Fluence : Investor Presentation

r personal use only

Investor Presentation

January 2022

Sustainable Decentralized Water Solutions

Disclaimer

onlyDirectors and management. Although the Company believes that the expectations reflected in and the assumptions underlying the forward looking statements included in this presentation are reasonable, readers are cautioned not to place undue reliance on them, as the Company cannot give any assurance that the results, performance or achievements covered by the forward-looking statements will actually occur.

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', 'believes', 'estimates', 'targets', 'expects', or 'intends' and other

similar words that involve risks and uncertainties. These statements are based on an assessment of past and present economic and operating conditions, and on a number of

assumptions regarding future events and actions that, as at the date of this presentation, are expected to take place. Such forward-looking statements are not guarantees of

future performance and involve known and unknown risks, uncertainties, assumptions and other important factors many of which are beyond the control of the Company, its

useThis 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 purchase any shares in FLC. No agreement to subscribe for securities in FLC will be entered into on the basis of this presentation or any information, opinions or

conclusions expressed in the course of this presentation. This presentation is not a prospectus, product disclosure document or other offering document under Australian law

or under the law of any other jurisdiction. It has been prepared for informational purposes only and does not constitute an offer or invitation to apply for any securities, including in any jurisdiction where, or to any person to whom, such an offer or invitation would be unlawful.

To the maximum extent permitted by law, the Company and its professional advisors and their related bodies corporate, affiliates and each of their respective directors,

officers, management, employees, advisers and agents and any other person involved in the preparation of this presentation disclaim all liability and responsibility (including personalwithout limitation and liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use of or reliance on anything

contained in, or omitted from, this presentation. Neither the Company nor its advisors have any responsibility or obligation to update this presentation or inform the reader of ny matter arising or coming to their notice after the date of this presentation document which may affect any matter referred to in the presentation. Readers should make their own independent assessment of the information and take their own independent professional advice in relation to the information and any proposed action to be taken on the basis of the information.

2020 consolidated financial figures are presented on IFRS-basis and are audited. 2021 financial figures are subject to audit.

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Fluence: Disrupting Global Water Infrastructure

only	OUR MISSION
• 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 solutions
An undeniable market growing opportunity…	…captured by the leading player in the space
use	$650 Billion Global Water
Pure-play water treatment
		Market				Proprietary technology
			company
$150 Billion		$118 Billion
Addressable
Wastewater Market	Addressable Water
personalr			Treatment Market
	… and growing …		Deployed fast and easily -			Lowest Total Cost of
			just-in-time infrastructure			Ownership
	9.7 billion		75%	80%
	estimated global		of population facing	wastewater
	population by 2050		water shortages	released without
			Annual CO2	treatment
	Aging water		Decentralizing	300+ plants sold			Attractive valuation
	reduction by up
	infrastructure	infrastructure
	to 150MM tons

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Fluence: Fast To Deploy, Profitable Water

Solutions

only								Transition To Higher Margin Revenue
Revenue Mix Has Shifted To SPS ex-Ivory Coast		Illustrative
			3%
			2%	8%	10%						Increasing
			12%
			16%	25%						Gross
						65%					Margin
use			82%
		80%
		2017*	2021 excl	Future Target
		Ivory Coast
			Smart Products Solutions (SPS)
			Recurring Revenue (RR)				Large	Smart	Proprietary	Proprietary	Recurring
personalr				Custom Engineered Solutions			Projects	Products	Smart Products	Smart	Revenue
						Solutions	Solutions	Products
* 12 months pro-forma
			~$190M NIROBOX™ Aspiral™	SUBRE	BOOT,
	Strategic Focus			Examples: Ivory Coast				O&M
				Project
	§		Sell MABR in China and SE Asia		ü	Only global, pure play water and wastewater treatment
	§		Sell Nirobox in Middle East and SE Asia		company delivering standardized solutions to a growing,
			global, decentralised market
	§		Seek more recurring revenue via water	ü	Fast to deploy, lower cost, lower risk way to meet tightening
				as a service in US and Caribbean			regulatory standards
	§		Timely execution of Ivory Coast project	ü	Maximize profitable growth by targeting highest growth
			markets
				Improve operating efficiencies
	§			ü	Strong team and balance sheet		4

Q4 and FY2021 Highlights

All numbers are subject to audit

§	Strong revenue growth and backlog in Smart Product Solutions (SPS) leads	Revenue Growth1
		to 2nd year in a row of positive underlying EBITDA, meeting guidance.					$103.2M
§	Q4 2021 revenues1 of $43.5M up 117% on Q3 2021 and 113% on Q4 2020
$87.8M
§	FY2021 revenue1 of $103.2M grew by 18% over FY2020
only§	Fluence meets guidance for SPS revenue and positive underlying EBITDA -			growth
		18%SPS	growth
use	FY 2021 SPS revenues $39.6M (including Italy) up 23% from FY 2020;
underlying EBITDA2 positive $1.0M in FY2021	20%
§	SPS backlog entering 2022 is up 65% versus 2021
§	MABR sold capacity increased 56% - 313 plants sold to date with capacity
		for almost 1 million people
§	MABR capacity sold in FY2021 ex-China exceeded in-China for first time
§	8 Nirobox units (6 plants) sold in FY2021, up from only 1 Nirobox sold in
personalr	FY2020		FY2020		FY2021
§	Cost Out Improvement - full year operating expenses down 8% versus 2020.
§	Cashflow positive $5.2M in Q4 2021 and negative $4.8M for FY 2021			Smart Products Solutions (SPS)
§	Net Cash Position - $41.4M + $23.0M in short and long-term liquid			Recurring Revenue (RR)
		investments.			Custom Engineered Solutions
		FY2022 guidance: SPS sales from continuing businesses +23% to $45M, EBITDA $3M
		(assumes continued COVID-19 headwinds throughout FY2022)
	1From continuing operations
	2 Underlying EBITDA = Statutory EBITDA excluding one-off items					5
	All numbers in presentation are USD unless otherwise stated.