Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — IDEAS East Coast Virtual Investor Conference 2022
25 slides from Energy Recovery's conference presentation, Jun 22, 2022
Slide 1: IDEAS East Coast Virtual Investor Conference
NASDAQ: ERII IDEAS East Coast Virtual Investor Conference Energy Recovery Presentation – June 22, 2022 James Siccardi, VP Investor Relations
Slide 2: Forward looking statement
Forward looking statement 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 report include, but are not limited to, statements about our expectations, objectives, antic
Slide 3: Industries benefiting from PX technology
Industries benefiting from PX technology Reverse Osmosis Desalination Energy Recovery operates across industries, reaching key markets Industrial Wastewater Treatment with sustainable, efficient product solutions. CO2 Refrigeration 3
Slide 4: Ongoing Strong Fundamentals
Ongoing Strong Fundamentals Avg. Product Revenue Rapid Growth 20% Growth, 2015-2021 High Margin >68% 2021 Product Gross Margin Strong Balance Sheet $97M Cash & Securities and No Debt 4
Slide 5: Share Price Growth of 3.5X Since 2018 – Outpacing U.S. Indices
Share Price Growth of 3.5X Since 2018 – Outpacing U.S. Indices $20.312 $6.531 2019 2020 2021 YTD ERII S&P 500 Dow Jones NASDAQ Russell 1 As at December 28, 2018; 2 As at June 10, 2022 5 5
Slide 6: What is Energy Recovery Trying to Achieve?
What is Energy Recovery Trying to Achieve? We seek to achieve long-term sustainable growth by accelerating the environmental sustainability of our customers operations Our solutions reduce waste and energy consumption in industrial fluid-flow systems We revolutionized seawater reverse osmosis desali
Slide 7: Targeting 25% - 40% avg. Revenue Growth Through 2026
Targeting 25% - 40% avg. Revenue Growth Through 2026 $570M Refrigeration Industrial Wastewater Desalination $300 $330M $100 $150M+ $70 $130M $30 $102M $200 $200 $127 $146 $102 2021 2022 2023 Low High 2026 Note: These revenue growth range goals, long-term vision and similar statements illustrate poss
Slide 8: Effective ESG Integration
Effective ESG Integration saved for customers on metric tons emissions avoided due to PXs $2.6B energy expenses annually1 12.5M – nearly 3M vehicles removed from the road annually1 98%+ product revenue from energy-efficiency related sources 26TWh Saved in Electricity Consumption 1 Awards & Recogniti
Slide 9: The PX is Energy Recovery’s Core Technology
The PX is Energy Recovery’s Core Technology Anatomy of a Pressure Exchanger Transfers energy from high-pressure to low-pressure fluids (both liquids and gas) through continuously rotating ducts with only one moving part (the rotor). • Best-in-class energy recovery application • Unmatched low life-cy
Slide 10: PX Technology in Action
PX Technology in Action Industry Highlight: PX Technology in Desalination SWRO Industrial Wastewater Treatment CO2 Refrigeration 10
Slide 11: World-Wide Demand for Fresh Water Continues to Outstrip Supply
World-Wide Demand for Fresh Water Continues to Outstrip Supply The United Nations estimates a 40% gap in freshwater supplies by 2030 – equivalent to 75% of the Mediterranean Sea 11
Slide 12: The World Needs More Water
The World Needs More Water Saudi Water Partnership Company has released its Seven-Year Statement for 2020-26 Africa’s largest dam powers dreams of prosperity in Ethiopia – and fears of hunger in Egypt Alaska Villages Run Dry and Residents Worry About a ‘Future of No Water’ 12
Slide 13: We Help Address The Growing Water Gap In Two Fast Growing Industries
We Help Address The Growing Water Gap In Two Fast Growing Industries INDUSTRIAL DESALINATION WASTEWATER Addressable Market Addressable Market • Targeting sales of ~$200M by 20261 • ~$1B with potential to triple by 20301 • 10-20% projected avg. annual market growth • Dependent on regulation to realiz
Slide 14: Our PX Platform Has Come To Dominate Large Scale SWRO Desalination
Our PX Platform Has Come To Dominate Large Scale SWRO Desalination CUMULATIVE WON MEGA PROJECT1 Desal Capacity (m3/day) 20M 18M 16M ERII Competitors 14M 12M Millions 10M 8M 6M 4M 2M 0M '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 TECHNOLOGY STRENGTH = HIGH MARGIN Our ceramics PX P
Slide 15: Transitioning from Harmful HFCs to Natural CO2 Refrigerants
Transitioning from Harmful HFCs to Natural CO2 Refrigerants Global Warming Potential • The global refrigeration industry is a leading user and emitter of hydrofluorocarbons (HFCs), a group of powerful man-made greenhouse gases with a Global Warming (100 Years)2 Potential (GWP) 1 at 1,000 – 13,000 GW
Slide 16: ~$1B annual TAM for ERI by 2030
ERII’s PX Technology is a Game Changer for the Refrigeration Industry ~$1B annual TAM for ERI by 20301 1Energy Recovery projections and estimates based on currently available information. Actual results and figures may differ. 16
Slide 17: Disrupting a Large Market with the PX G
Disrupting a Large Market with the PX G CO2 systems drive up operating costs to owners via higher energy consumption • Our PX G1300 reduces energy consumption in CO2 systems by recycling pressure energy during operations, much as in desalination “A new, groundbreaking application of our pressure exc
Slide 18: PX Technology in CO2 Refrigeration
PX Technology in CO2 Refrigeration PX G13001 Gas pressurized in PX bypasses the compressor Compressor PX converts low pressure pressurizes CO2 up to gas from evaporator to 1,300 PSI. High pressure gas from ~1300 PSI, saving energy gas cooler is converted in PX to low pressure to create cold We have
Slide 19: ESG Strategy & Development
ESG Strategy & Development Framework Alignment Materiality Assessment Development of Goals, Targets, & KPIs • Aligned with UN SDGs 6, 7 and 9 • Engaged shareholders representing 38% of • Developed 6 goals and 13 sub-KPIs across shares outstanding and 12% of employees the 4 most material areas includ
Slide 20: Our Work Across E, S, and G
Our Work Across E, S, and G ENVIRONMENTAL SOCIAL GOVERNANCE Energy Recovery is inherently aligned We deliver sustainable, diversified Strong corporate governance principles with sustainability objectives growth while protecting the livelihood, are key to our success, accountability, health, and safe
Slide 21: Our ESG Goals
Our ESG Goals ENVIRONMENTAL & CLIMATE EMPLOYEES INNOVATION & OPPORTUNITY PRODUCTS CHANGE RISKS GOAL: Develop workforce to GOAL: Report climate-related GOAL: Double emissions GOAL: Deliver products and deliver sustainable, diversified risk strategy and management reductions from our products solution
Slide 22: Governance: Board Structure & Composition
Governance: Board Structure & Composition 22 2 22 2
Slide 23: Energy Recovery’s Sustainable Growth Rests on Three Strategic Pillars
Unique Value Proposition Energy Recovery’s Sustainable Growth Rests on Three Strategic Pillars 23 23 23
Slide 24: Thank You
BO energy recovery: Thank You
Slide 25: Contact Us
Contact Us James Siccardi, VP, Investor Relations Energy Recovery, Inc. +1.832.474.7628 | Mobile 1717 Doolittle Drive jsiccardi@energyrecovery.com San Leandro, CA 94577, USA Lionel McBee, Sr. Mgr., Investor Relations energyrecovery.com +1.832.334.3685 | Mobile limcbee@energyrecovery.com ESG@energyre
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