Press release

Avantium Announces 2021 Results:

Significant business progress with green light to construct the

world's first FDCA Flagship Plant

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AMSTERDAM, 23 March 2022, 07:00 hrs CEST - Avantium N.V. (Euronext Amsterdam and Brussels: AVTX), a leading technology company in renewable chemistry, today reports its 2021 full-year results.

Key Business Progress in 2021:

  • Avantium Renewable Polymers announced a positive Final Investment Decision (FID) for the construction of the FDCA (furandicarboxylic acid) Flagship Plant, which was confirmed by shareholders at an Extraordinary General Meeting (EGM) on 25 January 2022:
    • Financial Close is expected by April 2022;
  • Avantium Renewable Chemistries recorded a number of promising developments in 2021, including: a signed partnership with the Cosun Beet Company for Ray Technology™; the construction of a bio- asphalt test road using lignin from Dawn Technology™ and; the successful pre-pilot testing of Volta Technology at partners' sites in Europe;
  • Despite ongoing travel restrictions and customers' site closures caused by the COVID-19 pandemic, Avantium Catalysis saw the start of a recovery in its Systems business (revenues: €6.8 million); the Services business was at the same revenue level as in 2020 (revenues: €3.2 million).

Key Financial Developments in 2021:

  • Total revenues increased by 11% to €10.9 million (FY 2020: €9.9 million), while income from
    government grants decreased by 20% to €6.7 million (FY 2020: €8.4 million), mainly due to income milestones from two major grant programmes in the Renewable Chemistries business segment being fully recognised in 2020;
  • Net operating expenses were €33.7 million in 2021 (FY 2020: €33.2 million);
  • Cash at 31 December 2021 was €34.9 million (31 December 2020: €26.6 million):
    • The increase in the cash position was due to the successful capital raise in April 2021, raising €27.8 million (gross proceeds) through an accelerated bookbuild;
    • Net cash outflow (excluding the capital raise) in 2021 was €18.1 million (2020: €18.8 million);
  • The loss for the period was €24.4 million (FY 2020: €22.8 million).

Tom van Aken, Chief Executive Officer of Avantium, comments: "2021 was a landmark year for Avantium, with the positive Final Investment Decision (FID) for the construction of our FDCA Flagship Plant announced in December 2021. This means that we will be able to start introducing our plant-based, recyclable and high-performance polymer PEF (polyethylene furanoate) to the market and start exploiting its massive market potential, as well as allowing us to sell technology licences to industrial collaborators. We have made great commercial progress across our businesses, and have expanded our partnerships, demonstrating the validity and value of our technologies. While global circumstances continue to pose uncertainties, we look to the future with optimism as we continue to advance and commercialise our sustainable technologies."

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Business Overview

Avantium Renewable Polymers

Throughout 2021, we worked hard to reach a positive Final Investment Decision (FID) for the construction of a 5-kilotonnes FDCA Flagship Plant, to be built in Delfzijl, the Netherlands. Avantium had identified three key conditions required for a positive FID: (i) securing sufficient financing, (ii) obtaining sufficient offtake commitments for the Flagship Plant, and (iii) finalising the engineering and establishing the supply chain. In early December 2021, Avantium secured a €90 million debt financing package from a consortium of Dutch

Avantium N.V., Zekeringstraat 29, 1014 BV Amsterdam, the Netherlands, +31 20 586 8080,

P.O. Box 2915, 1000 CX, Amsterdam, the Netherlands, info@avantium.com, www.avantium.com , C of C: 34138918

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banks (€15 million each) and the Dutch government-backed impact investment fund Invest-NL (€30 million), thereby meeting the final outstanding financing condition.

