Circa Group AS

Investor Presentation • Jun 16, 2021

AGM 2021 CEO presentation 16th June 2021

Delivering on the promise of biochemicals at scale

Agenda

• 1. Overview
• 1. Introduction to Circa
• 1. Financial update
• 1. Outlook

Highlights (and progress)

• Successful listing on Euronext Growth (2 March) and capital raise of EUR +50m, multiple times oversubscribed
• Circa is fully financed for the ReSolute project to construct a 1,000 tonnes LGO1 / CyreneTM plant in France
• ReSolute project in last two months of basic engineering and continues as planned despite COVID-19 restrictions
• Final stages of trials with key machinery and equipment suppliers, currently no unexpected developments
• Initiated process to explore further valorisation opportunities for process by-products (biocoal)
• Continued strong regional and EU support for the ReSolute project and ongoing positive dialogues
• Advanced discussions to convert offtake LOIs to sales agreements for ReSolute production output
• Technip Energies chosen to provide consultancy for next engineering design phase
• Currently in early-stage discussions with potential partners / sites for future plants
• Strengthened board with two experienced directors, Trond Stangeby and Greg Court
• Appointments of GM New Product Development in the UK, and GM Sustainability & Marketing
• Experienced Norway-based CFO to join Circa September 2021
• Initial Cyrene REACH Annex IX dossier completed and submitted to European Chemicals Agency

New appointments strengthen Corporate and Operations capabilities

Industry trends remain strongly positive for Circa

• The EUR +3 trillion chemicals industry landscape is changing across all global markets, driven by safety regulations, brand owners & end users demands for more sustainable products, and the Paris Agreement
• Over the next nine years, major brand owners have committed to specific corporate goals relating to reduction of carbon footprints, sustainable feedstocks, and minimising water use
• A number of major suppliers are struggling to provide customers with suitable replacements and new material inputs. They are locked in with legacy fossil-based plants, and little internal expertise in biobased manufacturing
• The industry landscape will be very different in 2030, providing Circa with major growth opportunities

Sustainability

Circa converts waste biomass to high-value biochemicals

Biocoal is a valuable by-product from the production process and will be used for industry and heating, offtake for 100% of biocoal volumes

Paints Coatings Flavours

Growth strategy based on two clear drivers

CyreneTM is Circa's first biochemical with proven commercial potential

• CyreneTM is a low-toxicity and sustainable solvent that replaces and outperforms toxic and fossil solvents (NMP, DMF, DCM, DMSO)
• NMP and DMF are categorised as Substances of Very High Concern by the European Chemicals Agency (ECHA)
• Use of fossil solvents highly restricted and bans to be fully enacted once suitable alternatives (like Cyrene™) become available at scale
• Cyrene™ is widely acknowledged as the only viable low-toxicity and sustainable alternative1, and offers dramatic reduction in waste creation both during production and at end-of-life
• Cyrene™ is sold through chemical distribution giant Merck KGaA, which has a strong focus on green chemistry
• More than 1,000 research and customer test have been executed for Cyrene™ across multiple applications

ReSolute project: progressing on schedule

Circa continues to progress a clear growth strategy

High margin opportunities relating to other LGO-derivatives being commercialised as LGO production is scaled up

Clear scale-up plan with ReSolute project underway, and study and dialogues for further scale-up

Strong commercial foundation for LGO-derivative CyreneTM, provides commercial foundation for scale-up

Patented and sustainable process for production of LGO

Sustainability

Strong demand and

regulatory tailwinds

2020 financial statement (all figures in NOK)

Income statement		Balance sheet
NOK		NOK
Operating revenue	811,827	Cash	5,051,376
Operating costs	-2,901,047	Other assets	2,711,463
Operating result	-2,089,220	Total assets	7,762,839
Interest and financial income	126	Share capital	2,060,000
Interest and financial costs	0	Share premium fund	2,937,680
Financial result	126	Uncovered loss	-2,089,094
		Equity	2,908,586
Pre-tax profit	-2,089,094
Tax	0	Supplier debt	4,444,326
Result	-2,089,094	Other short-term debt	409,927

