Slide 1: Company presentation
Company presentation March 2024
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION WHERE SUCH
Slide 3: Decarbonising Europe’s truck fleet
Decarbonising Europe’s truck fleet An integrated supplier of alternative fuels with a growing network of refuelling stations, supported by a blue-chip customer base Offering biomethane (Bio-CNG), the fast-track option for net-zero trucks with up to 90% lower emissions and reduced costs compared to d
Slide 4: Biomethane as a fast-track and cost competitive solution for fleet owners to decarbonise
Biomethane as a fast-track and cost competitive solution for fleet owners to decarbonise Heavy Goods Vehicles account for 1% of the UK road transport fleet… Bio-CNG offers … but intensive use means they make ~30% lower costs1 and up 5% of UK traffic… 90% lower CO2 emissions2 compared to diesel … and
Slide 5: Strong CNG truck pipeline – implying a need for ~170 refuelling stations across the UK
Strong CNG truck pipeline – implying a need for ~170 refuelling stations across the UK CNG HGVs Gas truck penetration could reach 17-30% of the HGV >18t GVW1 segment by 2030, resulting in up Total market Total market to 89,000 natural gas-powered 51,000 - 89,000 Total estimated market in 2030 HGVs i
Slide 6: ReFuels is a vertically integrated supplier of Bio-CNG
ReFuels is a vertically integrated supplier of Bio-CNG External parties ReFuels-linked External parties Producer Aggregator Retailer Customer Biomethane Renewable CNG producers and Transport Fuels Fuels traders Services (RTFS) Produces/sells Facilitates the supply of ReFuels sits at the centre of Se
Slide 7: A typical Bio-CNG station
A typical Bio-CNG station Gas inlet Fuel dispensers Bio-CNG compressor High pressure storage 8 minutes to fill a 80 trucks per hour tank with 400+ in capacity miles (650 km) range 7
Slide 8: Mass adoption driven by customers’ net-zero ambitions, cost advantages and network effect
Mass adoption driven by customers’ net-zero ambitions, cost advantages and network effect 4,150 tonnes of Bio-CNG 65% growth in monthly dispensed volume in December 2023 in dispensed volumes from 2022 to 2023 48,904 tonnes dispensed volume annualized run-rate1 per December 6,500 heavy goods vehicles
Slide 9: Record-high number of trials demonstrating demand
Record-high number of trials demonstrating demand Demo period 2 Fleet operators typically run a two to three weeks trial of before committing to ordering CNG trucks. Currently six- to nine-month backlog for some demo vehicles Demo period analysis End-of-trial report which includes volumes, GHG savin
Slide 10: Confirmed pipeline with visibility in near-and long-term growth
Confirmed pipeline with visibility in near-and long-term growth Substantial selection of sites in late-stage development Early-stage Late-stage In-build or Opportunities In operation development development under contract Once sites have been The complete Applications are drafted When application is
Slide 11: Roll-out of new stations at major trucking routes
Roll-out of new stations at major trucking routes Recently opened Under construction Corby, Bangor, Aylesford, Doncaster, Northamptonshire North Wales Southeast England Northcentral England Capacity1 25 25 19 19 11 1 Million kg of Bio-CNG annually in total capacity
Slide 12: 5 highly attractive sites next in line to be built
5 highly attractive sites next in line to be built • 5 attractive higher-capacity station locations expected to be ready for construction over the next 4 to 6 months • The company expects the unlevered Internal Rate of Return (IRR) of these 5 new stations to be in the range of 25-45% • These station
Slide 13: Our proprietary mobile refuelling units bring fleets on board before a nearby station is opened
Our proprietary mobile refuelling units bring fleets on board before a nearby station is opened Mobile Refuelling Units (MRUs) designed to dispense Bio-CNG at customers’ facilities: • A cost-effective mobile solution until a CNG Fuels station opens in the area • The 7 MRUs in operation can be commis
Slide 14: Blue-chip customer base supporting roll-out of new stations across the UK
