Li-Cycle Financials and Strategic Update

Made public by

sourced by PitchSend

1 of 29

Creator

Li-Cycle logo
Li Cycle

Category

Technology

Published

January 31, 2022

Slides

Transcriptions

#1NAN Investor Presentation June 2022 U-Cycle Li-Cycle PEOPLE, PLANET, PROFIT Empowering a Sustainable Future Li-Cycle R#2Disclaimer • FORWARD LOOKING STATEMENTS • Certain statements contained in this presentation may be considered "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1993, as amended, Section 21 of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as "will", "continue", "anticipate", "expect", "would", "could", "plan", "future" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this presentation include but are not limited to Li-Cycle's ability to capitalize on growth opportunities; the sufficiency of current liquidity for capital and operating needs for the current project pipeline; the expected timing of U.S. award funding for the battery sector supply chain; the expected timing of U.S. grants to support critical materials for battery production; the expectation that Li-Cycle will be a fully-funded, cash generating business by 2024; the expectation to have up to 65,000 tonnes of Spoke production capacity in commissioning in 2023; expected increased demand in scrap and battery recycling and metal supply deficit; annual input capacity and production output of the Rochester Hub, its expected start-up date and total capital cost; annual processing capacity of the Arizona, Alabama, Ohio, Norway and Germany Spokes and timing of commencement of their operations; and our target to meet or exceed black mass production of 6,500 to 7,500 tonnes during fiscal year 2022. These statements are based on various assumptions, whether or not identified in this communication, which Li-Cycle believes are reasonable in the circumstances. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle's inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle's inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle's inability to manage future global growth effectively; Li-Cycle's inability to develop the Rochester Hub, Alabama Spoke and other future projects including its Ohio, Norway, and Germany Spoke projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle's failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle's current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle's capital requirements in the future not being available to Li-Cycle on commercially reasonable terms or at all when it needs them; Li-Cycle expects to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle's operations; Li-Cycle's inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle's products; changes in the volume or composition of feedstock materials processed at Li-Cycle's facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle's revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle's insurance may not cover all liabilities and damages; Li-Cycle's heavy reliance on the experience and expertise of its management; Li-Cycle's reliance on third-party consultants for its regulatory compliance; Li-Cycle's inability to complete its recycling processes as quickly as customers may require; Li-Cycle's inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle's operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavourable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle's intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle's failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle's business are described in greater detail in the section entitled "Risk Factors" in its Annual Report on Form 20-F filed with the Ontario Securities Commission in Canada on January 31, 2022, and the Form 20-F filed with the SEC on January 31, 2022. