Trading update Pryme N.V.

Rotterdam, March 20, 2024

Attached and below please find Pryme N.V.'s Trading update on March 20, 2024.

FY 2023 full year financials

After completing the pre-audit for the 2023 fiscal year ("FY") Pryme N.V.
("Pryme" or the Company") has decided to provide the following preliminary
estimates and unaudited figures for Q4, 2023 and FY 2023:
o	Q4 2023 and FY 2023 revenues of EUR 0 million as expected as the commercial
production from the Company's first plant is only expected to commence in Q2
2024 as previously communicated.
o	Q4 2023 EBITDA loss of approximately EUR 2.6 million and FY 2023 EBITDA loss
of approximately EUR 7.3 million. 
o	Q4 2023 EBIT loss of approximately EUR 9.9 million and FY 2023 EBIT loss of
approximately EUR 15.4 million. It should be noted that regular depreciation of
the Pryme One fixed assets commenced at the end of Q4 2023 following the
completion of the commissioning of Pryme One.
o	Negative Q4 2023 cash flow of approximately EUR 5.1 million and negative FY
2023 cash flow of approximately EUR 3.3 million. The breakdown of the Q4 and FY
2023 cash flows is as follows:
o	Q4 2023 cash outflow from investments of approximately EUR 6.3 million and FY
2023 cash outflow from investments of approximately EUR 13.9 million. 
o	Q4 2023 negative cash flow from operations (excluding working capital
movements) of approximately EUR 1.5 million and FY 2023 cash outflow from
operations of approximately EUR 6.4 million. 
o	Q4 2023 negative cash flow from financing activities of approximately EUR 0.4
million and FY positive 2023 cash flow from financing activities of
approximately EUR 15.4 million. 
o	Q4 2023 positive cash flow from changes in working capital of approximately
EUR 3.1 million and positive FY 2023 cash flow from changes in working capital
of approximately EUR 1.5 million. 
o	The outstanding spending on the Company's first plant as of the end of 2023 is
estimated to amount to around EUR 3-4 million.
o	Ending Q4 2023 cash balance of approximately EUR 8.2 million.
o	Ending Q4 2023 equity balance of approximately EUR 39.5 million.
o	Ending Q4 2023 non-current assets of approximately EUR 53.3 million and
current assets of around EUR 9.7 million.

The changes in the Q4 and FY 2023 financials are cash flow neutral and mainly
involve reclassifications of ground lease assets to intangible assets, a partial
write down of assets associated with the Amsterdam site and offsetting increases
and decreases of deferred tax assets and liabilities, respectively. Further
details will be provided in Pryme's 2023 annual report which is scheduled to be
published on May 6, 2024.

Pryme One operational update

Following the completion of Pryme One, the Company's first plant, in early
January 2024, first oil was produced on January 19th, 2024 albeit through
so-called cold feeding of the reactor. This encompassed feeding the reactor
directly with cold plastic waste instead of feeding the reactor with melted
plastic waste through one of the Company's two extruders. This was followed by a
second day of production where the entire production process was utilized
including one of the extruders to feed hot (around 300°C) melted plastic waste
into the reactor. The initial production run using the entire production process
went flawlessly. During these two days with a combined 6 hours of feeding the
reactor, approximately 8 metric tons of plastic waste was processed and around 6
metric tons of pyrolysis oil was produced. After two days of successful
production, the process was halted for a thorough check of all equipment by the
Pryme team. The purpose of this is to scrutinize the performance of each
component of the Pryme One production facility and to examine whether "wear and
tear" issues will arise, how often components need cleaning, and the overall
integrity of the production equipment including all seals, gaskets and piping.
This check is expected to last into the early days of April 2024 after which the
Company plans to commence continuous production. First shipment of pyrolysis oil
to customers is expected to take place in April 2024. Overall, the Company
expects to reach production volumes of up to 1,500 tons of pyrolysis oil in Q2
of 2024, with steadily increasing volumes throughout Q3 and Q4 of 2024.

As mentioned in earlier disclosures, the startup of production at Pryme One is a
three-phase process. Phase one was the initial startup of the plant through cold
feeding the plastic waste feedstock. Phase two commenced with the start-up of
the extruder and is expected to last until early in Q3, 2024. During phase two,
production volumes are expected to show a steady increase but remain limited.
During phase three, which is expected to commence during Q3, 2024, the Company
plans to approach the nameplate capacity of the plant.

The Company is excited to report that based on physical observations, the
pyrolysis oil is very liquid even at low temperatures and the ashes are
odorless, dry and free flowing. These are all signs of a complete and effective
pyrolysis process. Pryme One has not experienced any issues with waxing in the
condensation unit confirming a complete pyrolysis process in the reactor.

Pryme is proud to have successfully achieved mechanical completion and the start
of production in what today is the largest advanced recycling plant to process
plastic waste into pyrolysis oil in Europe.

Plant economics for Pryme One and further plants

The renegotiation of the supply contract and the early production in Pryme One
have both improved and increased our confidence in the expected plant economics
for Pryme One and Pryme Two/Three. The combined effect of the revised terms of
the supply contract and the observed reactor performance of Pryme One have thus
resulted in a positive shift in the financial projections of the Company. The
revised expected plant economics can be found in the table below. 

please refer the pdf-version of this Trading update for the table]
 
As can be derived from this table, the plant operations of Pryme One are
expected to break even in the second half of 2024 as volumes ramp up. As
mentioned, the early insights from Pryme One's short production runs have added
comfort to Pryme's projections for Pryme Two/Three.

It should be noted that the Pryme One and Two performance levels at nameplate
capacity are based on using the non-condensable gases, which is currently not
foreseen for Pryme One.

