Pryme N.V.

Annual Report • Feb 26, 2025

PRYME N.V.

Q4 2024 Report

February 26th , 2025

Pryme N.V. – Q4 2024 Report

Forward Looking Statements

This Q4 2024 Report (the "Report") is produced by Pryme N.V. (the "Company" or "Pryme") and contains several forward-looking statements relating to the business, financial performance and results of Pryme, its subsidiaries and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "forecasts", "anticipates", "targets", "will", "should", "may", "continue" and similar expressions.

Forward-looking statements include statements regarding objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; profit; margin, return on capital, cost or dividend targets; economic outlook and industry trends; developments of the Company's markets; the impact of regulatory initiatives; and the strength of the Company's competitors.

The forward-looking statements contained in this Report, including assumptions, opinions and views of the Company, are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third party sources. Although the Company believes that these assumptions were reasonable when made, the statements provided in this Report are solely opinions and forecasts that are uncertain and subject to risks, contingencies and other important factors which are difficult or impossible to predict and are beyond its control.

A number of factors can cause actual results to differ significantly from any anticipated development expressed or implied in this Report. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved, and you are cautioned not to place any undue reliance on any forward-looking statement. The information obtained from third parties has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

To the Pryme shareholders,

Operational Update

Pryme continues to advance its position as a leader in the developing advanced recycling industry, focusing on industrial-scale solutions for plastic waste conversion. Since the commencement of pyrolysis oil production in early 2024, the Company has dedicated significant efforts to optimizing its first plant, Pryme One.

Initial production since the beginning of 2024 has been characterized by deliberate focus on process optimization rather than on immediate volume maximization, resulting in lower throughput rates and shorter production runs. The cumulative effect of start-up and shutdown cycles has constrained total production output. To date, more than 40 production runs have been completed, with the production period reaching 238 hours. As of the date of this report, Pryme One has operated for over 500 hours, producing 341 metric tons of pyrolysis oil. The company advised of its lowered Pryme One production capacity of some 16,700 metric tons of pyrolysis oil per annum. The strategic focus has been on Pryme One, whilst confirming the technical capabilities of its technology in its trading updates during the reporting period.

The Company has made significant technical progress, validating the functionality of the core components such as the extruder, the reactor, the condensation unit, the thermal oxidizer system, and the storage facilities with some proprietary modifications. Following multiple improvements and changes, the Company is satisfied that all components of Pryme One are generally functioning well and it believes that the overall technical setup is capable of semi continuous production for the conversion of plastic waste feedstock into pyrolysis oil. Process indicators, including char quality and hydrocarbon-free residue, confirm that the key technical parameters are within the expected thresholds, and we have not experienced higher than anticipated levels of waxing or fouling of the installation.

Recognizing the need to accelerate production ramp-up, Pryme has undertaken a structured improvement initiative. In September - October 2024, a dedicated task force - comprising internal and external subject matter experts - conducted a detailed analysis to identify bottlenecks, recommended targeted enhancements, and various process optimizations. The scope was further expanded in December to address supply chain challenges, including feedstock logistics and product handling in a phased approach to increase operational capacity. A comprehensive plan is being executed which gives a structured and risk-based approach to addressing the current constraints of the Pryme One installation.

Production outlook

Pryme has established a 12-month production roadmap based on identified constraints and corresponding mitigations. The Company anticipates moderate production volumes in the first half of 2025, as component testing and equipment improvements are prioritized. In the second half of the year, Pryme expects a significant production ramp-up, targeting near full-capacity operation at Pryme One.

Commitment to execution

The dedication and expertise of the Pryme team are important factors to achieving the Company's strategic objectives. Management recognizes the operational and technical challenges associated with pioneering an industrial-scale advanced recycling facility but remains confident in the team's ability to drive performance improvements and solve setbacks.

Pryme is fully committed to executing its long-term vision, leveraging the insights gained from Pryme One to enhance future plant design and engineering. The Company continues to focus on scaling its technology while maintaining a disciplined, risk-based approach to operational expansion.

