Erredue S.p.a. · MIL:RDUE
Erredue — ISMO Paris 2023
36 slides from Erredue's conference presentation, May 12, 2023
Slide 1: ISMO Paris
ISMO Paris INTESA SANPAOLO IMI CORPORATE & INVESTMENT BANKING 12 MAGGIO 2023
Slide 2: Speakers
SPEAKERS ENRICO D’ANGELO FRANCESCA BARONTINI RESULT•PRESENTATION “The man with the ErreDue vision” • In ErreDue since 2001 working in Finance, Admin & • 35+ years experience in Green H2 Control, as well as Head of HR • Multiple times founder: GDF S.n.c. (1974), TECNIMAT • Sole Executive Administrato
Slide 3: Company Overview
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 4: ErreDue Overview
ERREDUE OVERVIEW ErreDue is a G-Local player at the forefront of R&D, production and commercialisation of +37 +50 TAILOR-MADE YEARS OF COUNTRIES OF PRODUCT EXPERIENCE IN INSTALLATION ON-SITE SOLUTIONS FOR: ELECTROLYSIS OF HYDROGEN INDUSTRIAL LABORATORY 12.3 €M +2000 MEDICAL REVENUES IN 2022 INSTALLE
Slide 5: 35+ Years of Experience in Generators Production
35+ YEARS OF EXPERIENCE IN GENERATORS PRODUCTION L’ESPERIENZA DI ENRICO D’ANGELO PRIMA DI ERREDUE 1986 Enrico D’Angelo founds Tecnimat 2022 (numerical control and electronic 2000 2014 Well-capitalised, highly positioning devices) and buys profitable micro public Enrico D’Angelo quits Idroenergy, own
Slide 6: Shareholder structure
18,8% 2,6% 3,2% 5,3% 54,0% 16,0% Green H2 Holding S.r.l.* Individual members Axon Partners Group Investments Arca Fondi Sgr Chelverton Asset Management Free float * Multiple voting shares (2 votes per shares)
Slide 7: Company Overview
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 8: Industrial, Laboratory, Medical, Green Energy Transition
• INDUSTRIAL • LABORATORY • MEDICAL • GREEN ENERGY TRANSITION
Slide 9: Industrial Generators
INDUSTRIAL GENERATORS • Very high purity of the gases produced • More security • Continuity of work • Saving of time and purchased gas
Slide 10: Laboratory Generators
LABORATORY GENERATORS • No waste • More security • Continuity of work • Saving on cylinders trasportation
Slide 11: Medical Generators
MEDICAL GENERATORS • Gas purity at 93% • Low consumption • Plag & Play system • One single unit
Slide 12: Green Energy Transition
GREEN ENERGY TRANSITION • Hydrogen production up to 200 mc/h • Release pressure 5 -12- 30 bar • Purity up to 99.9995, res O2<5ppmV • PDCR 20 to100%. • Guaranteed continuous production from 0% to 100% (24h/7) • Remote assistance: the advanced PLC allows remote control of the machine for remote monito
Slide 13: Proprietary Technology: The Heart of the Generators
PROPRIETARY TECHNOLOGY | THE HEART OF THE GENERATORS. 140 | PEM 38 | ALKALINE 50 | ALKALINE 320 | ALKALINE 360 | ALKALINE 0,5 MW | ALKALINE TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY
Slide 14: Vertical Integration of the Chain
VERTICAL INTEGRATION OF THE CHAINPRODUCTION OF ALKALINE AND PEM ELECTROLYZERS, THANKS TO A DECADE - YEAR TRACK RECORD • PROCESS PARTS • PURIFIER • ELECTRODES Made with proprietary miulds • PRESSURED ALKALINE CELL
