Fluence Corporation (ASX: FLC) Market Eye Investment Conference

7 May 2019

Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions

www.fluencecorp.com

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Disclaimer

This presentation has been prepared by Fluence Corporation Limited (ASX: FLC). All currencies quoted as “$” are US$ 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 Directors 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 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 the 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 information 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 without 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 any 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.

2018 consolidated financial figures presented on IFRS basis are audited, and after reclassifications for non-cash foreign currency adjustment relating to

hyperinflation accounting in Argentina (IAS29).

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Executive Summary

• Global water scarcity and contamination is real and growing, with large centralized solutions not always viable

• Decentralized solutions are CapEx efficient and deploy rapidly –US$22B market by 2021(1) (one of the fastest growing segments)

• Fluence is focused on the decentralized market with a full suite of solutions

• 2018 Revenue of US$101.1M (+74% vs. 2017(2)) and Gross Profit US$34.5M(3)

• Backlog at the end of March 2019 of approximately US$267M

• Targeting sustainably positive EBITDA by Q4 2019

• Proven management team and Board of Directors

• Over 7,000 references with installations in more than 70 countries

• Geographically, market segment, and product diversified

(1) Source: Global Water Intelligence, Global Water Market 2017 Volume 1(2) 2017 pro-forma (consolidation of 12 months of RWL water)(3) Q4 and Full Year Audited Gross Profit include a $7.1M benefit of reversal of an onerous contract provision from prior years

0.0

10.0

20.0

30.0

40.0

50.0

Q1 Q2 Q3 Q4

Revenue

2017 2018

-

5.00

10.00

15.00

20.00

Q1 Q2 Q3 Q4

Gross Profit

2017 2018

US$M

US$M

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Complete Suite of Water Solutions

WASTEWATER

TREATMENT

DESALINATION WASTE-TO-ENERGYREUSEWATER TREATMENT

An integrated range of solutions across the complete water cycle

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Fluence Growth Areas:Focus on Decentralized Systems

Centralized Decentralized

vs.

2/3 of CAPEX before the plant (piping, pumping)

Expensive to maintain and upgrade

No flexibility and scalability

Mainly for well developed urban areas

✓ 1/3 of time-to-complete and lower, just-in-time CAPEX

✓ Capturing more value

✓ Scalable and customized to fit current needs

✓ Easy to upgrade and relocate

The

Rationale

Why

Fluence

Wins

Pre-engineered plug and play

solutions

• High margins

• Fast delivery and installation

• Scalability

Proprietary smart technologies

and modular approach

• High quality effluents

• Lower energy and OPEX

• Low maintenance needs

Urgent Need For Affordable, Fast-to-Deploy Solutions

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Fluence Growth Areas

Water and wastewater treatment solutions for customers across the

industrial, commercial and municipal sectors

Smart Products Solutions

Recurring Revenue and

Aftermarket Services

Custom-Engineered Solutions

Aspiral, SUBRE, NIROBOX

BOOT

Complete range of O&M and

Aftermarket offerings

Waste-to-Energy, Large projects, EPC

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Smart Products Solutions

Packaged MABR wastewater treatment solutions

Packaged potable water treatment solutions

MABR wastewater treatment solutions for existing or new plants

Market Drivers:

Stricter regulationsDecentralization, Energy efficiencyIncreased urbanization, New-build

infrastructure

Water shortagesDecentralization, Energy-efficiencyIncreased urbanization, New-build

infrastructure

Stricter regulationsProcess intensification

Outdated infrastructureEnergy efficiency

5,000-200,000 GPD raw municipal sewage

130,000-400,000 GPD Seawater, Fresh water, Brackish water

0.15-25 MGD raw municipal sewage

Market Adoption:

Plants USVI, Stanford (Title 22 validated), Oregon, Texas, Argentina,

Ecuador, China, Philippines, Israel

Plants globally including Egypt, South Africa, Philippines, Caribbean,

Mexico, South America

Ma’ayan Zvi, IsraelSignificant and growing pipeline

Commercial launch Q1 2019

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Additional Aspiral™ plants

in Hebei and Zhejiang

Provinces

Sept 2017

Nov 2017

March 2018

May 2018

June 2018

July 2018

Oct 2018

Nov 2018

Dec 2018

Feb 2019

Established local manufacturing

Reference sites in multiple provinces

Experienced local sales teams

Network of strategic partners

Smart Products Solutions: Accelerating Activity in China

26 Partnerships covering 16 Provinces and 26 Installations

First Aspiral™ plant in Henan

Province via partner QSY

Repeat order through Jinzi for the Local Government

of Zhenfeng County

First Aspiral™ Plant in Hunan

Provincevia partner Hunan

Kaitian

Jinzi secures third contract

in Guizhou Province

Exclusive partnership

agreement with ITEST in Hubei

Province

Bulk order of 35 Aspiral™ units under exclusive partnership agreement with ITEST

in Hubei Province

First production of Aspiral™ modules in

China

Framework agreement for 6

Aspiral™ units via partner Jinzi

First Aspiral™ Plant in Beijing

area via partner Glory Land

Tripartite framework

agreement for Aspiral™ in 3

districts in Yiyang City

First sale via partner Hubei

ITEST. Shipped, delivered and installed in 6

weeks

Sale of 6 Aspiral™ units

via partner Zhongzi Huazein Jilin Province

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Recurring Revenue: Build Own Operate and Transfer (BOOT)

