Slides
Page 1
Footnote Cambi ASA Q2 2025 Per Lillebø, CEO Mats Tristan Tjemsland, CFO August 2025
Page 2
Footnote This presentation is for information purposes only. Cambi ASA (Cambi) 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. The presentation may contain information obtained from third parties. Such information has been accurately reproduced. As far as Cambi can ascertain and is aware of, 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 does not accept any responsibility for any errors or resulting loss or damage whatsoever. Readers have the responsibility to thoroughly check all aspects for themselves. Enquiries about the reproduction of content from this publication should be directed to Cambi. The presentation contains forward-looking statements related to Cambi’s current plans, objectives, forecasts and estimates. These statements only consider available information up to the date that this presentation was prepared. Cambi makes no guarantee that these forward-looking statements will prove right. The future development of Cambi 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 and its subsidiaries and, therefore, cannot be precisely predicted. 2 Disclaimer
Page 3
Footnote Financial highlights Q2 2025 NOK million 3 Revenue EBITDA Order intake Order backlog Q2 2025 342 75 102 938 Q2 2024 306 82 63 1,484
Page 4
Footnote High activity across the global project portfolio • Deliveries have progressed in more than a dozen projects after a couple of quarters marked by delays pending client site readiness • No new project awards announced in the second quarter Two projects completed commissioning during the second quarter • Sasol (Secunda, South Africa) – marking Cambi’s first full-scale industrial project in operation and the world’s first where biosludge is rerouted to a gasification process • Krogstad (Lillestrøm, Norway) – first THP system model E in operation, making it the most energy efficient site in Cambi’s global references portfolio • Commissioning also started at Shek Wu Hui in Hong Kong (China), Schijnpoort in Antwerp (Belgium) and Blue River in Kansas City, MO (USA) • Project in Safi (Morocco) is still waiting for site readiness before commissioning can start; Cambi dispatched digester mixing equipment Several projects made progress through the installation phase • Frevar (Fredrikstad, Norway) – mechanical and electrical installation progressed well • Tuas (Singapore) – THP systems installation completed 4 Technology Q2 2025 – Operational review THP model E in operation at the Krogstad sludge treatment centre in Lillestrøm, Norway THP systems installed at PUBʼs Tuas water reclamation plant in Singapore
Page 5
Footnote THP vessel in Congleton, UK, to be delivered for Louisville, KY USA Installation - continued • Lviv (Ukraine) – commenced digester installation, but security focus and personnel scarcity makes progress slower than anticipated Manufacturing continues at maximum capacity • Cambi’s THP workshop in Congleton, UK, continued manufacturing at maximum capacity throughout the second quarter • Eight THP systems for the four ongoing projects in San Francisco, CA and Louisville, KY (USA), Perth (Australia), and Wellington (New Zealand) made progress • Cambi works closely with clients to avoid delays, coordinating and adjusting delivery schedules in line with site readiness • Trade agreement between USA and UK has improved our visibility with regard to tariffs, and having manufacturing in UK does not seem unfavorable • The Be’er Sheva project (Israel) remains on hold Engineering progressed well for five projects • Detail design made progress for five projects in Honolulu, HI (USA), Oslo/VEAS (Norway), Palma de Mallorca and Santiago de Compostela (Spain), and Mumbai (India) 5 Technology Q2 2025 – Operational review (continued) Digester under installation in Lviv, Ukraine
Page 6
Footnote High season for THP site activities • Scheduled site maintenance in UK and Europe • Reliability and process performance improvements in collaboration with plant managers and operators at several sites • High demand for solutions that improve THP performance, e.g. pumps and proprietary solutions developed for demanding sludge applications • Strong demand for spare parts Upgrades team continues to deliver upgrades and build the project pipeline • Hengelo (Netherlands) – complete delivery of a small upgrade in June • Aberdeen (UK) – engineering progress, laying groundwork for future upgrades to support long-term plant optimisation Actively developing upgrade projects • Focus on efficiency improvements and cost savings 6 Solutions – Services Q2 2025 – Operational review THP system in operation in Aberdeen, Scotland, UK THP system in operation in Hengelo, Netherlands
