q4 fy21 investor marketing presentation

Investor Marketing PresentationSeptember 2021

© 2021 EVOQUA WATER TECHNOLOGIES | 2

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among other things, general global economic and business conditions, including the impacts of the COVID-19 pandemic and disruptions in global supply chains; our ability to compete successfully in our markets; our ability to execute projects on budget and on schedule; the potential for us to incur liabilities to customers as a result of warranty claims or failure to meet performance guarantees; our ability to meet our customers’ safety standards or the potential for adverse publicity affecting our reputation as a result of incidents such as workplace accidents, mechanical failures, spills, uncontrolled discharges, damage to customer or third-party property or the transmission of contaminants or diseases; our ability to continue to develop or acquire new products, services and solutions and adapt our business to meet the demands of our customers, comply with changes to government regulations and achieve market acceptance with acceptable margins; our ability to implement our growth strategy, including acquisitions and our ability to identify suitable acquisition targets; our ability to operate or integrate any acquired businesses, assets or product lines profitably or otherwise successfully implement our growth strategy; our ability to achieve the expected benefits of our restructuring actions; material and other cost inflation and our ability to mitigate the impact of inflation by increasing selling prices and/or improving our productivity efficiencies; our ability to accurately predict the timing of contract awards; delays in enactment or repeals of environmental laws and regulations; the potential for us to become subject to claims relating to handling, storage, release or disposal of hazardous materials; our ability to retain our senior management and other key personnel and to attract key talent in increasingly competitive labor markets; our increasing dependence on the continuous and reliable operation of our information technology systems; risks associated with product defects and unanticipated or improper use of our products; litigation, regulatory or enforcement actions and reputational risk as a result of the nature of our business or our participation in large-scale projects; seasonality of sales and weather conditions; risks related to government customers, including potential challenges to our government contracts or our eligibility to serve government customers; the potential for our contracts with federal, state and local governments to be terminated or adversely modified prior to completion; risks related to foreign, federal, state and local environmental, health and safety laws and regulations and the costs associated therewith; risks associated with international sales and operations, including our operations in the People's Republic of China; our ability to adequately protect our intellectual property from third-party infringement; risks related to our substantial indebtedness; our need for a significant amount of cash, which depends on many factors beyond our control; and other risks and uncertainties, including those listed under Part I, Item IA. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed with the SEC on November 20, 2020, and in other filings we may make from time to time with the SEC. All statements other than statements of historical fact included in the presentation are forward-looking statements, including, but not limited to, statements regarding end market demand, growth drivers, potential benefits of our outsourced water offerings, expected IRR on outsourced water projects, expected contract renewal rates, planned product launches and our digital business strategy. Any forward-looking statements made in this presentation speak only as of September 28, 2021. We undertake no obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this presentation.Immaterial rounding differences may be present in the data included in this presentation. Use of Non-GAAP Financial Measures - This presentation contains financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP adjusted financial measures are provided as additional information for investors. We believe these non-GAAP adjusted financial measures, which include EBITDA, adjusted EBITDA, adjusted EBITDA margin, organic and inorganic revenue, net debt, net leverage ratio, adjusted free cash flow, adjusted free cash flow conversion, adjusted net income and Integrated Solutions and Services segment backlog, are helpful to management and investors in highlighting trends in our operating results and provide greater clarity and comparability period over period to management and our investors regarding the operational impact of long-term strategic decisions as to capital structure, the tax jurisdictions in which we operate and capital investments. The presentation of this additional information is not meant to be considered in isolation or as a substitute for GAAP measures. For definitions of the non-GAAP adjusted financial measures used in this presentation and reconciliations to the most directly comparable respective GAAP measures, see the Appendix to this presentation.

Forward-looking statement safe harbor and non-GAAP financial information


FINANCIAL HIGHLIGHTSLTM Q3'21

Evoqua Water Technologies overview At a glance

$1.4B revenue $245M adjusted EBITDA17% adjusted EBITDA margin

WHAT WE DO

Serve a large, growingand fragmented market

Support full water lifecycle needs

Ensure uninterrupted quantity & quality of water

Across North America, Europe, Asia Pacific

Across multiple end markets

WHO WE ARE

A leading provider of mission critical water and

wastewater treatment solutions

100+ year legacy of quality, expertise and

innovation

Headquartered in Pittsburgh, PA

160 locations across 10 countries(1)

4,000+ employees(1)

38,000+ customers(1)

200,000+ installations worldwide(1)

HOW WE DO IT

Two segments

Integrated Solutions & ServicesApplied Product Technologies

17 acquisitions since 2016

New product development

Products, technologies & systems

Services

Water One® worry-free digital water management platform

Outsourced water subscription based model

Strong liquidity and cash generation

WHY WE DO IT

Water is a critical yet finite resource

Issues of water scarcity and contamination

Help ensure water is safe, reliable and available - now and for future generations

Let customers focus on their core competencies while we focus on ours

Sustainability is our responsibility and our opportunity… it's what

we do every day

$179M operating cash flow$150M adjusted free cash flow

(1) Data as of September 30, 2020


Evoqua making wavesEVOQUA NAMED AS "2021 BEST EMPLOYER" BY FORBES

The recognition is made even more special given the exceptionally challenging year in 2020 with the pandemic's impact. We are very fortunate to have a team of the best and the brightest in the industry dedicated to our company's success. Ron Keating, CEO

EVOQUA EARNS PLACE ON 2021 CLEAN200TM LIST

The Clean200 list is an annual recognition of publicly traded companies that are leading the way with solutions for the transition to a clean energy future.

EVOQUA HONORED WITH 2020 FROST & SULLIVAN GLOBAL COMPANY OF THE YEAR AWARD

Evoqua received the 2020 Frost & Sullivan Global Company of the Year Award in the Global Water Technologies category

Recognized for robust revenue growth, dual-pronged approach to solutions & services, comprehensive customer-centric strategy and cutting-edge technological advancements


$85 BILLION ADDRESSABLE

MARKET(1)

$16 BILLION SERVED MARKET (1)

$600 BILLION GLOBAL WATER MARKET(1)

(1) Management Estimates

• Water treatment

• Technology and innovation

• Service and support

• North America / Europe / Asia

Pacific

• Chemicals

• Water transportation

• Meters / pumps / valves

• Design and construction

Serving a large, growingand fragmented market

WE SERVE $16 BILLION OF AN $85 BILLION MARKET (1)

ACROSS A DIVERSE, GROWING SET OF SECTORS

OF WHICH ~$10 BILLION INDUSTRIAL & ~$6 BILLION MUNICIPAL(1)

FOOD & BEVERAGE

AQUATICS

MICROELECTRONICS

HEALTHCARE & PHARMA

MUNICIPAL DRINKING WATER

POWER

MUNICIPAL WASTE WATER

CHEMICAL PROCESSING

LIGHT & GENERAL INDUSTRY

WE HOLD TOP POSITIONS ACROSS OUR END MARKETS

REFINING MARINE

ADDRESSED MARKETS UNADDRESSED MARKETS


$507 $516 $520 $529 $538 $537 $536 $538 $551 $563 $581 $593 $600 $604 $594 $590 $582 $581 $592

$656 $677 $690$718 $727 $761 $794 $802 $815 $818 $817

$851 $868 $867 $864 $840 $823 $820 $831

$1,163 $1,193 $1,210$1,247 $1,265 $1,298 $1,330 $1,340 $1,366 $1,381 $1,398

$1,444 $1,468 $1,471 $1,458 $1,430 $1,406 $1,401 $1,422

Services Products

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

ROLLING LTM REVENUE AND ADJUSTED EBITDA

($ in millions)

Adj. EBITDA(1)

%

(1) Historical results include Memcor. Annual revenue ~$60 million and ~$14.4 million in FY19 and FY20, respectively. Annual adjusted EBITDA ~$8.1 million and ~$1.3 million in FY19 and FY20, respectively.

