Cambi ASA — Investor Presentation 2021

Aug 31, 2021

Capital Markets Day

31 August 2021

Cambi ASA

Capital Markets Day 2021 Agenda

Eirik Fadnes	CEO Cambi Group	Second-quarter report
Lluis Soler	EVP Operations	Status on project deliveries
Q&A

Per Lillebø	President and CEO Cambi ASA
Julien Chauzy	Sales Director APAC	Sales updates from selected markets
Bill Barber	Technical Director	Carbon footprint – the impact of THP
Maarten Kanters	Managing Director Cambi Invest	Update on new business areas
Q&A

Eirik Fadnes, CEO Cambi Group

Disclaimer

This Presentation is strictly confidential and may not be reproduced or distributed, in whole or in part, to any other person. This Presentation is for information purposes only, and it is expressly noted that no representation or warranty, expressed or implied, as to the accuracy or completeness of any information included herein is given by the CAMBI ASA and that 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.

This 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 to be inaccurate or misleading. While all steps have been taken to ensure the accuracy of this Presentation, CAMBI ASA does not accept any responsibility for any errors or resulting loss or damage whatsoever caused and readers have the responsibility to thoroughly check these aspects for themselves. Enquiries about reproduction of content from this publication should be directed to CAMBI ASA.

This Presentation contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of CAMBI ASA. These statements only take into account information that was available up to and including the date that this Presentation was prepared. CAMBI ASA makes no guarantee that these forward-looking statements will prove to be right. The future development of CAMBI ASA and its subsidiaries and the results that are actually achieved 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.

Q2 2021 | Revenue, EBITDA and pipeline growth

• Revenue growth across all segments
• EBITDA margin expansion of 970 basis points (bps) to 17.1%
• Order intake down 56%
• Order backlog up 3% at constant currency*

Numbers are in million NOK

Q2 2021 | Order intake down 56%

Fewer projects awarded in the market

Warsaw, Poland

This is Cambi's first project with this thermal hydrolysis configuration, set to maximise biogas production and biosolids dewatering, reducing energy, transportation, and incineration costs.

Trondheim, Norway

Grønn Vekst was awarded a contract for handling and composting garden waste in Trondheim. Firm duration of 18 months, with two options for one-year extensions.

Jarocin, Poland

This is Cambi's fourth project in Poland, strengthening the company's position as a leader in sustainable sewage sludge treatment in this market.

Q2 2021 | Revenue growth across all segments

Revenue development by segment | Q2 2021 vs. Q2 2020 | Million NOK

Q2 2021 | EBITDA growth due to scalability

EBITDA growth | Q2 2021 vs. Q2 2020 | Million NOK

H1 2021 | Order backlog up 7.3% from 4Q20

• Revenue growth of 41%
• EBITDA margin expansion before non-recurring items of 545 bps to 11.7%
• Order intake down 34%
• Order backlog up 3% at constant currency*

Numbers are in million NOK

H1 2021 | Equipment driving revenue growth

Revenue development by segment | H1 2021 vs. H1 2020 | Million NOK

H1 2021 | Revenue mix and challenging weather lowering GM %

EBITDA growth | H1 2021 vs. H1 2020 | Million NOK

Backlog distribution

June 2021

86% 14% Backog by segment

Cambi Group Cambi Invest

Backlog distribution

Numbers are in million NOK

Backlog by currency

NOK equivalent at Q2021 FX

Cambi holds a solid financial position

Assets
	-	-

	Q2	Year
2021
Q2	Q2
		2020

Outlook

• Revenue estimated between 480 and 510 million
• NOK 47 million in spare parts sales, soil sales and new equipment contracts during the second half-year to reach lower end of the range
• EBITDA margin estimated between 12 and 14 per cent

Status on project deliveries

Lluis Soler, EVP Operations

Cambi projects

Standardised, modular solutions sludge line

Project scope

Overview – EPC project environment

Main Contractor

Civil	Mechanical	Electrical	Cambi Equipment	Auxiliary Equipment
Know-how Consultant	Know-how	Know-how	Know-how	Know-how
Sub-contractor	Sub-contractor	Sub-contractor	In-house	Supplier

Cambi projects

Operations – How are we organised?