By the end of 2021, we had secured a total of €192.5 million, subject to Financial Close, to support the construction of an FDCA Flagship Plant. This funding came from a number of sources: (i) grants: a €20 million "PEFerence" Horizon 2020 grant1 and a €7.5 million National Programme Groningen grant, (ii) €30 million in third-party equity by minority shareholders Groningen consortium2 and Worley, together acquiring a 22.6% shareholding in Avantium Renewable Polymers, which represents a post-money valuation for the business unit of €132.5 million, (iii) €90 million in debt financing, and (iv) a €45 million equity investment by Avantium in its subsidiary Avantium Renewable Polymers, of which €26.5 million was already funded at 31 December 2021. The remaining outstanding contribution of €18.5 million to Avantium Renewable Polymers will be settled as part of Financial Close.

In 2021, Avantium Renewable Polymers secured conditional offtake commitments for half of the Flagship Plant's capacity, meeting the second key condition for the positive FID. Avantium now has contracts with speciality chemical company Toyobo (Japan), speciality polyester film producer Terphane (USA), beverage bottling company Refresco (the Netherlands), international rigid packaging supplier Resilux (Belgium) and an undisclosed major global food and beverage brand. Avantium also signed a collaboration agreement with Carlsberg Group in 2021, relating to the joint development of several PEF applications including Carlsberg's Green Fibre Bottle. To this end, Carlsberg decided to join the PEFerence consortium. In early 2022, world luxury goods leader LVMH Group (Moët Hennessy Louis Vuitton) also joined the PEFerence consortium, to further explore the potential of PEF as a sustainable packaging solution for LVMH beauty brands.

Avantium also finalised the engineering and supply chain arrangements for the Flagship Plant in 2021, thus fulfilling the third key condition for a positive FID. As planned, the front-end engineering and design (FEED) phase was completed by our engineering partner Worley. Avantium agreed an engineering, procurement and construction (EPC) contract with Worley in December 2021, with a delivery date of the end of 2023. This contract keeps Avantium on track to commence operations at the Flagship Plant in 2024. Avantium also signed a sub-leasehold agreement with Groningen Seaports for the land on which the Flagship Plant will be built. On 1 December 2021, the Groningen Environmental Service (ODG - Omgevingsdienst Groningen) published the draft environmental permit for Avantium's FDCA Flagship Plant, which became irrevocable on 9 March 2022. Following the signing of a multi-year FDCA polymerisation contract with specialty polyester supplier Selenis in 2020, Avantium has now secured a long-term agreement with agricultural cooperative Tereos, which will supply high-fructose syrup as a 100% bio-based and local feedstock for the Flagship Plant.

At the EGM on 25 January 2022, Avantium got overwhelming support from its shareholders for the positive FID. This enables Avantium to execute all relevant documentation, including, the investment documentation with the minority shareholders Groningen Consortium and Worley, and the debt financing documentation necessary to complete the transaction (Financial Close). Upon Financial Close, Avantium Renewable Polymers will be fully funded until the Flagship Plant becomes commercially operational, with the goal of becoming cash flow positive when scale-up of the production of FDCA and PEF at the Flagship Plant is achieved. Avantium expects to successfully reach Financial Close by April 2022.

Avantium Renewable Chemistries

Avantium Renewable Chemistries develops and commercialises innovative chemistry technologies based on viable, non-fossil sources of carbon. The business unit is home to three technologies: Ray Technology™, Dawn Technology™ and Volta Technology.

With its proprietary sugars-to-glycols Ray Technology™, Avantium produces mono-ethylene glycol (MEG) from plant-based feedstock - plantMEG™. MEG is a vital ingredient in the production of polyesters, widely used in textiles and packaging. Ray Technology™ also produces plantMPG™ (mono-propylene glycol), a valuable intermediate used in a wide variety of applications, such as industrial fluids. Having successfully commissioned Avantium's Ray Technology™ demonstration plant in 2020, Avantium Renewable Chemistries successfully validated applications for Ray Technology's plantMEG™ and plantMPG™ in April 2021. Key applications include, polymerisation to PEF and polyethylene terephthalate (PET) polyesters, and functional fluids used for de-icing and heat transfer. Avantium also achieved the significant milestone of

  • PEFerence has received funding from the Bio-based Industries Joint Undertaking (JU) under the European Union's Horizon 2020 research and innovation program under grant agreement No744409. The JU receives support from the European Union's Horizon 2020 research and innovation program and the Bio-based Industries Consortium.
    2 The Groningen consortium comprises Groningen Seaports and regional investment funds NOM (Investment and Development Agency for the Northern Netherlands), Fonds Nieuwe Doen, Investeringsfonds Groningen and Groeifonds.

