Fluence : Q4 2021 Update Presentation

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www.fluencecorp.com

Q4 and FY2021 Update

Fluence Corporation (ASX:FLC)

28 January 2022

Q4 and FY2021 Highlights

All numbers are subject to audit

§	Strong revenue growth and backlog in Smart Product Solutions (SPS) leads	Revenue Growth1
		to 2nd year in a row of positive underlying EBITDA, meeting guidance.					$103.2M
§	Q4 2021 revenues1 of $43.5M up 117% on Q3 2021 and 113% on Q4 2020
$87.8M
§	FY2021 revenue1 of $103.2M grew by 18% over FY2020
only§	Fluence meets guidance for SPS revenue and positive underlying EBITDA -			growth
		18%SPS	growth
use	FY 2021 SPS revenues $39.6M (including Italy) up 23% from FY 2020;
underlying EBITDA2 positive $1.0M in FY2021	20%
§	SPS backlog entering 2022 is up 65% versus 2021
§	MABR sold capacity increased 56% - 313 plants sold to date with capacity
		for almost 1 million people
§	MABR capacity sold in FY2021 ex-China exceeded in-China for first time
§	8 Nirobox units (6 plants) sold in FY2021, up from only 1 Nirobox sold in
personalr	FY2020		FY2020		FY2021
§	Cost Out Improvement - full year operating expenses down 8% versus 2020.
§	Cashflow positive $5.2M in Q4 2021 and negative $4.8M for FY 2021			Smart Products Solutions (SPS)
§	Net Cash Position - $41.4M + $23.0M in short and long-term liquid			Recurring Revenue (RR)
		investments.			Custom Engineered Solutions
		FY2022 guidance: SPS sales from continuing businesses +23% to $45M, EBITDA $3M
		(assumes continued COVID-19 headwinds throughout FY2022)
	1From continuing operations
	2 Underlying EBITDA = Statutory EBITDA excluding one-off items					2
	All numbers in presentation are USD unless otherwise stated.

Strong Growth in Sales of MABR Capacity

All numbers are subject to audit finalization

MABR Capacity Sold	MABR Plants Sold To Date
only
(People served)	957,000			313
	56%
			Growth			246 +67
	613,000
use	2020		2021		2020	2021
personalr			Installed		Added
				Above left: commissioned plants next to	China	SE Asia	Rest of World
					homes and hotel, Cambodia
	Competition:	On right from top: buried Aspiral plant
	in China; Aspiral, Texas; Niroboxes in		16%
	15			Philippines and Taiwan

Fluence:	MABR Capacity Sold
313	To Date By Region	53%
	Ex-China Sales Passed in-China in 2021	31%
Fluence has 95% MABR market share
47% of capacity now ex-China

by plant count

3

Progress on Strategic Priorities

only		Priority		Progress
	Build in-China revenue	§	Key orders and development work with BEWG, China Three Gorges,
				China Rail, one new and three existing regional partners
use	Diversify MABR revenue: SE Asia, N America,	§	Commissioned 2 large plants in Cambodia and sold largest MABR
Middle East			plant in the world (160,000 people capacity)
		§ Sold first MABR in Dubai, important reference sale in region
		§ Sold 2 MABR plants in Caribbean
	Develop water as a service business in North	§	Hired Chief Strategy Officer with strong record building recurring
personalr	America			revenue
		§	7 plants sold in Caribbean brings total to date to 14 and provides key
				local references for both MABR and Nirobox
	Execute Ivory Coast project	§	Overall cash flow positive, timely revenue collection continues
	Meet or exceed guidance	§	SPS sales $40M versus guidance of $35-50M
			§ EBITDA positive per guidance
	Deliver Ivory Coast while securing transformation to high margin Smart Product Solutions
				4

Fluence: Fast To Deploy, Profitable Water

Solutions

only								Transition To Higher Margin Revenue
Revenue Mix Has Shifted To SPS ex-Ivory Coast		Illustrative
			3%
			2%	8%	10%						Increasing
			12%
			16%	25%						Gross
						65%					Margin
use			82%
		80%
		2017*	2021 excl	Future Target
		Ivory Coast
			Smart Products Solutions (SPS)
			Recurring Revenue (RR)				Large	Smart	Proprietary	Proprietary	Recurring
personalr				Custom Engineered Solutions			Projects	Products	Smart Products	Smart	Revenue
						Solutions	Solutions	Products
* 12 months pro-forma
			~$190M NIROBOX™ Aspiral™	SUBRE	BOOT,
	Strategic Focus			Examples: Ivory Coast				O&M
				Project
	§		Sell MABR in China and SE Asia		ü	Only global, pure play water and wastewater treatment
	§		Sell Nirobox in Middle East and SE Asia		company delivering standardized solutions to a growing,
			global, decentralised market
	§		Seek more recurring revenue via water	ü	Fast to deploy, lower cost, lower risk way to meet tightening
				as a service in US and Caribbean			regulatory standards
	§		Timely execution of Ivory Coast project	ü	Maximize profitable growth by targeting highest growth
			markets
				Improve operating efficiencies
	§			ü	Strong team and balance sheet		5