WWW.OVIVOWATER.COM 1
WORLDWIDE EXPERTS
IN WATER TREATMENT
TSX: OVI.A and OVI.B
INVESTOR PRESENTATION
MARCH 2016
WWW.OVIVOWATER.COM 2
Forward-Looking Statements
Certain information and statements contained in this presentation regarding management’s objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation.
Management of Ovivo Inc. would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that the actual and future results of Ovivo could differ considerably from those stated.
Additional information about the risks and uncertainties that could cause actual results to differ from expectations is provided in Ovivo’s Management’s Reports for the fiscal year ended March 31, 2015 and for the quarter ended December 31st, 2015.
All amounts are in Canadian dollars. The “M$” symbol stands for “million dollars”.
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We are
• A Pure Water Treatment Company
• A Technology Provider – We design and sell equipment,
systems and parts & services – We take no construction risk
• Experts having Proprietary Products and System Integration Knowhow to treat the most challenging water in the world
• A powerful Global Brand with renowned Trademarks and a huge Installed Base of equipment around the world
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Our Financials at a Glance
• Ovivo Inc. shares are traded on the Toronto Stock Exchange
• Ticker Symbols: OVI.A and OVI.B
• Share Price : $2.18
• Market Capitalization: $96 M
• Net Debt: $14 M
• Enterprise Value: $110 M
• Key Financial Metrics
• LTM Revenues: $319 M
• LTM Adjusted EBITDA: $15 M
• Backlog: $283 M
• Revenue guidance for FY 2016 : $320 M *
* Fiscal Year-end is on March 31st, 2016 Share Price and Market Capitalization as at March 1st, 2016 / Balance Sheet and Backlog data as at Dec. 31, 2015 / Income Statement data are LTM ending Dec. 31, 2015
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We Regrouped the Strongest Experts and Brands in the Industry
2002 Acquisition EIMCO Municipal Wastewater Strong presence & reputation in North America
2005 Acquisition BRACKETT GREEN Headworks, Industrial and Municipal Wastewater. Strong presence in Europe, North America, Middle-East, Asia
2006 Acquisition ENVIROQUIP Municipal Wastewater, MBRs Strong presence in USA
1991 Acquisition DORR-OLIVER Industrial Wastewater
2004 Creation Water Treatment Group
2009 Acquisition CHRIST WATER TECHNOLOGY Pure and UltraPure Water Strong presence in Europe & Asia, Industrial Markets
2005 Acquisition Jones + Attwood Headworks, Municipal Waste Water with presence in Europe and North America
2010 Creation of OVIVO Umbrella Brand
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We Built an Integrated Global Platform
North America
Rest of the World
Europe
Canada
United States
United Kingdom
France
Austria
Singapore
India China
United Arab Emirates
Switzerland
Germany
Netherlands
Australia
54% 31%
15%
Revenue Geographic Breakdown*
Taiwan
* Last Twelve Month as at December 31, 2015 based on destination address
Knowledge & Service centers Service Centers
Hungary
Employees 800
Head Office in Montreal, Canada
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We have Clear Growth Objectives
Current Fiscal Year
FY 2016 Revenues Guidance: $320 M
LTM Adjusted EBITDA: $15.2 M *
Low Net Debt: $14.4 M *
Our Objectives for
FY 2020 $600 M in Revenues
including $175 M through Acquisitions
6% Annual Organic Growth
Improve EBITDA Margin to reach 8%+
* as at Dec. 31, 2015
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Our Positive Outlook is Supported by Strong Macro Drivers
Growing world population (Support the growth from 7.3 billion human beings on earth today to close to 10 billion in 2050)
Urbanization and improving living conditions in developing countries will increase water consumption (agriculture, domestic, industry)
Aging infrastructures in developed countries ( 1 trillion US$ of investments will be required in USA in the next 25 years)
Increasingly strict regulation for water and discharge of wastewater
Climate change-induced water scarcity and floods will increase the need for sustainable water solutions, such as reuse and recycling
Ovivo’s Addressed Market
$60 B PER YEAR
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We Do Business in High Growth Markets
MUNICIPAL INFRASTRUCTURE
North America
ELECTRONICS (Microchips, LCD,
Circuit board)
ENERGY (Power, Petrochemicals,
Oil & Gas, LNG)
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Our Business Model
is Strong
Project Identification
Business Development and Sale to end-users, EPC Contractors and Consultants
Design and Engineering
Meeting our Clients’ Specifications
Procurement
Manufacturing Outsourcing
Project Management Equipment's Delivery on Site
Installation Supervision
Start-up & Commissioning
Customer Service
Maintenance, Operations, Training, Replacement (P&S)
Total Life Cycle
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Our customers are Blue Chips
CONSULTANTS END-USERS
Municipalities
Energy
Electronics
EPC CONTRACTORS
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Intake Filtration Projects
Ras Laffan, ME
One of the largest Industrial intake facility in the world at 350 m3/sec.