Avantium N.V., Zekeringstraat 29, 1014 BV Amsterdam, the Netherlands, +31 20 586 8080,

P.O. Box 2915, 1000 CX, Amsterdam, the Netherlands, info@avantium.com, www.avantium.com , C of C: 34138918

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polymerising Avantium's FDCA with plantMEG™ to produce 100% plant-based PEF, which is further proof of the functional performance of Avantium's plant-based glycols.

In April 2021, Avantium and the Cosun Beet Company signed a term sheet to establish a joint venture to construct a first commercial plant to produce plantMEG™ and plantMPG™ using Ray Technology™. The term sheet describes the intention and conditions for the joint venture, in which the Cosun Beet Company plans to take a substantial share. Together, Avantium and the Cosun Beet Company aim to construct and operate the world's first commercial plant for the production of plant-based glycols, which we believe will be operational in 2026. The joint venture plans to acquire a technology licence from Avantium for Ray Technology™ and aims to establish a long-term supply agreement for the renewable sugar beet feedstock to be used in the commercial glycols plant.

Avantium recorded an accident at the Delfzijl Ray Technology™ demonstration plant in 2021. Two experienced operators were exposed to hazardous vapours as they carried out cleaning activities at the demonstration plant. They reported health complaints afterwards from which they are continuing to recover. Avantium halted operations at the demonstration plant while it carried out the necessary investigations and implemented changes to safety procedures, protocols and adjustments to the design of the Ray Technology™ demonstration plant. Avantium is now in the process of recommencing operations at the demonstration plant. Avantium expects this will not have significant ramifications for the scale-up to commercial manufacturing plants. Full details of the accident and Avantium's response can be found in the Avantium Annual Report 2021.

In the Dawn Technology™ pilot biorefinery in Delfzijl, Avantium converts forestry residues, originating from sustainable forestry management by Staatsbosbeheer, into industrial sugars and lignin. These industrial sugars are used as a raw material for the processes to produce a broad range of chemicals and materials. Lignin can be used for energy generation, and is also suitable for many higher value applications such as for bio-asphalt. In 2021, Avantium continued working to further develop Dawn Technology™ at the Delfzijl pilot biorefinery. Over the past year, Avantium de-risked the technology, explored up- and downstream integration and tested new feedstocks. In June 2021, infrastructure company (and CHAPLIN XL3 consortium member) Roelofs built a test section of public road made with bio-asphalt, which uses Dawn Technology™ lignin to replace fossil-derived bitumen. The new Dawn Drive in Groningen is 250 metres long and contains around 1 tonne of Avantium's lignin.

Also within Avantium Renewable Chemistries, is the Volta platform technology, which converts CO2 via electrochemistry into high-value ingredients including formic acid, oxalic acid and glycolic acid. In May 2021, Volta Technology was awarded a total grant of €1.78 million by the European Union's Horizon 2020 programme for the development of electrochemical processes and CO2-based polymers. This will be paid out over a period of four years and covers Avantium's participation in three consortia. CATCO2NVERS, CO2SMOS and VIVALDI4 all aim to cut the chemical industry's greenhouse gas (GHG) emissions through innovative and integrated technologies, including electrochemistry platforms such as Avantium's Volta Technology.

