Pyrum Investor Newsletter 01/​2024

Dear share­hol­ders,

Welcome to the first investor news­letter of Pyrum Inno­va­tions AG!

With our news­letter, which will be published quar­terly from now on, we want to provide you with infor­ma­tion about the latest deve­lo­p­ments in our company and current projects as well as insights into our future plans and visions. And we will endea­vour to answer your most important ques­tions, which we receive.

Our 2024 busi­ness year has already got off to a very good start. While we started opera­ting our new plant in Dillingen and have already reached 75% of nominal output, we were also able to embark on the next chapter of our expan­sion course thanks to the finan­cing agree­ment recently concluded with BASF.

New plant in Saar­land in Perl-Besch on the Mosel

With the foun­ding of our subsi­diary “Pyrum Green­Fac­tory II GmbH”, we have paved the way for the expan­sion of our produc­tion capa­ci­ties with a second plant in Saar­land, Germany. By the end of 2025, the second Pyrum-owned pyro­lysis plant is to be built at the site in Perl-Besch on the Mosel, modelled on our plant in Dillingen, with a capa­city of 20,000 tonnes of end-of-life tyres (ELT) per year, which will double our exis­ting recy­cling capa­city. We have already received the posi­tive local council and muni­cipal reso­lu­tion with an abso­lute majo­rity and the new deve­lo­p­ment plan, which we have adapted in our favour, was also approved by the muni­cipal council with a large majo­rity. As part of a public presen­ta­tion at the new site in Perl-Besch, we also answered ques­tions from resi­dents, discussed the project with them and allayed any concerns. We are ther­e­fore very confi­dent that we will be able to start cons­truc­tion in the second half of 2024; we have already ordered plant compon­ents with noto­riously long deli­very times.

As the city had unde­re­sti­mated the impact of the water protec­tion area at our origi­nally planned loca­tion in Homburg and we were unable to obtain the neces­sary special permits and exemp­tions we had been promised, we are very happy to have found a new, very suitable loca­tion in Perl-Besch so quickly. We would like to thank the Saar­land state govern­ment, the Saar­land Economic Promo­tion Corpo­ra­tion, the muni­ci­pa­lity of Perl and the Hippert family.

Europe-wide expan­sion toge­ther with partners

In addi­tion to our expan­sion in Saar­land, we are also plan­ning further joint plants with our part­ners across Europe. Follo­wing the successful project acqui­si­tion phase of the last twelve months, nothing stands in the way of the reali­sa­tion of our concrete rollout plan with the start of cons­truc­tion of up to six plants by the end of 2025. On the project side, we are virtually “sold out” until the end of 2026 and are now looking forward to reali­sa­tion. These deve­lo­p­ments are not only proof of the success of our unique tech­no­logy, but also of our willing­ness to conti­nuously invest in the future of sustainable waste utilisation.

Finan­cing secured for further rollout

The finan­cing is the most important step towards the commer­cial rollout of our unique pyro­lysis tech­no­logy in order to be able to meet the high demand for our products in the future. The great support of our partner BASF, which has provided us with EUR 50 million – in two tran­ches of EUR 25 million each – as ramp-up finan­cing to enable us to realise our planned plants, deserves special mention here. This support is so important for us because we are curr­ently in a phase of the company where we are already far too big for venture capital finan­cing, but still some­what too small for many banks and project finan­ciers. The phase between proving that a new tech­no­logy works and gene­ra­ting stable results – i.e. the indus­trial rollout – is a very big chall­enge for compa­nies after the start-up phase in terms of finan­cing. Only with a stra­tegic partner and investor like BASF is it ther­e­fore possible for us to realise our growth course and thus over­come the phase of a lack of finan­cing options – the so-called “Valley of Death”. This opens up nume­rous finan­cing options for us. We are ther­e­fore very pleased about the valuable coöpe­ra­tion with BASF and the trust that BASF is once again placing in us with this new agreement.

Disap­poin­ting share price performance

Finally, I would like to respond to your ques­tions about our share price perfor­mance, which we receive on a regular basis. The fall in our share price affects me perso­nally the most, not only finan­ci­ally but also morally. I feel respon­sible for every fall in the share price, even though I have no direct control over it. Our main problem lies in the imba­lance between supply and demand for our shares, which are quite “market tight”. Although we have many share­hol­ders who buy our shares and only a handful who sell, these few, mostly insti­tu­tional sellers, sell signi­fi­cantly more shares than the buyers take up on the market. This is also supported by the fact that the number of Pyrum share­hol­ders has risen steadily since the IPO from just under 200 share­hol­ders in 2021 to more than 5,000 share­hol­ders at the begin­ning of 2024. In parti­cular, we see that US-funds are curr­ently with­dra­wing from the EU and espe­ci­ally from the ESG segment, which has also signi­fi­cantly increased the selling pres­sure on our share.

We are coun­tering this situa­tion by conti­nuing to inten­si­vely culti­vate and expand our investor network to attract new inves­tors to our share. In doing so, we are incre­asingly targe­ting insti­tu­tional inves­tors who we want to convince of our success story. Buil­ding long-term rela­ti­onships with insti­tu­tional inves­tors requires not only our high level of commit­ment but also a little time and trust. In addi­tion, we, the Pyrum Manage­ment, will continue to do ever­y­thing we can, both opera­tio­nally and stra­te­gi­cally, to achieve successful company deve­lo­p­ment and thus a posi­tive share performance.

I hope you have enjoyed this first issue of our investor news­letter, look forward to your feed­back and thank you for your inte­rest and trust in our company.

Yours, Pascal Klein

Pyrum Innovations AG

Contact us

IR.on AG
Frederic Hilke
Tel: +49 221 9140 970
E‑mail: pyrum(at)ir-on.com

Pyrum Inno­va­tions AG
Diesel­strasse 8
66763 Dillingen
E‑mail: presse(at)pyrum.net
https://​www​.pyrum​.net

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About Pyrum Innovations AG

With its patented pyro­lysis tech­no­logy, Pyrum Inno­va­tions AG is active in the attrac­tive recy­cling market for used tyres and various plas­tics. Pyrum’s pyro­lysis process is largely energy self-suffi­cient and, accor­ding to the Fraun­hofer Insti­tute, saves signi­fi­cantly more CO2 emis­sions than today’s stan­dard recy­cling processes for used tyres — espe­ci­ally compared to inci­ne­ra­tion in cement plants — and produces new raw mate­rials such as pyro­lysis oil, gas and recy­cled carbon black (rCB) from the waste used as input mate­rials. In this way, Pyrum closes the mate­rial cycle and pursues a 100% sustainable busi­ness model. As a pioneer, Pyrum Inno­va­tions AG was the first company in the waste tyre recy­cling sector to receive REACH regis­tra­tion from the Euro­pean Chemi­cals Agency (ECHA) for the pyro­lysis oil it produces back in 2018. This means that the oil is reco­g­nised as an offi­cial raw mate­rial that can be used in produc­tion processes. In addi­tion, Pyrum has received ISCC PLUS certi­fi­ca­tion for the pyro­lysis oil and the rCB. Both products are ther­e­fore reco­g­nised as sustainable and rene­wable raw mate­rials. Pyrum has also received ISO 14001 certi­fi­ca­tion for its envi­ron­mental manage­ment system and ISO 9001 certi­fi­ca­tion for its quality manage­ment system. These successes have also been reco­g­nised by inter­na­tional experts in the tyre industry. For example, Pyrum was hono­ured at the first Recircle Awards in the cate­gory Best Tyre Recy­cling Inno­va­tion and has been a fina­list for the German SME award three times in a row.