LTM revenue and profitability developmentCAGR

8.1% adjusted EBITDA

Adj. EBITDA(1)

($M)

3.5% Services

5.4% Products

4.6% Total

$172 $186 $196 $208 $210 $224 $227 $217 $215 $214 $217 $235 $240 $240 $243 $240 $241 $242 $245

14.8% 15.6% 16.2% 16.7% 16.6% 17.3% 17.1% 16.2% 15.8% 15.5% 15.5% 16.3% 16.4% 16.3% 16.7% 16.8% 17.1% 17.3% 17.2%

Sales impacted by Memcor divestiture 12/31/2019(1)

~$60M FY19 and ~$14M FY20


PRIMARY END MARKETS

EXPECTED DEMAND OUTLOOK 2H FY20-FY21(2)

PERCENTAGE OF SALES (FY19)(1)

Light & General Industry

Healthcare / Pharma / Biotech

Chemical Processing(3)

Municipal Drinking Water

Refining Marine

PRIMARY END MARKETS

EXPECTED DEMAND OUTLOOK 2H FY20-FY21(2)

Municipal Waste Water

Power

Micro-electronics

Aquatics

Food & Beverage

Evoqua's end market order demand outlookOutlook as of August 3, 2021

(1) Management estimates; denoting approximate relative size of each end market(2) As previously reported for prior quarters, and Q4 2021 expected order demand compared to Q4 2020(3) Q4 2021 outlook accounts for YOY challenging comparable

KEY DEFINITION

Growth

Neutral

Slight Decline

Decline

LOW

/ M

ID S

ING

LE D

IGIT

S~

20%

Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4


Evoqua + microelectronics Providing industry-leading innovation and performance

DID YOU

KNOW?

IT TAKES ~1,500 GALLONS OF ULTRAPURE WATER TO PRODUCE A SINGLE 300 MM WAFER

END MARKET NEEDS EVOQUA OFFERINGS

ISS - selling integrated solutionsUltrapure process water systems Wastewater systems Service and maintenance contractsAftermarket

APT - selling products & technologyIonpure electrodeionizationMagneto Specialty AnodesAdvanced disinfection / ATG UVSolids management

SEMICONDUCTOR PROCESSES REQUIRE ULTRAPURE WATER, THE PUREST WATER POSSIBLE

EVOQUA'S IONPURE® IS A LEADING TECHNOLOGY FOR THE MICROELECTRONICS INDUSTRY

PCB* ManufacturingMagneto anodes are critical in the manufacture of PCBs to precisely layer metal conduits and connection nodes’

UltraPure Process WaterFrom FAB plant to upstream supply chain providers for high-performance materials

Wastewater TreatmentReuse, reclaim and recycle drives economic ROI and sustainability initiatives

*Printed circuit board


Sustainability Our responsibility and our opportunity

At the core of our business, we transform water and enrich life. Sustainability drives our business decisions to uphold transparent business practices, maintain a resilient business strategy, improve our environment and serve our employees and communities. Enabling a more sustainable water system for future generations is both our opportunity and our responsibility. Ron Keating, CEOSUSTAINABLE: OUR COMMITMENT

TO TODAY AND TOMORROW


Sustainability in actionRecent customer wins

REMOVAL OF PFAS FROM DRINKING WATER

In FY21, we were awarded another order from a municipal drinking water treatment plant in California to provide a turn-key solution with a 3-year service contract to remove PFAS chemicals. Evoqua’s solution includes 6 vessels, ion exchange media, and service through 2024. The 3-year service contract also includes extended service for our previously installed granular activated carbon solution on another well site, which is also online to treat PFAS and other emerging contaminants.

OUR HANDPRINTEnabling our customers to become more sustainable through our solutions and service offerings

WATER REUSE TO MEET COMMUNITY NEEDS

In FY20, after facing community drought in Southern California, we helped Air Products save up to 75 million gallons of water/year. Our Brine Recovery RO enables water reuse that is monitored in real time via our digital Link2Site® system to ensure performance, reduce freshwater withdrawal, and build resilience into the business.

This Public Private Partnership is helping Air Products to meet their 2020 Sustainability Goals.

BUILDING MORE RESILIENT WASTEWATER TREATMENT WITH INNOVATION

In FY20, BioMag® and CoMag® systems have received market acceptance. With their small footprint, remarkable resilience to input changes, and contaminant removal capabilities, customers know they can rely on the treatment provided by our Ballasted Technologies. These technologies just surpassed 100 Billion Gallons of wastewater treated. These technologies treat the wastewater for nearly 500,000 people every day.

MAKING RENEWABLE ENERGY EVEN MORE SUSTAINABLE

In FY20, we worked with a biodiesel manufacturer in the Midwest to provide our AnMBR with biological biogas scrubber solution to generate roughly 353,000 ft3/day of biogas. This customer will convert the 230 mmBTU/day of green energy, the equivalent energy needs for over 500 homes a year, into Renewable Natural Gas (RNG) as a second phase of the project from their facility’s wastewater treatment to make the production of their renewable fuel even more efficient and sustainable.

Use of the SDG logos or icons does not imply the endorsement of the United Nations. Learn more: https://www.un.org/sustainabledevelopment

https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.un.org%2Fsustainabledevelopment&data=04%7C01%7Cnicole.lewis%40evoqua.com%7C0dff52d7da27495efae008d8dd1b025c%7C56563175ba0344949111f46a2f2dc18c%7C0%7C0%7C637502455362159631%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=4Lb3AOdtCyGq7MR%2Bovm7jei7%2B0pG7l4SRncSeFiuMmk%3D&reserved=0


Sustainability in action

OUR FOOTPRINTEvoqua’s responsibility to become more sustainable in our internal operations

Our commitment to sustainabilitySustainability is one of our core values. We are working to be more sustainable within our own operations and in how we enable our customers to meet their sustainability goals.

Sustainability is our business modelOur offerings are aligned with the UN Sustainable Development Goals(1)

In fiscal 2020, we achieved a 30% reduction in accident totals compared to fiscal 2019(2)

(1) Use of the SDG logos or icons does not imply the endorsement of the United Nations. Learn more: https://www.un.org/sustainabledevelopment(2) Accidents are represented as OSHA defined recordable accidents.

We are committed to ensuring safe, clean and reliable water quality and quantity.

We know traditional water treatment can be energy intensive, that’s why ensure our solutions are energy efficient and produce renewable energy from wastewater through anaerobic digestion.

Through integrated Smart Water solutions, we are able to achieve water, energy, product and service efficiency.

We provide solutions and services to support disinfection and sanitization.

We are proud to offer solutions to reduce water stress through water reuse and recycling technologies.

To mitigate the effects of extreme weather, we have one of the largest fleets of temporary and rapid response mobile units in North America.

https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.un.org%2Fsustainabledevelopment&data=04%7C01%7Cnicole.lewis%40evoqua.com%7C0dff52d7da27495efae008d8dd1b025c%7C56563175ba0344949111f46a2f2dc18c%7C0%7C0%7C637502455362159631%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=4Lb3AOdtCyGq7MR%2Bovm7jei7%2B0pG7l4SRncSeFiuMmk%3D&reserved=0


Integrated Solutions and Services Overview

▪ North America focused with extensive• Service branch footprint• Fleet of mobile response

equipment▪ Full outsourced water solutions▪ Direct sales channel▪ Technology agnostic solutions▪ Digitally enabling 24/7 asset

monitoring▪ Process and wastewater solutions

• Recycle / reuse – environmental compliance

$928M revenue

(1) Excludes certain corporate allocations

Service61%

Aftermarket13%

Capital26%

FINANCIAL HIGHLIGHTS

LTM Q3'21

$209M adjusted EBITDA(1)

23% adjusted EBITDA margin

▪ Outsourced water, digitally enabled• ~1/3 FY20 segment revenue

outsourced water• ~20% FY20 segment revenue

digitally connected• highly recurring, profitable

▪ Emerging contaminants / wastewater• long-term, complex challenges

requiring multiple treatment solutions

• PFAS, micro-plastics, heavy metals

▪ Vertical market focused

ISS SEGMENT OVERVIEW MACRO DRIVERS ORGANIC GROWTH DRIVERS

▪ Climate change

▪ Digitization

▪ Resource scarcity

▪ Rising energy costs

▪ Water scarcity

▪ Health & wellness

▪ Regulatory

▪ Aging infrastructure


Integrated Solutions and ServicesUnmatched service and support network...

