Li-Cycle Holdings Corp. · OTC:LICYQ

Li-Cycle — SPAC Merger (February 2021)

40 slides from Li-Cycle's SPAC merger presentation, February 2021

  1. Slide 1: Investor Presentation

    Investor Presentation February 2021

  2. Slide 2: Disclaimer

    Disclaimer FORWARD LOOKING STATEMENTS This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,”

  3. 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 preliminary

  4. Slide 4: Attractive Business Combination Between Li-Ion Battery Recycler and SPAC Team

    Attractive Business Combination Between Leading Li-Ion Battery Recycling Business and Highly Regarded SPAC Investment Team Ajay Kochhar Co-Founder, President & CEO, Alan Levande Executive Director Chairman, CEO - Peridot Tim Johnston Co-Founder, Executive Chairman Preston Powell Peridot Director Car

  5. Slide 5: Transaction Overview

    Transaction Overview OVERVIEW  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

  6. Slide 6: Li-Cycle Sits at the Intersection of Three Core Themes

    Li-Cycle Sits at the Intersection of Three Core Themes Sustainable Li-Ion Battery Recycling is the Missing Battery Supply Chain Step EV Revolution Domestic Supply Of ESG Strategic Materials 6

  7. Slide 7: Massive Electrification Ramp Creating Lithium-Ion Recycling Imperative

    Massive Electrification Ramp Creating Lithium-Ion Recycling Imperative Electric Vehicle Sales 26 (millions) Manufacturing scrap and 9 2 end-of-life battery waste 2020 2025 2030 Lithium-Ion Batteries for Recycling (Thousands of tonnes/year) Global EV Critical need for scalable, and Battery environmen

  8. Slide 8: Economically Advantageous and Customer-Centric Spoke & Hub Model

    Economically Advantageous and Customer-Centric Spoke & Hub Model Lithium-ion Batteries Shredding & Mechanical Extraction & Material Battery Grade & Refined Intermediate Products for Recycling Separation Recovery Materials Spoke Mechanical Hub Hydrometallurgical Lithium Carbonate Battery cathode, bat

  9. Slide 9: Patented, Sustainable Technology with a Durable Moat

    Patented, Sustainable Technology with a Durable Moat Sustainable Proven, Patented Commercial Today, Recycling Solution Technology Poised to Scale Further Zero impact air emissions(1); non-pyro Industry-leading up to 95% recycling Capital being raised will allow us to / no burning; water recirculated

  10. Slide 10: Contracted Supply and Off-Take Complete a Closed Loop Strategy

    Contracted Supply and Off-Take Complete a Closed Loop Strategy Industry Inputs Key Highlights of Li-Cycle’s Supply and Off-Take Example Industry Sources of Batteries for Recycling Large Format: 9,500 t/y Current Off-Take Top Electric Auto Manufacturers Contracted Supply Commercial supply contracts w

  11. Slide 11: Li-Cycle’s Technology Is Superior to Other Forms of Recycling

    Li-Cycle’s Technology Is Superior to Other Forms of Recycling Smelting or Thermal Li-Cycle Spoke-and-Hub Pre-Treatment + Cathode-to-Cathode Technologies Refining Recycling 30% Efficiency Up to 95% ≤ 50% (cathode proportion only) Rate(1) Battery Chemistry & Charge Agnostic    Non-Thermal, Zero Imp

  12. 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 0 150,000 0 2020 2025 2030 2020 2025 2030 2020

  13. 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 2% Energy Storage Systems Consumer Electronics 5% 5% Consumer Manufacturing Scrap Electronics 29% 50% Auto OEMs Manufacturing Scrap 25% 68% Auto OEMs 16% $2.7bn Tota

  14. 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  Environmentally friendly recycling approach 2050 Net  Non-pyro / thermal processes without harmful emissions Zero  Water recirculated in a closed loop, zero impact air emiss

  15. 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,  Headquartered in Toronto, Li-Cycle was founded in 2016 President & CEO, Executive Director  2 commercial Spokes and a Hub in late stage d

  16. Slide 16: Strong Strategic Partnership with Peridot

    Strong Strategic Partnership with Peridot Team Brings Track Record of Shareholder Value Creation Top-Tier Leadership Peridot Acquisition Corp. Overview  Significant experience in natural resources, electric power, clean energy and energy technology Alan Levande  Sponsored by an affiliate of Carnel

  17. Slide 17: Technology, Commercial and Industry Overview

    TECHNOLOGY, COMMERCIAL AND INDUSTRY OVERVIEW

  18. Slide 18: Spokes Use Scalable, Standard Equipment

    Spokes Use Scalable, Standard Equipment Patented Apparatus / System Lithium-Ion Batteries – all chemistries, Hygiene form factors in a single stream, at their state of charge (SoC) as-is Ventilation Screen Shredded Plastics Plastics: Plastics to fuel or reuse Neutralizing Screen Copper / Aluminum So

  19. Slide 19: Hubs Use All Proven Equipment

    Hubs Use All Proven Equipment Patented Process; 12 Formalized Trade Secrets Reaction Tank / Agitator Filter Press Black Mass Solvent Extraction Mixer / Settler Crystallization Graphite Copper Gypsum Manganese Cobalt Nickel Sodium Lithium Sulfide Carbonate Sulphate Sulphate Sulphate Carbonate 19

  20. 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  Li-Cycle reproduces battery grade and high purity materials

  21. 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 North America 3 Spokes cementing first mover advantage 1 Hub  Centralized Hubs maximize e

  22. Slide 22: Government Mandates Accelerating Recycling Growth

    Government Mandates Accelerating Recycling Growth Heightened Battery Regulation Infrastructure Spending USA: California USA: Federal Requires recovery as close to 100% Biden’s administration will make a $2 trillion as possible starting in 2022 investment in infrastructure and the clean energy econom

