Fluence Corporation Limited · ASX:FLC
Fluence — Non-Deal Roadshow (November 2020)
22 slides from Fluence's roadshow presentation, November 2020
Slide 1: Fluence Corporation (ASX: FLC) November 2020
www.fluencecorp.com Fluence Corporation (ASX: FLC) November 2020
Slide 2: Fluence Strategic Repositioning
Fluence Strategic Repositioning Ø MABR ü 219 MABR systems sold – fast adoption for a new wastewater treatment technology ü Focus now on sales to China and Southeast Asia: strongest near-term potential ü Additional sales channels via strategic partnerships in USA Ø Nirobox ü 115 Nirobox desalination
Slide 3: Q3 Summary
Q3 Summary ü Ivory Coast Project conditions precedent met, notice-to-proceed received, construction commencing and advance payment received ü Revenue of US$15.6M, up 13% on pcp and up 50% vs Q2 2020 ü Reduction of SG&A by more than 16% on pcp and down 22% year-to-date on pcp ü Gross bookings of US$7
Slide 4: First nine months 2020 Key Highlights
First nine months 2020 Key Highlights Revenue Performance ($ in millions) th $72.9 Grow Y-o-Y 95% $37.4 YTD Sep ’19 YTD Sep. ’20 ü Employees, partners and customers kept safe – during global pandemic ü Operating revenue up 95% to $72.9m* ü SG&A continued to decline, down ~22% ü EBITDA positive, and
Slide 5: Ivory Coast Project: Construction Commences
Ivory Coast Project: Construction Commences ü Final conditions precedent for the €165 million (approx. US$194 million) Ivory Coast water treatment plant (“Project”) have been met ü The Ivory Coast Government finance facility covers project cost ü €23.1 million Advance Payment received, additional pa
Slide 6: Fluence Provides Innovative, Compelling Solutions
Global Water Scarcity is a Growing Challenge: Fluence Provides Innovative, Compelling Solutions • Meet growing global water demand - forecast to double by 2050* THE GLOBAL • Manage environmental threats from untreated wastewater CHALLENGE • Traditional approach is often unaffordable and impractical
Slide 7: Accelerating Shift to Decentralised Systems
Accelerating Shift to Decentralised Systems Estimated $13 billion global market for decentralised systems utilising pre-engineered water and wastewater treatment products* Traditional Centralised System Decentralised Systems Network of pre-engineered, small, low cost plants û Costly to build and ope
Slide 8: Fluence's Innovative Solutions
Fluence’s Innovative Solutions Focused Solutions for Decentralised Water, Wastewater and Reuse Markets Wastewater Products 219 Systems Serve 500,000 people ü Installed in weeks, not years: pre-engineered, Use proprietary MABR wastewater technology modular plants ü Substantially lower energy use and
Slide 9: Why Fluence's MABR Wins
Why Fluence’s MABR Wins One of the Top 10 Water Tech Inventions of the Decade* Fluence Beats Alternatives Even in Tough China Market** for Decentralised Plants Plant Treatment Option 3: Fluence MABR Option 1: MBBROption 2: MBR Options FMBR Capex vs Fluence - +21% +120% +65% Opex vs Fluence - +50% +1
Slide 10: MABR Wastewater Deployments in China
MABR Wastewater Deployments in China China’s 13th Five-Year Plan to add rural wastewater treatment for 440M people ~$15 billion in government funding • Aspiral™ and SUBRE meet high Chinese treatment standards at lowest cost 3 • Key partnerships secure bulk orders, Key partnerships for bulk orders 25
Slide 11: Smart Products Solutions: Desalination Solutions Targeting Middle East and Southeast Asia
Smart Products Solutions: Desalination Solutions Targeting Middle East and Southeast Asia Containerised desalination plants Targeting Middle East and Southeast Asian markets • Fresh water for 10,000 people supplied by one 40- • Middle East – driven by Egypt JV and potential foot container new partne
Slide 12: Fluence's Environmental Benefits and Sustainability Impact
Fluence’s Environmental Benefits and Sustainability Impact Committed to UN SDGs Sustainability Impact from Fluence’s Installations • Fluence’s innovative solutions contribute to the conservation of resources, energy savings, generation of energy and reuse of water MABR & NIROBOX Waste-to-Energy Ø Fl
Slide 13: Fluence Board and Leadership
Fluence Board and Leadership Key Management Board of Directors Tony Hargrave Richard Irving Paul Donnelly COO Chairman & CEO Independent Lead • 35 years’ tech and Director • Over 30 years’ water industry Venture Capital • Over 30 years’ management experience international experience • US$3B value fi
Slide 14: Investment Highlights
Investment Highlights ü Only global, pure play water and wastewater treatment company delivering standardized solutions to a growing, global, decentralised market ü Fast to deploy, lower cost, lower risk way to meet tightening regulatory standards ü Driving growth by selling proven proprietary MABR
Slide 15: Financial Overview
Financial Overview tes g. hie | Laebih ot sas Up
Slide 16: Revenue and Product Mix
Revenue and Product Mix Focused shift towards higher margin Smart Products Solutions and Recurring Revenue Revenue Mix Revenue 3% 35 2% 3% 10% Smart Products Solutions 30 16% 22% 43% 25% 25 11% 65% US$M 20 82% 75% 46% 15 Recurring Revenue 10 2017* 2018 2019 Future Target** 5 Smart Products Solutions
Slide 17: Growing Margins While Reducing Opex
Growing Margins While Reducing Opex Fixed Costs Reduction vs. same period of Prior Year* Transition Towards Higher Margin Revenue -30% Illustrative -12% Increasing Gross Margin -22% (9 months) Large Smart Proprietary Proprietary Recurring FY 2018 FY 2019 YTD 2020 Projects Products Smart Products Sma
Slide 18: Summary Financials
Summary Financials 2020 Segment Revenue ($m) 2017(1) 2018(2) 2019(2) Comments to Q3 (3) CES 45.5 72.7 27.4 49.1 à Backlog of $189m over 2 years, underpinned by Ivory Coast SPS 11 21.8 26.5 18.2 à Q4 revenue underpinned by existing backlog of $23m over the next 12 months - China SPS 0.3 2.8 12.8 6.8
Slide 19: Appendix
Appendix
Slide 20: Corporate Overview
Corporate Overview Capital Structure* Top Holders ASX: FLC 3 Nov 2020 Shares (M) % of FLC Ordinary Shares on issue 624.9M RSL Investments 165.4 26.5 Options on issue 35.3M Clearpath Foundation 61.6 9.9 Share Price A$0.265 Pond Ventures Nominees and 37.3 6.0 Undiluted Market Capitalization A$166M Ric
Slide 21: MABR – Innovative and Proprietary
MABR – Innovative and Proprietary MABR = Membrane Aerated Biofilm Reactor Patented technology that provides lower-cost, reliable, quality wastewater treatment • Clear advantages over other wastewater solutions that use large amounts of force to power treatment • Allows up to 90% reduction in energy
Slide 22: Disclaimer
Disclaimer This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). All currencies quoted as “$” are US dollars unless otherwise specified. This presentation may contain forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘t