Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Investor Presentation (November 2011)
27 slides from Energy Recovery's investor presentation, Nov 14, 2011
Slide 1: Expanding Energy Efficient Technologies to New Horizons
(eri ENERGY RECOVERY INC Energy Recovery Inc Expanding Energy Efficient Technologies to New Horizons November 14, 2011
Slide 2: Safe Harbor
Oe 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 strat
Slide 3: Energy Recovery Inc
Energy Recovery Inc * Established in 1992, Headquarters in California * Nasdaq: ERIl ° Market Cap ~$140M * Revenue: $35M * Employees: 102 * Global Presence: Offices in Dubai, Madrid, Shanghai * Saving ~10 billion kWh energy per year Background Solutions & * High-Efficiency ERDs and Pumps Markets * M
Slide 4: Key Financial Metrics
Key Financial Metrics $60,000 $50,000 $40,000 $30,000 Revenue (S in 000s) $20,000 $10,000 Key sta 5 as of 03 2011 (000's Unrestricted Cash Shares Outstanding Market Capitalization! Debt $45,430 52,640 $138,443, $239 (2) Market Cap as of Novernber 10, 2022 $52,119 347,014 $45,853 sor $0.02) $95,414 $
Slide 5: Clients
Clients Inma BeFESA *Squalia "Grupo OHL Oe Hythux = CTA : ©S PG “ay Vv Qacciona Cadagua hes IDE 0) VEOLIA Technologies [ENGINEERING] GE Water & Process =
Slide 6: Water Remains a Global Crisis
Water Remains a Global Crisis + Percapita consumption 97.5% increasing SEAWATER (ce & SNOW COVER! MOUNTAINS + Population growing + Rivers and lakes are being drained Less than 1% ent = + Water is Fresh pdt tables are plummeting Recycle Desalination Not Enough! Reuse e
Slide 7: Desalination — Affordable Solution
Oe Desalination — Affordable Solution $3.00 m Steam $2.50 __________________ ™ Elec. Power m@ Maintenance $2.00 m Capex charges $1.50 Sim? 1972 1982 1992 Thermal SWRO SWRO %* Average water cost for Barcelona, Los Angeles, Perth, San Diego and Sydney Source: 2010 GWI Water Tariff Survey
Slide 8: Energy Recovery Device (ERD) Industry Forecast
TO Energy Recovery Device (ERD) Industry Forecast (in thousands) $250,000 $200,000 7 $150,000 7 $100,000 $50,000 Global capital expenditure on ERDs \ 1 1 1 $0 2004 ©2005» 2006-»«=-2007-« 2008:«= 2009 2010 2011S 2012, «2013-2014. 2015 2016 — GWIERD Market — Actual == GWIERD Market — Forecast Source:
Slide 9: ERD Market vs. ERI Revenues (Shifted by Year)
ERD Market vs. ERI Revenues (Shifted by 1 Year) (in thousands) $250,000 $200,000 $150,000 $100,000 $50,000 Global capital expenditure on ERDs $0 Spending on water is: > Extremely conservative > Affected by politics ‘4 / > Tied to capital markets 2 7 > Very unpre A / / Collapse of Credit Markets A {1
Slide 10: Long-Range Global Trend vs. ERI Market Trend
TO Long-Range Global Trend vs. ERI Market Trend (in thousands) $250,000 Recent Awards: > Perth Il (Australia) $700,000" > Al Zawrah (UAE) $5 Million > Candelaria (Chile) $150,000 -—. $100,000 $50,000 Ww Global capital expenditure on ERDs $0 2004 2005 ©2006 «=. 2007-«« 2008 «2009-2010 2011 «2012-2013
Slide 11: Long-Range Global Trends
Long-Range Global Trends (in thousands) $100,000 -—— / Ee. Tae $50,000 = Dee ‘ so! $250,000 -—__ GROWTH COMPRESSION GROWTH* + Moderate ¢Higher — + Moderate competition vi G $200,000 | _ Competition Bieompention *ModerateASPs 6 rf gical ; ed + Higher GM / 5 ao + New markets — China. £ 5150,000 |___ +
Slide 12: Rapidly Growing Market
Rapidly Growing Market Headquarters San Leandro, California Madrid, Spain Dubai, UAE Shanghai, China e CLO 'e © Sales Offices © Device Installations 12
Slide 13: The Technology
(eri ENERGY RECOVERY INC The Technology
Slide 14: Desalination With Energy Recovery
Desalination With Energy Recovery ERI-PX Technology Low pressure Membrane fresh water exits the plant 40% High pressure seawater High pressure reject stream flow 60% High pressure High pressure seawater flow 60% pump flow 40% Low pressure seawater enters the plant Low pressure _ reject stream * PX P
Slide 15: Unique Technology and Elegant Design
Unique Technology and Elegant Design e Only one moving part e Engineered ceramics — Tremendous durability — No corrosion e 98% efficiency e 25-year design life « No scheduled maintenance e Low life-cycle costs e Minimal footprint e Protected by US and foreign patents 15
Slide 16: Competitive Matrix
Competitive Matrix ) GFEDCO z wn (3 (%6) 9ueqos; = (%08) feBNyUED Agua YyBIY “sa xedeg mo7 16
Slide 17: Moving Beyond Water
(eri ENERGY RECOVERY INC Moving Beyond Water
Slide 18: Core Competencies
Core Competencies Material Science Energy Recovery Advanced Ceramics Fluid Dynamics
Slide 19: ERI Materials Science Expertise
19 ERI Materials Science Expertise New Addressable Markets PROCESSED POWDER PRESSING PROCESS FIRING) ROCESS
Slide 20: Targeting an Addressable Market Times the Size of Desalination
20 Targeting an Addressable Market 12 Times the Size of Desalination Chemical /Food Processing Ceramics Water Mining Desalination $200 Million Addressable Market
Slide 21: Evolving Rapidly to Many Products, Many Markets
Evolving Rapidly to Many Products, Many Markets One product, One market 24
Slide 22: Thank You!
(ex: y ENERGY RECOVERY INC THANK YOU!
Slide 23: Appendix
(eri ENERGY RECOVERY INC Appendix
Slide 24: Barcelona (Spain) 200,000 m3/day (53 MGD)
Barcelona (Spain) 200,000 m?/ day (53 MGD)
Slide 25: Al Shoaibah (Saudi Arabia) 150,000 m3/day (40 MGD)
Al Shoaibah (Saudi Arabia) 150,000 m?/day (40 MGD) i. = —— = =! 5 Sr > ;
Slide 26: ERI PX is Superior to Competitor's Products
ERI PX is Superior to Competitor’s Products DWEER * Complicated double chamber ° 7 moving parts * Metallic ° 4x larger footprint ° Primary competition Pelton Wheels / Hydraulic Turbochargers ° Maximum 80% efficiency 26
Slide 27: Project installations and partner companies
Pd Project Hadera, Israel Torrevieja, Spain Barcelona, Spain Hamma, Algeria Beni Sof, Algeria Tlemcen Souk Tleta, Algeria Mostaganem, Algeria Tlemcen Hounaine, Algeria Shuaibah iit, Saudi Arabia Adetaide, Australi Shuwaikh, Kuwait Perth, Austratia Rapid Growth & Execution Cape Preston, Austratia > M
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