Close the Loop (CLG) Investor Presentation summary

Market overview and industry trends

• Less than 10% of laptops sold are refurbished, despite a $164bn market and 240m units sold in 2023; Lenovo, Dell, and HP account for ~60% of global sales.

• Printer market sees ~100m units and 1.3bn consumables sold annually, with under 30% of consumables recycled; HP leads with 30% market share.

• Other electronics markets include servers ($126bn), gaming ($34bn), POS ($29bn), accessories ($15bn), and teleconferencing ($10bn).

• OEMs are shifting to circular economy models due to ESG regulations and changing consumer/business demands.

• New AI chips are expected to drive a replacement cycle in laptops, though many core components remain unchanged.

Environmental and regulatory drivers

• Manufacturing a single laptop emits 331kg CO2; ICT sector accounts for ~2% of global CO2, potentially rising to 14% by 2040.

• E-waste is rapidly growing, projected to reach 74.7mt by 2030, with only 17.4% currently recycled.

• New ESG and financial reporting regulations (e.g., TCFD, WEEE, CSRD, SEC rules) are driving industry change globally.

• OEMs face challenges in brand control, environmental impact, and inefficient product-market matching under the linear model.

• Critical materials for electronics production are at supply risk, with 80% sourced from China.

Circularity and refurbishment solutions

• Circularity involves device trade-in, reverse logistics, refurbishment, and global resale through trusted channels.

• HP Renew Solutions enables certified refurbished products with 1-year warranties, supporting circular economy goals.

• Certified partners restore hardware to strict standards, with Close the Loop as an HP Certified Refurbished Partner.

• Refurbishment benefits include workplace flexibility, IT budget optimization, and maximized ROI.

• Global refurbishment capabilities include partnerships with Microsoft, HP, Samsung, LG, and others.