Additional offtake secured - adding appx MEUR 45 - 60 in future company EBITDA and successful renegotiation of pricing structure of offtake agreement completed.

10 Feb 2023 06:50 CET

Date: February 10, 2023

Announcement no: 5

ISIN: DK0061676400

NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN
OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS,
ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF COLUMBIA) (THE
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THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Additional offtake secured - adding appx MEUR 45 - 60 in future company EBITDA
and successful renegotiation of pricing structure of offtake agreement
completed.

In this announcement:

• Inclusion of additional two future waste plastic upcycling WPU facilities in
the Vitol offtake agreement
• Securing of revenue streams

Inclusion of additional two future waste plastic upcycling WPU facilities in the
Vitol offtake agreement
WPU - Waste Plastic Upcycling A/S (“WPU” or the “Company”) is pleased to
announce to have finalized an expansion of scope of the existing offtake
agreement with Vitol.

Reference is made to the Information Document dated April 21, 2022 regarding
Vitols offtake / purchase of pyrolysis oil from the three first WPU Upcycling
facilities (Fårevejle, Nakskov and Esbjerg) (hereinafter together the “Danish
facilities”).

Vitol has notified WPU that Vitol wishes to exercise its option to secure
additional WPU pyrolysis oil from two additional facilities in addition to the
Danish facilities.

Consequently, WPU has now sold all pyrolysis oil from the first 5 facilities
that upcycle plastic waste by use of the WPU technology.

The location of the additional upcycling facilities and the construction
timeline will be disclosed later. However, at this stage WPU expects that the
locations of these additional WPU facilities will be outside Denmark but within
the EEC and that the construction of the new facilities will be finished by the
end of 2026.

Construction of the two facilities is expected to add approximately MEUR 50 in
added CAPEX during the period of construction and equipment installation and
until in full production.

Once the two additional facilities are constructed and in full production it is
anticipated that the two facilities will add appx. MEUR 55 - 70 in added revenue
and MEUR in 45 - 60 in added EBITDA on a yearly basis.
Securing of revenue streams

In terms of the general market outlook resellers and petrochemical companies are
currently negotiating terms for hydrogen carbonate products such as the
pyrolysis oil produced by WPU and other plastic recyclers.
Indications show a new trend for mitigating the risk for mismatched contracts
throughout the full supply chain. Market participants are therefore seeking
contracts with a predominant fixed price element.
WPU welcomes this trend as is will further strengthen and validate the lifespan
economics of new facilities especially for low CAPEX / High Capacity producers
as WPU.

The original pricing structure in the offtake agreement with Vitol was highly
affected by changes in the Naphtha price. WPU and Vitol have therefore agreed an
adjustment of the pricing structure in the offtake agreement to include a
greater fixed price element, thereby limiting exposure to market fluctuations.

Since the listing of the Company in April 2022 the price of Naphtha has fallen
significantly.

WPU wish to stabilize revenue streams and enhance the probability and
transparency of the stipulated economic growth prospects of the Company.

This stabilization of economics will enhance the possibilities of securing prime
financing packages for future expansion as the economic growth prospects becomes
more transparent and predictable.
The new pricing structure will trigger a slightly higher price for the Products
of WPU based on the current level of the Naphtha.

Notwithstanding the foregoing the earnings has been adjusted to reflect the new
price structure.

With the new pricing structure, the economic outlook for a 6-reactor facility
like the one build in Fårevejle (on a full production) year can be stipulated as
follows:


MEUR
Revenue 16 – 18

Operating & Maintenance cost 2 – 3

EBITDA 12 – 17

Depreciations 1

EBIT 11 – 16

CAPEX 12 – 14

Tom Baker, Global Head of Naphtha trading at Vitol comments: “ Vitol is
committed to building a sustainable energy business for the future. Securing
pyrolysis oil from WPU is an important step for fulfilling the strong demand for
these products.”

Niels Stielund, Chairman of Waste Plastic Upcycling A/S comments: “Expanding the
scope for the Offtake agreement for future facilities and crystallize the
foreseeable economical outcome of future operations will empower WPU in the
negotiations regarding future financing of facilities.”

