DE.MEM LIMITED — Investor Presentation 2021

Mar 15, 2021

==> picture [822 x 297] intentionally omitted <==

==> picture [307 x 71] intentionally omitted <==

De.mem Limited (ASX:DEM) Proposed Acquisition Overview

16 March 2021

==> picture [229 x 290] intentionally omitted <==

CONTENTS

3 BUSINESS OVERVIEW

• 4 RECORD RESULTS

• 5 RECORD OUTLOOK

• 6 LARGE ADDRESSABLE MARKETS

• 7 ACQUISITION OVERVIEW

• 8 SIGNIFICANT SYNERGY POTENTIAL

• 9 MATERIAL CONTRACTS

• 10 CORPORATE OVERVIEW

==> picture [287 x 509] intentionally omitted <==

BUSINESS OVERVIEW

3

==> picture [92 x 32] intentionally omitted <==

De.mem PROVIDES A COMPLETE ONE-STOP SHOP OF DECENTRALISED INDUSTRIAL WATER TREATMENT SOLUTIONS

PRODUCTS

==> picture [44 x 45] intentionally omitted <==

• Equipment Sales: Decentralized (ie. on-site) water treatment systems

• Recurring Income: Services; Leasing; Consumables sales (ie. chemicals, filters, pumps etc)

• Technology : Patented & Proprietary Techy (water treatment membranes) is the cornerstone offering

==> picture [49 x 46] intentionally omitted <==

AUSTRALIAN COMPANY, WITH GLOBAL REACH AND GLOBAL MARKET OPPORTUNITIES

• Australian Company : Majority revenues from Queensland and Tasmania

• Global Reach: Singapore operations (R&D, manufacturing) and Germany (water treatment chemicals clients)

BLUE-CHIP GLOBAL CUSTOMERS

==> picture [48 x 53] intentionally omitted <==

• Mining/resources - Rio Tinto, Monadelphous, Bechtel, Civeo, Ausco

• Infrastructure/municipal - St Hilliers, Mulpha, Acciona, JRK, Taswater

• Industrial - FMC Technip, Tanaka, FCI Amphenol

• Power/electricity generation - AGL Energy

• Food & beverages/agriculture – Givaudan, Coca Cola, Krones

==> picture [221 x 147] intentionally omitted <==

==> picture [221 x 147] intentionally omitted <==

==> picture [220 x 147] intentionally omitted <==

IMAGE 3: Chemical dosing system

IMAGE 1: Water treatment membranes

IMAGE 2: Modular treatment systems

RECORD RESULTS

4

==> picture [92 x 32] intentionally omitted <==

CY2020: A record-breaking year

• Record CY2020 cash receipts - $16.5m, up 41%

• Record cash flow - inaugural cash positive +$544k, December Quarter 2020

• Record 58% recurring cash receipts - up from 38% in CY18 and 54% in CY19, comprising consumables sales (chemicals, membranes, filters, pumps) and services (Build, Own, Operate; and Operations & Maintenance).

• Record 31% margins - from 25% in CY18 and 26% CY19, driven by high margin consumables and services.

• Record acquisition performance – recent acquisitions showed strong cross-sell growth, with Pumptech up +67% to CY20 $4m cash receipts; Geutec up +18% to $2.6m

• Strong balance sheet - $5.4m cash and term deposits as at 31 Dec 2020.

GROWING CASH RECEIPTS

INAUGURAL CASH POSITIVE

GROWING MARGINS

==> picture [517 x 203] intentionally omitted <==

----- Start of picture text -----

Annual cash receipts (A$M)
Quarterly cash receipts (A$000s)
----- End of picture text -----

==> picture [242 x 203] intentionally omitted <==

----- Start of picture text -----

Gross margin (% revenue)
----- End of picture text -----

5

RECORD OUTLOOK

==> picture [92 x 32] intentionally omitted <==

SIGNIFICANT CY2021 GROWTH EXPECTED UNDERPINNED BY RECURRING INCOME AND CONTRACTS

==> picture [45 x 47] intentionally omitted <==

• Significant CY2021 growth expected

• Visible ~$14m CY2021 cash receipts comprising ~$10m recurring and $4m contracts as at March 2021 (ie. ~85% of CY2020 cash receipts already visible)

