Growth (%) 175.4% 550.8% 251.6% 165.3% 36.9% OPEX $15 $63 $138 $345 $403 9 of Revenue 130.0% 84.5% 52.3% 49.4% 42.1% EBITDA ($6) $3 $109 $339 $541 Margin (%) (53.8%) 3.6% 41.3% 48.4% 56.5% Growth (%) NM
Slide 38: Li-Cycle to Benefit from Commodity Pricing Tailwinds
Li-Cycle to Benefit from Commodity Pricing Tailwinds Management Uses Conservative Forecasts Compared to Leading Market Intelligence Firms Nickel Lithium Carbonate Cobalt ($/tonne) ($/ tonne) ($/ tonne) 22,000 20946 20.946 20.946 90,000 ———- "8000 81869 20,000 19.198 ‘ sy000 80,000 a 18201 ‘ fase oO
Slide 39: Detailed P&L
Detailed P&L (Sus) Revenue Product Sales Recycling Services Total Revenue Cost Of Goods Sold Gross Profit Expenses ProfessionalFees Personnel Research & Development Office and Administrative Marketing and Business Development Plant Operations Travel & Entertainment Depreciation Share-based Compensat
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