SCIDEV LTD — AGM Information 2024

Nov 20, 2024

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ASX Announcement

21 November 2024

2024 AGM: CEO Address

I am pleased to be here and share with you the substantial progress we’ve made in FY24, SciDev’s most significant year to date.

I would first like to thank our Board for their ongoing support. The success of any business is predicated on a strong, supportive relationship between the Board and Management as well as true alignment on vision and strategy. The success we have seen though FY24 would certainly not have been possible without this alignment and support.

I would also like to personally thank Simone for her contribution, commitment and support throughout her tenure on the SciDev Board.

Our financial performance over FY24 has been significant. We closed the year with an impressive 22% increase in Group revenue, driven entirely by organic growth across all our business units.

Notably, our Water Technology segment achieved outstanding top-line growth of 88%, underscoring its significant contribution to our overall success.

However, the real story for FY24 was improved profitability driven by increasing gross margins in our Chemical Services segment, particularly in Energy Services, as we increased sales of our propriety products. This drove strong earnings growth, increasing EBITDA 117% year on year.

A key area of focus has been operating cash flow, and I’m pleased to report that the second half of FY24 has been our fifth consecutive half of positive operating cash flow.

We also ended the financial year with a healthy cash position of $9.4m, up $1.7m on FY23.

The steady improvement of our cash position, together with our working capital facility, gives us a healthy balance sheet and extra flexibility, enabling us to continue our current organic growth trajectory.

Our financial performance over the past few years shows we are very much a growth business. We have seen consistent and sustained growth year on year driven by the increasing acceptance of our technologies and the development of our end markets.

SciDev Limited Unit 1, 8 Turbo Rd ABN: 25 001 150 849 Kings Park e: info@scidevltd.com NSW 2148 AUSTRALIA w: scidevltd.com p: +61 2 9622 5185

Page 1 of 4 2024 AGM CEO Address

To illustrate our steep trajectory over the past few years, in 2018, we generated $2.2m in revenue. In FY24, this grew to $109.2m. Given the strength of our technologies, balance sheet health, and the extent of our addressable markets, we are confident we can continue this growth journey.

While our top-line revenue growth is great, I’d like to emphasise that the standout feature of the year has been the substantial improvement in EBITDA and our operating cash flow demonstrating the fundamental strength of our business.

Our business units delivered strong and varied performances throughout FY24.

Chemical Services achieved an 11% increase in revenue, driven by a combination of winning new customers and expanding our operational footprint with existing ones. Hidden in this revenue growth is our success in transitioning customers from commodity products to our proprietary technologies, resulting in higher margins from the same revenue base.

As I highlighted earlier, Water Technologies delivered a remarkable 88% increase in top-line growth. This success is due to strategic investments we made in prior years, including the expansion of our team and fleet of equipment, setting us up for a double-up in revenue for FY24.

Our water business has also demonstrated its capability to secure large contracts, such as the two contracts with Acciona Construction on the Sydney Western Harbour tunnel, worth more than $4.5m each.

This rapid growth has come with initial challenges, and EBITDA from Water Technologies did not increase in line with revenue over the past year. With these teething issues addressed, we are now well-positioned to drive sustainable and profitable growth in this segment moving forward.

Operationally, we’ve had some big wins. We saw a substantial increase in the sales of our proprietary chemistry in the US oil and gas sector as we successfully transitioned customers away from commodity-style chemistry towards SciDev products. The success of this approach can be seen in the 51.5% increase we’ve had for CatChek[TM] sales.

Within our Mining business, we’ve seen a strong performance in the domestic market driven by the proven performance of our MaxiFlox[TM] technology. In parallel, we’ve been actively expanding our international footprint by engaging existing SciDev customers and new prospects to support their global mining operations.

The Joint Venture with Nuoer Chemicals is an exciting development and will strengthen our push to secure market share in international mining.

Within Water Technologies, we have been successful in securing larger Design & Construct (D&C) contracts, unlocking a new segment of the domestic market. Internationally, we have been working to expand into North America and Europe as PFAS regulations tighten across both regions. I’m pleased to report that our efforts have already led to the first revenues in Europe and have generated strong interest in our FluorofIX™ technology from the US market.

