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EDEN INNOVATIONS LTD AGM Information 2018

Nov 13, 2018

64820_rns_2018-11-13_d6ada602-5e19-444c-b683-3a5870cfefd5.pdf

AGM Information

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2018 Annual General Meeting Presentation

14 November 2018

EDE:ASX

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EDEN INNOVATIONS | ASX: EDE

Disclaimer

FORWARD LOOKING STATEMENTS

This presentation includes certain forward-looking statements of Eden’s management. Forward-looking statements are statements that contemplate the happening of possible future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when or whether such performance or results will be achieved. Forward-looking statements are based on information known to Eden when those statements are made or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. The forward-looking statements specified in this presentation have been compiled by Eden’s management on the basis of assumptions (which may or may not turn out to be accurate) made by management and considered by management to be reasonable. Eden’s future operating results, however, are impossible to predict because of risks and uncertainties, and no representation, guarantee, or warranty is to be inferred from those forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements include, but are not limited to, the following:

Statements relating to Eden’s future production capacity and sales levels, and business and financial performance; Statements relating to future research and development results and regulatory approvals of Eden’s products; Statements relating to Eden’s competitive position; and Other statements relating to future developments that you may take into consideration. Actual results of Eden’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: global economic stability, continued compliance with government regulations regarding production and use of carbon nanotubes in the U.S. or any other jurisdiction in which Eden conducts its operations; changing legislation or regulatory environments in the U.S. and any other jurisdiction in which Eden conducts its operations; credit risks and product sales affecting Eden’s revenue and profitability; exposure to product liability claims; changes and new competitive products in the specialty concrete admixture industry; the level of market acceptance and demand for EdenCrete™; Eden’s ability to effectively market all the product it can produce; Eden’s ability to manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities; and general economic conditions.

This presentation has been prepared as a summary only and does not contain all information relating to Eden’s assets and liabilities, financial position and performance, profits and losses and prospects: it should be read in conjunction with all of the publicly available information in relation to Eden which has been released to the Australian Securities Exchange (ASX Code: EDE).

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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2017- 2018 Highlights

  • EdenCrete[®] HC and EdenCrete[®] Pz developed / EdenCrete[®] Pz - NTPEP trials to complete December 2018 and ASTM trials in mid- 2019

1

2

Georgia - FHWA approval of EdenCrete[®] in federal funded GDOT project ($525,000) - September 2018 MARTA White Paper – completed October 2018

3

  • US revenue generation accelerating - commercial/ government projects in Georgia, Texas, Colorado

Strong US Government traction- now approved by 11 State DOTs and FHWA (Georgia), in use in Texas & Georgia, DOT trials in Colorado, Idaho, N Carolina

4

  • International expansion – Korean trials commenced, Australian/NZ distributor – appointed September 2018 - Emerging European / Indian interest in hydrogen /carbon

5

EdenPlast[TM] product development continued towards future 6 plastics market entry

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EDEN INNOVATIONS | ASX: EDE

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Corporate Snapshot

CORPORATE STRUCTURE

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Eden Innovations Ltd
Eden Innovations LLC EdenCrete Industries Inc
SHAREHOLDERS
6% Board & management
Institutional & Other
39%
Tasman Resources
55%
Note: Tasman Resources is 38% owned by
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Eden Innovations India
Pvt Ltd
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Note: Tasman Resources is 38% owned by Eden Innovations Directors Gregory Solomon and Douglas Solomon

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CAPITAL STRUCTURE

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Eden Innovations Ltd

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Symbol EDE
Issued shares 1,521,399,119
Stock Price [(1)] A$0.074
Market Cap [(1)] ~ A$112 million
Cash ~ A$2.1 million [(1)]
Debt ~ A$1.05 [(2) ]
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  • 1) As at 9 November 2018

  • 2) Mainly long term vendor finance of purchase price on first Colorado property, 2% interest rate

EDEN INNOVATIONS | ASX: EDE EDE:ASX

4

Executive Management Team

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Gregory Solomon Executive Chairman

Chairman of Eden since incorporation in 2004. More than 30 years experience as a director of public companies. Currently executive chairman of Tasman Resources Ltd and a non-executive chairman of Conico Ltd.

