Slide 1: Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions
For personal use only Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions Corporate Overview May 2018
Slide 2: Executive Summary
Executive Summary For personal use only • Clear signs of growing global water scarcity & contamination • Decentralized solutions deploy faster, cheaper – US$22B market by 20211 • Fluence is focused on decentralized market, with a full suite of solutions • Guidance of US$105-115M in 2018 revenues, up
Slide 3: Market Opportunity
For personal use only Market Opportunity
Slide 4: Growing Global Water Crisis Now
Growing Global Water Crisis Now For personal use only Water shortages affect 2.7B now 2.4B lack proper wastewater treatment now An additional population of 2.1B need upgraded treatment Urgent Need For Population growth from 7.4B in 2016 to 9.1B in 2050 Affordable, Fast‐to‐Deploy 60% increase in glob
Slide 5: Today's Large Centralized Solutions Do Not Address the Growing Demand
Today’s Large Centralized Solutions Do Not Address the Growing Demand For personal use only • Large centralized plants: CapEx and OpEx are inefficient and demand massive in‐ ground infrastructure, which takes too long to deploy • Developed world: Rusting pipes and growing communities drive pipe repl
Slide 6: Decentralized Packaged Treatment Plants: The Solution For Global Water Needs
Decentralized Packaged Treatment Plants: The Solution For Global Water Needs For personal use only • Smart Packaged Plants provide a fast, cost effective ‘plug and play’ solution • Smart Packaged Plants enable remote monitoring and operation, substantially reducing OpEx • Point of Use Decentralized
Slide 7: Target Markets Growing Rapidly
Target Markets Growing Rapidly For personal use only Smart Packaged Plants: $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 8: Market Positioning
For personal use only Market Positioning
Slide 9: An Established Global Player with Differentiated Products Serving Growing Markets
An Established Global Player with Differentiated Products Serving Growing Markets For personal use only 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
Slide 10: Large Diversified Client Base
Large Diversified Client Base For personal use only 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 10
Slide 11: Strategy
Strategy For personal use only • Focus on decentralized solutions to water & wastewater problems • Migrate from legacy EPC projects to Smart Packaged Plants – this enables more repeat orders, faster delivery, higher margin • Secure growing BOT pipeline funded via debt partner, which increases recurr
Slide 12: Why Smart Packaged Plants Win: Case Study
Why Smart Packaged Plants Win: Case Study For personal use only Deploy in 1/3 of the time, at 37% lower cost and capture more value Typical Custom Desalination Plant Long time to complete (18+ mos) High capex Fixed site, hard to upgrade Fluence Desalination Plant One‐third of construction ti
Slide 13: Smart Packaged NIROBOX Plants Deliver Water Fast
Smart Packaged NIROBOX™ Plants Deliver Water Fast For personal use only 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
Slide 14: Smart Packaged Plants Drive Rapid Sales Growth
Smart Packaged Plants Drive Rapid Sales Growth For personal use only Nirobox Smart Packaged Plant Nirobox™ Sales Ramp • Containerized mobile desalination plant for easy 40 * deployment globally • Wins contracts by saving energy, cost, time to deployment Projected 2x year‐on‐year • Higher gross margi
Slide 15: Aspiral Smart Packaged Plants Enable Fastest Path to Revenue
Aspiral™ Smart Packaged Plants Enable Fastest Path to Revenue For personal use only 50 m3/day plant serves 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
Slide 16: SUBRE (Submerged MABR) Opens Large New Market
SUBRE (Submerged MABR) Opens Large New Market For personal use only SUBRE modules simply drop into existing plant basin SUBRE • Submerged MABR upgrades centralized plant capacity up to 100K m3/day, improves efficiency and compliance without chemicals • Fast upgrade – fully operational within a month
Slide 17: Proven Industrial Waste-to-Energy Solutions
Proven Industrial Waste‐to‐Energy Solutions For personal use only 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
Slide 18: Critical Success Factor: Target Growing Gross Margin
Critical Success Factor: Target Growing Gross Margin For personal use only Increasing Gross Margin Large Smart Proprietary Proprietary Project Packaged Smart Packaged Product Plant Plant Example: $100M NIROBOX™ Smart Packaged SUBRE Africa Project MABR (MoU signed) 18
Slide 19: Well Positioned for Huge China Opportunity
Well Positioned for Huge China Opportunity For personal use only China’s 13th 5 year plan provides US$15 Billion funding for rural wastewater treatment Fluence MABR uniquely qualified for this market Fluence has established multiple channel partnerships in China Shipment of Commercial Packaged Plant
Slide 20: Anticipated China Revenue Ramp
Anticipated China Revenue Ramp For personal use only • 2016 – Secured 4 initial partnerships • 2017 – Deployed and proved 6 demo plants, closed contracts for initial 2 commercial plants – 36 MABR units, total of 9 partners • 2018 – Expected to book and ship increasing commercial contracts via 15 par
Slide 21: Compelling Global Position Diversifies Revenue
Compelling Global Position Diversifies Revenue For personal use only 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
Slide 22: Company Products Satisfy Global Geographies
Company Products Satisfy Global Geographies For personal use only Geography Fluence Track Record Next Steps New entrant: 10 rural wastewater treatment Ramp Aspiral wins partners Sell SUBRE for easy plant upgrade China 5 working plants (Wuxi completed) Secure national‐level partnerships & First comme
Slide 23: Guidance: Metrics to Track Success
Guidance: Metrics to Track Success For personal use only Backlog Mar 31, 2018 • $96M of which $68M in 2018 revenue + $10M in Q1 Revenue for 2018 • $105 ‐ 115M (up 80‐100% on 2017) Gross margin for 2018 • $22 ‐ 25M Recurring revenue • Increasing BOT projects via off‐balance sheet finance New products
Slide 24: Key Contacts
KEY CONTACTS Key Contacts For personal use only Richard Irving Henry Charrabé Executive Chairman Managing Director & CEO +1 408 382 9790 +1 212 572 3766 rirving@fluencecorp.com hcharrabe@fluencecorp.com Gary Dvorchak Ronn Bechler The Blueshirt Group Market Eye +1 323 240 5796 +86 138 1079 1480 +61 4
Slide 25: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). All currencies quoted as “$” are US$ unless otherwise specified. This presentation may contain forward‐looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’,
Slide 26: Appendix
For personal use only Appendix
Slide 27: Corporate Overview
Corporate Overview For personal use only Capital Structure as at 30 April 2018 ASX: FLC Top Holders ASX: FLC Shares (M) % of FLC Ordinary Shares on Issue 415M RSL Investments 110.9 26.7 Options on issue 54M Pond Ventures 36.3 8.7 Share Price A$0.43 Plan B Ventures 20.0 4.8 Undiluted Market Capitaliz
Slide 28: World-Class Board and Leadership
World‐Class Board and Leadership For personal use only Management Team Board of Directors Henry J. Charrabé Philippe Laval Richard Irving Henry J. Charrabé Managing Director & COO Executive Chairman Managing Director & CEO • Former COO of RWL • 35 years’ tech and CEO • Former CEO of RWL Venture Capi
Slide 29: How MABR Works
How MABR Works For personal use only 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.
Slide 30: Positioning for Growing Opportunities in USA
Positioning for Growing Opportunities in USA For personal use only 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 testin