Avantium's Volta Technology also participates in the OCEAN consortium, which aims to use CO2 emitted by power plants to produce oxalic acid (which is the basis for various high-value chemicals). To this end, Avantium carried out mechanical and chemical testing on the functionality of a mobile Volta Technology container unit. In January 2022, Avantium installed the unit at a power plant in Germany. During a 6-months period, Avantium aims to convert 250g/hour of CO2, coming directly from a capture facility located at the power plant itself, into formate. This will in turn serve as a building block for high value products such as plastics. These pre-pilot containers are an ideal way to test Avantium's Volta Technology in real-world applications.

Avantium Catalysis

Just as in 2020, Avantium Catalysis was hampered in 2021 by the ongoing travel restrictions and customers' site closures caused by the pandemic. The Flowrence® systems operations were hit particularly hard, with Avantium technicians unable to visit customers' sites to install and commission the catalysis testing platforms. Nevertheless, in August, Avantium successfully completed its first-ever remote installation and

  • The CHAPLIN XL project is a collaboration between multiple industrial and academic parties. The aim of the collaboration is to test a new approach to substantially reduce CO2 emissions from road construction.
  • The CATCO2NVERS, CO2SMOS and VIVALDI consortia aim to reduce greenhouse gas emissions (GHG) from industry by developing innovative and integrated technologies based on electrochemical, enzymatic, and thermochemical processes. The consortium programmes have received funding as part of Horizon 2020 Europe under the Food and Natural Resources (FNR) programme under grant agreement No

101000580 (CATCO2NVERS), No 101000790 (CO2SMOS) and No 101000441 (VIVALDI).

Avantium N.V., Zekeringstraat 29, 1014 BV Amsterdam, the Netherlands, +31 20 586 8080,

P.O. Box 2915, 1000 CX, Amsterdam, the Netherlands, info@avantium.com, www.avantium.com , C of C: 34138918

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commissioning of a Flowrence unit in the USA via video link. This success opens up more opportunities to support customers efficiently for as long as travel disruption continues, and even beyond.

Avantium Catalysis also had to contend with disruption to the supply chains of key (sub)components and microchips. However, the Catalysis business unit managed this without a major impact on its operations. Overall, revenues from the Catalysis Systems business in 2021 amounted to €6.8 million.

The challenging global circumstances also affected the Refinery Catalyst Testing services. Demand remained low due to oil refineries running at reduced capacity, which meant they did not need to test new catalyst loads. Overall, the Avantium Catalysis Services business saw a similar level of sales to 2020, and generated €3.2 million in revenues.

Avantium Catalysis is also developing high-throughput solutions for liquid, gas, and respiratory adsorption. In 2021, the Catalysis business unit constructed and delivered a tailor-made testing unit for adsorption to IrceLyon. In the autumn of 2021, Avantium Catalysis joined the PROVE IT5 consortium, which aims to make existing CO2-to-methanol pathways more efficient and consequently to support the reduction of GHG emissions within the chemical industry. As part of this three-year project, Avantium's Flowrence technology will be used to optimise a proven process for catalytically converting off-gas CO2 into methanol - another significant contribution towards the circular economy. Avantium Catalysis received €291,000 for its participation in PROVE IT as an innovator in catalytic R&D.

Patents

Last year, 14 new patents were granted to Avantium. Additional patent applications were filed on features closely related to the commercial use of YXY® Technology, while a number of valuable patents on PEF applications were granted or filed, both in Europe and in the USA.

In February 2021, to build upon our progress towards establishing the YXY® Technology Flagship Plant, Avantium Renewable Polymers signed a patent licence agreement with Eastman Chemical Company, giving us the freedom to operate under its FDCA-related patent portfolio.

Further developments in Ray Technology™ were protected by the filing of several patent applications. Three new patents related to Ray Technology™ were granted in 2021. Together with the University of Amsterdam, Avantium is also seeking patent protection for new polymers and improved polymerisation methods arising from early-stage research. In 2021, six new patents for early-stage technologies were granted.

Investor Relations and Share Performance 2021

The Avantium share price ended 2021 at €5.40 (31 December 2020: €6.42). The total number of Avantium shares traded in 2021 amounted to approximately 24.9 million shares (25.7 million shares in 2020).

