Agilyx — Interim / Quarterly Report 2024

Aug 28, 2024

H1 2024 Business Update 28 August 2024

Enabling the recycling of challenging post-use plastics into high-value, virgin-equivalent products.

First Mover in a Dynamic Market:

A 60% supply-demand imbalance for plastic waste feedstock and rapid growth of advanced recycling capacity creates room for 300+ Cyclyx facilities

Strategic Partner Validation:

Second project for investment-grade petrochemical partners confirms execution capability to produce advanced custom plastic feedstock

Clear Path to Cash Flow Generation:

Funded projects generate \$18.5 million annually net to Agilyx, allowing for a self funding growth model for future projects and AGLX reaching cash positive in 2026/27

Unique Investment

Opportunity:

A publicly traded, technology-agnostic channel for exposure to the rapidly growing advanced recycling sector

H1 Summary

secured offtake.

Lack of custom plastic feedstock is key industry bottleneck

Announced chemical recycling capacity exceeds circular feedstock by 60% or more

Companies in the chemical recycling value chain

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Surging demand for feedstock creates potential for hundreds of CCCs

Agilyx is positioned to meet demand for advanced feedstock and CCC's

CCC demand towards 2040

Chemical Recycling expected to grow to 33mtpa by 2030 equivalent to 314 CCCs in mid scenario³

Investments in chemical recycling estimated to be >USD 40bn in 2030 and more than doubled >USD 90bn in 2040³

High demand for feedstock from existing customers Extensive development need to meet

Selected client relationships

High opportunity to deliver CCCs to both existing and new customers

1) Assume CCC capacity of 178ktpa, with output of 105kpta for chemical recycling, in line with company indications; 2) Large petrochemical companies include: Dow, LyondellBasell, Borealis, Indorama Ventures, Braskem, SCG, TotalEnergies, SABIC, Lotte Chemical, INEOS, ExxonMobil, Advanced Drainage Systems, Chevron Phillips Chemical; 3) McKinsey | Advanced recycling: Opportunities for growth (May 2022) Source: BNEF, McKinsey, and companies (underlying data), DNB Markets equity research (further calculations)

CCC2 close to advancing to FID with long-term offtake from ExxonMobil and LyondellBasell

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CCC2 Economics and flow of funds Cyclyx Circularity Center 2 - Road to FID

#1: Commitments from ExxonMobil and LyondellBasell

ExxonMobil and LyondellBasell have a strong underlying business rationale for investing in Cyclyx and will provide their pro-rata funding for the second Circularity Center

#2: Offtake structure negotiated

Agreement with ExxonMobil and LyondellBasell on a Cost+ model, providing Agilyx a 15% return on capital invested²

#3: Site selection

Cyclyx Circularity Center 2 is nearing site selection and expects the location to be the region of the US Gulf Coast

#4: Completion of site-specific engineering

Conduct engineering specific for the chosen location

#5: Cyclyx Board approval of FID

Final investment decision to be approved by the board and commit funding from Agilyx, ExxonMobil and LyondellBasell

1) The royalty fee is per pound, so at the expected throughput its USD 2.5m; 2) 15% IRR based on \$14.0m of proceeds per year on \$71.5m investment with \$10.5m directly at Agilyx and \$3.5m (50% x \$7.0M) at Cyclyx on 20 years life of plant. Initial offtake agreement 10 years plus 5-year renewal; 3) Construction cost could be revised down to \$131m by FID as rail infrastructure might not be necessary, in which case annual profit would be reduced from \$10.5m to \$9.2m p.a.

Strong cash flows with multiple CCCs in operation at CCC2 economics

USD in millions	1 CCC	2 CCC	3 CCC	4 CCC	5 CCC
Income from CCCs direct to Agilyx
CCC2		10.5	10.5	10.5	10.5
CCC3			10.5	10.5	10.5
CCC4				10.5	10.5
CCC5					10.5
CCCs income to Agilyx		10.5	21.0	31.5	42.0
Royalties	2.5	5	7.5	10	12.5
Total income direct to Agilyx	2.5	15.5	28.5	41.5	54.5
Agilyx 50% share of Cyclyx EBITDA	-1.5	2.9	7.4	11.8	16.3
Agilyx direct and indirect profit from CCCs	1.0	18.4	35.9	53.3	70.8

• Cyclyx sells output at a price computed based on its operating costs + a set margin

• With CCC1 and CCC2 running at steady state, Agilyx will generate cash flows of \$18.4m p.a. from offtake, royalties, and Cyclyx profits
• Subsequent CCCs will be funded by capacity reservations agreement, debt and operational cash flows

