Corporate & Investors Presentation H 2 O Innovation Presented by - PowerPoint PPT Presentation

Corporate & Investors Presentation H 2 O Innovation Presented by : August 2019 Frédéric Dugré, CEO & President TSXV:HEO 1

Our Business Pillars and Business Lines 1. Water & Wastewater 3. Operation & 2. Specialty Products Projects, and Services Maintenance Couplings & W, WW, WR Operation & Filter Housings Systems Maintenance Digital Solutions Specialty Chemicals Aftermarket Services Maple farming equipement TSXV:HEO 2

Business Highlights Water Treatment Solutions Provider : • Focus on small to mid-size municipal market in North America • Strong expertise in membrane filtration, notably for Water Reuse • Multiple proprietary filtration-related products • Strong O&M business based • Multiple references in the energy sector • Growing experience in DB and DBO projects • Business model promotes customer’s retention • Multiple synergies among 3 complementary business pillars • Export Specialty Products in > 40 countries through distributors and EPCs • > 675 employees • Consolidated sales backlog (Projects + O&M) : ≈ 140.0 M • > 75% of the revenues are recurrent by nature • Completed 12 acquisitions • 3

H 2 O’s OFFICES Head Office: Operations & Maintenance:  Québec, QC, CAN  Gulfport, MS, USA  Claremont, NH, USA  Las Vegas, NV, USA Manufacturing Plants:  Forsyth, GA, USA  Ham-Nord, QC, CAN  Kananaskis, AB, CAN  Champlin, MN, USA  Spring, TX, USA  Vista, CA USA Engineering & Sales Offices:  Burlington, ON, CAN  Calgary, AB, CAN  Bilbao, SP, EUR Other (franchises, stores): Totalling  Swanton, VT, USA 675  Saint-Louis-du-Ha!-Ha!, QC, CAN employees  H2O Mexico, Cancùn, MEX in North America & Spain TSXV:HEO 4

Revenues, Business Mix and Adjusted EBITDA 140.0 $ 10.0 $ In CAD million $ 9.0 $ 120.0 $ 8.0 $ Revenues 100.0 $ 7.0 $ EBITDA 6.0 $ 80.0 $ 5.0 $ 60.0 $ 4.0 $ 3.0 $ 40.0 $ 2.0 $ 20.0 $ 1.0 $ 0.0 $ 0.0 $ TSXV:HEO 5 Projects SP&S O&M Adj EBITDA

Unique Growth Platform (+750 systems installed) 6

Unique Value-Proposition Water & Wastewater Projects, and Services Water Our Strategy Utilities Specialty Products Operation & Maintenance Maximize customers’ retention by serving Water Utilities through an integrated approach and in-depth water and membrane expertise. 7

1 st Business Pillar > 750 systems installed • Strong membrane expertise • Water & Wastewater Treatment Feed the aftermarket sales with • Projects, and Services recurring consumables TSXV:HEO 8

1 st Business Pillar – Projects Water & Wastewater Treatment Projects, and Services Montevina, (CA) Decatur, (AR) Drinking Water Wastewater (30.0 MGD) (4.6 MGD) Sherman, (TX) Data Center, (OR) Drinking Water Process & Water Reuse (5.0 MGD) (1.7 MGD) TSXV:HEO 9

1 st Business Pillar - Backlog Diversification Water & Wastewater Projects, and Aftermarket Q3 - FY2019 Q3 - FY2019 Q3 - FY2018 Q3 - FY2018 36% 38% Wastewater Industrial 23% 27% Water Municipal 64% 62% 77% 73% WaterHub, VA Decatur, AK 1.2 MGD 4.6 MGD • • Industrial Municipal • • Wastewater, Wastewater Water Reuse TSXV:HEO 10

North American BWRO & SWRO Desalination Forecast TSXV:HEO 11

2 nd Business Pillar Specialty Products 50 Maple Distributors 25 Piedmont Distributors 25 PWT Distributors

