Slide 1: Placement to institutional investors and share purchase plan
Placement to institutional investors and share purchase plan Melbourne, 26 October 2018 Fluence Corporation Limited (Fluence) has launched an equity placement of ordinary shares to institutional investors (Placement) to be followed by a share purchase plan (SPP) for eligible shareholders. We attach
Slide 2: Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions
Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions Corporate Overview October 2018
Slide 3: Important Notice
Important Notice • Important notice and disclaimer : This presentation has been prepared by Fluence Corporation Limited (ASX: FLC) (Company or FLC) in relation to an offer of new fully paid ordinary shares in the Company (New Shares) pursuant to an institutional placement (Placement) to be made to e
Slide 4: Important Notice
Important Notice • Investment Risk: An investment in FLC shares is subject to known and unknown risks, some of which are beyond the control of FLC, including possible loss of income and principal invested. FLC does not guarantee any particular rate of return or the performance of FLC, nor does it gu
Slide 5: Important Notice
Important Notice • Effect of Rounding: A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation.
Slide 6: Executive Summary
Executive Summary • Global water scarcity and contamination is real and growing • Often, demand exists where large centralized solutions are not viable • Decentralized solutions are CapEx efficient and deploy rapidly – US$22B market by 20211 (one of the fastest growing segments) • Fluence is focused
Slide 7: Market Opportunity
Market Opportunity des g. Lhd ! a tas, te socee TFs
Slide 8: Growing Global Water Crisis Now
Growing Global Water Crisis Now Water shortages affect 2.7B people now 2.4B people lack proper wastewater treatment now An additional 2.1B people need upgraded treatment Urgent Need For Population growth from 7.4B in 2016 to 9.1B by 2050 Affordable, Fast-to-Deploy 60% increase in global food product
Slide 9: Today's Large Centralized Solutions Do Not Address the Growing Demand
Today’s Large Centralized Solutions Do Not Address the Growing Demand • Large centralized plants: CapEx and OpEx inefficient and demand massive in-ground infrastructure. Require oversized capacity today to meet long-term demand • Developed world: Rusting pipes and growing communities drive pipe repl
Slide 10: Decentralized, Packaged Treatment Plants: The Solution For Global Water Needs
Decentralized, Packaged Treatment Plants: The Solution For Global Water Needs • Packaged Plants provide a fast, cost-effective ‘plug and play’ solution • Packaged Plants enable remote monitoring and operation, substantially reducing OpEx • Point of Use Decentralized Plants require short and limited
Slide 11: Target Markets Growing Rapidly
Target Markets Growing Rapidly Smart Packaged Plants/Decentralized Market: $83B in Planned CapEx Global market growing from Desalination and Reuse plants $13.3B to $21.8B (2016 to 2021) (Cumulative 2017 to 2022) 9.1 EU/ C Asia 8.4 $9.1B (11%) China & Taiwan 5.5 $29.9B 5.1 (36%) 4.4 USA $15.6B (19%)
Slide 12: Fluence Positioning
Fluence Positioning des g. Lhd ! a tas, te socee TFs
Slide 13: An Established Global Player with Differentiated Products Serving Growing Markets
An Established Global Player with Differentiated Products Serving Growing Markets US$700B global water Only global, pure play Smart packaged plants Targeting fastest growing market – tighter rules, water & wastewater deliver best-in-class segments urgent needs treatment company performance Aspiral™
Slide 14: Growth Strategy
Growth Strategy • Leading suite of Smart Packaged plant products serve decentralized water and wastewater markets worldwide • Focus global EPC reputation on Smart Packaged plant sales enabling more repeat orders, faster delivery, higher margin • Growing BOT pipeline funded by nondilutive finance inc
Slide 15: Target Revenue Growth from Product Segments
Target Revenue Growth from Product Segments MABR business Aspiral™, SUBRE High growth driven by Smart Packaged plant sales in China and international NIROBOX™ business High growth through Smart Packaged plants, EPC, recurring revenue Baseline business Waste-to-energy, water purification, legacy wast
Slide 16: Target Revenue Growth from Business Segments
Target Revenue Growth from Business Segments Recurring revenue BOT projects Services and spare parts Smart Packaged plants revenue Aspiral, NIROBOX, SUBRE EPC and custom project revenue Large projects Wastewater-to-energy Water purification 2018 Target Forecast Revenue Mix *Relative size of columns
Slide 17: Critical Success Factor: Target Growing Gross Margin
Critical Success Factor: Target Growing Gross Margin Increasing Gross Margin Large Smart Proprietary Proprietary Project Packaged Smart Packaged Product Plant Plant Example: $100M+1 NIROBOX™ Aspiral™ SUBRE Africa Project (MoU signed) *The graph in this slide is illustrative of the Company’s plans. 1
Slide 18: Why Smart Packaged Plants Win: Case Study
