Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Seaport Research Partners Summer Investor Conference 2021
26 slides from Energy Recovery's conference presentation, Aug 25, 2021
Slide 1: Driving Industrial Sustainability: Delivering Value in Fluid-Flow Processes
Driving Industrial Sustainability Delivering Value in Fluid-Flow Processes Seaport Research Partners Summer Investor Conference – 24-25 August 2021 NASDAQ: ERII
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation contains forward-looking statements within the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this report include, but are not limited to, statements about our expectations, objectives, antic
Slide 3: Energy Recovery Snapshot
ENERGY RECOVERY SNAPSHOT We design and manufacture solutions that accelerate the environmental sustainability Financial Snapshot2 of our customers' operations. Product Rev Growth Avg. Growth ‘15 - ’20 21% Our solutions increase efficiency and lower 2020 27% lifecycle cost by reducing waste and energ
Slide 4: We Have a Strong ESG Story
WE HAVE A STRONG ESG STORY saved for customers on $2.6B energy expenses annually1 25k+ PXs installed worldwide product revenue from metric tons emissions avoided 90%+ energy-efficiency related products 12.5M due to PXs = >2.7M vehicles removed from the road annually1 PXs use components made Of waste
Slide 5: ESG at Energy Recovery – Making Products to Help Improve the Environment
ESG AT ENERGY RECOVERY – MAKING PRODUCTS TO HELP IMPROVE THE ENVIRONMENT 2nd Annual ESG report to be issued Sept 2021 o Aligned with SASB and GRI sustainability reporting frameworks; select U.N. Sustainable Development Goals Reflects ongoing commitment to becoming a more sustainable, resilient busin
Slide 6: Industries Benefiting from PX Technology
INDUSTRIES BENEFITING FROM PX TECHNOLOGY Industry Markets Customer Type Key Benefits Provided o Global EPC Firms o Less Energy o Seawater Desalination o Desalination OEMs Consumption o Brackish Water o Plant Owners o Lower Emissions Desalination and/or Operators o Reduced Costs o Less Energy o Globa
Slide 7: Our Energy Recovery Devices
OUR ENERGY RECOVERY DEVICES Desalination Industrial Wastewater Treatment PX® Pressure Exchanger® Turbocharger PX® Pressure Exchanger® Ultra PX™ CO2 Refrigeration Natural Gas Processing PX® G1300 IsoBoost Please visit www.energyrecovery.com for complete product information 7
Slide 8: PX Technology Platform – Excelling in a Wide Range of Pressure Applications
PX TECHNOLOGY PLATFORM – EXCELLING IN A WIDE-RANGE OF PRESSURE APPLICATIONS o The Pressure exchanger is Energy Recovery’s core technology. This versatile technology acts as a fluid piston, efficiently transferring energy between high- and low-pressure fluids and gases through continuously rotating d
Slide 9: Pressure Exchanger Technology Platform
PRESSURE EXCHANGER TECHNOLOGY PLATFORM o Our pressure exchanger technology works as a platform to build product applications o The technology is versatile – can handle liquid, gas, and a range of pressures o Benefits include lower lifecycle cost and energy use in industrial fluid-flow systems o Pres
Slide 10: How Pressure Exchanger Technology Reduces Energy Consumption
HOW PRESSURE EXCHANGER TECHNOLOGY REDUCES ENERGY CONSUMPTION Sealed Phase Pressure Exchange Phase Two fluids on opposite sides of Rotor duct rotates to 1. Low pressure driven fluid PX; rotor duct is sealed, isolating pressure exchange phase enters the rotor duct high, low pressure fluid streams 2. H
Slide 11: Pressure Exchanger Technology in Action: PX for SWRO
PRESSURE EXCHANGER TECHNOLOGY IN ACTION PX for SWRO PX lowers energy consumption by up to 60% Incoming seawater routed to pump and PX Low pressure potable water Main pump size PX transfers energy reduced by up to from high pressure 60% brine to seawater The Ocean1 1Ocean or other geological mass 11
Slide 12: Our PX Platform Has Come to Dominate Large Scale SWRO Desalination
OUR PX PLATFORM HAS COME TO DOMINATE LARGE SCALE SWRO DESALINATION Cumulative Won Mega Project1 Desal Capacity (m3/day) 20M Millions ERII Competitors 10M 0M '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Technology Strength = High Margin 67% ERII Gross Margin 2 25% Russell 2000 Indu
Slide 13: New Water Demand and Technology Shift Driving Secular Shift in SWRO
NEW WATER DEMAND AND TECHNOLOGY SHIFT DRIVING SECULAR SHIFT IN SWRO Annual SWRO Capital Expenditures1 $10B SWRO Industry $130M ERI Product Revenue2 Energy Recovery Revenue $8B SWRO Industry Capex $100M $6B $70M $4B $40M $2B $0B $10M '14 '15 '16 '17 '18 '19 '20 '21 '22 Our growth roughly tracks overa
