LanzaTech Global, Inc. Q2 FY2023 earnings call

• Safety: No lost time or recordable injuries across global operations in Q2.
• Global production: Annual installed production capacity to capture roughly twice the carbon as last year. India: 33,500 tpy facility with Indian Oil progressing. Europe: ArcelorMittal 64,000 tpy facility produced initial ethanol samples in May, commercial production expected in Q4. China: 60,000 tpy facility at ferroalloy mill started up in Q2.
• Sustainable Aviation Fuel: LanzaJet making progress on world's first ethanol-based ATJ SAF plant in Georgia (10M gal/year, operational in 2024). MOUs with Indian Oil, Jet Zero Australia, Airbus.
• Commercial growth: 2023 revenue guidance tightened to $80M-$100M. Commercial pipeline growing with projects in various stages. Biorefining, joint development, and CarbonSmart contribute to revenue growth.
• Adjusted EBITDA: 2023 adjusted EBITDA guidance revised to -$75M to -$65M. Factors include team expansion, talent retention costs, and increased costs from accelerating isopropanol microbe demonstrations.
• Process competitiveness: Second-generation bioreactor improves yields by 15-20%, reduces costs, and ahead of schedule on isopropanol microbe demonstration.

In the second quarter, revenue from the biorefining carbon capture and utilization category grew 64% year-on-year to $9.7 million. Research and development revenue, including joint development and contract research work, reached $2.2 million, and CarbonSmart revenue totaled $1 million. The biorefining segment's revenue contribution comes from engineering services and equipment sales on committed projects, while research and development contributes through ongoing contracts, and CarbonSmart is expected to see revenue growth from brand partner campaigns in the second half of 2023.

• 2023 revenue guidance: Tightened to $80M-$100M from $80M-$120M, with revenue from higher end of original range moving to 2024.
• 2023 adjusted EBITDA guidance: Revised to -$75M to -$65M from -$65M to -$55M.
• Confidence: Remain confident in turning adjusted EBITDA positive by end of 2024 with growth initiatives and investment in people/resources.

• Factors beyond control affecting actual results vs forward-looking statements.
• Competitive job market leading to upward pressure on compensation expense.
• Increased costs from accelerating isopropanol microbe demonstrations.

Q: Detail on second half revenue growth.

A: Geoff talks about expansion of engineering services and equipment revenues from projects like Woodside, Bridgestone, NextChem, etc.

Q: Brookfield pipeline projects.

A: Multiple projects in Europe/North America, expect 1-2 to FID by Q1 2024.

Q: LanzaJet SAF offtake.

A: All 10M gal/year capacity contracted by investors.

Q: Isopropanol microbe timeline.

A: Ahead of schedule, expected ready for commercial use next year.