About WPU:

WPU Waste Plastic Upcycling A/S is a Danish company focused on upcycling plastic
waste to oil, that may be used as full range Naphtha or may be distilled to
kerosene/jet fuel. The strategy and main goal of Waste Plastic Upcycling A/S is
to upcycle end-of-life plastic waste by using its batch pyrolysis technology.
WPU aims for further expansion, in the European market as well as globally. WPU
is well positioned for this expansion with its proven technology that is
peer-leading in respect of low CAPEX, high yield and fast-paced construction
which will set the future standards in the growing market for plastic pyrolysis
within the waste plastic industry.

For further information, contact:

Klaus H Lindblad, Vice Chairman, Global Head of IR and Legal, e-mail:
KL@WPU-DK.COM.

Important notice:
This announcement is not and does not form a part of any offer to sell, or a
solicitation of an offer to purchase, any securities of the Company. Copies of
this announcement are not being made and may not be distributed or sent into any
jurisdiction in which such distribution would be unlawful or would require
registration or other measures. The securities referred to in this announcement
have not been and will not be registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act"), and accordingly may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Securities Act and in accordance with
applicable U.S. state securities laws. The Company does not intend to register
any part of the offering in the United States or to conduct a public offering of
securities in the United States. Any sale in the United States of the securities
mentioned in this announcement will be made solely to "qualified institutional
buyers" as defined in Rule 144A under the Securities Act. In any EEA Member
State, this communication is only addressed to and is only directed at qualified
investors in that Member State within the meaning of the Prospectus Regulation,
i.e., only to investors who can receive the offer without an approved prospectus
in such EEA Member State. The expression "Prospectus Regulation" means
Regulation (EU) 2017/1129 as amended (together with any applicable implementing
measures in any Member
State. This communication is only being distributed to and is only directed at
persons in the United Kingdom that are (i) investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities,
and other persons to whom this announcement may lawfully be communicated,
falling within Article 49(2)(a) to (d) of the Order (all such persons together
being referred to as "relevant persons"). This communication must not be acted
on or relied on by persons who are not relevant persons. Any investment or
investment activity to which this communication relates is available only for
relevant persons and will be engaged in only with relevant persons. Persons
distributing this communication must satisfy themselves that it is lawful to do
so. Matters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "believe", "expect", "anticipate",
"strategy", "intends", "estimate", "will", "may", "continue", "should" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believe that these assumptions were reasonable
when made, these assumptions are inherently subject to significant known and
unknown risks, uncertainties, contingencies and other important factors which
are difficult or impossible to predict, and are beyond their control. Such
risks, uncertainties, contingencies and other important factors could cause
actual events to differ materially from the expectations expressed or implied in
this release by such forward-looking statements. The Company does not make any
guarantee that the assumptions underlying the forward-looking statements in this
announcement are free from errors nor does it accept any responsibility for the
future accuracy of the opinions expressed in this announcement or any obligation
to update or revise the statements in this announcement to reflect subsequent
events. You should not place undue reliance on the forward-looking statements in
this announcement. The information, opinions and forward-looking statements
contained in this announcement speak only as at its date, and are subject to
change without notice. The Company does not undertake any obligation to review,
update, confirm, or to release publicly any revisions to any forward-looking
statements to reflect events that occur or circumstances that arise in relation
to the content of this announcement. Neither the Manager nor any of its
affiliates makes any representation as to the accuracy or completeness of this
announcement and none of them accepts any responsibility for the contents of
this announcement or any matters referred to herein. This announcement is for
information purposes only and is not to be relied upon in substitution for the
exercise of independent judgment. It is not intended as investment advice and
under no circumstances is it to be used or considered as an offer to sell, or a
solicitation of an offer to buy any securities or a recommendation to buy or
sell any securities of the Company. Neither the Manager nor any of its
affiliates accepts any liability arising from the use of this announcement. The
distribution of this announcement and other information may be restricted by law
in certain jurisdictions. Persons into whose possession this announcement or
such other information should come are required to inform themselves about and
to observe any such restrictions. This announcement is an advertisement and is
not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European
Parliament and of the Council of 14 June 2017 on prospectuses to be published
when securities are offered to the public or admitted to trading on a regulated
market, and repealing Directive 2003/71/EC (as amended) as implemented in any
Member State. This information is considered to be inside information pursuant
to the EU Market Abuse Regulation, and is subject of the disclosure requirements
of section 5-12 of the Norwegian Securities Trading Act.

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581938_WPUAnn 5 2023 Additional offtake secured and Price adjustment successfully negotiated exec.pdf