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Bergen Carbon Solutions AS

Investor Presentation Feb 8, 2024

3554_rns_2024-02-08_e5a52039-b828-4fcd-92c0-337afd1b11e9.pdf

Investor Presentation

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Q4 2023

Odd Strømsnes, CEO 8th February 2024

Agenda

    1. Q4'23 highlights
    1. BCS in brief
    1. CNT Market
    1. Technology & business development
    1. Summary and outlook
    1. Q&A

Improving processes, reducing production cost

Q4 2023 highlights

Key events in Q4 2023

  • Activities for verifying our technology and products towards customers are progressing according to plan
  • Progress made to further reduce unit cost of BCS products
  • Investing in a Battey Lab at HQ in Bergen to speed up battery material verification process
  • Increased interest and favorable global market dynamics resulting in increase of CNT testing
  • Cash burn as expected with NOK NOK 5.6 million in adjusted net loss for the quarter
  • Fully funded to deliver on key priorities, cash balance of NOK 233 million

Financial highlights Q4 2023

NOK thousand Q4 2023 Q4 2022 FY 2023 FY 2022
Total revenue and other income 0 1 144 296 1 486
Total operating expenses 18 034 18 783 75 104 57 441
Operating profit (loss) (18 034) (17 639) (74 808) (55 955)
Net profit (loss) for the period before tax (8 557) (14 984) (66 049) (54 001)
Net change in cash and cash equivalents (6 016) (10 733) (59 945) 185 694
Cash and cash equivalents, end of period 233 044 292 989 233 044 292 989
Equity 246 265 308 730 246 265 308 730
Total assets 273 118 336 670 273 118 336 670

Adjusted net loss Q4: NOK 5.6 million: NOK 2.1 million in non-cash cost and NOK 0.9 million in non-recurring cost. 5

2023; a year of strategic progress

Continued focus on key strategic initiatives:

  • Carbon product quality improvements
  • Process optimization
  • Cost reduction initiatives
  • Technology qualification
  • Strengthened organization in battery design and electrolysis expertise
  • Extension of MOU with TKG Huchems, increased CNT product testing activities
  • Ongoing dialogues with other major global industrial players in Asia and Europe for CNT qualifications
  • Attracting serious attention with a pureplay CCU technology in a CCS-dominated market
  • Several new policy initiatives with potential positive impact

BCS in brief

The green supermaterial of the future

Transforming Carbon Emissions into Innovation

  • Founded: 2016
  • IPO: 2021
  • Fully funded strategy with strong cash balance
  • Pure play CCU (carbon capture and utilization) material company
  • Current focus: Enabling clean carbon for green manufacturing of batteries

Pioneering Sustainable Transformation:

  • BCS transforms harmful greenhouse gases into clean, valuable carbon products
  • We're pioneers in carbon capture and utilization (CCU) technology, leading the way in driving a sustainable future

Transforming Harmful to Valuable:

  • Our process creates various carbon structures like graphite, hard carbon, and carbon nanotubes, all with a CO₂ positive footprint
  • Enabling production of high-value carbon products inhouse, close to the end-user

Meeting Tomorrow's Demands Today:

  • Addressing the surge in battery anode material demand (predicted 300% increase by 20251)
  • BCS is leading the shift from fossil to green carbon production, reducing emissions and contributing to a cleaner, greener industry landscape at home

Our technology adds value both upstream and downstream

With our technology, we can both capture CO2 directly from flue gas or run on captured CO2

Our innovative process turn CO2 into carbon products through electrolysis

From CO2 we make high quality carbon products, tailormade for the customer, ranging from small nano-particles to graphitic macrostructured carbons

Market opportunities

Market for Carbon Nano Tubes today

Multi-walled Carbon Nano Tube (MWCNT) market Batteries need MWCNT

Cathode

MWCNT is used as conductive agent to increase conductivity in the cathode material

Anode

MWCNT as a potential reinforcement and conductive agent for next generation anodes (durability/strength)

MWCNT is relevant on both sides of the battery

MWCNT avoid the contact loss between the particles providing a capacity retention up to 75% after 250 cycles at 2C.

