FLUENCE CORPORATION LIMITED — AGM Information 2021

May 26, 2021

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www.fluencecorp.com

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Annual General Meeting Company Update

Fluence Corporation (ASX: FLC) May 27 2021

Disclaimer

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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 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 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 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.

2019 and 2020 consolidated financial figures presented on IFRS basis are audited.

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Introduction

Paul Donnelly Independent Lead Director Chair of the AGM

Introduction

Richard Irving Chairman and Chief Executive Officer

Agenda

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Opening Chairman & CEO Presentation – Business Update Shareholder Questions & Answers Voting Procedure and Opening of Poll Formal Business Closing of Poll and Conclusion

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Chairman & CEO Presentation

Achieved 2020 SPS Guidance With First Underlying EBITDA Positive Year

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Revenue Growth
$97.4M
$60.2M
Ivory
Coast:
$36.5M
2019 2020
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Underlying EBITDA Improvement**

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($23.6M) $2.3M
2019
2019 2020
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Operating Expenses Reduction*

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$44.6M
$40.1M
-10%
$28.6M
-28%
2018 2019 2020
R&D SG&A
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• Achieved underlying EBITDA positive year

• Continued growth despite strong COVID-19 –

• headwinds in 2020 SPS achieved guidance with 38% MABR sales growth

• • Continued improvement in operating efficiency

  • Dec 31 2020 backlog: $226M (Ivory Coast $158M) + significant existing partner pipeline

• - Operating expenses including depreciation and amortization

• ** - Underlying EBITDA = EBITDA excluding one-off items All numbers in presentation are USD unless otherwise stated.

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Continued Market Growth In Asia

China’s 14th Five-Year Plan (2021-2025) anticipates $50 billion investment in wastewater treatment

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Key volume partnerships
China Three Gorges 420K
I-Test (66K m [3/] day) People
Kaitian (40K m [3/] day) served
Panjin (53K m [3/] day*)
14
Provinces with
installations
61 19
Provinces with
FTEs
partnerships
2021
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• High standards. Aspiral™and SUBRE meet required Chinese wastewater treatment standards for nonpotable reuse at the lowest cost

• Key partners. Established key partnerships securing bulk orders, accelerating the sales ramp

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Fluence MABR plants in China (cumulative)
Fluence MABR plants in China 223
204
112
22
2
2017 2018 2019 2020 '21 YTD
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• Based on signed agreements

** Based on China government specification of 120l/day/person

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Key Strategic Priorities

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• Seek more volume customers and partners in all key regions: China, SE Asia, N America, Middle East

• Continue to expand existing partner relationships

• Strongly develop water as a service in North America

• Continue to successfully execute the Ivory Coast Project

• Achieve 2021 guidance: SPS $35 – 50M, positive full-year EBITDA

• Achieve target pro forma business model as soon as possible including 35% gross margin, 20% operating expenses, 15% EBITDA

• Maximize shareholder returns

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Fluence: Fast To Deploy, Profitable Water Solutions

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Migrate Revenue Mix Away From Custom Plants

Transition To Higher Margin Revenue

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Illustrative
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2% 10%
33%
16%
25%
54%
65%
82%
13%
2020 excl
2017 Future Target
Ivory Coast
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Smart Products Solutions (SPS) Recurring Revenue (RR) Custom Engineered Solutions

Examples:

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Large Smart Proprietary Proprietary Recurring Projects Products Smart Products Smart Revenue Solutions Solutions Products ~$190M NIROBOX™ Aspiral™ SUBRE Water as a Ivory Coast service, Project O&M

Increasing Gross Margin

• 12 months pro-forma

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Vision: Wastewater Treatment Will Increasingly Be Decentralized

Decentralized Systems

Centralized Systems

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Decentralized advantages*:

• Decentralized saves 90% of piping capex

• Double treatment capacity per unit of capex

• With MABR, overall system opex drops 58%

Rural area with towns and villages of with populations ranging 200 - 35,000 people

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Decentralized Urban Water

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Decentralized advantages :

• Decentralized in-building treatment bypasses decaying infrastructure

• Recycled water meets 95% of commercial building’s water demand

Example: San Francisco mandates reuse; New York has deployed

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*Based on Fluence analysis and market studies

MABR Helps Enable Migration To Decentralized Treatment

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Most cost effective, proven, neighborhood-friendly solution

Fluence Smart MABR Beats Competing Technologies[1]

