Slide 1: Investor Presentation: Sustainable Water Solutions
For personal use only I N V E S T O R P R E S E N TAT I O N Sustainable Water Solutions SEPTEMBER 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). constitute an offer or invitation to apply for any securities, including in any For personal use only All currencies quoted as “$” are US dollars unless otherwise specified. Some totals jurisdiction where, or t
Slide 3: Executive Summary
Executive Summary New and Highly • Over 100 years of experience in the water and wastewater treatment industry Experienced • Chairman, CEO, CFO, and CCO all joined within the last two years Leadership • Notable turnaround experience and a number of highly successful exits leading to material returns
Slide 4: Company Profile
Company Profile 1.00 FLC Share Price Chart 8.0 0.80 Volume Share Pricing Share Price ($) 6.0 Volume (m) 0.60 4.0 0.40 For personal use only 0.20 2.0 - - C A P I TA L S T R U C T U R E TOP SHAREHOLDERS • RSL Investments Corporation Current Share Price (18/09/23) A$0.155 (25.4%) Shares on Issue 650,55
Slide 5: Strategy & Operations
For personal use only S T R AT E G Y & O P E R AT I O N S
Slide 6: World Class Management Team
World Class Management Team Newly appointed management team with significant experience in water treatment leading to multiple successful exits For personal use only DOUG BROWN TOM POKORSKY Chairman CEO and Managing Director • Fluence BOD Advisor May 2022, BOD Chairman March 2023 • Joined in March 2
Slide 7: World Class Management Team (cont)
World Class Management Team (cont) Newly appointed management team with significant experience in water treatment leading to multiple successful exits For personal use only BEN FASH RICK CISTERNA Chief Financial Chief Commercial Officer Officer • Joined in January 2023 • Joined Fluence in Dec 2021 •
Slide 8: Leading ESG Impact in Water Treatment
Leading ESG Impact in Water Treatment Water Sector Emissions: 1.8% of global CO2, 4.6% of global methane; existing Fluence plants mitigate the equivalent of 241k tons of CO2/year Sustainability Impact from Fluence’s Installations Committed to UN Sustainable Development Goals • Fluence technologies a
Slide 9: Proven and Established Products and Technologies
Proven and Established Products and Technologies Trusted brand with extensive installation base with 842 installed plants across the world TOTAL PLANTS: 842 MABR - 340 Anaerobic Digestion - 41 Other Wastewater - 74 NIROBOX - 34 Other Water - 353 For personal use only Excluding aerators and Tipton sa
Slide 10: The Water and Wastewater Market Opportunity is Large and Growing
The Water and Wastewater Market Opportunity is Large and Growing Wastewater treatment, water re-use, and Wastewater-to-Energy is becoming increasingly more important as the world seeks to address a growing global water scarcity crisis • 2.3 billion people live in water-stressed countries, of which 7
Slide 11: Fluence Business Segments
Fluence Business Segments1 The water and wastewater treatment market is highly fragmented, offering a direct opportunity for Fluence to focus on unserved markets DECENTRALIZED MUNICIPAL WATER HIGH-STRENGTH WASTEWATER SPECIALIZED INDUSTRIAL SOUTHEAST ASIA For personal use only & WASTEWATER (“DMWW”) &
Slide 12: Fluence Customers – Examples
Fluence Customers – Examples Fluence has developed strong customer relationships with a number of industrial, municipal, and developer end users For personal use only Fluence has a long-standing relationship with Coca Cola, with 15 projects over the last 12 years, that continues to grow throughout S
Slide 13: Shifting Focus on Smart Product Solutions and Recurring Revenue
Shifting Focus on Smart Product Solutions (“SPS”) and Recurring Revenue Focusing our business on SPS significantly improves profitability, recurring revenue and growth • Stronger Focus on SPS: Ramping sales of TRANSITION TO HIGHER MARGIN SEGMENTS For personal use only our unique, proven water and wa
Slide 14: Recurring Revenue – BOO, O&M, and Parts & Service
Recurring Revenue – BOO, O&M, and Parts & Service Greater emphasis being placed on high-growth, high-margin recurring revenue segment that is offered across all market segments Product Offering For personal use only • Build, Own, & Operate (“BOO”) offers water-as-a-service where Fluence provides the
Slide 15: Case Study: Wastewater-to-Energy BOO Project
Case Study: Wastewater-to-Energy BOO Project: Confidential Client, USA Current Client needs 9,300 m3/day Fluence • BOO wastewater treatment, anaerobic digester, For personal use only Situation wastewater treatment for Solution biogas to the grid meat processing plant • Project can be structured in a
Slide 16: Financial Summary
For personal use only FINANCIAL SUMMARY
Slide 17: 3-Year Vision
3-Year Vision Focused on growing presence in North America and transitioning from CES revenue to SPS and Recurring Revenue segments Medium-Term 2022 TARGETS GEOGRAPHY For personal use only • Increasing share in North America, Caribbean and SEA PRODUCTS • Increasing higher margin SPS and Recurring Re
Slide 18: US$132M in New Order Bookings Forecast in 2H 2023
US$132M in New Order Bookings Forecast in 2H 2023 New order bookings boosts revenue outlook ($ in millions) For personal use only ($50) $132 $135 $53 1 2 Backlog as of 1H Actual Backlog 1 Order Bookings Forecast Order2H Revenue Forecast from revenue Backlog ExpectedJanbacklog 1 2024 2023 1H 2023 Boo
Slide 19: US$81M in New Order Bookings in High Margin Segments
