Pryme N.V. — Investor Presentation 2021

Aug 24, 2021

Q2 2021 presentation

Constructing the first plant Building the company Developing strategic partnerships

Agenda

• Key developments
• Plant construction update
• H1 2021 financials and cashflow forecast
• Team and organization
• Rollout ambition
• Q & A

Q2 2021: Key developments

Nominated two experienced independent board members for shareholder confirmation in September

Hired a plant manager who has started work per 01.07.2021

Hired a rollout manager who will start work per 01.09.2021

Executed contract on asset-backed loan of EUR 8.2 million

Decision made to locate our R&D plant at the University of Ghent

Strategic cooperation agreement and offtake agreement with major petrochemical player (executed in July) – important milestone

Agenda

• Key developments
• Plant construction update
• H1 2021 financials and cashflow forecast
• Team and organization
• Rollout ambition
• Q & A

Construction phase 1 plant on track

Plant construction update

• Initial intake volume: 40,000 tonnes p/a

• scale up in 2023: 60,000 tonnes p/a

• Initial oil production: 30,000 tonnes p/a

• scale up in 2023: 45,000 tonnes p/a

• located in port of Rotterdam
• CAPEX EUR 25 million

Agenda

• Key developments
• Plant construction update
• H1 2021 financials and cashflow forecast
• Team and organization
• Rollout ambition
• Q & A

Balance Sheet H1 2021 financials

		30.06.2021		FY 31.12.2020
Assets
Fixed Assets
Intangible fixed assets
Development costs	€	2'290'674	€	2'290'674
Tangible fixed assets
Machinery	€	14'407'587	€	8'729'086
Other fixed assets	€	14'269	€	2'500
Financial fixed assets	€	42'194	€	37'303
Total fixed assets	€	16'754'724	€	11'059'563
Current assets
Receivables	€	1'231'125	€	1'105'942
Cash & cash equivalents	€	15'932'694	€	154
Total Assets	€	33'918'543	€	12'165'659
Equity & Liabilities
Equity	€	28'360'469	€	6'469'699
Long Term liabilities
Accruals and deferred income	€	4'991'511	€	4'991'511
Current liabilities
Trade payables	€	473'879	€	585'297
Other liabilities	€	92'684	€	119'152
	€	33'918'543	€	12'165'659
The data included in this report are unaudited.

Profit & loss

H1 2021 financials

					H1 2021		FY 2020
	Operating revenue			€	-	€	-
Cost of Sales			€	-	€	-
	Gross Margin			€	-	€	-
	Operating expenses
	Wages & Salaries			€	5'700	€	11'778
		Oher expenses employee benefits		€	377'168	€	212'500
	Housing expenses			€	92'968	€	89'311
	Audit & Accounting			€	52'448	€	117'344
	Legal advisory			€	175'637	€	81'922
	Insurances			€	-	€	62'295
	Other operating expenses			€	68'800	€	12'562
	Total operating expenses			€	772'721	€	587'712
Depreciation				€	237	€	-
	Operating result			€	-772'958	€	-587'712
	Financial income / (expense)			€	-31'785	€	1'846
EBIT				€	-804'743	€	-585'866
	The data included in this report	are unaudited.

Cashflow H1 2021 financials

		H1 2021		FY 2020
Cash flow from operating activities
Operating result	€	-772'958	€	-587'712
Adjustments for
Depreciation	€	237	€	-
Changes in working capital
Movements accounts receivable	€	-125'182	€	331'229
Movements in other payables	€	-137'886	€	155'131
Total cash flows from operations	€	-1'035'789	€	-101'352
Financial income	€	-31'785	€	1'846
Total cash flow from operating activities	€	-1'067'574	€	-99'506
Cash flow from investment activities
Purchase of tangible fixed assets	€	-5'690'507	€	-471'873
Purchase of financial fixed assets	€	-4'891	€	-138
Total cash flow from investment activities	€	-5'695'398	€	-472'011
Cash flow from financing activities
Public placement	€	24'815'419	€	-
Expenses relating to public placement	€	-2'119'906	€	-
Total cash flow from financing activities	€	22'695'513	€	-
Total cash flow	€	15'932'541	€	-571'517
Cash and cash equivalents at the beginning of the period	€ €	154	€	571'671
Total cash flow in the period		15'932'541	€	-571'517
Cash and cash equivalents at the end of the period	€	15'932'695	€	154
The data included in this report are unaudited.

Cashflow until end of commissioning (30.09.2022)

Forecast

CAPEX increase of about € 2 million

• CAPEX includes the R&D plant in Ghent, as well as the development of

blueprint for the typical plant by Worley Parsons for a total of € 1.600.000

• EPC contract increased by about € 400.000

OPEX increase of about € 1 million

• Earlier timeline for the operational team build, as well as extra staffing to

counterbalance early turnover and increased needs for megaplant

Grants expected before 30.09.2022 decreased by about € 1 million

• Unexpected decline on a € 500.000 subsidy request
• Balance of € 538.000 on another subsidy forecasted in Q4 2022

Cashflow until end of commissioning (30.09.2022)

Forecast

€ 30'000'000

Current liquidity position enables funding of all activities until end of commissioning when company will become cashflow positive

	Cash available	Expenses remaining
Cash balance at 30/6/2021	€ 15'932'694
Proceeds from asset backed financing	€ 8'200'000
Grants
Remaining Capex		€ 17'660'945
Estimated OPEX		€ 5'887'709
	€ 24'132'694	€ 23'548'654
Balance at 30.09.2022	€ 584'040

