Erredue S.p.a. · MIL:RDUE
Erredue — ISMO Sustainability 2023
37 slides from Erredue's conference presentation, 2023
Slide 1: The Pioneers of Hydrogen[R]evolution
THE PIONEERS OF HYDROGEN[R]EVOLUTION
Slide 2: Overview
OVERVIEW • COMPANY OVERIEW • BUSINESS MODEL • MARKET OPPORTUNITY • FINANCIAL 1H 2023 • GROWTH STRATEGY • ESG POLICY 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY Erredue is a high-tech industrial company at the forefront of gas generation worldwide. It is able to deliver nitrogen, oxygen and hydrogen generation machines in both alkalyne and pem technologies and has been able to scale up to large hydrogen generation machines for the energy t
Slide 4: ErreDue Overview
ERREDUE OVERVIEW +38 y +100.000 h 2300 7,9 €M Ye a r s o f e x p e ri e n c e i n Tr a c k r e c o r d : w o r k Customers in 2023 Sales revenues in electrolysis Hydrogen hours of generators 1H2023 4
Slide 5: Being a Pioneer Means Being a Driver for Future
BEING A PIONEER MEANS BEING A DRIVER FOR FUTURE long e xperience - best performances – competiti ve advance ENRICO D’ANGELO EXPERIENCE BEFORE ERREDUE 1986 2014 2022 Enrico D’Angelo founds Tecnimat (numerical control and electronic 2000 Well-capitalised, highly positioning devices) and buys Enrico D’
Slide 6: Shareholder structure
18,8% 2,6% 3,2% 5,3% 54,0% 16,0% Green H2 Holding S.r.l.* Individual members Axon Partners Group Investments Arca Fondi Sgr Chelverton Asset Management Free float * Multiple voting shares (2 votes per shares) 6
Slide 7: Overview
OVERVIEW • COMPANY OVERIEW • BUSINESS MODEL • MARKET OPPORTUNITY • FINANCIAL 1H 2023 • GROWTH STRATEGY • ESG POLICY 7
Slide 8: ErreDue Products Portfolio
ERREDUE PRODUCTS PORTFOLIO LABORATORY INDUSTRY ENERGY TRANSITION PLANT 8
Slide 9: Key Success Factors
KEY SUCCESS FACTORS ROAD TO CLIMATE NEUTRAL ENERGY INDIPENDENCE LOGISTIC ADVANCE • The EU aims to be climate-neutral by 2050 – an economy • Because of the geopolitical situation, self-sufficiency has with net-zero greenhouse gas emissions. become a key factor in the politics of many governments. • S
Slide 10: Customers
CUSTOMERS ENERGY COMPANY INDUSTRIAL LABORATORY • Erredue traditional business, starting in early ’80s, had and • In 2016 ErreDue launched Pem technology, the heart of the • Europe's decarbonization goals have moved energy still have an organically growth laboratory line. companies towards the hydrog
Slide 11: New Technologies
NEW TECHNOLIGIES H-MW ALKALINE LAUNCH H-MW PEM DESIGN AND LIQUID NITROGEN AND DELIVERY DEVELOPMENT GENERATOR TESTING PHASE Beginning of 2022, ErreDue started the development of H-MW, In order to maintain the high level of our products Erredue ErreDue are testing the liquid nitrogen generators, that
Slide 12: Overview
OVERVIEW • COMPANY OVERIEW • BUSINESS MODEL • MARKET OPPORTUNITY • FINANCIAL 1H 2023 • GROWTH STRATEGY • ESG POLICY 12
Slide 13: Green H2: Key in the EU's Energy Strategy
GREEN H2 : KEY IN THE EU'S ENERGY STRATEGY …ROAD TO 2050 GOVERNMENT INITIATIVE Governments recognize the growing potential role that hydrogen can play in achieving greenhouse gas emission reduction targets. Hydrogen would allow greater energy independence for countries currently importing fossil fue
Slide 14: Green H2: Key in the EU's Energy Strategy
GREEN H2 : KEY IN THE EU'S ENERGY STRATEGY …ROAD TO 2050 Strategy target of installing at Target of installing at least 40 Target of 2030 to 2050, in least 6 GW of green hydrogen GW of green hydrogen which green hydrogen should electrolysers in the EU and the electrolysers by 2030 and reach maturity