Page 7
Footnote Bulk soil sales of 106,000 tonnes • 12% lower compared to a very strong Q2 2024 (120,000 tonnes) Status on exiting the retail soil business • Soil bag deliveries were carried out in line with contractual commitments • Ceased operations at the soil bagging facility at the end of the quarter • Sale of soil bagging facility not yet concluded Grønn Vekst continued its reorganisation • Focus on profitability in core business areas – bulk soil and organic resourcing • Personnel adjustments, including some downsizing Biosolids and garden waste handling contracts fulfilled as per commitments • No contract awards above Cambi’s threshold for stock exchange announcements • Smaller sludge management contract in Larvik in June, with a firm duration of four years and two one-year extensions, continuing a long-standing agreement 7 Solutions – Recycling Q2 2025 – Operational review Grønn Vekst spring campaign Soil production in Kristiansand, Norway
Page 8
Footnote Temporary relief in an unpredictable tariff landscape • The US-UK Economic Prosperity Deal (EPD) introduces a unilateral 10% base tariff on imports of UK-origin goods and opens the door for tariff exemptions for steel and aluminium o Advantageous for Cambi, with UK-based production, against competitors producing in other countries and exposed to higher US import tariffs Contractual tariff protection for ongoing US projects • Cambi’s three ongoing US projects are contractually protected, with tariffs excluded from the base price o Right to recover import duties through built-in contractual mechanisms o Indirect risks related to timing delay of cost approvals and payment milestones tied to delivery Exploring options for domestic US manufacturing • Federally-funded projects require local origin content under the “Buy America” Act • Cambi continues to explore options for US-based manufacturing to remove tariff exposure for future US projects 8 Trade deal between US and UK reduces uncertainty The USUK Economic Prosperity Deal announced in May started implementation in June. The agreement signals stronger political and economic alignment between the UK and the US and provides greater predictability for cross-border trade in a more protectionist global environment. The situation could, however, change at any time. The lower UK base tariff compared to all non-US locations may provide a temporary relative advantage to Cambi
Page 9
Footnote PFAS contamination creates regulatory uncertainty in the water sector Rising global health and environmental concern, independent of water and biosolids management Food containers Paper products PFAS concentrations in selected daily products relative to typical biosolids • PFAS are found in thousands of daily products o More than 10,000 different long-chain chemicals o Coffee cups (even the compostable, “eco-friendly” ones), packaging, cosmetics, cookware, textiles, carpets, electronics often have high concentrations of PFAS • Extremely persistent in the environment o Damaging to health, although bioaccumulation effects in organisms are only starting to be understood • Concentrations in most municipal biosolids are low o Generally, well below levels considered “of concern” o Only certain industrial sludge streams exceed thresholds • Increased media and regulatory scrutiny o US: Different state-level approaches; EPA is in a process of defining nationwide safe-use limits o EU: New Urban Wastewater Directive requires quaternary treatment to remove micropollutants at source • Water utilities and farmers in certain jurisdictions fear land application limitations
Page 10
Footnote Cambi’s THP provides no-regret long-term biosolids treatment advantages • Maximising energy recovery and reducing biosolids volume by enhancing water removal brings significant economic advantages o Lower operational costs, regardless of whether the biosolids are reused on land, landfilled, incinerated, or processed with emerging PFAS-destroying technologies Water utilities need to remain flexible to adapt to changing regulations • Nitrogen and phosphorous recovery are increasing treatment costs • Destroying PFAS in biosolids requires very high temperatures or new technologies o Increasing the cost and complexity of biosolids management • Moving from land application to thermal processes in response to PFAS regulation is more affordable at sites using thermal hydrolysis o Regulatory uncertainty may however cause some project delays Eliminating PFAS at the source is the only viable long-term solution • Regulations are expected to tighten and maybe even ban PFAS in new products outright • Some regions may eventually also restrict biosolids land application for the more highly contaminated industrial sludges or on certain land banks 10 Cambi’s THP is suitable for all biosolids routes, minimising risk Considerable experience from projects where biosolids undergo thermal processes such as drying or incineration 20 of Cambi’s 92 THP reference plants are delivered to improve biosolids treatment ahead of thermal processes THP systems operating before dryers at the Psyttalia wastewater treatment plant in Athens, Greece