Headquarters

• Project Manager
• Site & Commissioning
• Legal
• Engineering
• Support functions

USA

• Project Manager
• Site & Commissioning

UK

• Manufacturing
• Project Manager
• Site & commissioning
• QA

China

• Project Manager
• Site & Commissioning

Project scope

Example from two projects with different scope

Washington DC – Piscataway (WSSC)

Plant Owner

Main Contractor

Civil	Mechanical	Electrical	Cambi Equipment	Aux Equipment
Know-how Consultant	Know-how	Know-how	Know-how	Know-how
Sub contractor	Sub contractor	Sub contractor	Supervision	Supervision

Verdal – Ecopro

Plant Owner

Main Contractor

Civil	Mechanical	Electrical	Cambi Equipment	Aux Equipment
Know-how Consultant	Know-how	Know-how	Know-how	Know-how
Sub contractor	Sub contractor	Sub contractor	Supervision	Supplier

Strenghts & Results

Strengths Results

Flexibility Standardised solutions Local presence HQ expertise Own production

On time On budget High quality Highly efficient

Customers Customer Satisfaction – Q2 2021

Strongford

"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."

93%

Average satisfaction score

Timeliness

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

Oxley Creek

"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»."

Cambi projects

Status overview – Q2 2021

	Q2	US	CN	UK	HQ
Execution	21	7	4	3	7
Engineering	8	Calgary, AB Kansas City, MO	Hong Kong	Burgess Hill, UK	Lviv Ecopro upgrade Warsaw Jarocin
Manufacturing	4	Raleigh, NC Piscataway (WSSC)	Beijing – Gaoantun upgrade (PGU)	-	Sasol
Installation	5	Dallas, TX Franklin, TN	Chongqing	Coventry	Panama City
Commissioning	2	-	-	Nottingham	Sydney
Performance (Operation)	2	Virginia Beach, VA	Beijing – Qinghe 2	-	-

Cambi projects

Milestones - Q2 2021

	Q2	All	Notes
Milestones	10	10	Achieved at end of Q2
Engineering	2	Burgess Hill – Goddards Green (UK) Verdal – Ecopro upgrade (NO)	(+) Fully operative
Manufacturing	4	Secunda – Sasol (ZA) Raleigh, NC – Neuse River (US) Washington DC – Piscataway (US) Beijing – Gaoantun upgrade (CN)	(+) Fully operative (-) Longer lead time key materials (-) Cost increase in raw materials
Installation	1	Chongqing – Luoqi (CN)	(-) Covid: Panama City – Arraijan (PA)
Commissioning	1	Nottingham – Stoke Bardolph (UK)	(-) Covid: Sydney – St Mary's (AU)
Performance (Operation)	2	Virginia Beach – Atlantic (USA) Beijing – Qinghe 2 (CN)

Capital Markets Day 2021

Agenda

Eirik Fadnes	CEO Cambi Group	Second-quarter report
Lluis Soler	EVP Operations	Status on project deliveries
Q&A

Per Lillebø	President and CEO Cambi ASA
Julien Chauzy	Sales Director APAC	Sales updates from selected markets
Bill Barber	Technical Director	Carbon footprint – the impact of THP
Maarten Kanters	Managing Director Cambi Invest	Update on new business areas
Q&A

Cambi status and key developments

Per Lillebø, President & CEO Cambi ASA

Cambi delivers responsible sludge management solutions

Transforming sewage sludge into renewable resources

The Cambi THP process boosts biogas production, a sustainable fuel for road transport or convertible to green electricity

Thermal hydrolysis is integrated in wastewater treatment plants

Where does Cambi's thermal hydrolysis fit?

Cambi: The undisputed #1 player in our market

Continued focus on technology improvement and standardisation

Status today

Global THP leader, with strong patent portfolio and unmatched know-how

Focus ahead

• Further THP energy efficiency improvements
• Optimising THP operations (Cambi PLUS)
• Improving alternative configurations, such as THP operating after anaerobic digestion

Technology Standardisation

Status today

Standardised product line, which enables scalability, by reducing the risk of errors, and construction and installation costs

Focus ahead

Standardisation of other sludge line processes (especially at smaller facilities), to improve integration, reduce complexity, cost and risk for costs overruns

Time to market – key challenges in the Cambi sales process

Project drivers must be sufficiently strong

Market challenges

• Low sludge disposal costs
• Zero or low cost of carbon
• No requirement for hygienisation

Cambi approach

• Focus on markets with strong drivers/ high long-term potential
• Incentives and regulations that strengthen the drivers for thermal hydrolysis are becoming common

