Fluence Corporation (ASX: FLC) Corporate Overview

August 2019

Targeting Global Leadership in Decentralized Water & Wastewater Treatment Solutions

www.fluencecorp.com

2

Executive Summary

• A leading water and wastewater treatment solutions provider focused exclusively on the decentralizedmarket

– Over 7,000 installations in over 70 countries

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

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

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

• Backlog at the end of June 2019 of US$278M

• Targeting sustainably positive EBITDA by Q4 2019

(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 $6.5M benefit of reversal of an onerous contract provision from prior years

US$M

US$M

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Water Shortages: Widespread & Growing

Water shortages affect 2.7B people now

2.4B people lack proper wastewater treatment now

An additional 2.1B people need upgraded treatment

Population growth from 7.4B in 2016 to 9.1B by 2050

60% increase in global food production by 2050

Manufacturing water demand will grow 400% by 2050

Global water consumption to double by 2050

Results in 40% water deficit by 2030

Sources: WWF, Water Scarcity, 2014; US Geological Survey, 2015; UN World Water Development Report, 2017; Water for Food, UNCTAD, 2011.

Global Population

Experiencing Water Shortages

Sufficient Water Supply

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Major Milestones and Growth Momentum Q2 2019

• Largest booking in Brazil for $10M desalination project with a repeat customer

• First NIROBOX™ order in the US

Q1 2018

• Received award for Decentralized Water & Wastewater Company of the Year

• First NIROBOX™ orders in Argentina and Philippines

Q3 2018

• First MABR sale to Hubei ITEST

• First NIROBOX™ BOT signed in Philippines

• First commercial Aspiral™ sales in US and Philippines

Q3 2017

Emefcy and RWL Water merged to form Fluence Corporation (ASX:FLC)

Q4 2017

Opening of first MABR manufacturing plant in Changzhou, China

Q1 2019

• Record quarterly bookings of $223M

• Awarded €165M landmark Ivory Coast contract

• Largest individual order of 40 Aspiral™ units in China

• Official launch of SUBRE and first commercial orders secured

• Total backlog of $267M, up 181% YoY

Q2 2018

• San Quintin project reaches Financial Close

• Aspiral™ product suite launch

Q4 2018

• Commencement of San Quintin Project

• Largest NIROBOX™ order ever from Egypt (12 units)

• Announcement of $50M Generate Capital debt facility

FY 2018

• Achieved organic revenue growth of 74%

• >200% increase in Gross Profit

• Reduced G&A by 30%

FY 2019E

✓ Targeting ~20% YoY revenue growth of Smart Products

✓ Increasing backlog of projects with Recurring Revenue

✓Goal to achieve sustainably positive EBITDA

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Complete Suite of Water & Wastewater Treatment Solutions

✓ ✓

✓✓ ✓

✓ ✓

Custom Engineered Solutions

Water Treatment

Desalination ReuseWastewater Treatment

Wastewater-to-Energy

Food & Beverage Processing

✓✓ ✓ ✓✓ ✓

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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

7

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

Reporting Segment Products

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Growth Strategy

• Leading suite of Smart Products Solutions for underserved

decentralized water and wastewater markets worldwide

• Leverage global Custom Engineered Projects reputation on

decentralized plant sales enabling more repeat orders, faster delivery,

higher margin

• Growing BOOT pipeline funded by non-dilutive debt finance increases

recurring revenue

• Target China’s wastewater treatment market with MABR-based Aspiral™ Smart Packaged plants to drive rapid growth

• Leverage partners to accelerate pipeline, bookings and revenue growth

• Maintain healthy top-line growth

• Increase total gross margin blend

• Target sustainably positive EBITDA by Q4 2019

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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 and first commercial contract in Jamaica

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Largest individual order of 40 Aspiral™

units from ITEST

Additional Aspiral™ plants

in Hebei and Zhejiang

Provinces

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

Mar 2018

Repeat order through Jinzifor the Local Government of Zhenfeng

County

Oct 2018

Exclusive partnership

agreement with ITEST in Hubei

Province

Dec 2018

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

in Hubei Province

Sep 2017

First production of Aspiral™ modules in

China

Nov 2017

First Aspiral™ plant in Henan

Province via partner QSY

Framework agreement for 6

Aspiral™ units via partner Jinzi

May 2018

First Aspiral™ Plant in

Beijing area via partner Glory Land

Jun 2018

First Aspiral™ Plant in Hunan

Provincevia partner

Hunan Kaitian

Tripartite framework

agreement for Aspiral™ in 3

districts in Yiyang City

Jul 2018

Jinzi secures third contract

in Guizhou Province

First sale via partner Hubei

ITEST. Shipped,

delivered and installed in 6

weeks

Nov 2018

Sale of 6 Aspiral™ units

via partner Zhongzi Huazein Jilin Province

Mar 2019

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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: Solving Water and Wastewater Challenges

