FLUENCE CORPORATION LIMITED — Management Reports 2016

Mar 7, 2016

Melbourne 8 March 2016

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Emefcy (ASX: EMC) Management Call Script + Frequently Asked Questions & Answers

Chaired by Richard Irving, Executive Chairman, 8 March 2016

Management Presentation

References in this call to slide numbers are to the corresponding slides in the Investor Roadshow presentation released to ASX yesterday. Joining me on this call from China will be Eytan Levy – Managing Director & CEO and Ross Haghighat – Non-Executive Director.

1. Here’s a brief introduction to Emefcy, how we plan to change the way wastewater is treated and provide low cost recycled water to water-stressed areas worldwide, a potentially multi-billion dollar business opportunity. Wastewater treatment is essential but expensive as it’s energyintensive. Today’s plants are large, noisy, smelly and require huge capex as they’re built to last 30 years or more. Treated wastewater is hard to reuse without further huge capex (A$3M or more per mile) to lay pipes to carry the recycled water. Emefcy is changing the way the world treats wastewater – we enable local treatment with a solution which is quiet, odorless, and easily concealed. Best of all we typically use 90% less energy, lowering plant operating costs by 50% or more, with a solution which is well-protected by patents. We expect this to have an enormous impact on the wastewater industry which will spend an estimated A$130B in leading markets in 2016. We have a diverse pipeline of potential projects in Israel, the Caribbean, US, Latin America, Australia and Africa. We are planning to enter the China market, likely the world’s largest, and we anticipate being able to offer water as a service, saving customers capital expense. Serving over A$8B of markets worldwide with our growing product line we expect the company to become a substantial global enterprise over time.

2. Slide 4

• 29 February 2016 – We released the ASX preliminary final report for the year ended 31 December 2015 – most of the loss was non-cash and related to reverse takeover accounting entries. The Company had a strong cash position with A$11.5m cash on hand at the end of 31 December 2015.

3. Slide 14

• SABRE is commercially-ready technology, with our first commercial municipal installation proceeding now in Ha-Yogev, Israel. All SABRE modules have been manufactured for Ha-Yogev, our first commercial deployment in a municipal and agricultural community: both are very large markets in which this will be a further proof point that our technology delivers breakthrough savings in wastewater treatment.

AUSTRALIA Emefcy Group Limited Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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1. Slide 16

The Company has a strong sales pipeline of real opportunities which is maturing each month. These include other contracts which are anticipated to be signed in the coming months including our first contract outside of Israel – this will be a very important reference to allow faster repeat sales in that territory. For example, in our investor presentation you’ll note that a quarter of our sales pipeline is in the Caribbean – a contract win there not only helps us sell more easily in the Caribbean but in neighboring markets – US and Latin America. We also have good sales pipeline progress in other geographies such as Africa.

1. Slide 10

SABRE is rolling out now while SABRE2, SUBRE and EBR will all add to our product family over the next 2 years. Together these products target markets which are estimated at more than A$8B/year in global revenues. Closed SABRE contracts in 2016 will be key references for larger, anticipated higher margin SABRE2 sales in 2017 and SUBRE sales in 2018.

1. Slide 19

We believe EMC can prosper even more with a recurring, annuity style revenue model, selling wastewater treatment, and recycled water as a service. Our current estimates suggest that a recurring revenue model can deliver multiple times the profit over a 10-year period compared to selling modules. We are starting to test this model with customers and are engaged in discussions with financial partners with a view to closing such recurring revenue contracts during the next year or so. Such a business model would make EMC a junior utility player with annuity style revenues linked to take or pay contacts with our clients. We believe this model parallels the proven deployment of solar energy – by defining a model similar to USA Power Purchase Agreements and providing third party project finance, which saw solar deployments accelerate dramatically. According to EMC’s online research, at the end of 2015 the US had 25 Gigawatts of solar PV capacity and solar represented 30% of all new US electricity generation capacity in 2015. We believe selling water as a service can be a better proposition for EMC since our low operating costs mean we won’t need subsidies to build a potentially highly profitable business selling water. We’ve often seen that innovative water companies attract valuations of 10 or even 20 times revenues. With a highly profitable recurring revenue business such valuations are potentially available to EMC.

1. Slide 18

We mentioned our pipeline’s geographic spread, particularly in water-stressed areas and where decentralized treatment is required. We believe the biggest of these opportunities is China, which is why CEO Eytan Levy and Board member Ross Haghighat are there right now talking to a range of manufacturing, procurement and channel partners. We will put in place the right partnerships and ensure we have the right product and most appropriate business model before entering the China market, which we expect to do within the next year or so.

AUSTRALIA Emefcy Group Limited Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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1. Slide 7

Our experienced management team has the skills & experience to execute the above and we’re building our team further with an aggressive recruitment campaign.

