Investor Presentation - Worldwide Experts in Water Treatment · Investor Presentation June 2015 All numbers are in CA$ ... Ovivo Inc. is a global company dedicated to water and wastewater

1 ovivowater.com Copyright© 2015 Ovivo Inc. All rights reserved.

Investor Presentation

June 2015

All numbers are in CA$


Forward-Looking Statements

Statements made in this presentation that describe the Company’s or management’s

budgets, estimates, expectations, forecasts, objectives, predictions or projections of the

future may be “forward-looking statements”. The Company cautions that, by their nature,

forward-looking statements involve risks and uncertainties, and that its actual actions

and/or results could differ materially from those expressed or implied in such forward-

looking statements, or could affect the extent to which a particular projection materializes.

For more information on risks and uncertainties, and assumptions that would cause the

Company’s actual results to differ from current expectations, please refer to the

Management Discussion and Analysis (MD&A) for the fiscal year ended March 31, 2015

The forward-looking statements made in this presentation reflect the Company’s

expectations as at today and are subject to change after this date

Also, the financial information shown in this presentation should be considered in

conjunction with the financial statements and the management and discussion analysis

reports for the periods related thereto


Ovivo Inc. is a global company dedicated to water and wastewater treatment

Offers comprehensive technological solutions, services and equipment tailored to client needs

Operates in over 15 countries with more than 800 employees

Head-office in Montreal, Canada

Website: www.ovivowater.com

Ovivo Inc. is a public company whose shares trade on the Toronto Stock Exchange

Ticker Symbols: OVI.A and OVI.B

Share Price : 1.60$

Market Capitalisation: 71M$

Net Debt: 24M$

Enterprise Value: 95M$

Research Coverage from National Bank, Raymond James, Canaccord and Scotia

Key Financial Metrics

Revenues: 319M$

Adjusted EBITDA: 12.1M$

Backlog: 254M$

Revenue guidance for fiscal 2016 : 300M$ to 325M$

COMPANY OVERVIEW

A Leading Water Treatment Company

Share Price and Market Capitalisation as at June 16, 2015

Balance Sheet and Backlog data as at March 31st 2015

Income Statement data for fiscal year ending March 31st, 2015


OUR HERITAGE

A Brief Look at our History

1991 Acquisition

DORR-OLIVER

Industrial Wastewater

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

2004 Creation

Water Treatment Group

2009 Acquisition

CHRIST WATER TECHNOLOGY

Pure and UltraPure Water

Strong presence in Europe & Asia, Industrial Markets

2010 Creation of

OVIVO Umbrella Brand


Pulp & Paper Division Sold for 67M$ to GLV’s Founding Family on Nov. 28, 2014

Creating a Leading Pure Water Treatment Company

Ovivo to focus on its core competency: water treatment products & solutions

Increased management attention & time towards higher growth industry

Dedicates financial resources to the growth of Ovivo

Simplifies the story for investors & increases market awareness

Reduces corporate expenses by 6M$

Strengthening Ovivo’s Balance Sheet

Upfront cash proceeds of 64M$ (including transfer of debt), plus 3M$ of balance of sale

Implementation of new lines of credit totalling 140M$ available for general corporate

purposes (60M$) and letters of credit guaranteed by EDC (80M$)

Positioning Ovivo for Future Growth

Liquidity available to fund organic growth objectives

Paves the way for growth via acquisitions

WE BECAME A PURE WATER TREATMENT COMPANY

Pulp & Paper Divestment Rationale


MAJOR TRANSFORMATION IN FY2015

Highlights of Key Divestments

Pulp & Paper

Sold on November 28th, 2014 for 67M to GLV’s founding family

GLV Inc. changed its name to Ovivo Inc. on December 18th, to reflect the company’s

100% focus on water treatment

Van Der Molen

Sold in December 2014 to Radial Capital Partners, a German Private Equity

Municipal UK

Sold in February 2015 to Jacopa Ltd (MBO)

Middle East desalination business

Sold certain trademarks and client references for turnkey projects in February 2015

Currently taking actions to divest other non-core water businesses

Letters of intent or protocols of understanding have already been signed with certain

parties, and we are confident to complete these divestitures in FY2016


on 3 KEY SEGMENTS

FOCUSING

• Strong platform and favorable market

environment in North America

• Large installed base (Eimco Water

Technologies, Brackett Green,

Enviroquip)

• Good global market growth

• Integrated solutions

• Large installed base (Chris Kennicott,

Brackett Green, Eimco Water

Technologies)

