Erredue S.p.a. · MIL:RDUE
Erredue — Investor Day
27 slides from Erredue's investor day presentation
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY WWW.ERREDUEGAS.IT 1
Slide 2: Speakers
SPEAKERS ENRICO D’ANGELO FRANCESCA BARONTINI FOUNDER CHIEF EXECUTIVE OFFICER LUCA GIACOMELLI ELIANA BOLLINO COMMUNICATION & ESG DEPT. CHIEF COMMERCIAL OFFICER Italia 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 components o f i ts generators totally in-house. Its t echnol ogy and know how, have permitted ErreDue t o open- up new profit abl e business markets such as: LABORATORY & INDUSTRY DECARBONIZATION AND ENERGY TRANS
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
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 FY2023
KEY FACTORS FY2023 VALUE OF PRODUCTION +5.5m€ Revenues increase +4.2 m€ +34.1% Internal costruction (for rental) +0.7 m€ +105.4% WIP +0.5 +94.5% Other revenues +0.1 + 53.9% VALUE EBITDA OF PRODUCTION 5.9 M 19.3 M + 49% + 40% vs FY22 EBITDA Margin 35.7% vs FY22 Double digit organic growing of the EBI
Slide 14: Revenues Breakdown FY2023
REVENUES BREAKDOWN FY2023 OTHER PRODUCTS RENTALS OF +30.4% VS FY22 1.8M GENERATORS +8.7% VS FY22 HYROGEN 2.2M €16.5M 7.1M +62.5% VS FY22 OTHER GASES +16.0% VS FY22 7.6M 3.5M €16.5M SERVICE E SPARE PARTS 10.8M +46.2% VS FY22 SALES OF REVENUES BREAKDOWN OF GENERATORS BREAKDOWN BY REVENUES BY TYPE +37.
Slide 15: Recurring Revenues
RECURRING REVENUES Long Term Rental 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 on
Slide 16: Capex, Net Financial Position, Trade Working Capital
(€M) CAPEX (€M) NET FINANCIAL POSITION (CASH) Cash & cash equivalents S-T Financial Credit ML-T Financial Debt S-T Financial Debt Tangible Assets Intangible Assets 0.5 0.8 0.08 2.2 0.9 (4.7) (19.0) (14.3) 4.73 1.23 1.33 (17.4) (16.3) 2022A 2023A 2022A 2023A (€M) TRADE WORKING CAPITAL ROIC(1) Invento
Slide 17: 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 18: 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 19: Social Achievements
SOCIAL ACHIEVEMENTS GENDER EDUCAT ION WELFARE EQ U ALITY &BO NUS 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 o f 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 an
Slide 20: Governance Achievements
GOVERNANCE ACHIEVEMENTS M I CRO PUBLI C ENVI ROMENTAL CO M PANY M ANAGEM ENT S YS T EM 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 stand ard wil l The f ounde rs' phi l osophy was to be added to the ce rt i fie d
Slide 21: 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 22: Sectors Growing Demand
+ XX IN E- FUEL FOR LOGISTIC TRANSPORT HYDROGEN SECTORS GROWING DEMAND 22
Slide 23: 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 24: 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 25: 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 25
Slide 26: 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 +33% of revenues abroad 2023 % Italy 11,114 6
Slide 27: Thank you
Thank you www.erreduegas.it 27