Sincerely,

Marieke Bleyenbergh - Interim CEO Pryme N.V.

Key highlights Q4 2024

• Pryme produced 105 metric tons in the fourth quarter of 2024 which brings the year-to-date oil production to 341 metric tons of pyrolysis oil produced. The longest production run in the fourth quarter lasted for around 238 hours.
• Pryme concluded the year without 'very serious' incidents as per our risk matrix and no Lost Time Injuries during the year.
• On October 29, 2024, the Company published a revised expected production capacity of Pryme One to some 16,700 metric tons of pyrolysis oil per annum. Although this represented a setback compared to earlier expectations, a solid and experience-based foundation has been established for this updated production capacity estimate for Pryme One.
• Pryme secured additional funding of EUR 4.0 million in a private placement of shares.

Other notables and further descriptions of activities and accomplishments for the reporting period:

• Pryme One Production

Production at Pryme One has ramped up at a slower rate than originally anticipated. The main reasons for the lagging Pryme One production rate are related to the overall process layout and the oil yield levels. Pryme One has a semi-continuous process where all steps in the process are designed for continuous operation, except for the reactor feeding and the dumping of char/ash. Operational experience gained to date for reactor feeding and equipment maintenance and cleaning has been taken into account to revise the expected production capacity of Pryme One to some 16,700 metric tons of pyrolysis oil per annum, lower than originally assumed.

As an integral part of the ramping up of the production rates of Pryme One, Pryme established an expert group of technical and operations personnel with assistance from external subject matter experts. Their work is intended to accelerate the ramp-up of production by pinpointing areas needing improvement, proposing specific improvements to the plant hardware and procedures and implementing these changes in an efficient manner. Main issues identified are:

• Vacuum systems for extruders.
• Mechanical and sealing issues with the reactor.
• Fouling in the condensation system.
• Improvements needed in pyrolysis oil quality.

A comprehensive project plan is being executed to address the topics identified.

• Pryme One Supply Chain Management

In December the Pryme team initiated the set-up of a Sales & Operations Planning (S&OP) process and related work instructions and tools to manage the various activities and interfaces for feedstock, pyrolysis oil, char and logistics.

In the past months, Pryme gained experience in handling, sampling and analysis of pyrolysis oil. In general, pyrolysis oil is a complex product to analyze. Therefore, extensive sampling and tests must be performed before the pyrolysis oil can be delivered to the customer. Given the limited storage capacity (approx. 120 metric tons) at the Pryme One site and the sampling time required, Pryme is renting additional tank storage capacity.

Pryme is seeking to increase the selling price for the pyrolysis oil and has initiated renegotiations with its customers.

• New site selection process

In July 2024 Pryme concluded its initial site selection study with the assistance of an external consultant. Currently, the Company does not contemplate initiating external basic engineering work before the planned capacity tests of Pryme One have been completed satisfactorily in the Q1/Q2 2025 timeframe.

• Funding

On 16 December 2024 Pryme completed a private placement of shares for total gross proceeds of EUR 4.0 million. In connection with the private placement, the company issued call options to the investors and received put options from the investors with the put options being subject to certain operational conditions for in total maximum proceeds of EUR 6.0 million. These options expire on 30 June 2025, if not invoked.

• IMPACT/ ESG

Pryme operates in a hazardous petrochemical environment. Ensuring the health and safety of our employees and contractors, and protecting the environment in which we operate, remains Pryme's top priority. No safety incidents were reported in Q4 2024. A project to enhance the odor and emission control has been started. Plant modifications have been initiated that involve a process water discharge. This is currently being evaluated with the authorities and the industrial wastewater treatment facility. Pryme One's mass balance calculations for 2024 were completed. The update of the Life Cycle Analysis has been postponed until we have established stable production conditions thus further enhancing the reliability of the data to enable evaluating Pryme's performance and progress on sustainability goals. A cyber security awareness training course for management and staff has been selected and prepared, effectively starting in January 2025.

