Avantium
Pioneering renewable chemistry
September 2019
Avantium September 2019 Pioneering renewable chemistry Disclaimer - - PowerPoint PPT Presentation
Avantium September 2019 Pioneering renewable chemistry Disclaimer 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
September 2019
Disclaimer
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 session that follows that oral presentation, hard copies of this document and any materials distributed at, or in connection with, that presentation. Some of the statements in this Presentation constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements relate to future events or the Company’s future financial performance. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. In evaluating these statements, various risk factors should be taken into account. Risk factors may cause actual results to differ materially from any forward-looking statement. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or
completeness of such statements. The Company is under no duty to update any of the forward-looking statements after the date of this Presentation or to conform such statements to actual results.
The dilemma: going climate-neutral by 2050 vs global plastics production
Source: European Commission, brochure on going climate-neutral by 2050 – a strategic long-term vision for a prosperous, modern, competitive and climate-neutral EU Economy (2018)
Transition of the Chemical Industry Driven by Megatrends
Carbon under the ground Carbon above the ground
Linear Circular Yesterday
A Wealth of Carbon above the Ground
The three renewable carbon sources that enable a circular economy Plant-based carbon Air-based carbon Man-made carbon
Avantium’s Role in this Transition
industry to renewable chemicals and polymers
to make sustainable, plant-based products that compete on performance and costs
partnership with industrial companies
Avantium Business Units
Renewable Chemistries
Catalysis
systems provider
Renewable Polymers (fka Synvina)
Catalysis: Tomorrow’s Catalysis Today
Services Leading provider of superior catalysis systems and services, serving a blue chip customer base Systems
testing and contract R&D, heterogeneous as well as homogeneous
bed and batch
catalysts and chemistries with highly accurate, reliable and flexible Flowrence high-throughput catalyst testing systems
9 patent families
network of industry experts and academic catalyst R&D centers Technology
Our technologies: YXY technology
Catalytic technology to convert plant-based sugars to FDCA and PEF Market potential > € 200bn
PEF is a 100% plant-based, 100% recyclable plastic with superior performance properties compared to today’s widely used petroleum-based packaging materials
Benefits PEF
Source: Canadean (2013)
PEF Benefits – in use
Performance
Circular Economy
Renewable
PEF Benefits – after use
> Proven fit with existing sorting and recycling facilities
> Tests Biodegradation of PEF by Organic Waste Systems (OWS), Gent, Belgium > First results show that PEF degrades much faster than PET (years instead of hundreds of years) > Field trails Avantium ongoing
> Safe and stable > 100% Recyclable > Faster degradation in nature to avoid future accumulation
5 kiloton per year De-risked High value / performance products Cash flow positive > market launch > enable licensing in high-volume markets Committed partners throughout the value chain Flagship plant operational in ~2023 EUR 150m
New Commercialization Strategy Renewable Polymers
Scale-up and market launch strategy
New Commercialization Strategy Renewable Polymers
> Negotiations with multiple partners ongoing > High level of interest in supply of raw materials, production of FDCA and PEF, and application of PEF for commercial products in multiple end markets > Commitments for financial contribution to flagship plant expected prior to investment decision (2020) Fructose FDCA PEF Converters Brand
Timetable New Commercialization Strategy Renewable Polymers
Site selection
H2 2019 2020 2021 2022 2023 2024
Engineering Site selection Investment decision Start Flagship Plant Construction Flagship Plant Funding sources in place Deployment (licensing) partner agreements
Funding Requirements Flagship Plant to Produce FDCA
Total funding need
> CAPEX (ISBL + OSBL) > Start-up costs > Working capital > Ongoing Renewable Polymers expenses until cash-flow positive (2019-2023)
in place before end of 2020
BBI Grant [20m] AVTX equity [35m] Strategic/Equity partners [30-35m] Commercial Debt [30- 35m] Debt/Grants tbd [15-20m] Reg-National / EU grants [15-20m]
Total funding sources
Our technologies: Mekong technology
Catalytic, single-step process for producing plant-based (MEG) from industrial sugars Benefits Mekong technology Market potential global MEG market consumption
