Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Investor Presentation (December 2012)
15 slides from Energy Recovery's investor presentation, Dec 14, 2012
Slide 1: Energy Recovery
@ energy recovery”
Slide 2: Safe Harbor
SAFE HARBOR 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 presentation include statements about market trends, possible future revenue growth, and business strategy
Slide 3: Who We Are — Energy Recovery
WHO WE ARE — ENERGY RECOVERY (NASDAQ: ERI!) © Over a decade of experience © Aproven technology with hundreds of references © Aglobal market leader with 75% market share © Tackling global problem of water & energy © Saving ~10B + kWh / year Saving clients over Lil \\ $1billion per year 4 in energy co
Slide 4: Our Vision
OUR VISION To make industrial processes environmentally cleaner and economically more profitable by tr rey Industrial profitability 3} Continuous innovation and environmental yy and collaboration responsibility ° with industry 7) va : OUR VISION: $ ’ 7 Transform the The work's leading //) world’s un
Slide 5: High-Efficiency Solutions for Industrial Fluid Flows
HIGH-EFFICIENCY SOLUTIONS FOR INDUSTRIAL FLUID FLOWS Water Processing Gas Processing + Highest Efficiency Technology ~ 98% + Highest Efficiency Solution ~ 93%, * Ceramic Material Science Advantage + Ceramic Material Science Advantage + Simple, Plug-n-Play Solution + Intelligent, Easy-to-Install Syst
Slide 6: Inside Our Technology
INSIDE OUR TECHNOLOGY Water Processing Gas Processing St
Slide 7: 14,000 Devices in 30+ Countries on Continents
14,000 DEVICES IN 30+ COUNTRIES ON 7 CONTINENTS A LEADER IN THIS INDUSTRY WORLDWIDE O sles offices “© Water Solution installations _/ VW FS ' |p Future Growth Markets i“ a
Slide 8: Our Industry Experience with Global Leaders
OUR INDUSTRY EXPERIENCE WITH GLOBAL LEADERS Water Processing | Gas Processing fooosan] BEFESA | 6 2 | Chesapeake Ge Aquotech vows: | Ss Middle East Oil lent: Confidential 7 GE Water & Pr | Qacciona Ayflux )echnologies | ° | ent: Confidential QOveoua [ \ Fine | Texas Oil 2 ssn | waren ca DE | Inima S
Slide 9: Desalination Opportunity
DESALINATION OPPORTUNITY MAJORITY MARKET SHARE IN HIGH GROWTH MARKET Global capital expenditure on EROS $60,000,000 $14,000,000 $12,000,000 $100,000,000 = GWI ERD Market ~ Actual GWI ERD Market, 2006 2007 2008-2009 2010-2011. «2012 Forecast Expected Indus Growth of 25 Demand for water for industrial
Slide 10: Rebounding & Diversified Recovery
REBOUNDING & DIVERSIFIED RECOVERY Revenue mmRevenue -©-EPS- diluted Earnings Per (S in 00's) Share - Diluted $250,000 5028 2.00 $200,000 + $150,000 | $100,000 ~ $1020), $80,000 $10.40) $10.60) | Gacweyrecoery
Slide 11: Diversification
DIVERSIFICATION Other Fluids | Goezymconey
Slide 12: Leveraging Strength to Diversify into New Markets
LEVERAGING STRENGTH TO DIVERSIFY INTO NEW MARKETS Stage 1 Stage 2 Stage 3 Water Oil & Gas Other Fluids Municipal Mining. | Food & Other Processes $150 M ~$1B8 ~$1B+ es ADDRESSABLE ‘ADDRESSABLE ‘ADDRESSABLE MARKET MARKET MARKET New markets worth est. $2 Billion+ | Goarweyneaney
Slide 13: With Early Success to Show in New Markets
WITH EARLY SUCCESS TO SHOW IN NEW MARKETS Significant progress in new “| Oil & Gas market in 2012 < yi © Maintaining Technology Lead © Over $4.5 M invested in Oil & Gas © The Right Partners © Partnerships with 3 of the world’s largest oil giants on 3 continents © Early Traction © Devices scheduled t
Slide 14: Energy Recovery
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Slide 15: Key Financial Metrics
KEY FINANCIAL METRICS Revenue** san.o1 $28.05 462% Gross Margin % 49.7% 27.8% 21.9% EBIT% 19.3% 90.2% 709% Net income** (6.2) (626.44) 738% ers. (60.16) (60.50) 68.0% Cash & Equivalents** $43.74 $52.33 16.4% Shares Outstanding** 50.9 526 33% Market Cap ($ in M)** $150.4 $1358 105%
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