US$81M in New Order Bookings in High Margin Segments Early wins from new strategy Orders ($million) For personal use only (1) $81 $26 $19 $19 H1 2022A H2 2022A H1 2023A H2 2023E DMWW HSWW SIW SEA/China BOO (1) Excludes Ivory Coast Addendum, which will add $53M. 19
Slide 20: Financial Summary
Financial Summary As the business transitions to SPS, Wastewater-to-Energy and Recurring Revenue, profitability increases quickly ($ in millions) Revenue Gross Margin (US$ millions) For personal use only $119 $120+ $112 32%+ $80-85 26% 24% 21% 2021A 2022A 2023E Medium-Term 2025E 2021A 2022A 2023E Me
Slide 21: Appendix 1a: Business Segments
For personal use only APPENDIX 1a: BUSINESS SEGMENTS
Slide 22: Decentralized Municipal Water & Wastewater
Organized by Market Segment: Decentralized Municipal Water & Wastewater PRODUCTS AND TECHNOLOGIES GROWTH DRIVERS For personal use only End markets: • Increasing regulations for nitrogen treatment, for which MABR is • Municipal, private developers, hotel and resorts the most effective, energy-efficie
Slide 23: High-Strength Wastewater & Wastewater-to-Energy
Organized by Market Segment: High-Strength Wastewater & Wastewater-to-Energy GROWTH DRIVERS PRODUCTS AND TECHNOLOGIES For personal use only • Anaerobic digestion with dispersed or granular • Major decarbonization initiatives in North America and Europe creating sludge technology: biogas/biomethane p
Slide 24: Specialized Industrial Water
Organized by Market Segment: Specialized Industrial Water GROWTH DRIVERS PRODUCTS AND TECHNOLOGIES For personal use only • Membrane based water treatment systems • Key vendors partnerships (UF; NF; RO) • Demi and ultrapure water by RO + CEDI • Strong references in target markets • Sea water desalina
Slide 25: Southeast Asia & China
Organized by Market Segment: Southeast Asia & China GROWTH DRIVERS PRODUCTS AND TECHNOLOGIES For personal use only End markets: • Municipal • Increase in Effluent Regulation • Industrial: Semiconductors, Transportation, • Land Redevelopment constraints and costs Power, and Steel • Taiwan requirement
Slide 26: Appendix 1b: Fluence Products & Technologies
For personal use only APPENDIX 1b: FLUENCE PRODUCTS & TECHNOLOGIES
Slide 27: Proven & Proprietary Wastewater Treatment Products
Proven & Proprietary Wastewater Treatment Products Smart, automated wastewater products deploy fast, can upgrade existing plants and require minimal maintenance Modular WW Treatment Key Advantages Business Model For personal use only • Turns wastewater into safe, reusable Traditional model: Preferre
Slide 28: MABR: Lowest Cost WW Treatment Technology for Meeting Stricter Standards
MABR: Lowest Cost WW Treatment Technology for Meeting Stricter Standards Proprietary technology disrupts $100bn wastewater treatment market Fluence Smart MABR Beats Competing Technologies 1 MABR Competition For personal use only Fluence Suez Dupont 30+% overall lower TCO vs Scales from competing tec
Slide 29: MABR: Clear Advantages over Hollow Fiber
MABR: Clear Advantages over Hollow Fiber Robust, energy-efficient, and lower TCO Fluence MABR Membrane • Robust Design: For personal use only – Spiral wound membrane configuration less sensitive to biofouling leading to more stable operations – Over time, spiral wound membrane configuration displace
Slide 30: MABR Technology Validated by Industry Experts
MABR Technology Validated by Industry Experts Black & Veatch independently validated the upgrade goals of the Mayan Zvi SUBRE installation were met and increased capacity achieved For personal use only UPGRADE UPGRADE – BASED INCREASED PARAMETER WWTP DESIGN ON MEASURED CAPACITY – BASED CONDITIONS LA
Slide 31: Fluence MABR Installations have Increased Rapidly
Fluence MABR Installations have Increased Rapidly More than 350 installations and almost 200,000 m3/day of treatment capacity, most installed over the past 5 years 400 200,000 Cumulative treatment capacity [m3/d] plantsonly 350 180,000 160,000 300 use 140,000 250 120,000 Cumulative sold For personal
Slide 32: Case Study: Cambodia Sihanoukville SUBRE Plants
Case Study: Cambodia Sihanoukville SUBRE Plants PS1 & PS2 alone treating the municipal wastewater for a population of more than 100,000 people For personal use only 32
Slide 33: Proven Wastewater-to-Energy & Industrial Wastewater Products
Proven Wastewater-to-Energy & Industrial Wastewater Products Wastewater-to-Energy & Business Model Industrial Wastewater Products For personal use only • 41 plants serving meat, fish, dairy, candy processing Preferred model: • Generate 182 GWh/year clean energy from biomass • Mitigate 128,600 Tons C
Slide 34: Significant Experience in Wastewater-to-Energy Illustrated by Strong Installed Base
Significant Experience in Wastewater-to-Energy Illustrated by Strong Installed Base Highly experienced with over 40 installations and 130,000 Nm3/hr of renewable natural gas production installed and demand growing rapidly For personal use only • Seeing increased demand for its High- 45 140,000 Cumul
Slide 35: Proven Industrial and Drinking Water Products
Proven Industrial and Drinking Water Products Drinking Water Key Advantages Business Model • Turns sea/brackish/fresh water into Traditional model: Preferred model: drinking water • Equipment Sale Drinking Water as a Service For personal use only Estimated ~65% shorter construction time & ~40% less
Slide 36: For personal use only
For personal use only www.fluencecorp.com For further information, please contact: Australia United States of America Andrew Angus Thomas Pokorsky Investor Relations CEO and Managing Director E: andrewangus@overlandadvisers.com.au E: tpokorsky@fluencecorp.com P: +61 402 823 757 36