Cambi Asa · OSL:CAMBI
Cambi Asa — Investor Presentation (September 2023)
60 slides from Cambi Asa's investor presentation, Sep 27, 2023
Slide 1: Capital Markets Update
Cambi ASA Capital Markets Update 27 September 2023 Eirik Fadnes, CEO Mats Tristan Tjemsland, CFO 1
Slide 2: Disclaimer
Disclaimer The presentation is for information purposes only, and it is expressly noted that no representation or warranty, expressed or implied, as to the accuracy or completeness of any information included herein is given by the Cambi ASA and that no information, including projections, estimates,
Slide 3: Cambi is strongly positioned for value creation
Cambi is strongly positioned for value creation Capital Markets Update 2023 Global leader in wastewater sludge treatment solutions with solid track record Robust financial performance Proven thermal hydrolysis enabling shareholder dividends technology with unique value proposition Scalable platform
Slide 4: Down the drain is a unique circular opportunity
DOWN THE DRAIN IS A UNIQUE CIRCULAR OPPORTUNITY 4
Slide 5: Half of the world's wastewater is released into the environment
An unfortunate truth: Half of the world's wastewater is released into the environment untreated Source: “Wastewater - Turning Problem to Solution”, United Nations EP (2023) 5
Slide 6: Decades of mismanaging our water resources have led to a global water crisis
Biodiversity “Decades of mismanaging our water Human health resources through overconsumption, pollution and insufficient recycling have led to a global water crisis.” - United Nations Environment Programme, 2023 Pollution 6
Slide 7: Wastewater treatment is a unique circular opportunity
Wastewater treatment is a unique circular opportunity If treated, wastewater can: Provide alternative Supply more than 10 times Offset over 10% energy to half a the current global of global fertilizer use billion people desalination capacity Source: “Wastewater - Turning Problem to Solution”, United
Slide 8: Global leader in wastewater sludge treatment solutions with robust track record
GLOBAL LEADER IN WASTEWATER SLUDGE TREATMENT SOLUTIONS WITH ROBUST TRACK RECORD 8
Slide 9: Our mission
Our mission Improving the environment by transforming wastewater solids and organic wastes into valuable bioresources through reliable solutions for municipal utilities and industries 9
Slide 10: We do this through our Thermal Hydrolysis Process
We do this through our Thermal Hydrolysis Process Cambi’s Thermal Hydrolysis Process (THP) converts wastewater sludge into valuable bioresources 10
Slide 11: Cambi is a diverse and innovative company committed to creating sustainable cities
Cambi is a diverse and innovative company committed to creating sustainable cities ▪ Cambi’s culture is based on innovative thinking, teamwork and treating each other with kindness and respect ▪ Our 147 colleagues share a common purpose and passion for creating more environmentally friendly cities a
Slide 12: Three decades of experience, 115 million people served daily
Based on more than three decades of experience, 115 million people are served by our technology daily Capacity – Accumulated THP capacity installed million people Million people equivalent ✓ 2021: IPO 120 ✓ 2017: Acquisition of 110 Grønn Vekst AS 100 90 ✓ 2013: Acquisition of 80 UK production facili
Slide 13: Global presence and a solid track record of delivered installations
Global presence and a solid track record of delivered installations 86 reference plants 27 countries million people served by our 115 technology daily Delivered projects Project under execution 13
Slide 14: Cambi is a trusted partner for leading water utilities worldwide
Cambi is a trusted partner for leading water utilities worldwide San Francisco, USA Brussel, Belgium Oslo, Norway Beijing, China Washington DC, USA Dublin, Ireland London, UK Seoul, South Korea Kansas City, USA Athens, Greece Birmingham, UK Hong Kong, China Dallas, USA Panama City, Panama Edinburgh,
Slide 15: Proven thermal hydrolysis technology with unique value proposition
PROVEN THERMAL HYDROLYSIS TECHNOLOGY WITH UNIQUE VALUE PROPOSITION 15
Slide 16: Cambi transforms sewage sludge into renewable resources
Cambi transforms sewage sludge into renewable resources City Wastewater treatment plant Electricity, natural gas, fuel Biogas Treated water Thermal hydrolysis Biosolids Digester Incineration Agriculture 16