Slide 15: Every Component Researched, Designed, Produced and Assembled In House
• PRESSURED PEM CELL EVERY TECHNOLOGICAL COMPONENT IS RESEARCHED, DESIGNED, PRODUCED AND ASSEMBLED IN HOUSE
Slide 16: On-site Generation Has Plenty of Room to Grow
IN “TRADITIONAL” HYDROGEN MARKETS, ON-SITE GENERATION HAS STILL PLENTY • WORKPLACE SAFETY, NO HIGH PRESSURE TANK OR OF ROOM TO GROW LIQUID GAS REQUIRED • COST SAVINGS, IMMEDIATE WITH THE RENTAL FORMULA • INDEPENDENCE FROM GAS SUPPLIERS • NO TRANSPORT OF CYLINDERS AND RELATED COSTS AND CO2 FOOTPRINT
Slide 17: Higher Quality Tailor-Made and Competitive Prices
HIGHER TAILOR-MADE AND COMPETITIVE QUALITY TURKNEY SYSTEM PRICES They increase the value proposition to the It allows ErreDue to enter the customer, thanks to the know-how embedded in market with good value for money. each individual process and component All products and components are conceived, d
Slide 18: Innovation Fostered by R&D Driven Company Culture
LARGEST GENERATED SINCE ELECTORLYTIC H2 PURITY GUARABTEED CELL 2014 ALREADY AT CELL UNDER TESTING ON-SITE LIFETIME REACHES 30 BAR 105 Nm3/h 99,9995% 40,000 H Much lower energy High productivity per unit No need for further More certainty of total consumption for subsequent means lower space needed p
Slide 19: After Sales Market
AFTER SALES MARKET TECHNICAL DEPARTMENT IS HIGHLY SPECIALISED AND TAKES CARE OF PREDICTIVE MAINTENANCE CLIENTS ALONG ALL THE JOURNEY, FROM PLANT DESIGN TO INSTALMENT, TO TIMELY MAINTENANCE IN THE AFTER- MARKET ERREDUE GAS GENERATION AND TREATMENT SOLUTIONS FEED LARGER INDUSTRIAL PLANTS AVAILABILITY
Slide 20: Market
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 21: Growth Prairies in Large Electrolysers for the Hydrogen Transition
GROWTH PRAIRIES IN LARGE ELECTROLYSERS FOR THE HYDROGEN TRANSITION
Slide 22: Long Track-Record of Technologic and Service Reliability
LONG TRACK-RECORD OF TECHNOLOGIC AND SERVICE RELIABILITY ACROSS DIFFERENT APPLICATIONS GREEN POWER-TO-GAS FOR ACEA Turnkey system for H2 production installed on the ACEA Power-to- HYDROGEN gas plant in Torino, for synthetic biomethane REFUELING STATION for lightweight fuel cell vehicles (FCV) alread
Slide 23: Financials FY 2022
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 24: Key Financial
REVENUES EBITDA NET INCOME PFN € 12.3 M € 4.0 M € 1.7 M € 17.4 M € 11,1 M in FY21 € 4,4 M in FY21 € 2,3 M in FY21 € 4,0 M in FY21 KEY FINANCIAL In 2022, there was an increase of 11% EBITDA stood at 32% of turnover, despite the continued closure of the confirming the company's profitability Includes
Slide 25: Revenues Evolution 2016-2022
FULLY ORGANIC ERREDUE REVENUES EVOLUTION 2016-2022 (€M) GROWTH KEY FINANCIAL 12.3 CAGR 2016-2022 DEI RICAVI A DOPPIA-CIFRA 11.1 12 +14.4% 10 8.5 7.6 7.1 MAINLY DRIVEN BY 8 6.8 CONTINUOUS PRODUCT 5.5 6 INNOVATION AND NEW MARKET APPLICATIONS 4 …AND THE LARGE-SIZE 2 H2 PLANTS 0 APPLICATIONS 2016 2017 2
