Loop Industries, Inc. · NASDAQ:LOOP
Loop Industries — Investor Presentation (October 2022)
31 slides from Loop Industries's investor presentation, Oct 12, 2022
Slide 1: Accelerating the Circular Plastics Economy
Investor presentation ACCELERATING THE CIRCULAR PLASTICS ECONOMY October 2022 : LOOP
Slide 2: Disclaimer
DISCLAIMER This presentation of Loop Industries, Inc., a Nevada corporation (“Loop”, the “Company,” “we,” or “our”), is Important assumptions relating to the forward-looking statements contained in this presentation include dated October 12, 2022 and contains “forward-looking information” and “forwa
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?
Our technology breaks down waste WHAT DOES LOOP DO? PET into its base chemical building blocks, or monomers: dimethyl At Loop, we’ve developed a patented technology to supply terephthalate (DMT) and consumer packaged goods (CPG) and apparel companies monoethylene glycol (MEG). around the world with
Slide 6: Technology Highlights
TECHNOLOGY HIGHLIGHTS Virgin-quality PET resin and polyester fiber from 100% recycled content Infinitely recyclable packaging with no degradation in quality Low heat, no added pressure depolymerization for lower GHG emissions, lower costs and higher yields Upcycles low-value feedstocks currently des
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: 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 10: 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 11: Brand Commitments - Recycled Packaging
BRAND COMMITMENTS - RECYCLED PACKAGING 2025 2030 Danone: Evian brand to have 100% recycled PET bottles Pepsi In the US, PepsiCo plans to convert all Pepsi-branded by 2025. products to 100% rPET by 2030. L’OCCITANE aims for 100% of its bottles to be made of 100% recycled plastic by 2025 l’Oréal aims
Slide 12: Brand Commitments – Recycled Polyester
BRAND COMMITMENTS – RECYCLED POLYESTER According to Textile Exchange, 85 brands and suppliers committed to increase recycled polyester content from an average of 14% to 45% by 2025. Many fashion, apparel and lifestyle brands are conscious of recycled polyester in their products: Source: https://text
Slide 13: Loop Is Decarbonizing Plastics
LOOP IS DECARBONIZING PLASTICS ENVIRONMENTAL DATA LOWER GHG EMISSIONS A 70,000 tonne Loop facility could save 60% Less 60% Less Primary 143,500 – 255,500 tonnes / year Global Warming Potential (GHG) Energy Demand (Non-Renewable) of CO2 compared to virgin PET1 1. Source: Life Cycle Assessment of Loop
Slide 14: Loop x Evian
LOOP X EVIAN September 2021: evian unveiled a new bottle made entirely from Loop™ 100% recycled PET resin Produced from monomers made at Loop’s Terrebonne production facility Evian bottles made from Loop PET will be sold in South Korea in 2022 and subsequently in other geographical markets. Reflects
Slide 15: Feedstock Sourcing
FEEDSTOCK SOURCING • Loop’s technology allows for new PET waste streams to be recycled • Feedstock readily available in large quantities • >75 qualified potential suppliers for our planned Quebec facility • 1,800+ feedstock samples tested to date Loop’s technology can recycle mixed colored flakes, f
Slide 16: Infinite Loop™
Infinite Loop™ 16
Slide 17: 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 18: Proven Polymerization Technology
Polymerization Depolymerization PROVEN POLYMERIZATION 45-year collaboration building TECHNOLOGY successful projects 50% of the Infinite Loop™ facility uses Modular design and technology licensed from INVISTA construction • 175 INVISTA and Chemtex plants in operation by • Equivalent to 22 million ton
Slide 19: Infinite Loop Québec
INFINITE LOOP™ QUÉBEC Highlights • Site preparation work complete • Ordered long-lead equipment • Production capacity up to 70,000 MT of 100% recycled, virgin-quality Loop™ PET per annum • Targeting multi year supply agreements with CPG and apparel brand companies • Anchor, multi-year, commercial of
Slide 20: Infinite Loop Asia
INFINITE LOOP™ ASIA Highlights Strategic Partnership with • SKGC acquired a 10% equity stake in Loop Industries in June of 2021 First Infinite Loop™ facility • Loop and SKGC to form a JV to commercialize Loop’s Ulsan, South Korea technology across Asia • Loop to receive a recurring licensing fee as
Slide 21: Infinite Loop France
INFINITE LOOP™ FRANCE In partnership with Highlights • Equal partners with Suez and SKGC to form JV • Partnership combines Loop’s technology with SUEZ’s resource management expertise and SKGC’s petrochemical manufacturing experience • Production capacity of 70,000 MT of 100% recycled, virgin- qualit
Slide 22: Retrofit Partnership with Indorama
RETROFIT PARTNERSHIP WITH Highlights • 50/50 Joint Venture Agreement with Indorama Ventures United States • Retrofit - integrating Loop’s depolymerization technology with Indorama’s existing PET plant in Spartanburg, South Carolina • Estimated capacity: 40,000 tonnes/ year • JV focus on North Americ
Slide 23: Terrebonne Production Facility
TERREBONNE PRODUCTION FACILITY Québec, Canada Equipment used in planned Technology built from the commercial facilities is ground up over the past 7 operating continuously 5 days years a week Producing first revenues from > $100M invested to develop the virgin-quality, 100% recycled technology DMT a
Slide 24: Targeted Facility Economics
TARGETED FACILITY ECONOMICS • Targeting 5–10 year supply agreements with CPG brands Illustrative Infinite Loop™ Economics1 • Pricing linked to regional bale index1,5,6 Tonnage2 70,000 MT output target • Fixed selling price premium over bale index partially hedges $375 million – $425 million Estimate
Slide 25: Long-Term Growth Goals
LONG-TERM GROWTH GOALS Our goal is to construct 10 greenfield Goal is to complement attractive 2030 production goal of 1M Infinite Loop™ facilities and 2 retrofits plant economics with growing tonnes annually2 by 2030 royalty revenues • 7 JV facilities1 and 5 wholly-owned facilities • Royalty growth
Slide 26: Liquidity and Ownership
LIQUIDITY AND OWNERSHIP LOOP AT A GLANCE Loop Industries, Inc. All values in thousands unless otherwise stated NASDAQ: LOOP As at August 31, 2022 47.4M 19.3M Cash & Cash Equivalents $23,000 Cash + Proceeds from Excess Land Sale $31,695 Shares Float Debt outstanding Secured Operating Facility ($2.7 m
Slide 27: Appendix
APPENDIX
Slide 28: Leadership Team
LEADERSHIP TEAM Daniel Solomita Drew Hickey Stephen Champagne Kevin C. O’Dowd Founder, Chairman Chief Financial Officer Chief Technology Officer Vice President, & Chief Executive Officer Communications and Investor Relations Founded Loop and is the chief Has had a successful career in Possesses a we
Slide 29: 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 30: Our Journey
5 Infinite Loop™ Québec OUR JOURNEY Bécancour site acquisition and ground breaking 3 Health Canada Obtained No Objection Letter from Health Canada stating PET 3 SUEZ produced by Loop’s process is Partnership Agreement to develop suitable for food contact articles. first European Infinite Loop™ facil
Slide 31: 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] 31
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