Slide 17: Cambi THP offers a highly attractive value proposition
Cambi THP offers a highly attractive value proposition Cambi THP for sludge treatment Economic impact Environmental impact Biosolids reduction up to 50% High biosolids quality Biogas yield increase up to 50% Digestion efficiency 3x increase Low carbon footprint Robust to regulatory changes 17
Slide 18: THP significantly reduces the volume of biosolids
Biosolids reduction up to 50% High biosolids quality Cambi THP significantly reduces the volume of biosolids, and the high-quality product is safe for further handling Biosolids without Biosolids with thermal hydrolysis thermal hydrolysis treatment treatment ₓ Limited sterilization ✓ Up to 50% ₓ Sme
Slide 19: DC Water has turned THP biosolids into a garden soil product
High biosolids quality Example: Our customer DC Water has turned their THP biosolids into a garden soil product sold in the consumer market Safe to handle and with earthy odor Higher quality biosolids can reduce cost per tonne. Here, sold as garden soil 19
Slide 20: Cambi THP significantly increases the rate of biogas production
Biogas yield increase up to 50% Digestion efficiency 3x increase Cambi THP significantly increases the rate of biogas production Biogas production Thames Water Utilities ▪ The wastewater utility for London Metropolitan area 100% ▪ Repeat customer with Cambi projects ▪ Reports biogas generation incre
Slide 21: THP avoids costly investments in more digesters
Digestion efficiency 3x increase Example: THP avoids costly investments in more digesters, beneficial for space-constrained wastewater plants Manchester, UK – Davyhulme WWTP 21
Slide 22: Beijing significantly reduced its carbon footprint through Cambi THP
Low carbon footprint Example: The city of Beijing significantly reduced its carbon footprint through installation of Cambi THP technology Emissions related to sludge management in Beijing, China Baseline Alternative Solution Landfill Incineration Cambi THP with biosolids recycled to land Beijing 1.8
Slide 23: Thermal hydrolysis is suitable for all biosolids disposal routes
Robust to regulatory changes Thermal hydrolysis is suitable for all biosolids disposal routes, significantly reducing the biosolids volume to be handled Biosolids disposal routes Incineration Thermal treatment Drying Wastewater Thermal Biosolids sludge hydrolysis Other thermal Agriculture 23
Slide 24: Conversation: Grønn Vekst
CONVERSATION: GRONN C:Mi:i 24
Slide 25: Grønn Vekst is the largest bulk soil producer in Norway
Grønn Vekst is the largest bulk soil producer in Norway, specialized in recycling organic resources and waste fractions Upstream customers Downstream customers Cities/municipalities Entrepreneurs and Compost landscape gardeners based soil Organic Waste Industry Soil improvement Agriculture Stone mea
Slide 26: Grønn Vekst has a solid track record and growth potential in downstream markets
Grønn Vekst has a solid track record and growth potential in downstream markets Market share of Grønn Vekst Grønn Vekst Other Grønn Vekst presence in Norway Upstream1 Downstream Total market Bulk soil market Bagged soil market Total: NOK 101 million Total: NOK 170 million Total: NOK 200-250 million
Slide 27: Torvfri Sajord - Grønn Vekst
4 TORVFRI 73 SAJORD- =\ ~~. GRONN vekst
Slide 28: Strongly positioned in attractive market supported by macro trends
STRONGLY POSITIONED IN ATTRACTIVE MARKET SUPPORTED BY MACRO TRENDS 28
Slide 29: Tailwind from several macro trends drive demand for our technology
Tailwind from several macro trends drive the demand for our technology solutions going forward Circular Infrastructure Urbanization Regulations economy investments 29
Slide 30: Global wastewater capex projected to reach USD 263 billion in 2030
Global capital expenditures for wastewater utilities is projected to reach a staggering USD 263 billion in 2030 Global capex prognosis for wastewater utilities Wastewater treatment plant capex 2023 by region Other Wastewater treatment plants East Asia / Pacific 263 Latin America 9% Wastewater networ
Slide 31: Cambi has delivered most of the global installed THP capacity
