Quantafuel — Investor Presentation 2022

Nov 15, 2022

Q3 2022 presentation

QUANTAFUEL ASA

15 November 2022

DISCLAIMER - IMPORTANT NOTICE

THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS DOCUMENT IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES.

This presentation (the "Company Presentation") has been prepared by Quantafuel ASA, reg. no. 915 119 484 (the "Company", and together with its consolidated subsidiaries, the "Group").

This Company Presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. This Company Presentation does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is intended to present background information on the Company, its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made.

This Company Presentation is furnished by the Company, and it is expressly noted that no representation or warranty, express or implied, as to the accuracy or completeness of any information included herein is given by the Company. The contents of this Company Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. Generally, any investment in the Company should be considered as a high-risk investment.

This Company Presentation is current as of the date of presentation. Neither the delivery of this Company Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This Company Presentation may contain 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, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company provides no assurance that the assumptions underlying such forward-looking statements are free from errors and does not accept any responsibility for the future accuracy of the opinions expressed in this Company Presentation or the actual occurrence of the forecasted developments.

The distribution of this Company Presentation by the Company in certain jurisdictions is restricted by law. Accordingly, this Company Presentation may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. This Company Presentation does not constitute an offer of, or an invitation to purchase, any securities.

IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS BEING FURNISHED ONLY TO INVESTORS THAT ARE "QIBs", AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THE SHARES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER U.S. SECURITIES ACT OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS.

This Company Presentation is subject to Norwegian law, and any dispute arising in respect of this Company Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as first venue.

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

Confidently moving forward into next phase

• Skive improvement program progressing well
• Roll-out of next generation PtL plant on track
• Progress in the UK
• Construction of Resource Denmark well under way

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

QUANTAFUEL MK II PROCESS

Way forward

• Skive learnings key for the Mk II process continue to reach new milestones
• FEED progressing as planned
• Final Investment Decision (FID) expected early next year
• Saipem cooperation moving ahead has led to significant interest from major petrochemical actors

SUNDERLAND PROJECT PROCEEDING AS PLANNED

Quantafuel continues to receive strong support

• Approval of planning application for Sunderland expected early next year
• Positive discussions with feedstock suppliers
• Engaged UK-based financial advisors CBRE Limited
• Will work to secure funding commitments for up to four pipeline projects in the UK
• Quantafuel will hold a minority share (~20%) and maintain control of the IP and lead the partnership

CBRE is the world's largest commercial real estate services and investment company

PROJECT PIPELINE

Significant upside from acting now – clear first mover advantage for Quantafuel

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

SKIVE

Improving operational cost and margin

• Our systematic improvement approach continues to show progress
• All four production lines equipped with instrumentation allowing heating with self-generated gas (NCG)
• Testing and optimization has led to bringing operating load towards design capacity with high process stability
• Promising testing to improve operating time between line shutdowns
• Offtake agreement for our products renegotiated and improved

KRISTIANSUND

Maintaining attractive offtake prices and ramping up feedstock

• Maintaining attractive prices despite an uncertain waste plastic market
• Limitation in available feedstock restricts full utilisation – but gradually improving
• Actions are in place to improve sourcing of feedstock
• Positive cashflow expected from around mid 2023

ESBJERG – RESOURCE DENMARK

Becoming a market leader in an attractive part of the value chain

• The construction is well under way
• Ground-breaking ceremony with Esbjerg's Mayor in September
• Commissioning late 2023
• A game-changer for the post-consumer plastic waste market in Denmark and a key advantage for the co-located large-scale PtL plant

State-of-the art sorting plant and later PtL plant

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

FINANCIAL OUTLOOK

• NOK 247 (314) million in cash per 30 September 2022
• Positive operational cash flow from plants
• Skive: By year-end 2022
• Kristiansund: Mid 2023
• Skive EBITDA expected to gradually improve towards normalised level of ca 70 million from 2025 onwards
• Appointed ABG Sundal Collier as advisor for strategic review
• Appointed CBRE as development funding agent for Sunderland project and potentially a UK portfolio

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

• Skive improvement program progressing well
• Increasing stability and throughput
• Improved offtake agreement
• Mk II roll out on track
• FEED process for PtL plant in Dubai moving on for FID decision in early 2023
• UK development progressing with permitting processes and financing
• Saipem agreement adds licensing to our business model
• Construction of Resource Denmark well under way

QUESTIONS & ANSWERS

www.quantafuel.com IR@quantafuel.com