Water and Wastewater Treatment Solutions slide image

Water and Wastewater Treatment Solutions

Recurring Revenue - BOO, O&M, and Parts & Service Greater emphasis being placed on high-growth, high-margin recurring revenue segment that is offered across all market segments Product Offering • Build, Own, & Operate ("BOO") offers water-as-a-service where Fluence provides the treatment equipment and all required services to deliver water or wastewater to the customer in exchange for a fee for the volume of water or treatment that is delivered. Benefits includes: -Take-or-Pay minimum water requirement - Long-term contracts: typically 10-15 years - Attractive financial returns: 15-20% IRR • Operations & Maintenance ("O&M") offers the client the option to have Fluence operate their plant for a combination of a fixed and variable fee. Benefits include: - Hands off management of their water treatment equipment to experienced Fluence personnel - When paired with an equipment sale, decreases the risk of equipment underperformance - Maintains commercial relationship with the client after equipment sale and can lead to future equipment sale opportunities - Aftermarket Parts & Service leads • Parts & Service provides aftermarket parts and ancillary service from experienced technicians. Benefits include: - ― Parts typically sold at high margins (40-60%) - Ongoing relationship with the client fluence 14 14
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