PHOSLOCK ENVIRONMENTAL TECHNOLOGIES LIMITED — Management Reports 2021

Nov 15, 2021

==> picture [146 x 35] intentionally omitted <==

November 2021 Business Update

==> picture [412 x 394] intentionally omitted <==

World leaders in water remediation

Strategy progress over last 12 months

==> picture [343 x 360] intentionally omitted <==

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

Delivery remains on track
with focus on geographic
expansion and product
development
----- End of picture text -----

Reset stable, Accelerated geographic Board renewal process restructured business commercialisation platform in China

A more balanced Manufacturing review geographic exposure and decision on new plant location

Resume trading on ASX A more balanced Manufacturing review geographic exposure and decision on new plant location Appoint commercial R&D review Improved reporting; leads……. expand commercial resources; manufacturing / supply chain efficiencies

==> picture [45 x 38] intentionally omitted <==

Canadian product registration review

Focused R&D investment Deliver revenue growth to deliver new products / and return company to services sustainable profitability

==> picture [45 x 38] intentionally omitted <==

==> picture [44 x 38] intentionally omitted <==

==> picture [51 x 31] intentionally omitted <==

==> picture [38 x 38] intentionally omitted <==

2

Canada

Europe

Significant resources deployed and generating good demand, but regulatory position remains complex and slow to resolve

Kralinglse Plas (Rotterdam) application 50% complete, significant promotion and media coverage – COVID watch

Delays due to COVID and elections

Application at Lyngsø Lake in Silkeborg, Denmark will be invoiced end 2021 / applied early 2022

Projects ready to start in Quebec, Ontario and Alberta – R&D permit as interim step unlikely in short term

New Commercial Lead in place, generating positive leads

Several western Europe projects planned, including newer Spain and France markets

USA

Distribution expansion discussions progressed – further announcement soon

South America

Strong leads emerging with previously untapped customers

Solid progress in Brazil despite COVID and freight issues hampering current sales

Opportunities in other South American countries opening up

Current and prospective activity

China

New General Manager commenced

8 projects completed (end October 21 ) of 22 currently contracted across various provinces

Australia & NZ

Completed works in Western Australia and Queensland

City of Auckland application on hold due to COVID

Strong projects developing in both countries, with NZ distributor, sales agent, applicators and public relations support appointed

==> picture [51 x 31] intentionally omitted <==

3

2021 project status summary – updated

Contracted sales[1]

Heads of agreement[1]

High probability[1]

==> picture [265 x 249] intentionally omitted <==

==> picture [247 x 244] intentionally omitted <==

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

18% of forecast tonnes

63% of forecast tonnes

19% of forecast tonnes

==> picture [51 x 31] intentionally omitted <==

ANZ China Europe South America United States

1As at November 2021

4

==> picture [51 x 31] intentionally omitted <==

People, Research & Performance & Development Culture

==> picture [70 x 71] intentionally omitted <==

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

Manufacturing & Supply Chain

==> picture [74 x 74] intentionally omitted <==

5

R&D Rapid Review

Focused R&D program Priority new growth opportunities

• Scored and ranked more than 30 R&D projects

• Prioritised 5 within the portfolio to address key customer drivers – further work on flowing water phosphorus capture

• Hiring for new Group Executive Product Solutions role – recruitment continuing

• Initiated new research collaboration with a leading university – university engaged; PhD projects shortlisted

Adjacent

Transformative

Core

2 projects that, if successful, would enable phosphorous and other nutrients to be removed from flowing water.

2 projects to enhance Phoslock effectiveness, affordability and ease of use and expand to new / underserved markets

1 project to cross-sell products and services that address a key customer pain-point — harmful algal blooms.

==> picture [174 x 115] intentionally omitted <==

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

Phoslock
Enhancement
----- End of picture text -----

==> picture [175 x 114] intentionally omitted <==

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

Mechanical
Restoration Remedies
----- End of picture text -----

==> picture [174 x 114] intentionally omitted <==

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

ZEEP
----- End of picture text -----

==> picture [174 x 115] intentionally omitted <==

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

New Technology
Contaminant Binder
----- End of picture text -----

==> picture [174 x 115] intentionally omitted <==

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

Phoslock
Market Expansion
----- End of picture text -----

==> picture [51 x 34] intentionally omitted <==

6

==> picture [51 x 34] intentionally omitted <==

Manufacturing review update

A review to determine preferred location options for a second manufacturing plant is nearing completion.

• The review considered :

• Site and plant establishment costs

• Raw material access, as a key cost driver

• Customer transportation requirements

• Potential government incentives and tariff implications

• Other supply chain risks

• Short list of options has been completed and was presented to the Board in October 2021

• A final decision is now expected toward the end of December 2021

==> picture [427 x 273] intentionally omitted <==

Phoslock is currently manufactured in an ISO compliant factory in Changxing, China

• Potential site inspections currently underway

7

==> picture [51 x 31] intentionally omitted <==

People, Performance & Culture review update

Capability Culture Networks Structure

Customer Excellence

Restructure of business to align with growth strategy is progressing

• Damian Whelan, Commercial Lead Europe commenced October 2021; Nigel Traill appointed CEO of Limnological Solutions International but still highly active

==> picture [86 x 86] intentionally omitted <==

==> picture [86 x 86] intentionally omitted <==

• Viktor (Xiaoming) Li, General Manager China commenced October 2021

• Dr Kate Waters-Hart appointed as Group Manager Aquatic Science, to commence role in early 2022

• Multiple initiatives underway to underpin culture, operating structures and business engagement

• Recruitment underway for R&D Lead

• Connecting the team globally via appropriately designed supporting structures

• HSE management process upgraded

8

Strategy implementation is delivering

Positive growth outlook

Successful trial work ongoing and being reviewed by prospective customers

Consistent & strong leads on new projects

Business structure in place or in process to capitalise on the opportunity

Focused expansion into existing and new target geographies

Increased opportunities as COVID-19 impacts recede –

Addressable market continues to grow due to increasing challenge of addressing water quality issues

Strong funding position

Cash / cash equivalents (as at 31 October 2021) $22,845,000

Debt free

Abnormal costs associated with China investigations and audit reducing in FY2021 but higher than normal

Lower fixed cost base following review of overheads

==> picture [51 x 31] intentionally omitted <==

Refined brand and marketing approach to better support business & portfolio growth

9

==> picture [146 x 35] intentionally omitted <==

ASX Code – PET

Level 16, 1 Collins Street Melbourne VIC 3000 AUSTRALIA

Lachlan McKinnon – CEO E lmckinnon@phoslock.com.au

T +61 3 91100002 W www.phoslock.com.au

Greg Slade - Investor Relations E ir@phoslock.com.au