Decision making process is long and complex

Market challenges

• Projects have high capital costs and long-term consequences
• Consultants take time to evaluate all possible alternatives
• Frequent delays, due to lack of firm deadlines or incentives to move quickly

Cambi approach

Increase the sales pipeline in current and new markets

Competition from other (THP) solution providers

Market challenges

• Cambi encounters competitive pressure in most tenders
• Cambi's value proposition not straightforward to understand compared to the alternatives
• Lower complexity/ Capex may trump Cambi's value proposition

Cambi approach

Offer reliable performance at competitive prices

Marketing and sourcing of quality leads is on top of the agenda

increasing outreach

Webinar participants Active projects in the sales pipeline

new projects per month during H1 2021

177 244 Value of submitted quotes million EUR

High tender activity

Carbon intensity of waste-water treatment is becoming a core KPI

Advanced anaerobic digestion is the winning solution for urban wastewater utilities

"By the end of 2022 it is likely that 70% of water utilities serving populations of more than 300,000 in high-income countries will have agreed a target date for achieving net zero carbon status (…) green energy from sludge is the main energy source available to achieve net zero carbon status to power the wastewater treatment plants." – Global Water Intelligence, 2021

The water sector uses 3.7% of global energy

864 TWh, more than 4 times Norway's total energy demand (212 TWh in 2020)

The sector's share of climate gas emissions is probably higher, due to the methane released from wastewater and sludge treatment.

Sales updates from selected markets

Julien Chauzy, Sales Director APAC

Typical municipal projects

In the sludge treatment business

• «From contact to contract» it takes 3-5 years or even longer
• Municipal / Public project phases
• 1. Consultant selection
• 1. Sludge master plan elaboration
• 1. Basic engineering
• 1. Financing
• 1. Tender preparation
• 1. Bids preparation
• 1. Contractor selection and award
• 1. Contract negotiation
• 1. Contract signature

Other projects may move faster

Some exceptions (short-term projects):

• Cambi plant upgrades
• Private or industrial projects
• ‣ Consultancy phase not required
• ‣ Fast procurement process
• ‣ Sole sourcing
• Few municipal projects move fast
• ‣ When there's an urgent issue to solve

Project development & Commitment to Cambi

Buying journey

France

• 67 million inhabitants
• Approx. 1 million tonnes of sludge (as dry solids) produced every year
• 120 wastewater treatment plants with capacity of at least 100,000 people equivalent
• Historically mainly biological sludge type («WAS»)
• Land application is the preferred disposal route (75%)
• Disposal costs are high and keep increasing
• Anaerobic digestion uncommon in the past /
• ‣ Now strong incentives to produce Biomethane
• ‣ France has become a dynamic digestion market
• Post-Covid period: sludge must undergo hygienisation before land application

France

Market drivers Cambi THP

• 120 wastewater treatment plants with capacity of at least 100,000 people equivalent
• Mainly biological sludge («WAS»)
• Land application preferred disposal route (75%)
• Disposal costs are high and keep increasing
• Anaerobic digestion uncommon in the past /
• ‣ Now strong incentives to produce biomethane
• ‣ France has become a dynamic digestion market

• Post-Covid period: sludge must undergo hygienisation before land application

• Fits best at sites with capacity above 100,000 people equivalent

• Is extremely efficient on WAS
• Produces high-quality biosolids for agriculture
• Reduces the volume of biosolids after dewatering
• Improves anaerobic digestion performance and reduces the required digester tank volume

Sterilises the sludge – a safe product for farmers

France

• Is already familiar with thermal hydrolysis:
• ‣ Approximately 10 existing THP plants (by others)
• Has a growing interest in THP
• Is a very promising market for Cambi

Australia and New Zealand

Australia & New Zealand

• Small but active markets:
• ‣ Australia: 25 million inhabitants
• ‣ New Zealand: 5 million inhabitants
• Familiar with Cambi THP technology water utilities and consultants understand it:
• ‣ Reference plants in Brisbane and Sydney

Australia:

• ‣ Land application as main disposal route (>60%)
• ‣ High-quality biosolids recommended in the regulation (pathogen levels)
• New Zealand:
• ‣ Landfill is the main disposal route (>60%)

Australia and New Zealand

Market drivers Cambi THP

Australia:

• ‣ Land application is the main disposal route (>60%)
• ‣ High-quality biosolids recommended in the regulation (pathogen levels)
• ‣ Long transport distances
• ‣ Cake odour is often an issue (at site or during transport)