Total liabilities and equity	7,762,839
Equity	2,908,586

• Circa Group AS was established on 9 November 2020 to become the new and sole ultimate holding company for the Circa Group, in preparation for the listing on Euronext Growth Oslo
• The financials for 2020 mainly include initial capitalization of Circa Group AS, and costs relating to the reorganization of Circa Group AS being the new sole ultimate holding company

Q1 2021 Income statement

Comprehensive Consolidated Statement of comprehensive income 2021
	Q1 2021	Q1 2020
(EUR)
Total revenue	5400	414 937
Total operating expenses	3 242 869	699 867
Operating result	-3 237 469	$-284930$
Total finance income	79 170	$-3183$
Total finance expenses	285 987	0
Net financial income/expenses	$-206817$	$-3183$
Net profit/loss before tax	$-3444286$	$-288113$
Tax expenses	0	0
Net profit/loss	$-3444286$	$-288$ 113
Other comprehensive income:
Foreign exchange gains/(losses)	$-21511$	0
Total comprehensive profit/loss for the year	-3 465 797	$-288$ 113

• Revenue not expected before ReSolute plant is commissioned in January 2023
• Total operating expenses are €3.2m FC5 plant operations, administration costs and reorganisation costs account for €1.5m. Employee benefit expenses of €1.6m includes €1m for the short-term employee incentive program and €0.4m for the longterm incentive program.
• Financial income and expense are mainly related to foreign exchange. Circa Group has companies with AUD, GBP and NOK as functional currency.

Q1 2021 Balance Sheet

Condensed Consolidated Statement of financial position at 31 March 2021
(EUR)	31.3.21	31.3.20	31.12.20
ASSETS
Total non-current assets	264 028	4 0 7 7	55 219
Total current assets	49 380 628	243 290	6519444
Total assets	49 644 656	247 367	6 574 664
EQUITY
Issued and paid in equity	54 247 412	4 808 145	7 142 044
Other equity	-11 571 836	-10 352 948	-7 489 767
Total equity	42 675 576	$-5544803$	$-347723$
LIABILITIES
Total non-current liabilities	419 044	4 985 598	1945224
Total current liabilities	6 550 037	806 572	4 977 162
Total liabilies	6 969 081	5792170	6922386
Total equity and liabilies	49 644 657	247 367	6 574 664

Non-current assets mainly consist of capitalized expenses related to ReSolute. Expenses are capitalized and offset by grant utilization of 46.2%of total capex.

Current assets mainly comprise of cash and cash equivalents following the private placement completed in Q1

31.12.20 includes short term receivables mainly related to accrued tax grant from Tasmania

31.12.20 Cash and cash equivalent is receipt of ReSolute grant

31.3.21 includes proceeds from IPO

• Equity presented in accordance with IFRS
• Non-current liabilities : all debts and related party loans settled as part of reorganisation executed prior to listing in Q1
• Current liabilities are mainly other payables related to operational activities. The balances at 31.12.20 and 31.3.21 includes the ReSolute project grant received.

Outlook / focus

• Manage ReSolute project on time and budget
• Increase France based engineering and operations staff for ReSolute
• Engage suppliers early to mitigate Covid supply chain risks
• Finalise discussions with customers regarding sales agreements
• Continue dialogue and exploration of site opportunities for future plants
• 3 site discussions underway Sth America, Australia, Africa
• LGO-derivative development and commercialisation underway
• New personnel to support manufacturing scale-up and product development

What does zero net emissions by 2050 actually mean?

• 30 years is 1-2 investment cycles only
• Circa's target solvent markets remain in growth approx 2M tonnes by 2050
• Decisions on new investments today have to take zero net emissions into consideration
• Doing "the same" until 2030 is very high risk, and will not be accepted by Governments
• Changes to manufacturing processes are happening
• Major competitors remain fossil derived
• No obvious new zero carbon solvents in pipeline Cyrene is near zero, with pathway to zero or negative
• Opportunities for Cyrene both as replacement and co-solvent, as processes transition

20% Cyrene will save > 2M tonnes CO2 emissions

Circa Group AS Sjølyst plass 2 0278 Oslo Norway

Contact CEO – Tony Duncan Tony.Duncan@circagroup.com.au

This presentation contains statements regarding the future in connection with Circa Group's growth initiatives, profit figures, outlook, strategies and objectives. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

Follow us on LinkedIn and Twitter, and visit our website at www.circa-group.com