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement. Ⓡ Li-Cycle 2#3Agenda Company Overview and Strategy Market Trends Supply Chain and Li-Cycle Competitive Advantages Li-Cycle Spoke & Hub Technologies TM Network Financial Appendix Ⓡ Li-Cycle 3#4Li-Cycle At-A-Glance: People, Planet, Profit Strategic Objectives Health and Safety Zero harm goal: Taking care of our employees, contractors and the community is our license to operate. Environmentally Sustainable Core to our culture: Our technology, operations and people support a global decarbonization and greener future. Profitable Growth Accretive returns: Capture growth at value for our shareowners. #1 A leading recycler of lithium-ion batteries and a sustainable alternative source of critical battery materials in North America¹ 2016 Founded by Tim Johnston and Ajay Kochhar 2021 Publicly listed in August (NYSE:LICY) Battery Materials Mega-Trends for Zero-Carbon Economy $509M Cash on Hand; ~$760M Pro Forma² 300+ Employees Globally Spoke & Hub Integrated Network³ 7 Spokes and 1 Hub in North America and Europe by 2023 Investment Highlights ☐ ☐ Sustainable Closed Loop Recycling Solution Proven and Patented Technology Speed to Market Commercially Contracted and Ready to Scale Robust and Integrated Customer Network Growing Electrified Market Domestic Supply of EV Revolution Battery Materials Li-Cycle Regulatory Tailwinds ☐ High Barriers to Entry ◉ ☐ Leadership Experience Compensation Tied to Execution 723 1) 2) 3) ESG 1 Collection of end-of-life batteries & scrap 2 Spokes recycle batteries & scrap into black mass 3 Hub to process into battery-grade nickel, lithium, and cobalt Based on installed permitted capacity for lithium-ion battery (LIB) recycling measured in tonnes per year. -$509 million cash on hand at April 30, 2022; $-760 million pro forma cash including $250 million investment in May and June 2022. Spokes expected to have a total of 65,000 tonnes of LIB processing capacity/year including four operational Spokes in 2022 and three operational Spokes in 2023; Rochester Hub expected to have 35,000 tonnes of black mass processing capacity/year or 90,000 tonnes LIB equivalent/year or 18 GWh with commissioning in 2023. Li-Cycle 4#5Strategy: Enabling a Circular Economy for Lithium-Ion Batteries Circular Economy: Recovering strategic and critical materials from lithium-ion batteries in a safe, environmentally friendly and economically sustainable manner Critical Source: Developing 'urban mining,' a sustainable alternative to current global mining practices, serving as a secondary source solution, based on patented Spoke & Hub Technologies™ Premier Partner: Go-to solutions provider for battery and vehicle OEMs' battery manufacturing scrap and end-of-life batteries requiring recycling Strategic Locations: Deploying an integrated network at regionally optimized locations that reduce costs and safety risks ע Sustainable Technology: Diverting lithium-ion battery materials from landfill sites and employing non-emitting hydrometallurgical versus traditional pyro processing methods Strategic Growth: Focusing near to mid-term assets in North America and Europe; Growing with commercial partnerships with leading global customers Ⓡ Li-Cycle 5#6Demand Expected to Grow Coupled with Deficit in Metal Supply 000's of Tonnes LIB Equivalent/Year Accelerating Recycling Demand North America and Europe 2025E TAM(1) 900 >200% 800 700 600 500 400 300 200 100 0 ~377 ~831 000's of Tonnes/Year Projected Metal Supply Deficit Estimated Global Deficit as of 2030E(2) Cobalt (50) (40) (100) (150) Nickel (200) As of 2021 As of 2022 (250) (229) Lithium (108) 72 1) 2) LIB - Lithium Ion Battery; Benchmark Mineral Intelligence (BMI) - March 2022, company sourced announcements and Li-Cycle estimates. Total Addressable Market (TAM) estimates as of Feb 2021 and May 2022, respectively. Source: BMI - March 2022 Li-Cycle 6#7Battery Supply Chain is Largely Controlled Outside of North America and Europe Primary Supply Sources by Top 3 Regions (1) Processing Capacity by Top 3 Regions (1) 100% 100% Others 90% 90% Others Others Others Argentina 80% China 80% Australia Others Belgium Others 70% Russia 70% Finland Chile Chile 60% 60% 50% Russia 50% 40% Democratic 40% Japan Indonesia Republic of Philippines 30% Congo 30% China China Australia 20% 20% China Indonesia 10% 10% 0% 0% Cobalt Nickel Lithium Cobalt Nickel Lithium 1) Source: International Energy Agency (IEA) - May 2021 Li-Cycle 7#8Government Recognition of Need for Sustainable, Domestic Supply U.S. Bipartisan Infrastructure Bill... ~$6bn in grants across the battery sector supply chain Funding awards expected Spring 2023 