Slide 14: The World Needs More Water
THE WORLD NEEDS MORE WATER Saudi Water Partnership Company has released its Seven-Year Statement for 2020-26 Africa’s largest dam powers dreams of prosperity in Ethiopia – and fears of hunger in Egypt Alaska Villages Run Dry and Residents Worry About a ‘Future of No Water’ 14
Slide 15: Existing Fresh Water Supplies Will Likely Not Meet Future Demand
EXISTING FRESH WATER SUPPLIES WILL LIKELY NOT MEET FUTURE DEMAND 60% >2B People 30% 26% The world will only 1/4 of all people live Potable water demand Global population is have 60% of the water in high water-stress expected to increase expected to grow from it needs by 2030 territories 30% by 2050
Slide 16: Technology Shift from Thermal to SWRO: $0.5B TAM
TECHNOLOGY SHIFT FROM THERMAL TO SWRO: $0.5B TAM TO MAINTAIN EXISTING CAPACITY SWRO Eclipsed Thermal Desalination as Technology of Choice in the 2000s o Existing thermal capacity should eventually be replaced by SWRO o We are seeing this demand in our revenue and pipeline today o SWRO is more effici
Slide 17: Building Long-Term Sustainable Growth and Value
BUILDING LONG-TERM SUSTAINABLE GROWTH AND VALUE Revenue Growth Increase Bottom Line Sustainability New Technologies Leverage Existing Assets Environmental Sustainability Develop new PX products, widen Large investments in Accelerate the sustainability of technical aperture organization not needed fo
Slide 18: Leveraging PX Technology for Diversified Growth Beyond Desalination
LEVERAGING PX TECHNOLOGY FOR SUSTAINABLE DIVERSIFIED GROWTH BEYOND DESALINATION o Manage pressure energy between fluid flows Fluids o Relatively clean seawater to caustic pressure pumping proppant; CO2 gas o PX Platform – focus on reducing energy consumption o 1,000 - 10,000+ PSI (70 – 700 bar) Tech
Slide 19: Ultra PX – Mitigating Environmental Effects of Industrial Wastewater Discharge
ULTRA PX – MITIGATING ENVIRONMENTAL EFFECTS OF INDUSTRIAL WASTEWATER DISCHARGE o Our PX and Ultra PX can recover up to 60% of wasted energy in the RO process with 93%+ efficiency o RO can significantly reduce the thermal component of mitigating the effects of industrial wastewater due to superior ef
Slide 20: HFC Phase Out in the Headlines
HFC PHASE OUT IN THE HEADLINES …we already operate hundreds of facilities (stores Over the next 15 years, the U.S. is set to slash the and distribution centers) that utilize ultra-low GWP use of powerful greenhouse gases used in refrigerants including carbon dioxide (CO2). refrigerants. That means c
Slide 21: PX Technology Is a Game Changer for the Refrigeration Industry
PX TECHNOLOGY IS A GAME CHANGER FOR THE REFRIGERATION INDUSTRY Over 35,000 CO2 Hurdles to Faster CO2 The PX G enables faster Installations Globally Adoption Remain CO2 adoption • Conversion to CO2 from HFCs • Electricity usage of CO2 • Reduces/eliminates (current refrigerants) is fully systems incre
Slide 22: Pressure Exchanger Technology in Action: PX G1300 for CO2 Refrigeration
PRESSURE EXCHANGER TECHNOLOGY IN ACTION PX G1300 for CO2 Refrigeration Gas pressurized in PX bypasses the compressor Compressor PX converts low pressure pressurizes CO2 up to gas from evaporator to 1,300 PSI. High pressure gas from ~1300 PSI, saving energy gas cooler is converted in PX to low pressu
Slide 23: We Have Come Far to Unlocking a Large Market with the PX G
WE HAVE COME FAR TO UNLOCKING A LARGE MARKET WITH THE PX G Current status of the PX G1300 o Successfully tested across a range of temperatures in our full refrigeration test- loop in California o Control system developed to manage it in operations o Building our first commercial ready system 23
Slide 24: Disciplined Focus Driving Top and Bottom-Line Growth
DISCIPLINED FOCUS DRIVING TOP AND BOTTOM-LINE GROWTH Drive Diversified PX Top Line Growth1 21% Average Annual Growth Projected Desal Revenue Growth 25% 10% 27% With successful R&D efforts, 5% 19% z 44% 14% 17% diversified growth by applying PX technology across multiple industries 2015 2016 2017 201
Slide 25: Thank You
BO energy recovery’ Thank You
Slide 26: Contact Us
CONTACT US James Siccardi, VP, Investor Relations Energy Recovery, Inc. +1.832.474.7628 | Mobile 1717 Doolittle Drive jsiccardi@energyrecovery.com San Leandro, CA 94577, USA Lionel McBee, Sr. Mgr., Investor Relations energyrecovery.com +1.832.334.3685 | Mobile limcbee@ernergyrecovery.com ESG@energyr
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