A commercial lawyer by background with more than 30 years Australian and international experience in many areas including mining and energy law, commercial and corporate law.

LLB

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Aaron P. Gates CFO, Company Secretary

A qualified accountant with more than 14 years of accounting, audit and corporate finance experience.

Chartered Accountant and Chartered Secretary.

Bachelor of Commerce (Curtin University) with majors in accounting and business law and completed a Diploma of Corporate Governance.

BCom CA AGIA

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Roger Marmaro President / CEO - Eden Innovations U.S

Responsible for corporate planning and implementation, management development and commercial business expansion.

Co-inventor of Hythane®.

Formerly at ADA Technologies and

BOC Edwards.

BFA in Design, BSME

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Robert Reid III Executive Business DirectorEdenCrete Industries Inc. US

Responsible for assisting in the strategic planning, development of the sales and marketing strategy, policies and operating procedures.

Mr Reid has over 40 years of experience in Risk Management and Private Equity dealing with a wide array of operating companies. Mr Reid has a degree in economics.

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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2. PRODUCT OVERVIEW

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EDEN INNOVATIONS | ASX: EDE

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Core Expertise – Carbon Nanotubes

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Harnessing the benefits of carbon nanotube technology for commercial application in concrete and plastics

TEM image of Eden’s MWCNT

Key properties:

  • Tensile Strength: 100-300x steel

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How carbon nanotubes work

Act as nucleation points for dense cement hydration - builds on all surfaces of CNT

Create quintillions (10[18] ) of flexible, super-strong carbon nano-structures throughout the concrete Produces denser, stronger, tougher and more durable concrete

  • Weight: ~17% of steel

  • Highly conductive: thermally and electrically

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EDEN INNOVATIONS | ASX: EDE

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EdenCrete[® ] Range

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  • EdenCrete[®] is a cost effective, carbon nanotube enriched liquid admixture for concrete that is mixed into wet concrete

  • Increases flexural, tensile & compressive strength, and abrasion resistance

  • Reduces shrinkage, permeability and damage from salt and chemicals and increases freeze/ thaw resistance

All key qualities for infrastructure

EdenCrete[®] Pz EdenCrete[®] HC EdenCrete[®] Suitable for Portland Suitable for both High concentration Pozzolanic and lower cost cement Portland cements

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Carbon nanotubes in fresh cement paste
Monash University - Helium ion microscope image
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EDEN INNOVATIONS | ASX: EDE

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New product development: EdenPlast[TM]

Eden aims to enter the plastics market with its new product, EdenPlast[TM ]

  • Aims to develop CNT in Nylon 6 plastic and other polymers

  • Jointly funded project with University of Queensland

  • Awarded Australian Research Council funding

  • Relatively low-cost processing method

Suitable plastics markets:

  • Automotive and packaging

Highly encouraging preliminary results:

  • 50% increase in stiffness

  • Increase in electrical conductivity

Next steps:

  • ARC R&D project into possible commercial scale-up underway

Proven in-house capability

Development, testing and commercialisation

  • EdenCrete[®]

  • EdenCrete[®] HC

  • EdenCrete[®] Pz

  • OptiBlend[®]

  • Hythane[®]

HC and Pz products launched at World of Concrete in January 2018

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EDEN INNOVATIONS | ASX: EDE

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Barriers to Entry-EdenCrete[®]

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10 years of product development

Product field testing by Government departments after initial approval typically requires 12 months, including lab tests

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Typical sales cycle for EdenCrete[®] is 6 -9 months, after successful field testing by the relevant DOT

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100% ownership of the Pyrolysis Project (CNT production) Patents granted for Pyrolysis Project

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Patent applications pending for EdenCrete[®] , EdenCrete[® ] Pz and EdenPlast[™]

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EDEN INNOVATIONS | ASX: EDE
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10
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3. EdenCrete® - GLOBAL MARKET OPPORTUNITY

