Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries

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Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Supplying Demand and Transforming a Market
Investor Presentation
October 2018

NASDAQ: LOOP

                  This presentation is the property of LOOP Industries, Inc. All content is considered confidential. All dollar amounts are in USD.
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Disclaimer
              This presentation of Loop Industries, Inc., a Nevada corporation (“Loop”, the “Company,” “we,” or “our”), contains “forward-looking statements,” as defined in the U.S. Private
              Securities Litigation Reform Act of 1995. Such statements may be proceeded by terminology such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”,
              “anticipates”, “believes”, “hopes”, “estimates”, “predicts”, “potential” or “continue” or comparable terminology. These forward-looking statements include, without limitation,
              statements about our market opportunity, our strategies, ability to improve and expand our capabilities, competition, expected activities and expenditures as we pursue our
              business plan, the adequacy of our available cash resources, regulatory compliance, plans for future growth and future operations, and the size of our addressable market and
              market trends. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,
              performance or achievements. Actual results may differ materially from those discussed in these forward-looking statements. The economic environment within which we
              operate could materially affect our actual results. Forward-looking statements are inherently subject to risks and uncertainties, which cannot be predicted or quantified. These
              risks and other factors include, but are not limited to: (i) commercialization of our technology and products, (ii) development and protection of our intellectual property and
              products, (iii) our ability to develop our brand, (iv) our need for and ability to obtain additional financing, (v) industry competition, (vi) regulatory and other legal compliance,
              (vii) the exercise of control over us by Daniel Solomita, our President and Chief Executive Officer, Chairman of the Board of Directors, and majority stockholder, (viii) other
              factors over which we have little or no control; (ix) our ability to remedy our material weaknesses in internal controls over financial reporting, (x) our ability to continue as a
              going concern and raise funds to support our ongoing operations, (xi) whether the reassessment of our internal controls over financial reporting could lead us to conclude that
              there were deficiencies in our internal controls over financial reporting that constitute material weaknesses, and (xii) adverse effects on the Company’s business and
              operations as a result of increased regulatory, media or financial reporting issues and practices, rumors or otherwise. More detailed information about Loop Industries and the
              risk factors that may affect the realization of forward looking statements is set forth in our filings with the Securities and Exchange Commission (SEC). Potential investors are
              urged to read these documents on the SEC's web site.

              Our management has included projections and estimates which are based primarily on management’s experience in the industry, assessments of our results of operations,
              discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. In addition, statements that
              "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us and, while we
              believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that
              we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are
              cautioned not to unduly rely upon these statements.

              We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to
              revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

              This presentation does not constitute an offer to sell nor is it a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such
              an offer or solicitation in such jurisdiction. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved the securities or
              determined if this presentation is truthful or complete.

Confidential. For Internal Use Only.
                                                                                                                                                                                                 1
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Introduction and Key Highlights
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
MISSION
To accelerate the world’s shift toward sustainable plastic
and away from our dependence on fossil fuels

VISION
To be the world’s leading supplier of plastic
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
2014
                                 Founding
                                 Daniel Solomita founds Loop                            2015
                                 Industries
                                                                                            Pilot Plant
                                2017                                           Pilot plant established in
                                                                                   Terrebonne, Quebec
                                Patents
                                Patents published in the USA and
                                globally for Loop’s revolutionary                        2017
                                technology                                                PepsiCo.
                                                                                   First commercial
                                      2017                                   agreement signed with
                                      Innovation                            Pepsi Co. for Drinkfinity
                                      Generation II depolymerization
                                      technology invented
                                                                                                 2017
                                                                                              NASDAQ
                                                                                       Listed on Nasdaq
   Loop began as many of the                                                      Trading symbol: LOOP
     worlds most innovative                                                            2018
   technology start ups began      2018                                     Danone/Evian®
                                                                            Term Sheet signed
                                 Completion Generation II
         – in a garage.          Pilot Plant
                                 New technology and continuous                       2018
                                 process                                                 FDA
                                                                       Letter of non-objection
                                                                            for the FDA issued
                                  2018
                                  L'Oréal
                                  Term Sheet signed
                                                                                       2018