Following are Answers To Frequently Asked Questions

Q: When do we expect the next contract(s) to be signed?

A: Recently we indicated goals for 2016 of at least 2 new contracts in at least 1 new geography. We have several projects which are at an advanced stage of negotiation and are optimistic some of these will become closed contracts in the coming months.

Q: How large do we think new contracts will be?

A: Typical SABRE projects vary from indicative revenue of A$140K to A$550K per project, although some smaller projects can still be very appealing as local references for future projects. This is the size range we’d expect in 2016. Once SABRE2 is available we can target larger municipal projects.

Q: What is EMC’s current installed production capacity?

A: EMC’s production facilities are able to currently support A$25m/year in sales which we expect can support module sales through to 2018.

Q: Are things on track with the work on SABRE2 & SUBRE?

A: Yes we are on track to begin field testing SABRE2 in Q3 and SUBRE in early 2017.

Q: When do we think we will be ready to enter the Chinese market?

A: Our target is to enter China during 2017 once we have the right partnerships in place, as well as solutions and a business model appropriate for that market. EMC’s CEO, Eytan Levy, and Board member, Ross Haghighat, are in China this month talking to a range of manufacturing, procurement and channel

AUSTRALIA

Emefcy Group Limited ABN: 52 127 734 196

Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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partners. We have had significant inbound interest from a range of Chinese partners and a number of these Chinese groups have visited the Company’s operations in Israel.

Q: How long will it take to secure the right partner and finalize the water as a service model?

A: We expect to finalize the business model and anticipate selecting a financial partner before the end of the year. We are already testing the model with customers to allow us to move towards contracts paying recurring revenue as soon as the model and our partner are chosen. EMC believes this take or pay contract revenue model to be a compelling opportunity both for us and our potential customers.

Q: What was the response like for EMC during the New York roadshow in February 2016?

A: Emefcy appointed Edward Sugar’s EAS Advisors LLC of New York in January 2016 as the Company’s North American corporate advisor. Through EAS, EMC met with a number of sophisticated institutional investors in New York during February 2016 and our future plans were well received by investors. EMC remains in close dialogue with these New York based groups and with all our significant existing and potential investors.

Q: How is the recruitment process going?

A: Finding good people is always a challenge and we follow a very careful recruitment process to select the best candidates. We have been very pleased with the quality of candidates that Emefcy is attracting and have already filled several key positions, so we expect to be on track with our hiring plan this quarter.

Q: Do you have adequate resources to handle all the various activities and opportunities at present?

A: We have already selected working partners in several geographies including the Caribbean and Latin America. We are in active discussions to cover other locations including the US market. Once key hires are complete we will have the resources we need to achieve our plan.

Q: How are the opportunities in the various countries being managed at present?

A: In most cases we work with local system integrators and manufacturer’s representatives. As our pipeline grows in a particular geography we will add our own regional sales & support people.

AUSTRALIA Emefcy Group Limited Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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Q: How long do you expect the current funds to last?

A: In accordance with ASIC requirements the Prospectus we issued in October 2015 was required to exclude revenues and associated costs. As we ramp up sales and manufacturing, ship and install plants we will of course consume more cash to cover the cost of goods sold, marketing, selling and product development costs. However, we believe our current cash balance will last us until mid-2017.

Q: What is EMC’s current monthly cash burn?

A: The Company will be providing quarterly updates on cash expenditures. For the December 2015 quarter, the company had a net spend on operations of about A$230k per month. This will increase as we scale up our operations in line with our 2016 goals including manufacturing modules in response to customer contracts. The Company’s cash balance as at 31 December 2015 of A$11.5m, sees EMC fully funded relative to its foreseeable total cash flow requirement beyond 2016.

Q: When do you think you will need to raise additional funds?

A: With our strong business momentum and significant inbound investor interest we are very comfortable with the capitalization of this business now and for the foreseeable future.

Q: What sources of non-dilutive funding are you looking at?

A: We already receive grants from the Israeli Office of the Chief Scientist and Ministry of National Infrastructure. We are in discussion with several parties regarding further grants related to market entry in the US, Europe, and China.

Q: What do you see as the major ‘rate limiting’ steps in not being able to achieve some/any of your commercial objectives over the next 6-12 months?

A: The hardest factor to control is when an actual contract closes and permits are granted. To manage this risk we are continually reprioritizing opportunities in our pipeline around those which can be quickly closed, implemented and advance our strategic goals. Our production facility has capacity to deliver A$25M of revenue per year measured against product sales, so this is not a constraint. Some materials take several months to order, so we place orders ahead of time to provide some buffer towards fulfilling orders.