Stepping back from the year’s highlights and looking more broadly at the overall Group, I’d like to talk about the strategic market focus that will support SciDev’s aspirations for the coming years.

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Page 2 of 4 2024 AGM CEO Address

At our core, we are a diversified portfolio of water-centric businesses and see true strength in this diversification.

The markets we have chosen to operate in share common traits: they are water-centric, growing addressable markets, have strong regulatory tailwinds, and require technology-driven solutions. As we look forward, these are the guardrails within the water sector that our business operates within.

Success in these markets will depend on having the right team, culture, operating model and capabilities required to capitalise on the extensive opportunities ahead of us.

Our operating model is built around distinct business units functioning within a structured governance framework. This approach allows our business units to remain agile and entrepreneurial as they continue to grow. Central to this strategy is fostering an ‘owner mindset’ across the organisation, empowering business unit leaders and their teams to drive progress and success within their respective areas.

From a group perspective, this approach enables us to build a diversified and scalable business that effectively operates across various geographies and end markets.

As we move through FY25, we are confident in delivering another strong and positive year for SciDev.

Our healthy balance sheet provides the financial stability and flexibility to continue investing in our existing business units as we capitalise on new opportunities.

In the oil field, our market penetration remains low, giving us substantial room to expand. We are well-positioned to leverage our proprietary chemistry, which continues to gain traction and acceptance, driving growth throughout FY25 and beyond.

In mining, we are focused on increasing our international market share by introducing MaxiFlox[TM] to new overseas customers, either directly or through the Nuoer-SciDev Joint Venture.

In water, we’ll focus on increasing our domestic market share both in PFAS and our broader water treatment market. While Internationally, we will continue to pursue significant opportunities in Europe and North America driven by favourable regulatory environments and growing demand for our solutions.

To close, I’d like to thank the entire SciDev team for an outstanding FY24. I’m incredibly proud of how much we have achieved and, most importantly, the collective efforts that made these achievements possible. I’d also like to thank our shareholders for their continued support, and I look forward to an exciting and successful year ahead.

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For Further Information

Corporate

Seán Halpin – Chief Executive Officer

Anna Hooper – Chief Financial Officer

+61 2 9622 5185

The Board of SciDev Limited authorises this announcement.

About SciDev

SciDev is a leader in environmental solutions focused on water-intensive industries. Our solutions allow clients to reuse water, improve operational efficiencies and reduce their environmental footprints. We deliver world-leading chemistry and water treatment technology with end-to-end support from our specialist scientists and engineers.

SciDev works with clients across a range of industries, including Mining, Oil & Gas, Construction & Infrastructure and Water Treatment.

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Annual General Meeting 2024

21 NOVEMBER 2024

Seán Halpin CHIEF EXECUTIVE OFFICER

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SciDev Snapshot

Corporate overview

ASX code	SDV
Market cap (at $0.49 per share)	A$93.0m
Shares on issue	189.9m
As at 2 September 2024

Major shareholders	% held
Board and Management	10%
Institutional	34%
Retail	56%

As at 10 April 2024

S C I D E V B O A R D

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Vaughan Busby Jon Gourlay Dan O’Toole Mike Utsler Simone Watt Heath Roberts Non-executive Non-executive Non-executive Non-executive Non-executive Company Chair Director Director Director Director Secretary

S C I D E V E X E C U T I V E L E A D E R S H I P T E A M

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Seán Halpin
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Seán Halpin Anna Hooper Sarah Stewart Ollie Kelly Chief Executive Chief Financial Head of Head of People & Officer Officer Marketing & CX Culture

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Jamiel Muhor Head of Chemical Services, APAC

Chris Dartez Mick Cox President Head of Water Chemical Services, Technologies, North America APAC

John Wilson Quinn Smith Vice President, Vice President Water Technologies, Water Technologies, Europe America

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FY24 Financial Highlights

Strong growth through effective execution of the Group’s strategy

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$109.2M

22% Revenue up

$8.8m 117% EBITDA up

$6.5m 35% Operating cash flow up

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$2.2m NPAT FY23 loss of $0.1m

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$3.3m Free cash flow before business acquisition

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1.15cps Earnings per share FY23 loss 0.18cps

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SciDev Ltd | Investor Presentation November 2024