Blue-chip customer base supporting roll-out of new stations across the UK Sample customers Amazon CNG HGV roll-out Amazon fleet at CNG Fuels site • CNG Fuels introduced Amazon’s first 4 ‘pilot’ CNG-fuelled vehicles in early 2021 • Amazon run these vehicles with Amazon Freight Partners (AFP), smaller
Slide 15: ~7 years to transition a trucking fleet to CNG trucks
~7 years to transition a trucking fleet to CNG trucks Sample customers Illustrative replacement cycle for a fleet 100 % 3 13 90 % 33 80 % 53 70 % 73 60 % 93 50 % 100 100 97 87 40 % 67 30 % 47 20 % 27 10 % 7 0% Trial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Diesel CNG 15
Slide 16: Scania and Iveco’s introduction of 6x2 CNG trucks could massively increase the customer order book
Scania and Iveco’s introduction of 6x2 CNG trucks could massively increase the customer order book 4x2 trucks currently represent 14% Major truck suppliers are ramping up of the total articulated trucks in the UK production of 6x2 CNG trucks, a 6x larger market ~7.5% CNG ~0.03% CNG trucks (ReFuels)
Slide 17: Fuel cost savings of switching to Bio-CNG, but also resilient customer adaption during uncertainty
Fuel cost savings of switching to Bio-CNG, but also resilient customer adaption during uncertainty 2000 Brexit Covid Energy crisis High inflation Current fuel cost savings1 compared to 1500 diesel of CNG truck numbers 1000 ~40% Uncertainty and ordering of Work from home, food and Fleet customers had
Slide 18: Station infrastructure is ready for a multi-fuel future
Station infrastructure is ready for a multi-fuel future • Early adoption phase CNG stations are well-placed to serve a • Suitable for HGV requirements Biomethane • Infrastructure being further rolled out future hydrogen market using three • CNG Fuels stations being used common distribution pathways:
Slide 19: Estimated payback of ~5 years for current stations
Estimated payback of ~5 years for current stations Illustrative acc. station economics Expected payback using conservative growth estimates Excluding RTFC sales Annual volume dispensed (million kg) GBP million Accumulated cash flow excluding RTFCs (GBP million) 80 12 ReFuels expects further EBITDA 7
Slide 20: Signs that the European biofuels market is rebalancing
Signs that the European biofuels market is rebalancing • In December, EU announced an investigation into (alleged) Renewable RTF O Transport Fuel Obligation (RTFO) imports of significant quantities of fraudulent biodiesel from 14% 45 China and is now moving to impose penalties and possibly RTFC RTF
Slide 21: Large potential upside to gross margin given incremental RTFC prices in 2024
Large potential upside to gross margin given incremental RTFC prices in 2024 GBP million 34p • Overall, a modest increase in RTFC prices YoY RTFC prices (‘p per RTFC’) during 2024 will create significant incremental Cumulative Gross Margin 2024 value 30p • RTFC prices are currently improving and ReF
Slide 22: Experienced team with incentives to succeed
Experienced team with incentives to succeed Philip Fjeld – CEO, Board of Directors Mike Scott – Construction Director • 20 years of experience in the gas industry • 22 years' experience within the civil engineering and construction industry • Founded FLEX LNG in 2006, listed the company and raised o
Slide 23: Ambition to become Europe's leading integrated supplier of alternative fuels for commercial fleets
Q1 Ambition to become Europe's leading integrated supplier of alternative fuels for commercial fleets Long-term: End-2026: European expansion and multi-fuel 2014-2023: Ramp-up to enable Leading first mass adoption mover position 100 30-40 Number of stations 13 Capacity (number of trucks) 6,500 20,00
Slide 24: Key investment highlights
Key investment highlights Biomethane is the fast-track option for • Heavy goods vehicles account for 1% of UK road transport, but 18% of sector GHG emissions1 net-zero trucks • Through renewable biomethane (Bio-CNG), emissions can be reduced by more than 90%2 Leading position and roll-out plan • Mar
Slide 25: For further information please visit refuels.com
For further information please visit refuels.com 25 ReFuels | Q2'24