Cambi ASA

Earnings Release • Mar 7, 2024

Eirik Fadnes, CEO Mats Tristan Tjemsland, CFO

7 March 2024

Disclaimer

This presentation is for information purposes only. Cambi ASA gives no representation or warranty, expressed or implied, as to the accuracy or completeness of any information included herein. No information, including projections, estimates, targets and opinions, contained in this presentation is or can be relied upon as a promise or representation by Cambi ASA.

The presentation contains information obtained from third parties. Such information has been accurately reproduced, and as far as Cambi ASA is aware and able to ascertain from the information published by that third party no facts have been omitted that would render the reproduced information inaccurate or misleading. While all steps have been taken to ensure the presentation's accuracy, Cambi ASA does not accept any responsibility for any errors or resulting loss or damage whatsoever. Readers have the responsibility to check these aspects for themselves thoroughly. Enquiries about the reproduction of content from this publication should be directed to Cambi ASA.

The presentation contains forward-looking statements related to Cambi ASA's current plans, objectives, forecasts and estimates. These statements only consider available information up to the date that this presentation was prepared. Cambi ASA makes no guarantee that these forward-looking statements will prove right. The future development of Cambi ASA and its subsidiaries and the achieved results are subject to a variety of risks and uncertainties, which could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of Cambi ASA and its subsidiaries and, therefore, cannot be precisely predicted.

Financial highlights

Operating income EBITDA Order intake Order backlog Q4 294 59 46 1,542 2023 977 249 1,453

Growing our diverse, talented and highly motivated team

• Ensuring our capacity to deliver impeccable project execution for all new contracts
• Laying the ground for future growth by investing in sales, marketing, and services
• Cambi remains an attractive global employer for experienced professionals and talented youth

Investing in people and collaboration

• Appointed Martine Sunde as Chief People & Culture
• Launched several initiatives
• ‣ Improving onboarding experience
• ‣ Developing new training and continuous learning programmes
• ‣ Increasing collaboration efficiency between geographies and departments

Improving gender equality

Embracing transparency to improve our environmental and social impact

• Sustainability at Cambi's core: Emphasizing health, safety, and environmental stewardship.
• Commitment to integrity and sustainable development through responsible sourcing, manufacturing, and delivery.
• Regular training supports the team in navigating any situations they may encounter
• Progress on supply chain transparency contributes to ensuring decent working conditions and respect for fundamental human rights for everyone connected to our business

Strengthening Cambi through focus on five strategic areas

Be the industry benchmark for sludge treatment

All cities shall consider thermal hydrolysis for their wastewater solids treatment

Well-functioning systems that become good references from satisfied customers

Proactively customer support with value-added services throughout the assets' lifetime

Recycling organic wastes into a diverse array of high-quality and sustainable soil products

6

Industry benchmark for wastewater solids treatment solutions

Continuous investments in research and development

• Launched three new THP models – S, P, and E
• ‣ All already under delivery

• ‣ Part of Cambi's commitment to technological excellence for maximum energy efficiency and reduced maintenance

• Improved our smallest product, the B2 system

• Launched Plug & Go, a modular sludge pre-treatment solution based on the B2

• ‣ Available as asset sales and financed solutions

• Successfully trialled the THP for converting industrial solids into hydrocarbon fuels & chemicals

• ‣ Full-scale plant under delivery to Sasol in South Africa
• ‣ Significantly reducing waste and greenhouse gas emissions

All cities will evaluate Cambi THP for their sludge treatment

Well-functioning THP references and satisfied customers

Customer Satisfaction

Strongford

Oxley Creek

"All the Cambi staff I have dealt with are extremely competent, they have extensive knowledge of the product, helpful and courteous, even in difficult situations."

"Cambi have been a very helpful and open partner throughout the project, I would hope to work with them on future projects."

▪ Timeliness

• Reliability
• Working methods
• Professionalism
• Finding solutions
• Availability
• Training
• Relationship

"Cambi were essential to the successful delivery of the upgrade project. Their site personnel went above and beyond the requirements to making sure that the upgraded system worked «as sold»."

