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CONSOLIDATED WATER
FORWARD-LOOKING STATEMENTS
This presentation includes statements that may constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “intend”, “expect”, “should” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of our products and services in the marketplace, changes in our relationships with the governments of the jurisdictions in which we operate, the outcome of our negotiations with the Cayman government regarding a new retail license agreement, our ability to successfully secure contracts for water projects, including the project under development in Rosarito Mexico, our ability to develop and operate such projects profitably and other risks detailed in our periodic report filings with the Securities and Exchange Commission.
By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this presentation.
WORLDWIDE WATER OPPORTUNITY
• 18% of Earth’s population (1.1 billion people) lack access to safe drinking water.
• Water use increased six-fold during the 20th century, more than twice the rate of
population growth.
• The amount of water on Earth is CONSTANT.
• Of the 3% of Earth’s water that is drinkable, more than half is locked in the polar ice caps.
GLOBAL WATER SUPPLY
1% 2%
97%
Groundwater / lakes / rivers
Ice caps / glaciers
Oceans
OUR BUSINESS
We build, finance and
operate desalination
plants and distribution
systems that provide
potable water in locations
where freshwater supplies
are limited or non-existent.
Traded on the NASDAQ
Global Market (“CWCO”)
REVERSE OSMOSIS DESALINATION
• Well or direct sea intake
• Pre-treatment
• High pressure
• Polyamide membranes
• Energy intensive/recovery
• Post treatment
OUR LOCATIONS
• Cayman Islands
• The Bahamas
• Belize
• The British Virgin Islands
• Bali
OUR DESALINATION PLANTS
Country Plants Capacity*
Cayman Islands 7 9.0
The Bahamas 3 15.2
The British Virgin Islands 2 0.8
Belize 1 0.6
Indonesia 1 0.8
TOTAL 14 26.4
* Production capacity is in millions of U.S. gallons per day.
COMPETITIVE ADVANTAGES
• Use of best available technology.
• Incorporation of operating experience in plant
designs.
• Highly efficient plants.
COMPETITIVE ADVANTAGES
• Long term contracts with energy costs and
operating costs hedges.
• Turn Key customer solutions.
• Niche market focus.
OPERATING SEGMENTS
ANNUAL REVENUES
50
52
54
56
58
60
62
64
66
2011 2012 2013
55.2
65.5 63.8
Mill
ion
s
0
1
2
3
4
5
6
7
8
9
10
2011 2012 2013
6.6
9.3 8.6
Mill
ions
ANNUAL NET INCOME
RESULTS FOR NINE MONTHS ENDED SEPTEMBER 30, 2014
0
10
20
30
40
50
60
2014 2013
50.3 48.6
5.3 7.5
Sales
Net Income
Mill
ions
0
20
40
60
80
100
120
140
160
180
9.5
41.2
141.2
160.4 Total Debt
Working Capital
Stockholders' Equity
Total Assets
Mill
ions
FINANCIAL CONDITION AT SEPTEMBER 30, 2014
OUR GROWTH STRATEGY
• Expanding our existing
operations into new markets.
• Complementary services.
NEW MARKETS – BALI, INDONESIA
• Population of 3.5 million.
• One of the world’s premier beach resort tourist destination.
• More than 100 four and five star resorts.
• Pending water crisis.
NUSA DUA - BALI, INDONESIA
• Bali’s premier tourist region.
• Major development underway of new resorts and luxury residences.
• Existing water supplies incapable of meeting incremental demand.
NUSA DUA, BALI PROJECT
• Speculative (demonstration) plant
involving market risk.
• Capacity of 750,000 gallons/day.
• Expandable to 1.5 million
gallons/day.
• Competition/factors for success.
NEW MARKETS - MEXICO / SOUTHERN CALIFORNIA
– Region is dependent on water imported from
Colorado River.
– 2010 population of Tijuana : 1.8 million.
– 2010 population of San Diego: 3.1 million.
– Projected population increase of Tijuana over
next 20 years: 68%.
– Projected population increase of San Diego
over next 20 years: 70%.
ROSARITO MEXICO PROJECT
• Proposed 100 MGD desalination
plant & conveyance pipeline.
• $600 million estimated cost.
• Intake/outfall co-located with existing
power plant.
• Financing by third party non-
recourse debt and equity.
• CWCO would own minority position
in plant and participate in plant
operation.
ROSARITO MEXICO PROJECT - ACHIEVEMENTS
• Acquired strategically-located land
adjacent to power plant.
• Letter of Intent – Otay Water
District, S. California.
• CFE Power Plant – Land lease and
access to residual waters.
• Pilot Plant Testing – Phase I
completed.
INVESTMENT CONSIDERATIONS
• Development project in
Rosarito, Mexico.
• Bali initiative.
• Dividend history.
• Complementary services &
other projects.