2. 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.
3. WORLDWIDE WATER OPPORTUNITY
• Water use increased six-fold during the 20th century, more than twice the rate of
population growth.
• By 2025 it is estimated that 1.8 billion people will live in countries or regions experiencing
absolute water scarcity.
• 97% of the Earth’s water is in its oceans.
Source: United Nations inter-agency
coordination mechanism for all
freshwater related issues, including
sanitation.
4. OUR BUSINESS
We design, build, finance and
operate seawater desalination
plants and water distribution
systems that provide potable water
in locations where naturally-
occurring freshwater supplies are
limited or non-existent.
Traded on the NASDAQ Global
Market (“CWCO”)
6. REVERSE OSMOSIS DESALINATION
• 30 years of operating
experience
• Most energy-efficient desal
process
• Small environmental footprint
• Easily incorporates renewable
energy sources
• Modular/expandable
• Bottled water quality
7. OUR LOCATIONS
• Cayman Islands
• The Bahamas
• United States
• Belize
• The British Virgin Islands
• Bali
• Mexico (under development)
8. 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
Mexico (under development) 1 50.0+50.0
* Production capacity is in millions of U.S. gallons per day.
9. COMPETITIVE ADVANTAGES
• Dominant presence in two main
markets.
• Incorporation of LT operating
experience in plant designs.
• Highly energy-efficient plants.
• Ability to provide “Turn Key”
customer solutions.
10. INVESTMENT ADVANTAGES
• Contracts provide strong cash
flows.
• Long term contracts with hedges
for energy and operating costs.
• Efficiency improvements increase
profitability.
• In-house manufacturing
capabilities.
11. THREE MONTHS ENDED MARCH 31
0
5
10
15
20
2017 2016
15.7
14.0
6.8 6.2
2.6 2.1
Revenues
Gross Profit
Net Income
Millions
12. FINANCIAL CONDITION AT MARCH 31, 2017
0
20
40
60
80
100
120
140
160
180
0.9
56.8
147.3
167.2
Total Debt
Working Capital
Stockholders' Equity
Total Assets
Millions
13. OUR GROWTH STRATEGY
• Expanding Bulk and
Services businesses into
new markets.
• Adding Complementary
businesses.
14. NEW MARKETS – MEXICO
ROSARITO, BAJA CALIFORNIA PROJECT
• 100 MGD Seawater desalination
plant in two phases of 50 MGD.
• 19 mile aqueduct to connect the
plant to the Mexican public
water system.
• $500 million estimated cost.
• Financing by third party non-
recourse debt and equity.
• CWCO will own minority position
in plant and participate in plant
operation and maintenance.
15. ROSARITO PROJECT - ACHIEVEMENTS
• 2012 - Secured strategically-located site
for plant.
• 2012 – Obtained lease for land within
federal power plant for seawater intake
and discharge.
• 2014 (Aug.) – State of Baja enacts new
legislation to regulate Public Private
Partnerships and allow for unsolicited
infrastructure proposals.
• 2015 (Mar.) – Obtained last major
environmental permit for the project.
16. ROSARITO PROJECT - ACHIEVEMENTS
• 2016 (Apr.) - Official tender
submitted by CWCO-led
consortium.
• 2016 (Jun.) – State designates
CWCO-led consortium as winner of
tender.
• 2016 (Aug.) – Public Private
Partnership Agreement executed for
the Project.
17. ROSARITO PROJECT – KEY PROJECT INFORMATION
• CWCO-led consortium
• Suez – engineering,
procurement and construction
contractor – turn key, fixed price
contract for plant and aqueduct.
• Bank consortium led by North
American Development Bank.
• Evercore Mexico – financial
advisor and investment banker.
• CWCO/Suez JV to operate the
plant.
• Long term power purchase agreement
under liberalized electricity market.
• PPP Law and our Contract allow (but
do not guarantee) tariff adjustments to
compensate for changing macro
economic conditions.
• NEXT STEPS ……
18. ROSARITO PROJECT – REMAINING CONDITIONS
TO BE MET BEFORE COMMENCEMENT OF PROJECT
• State water agency to establish and register various
payment trusts, guaranties and bank credit lines.
• State water agency must obtain seawater allocation
permit the relevant federal authority.
• Water purchase and sale agreements between the
payment trusts and the State water agencies must be
executed.
• Acquire rights of ways for the aqueduct.
• Federal residual water discharge permit.
• Execute debt and equity agreements.
19. NEW MARKETS & COMPLEMENTARY SERVICES
AEREX INDUSTRIES
• Acquired 51% interest in Aerex Industries on
February 11, 2016.
• Original equipment manufacturer and
service provider for municipal water
treatment and industrial water and
wastewater treatment.
• Products include membrane separation
equipment, filtration equipment, piping
systems, vessels and custom fabricated
components.
• Represents CWCO entry into new U.S.
markets for manufacturing and future
operations.