Slide 15: Green H2: Key in the EU's Energy Strategy
GREEN H2 : KEY IN THE EU'S ENERGY STRATEGY …ROAD TO 2050 mton 88 132 211 392 528 61% 58% 1% 5% 38% 40% 37% 10% 19% 32% 89% 76% 30% 9% 2% 2020A 2025A 2030A 2040A 2050A Idrogeno Verde Idrogeno Blu Idrogeno Grigio Thanks to the multiple applications of hydrogen, and the fact that green hydrogen is a ke
Slide 16: Reliability: The Most Valuable Advantage
RELIABILITY: THE MOST VALUABLE ADVANTAGE ErreDue has a great adventage in term of experience: A LONG TRACK RECORD. In Erredue’s portfolio some generators has a track record of over 100,000 working hours. Thanks to the significant track record the customers are able to catch CAPEX investment, public
Slide 17: Overview
OVERVIEW • COMPANY OVERIEW • BUSINESS MODEL • MARKET OPPORTUNITY • FINANCIAL 1H 2023 • GROWTH STRATEGY • ESG POLICY 17
Slide 18: Key Factors 1H2023
SALES REVENUES EBITDA NET INCOME NFP € 7.9 M € 2.8 M € 1.5 M € 14.9 M € 5.4 M in 1H22 € 1.7 M in 1H22 € 0.7 M in 1H22 € 17.4 M in FY22 + 44.4% + 69.2% + 127% Sales Revenues up 44.4% due to the EBITDA Margin at 35,9% vs 30.7% in NFP (cash positive) of € 14.9 million increase in all categories of reve
Slide 19: Revenues Breakdown
BREAKDOWN OF BREAKDOWN OF REVENUES BY TYPE REVENUES BY TYPE CONTRACT 1H2023 PRODUCTS 1H2023 OTHER RENTALS OF PRODUCTS GENERATORS 14% 14% HYROGEN 43% 20% 7.9 €M 7.9 €M ASSISTANT AND SPARE-PARTS 66% 43% SALES OF GENERATORS OTHER GASES 1H2023 REVENUE BREAKDOWN BY GEOGRAPHY (€M) 1H2023 % REVENUES Italy
Slide 20: Aftermarket
AFTERMARKET AFTERMARKET AND SPARE PARTS • Generators can only and exclusively be maintained by ErreDue technicians, using only and exclusively components developed in-house. RECURRING REVENUES • Erredue, in addition to revenues linked to sales, guarantees KEY FINANCIAL € M recurring revenues linked
Slide 21: Business Model: Asset-Light
CAPEX TRADE WORKING CAPITAL (€M) (€M) 4.9 3,1 2,8 3,1 3,1 3,2 2,0 2,4 5,5 3,6 1,23 3,85 2,3 2,5 (1,0) (1,5) (2,4) (2,5) 0,03 (0,2) (0,6) 1,31 1,33 (1,3) (1,2) 0,81 1,04 2019 2020A 2021A 2022A 1H2023 2020A 2021A 2022A 1H2023 Tangible Capex Intangible Capex Inventory Trade receivables Trade payables A
Slide 22: Growth Strategy
GROWTH STRATEGY FUTURE STARTS HERE 22
Slide 23: Leading Edge
LEADING EDGE 60 PLANT PER YEAR FOREIGN BRANCHES NEW EMPLOYEES • ErreDue will continue to increase the number of new • ErreDue is renovating a new plant , where the company will • To improve ErreDue's presence in the global hydrogen employees, by hiring: be able to built around 5 plant per month. mar
Slide 24: Growth Strategy: New Factory
GROWTH STRATEGY NEW FACTORY PRODUCTION SITES OF 25000 MQ The new factory will be able to produce plants of 1MW and over, increasing to a production capacity of 60 plants per year on one shift once the full capacity of the plant is reached. ErreDue is a micro-public company 22 are working partners. T
Slide 25: Growth Strategy: New Factory
GROWTH STRATEGY NEW FACTORY AN AREA FULLY DEDICATED TO ENERGY TRANSITION The new production plant will have an area designated for energy transition plants. The area will be 17,000 square metres covered and will consist of 4 production lines capable of assembling up to 8 plants per month. Erredue is
Slide 26: Growth Strategy: Traditional Business