RANGE OF SERVICE CAPABILITIES

…drives a recurring and highly visible revenue profile

SERVICE ADVANTAGES

▪ ~4x the size of nearest competitor(1)

▪ 2 hours from ~ 90% of industrial customers

▪ ~930 employees in field service and application engineering roles(2)

▪ 92 U.S. service branches(2)

Water One® SERVICES(per usage)

ON-DEMAND SERVICES(As needed)

OPERATING SERVICES(Weekly to daily)

PREVENTATIVE MAINTENANCE (Quarterly to monthly)

(1) Management estimates.(2) As of 9/30/2020


Integrated Solutions and Services technologiesDivisional structure

HEAVY INDUSTRY

• Rapid response mobile services • On-site treatment services • Groundwater remediation• Industrial degassing / hydrostatic

testing

LIGHT INDUSTRY

MUNICIPAL SERVICES

• Odor and corrosion control• Disinfection capabilities • Temporary/emergency systems• Chemical feed controls and

measurement

• Preventative maintenance services• Rapid response mobile services• Water One®

• Process and Wastewater systems

Power

HPI/CPI

Food & Beverage

Pharmaceutical

Healthcare

Microelectronics

Municipal

Manufacturing

Government

KEY END MARKETS

PROACT ENVIRONMENTAL SERVICES (PES)


Total ISS backlog ($M) $ 446 $ 526 $ 634 $ 745 $ 712 Service/AM backlog1 $ 360 81% $ 386 73% $ 538 85% $ 587 79% $ 599 84%Capital backlog2 $ 86 19% $ 140 27% $ 95 15% $ 158 21% $ 114 16%

ISS backlog composition - FY 2018 to Q3 2021

Strong Q3 capital backlog growth; service and capital pipeline remains robust

$ in millions

24.8%

1 Service/Aftermarket backlog is a non-GAAP metric that includes outsourced water (consisting of mobile fleet, service deionization and build-own-operate assets), service contracts on customer owned equipment, municipal services and carbon services. There is no comparable GAAP metric to which we can reconcile Service/Aftermarket backlog.2 Capital backlog is the portion of our GAAP reported backlog that is attributable to our ISS segment.

Capital averages ~9-12 months

Mobile fleet - less than 1 year to 5+ years

Service deionization -averages ~1-2 years

Build-own-operate - averages ~8-10 years

90%+ renewal

20.6%

19.5%

REVENUE CONVERSION

TIMING

CAGR

Total Backlog Service/Aftermarket (AM) Backlog Capital Backlog

FY18 FY19 FY20 Q3'FY21$—

$200

$400

$600

$800

$1,000

Q2'FY21


Order value - capital Order value - service Capital revenueService revenue Aftermarket revenue

Book Order Build-out Year 2 Year 3 Year 4$—

$3

$5

$8

Capital order lifecycleIllustrative example of a $5M capital order

Model information presented on this slide for example only and involves risks and uncertainties. Actual results may differ materially from this information. Please review our SEC filings for a discussion of these risks and uncertainties.

$ revenue in millions

Assumptions:– $8M total order:

• $5M capital project ◦ asset owned by

customer◦ 1 year build-out◦ Evoqua recognizes

revenue during build-out

• 3 year service contract ($1M/year)

• aftermarket revenue as needed

– high service contract renewal rate (90%+)

90%+ renewal

Pursue capital opportunities to drive recurring and more profitable service and aftermarket revenue


Order value Evoqua capexEquipment financing Subscription service revenue

BookOrder

EvoquaCapex

LTFinancing

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year10

Year 11$—

$5

$10

$15

$20

Outsourced water (build-own-operate) order lifecycleIllustrative example of a $20M outsourced water build-own-operate order

Model information presented on this slide for example only and involves risks and uncertainties. Actual results may differ materially from this information. Please review our SEC filings for a discussion of these risks and uncertainties. The above example represents an outsourced water arrangement in which revenue related to the capital component is recognized over the life of the contract as service revenue. Depending on the nature of the contracting arrangement and the degree of customization of capital assets, revenue related to the capital component may be recognized specifically during the period of capex as capital revenue.*Note that this represents the fixed subscription fee in contract which is based on certain water quantity and quality requirements. Additional fees may apply if water quantity/quality exceeds negotiated ranges. Typical contracts include CPI market pricing adjustments.

$ in millions

Assumptions:– $20M total order:

– 10 year outsourced water contract

– $5M Evoqua capex – Evoqua owned asset– 1 year build-out

– $2M annual fee (capital recovery, finance charge, service and aftermarket)*

– Equipment financed at 80% - 90% of capex spend

– Contract maturity options:– Customer renews

contract (high service contract renewal rate 90%+)

– Customer buys equipment at FMV

90%+ renewal

Building a long-term subscription based revenue model; Expected IRR post financing 30%+


Outsourced waterAt a glance

WHAT IT ISEvoqua owned treatment system assets driving

subscription based services allowing customers to focus on their core competencies

40%43%

17%

SDI Mobile fleet BOO

~1/3 ISS FY20 sales

EVOQUA OWNED ASSET CONTRACT TERMS(1)

Mobile fleet(includes trailers & skidded equipment)

Event driven to 5+ years~80-85% average utilization

Service deionization (SDI) Averages ~1-2 year

Build-own-operate (BOO) Averages ~8-10 years

of which ~40% is digitally connected

MOBILE FLEETSERVICE DEIONIZATION BUILD-OWN-OPERATE

(1) Contract terms are based on management estimates. Actual terms can vary depending on the arrangement.


Digital capabilities are enhancing our outsourced water offerings

Millions of data points collected 24/7/365

Optimized service with very high first time fix rate

Evoqua data and insights team initiate high value reactive and proactive service


CURRENTSTATEOutsourcedWatervsDigitallyEnabled(FY20)

Outsourced water growth enabled by digitalFUTURESTATE

OutsourcedWaterGrowthEnabledbyDigital

Transitions customers to pricing models based on usage

Evoqua’s digital outsourced water offering combines key technologies (such as service deionization, build-own-operate) with outcome-based water guarantees

Using 24/7/365 remote monitoring, Evoqua provides proactive, predictive services to maintain customer water needs


2018 2019 2020 2021 - 2023

Evoqua's digital transformationA look at the past and future

LAUNCH OF Water One® Service DEIONIZATION (WOSD) GEN I

OPENING OF DIGITAL COMMAND CENTER

UPGRADED TO *MICROSOFT AZURE

DIGITAL BUSINESS TEAM FORMED

LAUNCH OF VANTAGE® SPD

LAUNCH OF WOSD GEN II

9 PRODUCT LAUNCHES PLANNED ACROSS

ISS AND INTRODUCING TO APT PRODUCTS

~$9M CAPEX INVESTED IN DIGITAL15 PATENT APPLICATIONS

FY18-20

~20% of FY20 ISS revenues digitally

connected

Upgrade to Azure platform is enabling product launches that drive revenue growth and continued margin expansion

*MICROSOFT AND AZURE are trademarks of Microsoft Corporation.


Applied Product Technologies Overview

▪ Highly differentiated and scalable products and technologies

▪ Technologies and products sold as

• discrete offerings, or

• components of broader solutions

▪ Sold through indirect channels

▪ Global geographic reach serving North America, EMEA and APAC

▪ Specified by water treatment designers, OEMs and engineers

$105 million adjusted EBITDA(1)

21% adjusted EBITDA margin

(1) Excludes certain corporate allocations

Service4%

Aftermarket23%

Capital73%

FINANCIAL HIGHLIGHTS

LTM Q3'21 $494M revenue

APT SEGMENT OVERVIEW MACRO DRIVERS ORGANIC GROWTH DRIVERS

▪ New product introduction

• delivering solutions through innovation

▪ Channel and end market expansion

• international focus

• leverage ISS as a channel

▪ Digital connection

• digitization of customer experience / E-commerce

▪ Climate change

▪ Digitization

▪ Resource scarcity

▪ Rising energy costs

▪ Water scarcity

▪ Health & wellness

▪ Regulatory

▪ Aging infrastructure


Applied Product TechnologiesDivisional structure by product line

AQUATICS

A leader in solutions for commercial pools, water parks and life support systems

DISINFECTION

A complete portfolio, from chemical monitoring to advanced ultraviolet (UV) light systems and ozone generation

ELECTROCHLORINATION

Develops and manufactures anodes for the electrochemical industry and refurbishes electrochlorination cells

WASTEWATER TECHNOLOGIES

Provides advanced biological treatment, nutrient removal and odor control for municipal and industrial wastewater treatment

ADVANCED FILTRATION & SEPARATION

A suite of removal technologies, from screens and dewatering systems to advanced membrane-based solutions