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EDEN INNOVATIONS | ASX: EDE

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EdenCrete[®] - Applications & Customers

ADVANTAGE

SUITABLE FOR

• Roads, airfields, coastal, marine, dams, sewers, bridges, runways, coastal/marine environments, dams, sewer/water pipelines

Permeability / salt resistance / shrinkage

Abrasion resistance

• Hard-stand areas, warehouse floors, roads, bridges, pavements

Flexural, tensile • Beams and slabs, roads and bridges, & compressive precast & pre-fabricated products, high strength / early rise buildings, retaining walls strength

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CUSTOMERS

  • Government Department of Transport authorities - ~40% of US concrete market

  • Pre-cast concrete manufacturers - ~30% of US concrete market

  • Ready-mix suppliers - ~30% of US concrete market

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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EdenCrete® - Outstanding Product Benefits

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ABRASION RESISTANCE
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EdenCrete [® ] Reference
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Dramatic increase in abrasion resistance

REDUCED PERMEABILITY

REDUCED PERMEABILITY REDUCED PERMEABILITY
Chloride Content (Wt.%)
Depth (mm)
Control Mix –
Not Ponded
Control Mix –
Ponded
Penetrated
Chloride Values
10-20
0.004
0.059
0.055
25-35
0.006
0.045
0.039
40-50
0.004
0.005
0.001
55-65
0.003
0.004
0.001
Depth (mm)
Test Mix – Not
Ponded
Test Mix –
Ponded
Penetrated
Chloride Values
10-20
0.006
0.012
0.006
25-35
0.004
0.005
0.001
40-50
0004
0004
0000
MARTA Test Results

.
.
.
55-65
0.003
0.003
0.000
Dramatic reduction in permeability

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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EdenCrete[®] - Value Proposition

EdenCrete® - Value Proposition
• Cost advantages
resulting from price and
reduced concrete
volumes, plus faster
setting times
• Combines multiple
product advantages
• Liquid suspension, easy
controlled mixing
• Environmental impact
from reduced concrete
consumption
Products
Increases
Compressive
Strength
Increases
Split-
Tensile
Strength
Increases
Flexural
Strength
Reduces
Shrinkage
Reduces
Permeability
Increases
Abrasion
Resistance
Drawback





Fibers
(PP,PVA,ACRY,LOK)



Reduced workability,
difficult to handle
Shrinkage
Reducers

Strength reduction,
expensive, reduces
workability, impacts
entrained air
Steel
Reinforcement


Expensive, corrosion
potential, weight
factor, job-site safety
Surface Hardener


Potential
alkali-silica reaction
Silica Fume, Fly
Ash



Expensive, increased
water, hard to handle,
worker/workplace
safety
Steel Fibres

Reduced workability,
difficult to handle, job-
site safety

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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  • Government Validation and Commercialisation

Government approval for use by Departments of Transport (DOTs) in 11 US States, 26% of total US bridges in need of repair, with 11 further DOT applications pending

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Georgia Department of Transport (GDOT) mandated use of EdenCrete® in all State funded full depth slab repair projects in Jan 2017

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Federal Highway Administration (FHWA) approval for use of EdenCrete® in federally funded, repair projects in Georgia in September 2017. First FHWA contract (US$525,000) commenced Q3 2018.

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Customer sales to Texas Department of Transport-approved pre-stressed bridge beam manufacturer. Sales expanding to include additional plant for Valley Prestress

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MARTA Whitepaper endorses use of EdenCrete® and confirms increased durability of concrete and long term cost savings when EdenCrete® used

  • DOT Fact Sheets Highlight Grim State of US Roads and Bridges – 9 July 2015

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WA
VT
MT
OR
ID
MI
NV
CO WV
VA MD
MO
NC
TN
OK
AZ
AR
NM
MS
GA
LA
TX
AK
DOT Ma Le end
p g
Approved for Use
(APL or QPL not applicable)
DOTs where CNT admixture is on the
APL or QPL
APL or QPL or ‘Approved for Use’
(DOT dependent)
represent…