Well-functioning references and satisfied customers

Proactively support clients through value-added services and solutions

• Expanded Services team for enhanced global support
• ‣ Offering advice, annual maintenance, and spare parts
• ‣ Close collaboration for upgrade business cases
• Increasing demand for upgrades and end-of-life replacements
• ‣ Packaged deliveries for improved energy efficiency, capacity, performance
• Key 2023 project highlights:
• ‣ Ringsend, Dublin: Comprehensive THP upgrade, doubling sludge throughput
• ‣ Psyttalia, Athens: Incremental THP adoption for efficient investment
• ‣ Hengelo, Netherlands: System expansion through additional reactor
• ‣ First construction project delivered with Cambi PLUS from the outset, for advanced process insights

Recycling organic wastes into sustainable soil products

• New biosolids handling contract in Trondheim
• ‣ All contracts are executed as planned
• Soil sales growth, including farm soil restoration
• Grønn Vekst opened last summer Norway's first peat-free soil packaging facility in Kristiansand
• Peat-free soil R&D investments are bearing fruit
• ‣ The retail offer now includes four peat-free soil products, LECA, and bark
• ‣ Retail deliveries started in January 2024
• Good prospects for future growth

Cambi will improve solids treatment in Hawaii – major contract

• Cambi has been awarded a contract to supply a THP system to the Honouliuli wastewater treatment plant
• Cambi's 12th project in the US, with operations scheduled to start in 2027
• Modern, efficient, earthquake-safe THP system
• Saves space and cost by substituting new digesters and enables safe biosolids reuse

Grønn Vekst was awarded an important biosolids handling contract

• Grønn Vekst has been awarded one of Norway's largest contracts for handling biosolids for Veas
• Veas is Norway's largest wastewater treatment plant, serving more than 800,000 people
• The contract has a firm duration of 2 years, with two extension options of one year for a total duration of up to 4 years.
• The estimated contract value, including options, is up to NOK 80 million.
• Cambi's process and Grønn Vekst's experience with biosolids-based soil products will strengthen Veas' role in the local circular economy, contributing to a healthier Oslo fjord.

Outlook

• Interest in Cambi's solutions continues to increase
• ‣ Stricter regulations in many markets drive demand for THP systems and peat-free soils
• Measures in place to mitigate geopolitical risks and the financial risks of currency fluctuations
• Cambi continues to target its five strategic focus areas to realise its growth potential
• In 2024, Cambi is utilising its high operational leverage to invest in marketing, sales, and services
• Board will propose of a dividend of NOK 1.00 per share to the AGM meeting on 2 May

Financial performance

Mats Tristan Tjemsland, CFO

Financial highlights for the quarter

• All-time high operating income
• Continued robust EBITDA performance
• High cash flow from operations
• Solid financial position
• Dividends of NOK 0.60 per share were distributed
• A divided of 1.0 NOK per share for 2023 is proposed, subject to approval by the AGM

Cambi ASA

Quarterly operating income and EBITDA

• Solid progress on a high number of ongoing construction projects
• Gross margins in line with previous quarter
• Increase in payroll costs
• Operational leverage unlocking profitability

Cambi ASA

Yearly operating income and EBITDA

• All-time high operating income and EBITDA
• A weak NOK has provided an uplift from project revenues in foreign currencies
• Solid gross margin levels
• EBITDA margin of 25%

Technology

Quarterly operating income and EBITDA

• Technology segment consists of R&D, sales, manufacturing and delivery of construction projects
• Strong performance driven by many ongoing construction projects
• There were 15 ongoing construction projects at the end of Q4
• Variation in project scopes is a key driver for reported gross margin
• Solid profitability unlocked when activity levels are high

Technology

Yearly operating income and EBITDA

• A remarkable year for the Technology segment
• All-time high reported operating income and EBITDA
• Stable development of gross margins
• EBITDA margin of 26%

Solutions

Quarterly operating income and EBITDA

• The Solutions segment consists of all services delivered to existing clients in the installed base and the recycling company Grønn Vekst
• The segment contributed 25% of Cambi's total quarterly operating income.
• The segment had 1 ongoing construction project at the end of Q4 (down from 3 in Q3)
• Gross margins influenced by operating income mix
• EBITDA margin of 24%

Yearly operating income and EBITDA Solutions

• Financial performance of the segment is stable and predictable
• Operating income growth coming from higher activity across the line
• Stable gross margin development
• EBITDA margin of 23%

No notable contract awards during Q4, but an all-time high order intake for the full year 2023

Order backlog was NOK 1.5 billion at the end of Q4, providing a solid financial foundation going forward

Backlog breakdown by execution year provides Cambi good financial visibility for the next years

