Cadiz, Inc. · NASDAQ:CDZI
Cadiz — B. Riley Securities Investor Conference 2023
22 slides from Cadiz's conference presentation, May 24, 2023
Slide 1: Clean Water Solutions
Clean Water Solutions NASDAQ: CDZI
Slide 2: Safe Harbor Agreement
Safe Harbor Agreement During the course of this presentation, we may make forward-looking statements. Any statement that is not a historical fact is a forward-looking statement. Forward-looking statements refer to expectations, projections or other characterizations of future events or circumstances
Slide 3: About Cadiz
About Cadiz New water supply • Largest private landowner in Mojave Desert — 45,000 acres of land with water rights • < 30+ million acre-feet of water in aquifer — 2X the amount of water in Lake Mead • Permits to withdraw 2.5 million acre-feet of groundwater over 50 years Groundwater storage • 1 mill
Slide 4: Value proposition
Value proposition Cash flows from water projects Annuity value Recurring cashflow stream Projected $1.7B net present value of water • $50 M+ of projected annual cash flow from leases of water delivery, storage cash flows over 50 years conservation and delivery infrastructure upon full implementation
Slide 5: Clean Water Solutions
Bloomberg The End of Snow Threatens to Upend — yore 76 Million American Lives ope Me We ee, ad : Clean'Water Sotuti ng ye -
Slide 6: Extreme is the new normal
Extreme is the new normal Western megadrought is worst in 1,200 years, California has so much snow that flood intensified by climate change, study finds danger will last through the year Clean Water Solutions 6
Slide 7: Extreme weather makes water supply unpredictable
Extreme weather makes water supply unpredictable Variability in statewide annual precipitation (1895 – 2021) Clean Water Solutions 7
Slide 8: California's precipitation paradox — water everywhere but nowhere to store it
California’s precipitation paradox — water everywhere but nowhere to store it Snowpack 30% Reservoirs 60% Groundwater 40% Snowpack has declined at Colorado River crisis so bad, Ground zero: rain brings 93 percent of the sites Lakes Mead and Powell little relief to California’s measured from 1955 to
Slide 9: Extreme rain/drought cycles result in long-term groundwater depletion
Extreme rain/drought cycles result in long-term groundwater depletion Clean Water Solutions 9
Slide 10: Clean Water Solutions
~ Che New York Cimes : NEW ORLEANS IS INUNDATED AS 2 LEVEES FAIL; MUCH OF GULF COAST IS CRIPPLED; TOLL RISES CITY Is OFF LiTs Pentagon doing io the PYintoss & THE SACRA §160,000 evacuate as Oroville Dam spillway threatens to collapse oe eee NESE NA KQED Breached Levee Floods Pajaro River Valley, Eng
Slide 11: "We've lost the aqueduct."
“We’ve lost the aqueduct.” Clean Water Solutions 11
Slide 12: Water quality — a growing problem
Water quality — a growing problem Total count of systems: 3,272 Total Population: 39,809,527 SAFER Status: ◼ Failing ◼ At-Risk ◼ Potentially At-Risk ◼ Not At-Risk ◼ Not Assessed Source: California State Water Resources Control Board’s Drinking Water Needs Assessment Dashboard * Community Water Syste
Slide 13: With California expected to lose 10% of its water within 20 years
With California expected to lose 10% California River crisis is so bad, lakes of its water within 20 years, Gov. Mead and Powell are unlikely to refill Newsom calls for urgent action in our lifetimes Clean Water Solutions 13
Slide 14: New reality
New reality Climate change and water: • Unpredictable water supply: extreme drought, atmospheric rivers, groundwater depletion. • Inadequate storage: existing reservoirs designed for predictable snowmelt and flood control cannot handle extreme swings in supply — limited ability to capture and store
Slide 15: Cadiz: new solutions
Cadiz: new solutions 50,000 acre-feet per year of 1 million acre-feet underground storage sustainable, reliable and affordable Supply Storage capacity. Largest new groundwater bank freshwater water supply in Southern California. Clean Water The most cost-effective and Pipeline infrastructure to vers
Slide 16: Closed basin watershed system
Closed basin watershed system All water flows to the lowest elevation and evaporates Clean Water Solutions 16
Slide 17: Storage: 1 million acre-feet — no evaporative losses
Storage: 1 million acre-feet — no evaporative losses Underground storage bank to store surplus water in wet years and deliver reliable supply during dry years. Clean Water Solutions 17
Slide 18: Mountain
Mountain Volley City Power Plant Road alway += Intl Border == State Border County Border ae Angeles Tunnel Pacific Ocean ‘Angeles Tunnel ‘Al American Pipel Mojave Pipelir Los Angeles Aqueduct ee Southern Pipeline iNew Constiletion) ; All American Pipeline ace hb Ze
Slide 19: Treatment
Treatment ATEC, A Cadiz Solution, is a wholly- owned subsidiary that provides: • The most effective, affordable, and versatile water treatment technology in the Western United States • Over 400 systems installed to date. • 60 MGD Central Utah Water District • 100 GPD Community Water Systems • Nitrat
Slide 20: Water prices 1978 – 2022
Water prices 1978 – 2022 Regional Treated Water Rate CA Spot Market Pricing 2019 – 2022 $/AF 1978 – 2022 $1,400 $1,200 $1,000 $1,400 $800 $600 $1,200 $400 $1,000 $200 $- 9/4/2019 9/4/2020 9/4/2021 9/4/2022 $800 (Source: Nasdaq-Veles California Water Index (NQH2O) $600 $400 New Supply/Storage Pricing
Slide 21: Capital structure
Capital structure ($ in millions) As of 3/31/2023 Cash and cash equivalents(1) $26.3 Restricted cash(2) $2.5 Total cash $28.8 Senior secured term loan $35.0 Series A perpetual preferred stock $57.5 Common shares outstanding 66.5M (1) Balance as of March 31, 2023, Form 10Q Filing. (2) Cash reserved t
Slide 22: Contact Information
Contact Information Investor Relations: Online: Social: Courtney Degener www.cadizinc.com Twitter – CadizWater 213-271-1603 Facebook – Cadiz Water Project cdegener@cadizinc.com www.cadizwaterproject.com Instagram – CadizInc 22