DE.MEM LIMITED — AGM Information 2018

May 28, 2018

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De.mem Limited (ASX:DEM)

AGM Presentation 29 May 2018

Focus on Execution: Key Achievements

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Key Milestones Achieved since IPO (2017)

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De.mem enters
into a $500,000
contract to sell a Raised $2.5
Listed on ASX, water treatment million in share
raised $4.5 million plant in Vietnam placement
Oct-
April June Aug Sep Nov
Dec
17’ 17’ 17’ 17’ 17’
17’
New membrane Acquisition of Multiple project
manufacturing Akwa-Worx in awards in
facility operational Australia Australia worth
in Singapore p. 6 ~2.1 million in
p. 5 total revenues
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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Key Milestones Achieved since IPO (2018)

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Successful
completion of pilot In-licensed new Revenue
trials for NF Forward Osmosis Secured 1.7 forecast
membrane with (FO) membrane million contract increased to
positive results developed at NTU in South $10-12 m in
p. 7 p. 8 Australia 2018
Feb Mar Mar Mar Apr May May May
18’ 18’ 18’ 18’ 18’ 18’ 18’ 18’
Revenues First Entered lucrative Launched new
forecasted to commercial food & beverage Ultrafiltration
grow to $8-10 orders for NF segment through (UF)
million in 2018 membrane Aromatec membrane to
received initiative the market
p. 8 p. 9
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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

New Membrane Manufacturing Facility Operational in Singapore

• With the proceeds from the IPO, De.mem has started its own membrane manufacturing facility in Singapore

• At the De.mem factory, different types of hollow fiber membranes and modules can be produced

• The factory has been fully operational since mid-2017 and manufactures industry standard membrane modules (4-inch and 8-inch diameter)

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Acquisition of Akwa-Worx in Australia

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Revenue approximately $7 million (AUD) in the 12 months to 30 June 2017

Recurring annualised revenue $2.2+ million (AUD)

Based on stable, long term service agreements

Normalised EBITDA approximately $800,000 (AUD) in the 12 months to 30 June 2017

De.mem acquired Akwa-Worx for A$1.5m in cash and A$460k in shares, plus three milestone tranches of A$125k in cash and A$125k in shares each

Akwa-Worx is a leading provider of water and waste-water treatment systems in Queensland and Australia

Product lines include Ultra-Filtration (UF) - Reverse Osmosis (RO) based systems, Membrane Bioreactors (MBRs), bioreactors and chemical dosing systems

The acquisition aimed to generate accelerated growth in particular by

• Providing a strong platform for the roll out of De.mem membrane products

Long-term customer relationships with leading corporations from the Australian mining sector

• Cross selling opportunities

• Regional/geographical synergies

• Creating economies of scale

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Development of Nanofiltration Membrane to Commercial Stage

• De.mem holds a worldwide, exclusive license from Nanyang Technological University (“NTU”), Singapore, for a novel low pressure hollow fiber nanofiltration (NF) membrane

• Enables significant reduction in operating cost (less power consumption due to lower pressure required) and investment relative to traditional technologies, while providing high quality treated water

• De.mem successfully completed commercial scale trials in Singapore and Vietnam (announced 20 February 2018)

• Received first commercial orders for projects using the new technology in Singapore and Vietnam (announced 3 April 2018)

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

In-licensed New Forward Osmosis Membrane for Industrial Waste Water Treatment

• On 8 March 2018, De.mem signed an exclusive license for a novel hollow fiber Forward Osmosis membrane (FO) for applications in industrial waste water (de-watering of concentrate / waste from membrane based water treatment plants)

• Working principle of FO is based on osmotic pressure differences, without the use of external mechanical pressure

• Helps to reduce the waste from membrane based water treatment plants and leads to substantial cost savings for customers

• Large addressable market of $400m p.a.*

• Mature technology with first commercial projects expected from 2019 onwards

*Source: ForwardOsmosisTech (projection for market for “Zero Liquid Discharge” applications of FO)

Working Principle of Forward Osmosis Membrane

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Membrane Membrane
pure
water
used draw used draw
water solution water solution
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FO

Inventors Prof. Wang Rong and Prof. Anthony Fane Awarded with the Alternative Water Resources Prize by UN Secretary-General Ban Ki Moon

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Entry Into Lucrative Food & Beverage Segment Through Aromatec Initiative

• As announced on 8 May 2018, De.mem took strategic stake (32%) in Aromatec, a Singaporean company targeting the food & beverage industry

• Aromatec offers innovative membrane based products for the de-watering of flavours, fruit juice, dairy and other products – based on the innovative hollow fiber Forward Osmosis membrane technology developed at NTU, Singapore

• Significant opportunity – the use of membrane technologies in the food and beverage industry is estimated to be a market worth ~US$5.8 billion per year by 2020*

• De.mem to provide systems as manufacturing partner – strong pipeline of opportunities building

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*Source: BCC Research

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Corporate Overview

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Corporate Snapshot

ASX code	DEM
Ordinary shares	107.7m
Market capitalisation	$17m
Cash on hand (31 March 2018)	$2.5m
Listed on ASX	7 April 2017
Issue price	$0.20
Last price (24 May 2018)	$0.16
52 week high	$0.38
52 week low	$0.14
Average daily trading volume	~90,000
GICS classification	Utilities

50%

50%

New Asia Investments (two funds)

Other

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Overview

Introduction

De.mem Group (DEM) is a Singaporean-Australian company which builds decentralized water treatment systems for customers in the Asia Pacific region