The journey                          2018
                                     Gatorade Gx
                                                                              Nestlé Waters
                                                                            Term Sheet Signed

                                     Agreement signed
                                                                                         Sept 2018
                                                                       Indorama/Loop Joint Venture
                                                                           The plastic revolution expands
                                            2018
                                            PepsiCo
                                            Supply Agreement signed

                                                                                                  5
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
70 million(1) metric tons (154 billion pounds) of
                                                                                                                        annual global demand for PET is expected to
The Plastic Crisis is Real and Growing...                                                                               triple by 2050(2)

                                                                                                                        Over 90%(2) of plastic is derived from fossil
                                                                                                                        fuels, which contributes to climate change and
                                                                                                                        environmental pollution

                                                                                                                        An estimated 8 million metric tons (18 billion
                                                                                                                        pounds)(3) of plastic waste flows into the oceans
                                                                                                                        every year

                                                                                                                        More plastic waste in the ocean than fish (by
                                                                                                                        mass) by 2050(4)

                                                                                                                        ~90%(5) of all polyester plastic goes un-recycled
                                                                                                                        globally and enters rivers, oceans and other
                                                                                                                        natural areas

 ___________________________
 1. PET PoEllen MacArthur Foundation & McKinsey: The New Plastics Economy – Rethinking the Future of Plastics (2016).
 2. lymer IHS Report (2018).
 3. Jenna R. Jambeck, Ph.D Environmental Engineering Services, Associate Professor - University of Georgia.
                                                                                                                        Each year $80 billion to $120 billion(2) of
 4. Washington Post, World Economic Forum: New Plastics Economy.
 5. National Geographic: A Whopping 91% of Plastic Isn’t Recycled, July 2017.
                                                                                                                        plastic packaging material value is lost from the
                                                                                                                        economy after a single use                  6
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
…Because of the Wasteful Linear Economy

Each year, $80-$120 billion lost from the
            economy after a single use(2)
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Demand For a Solution is Being Driven By…

  Media and advocacy groups

  Governments

  Consumers and Consumer Goods Companies

                                            8
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Demand For a Solution is Being Driven By…

                                                                            Media Frames the Story of Plastic &
                                                                            Advocacy Groups Push for Change

                                   Plastic pollution is the most covered environmental story in 2017 and 2018(1)
                                   Since the movement’s launch in 2016, over 1,000 activist groups have joined the
                                    #breakfreefromplastic movement to end plastic pollution around the world(2)
                                   Ellen MacArthur Foundation leads the ‘New Plastics Economy’ initiative, which seeks a
                                    shift toward the sustainable use of plastics and partners with companies to promote
                                    a circular economy(3)

___________________________
1. United Nations Environment Programme (2018).
2. Breakfreefromplastic.org.
3. https://www.ellenmacarthurfoundation.org.

                                                                                                                      9
Supplying Demand and Transforming a Market - NASDAQ: LOOP Investor Presentation October 2018 - Loop Industries
Demand For a Solution is Being Driven By…

                                                     Governments are intervening through
                                                     policy and regulation

 Queen of England Declares war on single serve plastics; Prime Minister of England
  releases a 25 year plan to cut plastic pollution
 50 governments – accounting for more than half the world’s coastline –signed up to
  #CleanSeas with many making commitments to protect oceans, encourage recycling, and
  reduce single-use plastics(1)
 Since 2008, the number of single serve plastic bans in the U.S. has increased from 3 to
  388(2)
 Recycling laws (EU Commission), Bottle Bills (battlebill.org), Circular Economy Acts
  (Recycling Council Ontario), and national initiatives (China Green Fence) have been
  implemented in jurisdictions around the world

