Slide 1: Investor Presentation May 2022
For personal use only Investor Presentation May 2022 Sustainable Decentralized Water Solutions
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 dollars unless otherwise specified. This presentation may contain forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘beli
Slide 3: Investment Highlights
Investment Highlights For personal use only Proven, Proprietary & Advantaged Water Treatment Products High Growth, Large Addressable Global Market Leading ESG Impact in Water Treatment & Desalination Strong Market Penetration & Inflecting Demand From Partners Achieving Strong, Profitable Growth in C
Slide 4: Important Team Additions
Important Team Additions Tom Pokorsky, CEO and Managing Director • For personal use only Proven water industry executive with 35 years of executive experience, including 15 years as CEO • Strong track record growing water businesses organically and inorganically, including multiple successful exits
Slide 5: Fluence: Time To Take Our Asia Success Global
Fluence: Time To Take Our Asia Success Global For personal use only • With two EBITDA positive years and continued strong adoption of our unique MABR wastewater treatment solutions, we have now entered the phase of strong, profitable growth • Significant traction for Smart Product Solutions (SPS) ex
Slide 6: Fluence: Disrupting Global Water Infrastructure
Fluence: Disrupting Global Water Infrastructure OUR MISSION • We make the world a better place by delivering sustainable water treatment solutions that produce high quality For personal use only water, while saving energy and improving resilience • We are committed to becoming the global leader in d
Slide 7: Fluence: Fast To Deploy, Profitable Water Solutions
Fluence: Fast To Deploy, Profitable Water Solutions For personal use only Revenue Mix Has Shifted To SPS ex-Ivory Coast Transition To Higher Margin Revenue Illustrative 3% 2% 8% 10% Increasing 16% 12% Gross 25% Margin 65% 82% 80% 2021 excl 2017* Future Target Ivory Coast Smart Products Solutions (SP
Slide 8: Q4 and FY2021 Highlights
Q4 and FY2021 Highlights All numbers are subject to audit For personal use only ▪ Strong revenue growth and backlog in Smart Product Solutions (SPS) Revenue Growth1 ▪ 2nd year in a row of positive underlying EBITDA, meeting guidance. $103.2M $89.9M ▪ Q4 2021 revenues1 of $43.5M up 117% on Q3 2021 an
Slide 9: 2021: Strong Growth in Sales of MABR Capacity
2021: Strong Growth in Sales of MABR Capacity All numbers are audited MABR Capacity Sold For personal use only MABR Plants Sold (People served) 957,000 313 56% Growth +67 246 613,000 2020 2021 2020 2021 Installed Added Above left: commissioned plants next to China SE Asia Rest of World Competition:
Slide 10: Q1 2022 Highlights
Q1 2022 Highlights All numbers are unaudited and refer to continuing operations For personal use only Revenue Growth $34.5M • Q1 Revenues: $34.5M - Up 116% on Q1 2021 • SPS revenues: $7.3M - Up 78% on Q1 2021 • Nearly 90% of Q1 SPS revenues from outside China • CES revenues: $25.3M - Up 141% on Q1 2
Slide 11: FY 2022 Guidance
FY 2022 Guidance All numbers are unaudited and refer to continuing operations For personal use only • Full year revenue outlook is $144M, up 40% from $103.2M in FY2021 • $99.3M or 70% of revenue outlook covered by backlog plus Q1 revenues • SPS revenues continue to be forecast at $45M, up 22% from $
Slide 12: Fluence: Company Overview
For personal use only FLUENCE: COMPANY OVERVIEW
Slide 13: Proven & Proprietary Water & Wastewater Treatment Products
Proven & Proprietary Water & Wastewater Treatment Products Smart, automated wastewater treatment and desalination products deploy fast and require minimal maintenance For personal use only Wastewater Treatment Products Key Advantages: Wastewater Treatment Products 319 plants sold • Cost savings of ~
Slide 14: MABR Overview
MABR Overview Our proprietary technology: Membrane Aerated Biofilm Reactor (MABR) For personal use only MABR Development Product Applications SUBRE Upgrade Retrofitting existing WWTPs using MABR SUBRE Plant Increasing Decentralization Using MABR to build new concrete WWTPs Aspiral™ Plant End-to-end
Slide 15: Advantages of MABR
Advantages of MABR MABR enables migration of wastewater treatment from centralized to decentralized, disrupting $150bn market For personal use only Fluence Smart MABR Beats Competing Technologies (1) MABR Competition Fluence vs Competing Technologies Fluence Suez Dupont Capex 17% - 55% lower Scales
Slide 16: Aspiral Overview
Aspiral Overview Our Aspiral product line packages our MABR technology into containerized, modular solutions – 292 sold to date For personal use only Treats wastewater for Treats wastewater for up Treats wastewater for Treats wastewater for up 30-40 people to 300-400 people up to 750-1,000 people to
Slide 17: Case Study: Aspiral Plants Installed in China
Case Study: Aspiral Plants Installed in China China leadership in wastewater treatment decentralization For personal use only Aspiral Micro treats home Aspiral S1 near homes, Buried Aspiral plant, Highway rest stop Aspiral L4 cluster, Liaoning province Hefei, Anhui province Hangzhou, Zhejiang provin
Slide 18: Scaling MABR Technology
Scaling MABR Technology SUBRE applies MABR to larger plants at lower cost and energy use – 27 plants sold to date (60% of installed capacity) For personal use only SUBRE enables MABR for larger plants serving up to 250,000 people SUBRE upgrade provides MABR cost, quality and footprint benefits • Cap
Slide 19: Case Study: SUBRE Plants in Sihanoukville, Cambodia
