Fluence Corporation Limited · ASX:FLC
Fluence — g.research: 30th Annual Pump, Valve & Water Systems Symposium (February 2020)
30 slides from Fluence's conference presentation, Feb 28, 2020
Slide 1: Fluence Investor Deck and Road Show
Fluence Investor Deck and Road Show Melbourne, New York February 28, 2020 For personal use only Fluence (ASX:FLC) is pleased to attach a copy of the Investor Deck for presentation at the “g.research: 30th Annual Pump, Valve & Water Systems Symposium” in New York and to investors in Melbourne and Syd
Slide 2: Fluence Corporation (ASX: FLC) February / March 2020
For personal use only www.fluencecorp.com Fluence Corporation (ASX: FLC) February / March 2020
Slide 3: Fluence addresses Global Water Challenges
Fluence addresses Global Water Challenges Global Water Scarcity is a Real and Growing Challenge – For personal use only Fluence provides uniquely compelling, pre-engineered, Smart Products Solutions • Meet growing global water consumption demand - forecast to double by 2050* THE GLOBAL • Manage envi
Slide 4: Accelerating Shift to Decentralised Systems
Accelerating Shift to Decentralised Systems Estimated $13 billion global market for decentralised systems utilising For personal use only pre-engineered water and wastewater treatment products* Traditional Centralised System Decentralised Systems Network of pre-engineered, small, low cost plants û C
Slide 5: Fluence's Unique Solutions
Fluence’s Unique Solutions Focused Solutions for Decentralised Water, Wastewater and Reuse Markets For personal use only ü Installed in weeks, not years: pre-engineered, Wastewater Products modular plants Use proprietary MABR wastewater technology ü Substantially lower energy use and operating costs
Slide 6: Fluence Product Portfolio
Fluence Product Portfolio SPS CES For personal use only Product AspiralTM SUBRE NIROBOXTM/NIROFLEX Custom-Engineered Solutions Wastewater - retrofit and Bespoke water & wastewater Target Market Wastewater - decentralised Desalination/Brackish Water greenfield treatment projects Upgrade existing or n
Slide 7: Why Fluence's MABR Wins
Why Fluence’s MABR Wins – One of the Top 10 Water Tech Inventions of the Decade* For personal use only Fluence Beats Alternatives Even in Tough China Market** for Decentralised Plants Plant Treatment Fluence Option 1: Option 2: Option 3: Options MABRTM MBBR MBR FMBR Capex vs Fluence - +21% +120% +65
Slide 8: Fluence's Environmental Benefits and Sustainability Impact
Fluence’s Environmental Benefits and Sustainability Impact For personal use only 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 & NIROBO
Slide 9: Fluence Board and Leadership
Fluence Board and Leadership Management Team Board of Directors For personal use only Henry J. Charrabé Tony Hargrave Richard Irving Henry J. Charrabé Managing Director & COO Chairman Managing Director & CEO • Over 30 years’ water • 35 years’ tech and CEO • Former CEO of RWL industry Venture Capital
Slide 10: Investment Highlights
Investment Highlights For personal use only ü Only global, pure play water and wastewater treatment company delivering standardised, pre- engineered solutions focused on the huge & growing decentralised market – fast to deploy, low cost, lower risks and meets tightening regulatory standards ü Wastew
Slide 11: Financial Overview
For personal use only Financial Overview
Slide 12: Revenue and Product Mix
Revenue and Product Mix Focused shift towards higher margin Smart Products Solutions and Recurring Revenue For personal use only Revenue Mix Revenue 3% 35 2% 3% 10% Smart Products Solutions 30 16% 22% 43% 25% 25 11% US$M 65% 20 82% 46% 75% 15 Recurring Revenue 10 2017* 2018 2019** Future Target 5 Sm
Slide 13: Sustainably EBITDA Positive from Q1 2020
Sustainably EBITDA Positive from Q1 2020 Fixed Costs Reduction vs. Prior Year* Transition Towards Higher Margin Revenue For personal use only -30% Illustrative -12% Increasing Gross Margin Illustrative 2018 2019 2020 Large Smart Proprietary Proprietary Recurring Projects Products Smart Products Smar
Slide 14: Summary Financials
Summary Financials 2020 Segment Revenue ($m) 2017(1) 2018(2) 2019(3) Comments Outlook For personal use only CES 45.5 72.7 27.3 > 120m à Backlog of $265m over 2 years, underpinned by Ivory Coast SPS 11 21.8 26.5 > 32m à Conservative guidance largely underpinned by existing agreements - China SPS 0.3
Slide 15: Fluence Revenue Models
Fluence Revenue Models For personal use only Pre-Engineered Products Custom-Engineered Solutions Smart Products Solutions1 Recurring Revenue2 Turnkey Projects • Sale of pre-engineered solutions • Use pre-engineered products for BOOT • Long term projects with payments (>50% pre-eng’d, >25% GM) projec
