worldwide experts in water treatment · municipal wastewater, mbrs strong presence in usa 1991...

WWW.OVIVOWATER.COM 1

WORLDWIDE EXPERTS

IN WATER TREATMENT

TSX: OVI.A and OVI.B

INVESTOR PRESENTATION

MARCH 2016


Forward-Looking Statements

Certain information and statements contained in this presentation regarding management’s objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of applicable securities legislation.

Management of Ovivo Inc. would like to point out that forward-looking statements involve a number of uncertainties and known and unknown risks such that the actual and future results of Ovivo could differ considerably from those stated.

Additional information about the risks and uncertainties that could cause actual results to differ from expectations is provided in Ovivo’s Management’s Reports for the fiscal year ended March 31, 2015 and for the quarter ended December 31st, 2015.

All amounts are in Canadian dollars. The “M$” symbol stands for “million dollars”.

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We are

• A Pure Water Treatment Company

• A Technology Provider – We design and sell equipment,

systems and parts & services – We take no construction risk

• Experts having Proprietary Products and System Integration Knowhow to treat the most challenging water in the world

• A powerful Global Brand with renowned Trademarks and a huge Installed Base of equipment around the world


Our Financials at a Glance

• Ovivo Inc. shares are traded on the Toronto Stock Exchange

• Ticker Symbols: OVI.A and OVI.B

• Share Price : $2.18

• Market Capitalization: $96 M

• Net Debt: $14 M

• Enterprise Value: $110 M

• Key Financial Metrics

• LTM Revenues: $319 M

• LTM Adjusted EBITDA: $15 M

• Backlog: $283 M

• Revenue guidance for FY 2016 : $320 M *

* Fiscal Year-end is on March 31st, 2016 Share Price and Market Capitalization as at March 1st, 2016 / Balance Sheet and Backlog data as at Dec. 31, 2015 / Income Statement data are LTM ending Dec. 31, 2015

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We Regrouped the Strongest Experts and Brands in the Industry

2002 Acquisition EIMCO Municipal Wastewater Strong presence & reputation in North America

2005 Acquisition BRACKETT GREEN Headworks, Industrial and Municipal Wastewater. Strong presence in Europe, North America, Middle-East, Asia

2006 Acquisition ENVIROQUIP Municipal Wastewater, MBRs Strong presence in USA

1991 Acquisition DORR-OLIVER Industrial Wastewater

2004 Creation Water Treatment Group

2009 Acquisition CHRIST WATER TECHNOLOGY Pure and UltraPure Water Strong presence in Europe & Asia, Industrial Markets

2005 Acquisition Jones + Attwood Headworks, Municipal Waste Water with presence in Europe and North America

2010 Creation of OVIVO Umbrella Brand


We Built an Integrated Global Platform

North America

Rest of the World

Europe

Canada

United States

United Kingdom

France

Austria

Singapore

India China

United Arab Emirates

Switzerland

Germany

Netherlands

Australia

54% 31%

15%

Revenue Geographic Breakdown*

Taiwan

* Last Twelve Month as at December 31, 2015 based on destination address

Knowledge & Service centers Service Centers

Hungary

Employees 800

Head Office in Montreal, Canada


We have Clear Growth Objectives

Current Fiscal Year

FY 2016 Revenues Guidance: $320 M

LTM Adjusted EBITDA: $15.2 M *

Low Net Debt: $14.4 M *

Our Objectives for

FY 2020 $600 M in Revenues

including $175 M through Acquisitions

6% Annual Organic Growth

Improve EBITDA Margin to reach 8%+

* as at Dec. 31, 2015


Our Positive Outlook is Supported by Strong Macro Drivers

Growing world population (Support the growth from 7.3 billion human beings on earth today to close to 10 billion in 2050)

Urbanization and improving living conditions in developing countries will increase water consumption (agriculture, domestic, industry)

Aging infrastructures in developed countries ( 1 trillion US$ of investments will be required in USA in the next 25 years)

Increasingly strict regulation for water and discharge of wastewater

Climate change-induced water scarcity and floods will increase the need for sustainable water solutions, such as reuse and recycling

Ovivo’s Addressed Market

$60 B PER YEAR


We Do Business in High Growth Markets

MUNICIPAL INFRASTRUCTURE

North America

ELECTRONICS (Microchips, LCD,

Circuit board)

ENERGY (Power, Petrochemicals,

Oil & Gas, LNG)


Our Business Model

is Strong

Project Identification

Business Development and Sale to end-users, EPC Contractors and Consultants

Design and Engineering

Meeting our Clients’ Specifications

Procurement

Manufacturing Outsourcing

Project Management Equipment's Delivery on Site

Installation Supervision

Start-up & Commissioning

Customer Service

Maintenance, Operations, Training, Replacement (P&S)

Total Life Cycle

11


Our customers are Blue Chips

CONSULTANTS END-USERS

Municipalities

Energy

Electronics

EPC CONTRACTORS


Intake Filtration Projects

Ras Laffan, ME

One of the largest Industrial intake facility in the world at 350 m3/sec.

