Quantafuel — Investor Presentation 2022

Aug 31, 2022

Q2 2022 presentation

QUANTAFUEL ASA

31 August 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

LAUNCHING QUANTAFUEL MK II – THE ROLL-OUT BEGINS!

• We are ready to fulfil the Quantafuel vision and embark on a large-scale global roll-out
• Skive has served its main purpose the knowledge gained is the core IP of Quantafuel
• BASF joins us and DUBAL Holding in Dubai development – FEED ongoing
• SAIPEM, the preferred EPC contractor, adds licencing of Quantafuel Mk II PtL plants to our business model

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

WAY FORWARD

Launching the Quantafuel Generation 2 (Mk II) process

• Incorporating the learnings from operating Skive into Generation 2 (Mk II)
• Key changes vs Skive
• Simplification
• Redundancy
• Operability
• Close co-operation with our partners
• Mk II basis for
• Build, own & operate
• Licensing model with Saipem
• FEED Dubai based on Mk II

Quantafuel's next stage is built on the advanced process Mk II

DUBAI PROJECT TAKES POLE POSITION IN PORTFOLIO

Circular economy for waste plastics a reality at scale

• Start of FEED in Dubai with DUBAL Holding and BASF
• Capacity of 80,000t annually
• FID targeted for early 2023
• First materialisation of Mk II on actual plot
• Blueprint for future PtL plants in our portfolio

SUNDERLAND PROJECT PROCEEDING AS PLANNED

Quantafuel continues to receive strong support

• Planning Application submitted
• Site lease option signed
• Feedstock discussions extremely encouraging
• Initial discussions regarding EPC contractor
• Interest from financing partners
• Targeting individual developments without industry partner

PROJECT PIPELINE

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

QUANTAFUEL JOINS FORCES WITH SAIPEM

Top ten engineering major adopts Quantafuel technology for roll-out

• Saipem to globally market PtL plants under Quantafuel's technology license
• Agreement adds licensing model to Quantafuel's approach
• Removing capacity limitations
• Removing geographical limitations
• Project implementation capabilities strengthened
• Joint performance guarantees for the plant
• Agreement is non-exclusive for both partners

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

SKIVE

Improving operational cost and margin

• Operation has faced increased operational costs
• Key contracts already addressed
• Mitigation actions initiated with key focus points
• Securing feedstock volume with appropriate quality at a reasonable cost
• Optimise use of energy by replacing natural gas with selfproduced gas
• Minimise disposal cost of produced water and ash
• Confident in exiting 2022 with cash positive operation from Skive

KRISTIANSUND

Favourable demand and price level

• High demand and price level for mechanically recycled plastics
• Increase in production will soon bring us into a positive operation cashflow.

ESBJERG

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

• Successful financing process resulting in a 50/50 JV with Eurazeo committing EUR 40 million to the project
• Project is progressing well as construction has started
• 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 PtL plant

Large-scale sorting plant using proven & commercially available technology

Significant contributor to the

Taking control of the early value stream for plastic recycling in Denmark in a sustainable manner

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

FINANCIAL OUTLOOK

• NOK 468 million in cash per 30 June 2022
• Signed a EUR 40 million financing and JV with Eurazeo
• High interest for our plants and products
• High market prices offset by higher cost picture
• Maintaining target of positive operational cash flow from the plants within year end 2022

STRATEGY AND GROWTH

PLANT & PROJECT UPDATE

FINANCIALS

• MkII ready for roll-out
• Our strategic partners are on board
• Skive IP is instrumental
• FEED agreement for PtL plant in Dubai
• Adding licensing to our business model
• Joint venture and financing secured for Esbjerg sorting plant
• Positive operational cash flow from plants expected by year-end

LAUNCHING QUANTAFUEL MK II – THE ROLL-OUT BEGINS!

Questions & Answers

www.quantafuel.com IR@quantafuel.com