Erredue S.p.a. · MIL:RDUE
Erredue — H1 2024 Earnings Presentation
27 slides from Erredue's earnings presentation, 2024
Slide 1: 1H2024 Results Presentation
1H2024 RESULTS PRESENTATION WWW.ERREDUEGAS.IT 1
Slide 2: Speakers
SPEAKERS ENRICO D’ANGELO FRANCESCA BARONTINI FOUNDER CHIEF EXECUTIVE OFFICER ELIANA BOLLINO COMMUNICATION & ESG DEPT. 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: About Us / Business Proposition
ABOUT US ErreD ue i s a vertically integrated com pany, a ble to design and buil d the compon ents o f i ts generators totally in -house. Its t echnol ogy and know how, have permitted ErreDue t o open- up new profitabl e business markets such as: LABORATORY & INDUSTRY DECARBONIZATION AND ENERGY TRAN
Slide 5: The Pioneering Years, The Growing Years, The Years to Come
THE PIONEERING THE GROWING THE YEARS YEARS YEARS TO COME 1986 2000 2016 2000 2016 2023 ErreDue was founded in 2000 Erredue has grown organically The new production site will by Enrico D'Angelo. over the past 20 years and is have an area designated for The company was able to play a one of the compan
Slide 6: ErreDue Products Portfolio
ERREDUE PRODUCTS PORTFOLIO 6 LABORATORY INDUSTRY ENERGY TRANSITION PLANT
Slide 7: Key Success Factors
KEY SUCCESS FACTORS VERTICALLY INTEGRATED CUSTOMIZATION SCALABILITY RELIABILITY BUSINESS MODEL FULL SYSTEM ON-SITE GAS WHITE SPACE IN PILOT EVERY OFFERING GENERATION PROJECTS FOR H2 TECHNOLOGICAL CUSTOMIZED FOR SCALABILITY ACROSS PLANT TO ACHIEVE NET COMPONENTS IS DIVERSIFIED MULTIPLE ZERO EMISSION
Slide 8: Full System Offering Customized for Diversified End-Market Applications
FULL SYSTEM OFFERING CUSTOMIZED FOR DIVERSIFIED END-MARKET APPLICATIONS 8
Slide 9: Traditional Business Growing Strategy End-Market Application
TRADITIONAL BUSINESS GROWING STRATEGY END-MARKET APPLICATION Industries need to become cleaner. Purchasing hydrogen from the SMR process does not contribute to this goal. On-site generation, even Distance is a when powered by significant the grid, represents determinant of a much cleaner price. For
Slide 10: On-Site Gas Generation Scalability Across Multiple End Markets
ON-SITE GAS GENERATION SCALABILITY ACROSS MULTIPLE END MARKETS ▪ On site technical gas generation is quickly spreading across industrial, laboratory and medical applications, leading to end -market diversification ▪ On-site generated hydrogen currently represents less than 1% of global hydrogen prod
Slide 11: White Space in Pilot Projects in H2 Plants to Achieve Net Zero Emission
WHITE SPACE IN PILOT PROJECTS IN H2 PLANTS TO ACHIEVE NET ZERO EMISSION 11
Slide 12: Vertically Integrated Business Model
VERTICALLY INTEGRATED BUSINESS MODEL All design and production know how is internal. ErreDue’s production department is capable of producing in a short time, gas generators of different sizes and related accessories. 01 02 Electrolytic cell Metal shell The heart of the machine, it Component without
Slide 13: Key Factors 1H2024
KEY FACTORS 1H2024 SALES REVENUES €7.7 M compared to € 7.9 million in the same period of 2023. The reduction in sales was primarily due to two factors: the postponement of generator deliveries at the request of purchasing companies, and a sharp slowdown in domestic demand in the "traditional" VALUE
Slide 14: Revenues Breakdown 1H2024
REVENUES BREAKDOWN 1H2024 OTHER PRODUCTS RENTALS OF -73.6% VS 1H23 0.3M GENERATORS +8.5% VS 1H23 HYROGEN 2.6M +40.1% VS 1H23 1.2M €7.7M OTHER GASES 4.8M -21.7% VS 1H23 1.7M €7.7M SERVICE E 4.8M SPARE PARTS +10.8% VS 1H23 SALES OF REVENUES BREAKDOWN OF GENERATORS BREAKDOWN BY REVENUES BY TYPE -8.3% V
Slide 15: Recurring Revenues
