Fluence (EMC & RWL) Conference Call, page-28

Newt i did take a few notes in the Q&A. I've posted them as is with no post editing so make of them what you will:

Emefcy Conference Call Q&A

Wuxi Demonstration Plant – operating in one of the leading 3 design facilities. Been the place where others have inspected that have delivered commercial contracts. Data in hand and running through process of putting together over coming weeks.

Recurring Revenue – moving along from one off turn key solution to recurring Build Operate Transfer projects. Revenue 4 ways. Build, operate by selling water, company invests 51% of equity required so IRR, multiples for how market perceives company value increases in RR types of company

CY revenue 90M – estimate based on balancing innovation of MABR and execution platform of RWL. Top line revenue important but want steady growth as well as building up margins. Low 20s to low 40s. Do all this by managing OPEX. This will allow profitability by 2019. Ross suggests under promise, over deliver.

No debt on either company’s balance sheet

Off balance sheet debt to finance activities. Has to do with economics of the project. Value proposition of MABR is so great that reasonable to bring in a financial partner. IRRs of the China projects are nearly double of that of competition. Off balance is part of the growth strategy.

Comparable companies eg Aquaventure is seeking a recurring revenue model. They are in large plant desal in Carribean. Much narrower scope than Emefcy. Over 50% of their business (about $110M last year) is cooling fountain water. Fluence cover whole water ecosystem but distributed and global. Value is usually multiples of revenue. Approx. 2.5 common. So Aquaventure is MC about $450M. But they have large debt and long way short of profitability. Beijing Water is better comparison as in same space $450M revenue has MC of $9B

California. Stanford Uni. New constructions over 25000sqm have to have on-site recycling water for non-potable. Same in Silicon Valley all talking about doing on-site recycling so they can be seen as sustainable (also cost savings). Standford up and running within a few weeks will allow these organisations to see it up and running. That is more important than any kind of certification. Gateway for commercial contracts. San Fransisco will lead the rest of the US.

Innovation pipeline – MABR, SUBRE, EBR all on track and moving forward so expect steady pipeline of new tech to drive growth. Eytan concentrating on this.

Expect to be in the ASX indices shortly.