Avantium focuses on maximising the potential of its FDCA and PEF technology

Avantium is reaching the inflection point

1. The Company is fully focused on launching commercial operations at its FDCA Flagship Plant: o The time schedule for the project remains in line with previous guidance, with commissioning activities expected to commence in the first quarter of 2024 and FDCA production in the second half of 2024; o To date, Avantium has signed 15 commercial offtakes agreements for FDCA and PEF from the FDCA Flagship Plant, for a diverse range of applications;
2. The FDCA Flagship Plant serves as a stepping stone in Avantium's licensing strategy: o Avantium has already entered into its first licensing agreement with Origin Materials and the Company has developed a pipeline of potential licensing partners; o To enable the rapid deployment of FDCA and PEF in line with the demands of the market, Avantium aims to sell multiple technology licenses;
3. Assuming the successful start-up of the FDCA Flagship Plant in 2024 and the sale of multiple technology licenses, management’s ambition is that the Company could generate €100 million in revenues i and be EBITDA positive in 2026.

Avantium is reinforcing its strategic focus

1. The Company is prioritising the commercialisation of its FDCA and PEF technology and the acceleration of its licensing strategy: o Avantium will focus its resources on the start of FDCA production in the second half of 2024 and the acceleration of its licensing business, to fully benefit from the commercial opportunity for PEF market adoption which is showing strong momentum;
2. As a result, further investments in the Ray Technology™ to produce the plant-based glycols, plantMEG and plantMPG, have been put on hold until appropriate strategic equity partners have been secured: o The Company will reallocate some of its Ray Technology™ employees to the FDCA Flagship Plant project in Delfzijl, allowing the FDCA Flagship Plant to be immediately fully staffed. The decision to halt investments in the Ray Technology™ will regrettably result in workforce reductions in Avantium’s organisation in Amsterdam.

Securing additional financing for the FDCA Flagship Plant

1. The total expected costs for Avantium Renewable Polymers, including the construction of the FDCA Flagship Plant, are now estimated to amount to approximately €255 million by the end of 2024, an increase of approximately €63 million compared to the initial forecast of €192 million; these cost increases have been primarily driven by inflation, interest rates and supply chain disruption being experienced by EPC construction projects all around the world;
2. Avantium Renewable Polymers, which is the entity responsible for the FDCA Flagship Plant, has successfully received commitments for a €64.5 million financing package from its shareholders (Bio Plastics Investment Groningen (BPIG) consortium, Worley and Avantium N.V.) and from its lenders, to cover the anticipated cost increases until the FDCA Flagship Plant is operational.
3. In order to cover its share in the financing package for Avantium Renewable Polymers and to remain properly capitalised until the FDCA Flagship Plant is fully operational, Avantium intends to raise €50 million in equity capital.