Cambi ASA

Investor Presentation • Nov 10, 2022

10 November 2022

Eirik Fadnes, CEO Mats Tristan Tjemsland, CFO Maarten Kanters, Managing Director Cambi Invest

Disclaimer

This presentation is strictly confidential and may not be reproduced or distributed to any other person in whole or in part. The 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 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 check these aspects for themselves thoroughly. Enquiries about the reproduction of content from this publication should be directed to Cambi ASA.

This presentation contains forward-looking statements related to the current plans, objectives, forecasts and estimates of Cambi ASA. 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.

Key Takeaways

Third quarter 2022

Several milestones during the third quarter

New Equipment references in the Nordics, a record year for Cambi in the region 2

New sites in operation in Sydney, Australia and Dallas, USA ² Fredrikstad

50% THP capacity increase booked by Services in Tarnów, Poland

Order intake

Turnkey THP plant to improve digestion before incineration

Copenhagen, Denmark

• Digesters at Damhusåen are old and too small
• ► THP will increase their processing capacity, avoiding building new ones on limited space
• ► It even makes it possible to refurbish the existing digesters one at a time without interrupting the treatment
• Improved biosolids dewatering less to incinerate
• ► THP indirectly increases the capacity, and hence lifetime, of the downstream incinerator at the nearby Avedøre site
• Scope includes all civil works and ancillary equipment
• Start of operations is scheduled for 2025
• ► Construction officially started yesterday

Contract award

Turnkey upgrading of medium-sized sludge treatment centre Fredrikstad, Norway

• Part of Frevar's comprehensive refurbishing of the Øra wastewater treatment plant
• ► Cambi is responsible for the entire sludge line upgrade package, less building new digesters and storage tanks
• ► THP will be maximising biogas output while making highquality soil products at an affordable cost
• Construction contract expected in 2023
• ► Ongoing cooperation phase to define preliminary design and optimise integration for cost and energy efficiency
• ► Only the value of the collaboration phase contract is included in the order backlog
• Start of operations is scheduled for 2027

Important recent developments

Two new equipment contracts have been signed so far in Q4

San Francisco, USA Sofia, Bulgaria

• Major contract for three THP systems to SFPUC for the Southeast Treatment Plant
• THP will enhance operations, reduce the site's carbon footprint, and significantly improve the local environment

• The project will commence in 2022 and is estimated to reach 80% completion at the end of 2025. Commissioning is envisaged for 2028

• Sizable contract for two THP systems to the capital city Sofia for the Kubratovo WWTP

• Robust, sustainable and economical treatment solution for large volumes of biosolids
• Consortium (client) contract still under holding period according to Bulgarian law

Order intake on track to meet target of NOK 1 billion for 2022-2023

Supported by strong economic, regulatory and environmental project drivers

• Including the two additional contracts signed in Q4, 68% of the order intake target of NOK 1 billion for the period 2022-2023 is reached
• When also including the estimated value of contracts expected to be signed at a later stage (framework agreements, letters of intent etc.), around two thirds of the order intake target of NOK 1.7 billion for the period 2022-2024 is reached
• Growing sales pipeline, with several projects

in million NOK

Order backlog growth – two new Equipment contracts Q3 2022

• Order backlog at the end of Q3 was NOK 619 million, up 14% from previous quarter
• The Cambi Group backlog share is 85% versus 15% for Cambi Invest
• Including the two additional contracts signed in Q4, the backlog would be above NOK 1 billion
• By also including the estimated value of contracts expected to be signed at a later stage, the order backlog would be above NOK 1.5 billion

in million NOK1

DBO project development

Q3 update Outlook

• Steady maturing of projects in the UK and USA
• ‣ Several potential customers intend to prepare DBFO sludge treatment tenders

• Progressing with identifying local project development partners in emerging markets

• Expecting to enter exclusive negotiations for at least one project in the near future

• ‣ Contract award conditional on planning permission and successful negotiations
• Launched a new THP package suitable for serviced offering

New THP Plug&Go retrofit package for biosolids AD plants

Making it easy to adopt at smaller digestion facilities

• Simplified project delivery
• ‣ Minimise risk of budget and timeline overruns
• ‣ Compact footprint and few field tie-ins
• ‣ Low organisational execution effort
• Designed for quick deployment
• ‣ Modular units for short installation time
• ‣ Pre-assembled skids eliminate interface issues
• ‣ Easy to move and redeploy (e.g., upon operational contract expiration)
• Peace of mind in daily operations
• ‣ Fully proven technology
• ‣ Guaranteed uptime and performance
• ‣ As-a-service model available

Recycling – Grønn Vekst

Mitigating cost escalation and subdued bulk soil demand

• Stable activity on garden waste and biosolids recycling contracts
• YTD bulk soil sale volumes 7% below 2021, due to lower activity in construction sector
• New soil packaging facility on track to produce for 2023 season
• Implementing growth and profitability initiatives for 2023 season:
• ‣ Increasing sales to the consumer segment
• ‣ Implementing compost production optimisation
• ‣ Establishing soil production and sales in Bergen and Stavanger regions

Cambi ASA – revenue and EBITDA

Q3 2022

• Revenue
• ‣ 16% reduction due to project execution delays at customer sites within both Equipment and Services
• ‣ Several delayed projects are now making progress again
• EBITDA
• ‣ Lower revenue with different revenue mix
• ‣ Higher SG&A costs due to increased salary, travel, and other discretionary costs

Cambi Group – revenue and EBITDA

Q3 2022

• Revenue down 20%
• ‣ Project execution delays defer milestone payments
• ‣ Equipment accounted for 78%, with the rest coming from Services
• Negative EBITDA
• ‣ Lower revenue
• ‣ Similar SG&A

in million NOK

Cambi Invest – revenue and EBITDA

Q3 2022

• Grønn Vekst's revenue remains in line with last year
• ‣ Contracts renegotiated to cover cost increases and executed as planned
• ‣ Higher prices compensate for lower bulk soil sale volumes
• Slightly lower EBITDA
• ‣ Cost inflation for energy, fuel, and transportation
• ‣ Increased investments in DBO project development

Cambi ASA – order intake and order backlog Q3 2022

• Quarterly order intake
• ‣ Two equipment contracts signed in the quarter
• ‣ Several larger contracts came closer to award – two signed so far in Q4
• Backlog up 37%
• The value of all the projects announced to the market but not qualifying for recognition in the backlog as per the third quarter is estimated to be around NOK 500 million

Cambi maintains a solid financial position

Q3 2022

	Unaudited, in NOK million
Assets	Q3 2022	Q3 2021	Year 2021
Intangible assets	88.0	46.0	44.5
Tangible assets .	19.1	19.9	19.8
Financial assets	1.8	2.7	2.1
Total non-current assets	108.9	68.6	66.4
Inventories .	47.9	34.8	45.1
Debtors	144.8	149.3	140.0
Financial assets .	100.5	200.8	200.9
Bank deposits	110.0	141.3	70.1
Total current assets	403.2	526.2	456.1
Total assets	512.1	594.8	522.5

Unaudited, in NOK million Unaudited, in NOK million

Equity	Q 3	Q3	Year
	2022	2021	2021
Total equity	418.6	456.0	442.0

Unaudited, in NOK million

Liabilities	Q 3 2022	Q 3 2021	Year 2021
Non-current liabilities	1.5	11.5	2.4
Current liabilities	92.0	127.3	78.1
Total liabilities	93.5	138.8	80.5
Total equity and liabilities	512.1	594.8	522.5

Thank you

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