Slide 1: Investor Presentation May 2021
For personal use only Investor Presentation May 2021 Sustainable 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: Fluence: Disrupting Global Water Infrastructure
Fluence: Disrupting Global Water Infrastructure For personal use only An undeniable market growing opportunity… …captured by the leading player in the space $650 Billion Global Pure-play water Water Market treatment company Proprietary technology $150 Billion Addressable $118 Billion Wastewater Mark
Slide 4: Our Mission
Our Mission For personal use only We make the world a better place by delivering sustainable water treatment solutions that produce high quality water, while saving energy and improving resilience. We are committed to becoming the global leader in decentralized water and wastewater treatment solutio
Slide 5: Achieved 2020 Guidance With First Underlying EBITDA Positive Year
Achieved 2020 Guidance With First Underlying EBITDA Positive Year For personal use only Revenue Growth $97.4M Underlying EBITDA** Improvement o-Y Y- th ($23.6M) $2.3M % 62 row G 2019 $60.2M 2019 2020 Ivory Coast: $36.5M 2019 2020 Operating Expenses Reduction* $44.6M ü Large installed base of proven,
Slide 6: Fluence: Fast To Deploy, Profitable Water Solutions
Fluence: Fast To Deploy, Profitable Water Solutions For personal use only Revenue Mix Transition To Higher Margin Revenue Illustrative 3% 2% 10% Increasing 16% 33% Gross 54% 25% Margin 65% 82% 13% 2020 excl 2017* Future Target Ivory Coast Smart Products Solutions (SPS) Recurring Revenue (RR) Large S
Slide 7: Investment Highlights
Investment Highlights For personal use only 1 Proven, Proprietary & Advantaged Water Treatment Products 2 High Growth Market Potential 3 Leading ESG Impact in Water Treatment & Desalination 4 Strong Market Penetration & Inflecting Demand From Partners 5 World Class Leadership Team 7
Slide 8: Proven, Proprietary & Advantaged Water Treatment Products
1 Proven, Proprietary & Advantaged Water 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 250+ plants sold • Cost savings of
Slide 9: MABR enables migration to decentralized treatment, disrupting $150B market
1 Proven, Proprietary & Advantaged Water Treatment Products MABR enables migration of wastewater treatment from centralized to decentralized, disrupting $150B market For personal use only Fluence Smart MABR Beats Competing Technologies1 MABR Competitors Fluence vs Competing Technologies Fluence Suez
Slide 10: Our proprietary technology: Membrane Aerated Biofilm Reactor (MABR)
1 Proven, Proprietary & Advantaged Water Treatment Products 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
Slide 11: Aspiral product line packages MABR into containerized solutions
1 Proven, Proprietary & Advantaged Water Treatment Products Our Aspiral product line packages our MABR technology into containerized, modular solutions For personal use only Treats up to 5 m3/d Treats up to 50 m3/d Treats up to 115 m3/d Treats up to 300 m3/d of municipal wastewater of municipal wast
Slide 12: Containerized desalination and water treatment products
1 Proven, Proprietary & Advantaged Water Treatment Products Our containerized desalination and water treatment products win on speed of deployment, footprint, and energy use For personal use only NIROBOX SW NIROBOX BW NIROBOX FW Sea Water Brackish Water Fresh water RO desalination RO desalination fi
Slide 13: Wholly-owned manufacturing facility in China
1 Proven, Proprietary & Advantaged Water Treatment Products 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 Provi
Slide 14: Water-as-a-service platform generating 25%+ IRRs
1 Proven, Proprietary & Advantaged Water Treatment Products Our pre-engineered products de-risk expansion into water-as-a-service platform generating 25%+ IRRs For personal use only Complete Water and Wastewater Solutions Recurring High Margin Revenue Wastewater reuse saves cost of sourcing water
Slide 15: Massive, growing, and de-centralizing market opportunities
2 High Growth Market Potential Massive, growing, and de-centralizing market opportunities For personal use only Wastewater Treatment Water Treatment Growing Demand $650 Billion Global Water Market $650 Billion Global Water Market 9.7 billion estimated global $150 Billion population by 2050 Addressab
Slide 16: Accelerating shift to decentralized systems
2 High Growth Market Potential Accelerating shift 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 – years to deploy • Save up to 90% of piping cost:
Slide 17: Decentralized wastewater treatment is the most cost-effective solution
2 High Growth Market Potential 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 : • Decentralized saves 9
Slide 18: China's 14th Five-Year Plan anticipates $50 billion investment
2 High Growth Market Potential China’s 14th Five-Year Plan anticipates $50 billion investment in wastewater treatment through 2025 For personal use only • High standards. Aspiral™ and SUBRE meet required 4 Chinese wastewater treatment standards for non- Key volume partnerships potable reuse at the l
Slide 19: Committed to sustainable water solutions
3 Leading ESG Impact in Access to Water Committed to sustainable water solutions 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
Slide 20: Ivory Coast Project: Major Custom Engineered Project
4 Ivory Coast Project: Major Custom Engineered Project For personal use only • Fluence awarded project in 2019 and construction commenced in January 2021 • 150,000 m3/day water treatment plant near Abidjan by 1Q2023 – water for 1 million+ people • $190M project with $60M collected to date, and provi
Slide 21: World Class Leadership Team
5 World Class Leadership Team For personal use only Key Management Board of Directors Richard Irving Francesco Fragasso Richard Irving, Chairman & CEO Chairman & CEO CFO • Over 30 years’ tech • 20 years’ finance and venture capital experience in experience renewable energy Paul Donnelly Samantha Tou
Slide 22: Q1 2021 Highlights
Q1 2021 Highlights As of March 31, 2021 unaudited For personal use only ü New orders $13.3M : +11% vs Q4 2020 and +6% versus Q1 2020 ü SPS new orders $7.5M, +36% vs Q4 2020 including $5.0M from China bookings ü Revenue $18.2M with SPS $3.7M +28% versus Q1 2020, and China +38% Q1 2020, showing strong
Slide 23: Progress on Strategic Priorities
Progress on Strategic Priorities For personal use only Priority Progress Sign key new volume strategic Three Gorges order for 29 Aspirals partnerships in China and Middle East Repeat order from China Rail Secure significant new contract wins in focus markets: US, China, SE Asia, As above plus key SP
Slide 24: Conclusion
Conclusion For personal use only 1 Proven, Proprietary & Advantaged Water Treatment Products 2 High Growth Market Potential 3 Leading ESG Impact in Water Treatment & Desalination 4 Strong Market Penetration & Inflecting Demand From Partners 5 World Class Leadership Team 24
Slide 25: Case Studies
For personal use only CASE STUDIES
Slide 26: 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, Aspiral plant, Highway rest stop Aspiral L4 cluster, Liaoning province Hefei, Anhui province Tonglu, Zhejiang province plant,
Slide 27: Case Study: SUBRE Plants in Sihanoukville, Cambodia
Case Study: SUBRE Plants in Sihanoukville, Cambodia Country’s first wastewater treatment plant supports 100,000 people For personal use only Artist concept of main plant installed in riverbed Construction site on April 2, 2021; commissioning in May 2021 Second plant located next to hotel SUBRE modul