6
I think that thats what were going after. Were not bumping around and hitting any of the
other materials companies. There are some interesting ones out there. Generally speaking, theyre not really addressing the same products and same applications that we are, generally speaking. But even if they do, the market is enormous. This
is a question about us versus the status quo.
Mitch Hoch
All right. Im going to jump in here. And so, I want to talk a little bit more about valuation. And so, one of the things that Ive been looking at
is that the market is definitely focused more on SPACs, on focusing on references and how you guys can be kind of measured against different companies.
So, I have right here from your investors deck kind of the illustrative--so, one of the things that I can
clearly point out here, and I have it highlightedwanted to focus in, was this 36 percent because if you look at all the other kind of focused areas, it definitely starts to that level of revenue here with the EBITDA margin for 2021. Can
you explain a little bit more how you guys are that high focused on this growth outlook and how you guys compare in each of these industries?
John
Bissell
Yeah, sure. So, I think that one way to think about the EBITDA margin is were standing up with basically a new front end or upstream
(SP) value chain for chemicals. Typically speaking, in our industry, what you see is a pre-segmented value chain, where a lot of the margin has actually gone to the oil production assets.
Were replacing obviously the oil in these materials. And so as a result, youre building out a whole new value chain from that point on. And let me
tell you, if youre on the left side of that cost curve for oil production, your margin is a hell of a lot better than 36 percent, right?
And
so, what youre seeing is the result of having a really low cost process thats supplanting the oil production part of the value chain in chemicals. And from that perspective, thats a pretty natural EBITDA margin compared to
efficient and effective global oil producers.
Mitch Hoch
Excellent, excellent. So, the next question Ill get into here would be about kind of your international stance. Its not just in the United States
here that were focused. And so, Ill bring up here in the investor presentationhere--weve got Ontario, Canada here. Tell us how you guys are working to expand outside of the United
States?
John Bissell
Yeah. We think of North
America, really, as sort of our home territory. We have this plant, we have other activities in Canada as well. And we really thought that the Sarnia site is just a great site, right? Its a chemicals hub in North America. It has history
actually with the chemicals industry thats interesting and important.
So, I think that, in our perspective, the build, own, operate components of
the business for the, lets call it the near- to medium-term, we expect to be mostly, lets say domestic, but really domestic in North America.
I think that as we go beyond North America with assets, well probably do that significantly with partners. But, from a customer perspective--and Rich may want to talk about this a little bit, too--but from a customer perspective, were already significantly
international, rightAsian customers, European customers, both significant.
Origin Materials $AACQ
Joins SPACs Attack
Friday, April 16, 2021, 1:00 PM Eastern