LanzaTech Global, Inc. Q4 FY2023 earnings call

• 2023 was a milestone year with 18 years in operation, started up three commercial scale plants, bringing total operating commercial plants to six, with installed capacity of approx. 310,000 tons per year of ethanol. - Had a singular recordable loss time injury in the fourth quarter, addressed root cause. - Demonstrated at scale production of IPA strain at Suncor facility in Canada, ready to license in 2024; continued work on MEG. - 2024 strategic priorities: safety, commercial growth, path to profitability. - Announced management reorganization to drive accountability, transparency, and efficiency; cut executive and management cash bonuses by 80%.

In 2023, total revenue was $62.6 million. Fourth quarter 2023 revenue was $20.5 million, up 77% year-over-year. The Biorefining Carbon Capture and Utilization business saw fourth quarter 2023 revenue of $14.2 million, up 103% year-over-year, and full-year 2023 revenue of $42.6 million, up 101% year-over-year. JDA & Contract Research revenue in 2023 was $14.6 million, up 21% year-over-year. CarbonSmart business full-year 2023 revenue was $5.3 million, up 33% year-over-year. Biorefining contributed a significant portion to the revenue growth, with CarbonSmart underperforming expectations in the fourth quarter but showing growth over the year.

• 2024 total revenue expected $90 million to $105 million, back half-weighted. - Biorefining revenue growth from engineering services and equipment sales from projects moving to construction phase. - Anticipate incremental recurring revenue from ArcelorMittal and Indian Oil facilities. - Adjusted EBITDA loss expected $65 million to $55 million. - Modified forecasting due to project timing delays from macroeconomic factors and elongated decision-making.

• Macro-economic factors causing project decision delays. - Regulatory uncertainty affecting CarbonSmart business certification and supply. - Cost factors like steel prices and interest rates impacting project costs. - ESG fatigue leading to reduced investment in new carbon reduction technologies.

Q: Please provide more color on revenue ramp, including Q1 2024 expectations, CarbonSmart growth, and forecast methodology change.

A: Q1 2024 expected to be consistent with Q1 2023, below Q4 2023 due to project timing. CarbonSmart has modest growth expected with upside potential once certifications and supply agreements are in place. Forecast methodology adjusted due to elongated project timelines in 2023.

Q: Role of Freedom Pines in 2024 guidance, operational status of steel and oil plants, and US project interest.

A: Freedom Pines not contributing to 2024 revenue yet but anchors joint projects. Steel and oil plants will provide licensing, microbe, engineering support, and off-take revenues. Multiple projects in pipeline in US with impact from IRA, to be discussed in next six months.

Q: Visibility of revenue slipping into 2025 and potential outside capital raising.

A: Good visibility into projects, but conservative forecasting includes timing delays. Have sufficient liquidity with over $120 million cash on hand to execute near-term objectives, and levers to extend runway if needed.

Q: Project decision delays driven by economics and ESG fatigue, US project interest.

A: Delays due to both macroeconomics (interest rates, steel costs) and ESG fatigue. Multiple US projects in pipeline with impact from IRA, to be revealed in next six months.