Lingo Ao Nuclear, China

Four units at 60 ft. diam. with total flow at 100 m3/sec

Asaluyah Petrochemical, ME

Six units at 60 ft. diam. With total flow at 120 m3/sec


Pure & Ultrapure Water Production Projects

Saudi Arabia Rabigh Project

Six Conesep® Condensate Polishing units of each at 2500 m3/hr each supplied to Doosan for Saudi Arabia Rabigh project

South Africa Medupi project

9 banks of first & second pass Reverse Osmosis Systems for Boiler Feed with total of 1200 m3/hr at Medupi project

GlobalFoundries Fab 8, NY

Ultrapure water treatment system for 1200 gpm of ultrapure water supplied to a state-of-the-art 300mm wafer foundry in Malta, NY


Wastewater Treatment Projects

Canton, OH

The largest MBR installation in the USA. Upgrade its water reclamation facility from 39 MGD to 88 MGD.

GlobalFoundries Fab 8, NY

Wastewater treatment system for industrial and hydrofluoric waste from a state-of-the-art 300mm wafer foundry

Grand Turk, Cozumel & Dominican Republic

Ovivo supplied 3 microBLOX™ Systems for Carnival Corp. Cruise Centers partnering with them to pursue Carnival’s corporate dedication to the environment.


Our Operating Performance is Improving Quarterly Results Evolution


Our Parts and Services Business is a Profit Driver

• Perfectly complements our new equipment technology solutions’ offering

• Recurring revenues / attractive profit margins

• Significant investments in resources and electronic tools since FY 2013

• Capitalizing on our large installed base of equipment and heritage brands

• Over 50% increase in backlog year-over-year

• Revenue growth of over 50% since FY 2013

56

67

84 93

0

10

20

30

40

50

60

70

80

90

100

FY 2013 FY 2014 FY 2015 LTM Q3-16

Revenues from Parts & Services ($M)


Our Balance Sheet is Solid Financial Position as at December 31, 2015

• Total net debt of $14.4 M is 0.95x LTM EBITDA

• $40 M invested in net assets related to discontinued activities as at March 31, 2015: – $12 M already collected during the first nine months of FY16 and $28 M to be collected over the next 2 to 3 years

The monetization of these non-core assets will help finance our growth

$133.0 M

$14.4 M

-10 10 30 50 70 90 110 130 150

Shareholders' Equity

Total Net Debt


We have Good Financial Flexibility Financial Position as at December 31, 2015

51

3

29

57

0 10 20 30 40 50 60 70 80 90

For letters of credit issuances

For general corporate purposes

Credit Facilities ($M)

Used Available

60

80

• $25 M FTQ non-convertible debenture extended to November 2018

• Revolving credit facilities committed until November 2017


Looking Ahead


We have Strong Fundamentals

Acquisition and Organic Growth Opportunities

Experienced Management Team

Low Capex Requirements

Huge Installed Base = Growing P&S Recurring Revenues

Low Net Debt = Positioned for Growth

More than 150 years of Expertise and References to treat the Most Challenging Water


Looking Ahead

Our FY 2017 to FY 2020 Strategic Plan

Continue Expanding our Expertise in our Core Markets

Continue Growing our P&S Business and our Installed Base of Equipment

Parts & Services

Energy Electronics Municipal

Add new Breakthrough Technologies to our Platform

Invest 1% to 2% of total Revenues in

Product Innovation

Reuse & Recycling

Resource recovery

$ R&D

& Innovation

$600 M of Revenues including $175 M through Acquisitions

6% Organic Growth

Improve EBITDA Margin

to reach 8%+

Growth Objectives for FY 2020

22


In Summary

Why invest in Ovivo?

1) Unique Pure Play in Water Treatment

2) Refocus and Turnaround Completed

3) Global Platform to Introduce new Technologies

4) Favorable Macro Drivers for the Future

5) Financial Flexibility to Finance our Growth Plan

6) Highly Fragmented Market (M&A Opportunities)


Thank you!

TSX: OVI.A and OVI.B

worldwide experts in water treatment · municipal wastewater, mbrs strong presence in usa 1991...

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