   ___________________________
   1. United Nations Environment Programme (2018).
   2. AFARA.

                                                                                            10
Single-use plastic bans

       2008               2018      Estimated 2030
3 Plastic Bans   388 Plastic Bans   +2100 Plastic Bans

                                                    11
Demand For a Solution is Being Driven By…

                                 In January 2018, eleven global corporations announced at the World Economic
                                  Forum in Switzerland, that they will ensure all their packaging is reused, recycled, or
                                  composted by the year 2025 – together representing more than six million tonnes of
                                  plastic packaging per year(1)

                                 66% of millennials more likely to engage with brands when social responsibility and
                                  sustainability issues brought to the forefront(2)
                                 68% of millennials want the companies they invest in to help them create change in
                                  the world(3)

                                                                                                                        Consumers and consumer packaged
                                                                                                                        goods companies are taking bold
                                                                                                                        action

___________________________
1. World Economic Forum and Ellen Macarthur Foundation. Note that Nestlé joined the list in April 2018 and Colgate-Palmolive joined in June 2018.
2. Sebastion Buck, Fast Company magazine.
3. American Marketing Association; Millennial Demand for Corporate Social Responsibility Drives Change in Brand Strategies.

                                                                                                                                                    12
Massive Demand for Recycled Content from Leading Global
 Brands
 Environmental, social, and economic pressure from government, investors, consumers, media and non-governmental
 organizations has led to the adoption of ambitious sustainability targets and plans to meet them

Discretionary                             25% by 2025
                                                              100% by 2025
                                                                                 25% by 2025

                                               100% by 2025                      50% by 2030

Food/Beverage                                       50% by 2030                       25% by 2025

                                                                   25% by 2025

      Apparel                                     100% by 2024                   25% by 2025

                                               20% by 2020
         Retail                                               20% by 2020
                                                                                  100% by 2025

    Furniture                                                      100% by 2020

                                                                                                            13
Loop’s Annual Market Opportunity From Four Top Buyers

                                                                                 Recycled PET Needed:    Recycled PET Spend(1):
                                            Commitment: 50% by 2030
                                                                                 3.30 billion lbs        USD2.48 billion/year

                                                                                 Recycled PET Needed:    Recycled PET Spend(1):
                                            Commitment: 50% by 2030               1.5 billion lbs        USD1.13 billion/year

                                                                                 Recycled PET Needed:    Recycled PET Spend(1):
                                            Commitment: 25% by 2025
                                                                                 280 million lbs         USD210 million/year

                                                                                 Recycled PET Needed:    Recycled PET Spend(1):
                                            Commitment: 100% by 2025             970 million lbs         USD728 million/year

                                                      Total Annual Recycled PET Spend                   USD4.55billion/year

___________________________
1. Annual PET spend estimated assuming $0.75 per pound.

                                                                                                                       14
85+ Billion Metric Ton Supply Potential

                                                          85 million MT                                           Global PET Consumption(1)
                                                        (187+ billion lbs.)                                       (millions of metric tons)

        70 million MT
       (154 billion lbs.)
                                                                                           CAGR:                  Current annual global demand for
                                                                38 MT
                                                                                            2.7%                   polyester ~70 million metric tons (~154
              33 MT                                                                                                billion pounds) and expected to grow 4%
                                                                                                                   over the near term

                                                                                                                  Polyester consumption expected to triple
                                                                                           CAGR:                   by 2050(2)
                                                                47 MT                       5.1%
              37 MT

               2017A                                             2022E

                  Fibers                             Bottle Grade

___________________________
Source: PET Polymer IHS Report (2018).
1. Represents global consumption of polyester / PET. Excludes consumption of recycled polyester.
2. Ellen MacArthur Foundation & McKinsey: The New Plastics Economy – Rethinking the Future of Plastics (2016).

