Erredue S.p.a. · MIL:RDUE
Erredue — H1 2023 Earnings Presentation
37 slides from Erredue's earnings presentation, Sep 28, 2023
Slide 1: ErreDue 1H2023 - 28 September 2023
aR BUY CAS ErreDue 1H2023 2811 SEPTEMBER 2023
Slide 2: Speakers
SPEAKERS ENRICO D’ANGELO FRANCESCA BARONTINI RESULT•PRESENTATION “The man with the ErreDue vision” • In ErreDue since 2001 working in Finance, Admin & • 35+ years experience in Green H2 Control, as well as Head of HR • Multiple times founder: GDF S.n.c. (1974), TECNIMAT • Sole Executive Administrato
Slide 3: Company Overview
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 4: ErreDue Overview
ERREDUE OVERVIEW ErreDue is a G-Local player at the forefront of R&D, production and commercialisation of +38 +50 TAILOR-MADE YEARS OF COUNTRIES OF PRODUCT EXPERIENCE IN INSTALLATION ON-SITE SOLUTIONS FOR: ELECTROLYSIS OF HYDROGEN INDUSTRIAL LABORATORY 7.9 €M +2000 MEDICAL SALES REVENUES IN INSTALLE
Slide 5: 35+ Years of Experience in Generators Production
35+ YEARS OF EXPERIENCE IN GENERATORS PRODUCTION L’ESPERIENZA DI ENRICO D’ANGELO PRIMA DI ERREDUE 1986 Enrico D’Angelo founds Tecnimat 2022 (numerical control and electronic 2000 2014 Well-capitalised, highly positioning devices) and buys profitable micro public Enrico D’Angelo quits Idroenergy, own
Slide 6: Shareholder structure
18,8% 2,6% 3,2% 5,3% 54,0% 16,0% Green H2 Holding S.r.l.* Individual members Axon Partners Group Investments Arca Fondi Sgr Chelverton Asset Management Free float * Multiple voting shares (2 votes per shares)
Slide 7: Overview
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 8: Applications
+ Laser cutting + Heat treatment + Welding + Oenology + Energy + Packaging + Naval * Industry + Precious metals * Synterization + Medical field * Laboratory
Slide 9: Industrial Generators
INDUSTRIAL GENERATORS • Very high purity of the gases produced • More security • Continuity of work • Saving of time and purchased gas
Slide 10: Laboratory Generators
LABORATORY GENERATORS • No waste • More security • Continuity of work • Saving on cylinders trasportation
Slide 11: Medical Generators
MEDICAL GENERATORS • Gas purity at 93% • Low consumption • Plag & Play system • One single unit
Slide 12: Green Energy Transition
GREEN ENERGY TRANSITION • Hydrogen production up to 200 mc/h • Release pressure 5 -12- 30 bar • Purity up to 99.9995, res O2<5ppmV • PDCR 20 to100%. • Guaranteed continuous production from 0% to 100% (24h/7) • Remote assistance: the advanced PLC allows remote control of the machine for remote monito
Slide 13: Proprietary Technology: The Heart of the Generators
PROPRIETARY TECHNOLOGY | THE HEART OF THE GENERATORS. 140 | PEM 38 | ALKALINE 50 | ALKALINE 320 | ALKALINE 360 | ALKALINE 0,5 MW | ALKALINE TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY
Slide 14: Vertical Integration of the Chain
VERTICAL INTEGRATION OF THE CHAINPRODUCTION OF ALKALINE AND PEM ELECTROLYZERS, THANKS TO A DECADE - YEAR TRACK RECORD • PROCESS PARTS • PURIFIER • ELECTRODES Made with proprietary miulds • PRESSURED ALKALINE CELL
