Cambi ASA Q1 2022

24 May 2022

Eirik Fadnes, CEO Maarten Kanters, Managing Director Cambi Invest

Disclaimer

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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.

Business update

A stronger organisation and technology portfolio position Cambi for accelerated growth

Strong market position, primed for growth Temporary operational challenges

New improved THP models and ancillaries are eliciting interest from potential buyers
Newly acquired technologies may open new large market segments
Strengthened capability to participate in alternative project delivery models (DBO/PPP)
Sustained supply chain disruptions, partly due to lockdowns in China and war in Ukraine
High and volatile raw material and energy prices, driving cost inflation
Lower progress in project execution and Lviv project on hold due to force majeure

High tender, installation and commissioning activity

Cambi continues to deliver on customers' project schedules

Several construction milestones

Start-up in Coventry and Verdal Installation in Raleigh, Piscataway and West Sussex

Important tender award

Vestfjorden Avløpsselskap (Veas), Asker, Norway started best-value procurement (BVP) process

Two new equipment contracts so far in Q2

Adding up to a total capacity to serve 112 million people

Athens, Greece Safi, Morocco

Repeat contract, first THP system in operation since 2015
New system will treat the remaining half of biological sludge at Psyttalia WWTP
First contract in North Africa
Contributing to client's climate mitigation efforts and municipality's efficiency and resilience in a water-stressed environment

Mid-term order intake

Strong business fundamentals and robust sales pipeline

One-third of the expected order intake by 2023 is backed by tender awards and letters of intent
Several projects maturing in all key geographies
- ‣ North America, Europe, Asia, Oceania, and emerging markets
- ‣ Clients indicate a desire for expedited delivery

Biogas markets gearing for rapid growth

THP contributes to net-zero emissions targets for ambitious municipalities and water utilities
The additional biogas is a domestic, affordable renewable energy source
- ‣ Replacing some of the expensive/ uncertain natural gas imports from Russia

Medium-term outlook for Equipment order intake

Acquisition of Veolia THP technologies

Expanding Cambi product portfolio

Cambi owns now all patents, trademarks and know-how related to the Exelys and Bio Thelys technologies
Accelerating Cambi's entry into attractive and sizeable 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 smaller 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-size wastewater treatment plants

DBO project development

Q1 update Outlook

Delivered comprehensive proposal to ongoing tender
Followed up feasibility studies with indicative proposals and customer dialogues
New leads were added to the pipeline
Anticipating an invitation to negotiate a DBFO contract
Actively positioning to respond to upcoming DBO tenders

Q1 2022 | Cambi ASA

Revenue mainly affected by the war in Ukraine
- ‣ Low revenue recognition, with the project in Lviv on hold due to force majeure
- ‣ Supply chain disruptions affecting execution of backlog projects
EBITDA
- ‣ Lower revenue and different revenue mix
- ‣ Increased raw materials and energy costs

Q1 2022 | Cambi Group

Revenue down 43%
- ‣ Services up 11%
- ‣ Equipment down 53%
- ‣ Lower recognition and fewer project milestones reached at end of the quarter
Negative EBITDA
- ‣ Lower revenue
- ‣ Increased COGS
- ‣ SG&A at the same level as in Q1 2021

in million NOK. EBITDA before non-recurring items

Q1 2022 | Cambi Invest

Grønn Vekst revenue slightly below expectations
- ‣ 4% down, an effect of an extraordinarily large order in Q1 2021
Slightly lower EBITDA
- ‣ Cost at 2021 levels except for rising fuel/ transportation prices
DBO projects progress as expected
- ‣ Submitted several formal proposals and increasing sales pipeline