Presidential Determination ... ~$500mm investment to support critical materials for battery production Grants projected by early 2023 "Ensuring a robust, resilient, sustainable, and environmentally responsible domestic industrial base to meet the requirements of the clean energy economy, such as the production of large-capacity batteries, is essential to our national security and the development and preservation of domestic critical infrastructure." - President Joe Biden, March 31, 2022 Li-Cycle 00#9Creating the Path to Sustainable, Domestic Closed Loop Supply Chain Mining and Refining EV Battery Production Battery Metals Battery Materials Battery Cell OEM GLENCORE INTERNATIONAL AG ✓ Li-Cycle® 1 Vertically Integrated Solutions Integrated primary and recycled metals approach Partnership with Glencore to support industry with primary and recycled products 2 Scrap Scrap End- of-life LIB Recycling Spoke Hub LG Chem LG Energy Solution N Closed loop relationship - - - Secure scrap from LG battery production - Nickel off-take back to LG Li-Cycle 6#10Proven Technology and Expanding Commercial Ecosystem ◉ ◉ Proven Technology Patent protected hydrometallurgical technology Environmentally friendly alternative to existing pyro technology Lower cost of production and high recovery rates Recycling agnostic to battery chemistries and form factor Proven technology with speed to market - commercially operational Spokes; Hub Pilot Plant operational for one year Investor & Partner Diligence PERIDOT LG Energy Solution LG Chem KI KOCH GLENCORE INTERNATIONAL AG Expanding Commercial Ecosystem Broad and diverse battery supply relationships In-take and off-take agreements for Spoke & Hub outputs Ability to establish 'closed-loop' contracts Validated by leading global industry participants Select EV Customers (1) Battery In-Take ULTIUME Univar Solutions GLENCORE INTERNATIONAL AG NEW FLYER Output Off-Take(1) LG ΑΓ ΓΙAL TRAXY S TRAXYS LG Energy Solution LG Chem 1) Supply sources are selected illustrative examples and does not include all customers. Li-Cycle 10#11Key Operational Milestones for Spoke & Hub Network Completed Targeted Q3 2020 Ontario Spoke 5K tonnes Q2 2022 Arizona Spoke 10K tonnes 1H 2023 Germany Spoke 10K tonnes Q1 2021 2H 2022 1H 2023 New York Spoke 5K tonnes ■ Alabama Spoke 10K tonnes ■ Ohio Spoke 15K tonnes 1H 2023 Norway Spoke 10K tonnes Note: Spokes reflect quarters and semi-annual fiscal year while the Hub reflects calendar year. All Spoke capacity metrics refer to LIB input capacity per year. Calendar 2023 ■ Rochester Hub 35K tonnes Black Mass 1 HUB: FY 2023E 7 SPOKES: 65,000 tonnes LIB processing capacity/year processing capacity/year of 35,000 tonnes Black Mass or 90,000 tonnes LIB equivalent Li-Cycle 11#12Unlocking Significant Economic Value With Spoke & Hub Processing Steps Hub Output: Specialty Materials Spoke Output: Black Mass Input: Battery Materials Processing Steps Increasing Value Spread Discount to metal index price Spread relative to input cost of battery materials Premium to metal index price Pricing Dynamics Varies by content and metal index price Varies by content and metal index price Varies with type of battery grade material and metal index price Li-Cycle 12#131) 72335 2) 3) 4) 5) 105,000 95,000 85,000 75,000 65,000 55,000 45,000 35,000 25,000 15,000 Jan-21 Material Conversions and Projected End Product Production Metal Equivalent Hub Specialty Materials Outputs Priced at Premium Driven by Underlying Metal Content and Battery Grade Specifications GWh Equivalency(1) GWh Lithium-ion Battery (LIB) Equivalent(2) tonnes Expected Key Chemical Production - Rochester Hub(3) Black Mass Input Nickel Sulphate tonnes Cobalt Sulphate tonnes Lithium Carbonate Nickel ($/t)(5) Л Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 10,000 0 Cobalt ($/t)(5) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 -18 ~90,000 35,000 42,000 48,000 t/y 6,500 - 7,500 t/y 7,500 - 8,500 t/y 9,400 10,700 t/y 1,400 1,600 t/y N.A.