SCIDEV LTD — Interim / Quarterly Report 2023

Nov 10, 2022

Investor Update

Seán Halpin CHIEF EXECUTIVE OFFICER

Anna Hooper CHIEF FINANCIAL OFFICER

About SciDev

PurposeStatement

SciDev's purpose is to deliver innovative solutions for a sustainable future.

We live these values to strengthen our relationships with our clients and within the communities in which we operate. They define who we are.

Challenge boundaries

We discover more possibilities when we challenge what's possible

Achievemore together

We achieve better outcomes when we work together

Go the last mile

We deliver more by exceeding benchmarks and adding value in everything we do

Protect the environment

We are dedicated to reducing harm and protecting our environment for future generations

Our Business: Chemical Services

• Our chemistry business focusses on the development, manufacturing and supply of a range of chemistries that help our clients improve their operational efficiency and minimise waste water generation

• We also provide a range of supporting services from "last mile delivery" to process optimisation ensuring maximum value for our clients

• Increasing clean water requirements, environmental regulationsand the sustainability focus of industries is driving greater awareness,technologiesand solutions that not only solve the waterdischarge issues, but drive operationalperformance

• Our ability to deliver greater scale and revenue will be driven by increased regulationand a focus on increased operationaloutput

• Revenuemodel is based on chemistry per unit sales, typically under a 1-3 year contractnature

Our Business: Water Technology

• Centred around the delivery of innovative water treatment technology across a wide range of applications

• Our treatment technologies remove harmful contaminant from groundwater, surface water and industrial liquid waste allowing water to be reused or safely discharged to the environment

• Our services are on focused on the provisionof mobile, temporary or permanenttreatment systems that are tailoredto our clients specific objectivesand site constraints

• Increasing regulation, specifically in the global PFAS sector,are driving increased client engagement in our solutions

• We operate through both Build, Own, Operate (BOO) and Design and construct (D&C) commercial models

• Given the unique nature of our solutions the WaterTreatment businessdelivers high margins than our chemistry division

PFAS Opportunity – A growing environmental issue

• Per and Polyfluoroalkyl substances (PFAS) are a family of man-made chemicals in use since 1950's many of which are now banned

• Sites of PFAS contaminated soil include airports, defense bases, mines, fire & rescue stations and other hazard facilities

• Increased Global regulation is driving the requirement for treatment solutions

• EveryPFAS projectis differentand requiresa tailoredapproach

• SciDevhas designedand developed a toolkit of PFAStreatment strategies

• We deliverresults of <0.0002 ug/l, over 1000 timesbetter than our competitiors

• SciDevPFAS treatment is best utilised on higher complexityproblems that interact with waterrunoff and discharge

• Removal rates being achieved with our clients are currently themost efficientin the country reducing residuallevels below existing detection limits

• In FY22, our technology was operated on 12 sites across Australia and delivered $9.5m in revenue

Over 2,854 sites around the USA have been identified to potentially contain PFAS.

Figure 1 – Registered PFAS sites in the USA. Source - https://www.ewg.org/interactive-maps/pfas\_contamination/

Addressable Market

01

Financial and Operational Performance

Q1 FY 23 Financial summary

Financial Highlights

• Q1 Record Revenue of A$25.6m and record cash receipts of A$23.6m
• Q1 Gross profit margin of 23% marginally down driven by increased proportion of revenue from chemistry sales
• Q1 breakeven cashflow from operations
• Q1 unaudited underlying EBITDA of A$1.7m

CashReceipts(A$m) Revenue(A$m)

+40% Q1 FY23 REVENUE VS Q4FY22

CASH & EQUIVALENTS AT 30 SEPTEMBER 2022

A$12.4m

Mining and Construction Summary

Operational Highlights

• Sales increased 148%, vs Q4FY22
• $2.7m contract to supply product to a major Mining Services company in the US
• Commenced a trial for a major nickel producer in Western Australia
• Awarded a three-year contract agreement with a mineral sands producer for the delivery of MaxiFlox® chemistry and services to support operations at their mine in Western Australia
• Awarded a two-year contract extension with Société Le Nickel (SLN) to continue supply of our MaxiFlox® to two operational mines in New Caledonia

Outlook

• Increase reoccurring revenue in Mining by delivering successful field trials & converting to long term supply contracts
• Continued BD initiatives to grow construction vertical across both domestic and international opportunities
• Convert existing emulsion clients to suspension chemistry
• Further expansion of Mining business into US

A$6.7m

Energy Services Summary

Operational Highlights

• Record quarterly revenue, sales increased 26%, vs Q4FY22
• Maintaining strong gross margin via a combination of sustained sales of speciality chemistry, improved logistics management and further supply chain efficiencies
• Operated across five major Oil and Gas basins, supporting 25 Oilwell completion fleets
• Continued supply of SciDev's proprietary suspension polymer technology, Xslik 620, to a major E&P company operating in Oklahoma, USA. The initial contract has expanded to a second location, generating additional revenue in 2H FY23
• Initial A$1.8m purchase order to supply an international E&P company with our innovative MaxiFlox® co-polymer chemistry for use in North America, Saudi Arabia and Argentina
• SmartVIS technology was successfully field trailed on-site with an E&P company in North America. Trials remain ongoing with the client at a second location

Outlook

• Continue to increase market share in key geographical areas
• Healthy pipeline, future sales will be directly linked client activity levels and the broader market conditions
• Diversify service offering to Oil & Gas and broader US market

Q1 FY23 REVENUE VS Q4 FY22

+26%

Q1 FY23 REVENUE

A$14.7m

$14.7

Water Services Summary

Operational Highlights

• Sales increase 8%, vs Q4FY22
• Several new contracts executed
• Active on seven PFAS sites during the quarter generating A$2.5m in revenue
• Awarded an Operation and Maintenance contract for 98 remote water quality monitoring units across multiple mines in WA
• Secured a major works contract for a Tier 1 construction company to manage and treat contaminated groundwater at a residential development site in Sydney, NSW

Outlook

• Continue to provide industry leading solutions to the rapidly growing global PFAS problem
• Establish presence in Europe and North America for the utilisation of PFAS treatment technology
• Target key mining clients within existing SciDev client base
• Leverage existing pipeline converting opportunities in to contracts

Water services revenue includes the acquisition of Haldon Industries (SciDev Water Services) from Q4 FY21 onwards.