MABR Suppliers

Fluence vs Competing Technologies Capex 17% - 55% lower Opex 50% - 82% lower Energy Use 31% - 63% lower Chemical Use 30% - 39% lower

	Fluence	Suez	Dupont
Plant Scale	Modular & Fixed	Fixed Only	Fixed Only
Orders	250+	12	Demo only
Patents / Markets	Global	US patents only	Cannot access US market

30-70% overall lower TCO[1] vs competing technology options

Two competitors with only 12 installations globally

1. TCO based on a 10-year period compared to MBBR, MBR, and FMBR technologies. All numbers based on actual data from Fluence plants and competitive analysis

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Water As A Service Delivers Compelling Customer Savings, Maximizes Fluence Profit

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Complete Water and Wastewater Solutions

Recurring High Margin Revenue

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Hotel
Water source Water treatment Wastewater treatment
Seawater/ Brackish water plant NIROBOX plant ASPIRAL
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Water Treatment Wastewater Reuse
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• Wastewater reuse saves cost of sourcing water and treating wastewater

• Containerized water sourcing enables complete water solution

• Fluence can cut water costs 50% and generate 25%+ IRR

• Target partners with portfolios of projects

• Complete hands-off deployment of solutions which blend into their locations

Bahamas Project Represents Future Template

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Examples of Aspiral Plants Installed in China

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Aspiral Micro treats home cluster, Liaoning province

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Aspiral S1 near homes, Hefei, Anhui province

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Aspiral plant, Tonglu, Zhejiang province

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Highway rest stop Aspiral L4 plant, Xiaogian, Hubei province

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Rural Aspiral plant, Luoyang, Henan province

Control console manages remote, automated plants

4 Aspiral L4’s, Xie Lin Gang, Hunan province

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SUBRE Plants in Sihanoukville, Cambodia

Country’s first wastewater treatment plant supports 100,000 people

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Artist concept of main plant installed in riverbed

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Construction site on April 2, 2021; commissioning in May 2021

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Second plant located next to hotel

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SUBRE modules on site

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Growing Philippines Business

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• Strict wastewater treatment standards now being enforced, soon with fines

• Already 8 MABR and 2 Nirobox plants sold

• Mix of municipal and commercial customers

• Strong pipeline of additional business

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Nuvali Vesta
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Growing Middle East Business

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3 Plants commissioned on

Plant at new city on Mediterranean coast, Egypt: Supply for 270,000 people

Plant in operation, Mauritania: Supply for 25,000 people

Mediterranean coast, Egypt: Supply for 80,000 people

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Ivory Coast Project Progressing Well

• 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 provides cash flow visibility for the company through 2022

• Limited financial risk as the customer has finance through the Israel Discount Bank (BBB+ rated)

• Potential for future recurring revenue with opportunity to bid on long-term operations & maintenance contract after construction

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China Facility Produces MABR Modules, SUBRE and Aspiral Products

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MABR Manufacturing Since 2017

Manufacturing Line View

• MABR produced at wholly owned plant in Changzhou, Jiangsu Province, China, which serves as global manufacturing hub of MABR, with two additional assembly plants in Panjin and Yiyang, China

• Our Changzhou facility has one production line, with $75100M in annual revenue capacity and ability to add three additional lines

Production Line in Operation

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Assembly line in operation

Aspiral pre-ship water test

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Aspiral Smart MABR MABR Raw Packaged Plants modules production line materials

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Leading ESG Impact in Water Treatment

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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 of water

• Fluence technologies are highly energy efficient (MABR, desalination)

• A decentralized approach using Fluence MABR to solve the world’s wastewater needs would result in increased access to clean water and wastewater  Potential annual energy savings of 209 TWh, equivalent to 150MM Tons CO2

• Fluence is committed to ESG and delivers on 10 of the 17 UN SDGs

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MABR & NIROBOX
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19 GWh / year in energy savings compared to conventional technologies Equivalent to 13,500 Tons CO2 / year

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Reuse
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Water Wastewater
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8.7Bn Liters Water 121Bn Liters 187Bn Liters
Recycled / year Drinking Water Wastewater
Produced / year Treated / year
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Fluence’s MABR installations remove >500 Tons of excess nutrient pollution / year

Source: EPA, Company analysis.

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What Success Looks Like

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• New volume partners in China, SE Asia, Middle East

• More orders from existing volume partners

• Commercial customers for water as a service in North America

• Continuing successful execution of Ivory Coast project

• Continued improvement in operating efficiencies

• Improved shareholder returns

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