Li-Cycle Financials and Strategic Update slide image

Li-Cycle Financials and Strategic Update

Reconciliation 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
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