Wastewater TreatmentWater Treatment

Complete Water and Wastewater Solutions Recurring High Margin Revenue

Capex

Multi-year

Recurring Revenue

• Fluence’s Aspiral™ and NIROBOX™ products are

ideal for BOOT projects

→ Footprint, energy efficiency, reliability, low

maintenance and quality output

→ Using in-house proprietary technologies

enhances margin

• Uses Fluence’s equity to inject its own equipment

• Ability to offer complete water/wastewater reuse

solutions

• BOOT agreements offer lucrative, recurring

revenue for many years with higher valuations

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Recurring Revenue: BOOT Financing Facility in Place

• Combination of equity and debt:

– 70% non-recourse financing

– 30% equity, and optional minority

partners

– Fluence as EPC and O&M Contractor

• Secured a US$50M non-recourse debt

facility from Generate Capital in 2018

– First drawdown of $2m in March 2019

• Secured backlog of US$14.7 million of run-

rate annual billings after construction of 3

projects is completed

Project Company

(SPV)

Equity Partner

(Fluence)

Client

Operation and

Maintenance

(Fluence)

EPC

(Fluence + contractors)

Lender

(finance partner + Fluence)

EquityDividend

Payments

Water

Principal & interest

Loan

Payments

ServicesPayments

Construction

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Custom-Engineered Solutions: Landmark Project Win in Ivory Coast• €165M commercial agreement with Federal

Government of Ivory Coast, signed on February 26th, 2019

• Turnkey supply of custom-engineered solution for 150,000 m3/day surface-water treatment plant

• The plant will treat freshwater from the naturally contaminated Lagune Aghien and provide potable water to the city of Abidjan (4.7M population)

• Fluence’s scope: water intake and treatment, bulk water piping, water towers and infrastructure

• Project finance guaranteed through Export Credit Agency (ASHRA, Israel) and financed through Israel Discount Bank

• Financial Close and project commencement expected later 2019

• Contract revenue expectations: US$20M in 2019, US$80M in 2020, remainder in 2021; all subject to achievement of Financial Close by Q3 2019.

Water from Lagune Aghien will be treated to supply potable water for Abidjan

CAD depiction of plant location and layout

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Fluence Growth Areas: Targeted Revenue Growth

Custom-Engineered SolutionsLarge projectsWastewater-to-energyWater purification

Smart Products Solutions Aspiral, NIROBOX, SUBRE2018: $22M2019 target: $44M

Recurring Revenue BOOT projects, Aftermarket

2018 Future Target

Revenue Mix

2017

Shift towards higher margin proprietary solutions and recurring revenues

…

$58M

$101M

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Fluence Growth Areas: Target Growing Gross Margin

IncreasingGross Margin

LargeProject

SmartPackaged

Plant

ProprietarySmart Packaged

Plant

ProprietaryProduct

>EUR165M (Ivory Coast

project)

NIROBOX™ Aspiral™ SUBREExample:

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Sustained Year Over Year Growth of Key Metrics

($ millions) 2017(1) 2018(2)

Revenue 58.0 101.1

Gross Profit Margin 13.0 34.5

Gross Profit Margin 22% 34%

EBITDA -35.7 -8.1

(1) 2017 pro-forma (consolidation of 12 months of RWL water)(2) Q4 and Full Year Audited Gross Profit include a $7.1M benefit of reversal of an onerous contract provision from prior years

• Revenue growth 74%, all organic

• >200% increase in Gross Profit

• Reduced G&A by 30%

• Virtually zero debt on the balance sheet

• Cash Balance end of Q1 2019: $23.4M

-

2.00

4.00

6.00

8.00

10.00

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16.00

18.00

Q1 Q2 Q3 Q4

Gross Profit

2017 2018

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Q1 Q2 Q3 Q4

Revenue

2017 2018

US$M

US$M

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Key Priorities 2019

• 100% Year over year growth of

Smart Products from $22M to $44M

• Increase backlog of projects with

Recurring Revenue

• Achieve sustainable positive

EBITDA by Q4 2019SUBRE installation, Ma’ayan Zvi, Israel

Fluence MABR manufacturing plant, Changzhou, China

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Corporate Overview

Capital Structure as at 15 April 2019 ASX: FLC

Ordinary Shares on Issue 537.4M

Options on issue 41.6M

Share Price A$0.54

Undiluted Market Capitalization A$290.2M

Cash at 31 December 2018 $38.7M

External debt (except non-recourse project debt)

$0.8M

Liquidity (average shares traded per day for the 3 months to 15 April 2019)

707,057

Top Holders ASX: FLC 3 April 2019 Shares (M) % of FLC

RSL Investments Corporation and RSL Capital, LLC

157.2 29.3

Watermark Services, LLC 47.8 8.9

Pond Ventures Nominees and Richard Irving

37.3 7.1

ESOP Management Trust 11.7 2.2

Other top 20 131.9 24.2

Top 20 total 385.9 71.7

Notes:• Over 58% of Fluence shares held by US entities• Generate Capital $50M non-recourse debt facility

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KEY CONTACTSKey Contacts

Gary DvorchakThe Blueshirt Group

+1 323 240 5796+86 138 1079 1480

gary@blueshirtgroup.com

Ronn BechlerMarket Eye

+61 400 009 774Ronn.Bechler@marketeye.com.au

Adam HinckleyVP Investor Relations

+1 914 998 3304ahinckley@fluencecorp.com