Agenda

• Key developments
• Plant construction update
• H1 2021 financials and cashflow forecast
• Team and organization
• Rollout ambition
• Q & A

Building the company

Team and organization

• We managed to fill the two most critical management functions with high calibre candidates
• Sander Schiereck has come on board as plant manager, coming from 24/7 petrochemical operations environment. Earlier in his career he worked in engineering services and has more than 10 years experience in running and maintaining extruder equipment for plastic compounding, as well as a demonstrated performance on operations improvement, which makes him a good fit for the team.
• Joeri Dieltjens will assume the role of rollout manager, where he will bring valuable perspective through his experience as project manager for modular construction and start-up of plants in an international context for a large petrochemical company. As a chemical engineer with management experience in both plant construction and site operation engineering, he comes with key skills that Pryme needs to realize its ambitions.
• With the nomination of Henning E. Jensen and Michiel Kool, two experienced independent directors will come on board bringing valuable perspective on governance and strategy. Confirmation of the nominations will be tabled in an ESM in September.

Agenda

• Key developments
• Plant construction update
• H1 2021 financials and cashflow forecast
• Team and organization
• Rollout ambition
• Q & A

Rollout ambition Growth and timelines

Rollout & strategic partners

Rollout ambition

• Pryme plans to build a megaplant in Rotterdam and aims to select four additional European locations soon
• Based on a joint learning curve that will come with the production and logistics of the first plant, strategic partners will have a prime position in the rollout

Oil equivalent production phase 1 & 2

Estimated projected development in oil output (x 1,000 tonnes p/a)

Estimated timeline Rollout ambition

Phase 1

• Construction start: Q3 2021

• Commissioning: Q2 2022

Phase 2

• Construction start: 2023

• Production start: 2024

Phase 3 (not included) Substantial further upside

Q & A

ir@pryme-cleantech.com

www.pryme-cleantech.com

ANNEXES

• Market opportunity
• Positioning and economics

Majority of plastic waste goes to landfill or incineration

• Market opportunity
• Currently less than 20% collected for recycling
• Enormous potential to utilize waste streams that currently go to landfill and incineration
• McKinsey estimates that ~50% could be collected for recycling by 2030

Source: McKinsey: How plastics-waste recycling could transform the chemical industry (December 2018) 20

Chemical recycling: growth potential

Growth in global profit pool from 2016 to 2030 (billion USD)

Supportive EU regulation

Market opportunity

2018

EU Plastics Strategy: 50% of all plastic packaging to be recycled by 2025

EU Green Deal: Boost efficient use of resources by moving to a clean, circular economy

2019

2020

EU Plastic Tax of EUR 800 per tonne on nonrecycled plastic packaging waste

2021

Stringent regulation on EU exports of plastic waste

Chemical recycling: sustainability case

Climate change impact per plastic recycling technology: Kilograms CO2 eq. / kilograms polyolefins

6

Source: TNO (2021)

92,000 tonnes of CO2 emissions avoided

Market opportunity

• Reduction of need for virgin oil and gas
• Increase in resource efficiency by diverting waste otherwise destined for incineration or landfill
• Possibility to upcycle mixed plastic waste to food-grade packaging
• Complementing mechanical recycling

23

At least 10 million tonnes of usable European feedstock

Market Opportunity

Source: Plastics – The Facts 2019; Company research

Pryme positioning: pure play pyrolysis

Positioning & economics

• Focus on production of crude pyrolysis oil from broad plastic waste spectrum
• Removal of some contaminants
• Further chemical processing by petrochemical industry
• Pyrolysis oil will achieve the highest circular value as feedstock for naphtha crackers

New approach to existing and proven technology

Positioning & economics

Process yields

Positioning & economics

Mass balance

ü 5 tonnes per hour

• ü High capacity reactor and strong scalability ü Low carbonization
• ü Proprietary process IP
• ü 100% plastic conversion
• ü Efficient heating technology

Efficient process & cost leadership

Positioning & economics

YIELD

100% plastic conversion – 98% plastic to usable hydrocarbons

75% oil yield from waste (on the basis of 85% plastic content of the waste intake)

ENERGY

Processes driven by electrical power, with aim to procure 100% from renewable sources

4

2

1

PRODUCT

The produced the pyrolysis oil will achieve the highest circular value as feedstock for naphtha crackers - some key contaminants removed

CAPEX

Capex EUR 700 per tonne oil output p/a, which is considerably lower than competition

Typical plant – basic calculation

Positioning & economics

• Intake: 150,000 tonnes p/a
• Output: 112,500 tonnes p/a
• Capex: EUR 80 million
• Payback period: 3 years

This presentation (the "Presentation") has been produced by Pryme B.V. (the "Company" or "Pryme"). This Presentation and any information contained herein or provided at this Presentation are being made available for informational purposes only, and may not be distributed to any other person, reproduced, published or used in whole or in part for any other purpose. If does not constitute, and should not be construed as, any offer or invitation or recommendation to buy or sell any of the securities mentioned or described herein.

No representation, warranty, or undertaking, express or implied, is made to, and no reliance should be placed on any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, the Company accepts no liability whatsoever arising directly or indirectly from the use of this Presentation, or its contents or otherwise arising in connection therewith.

All information in this Presentation is subject to verification, correction, completion and change without notice. In giving this Presentation, the Company undertakes no obligation to provide the recipient with access to any additional information or to update this Presentation or any information or to correct any inaccuracies in any such information

This Presentation contains several forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts,

Important information sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "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 Presentation, 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 Presentation 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 Presentation. 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.

This Presentation has not been reviewed or registered with any public authority, stock exchange or regulated market place.