Key Target Markets

Potable water Sewage treatment Industrial waste water

Key Product Lines

Membrane based water treatment systems MBRs Bioreactors Chemical dosing systems Hollow fibre membranes

Ke Investment Pro osition y p

DEM strives to become the market leader in the fragmented de-centralized water treatment segment – based on a range of new and revolutionary membrane technologies developed at NTU, Singapore

Locations

Perth Brisbane Singapore Ho Chi Minh City, Vietnam

Employees

45

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Offices

25 Australia 12 Singapore 8 Vietnam

Projects Completed

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De.mem Limited (ASX:DEM) Investor Presentation March 2018

Water & Wastewater Treatment Systems

• De.mem builds, owns, operates and sells a wide range of water and waste water treatment systems turnkey to the customer

• Systems use membranes as their key component (filter)

Potable Water

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Sewage

Industrial waste water

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Process Water & Recycling

• Customers include mining companies, global EPC contractors, municipalities and water utilities

xxx

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De.mem Limited (ASX:DEM) Investor Presentation March 2018

Underpinned by the Best Water & Waste Water Treatment Technologies

• Collaboration with Nanyang Technological University (NTU), Singapore – one of the world’s leading institutions for water technology research & development

• NTU ranked no. 2 in membrane research worldwide by Lux Research (2013)

• De.mem owns the exclusive rights to a range of membrane technologies developed by NTU

• Technology portfolio includes breakthrough innovations such as

• low pressure hollow fibre Nanofiltration (NF) membrane and

• hollow fiber Forward Osmosis (FO) membrane

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De.mem Limited (ASX:DEM) Investor Presentation March 2018

Board with Strong Industrial Background

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Cosimo Trimigliozzi Chairman

• COO of Wild Flavors International

• Managing Director Givaudan Asia

• MBA, University of Basel, Switzerland

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Andreas Kroell CEO and Director

Bernd Dautel

Non-Executive Director

• Director New Asia • Director New Asia Investments Investments

• Deutsche Bank • Managing Director Corporate Finance Wieland Metals Asia Pacific

• Deloitte Audit & Advisory

• Master of Chemical Engineering, Karlsruhe University of Technology, Germany

• MBA, University of Frankfurt, Germany

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Stuart Carmichael

Michael Edwards Non-Executive Director

Non-Executive Director

• Partner & Director • Non-Executive Director Ventnor Capital Norwood Systems

• • Executive Vice Limited (ASX:NOR) & Dawine Limited

• President UGL (ASX:DW8)

• Executive Vice President UGL Limited (ASX:UGL) KPMG Corporate Finance

• BBus (Economics / Finance), BSc (Geology), Grad Dip (Oen)

• Bcom, CA

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Experienced Management Team

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Shane Ayre Managing Director, Akwa-Worx

• Founder of Akwa-Worx

• 20 years industry experience

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Kian Lip Teo Chief Operating Officer

• Lien Aid

• Bachelor/Master, Nanyang Technological University, Singapore

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David Chua

Director, Membrane Manufacturing

• Mann+Hummel

• Hyflux

• 10+ years experience in membrane production

• Bachelor/Master, Nanyang Technological University, Singapore

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Nicanor Suarin Chief Engineer

• Hyflux

• Doosan Hydro

• 30+ years experience in process and system design

• Bachelor of Engineering, MBA, Philippines

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Financials and Outlook

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Financials

A$m	2016	2017	2018 Forecast	•	Revenue growth in CY17 from $0.3 to $2.9m
Revenues	0.3	2.9	10.0 – 12.0	•	Revenue forecast to grow further to
					$10m-12m in CY18 based on strong
					sales pipeline in Australia and Asia
COGS	0.4	2.4	n/a
				•	Forecast includes approx. $3m in
Gross Margin	(-0.1)	0.5	n/a		recurring revenue from BOO & O&M projects
				•	Gross margins of approx. 18% in CY
Gross Profit (%)	Neg.	18%	n/a		2017
				•	Cash balance of $2.5m as of 31 Mar
Net Operating Cash Flows	(-1.2)	(-2.4)	n/a	•	’18 – well funded for growth in 2018 Reasonable cost structure: -$2.4
					million operating cash outflows in
					CY17

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De.mem Limited (ASX:DEM) AGM Presentation 29 May 2018

Near Term Growth Drivers

• ➢ CY 2018 revenue forecast $10-12 million

• ➢ Award of customer contracts

• ➢ Expansion into key growth markets

• ➢ M&A / Partnerships / JV’s

• ➢ Access to new technology / expansion of intellectual property portfolio

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Legal Disclaimer

This presentation has been prepared by De.mem Limited and its related entities (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters.

No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company.

Future Matters | This presentation contains reference to certain intentions, expectations, future plans, strategy, revenue forecasts and prospects of the Company. Those intentions, expectations, future plans, strategy, revenue forecasts and prospects may or may not be achieved and may be forward looking statements. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy, revenue forecasts and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.

US Disclosure | This document does not constitute any part of any 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 “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

All figures included in this presentation are in AUD$ unless otherwise stated. Assumed exchange rate of AUD$1:USD$0.75

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De.mem Limited (ASX:DEM) Investor Presentation March 2018

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De.mem Limited (ASX:DEM) Andreas Kroell CEO

De.mem Limited investor@demem.com.sg

Media & Investor Enquires Henry Jordan Six Degrees Investor Relations henry.jordan@sdir.com.au +61 431 271 538

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