  23. 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 The NYS investment its U.S. operations at complements “Finger Lakes Eastman Business Park, Forward” – the region’s committing to creating comprehensive strategy to over 100 new jobs revitalize communities and g

  24. Slide 24: Truly Sustainable Recycling, Localized Source of Critical Materials

    Truly Sustainable Recycling, Localized Source of Critical Materials Recovery for All Forms of Lithium-Ion Batteries Patent Proven Commercial and Protection Technology Intangibles  100% Li-Cycle owned  Utilizes standard equipment  Seasoned management team  18 total patents and patent  Readily sc

  25. Slide 25: Financial Overview

    FINANCIAL OVERVIEW

  26. Slide 26: Largest Lithium-Ion Battery Recycler in NAM: Approach to Growth

    Largest Lithium-Ion Battery Recycler in NAM Approach to Growth 1. Regional partnerships (e.g., 1 Today 2025 Joint Ventures): progressed 2 1 Hub in Late 20 Total 4 Total stage opportunities Operating Spokes Stage Development Operating Spokes Operating Hubs corresponding to 10 additional Total Capacit

  27. Slide 27: Attractive Unit Economics Ready to Scale

    Attractive Unit Economics Ready to Scale Commercial Spoke Commercial Hub 100% Highlights 100% Highlights 20% Capacity Capacity 60,000 tpa LIB 38% 5,000 tpa LIB (25,000 tpa Black Mass) Initial CAPEX Initial CAPEX ~$4mm ~$172mm 80% 62% After-Tax IRR After-Tax IRR ~67% ~60% Avg. Annual OPEX Margin Avg.

  28. Slide 28: Li-Cycle Financial Projections

    Li-Cycle Financial Projections Revenue EBITDA ($US in millions) ($US in millions) 2021E 2022E 2023E 2024E 2025E 2021E 2022E 2023E 2024E 2025E Commentary  Cumulative EBITDA, 2021E-2025E = $985mm  Cumulative CAPEX, 2021E-2025E = $947mm  Cumulative Cash Flow (EBITDA – CAPEX), 2021E-2025E = $38mm  I

  29. Slide 29: Transaction Overview

    TRANSACTION OVERVIEW

  30. Slide 30: Fully Committed, Upsized $315mm PIPE

    Fully Committed, Upsized $315mm PIPE Key Transaction Terms Pro Forma Valuation Pro Forma Valuation ($US in mm)  Fully committed, upsized $315 million PIPE Share Price $10.00  PIPE investors include Neuberger Berman Funds, Franklin Templeton and Pro Forma Shares Outstanding 167 Mubadala Capital. Al

  31. Slide 31: What is the Comp Universe For Li-Cycle?

    What is the Comp Universe For Li-Cycle? Waste Management Electrification Facilitators Disruptive Battery EVs Battery Manufacturers Lithium Producers & Recycling Providers ▲ Benefit from the continued ▲ Similar growth profiles ▲ Similar end users / ▲ Similar business model of ▲ Similar end products g

  32. Slide 32: Market Leading Growth and Margin Profile…

    Market Leading Growth and Margin Profile… CY 2021E – 2024E Revenue CAGR 293% 128% 105% 18% 7% 17% (3) (4) Electrification Disruptive Battery (2) Waste Management & Lithium Facilitators Battery EVs Manufacturers Recycling Providers Producers EBITDA Margin 48% 29% 23% 15% 16% 14% Electrification Disru

  33. Slide 33: …At Attractive Valuation Levels

    …At Attractive Valuation Levels Firm Value / EBITDA Median: 21.4x 35.9x 22.3x 21.4x 16.1x 10.1x 12.1x (1) Electrification Disruptive Battery Waste Management & Lithium Facilitators Battery EVs Manufacturers Recycling Providers Producers 2023E 2023E 2023E 2021E 2021E 2021E Firm Value / EBITDA Median:

  34. Slide 34: Discounted Future Value – ADJ. EBITDA

    Discounted Future Value – ADJ. EBITDA ($US in billions) Future Discounted $7.4bn $4.3bn $6.8bn ~73% discount to midpoint $3.9bn $1.1bn 20.0x – 22.0x Implied Discounted Firm Value (2) Post Money Enterprise FV / 2024E EBITDA (1) (Discounted 3 Periods @20.0%) Value Source: Company filings and presentat

  35. Slide 35: Appendix

    APPENDIX

  36. Slide 36: Public Company-Ready Leadership Team and Board

    Public Company-Ready Leadership Team and Board Leadership Team Board of Directors Ajay Kochhar Co-Founder, President & CEO, Ajay Kochhar Executive Director Co-Founder, President & CEO, Executive Director Tim Johnston Co-Founder, Executive Chairman Tim Johnston Co-Founder, Executive Chairman Kunal Ph

  37. Slide 37: Summary Financial Table

    Summary Financial Table ($US in mm) 2021E 2022E 2023E 2024E 2025E Revenue $12 $75 $264 $700 $958 Growth (%) 1,175.4% 550.8% 251.6% 165.3% 36.9% OPEX $15 $63 $138 $345 $403 % 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 (%) N

  38. 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 20,946 20,946 90,000 20,946 19,000 81,869 17,000 20,000 19,198 18,214 80,000 17,000 18,

  39. Slide 39: Detailed P&L

    Detailed P&L ($US) 2020A (1) 2019A Revenue Product Sales $653,242 -- Recycling Services 250,426 $49,338 Total Revenue $903,668 $49,338 Cost Of Goods Sold 665,779 5,926 Gross Profit $237,889 $43,412 0 0 Expenses Professional Fees $3,117,441 $560,019 Personnel 2,977,909 622,689 Research & Development

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