Circa Group AS — Investor Presentation 2022

Aug 25, 2022

Q2 2022 Results Presentation

25 August 2022

The information and opinions contained in this presentation may not have been independently verified, are provided as at the date hereof and are subject to amendment, revision and completion without notice. No person is under any obligation to update or keep current the information contained in this presentation. No representation, warranty or undertaking, expressed or implied, is made by the Company, its advisers or representatives, or their respective officers, employees or agents as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reasonableness of the information or the opinions contained herein. The Company, its advisers or representatives, or their respective officers, employees and agents expressly disclaim any and all liability which may be based on this presentation and any errors therein or omissions there from. This presentation does not constitute or form any part of, and should not be construed as, an offer to sell, or an invitation or solicitation or recommendation to purchase, or subscribe for or underwrite or otherwise acquire any securities in the Company in any jurisdiction and does not constitute or form part of a prospectus. No part of this presentation should form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment or investment decision whatsoever.

INTRODUCTION Tony Duncan

FINANCE Tone Leivestad

RESOLUTE Philipp Morgenthaler

SALES & MARKETING Tony Duncan

OUTLOOK Tony Duncan

The transition to sustainable chemicals is underway

• Production of chemicals responsible for 4% of global CO2 emissions
• Long global supply chains create risk and increase carbon footprint of production
• Ineffective chemicals lead to higher energy use and further emissions
• Resource intensive disposal process for toxic chemicals, causing further harm
• Fossil dependency: 10% of global oil production used to produce chemicals

Chemical industry is essential, but harmful Circa ambition to produce biochemicals at scale

• Circa's non-food biomass feedstock is 100% renewable and sustainable
• Energy neutral, water positive production process with valuable and environmentally friendly by-products
• Outperform existing solvents in 20-30% of applications, avoiding 80% of CO2 emissions
• Disposal of CyreneTM only releases water and CO2
• LGO biochemical platform can enable opportunities for multiple future biochemicals

Source: EEA. Prof James Clark (York University), Millipore Sigma, Ramboll. Note: 1) Cradle to gate global warming potential, 2) ANL NMP, ecoinvent 3.1 NMP RoW and Europe, GaBi NMP General

And the chemical industry is responding…

https://www.strategyand.pwc.com/de/en/unique-solutions/sustainable-impact-made-real/empowered-chief-sustainability-officers/strategyand-chief-sustainability-officer.pdf

Circa enables the transition by offering an alternative solvent that can be part of the chemical sector's decarbonisation

Global Warming Potential (GWP) (CO2 equivalent/kg)

Source: IPCC 2013 Impact Assessment Method,

1)Ramboll LCA on Cyrene produced at FC5. Full replacement of existing product mix with Cyrene™ in 1,000,000 tonnes polar aprotic solvent market is estimated to result in savings of 6 m tonnes of CO2 emissions per year. Does not include disposal where Cyrene™ may also have an advantage (zero NOX / SOX)

Furacell™ plant design parameters from 2010

• Biomass feedstock tolerant
• Energy neutral: gasify char output
• Zero external water use (process "makes" water)
• Operate near atmospheric pressure
• Scalable continuous process

• Environmentally benign: char and water primary byproducts

• Key resources continue to be added to the Circa team in France and Norway.

• Project ReSolute™ Heads of Agreement signed with Valmet, basic engineering complete, contracts with other major vendors on track and construction underway
• Sustained commercial focus on sectors where Cyrene™ out-performs, such as textile recycling, batteries, graphene and carbon nano-tubes (CNTs)
• Distributors' interest in Cyrene™ remain strong and negotiations are moving forward
• Establishment of Circa Renewable Chemistry Institute (CRCI) at the University of York provides customers with support to develop applications with Cyrene™, supports ReSolute plant optimisation and leads targeted product developments

INTRODUCTION Tony Duncan

FINANCE Tone Leivestad

RESOLUTE Philipp Morgenthaler

SALES & MARKETING Tony Duncan

OUTLOOK Tony Duncan

Spend remains in line with expected quarterly run rate

(EUR)	Q2 2022	Q2 2021	YTD 2022	YTD 2021
Product sales	16 895	11 835	39 151	13 169
Other revenue	160 089	31 049	265 862	35 115
Total revenue	1 912 684	1 912 685	1 912 686	1 912 687
Cost of sales	66 823	75 014	113 284	138 369
Depreciation	3 677	456	6 281	457
Employee benefit expenses	845 055	601 844	1 321 197	2 245 714
Other operating expenses	1 070 030	802 166	1 964 763	2 337 809
Total operating expenses	1 985 585	1 479 480	3 405 525	4 722 349
Operating result	-1 808 601	-1 436 596	-3 100 512	-4 674 065
Net financial income/ expenses	-195 757	-114 954	41 885	-321 771
Net profit/ loss before tax	-2 004 359	-1 551 550	-3 058 627	-4 995 836
Tax expenses	0	0	0	0
Net profit/ loss	-2 024 130	-1 551 550	-3 078 398	-4 995 836
Other comprehensive income:
Foreign exchange gains/(losses)	70 057	22 707	-90 352	1 196
Total comprehensive profit/ loss for the period	-1 954 073	-1 528 843	-3 168 750	-4 994 640