                                                                                                                                                      15
$160+ billion Market Opportunity for Loop
                                                                                                                                                                                ~USD160 billion

Global PET Market Size                                                                                                           ~USD130 billion
(billions of USD)

     Total addressable market of ~$130 billion
      today

     Market expected to reach ~$160 billion in
      2022E

                                                                                                                                                       (1)
          ___________________________
          Source: PET Polymer IHS Report (2018)
                                                                                                                                           2017A                                    2022E(1)
          1. For 2017A-2022E, market value based on $1,885 per metric ton, representing the average price of PET large buyer net transaction for the year ended 2017 per IHS.

                                                                                                                                                                                               16
We Believe Loop Can Supply the Demand and Transform the
  Market
                                   Here is the Circular Economy Loop is
                                   creating

Loop’s revolutionary technology…
   Creates an effective after-use plastics economy
    and decouples from fossil fuel feedstocks
   Keeps plastic in the economy and out of nature
   Required and promoted by global brand
    companies and impact investors
   Demanded by consumers and governments             DMT + MEG

   Upcycles 100% of waste PET plastic

                                                                      17
...By Partnering with Leading Global Companies
“At Indorama Ventures, we continue to pursue the right opportunities to fulfil gaps that are intrinsic to our sustainable and profitable
business by deploying resources in order to support the circular economy. This joint venture with Loop Industries emphasizes our belief in
chemical recycling and is aimed at investing in new technologies that can steer further our aspiration of being a world-class chemical
company making great products for society.”

September 24, 2018

“Evian will make all of its plastic bottles from 100% recycled plastic by 2025…In order to achieve its 2025 ambition, Evian is partnering
with breakthrough technology companies, one of which is Loop Industries. Loop Industries has developed a technology that enables a
continuous loop for recycling at large scale, transforming all types of PET plastic waste into the high-quality plastic required by Evian.”

January 28, 2018

“As the leader in the beauty industry, we believe we have a responsibility to bring innovative and sustainable solutions to the consumer.
That is why we seek to partner with innovative companies and leverage technologies, such as Loop, that will trigger an acceleration in
the transition to a circular economy. And Loop™ PET is able to meet the rigorous packaging standards of L’Oréal.”

July 26, 2018

“Innovation is at the heart of the Gatorade brand. That's why partnering with Loop is a natural fit. Their innovative technology provides
Gatorade Gx consumers the opportunity to close the loop on Gx pods. We have over 50 years of experience providing athletes scientifically
formulated products to meet their sports fueling needs - and now also have the ability to more fully meet their commitment to
sustainability and the circular economy because of Loop.”

July 24, 2018

                                                                                                                                            18
…With A Clear and Strategic Path to Commercialization

                                                                   1. Pilot: Continue to leverage the pilot plant as a center of continuous
                                                                      innovation
 Superior Operations

                          Expand Production:                       2. Partner: Joint venture with IVL, the world’s leading PET
                                                                      manufacturer and expert
                          Be where there is demand & supply        3. End-to-End: Build Integrated Loop™ resin and polyester fiber
                                                                      production facilities proximate to demand and feedstock

                                                                   1. Market-Maker: Establish a market for no and low value waste PET
                                                                      and polyester fiber
                          Secure Feedstock Supply:                 2. Long-Term: Secure long-term supply agreements to reduce price risk
                          Divert waste from landfills and oceans   3. Optimize: Source quality feedstock from suppliers that are reliable
                                                                      and cost-effective
 Building Relationships

                                                                   1. Relationship: End to end customer stewardship
                          Be the Hero:                             2. Sales: Take or Pay agreements with leading global CPG’s
                          Solve the Customers Issues               3. Enable: Enable the sustainability goals of each customer

                                                                   1. Logo: Loop logo to appear on all products containing Loop™ PET
                          Grow the Brand:                          2. Co-Marketing: Activate the brand through customer product
                                                                      marketing
                          Be seen doing it                         3. Activate Opinion Leaders: Build and activate a network of advocates

                                                                                                                                      19
Technology Overview
Loop’s Technology Transforms How Plastic is Produced

Zero Energy Depolymerization             Upcycling Innovation
 Manufacture of Dimethyl Terephthalic     Polyester fibers (carpets/clothing),
 Acid (DMT) and Mono Ethelyne Glycol      colored PET and Opaque PET can now
 (MEG) from waste PET and polyester       be infinitely upcycled into virgin quality
 feedstocks without the need for added    bottle grade resin.
 heat or pressure.

