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
• 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.
5. 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”)
6. REVERSE OSMOSIS DESALINATION
• Well or direct sea intake
• Seawater pre-treatment
• High pressure pumps
• RO membranes
• Energy intensive/recovery
• Post treatment
7. OUR LOCATIONS
• Cayman Islands
• The Bahamas
• Belize
• The British Virgin Islands
• Bali
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
* Production capacity is in millions of U.S. gallons per day.
9. COMPETITIVE ADVANTAGES
• Use of best available technology.
• Incorporation of operating experience in plant
designs.
• Highly efficient plants.
10. COMPETITIVE ADVANTAGES
• Long term contracts with hedges for energy and
operating costs.
• “Turn Key” customer solutions.
• Niche market focus.
12. NINE MONTHS ENDED SEPTEMBER 30
0
10
20
30
40
2015 2014
43.8 50.3
17.5 18.0
5.9 5.3
Revenues
Gross Profit
Net Income
Millions
13. FINANCIAL CONDITION AT SEPTEMBER 30, 2015
0
20
40
60
80
100
120
140
160
180
7.5
50.2
144.2
161.2
Total Debt
Working Capital
Stockholders' Equity
Total Assets
Millions
14. OUR GROWTH STRATEGY
• Expanding our existing
operations into new markets.
• Complementary services.
15. NEW MARKETS - BALI, INDONESIA
• Plant built in Nusa Dua, Bali’s
premier tourist region.
• Major development underway of
new resorts and luxury
residences.
• Existing water supplies incapable
of meeting incremental demand.
16. NUSA DUA, BALI PROJECT
• Demonstration plant involving
market risk.
• Capacity of 750,000 gallons/day.
• Expandable to 1.5 million
gallons/day.
• Competition/factors for success.
17. 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 by
2020: 68%.
– Projected population increase of San Diego by
2020: 70%.
18. ROSARITO MEXICO PROJECT
• Proposed 100 MGD desalination plant.
• $500-600 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.
19. ROSARITO MEXICO PROJECT - ACHIEVEMENTS
• Acquired strategically-located site
for plant.
• Leased land within federal power
plant for ocean water
intake/discharge.
• Pilot Plant/Seawater Testing –
Phase I completed, Phase II
underway.
• Obtained environmental permits for
desal plant and conveyance
pipeline.
20. ROSARITO MEXICO PROJECT - ACHIEVEMENTS
• Project framework: Public-private
partnership legislation enacted in
August 2014.
• Submitted detailed public-private
partnership proposal to Baja Govt.
• Official tender process commenced
November 2015 with tender
submission deadline of March 23,
2016