(4) Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Converted from 90,000 tonnes LIB equivalent/year. Approximate conversion of Rochester Hub's 35,000 tonnes/y black mass capacity in terms of 90,000 tonnes LIB equivalent/year. Production ranges based on DFS estimates. Conversion factor of 4.48 tonnes of nickel sulphate : 1 tonne of nickel metal equivalent; 4.77 tonnes of cobalt sulphate : 1 tonne of cobalt metal equivalent. N.A. as lithium carbonate is the key product form and also the index price reference is expressed on a per unit of lithium carbonate basis (as opposed to a per unit of lithium metal basis) Material prices from January 2021 to June 10, 2022. LME Nickel Metal and Cobalt Metal, and Fastmarkets Lithium Carbonate. Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Lithium Carbonate ($/t)(5) Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Li-Cycle Apr-22 May-22 Jun-22 13#14Financing Strategy for Multi-Phase Growth Plan Operating Plan 2022 7 Spokes: 2023 Current Project Pipeline 65,000 tonnes LIB processing capacity/year 1 Hub 35,000 tonnes Black Mass processing capacity / year Future Spoke & Hub Network Expansion Financing Strategy Fully funded 2024 and Beyond Profitable, cash-generating business once operational Steady, Modular Network Expansion to Meet Customer Demand Near- to Medium-Term Continuing to evaluate multiple sources of financing available to us to optimize balance sheet and provide future flexibility, including debt-based alternatives (corporate debt, project financing, government funding, etc.) Medium-to Longer-Term Executing on operating plan expands breadth of financing alternatives to fund additional growth and optimize cost of capital Li-Cycle 14#15Leading Innovative and Sustainable Pure-Play Provider in Battery Materials Recycling and Resource Recovery Sustainably Closing the Battery Supply Chain Loop Proven and Patented Technology Speed to Market Robust and Integrated Customer Network Growing Electrified Market Commercially Contracted and Ready to Scale Regulatory Tailwinds High Barriers to Entry Leadership Experience Compensation Tied to Execution End-User Li-Cycle Technology Battery Supply Chain End-Products Li-Cycle 15#16Appendix Ⓡ Li-Cycle 16#17Solving Customer Battery Recycling Needs Amidst Robust TAM Growth Growing Battery Recycling Sources (1) NA and EU Accelerating Manufacturing Scrap TAM(2) 16% 3% 27% 54% LICY FY 2021A (1) End-of-life battery and manufacturing scrap sources: Battery Manufacturers EV OEMs & Service Providers to EV OEMS Consumer Electronics Recyclers 1) 2) 3) Tonnes LIB equivalent/Year 900,000 800,000 24% 700,000 600,000 TAM 2025E(2) 500,000 400,000 300,000 200,000 100,000 2% 4% 350,000 Consumer Electronics 300,000 70% Energy Storage Systems 250,000 Transportation OEMs 200,000 Manufacturing Scrap Measured by weight of input battery materials. 2023 Transportation OEMs, including Recalls BMI and Li-Cycle estimates' Total Addressable Market (TAM) forecast. Axis labels based on a conversion ratio of 90,000 tonnes LIB equivalent/year to 35,000 tonnes Black Mass. Manufacturing scrap demand derived from BMI and Li-Cycle's estimates. Manufacturing 150,000 Scrap (3) 100,000 2024 2025 Energy Storage Systems Consumer Electronics 50,000 Tonnes black mass/Year Li-Cycle 17#18Four North American Spokes (1) Expected to be in Operation in FY 2022, to Drive >3x Black Mass Production versus FY 2021 Operational In Development STROMV LT LION ELECTRIC Celectrovaya Kingston, ON BRITISHVOLT POWER ON ONTARIO 5K tonnes NEW YORK 5K tonnes Panasonic STELLANTIS LG Energy Solution LG Energy Solution ¡M3NY Rochester, NY TOYOTA ULTIUME ALABAMA 10K tonnes Ford Tuscaloosa, AL SK Envision AESC ultium cells LG Energy Solution microvast Gilbert, AZ ARIZONA 10K tonnes T 1) KOREPOWER Solid Power TESLA iM3NY OHIO 15K tonnes Warren, OH microvast ultium=cells Total Spoke capacity of 30,000 tonnes LIB equivalent/year is approximately equivalent to 6 GWh. Once fully operational, the four Spokes have the capacity to produce approximately 10,500 to 19,500 tonnes of black mass/y, assuming an illustrative conversion factor of approximately 0.35 to 0.65 tonnes of black mass per tonne of lithium-ion battery input (the conversion ratio is dependent on the form of lithium-ion battery feedstock - e.g., a full EV battery pack versus manufacturing scrap). Li-Cycle 18#19European Spokes (1) to Gain Strategic Foothold in High Demand Centers NORWAY 10K tonnes In Development