Meets FDA Requirements                   Unparalleled Purity
 The Loop process meets FDA               Virgin quality PET and polyester fiber
 requirements for use in food grade       without the need for fossil fuel as
 packaging.                               feedstock.

                                                                                       21
Loop’s Technology Transforms How Plastic is Produced

      1                                                                                                                       4

    PET &                                                                                                                 Food-Grade
  Polyester                                                               DMT +
                                                                          Other                                          Loop™ PET &
    Fiber       Patented                                                                                Virgin-quality     Polyester
                                                                                  Evaporation            Loop™ DMT
Plastic Waste   Formula                                           Solid                                                      Fiber
                                           DMT +
                                           Other

                                           MEG +
                                           Other                 Liquid
                                                    Mechanical
                                                    Separation            MEG +
                                                                          Other
                                Reaction                                                                Virgin-quality
                                                                                   Distillation
                                                                                                         Loop™ MEG

                2   Loop Proprietary                   3   Standard Industrial Processes
                      Technology

                                             Waste PET and polyester plastic of all types, shapes, and colors
                1   Feedstock
                                             come to a Loop processing facility

                                             Loop’s patented depolymerization process breaks down waste plastic
                2   Technology
                                             into its monomers; DMT and MEG
                                             Monomers are then purified, removing all solid waste, coloring,
                3   Quality                  additives, and organic or inorganic impurities

                4   Branded Solution         Pure DMT and MEG are repolymerized into Loop™ branded PET
                                             resin

                                                                                                                            22
With a Lower Environmental Footprint Than Virgin & rPET

                                                Loop’s Process Allows for the Following Reductions:

                          Loop™ PET vs. Virgin PET                                     Loop™ PET vs. Mechanical rPET

                63% reduction in global warming potential                        26% reduction in global warming potential
                77% reduction in non-cancer-related toxicity                     25% reduction in non-cancer-related toxicity
                79% reduction in ozone depletion                                 43% reduction in ozone depletion
                85% reduction in ecosystem toxicity                              12% reduction in ecosystem toxicity
                80% reduction in non-renewable energy                            43% reduction in non-renewable energy
                 demand                                                            demand
                97% reduction in cancer-related toxicity                         65% reduction in cancer-related toxicity
                92% reduction in eutrophication                                  85% reduction in eutrophication
                88% reduction in smog                                            76% reduction in smog
                88% reduction in acidification                                   77% reduction in acidification
                86% reduction in solid waste                                     86% reduction in solid waste
                83% reduction in respiratory effects                             65% reduction in respiratory effects

Lifecyle Assessment1: Loop vs. Virgin an rPET
    ___________________________
    1. Based on GEN I technology. Currently commissioning an LCA for GEN II.

                                                                                                                              23
And Ability to Recycle an Ample Supply Others Cannot

                                   Mixed Flake                             Opaque

                            Clothing & Carpet                              Clear & Wet Fines

                             Thermoform Trim                               Clear Dust

Loop’s Technology…
1.    Processes material conventional recyclers cannot
2.    Removes all colors and dye agents
3.    Removes contaminants such as PVC, EVOH and antimony
4.    Diverts and recover waste from landfill, oceans and natural areas
5.    Reduces the need for incineration
6.    Yields 89% PET from typical bales where conventional recyclers can
      only yield up to 65%

                                                                                               24
Evolution of Loop’s Technology: from hydrolysis to methanolysis

        Generation I                                 Generation II
                              Monomers
          PTA + MEG                                      DMT + MEG
                            Products from Loop
                             depolymerization

                                Process
           Hydrolysis                                   Methanoloysis
                          Purification Methodology