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SciDev’s Evolution

Sustainable and consistent earnings year on year

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Revenue ($m) Underlying EBITDA ($m)
109 8.8
90
56
4.1
1.9
FY22 FY23 FY24
FY22 FY23 FY24
Operating Cashflow $m NPAT ($m)
2.2
6.5
4.8
-0.3
-0.6
-1.3
FY22 FY23 FY24 FY22 FY23 FY24
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SciDev Ltd | Investor Presentation November 2024

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Segment Performance

Solid revenue growth across business units

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Chemical Services
Growth
+11%
87
78
44
40
18
FY20 FY21 FY22 FY23 FY24
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Water Technologies
Growth
+88%
22
12 12
FY22 FY23 FY24
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SciDev Ltd | Investor Presentation November 2024

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FY24 Operational Highlights

Increasing market penetration and acceptance of SciDev’s core technologies

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88% Growth of Water Technologies business driven by increase in domestic market penetration, growth in average contract value & uplift in D&C wins.

Nuoer SciDev JV Pte Ltd incorporation established in Singapore, expanding on the current partnership with Nuoer Group to take MaxiFlox® chemistry to the global mining industry.

Operated across four Oil & Gas basins in North America, supporting an average of eight completion fleets during FY24.

55% increase in sales of SciDev’s proprietary CatChek technology into the US Oil & Gas market.

Development of FluorofIX pilot plants in Europe and North America to demonstrate the superior performance of our technology.

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SciDev Ltd | Investor Presentation November 2024

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FY24 Drivers of Growth

Disciplined financial & operational approach

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Chemistry profit improvement via increased acceptance of proprietary technology

Disciplined approach to capital management

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Water growth supported by new D&C projects and larger value contracts

Expanding global footprint

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Record growth via greater customer penetration and new sales

Investment in resourcing to support growth

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SciDev Ltd | Investor Presentation November 2024

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Strategic Market Focus – Where we will play

Diversified portfolio of industry leading, water-centric businesses

Growing global addressable markets. Industrial & government clients. Technology driven solutions.

1

Water treatment technologies

2

Speciality water chemistries

3

PFAS remediation

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4
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Industrial water processes

Increasing global regulation driven by water scarcity, climate change and public sentiment.

Industries under increasing pressure to prove their ‘license to operate.’

Increasing modernized water industry.

Demand for bespoke product and reliable service across solid industries including oil & gas, mining and infrastructure.

Diverse addressable market with common chemistry backbone enabling technical synergies across chemistry business units.

Strong global regulatory tailwinds driving demand for effective PFAS treatment and remediation solutions.

US$250 billion addressable market

SDV has an established track record at treating commercially to the lowest levels of detection

Growing demand for improvements in waterbased processes and infrastructure that deliver operational, financial and environmental outcomes.

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SciDev Ltd | Investor Presentation November 2024

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Strategy for Growth – How we will win

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Diversified
Winning Aspiration Portfolio of
Industry Leading
Water-Centric
Businesses
1 2 3 4
Global markets
Water Speciality PFAS Industrial
Treatment Water Remediation Water
Technologies Chemistries Processes
Operating Model Owner Business Unit Group & Governance Scalable &
Mindset Agile
Delineation
Technology/R&D Operational Capital Mergers &
Essential Capabilities
Excellence Management Acquisitions
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SciDev Ltd | Investor Presentation September 2024

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Outlook

Continuing momentum in core business, while investing in growth opportunities

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Strong balance sheet, well positioned to support organic growth: $10m Finance facilities agreement with Westpac provide balances sheet flexibility to drive growth.

Continuing to diversify our Oil and Gas industry client base as our proprietary CatChek and XSlik product lines gain increasing market acceptance.

Growth and expansion of market share in global mining by delivering MaxiFlox® directly to new clients via direct sales, local licencing and partnership agreements & leveraging our Joint Venture with Nuoer Chemicals.

Use FluorofIX and RegenIX to generate revenue from our developing North American PFAS pipeline spanning the US Department of Defence and private industry.

Exploring opportunities to accelerate growth in Europe as PFAS regulations build in the region (including recent USA EPA PFAS national primary drinking water regulations), while also exploring leachate and industrial wastewater treatment opportunities to secure initial revenue.

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SciDev Ltd | Investor Presentation November 2024

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