Why Smart Packaged Plants Win: Case Study Deploy in approx. 1/3 of the time, at est. 37% lower cost, capturing more value Typical Custom Desalination Plant Long time to complete (18+ mos) High CapEx Fixed site, hard to upgrade Fluence Packaged Desalination Plant One-third of construction tim
Slide 19: Smart Packaged Plants Drive Rapid Sales Growth
Smart Packaged Plants Drive Rapid Sales Growth NIROBOX Smart Packaged Plant NIROBOX™ Sales Ramp • Containerized mobile desalination plant for easy 40 * 1 deployment globally • Wins contracts by saving energy, cost, time to deployment Projected 2x year-on-year • Higher gross margins growth 25 • Intro
Slide 20: Aspiral Smart Packaged Plants Enable Fastest Path to Revenue
Aspiral™ Smart Packaged Plants Enable Fastest Path to Revenue 50 m3/day plant serves a village 1,000 m3/day plant serves 5-10K people Aspiral™ Smart Packaged Plants using MABR Technology • Containerized, mobile and low energy distributed wastewater plant treats from 20 m3/day – 5,000 m3/day of raw m
Slide 21: Well Positioned for Huge China Opportunity
Well Positioned for Huge China Opportunity China’s 13th 5-year plan provides US$15B funding for rural wastewater treatment Fluence’s MABR technology is uniquely qualified for this market Fluence has established multiple channel partnerships in China Shipment of commercial packaged plants has Strong
Slide 22: Exclusive Partnership Agreement with ITEST in Central China
Exclusive Partnership Agreement with ITEST in Central China (announced Oct 12) • Exclusive partnership agreement with ITEST in central China for a total volume 66,000 m3 per day; estimated value of $45 million • Supply of Aspiral™ Smart Packaged wastewater treatment plants along the highway system u
Slide 23: SUBRE (Submerged MABR) Opens Large New Market
SUBRE (Submerged MABR) Opens Large New Market SUBRE modules simply drop into existing plant basin SUBRE • Submerged MABR modules upgrade centralized plant capacity up to 100K m3/day, improve efficiency and compliance without chemicals • Fast upgrade – fully operational within a month • Average Fluen
Slide 24: Compelling Global Position Diversifies Revenue
Compelling Global Position Diversifies Revenue Product Market Competitive Advantage Proof Points Decentralized Plants in USVI (US EPA certified), Aspiral™ - Smart wastewater: Up to 90% less energy, halves California (approaching Title 22 Packaged MABR $9.1B in 2021 + OpEx, fast time to market certif
Slide 25: Key Contacts
KEY CONTACTS Key Contacts Richard Irving Henry Charrabé Executive Chairman Managing Director & CEO +1 408 382 9790 +1 212 572 3766 rirving@fluencecorp.com hcharrabe@fluencecorp.com Gary Dvorchak Ronn Bechler The Blueshirt Group Market Eye +1 323 240 5796 +86 138 1079 1480 +61 400 009 774 gary@bluesh
Slide 26: Appendix
Appendix
Slide 27: Guidance: Metrics to Track Success
Guidance: Metrics to Track Success Backlog June 30, 2018 • $84M and $33M of revenue in first half of 2018 • Based on current backlog & recent contract wins, high confidence to achieve US$95M. Additional revenues Revenue for 2018 expected from current sales pipeline and activities towards achieving U
Slide 28: World-Class Board and Leadership
World-Class Board and Leadership Management Team Board of Directors Henry J. Charrabé Tony Hargrave Richard Irving Henry J. Charrabé Managing Director & COO Executive Chairman Managing Director & CEO • Over 30 years’ water • 35 years’ tech and CEO • Former CEO of RWL Venture Capital • Former CEO of
Slide 29: Large Diversified Client Base
Large Diversified Client Base Fluence focuses on decentralized, packaged water and wastewater treatment solutions for customers across the industrial, commercial and municipal sectors Historical and Existing Customers and Partners 28
Slide 30: How MABR Works
How MABR Works MABR - Inspired by Nature 1. Air breathed in 1. Air passes through O2 2. Oxygen Semi-permeable membrane dissolves naturally Biofilm into wastewater through membrane 2. Oxygen dissolved naturally into blood 3. Blood (with through lung material oxygen) flows out 3. Wastewater picks up o
Slide 31: Positioning for Growing Opportunities in USA
Positioning for Growing Opportunities in USA North America Decentralized Market already $2.8B in 2016, expected to reach $4.1B by 2021* Demo Plant at Codiga Resource Recovery Center (CR2C) at Stanford University • Commissioned in January 2018 to allow for observation and testing of compliance with C
Slide 32: Smart Packaged NIROBOX Plants Deliver Water Fast
Smart Packaged NIROBOX™ Plants Deliver Water Fast The growing demand for potable water due to climate change requires fast deployment of robust, reliable water desalination solutions • NIROBOX™ is a field proven solution that addresses the mid market • Shorter time-to-water the ideal solution for dr
Slide 33: Proven Industrial Waste-to-Energy Solutions
Proven Industrial Waste-to-Energy Solutions Onsite production of energy reduces electricity and gas consumption High-quality, treated effluents meet the most stringent requirements Reduction of sludge volume by up to 90%, significantly reduces landfill waste Output can be used as a fertilizer Reduce