                               Reagents
               5                                             2
                               Required for
                             depolymerization

                              Scalability
                             Risk to expand to
                             commercial scale

                         Chlorinated Solvent
              Yes                                            No
                             Required to purify
                                monomers

                                 Water
              Yes                                            No
                         For depolymerization and
                                purification

                          Purification Steps
              12                                             4
                         For depolymerization and
                            purification process

                                                                        25
Benefits of…
 Loop decreases the amount of plastic ending up in landfills, rivers

                                                                        Loop’s technology
  and oceans

 Loop processes contaminated PET, Opaque, thermoforms, polyester
  fibers and other challenging PET feedstocks

 Loop enables customers to increase the recycled content in their
  packaging and completely close the loop on their packaging

 Loop makes virgin quality resin, infinitely recyclable

 Loop uses zero water in our manufacturing process

 Loop increases the environmental benefits (LCA) of plastic

 Loop increases recycling rates of PET plastic bales by more than
  24%

 Loop decreases the climate change impact of bottles by more than
  2/3rd’s

 Loop can allow brand to use 100% recyclable PETg labels

 Loop decouples bottles from fossil fuels

                                                                                            26
Intellectual Property Strategy

Aligned to the commercialization plan, and intended to fuel it, Loop’s patents, pending patents,
trademarks, know how and trade secrets will be used to accomplish 3 goals: offensive value creation;
defensive value protection; and marketing and reputation enhancement.

            Offensive                           Defensive                            Marketing

      Patent licensing                    Regular patent searching             Trademark - Loop™
      Royalty trademark                   Global / Key market                  brand marks on
      licensing                           patent filing                        customer packaging
How

                                    How

                                                                         How
      Expand revenue                                                           Assert rights in the
Why

                                    Why

                                                                         Why
                                          Protect revenue sources
      potential                                                                market

                                                                                                       27
Commercialization Strategy
A Clear and Strategic Path to Commercialization

                                                                   1. Pilot: Continue to leverage the pilot plant as a center of continuous
                                                                      innovation
 Superior Operations

                          Expand Production:                       2. Partner: Joint venture with IVL, the world’s leading PET
                                                                      manufacturer and expert
                          Be where there is demand & supply        3. End-to-End: Build Integrated Loop™ resin and polyester fiber
                                                                      production facilities proximate to demand and feedstock

                                                                   1. Market-Maker: Establish a market for no and low value waste PET
                                                                      and polyester fiber
                          Secure Feedstock Supply:                 2. Long-Term: Secure long-term supply agreements to reduce price risk
                          Divert waste from landfills and oceans   3. Optimize: Source quality feedstock from suppliers that are reliable
                                                                      and cost-effective
 Building Relationships

                                                                   1. Relationship: End to end customer stewardship
                          Be the Hero:                             2. Sales: Take or Pay agreements with leading global CPG’s
                          Solve the Customers Issues               3. Enable: Enable the sustainability goals of each customer

                                                                   1. Logo: Loop logo to appear on all products containing Loop™ PET
                          Grow the Brand:                          2. Co-Marketing: Activate the brand through customer product
                                                                      marketing
                          Be seen doing it                         3. Activate Opinion Leaders: Build and activate a network of advocates

                                                                                                                                      28
1   Expand Production:
    Be where there is demand & supply

                                        1. Pilot: Continue to leverage the pilot plant as
                                           a center of continuous innovation
                                        2. Partner: Joint venture with IVL, the world’s
                                           leading PET manufacturer and expert
                                        3. End-to-End: Build Integrated Loop™ resin
                                           and polyester fiber production facilities
                                           proximate to demand and feedstock

                                                                                   29
Partner: Joint Venture with IVL, the world’s leading PET
        manufacturer and expert

 Market Cap USD11 Billion

         2018E Revenue                                                            : IVL.TB
  USD11.04 Billion

