TSXV:HEO

Corporate & Investors PresentationH2O Innovation

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August 2019Presented by :

Frédéric Dugré, CEO & President

TSXV:HEO

Our Business Pillars and Business Lines

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1. Water & Wastewater

Projects, and Services2. Specialty Products

3. Operation &

Maintenance

W, WW, WR

Systems

Digital

Solutions

Couplings &

Filter Housings

Specialty

Chemicals

Operation &

Maintenance

Maple farming

equipement

Aftermarket

Services

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

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H2O’s OFFICESHead Office: Québec, QC, CAN

Manufacturing Plants: Ham-Nord, QC, CAN

Champlin, MN, USA

Vista, CA USA

Engineering & Sales Offices: Burlington, ON, CAN

Calgary, AB, CAN

Bilbao, SP, EUR

Other (franchises, stores): Swanton, VT, USA

Saint-Louis-du-Ha!-Ha!, QC, CAN

H2O Mexico, Cancùn, MEX

Operations & Maintenance: Gulfport, MS, USA

Claremont, NH, USA

Las Vegas, NV, USA

Forsyth, GA, USA

Kananaskis, AB, CAN

Spring, TX, USA

Totalling

675

employees

in North

America &

Spain

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Revenues, Business Mix and Adjusted EBITDA

In CAD million $

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0.0 $

1.0 $

2.0 $

3.0 $

4.0 $

5.0 $

6.0 $

7.0 $

8.0 $

9.0 $

10.0 $

0.0 $

20.0 $

40.0 $

60.0 $

80.0 $

100.0 $

120.0 $

140.0 $

Projects SP&S O&M Adj EBITDA

Reven

ues

EB

ITD

A

Unique Growth Platform (+750 systems

installed)

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Unique Value-Proposition

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Water & Wastewater

Projects, and Services

Specialty Products

Operation & Maintenance

Our Strategy Water

Utilities

Maximize customers’ retention by

serving Water Utilities through an

integrated approach and in-depth water

and membrane expertise.

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1st Business PillarWater & Wastewater Treatment Projects, and Services

• > 750 systems installed

• Strong membrane expertise

• Feed the aftermarket sales with

recurring consumables

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1st Business Pillar – ProjectsWater & Wastewater Treatment Projects, and Services

Montevina, (CA)

Drinking Water

(30.0 MGD)

Data Center, (OR)

Process & Water Reuse

(1.7 MGD)

Decatur, (AR)

Wastewater

(4.6 MGD)

Sherman, (TX)

Drinking Water

(5.0 MGD)

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36%

64%

Q3 - FY2019

Industrial

Municipal

27%

73%

Q3 - FY2018

38%

62%

Q3 - FY2019

Wastewater

Water

23%

77%

Q3 - FY2018

1st Business Pillar - Backlog DiversificationWater & Wastewater Projects, and Aftermarket

Decatur, AK• 4.6 MGD

• Municipal

Wastewater

WaterHub, VA• 1.2 MGD

• Industrial

Wastewater,

Water Reuse

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North American BWRO & SWRO Desalination Forecast

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2nd Business PillarSpecialty Products

25 Piedmont Distributors

25 PWT Distributors

50 Maple Distributors

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2nd Business PillarSpecialty Products (all manufactured in USA)

Products

Membrane Pretreatment

• Coagulants & Flocculants

• Scale Inhibitors

• Antifoulant

Membrane Cleaners

• Lavasol

• OptiClean

• Biocides

Membrane Preservation

• Preservol

Services

• On-site & off-site membrane cleaning

• Water Analysis

• Membrane Autopsy

• Etc.

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2nd Business PillarSpecialty Products

Product Lines

Couplings

FRP Filter Housings

Self-Cleaning Screen Filters

Self-Cleaning Disc Filters

Complementary Products

2013 2015 2016 2017 2018

Evolution of Piedmont’s Product Offering

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2014 2019

Piedmont’s

acquisition by H2O

Innovation

Launch of new FRP

cartridge filter

housingsLaunch of new disc

and self-cleaning

filters

Since it’s Acquisition by H2O Innovation

Creating value by:

• Growing product offering

• Leveraging sales network

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Global Desal Market Forecast CapEx & OpEx

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CapEx >24 million m3/d

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3rd Business Pillar - ContractsOperation & Maintenance (O&M)

Services

Water & Wastewater Operation & Maintenance

Billing & Collection Services

Additional Services

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3rd Business PillarOperation & Maintenance (O&M)

As of today:

• 82 Contracts

• 11 States | 2 Provinces

• 135 Water Systems

• 44 Wastewater Facilities

• 435 Employees

Q3-FY2019Activity per Business Pillar

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$9.8 M

$40.2 M

$55.0 M

Q3-FY2019

3-month Revenues LTM Revenues

Backlog

$7.8 M

$23.3 M

Q3-FY2019

3-month Revenues LTM Revenues

$9.1 M

$35.7 M

$68.1 M

Q3-FY2019

3-month Revenues LTM Revenues

Backlog

Our Business Model Promotes Synergies and Customer Retention

Example: Partnership with Sustainable Water

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Synergies in this project:

• $3.2 M Capital Equipment

Project➢ flexMBRTM Technology;

➢ RO system;

➢ IntelogxTM 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.

Corporate InformationTSX Venture : HEO / OTCQX : HEOFF

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Board of Directors :

Lisa Henthorne, ChairmanCTO Water Standard, Former IDA Chairman

Frédéric Dugré, President & CEOMechanical Engineer, Founder

Richard Hoel, DirectorLawyer, Founding partner of Winthrop & Weinstine

Stephen A Davis, DirectorManaging Partner, Ventry Industries LLC

René Vachon, DirectorFormer CFO of Miranda Technologies

Pierre Côté, DirectorFormer CTO of Zenon / GE

Robert Comeau, DirectorFormer CFO of Lumen Pulse

Shares outstanding : 55,889,000

2.5 million of options

Officers & Directors: 10% (on a fully diluted basis)

Institutional: 60% (IQ: 18% /BDC: 13% / CDPQ: 11%)

Officers :

Frédéric Dugré, President & CEO

Marc Blanchet, CFO

Guillaume Clairet, COO

Management :

Greg Madden, V.P. – Aftermarket & Digital Solutions

Denis Guibert, V.P. – Engineering & Projects

Rock Gaulin, V.P. – Manufacturing & Operations

Bill Douglass, V.P. – Operation & Maintenance

Advisors to the Board :

Elisa M. SperanzaFormer Senior VP and Corporate Director, CH2M Hill OMI

Leonard GrazianoFormer President and CEO, Severn Trent Services, Inc.

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H2O InnovationUnique 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