KEY END MARKETS

Municipal

Microelectronics

Pharmaceutical

Aquatics

Commercial

Power


APT technology innovation Driving sustainable growth with eco-friendly solutions

Pacific OzoneTM Generators & Packaged Systems: Powertron

APT NEW PRODUCT HIGHLIGHT

Food & Beverage

Personal Care

Pharmaceutical

Aquaculture

DISINFECTION

Highly effective for water treatment

Safe & controlled process

Generated on-site

KEY MARKETS


ACQUISITIONS BY FISCAL YEAR

10 PRODUCT & TECH PORTFOLIO GROWTH

(1)

(1) Evoqua owns 70% interest

Investing in technology solutions & expanding reach Supplementing organic growth

17 ACQUISITIONS COMPLETED SINCE APRIL 2016

7 SERVICE GEOGRAPHIC REACH EXPANSION

2016

Represents product & technology portfolio growth acquisitionRepresents service geographic reach expansion acquisition

WATER CONSULTING SPECIALISTS, INC• Acquired April 2021• Strengthens our portfolio of high-purity

water systems in key critical markets• Strengthens and extends our service

footprint in the northeast region of the U.S.• Opportunity to further expand our digitally

enabled solutions and services

RECENT ACQUISITIONS

SPOTLIGHT

2017 2018 2019 2020 2021


Expanding service reach Most recent acquisitions

WATER CONSULTING SPECIALISTS, INC (WCSI)

• Acquired April 2021

• Strengthens our portfolio of high-purity water systems in key industrial markets

• Strengthens and extends our service footprint in the northeast region of the U.S.

• Opportunity to further expand our digitally enabled solutions and services

AQUAPURE TECHNOLOGIES

• Acquired September 2020

• Strengthens our service capabilities largely in Ohio

ULTRAPURE & INDUSTRIAL SERVICES

• Acquired December 2020

• Strengthens our service capabilities in Texas

7 SERVICE GEOGRAPHIC REACH EXPANSION ACQUISITIONS SINCE

2017


IMPROVEMENT DRIVEN BY NWC INITIATIVESAdjusted free cash flow includes growth capex financings of $14.2 million and $24.9 million in YTD Q3'20 and YTD Q3'21, respectively

Cash generation

$70.3 $85.7

YTD Q3'20 YTD Q3'21

($ in millions) (Total net debt to adjusted EBITDA)

3.8x

3.4x 3.3x3.1x

3.0x 3.0x 2.9x 2.8x

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

NET LEVERAGE RATIOADJUSTED FREE CASH FLOW

$100.7 $102.9

YTD Q3'20 YTD Q3'21

OPERATING CASH FLOW($ in millions)

150.2 % 185.5 %

ADJUSTED FCF CONVERSIONas % of adjusted net income

LTM CASH FLOW

$28.5

$81.0$125.2

$177.0 $179.2

Operating cash flow Adjusted free cash flow

FY17 FY18 FY19 FY20 LTM Q3'21

($ in millions)


April 1 refinancing overviewHighlights

• $100 million cash used to reduce total debt

• Weighted average cost of debt reduced

~0.50%

• Liquidity increased

• Maturities extended

• Similar flexible covenant structure

ORIGINAL FACILITIES NEW FACILITIES

$125 million revolverDue December 2022LIBOR + 2.50%

$815 million Term Loan BDue December 2024LIBOR + 2.50%

$350 million revolverDue April 2026LIBOR + 2.25%

$475 million Term Loan BDue April 2028LIBOR + 2.50%

$150 million Accounts Receivable SecuritizationMatures April 2024LIBOR + 1.50%

$929

$819 $815

$722

FY19 FY20 Q2 FY21 April 1, 2021

($ in millions) Term Loan B, Revolver, AR Securitization Outstanding


Water/PFAS remain important topics in Congress

The PFAS Action Act of 2021 recently passed the House with strong bipartisan and White House support (23 republicans supported).

The Bill would require EPA to:

• Designate PFOA and PFOS as hazardous under CERCLA; and

• Issue a drinking water regulation (MCL) for those two chemicals within 2 years.

• The legislation also provides grants to impacted water systems.

PFAS ACTION ACT OF 2021

$10 Billion is proposed for PFAS/emerging contaminants funding:

• $1 Billion to address emerging contaminants in wastewater through the Clean Water State Revolving Fund

• $4 Billion to address PFAS in drinking water through the Drinking Water State Revolving Fund

• $5 Billion for small and disadvantaged communities to address emerging contaminants

BI-PARTISAN SENATE INFRASTRUCTURE DEALAs of August 1, 2021

The $10 billion PFAS spending proposal currently remains consistent with the original Biden Infrastructure proposal in March 2021 and continues to receive strong Bi-partisan support.


3.9%3.1%

5.2%

1.6%

(3.5)% (3.5)%

3.2%

Organic sales growth versus prior period

FY17 FY18 FY19 FY20 Q1'FY21 Q2'FY21 Q3'FY21

(3.0)%

—%

3.0%

6.0%

9.0%HISTORICALLY STABLE AND

HIGHLY RECURRING REVENUES Opportunities to exceed 3-5% organic sales growth:

1. Capital spending and cyclical market improvements

2. Wastewater / waste to value 3. Regulatory actions including

emerging contaminants4. New product development5. Price initiatives

RESILIENT AND ESSENTIAL DESPITE

COVID-19 HEADWINDS

Opportunities for growth at the top and bottom line

3-5% organic revenue long-term target

16.7%

16.2% 16.3%

16.8%

17.2%

Adjusted EBITDA margin

FY17 FY18 FY19 FY20 LTM Q3'FY2116.0%

17.0%

18.0%

19.0%

20.0%

20% adjusted EBITDA long-term target Pathway to achieving 20% adjusted EBITDA margin:

1. Continued transition to outsourced water model

2. Strategic M&A opportunities

3. Cost efficiencies 4. Digital expansion 5. Price initiatives

20.0%

COVID-19


Long-term targets (3-5 years)(1)

ORGANIC SALES GROWTH ~3 – 5%

ADJUSTED EBITDA MARGIN ~20%

ADJUSTED FREE CASH FLOW CONVERSION ~100%+

NET FINANCIAL LEVERAGE ~2.5x – 3.0x

Long-Term Target

(1) These long-term targets represent our goals and are not projections of future performance. These targets are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please see “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 as filed with the SEC on November 20, 2020, and in other periodic reports we file with the SEC. Nothing in this presentation should be regarded as a representation by any person that these targets will be achieved, and the Company undertakes no obligation to update this information. See “Forward-Looking Statements Safe Harbor” on page 2 of this presentation.


Leading provider of comprehensive life cycle water treatment solutions with growing focus on wastewater

Strong ESG and climate change driven trends supporting robust pipeline and order book growth

Optimized technology portfolio and product innovation addressing increasingly complex water challenges

Outsourced water platform drives superior intimacy with a diverse, blue chip customer base

Growing opportunities for digitally enabled, recurring service and aftermarket revenues

Well invested footprint with strong operating leverage driving margin expansion through automation

Strong management and operating team

Resilient organic and inorganic growth platform resulting in a strong cash flow profile and balance sheet

Key investment highlights1

2

3

4

5

6

7

8

©2021 EVOQUA WATER TECHNOLOGIES | 33

Appendix


$236.5$207.5 $204.5 $190.8 $178.8 $185.5 $181.0 $175.5

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

Total ISS BacklogService/Aftermarket (AM) BacklogCapital Backlog

FY18 FY19 FY20 Q3'21$—

$350

$700

NET WORKING CAPITAL

$208 $217$235 $240 $245


$1,247

$1,340

$1,444 $1,430 $1,422


ADJUSTED EBITDA(1)

Financial highlights

(Total net debt to adjusted EBITDA)

NET LEVERAGE RATIO

REVENUE(1)

($ in millions)

CASH FLOW

$28.5

$81.0

$125.2

$177.0 $179.2

$11.6$45.8

$103.2$134.4 $149.8


($ in millions)

16.7% 16.2% 16.3% 16.8% 17.2%

Adjusted EBITDA margin

ISS BACKLOG($ in millions)

(1) Historical results include Memcor. FY19 and FY20 revenue $60 million and $14.4 million, respectively. FY19 and FY20 adjusted EBITDA $8.1 million and $1.3 million, respectively.

Memcor

Memcor

NWC as % of LTM revenue

($ in millions)

($ in millions)

CAGR

16.4% 14.1% 13.9% 13.1% 12.5% 13.2% 12.9% 12.3%

3.8x

3.4x 3.3x3.1x 3.0x 3.0x 2.9x 2.8x

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

21%

19%

25%


Definitions OUTSOURCED WATEREvoqua owned water treatment assets. ISS segment asset categories are: mobile fleet, service deionization (SDI), build-own-operate (BOO). ~$300 million of annual revenues.

