Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Investor Presentation (March 2021)
22 slides from Energy Recovery's investor presentation, March 2021
Slide 1: Driving Industrial Sustainability: Delivering Value in Fluid-Flow Processes
Driving Industrial Sustainability Delivering Value in Fluid-Flow Processes Energy Recovery Investor Presentation – March 2021 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 We design and manufacture solutions that accelerate the environmental sustainability Financial Snapshot2 of our customers' operations. Product Rev Growth Avg. Growth ‘15 - ’20 21% Our solutions increase efficiency and lower 2020 27% lifecycle cost by reducing waste and energ
Slide 4: We Have a Growing ESG Story
WE HAVE A GROWING ESG STORY saved for customers on $2.0B energy expenses annually1 25k+ PXs installed worldwide product revenue from metric tons emissions avoided 90%+ energy-efficiency related products 12.4M due to PXs = >2.5M vehicles removed from the road annually1 PXs use components made Of wast
Slide 5: 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 6: Industries Served
INDUSTRIES SERVED Commercial products across multiple sectors Industry Markets Customer Type Key Benefits Provided o International o Less Energy o Seawater Desalination EPC Firms Consumption o Brackish Water o Desalination OEMs o Lower Emissions Desalination o Plant Owners o Reduced Costs and/or Ope
Slide 7: Commercially Available Product Categories
COMMERCIALLY AVAILABLE PRODUCT CATEGORIES Desalination Industrial Wastewater Treatment Energy Recovery Devices Energy Recovery Device PX® Pressure Exchanger® Turbocharger Ultra PX™ Natural Gas Processing Pumps Energy Recovery Device AquaBold™ ATMP IsoBoost Please visit EnergyRecovery.com for complet
Slide 8: Pressure Exchanger Technology Platform
PRESSURE EXCHANGER TECHNOLOGY PLATFORM 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) o Our pressure exchanger technology works as a platform to build product
Slide 9: 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 10: Pressure Exchanger Technology in Action: PX for SWRO
PRESSURE EXCHANGER TECHNOLOGY IN ACTION: PX PRESSURE EXCHANGER FOR SWRO o Flagship PX device recycles energy, reducing operational costs and emissions in SWRO facilities o PX plays similar role in other vertical markets - although benefits differ across product applications, energy efficiency is a c
Slide 11: 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 Millions ERII Competitors 10M 0M '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Technology Strength = High Margin 69% ERII Gross Margin 2 25% Russell 2000 Indu
Slide 12: 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 $10B SWRO Industry $130M ERI Product Revenue2 Energy Recovery Revenue $8B SWRO Industry Capex $100M $6B $70M $4B $40M $2B $0B $10M '14 '15 '16 '17 '18 '19 '20 '21 '22 Our growth roughly tracks overa
Slide 13: 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’ Confidential & Proprietary
Slide 14: 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 15: Technology Shift from Thermal to SWRO: $0.5B TAM
TECHNOLOGY SHIFT FROM THERMAL TO SWRO: $0.5B TAM TO MAINTAIN EXISTING CAPACITY SWRO Eclipsed Thermal Desalination as Technology of Choice in the 2000s o Existing thermal capacity should eventually be replaced by SWRO o We are seeing this demand in our revenue and pipeline today o SWRO is more effici
Slide 16: Building Long-Term Sustainable Growth and Value
BUILDING LONG-TERM SUSTAINABLE GROWTH AND VALUE Revenue Growth Increase Bottom Line Sustainability New Technologies Leverage Existing Assets Environmental Sustainability Develop new PX products, widen Large investments in Accelerate the sustainability of technical aperture organization not needed fo
Slide 17: Leveraging PX Technology for Diversified Growth Beyond Desalination
LEVERAGING PX TECHNOLOGY FOR SUSTAINABLE DIVERSIFIED GROWTH BEYOND DESALINATION o Manage pressure energy between fluid flows Fluids o Relatively clean seawater to caustic pressure pumping proppant; CO2 gas o PX Platform – focus on reducing energy consumption o 1,000 - 10,000+ PSI (70 – 700 bar) Tech
Slide 18: Ultra PX – Energy Recovery Device for Industrial Wastewater
ULTRA PX – ENERGY RECOVERY DEVICE FOR INDUSTRIAL WASTEWATER LAUNCHED IN 2020 o Countries are mandating zero liquid discharge (ZLD) to mitigate environmental effects of industrial wastewater discharge o Ultra High-Pressure RO (UHPRO) could supplant thermal as the prevalent technology due to superior
Slide 19: VorTeq – Major Hurdles Remain to Commercialize
VORTEQ – 2 MAJOR HURDLES REMAIN TO COMMERCIALIZE VorTeq seeks to protect pumps from abrasive proppant o Increase safety of operations o Reduce emissions, energy intensity of pump operations o Decrease pump failures o Lower maintenance, capital costs Status of Commercialization o Completed multiple f
Slide 20: Disciplined Focus Driving Top and Bottom-Line Growth
DISCIPLINED FOCUS DRIVING TOP AND BOTTOM-LINE GROWTH Drive Diversified PX Top Line Growth1 21% Average Annual Growth Projected Desal Revenue Growth 25% 10% 27% With successful R&D efforts, 5% 19% z 44% 14% 17% diversified growth by $92 applying PX technology $44 $50 $58 $61 $73 across multiple indus
Slide 21: Thank You
zo) energy recovery’ Thank You
Slide 22: 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 ESG@energyrecovery.com energyrecovery.com (for ESG inquiries) Confidential & Proprietary 22