Cash flow from first two CCCs will fund, together with debt, roll-out of subsequent CCCs

Cyclyx has a unique solution to produce advanced custom plastic feedstock for use in mechanical and advanced recycling

Cyclyx Circularity Centers will solve a key bottleneck for the industry

CCCs are unique in design, focus, scale and products

Designed to handle all plastics

• All plastics accepted: type 1-7 and non-classified plastics
• Films, foams and rigids
• Applicable across the whole mixed waste plastic market

Significant scale to bridge waste and chemical interests

• Some of the world's largest plastics processing assets
• 40kta to 100kta of outbound chemical feedstocks
• Increased volumes of mechanical feedstocks

Focused on chemical recycling feedstocks

• Capable of meeting chemical and physical specifications
• Leverages chemical database to build custom recipes
• Mechanical recycling separated
• Options for residual streams of plastics

ISCC+ Certified Products

• Ability to certify ISCC+ compliance from source through to prepared feedstock delivery
• Products meet the chemical and physical specifications of downstream processes

Intellectual Property through chemical database and recipe making - Leveraging existing sorting technology in a novel way

Cyclyx Sourcing Strategy: Cyclyx addresses the importance of sourcing

10to90® initiative

The 10to90® initiative mission is to increase the recycling rate of post-use plastics from 10% to 90% by several initiatives

Community, commercial and retail-based takebacks programs

Takeback programs demonstrated in Houston: Landfill deferral programs expands

City of Houston successfully demonstrates unique, all plastic landfill deferral program

• 10 commercial industrial takeback programs
• Residential drop off increased landfill deferred plastic 2x-4x
• Increased from 1 to 8 drop off locations
• Active in 22 schools with discussion to expand to all 274 schools

Key success factor to meet the demand for feedstock is to source enough plastic through collection channels

Cyclyx has several collection channel initiatives to secure enough sourcing of plastic for their feedstock at a competitive price

Conversion business focused on polystyrene recycling technology

STYRENE

• Achieved product spec within first day of operations in Q2 2024
• AGLX providing ongoing technical support through beginning of Q4 TOYO

• Front-End Engineering Design, in cooperation with Technip has been completed for US Project. Allows for construction at site and can be substantially repurposed at other locations

BUSINESS MODEL

• Identifying a strategic partner(s) to capture market opportunity leveraging Agilyx's Tech:
  • o Proven closed-loop circular styrene monomer solution
  • o Circled ~220 kta of offtake demand
  • o Access to Feedstock through Cyclyx

\$40M equity raise and bond guarantee secure funding for CCC2

• USD 40m equity private placement to support Agilyx and Cyclyx in roll out of CCC2 together with ExxonMobil and LyondellBasell
• Agilyx will also raise USD 40m in debt, for which DNB Markets has underwritten a bond guarantee to Cyclyx, which will be placed in the market post summer 2024.
• Saffron Hill Ventures entered into a USD 7m unsecured loan available to draw 12 months from signature for potential contingency beyond the amounts raised in equity and bond offerings.
• The construction funding of CCC2 will be on an equity first basis, and the equity sources will cover the construction funding without any delays until the bond is placed

Agilyx capital commitment for CCC2 to be fully financed as part of equity raise Transaction highlights

Uses and Sources	Units	Amount
Uses
Construction cost of CCC2	USDm	71.5
Working capital (Cyclyx)	USDm	6.0
Working capital (Agilyx)	USDm	5.5
Transaction fees	USDm	4.0
Total Uses	USDm	87.0
Sources
Equity private placement	USDm	40.0
Debt (underwritten bond guarantee)	USDm	40.0
Saffron Hill Ventures Credit Facility	USDm	7.0
Total Sources	USDm	87.0

Together with cash on hand and operating cash flow, the capital raise caters for a fully funded business plan for Agilyx on two Circularity Centers

Financial metrics

	HY 2023 Pro-Forma
USD
Revenue	4,635,633	448,476
Operating Expenses	(7,824,052)	(6,028,826)
Comprehensive profit / (loss)	(11,034,700)	(11,473,961)
Diluted earnings / (loss) per share	(0.13)	(0.12)

\$5.0m

Revenue at Cyclyx level driven primarily primarily from post-use plastic feedstock sales

Net of transaction costs and onetime restructuring costs, operating costs expected to trend to \$1.6 million per quarter down from \$3.6 million in 2023

Reduction in FTE since Jan-2023. Latest reduction plan reflected in H2 2024 financials. Despite cost efficiencies, Agilyx continues to fully support Cyclyx shared services, while retaining critical IP and engineering competency

\$1.7m

Cash position as of June 30, 2024. Since then, cash position improved with \$40 million equity raise on August 21