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CONSOLIDATED WATER
FORWARD-LOOKING STATEMENTSThis presentation includes statements that may constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “intend”, “expect”, “should” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of our products and services in the marketplace, changes in our relationships with the governments of the jurisdictions in which we operate, the outcome of our negotiations with the Cayman government regarding a new retail license agreement, our ability to successfully secure contracts for water projects, including the project under development in Rosarito Mexico, our ability to develop and operate such projects profitably and other risks detailed in our periodic report filings with the Securities and Exchange Commission.
By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this presentation.
WORLDWIDE WATER OPPORTUNITY• 18% of Earth’s population (1.1 billion people) lack access to safe drinking water.• Water use increased six-fold during the 20th century, more than twice the rate of
population growth.• The amount of water on Earth is CONSTANT.• Of the 3% of Earth’s water that is drinkable, more than half is locked in the polar ice caps.
GLOBAL WATER SUPPLY
1%2%
97%
Groundwater / lakes / rivers
Ice caps / glaciers
Oceans
OUR BUSINESS
We build, finance and operate desalination plants and distribution systems that provide potable water in locations where freshwater supplies are limited or non-existent.
Traded on the NASDAQ Global Market (“CWCO”)
REVERSE OSMOSIS DESALINATION• Well or direct sea intake• Seawater pre-treatment• High pressure pumps• RO membranes• Energy intensive/recovery• Post treatment
OUR LOCATIONS
• Cayman Islands• The Bahamas• Belize• The British Virgin Islands• Bali
OUR DESALINATION PLANTS
Country Plants Capacity*
Cayman Islands 7 9.0
The Bahamas 3 15.2
The British Virgin Islands 2 0.8
Belize 1 0.6
Indonesia 1 0.8
TOTAL 14 26.4
* Production capacity is in millions of U.S. gallons per day.
COMPETITIVE ADVANTAGES• Use of best available technology.• Incorporation of operating experience in plant
designs.• Highly efficient plants.
COMPETITIVE ADVANTAGES• Long term contracts with hedges for energy and
operating costs. • “Turn Key” customer solutions.• Niche market focus.
Retail
Bulk
Services
OPERATING SEGMENTS
NINE MONTHS ENDED SEPTEMBER 30
2015 20140
10
20
30
40
43.8 50.3
17.5 18.0
5.9 5.3
RevenuesGross ProfitNet Income
Mill
ions
FINANCIAL CONDITION AT SEPTEMBER 30, 2015
0
20
40
60
80
100
120
140
160
180
7.5
50.2
144.2161.2
Series 1
Mill
ions
OUR GROWTH STRATEGY
• Expanding our existing operations into new markets.
• Complementary services.
NEW MARKETS - BALI, INDONESIA
• Plant built in Nusa Dua, Bali’s premier tourist region.
• Major development underway of new resorts and luxury residences.
• Existing water supplies incapable of meeting incremental demand.
NUSA DUA, BALI PROJECT
• Demonstration plant involving market risk.
• Capacity of 750,000 gallons/day.
• Expandable to 1.5 million gallons/day.
• Competition/factors for success.
NEW MARKETS - MEXICO / SOUTHERN CALIFORNIA
– Region is dependent on water imported from Colorado River.
– 2010 population of Tijuana : 1.8 million.
– 2010 population of San Diego: 3.1 million.
– Projected population increase of Tijuana by 2020: 68%.
– Projected population increase of San Diego by 2020: 70%.
SAN DIEGO, CA
THE CITIES OF TIJUANA AND ROSARITO
ROSARITO MEXICO PROJECT
• Proposed 100 MGD desalination plant.
• $500-600 million estimated cost.
• Intake/outfall co-located with existing power plant.
• Financing by third party non-recourse debt and equity.
• CWCO would own minority position in plant and participate in plant operation.
ROSARITO MEXICO PROJECT - ACHIEVEMENTS
• Acquired strategically-located site for plant.
• Leased land within federal power plant for ocean water intake/discharge.
• Pilot Plant/Seawater Testing – Phase I completed, Phase II underway.
• Obtained environmental permits for desal plant and conveyance pipeline.
ROSARITO MEXICO PROJECT - ACHIEVEMENTS
• Project framework: Public-private partnership legislation enacted in August 2014.
• Submitted detailed public-private partnership proposal to Baja Govt.
• Official tender process commenced November 2015 with tender submission deadline of March 23, 2016
INVESTMENT CONSIDERATIONS
• Development project in Rosarito, Mexico.
• Bali initiative.
• Dividend history.
• Complementary services & other projects.
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