GERMANY 10K tonnes K VERKOR northvolt Envision AESC RENAULT Germany асс FREYR AUTOMOTIVE CELLS Ca northvolt MORYOW Moss, Norway SVOLT AAA Leclanché Energy Storage Solutions FARASIS LMES MAGNA ENERGY STORAGE microvast LG Energy Solution CATL 1) Total Spoke capacity of 20,000 tonnes LIB equivalent/year is approximately equivalent to 4 GWh. Once fully operational, the two Spokes have the capacity to produce approximately 7,000 to 13,000 tonnes of black mass/y, assuming an illustrative conversion factor of approximately 0.35 to 0.65 tonnes of black mass per tonne of lithium-ion battery input (the conversion ratio is dependent on the form of lithium-ion battery feedstock - e.g., a full EV battery pack versus manufacturing scrap). Li-Cycle 19#20Spokes Process is Patented, Scalable and Easily Deployable. Close to Demand Lithium-Ion Batteries (Manufacturing scrap) | Neutralizing Solution Shredder Screen Shredded Plastics Plastics: Plastics to fuel or reuse Screen Metal Foils Filter Black Mass Copper/Aluminum foils: Copper and precious metals recovery Patented Black Mass Composition Black mass: Interim sales to nickel recovery; input to the Hub; easily transportable relative to batteries Li-Cycle 20#21COMPLETED Rochester Hub On Track for Commissioning in Calendar 2023 HNININK Li-Cycle Pilot plant run for one year Completed DFS(1) Completed contracts: E&P with Hatch and GC with MasTec Industrial Gained final air permit approval Purchased long lead equipment IN PROGRESS Continue to accelerate construction Continue to lock-in key construction materials Complete equipment procurement Mechanical completion Begin commissioning 1) Definitive Feasibility Study (DFS) completed in December 2021 for estimated cost of $485 million plus/minus 15%. Processing capacity/year of 35,000 tonnes Black Mass or 90,000 tonnes LIB equivalent. Expected annual production output of 42,000 - 48,000 tonnes Nickel Sulphate, 7,500 - 8,500 tonnes Lithium Carbonate, and 6,500 - 7,500 tonnes Cobalt Sulphate. Ⓡ Li-Cycle 21#22Experienced Li-Cycle Team With Successful Track Record and Leading Contracting Firms Executive Leadership, Team Bench Strength and Shareholder Alignment Executive leadership team oversees the entire project and understands detailed performance drivers + 45 years of combined project and engineering management in the metals industry + Robust history leading multi-disciplinary engineering teams and delivering successful projects In house team of 15+ with expertise and capabilities covering all key engineering disciplines + >300 years of combined experience in engineering, procurement, and construction management (EPCM) and will own/manage equipment, material, and services contracts, as well as Health, Safety, Environment and Quality (HSEQ) + Deep bench and expert proprietary knowledge to be deployed for future Hub projects Aligned with shareholders +Leadership meaningful equity ownership + Significant portion of corporate annual short-term compensation tied to target budget and schedule through completion Integration Engineer - Hatch HATCH World-class hydrometallurgy and capital projects expertise in North America Providing detailed design, procurement management, expediting services, and overall project management General Contractor - MasTec MasTec Infrastructure that Delivers Scale and experience with large capital projects in chemical and energy space with strong capability in leveraging local labor Providing procurement of materials and general and specialized labor, equipment, and services Li-Cycle 22 Ⓡ#23Reaction Tank / Agitator Rochester Hub Strategically Located and Agnostic to Black Mass Sources to Process Battery Grade Materials Black Mass الها الها الها I I Graphite I الها ┫ E E 8 الها Filter Press Solvent Extraction Mixer/Settler Crystallization Copper Sulfide Gypsum Manganese Carbonate Cobalt Sulphate Nickel Sulphate Sodium Lithium Sulphate Carbonate Li-Cycle 23#24Financials and Reconciliations ARO 41018 Li-Cycle 24#25Black Mass Production and Financial Results Reflect Accelerating Network Growth Black Mass Production Tonnes 8,000 Revenue (US$M) Fiscal year 2022 Annual target production 6,500-7,500 tonnes YTD Annual YTD 8,000 15.0 15.0 12.0 12.0 6,000 6,000 9.0 9.0 4,000 4,000 6.0 6.0 2,000 2,000 3.0 3.0 0 0 0.0 0.0 FY2020A FY2021A FY 2022E FY 1H21A FY 1H22A FY 2020A FY 2021A FY 1H21A FY 1H22A Net Profit (Loss) (1) (US$M) 50 0 -50 -100 -150 -200 -250 Adjusted EBITDA (2) (US$M) Annual YTD Annual 50 0 I 0 -10 -50 -100 -20 -150 -30 -200 -250 FY 2020A FY 2021A FY 1H21A FY 1H22A See "Reconciliation of IFRS and Non-IFRS Results" for an explanation of Adjusted EBITDA and reconciliation to the comparable IFRS measure. FY 1022 profit was driven by Fair value gain on financial instruments. 