• Strong pipeline leveraged to Covid-19 recovery as project deferrals go live

De.mem: AUSTRALIAN COMPANY, GLOBAL REACH

RECORD OUTLOOK

==> picture [344 x 234] intentionally omitted <==

Offices Projects Completed

==> picture [349 x 253] intentionally omitted <==

==> picture [33 x 52] intentionally omitted <==

PATENTED & PROPRIETARY TECHNOLOGY: world-leading membrane technology is the cornerstone offering

LARGE ADDRESSABLE MARKETS

6

==> picture [92 x 32] intentionally omitted <==

GROWING AUSTRALIAN MARKET SHARE, WITH GLOBAL OPPORTUNITIES

AUSTRALIA: A$300m water treatment systems market, with cross-sell into ~$2 billion pumping and chemicals markets p.a.

GLOBAL: US$21 billion, growing ~10.4% p.a

US$21bn A$300m Global Australia

• US$21 billion global market for packaged/decentralised water treatment systems, growing at 10.4% p.a . since 2015 (1).

• ~A$300m Australian market for packaged/decentralised water treatment systems (1).

• Driven by water pollution, water scarcity, and increased environmental regulation.

• Highly fragmented - smaller operators, limited offering, not institutional grade suppliers.

• Decentralised solutions are cost-efficient and easy to deploy.

• Large centralised plants are inefficient, requiring large capex and lengthy deployment.

• Cross-selling opportunities include:

  • $1 billion p.a. annual pumping equipment market (2)

  • ~$1 billion p.a. water treatment chemicals market (3)

• (1) Source: Company estimates

• (2) Australian Pump Industry Association

• (3) Australian Water Treatment Chemicals Market Report

(1) Source: Markets & Markets, BCC Research

ACQUISITION OVERVIEW

7

==> picture [92 x 32] intentionally omitted <==

De.mem intends to acquire the assets of Capic, Capic is a well-established, Perth-based supplier of high-value add, specialty chemicals to blue-chip mining clients, complementing De.mem and providing significant cross-sell potential

About CAPIC

COMPLETE AUSTRALIAN COVERAGE

• Established 2006.

==> picture [61 x 19] intentionally omitted <==

==> picture [49 x 45] intentionally omitted <==

• Stable revenues of ~A$3.3m ( 3-yr average), EBITDA ~$600k (normalised).

Offices

==> picture [252 x 234] intentionally omitted <==

• Blue chip mining clients: ~50 clients, all in Western Australia, including blue-chip customers such as BHP Billiton, Northern Star, Pilbara Minerals and Iluka Resources.

Complementary acquisition provides synergy potential

• –

• Geography expands De.mem into strategic growth of Western Australia, completing national coverage with offices in Perth, Brisbane, Launceston, Melbourne, Adelaide.

• Product – expands De.mem’s product range.

• –

• Customers expands into W.A mining, where De.mem is currently underweight, and provides further national expansion opportunities, with both companies servicing blue-chip institutional clients.

Well structured acquisition

• Terms sheet signed to acquire Capic’s assets, with exclusive 3-month due diligence period.

==> picture [45 x 45] intentionally omitted <==

• Total ~$5.2m max payment comprising Base Consideration and Potential Milestones.

• Base Consideration $4.4m ($3.4m cash; ~$1m shares) is ~1.3x revenue.

• Potential Milestones comprising $250k (half cash/stock) revenue milestones in 2021, 2022 and 2023.

• Continuity: Founder and CEO of Capic to remain with De.mem after the acquisition.

• Risk management: upfront consideration <6% De.mem market capitalization; 2-year stock escrow; management continuity; stable revenue history; well-established.

• .

• Significant revenue cross-sell potential

8

SIGNIFICANT SYNERGY POTENTIAL

==> picture [92 x 32] intentionally omitted <==

Potential cross-sell De.mem products to Capic clients, and vice versa, with organic growth potential across Australia.

De.mem has a very strong cross-sell track record – increasing Pumptech +67% and Geutec +18%

SYNERGY

==> picture [134 x 32] intentionally omitted <==

==> picture [39 x 34] intentionally omitted <==

==> picture [102 x 31] intentionally omitted <==

==> picture [57 x 54] intentionally omitted <==

COMBINED

~A$3.3m revenue $16.5m CY20 REVENUES (3-yr average) cash receipts

Exclusively West Australia, Perth head office Specialty water treatment chemicals

GEOGRAPHY Bris, Launceston, Melb, Adelaide

• PRODUCTS Complete “one-stop shop” • ~100 clients

• • Blue-chip customers, mostly

• CUSTOMERS in Qld and Tas,

• • Multiple sectors, but underweight W.A. mining

• ~50 clients, all in W.A.