Slide 16: Key Financial Highlights from 2019
Key Financial Highlights from 2019 For personal use only • Q4 2019 bookings of US$25.4 million, total backlog of US$265.0 million at 31 December 2019 • FY 2019 Smart Products Solutions revenue of US$26.5 million, exceeding revised guidance • China Smart Products Solutions sales up 360% from 2018, un
Slide 17: Business Overview
For personal use only Business Overview
Slide 18: Wastewater Product Overview
Wastewater Product Overview Wastewater products utilising Fluence’s proprietary MABR technology For personal use only MABR Configurations MABR Modules Integrated in existing solutions Degree of increasing Decentralisation Aspiral™ Smart Packaged plants Treats wastewater for communities Upgrades cent
Slide 19: MABR Wastewater Deployments in China
MABR Wastewater Deployments in China China’s 13th Five-Year Plan commits to adding rural wastewater treatment for 440 million For personal use only people (~$15 billion in government funding) • Aspiral™ and SUBRE meet required Chinese rural wastewater treatment standards for non-potable reuse at 3 t
Slide 20: Update Regarding China and the Coronavirus
Update Regarding China and the Coronavirus • Due to the travel restrictions imposed by the Chinese Government as a For personal use only result of the outbreak of the coronavirus, Fluence has taken several precautionary measures. • Many of Fluence’s partners and customers who could potentially be af
Slide 21: Global MABR Wastewater Treatment Deployments
Global MABR Wastewater Treatment Deployments Targeting countries which urgently need wastewater treatment solutions and For personal use only enforce stricter wastewater treatment standards Wastewater product sales are anticipated to accelerate with numerous partnerships under negotiation in targete
Slide 22: Smart Products Solutions: Desalination Product Deployments
Smart Products Solutions Desalination Product Deployments For personal use only Containerised desalination plants ready for Targeting geographies urgently addressing rapid deployment and operation extreme water shortages • Approximately one-third of construction time and ~40% less CAPEX required tha
Slide 23: Custom-Engineered Solutions
Custom-Engineered Solutions Fluence provides turnkey custom-engineered water and wastewater treatment solutions For personal use only • Innovative solutions designed for customer needs Ivory Coast Project – source of strong revenue visibility for next two years+ • Projects include: • Turnkey supply
Slide 24: Appendix
For personal use only Appendix
Slide 25: Corporate Overview
Corporate Overview For personal use only Capital Structure* Top Holders ASX: FLC 31 Jan 2020 Shares (M) % of FLC Ordinary Shares on issue 624.9M RSL Affiliates 164.4 26.5 Options on issue 39.6M Watermark Services, LLC 52.8 8.5 Share Price A$0.40 Pond Ventures Nominees and 37.3 6.0 Undiluted Market C
Slide 26: Fluence History
Fluence History Q4 2019 • Bulk follow-on Aspiral™ For personal use only orders from China (I-Test, Kaitian) FY 2018 • $5M lithium mine order • Achieved organic Q2 2019 Argentina revenue growth of 74% • Largest booking in • Achieved FY 2019 bookings of • >200% increase in Brazil for $10M $281M Gross
Slide 27: MABR – Innovative and Proprietary
MABR – Innovative and Proprietary MABR = Membrane Aerated Biofilm Reactor For personal use only Patented technology that provides lower-cost, reliable, quality wastewater treatment • Clear advantages over other wastewater solutions that use large amounts of force to power treatment • Allows up to 90
Slide 28: Why MABR Wins
Why MABR Wins For personal use only CAPEX and OPEX Comparison (1,000 m3/day)*MBR Accumulated Costs MABR vs. MBBR, MBR and FMBR 7 Parameters Accumulated Cost (RMB M) Fluence MABR A3O-MBBR MBR FMBR 6 MBR CAPEX (RMB) 2,404,380 2,900,000 5,300,000 3,975,000 5 FMBR 4 A3O-MBBR Energy consumption 0.24 0.35
Slide 29: Smart Products Solutions
Smart Products Solutions Pre-engineered products offer quick deployment at higher margin For personal use only Smart Products Solutions: Definition Smart Products Solutions: Benefits • Proven, proprietary technology delivered in • Higher gross margin = higher profitability standardized, pre-engineer
Slide 30: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). All currencies quoted as “$” are US dollars unless otherwise specified. This presentation may contain forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘beli
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