Arverne Group (ARVEN) investor relations material

Strategic roadmap and ambitions for 2031-2033

• Targets 4 TWh/year of deep geothermal energy in France by 2031-2033, exceeding 50% of national production goals and avoiding 1 million tonnes of CO₂ emissions annually.

• Plans annual production of 27,000 tonnes of lithium carbonate, enough for 800,000 electric vehicles, with peak output expected in 2031-2033.

• Dual Flow plan launches in 2026, with first heating & cooling sales in 2027 and geothermal lithium sales in 2028.

• Aims to secure €400 million in long-term contracts in 2026, supported by a €33 million bond issue and potential further capital increases.

• Business models focus on EBITDA margins above 50% and multi-decade contracts for recurring cash flows.

Business development and project execution

• Nearly 100 geothermal projects in France, with 30 heating & cooling projects targeted by 2031-2033, each generating €140 million over 30 years.

• Lithium de France project in Alsace expects 2.2 TWh geothermal heat and 27,000 tonnes lithium carbonate annually at peak, with €450 million average annual revenue and 75% EBITDA margin.

• First geothermal well exceeded expectations: 275 m³/h flow, 145°C temperature, and 180 ppm lithium grade, confirming site potential.

• Drilling & Construction activity expanded, with plans to acquire two more rigs by 2031 for €50 million investment.

• Strategic partnerships, such as with Primeo Energie France, support long-term heat distribution contracts.

Market context and policy support

• French government and EU policies aim to increase geothermal production fivefold by 2035 and reduce fossil fuel share to 40% by 2030.

• EU Geothermal Action Plan targets 250 GW installed capacity by 2040, responding to the end of Russian gas imports in 2027.

• Critical Raw Materials Act and France Batterie initiative drive local lithium production and battery gigafactories.

• Global lithium demand expected to quadruple by 2040, making local supply strategic for mobility and energy storage.

• Project in Alsace will create over 200 direct and 700 indirect jobs, with 70% lower CO₂ emissions than market lithium and 91% water recycling.