• Organization and board

Effective November 4, 2024, Marieke Bleyenbergh was named CEO of Pryme on an interim basis. Reference is made to the announcement published on November 4, 2024. With Marieke Bleyenbergh assuming the CEO function, she also assumed the role and responsibilities of a statutory director of Pryme N.V. on an interim basis, effective November 4, 2024.

On 16 December 2024, Michiel Kool, vice-chair of the supervisory board of Pryme N.V., and Boudewijn van Vliet, member of the Company's supervisory board, voluntary tendered their resignation. Following the completion of the private placement on that day the ownership structure of the Company significantly changed. The two largest investors in the Company remain represented on the Pryme supervisory board, each holding or controlling more than 25% of the Company's shares following the private placement. No replacements are considered as a smaller supervisory board is deemed appropriate for the Company's size and complexity during this stage of its development.

Subsequent events

On 4 February 2025, Pryme issued 26,936,041 new shares in its capital following the private placement allocated to the existing shareholders Circular Plastics Coöperatief U.A. and Taranis Investment Limited.

On 10 February 2025, Pryme announced that it will consolidate its shares: ten (10) old shares will give one (1) new share. The share consolidation will take effect after the end of trading on Euronext Growth Oslo on 3 March 2025 and before commencement of trading on 4 March 2025. Please see the separate announcement published on February 10th for more details.

Outlook

The Pryme production plan for 2025 entails an analytical approach to estimating the capacity and the abilities of the Pryme One installation. This includes testing of the various components at or near full capacity, both individually and collectively. Such work is important to ramp up the Pryme One production, but even more so to provide a solid experience-based basis for Pryme's future plant design. Such testing is planned to take place throughout Q1 and Q2 2025

For the first quarter, Pryme expects to produce up to 200 metric tons of pyrolysis oil. The reason for the lower estimated production is that necessary repairs and modifications to Pryme One are taking place, with an expected start-up in March. For 2025, Pryme expects to produce limited volumes in the first two quarters driven by further component testing and technical improvements.

Pryme expects to ramp up production of pyrolysis oil successively for the next quarters with the goal of achieving production volumes at or near full capacity by the end of 2025.

For 2025, the following production volumes are expected to take place:

• Q1 2025: up to 200 tons of pyrolysis oil.
• Q2 2025: 750-1,250 tons of pyrolysis oil.
• Q3 2025: 1,500-2,500 tons of pyrolysis oil.
• Q4 2025: 3,000-4,000 tons of pyrolysis oil.

2024 4 th QUARTER INTERIM FINANCIAL STATEMENTS

- UNAUDITED FIGURES –

Consolidated Statement of Financial Position
(In EUR * 1,000)	31-12-2024	30-9-2024	31-12-2023
Assets
Non-current assets
Intangible assets
Development costs	4.905	5.212	6.132
Property, plant, and equipment
Plant and equipment	13.704	35.009	39.038
R&D equipment	623	612	775
Office improvements & furniture	74	82	107
Right-of-use assets	3.311	3.534	5.661
Financial assets
Other amounts receivable	250	176	175
Deferred taxes	981	937	1.608
Total non-current assets	23.848	45.562	53.496
Current assets
Inventories	267	249	83
Trade receivables, other receivables and prepaid expenses	821	1.042	1.412
Cash & cash equivalents	5.996	4.566	8.204
	7.084	5.857	9.700
Assets held for sale	1.464	1.472	0
Total current Assets	8.548	7.329	9.700
Total Assets	32.397	52.891	63.196
Equity & Liabilities
Group Equity	11.392	37.221	39.479
Provisions
Provision for decommissioning	670	662	638
Liabilities
Non-current liabilities
Government grants	1.877	1.387	1.949
Payables to banks	11.099	6.304	6.901
Leasing liabilities	2.703	2.824	5.136
Deferred taxes	1.004	957	1.608
Other liabilities	1	0	272
Total non-current liabilities	16.683	11.472	15.866
Current liabilities
Payables to banks	892	790	756
Leasing liabilities	720	819	668
Trade payables	1.055	638	1.713
Payables relating to taxes and social security contributions	25	38	183
Other liabilities and accrued expenses	960	1.251	3.893
Total current liabilities	3.652	3.536	7.212
Total equity and liabilities	32.397	52.891	63.196

