WaterHealth International, Inc.

(WaterHealth Ghana)
Presentation at the AQUAYA
Workshop in Nairobi Kenya
26th June 2009

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 GLOBAL CRISIS
•  Access to clean, safe water is one of the world’s most urgent
crisis.
•  About a billion people lack access to potable water globally
•  Half of the world’s hospital beds are occupied by patients
suffering from waterborne diseases
•  Millions of children annually are mentally and physically stunted
due to waterborne diseases
•  1.8 million people die every year from diarrhoeal ,90% are
children
•  The billions of dollars spent annually on water projects have not
gained much ground against the size of the global population
without access to potable water

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 Leading the Blue Revolution
•  Established to provide water to the most
remote, low income , rural and peri urban
communities worldwide.
•  US based private/commercial org founded by
Dr Tralance Addy (Ghanaian)
•  Subsidiaries in India/Philipines/Ghana
•  Installed over 700 products globally
•  UV waterworks proprietary product to WHI

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 Benefits of safe water

•  Improving the health of the

community

•  Generating economic benefits

•  Improving life at all ages

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 Scope of Opportunity/Need
$400 billion global water industry, yet billions of
people remain without access to potable water
1.  The underserved / unserved rural opportunity:
  India: 800 million rural pop: ~650K villages
  China: 740 million rural pop: ~600K villages
  Africa: 600 million rural pop: ~500K villages
  ROW (Excl. NA / Europe): 1 billion rural pop: >750K villages
estimated

2.  Urban and peri-urban market opportunities

WHI is uniquely positioned to address a critical

human/market need
 The Problem

  Approx. 2 million deaths per year due to waterborne

diarrheal diseases
  Stunted development of 60 million children annually
  Large infrastructure central systems not economically
viable in low-density (rural) areas
  Conventional decentralized technologies unsustainable in
most underserved environments
  Philanthropic/NGO efforts helpful but limited in scale and
sustainability
  Limited private sector innovation targeting underserved
 Population Distribution of Drinking Water Source in Ghana

Population Distribution of drinking water source

40
35
30
Percentages

25
20
15
10
5
0
Pipe borne Water Bore holes Protected Wells Sachet Water Bottled Water

Type of Water

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 Improved Water Supply

•  Protected Dug well

•  • Protected spring
•  • Borehole
•  • Small town pipe system
•  • Rain water harvesting

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 The WaterHealth Solution
  Breakthrough technology platform: UVWaterworksTM
•  Enables lowest cost water disinfection at scale
•  Sustainable in challenging environments
  Innovative business models
•  Decentralized approach
•  End-to-end: “total” systems offering
•  Purchase financing: access to private capital
•  User fees
•  Focus on health and affordability
•  Partnerships with NGOs and government
  Scale
 WATERHEALTH CENTRE

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The WHI “End-to-End” Engagement
  Source water selection and management
  Construction of aesthetic facility-community gathering
centre
  Construction and installation of water purification
equipment
  Management and maintenance of WaterHealth Centre
operations
  Community mobilization and health and hygiene education
  Purchase financing through commercial institutions
  Technical and customer services
  Outcomes assessment and monitoring
 Targeted Impact

  Unprecedented reach to people with greatest needs

  Major reduction of waterborne diseases

  Superior financial, social and environmental returns

 Amasaman WHC

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 Back of the WHC

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 Media/Micron & UV units

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 Overhead tanks with treated water

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 WHC Containers

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UV Waterworks - The Breakthrough Platform

• High efficacy – 3x WHO UV dose Biologically

contaminated
requirements Polished
water enters
Germicidal reflector
UV lamp
• High throughput – >5,500 gal/day

• Low operating costs - < $2 per Contoured

person/yr flow channels
Disinfected
water out
• Low energy needs – 60 watt bulb

• Low maintenance

• “Clean” process – no toxic waste

or by-products; no water waste

• Robust and versatile – indefinite

life
Typical System Configuration
 Current Product Offering

  WaterHealth Centres
•  Community-owned micro-utility
•  User fees pay for operations, maintenance, financing
•  Collected or delivered water
•  Aesthetic facility for community gatherings/programs
•  Two models currently deployed, differentiated by volume

  Water Stores (urban/peri-urban packaged water)

•  Retail water sales
•  Franchise model

Over 600 UV Waterworks installations worldwide

 Investment Cost Advantage

WHO-quality potable
water at lower
investment per
capita than even
borewells

Source: WHO/UNICEF Global Water Supply and Sanitation Assessment 2000 Report, average international per capita investment costs

Based on WHC-65 @ $ 55 serving 3,000 people with 10-20 Liters/person/day

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Cost in Ghana Cedis

0.4

0
0.1
0.2
0.3
0.5
0.6

Bottled Water

Packaged
Water(Satchet water)

Water Health Water

GHANA

Type of Water

26 Bore Hole Water

Raw Water Source

POTABLE WATER COMPARISON IN
 WaterHealth Revenue Model
1.  Direct WHC sales (assessment/equipment / facility/support)
•  Community provides land and access to water
•  Community makes cash down payment of 10% and above
•  Bank finances remainder-arranged through WHI

2.  Maintenance service contracts

•  Mandatory service contract for 8-10 years (loan term)
•  Service charges paid to WHI from user fees
•  Sale of service contracts after loan term

3.  Management fees

•  Share of net user fee revenues if system financed
•  Contracted services if system purchased outright

Customers have only one-time payment obligation throughout facility life

Major Areas/Issues of Initial Concern
  Ability and willingness to pay
  Community acceptance/political issues
  Adoption and usage rate growth
  Project financing
  Impact of “free” offerings from NGOs
 Learnings/Validation
  Enthusiastic response and willingness to pay
  Community ownership of attractive facility is a major plus and
mitigates political concerns
  Price points have been received as lower than expected
  Reputable supply chain partnerships established
  Interest from institutions in supporting the facility through
funding
  Many NGOs have indicated strong interest in partnering with
WHIN
WHI - Summary of Achievements
  Rapid growth installations/people served
•  2 sites in 2005
•  >40 new sites in 2006
•  >140 new sites in 2007
•  >300 new sites in 2008
•  Currently reaching more than 1 million people

  Increasing availability of customer financing

  SafeWater Network have been the major

funders of 5 out of 6 of the WaterHealth
Centres in Ghana.
 Market Recognition

  Business 2.0 : “Saving the planet has suddenly

become good business” (January, 07)
  Toshiba Green Innovation Award (May, 07)
  One of “ten to watch” in Clean Tech Revolution
(June, 07)
  Wall Street Journal “Behind one Company’s Effort
to Tap into India’s Water Market” (August, 2007)
 Competitive Position

  Only company (commercial) in space with primary focus on

underserved / rural populations
  End-to-end systems approach is unique and demanding
  WHI is technology agnostic – pursuit of innovation through
technology partnerships / acquisition
  Establishment of rural channels for sales and service
infrastructure will be major advantage
  Asset financing will enable unprecedented scale and market
reach
  Strong and experienced leadership team
 Summary: WATERHEALTH SOLUTION

•  Provides Quality Water

•  Affordable
•  Financial/Economic gains
•  Lowest Average per capita installation cost
comparatively
•  Scale
•  Sustainable
•  Community Ownership

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 THANKS

END OF PRESENTATION

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