Fluence Corporation Limited · ASX:FLC
Fluence — Investor Presentation (November 2023)
38 slides from Fluence's investor presentation, Nov 1, 2023
Slide 1: Recapitalisation Transaction
For personal use only R E C A P I TA L I S AT I O N Sustainable Water Solutions TRANSACTION November 2023
Slide 2: Important notice and Disclaimer
Important notice and Disclaimer Overview performance and involve known and unknown risks, uncertainties, assumptions and other This presentation (Presentation) is dated 1 November 2023 and has been prepared by Fluence important factors many of which are beyond the control of the Company, its Directo
Slide 3: Important notice and Disclaimer
Important notice and Disclaimer Past performance To the maximum extent permitted by law, each Limited Party expressly disclaims any and all Past performance and pro forma historical information in this Presentation is given for liability (including without limitation for negligence) for any statemen
Slide 4: Important notice and Disclaimer
Important notice and Disclaimer Financial data agree to the matters set out in this Important Notice and Disclaimer and any modifications All dollar values are in US dollars ($ or US$) unless stated otherwise. FLC’s financial year is from notified to you and/or otherwise released on ASX. 1 January t
Slide 5: Executive Summary – Fluence Corporation Limited
Executive Summary – Fluence Corporation Limited New and Highly • Over 100 years of experience in the water and wastewater treatment industry Experienced • Chairman, CEO, CFO, and CCO all joined within the last two years Leadership • Notable turnaround experience and a number of highly successful exi
Slide 6: Company Profile – Fluence Corporation Limited
Company Profile – Fluence Corporation Limited 1.00 FLC Share Price Chart 8.0 Fluence existing Customers; Volume Share Pricing 0.80 Share Price ($) 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 Sha
Slide 7: World Class Management Team
World Class Management Team Newly appointed management team with significant experience in water treatment leading to multiple successful exits DOUG BROWN TOM POKORSKY For personal use only Chairman CEO and Managing Director • Fluence BOD Advisor May 2022, BOD Chairman March 2023 • Joined in March 2
Slide 8: 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 9: Fluence Business Segments – Realigned to Address End Market Needs
Fluence Business Segments – Realigned to Address End Market Needs 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 pe
Slide 10: 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 11: Fluence Proprietary Technology - MABR
Fluence Proprietary Technology - MABR MABR technology disrupts $100bn wastewater treatment market MABR Technology MABR Configurations For personal use only Aspiral Micro On-site sewage SUBRE Upgrade treatment Retrofit using Air is supplied to a spirally MABR wound, semi permeable membrane Aspiral Th
Slide 12: Proven Wastewater-to-Energy Products
Proven Wastewater-to-Energy Products Strongly positioned for rapidly growing market Wastewater-to-Energy & Business Model Industrial Wastewater Products Preferred model: For personal use only • 41 plants serving meat, fish, dairy, candy processing Equipment Sale • Generate 182 GWh/year clean energy
Slide 13: 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 14: 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 15: Recent Success
Recent Success Fluence has won multiple new contracts highlighting traction against the new strategy and realignment • For personal use only Waste to Energy: US$8m in New Contracts (18th September 2023) – Three wastewater treatment and waste-to-energy contracts in Mexico and Italy • Water reuse in s
Slide 16: Strong Pipeline of New Contracts
Strong Pipeline of New Contracts Investment in sales, particularly in North America, paying dividends through rapidly growing pipeline • Total current sales pipeline of $619M, up from $332M (US$ millions) $619 For personal use only at the beginning of 2023 (1) • Pipeline has almost doubled since beg
Slide 17: Financial Summary
For personal use only FINANCIAL SUMMARY
Slide 18: 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 1 For personal use only 8 3 11 1 • Increasing share in North America, Caribbean and SEA 8 1 1 1 13 PRODUCTS 11 • Increasing higher ma
Slide 19: US$132M in New Order Bookings Forecast in 2H 2023
US$132M in New Order Bookings Forecast in 2H 2023 New order bookings boosts revenue outlook (US$ millions) For personal use only • With expected order bookings of $130M+, Fluence is forecasting to finish 2023 with almost 3x the backlog (orders in hand) compared to 1H 2023 • $60M of the orders in han
Slide 20: 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. 20
Slide 21: Improved outlook in H2 2023
