PureCycle Technologies, Inc.

Good morning, everyone, and thank you for participating in today's conference call. I would like to turn the call over to Mr. David Brenner as he reads the company's safe harbor statement within the meaning of the Private Security Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. David, please go ahead.

Thank you, and good morning, everyone. Welcome to PureCycle Technologies' first quarter 2021 corporate update conference call. I'm David Brenner, the Chief Commercial Officer here at PureCycle, and joining me today are Mike Otworth, PureCycle's Chairman and Chief Executive Officer, Michael Dee, Chief Financial Officer, Dustin Olson, Chief Manufacturing Officer, and Tamsen Edifah, Chief Sustainability Officer. We're here to discuss our recent corporate developments, highlighting activity from the first quarter, recent corporate actions, and our updated strategic plans. We will be using the slides to accompany today's call, which are accessible via a link on our website, purecycletech.com. During this call, certain statements we make will be forward-looking and based on management's beliefs and assumptions and information currently available to management at this time. These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions for forward-looking statements that can be found at the end of our first quarter 2021 corporate update press release issued this morning in our form 10Q filed, which will be filed today or later this week, and in our other reports on file with the SEC, and that provide further detail about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated, and except as required by law, we undertake no obligation to update any forward-looking statement. Our remarks today may also include non-GAAP financial measures. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, can be found in our slide presentation and in our first quarter 2021 corporate update release issued this morning. And with that, I turn the call over to Mike Otworth, our Chief Executive Officer.

Mike. Thank you, David. Good morning. We appreciate everyone's time who's listening in. And we are going to be presenting a deck of slides here. And I do realize that some people may just be calling in and don't have access to visually the slides. So I'll try to talk through them appropriately. You know, this first slide really highlights the fact that, you know, there is enormous global unmet need not being satisfied by existing technologies. The market generally wants recycled plastic that can be used without compromise. And by without compromise, I mean can be used essentially interchangeably with virgin resins. can be recolored, has the same physical properties as virgin resin, has no odor. And historically, although there have been a number of approaches that exist, most recycled polypropylene can only be used for lower value applications. And so this needs to change. With less than 1% of polypropylene being recycled, it's a wholly unacceptable situation, and PureCycle endeavors to change that, and we will change that. This next slide is titled Execution Roadmap. You can see that the technology has been in the process of development for over seven years now, and it was about 2015 that PureCycle obtained a license to the technology. The patent portfolio was largely filed in 2016, and then we started aggressively on the path of commercializing the technology. through initiating operation at our FEU in Southern Ohio to now where we are working on, not only are we working on building the first commercial scale plant in Ironton, Ohio, we've started line engineering on future plants, you know, and are working aggressively toward our goal of a billion pounds of installed and commissioned nameplate capacity for pure cycle operations. You know, it is exciting time for us in terms of execution. And we have been very purposeful in how we've assembled our team with expertise that we know can deliver on the execution plan. And, you know, I feel very comfortable about where we are, the team we've assembled to date, and where we're going. We're now moving on to slide three. I'm sorry, this is slide five in the deck. It's my third slide. But we're talking about a number of points here that I think are critically important to understand. And starting with the intellectual property that's at the core of PureCycle. I've been a part of evaluating IP portfolios for decades. You know, this was a very expertly assembled portfolio. a consortium of patents and intellectual property. And, you know, it's maintained by a procter and gamble company, and it's one of the best I've ever seen. You know, I also want to talk about de-risking. You know, we are continually looking for ways we can further de-risk our operations on all fronts. And while the muni bond financing for the first plant took some time, and I would say it wasn't without some pain, the things that we went through and the things that we had to achieve as part of the qualifications for that bond financing served us well in terms of de-risking. It required us to have offtake agreements. for the duration of the bond, 20 years. It required us to have feedstock supply agreements for that same duration of 20 years. We were required to endure very deep technical due diligence that is ongoing as part of the bond financing. So, you know, it did help us from the standpoint of achieving many things probably many emerging stage companies don't need to achieve and set the bar very high. I also want to touch upon the fact that, you know, it was evident to us from a very early date in the development of PureCycle that what we're endeavoring to do, and that is transform plastic recycling's in our case with polypropylene, globally is a big task. It would take a consortium of very powerful, capable, and experienced partners to enable us to do that. I couldn't be more proud of the group of partners that we've assembled. We assembled them very thoughtfully in terms of making sure we covered the landscape of areas where we would need help and assistance. And so all of these partners have done extensive due diligence on PureCycle, both from a business model standpoint, from a technical standpoint, and just from the standpoint of making sure they felt that our team was strongly committed and capable of execution going forward. And so Again, I would say I don't know that we could have done a stronger job in terms of who we picked as partners and how helpful they've been to us going forward. So we're going to transition to talking about technology. I'd like to introduce Dustin Olson. He's our chief manufacturing officer, and he'll walk you through a set of slides talking about where we are in terms of the technology and manufacturing and the playing forward. Dustin.