Pryme Trading Update

28 Nov 2024 18:00 CET

Pryme Trading Update

Rotterdam, November 28, 2024

Following Pryme N.V.’s (“the Company”) trading update dated October 29, 2024,
Pryme has conducted a detailed analysis of operational data from its first
plant, Pryme One. This analysis has informed revised projections for the plant’s
operational performance and has provided critical insights for the design of
future plants.

Pryme One: Operational Update

As previously communicated, the projected usable capacity of Pryme One is
approximately 17,000 tons of pyrolysis oil per year. While this is lower than
earlier estimates, the primary purpose of Pryme One is to serve as a
demonstration plant, validating Pryme’s proprietary technology and providing
essential input for the design of future, larger-scale facilities.
The gradual production ramp-up is progressing, with plans to systematically
address operational bottlenecks throughout 2025. Pryme anticipates that Pryme
One will approach its usable capacity by the end of 2025. Based on current
pricing agreed with the Company’s customers, this capacity level is expected to
generate a positive annualized EBITDA at the plant level in 2026. However, it is
important to note that the overall consolidated EBITDA for Pryme N.V. will most
likely remain negative while the Company only has Pryme One in operation unless
more attractive commercial terms are achieved with its customers and suppliers.
In view of this, the Company is in the process of renegotiating its customer and
supplier contracts.
Pryme produced 100 metric tons of pyrolysis oil in October and November 2024
leading to a YTD pyrolysis oil production of 336 metric tons. Pryme does not
expect to produce meaningful volumes of pyrolysis oil for the remainder of 2024
due to extensive work on the Pryme One plant.

Future Plants: Pryme Two

Pryme’s focus and ambitions remain to leverage the insights from Pryme One in
order to refine the technical and economic designs of Pryme Two, the Company’s
anticipated next plant. While site selection studies completed earlier in 2024
identified potential locations in northern Europe, specific plans for Pryme Two
are still under development. This next plant is anticipated to feature 3-5
reactor trains with an expected annual output capacity of around 50,000-80,000
tons of pyrolysis oil.
Given the adjustments to the reactor-train capacities and other design elements
of Pryme One, the capital expenditure for Pryme Two is now anticipated to be
significantly higher than initially estimated. The Company aims to balance this
increased investment with attractive overall production costs, supported by the
technical and operational insights from Pryme One. Given these changes, the
Company’s previous guidance for the expected economics of the Company’s future
plants is no longer valid.

Strategic Focus and Rollout Plan

The Company’s immediate priority is the successful ramp-up and optimization of
Pryme One. Specifically, the Company will seek to validate and optimize the
usable capacity and related operational parameters for Pryme One such as the
feedstock to oil yield rate, currently assumed to be around 65%, and the overall
plant intake capacity. Insights gained from this process will form the
foundation for refining the technical concept for Pryme Two. Consequently, plans
for additional plants (Pryme Three and Four) will remain on hold until the
technical concept for Pryme Two is finalized and sufficient funding has been
secured.

Funding

As outlined in the October 2024 trading update, the slower production ramp-up of
Pryme One has led to lower cash flows than initially expected. To address this
liquidity shortfall and fund ongoing early engineering work for Pryme Two, Pryme
intends to undertake a capital increase of approximately EUR 8-10 million as
soon as practicable. This funding is critical to support operations until Pryme
One achieves cash breakeven, targeted for late 2025 or early 2026, subject to
external variables as described above, and to refine the technical and economic
designs of Pryme Two.

Other updates

As per the date of this trading update,
• The Company had a cash balance of EUR 7.4 million.
• The net loss for October 2024 amounted to EUR 1.9 million and we expect the
November 2024 losses to be similar to the October 2024 losses.
• The operational cash-burn for October was EUR 0.8 million and the expected
November 2024 operational cash-burn amounts to EUR 1.4 million. The lower
cash-burn rate in October was caused by the receipt of an advance subsidy
payment for project Electro.
Unless the Company achieves improved commercial terms with its customers or
suppliers, the Company may need to partly impair the Pryme One asset value at
year-end 2024.

The Company will publish its quarterly report for the fourth quarter of 2024 on
February 26, 2025.

Disclaimer
This disclosure (the "Disclosure") has been produced by Pryme N.V. (the
“Company” or “Pryme”). This Disclosure and any information contained herein or
provided in this Disclosure are being made available for informational purposes
only, and may not be distributed to any other person, reproduced, published or
used in whole or in part for any other purpose. It does not constitute, and
should not be construed as, any offer or invitation or recommendation to buy or
sell any of the securities mentioned or described herein. No representation,
warranty, or undertaking, express or implied, is made to, and no reliance should
be placed on any information, including projections, estimates, targets and
opinions, contained herein, and no liability whatsoever is accepted as to any
errors, omissions or misstatements contained herein, and, accordingly, the
Company accepts no liability whatsoever arising directly or indirectly from the
use of this Disclosure, or its contents or otherwise arising in connection
therewith.
All information in this Disclosure is subject to verification, correction,
completion and change without notice. In publishing this Disclosure, the Company
undertakes no obligation to provide the recipient with access to any additional
information or to update this Disclosure or any information or to correct any
inaccuracies in any such information.
This Disclosure contains several forward-looking statements relating to the
business, financial performance and results of the Company and/or the industry
in which it operates. Forward-looking statements concern future circumstances
and results and other statements that are not historical facts, sometimes
identified by the words “believes”, expects”, “predicts”, “intends”,
“projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”,
“will”, “should”, “may”, “continue” and similar expressions. Forward-looking
statements include statements regarding objectives, goals, strategies, outlook
and growth prospects; future plans, events or performance and potential for
future growth; liquidity, capital resources and capital expenditures; profit;
margin, return on capital, cost or dividend targets; economic outlook and
industry trends; developments of the Company’s markets; the impact of regulatory
initiatives; and the strength of the Company’s competitors. The forward-looking
statements contained in this Disclosure, including assumptions, opinions and
views of the Company, are based upon various assumptions, including without
limitation, management’s examination of historical operating trends, data
contained in the Company’s records and other data available from third party
sources. Although the Company believes that these assumptions were reasonable
when made, the statements provided in this Disclosure are solely opinions and
forecasts that are uncertain and subject to risks, contingencies and other
important factors which are difficult or impossible to predict and are beyond
its control. A number of factors can cause actual results to differ
significantly from any anticipated development expressed or implied in this
Disclosure. No representation is made that any of these forward-looking
statements or forecasts will come to pass or that any forecast result will be
achieved, and you are cautioned not to place any undue reliance on any
forward-looking statement. The information obtained from third parties has been
accurately reproduced and, as far as the Company is aware and able to ascertain
from the information published by that third party, no facts have been omitted
that would render the reproduced information to be inaccurate or misleading.
This Disclosure has not been reviewed, approved, authorized or registered with
any public authority, stock exchange or regulated marketplace.

This announcement is considered by the Company to include inside information
pursuant to the EU Market Abuse Regulation and is subject to the disclosure
requirements pursuant to section 5-12 the Norwegian Securities Trading Act. This
stock exchange announcement was published by René de Graaf, General Counsel of
Pryme N.V., on November 28, 2024 at 18:00 CET on behalf of the Company.

More information:
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633452_Pryme N.V. - Trading Update 28 November 2024.pdf