DIGITALLY ENABLED NON-OUTSOURCED WATER ASSETS Currently focused on municipal odor and corrosion control to drive service efficiency and effectiveness. ~$70 million of non-outsourced water assets revenues.

DIGITALLY ENABLED OUTSOURCED WATER SERVICESThe digital enablement of outsourced water assets to drive service efficiency and effectiveness; provides the opportunity for utility like pricing models based on usage. ~$125 million of annual outsourced water revenues.

WATER ONE® SERVICES The digital enablement of outsourced water assets and other treatment systems to drive service efficiency and effectiveness. ~$195 million of annual revenues.


Management reviews key performance indicators including revenue, margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity, management of assets and future prospects. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to: dividends, acquisitions, share repurchases and debt repayment. These adjusted metrics are consistent with how management views our business and are used to make financial, operating, budgeting, planning and strategic decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators:

“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non-cash share-based compensation, sponsor fees, transaction costs and other gains, losses and expenses. "Adjusted EBITDA" on a segment level further reflects the adjustment for the impact of certain other items that have been adjusted at the segment level.

"Adjusted EBITDA margin" defined as adjusted EBITDA as a percentage of revenue.

"Adjusted free cash flow” defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures as well as adjustments for other significant items that impact current results which management believes are not related to our ongoing operations and performance. Our definition of free cash flow does not consider certain non-discretionary cash payments, such as debt.

"Adjusted free cash flow conversion" defined as adjusted free cash flow divided by adjusted net income.

“Adjusted net income” defined as net income adjusted to exclude certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non-cash share-based compensation, sponsor fees, transaction costs and other gains, losses and expenses.

"Organic revenue" defined as revenue excluding the impact of foreign exchange and inorganic revenue.

"Inorganic revenue" defined as revenue from acquisitions and divestitures.

"Total net debt" defined as total debt including finance leases less unamortized deferred financing fees minus cash and cash equivalents.

"Net leverage ratio" defined as total net debt divided by adjusted EBITDA.

Non-GAAP measures


ISS backlog reconciliation

(in millions) FY18 FY19 FY20 Q3'FY21 Q2'FY21Backlog as reported (1) $ 607.4 $ 179.3 $ 165.6 $ 250.9 $ 207.4 Remove APT backlog included in backlog as reported (2) (161.8) (39.0) (70.4) (92.8) (93.7) Add ISS service/aftermarket backlog — 386.1 538.4 586.9 598.5 Total ISS backlog (3) $ 445.6 $ 526.4 $ 633.6 $ 745.0 $ 712.2

(1) Amounts as disclosed in Evoqua's respective Annual Reports on Form 10-K, as filed with the SEC. Prior to October 1, 2018 and the Company's adoption of ASC 606, Revenue from Contracts with Customers, backlog as reported represents the total amount of revenue we expect to receive as a result of contracts and orders awarded to us. Prospectively, upon adoption of ASU 606 on October 1, 2018, backlog as reported is solely based on the expected future revenue for unfulfilled and remaining performance obligations for capital projects that have had costs incurred where neither Evoqua nor the customer can terminate the contract without penalty. Because many of our contracts and orders are subject to reduction, cancellation or termination at the option of our customer, backlog is not an indication of our future performance.

(2) Represents the portion of APT backlog that is included in GAAP backlog as reported. This includes expected future revenue for unfulfilled and remaining performance obligations for capital projects that have had costs incurred and neither Evoqua nor the customer can terminate the contract without penalty. This does not include service or aftermarket backlog or capital orders that have been booked but the Company has not yet started fulfillment of the contract.

(3) ISS backlog is measured at a point in time and includes orders on hand as well as contractual customer agreements at the end of the period. An order represents a legally enforceable, written document that includes the scope of work or services to be performed or equipment to be supplied to a customer, the corresponding price and the expected delivery date for the applicable products or services to be provided. An order often takes the form of a customer purchase order or a signed quote. ISS backlog does not include any variable consideration related to the order or any renewal periods. The timing of revenue conversion of ISS backlog can vary significantly based on the type of order and specific customer requirements. ISS backlog is not an indication of our future performance.


Revenue by driverTotal Revenue Foreign Currency Inorganic Revenue(1) Organic Revenue

($ in millions) Q3'20 Q3'21%

Variance Q3'20 Q3'21%



VarianceEvoqua Water Technologies $347.8 $369.7 6.3 % n/a $7.5 2.1 % $0.8 $4.1 0.9 % $347.0 $358.1 3.2 %Integrated Solutions & Services $228.7 $239.7 4.8 % n/a $1.5 0.7 % $0.8 $4.1 1.4 % $227.9 $234.1 2.7 %Applied Product Technologies $119.1 $130.0 9.2 % n/a $6.0 4.9 % $— $— — % $119.1 $124.0 4.2 %

(1) Includes divestiture of the Lange Product Line on March 1, 2021, acquisition of Aquapure Technologies on September 3, 2020, acquisition of Ultrapure & Industrial Services on December 17, 2020 and acquisition of WCSI on April 1, 2021.

Total Revenue Foreign Currency Inorganic Revenue Organic Revenue





VarianceEvoqua Water Technologies $351.7 $346.6 (1.5) % n/a $5.2 1.5 % $0.1 $2.1 0.6 % $351.6 $339.3 (3.5) %






VarianceEvoqua Water Technologies $346.1 $322.2 (6.9) % n/a $2.2 0.6 % $14.4 $0.3 (4.1) % $331.7 $319.7 (3.5) %


Revenue by driver continuedTotal Revenue Foreign Currency Inorganic Revenue Organic Revenue

($ in millions) FY'19 FY'20%

Variance FY'19 FY'20%



VarianceEvoqua Water Technologies $1,444.4 $1,429.5 (1.0) % n/a $(2.9) (0.2) % $50.4 $15.4 (2.4) % $1,394.0 $1,417.0 1.6 %






VarianceEvoqua Water Technologies $1,339.5 $1,444.4 7.8 % n/a $(11.8) (0.9) % $— $47.5 3.5 % $1,339.5 $1,408.7 5.2 %






VarianceEvoqua Water Technologies $1,247.4 $1,339.5 7.4 % n/a $11.4 0.9 % $— $41.6 3.3 % $1,247.4 $1,286.5 3.1 %






VarianceEvoqua Water Technologies $1,137.2 $1,247.4 9.7 % n/a $(2.5) (0.2) % $— $68.4 6.0 % $1,137.2 $1,181.5 3.9 %


Adjusted EBITDA reconciliation - 2021($ in millions)

Q1'21 Q2'21 Q3'21 Q3'21 YTD

Net income $ 6.5 $ 5.1 $ 13.2 $ 24.8 Income tax expense 1.1 2.7 3.9 7.7 Interest expense 8.7 8.4 11.2 28.3 Operating income $ 16.3 $ 16.2 $ 28.3 $ 60.8 Depreciation and amortization 27.4 27.1 29.1 83.6

EBITDA $ 43.7 $ 43.3 $ 57.4 $ 144.4

Restructuring and related business transaction costs 1.8 5.4 1.8 9.0 Share-based compensation 3.1 3.2 5.5 11.8 Transaction costs 0.6 0.7 0.3 1.6 Other (gains), losses and expenses (4.4) 5.4 1.2 2.2

Adjusted EBITDA $ 44.8 $ 58.0 $ 66.2 $ 169.0

Revenue $ 322.2 $ 346.6 $ 369.7 $ 1,038.4

Net income as a % of Revenue 2.0 % 1.5 % 3.6 % 2.4 %Adjusted EBITDA margin 13.9 % 16.7 % 17.9 % 16.3 %

A

CD

Primarily comprised of severance costs, relocation costs, recruiting expenses, certain non-cash charges and third-party consultant costs associated with the restructuring initiatives to reduce the cost structure and rationalize location footprint following the sale of the Memcor product line, the two-segment realignment and other various restructuring and efficiency initiatives.

Represents share-based compensation.

Removal of expenses associated with recent acquisitions and divestitures and post-acquisition integration costs including adjustments to earn-outs.