In April 2021, Avantium successfully raised €27.8 million (gross proceeds, €26.4 million net proceeds) in new capital through an overnight accelerated bookbuild offering, targeted at existing institutional shareholders and new institutional investors. Pricing of the capital increase was fixed at €5.35 per share price. The proceeds from this equity raise are to be used primarily for the FDCA Flagship Plant, including funding the balance of Avantium's committed €45 million contribution to Avantium Renewable Polymers equity. The remaining part of the net proceeds are being used for working capital and other general corporate purposes.

Organisation

Management Board Composition

At the Annual General Meeting of Shareholders (AGM) held on 19 May 2021, the shareholders approved the re-appointment of Tom van Aken as CEO and statutory member of the Management Board for a term of four years, ending at the close of the Annual General Meeting to be held in 2025. The Management Board consists of Tom van Aken (CEO) and Bart Welten (CFO).

Supervisory Board Composition

  • PROducts of Value from various CO2 sources, Enabled by Integrating Technologies

Avantium N.V., Zekeringstraat 29, 1014 BV Amsterdam, the Netherlands, +31 20 586 8080,

P.O. Box 2915, 1000 CX, Amsterdam, the Netherlands, info@avantium.com, www.avantium.com , C of C: 34138918

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Margret Kleinsman was re-appointed as a member of the Supervisory Board for a term of four years at the AGM held on 19 May 2021. In August 2021, the Supervisory Board proposed the appointment of Mr. Nils Björkman as a sixth member of the Supervisory Board. At the EGM held on 25 January 2022, Nils Björkman was appointed as Supervisory Board member for a term of four years. In 2021, the percentage of women on the Supervisory Board was 80%. With the appointment of Nils Björkman, Avantium complies again with the target of at least 30% male or female Supervisory Board members prescribed by Dutch legislation on gender balance.

Due to personal circumstances, Cynthia Arnold has notified the company of her decision to resign as Supervisory Board member as of 31st March 2022. Avantium is discussing with Cynthia ways to continue to have access to her valuable expertise and advice even after her departure from the Supervisory Board. The company will initiate a search process for a new Supervisory Board member.

COVID-19 impact on organisation

In 2021, Avantium closely monitored the Dutch COVID-19 guidelines and acted on all government directions as they continued to change throughout the year. As in 2020, Avantium used stringent hygiene practices in its offices and laboratories to keep people safe. During periods of remote working, the company paid extra attention to the mental and physical health of employees. Avantium continued to supply the equipment and support they needed to carry out their roles safely, comfortably and efficiently, whether at home or in the workplace.

The pandemic has emphasised the importance of embedding flexible working practices. As restrictions were eased and then were re-introduced towards the end of 2021, the company facilitated active dialogues between line managers and their teams on future ways of working at Avantium. The majority of employees expressed a clear preference for flexibility and hybrid-working options. In 2022, management will assess how to best manage this with the right balance of home- and office-working.

Sustainability

In 2021, Avantium began working towards the goals set out in its sustainability plan, Chain Reaction 2030, highlighting the company's ambitious vision to help achieve a fossil-free chemical industry by 2050. It identifies clear and ambitious targets for the future of Avantium's business. These include accelerating the drive for the company's technologies and operations to support the circular economy, and setting an example for responsible and sustainable business practices across the industry. The plan also includes details regarding the company's actions to empower its employees and to excite the next generation to accelerate the transition to a fossil-free world. These time-bound, measurable goals guide the company's decisions, raise accountability and generate tangible results for Avantium and its stakeholders. In the Annual Report 2021, Avantium initiated the reporting on its progress in meeting the outlined sustainability targets.

Avantium N.V., Zekeringstraat 29, 1014 BV Amsterdam, the Netherlands, +31 20 586 8080,

P.O. Box 2915, 1000 CX, Amsterdam, the Netherlands, info@avantium.com, www.avantium.com , C of C: 34138918

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Avantium NV published this content on 23 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2022 09:13:01 UTC.