2 nd Business Pillar Specialty Products (all manufactured in USA) Products Services Membrane Pretreatment On-site & off-site membrane cleaning • Water Analysis Coagulants & Flocculants • • Membrane Autopsy Scale Inhibitors • • Etc. Antifoulant • • Membrane Cleaners Lavasol • OptiClean • Biocides • Membrane Preservation Preservol • TSXV:HEO 13

2 nd Business Pillar Specialty Products Product Lines Couplings FRP Filter Housings Self-Cleaning Screen Filters Self-Cleaning Disc Filters Complementary Products TSXV:HEO 14

Evolution of Piedmont’s Product Offering Since it’s Acquisition by H 2 O Innovation 2013 2014 2015 2016 2017 2018 2019 Launch of new FRP Piedmont’s cartridge filter Launch of new disc acquisition by H2O housings and self-cleaning Innovation filters Creating value by: Growing product offering • Leveraging sales network • 15

Global Desal Market Forecast CapEx & OpEx CapEx >24 million m 3 /d TSXV:HEO 16

3 rd Business Pillar - Contracts Operation & Maintenance (O&M) Services Water & Wastewater Operation & Maintenance Billing & Collection Services Additional Services TSXV:HEO 17

3 rd Business Pillar As of today: • 82 Contracts Operation & Maintenance (O&M) • 11 States | 2 Provinces • 135 Water Systems • 44 Wastewater Facilities • 435 Employees TSXV:HEO 18

Q3-FY2019 Activity per Business Pillar $23.3 M $68.1 M $55.0 M $40.2 M $35.7 M $7.8 M $9.8 M $9.1 M Q3-FY2019 Q3-FY2019 Q3-FY2019 3-month Revenues LTM Revenues 3-month Revenues LTM Revenues 3-month Revenues LTM Revenues Backlog Backlog 19

Our Business Model Promotes Synergies and Customer Retention Example: Partnership with Sustainable Water Synergies in this project: $3.2 M Capital Equipment • Project flexMBR TM Technology; ➢ RO system; ➢ Intelogx TM smart ➢ software. $50 k / year (for 5 years) of • specialty products and consumables; $3.3 M for 5 years of O&M. • • 5 other similar projects in the backlog; • More than 40 opportunities. 20

Corporate Information TSX Venture : HEO / OTCQX : HEOFF Board of Directors : Shares outstanding : 55,889,000 Lisa Henthorne, Chairman 2.5 million of options CTO Water Standard, Former IDA Chairman Officers & Directors: 10% (on a fully diluted basis) Frédéric Dugré, President & CEO Institutional: 60% (IQ: 18% /BDC: 13% / CDPQ: 11%) Mechanical Engineer, Founder Richard Hoel, Director Officers : Lawyer, Founding partner of Winthrop & Weinstine Frédéric Dugré, President & CEO Stephen A Davis, Director Marc Blanchet, CFO Managing Partner, Ventry Industries LLC René Vachon, Director Guillaume Clairet, COO Former CFO of Miranda Technologies Management : Pierre Côté, Director Former CTO of Zenon / GE Greg Madden, V.P. – Aftermarket & Digital Solutions Robert Comeau, Director Denis Guibert, V.P. – Engineering & Projects Former CFO of Lumen Pulse Rock Gaulin, V.P. – Manufacturing & Operations Bill Douglass, V.P. – Operation & Maintenance Advisors to the Board : Elisa M. Speranza Former Senior VP and Corporate Director, CH2M Hill OMI Leonard Graziano Former President and CEO, Severn Trent Services, Inc. 21

H 2 O Innovation Unique smart water player Headquarters 330 rue St-Vallier Est, suite 340 Quebec City, QC G1K 9C5 Canada 1-418-688-0170 info@h2oinnovation.com www.h2oinnovation.com TSXV:HEO 22