Deduction of gains and add back of losses associated with foreign exchange ($1.2 million gain Q3'21*) and other unusual business gains and expenses primarily consisting of product rationalization in our electro-chlorination business ($1.5 million expense Q3'21), expenses related to COVID-19 pandemic ($0.1 million Q3'21), and legal fees incurred in excess of amounts covered by the Company’s insurance related to the Securities Litigation and SEC investigation ($0.8 million Q3'21).

*Represents a non-cash item.

B

A

B

C

D



Q1'20 Q2'20 Q3'20 Q4'20 FY2020

Net income $ 53.5 $ 7.9 $ 21.8 $ 31.1 $ 114.4 Income tax expense 2.6 0.0 0.8 4.1 7.4 Interest expense 13.6 13.3 10.5 9.4 46.6 Operating income $ 69.7 $ 21.2 $ 33.1 $ 44.6 $ 168.4 Depreciation and amortization 25.1 27.3 27.6 27.2 107.3

EBITDA $ 94.8 $ 48.5 $ 60.7 $ 71.8 $ 275.7

Restructuring and related business transaction costs 1.7 6.2 3.1 6.4 17.4 Share-based compensation 3.7 2.3 2.6 1.9 10.5 Transaction costs 0.2 0.5 0.3 0.9 1.9 Other (gains), losses and expenses (56.8) (0.8) (2.9) (5.4) (65.9)

Adjusted EBITDA $ 43.6 $ 56.7 $ 63.8 $ 75.6 $ 239.6

Revenue $ 346.1 $ 351.7 $ 347.8 $ 383.9 $ 1,429.5

Net income as a % of revenue 15.5 % 2.2 % 6.3 % 8.1 % 8.0 %Adjusted EBITDA margin 12.6 % 16.1 % 18.3 % 19.7 % 16.8 %

A

CD

Primarily comprised of severance costs, relocation costs, recruiting expenses, certain non-cash charges and third-party consultant costs associated with the restructuring initiatives to reduce the cost structure and rationalize location footprint following the sale of the Memcor product line, the two-segment realignment and other various restructuring and efficiency initiatives.

Represents non-cash share-based compensation.

Removal of expenses associated with recent acquisitions and divestitures and post-acquisition integration costs including adjustments to earn-outs.

Deduction of gains and add back of losses associated with foreign exchange and other unusual business gains and expenses primarily consisting of product rationalization in our electro-chlorination business, expenses related to the sale of the Memcor product line and expenses related to COVID-19 pandemic.

*Represents a non-cash item.

B

A

B

C

D

Q1'20

($ In millions) Memcor

Net Income $ 1.2

Depreciation and amortization 0.1

Adjusted EBITDA $ 1.3

The following represents Memcor's adjusted EBITDA for Q1'20:



FYE 9/30 Q1'19 Q2'19 Q3'19 Q4'19 FY2019

Net (loss) income $ (16.3) $ 1.6 $ 4.3 $ 1.9 $ (8.5) Income tax (benefit) / expense (4.5) (4.6) 7.9 10.8 9.6 Interest expense 14.4 14.5 14.9 14.8 58.6 Operating (loss) profit $ (6.4) $ 11.5 $ 27.1 $ 27.5 $ 59.7 Depreciation and amortization 23.1 24.2 24.1 26.8 98.2

EBITDA $ 16.7 $ 35.7 $ 51.2 $ 54.3 $ 157.9

Restructuring and related business transaction costs 5.7 8.3 4.5 5.7 24.2 Share-based compensation 4.6 4.7 5.0 5.7 20.0

Transaction costs 2.1 2.4 1.0 6.1 11.6 Other losses, (gains) and expenses 9.3 5.6 (1.1) 7.5 21.3

Adjusted EBITDA $ 38.4 $ 56.7 $ 60.6 $ 79.3 $ 235.0

Revenue $ 323.0 $ 348.6 $ 360.3 $ 412.5 $ 1,444.4

Net (loss) income as a % of revenue (5.0) % 0.5 % 1.2 % 0.5 % (0.6) %Adjusted EBITDA margin 11.9 % 16.3 % 16.8 % 19.2 % 16.3 %

ABCD

Primarily comprised of severance costs, relocation costs, recruiting expenses and third-party consultant costs associated with the two-segment realignment and other various restructuring and efficiency initiatives.

Represents non-cash share-based compensation.

Removal of expenses associated with recent acquisitions and divestitures and post-acquisition integration costs.

Deduction of gains and add back of losses associated with foreign exchange, expenses related to maintaining non-operational business locations and other unusual business gains and expenses primarily consisting of the remediation of manufacturing defects caused by a third-party vendor, product rationalization in our electro-chlorination business, gain on the sale of property and the provision for write-off of inventory in our aquatics business associated with product rationalization and facility consolidation.

A

B

C

D

FY19

($ In millions) Memcor

Net Income $ 6.0

Depreciation and amortization 2.1

Adjusted EBITDA $ 8.1

The following represents Memcor's Adjusted EBITDA for FY19:


Adjusted EBITDA reconciliation - 2018

Primarily comprised of severance, relocation, recruiting and other costs associated with the voluntary separation program and other various restructuring and efficiency initiatives.

Represents non-cash share-based compensation related to option awards.

Elimination of management fees paid to AEA. AEA’s management agreement terminated at the IPO closing.


Deduction of gains and add back of losses associated with foreign exchange, recent asset sales, foreign exchange impact of headquarter allocations, expenses related to maintaining non-operational business locations, expenses incurred related to remediation of manufacturing defects caused by a third-party vendor, gain on the sale of assets related to the disposition of land and the write-off of obsolete inventory as part of the migration of an operational business unit to a new enterprise resource planning system.

($ in millions)

FYE 9/30 Q1'18 Q2'18 Q3'18 Q4'18 FY2018

Net (loss) income $ (3.0) $ 13.0 $ 1.0 $ (3.1) $ 7.9 Income tax (benefit) / expense (4.4) 2.0 1.4 2.4 1.4

Interest expense 17.2 10.8 12.4 17.1 57.5 Operating profit $ 9.8 $ 25.8 $ 14.8 $ 16.4 $ 66.8 Depreciation and amortization 19.9 20.5 21.6 24.0 85.9

EBITDA $ 29.7 $ 46.3 $ 36.4 $ 40.4 $ 152.7

Restructuring and related business transaction costs 8.1 8.2 8.9 9.1 34.4

Share-based compensation 2.6 4.3 4.4 4.5 15.8 Sponsor fees 0.3 — — — 0.3

Transaction costs 0.5 0.8 4.7 1.6 7.6 Other (gains), losses and expenses (1.3) (1.9) 3.6 5.6 6.1

Adjusted EBITDA $ 39.9 $ 57.7 $ 58.0 $ 61.2 $ 216.9

Revenue $ 297.1 $ 333.6 $ 342.5 $ 366.3 $ 1,339.5

Net (loss) income as a % of revenue (1.0) % 3.9 % 0.3 % (0.8) % 0.6 %

Adjusted EBITDA margin 13.4 % 17.3 % 16.9 % 16.7 % 16.2 %

ABCDE

A

B

C

D

E


Adjusted EBITDA reconciliation - 2017


Reverses the impact from step-up to fair market value for inventory acquired with the purchase of Magneto.




Deduction of gains and add back of losses associated with foreign exchange and recent asset sales along with expenses related to maintaining non-operational business locations.

($ in millions)

FYE 9/30 Q1'17 Q2'17 Q3'17 Q4'17 FY2017

Net (loss) income $ (13.2) $ 4.9 $ 1.8 $ 13.0 $ 6.4 Income tax (benefit) / expense (7.1) (4.8) 12.2 7.1 7.4 Interest expense 14.8 11.9 12.5 16.3 55.4 Operating (loss) profit $ (5.5) $ 12.0 $ 26.4 $ 36.4 $ 69.2 Depreciation and amortization 18.6 18.9 18.3 22.1 77.9

EBITDA $ 13.1 $ 30.9 $ 44.7 $ 58.5 $ 147.1


Purchase accounting adjustment costs 0.2 — — — 0.2 Share-based compensation 0.5 0.6 0.6 0.6 2.3

Sponsor fees 1.0 1.0 1.0 1.1 4.2 Transaction costs 1.4 2.4 1.9 1.7 7.3 Other losses, (gains) and expenses 7.9 (0.8) (6.5) (5.4) (4.7)

Adjusted EBITDA $ 37.2 $ 43.9 $ 55.1 $ 71.4 $ 207.7

Revenue $ 279.9 $ 299.9 $ 311.1 $ 356.5 $ 1,247.4

Net (loss) income as a % of revenue (4.7) % 1.6 % 0.6 % 3.6 % 0.5 %

Adjusted EBITDA margin 13.3 % 14.6 % 17.7 % 20.0 % 16.7 %

ABCDEF

A

B

C

D

E

F


Adjusted EBITDA Reconciliation - 2016


Reverses the impact from step-up to fair market value for inventory acquired with the purchase of Magneto.