RECURRING REVENUES Long T erm Rent al Aft er M a rket The rental of the plant breaks down the wall of diffidence regarding new Highly specialised Technical Department takes care of clients along all the technology and its introduct i on in a producti on line journey, from plant design to installati
Slide 16: Capex, Net Financial Position, Working Capital, ROIC
(€M) CAPEX (€M) NET FINANCIAL POSITION (CASH) Tangible Assets Intangible Assets Cash & cash equivalents S-T Financial Credit ML-T Financial Debt S-T Financial Debt 0.08 1.7 0.5 0.8 0.5 2.2 3.4 1.7 0.9 (4.7) (3.2) (7.4) 4.73 (19.0) (14.3) (18.0) 0.00 1.31 1.33 0.01 0.81 2021A 2022A 2023A 1H 2024 (4.0
Slide 17: Market Overview
MARKET OVERVIEW The surging global demand for low-emission hydrogen opens up significant growth opportunities Low-emission hydrogen >300 Mt H2 from electrolysis Government funding for hydrogen in $308 bn 2023, +46% vs 2022 +3.000x >50 Mt H2 Formalized 2030 targets of countries’ <0,1 Mt H2 119 GW net
Slide 18: Sectors Growing Demand
+ XX IN E- FUEL FOR LOGISTIC TRANSPORT HYDROGEN SECTORS GROWING DEMAND 18
Slide 19: Strategic Positioning
STRATEGIC POSITIONING ▪ Broader vision of the hydrogen market , which extends beyond the energy transition to embrace industries' decarbonization ▪ Extremely high quality and reliability of generators, thanks to over 30 years of experience , proprietary technology , and a fully-integrated business m
Slide 20: Strategic Growing
STRATEGIC GROWING NEW PRODUCTION FOREIGN EXPANSION SITE • ErreDue will be able to produce up to 60 • To strengthen its presence abroad, ErreDue is plants per year in a single shift; production will considering to open foreign branches with be doubled in the case of two shifts commercial and maintena
Slide 21: New Production Site
NEW PRODUCTION SITE 60 4 plants per year production lines on one shift 17,000 sqm new area increasing to 27,000 sqm total area 21
Slide 22: Foreign Expansion
FOREIGN EXPANSION Industrial Laboratory To improv e it presence +30 Dealers +70 Dealers in t he global hy drogen mark et , ErreDue is considering t he opening of new branches abroad +20 Countries +50 Countries or t he part icipat ion in joint -v ent ures +40% of revenues abroad 1H 2024 % 1H 2023 % I
Slide 23: ESG Agenda 2030
ESG AGENDA 2030 ErreDue pays a lot of attention to ESG policy and has therefore started a path towards obtaining the m ajor certifications in this area Environment Social Governance The intrinsic nature of ErreDue 's success is ErreDue is actively ErreDue's business is thanks to the engaged in centr
Slide 24: Environmental Achievements
ENVIROMENTAL ACHIEVEMENTS RENEW ABLE CARBO N S US T AINABILITY ENERGY FO O T PRI NT REPO RT Instal lati on o f 65 0 K w of sol ar Measurement of emissions (direct The C omp any wil l p r odu ce and panels on the roof. and indirect) of greenhouse gases publ is h the Sust ai n abi li ty Repor t In add
Slide 25: Social Achievements
SOCIAL ACHIEVEMENTS GENDER E D UCAT ION W ELFARE EQ U ALITY &BONUS Women make u p 25 per cent of the The val ori z ati on of hum an capit al The v al or is at i on of h um an capit al empl oyees, a gre at achieve ment has al ways bee n fun dament al f or has al w ays bee n fun d ament al f or f or a
Slide 26: Governance Achievements
GOVERNANCE ACHIEVEMENTS M I CRO PUBLI C ENVI ROMENTAL CO M PANY M ANAGEM ENT SYSTEM Erre due ’s f ocu s on pe ople i s an integ ral part of the com pany's The part con f orm ing t o the ISO DNA. 14001 environm ental standard wil l The f ounde rs' phi l osophy was to be added to the ce rt i fie d sh
Slide 27: Thank you
Thank you www.erreduegas.it 27