Under Review
25% of US population

26% of US bridges in need of repair
(approximately 37,800) Submission Pending
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  • 26% of US bridges in need of repair (approximately 37,800)

  • 39% of US total land area

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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EdenCrete® - Case Study

ABRASION RESISTANCE / ULTRA HIGH WEAR APPLICATION

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CONTROL TRIAL SLAB TYPICAL ULTRA HIGH LOAD EdenCrete[®] TRIAL SLAB Significant cracks and High loading/ abrasive application No cracks or evidence of wear wear after 6 months at site – repeat contracts

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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EdenCrete[®] - Cost Comparison

Ultra High Wear /Abrasion Resistance Application

Longer wearing concrete required less depth, without base and compacted layers.

This project delivered significant cost advantages to the customer.

This project has resulted in an increasing number of similar contracts

Concrete slab with wire mesh or macro-fibers

~ $15/ ft.[2 ]

Concrete slab 8.5” w/ wire mesh or macrofibers dosed at 4.5 lbs./yd.[3 ]

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Graded Aggregate
6”
Base
95% compaction
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Concrete slab with steel

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~ $22/ ft. [2 ]
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Concrete slab
w/ #4 steel
12”
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Graded Aggregate
6”
Base
95% compaction
Prepared sub-base
6” 95% compaction
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Concrete slab with EdenCrete[®]

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~ $12/ ft. [2 ]
Concrete slab
6”
w/ EdenCrete [ ® ]
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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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Commercialisation Progress

EdenCrete[®]

  • Bulk distribution contracts

  • Repeat business customers - government and private

  • Supply contracts vary by volume for each project

  • Significant revenue growth projected FY 2019 and FY 2020

  • • Targeted to be cash flow positive FY 2020

OptiBlend[®]

  • Customised one-off contracts

  • Typically installation plus unit purchase - US$ 23k-40k (AU $30k-50k)

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EDENCRETE REVENUE
600
500
400
300
200
100
0
FY16 FY17 FY18
EDENCRETE SALES BY VOLUME
25000
20000
15000
10000
5000
0
FY16 FY17 FY18
EDEN INNOVATIONS | ASX: EDE
US $,000
gallons
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Infrastructure Markets

  • Roads, Bridges, Tunnels

  • Ports and marine applications

  • Airports

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  • Railways

  • Dams and water systems

  • Bus transit stations/ light rail

  • Toll Roads

  • Public/ Private Partnerships

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EDEN INNOVATIONS | ASX: EDE

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Commercial Markets

  • Hardstand areas

  • Factories

  • Showrooms

  • Warehouses/ logistics hubs

  • Driveways / car parks

  • Precast

  • Building / construction

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EDEN INNOVATIONS | ASX: EDE

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Current sales pipeline

GEORGIA

COLORADO

GDOT State funded repair projects using EdenCrete[®]

  • EdenCrete® specified by name in repair projects

  • Further repair projects and bridge trial in pipeline

  • FHWA Federally funded projects using EdenCrete[®]

  • 1[st] large, FHWA funded pavement replacement project -11 lanes miles - order received Sept 2018 - US$525,000

  • • Next project being planned

  • Corporate, privately funded projects

  • Follow-up orders- warehouses and hardstand projects

  • Metropolitan Atlanta Rapid Transit Authority (MARTA) • Whitepaper - Potential projects under discussion

Ready mix companies

Denver Public Works / Colorado Department of Transport

(CDOT)

  • Projects expected - salt/chemicals, abrasion resistance,freeze thaw

• Follow-up trials and production scale up to meet future demand • Tunnels- EdenCrete® approved for shotcrete project - 2019 Commercial sales- driveways, tunnels (shotcrete), warehouses Vail and Gypsum-- Contracts bridges and road repairs

OTHER US STATES Precast and ready mix

     - Additional precast contractors, manufacturers being approached Various trials with ready mix companies- pozzolanic concrete mixes

  -
  • AUSTRALIA and KOREA

  • Development of standard ready mix designs underway for various applications incl. ports and warehouses

