Loop Industries, Inc. · NASDAQ:LOOP
Loop Industries — Investor Presentation (July 2023)
30 slides from Loop Industries's investor presentation, Jul 12, 2023
Slide 1: Accelerating the Circular Plastics Economy
Investor presentation ACCELERATING THE CIRCULAR PLASTICS ECONOMY July 2023 : LOOP
Slide 2: Disclaimer
DISCLAIMER This presentation of Loop Industries, Inc., a Nevada corporation (“Loop”, the “Company,” “we,” or “our”), is dated July 12, 2023 and contains “forward-looking information” and “forward-looking statements” within Important assumptions relating to the forward-looking statements contained in
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Patented low-energy PET plastic and polyester fiber recycling technology addressing a global 85m tonne /year market1 First mover to supply global CPG brand companies with virgin quality PET resin and polyester fiber made from 100% recycled content Building brand value through c
Slide 4: The Global Plastic Waste Problem
THE GLOBAL PLASTIC WASTE PROBLEM Humankind has produced 4.9 billion tonnes 8.3 billion tonnes of plastic (60%) have been of plastics since the 1950s disposed of in landfills or the from harmful fossil fuels environment1 ~585 billion ~25 million tonnes plastic drinking bottles of plastic textiles are
Slide 5: What Does Loop Do?
WHAT DOES LOOP DO? At Loop, we’ve developed a patented technology to supply consumer packaged goods (CPG) companies around the world with virgin-quality PET plastic and polyester fiber made from 100% recycled content. Our technology breaks down waste PET into its base chemical building blocks, or mo
Slide 6: Technology Highlights
TECHNOLOGY HIGHLIGHTS Virgin-quality PET resin and polyester fiber from 100% recycled content Enables polyester fiber circularity through fiber-to-fiber recycling Infinitely recyclable packaging with no degradation in quality Low heat, no added pressure depolymerization for lower GHG emissions, lowe
Slide 7: How It Works: Circular Solution
HOW IT WORKS DMT 1. 2. MEG Loop’s process begins with Our low heat, no added pressure waste PET plastic and depolymerization technology breaks polyester fiber of low or no down the waste PET into its base value which today end up in CIRCULAR chemical building blocks, or landfill, incineration or nat
Slide 8: ~$180B Worldwide Consumption of PET
Total market $ WORLDWIDE ~$180B 2 CONSUMPTION Growing at a OF PET – 2022 4% CAGR1 45% PET Resin, Film 55% Polyester Fiber and Chip 38M Total tonnes ~85M 47M tonnes1 tonnes 1. IHS Markit PET Polymer, 2018 2. Assumes cost of $2,000/tonne for PET resin and $2,200/tonne for 8 polyester fiber
Slide 9: Government Mandates Driving Recycled Demand
GOVERNMENT MANDATES DRIVING RECYCLED DEMAND • 100% of plastics recycled by 2025 target • 77% of beverage bottles to be collected • €450/tonne on virgin single use plastic, 2023 • Zero plastic waste 2030 • 50% recycled content2 • Extended producer • €450/tonne, non- reusable plastic • 30% renewable p
Slide 10: Loop Is Decarbonizing Plastics
LOOP IS DECARBONIZING PLASTICS Lower GHG Emissions Environmental Data A 70,000 tonne Loop facility could save 143,500 – 255,500 tonnes / year 60% Less 60% Less Global Warming Potential Primary Energy Demand of CO2 compared to virgin PET1 (GHG) (Non-Renewable) 1. Source: Life Cycle Assessment of Loop
Slide 11: Feedstock Sourcing
FEEDSTOCK SOURCING • Loop’s technology allows for new PET waste streams to be recycled • Feedstock readily available in large quantities • 1,800+ feedstock samples tested to date Loop’s technology can recycle mixed colored flakes, fines, opaque PET, densified fiber, etc. Proprietary & Confidential
Slide 12: Terrebonne Production Facility
TERREBONNE PRODUCTION FACILITY Québec, Canada Technology built from the ground up over the past 7 years > $100M invested to develop the technology Optimized for efficiency and operability which de-risks scale up Equipment used in planned commercial facilities is operating continuously 5 days a week
Slide 13: Loop PET Brand Activations
LOOP PET BRAND ACTIVATIONS Evian Labeled Bottle Evian Label-less Bottle L’Occitane Shower Oil Garnier Cleansing Water 13
Slide 14: Infinite Loop Facilities
INFINITE LOOP™ FACILITIES 14
Slide 15: Design One, Build Many
“DESIGN ONE, BUILD MANY” Infinite Loop™ manufacturing facilities are designed to supply the global demand for virgin-quality, Loop™ PET resin made from 100% recycled content. Local infrastructure, near large population centers where plastic is consumed and recycled Modular design combines Loop’s dep
Slide 16: SK Geo Centric at a Glance