Profit and loss statement

Consolidated statement of profit and loss

NOK million	Q4-22	Q1-23	Q2-23	Q3-23	Q4-23
Operating income	157	210	238	235	294
Costs of goods sold	67	81	105	119	140
Gross margin	90	128	133	116	154
Payroll expenses	36	39	37	42	64
Other operating expenses	26	33	32	4	32
Operating expenses	62	72	69	45	96
EBITDA	29	57	64	70	59
Depreciation and amortisation	11	6	6	6	6
Operating profit	18	51	58	64	53
Net financial items	0	-2	-5	6	5
Profit (loss) before tax	18	48	53	70	57
Tax expense	-2	0	0	0	44
Net profit (loss)	20	48	53	70	13

• Cost of goods sold does not include payroll costs related to manufacturing
• The reported payroll in Q4 includes a variable remuneration accrual of NOK 17 million for the full year 2023
• Expenses related to R&D are not activated as intangible assets on the balance sheet
• Depreciation mainly related to the acquired technology portfolio, estimated to end medio 2025
• Net financial items mainly related to interest from bank deposits and money market funds
• Tax expense of NOK 44 million mainly due to changes in deferred tax

Balance sheet shows that Cambi has a solid financial position

Consolidated statement of financial position

NOK million	Q4-22	Q1-23	Q2-23	Q3-23	Q4-23
Assets
Intangible assets	82	77	72	67	30
Tangible assets	20	20	31	32	35
Financial assets	1	1	1	1	1
Total non-current assets	103	98	104	99	66
Inventories	43	60	75	75	71
Debtors	163	176	251	222	242
Financial assets	102	102	102	102	108
Bank deposits	167	199	168	282	240
Total current assets	475	537	597	681	661
Total assets	577	635	701	780	726
Equity and liabilities
Equity	402	464	520	489	500
Non-current liabilities	1	1	1	0	0
Current liabilities	174	170	180	291	226
Total liabilities	175	171	181	292	226
Total equity and liabilities	577	635	701	780	726

• Deferred tax assets (part of intangible assets) reduced from NOK 31 million to zero
• A deferred tax (part of current liabilities) of NOK 11 million is recorded
• Bank deposits and financial assets total of NOK 348 million
• No non-current liabilities

Cash flow statement shows solid cash generation in Q4 and 2023

Consolidated statement of cash flows

NOK million	Q4-22	Q1-23	Q2-23	Q3-23	Q4-23
Cash flow from operating activities
Profit/loss before tax	-14	48	53	70	57
Tax paid for the period	-2	0	0	0	-0
Ordinary depreciation	18	6	6	6	6
Change in inventory	2	-17	-15	0	4
Change in accounts receivable	-25	-17	-69	18	-16
Change in accounts payable	2	4	21	-9	10
Effect of exchange rate fluctuations	7	6	3	-6	-2
Change in other accrual items	72	4	6	35	-3
Net cash flow from operating activities	59	34	5	115	58
Cash flow from investment activities
Payments for the purchase of fixed assets	-3	-1	-12	-1	-4
Payments for the purchase of intangible assets	-49	0	0	0	0
Payments for share buy back	-10	-1	0		0
Proceeds for the sales of money market fund shares	100	1	1		0
Net cash flow from investment activities	38	-1	-11	-1	-4
Cash flows from financing activities
Instalment payments of long-term liabilities	-1	0	0	0	-0
Dividends paid			-24		-96
Change investment equity method	1	0	0	0	0
Net cash flows from financing activities	0	0	-24	0	-96
Net change in cash and cash equivalents	97	32	-30	114	-42
Cash and cash equivalents at the start of the period	70	167	199	168	282
Cash and cash equivalents at the end of the period	167	199	168	282	240

• Solid operational cash flow generation of NOK 58 million in Q4 and NOK 212 million for 2023
• Limited investments in 2023, mainly related to Grønn Vekst's new soil packaging facility
• Dividend payments of 96 NOK million made during Q4
• For 2023, the total dividend payments were NOK 120 million (NOK 0.75 per share)
• Cash and cash equivalents do not include financial assets

The Board has proposed to distribute a dividend for 2023

Subject to approval by the Annual General Meeting scheduled for 2 May 2024

Cambi reiterates its ambition to pay 60-80% of net profits for the fiscal year 2024 as dividends

30

NOK

1.00

per share

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