• FC5 continues to provide product for Cyrene sales and trial product to customers
• Other revenue consists of grant income relating to compensation for eligible expenses incurred during the current period
• Q2 22 employee and other operational expenses continue to be in line with the quarterly run rate
• Financial expenses is mainly related to unrealised FX

Focus on cash remains critical

(EUR)	30.06.2022	30.06.2021	31.12.2021
ASSETS
Intangible assets	33 408	0	0
Tangible assets	1 696 257	571 281	1 244 589
Total non-current assets	1 729 665	571 281	1 244 589
Inventory	75 081	33 748	0
Short term receivables	937 769	408 500	1 600 307
Cash and cash equivalent	40 676 029	49 717 972	44 422 071
Total current assets	41 688 879	50 160 220	46 022 378
Total assets	43 418 543	50 731 501	47 266 967

• Accumulated ReSolute™ capex is EUR 3.2 million, offset by grant contribution of EUR 1.5 million
• Grant offset amount includes grants from Horizon 2020, and from Q2 22 also the France Relance and Coal Fund grants
• Increase in short term receivables is mainly due to R&D income in Australia
• Cash balance is EUR 40.7 million. Cash spend of EUR 1.6 million in Q2 22, in line with expected run rate
• Cash does not reflect announced grants not yet recognized in the accounts

Circa remains well-funded

(EUR)	30.06.2022	30.06.2021	31.12.2021
EQUITY
Issued and paid in equity	56 809 130	56 809 176	56 809 130
Other equity	-18 164 793	-12 883 888	-15 067 139
Total equity	38 644 337	43 925 288	41 741 991
LIABILITIES
Employee benefits	387 575	550 482	263 288
Other non-current liabilities	11 934	0	11 539
Total non-current liabilities	399 509	550 482	274 827
Employees and related	172 660	989 966	541 374
Trade and other payables	552 085	803 112	706 260
Public duties and related	35 151	47 754	0
Other current liabilities	3 614 801	4 414 900	4 002 515
Total current liabilities	4 374 697	6 255 732	5 250 149
Total liabilities	4 774 206	6 806 213	5 524 976
Total equity and liabilies	43 418 543	50 731 501	47 266 967

• Total Equity is EUR 38.6 million as of Q2 22
• Decrease in "Employees and related" from previous periods is related to nonrecurring IPO retention bonus, expensed in Q1 21 and paid in tranches in Q3 21 and Q1 22.
• Other current liabilities are mainly related to prepayment of the Horizon 2020-grant

INTRODUCTION Tony Duncan

FINANCE Tone Leivestad

RESOLUTE Philipp Morgenthaler

SALES & MARKETING Tony Duncan

OUTLOOK Tony Duncan

ReSolute progress

• Progress remains consistent with plan
• Cost estimate within 50-55m€ range
• Hot commissioning planned for end of Q4 2023
• Contract negotiations to agree on Valmet equipment delivery underway
• Contract negotiations with vendors for distillation and hydrogenation also underway
• Potential FC6 site exploration with positive government engagement
• Permitting application process key focus

• In line with rationalised ReSolute foot-print, we are right-sizing our plans to fit compact area within the agreed envelope of Emile-Huchet site

INTRODUCTION Tony Duncan

FINANCE Tone Leivestad

RESOLUTE Philipp Morgenthaler

SALES & MARKETING Tony Duncan

OUTLOOK Tony Duncan

• Final contracts with major ReSolute vendors to be signed end Q3
• Continued work on projects related to ReSolute optimisation (on-line monitoring etc)
• Move forwards with key R&D projects relating to decarbonisation
• Use of Cyrene™ in co-solvent applications (e.g. with NMP) continue to be tested in market
• Engagement with agri-chemicals market on Cyrene™ performance to replace NMP
• Biopolymer trials underway for household / industrial use

INTRODUCTION Tony Duncan

FINANCE Tone Leivestad

RESOLUTE Philipp Morgenthaler

SALES & MARKETING Tony Duncan

OUTLOOK Tony Duncan

• Distribution agreements continue to move forward, with new requests for Cyrene distribution
• ReSolute project review with Horizon 21 grant funder undertaken and approved
• Head of Commercialisation role currently advertised with view to appointment early October
• Circa taking part in UK trade delegation to Japan focussed on battery production and technologies

Multiscale Molecular Simulation Strategies for Understanding the Delignification Mechanism of Biomass in Cyrene

Multiscale Molecular Simulation Strategies for Understanding the Delignification Mechanism of Biomass in Cyrene™

"…Cyrene™ has piqued considerable interest in the green chemistry community despite only recently being available in the quantities required for solvent applications. Deconstruction of cellulose is an essential step in the production of fuel and value-added chemicals from lignocellulosic biomass… The interaction energies between lignin and Cyrene and Cyrene–cosolvent were much stronger than that between lignin and water, explaining the higher biomass delignification in Cyrene-based solvents."

Thank you

Takk

Merci