Slide 26: Recurring Revenues from After Sales Activities and Rentals
RECURRING REVENUES FROM AFTER SALES ACTIVITIES AND RENTALS KEY FINANCIAL €M REVENUES 12,3 +13.1% 11,0 19-22 CAGR 8,5 Long-term revenue REVENUES 7,9 EXCL. RENTALS 5,8 7,1 development and share of rental income +15.8% 4,7 3,1 19-22 CAGR 3,2 RENTALS 1,9 2,1 2,4 +2.5% 1,9 1,9 2,0 2,0 19-22 CAGR 2019 202
Slide 27: Breakdown of Revenues by Type
BREAKDOWN OF BREAKDOWN OF REVENUES BY TYPE REVENUES BY TYPE CONTRACT 2022 PRODUCTS 2022 OTHER RENTALS OF PRODUCTS GENERATORS 12% 17% 35% HYROGEN BREAKDOWN 19% 12.3 €M 12.3 €M ASSISTANT AND SPARE-PARTS 64% REVENUES 53% SALES OF GENERATORS OTHER GASES FY REVENUE BREAKDOWN BY GEOGRAPHY (€M) 2022A % Ita
Slide 28: Business Model
CAPEX TRADE WORKING CAPITAL BUSINESS MODEL (€M) (€M) 3,1 2,8 3,1 1,1 1,3 2,6 3,2 2,0 2,4 1,23 2,5 3,6 2,3 (1,0) (1,5) (0,2) (2,4) (0,6) 0.03 (1,3) 1,31 1,33 1,04 2020A 2021A 2022A 2020A 2021A 2022A Rimanenze Crediti Commerciali Debiti Commerciali Anticipi da clienti Capex Tangibili Capex Intangibili
Slide 29: Investment Plan
INVESTMENT PLAN CURRENT SET UP AFTER 2023 TRASFORMATIONAL CAPEX PLA 1 3 HQ AND ASSEMBLY 1 PLANTPLANT– HQ E R&S 2,000 SQM 2,000 SQM OWNED OWNED 4 5 1 2 INDUSTRIALNDUSTRIALO 2 N -SITESITE& 2 FULLY LABORATORYABORATORY DEDICATEDDEDICATEDTO 850 SQM LABORATORYABORATORY& OWNED –850 SQM OWNED PEM 3 4 H2MW P
Slide 30: Growth Strategy
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 31: Growth Policy
Source: Management elaboration on Group consolidated financial statements and Management Accounts GROWTH POLICY LARGE ELECTROLYSERS (15 M W ) FOR GREEN HYDROGEN ENERGY MARKETING TRANSITION TO PENETRATE APPLICATIONS TRADITIONAL UNDERLYING KEEP UNLOCKING MARKETS NEW MARKETS INTERNATIONAL PUSH WITH COM
Slide 32: Appendix
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS FY 2022 GROWTH STRATEGY APPENDIX
Slide 33: ESG CSR
WALFARE POLICY MISSION SAFEWORK AREA ESG CSR 30 22 19 20 11 12 10 8 3 0 2000 2001 2003 2012 2018 2022 Employee-entrepreneurs benefiting from company growth
Slide 34: Electrolyzer Technology to Produce Green Hydrogen
ELECTROLYZER TECHNOLOGY TO PRODUCE GREEN HYDROGEN COMMERCIALIZATION PHASE WATER WASTEWATER DEMOSTRATION PHASE ELECTROLYSIS ELECTROLYSIS R&D PHASE ELECTRICITY ELETRICITY AND HEAT ELECRTOLYSIS ELECTROLYSIS LOW HIGH PHOTOELECTROLYSIS MICROBIAL TEMPERATURE TEMPERATURE ELECTROLYSIS ALCALINE PEM ELECTROLY
Slide 35: Disclaimer
Disclaimer The information contained in this presentation (the “Presentation”) has been prepared by ErreDue S.p.A. (the “Company” or “ErreDue”) for the sole purpose of the presentation made to you concerning the Company. This Presentation and the information contained herein are strictly confidentia
Slide 36: Contacts
C O N TA C T S INVESTOR RELATIONS MANAGER Francesca Barontini investor.relator@erreduegas.it INVESTOR RELATIONS ADVISOR CDR Comunication Marika.martinciglio@cdr-communication.it silvia.dirosa@cdr-communication.it