Erredue S.p.a. · MIL:RDUE
Erredue — Next Gems 2024
29 slides from Erredue's conference presentation, Oct 22, 2024
Slide 1: Next Gems
NEXT GEMS October 22", 2024 WWW.ERREDUEGAS.IT
Slide 2: Speakers
SPEAKERS ENRICO D'ANGELO 1 FRANCESCA BARONTINI FOUNDER 4 ie CHIEF EXECUTIVE OFFICER ELIANA BOLLINO COMMUNICATION & ESG DEPT.
Slide 3: A high-tech industrial company in the gas generation sector
A high-tech industriel company in the gas generation sector worldwide, supplying nitrogen, oxygen and hydrogen generation machines in both alkaline and pem technology and, thanks to its extensive experience, scaling up to large hydrogen generation machines for the energy transition With over 20 year
Slide 4: ErreDue Products Portfolio
ERREDUE PRODUCTS PORTFOLIO LABORATORY INDUSTRY ENERGY TRANSITION PLANT
Slide 5: Key Success Factors
Slide 6: Full System Offering Customized for Diversified End-Market Applications
Slide 7: Logistic Advantage Sustainability
LOGISTIC ADVANTAGE SUSTAINABILITY
Slide 8: On-Site Gas Generation
w ON-SITE GAS GENERATION SCALABILITY ACROSS MULTIPLE END MARKETS s) } = On site technical gas generation is quickly spreading ! across industrial, laboratory and medical applications, leading to end-market diversification * On-site generated hydrogen currently represents less than 1% of global hydro
Slide 9: ErreDue hydrogen plants delivered to Snam and SACMI
Energia: idrogeno, primo trattore portuale per movimento merci ErreDue consegna un elettrolizzatore da | IN H2 P PLANTS > SACMI 500 kW a Snam per test su mobilita e a ae aan aan a see teri re e) y ' Cc - E ES | | La prima piastrella cotta con un forno 100% a idrogeno? E di SACMI
Slide 10: Vertically Integrated Business Model
VERTICALLY INTEGRATED BUSINESS MODEL All design’ and production know how is internal. ErreDue's production department is capable of preducing in a short time, gas generators of different sizes and related accessories. O1 02 Electrolytic cell Metal shell The heart of the machine, it Component without
Slide 11: Success Features
SUCCESS FEATURES HYDROGEN GROWTH +40% BACKLOG * €22m EBITDA Margin > 30% CASH CONVERSION** > 50% HYDROGEN REVENUES ted 1é hyd a 40% increase in sal of 2 2024 TOTAL BACKLOG €22 M
Slide 12: Revenues Breakdown 1H2024
REVENUES BREAKDOWN 1H2024 OTHER PRODUCTS RENTALS OF -73.6% VS 1H23 GENERATORS +8.5% VS 1H23 HYROGEN io +40.1% VS 1H23, OTHER GASES -21.7% VS 1H23 1.7M SERVICE E SPARE PARTS +10.8% VS 1H23, SALES OF REVENUES GENERATORS BREAKDOWN BY 8.3% VS 1H23 PRODUCTS 1H2024 REVENUES BREAKDOWN BY CONTRACTS 1H2024
Slide 13: Recurring Revenues
RECURRING Long Term Rental The rental of the el down the wall of diffidence regarding new y and its introduction In’a production line an average term of 65 months and are ErreDue spa Research and Development REVENUES After Market to installation d exe! ely be ‘al Departnent take: sively components d
Slide 14: Core Revenues, EBITDA Margin and Net Profit
(em) CORE REVENUES (em) RECURRING REVENUES 114 2021A 20224 2023A 2024-1H 2021A 2024-ANNUALIZED ) EBITDA MARGIN (eM) NET PROFIT a = “3.40 2.25 - Ea 2021A 2022A 2023A 2024-1H 2021A 2022A 2023A 2024-1H
Slide 15: Capex, Net Financial Position and Working Capital
(eM) CAPEX (em) NET FINANCIAL POSITION (CASH) se Taiigible AsSats intangible Assit Cash & cash equivalents = S-T Financial Credit = ML-T Financial Debt 17) 03) }— 09 119.0)| 11.33] 20224 2023A 1H 2024 2021A 2022A 2023A 1H2024 tem) TRADE WORKING CAPITAL Roict*) Inventory Trade receivables = Trade pay
Slide 16: Market Overview
MARKET OVERVIEW The surging global demand for low-emission hydrogen opens up significant growth opportunities Low-emission hydrogen from electrolysis Government funding for hydrogen in 2023, +46% vs 2022 +3.000x Formalized 2030 targets of countries’ net-zero strategies <O1MtH, Pe 2022 2030 2050 Sour
Slide 17: Green Power and Hydrogen Sectors
Green power Wind, solar, hydro: <—— he-electification jas turbine, vel cells Electrolyzer —> Bie Rininasila syriniests —— —&ae.------- Hi: : Methanal synthesis Ail Electric cars, from CO; and He Gs \ saat ae Mobility a4 Petrochemical Heavy trucks, em industry Sousce: Shoanis marine lee SECTORS GROWI
Slide 18: Strategic Positioning
L l g STRATEGIC POSITIONING m Y = Broader vision of the hydrogen market, which extends beyond the energy transition to embrace industries' decarbonization = Extremely high quality and reliability of generators, thanks toe over 30 years of experience, proprietary technology, and a fully-integrated bu
Slide 19: Strategic Growing: New Production Site
STRATEGIC GROWING NEW PRODUCTION SITE will be able to produce up plants per year in a single shift; productic be doubled in the case of two shifts lt a | 11 ! ae eT Me | | Fil! !|) Se
Slide 20: New Production Site
NEW PRODUCTION SITE 60 4 plants per year on one shift production lines 17,000 sqm hew area increasing to 7 27,000 sam 2 : total area 20
Slide 21: Foreign Expansion: Industrial and Laboratory
Industrial Laboratory +30 Dealers +70 Dealers +20 Countries +50 Countries +40% of revenues abroad 1H 2024 % 1H 2023 % Total 7682 100% 7855 100% FOREIGN EXPANSION
Slide 22: ESG Agenda 2030
ESG AGENDA 2030 Environment Governance nature of
Slide 23: Environmental Achievements
gM ENVIROMENTAL ACHIEVEMENTS © & “aw SUSTAINABILITY REPORT &} CARBON FOOTPRINT RENEWABLE ENERGY fF 650 Kw
Slide 24: Social Achievements
gi, By a SOCIAL ACHIEVEMENTS > a “ay GENDER im EDUCATION x WELFARE EQUALITY &BONUS
Slide 25: Governance Achievements
Slide 26: Appendix
APPENDIX
Slide 27: ErreDue is totally in-house
ErreDue is design and totally in-ho ts d the compone echn LABORATORY & INDUSTRY DECARBONIZATION AND ENERGY TRANSITION institutions are , and the problem Is turning nstream r Minority future is de purpo
Slide 28: The Pioneering Years, Growing Years and Years to Come
THE PIONEERING YEARS ErreDue was founded in 2000 by Enrico D'Angelo. The company was able to play leading role immediately thanks to the beckgrqund af its founder, who as early as the mid4@80s began to take 2 strong interest in the hydrogen market producing first alkaline generators. THE GROWING YEA
Slide 29: Thank you
Thank you