New Zealand:

• ‣ Landfill is the main disposal route (>60%) costly
• ‣ Landfill requires high shear strengh for storage
• ‣ Water utilities are planning to become energy neutral

Australia:

• ‣ Produces high-quality biosolids for agriculture
• ‣ Produces Grade A biosolids (low pathogen levels)
• ‣ Produces a no- or low-odour cake
• ‣ Reduces the volume of final cake
• New Zealand:
• ‣ Reduces the volume of final cake and the landfill disposal costs
• ‣ Produces a biosolids product suitable for storage (stable, high dryness, high shear strength) and avoids lime addition
• ‣ Produces more biogas, more electricity

India

• 1.4 billion inhabitants only approximately 130 large wastewater treatment plants
• Rapidly increasing sludge generation:
• ‣ Urbanisation, increased collection (from current low coverage of 30%) and treatment
• Many ongoing new tenders for wastewater treatment plants, including sludge anaerobic digestion
• Some large WWTPs, but most are small & medium sized:
• ‣ Opportunities for sludge centres and co-digestion
• Increased demand for biosolids to agriculture
• ‣ Large cities require hygienisation / Pathogen removal, referring to US EPA 503 in tenders
• ‣ Incineration is unpopular and expensive
• Increased demand & subsidies for biogas-based energy and power production
• Sludge disposal & treatment costs low, but continuously increasing

India

Market drivers Cambi THP

• 1.4 billion inhabitants
• Rapidly increasing sludge generation
• Many ongoing new tenders for wastewater treatment plants
• Some large WWTPs, but most are small & medium sized:
• ‣ Opportunities for sludge centres and co-digestion
• Increased demand for biosolids to agriculture
• ‣ Large cities require hygienisation / Pathogen removal, referring to US EPA 503 in tenders
• ‣ Incineration is unpopular and expensive
• Increased demand & subsidies for biogas-based energy and power production
• Sludge disposal & treatment costs low but continuously increasing

Compact solution (low footprint), avoid big digestion facilities, suitable solution for insertion of greenfield plants in existing big cities (land monetization)

Sludge centres have been successful business models for CambiTHP (UK and other places)

Cambi produce a high-quality cake for agriculture

Produces more biogas and more power

Conclusions & Perspectives

Carbon footprint – the impact of THP

Dr Bill Barber, Technical Director

Most technology on a sewage works is over

140years old

Capital Markets Day

Water Energy Nutrient Carbon NOT EFFICIENT

Carbon footprint of the UK Water Industry

Total emissions of 3 mt CO2e, of which 2.4 mt CO2e net, approx. 0.45% of UK*

Carbon footprint and thermal hydrolysis

Biosolids management

Reasons for thermal hydrolysis

Helps 19th century technology meet 21st century demands

Higher capacity for existing equipment

Drier material therefore less volume

Higher quality therefore more applications

Greater production of renewable energy

Impact on thermal hydrolysis on carbon footprint

Greater production of renewable energy

Greater off-set of fossil fuels

Lowest carbon footprint…

…irrespective of outlet

Typical carbon footprint of biosolids options

Basis 100 t DS/day, energy mix 0.43 kg CO2 /kWh

Carbon pricing is increasingly becoming a key driver for investment decisions in many markets

The number of carbon pricing initiatives implemented or scheduled for implementation has quadrupled in the past decade and almost doubled over the last five years, reaching 47 in 2017.

The World Bank, 2021

Global Emissions Trading Schemes (ETS) for carbon and carbon tax

ETS implemented or scheduled for implementation

ETS and carbon tax implemented or scheduled

Carbon tax implemented or scheduled for implementation

ETS implemented or scheduled, carbon tax under consideration

ETS or carbon tax under consideration

Carbon tax implemented or

scheduled, ETS under consideration In 2021, these initiatives would cover 11.6 GtCO2e, representing 21.5% of global GHG emissions

China

Xiaohongmen and Qinghe are in the top 10 lowest carbon footprint treatment works in China*

Gaoantun is on target to become the first carbon neutral wastewater treatment plant in China by 2025*

The current cost of carbon emissions

(at Washington DC's Blue Plains Plant) the carbon footprint was reduced by over 30%