Case Study: SUBRE Plants in Sihanoukville, Cambodia Country’s first biological wastewater treatment plants support 260,000 people: includes world’s largest MABR plant For personal use only Pool Hotel Operating MABR plant Capacity: 40K people Luxury villas Design for world’s largest MABR plant Operat
Slide 20: Established Operations and Manufacturing Capacity
Established Operations and Manufacturing Capacity Our wholly-owned manufacturing facility in China produces MABR modules, SUBRE and Aspiral products For personal use only MABR Manufacturing Since 2017 Manufacturing Line View • MABR produced at wholly owned plant in Changzhou, Jiangsu Province, China
Slide 21: Our Solutions Enable Decentralized Applications
Our Solutions Enable Decentralized Applications Containerized water treatment products win on speed of deployment, footprint, and energy use: 120 units sold For personal use only NIROBOX SW NIROBOX BW NIROBOX FW Sea Water Brackish Water Fresh water RO desalination RO desalination filtration Three st
Slide 22: Market Shifting to Decentralized Systems
Market Shifting to Decentralized Systems For personal use only Traditional Centralized System Decentralized Systems Network of pre-engineered, small, low cost plants Problems Solutions - Costly to build and operate – 5 to 25 years to deploy ✓ Save up to 90% of piping cost: currently $84bn/year - Inf
Slide 23: Advantages of Decentralized Water & Wastewater Solutions
Advantages of Decentralized Water & Wastewater Solutions Decentralized wastewater treatment is the most cost-effective, energy-efficient, sustainable solution For personal use only Centralized Systems Decentralized Systems Decentralized Urban Water Decentralized advantages: Decentralized advantages
Slide 24: Leading ESG Impact in Water Treatment
Leading ESG Impact in Water Treatment Committed to UN SDGs Sustainability Impact from Fluence’s Installations For personal use only ➢ Fluence technologies are highly energy efficient (MABR, desalination) MABR & NIROBOX and lower CO2 and other harmful contaminants ➢ Many wastewater treatment technolo
Slide 25: Growth Strategy
For personal use only GROWTH STRATEGY
Slide 26: Substantial Global Wastewater Treatment Plant Footprint
Substantial Global Wastewater Treatment Plant Footprint For personal use only TOTAL WWTPs : 391 MABR: 319 OTHER: 72 26
Slide 27: Substantial Global Water Treatment Plant Footprint
Substantial Global Water Treatment Plant Footprint TOTAL PLANTS = 367 NIROBOX: 30 OTHER: 337 (incl. 20 NIROFLEX) For personal use only 27
Slide 28: Strategy Summary
Strategy Summary Upgraded Team Well Positioned To Drive Growth For personal use only • MABR now highly proven to deliver top quality fast with lowest cost and energy use • MABR serves widest market versus competition: from a cluster of homes to city scale • MABR uniquely enables fully decentralized
Slide 29: Americas Strategy
Americas Strategy Targeting US, Caribbean, Neighboring Countries For personal use only Rick Cisterna, Chief Strategy Progress Strategy Officer Leverage existing references throughout 50 water & wastewater plants in N • 30+ years’ water Americas America & ~300 in Latin America industry management Acc
Slide 30: Recurring Revenue Strategy
Recurring Revenue Strategy Wastewater reuse with MABR can halve Now have team, experience and plant density to achieve this overall water costs & deliver 25%+ IRR due For personal use only to much lower costs, energy use Existing Source Target Geography Proof Points Water and Resorts & other US, Car
Slide 31: Asia Strategy
Asia Strategy Build Current Base, Expand Into Selected New Geographies, Pursue Recurring Revenue For personal use only Fluence MABR plants Geography Current Status Next Steps 270 in China China • 5YP drives huge investment in • Put more emphasis on ex- 204 wastewater treatment and reuse China Asia u
Slide 32: World Class Leadership Team
World Class Leadership Team Key Management Board of Directors For personal use only Tom Pokorsky, Francesco Fragasso Richard Irving Paul Donnelly CEO & Managing Director CFO Chairman Lead Independent • 35 years executive • 20 years’ finance • Over 30 years’ tech Director experience in water experien
Slide 33: Strategic Rationale For Fluence
Strategic Rationale For Fluence For personal use only Proven, Proprietary & Advantaged Water Treatment Products High Growth, Large Addressable Global Market Leading ESG Impact in Water Treatment & Desalination Strong Market Penetration & Inflecting Demand From Partners Achieving Strong, Profitable G
Slide 34: Summary Financials
Summary Financials 2022 For personal use only Segment revenue (US$m) 2020 (1) 2021 (1) Guidance Comments Revenue $35.3m in Q1 and backlog of $70.5m over the next 18 months, underpinned by Custom Engineered $53.3 $60.0 ---> Ivory Coast Guidance largely underpinned by Q1 booked revenue ($7.3m) and $25
Slide 35: Historical Cash Flow and Cash Deposits
Historical Cash Flow and Cash Deposits (2) For personal use only US$M $41.4 $31.1 $23.7 $23.5 $19.6 $14.9 $16.3 $9.3 $5.8 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 ($4.8) Cash and Cash equivalent (1) TTM Operating CF (1) Exclude short-term and long-term liquid investments (2) As reported in the quarte
Slide 36: Thank You
Thank You For personal use only For further information, please contact: United States of America Australia Richard Irving Andrew Angus Chairman Investor Relations E: rirving@fluencecorp.com E: andrewangus@overlandadvisers.com.au P:+61 402 823 757 About Fluence Corporation Limited (ASX: FLC) Fluence