Parchem appointed Australian distributor – rollout in Q1 2019

Korean trials underway – sales anticipated Q1 2019

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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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Outlook & News Flow Pipeline

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OUTLOOK

Strong year on year revenue growth expected for FY19 and beyond driven by EdenCrete[®] sales based on :

  • Georgia - Growing number of existing projects already underway including US$525,000 order for first FHWA project

  • Georgia - MARTA Whitepaper in October 2018 endorses use of EdenCrete[®] ; states it will save MARTA costs over long term

  • Colorado - Colorado DOT, Denver Public Works trials underway

  • DOT trials in North Carolina (bridge) and Idaho (road) underway

  • Georgia, Colorado, New York - commercial sales and trials increasing

  • Anticipated pipeline of commercial and infrastructure projects including Georgia with DOT/ FHWA projects / MARTA contracts, and in Colorado and States where sales and various trials underway

  • Appointment of Australian distributor anticipated to produce increasingly strong sales of EdenCrete® from 2019

ANTICIPATED NEWS FLOW

  • Increasing number of contract wins for EdenCrete® expected over next 6-12 months

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State DOT approval process by the US National Transportation Product Evaluation Program (NTPEP) reporting in early Q2 2019

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  • ASTM (international standards) trials of EdenCrete® Pz in early 2019

  • Increasing sales expected for EdenCrete® HC and EdenCrete® Pz

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  • Potential Korean distributor currently undertaking trials – may lead to appointment as a distributor Increasing European interest

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Significant interest anticipated when plastics and polymer R&D project moves towards commercialisation in 2019.

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EDEN INNOVATIONS | ASX: EDE

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Growth Strategy

  • Georgia production plant– USD $22m in incentives secured from Georgia Govt to establish EdenCrete[® ] lobal g

production plant in Augusta, GA. Will increase 2.4m gallon per year output capacity of Colorado facility, by estimated 12.5m galls/yr.

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Enter the global plastics market
with EdenPlast [®] (developed
with Queensland university)
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• EdenCrete [®] P and with Queensland university) Prime 65 acres industrial site
EdenCrete [®] HC – acquired

Research and development of
increasing trials to generate
concrete with little or no steel CAPACITY EXPANSION 04
sales to new and existing
reinforcement (with Deakin
US infrastructure and
commercial and customers University)

Significantly increase US sales
of EdenCrete [® ] over next two

DOT bridge trials planned
PRODUCT RANGE 03
years – commercial and
or underway in several
infrastructure markets
States

Geographic market expansion
into Europe / Asia (Korea) /
FURTHER PRODUCT
Oceania (Australia)
02

Increase OptiBlend [® ] sales in TESTING
India and USA
SALES GROWTH 01
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EDEN INNOVATIONS | ASX: EDE EDE:ASX

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4. FINANCIALS

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EDEN INNOVATIONS | ASX: EDE

24

Financials

Year Ended June 2018

SUMMARY

$,000
FY18
$,000
FY17
% change
Revenue 1,318 949 38.8% up
Other
comprehensive
income /(loss)*
419 (31) n/a
Total comprehensive
income / (loss)
(10,406) (11,295) 7.9% down

attributable to
members of the
parent

BALANCE SHEET

$,000
30 June 2018
$,000
30 June 2017
Cash and cash
equivalents
3,490 7,985
Total Assets 20,132 22,981
Total Liabilities 2,370 3,416
Net Assets 17,762 19,565
Total equity 17,762 19,565

CASH FLOW

$,000
30 June 2018
$,000
30 June 2017
Receipts from
customers
1,013 1,165
Net cash used
in operating
activities
9,204 8,451
Cash at end of
period
3,490 7,985
  • Exchange differences on translating foreign operations