SK GEO CENTRIC AT A GLANCE $8+ Billion 1,000+ In Sales Employees • The general energy and chemical leader in the global market • Wholly owned subsidiary of SK innovation and part of the SK Group, Korea’s 2nd largest conglomerate • Focused on investing in advanced recycling technologies and eco-frien
Slide 17: SK ecoengineering at a Glance
SK ECOENGINEERING AT A GLANCE 1977 5,400 $7+ Billion $18+ Billion Established Employees In Sales Order Backlog 50 Projects Internationally - Including: FHSE Project – Canada Clean Fuel Project – Kuwait Combined-Cycle (the world’s largest oil sands project) Power Plant – Yeoju, Korea Reflects financi
Slide 18: Infinite Loop: Asia
INFINITE LOOP™ In partnership with ASIA Japan Projected China South Korea Infinite Loop™ First Infinite Loop™ facility Ulsan, South Korea facilities Vietnam Highlights • SK GC acquired a 10% equity stake in Loop Industries in June of 2021 • Asia is the largest global market for PET plastic and polye
Slide 19: Infinite Loop: Ulsan, South Korea
INFINITE LOOP™ In partnership with ULSAN, SOUTH KOREA South Korea First Infinite Loop™ facility Ulsan, South Korea Highlights • The first Asian Infinite Loop™ facility • Fiber-to-fiber recycling delivers circularity for polyester fibers • Project expected to break ground in 2023 • Polyester is the m
Slide 20: Infinite Loop: France
INFINITE LOOP™ In partnership with FRANCE France Infinite Loop™ facility Saint-Avold, France Highlights • Equal partners with Suez and SKGC to form JV • JV to support EU customers’ 2025 and 2030 recycled content commitments and provide a • Partnership combines Loop’s technology with full circular so
Slide 21: Targeted Facility Economics
TARGETED FACILITY ECONOMICS Targeting 5–10 year supply agreements with CPG brands Illustrative Infinite Loop™ Economics1 / Pricing linked to regional index1 Tonnage2 70,000 MT output target $375 million – $425 million / Fixed selling price premium over index partially hedges target margins1 Estimate
Slide 22: Long-Term Growth Goals
LONG-TERM GROWTH GOALS Our goal is to construct 10 greenfield Infinite Goal is to complement attractive plant 2030 production goal of 1M Loop™ facilities and 2 retrofits by 2030 economics with growing royalty revenues tonnes annually2 • 7 JV facilities1 and 5 wholly-owned facilities • Royalty growth
Slide 23: Liquidity and Ownership: Loop at a Glance
LIQUIDITY AND OWNERSHIP LOOP AT A GLANCE Loop Industries, Inc. All values in thousands unless otherwise stated NASDAQ: LOOP As at May 31, 2023 47.5M 19.3M Cash & Cash Equivalents $21,970 Debt Shares Float Secured Operating Facility ($2.6 million undrawn and available) - outstanding Investissement Qu
Slide 24: Appendix
APPENDIX
Slide 25: Worldwide Demand for Polybutylene Terephthalate (PBT)
WORLDWIDE DEMAND FOR Total market $2 POLYBUTYLENE 60K tonnes ~$6.3B TEREPHTHALATE 225K Growing at a (PBT) tonnes 465K tonnes 4.2% CAGR3 Total Global PBT demand is 300K ~1.5M around 1.5 million MT and is mainly driven by the tonnes tonnes1 Automotive and Electrical/Electronics segments which together
Slide 26: Infinite Loop: Quebec
INFINITE LOOP™ QUEBEC Quebec Infinite Loop™ facility Becancour, Quebec Highlights • Production capacity up to 70,000 MT of 100% • Ordered long-lead equipment recycled, virgin-quality Loop™ PET per annum • Critical infrastructure to Canada’s 2030 Zero Plastic • Targeting multi year supply agreements
Slide 27: Leadership Team
LEADERSHIP TEAM Daniel Solomita Fady Mansour Stephen Champagne Giovanni Catino Adel Essaddam Andrea Kostiuk Founder, Chairman Chief Financial Officer Chief Technology Officer VP Sales & Business VP Science & Innovation VP Marketing & Development Communications & Chief Executive Officer Founded Loop
Slide 28: Board of Directors
BOARD OF DIRECTORS Laurence Sellyn Andrew Lapham Jay Stubina Louise Sams Jonghyuk Lee Lead Independent Director Director Director Director Director Mr. Sellyn was appointed to Mr. Lapham has served as a Mr. Stubina was appointed to Ms. Sams was appointed to Mr. Lee was appointed to the Board of Dire
Slide 29: Our Journey
OUR JOURNEY 4 SKGC Joint Venture Agreement Signed Joint Venture 3 Health Canada Agreement to commercialize Obtained No Objection Letter from Loop’s technology in the Health Canada stating PET Asian market 3 SUEZ produced by Loop’s process is Partnership Agreement to develop suitable for food contact
Slide 30: Contact Us
Loop Industries, Inc. 480, Fernand-Poitras Terrebonne, QC, Canada J6Y 1Y4 T: +1 450-951-8555 CONTACT US E: [email protected] W: www.loopindustries.com Investor Relations Kevin C. O’Dowd T: +1 617-755-4602 E: [email protected] 30