Willis et al., 2018

Would save \$ 31.25 million over 25 years in avoided taxes

Capital Markets Day 64

A lower carbon footprint has value for customers

Assuming water sector pays the prevailing carbon tax rates for all emissions

	THP plant capacity	Reduction in carbon footprint	Avoided cost of carbon (average cost of carbon)
	[tDS/day]	[tCO2/year]	[\$/over project life]
Raleigh	36	555	\$ 350,000
Stoke Bardolph	75	586	\$ 366,250
Finham	120	938	\$ 586,250
Shek Wu Hui	84	10,448	\$ 6,530,000
Lviv	70	128,600	\$ 80,375,000
WSSC	70	5,000	\$ 3,125,000

Timing is of the essence

Cumulative carbon footprint

Even short delays significantly lengthen the time to carbon neutrality

To conclude

Thermal hydrolysis changes sludge properties

Which changes performance

Which reduces risk

This enables wastewater treatment works to meet 21st century drivers

Improved performance reduces carbon footprint, irrespective of end use of the biosolids

By reducing exposure to environmental regulations, price and market fluctuations

Cambi Invest: Update on new business areas

Maarten Kanters, Managing Director Cambi Invest

Objectives for Cambi Invest

"Develop and follow up investment opportunities either in projects applying THP, or in companies related to the THP technology"

Recycling - Grønn Vekst DBO projects

Recycling - Grønn Vekst

Sludge recycling and soil production

Developments

• Preparing for international expansion, identified targets in selected countries, ready to engage in further discussions once travel restrictions are eased
• Grow the domestic business with following initiatives:
• ‣ Investing NOK 10 million in packaging facility to increase sales to consumer segment, preparing for 2023 season
• ‣ Establish soil production and sales in new areas, e.g. Bergen
• Maintain focus on existing sludge and garden waste contracts and winning new tenders

Strong growth outlook for private financing

Market trends – global capital expenditure through privately-financed procurement

0 50 100 150 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR +29% Sludge management (USD million)

Aug 2021

Feb 2021

May 2021

Cambi approach to DBO project development

Objectives

• Assuming the role of (co-)owner and/or operator of sludge treatment plants to take responsible for the performance of the THP facility during its lifetime
• Open to different types of projects, depending on customer preference (e.g. PPP, DBFO, BOT)
• Take minority interest, share dependent on country and project risk profile
• Work with reputable international and local partners
• Intention to maintain stake for duration of the contract, as Cambi can contribute to value creation during operations. Earlier asset sale can be considered.

Activities in last 12 months

• Solid development in DBO pipeline
• Project developers, owners and financiers have reached out to Cambi for cooperation since the IPO
• Several active tenders (mainly in US)
• Captured learnings from unsuccessful tenders to improve our approach
• Building specialized team for DBO development and operations

Main countries with DBO activities (1/4)

North America

USA

Market

• Tightening regulations
• Ageing infrastructure
• DBFO/PPP model well established

Cambi approach

• EQ Renewables – joint venture (non-exclusive) with construction company to develop financed projects

Main countries with DBO activities (2/4)

Europe and United Kingdom

United Kingdom Europe

Market

• Privatised utilities
• Potential for sludge treatment as a service

Cambi DBO approach

• Actively proposing DBO/BOT projects to help existing customers to increase their treatment standards

Market

• Sludge treatment largely a municipal function
• Regionalize sludge treatment

Cambi DBO approach

• Promote private sludge treatment centres

Main countries with DBO activities (3/4)

Middle East and South Korea

Middle East

Market

• High demand growth
• BOT & PPP models are the norm (e.g. Desal)

Cambi DBO approach

• Looking for partners to develop financed projects in the region

South Korea

Market

• Ageing infrastructure, retrofit potential
• Strong THP drivers
• DBFO/PPP models well established

Cambi DBO approach

• Partnering on project-byproject basis

Main countries with DBO activities (4/4)

Emerging Markets

Colombia & Brazil

Market

• Increasing private sector involvement
• Several wastewater concessions have recently been awarded to private operators

Cambi DBO approach

• In dialogue with development partners

India & South Africa

Market

• Increasing interest in private sector participation, national PPP frameworks cumbersome/ under development

Cambi DBO approach

• Looking for local partners to develop financed projects in the region
• Ongoing discussions with international financing institutions to co-invest in projects (e.g. Norfund)

Growth initiatives

Recycling – Grønn Vekst DBO projects

• Strengthen position in domestic market by increasing soil product range

• Enter new markets, through M&A and on the back of DBO projects

• Realise first DBO project in 18-24 months

• Strengthen DBO development organisation
• Identify development partners in key geographies

Thank you

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