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EDEN INNOVATIONS | ASX: EDE

25

5. OUTLOOK & SUMMARY

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EDEN INNOVATIONS | ASX: EDE

26

Corporate Journey

2005

  • Eden & University of Queensland awarded ARC Grant for Carbon Nanotube research

2006

  • June – Eden admitted to official list of ASX

  • June – Eden wins major US Technology award for Hythane

  • September – Eden in US Energy Department Breakthrough –

2007

  • May – Eden enters agreement with Larsen & Toubro Engineering group in India – Manufacturing and marketing hydrogen and Hythane™ technology

2008

  • January – Eden wins international tender to supply India’s first public hydrogen fuel station

2009

March – Ashok Leyland launches new Indian Hythane™ Engine • September – Eden Secures maiden Indian sales of

OptiBlend[® ] system. First 3 sales of OptiBlend[®] dual fuel system in Assam India

2010

  • February – Eden signs agreement with Gail India Ltd and Mahangar Gas Ltd for commercial sized Hythane Demonstration project

  • August – Pyrolysis (CNT) Project acquisition from the University of Queensland completed. Eden now owns 100% of the intellectual property

2011

  • January – First US Production – super strength carbon nanotubes (CNT)

April – Testing commenced on carbon nanofibres in rubber, coating, plastic and concrete September – Eden released next generation OptiBlend[®] December – Initial order for 12 Optiblend[® ] Dual fuel kits in US

Historic Hydrogen Fuel Test

2013

  • July – Eden & University of Queensland awarded second ARC Grant for Carbon Nanotube research

2014

  • October – Eden’s carbon concrete additive wins Australian Civil Contractors Federation’s Environment award

2015

  • February – First US trial of EdenCrete[®]

  • July – Eden and Monash University receive ARC research grant (transferred to Deakin)

  • September – ONGC (India) tender won for Optiblend[® ]

  • August – 1st Georgia DOT I-20 field trial

  • November – EdenCrete[® ] receives approval from Georgia Department of Transport (DOT)

2016

April – US $24.76m incentive package received to establish EdenCrete[® ] plant in Augusta, Georgia

  • May – First commercial order for EdenCrete[® ]

June – Study shows encouraging results of CNT in plastics • August – Georgia DOT highway repair projects

2017

January – EdenCrete[® ] mandated for use by Georgia DOT

  • April – First EdenCrete[®] bulk supply agreement in Texas

  • August – Korean Government agency trials of EdenCrete[®]

  • September - EdenCrete[® ] approved by US Federal Highways Administration for use in Georgia

2018

January – Conditional[®] by Oregon DOT, bringing State government DOT approvals to 11 • January - EdenCrete[® ] HC and EdenCrete[® ] Pz launched

• DOT trials start in Colorado, Idaho and N. Carolina - 5 State DOTSnow using or trialling EdenCrete® • July- Korean Precast company agreement

Sept- FHWA contract US $525,000 GA industrial site acquired MARTA Whitepaper- supportive EdenPlast® - strong progress

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Summary

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Core product EdenCrete[®] , is a liquid concrete admixture that delivers significant cost and product advantages, facilitating denser, tougher, stronger cement and longer lasting, more durable concrete Operating in the global concrete market expected to reach US $921 billion and growing at almost 8% GAGR Proprietary technology and core expertise in manufacturing and production of carbon nanotube products Three commercialised products, EdenCrete[®] , EdenCrete Pz[®] and OptiBlend[®] , with strong year on year revenue growth for EdenCrete[®] expected for FY19 and accelerating in FY20 and FY21 High barriers to market entry, with over 10 years in product development, established direct working relationships with Government departments, plus strong patent protection and proprietary technology Strong US Government traction with product approval from 11 Departments of Transport and 11 further applications, plus Federal Highway Authority approval in Georgia / MARTA endorsement of EdenCrete® Opportunity to expand into the automotive and packaging sub sectors of the multi-billion dollar plastics industry, with EdenPlast® - R&D focusing on commercialisation - master batch produced and patent applications Strong news flow pipeline anticipated including customer trials with revenue conversion potential

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GREG SOLOMON EXECUTIVE CHAIRMAN

Level 15, 197 St. Georges Terrace, Perth, Western Australia Telephone: +61 8 9282 5889 Email: [email protected]

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www.edeninnovations.com

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