Origin Materials, Inc. Q2 FY2024 earnings call

• Commercialization update: Caps and closures business making progress; first signed customer for PET caps with over $100M revenue expected in initial two-year term, ramping 2025-2026; plan to build capacity beyond initial system purchases; negotiating licensing agreements; on track for Q4 2024 commercial production, revenue start Q1 2025; crossed 1 million caps produced milestone.
• Partnerships: European partnership with Bachmann Group, North American partnership with Reed City Group, joining previously announced partners PackSys Global and IMDvista.
• Biomass conversion technology: Continuing development work with partners using CMF and HTC samples; executing thesis to make flexible, low-cost sustainable molecules.

No detailed financial performance by product segments provided in terms of absolute numbers and revenue contribution % in the transcript.

• 2024 net cash burn expected between $55 million and $65 million.
• Caps and closures to generate revenue from Q1 2025, with significant gross profit generation beginning in 2025; on track to be cash positive with existing cash resources, eliminating need for equity capital raise.
• Anticipate caps and closures revenue in 2025 to be significant, recurring, driving to overall cash positive operations.

• Forward-looking statements subject to risks and uncertainties where actual results could differ materially from expectations.
• Refer to SEC filings for material risks and other important factors affecting financial results.

Q: Where are you seeing the most interest in the products coming out of Origin 1?

A: Focused more on furan and HTC; seen performance improvements and unique functionality in furan-based products; still interest in bio-base and lower carbon polyester but focus on differentiated furanics.

Q: Can you provide any additional color on OM2-related discussions and progress on Origin’s capacity expansion strategy?

A: Varied directions for Origin furanics platform based on commercial drivers; geographic location, scale, partner, feedstock can change next step; reading off commercial environment and partner discussions.

Q: Has a buyer been lined up for the caps? Why haven’t any offtake agreements been executed?

A: First big caps customer announced; robust pipeline of potential customers including licensing partners; high demand, customers deep in process engaging in scale-up trials.

Q: What do I have to look forward to in the next six months?

A: Additional customer announcements, commercial production of caps starting, revenue ramp.

Q: Why should I continue to hold this stock despite the performance over the last year of the stock?

A: Confidence in technology, talent, possibilities; personal investment in shares as an indication of belief in the company's potential