Fluence Corporation Limited · ASX:FLC
Fluence — Non-Deal Roadshow (November 2017)
29 slides from Fluence's roadshow presentation, Nov 13, 2017
Slide 1: A Global Leader in Decentralized Solutions
For personal use only A Global Leader in Decentralized Solutions Addressing Fastest Growing Water Markets Non-Deal Roadshow November 2017
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). All currencies quoted as “$” are US$ unless otherwise specified. This presentation should not be considered as an offer or invitation to subscribe for or purchase any shares in FLC or as a
Slide 3: Corporate Overview
Corporate Overview For personal use only Capital Structure 1 October 2017 ASX: FLC Top Holders ASX: FLC Shares (M) % of FLC Ordinary Shares on Issue 393M RSL Investments 111 28.25 Options on issue 46M Pond Ventures 29 7.37 Share Price A$0.64 ESOP Management Trust 19 4.96 Undiluted Market Capitalizat
Slide 4: Market Opportunity
For personal use only Market Opportunity
Slide 5: Growing Global Water Crisis Now
Growing Global Water Crisis Now For personal use only Water shortages affect 2.7B now 2.4B lack proper wastewater treatment now An additional population of 2.1B need upgraded treatment Urgent Need For Affordable, Population growth from 7.4B in 2016 to 9.1B in 2050 Fast-to-Deploy 60% increase in glob
Slide 6: Today's Large Centralized Solutions Will Not Address the Growing Demand
Today’s Large Centralized Solutions Will Not Address the Growing Demand For personal use only • Large centralized plants: CapEx and OpEx inefficient and demands massive in- ground infrastructure – too costly • Developed world: Rusting pipes and growing communities drive pipe replacement: US$1M – US$
Slide 7: Decentralized Packaged Treatment Plants: The Solution For Global Water Needs
Decentralized Packaged Treatment Plants: The Solution For Global Water Needs For personal use only • Smart Packaged Plants provide a cost effective ‘plug and play’ solution, avoiding inefficient infrastructure projects spanning years and costing hundreds of millions • Smart Packaged Plants enable re
Slide 8: Target Markets Growing Rapidly
Target Markets Growing Rapidly For personal use only Smart Packaged Plants: US$83B in Planned CapEx Global market growing from Desalination and Reuse plants US$13.3B to US$21.8B (2016 to 2021) (2017 to 2022) EU/ C Asia 9.1 US9.1B 8.4 (11%) China & Taiwan US$29.9B (36%) 5.5 USA 5.1 4.4 US$15.6B US$ B
Slide 9: Fluence Positioning
For personal use only Fluence Positioning
Slide 10: A Global Leader in Fast-To-Deploy Decentralized Treatment Solutions
A Global Leader in Fast-To-Deploy Decentralized Treatment Solutions For personal use only Sales reach in US, China, Latin America, Africa, Europe Diversifies revenue sources while increasing opportunities Global operations, incl. manufacturing in Israel, Argentina, USA, Italy and China 10
Slide 11: Fluence – An Established Global Player with Differentiated Products Serving Growing Markets
Fluence – An Established Global Player with Differentiated Products Serving Growing Markets For personal use only US$700B global water Only global, pure play Targeting fastest growing Proven solutions offer market – tighter rules, water & wastewater segments best-in-class performance urgent needs tr
Slide 12: Critical Success Factors Driving Success
Critical Success Factors Driving Success For personal use only We Become Break- Smart “Go To” Great Global through Packaged Company For Innovations Reputation Footprint Plants Water Solutions Fastest path to Steady flow of Steady revenue, Beats 7,000 references in working system & leads, access to m
Slide 13: Unique Competitive Position Drives Global Growth
Unique Competitive Position Drives Global Growth For personal use only Decentralized treatment No competitor fully addresses Fluence has compelling markets are large & growing market needs differentiators Disruptive technology Major players target US$13B in 2016 big projects -> US$22B in 2021 Smart
Slide 14: 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 RWL Water finance Emefcy Water • 27 years experience environmental operating experi
Slide 15: Well Positioned for Huge China Opportunity