Notes to the Consolidated Statement of Financial Position

The financial statements in this Q4 2024 report are unaudited. The external audit is ongoing, and the financial figures may change. The review and external audit of the impairment test, referred to in the section Financial position, has not been finalized. The final figures will be provided in the 2024 annual report which will be published on May 7, 2025.

Accounting policies

There were no reclassifications or changes in accounting policy in the fourth quarter of 2024.

Financial position

On 18 October 2024, Pryme drew its term loan facility at Energietransitiefonds B.V.. The loan amounts to EUR 5.0 million and the terms and conditions as communicated on 6 June 2024 apply.

In December 2024, Pryme executed an impairment test regarding the justifiable carrying value of the Plant & equipment related to the Pryme One installation. Based on this impairment test, an impairment of EUR 20.4 million has been recognized in Q4 2024. The main reason for the impairment is that the nameplate capacity of the Pryme One installation was reduced from 26.000 to 16.700 metric ton pyrolysis oil per annum.

The impairment test is currently being reviewed by the external auditor as part of the ongoing 2024 annual audit. Depending on the impairment methodology used, the impairment charge may increase significantly, by up to maximum EUR 10 million for a maximum of EUR 30 million.

Capital expenditure in the fourth quarter of 2024 was mainly related to improvements of the installation and amounted to EUR 0.4 million.

Related party transactions

In Q4 2024 no related party transactions occurred other than the private placement of shares and the option agreements with Taranis Investment Limited and Circular Plastics Coöperatief U.A. (refer section Funding).

Consolidated Statement of Profit and Loss
(In EUR * 1,000)		Q4 2024		Q3 2024		Q4 2023		Q4 YTD, 2024		Q4 YTD, 2023
Revenues		41		29		0		102		0
Cost of sales	-36		-25		0		-94		0
Cost of production	-2.713		-3.318		0		-12.472		0
Gross margin		-2.708		-3.314		0		-12.464		0
Engineering, Sales and General Admin Expenses
Personnel expenses SG&A	-571		-490		-1.512		-2.689		-3.981
Social security premiums and pension costs	-79		-57		-162		-279		-461
Other expenses SG&A	-270		-327		-906		-1.412		-2.818
Total expenses		-919		-874		-2.580		-4.380		-7.260
Operating income (EBITDA)		-3.628		-4.188		-2.580		-16.844		-7.260
Depreciation and amortization		-22.159		-369		-5.104		-23.264		-5.908
Operating result (EBIT)		-25.787		-4.556		-7.684		-40.108		-13.168
Financial income		47		51		107		230		304
Financial expenses		-363		-236		-12		-1.035		-284
Profit before taxes		-26.103		-4.741		-7.589		-40.914		-13.148
Income tax				0		0		0		0
Net profit (loss)		-26.103		-4.741		-7.589		-40.914		-13.148
Basic earnings as per ordinary share (in EUR)		-0,43		-0,10		-0,16		-0,77		-0,31
Diluted earnings as per ordinary share (in EUR)		-0,29		-0,09		-0,15		-0,49		-0,26

Notes to the Consolidated Statement of Profit and Loss

• In the fourth quarter Pryme produced 105 metric tons of pyrolysis oil compared to 6, 114 and 116 metric tons in the first, second and third quarters, respectively. The delivery of pyrolysis oil to customers is delayed related to the time required for sample testing and the off-spec quality of the pyrolysis oil product. This is reflected in the increase in inventories.
• The depreciation and amortization costs in Q4 2024 are inflated by an impairment of the Pryme One Installation amounting to EUR 20.4 million. Reference is made to the section Financial position.
• The total personnel costs in Q4 2024 amount to EUR 1.655 thousand (Q4 2023 EUR 1.729 thousand), reflecting the personnel costs of Operations Pryme One, management and support staff (Engineering, R&D and SG&A).

