Slide 1: The Only Global Player Focused on Decentralised Water Markets
For personal use only The Only Global Player Focused on Decentralised Water Markets October 2017
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). This presentation should not be considered as an offer or invitation to subscribe for or purchase any shares in FLC or as an inducement to make an offer or invitation to subscribe for or p
Slide 3: Fluence Snapshot
For personal use only Fluence Snapshot
Slide 4: Fluence: Strategic Advantage by Design
Fluence: Strategic Advantage by Design For personal use only Emefcy RWL Water • Creator of innovative, decentralised • Specialised in standardised, decentralised wastewater technologies (MABR, SUBRE) solutions with fast path to revenue • Technology advantage = highly differentiated, • Proven executi
Slide 5: Fluence Combines The Best Market Opportunity With The Right Solutions
Fluence Combines The Best Market Opportunity With The Right Solutions For personal use only US$700B global water Only global, pure play Proven solutions offer Targeting fastest market – tighter rules, water & wastewater best-in-class growing segments urgent needs treatment company performance MABR r
Slide 6: World-Class Board & Leadership
World-Class Board & Leadership For personal use only Leadership Team Henry J. Charrabé Philippe Laval Bob Wowk Ronen Schechter Managing Director COO CFO CTO & CEO • Former COO • 25 years • Co-Founder • Former CEO RWL Water finance Emefcy RWL Water • 27 years experience environmental operating experi
Slide 7: Progress
For personal use only Progress
Slide 8: Progress since EGM (July 2017)
Progress since EGM (July 2017) For personal use only Global China • US$9M+ in new bookings • China network in place – ready to ramp • Introduction of MABR to other geographies • 6 MABR demo plants operating in China (ex China) • Wuxi Design Institute Certification • First Full-scale SUBRE contract •
Slide 9: A Global Leader in Fast-To-Deploy Decentralised Treatment Solutions
A Global Leader in Fast-To-Deploy Decentralised Treatment Solutions For personal use only Sales reach in US, China, Latin America, Africa, Europe Diversifies revenue sources while increasing opportunities Global operations, including manufacturing in Israel, Argentina, USA, Italy and China 9
Slide 10: Well Positioned for Huge China Opportunity
Well Positioned for Huge China Opportunity For personal use only China’s current 5 year plan to fund rural wastewater treatment US$15 Billion opportunity, 440 million people to benefit Fluence starting to deploy smart packaged wastewater treatment systems Local manufacturing of MABR modules and plan
Slide 11: Positioning
For personal use only Positioning
Slide 12: Target Markets Growing Rapidly
Target Markets Growing Rapidly For personal use only Smart Packaged Plants: Global New capex: Cumulative new capex: market size grows from US$13.3B On desalination and On desalination and in 2016 to US$21.8B in 2021 reuse equipment reuse plants, 2017-22 (US$ Billions) (US$ Billions) 9.1 8.4 EU/ C As
Slide 13: Unique Market Position Drives Global Growth
Unique Market Position Drives Global Growth For personal use only Decentralized treatment No competitor fully Fluence has compelling markets are large & growing addresses market needs differentiators Disruptive technology Major players target US$13B in 2016 big projects -> US$22B in 2021 Smart Packa
Slide 14: Critical Success Factors Help Drive Success
Critical Success Factors Help Drive Success For personal use only We Become Break- Smart “Go To” Great Global through Packaged Company Reputation Footprint Innovations Plants For Water Solutions Steady revenue, Fastest path to Enormous breadth Steady flow of margin Beats competitors working system &
Slide 15: Critical Success Factor: Growing Gross Margin
Critical Success Factor: Growing Gross Margin For personal use only 15% 25% 35%+ Gross 50%+ Margin Large Smart Proprietary Proprietary Project Packaged Smart Packaged Product Plant Plant Example: Africa Nirobox Smart Packaged SUBRE Project MABR 15
Slide 16: Complete Suite of Global Solutions
For personal use only Complete Suite of Global Solutions
Slide 17: Critical Success Factors: Key Initiatives
Critical Success Factors: Key Initiatives For personal use only 1. Diversified business: multiple leading-edge products & geographies • Nirobox now 2. Smart Packaged Plant advantages: (growing fast) faster sale, deployment, and higher margins • Smart Packaged MABR is key to China success • New produ
Slide 18: Smart Packaged Plants Enable Rapid Sales Growth
Smart Packaged Plants Enable Rapid Sales Growth For personal use only Nirobox Smart Packaged Plant • Containerised, mobile desalination Nirobox Sales plant for easy deployment globally $28M* • Strong margins (25%) • Introduced in 2015 with immediate market adoption Projected 4x year-on-year growth $
Slide 19: Why Smart Packaged Plants Win: Case Study
Why Smart Packaged Plants Win: Case Study For personal use only Deploys in 1/3 of the time, at 37% lower cost, captures 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 tim
Slide 20: Smart Packaged MABR Plants Enable Fastest Path To Revenue
Smart Packaged MABR Plants Enable Fastest Path To Revenue For personal use only MABR Smart Packaged Plant • Containerised, mobile, low energy distributed wastewater plant • High margins (35%+) • Introduced in 2017 targeting China, Rural and Global Markets • Local made modules reach sites fast 20
Slide 21: SUBRE (Submerged MABR) Opens Large New Market
SUBRE (Submerged MABR) Opens Large New Market For personal use only SUBRE • Submerged MABR enables centralized plant compliance with new regulations without chemicals • High capacity make SUBRE suitable for retrofitting to existing wastewater plants • High margins (50%) • First full-scale SUBRE cont
Slide 22: Compelling GLOBAL Position = Diversified Revenue
Compelling GLOBAL Position = Diversified Revenue For personal use only Product Market Competitive Advantage Proof Points Decentralized Up to 90% less energy, Plants in USVI (US EPA Smart Packaged wastewater: halves opex, fast time to certified), 5 in China, 1 in MABR US$9.1B in ‘21 + market Ethiopia
Slide 23: Sell All Products to ALL GEOGRAPHIES
Sell All Products to ALL GEOGRAPHIES For personal use only Geography Fluence Track Record Next Steps Ramp MABR wins New entrant: 9 rural wastewater treatment Sell SUBRE for easy plant upgrade partners China Water purification and desal 5 working plants (Wuxi completed) Waste-to-energy First commerci
Slide 24: Measuring Success
Measuring Success For personal use only • Sustain 20-30% growth to drive revenue Bookings • Initial China MABR – 10’s of units booked in 2017 • Nirobox, Waste-to-Energy, MABR globally • Sustain 20-30% growth Revenue • 2H 17 run rate US$90M Backlog • If contracts slip, ensure they stay on backlog Gro
Slide 25: Fluence: The Right Solution
Fluence: The Right Solution For personal use only US$700B global water Only global, pure play Proven solutions offer Targeting fastest market – tighter rules, water & wastewater best-in-class growing segments urgent needs treatment company performance MABR ramp starting in First SUBRE contract Globa
Slide 26: Key Contacts
KEY CONTACTS Key Contacts For personal use only Richard Irving Henry Charrabé Executive Chairman Managing Director & CEO, Global Operations +1 408 382 9790 +1 212 572 3766 rirving@fluencecorp.com hcharrabe@fluencecorp.com 26