Slide 15: Every Component Researched, Designed, Produced in House
• PRESSURED PEM CELL EVERY TECHNOLOGICAL COMPONENT IS RESEARCHED, DESIGNED, PRODUCED AND ASSEMBLED IN HOUSE
Slide 16: On-site Generation Has Room to Grow in Traditional Hydrogen Markets
IN “TRADITIONAL” HYDROGEN MARKETS, ON-SITE GENERATION HAS STILL PLENTY • WORKPLACE SAFETY, NO HIGH PRESSURE TANK OR OF ROOM TO GROW LIQUID GAS REQUIRED • COST SAVINGS, IMMEDIATE WITH THE RENTAL FORMULA • INDEPENDENCE FROM GAS SUPPLIERS • NO TRANSPORT OF CYLINDERS AND RELATED COSTS AND CO2 FOOTPRINT
Slide 17: Higher Quality, Tailor-made and Competitive Prices
HIGHER TAILOR-MADE AND COMPETITIVE QUALITY TURKNEY SYSTEM PRICES They increase the value proposition to the It allows ErreDue to enter the customer, thanks to the know-how embedded in market with good value for money. each individual process and component All products and components are conceived, d
Slide 18: Innovation Fostered by R&D Driven Company Culture
LARGEST GENERATED SINCE ELECTORLYTIC H2 PURITY GUARABTEED CELL 2014 ALREADY AT CELL UNDER TESTING ON-SITE LIFETIME REACHES 30 BAR 105 Nm3/h 99,9995% 40,000 H Much lower energy High productivity per unit No need for further More certainty of total consumption for subsequent means lower space needed p
Slide 19: After Sales Market
AFTER SALES MARKET TECHNICAL DEPARTMENT IS HIGHLY SPECIALISED AND TAKES CARE OF PREDICTIVE MAINTENANCE CLIENTS ALONG ALL THE JOURNEY, FROM PLANT DESIGN TO INSTALMENT, TO TIMELY MAINTENANCE IN THE AFTER- MARKET ERREDUE GAS GENERATION AND TREATMENT SOLUTIONS FEED LARGER INDUSTRIAL PLANTS AVAILABILITY
Slide 20: Market
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 21: Growth Prairies in Large Electrolysers for the Hydrogen Transition
GROWTH PRAIRIES IN LARGE ELECTROLYSERS FOR THE HYDROGEN TRANSITION
Slide 22: Long Track-Record of Technology and Service Reliability
LONG TRACK-RECORD OF TECHNOLOGIC AND SERVICE RELIABILITY ACROSS DIFFERENT APPLICATIONS GREEN POWER-TO-GAS FOR ACEA Turnkey system for H2 production installed on the ACEA Power-to- HYDROGEN gas plant in Torino, for synthetic biomethane REFUELING STATION for lightweight fuel cell vehicles (FCV) alread
Slide 23: Financials 1H 2023
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 24: Key Financial
SALES REVENUES EBITDA NET INCOME NFP € 7.9 M € 2.8 M € 1.5 M € 14.9 M € 5.4 M in 1H22 € 1.7 M in 1H22 € 0.7 M in 1H22 € 17.4 M in FY22 + 69.2% + 127% KEY FINANCIAL + 44.4% Sales Revenues up 44.4% due to the EBITDA Margin at 35,9% vs 30.7% in NFP (cash positive) of € 14.9 million vs increase in all c
Slide 25: Revenues from Sales and Services Evolution 2016-1H2023
ERREDUE REVENUES FROM SALES AND SERVICES EVOLUTION 2016- FULLY ORGANIC 1H2023 (€M) GROWTH KEY FINANCIAL CAGR 2016-2022 DEI RICAVI A DOPPIA-CIFRA +14.4% MAINLY DRIVEN BY CONTINUOUS PRODUCT INNOVATION AND NEW MARKET APPLICATIONS …AND THE LARGE-SIZE H2 PLANTS APPLICATIONS MEGATREND HAS BARELY STARTED 1
Slide 26: Recurring Revenues from After Sales and Rentals