        Vertical Segments
                                   Founded in 1994
                         24%       Full-time Employees: ~15,000
             33.8M         Fiber

                                                                                                                   75 Production Sites
42%                                                                                                                26 Countries
  PET                 34%                                 The Netherlands

                       Feedstock        Canada                UK
                                                                    Denmark
                                                                      Germany
                                                                         Lithuania
                                                       Ireland           Poland
                                                  Luxembourg           Czech
                                           USA        Portugal
                                                          Spain    Italy Turkey              China
                                                                   France
     42%
     20%                    50%         Mexico
                                                                    Nigeria
                                                                                     India

                                                                                  Myanmar
                                                                                                     Thailand
                                                                                                     Philippines
                                                           Ghana
                                                 Brazil                                  Indonesia

               25%

 1          Expand Production: Be where there is demand & supply
                                                                                                                                         30
Partner: Joint Venture with IVL, the world’s leading PET
    manufacturer and expert

    Joint Venture will commercialize and feature Loop’s breakthrough technology in
    partnership with a global leader in PET manufacturing.

                                         Pioneer Plant Details…
                                            •   Location: Southeast USA
                                            •   Capacity: 20,700 metric tonnes (45 MM lbs) per year
                                            •   Commercial Production Start: January 2020

                              +
                    Technologies

1      Expand Production: Be where there is demand & supply
                                                                                            31
End-to-End: Build Integrated Loop™ resin and polyester
       fiber production facilities
The future of PET and polyester manufacturing

A new operating and revenue model

      Distributed & Compact              Independent of
                                         Petroleum Infrastructure

60-100 KT/annum/facility
           Optimal proximity to
                                                                Closed loop
  Feedstock          &        Customer                          system

              Greenfield Development

  1          Expand Production: Be where there is demand & supply
                                                                              32
End-to-End: Build Integrated Loop™ resin and polyester
    fiber production facilities

     Key Sources of Revenue from Loop™              Ideal Turn-Key Opportunity for:
             Integrated Facility

             36%                    48%
       Equity in                     License/
       Earnings                      Royalty Fees
                                                        Waste Managers        Pet Manufacturers

                    16%
     Construction
     Fee                                              Chemical Companies       Consumer Goods

1        Expand Production: Be where there is demand & supply
                                                                                                  33
2   Secure Feedstock Supply:
    Divert Waste from landfills & oceans

                                           1. Market-Maker: Establish a market for no
                                              and low value waste PET and polyester fiber
                                           2. Long-Term: Secure long-term supply
                                              agreements to reduce price risk
                                           3. Optimize: Source quality feedstock from
                                              suppliers that are reliable and cost-effective

                                                                                       34
Long-term: Strategically Identifying Feedstock Supply

              Tier 3:                  Tier 2:        Prioritizing Feedstock Supply
           Least Desired               Desired

                                                           Price = Cost feedstock + Logistics
Price

             Tier 2:                   Tier 1:
                                                         Reliability = Volume + Predictability
             Desired                 Most desired                 + Quality + Diversion

                       Reliability

  2        Secure Feedstock Supply: Divert waste from landfills
                                                                                                35
3   Be the Hero:
    Solve the Customers Issues

                                 1. Relationship: End to end customer
                                    stewardship
                                 2. Sales: Take or Pay agreements with leading
                                    global CPG’s
                                 3. Enable: Enable the sustainability goals of
                                    each customer

                                                                           36
Sales: Evian® & Danone Partnership

What Loop will do                                                          Benefits to Loop
                                                                           1. Present on premium global brand
                                                                           2. Seed Loop™ logo and brand in a leading
1. Supply Evian with 100% Loop™ PET
                                                                              global product
2. Co-marketing strategy, development
                                                                           3. Drive demand for Evian’s® competitors
   and execution
                                                                              to incorporate Loop™ PET

What Danone will do                                                        Details of the deal
1. Loop™ logo Danone packaging              Evian® is a high-end premium   1. Multi-year agreement
2. Global co-marketing strategy             water brand owned by Danone    2. Supply volume from US facility
   development & execution, i.e. National
                                               and distributed in seven
   Geographic, VICE documentary, WEF,
   Wimbledon, Evian® Open                             countries.