AUSTRALIA Suite 1, 1233 High Street Armadale, Victoria AUSTRALIA 3143

Emefcy Group Limited ABN: 52 127 734 196

Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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Q: What initiatives are in place by EMC to increase product sales well above the 3 sabre sales that management have set as a goal for this year. I understand that there are over 40 leads currently that could lead to sales in 2016. 3 units looks like quite a low customer conversion rate.

A: Our top priority is to gain new contracts in new geographies, since these can be more easily referenced to attract new customers than having them come to see our working plant in Israel. For example 1/3 of our current sales pipeline is in the Caribbean, so our first win there can be widely leveraged in the region and in important neighboring regions, particularly the US and Latin America. We are aggressively working the sales pipeline to bring such contracts to closure.

Q: Who is the biggest threat out of its competitors to EMC? How far ahead is EMC from the rest?

A: Emefcy's solution delivers breakthrough performance by using innovative technology. This is how we achieve 90% lower energy use and thereby typically save half of a plant's operating costs. The only other player which has developed such a solution is GE, an active and supportive investor in Emefcy. GE's solution appears targeted at much larger plants, while Emefcy's is going after the rapidly growing market of distributed wastewater treatment. GE's and Emefcy's intellectual property are distinct and Emefcy's is well protected by patents and patent applications. Therefore we do not expect to compete with each other. In fact the Emefcy and GE water teams know each other well. So in a sense our only barrier to adoption is letting the market know we're here and showing that our solution works. This is why we are so optimistic about our future.

Q: Out of China's five year plan for 30 - 40,000 new decentralised waste water treatment plants what percentage do you envisage EMC taking of this?

A: We are putting together our China market strategy right now. This includes selecting manufacturing and channel partners and tailoring our product to China market requirements. We are confident that by executing the right strategy we can become a very significant player in what we expect to be the largest national market in the world for our solution. Emefcy CEO Eytan Levy and Board member Ross Haghighat will be in China to further our strategy and will join the management Q&A call from there so we'll get a live update on progress from them on the call.

AUSTRALIA Emefcy Group Limited Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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Summary

1. We have a great product, to be followed by a very strong and well-protected product family;

2. Our pipeline is ripening nicely with customer progress towards contracts in multiple geographies;

3. We are moving forward rapidly with both our recurring revenue model and our China market entry strategy;

4. We are targeting top-grade hires to augment our experienced team, to ensure we deliver on our growth plans;

5. EMC is well funded with a cash balance as at 31 December 2015 of A$11.5m, which sees EMC fully funded relative to its foreseeable total cash flow requirement beyond 2016; and

6. We aim to be the market leader in our target segments by changing the way people treat wastewater, providing low cost recycled water, and monetizing this in the most lucrative way we can. By doing these things we believe EMC has every opportunity to become a large, global success story. We thank you all for your support and look forward to sharing this exciting journey with you.

We will be in Perth on 14[th] and 15[th] of March, Melbourne 16[th ] and 17[th] and Sydney on 18[th ] March and look forward to catching up with as many Australian investors as we can face to face.

Thank you for your continuing interest in and support of Emefcy Group Limited.

For further information, please contact:

USA

Richard Irving, Executive Chairman E: richard@emefcygroup.com T: +1 408 382 9790

Israel

Eytan Levy, Managing Director & CEO E: eytan@emefcygroup.com T: +972 4-6277555

Australia

Ross Kennedy, Company Secretary and Advisor to the Board E: rossk@emefcygroup.com T: +61 409 524 442

AUSTRALIA Emefcy Group Limited Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556

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About Emefcy Group Limited (EMC)

Emefcy offers a commercially ready wastewater treatment solution potentially disrupting large existing markets and addressing the growing global need for clean water. Its initial technology, SABRE – the Spiral Aerobic Biofilm Reactor - is a modular decentralised wastewater treatment solution using an estimated 90% less energy than conventional technology. Future generation SABRE2 and SUBRE are higher capacity solutions being developed for broader markets. Emefcy’s future technology under development, EBR - The Electrogenic Bioreactor - will harvest electricity from highly-loaded industrial wastewater that is typically very costly to treat. The energy’s value has the potential to completely offset other treatment operating costs.

Any forward-looking statements in this announcement 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.

AUSTRALIA

Emefcy Group Limited ABN: 52 127 734 196

Suite 1, 1233 High Street Armadale, Victoria ABN: 52 127 734 196 AUSTRALIA 3143 Phone: + 61 (0)3 9824 5254 www.emefcygroup.com info@emefcygroup.com Facsimile: + 61 (0)3 9822 7735

ISRAEL P.O. Box 3171 7 Ha’eshel Street Caesarea, Israel 3088900 Phone: +972-4-6277555 Facsimile: +972-4-6277556