Industrial Water Treatment

Wastewater-to-EnergyPackaged Wastewater

TreatmentAeration

EPC ProjectsIndustrial Wastewater

TreatmentFood & Beverage

ProcessingIndustrial Process Water

Bespoke solutions designed and built for customers worldwide

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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: $26M

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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Outlook for Continued Growth in 2019

• ~20% year over year growth of

Smart Products from $22M to $26M

• 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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KEY CONTACTSKey Contacts

Ronn BechlerMarket Eye

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

Adam HinckleyVP Investor Relations

+1 914 998 3304ahinckley@fluencecorp.com

Appendix

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Corporate Overview

Capital Structure as at 31 July 2019 ASX: FLC

Ordinary Shares on Issue 537.4M

Options on issue 44.6M

Share Price A$0.47

Undiluted Market Capitalization A$252.6M

Cash at 30 June 2019 $15.6M

External debt (except non-recourse project debt)

$0.8M

Liquidity (average shares traded per day for the 3 months to 31 July 2019)

650,377

Top Holders ASX: FLC 31 July 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 6.9

Plan B Ventures 20.5 3.8

Other top 20 108.6 20.2

Top 20 total 371.4 69.1

Notes:• Over 58% of Fluence shares held by US entities (1)

• Generate Capital $50M non-recourse debt facility, of which, only $2M has been drawn

1) As of April 1, 2019

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Management Team

World-Class Board and Leadership

Board of Directors

• 35 years’ tech and Venture Capital experience

• US$3B value created

Richard IrvingChairman

• Former CTO of GE Water

• 30 years’ operating, acquisition and tech experience

Rengarajan RameshNon-executive Director

• 30 years’ tech and Venture Capitalexperience

• US$4B value created

Ross HaghighatNon-executive Director

• 30 years’ capital markets experience

Peter MarksNon-executive Director

• Over 30 years’ international financial services experience

Paul DonnellyNon-executive Director

• Over 30 years’ industrial experience

Arnon GoldfarbNon-executive Director

Henry J. CharrabéManaging Director & CEO

• Former CEO of RWL Water

• Over 15 years’ water industry experience

Henry J. CharrabéManaging Director & CEO

• 20 years’ finance experience in renewable energy and water treatment

Francesco FragassoCFO

• Over 15 years’ marketing strategy experience

Erik ArfalkCMO

• 15 years’ as an investor, advisor and sell-side analyst

Adam HinckleyVP Investor Relations & Project Finance

• Over 22 years’ water industry experience

• Former VP Sales of Emefcy

Ilan WilfGlobal VP Sales

• Co-Founder of Emefcy

• Over 25 years’ water technology experience

Ronen SchechterCTO

Tony HargraveCOO

• Over 30 years’ water industry management experience

• Former CEO of RWL Water

• Over 15 years’ water industry experience

• Over 15 years of corporate law and M&A experience

• Former GC of RWL Water

Spencer D. SmithCLO

• Over 30 years’ experience as Company Secretary

Ross KennedyCompany Secretary & Advisor to the Board

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Global Footprint Diversifies Revenue

Leverages an optimal mix of sales channels (integrators, operators,

representatives, distributors, financial partners) across the key water markets

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Large Diversified Customer Base

Historical and Existing Customers and Partners

Water and wastewater treatment solutions for customers across the

industrial, commercial and municipal sectors

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How MABR Works

3. Blood (with oxygen) flows out

1. Air breathed in

2. Oxygen dissolved naturally into blood through lung material

MABR - Inspired by Nature

1. Air passes through

2. Oxygen dissolves naturally into wastewater through membrane

3. Wastewater picks up oxygen to digest waste

O2

Semi-permeable membrane

Biofilm

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Fluence’s MABR validated for California Water Recycling Standard by CR2C at Stanford

• Fluence MABR demonstration unit installed since January 2018 at the Codiga Resource Recovery Center (CR2C) at Stanford University

• CR2C’s research validates compliance of Fluence’s MABR technology with California’s Title 22 water recycling legislation

• Title 22 is among the strictest water and wastewater treatment standards for water and wastewater recycling and reuse in the United States. Additional testing parameters included enhanced nutrient removal in the form of “Total Nitrogen”.

• Successful tests conducted on higher concentration of nitrogen and phosphorous than typical wastewater

Fluence MABR plant at CR2C in Stanford

“… the system achieved the objectives of mean Total Nitrogen concentrations below 10mg/L and met T22

requirements as measured by Turbidity and Total Coliform in the Tertiary Effluent”

- CR2C Research ReportResearch report available at: https://cr2c.stanford.edu/resources/software

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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).