3          Be the Hero: Solve The Customer Issue
                                                                                                               37
Sales: L'Oréal Partnership

What Loop will do                                                              Benefits to Loop
                                                                               1. Present on at least four global brands
1. Supply L’Oréal haircare lines with 100%                                     2. Seed Loop™ logo and brand in
   Loop™ PET                                                                      cosmetics sector
2. Co-marketing strategy, development                                          3. Part of L'Oréal brand marketing
   and execution                                                                  campaigns

What L'Oréal will do                                                           Details of the deal
1. Loop™ logo on L'Oréal haircare bottles     L'Oréal is the world’s leading   1. Multi-year agreement
2. Global co-marketing strategy                 beauty company with 34         2. Supply volume from US facility
   development & execution
                                             complementary global brands
                                                present in 150 countries.

3          Be the Hero: Solve The Customer Issue
                                                                                                                     38
Sales: Pepsi Partnership

What Loop will do                                                          Benefits to Loop
1. Manage Take Back Program for                                            1. Loop™ logo present on #1 sports beverage
   Gatorade Gx and Drinkfinity                                                in the world and iconic global brand(s)
1. Supply Loop™ PET for Pepsi brand(s)                                     2. Drive brand awareness
2. Co-marketing strategy, development                                      3. Ability to market a fully closed Loop
   and execution                                                              product, Gatorade Gx pod

What Pepsi will do                                                         Details of the deal
1. Loop™ logo on packaging               PepsiCo is the 2nd largest food   1. Multi-year agreement
2. Global co-marketing strategy          and beverage company in the       2. Supply volume from US facility
   development & execution                                                 3. Annual renewal for Drinkfinity & Gatorade
                                           world with iconic brands
                                                                              Gx program
                                          present and represented in
                                                every country.

3          Be the Hero: Solve The Customer Issue
                                                                                                                39
4   Grow the Brand:
    Be Seen Doing It

                       1. Logo: Loop logo to appear on all products
                          containing Loop™ PET
                       2. Co-Marketing: Activate the brand through
                          customer product marketing
                       3. Activate Opinion Leaders: Build and activate
                          a network of advocates

                                                                40
Co-Marketing: Activate the brand through Customer
    Marketing
                                                           SHARE
                                              Communications & Engagement

                                       CONNECT
                                  Through Product Brands

                                            BUILD
                                     Loop™ Corporate Brand

    ___________________________
    1. Brands are examples.

4           Grow the Brand: Be Seen Doing It
                                                                            41
Co-Marketing: Activate the brand through Customer
     Marketing

Leverage the marketing power of

 4        Grow the Brand: Be Seen Doing It
                                                         42
Strong and Experienced Leadership Team and Board
Members to Execute Strategy
                                                                     Management Team

         Daniel Solomita                                    Frank Zitella            Nelson Switzer        Antonella Penta
     Founder, President & CEO,                            CFO and Treasurer        Chief Growth Officer   V.P. Legal Counsel
        Chairman of Board

                                                                    Board Of Directors(1)

          Laurence Sellyn                                  Leslie A. Murphy         Shaun B. Higgins         Jay Stubina
     Lead Independent Director                           Audit & Compensation           Director               Director
                                                              Committees

___________________________
Note: For full biographies, see pages [51 and 52].
1. Five total board members including Daniel Solomita.

                                                                                                                               43
MISSION
To accelerate the world’s shift toward sustainable plastic
and away from our dependence on fossil fuels

VISION
To be the world’s leading supplier of plastic
Supplying Demand and Transforming a Market
Investor Presentation
October 2018

NASDAQ: LOOP

                  This presentation is the property of LOOP Industries, Inc. All content is considered confidential. All dollar amounts are in USD.
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