CALIX LIMITED — Investor Presentation 2021

Aug 18, 2021

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ASX Announcement

19 August 2021

Calix CEO to present at Australian Carbon Capture Conference

Sydney, Australia 19 August 2021 – Multi-award-winning Australian technology company Calix Limited (ASX:CXL, Calix or the Company ), is pleased to provide a copy of the presentation that Managing Director and CEO Phil Hodgson will be presenting at the Australian Carbon Capture, Utilisation and Storage Conference at 11:15am, Thursday 19[th] of August 2021.

Presenting: Phil Hodgson, Managing Director and CEO

Time: 11:15am AEST on Thursday 19[th] of August 2021

For more information on the conference click here: https://www.informa.com.au/event/conference/energyutilities/australian-carbon-capture-utilisation-storage-conference/

This announcement has been authorised for release to the ASX by:

Phil Hodgson, Managing Director and CEO Calix Limited 9-11 Bridge Street Pymble NSW 2073 Ph +61 2 8199 7400

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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 sustainable processing, 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: https://www.calix.global/ Twitter: @CalixLimited Youtube: 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

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Important Disclaimer

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This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”).

SUMMARY INFORMATION

This presentation contains summary information about the Company and its subsidiaries (“Calix”) and their activities current as at 14[th] August, 2021. The information in this presentation is a general background and does not purport to be complete.

NOT FINANCIAL PRODUCT ADVICE

This presentation is for information purposes only and is not a prospectus, product disclosure statement or other offer document under Australian law or the law of any other jurisdiction. This presentation is not financial product or investment advice, a recommendation to acquire Calix securities or accounting, legal or tax advice. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Calix is not licensed to provide financial product advice in respect of Calix securities. Cooling off rights do not apply to the acquisition of Calix securities.

FINANCIAL DATA

All dollar values are in Australian dollars ($ or A$) and financial data is presented as at or for the financial year ended 30[th] June 2020, unless stated otherwise.

PAST PERFORMANCE

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company's views on its future financial performance or condition. Investors should note that past performance, including past share price performance, of Calix cannot be relied upon as an indicator of (and provides no guidance as to) future Calix performance including future share price performance.

FUTURE PERFORMANCE

This presentation contains certain "forward-looking statements". The words "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may", "will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Calix and its directors) which may cause the actual results or performance of Calix to be materially different from any future results or performance expressed or implied by such forward-looking statements. The forward-looking statements should not be relied on as an indication of future value or for any other purpose.. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including the Company). In particular, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. Actual results, performance or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. The forward-looking statements in this presentation speak only as of the date of this presentation. Subject to any continuing obligations under applicable law, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this presentation to reflect any change in expectations in relation to any forwardlooking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation will under any circumstances create an implication that there has been no change in the affairs of Calix since the date of this presentation.

INVESTMENT RISK

An investment in Calix securities is subject to investment and other known and unknown risks, some of which are beyond the control of Calix, including possible delays in repayment and loss of income and principal invested. Calix does not guarantee any particular rate of return or the performance of Calix, nor does it guarantee the repayment of capital from Calix or any particular tax treatment. Persons should have regard to the risks outlined in this presentation and appendices.

NOT AN OFFER

This presentation is not and should not be considered an offer or an invitation to acquire Calix securities or any other financial products and does not and will not form any part of any contract for the acquisition of Calix securities.

This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any 'U.S. person‘ (as defined in Regulation S under the U.S. Securities Act (“U.S. Person”)). The new shares to be offered and sold in the placement (“Offer”) have not been, and none of them will be, registered under the U.S. Securities Act or the securities laws of any state or other jurisdiction of the United States. In addition, Calix has not been, and will not be, registered under the U.S. Investment Company Act of 1940, as amended (the "U.S. Investment Company Act") in reliance on the exception from the definition of “investment company” provided by Section 3(c)(7) thereof. The New Shares to be offered and sold in the Offer may not be offered and sold to, directly or indirectly, any person in the United States or any person that is, or is acting for the account or benefit of, a U.S. Person except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws and pursuant to an exception from the registration requirements of the U.S. Investment Company Act provided by Section 3(c)(7) thereof. This presentation may not be distributed or released in the United States or to any U.S Person. The distribution of this presentation in other jurisdictions outside Australia may also be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. Offers in Australia of the shares are only being made to persons who are “sophisticated investors” or “professional investors” (within the meaning of section 708(8) and section 708(11) of the Australian Corporations Act (Act) respectively) or otherwise pursuant to one or more exemptions under Section 708 of the Act so that it is lawful to offer the shares in Australia without disclosure to investors under Part 6D.2 of the Act.