MWCNT acts as a conductive agent, properly mixed, makes a conductive network that increases the conductivity between the particles:

Multi-walled Carbon Nano Tube (MWCNT) market Global MWCNT market is estimated at 3.3 bn. USD in 2021

  • 90% of known name-plate production capacity is located in Asia, based on fossil production methods
  • China is by far the single largest largest producer of CNT
  • The global market for CNT is expected to increase significantly towards 2030, driven by electrification and growing battery demand

Multi-walled Carbon Nano Tube (MWCNT) production Examples of companies (2021 production, tons)

Multi-walled Carbon Nano Tube (MWCNT) market Customers: Battery cell producers are concentrated in Asia

  • The 10 largest battery cell producers have >90% of the market and are all located in Asia, with China as the single largest producer
  • The largest players in the industry control the entire value chain of battery production
  • 40-50 battery gigafactories are planned in Europe towards 2030
  • To achieve the ambitions for the green transition, Europe needs to solve issues around raw materials and supply chain for battery production

Battery cell producers

10 largest battery cell producers (2022)

Multi-walled Carbon Nano Tube (MWCNT) market Traditional fossil based CNT production is energy intensive with very high CO2 emissions

Converting to green carbon will have significant positive environmental impact

*ACS Sustainable Chem. Eng. 2020, 8, 1730−1740

Green CNT have a huge potential

The green transition, electrification and expected battery growth results in global CNT demand is predicted to reach 70.000 tonnes in 2030

To achieve reduced emissions from electrification, we need to reduce emissions from supply chain and raw materials for battery production

By converting from fossil to green carbon in batteries, CO2 emissions would be significantly reduced

Technology & business development

The cleanest way to source carbon

Focus on process improvement

Enhancing Quality and Efficiency

  • Continue to see significant advancements on product quality
  • Implementing process enhancements encompassing repeatability, quality improvement, and cost optimization
  • New equipment in operation accelerating product development
  • Goal is production of unique, customertailored products while maintaining consistent high quality over time

New test verification reactor in operation

Where we're going

Through our cost reduction initiatives, we expect the overall cost of converting CO2 to solid carbon to be significantly reduced

Validating our MWCNT with potential customers

Complex and time-consuming process for product verification of our Multi-Walled Carbon Nano Tubes (MWCNT)

    1. Identifying and establishing contact with potential customer
    1. Send test-samples of our product to customer
    1. Customer test the product in their process and give feedback
    1. We receive feedback, implement changes and send new test samples

This back-and-forth process can go several rounds and speed of process is mostly outside our control

New battery lab

  • A new Battery Lab under construction at our HQ in Bergen
  • Battery Lab will have equipment for testing our product in different battery chemistries
  • Lab will increase speed of product development towards the battery industry

Summary & outlook

Operational priorities

Summary Q4

  • Continued progress on verifying our technology and products towards customers
  • Increased interest and favorable global market dynamics resulting in increase of CNT testing
  • New battery lab under construction at our HQ in Bergen
  • Burn rate under control and well financed
  • Our focus and strategy remains on process optimization and product customization

Q&A

The green supermaterial of the future

Disclaimer

This Company Presentation (the "Presentation") has been produced by Bergen Carbon Solutions AS (the "Company" or "BCS"). The Presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

All of the information herein has been prepared by the Company solely for use in this presentation. The information contained herein does not purport to contain all information concerning the Company. No party has made any kind of independent verification of any of the information set forth herein if not specifically expressed in the Presentation, including any statements with respect to projections or prospects of the business or the assumptions on which such statements are based. The Company does not make any representations or warranty, express or implied, as to the fairness, accuracy, reliability, completeness or correctness of this presentation or of the information contained herein and shall have no liability for the information contained in, or any omissions from, this presentation. The information contained in this presentation should be considered in the context of the circumstances prevailing at that time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. Neither the Company and subsidiaries nor any of its directors, officers, employees, advisors or representatives (collectively the "Representatives") shall have any liability whatsoever arising directly or indirectly from the use of this Presentation.

Included in this presentation are various "forward-looking statements", including statements regarding the intent, opinion, belief or current expectations of the Company or its management. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that

may cause the actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forwardlooking statements, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document.

An investment in the Company involves risks, and several factors could cause the actual results, performance or achievements of the Company as described herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation. Should one or more of underlying risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Presentation.

Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

No information contained herein constitutes, or shall be relied upon as constituting, any advice relating to the future performance of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements included in this Presentation.

This Presentation is governed by Norwegian law and any disputes related to it are subject to the ordinary courts of Norway.

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