Deduction of gains and add back of losses associated with foreign exchange and recent asset sales along with expenses related to maintaining non-operational business locations.

($ in millions)

FYE 9/30 Q1'16 Q2'16 Q3'16 Q4'16 FY2016

Net (loss) income $ (2.7) $ (0.9) $ 16.5 $ 0.2 $ 13.0

Income tax (benefit) / expense (5.0) (1.4) (14.1) 2.0 (18.4)

Interest expense 9.0 9.0 11.5 13.1 42.5 Operating profit $ 1.3 $ 6.8 $ 13.8 $ 15.2 $ 37.2

Depreciation and amortization 16.3 16.3 18.4 18.3 69.3

EBITDA $ 17.7 $ 23.0 $ 32.2 $ 33.5 $ 106.4


Purchase accounting adjustment costs — — — 1.3 1.3

Share-based compensation 0.5 0.4 0.5 0.6 2.0 Sponsor fees 0.8 1.1 1.0 0.9 3.8

Transaction costs 0.1 2.4 1.4 1.4 5.4

Other losses, (gains) and expenses 1.9 (4.1) 3.5 (3.2) (1.9)

Adjusted EBITDA $ 25.4 $ 29.9 $ 45.2 $ 59.4 $ 160.1

Revenue $ 254.5 $ 270.0 $ 293.3 $ 319.4 $ 1,137.2

Net (loss) income as a % of revenue (1.1) % (0.3) % 5.6 % 0.1 % 1.1 %Adjusted EBITDA margin 10.0 % 11.1 % 15.4 % 18.6 % 14.1 %

ABCDEF

A

C

D

E

F

B


Segment adjusted EBITDA reconciliation

Q4'20 YTD Q3'21 LTM Q3'21

(In millions) ISS APT ISS APT ISS APT

Trailing costs from the sale of the Memcor product line $ — $ 0.3 $ — $ 0.2 $ — $ 0.5

Net pre-tax benefit on sale of the Memcor product line — — — — — —

Remediation of manufacturing defects — — — — — —

Product rationalization in electro-chlorination business — 0.3 — 2.4 — 2.7

Loss on divestiture of Lange Product Line — — 0.2 — 0.2 —

Total $ — $ 0.6 $ 0.2 $ 2.6 $ 0.2 $ 3.2

Q4'20 YTD Q3'21 LTM Q3'21

(In millions) ISS APT ISS APT ISS APT

Segment operating profit $ 43.2 $ 23.8 $ 94.9 $ 54.2 $ 138.1 $ 78.0

Depreciation and amortization 16.8 3.5 52.3 10.6 69.1 14.1

Segment EBITDA $ 60.0 $ 27.3 $ 147.2 $ 64.8 $ 207.2 $ 92.1

Restructuring and related business transformation costs 0.3 4.1 1.4 5.2 1.7 9.3

Transaction costs — 0.7 — — — 0.7

Other losses (gains) and expenses (a) — 0.6 0.2 2.6 0.2 3.2

Segment adjusted EBITDA $ 60.3 $ 32.7 $ 148.8 $ 72.6 $ 209.1 $ 105.3

Revenue 249.5 134.4 678.5 359.9 928.0 494.3

Segment operating profit as a % of Revenue 17.3 % 17.7 % 14.0 % 15.1 % 14.9 % 15.8 %

Segment adjusted EBITDA margin 24.2 % 24.3 % 21.9 % 20.2 % 22.5 % 21.3 %

Note: Segment adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. Segment adjusted EBITDA is defined as operating profit before depreciation, amortization and certain other adjustments distinct to the respective reported segments. We do not present net income on a segment basis because we do not allocate interest expense or income tax benefit (expense) to our segments, making operating profit the most comparable GAAP metric to segment adjusted EBITDA.

(a) Other (gains) losses and expenses include the following:


Adjusted free cash flow ($ in millions) YTD Q3'20 YTD Q3'21Operating cash flow $ 100.7 $ 102.9

(+/-) EBITDA adjustments including:Restructuring and related business transformation costs 11.0 9.0 Transaction costs 1.0 1.6 Other (gains) losses including:

(i) (1.5) — (ii) 0.4 2.4 (iii) 9.3 0.2 (iv) 1.1 0.4 (v) — 4.1 (vi) — 0.2

(-/+) Tax impact of above EBITDA adjustments(1) 2.7 (4.7) (+) Adoption impact of ASC 842 (2.0) — (-) Capital expenditures (65.9) (54.1) (+) Financing related to growth capital expenditures 14.2 24.9 (-) Purchases of intangibles (e.g., software licenses) (0.7) (1.2) Adjusted free cash flow $ 70.3 $ 85.7

Net income $ 83.3 $ 24.7

Operating cash flow as a % of net income 120.9 % 416.6 %Adjusted net income $ 46.8 $ 46.2

Adjusted free cash flow conversion 150.2 % 185.5 %

(i) expense reduction related to the remediation of manufacturing defects caused by a third- party vendor for which partial restitution was received;(ii) charges incurred by the Company related to product rationalization in its electro-chlorination business;(iii) transaction costs incurred related to sale of assets, property or product line;(iv) expenses incurred by the Company as a result of the COVID-19 pandemic, including additional charges for personal protective equipment, increased costs for facility sanitization and one-time payments to certain employees; (v) legal fees incurred in excess of amounts covered by the Company’s insurance related to the Securities Litigation and SEC investigation; and(vi) loss on divestiture of the Lange Product Line.

(1) The blended statutory tax rate was 26.0% for all periods presented. The tax rate on Non-GAAP adjustments to net income was 3.5% (due to the impact of the Memcor transaction) and 26.0% in the three months ended June 30, 2020 and 2021, respectively.


Adjusted free cash flow ($ in millions) FY17 FY18 FY19 FY20 LTM Q3'21Operating cash flow $ 28.5 $ 81.0 $ 125.2 $ 177.0 $ 179.2

(+/-) EBITDA adjustments including:Restructuring and Related Business Transformation Costs 51.3 34.4 24.2 17.4 15.4 Purchase accounting adjustment costs 0.2 — — — — Sponsor fees 4.2 0.3 — — — Transaction Costs 7.3 7.6 11.6 1.9 2.5

Other (gains) losses including:(i) 1.9 1.0 — — — (ii) — 3.9 2.1 (1.5) — (iii) — — 4.1 0.7 2.7 (iv) — 0.6 — 10.4 1.3 (v) — 2.6 5.0 — — (vi) — — — 1.3 0.6 (vii) — — — — 4.1 (viii) — 3.5 — — — (ix) — — — — 0.2

(-/+) Tax impact of above EBITDA adjustments(1) (24.5) (14.0) (12.1) 0.9 (6.5) (+) Adoption impact of ASC 842 — — — (2.0) — (-) Capital Expenditures (57.8) (80.7) (88.9) (88.5) (76.7) (+) Financing related to growth capital expenditures 5.4 5.7 38.4 23.3 34.0

(+) Financing related to property acquisition — 1.9 — — — (-) Purchases of intangibles (e.g., software licenses) (4.9) (2.0) (6.4) (6.5) (7.0) Adjusted free cash flow $ 11.6 $ 45.8 $ 103.2 $ 134.4 $ 149.8

(i) expenses on disposal related to maintaining nonoperational business locations, net of gain on sale;(ii) expense (expense reduction) related to the remediation of manufacturing defects caused by a third-party vendor for which partial restitution was received;(iii) charges incurred by the Company related to product rationalization in its electro-chlorination business;(iv) transaction costs incurred related to sale of assets, property or product line;(v) expenses incurred by the Company related to the write-off of obsolete inventory as part of the migration of an operational business unit to a new enterprise reporting (“ERP”) system;(vi) expenses incurred by the Company as a result of the COVID-19 pandemic, including additional charges for personal protective equipment, increased costs for facility sanitization and one-time payments to certain employees;(vii) legal fees incurred in excess of amounts covered by the Company’s insurance related to the Securities Litigation and SEC investigation;(viii) incremental interest costs incurred related to refinancings during the period; and(ix) loss on divestiture of the Lange Product Line.

