SCIDEV LTD — Interim / Quarterly Report 2022

Feb 20, 2022

Unit 1 8 Turbo Road Kings Park NSW 2148 Australia ABN 25 001 150 849

Email: projects@scidev.com.au Website: www.scidev.com.au ASX code: SDV

Companies Announcements Office Australian Stock Exchange

21 February 2022

2022 Half Year Results

SciDev Ltd (ASX: SDV) ('SciDev' or 'the Company') is pleased to report its earnings for the six month period ended 31 December 2021 (1H FY22).

Financial Highlights

• 1H FY22 revenue of A$24.1m a 32% uplift on 1H FY21, cash receipts at A$22.2m a 40% improvement over 1H FY21
• 1H FY22 EBITDA loss of A$0.4m delivering a net loss of A$2.3m
• Q2 FY22 generated A$0.7m profit while revenue was a 32% increase on Q1 FY22
• The Company successfully raised A$17.4M in additional capital to be used to accelerate the growth of the business
• Cash and cash equivalents of A$16.4m as 31 December 2021, (A$7.1m at 31 December 2020)
• The Company ended the period with A$5.3m of inventory on hand

Operational Highlights

• The Company continued to execute against contracts with major Australian mining companies, SciDev is now active on over 20 mine sites globally

• SciDev PFAS technology continued to deliver a 99.999% reduction in contaminant levels across several commercial projects, a higher standard of treatment than our competitors

• Active with 70 customers globally, a 32% increase over 1H FY21 levels

• Treated over 425 mega litres of water, generating less than 65 tonnes of waste

• Continued development of environmentally friendly green chemistry initiatives to displace oil-based chemistries

• Integration of the Water Services business, finance and operations into SciDev

• Group reorganisation and management changes in Q2 FY22 delivered immediate savings and improved performance on Q1 FY22

• The Company received recent notice that it was unsuccessful in winning a tender in the Canadian Oilsands Industry. The strength of the tender submission was impacted by the severe flooding experienced in Vancouver which was the port of importation.

• SciDev is still engaged in the Oilsands industry and activity levels are expected to increase with a return to international travel allowing the Company to actively promote its solutionbased offering.

Financial Review

Revenue for 1H FY22 was A$24.1m, representing a 32% growth over the previous corresponding period (1H FY21: A$18.3). The growth in revenue during the half reflects strong demand for SciDev's solutions.

The December 2021 Quarter saw improved business conditions over those experienced in Q1 FY21, with revenue up 32% quarter on quarter. This reflected the return of one-off project and services revenue as COVID related travel restrictions eased in some Australian states.

Gross profit margin for the half year period was 22%, stable versus 1H FY21, with all four of the verticals delivering positive gross profit for the period.

Cash receipts were A$22.2m for the half, an increase on 1H FY21 levels of A$15.9m. Reflecting the Company's growth, inventory was increased and the Company continued it's investment activities. As a result, SciDev reported an outflow of cash from operating activities of A$1.3m (outflow of A$4.2m in 1H FY21).

A$m	1H FY22	1H FY21	% Change
Operating Revenue	24.1	18.3	32%
Cost of Revenue	(18.7)	(14.2)	31%
Gross Profit	5.4	4.1	9%
	22%	22%	-
Operating Expenses	(6.8)	(3.8)	79%
Profit before income tax	(2.3)	0.6
expense

Outlook

Management focus for the remainder of FY22 will include:

• Driving SciDev's market leading solution in the growing PFAS market

• Pursue opportunities in Construction in North America and Europe

• Continue to convert opportunities in Oil & Gas and execute on opportunities in Mining

• Continued focus on increasing sales and cash conversion in all regions

• Relocation and expansion of Australian manufacturing facilities and lab upgrade

• Expand inhouse Green Chemistry development and manufacturing to meet growing demand.

Lewis Utting

Managing Director & Chief Executive Officer

This release has been approved by the Board of Directors of SciDev Limited.

For Further Information:

Corporate	Investors
Lewis Utting – MD & CEO	Craig Sainsbury – Market Eye
Heath Roberts – Company Secretary	craig.sainsbury@marketeye.com.au
(+61) 2 9622 5185	(+61) 428 550 499

About SciDev

SciDev is a leader in the environmental solutions market focused on water intensive industries. SciDev brings together world-class technology, chemistry and application to solve pressing operational and environmental issues for the water, oil and gas, mining and construction markets.