Page 11
Footnote German-based company with solid track record • CNP CYCLES GmbH was founded in 2011 and specialises in technologies and solutions that optimise sewage sludge treatment for wastewater treatment plants • Successful project deliveries for water utility companies and industrial clients in Germany and internationally Expansion of technology offerings within sludge treatment and nutrient recovery • Projects tailored to client needs, based on either licensed or patented technologies • Technologies and expertise are complementary to Cambi’s o Positioning both companies to unlock growth Expanding Cambi’s market presence in the German sludge management market • CNP CYCLES has a local team with a strong reputation and deep market knowledge 11 Cambi acquires a majority stake in CNP CYCLES The transaction will expand Cambi’s technology offerings and market presence in Germany
Page 12
Footnote Cambi has so far not been successful in Germany • Promoting THP has so far met with limited commercial traction o Only one reference, near Munich o Reflecting a cautious, conservative water utility companies and complex regulatory landscape 12 Germany may become an important market for Cambi Mature with strict biosolids disposal regulations centred on mono-incineration with phosphorous recovery Strong drivers but also intense technology competition • Largest Western European market, with strict, mature regulation and wide-scale use of anaerobic digestion • Land application not allowed o Move from co-incineration to mono- incineration followed by phosphorus recovery for all sites large enough for thermal hydrolysis • Drying is needed before incineration o Competitive domestic market for drying and dewatering technologies o THP can be operated to maximise dewatering Coming wave of investments • Meeting regulatory requirements for resource recovery without land application is very costly • €500 billion infrastructure fund launched in March o 20% earmarked for climate and energy transition projects Expected sludge management investments in Germany Data: GWI Water Data Amperverband WWTP
Page 13
Footnote Strategic investment in organisation capabilities is mostly completed • Strengthened sales, marketing, innovation, and project execution capabilities • Cambi is well-positioned for new contract awards Sustained global demand for sustainable sludge treatment solutions • High energy costs and resource recovery regulations remain key drivers in many markets • Scrutiny on PFAS and microplastics in biosolids is increasing, with some jurisdictions considering land-application restrictions; Cambi’s solutions are agnostic to biosolids outlets, providing customers long-term flexibility • New investment cycle in UK water sector is now underway; Cambi is making measurable progress in developing several concrete projects Focus on project execution and signing new contracts • Order backlog secures project execution activity through 2025 and well into 2026 • Current project schedules, combined with limited order intake of new contracts in the next quarters, may lead to a revenue dip in 2026 Annual General Meeting in May approved dividends of NOK 0.30 per share and authorised the Board to approve additional dividends of up to NOK 0.70 per share 13 Outlook Continued strategic focus on operational resilience and future growth THP system under commissioning at the Blue River Biosolids Facility in Kansas City, MO USA
Page 14
Footnote Financial performance Mats Tristan Tjemsland, CFO
Page 15
Footnote Highlights for the second quarter • Strong financial performance in the second quarter, driven by good progress across portfolio of ongoing construction projects • Solid operating cash flow generation in the quarter, driven by milestone payments from clients • The order backlog remains solid, providing coverage for activity levels in the near term • Dividend of 0.30 NOK per share was approved and distributed • The Board was authorised to approve additional dividends of up to 0.70 NOK per share • Unrealised foreign exchange gains in Q2, driven by hedging expected USD net cash flows 15