(1) The blended statutory tax rate was 26.0% for all periods presented. The tax rate on Non-GAAP adjustments to net income was 37.7%, 26.0%, 26.0%, 3.8% (due to the impact of the Memcor transaction) and 24.4% in FY17, FY18, FY19, FY20 and LTM Q3'21, respectively.


Adjusted net income and adjusted EPS Q3'21 YTDNine Months Ended June 30, 2021

(In millions, except per share amounts) GAAP Reported

Restructuring and Related Business Transformation

Costs (b)

Share-based Compensation

(b)Transaction

Costs (b)Other (gains)

losses (b)

Extraordinary interest expense

(c)Non-GAAP Adjusted

Revenue from product sales and services $ 1,038.4 $ — $ — $ — $ — $ — $ 1,038.4

Cost of product sales and services (720.1) 5.1 0.3 2.9 — (711.8)

Gross profit 318.3 5.1 — 0.3 2.9 — 326.6

General and administrative expense (146.1) 2.8 11.8 1.3 (0.9) — (131.1)

Sales and marketing expense (103.6) 0.4 — — — — (103.2)

Research and development expense (9.9) — — — — — (9.9)

Other operating income (expense), net 2.0 0.7 — — 0.2 — 2.9

Interest expense (28.3) — — — — 4.4 (23.9)

Income before income taxes 32.4 9.0 11.8 1.6 2.2 4.4 61.4

Income tax expense (a) (7.7) (2.3) (3.1) (0.4) (0.6) (1.1) (15.2)

Net income 24.7 6.7 8.7 1.2 1.6 3.3 46.2

Net income attributable to non‑controlling interest 0.1 — — — — — 0.1 Net income attributable to Evoqua Water Technologies Corp. $ 24.6 $ 6.7 $ 8.7 $ 1.2 $ 1.6 $ 3.3 $ 46.1

Basic income per common share $ 0.21 $ 0.06 $ 0.07 $ 0.01 $ 0.01 $ 0.03 $ 0.39

Diluted income per common share $ 0.20 $ 0.05 $ 0.07 $ 0.01 $ 0.01 $ 0.03 $ 0.37

Basic # of shares (in millions) 119.0

Diluted # of shares (in millions) 122.3

(a) The blended statutory tax rate was 26.0% in the nine months ended June 30, 2021. The quarterly tax rate on Non-GAAP adjustments to net income was 26.0% in the nine months ended June 30, 2021. (b) Refer to adjustments on the Adjusted EBITDA reconciliation on prior slides. (c) In April 2021, the Company refinanced its credit agreement. As a result of the refinancing, the Company wrote off $1.3 million of deferred financing fees and expensed $3.1 million of additional fees incurred during the nine months ended June 30, 2021.


Adjusted net income and adjusted EPS Q3'20 YTDNine Months Ended June 30, 2020

(In millions, except per share amounts) GAAP Reported

Restructuring and Related Business Transformation

Costs (b)Share-based

Compensation (b)Transaction

Costs (b)Other (gains)

losses (b)

Extraordinary interest

expense (c) Non-GAAP Adjusted

Revenue from product sales and services $ 1,045.6 $ — $ — $ — $ — $ — $ 1,045.6

Cost of product sales and services (718.4) 6.0 — (0.1) 1.3 — (711.2)

Gross profit 327.2 6.0 — (0.1) 1.3 — 334.4

General and administrative expense (152.8) 4.9 8.6 1.1 (1.9) — (140.1)

Sales and marketing expense (101.8) 0.1 — — — — (101.7)

Research and development expense (9.7) — — — — — (9.7)

Other operating income (expense), net 61.0 — — — (59.9) — 1.1

Interest expense (37.3) — — — — 1.8 (35.5)

Income (loss) before income taxes 86.6 11.0 8.6 1.0 (60.5) 1.8 48.5

Income tax (expense) benefit (a) (3.3) (0.4) (0.3) — 2.4 (0.1) (1.7)

Net income (loss) 83.3 10.6 8.3 1.0 (58.1) 1.7 46.8

Net income attributable to non‑controlling interest 1.0 — — — — — 1.0

Net income (loss) attributable to Evoqua Water Technologies Corp. $ 82.3 $ 10.6 $ 8.3 $ 1.0 $ (58.1) $ 1.7 $ 45.8

Basic income (loss) per common share $ 0.71 $ 0.09 $ 0.07 $ 0.01 $ (0.50) $ 0.01 $ 0.39

Diluted income (loss) per common share $ 0.68 $ 0.09 $ 0.07 $ 0.01 $ (0.48) $ 0.01 $ 0.38

Basic # of shares (in millions) 116.6

Diluted # of shares (in millions) 121.1

(a) The blended annual projected tax rate of 4.0% was used for adjustments due to the impact of the Memcor transaction.(b) Refer to adjustments on the Adjusted EBITDA reconciliation on prior slides. (c) In January 2020, the Company utilized $100 million of the proceeds from the sale of the Memcor product line to repay a portion of the Company’s First Lien Term Loans. As a result of the prepayment, the Company wrote off $1.8 million of deferred financing fees during the nine months ended June 30, 2020.


LTM reconciliations($ in millions)

Revenue by segment FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21Evoqua Water Technologies $ 1,429.5 $ (1,045.6) $ 1,038.4 $ 1,422.3 Integrated Solutions & Services $ 944.2 $ (694.7) $ 678.5 $ 928.0 Applied Product Technologies $ 485.3 $ (350.9) $ 359.9 $ 494.3

Revenue by source FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21Revenue from product sales and services $ 1,429.5 $ (1,045.6) $ 1,038.4 $ 1,422.3

Revenue from product sales $ 839.9 $ (610.1) $ 600.9 $ 830.7

Revenue from services $ 589.6 $ (435.5) $ 437.5 $ 591.6

Integrated Solutions & Services revenue FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21 % of LTM TotalRevenue from capital projects $ 257.5 $ (185.4) $ 166.1 $ 238.2 26 %

Revneue from aftermarket $ 119.1 $ (90.7) $ 91.5 $ 119.8 13 %

Revenue from service $ 567.6 $ (418.6) $ 421.0 $ 570.0 61 %

Applied Product Technologies revenue FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21 % of LTM TotalRevenue from capital projects $ 335.2 $ (235.8) $ 259.9 $ 359.3 73 %Revneue from aftermarket $ 128.1 $ (98.2) $ 83.5 $ 113.3 23 %Revenue from service $ 22.0 $ (16.9) $ 16.5 $ 21.7 4 %

Operating cash flow FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21Evoqua Water Technologies $ 177.0 $ (100.7) $ 102.9 $ 179.2

Adjusted free cash flow FYE 9/30/2020 YTD Q3'20 YTD Q3'21 LTM 6/30/21Evoqua Water Technologies $ 134.4 $ (70.3) $ 85.7 $ 149.8


Capital structure overview

($ in millions) Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

Cash and cash equivalents $ 109.9 $ 194.9 $ 108.5 $ 142.7 $ 193.0 $ 197.9 $ 222.7 $ 141.5

AR Securitization Program — — — — — — — 148.2

Revolving Credit Facility — — — — — — — 95.0

First Lien Term Facility 928.8 926.4 824.0 821.6 819.3 816.9 814.5 475.0

Mortgage 1.6 1.7 1.6 1.6 1.7 — — —

Equipment financing facilities 46.8 48.9 53.9 56.7 64.5 70.6 74.9 83.7

Finance lease obligations 36.1 38.0 36.7 37.3 37.6 39.1 39.4 39.4

Total debt including finance leases 1,013.3 1,015.0 916.2 917.2 923.1 926.6 928.8 841.3

Less unamortized deferred financing fees (12.1) (11.6) (10.3) (10.0) (9.4) (8.9) (8.4) (12.2)

Total net debt $ 891.3 $ 808.5 $ 797.4 $ 764.5 $ 720.7 719.8 697.7 $ 687.6

LTM adjusted EBITDA $ 235.0 $ 240.2 $ 240.2 $ 243.4 $ 239.6 $ 240.8 $ 242.1 $ 244.5

Net leverage ratio 3.8x 3.4x 3.3x 3.1x 3.0x 3.0x 2.9x 2.8x

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