1) 2) Adjusted EBITDA is a non-IFRS financial measure. YTD 0 -10 -20 -30 -40 -40 FY 2020A FY 2021A FY 1H21A FY 1H22A Li-Cycle 25 Ⓡ#26Sufficient Liquidity for Capital and Operating Needs for the Current Project Pipeline $800 $700 Fiscal Q1 2022 to Fiscal Q2 2022 Pro-forma Cash Bridge $200 $759 $600 $50 $552 $509 -$17 $500 -$25 -$1 $400 $300 $200 $100 $0 Less: Operating Less: Other Add: LG Investment Cash Flow Q1 Cash Balance Less: Investing Q2 Cash Balance Add: GLEN Investment Cash Flow Proforma Q2 Cash Balance Li-Cycle 26#27Reconciliation of IFRS and Non-IFRS Results Adjusted EBITDA Net Gain (Loss) Income Tax Depreciation (U.S. dollar amounts in thousands) Six months ended April 30, 2022 2021 $7,896 5 $(14,693) 3,821 1,133 5,646 494 $17,368 $(13,066) Interest Expense (Income) EBITDA (Loss) Foreign Exchange Loss (Gain) - Fair Value (Gain) Loss on Financial Instruments (1) (53,733) 1,924 Forfeited SPAC Transaction Cost 2,000 Share-Based Compensation (2) Adjusted EBITDA Loss $(36,365) $(9,142) Year ended October 31, 2021 2020 $(226,559) $(9,276) 2,899 1,095 2,970 495 $(220,690) $(7,686) 758 (38,254) (446) 84 2,000 1,588 $(25,370) $(8,047) 1) Fair value gain on financial instruments relates to warrants, which were redeemed and no longer outstanding as of April 30, 2022, and convertible debt. 2) Share-based compensation relates to accelerated vesting of existing stock options upon completion of the Business Combination. Li-Cycle reports its financial results in accordance with the International Financial Reporting Standards ("IFRS"). The Company makes references to certain non-IFRS measures, including Adjusted EBITDA. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for the analysis of the Company's financial information reported under IFRS. Li-Cycle defines Adjusted EBITDA as earnings before depreciation and amortization, interest expense (income), income tax expense (recovery), foreign exchange (gain) loss, fair value (gain) loss on financial instruments, and non-recurring expenses such as forfeited SPAC transaction cost, listing fee, and accelerated vesting of share-based compensation related to the Business Combination. Li-Cycle 27#28LICY Share Count as of 4/30/2022 Total shares outstanding as of April 30, 2022 169,080,622 Potential shares reserved for future issuance: Convertible note (1) Stock options(2) Restricted share units (2) Total potential shares as of April 30, 2022 (2) 7,917,948 5,793,766 2,196,215 184,988,551 1) Includes interest accrued as of April 30, 2022. Excludes interest in subsequent periods that may be paid via payment-in-kind (PIK). 2) Includes stock options and restricted share units granted and outstanding as of April 30, 2022. Excludes additional shares available for future grants pursuant to the Company's equity incentive plan. Li-Cycle 28#29KONECRANES 15.00080 Revolutionizing Battery Recycling and Resource Recovery R Li-Cycle שר

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

1st Quarter 2021 Earnings Presentation image

1st Quarter 2021 Earnings Presentation

Technology

Rackspace Technology Q4 2022 Earnings Presentation image

Rackspace Technology Q4 2022 Earnings Presentation

Technology

CBAK Energy Technology Investor Presentation image

CBAK Energy Technology Investor Presentation

Technology

Jianpu Technology Inc 23Q1 Presentation image

Jianpu Technology Inc 23Q1 Presentation

Technology

High Performance Computing Capabilities image

High Performance Computing Capabilities

Technology

SOLOMON Deep Learning Case Studies image

SOLOMON Deep Learning Case Studies

Technology

1Q20 Earnings image

1Q20 Earnings

Technology

Nutanix Corporate Overview image

Nutanix Corporate Overview

Technology