Cambi ASA

Investor Presentation • Aug 31, 2022

31 August 2022

Eirik Fadnes, CEO 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.

• Strengthened business drivers
• Confirmation of order intake outlook
• Acquired complementary THP technologies
• Stepping up DBO project development in key markets
• Results marked by force majeure and delays

Circular economy game-changer in sludge management

Solving sustainability challenges in water, energy, and agriculture at the same time

Recycling soil nutrients and micronutrients

Reducing climate gas emissions

New contracts, new markets and more tenders

2 Tender awards, not yet signed

27% Increase in tendered value H1 2022 vs. H1 2021

Order intake

A repeat THP contract at the Psyttalia WWTP

Athens, Greece

• Repeat contract with the private plant operator for the metropolitan water utility EYDAP in Athens
• First Cambi THP system in operation since 2015
• ► Treating half of the biological sludge before drying
• ► Performance compared with untreated biological sludge
• Profitable investment with reliable performance
• ► Higher biogas production and improved dewatering
• ► Lower dryer energy demand considerable savings
• New system will treat the remaining biological sludge
• Cambi has several repeat clients satisfied with the product and services quality, and investment returns

Order intake

First THP contract in North Africa – industrial client Safi, Morocco

• THP at a municipal wastewater treatment plant in a water-stressed port city in Morocco
• Project for the world leader in phosphate fertilisers
• ► OCP Group has ambitious sustainability targets and will reuse the treated effluent for industrial process water
• ► Thermal hydrolysis will increase biogas production and reduce carbon emissions at the site
• Start of operations is scheduled for 2023
• The first African THP contract in South Africa also went to an industrial client
• ► Full-scale pilot for industrial biological sludge for the integrated energy and chemicals company Sasol

Order intake

Innovative THP design at greenfield treatment centre near Oslo Lillestrøm, Norway

• THP plant with the latest design for higher energy efficiency and maximum value creation
• Key technology for greenfield sludge treatment centre
• ► Maximising biogas output for green hydrogen production
• ► Minimising the site's carbon footprint
• ► Producing high-quality soil products
• Start of operations is scheduled for 2025

Order backlog growth – three new Equipment contracts H1 2022

Backlog development

Backlog by currency

Backog by segment

million NOK equivalent at Q2 2022 FX

Recent developments

Two turnkey contracts signed so far in Q3

Copenhagen, Denmark Fredrikstad, Norway

• Turnkey contract for a thermal hydrolysis plant for BIOFOS at Damhusåen WWTP
• Improving site energy balance, reducing costs and carbon emissions

• Hand-over in 2024

• Turnkey contract for a sludge treatment plant for Frevar at Øra WWTP

• Reducing operational costs and simplifying biosolids handling following sterilisation
• Signed collaboration phase contract, with construction contract expected in 2023 and hand-over in 2027

On track to meet order intake targets

Strong business fundamentals and robust sales pipeline

• Ca. 30% of expected order intake by 2023 secured as per reporting date
• Ca. 45% of expected order intake by 2024 secured by contracts, tender awards and letters of intent as per reporting date
• Several projects maturing in all key geographies

Medium-term outlook for Equipment order intake

in million NOK, starting from second quarter 2022

Strengthened THP patent portfolio

Underlining commitment to supplying the best treatment technologies in anaerobic digestion projects

• Cambi acquired all patents, trademarks and know-how related to the Exelys and Thelys technologies
• Opens opportunities in new market segments
• ‣ Smaller and CAPEX-sensitive wastewater treatment plants
• ‣ Biogas substrates other than wastewater solids and food waste

EXELYSTM

• Continuous THP system with 9 references
• Suitable at small wastewater treatment plants

BIO THELYSTM

• Batch THP system similar to Cambi's with 11 references in France, UK, Italy, and Poland
• Suitable at small and medium-sized wastewater treatment plants

DBO project development

Q2 update Outlook

• Good progress for projects in the UK and USA
• Several projects in emerging markets are developing slower than expected

• ‣ Ongoing process of identifying local partners to mature discussions beyond the feasibility stage

• Expecting to enter exclusive negotiations before the end of 2022 on at least one project

• Stepping up efforts to promote a full-service concept

Recycling – Grønn Vekst

Sludge recycling and soil production

• Stable activity levels on organic waste contracts, as envisaged
• Bulk soil sales slightly below 2021
• Several growth and profitability initiatives:
• ‣ Production optimisation and commercial strategy review to secure healthy margins amid pricing uncertainty
• ‣ Establishing soil production and sales in the Bergen and Stavanger areas
• ‣ Investing in a packaging facility to increase sales to the consumer segment

Recycling – peat-free soil bags

On track for growth in peat-free soil bags segment

Developing environmentally superior products Soil bag factory construction underway

• Peat mining is unsustainable
• ‣ Releasing vast amounts of stored carbon
• ‣ Depleting peat bogs
• Grønn Vekst launched its first peat-free soil in 2006
• ‣ The market was not ready
• ‣ Restarted development in 2015, refining the recipes with new ingredients to optimise price, fertiliser value, soil structure and raw material access

Estimated Norwegian market for soil bags

• ‣ 300-400 thousand tonnes (15-20 million bags)/ year
• ‣ 2-3% was peat-free in 2021, with Grønn Vekst capturing about 50% of the segment
• New soil bag factory ready for the 2023 season
• ‣ Up to 40,000 tonnes (2 million bags)/year
• ‣ Flexible setup to pack other products or expand capacity

Q2 2022 | Cambi ASA – revenue and EBITDA

Revenue

• ‣ Low revenue recognition, with the project in Lviv on hold due to force majeure
• ‣ Supply chain disruptions and delays at customer sites affecting execution of backlog projects

EBITDA

• ‣ Lower revenue and different revenue mix
• ‣ Increased raw materials and energy costs
• ‣ Higher SG&A costs due to increased activity

in million NOK

Q2 2022 | Cambi Group – revenue and EBITDA

• Revenue down 29%
• ‣ Lower recognition and fewer project milestones reached at end of the quarter
• Negative EBITDA
• ‣ Lower revenue
• ‣ Increased cost of materials
• ‣ SG&A at the same level as in Q1 2022. Increased compared to same period last year due to higher activity in sales and marketing and general cost increase.

Q2 2022 | Cambi Invest – revenue and EBITDA

• Grønn Vekst revenue in line with last year
• Slightly lower EBITDA
• ‣ Cost at 2021 levels except for rising fuel and transportation prices
• DBO projects progress as expected

Q2 2022| Cambi ASA – order intake and order backlog

• Quarterly order intake
• ‣ Three equipment contracts signed in the quarter
• ‣ Several larger contracts coming closer to award
• Backlog up 16%
• The value of all the projects announced to the market but not qualifying for recognition in the backlog as per the second quarter is estimated at more than NOK 460 million.

H1 2022 | Cambi ASA highlights

• Revenue down 28%
• EBITDA impact a result of slower project execution and increased sales and marketing activity.
• Order intake down 5%
• Order backlog up 16%

Cambi has a solid financial position

	Unaudited, in NOK million		Unaudited, in NOK million
			Unaudited, in NOK million

Equity	Q2	Q2	Year
	2022	2021	2021
Total equity	418.3	442.9	442.0

Unaudited, in NOK million

Liabilities	Q 2 2022	Q 2 2021	Year 2021
Non-current liabilities	1.8	11.9	2.4
Current liabilities	96.0	144.2	78.1
Total liabilities	97.8	156.1	80.5
Total equity and liabilities	516.1	599.0	522.5

Thank you

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