Improved outlook in H2 2023 Forecast to be profitable and cash flow positive in Q4 2023E, building momentum for 2024 • EBITDA in H2 2023 expected to be $2.5-3.0M with Revenue of US$ million H1 2023A Q3 2023A Q4 2023E H2 2023F FY 2023E For personal use only $45- M and GM’s of Revenue • Key revenue dr
Slide 22: Financial Summary
Financial Summary As the business transitions to SPS, Wastewater-to-Energy and Recurring Revenue, profitability increases quickly ($ 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 23: Offer Overview
For personal use only OFFER OVERVIEW
Slide 24: Offer Overview
Offer Overview • A$47.3 million Offer, comprising: Offer Summary • A$40.7 million Capital Raising • A$6.6 million Shareholder Sale For personal use only • Capital raising of A$40.7 million includes: • a 1 for 2.5 pro-rata accelerated non-renounceable entitlement offer to eligible shareholders of Flu
Slide 25: Offer Price
Offer Price Offer Price is A$0.08 per share • The Entitlement Offer will have an offer price of A$0.08 per New Share • The Placement and Shareholder Sale (“PSS”) will have a blended offer price of A$0.08 per share, which represents For personal use only the average of: • A$0.12 per Placement share O
Slide 26: Offer Details
Offer Details Director and Management • Directors and Management of Fluence intend to participate in the Capital Raising via the Entitlement Offer and Sub- Participation underwriting of the Entitlement Offer up to ~A$9.5m For personal use only • The Institutional Entitlement Offer, Placement and Sha
Slide 27: Sources & Uses of Funds
Sources & Uses of Funds Sources & Uses (USD M$) (AUD M$) For personal use only Sources Institutional Entitlement Offer $7.5 $11.6 Retail Entitlement Offer(1) $5.9 $9.2 Institutional Share Placement $12.8 $19.8 Total Sources $26.2 $40.7 Uses Repayment of Upwell Term Loan (November 2023) $15.0 $23.3 A
Slide 28: Pro Forma Summary Balance Sheet
Pro Forma Summary Balance Sheet* Pro Forma net cash of $9.8m at July 2024 (USD M$) PF 6/30/23: PF 6/30/23: Balance Sheet Cap Raise PF Adj: Upwell Upwell Summary Balance Sheet as at 6/30/23 PF Adj: Closing Closing Maturity(2) Maturity For personal use only Cash $18.1 $8.6 $26.8 ($12.2) $14.6 Other Cu
Slide 29: Indicative Offer Timetable
Indicative Offer Timetable Event AEST Trading halt and announcement of underwritten offer Wednesday 1st November 2023 For personal use only Placement, Shareholder Sale and Institutional Entitlement Offer Bookbuild Opens Wednesday 1st November 2023 Announcement of results of Placement and Institution
Slide 30: Risks and Foreign Selling Restrictions
For personal use only RISKS AND FOREIGN SELLING RESTRICTIONS
Slide 31: Key Risks
Key Risks Topic Risk disclosure FLC has a complex group structure with companies in many jurisdictions. As a result, FLC is exposed to local laws and regulations which can hamper the efficient operation of its business. In particular FLC has subsidiaries and projects in locations which attract excha
Slide 32: Key Risks (continued)
Key Risks (continued) Topic Risk disclosure FLC is a global company and operates in numerous countries around the world. FLC must comply with a range of governance requirements which are conditions of its listing on ASX. New or evolving regulations and international standards are outside FLC's contr
Slide 33: Key Risks (continued)
Key Risks (continued) Topic Risk disclosure The Shares are to be quoted on the ASX, where their price may rise or fall in relation to the Offer Price. The Shares issued under the Capital Raising carry no guarantee of profitability, dividends, return of capital, or the price at which they may trade o
Slide 34: Foreign Selling Restrictions
Foreign Selling Restrictions This Presentation does not constitute an offer of new ordinary shares (New Shares) of the Singapore Company in any jurisdiction in which it would be unlawful. In particular, this Presentation may This Presentation and any other materials relating to the New Shares have n
Slide 35: Foreign Selling Restrictions
Foreign Selling Restrictions United Kingdom The New Shares under the Entitlement Offer are not being offered to the public within New Neither this Presentation nor any other document relating to the offer has been delivered for Zealand other than to existing shareholders of FLC with registered addre
Slide 36: Foreign Selling Restrictions
Foreign Selling Restrictions Canada (British Columbia, Ontario and Quebec provinces) Province. A purchaser may refer to any applicable provision of the securities legislation of the This Presentation constitutes an offering of New Shares only in the Provinces of British purchaser’s Province for part
Slide 37: Appendix 1: BOO Case Study
For personal use only APPENDIX 1: BOO Case Study
Slide 38: 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