Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Fearnley Securities Annual Conference 2020
18 slides from Energy Recovery's conference presentation, Nov 23, 2020
Slide 1: Driving Industrial Sustainability: Delivering Value in Fluid-Flow Processes
Exhibit 99.1 Driving Industrial Sustainability Delivering Value in Fluid-Flow Processes November 24, 2020 Joshua Ballard, Chief Financial Officer, Energy Recovery NASDAQ: ERII
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: Energy Recovery Snapshot
ENERGY RECOVERY SNAPSHOT Financial Snapshot2 We develop and manufacture the PX® Pressure Exchanger®, a technology Product Rev Growth platform that reduces waste, improves operational efficiencies and drives Avg. Rev. Growth ‘15-'19 17% significant cost-savings for our customers 2020 (estimated) 25%
Slide 4: We Have a Growing ESG Story
WE HAVE A GROWING ESG STORY saved for customers on PXs installed worldwide $2.0B energy expenses1 25k product revenue from metric tons emissions avoided energy-efficiency related due to PXs* = >2.5 million 90% products 12.4M vehicles removed from the road PXs use components made Of waste metal from
Slide 5: Pressure Exchanger Technology Platform
PRESSURE EXCHANGER TECHNOLOGY PLATFORM Anatomy of a Pressure Exchanger Transfers energy from high-pressure to low-pressure fluids o We drive benefits by applying this through continuously rotating ducts with only one moving part technology to industrial fluid-flow systems: (the rotor) ▪ Decreased en
Slide 6: How Pressure Exchanger Technology Reduces Energy Consumption
HOW PRESSURE EXCHANGER TECHNOLOGY REDUCES ENERGY CONSUMPTION Sealed Phase Pressure Exchange Phase Two fluids on opposite sides of Rotor duct rotates to 1. Low pressure driven fluid PX; rotor duct is sealed, isolating pressure exchange phase enters the rotor duct high, low pressure fluid streams 2. H
Slide 7: Pressure Exchanger Technology in Action: PX for SWRO
PRESSURE EXCHANGER TECHNOLOGY IN ACTION: PX PRESSURE EXCHANGER FOR SWRO Flagship PX device recycles energy, reducing operational costs and emissions in SWRO facilities Without Energy Recovery Devices (ERDs) With PX Pressure Exchanger Approx. 60% of energy wasted during SWRO PX lowers energy consumpt
Slide 8: 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) 20,000,000 ERII Competitors 10,000,000 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Technology Strength = High Margin 70% ERII Gross Margin2 25% Russell 2000 I
Slide 9: New Water Demand and Technology Shift Driving Secular Shift in SWRO
NEW WATER DEMAND AND TECHNOLOGY SHIFT DRIVING SECULAR SHIFT IN SWRO Annual SWRO Capital Expenditures1 $8B SWRO Industry $130M ERI Product Revenue2 $6B $100M $4B $70M $2B $40M SWRO Industry Capex Industry SWRO Energy Recovery Revenue Recovery Energy $0B $10M '14 '15 '16 '17 '18 '19 '20 '21 '22 Our gr
Slide 10: The World Needs More Water
THE WORLD NEEDS MORE WATER Saudi Water Partnership Company has released its Seven-Year Statement for 2020-26 Confidential & Proprietary 10
Slide 11: Existing Fresh Water Supplies Will Likely Not Meet Future Demand
EXISTING FRESH WATER SUPPLIES WILL LIKELY NOT MEET FUTURE DEMAND 60% >2B People 30% 26% The world will only 1/4 of all people live Potable water demand Global population is have 60% of the water in high water-stress expected to increase expected to grow from it needs by 2030 territories 30% by 2050
Slide 12: Thermal Desalination Technology Shift to RO Underpinning Market Growth
THERMAL DESALINATION TECHNOLOGY SHIFT TO RO UNDERPINNING MARKET GROWTH SWRO Eclipsed Thermal Desalination as Technology of Choice in the 2000s o Existing thermal capacity should eventually be replaced by SWRO without impacting base demand for water o SWRO is more efficient, less energy intensive and
Slide 13: Leveraging PX Technology for Growth and Diversification Beyond Desalination
LEVERAGING PX TECHNOLOGY FOR GROWTH AND DIVERSIFICATION BEYOND DESALINATION Ultra High- Other Future Zero Mixing VorTeq / O&G Pressure RO Industries Enabling Technologies Transformative Technologies o Incremental R&D: widen technical aperture o Potential to transform an industry, as we of PX technol
Slide 14: Zero Liquid Discharge - Ultra High-Pressure RO for Industrial Wastewater
ZERO LIQUID DISCHARGE (ZLD) - ULTRA HIGH-PRESSURE RO FOR INDUSTRIAL WASTEWATER o India and China have mandated ZLD requirements aimed at reducing industrial wastewater discharge and reusing water o We can lower the high cost of ZLD processes by recovering up to 60% of wasted energy depending on syst
Slide 15: Disciplined Focus Driving Top and Bottom-Line Growth
DISCIPLINED FOCUS DRIVING TOP AND BOTTOM-LINE GROWTH Drive Diversified PX Top Line Growth1 17% Average Annual Growth Projected Desal Revenue Growth Up to Up to 25% 10% 25% With successful R&D efforts, 5% 19% z 44% 14% 17% diversified growth by applying PX technology across variety of $73 $44 $50 $58
Slide 16: ESG at Energy Recovery
ESG AT ENERGY RECOVERY o First Environmental, Social, Governance (ESG) report issued Sept 2020 ▪ Aligned with SASB and GRI sustainability reporting frameworks; select United Nations Sustainable Development Goals o Our products address climate change, sustainable industrialization, energy efficiency,
Slide 17: Thank You
Bo energy recovery’ Thank You
Slide 18: Contact Us
CONTACT US Joshua Ballard, CFA, CMA Energy Recovery, Inc. +1 510.483.7370 | Office 1717 Doolittle Drive jballard@energyrecovery.com San Leandro, CA 94577, USA ESG@energyrecovery.com energyrecovery.com (for ESG inquiries) Confidential & Proprietary 18
Energy Recovery — Fearnley Securities Annual Conference 2020 on 6ix