• • Blue-chip mining clients such as BHP Billiton, Northern Star, Pilbara Minerals and Iluka Resources.

CUSTOMERS in Qld and Tas, • Multiple sectors, but underweight W.A. mining Average CY2020 announced CROSS-SELL contract value = $861k POTENTIAL (see Slide 9 below)

Average contract value = ~$66k

~ A$19m proforma CY2020 revenue with organic growth momentum & synergy potential Complete Australian coverage, global reach

Expands “complete one stop shop”

~150 clients Positioned for Australian growth, with ~340 mining sites across Australia (~170 in W.A.) ( source: Minerals Council )

SIGNIFICANT CROSSSELL POTENTIAL

MATERIAL CONTRACTS - AVERAGE CONTRACT VALUE CY2020

9

==> picture [92 x 32] intentionally omitted <==

2020 total initial value of announced De.mem new contract wins = A$5.17m Average Contract Value (ACV) = $861k, range from $0.4m to $2.6m

Company	Date	Description	Value (A$m)
Global leader in sustainable	12-Oct-2020	Sewater desalination plant to convert seawater into highest	$2.6m
agriculture		quality treated water, exceeding Australian drinking water
		standards.
An Australian power station	29-Sep-2020	Membrane-based water treatment equipment to be used for the	$0.4m
		generation of ultra-pure, de-ionized water, required for the
		power generation process.
Givaudan, global leader in	10-Sep-2020	Build, Own, Operate of waste water treatment system	$0.8m
flavours and fragrances
Australian mining/resources	17-Aug-2020	Water treatment equipment, including hollow fibre membrane	$0.5m
client		elements, elements, pumps, control panel, software
Australian real	3-Aug-2020	Service contract for the operations & maintenance of water	$0.4m
estate/infrastructure client		treatment facilities, with ongoing consumables & chemicals
		sales
Metro Mining Ltd	28-Jan-2020	Waste-water treatment equipment and Build, Own, Operate,	$0.47m
(ASX: MMI)		Transfer (BOOT) agreement

CORPORATE SNAPSHOT

10

==> picture [92 x 32] intentionally omitted <==

Since August 2020, DEM has consistently outperformed the ASX Small Industrials index

	ASX code DEM Ordinaryshares 175.6m Market capitalisation $61.0m Cash on hand(31.12.20) $5.4m Listed on ASX 7 April 2017 Issueprice $0.20 Lastprice(05.03.21) $0.345 52 week high $0.35 52 week low $0.10 Average dailyvolume ~226,917 GICS classification Utilities

NA Pe Ne Pa Kr MAJOR SHAREHOLDERS	Singapore Early Stage Venture Fund 24.4% rennial Value Management Ltd 14.2% w Asia Investments Pte Ltd 6.8% thfinder Asset Management 4.2% oell (Andreas) 1.8%

==> picture [346 x 221] intentionally omitted <==

----- Start of picture text -----

DEM Stock Price
40
30
20
10
0
21-Feb-2020 21-May-2020 21-Aug-2020 21-Nov-2020
SHARE PRICE (CENTS PER SHARE)
----- End of picture text -----

==> picture [376 x 221] intentionally omitted <==

----- Start of picture text -----

DEM Relative to ASX Small Industrials
250
DEM relative to base index = 100
200
ASX Small Industrials Relative to base index = 100
150
100
50
0
21-Feb-2020 21-May-2020 21-Aug-2020 21-Nov-2020
BASE INDEX
----- End of picture text -----

LEGAL DISCLAIMER

11

==> picture [92 x 32] intentionally omitted <==

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

==> picture [148 x 34] intentionally omitted <==

==> picture [822 x 273] intentionally omitted <==

==> picture [233 x 53] intentionally omitted <==

==> picture [336 x 206] intentionally omitted <==

DE.MEM LIMITED (ASX:DEM) Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg

INVESTOR ENQUIRIES George Gabriel, CFA 0421 630 435