CALIX LIMITED — AGM Information 2019

Nov 25, 2019

November 26, 2019

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ASX Announcement

Chair address to AGM

Sydney, Australia | November 26[th] , 2019.

Good morning everyone, I’m Peter Turnbull, the Chair of the Board of Calix.

I’d like to welcome everyone here today to Calix’s Annual General meeting, our second as a listed company.

When we took Calix through the public listing process in July last year, the investor proposition was built around a company with:

• positive cash flow, growing revenues and a strong balance sheet,

• growth partnerships with major global companies,

• a patented technology platform, with a funded development pipeline,

• and a committed team who have backed the company with their own cash over an extended period.

Elaborating from that earlier investment thesis, the upside optionality Calix brings across multiple, multibillion dollar lines of business with its technology has come from over $50m worth of investment to date.

Our progress over the period since IPO has been quite substantial in each of our lines of business, with:

• our waste-water business is set to be substantially enhanced through the acquisition of a US business generating substantial revenue, Inland Environmental Resources, Inc.,

• our aquaculture business growing over 3-fold during the 2018/2019 financial year, especially into China,

• our agriculture business executing its first commercial agreement, ahead of plan,

• our CO2 capture business for lime and cement completing its landmark pilot project in Belgium, on time and on budget, with the first results proving the technology concept which was its purpose, and

• our battery business completing an advanced battery materials facility on time and budget, the receipt of $3m in government funding for further development, and the recent announcement of the invitation to join the $150m Future Battery Industries Co-operative Research Centre, which is the largest battery development program in Australia.

All of these themes and characteristics play into increasing global tailwinds for more sustainable industries.

Globally, the trends for improved water quality, growing food more sustainably, and making better and cheaper batteries for both grid stability and electric vehicles are self-evident. These trends are set to only intensify, and Calix’s technology is well-positioned to provide potentially disruptive solutions in these industries.

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In Europe, for example, there has been increasing interest in CO2 abatement technologies, as individual countries are already bringing into law a target of net zero CO2 emissions by 2050. Since August 2018, when the European Parliament ratified a reduction in the CO2 emissions cap of 2.2% per year from 2020 to 2030, the price of CO2 permits under the European Emissions Trading Scheme has risen from around 5 euro per tonne to around 25 euro per tonne. CO2 abatement has become a major issue for European industry, and is an issue globally as well, and is therefore a major opportunity for Calix’s technology.

That’s why Calix’s mission, ‘’to help solve global challenges’’, also aligns with great business opportunities.

Our strategy remains focussed and consistent, and our achievements so far this financial year continue the momentum generated in our first year as a listed company on the ASX.

We have a three-pronged focus, on shorter, medium, and longer-term value creation for our shareholders.

• In the shorter-term value horizon, our focus is on sales revenue generation and growth. In the first quarter of this financial year, our sales grew 48% compared to prior period. We also announced the acquisition of an established, US-based waste-water treatment company, and completed a A$12m placement to raise the funds for the acquisition. The deal represents a significant strategic opportunity to rapidly expand our markets there, as well as lifting our sales revenues over 500%,

• In our medium-term value horizon, our licensing strategy into the agriculture market reached a major early milestone, with the execution of a 10-year sales and marketing licensing agreement with Afepasa – one of the largest sulphur-based crop protection companies in Europe. We expect our first commercial sales this financial year,

• In the longer-term value horizon, we were very pleased to announce Federal funding of $3m into the Calix-led Co-operative Research Centre for Advanced Hybrid Batteries, as well as completing our advanced battery materials reactor at Bacchus Marsh on time and budget. And just last Friday, we were also very pleased to announce that Calix had been invited to join the Future Batteries Industries Co-operative Research Centre, a $150m program funded by the Federal Government, and major Industry players, which is the largest battery development program in Australia.

Thank you all again for your support of Calix.

I would like to now ask Phil Hodgson to provide some more detail on our operations, strategy and the path we have planned ahead.

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About Calix

Calix is a team of dedicated people developing a unique, patented technology to provide industrial solutions that address global sustainability challenges.

The core technology is being used to develop more environmentally friendly solutions for advanced batteries, crop protection, aquaculture, wastewater, and carbon reduction.

Calix develops its technology via a global network of research and development collaborations, including governments, research institutes and universities, some of world’s largest companies, and a growing customer base and distributor network for its commercialised products and processes.

Because there’s only one Earth – Mars is for Quitters.

Website: www.calix.global Twitter: @CalixLimited

For more information:

Phil Hodgson Managing Director and CEO phodgson@calix.com.au +61 2 8199 7400

Darren Charles CFO and Company Secretary dcharles@calix.com.au +61 2 8199 7400

Simon Hinsley Investor Relations simon@nwrcommunications.com.au +61 401 809 653

Michelle Taylor

Media

Michelle_Taylor@recognition.com.au +61 2 9252 2266