Mekong produces cost- effective plant-based MEG in a single-step process from industrial sugars
Source: Nexant report 2017
Single-step process to produce plant-based mono- ethylene glycol A drop-in product identical to fossil-based MEG Competitive in terms of cost and quality
MEKONG Technology – Transforming the Materials Industry
Construction Demonstration Plant Chemie Park Delfzijl
Development Demonstration Plant Flagship Plant Industrial Scale
Current status
Start-up: ~2024
Our technologies: Dawn Technology™
Reduce land use and environmental impact of 1G sugars Cascading the use of biomass for chemicals, materials and energy Suitable for locally sourced biomass
Market potential Industrial sugars from plant-based feedstock Biorefinery process for industrial sugars and lignin from non-food biomass Benefits industrial sugars from non-food sources
Dawn Technology™ - The Future of Biorefining
Development Pilot Biorefinery Flagship Plant Industrial Scale
Current status HYDRO\4 Pilot Biorefinery Delfzijl
Start-up: ~2023/2024
Avantium Renewable Chemistries Volta
Business Development Benefits Volta
Converting CO2 to high value chemicals via electrochemistry
electrochemical CO2 conversions
partners in European grant consortia, also providing Avantium with over €5m of grants
Europe
chemical industry
A Coherent Portfolio of Technologies
Coherent portfolio, each targeting blockbuster markets Pursuing the most attractive opportunities through stage gate process
Concept stage Lab stage Pilot Plant stage Commercial stage
DAWN Mekong YXY Parana
Gate Review Gate Review Gate Review
Volta DAWN™ YXY
FDCA
MEKONG
MEG PEF
Industrial sugars
How we innovate: multiple strategic routes to monetize our technologies
Confidential
Lab scale Pilot plant Reference plant Industrial scale
Licensing Scale Business model / earnings
Partnering Sell technology Strategic choices Stand-alone Strategic choices
Business Highlights H1 2019 (1)
─ Cash position was €53.1 million at 30/06/19 (31/12/18: €83.3 million), mainly attributable to regaining full ownership of Renewable Polymers (€ 17.4 million) and investments in our Mekong demonstration plant (€3.1 million) in line with our strategic plan ─ Consolidated first half year revenues decreased to €5.2 million in H1 2019 driven by later than anticipated signing of contracts in the Catalysis business unit, partly mitigated by higher revenues in Renewable Chemistries and Renewable Polymers
Scale-up and Market Launch Strategy: ─ Industry veteran Marcel Lubben has been appointed Managing Director ─ Design of a 5 KTA flagship plant has commenced; Worley (formerly Jacobs Engineering) commissioned to execute the detailed pre-engineering studies ─ Discussions with potential customers are progressing: both niche users that require PEF’s unique features, and premium first movers in larger markets
Business Highlights H1 2019 (2)
industry leaders: ─ Shell renewed its long-running partnership with Avantium Catalysis for four additional years for the execution of catalyst testing programs with Avantium’s Flowrence technology platform ─ Avantium decided to significantly expand its capacity to test commercial catalysts for hydrotreating and hydrocracking applications, to serve the strong demand for its independent refinery catalyst testing services
Chemistries: ─ Avantium secured €9 million in regional and European Union grants for its Mekong and Dawn™ Technology ─ The Mekong demonstration plant opening is scheduled for November in Delfzijl ─ Potential collaboration discussions progressing
Arrival and Start of Mekong Demonstration Plant Installation
2019 Outlook
plant in Delfzijl in November 2019
range
Company highlights
1 Pioneering renewable chemical company developing innovative sustainable chemistry solutions to commercial reality Catalysis: Cash flow generating business, maintaining technological leadership in advanced catalysis R&D Renewable Chemistries – a portfolio of programs focusing on the conversion of biomass to chemical building blocks and plastic materials 4 3
Dawn Technologytm – biorefinery process for high purity glucose from non-food biomass, with a pilot biorefinery in Delfzijl Mekong – catalytic single step process for making plant-based MEG, with a scheduled
Volta – CO2 to chemicals via electrochemistry, with a fully equipped electrochemistry laboratory and a pre-pilot scale facilities in Amsterdam YXY Technology – unique, proprietary technology to produce 100% plant-based, fully recyclable, packaging materials with superior performance, having > € 200 billion market potential, with a pilot plant in Geleen & sight on first commercial flagship plant (aimed start- up 2023) 2 Renewable Polymers (fka Synvina) aiming aims to commercialize our YXY plants-to- plastics Technology