GROWTH STRATEGY TRADITIONAL BUSINESS H2 kg/hour needed Retail H2 price (€/kg) H2 cost produced on-site (70€/Mwh) Electrolysis capacity to replace (Kw) Flat glass 7-10 5-6 5,3-5,8 350-500 Heat treatments 5-6 5-10 5,8-6,1 260-320 Pharma production 4-6 5-10 5,8-6,4 200-320 Edible oils production 3-4 5-
Slide 27: Growth Strategy: Foreign Branches
GROWTH STRATEGY FOREIGN BRANCHES In order to expand its presence in the international markets, Erredue is evaluating the best way to define future foreign initiatives. ErreDue will be investing in new foreign branches or, where the business Partners required, in joint ventures for which ErreDue is b
Slide 28: Overview
OVERVIEW • COMPANY OVERIEW • BUSINESS MODEL • MARKET OPPORTUNITY • FINANCIAL 1H 2023 • GROWTH STRATEGY • ESG POLICY 28
Slide 29: A Letter to Stakeholders
A LETTER TO STAKEHOLDER Growth for Erredue means responsibility. As a company that started small and has grown organically over the years, our responsibilities have grown with us and have become bigger and more important. Responsibility towards our customers, towards those who work with us and for u
Slide 30: ESG Manifesto
E S G M A N I F E S TO Q U A L I T Y P E O P L E E T H I C S SUSTAINABILITY Erredue 's success is thanks to the Erredue requires its employees to behave The intrinsic nature of ErreDue's busienss Erredue is constantly working to invaluable contribution of its people. The honestly; no gifts is centre
Slide 31: Environmental
Enviromental Erredue develops advanced and highly innovative technologies for the world’s manufacturing and energy company. This strategic partnership with prominent industry players has led Erredue to starts a path aimed at analysing and quantifying the impact of its activities on the community, en
Slide 32: Micro Public Company
Micro Public Company Erredue’s focus on people is an integral part of the company's DNA. In fact, people are the "core asset" of the company due to their portfolio of skills, creativity and aptitudes that can be applied in the various operational areas. The founders' philosophy was to share the bene
Slide 33: Governance
Governance The Board of Directors plays a central role in the Governance System, entrusted with determining the Company's strategic and organizational guidelines while ensuring that the Company operates in compliance with all relevant laws and regulations. In 2022, the company initiated the project
Slide 34: ErreDue's Path
ERREDUE’S PATH ERREDUE PAYS A LOT OF ATTENTION TO ESG POLICY AND Carbon Footprint of Organisation (CFO) HAS THEREFORE STARTED A PATH TOWARDS OBTAINING Measurement of emissions (direct and indirect) of greenhouse THE MAJOR CERTIFICATIONS IN THIS AREA: gases (CO2, CH4, N2O, CFCs, etc.) due to company
Slide 35: ErreDue's Path
ERREDUE’S PATH ERREDUE PAYS A LOT OF ATTENTION TO ESG POLICY AND Carbon Footprint of Organisation (CFO) HAS THEREFORE STARTED A PATH TOWARDS OBTAINING Measurement of emissions (direct and indirect) of greenhouse THE MAJOR CERTIFICATIONS IN THIS AREA: gases (CO2, CH4, N2O, CFCs, etc.) due to company
Slide 36: Disclaimer
Disclaimer The information contained in this presentation (the “Presentation”) has been prepared by ErreDue S.p.A. (the “Company” or “ErreDue”) for the sole purpose of the presentation made to you concerning the Company. This Presentation and the information contained herein are strictly confidentia
Slide 37: Investor Relations Manager, Director of Communications
INVESTOR RELATIONS MANAGER DIRECTOR OF COMMUNICATIONS Francesca Barontini Eliana Bollino investor.relator@erreduegas.it elianabollino@erreduegas.it