Loop Industries, Inc. · NASDAQ:LOOP
Loop Industries — Investor Presentation (May 2024)
40 slides from Loop Industries's investor presentation, May 1, 2024
Slide 1: Accelerating the Circular Plastics Economy
Investor presentation ACCELERATING THE CIRCULAR PLASTICS ECONOMY May 2024 : LOOP
Slide 2: Disclaimer
DISCLAIMER This presentation of Loop Industries, Inc., a Nevada corporation (“Loop”, the “Company,” “we,” or “our”), is dated May 1, 2024 and contains “forward-looking information” and “forward-looking statements” within the Important assumptions relating to the forward-looking statements contained
Slide 3: 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 4: What Does Loop Do?
WHAT DOES LOOP DO? The Infinite Loop technology not only supplies consumer packaged goods (CPG) companies around the world with virgin-quality PET plastic and polyester fiber made from 100% recycled content but also extends Loop’s market reach by selling key chemical monomers—dimethyl terephthalate
Slide 5: 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 6: How It Works
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 7: 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 • Consumer brands to include at least 30% recycled plastic in packaging by 2025 • Zero plastic waste 2030 • 50% recycled co
Slide 8: Loop Is Decarbonizing Plastics
LOOP IS DECARBONIZING PLASTICS Lower GHG Emissions Environmental Data A 70,000 tonne Loop facility could save Up to 79% less Up to 67% less Up to 360,000 tonnes / year Global Warming Potential Primary Energy Demand of CO2 compared to virgin PET1 (GHG) (Non-Renewable) 1 Source: Life Cycle Assessment
Slide 9: Feedstock Sourcing
FEEDSTOCK SOURCING • Loop’s technology allows for new PET waste streams to be recycled • Feedstock readily available in large quantities • 2,100+ feedstock samples tested to date Loop’s technology utilizes difficult to recycle PET waste including mixed colored flakes, fines, opaque PET, densified fi
Slide 10: Terrebonne Production Facility
TERREBONNE PRODUCTION FACILITY Québec, Canada Technology built from the ground up over the past 8 years > $150M 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 11: Loop PET Brand Activations
LOOP PET BRAND ACTIVATIONS Evian Labeled Bottle Evian Label-less Bottle L’Occitane Shower Oil Garnier Cleansing Water 11
Slide 12: Infinite Loop Facilities
_ INFINITE LOoP™ FACILITIES.
Slide 13: 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 depol
Slide 14: 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 15: 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 polyeste
Slide 16: 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 solu
Slide 17: Targeted PET Facility Economics
TARGETED PET 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 Estim
Slide 18: Long-Term Growth Goals
LONG-TERM GROWTH GOALS Our goal is to construct 10 Infinite Goal is to complement attractive plant Production goal of 1M tonnes Loop facilities in the next 10 years economics with growing royalty revenues annually in the next 10 years • First large-scale commercial • Royalty growth linked to additio
Slide 19: Loop Specialty Chemicals & Polymers - Infinite Loop India
Loop Specialty Chemicals & Polymers Infinite Loop India 19
Slide 20: Executive Summary
Executive Summary Economics • Very attractive economic returns without the need for sustainability linked premium pricing. Compelling opportunity to • Approximately 40% reduction of Capex as no deploy Loop specialty offering polymerization equipment needed. and deliver favorable economic • Targeting
Slide 21: Key Business Pillars - Strategic Portfolio Expansion
Key Business Pillars - Strategic Portfolio Expansion Unlock the versatility of the Infinite Loop technology to drive growth across divisions. Complementary product division fueled by the existing Infinite Loop technology Diversification of product PET Polyester T2T Specialty portfolio to unlock incr
Slide 22: Loop Specialty Chemicals
Loop Specialty Chemicals Leverage Loop’s key expertise and proprietary Infinite Loop technology to manufacture 100% recycled virgin-quality DMT and MEG monomers. Supply chemical companies with a drop in supplement and circular alternative that aligns their operations in reaching their sustainability
Slide 23: DMT and MEG Specialty Chemicals Market
DMT and MEG Specialty Chemicals Market Global market size Expected to grow at a 2033 Projected market value $27.8B 3.67% CAGR $39.2B * * * (2023-2033) DMT Market & Customer Insight • DMT market currently controlled by two companies – Eastman and SK Chemicals o Launch of Loop DMT to shift the market
Slide 24: Key Customer Markets
Key Customer Markets Loop Specialty Chemicals (DMT and MEG) target markets Electronics Automotive Textile Cosmetics Packaging Loop DMT and MEG enable chemical companies to: Increase their sustainability Launch Contribute to supply product portfolio new products chain decarbonization 2 4
Slide 25: India Specialty Chemicals Landscape
India Specialty Chemicals Landscape An attractive emerging market opportunity ~2x Asia is the main driver of specialty chemicals India’s specialty chemicals demand for the next several decades growth rate compared to • Indian specialty chemicals sector expected the global market to reach over US$60
Slide 26: India Specialty Chemicals Landscape
India Specialty Chemicals Landscape An attractive emerging market opportunity Significant cost advantage over other markets • Labor and power costs at a fraction of the global average India labor costs are • Emerging as a preferred manufacturing hub and one of the 80% lower than China fastest-growin
Slide 27: Manufacturing in India
Manufacturing in India Maximize return on capital Non-reliant on green premiums, carbon/plastic credits High growth Low-cost sourcing of raw materials and potential manufacturing costs leads to profitability Massive source of waste in India ~40% reduction of Capex as no facilitates feedstock sourcin
Slide 28: Infinite Loop India
INFINITE LOOP INDIA India Infinite Loop facility Joint venture with Ester Industries Strategic partnership and complementary skill set Illustrative Infinite Loop Economics1 • 50/50 Joint Venture with Ester Industries 70,000 MT of DMT • Combines Ester’s 30 years of specialty polymer expertise with th
Slide 29: Ester Industries at a Glance
Ester Industries At A Glance Ester Industries is one of India’s leading manufacturers of Polyester Films and Specialty Polymers. 1985 GURGAON, INDIA Year of Incorporation Corporate Headquarters ~75 COUNTRIES 550+ People 3 Facilities Global Footprint Khatima & Sitarganj (Uttarakhand) & Hyderabad (Tel
Slide 30: 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 31: Liquidity and Ownership
LIQUIDITY AND OWNERSHIP LOOP AT A GLANCE Loop Industries, Inc. All values in thousands unless otherwise stated NASDAQ: LOOP As at November 30, 2023 47.5M 19.3M Cash & Cash Equivalents $9,366 Debt Shares Float Secured Operating Facility ($2.6 million undrawn and available) - outstanding Investissemen
Slide 32: Appendix
APPENDIX
Slide 33: 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 33 polyester fiber
Slide 34: 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 35: 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 36: Infinite Loop Quebec
INFINITE LOOP QUEBEC Quebec Infinite Loop Quebec Highlights • Production capacity up to 70,000 MT of 100% • Critical infrastructure to Canada’s 2030 Zero Plastic recycled, virgin-quality Loop PET per annum Waste Action Plan • Targeting multi year supply agreements with • All packaging sold in Canada
Slide 37: 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 38: 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 39: Our Journey
OUR JOURNEY 5 Pharmaceutical Packaging Loop branded PET resin meets requirements and standards outlined by the United States and European Pharmacopeia 3 Health Canada 3 Garnier X Loop Bottle Obtained No Objection Letter from Health Launch of Garnier’s Micellar Cleansing Canada stating PET produced b
Slide 40: 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] 40