Consolidated of Changes Statement in Equity
(In EUR * 1,000)	Share capital	Share premium reserve	Share based payments reserve	General reserve	Total equity
Balance as of 30 September 2024	3.058	71.337	886	-38.059	37.222
Result for the period Issue of shares (Private Placement) Accrued resp. released re LTI plan		-23	208	-26.103 88	-26.103 -23 296
Balance as of 31 December 2024	3.058	71.314	1.095	-64.075	11.392

The movement of the Share premium reserve relates to (advisory) expenses regarding the private placement in March 2024 and the related conversion of the convertible loan into shares in September 2024.

Consolidated Statement of Cash Flow

(In EUR * 1,000)	Q4 2024	Q4 2023
Cash Flows from/used in operating activities
Net income after taxes	-26.103	-9.851
Adjustments to reconcile net income to net cash flows
Amortization and depreciation	22.183	7.461
Long term incentive plan	58	133
Interest charges related to leases	86	74
Movements in provisions	8	638
Movement in government grants	-372	-228
Finance income & expense (non-lease)	46	-82
Finance expense/ exchange differences (non-lease)	277	12
Movements in working capital
Movements in inventory	-19	-83
Movements accounts receivable	725	160
Movements in trade payables	418	-274
Movements in other payables	-577	3.199
Interest received	33	121
Interest paid	-361	-259
Net Cash Flow from operating activities	-3.598	1.021
Cash Flow from investment activities
Purchase of intangible assets	0	70
Purchase of property, plant & equipment	-395	-5.908
Increase/decrease of financial assets	75	95
Government grants received	634	37
Net Cash Flow from investment activities	314	-5.706
Cash Flow from financing activities
Private placement (convertible loan)	128	-5
Payments arising from bank financing	-193	-134
Term loan facility	5.000	0
Payments arising from lease liabilities	-221	-189
Proceeds sale and lease-back	0	0
Repayment other non-current liabilities	0	-47
Net Cash Flow from Financing Activities	4.714	-375
Total Cash Flow for period	1.430	-5.060
Cash and cash equivalents at the beginning of the period	4.566	13.264
Net Cash Flow in the period	1.430	-5.060
Cash and cash equivalents at the end of the period	5.996	8.204

STATEMENT BY THE MANAGEMENT BOARD

The Management Board has today considered and approved the Q4 2024 Report of Pryme N.V. for the period from 01.10.2024 through 31.12.2024. We confirm, to the best of our knowledge, that the financial information contained in this report has been prepared in accordance with the International Financial Accounting Standards-EU (IFRS) and gives a true and fair view of Pryme N.V. and its group companies' assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the updates in this report include a fair review of important events that have occurred during the fourth quarter of the financial year 2024 and that their impact on the condensed set of consolidated financial statements is reflected adequately.

Rotterdam, February 26th , 2025

Management Board Pryme N.V.

Marieke Bleyenbergh,

Interim CEO

Supervisory Board Pryme N.V.

Henning E. Jensen Emmanuel Colombel Jan Willem Muller

About Pryme | www.pryme-cleantech.com

Pryme N.V. is an innovative cleantech company focused on converting plastic waste into valuable products through chemical recycling on an industrial scale. Its efficient and scalable technology is based on a proven pyrolysis process that has been further developed and enhanced with proprietary characteristics. The company has initialized production at its first plant in the port of Rotterdam, with an expected nameplate intake capacity of about 26,000 tons of plastic waste annually. Pryme's ambition is to contribute to a low-carbon, circular plastic economy and to realize the large rollout potential of its technology through the development of a broad portfolio of owned-operated plants with strategic partners. The company is listed on Euronext Oslo Growth market. Pryme can be followed on LinkedIn.