Page 16
Footnote Income statement • Revenue reached a new all-time high, supported by solid progress across the portfolio of ongoing construction projects • Gross margins below levels last year, due to revenue mix and foreign exchange rate developments • Operating expenses are stabilising after a period of targeted organisational investments • Solid EBITDA generation compared to previous quarters, but below last year’s Q2 • Depreciation and amortisation declined as technology portfolio acquisition is now fully amortised • Net financial items were strongly positive, mainly from unrealised currency hedging gains of NOK 24 million in addition to agio effects NOK million Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Revenue 306 277 234 225 342 Materials, goods, and services 143 119 98 120 173 Gross margin 163 158 136 105 169 Gross margin % 53 % 57 % 58 % 47 % 49 % Payroll expenses 50 59 62 57 56 Other operating expenses 31 31 35 35 38 Operating expenses 81 90 97 92 94 EBITDA 82 68 39 14 75 EBITDA % 27 % 25 % 17 % 6 % 22 % Depreciation and amortisation 6 7 7 7 5 Operating profit 76 62 32 7 71 Net financial items 2 -5 3 -2 35 Profit (loss) before tax 78 57 34 5 105 Income tax expense 20 14 8 1 16 Net profit (loss) 58 43 26 4 90 Consolidated income statement 16
Page 17
Footnote Technology segment 17 Key financials NOK million • Strong progress on construction projects following earlier client site delays, but some projects are still awaiting client site readiness • Activity levels remained very high, with full engagement across manufacturing and delivery teams Business segments Income statement • Gross margin declined year-on-year, impacted by project mix and currency effects • Operating expenses reflect earlier investments to strengthen organisational capabilities, now stabilising 211 196 172 176 243 59 55 53 19 50 58% Q2-24 62% Q3-24 71% Q4-24 50% Q1-25 Q2-25 52% Revenue EBITDA Gross margin NOK million Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Revenue 211 196 172 176 243 Materials, goods, and services 88 74 51 88 118 Gross margin 123 123 121 88 126 Gross margin % 58 % 62 % 71 % 50 % 52 % Payroll expenses 40 47 44 44 46 Other operating expenses 24 21 24 25 29 Operating expenses 64 68 68 69 75 EBITDA 59 55 53 19 50 EBITDA % 28 % 28 % 31 % 11 % 21 % Depreciation and amortisation 5 5 5 5 2 Operating profit 55 50 48 14 48
Page 18
Footnote Solutions segment 18 Key financials NOK million • Revenue reached a new all-time high, with growth across both subsegments • Services subsegment saw strong spare parts sales and high activity levels at many THP sites Business segments • Soil retail operations were discontinued • Divestment process is ongoing • Operating expenses remain stable, with reductions expected after the exit from soil retail 95 81 62 49 98 23 13 -15 -5 25 42% Q2-24 44% Q3-24 23% Q4-24 35% Q1-25 Q2-25 44% Revenue EBITDA Gross margin Income statement NOK million Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Revenue 95 81 62 49 98 Materials, goods, and services 55 45 47 32 55 Gross margin 40 36 15 17 43 Gross margin % 42 % 44 % 23 % 35 % 44 % Payroll expenses 10 13 18 13 10 Other operating expenses 8 10 11 10 9 Operating expenses 18 22 29 22 18 EBITDA 23 13 -15 -5 25 EBITDA margin % 24 % 17 % 24 % 10 % 25 % Depreciation and amortisation 2 2 2 2 2 Operating profit 21 11 -17 -7 23
Page 19
Footnote Order intake Quarterly development NOK million 75 61 62 45 118 -12 56 81 124 -15 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 63 117 143 170 102 19 • Order intake increased year-on-year, supported by several smaller contract wins • No contract award above the market announcement threshold • Solutions segment order intake included a NOK 24 million reallocation from the Technology segment, as of the contract scope contains services delivered after project delivery is completed • Closing exchange rate at quarter-end provided a small positive currency effect on the backlog of NOK 6 million Technology Solutions
Page 20
Footnote Order backlog • Order backlog at the end of Q2 2025 is reported at NOK 938 million • Backlog remains a key indicator of future activity levels • At quarter-end, Cambi had 16 ongoing construction projects, all in the Technology segment • Technology backlog provides visibility on near-term activity, but highlights the need for new awards to sustain profitability • Solutions backlog consists mainly of Grønn Vekst contracts and services, with no upgrade projects included Quarterly development NOK million 247 227 227 223 242 1,237 1,097 1,006 954 695 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 1,484 1,324 1,232 1,177 938 Technology Solutions 20