NO ADVICE

None of Calix’s respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, dispatch or provision of this presentation and none of them makes or purports to make any statement in this presentation and there is no statement in this presentation which is based on any statement by any of them. For the avoidance of doubt, the advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents have not made or purported to make any statement in this presentation and there is no statement in this presentation which is based on any statement by any of them. To the maximum extent permitted by law, Calix and its advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents exclude and disclaim all liability, for any expenses, losses, damages or costs incurred by you as a result of your participation in the Offer and the information in this presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. To the maximum extent permitted by law, Calix and its advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this presentation and Calix’s advisers and its affiliates, related bodies corporate, directors, officers, partners, employees and agents, take no responsibility for any part of this presentation or the Offer. Calix and Calix’s advisers and their affiliates, related bodies corporate, directors, officers, partners, employees and agents make no recommendations as to whether you or your related parties should participate in the Offer nor do they make any representations or warranties to you concerning the Offer, and you represent, warrant and agree that you have not relied on any statements made by any of them in relation to the Offer and you further expressly disclaim that you are in a fiduciary relationship with any of them. Statements made in this presentation are made only as the date of this presentation. The information in this presentation remains subject to change without notice. Calix reserves the right to withdraw the Offer or vary the timetable for the Offer without notice.

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The CO Problem – Cement and Lime 2

Concrete is the second most utilised substance on earth after water…

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Cement and lime contribute around 8% of global anthropogenic CO2 emissions - about 2.2 Billion Tonnes per annum* Around 2/3 of those emissions are unavoidable – coming from the raw material (limestone)

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~1/3 of Global ~2/3 of Global Cement
Cement and Lime and Lime CO
2 Emissions
CO “Process Emissions”
2 Emissions
+ +
Limestone Lime
CaCO Heat CaO CO2
3
1 Tonne (~950 C) ~0.56 Tonne ~0.44 Tonne
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*Global CO2 emissions from cement production, 1928–2018 Robbie M. Andrew CICERO Center for International Climate Research, Oslo 0349, Norway, Earth Syst. Sci. Data, 11, 1675–1710, 2019 https://doi.org/10.5194/essd-11-1675-2019

Cement production involves high capital intensity, large processing plants

Typical plants produce >1 million tonnes of clinker per year and thus about ~1 millions tonnes of CO2

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Typical energy use 5 GJ / T Cement*

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Raw Cement Meal
Flue
(mostly limestone)
Stack Typical wholesale price ~€60 (~AUS$
14 to 33 % Filter / Clean-Up to per metric tonne
CO2
CO
2 abatement options:
Pre-Heater
CO
Tower 2 from FUEL: 1/3 of emissions
-
Substitute coal / natural gas
waste fuel / biomass / electricity
CaCO CaO + CO
3 2
CO
2 from LIMESTONE: 2/3 of emissions
- Amine Most developed
-
Direct Separation
Clinker
Gas flow Cooler - Calcium Looping
Rotary Kiln
-
Oxyfuel
Solids flow (clinkering)
Cement Clinker -
Ammonia
-
Membranes
Least developed
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Typical wholesale price ~€60 (~AUS$ 90) to per metric tonne

• Substitute coal / natural gas with waste fuel / biomass / electricity

*About the same energy required to power 5 million toasters !!

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Amine is one solution for cement CO 2 emissions…

In use for decades in the power industry – but expensive !

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Advantages*

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Raw Cement Meal
(mostly limestone)
Filter / Clean-Up Technically, the most developed
Ease of Retrofit
Flue Pre-Heater
Stack Tower Disadvantages
Cost
Amine
System (estimated €55 to €189 (AUS$ 85 to 290) / T CO2 avoided)
Energy
CO2 (estimated 7 GJ / T CO2 avoided)
Clinker
Gas flow
Cooler
Rotary Kiln
Solids flow (clinkering)
Cement Clinker
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*The Swing Adsorption Reactor Cluster for Post-Combustion O2 Capture from Cement Plants – Journal of Cleaner Production 223 (2019) 692 - 703

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Calix’s solution for cement CO 2 emissions…

“LEILAC” (Low Emissions Intensity Lime and Cement) “Direct Separation” Technology

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Advantages

Produces pure CO2 stream for no theoretical thermal penalty

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Raw Cement Meal
Flue
(mostly limestone)
Stack
Filter / Clean-Up
High purity CO 2
Pre-Heater
Tower
CaCO CaO + CO
3 2
Clinker
Gas flow
Cooler
Rotary Kiln
Solids flow (clinkering)
Cement Clinker
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Can be easily retrofitted in modules (eg 20% of throughput at a time)

Cost = lowest theoretical Easy to electrify

Disadvantages

Process CO 2 only (ie 60% of emissions) – for 100% will need fuel-side capture, biomass or renewable electricity

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Calix’s core technology

A patented Australian invention – a new type of kiln…

Raw cement meal or limestone

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CO 2 capture

Gas exhaust is high purity CO2

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A rapidly changing landscape…

• 2018 – EU ratifies phase 4 of the Emissions Trading Scheme, CO2 permit price jumps from €5 to over € 25. It has recently hit € 58 – a new record

• 2019 – HeidelbergCement pledges net zero CO2 by 2050, and a 30% reduction on 1990 emissions by 2025

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Renewable energy-ready

Chemical / Mineral Processing.