Well Positioned for Huge China Opportunity For personal use only China’s 13th 5 year plan provides US$15 Billion funding for rural wastewater treatment Fluence MABR uniquely qualified for this market Fluence has established multiple channel partnerships in China Shipment of Commercial Packaged Plant
Slide 16: Large Diversified Client Base
Large Diversified Client Base For personal use only Fluence focuses on decentralised, packaged water solutions for customers across the industrial, commercial and municipal sectors Historical and Existing Customers and Partners 16
Slide 17: Critical Success Factor: Growing Gross Margin
Critical Success Factor: Growing Gross Margin For personal use only Increasing Gross Margin Large Smart Proprietary Proprietary Project Packaged Smart Packaged Product Plant Plant Example: US$100M Nirobox Smart Packaged SUBRE Africa Project MABR (MoU signed) 17
Slide 18: 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 19: Smart Packaged NIROBOX Plants Deliver Water Fast
Smart Packaged NIROBOX Plants Deliver Water Fast For personal use only The growing demand for potable water due to climate change require fast deployment of robust, reliable water desalination solutions • NIROBOX is a field proven solution that addresses the mid market • Shorter time-to-water the id
Slide 20: Smart Packaged Plants Drive Rapid Sales Growth
Smart Packaged Plants Drive Rapid Sales Growth For personal use only Nirobox Smart Packaged Plant • Containerised, mobile desalination plant for easy Nirobox Sales Ramp deployment globally 40 Units* • Wins contracts by saving energy, cost, time to deployment • Higher gross margins Projected 4x • Int
Slide 21: How MABR Works
How MABR Works For personal use only MABR inspired by nature 1. Air breathed in 1. Air passes through O2 2. Oxygen Semi-permeable membrane dissolves naturally Biofilm into wastewater through membrane 2. Oxygen dissolved naturally into blood 3. Blood (with through lung material oxygen) flows out 3. W
Slide 22: 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 • The key to capture a large portion of the vast Chinese market • Captures 2x revenue, 40% higher gross margin versus selling onl
Slide 23: SUBRE (Submerged MABR) Opens Large New Market
SUBRE (Submerged MABR) Opens Large New Market For personal use only SUBRE • Submerged MABR upgrades centralized plant capacity, efficiency & compliance without chemicals • Average Fluence revenues $4.5M/plant, thousands of plants need upgrading • High margins • First full-scale SUBRE contract secure
Slide 24: Proven Industrial Waste-to-Energy Solutions
Proven Industrial Waste-to-Energy Solutions For personal use only Onsite production of energy reduces electricity and gas consumption High-quality, treated effluents meet the most stringent requirements Reduction of sludge volume by up to 90%, significantly reduces landfill waste Output can be used
Slide 25: Compelling GLOBAL Position = Diversified Revenue
Compelling GLOBAL Position = Diversified Revenue For personal use only Product Market Competitive Advantage Proof Points Decentralized Smart Packaged wastewater: Up to 90% less energy, halves Plants in USVI (US EPA certified), 5 MABR US$9.1B in ‘21 + opex, fast time to market in China, 1 in Ethiopia
Slide 26: Company Products Satisfy Global Geographies
Company Products Satisfy Global 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 c
Slide 27: Metrics to Track Success: Guidance For Next Year
Metrics to Track Success: Guidance For Next Year in Early 2018 For personal use only • Sustain >25% growth to drive revenue growth Bookings • Initial China MABR – 10’s of units booked in 2017 • Nirobox, Waste-to-Energy, MABR globally • If contracts slip, ensure they stay on backlog – maintains Backl
Slide 28: Fluence: The Right Solution
Fluence: The Right Solution For personal use only US$700B global water Only global, pure play Targeting fastest growing Proven solutions offer market – tighter rules, water & wastewater segments best-in-class performance urgent needs treatment company MABR ramp starting in Global team of 330+ Strong
Slide 29: Key Contacts
Key KEY Contacts CONTACTS For personal use only Richard Irving Henry Charrabé Executive Chairman Managing Director & CEO +1 408 382 9790 +1 212 572 3766 rirving@fluencecorp.com hcharrabe@fluencecorp.com 29