Focus on the construction of additional plants

With the successful completion of Pryme One and the subsequent encouraging start
of production, Pryme is broadening its scope and activities. Having done much
groundwork on R&D, securing the right feedstock and building capability, lately
the focus has been primarily, if not entirely, on completing the construction
and commissioning of Pryme One. Having started production, the priorities of the
Company will now broaden and focus on three activities: 1) optimizing the Pryme
One plant operation, 2) defining and executing the Company's growth strategy and
3) ensuring adequate funding for Pryme's growth strategy. This is the next step
in building Pryme as a company that aims to become a major player in the
chemical recycling space.

The shift from an almost exclusive focus on getting Pryme One operational to
growing Pryme as a company is truly exciting. At the same time it requires
additional internal skillsets and resources. The Company has a plan in place for
this.

As part of defining and executing the Company's growth strategy, early work has
made it possible for Pryme to identify multiple potential future production
sites. These include five sites in the Netherlands, Germany, Belgium and in the
UK. Pryme's preference is to select brown-field or co-location sites rather than
green field undertakings. For two of these sites Pryme has begun activities
beyond initial surveying.  A feasibility study has been externally contracted
for one site and for the other site Pryme has entered into a reservation
agreement. Assuming successful initial feasibility studies, the next steps will
be to seek and apply for operating permits. Site-independent design and
engineering activities will be progressed in parallel. Given the long lead times
for constructing new plants, the Company is prioritizing this upfront work in
order to capitalize on Pryme's advantaged technical and operational position.

It is Pryme's intention to finalize feasibility studies, obtain permits and
conclude on project approvals for two or more plants within the next 12-15
months, obviously depending on adequate funding being obtained. With this in
mind, startup of production at Pryme's next plant can be estimated to take place
in the second half of 2027.

Change in staffing and organizational expansion

In order to deliver on the broader set of priorities of the Company, Pryme plans
to expand its organization and secure the staff resources for developing future
sites and building additional plants. Such organizational growth will take place
in the technical, operational, project management and commercial areas. Pryme
aims to leverage on the skills of the Company's existing staff and bring
additional personnel on board where specific expertise or additional capacity is
required. 

As has been announced in a separate disclosure, Christopher Hervé, Pryme's CEO
has given notice. Christopher will stay on board until the end of July 2024 and
ensure the proper startup of Pryme One. The Company has initiated a search for a
CEO with a search profile that matches the Company's priorities as detailed
earlier in this trading update.

Christopher has been instrumental in the construction of and the startup process
of Pryme One and will play a key role in the optimization of Pryme One until his
departure date. Pryme is very grateful for Christopher's contributions, without
which the Company would not have reached the successful startup of Pryme One.

Cash Flow forecast and Liquidity

The Company has estimated the quarterly cash flows until Q2 2025 as per the
table below. This assumes a steady ramp up of volumes in Pryme One as well as
increasing SG&A costs and 2025 investments in conjunction with the preparation
and development of sites for future Pryme plants. 

please refer the pdf version of this Trading update for the table]
 
It should be noted that the cash breakeven point for the Pryme One operation is
expected to be achieved in the second half of 2024 when the production rate
reaches around 40 tons per day. The funding activities line item is further
described in the "Funding" section below.

Funding

Pryme estimates that its funding needs amount to around Euro 11-12 million until
the Company has finalized concrete plans for its next two or three plants at
which time it expects to seek funding for its next plants. By that time the
Company estimates, through the Pryme One operation, that it will be operating at
a level of more or less cash breakeven including the SG&A overhead. As can be
derived from the above estimated cash flows until Q2 2025, the Euro 10-12
million range provides for a buffer of around Euro 2 million at the lower end of
the range and, naturally, additional flexibility at the higher end of the range.

The Company's plans to partly fund the Euro 11-12 million by undertaking an
unsecured loan of around Euro 5 million with a tenure  of around 3œ years. The
terms and conditions of such loan have in principle been negotiated and agreed
to.

The remainder of the funding need, Euro 6-7 million, is expected to be raised
through an equity increase in the form of a private placement ("PP") in the near
term. Expected participants are large existing shareholders and external
strategic investors. Based on strong investor interest and their preferences, it
is likely that such PP amount may be increased to a higher amount than the Euro
7 million upper end of the Company's funding needs form the PP. Pryme expects to
complete such PP before the end of April of 2024.

Conclusion and Summary

Pryme is proud of its achievements to date and the future plans of the Company.
The highlights in Pryme's recent achievements and current plans can be
summarized as:
o	First oil produced in January 2024
o	Commencement of phase two of the ramp up plan in February 2024 after
successfully running the full production process in continuous operating mode.
o	Completion of the renegotiation of a key sales contract.
o	Improvement of and further confidence in Pryme's expected economics for its
current and future plants.
o	Early formulation of a growth ambition and rollout plan with specific site
projects to be developed in the near term.
o	Pryme expects to raise Euro 11-12 million in order to fund operations and the
development of future sites through a combination of equity and debt before the
end of April of 2024. 

This information is considered to be 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 20 March 2024 at 20:00 CET on behalf of the Company.

Disclaimer: Forward Looking Statements
This trading update (the "Trading Update") is produced by Pryme N.V. (the
"Company" or "Pryme") and contains several forward-looking statements relating
to the business, financial performance and results of Pryme, its subsidiaries
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",
"projected", "plans", "forecasts", "estimates", "anticipated", "targets",
"will", "continue" and similar expressions. Forward-looking statements may
include statements regarding Pryme's objectives, goals, strategies, outlook and
growth prospects