C

• 2020 – EU legislates net zero CO 2 by 2050. Several countries

• follow

• 2021 – EU votes to introduce carbon border-tariff by 2023

Cement meal for clinkering Mineral “Honeycomb” Lime

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Technology – operational experience and funded to demonstration scale

A rapid but so far very successful technical development program

	“LEILAC-1” “LEILAC-2” “LEILAC-3” Full Scale “CFC-15000” Built Funded In Planning 100% Replace 20% Slipstream Demonstration Pilot	“LEILAC-1” “LEILAC-2” “LEILAC-3” Full Scale “CFC-15000” Built Funded In Planning 100% Replace 20% Slipstream Demonstration Pilot	“LEILAC-1” “LEILAC-2” “LEILAC-3” Full Scale “CFC-15000” Built Funded In Planning 100% Replace 20% Slipstream Demonstration Pilot	“LEILAC-1” “LEILAC-2” “LEILAC-3” Full Scale “CFC-15000” Built Funded In Planning 100% Replace 20% Slipstream Demonstration Pilot	“LEILAC-1” “LEILAC-2” “LEILAC-3” Full Scale “CFC-15000” Built Funded In Planning 100% Replace 20% Slipstream Demonstration Pilot
		Australia - 2013	Belgium - 2019	Hannover - 2023	EU or US - ASAP
	Scale (kTpa) CO2	25	25	100 (20% of Full Scale)	500
	Feedstock	Magnesite	Limestone / Cement Meal	Cement Meal
	Capital Cost (€m)	11*	8*	16**	52 to 66**
	Operating Experience / Targets	•Over 7 years commercial operation •Minimal maintenance (~€60k pa, or <~5% of capital for a FOAK)	•Already commercial scale for lime •Technology concept proven •>95% purity CO2, Achieved 70% Max Throughput for cement •Test runs complete – public release soon – final report	•Target full integration of process and heat •Commercial demonstration scale module •FID early 2022, commissioning late 2023 / early 2024 •Test runs to end-2024	•Industry- and grant-funded (EU), or possible risked equity (US) •6 cement and 4 lime projects under discussion

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*FOAK Actual

**FOAK to NextOAK Target retrofit, including CO2 compression. NOAK target Greenfield is €37m including compression

What to do with CO 2 ?

There will be too much CO2 produced from lime and cement to be utilised – it must be safely sequestered

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US
Europe
CO Mainly Enhanced Oil Recovery (EOR) use, for which
2 Sequestration (CCS) Hub Development Projects:
there is already extensive infrastructure:
Northern Lights
Acorn
Teesside
Humber
Hynet
Ervia
Portos
Artos
South Wales cluster
3D - Dunkirk
Black Sea
Rhône valley
Portugal Ebro Basin
Overview of Existing US CO2 Pipelines
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Even under the most optimistic CO2 utilisation scenarios*, only about 13% of captured CO2 could be utilised…we have no alternative but to develop safe sequestration options

*Creating Value from Emissions – IEA Technology Report September 2019 https://www.iea.org/reports/putting-co2-to-use

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*US Oil and Gas Journal

What about Australia ?

What are we doing in Australia wrt heavy industry and manufacturing emissions, and what could we be doing ?

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Actually – we are doing quite a lot (albeit only recently !...and a bit hit and miss so far) .. Some examples and thoughts…

Initiative	(My) Description	(My) Thoughts…
Emissions Reduction Fund	On-line auction of Australian Carbon Credit Units (ACCUs) from certified emissions reduction projects	A zero-technical-risk scheme that will drive zero technical innovation, thus ultimately just cost-up current technologies funded by the taxpayer
(Federal) Low Emissions Technology Strategy	5-priority technologies in a roadmap, adjustment of ARENA and CEFC to drive innovation and commercialisation in new technology areas including CC(U)S	Good progress – but … - No 2050 target - Debate around ARENA / CEFC mandate and CC(U)S has so far ignored industrial CO2emissions – especially for industries such as cement, lime (used in steel, aluminium etc) – the debate must be widened - Process could lean towards “picking winners”
(State) NSW Net Zero Plan, VIC Climate Change Strategy	States leading the way in setting net zero targets by 2050 – in line now with over 2/3 of countries (by GDP) globally	Good progress • you have to start with an ambitious target! • you have to have programs that support technical development, spur local skills development, and lower risk for industry
Heavy Industry / Low Emissions Technology Co-Operative Research Centre	“HILT-CRC” - A$39m in funding, matched by A$45m in cash and $130m in-kind, to de-carbonise Australian heavy industry. Lead by Univ. of Adelaide, industry partners include ADBRI, Alcoa, Boral, Fortescue, South32	10 Great progress Program /approach similar to EU H2020 schemes – government – supported industry solutions with strong links to research institutions

*US Oil and Gas Journal

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We believe our responsibility whystarts at home. That’s whywe’re driven to use our unique technology to repair,we’re driven to use our unique skills to repair, preserve andand prevent future prevent future harm to it. Because there’s only one Earth, and it’s already ours.there’s only one Earth,

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Managing Director & CEO CFO & Company Secretary phodgson@calix.global dcharles@calix.global +61 2 8199 7400 +61 2 8199 7400

Investor Relations +61 401 809 653

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