RECURRING REVENUES FROM AFTER SALES ACTIVITIES AND RENTALS KEY FINANCIAL €M REVENUES 12,3 +13.1% 11,0 19-22 CAGR 8,5 Long-term revenue REVENUES 5,8 7,9 7,9 EXCL. RENTALS 7,1 development and share of rental income +15.8% 4,7 3,1 5,2 19-22 CAGR 3,2 2,4 RENTALS 1,9 2,1 +2.5% 1,6 1,9 1,9 2,0 2,0 1,1 19-
Slide 27: Revenue Breakdown
BREAKDOWN • BREAKDOWN OF REVENUES FROM REVENUES FROM SALES AND SALES AND SERVICES SERVICES: BY TYPE BY TYPE PRODUCTS CONTRACT 1H2023 1H2023 OTHER RENTALS OF PRODUCTS GENERATORS 14% 14% HYROGEN BREAKDOWN 43% 20% 7.9 €M 7.9 €M ASSISTANT AND SPARE-PARTS 66% 43% REVENUES SALES OF GENERATORS OTHER GASES
Slide 28: Capex, Working Capital and Net Financial Position
CAPEX TRADE WORKING CAPITAL (€M) (€M) 4.9 3,85 3,1 BUSINESS MODEL 2,8 3,1 3,1 2,6 3,2 2,0 2,4 1,3 5,5 1,1 1,23 3,85 2,5 3,6 2,3 (1,0) (1,5) (2,4) (0,2) (2,5) 0,03 (0,6) 1,04 1,31 1,33 (1,3) (1,2) 2020A 2021A 2022A 1H2023 2020A 2021A 2022A 1H2023 Capex Tangibili Capex Intangibili Inventory Trade rece
Slide 29: Investment Plan
INVESTMENT PLAN CURRENT SET UP AFTER 2023 TRASFORMATIONAL CAPEX PLA 1 3 HQ AND ASSEMBLY 1 PLANTPLANT– HQ E R&S 2,000 SQM 2,000 SQM OWNED OWNED 4 5 1 2 INDUSTRIALNDUSTRIALO 2 N -SITESITE& 2 FULLY LABORATORYABORATORY DEDICATEDDEDICATEDTO 850 SQM LABORATORYABORATORY& OWNED –850 SQM OWNED PEM 3 4 H2MW P
Slide 30: New Plant
COMPANY OVERVIEW BUSINESS MARKET NEW PLANT FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 31: Growth Strategy
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 32: Growth Policy
Source: Management elaboration on Group consolidated financial statements and Management Accounts GROWTH POLICY LARGE ELECTROLYSERS (15 M W ) FOR GREEN HYDROGEN ENERGY MARKETING TRANSITION TO PENETRATE APPLICATIONS TRADITIONAL UNDERLYING KEEP UNLOCKING MARKETS NEW MARKETS INTERNATIONAL PUSH WITH COM
Slide 33: Appendix
COMPANY OVERVIEW OVERVIEW BUSINESS MARKET FINANCIALS 1H 2023 GROWTH STRATEGY APPENDIX
Slide 34: ESG CSR
WALFARE POLICY MISSION SAFEWORK AREA ESG CSR 30 22 19 20 11 12 10 8 3 0 2000 2001 2003 2012 2018 2022 Employee-entrepreneurs benefiting from company growth
Slide 35: Electrolyzer Technology to Produce Green Hydrogen
ELECTROLYZER TECHNOLOGY TO PRODUCE GREEN HYDROGEN COMMERCIALIZATION PHASE WATER WASTEWATER DEMOSTRATION PHASE ELECTROLYSIS ELECTROLYSIS R&D PHASE ELECTRICITY ELETRICITY AND HEAT ELECRTOLYSIS ELECTROLYSIS LOW HIGH PHOTOELECTROLYSIS MICROBIAL TEMPERATURE TEMPERATURE ELECTROLYSIS ALCALINE PEM ELECTROLY
Slide 36: Disclaimer
Disclaimer The information contained in this presentation (the “Presentation”) has been prepared by ErreDue S.p.A. (the “Company” or “ErreDue”) for the sole purpose of the presentation made to you concerning the Company. This Presentation and the information contained herein are strictly confidentia
Slide 37: Contacts
C O N TA C T S INVESTOR RELATIONS MANAGER Francesca Barontini investor.relator@erreduegas.it INVESTOR RELATIONS ADVISOR CDR Comunication Marika.martinciglio@cdr-communication.it silvia.dirosa@cdr-communication.it