Page 21
Footnote Order backlog breakdown Order backlog by execution year NOK million 938 Q2 2025 2025 2026 2027 onwards 31% 41% 28% EUR NOK USD 938 Order backlog by currency NOK million 39% 41% 20% 21 • Most of the backlog in the Technology segment is expected to be converted into revenue by the end of 2026 • Around 60% of the backlog is in foreign currency, which poses a risk to financial reporting in NOK due to potential exchange rate fluctuations
Page 22
Footnote Balance sheet • Accounts receivables increased to NOK 287 million, reflecting strong project progress and invoicing triggers • Earned but not invoiced revenue reduced to NOK 142 million, down from high levels in the previous quarters • Cash and cash equivalents at NOK 156 million, up from last quarter, driven by received milestone payments • Accrued project costs at NOK 152 million, broadly in line with last year, but up from earlier quarters • Balance sheet remains robust, with no long- term debt NOK million Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Intangible assets 21 16 11 6 5 Tangible assets 43 48 49 49 49 Employee loans 5 4 4 4 4 Investments in shares 1 1 1 1 1 Total non-current assets 69 69 64 60 59 Inventories 68 109 158 154 186 Accounts receivables 103 121 171 189 287 Earned but not invoiced project revenue 201 254 218 246 142 Other receivables 31 39 42 25 29 Cash and cash equivalents 259 174 155 100 156 Total current assets 662 697 744 714 799 Total assets 732 765 809 774 858 Equity and liabilities Equity 428 472 476 462 550 Deferred tax 13 13 45 45 45 Accounts payable 74 71 77 74 74 Accrued project cost, provisions, and guarantees 153 124 94 92 152 Other current liabilities 65 86 193 174 37 Total liabilities 304 293 332 312 308 Total equity and liabilities 732 765 809 774 858 Consolidated balance sheet 22
Page 23
Footnote Cash flow statement • Solid operating cash flow, supported by milestone payments from customers • Dividend of NOK 0.30 per share paid, corresponding to NOK 48 million in total • Board was authorised to approve an additional dividend of up to NOK 0.70 per share (NOK 112 million) • Additional dividends remain contingent on key project milestones, ensuring a balance between shareholder returns and prudent cash management NOK million Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Cash flow from operating activities Profit before tax 78 57 34 5 105 Tax paid for the period -0 -2 -4 -0 - Depreciation and amortisation 6 7 7 7 5 Change in inventory 22 -41 -49 4 -32 Change in accounts receivable -6 -18 -50 -18 -98 Change in accounts payable 24 -3 7 -3 1 Change in project accruals -29 -82 -6 -30 164 Effect of exchange rate fluctuations -4 2 25 -19 -1 Change in other accruals -1 2 7 2 -36 Net cash flow from operating activities 91 -79 -16 -53 108 Cash flow from investment activities Payments for the purchase of fixed assets -9 -7 -3 -2 -4 Proceeds from employee loan repayment 1 1 - - 0 Payments for the purchase of intangible assets - - - - -0 Proceeds from the sale of current financial investments 110 - - - - Net cash flow from investment activities 102 -6 -3 -2 -4 Cash flows from financing activities Payment of dividends -160 - - - -48 Net cash flows from financing activities -160 - - - -48 Net change in cash and cash equivalents 33 -85 -19 -55 56 Cash and cash equivalents at the start of the period 226 259 174 155 100 Cash and cash equivalents at the end of the period 259 174 155 100 156 Consolidated cash flow statement 23
Page 24
Footnote Transaction details • Cambi acquires 51% equity interest, settled in cash with immediate effect • Enterprise value not disclosed, but on 100% basis it is within the “Small” contract award range (NOK 15–50 million) • The company has 10 employees, with EUR 3.0 million in revenues and just above break-even EBITDA in 2024 • The agreement establishes a structured pathway for Cambi to acquire full ownership after five years, contingent upon certain conditions • Locked-box mechanism from 31 December 2024, with Cambi sharing economic results from 1 January 2025 Accounting treatment • Full consolidation into accounts due to controlling ownership stake • Financials to be reported as part of the Technology segment • The year-to-date financial performance of the company will be included in Cambi’s third-quarter 2025 report 24 Cambi acquires 51% of CNP CYCLES GmbH The transaction will expand Cambi’s technology offerings and market presence in Germany CNP CYCLES and Cambi teams at transaction close
Page 25
Footnote Q&A