• Strong knowhow and large

installed base

• Member of prestigious F450C

Consortium

• Recurring revenues

• End-user proximity

• Profitability

• Leveraging Ovivo’s impressive installed base

AND A MAJOR

DEVELOPMENT AXIS

Municipal Energy Electronics

Upgrading, Parts

and Services


MANAGEMENT TEAM

Marc Barbeau

President &

Chief Executive Officer

Michel Guénette

Vice President

Information

Technology

Pierre-Marc Sarrazin

Director

Corporate Finance

and Treasury

France De Blois

Vice President

Finance

Kaveh Someah

Vice President

Global Energy

Jim Porteous

Vice President

Municipal

North America

Malek Salamor

Vice President

Electronics

Gwen Klees

Vice President

Legal Affairs,

Risk Management &

Corporate Secretary

Marie-Pierre Lavallée

Global Director

Human Resources


GLOBAL PLATFORM FOR GROWTH

(1) Note: All information LTM as at March 31, 2015

Ovivo Segmented Revenues (1)

Global platform

providing the ability to

target the best growth

opportunities worldwide

Present in approximately 15 countries,

including many high-growth emerging

economies

Geographically diversified revenue base

Worldwide equipment installed base

providing significant high-margin after

market business

Locations – Worldwide

Canada

U.S.A.

U.K.

France Austria

Singapore

India

China

United Arab

Emirates

Switzerland

Germany

Holland

Australia

North America

61%

Europe

23%

Other

16%

New Equipment

74%

Parts & Services

26%


PRODUCTS & MAJOR BRANDS


BROAD SCOPE OF WATER TREATMENT

Expertise & Capabilities

Solutions Industries Served Municipalities Served

Power Municipal

Wastewater Electronics

Reclaim Systems / Water Reuse

Ultrapure Water

Wastewater Treatment

Process Water Treatment

Water Intake Solutions

Ovivo’s technological know-how allows us to offer a broad scope of water treatment

solutions to clients in specific industries

Oil & Gas


-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Revenues

Parts & Services Capital

IMPROVING OPERATING PERFORMANCE

Focus on 3 Key Segments and Parts & Services

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

-$2.0

-$1.0

$-

$1.0

$2.0

$3.0

$4.0

$5.0

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Adjusted EBITDA (M$) (M$)

Gradual performance improvement while Ovivo focuses on its core businesses

P&S Organic Growth was 24%

between Q4-15 and Q4-14


FUTURE GROWTH STRATEGY

In an Industry with Attractive Long-term Fundamentals

Key S

eg

me

nts

Increase proportion of proprietary

products, with a focus on recurring

revenues

Strengthen service levels &

continue building strong

customer/end user relationships

Further deploy smart technologies

and interconnectivity

Enhance innovation and proprietary

product development capabilities

Strengthen the total lifecycle

approach and customer service

culture

Provide a wider range of proprietary

products

Drive global market growth by

offering integrated solutions to

clients

Improve the supply chain process

Grow presence in Oil & Gas sector

Organic

Growth

Strategy

M&A

Growth

Strategy

Pursue selected acquisitions

Selected acquisitions could be

envisioned in order to increase

high tech portfolio profile,

consolidate the market, expand in

complimentary markets or expand

current product offering

Currently not focusing on M&A as

internal expertise & capabilities

required to execute strategic plan

already in-house

Pursue selected acquisitions

Selected acquisitions could be

envisioned in order to expand

current product offering and

enhance technology portfolio

Ovivo’s addressed market is >52B$ / year is growing at an annual rate of ~7%*

Ovivo intends to focus its efforts on developing and strengthening it’s worldwide

presence in its 3 key segments, both organically and through acquisitions

* Source: GWI 2013


Outlook:

Municipal North American:

Very well positioned, supported by a high backlog and a good level of order taking

Market conditions conducive to the use of modern technologies such as MBR systems, a growing market in which we hold a dominant position in North America

Energy:

Good level of order taking since January 2015, after being impacted by the fall in oil prices during the first three quarters of FY2015

Positive outlook for business volumes in the coming months across all our geographic regions

Electronics:

Lower backlog following the gradual execution of the large projects booked in early fiscal 2014

We anticipate a certain shift in demand towards Asia in FY2016

Parts & Services:

Will pursue the development of this market, leveraging our products’ Total Life Cycle approach and the recognition of Ovivo’s heritage brands

Focus on the Middle East and Southeast Asia to better capitalize on opportunities arising from our sizable pool of equipment in operation

OUTLOOK FOR FY2016


Management Objectives for FY2016:

1) Grow our Electronics and Energy backlogs

2) Improve our operating performance

3) Complete the sale of our non-core businesses

4) Continue growing revenues in the Parts and Services segment

5) Reduce our net indebtedness

Key Investment Considerations:

Ovivo is an international Canadian company with almost 40 years of history

A global presence in a high growth industry, water treatment

A business strategy that takes advantage of recurring revenues

A portfolio of quality products and services that reduce the environmental footprint of its customers

A portfolio of recognized brands

MANAGEMENT OBJECTIVES FOR FY2016

& KEY INVESTMENT CONSIDERATIONS


Thank you for your interest!

Investor Presentation - Worldwide Experts in Water Treatment · Investor Presentation June 2015 All numbers are in CA$ ... Ovivo Inc. is a global company dedicated to water and wastewater

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