Outlook

Innovation

Energy Services

Proposing SmartVis as a high viscosity alternative to traditional chemistry used for oilfield well completion

CatChek – shale stabiliser that inhibits pyrite oxidisation and fine migration in oil wells improving well decline curves and lifecycles.

Water Services

Continued development & optimisation of PFAS treatment technology

Alternative technologies for the treatment of wastewater for elevated Total Dissolved Solids without the use of Reverse Osmosis or other membrane technologies

Mining& Construction

Ongoing development and commercialisation of suspension technology. Can be used across multiple chemistries to replace traditional emulsions

FY23 Outlook

SciDev deliverspositive operationaland environmental outcomes for our clients

Drive a positive culture across the organisation and increase the level of integration within our business to take advantage of the strong cross sell opportunities across our client base

Leveraging the extensive business development pipeline in the water treatment sector and converting opportunities into contracts

Establish a presence in Europe and North America with the aim of delivering full scale PFAS treatment technology within FY23

Continue to increase sales of our speciality chemistry in the US oil and gas industry increasing not only the number of sites but also the number of solutions per site

Target key mining clients to further develop our water treatment presence and deliver an end-to-end service within the industry

Optimise the inventory position to ensure reliability of supply to clients whilst maintaining focus on effective working capital management

SciDev Snapshot

Corporate overview

ASX code	SDV
Market cap (at $0.326per share)	A$49.3m
Shares on issue (at 04 OCT 2022)	189m
Cash at bank	A$14.0m
As at 04 October 2022

Majorshareholders2	% held
Board and Management	14%
Institutional	33%
Retail	53%

As 30 May 2022

S C I D E V B O A R D E X E C U T I V E M A N A G E M E N T T E A M

Vaughan Busby NON-EXECUTIVE CHAIR

Simone Watt NON-EXECUTIVE DIRECTOR

Jon Gourlay NON-EXECUTIVE DIRECTOR

Heath Roberts COMPANY SECRETARY

Dan O'Toole NON-EXECUTIVE DIRECTOR

Craig McCloskey DIRECTOR OPERATIONS

Todd Placek HEAD OF WATER SERVICES

Chris Dartez HEAD OF ENERGY SERVICES & PRESIDENT NORTH AMERICA

Kevin Smith VICE PRESIDENT SCIDEV LTD

Sarah Stewart HEAD OF MARKETING & CX

Jeffrey Zhang DIRECTOR PROCUREMENT

Outlook Appendix

SciDev is committed to our people, the environment and our communities

Our People

Our people are our key and we are committed to providing a safe and inclusive workplace

Strong focus on safety. Safety a core value and at the forefront of all operations

Progressing towards greater gender diversity with over 25% of our workforce female

Continuing to foster and develop an inclusive culture and a culture of innovation and continuous improvement

The Environment

Our environmental solutions help reduce our clients waste footprints and costs

We significantly reduce the volume of waste water from our clients operations

Our treatment technologies treat hazardous waste and remediate contaminated sites

Continued development of alternatives to petrochemical based chemistries, minimising environmental impact

Our Communities

We are committed to giving back to the communities where we live and work.

SciDev has so far pledged $120,000 in support of the Schools Plus 'Two Ways Science' project

The project helps support seven remote Indigenous schools and communities develop and implement an integrated learning program

Sustainable Business Strategy

Our Sustainable growth strategy

Strengthen

Disciplined balance sheet management

Structure, systems & process to support growth

Talent acquisition & retention

Expand Business Development capability to maximise growth in existing markets.

Focused development and commercialisation of proprietary technology

Grow

Maximise Business Unit cross selling

Pursuit of adjacent opportunities via targeted acquisition

Expand existing service lines into new geographies.

Diversification of US business into new industries

Scale

Global expansion of commodity chemistry business via Nuoer relationship.

Targeted M&A to achieve scale

Important Information

This presentation has been prepared by SciDev Ltd (SciDev) based on information available to it as at the date of this presentation. The information is provided in summary form and does not contain all information necessary to make an investment decision. Hence, no representation is made as to the accuracy, completeness or reliability of the information.

In addition, neither SciDev nor any of its subsidiaries, directors, employees, shareholders nor any other person shall have liability whatsoever to any person for any loss, including without limitation from any fault or negligence arising from this presentation or any information supplied in connection with it. This presentation may contain forward-looking statements and projections. These reflect SciDev's current expectations, based on what it believes to be reasonable assumptions.

SciDev gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or ASX listing rules, SciDev is not obliged to update this presentation after its release, even if matters change materially.

This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy SciDev securities and may not be relied upon in connection with any purchase of SciDev securities.

www.scidev.com.au

Contact

INTERIM CEO

Seán Halpin +61 (0) 2 9622 5185

INVESTOR RELATIONS

Craig Sainsbury craig.sainsbury@marketeye.com.au +61 (0) 428 550 499