After more than 30 years of developing thermal hydrolysis, Cambi has delivered most of the global installed capacity today Global installed THP capacity million people equivalent per installation 7 Other Cambi 6 THP is one of several Cambi has delivered Built on three decades of alternative the majo
Slide 32: Solid market penetration and growth since the 2021 IPO
Solid market penetration and growth since the 2021 IPO 18 New projects 4 New countries More than NOK 2 billion >2bn order intake Delivered projects Project under execution 32
Slide 33: Achieved market penetration in selected markets shows potential
The achieved market penetration in selected markets shows the significant potential for our technology globally People serviced by installed capacity Share of population served by Cambi: Share of population served by Cambi: United Kingdom Norway 50% 40% People: 67.7 million, Cambi references: 25 Peo
Slide 34: Conversation: North American market
CONVERSATION: NORTH AMERICAN MARKET 34
Slide 35: DC Water delivery in 2014 was a turning point in North America
It has taken time to develop the North American market, but the plant delivery for DC Water in 2014 was a turning point for Cambi Timeline of signed references in North America 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 35
Slide 36: North American THP references handle sludge for more than 15 million people
In North America, Cambi’s THP references have the capacity to handle the wastewater sludge for more than 15 million people 36
Slide 37: Large addressable market of more than 3,000 plants identified
Large addressable market of more than 3,000 plants has been identified Identified targets 3,000+ Sales pipeline Reference plants 350+ 86 37
Slide 38: Cambi will focus less on Design-Build-Operate projects
To concentrate our efforts, Cambi will focus less on Design-Build-Operate projects Cambi will reduce our strategic efforts to actively seek plant ownership Neutrality. Desirability of staying neutral in public tenders and offering our solutions to all bidders New go-to-market strategy. Focusing effo
Slide 39: Scalable platform positioned for future development
SCALABLE PLATFORM POSITIONED FOR FUTURE DEVELOPMENT 39
Slide 40: New financial reporting structure: Technology and Solutions
New financial reporting structure will improve alignment between company strategy, operations, and financials Technology Sales, R&D, manufacturing and delivery of world-class technology for sludge treatment Solutions Value-adding services beyond delivery of world-class sludge treatment technology 40
Slide 41: The Technology segment covers all phases leading up to installation
The Technology segment covers all phases leading up to the installation of our technology ▪ Sales, manufacturing and delivery of THP installations to clients globally ▪ Covering a broad range of sludge line equipment scopes ▪ From subcontractor to engineering, procurement, and construction ▪ Further
Slide 42: Historical financials for Technology segment
Historical financials for Technology segment shows a long-term positive trend, with variations between reporting periods Historical key financials Profit & Loss statement NOK million, not audited NOK million, not audited 89% 2023 68% TECHNOLOGY 2018 2019 2020 2021 2022 62% 63% H1 57% 55% Revenue 206
Slide 43: Standardized and modular technology solutions scaled to any customer need
Cambi offers standardized and modular technology solutions that can be scaled to fit any customer need Portfolio of standardized THPs B2 B4/B6 B12 Small projects Medium to large projects Extra large projects 50-250 thousand people equivalent From 250 thousand people equivalent From 1 million people
Slide 44: Standardization efforts beyond core thermal hydrolysis solution
We have continued our standardization efforts beyond the delivery of core thermal hydrolysis solution for our customers Greenfield Brownfield Standardized sludge line Standardized THP system for retrofit 44
Slide 45: Flexible delivery model as subcontractor or main contractor
Cambi has a flexible delivery model, able to deliver both as a subcontractor for THP equipment and as the main contractor Engineering, Procurement and Construction Core scope for Cambi Plant owner Main contractor scope for Cambi (incl. core scope) Main contractor Cambi Aux Civil Mechanical Electrica