Lingo Ao Nuclear, China
Four units at 60 ft. diam. with total flow at 100 m3/sec
Asaluyah Petrochemical, ME
Six units at 60 ft. diam. With total flow at 120 m3/sec
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Pure & Ultrapure Water Production Projects
Saudi Arabia Rabigh Project
Six Conesep® Condensate Polishing units of each at 2500 m3/hr each supplied to Doosan for Saudi Arabia Rabigh project
South Africa Medupi project
9 banks of first & second pass Reverse Osmosis Systems for Boiler Feed with total of 1200 m3/hr at Medupi project
GlobalFoundries Fab 8, NY
Ultrapure water treatment system for 1200 gpm of ultrapure water supplied to a state-of-the-art 300mm wafer foundry in Malta, NY
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Wastewater Treatment Projects
Canton, OH
The largest MBR installation in the USA. Upgrade its water reclamation facility from 39 MGD to 88 MGD.
GlobalFoundries Fab 8, NY
Wastewater treatment system for industrial and hydrofluoric waste from a state-of-the-art 300mm wafer foundry
Grand Turk, Cozumel & Dominican Republic
Ovivo supplied 3 microBLOX™ Systems for Carnival Corp. Cruise Centers partnering with them to pursue Carnival’s corporate dedication to the environment.
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Our Operating Performance is Improving Quarterly Results Evolution
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Our Parts and Services Business is a Profit Driver
• Perfectly complements our new equipment technology solutions’ offering
• Recurring revenues / attractive profit margins
• Significant investments in resources and electronic tools since FY 2013
• Capitalizing on our large installed base of equipment and heritage brands
• Over 50% increase in backlog year-over-year
• Revenue growth of over 50% since FY 2013
56
67
84 93
0
10
20
30
40
50
60
70
80
90
100
FY 2013 FY 2014 FY 2015 LTM Q3-16
Revenues from Parts & Services ($M)
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Our Balance Sheet is Solid Financial Position as at December 31, 2015
• Total net debt of $14.4 M is 0.95x LTM EBITDA
• $40 M invested in net assets related to discontinued activities as at March 31, 2015: – $12 M already collected during the first nine months of FY16 and $28 M to be collected over the next 2 to 3 years
The monetization of these non-core assets will help finance our growth
$133.0 M
$14.4 M
-10 10 30 50 70 90 110 130 150
Shareholders' Equity
Total Net Debt
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We have Good Financial Flexibility Financial Position as at December 31, 2015
51
3
29
57
0 10 20 30 40 50 60 70 80 90
For letters of credit issuances
For general corporate purposes
Credit Facilities ($M)
Used Available
60
80
• $25 M FTQ non-convertible debenture extended to November 2018
• Revolving credit facilities committed until November 2017
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Looking Ahead
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We have Strong Fundamentals
Acquisition and Organic Growth Opportunities
Experienced Management Team
Low Capex Requirements
Huge Installed Base = Growing P&S Recurring Revenues
Low Net Debt = Positioned for Growth
More than 150 years of Expertise and References to treat the Most Challenging Water
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Looking Ahead
Our FY 2017 to FY 2020 Strategic Plan
Continue Expanding our Expertise in our Core Markets
Continue Growing our P&S Business and our Installed Base of Equipment
Parts & Services
Energy Electronics Municipal
Add new Breakthrough Technologies to our Platform
Invest 1% to 2% of total Revenues in
Product Innovation
Reuse & Recycling
Resource recovery
$ R&D
& Innovation
$600 M of Revenues including $175 M through Acquisitions
6% Organic Growth
Improve EBITDA Margin
to reach 8%+
Growth Objectives for FY 2020
22
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In Summary
Why invest in Ovivo?
1) Unique Pure Play in Water Treatment
2) Refocus and Turnaround Completed
3) Global Platform to Introduce new Technologies
4) Favorable Macro Drivers for the Future
5) Financial Flexibility to Finance our Growth Plan
6) Highly Fragmented Market (M&A Opportunities)
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Thank you!
TSX: OVI.A and OVI.B