Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Investor Presentation (June 2024)
26 slides from Cadiz's investor presentation, June 2024
Slide 1: Clean, reliable, affordable water for people.
Clean, reliable, affordable water for people. Solutions Equity Environment We take a holistic We partner with Our leading-edge approach to meet communities to secure innovation sets the society’s pressing access to safe, reliable standard for Investor Presentation needs for long-term water supplies.
Slide 2: Safe Harbor Agreement
Investor Presentation | 2024 Safe Harbor Agreement During the course of this presentation, we may make forward-looking statements. Any statement that is not a historical fact is a forward-looking statement. Forward-looking statements refer to expectations, projections or other characterizations of f
Slide 3: From one project / one customer to fully-integrated solution provider
Investor Presentation | 2024 From one project / one customer to Tomorrow Today fully-integrated solution provider. Today Fully integrated water solutions provider operating the largest Yesterday Critical water infrastructure assets located in the fastest growing regions groundwater banking project i
Slide 4: The hydrological cycle is spinning out of balance
“The hydrological cycle is spinning out of balance…” WMO State of Global Water Resources Report 2022 Droughts, extreme rainfall events, melting snow and ice… threaten long-term water security for billions of people. 4
Slide 5: Current California Water Network
Current California Water Network
Slide 6: Lake Mead compared with Cadiz Aquifer
Lake Mead Compared with Cadiz Aquifer Lake Mead 250 square miles 160,000 acres 28 million acre-feet storage capacity Cadiz 2000 square miles 1.2 million acres 30-50 million acre-feet water in storage 6
Slide 7: Cadiz – Located at the bottom of 2000 square mile closed basin
Cadiz – Located at the bottom of 2000 square mile closed basin All groundwater passes through Fenner Gap evaporates at Bristol and Cadiz Dry Lakes. Three watersheds in Eastern Mojave Desert converge through “Fenner Gap.” More than 30 million acre-feet of water in the watershed today – larger than La
Slide 8: The Water Planet
The problem is not water scarcity The Water Planet 8
Slide 9: The End of Snow Threatens to Upend 76 Million American Lives
The problem is snow The End of Snow Threatens to Upend 76 Million American Lives 9
Slide 10: Snowpacks in the west are steadily declining
Snowpacks in the west are steadily declining Source: California Dept of Water Resources May 2024 10
Slide 11: Where do we store freshwater?
Snow and snowmelt make up more than half our water supply Where do we store freshwater? 30% 60% 40% Snowpack Reservoirs Groundwater 11
Slide 12: Extreme is the new normal
Extreme is the new normal 2022 2023 Western megadrought is worst in 1,200 years, California has so much snow that flood intensified by climate change. danger will last through the year. 12
Slide 13: California's climate whiplash pattern began with the 1976-77 drought
California’s climate “whiplash” pattern began with the 1976-77 drought Statewide annual precipitation (1895–2021) Source: WRCC, 2022 https://oehha.ca.gov/media/02precip.pdf May 2024 13
Slide 14: The future is rain.
The future is rain. Southern Southern Central Central Sierra Boke Selita) Sierra Northern Northern Sierra Sierra SNOW SNOW MIX 14 th Cadiz
Slide 15: Rain and Snowmelt are moving South
Rain and Snowmelt are moving South Source: California Dept of Water Resources Source: Data from USGS CA Dept Water Resources 15
Slide 16: Most of our water storage systems are in the North
Most of our water storage systems are in the North Source: California Dept of Water Resources Our water storage and conveyance system was designed to capture predictable Sierra snowmelt, not flash floods and atmospheric rivers Source: Data from USGS CA Dept Water Resources May 2024 16
Slide 17: A fully operational groundwater bank at Cadiz would facilitate water trading & exchanges
A fully operational groundwater bank at Cadiz would facilitate water trading & exchanges across Southern California and the Southwest Supply Storage Conveyance Trading & Exchanges Water Quality 17
Slide 18: Water Supply Cash Flows: Contract Pricing & Financing
Water Supply Cash Flows: Contract Pricing & Financing Contract Price Cap = $1,650 per AF • Capital costs financed off Cadiz balance $350-$500 Capital Costs sheet via MLP structure with public agencies and Limited Partner investors • O&M borne by contracting entities, not $250-$300 Estimated O&M Cadi
Slide 19: Water Supply Price Appreciation
Wholesale water prices in the Southern California Water Supply Price Appreciation market have escalated at CAGR of approximately 5.8% for the past 45 years. The value of Cadiz water supply is comparable to Metropolitan Water District’s untreated imported water supply rate. So Cal Wholesale Water Pri
Slide 20: Innovation. Evolution. Inflection.
Investor NASDAQ: CDZI Presentation | 2024 Innovation. Evolution. Inflection. Strategically Located. Revenue generating assets: The whole is much greater than the sum of the parts. Water Supply + Water Storage + Water Transport + Water Treatment • 45,000 acres of land with water • 2,000 square mile w
Slide 21: Cash Flow Outlook
Investor Presentation | 2024 Cash Flow Outlook Water Supply 50 Year Recurring Cash Flow Stream Total Cash Flow • $50 M per year of Projected Net Annual Cash Flow from Water Supply & Delivery Infrastructure Potential from upon full implementation, with escalation of approx. 5% per year, or 2.5B cumul
Slide 22: Cap Table
Investor Presentation | 2024 CAP TABLE ($ in millions) 3/31/2024 Cash and cash equivalents $19.2 Senior secured (non-convertible) term loan(1) $21.2 Senior secured (convertible) term loan (2) $20.0 Senior unsecured convertible loan(3) $16.3 Series A perpetual preferred stock (CDZIP) $57.5 Common Sto
Slide 23: Appendix
Ix nd e p p A Z rt Cad ) &
Slide 24: Charge Led by Susan Kennedy
Investor Presentation | 2024 Charge Led by Susan Kennedy • Susan Kennedy leads Cadiz as Chairman of the Board and CEO • Joined Board in February 2021 and was elected Chairman in February 2022 • In January 2024, Ms. Kennedy was appointed CEO • Led a distinguished career as a policymaker and entrepren
Slide 25: Kennedy's Leadership Backed by New Board of Directors
Investor Presentation | 2024 Kennedy’s Leadership Backed by New Board of Directors Stephen E. Courter Maria Dreyfus Independent Director Independent Director • Over 30 years of experience in management positions in the • CEO and Founder of Ardinall Investment Management, focused on sustainable techn
Slide 26: www.cadizinc.com Contacts
NASDAQ: CDZI www.cadizinc.com Contacts: Courtney Degener SVP, Investor Relations, Cadiz cdegener@cadizinc.com 213-271-1600 Shannon Devine MZ Group CDZI@MZGROUP.COM 26