Slide 46: Cambi will seek activities that result in most adaptation of THP
Cambi will always seek to engage in activities that result in the most adaptation of THP THP equipment Go-to-market Services Broader scope Financing options 46
Slide 47: The Solutions segment consists of value-adding services
The solutions segment consists of value-adding services after the technology is delivered ▪ Maintenance, repairs and operations support ▪ Upgrades and modifications of technology platform ▪ Expert support and optimalisation analytics ▪ Recycling biosolids into organic resources for agriculture ▪ Pro
Slide 48: Historical financials from the Solutions segment
Historical financials from the Solutions segment show a predictable, stable and upward-trending development Historical key financials Profit & Loss statement NOK million, not audited NOK million, not audited 44% 45% 43% H1 41% SOLUTIONS 2018 2019 2020 2021 2022 38% 2023 37% Revenue 145 176 176 190 2
Slide 49: Five key focus areas for growth of the Solutions segment
Five key focus areas will lead to further growth of the Solutions segment 1 2 3 4 5 Expansion of Expansion of Development of Rolling out remote Professionalization Grønn Vekst essential services operations & monitoring & of expert support & xxxxxxxx for installed base maintenance analytics optimalis
Slide 50: Robust financial performance enabling shareholder dividends
ROBUST FINANCIAL PERFORMANCE ENABLING SHAREHOLDER DIVIDENDS 50
Slide 51: Historical consolidated financials for Cambi ASA
Historical consolidated financials for Cambi ASA show a positive and upward-trending development in key financials Historical key financials Profit & Loss statement NOK million, not audited NOK million, not audited 58% 58% 2023 57% Group 2018 2019 2020 2021 2022 52% H1 49% 50% Revenue 351 281 367 45
Slide 52: Consolidated financials on a rolling last twelve months basis
The consolidated financials show a positive long-term trend when viewed in a rolling last twelve months period Revenue per quarter EBITDA per quarter NOK million, not audited NOK million, not audited 800 150 Rolling twelve months Rolling twelve months 700 600 100 500 400 50 300 200 0 100 0 -50 2020
Slide 53: Solutions segment is stable while Technology drives variations
Solutions segment is stable and predictable, while the Technology segment drives the variations in financial figures Revenue per quarter Solution Technology EBITDA per quarter Solution Technology NOK million, not audited NOK million, not audited 500 100 Rolling twelve months Rolling twelve months 45
Slide 54: Cash balance post IPO has been solid
Cash balance post IPO has been solid, supporting a strong financial position Cash development per quarter Selected events post IPO NOK million Cash and cash equivalents Acquisition of Veolia 350 technology portfolio 300 250 Investment in peat-free 200 soil packing facility 150 100 Dividend distribut
Slide 55: Milestone payment schedules provide funds to remain cash positive
Milestone payment schedules vary, but normally provide sufficient funds to remain cash positive during project delivery Example of milestone payment month-by-month Example of milestone payment triggers › Commencement date % of project revenue 10% 100% 40% › Documentation for execution 80% 60% 10% ›
Slide 56: Extraordinary dividend proposed, driven by change in strategic direction
Extraordinary dividend proposed, driven by the change in strategic direction An extraordinary dividend An extraordinary dividend 1 of NOK 96 million (NOK 0.60 per share) has been proposed by has been proposed of the Board, driven by the change in strategic direction NOK Subject to approval 2 0.60 of
Slide 57: Cambi intends to distribute 60-80% of net profits as dividends
Cambi intends to distribute 60-80% of net profits in 2023 and 2024 as dividends 57
Slide 58: Cambi is strongly positioned for value creation
Cambi is strongly positioned for value creation Capital Markets Update 2023 Global leader in wastewater sludge treatment solutions with solid track record Robust financial performance Proven thermal hydrolysis enabling shareholder dividends technology with unique value proposition Scalable platform
Slide 59: Q&A
Q&A Cc’M:3
Slide 60: Thank you
Thank you News The share Reports and presentations Corporate governance Investors overview Contact us 60