SCIDEV LTD — Investor Presentation 2019

Sep 2, 2019

INVESTOR PRESENTATION

SEPTEMBER 2019

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Next-generation technology for solids-liquid separation in mining, water and wastewater

SciDev is a leader in the development and application of both chemistry and process control for solids-liquid separation. SciDev brings together world-class technology, chemistry, management and manufacturing capabilities to solve pressing operational and environmental issues for the minerals processing, tailings, water treatment and Oil & Gas markets

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CORPORATE SNAPSHOT

CORPORATE OVERVIEW

	ASX code	SDV
	Market cap (at $0.31 per share)	$33m
	Shares on issue	107m
	Options on issue (exercisable at $0.25 – exp. 11/19)	3.95m
	(exercisable at $0.12 – exp. 07/22)	3.35m
	(exercisable at $0.10 – exp. 07/22)	2.00m
	Cash in bank	$1.8m
	Working capital facility	$0.5m

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SciDev offers a unique exposure to the ASX chemical technology sector by providing clean and sustainable solid-liquid separation technology

BOARD MANAGEMENT
Chairman	Trevor Jones
Managing Director	Lewis Utting
Non-Executive Director	Simone Watt
Non-Executive Director	Jon Gourlay
Company Secretary	Heath Roberts

MAJOR SHAREHOLDERS	% held
Nuoer Group	8%
Sinoz Group	6%
Board and Management	7%
Institutional	4%
Retail	75%

STRATEGIC INVESTORS

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Leading Chinese chemical company. SDV have exclusive marketing rights in Oceania and globally for key target end users and industries

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Globally significant manufacturer & supplier of mining reagents. Offers a highly complimentary portfolio to SDV and ability to leverage customer relationships

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SOLIDS-LIQUIDS SEPARATION

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Many chemical process require the separation of solids out of their liquid state.

Solid liquid separation can occur via many methods such as;

• Filtration

• Precipitation

• Centrifuging

• Chemical additives such as flocculants and coagulants

SciDev technology focusses on the addition of flocculants and coagulants into liquids to drive the solid separation

SciDev focuses on which is an solids-liquid separation important component of chemical engineering & manufacturing

Coagulation

Flocculation

Promotes the aggregation of particles 1/50[th] the size of a human hair by enhancing the attractive forces between them.

Brings together small often coagulated particles, 1/5[th] the size of a human hair using polymers which bridge between particles and bind them together.

WHAT

Coagulation is used in mineral processing, oil & gas, papermaking, water treatment, and several industries

Flocculation is critical in waste water, sewage, mineral processing, oil & gas, papermaking, water treatment, and several other industries

WHERE

Coagulation is critical for the control of fine particles or pollutants. In waste water and drinking water, coagulation allows the fine solids to be removed to make the water fit for consumption or discharge

Flocculation allows for better environmental outcomes through increased water recovery and is also used in mineral processing, papermaking and oil & gas for production

WHY

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SCIDEV: TECHNOLOGY

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SciDev’s PROPRIETARY SYSTEMS deliver sustainable coagulant and flocculant dosage optimisation.

The result is the reduction of associated costs and the elimination of poor performance

SciDev generates revenue from chemical sales and our operating systems.

Our technology can be utilised in a range of industries including mineral processing, tailings, water treatment, dairy and oil & gas sectors

SciDev provides world-class coordinated technology and chemical solutions for solids-liquid separation .

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Process Control Chemistry
OptiFlox® is a patent pending
technology that continuously
analyses & measures key
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Professional Services

Our workforce of highly skilled engineers and chemists engage with our customers to build bespoke solutions to their solid-liquid processing requirements.

OptiFlox® is a patent pending technology that continuously analyses & measures key parameters in industrial process streams. The technology supports our key chemistries of MaxiFlox® and DairyFlox®

Our range of proprietary chemicals & polymers deliver highly effective solutions to a range of industries

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PROFESSIONAL SERVICES

SciDev’s team of highly skilled engineers engage with our customer to understand their requirements & specific chemical challenges to deliver bespoke solutions

SDV identify the root causes of our client's problems and develop the most cost-effective solution.

Our Optiflox® technology analyses and measures the key parameters in the industrial process

Following the identification phase SDV continually support our clients through the use of our proprietary range of flocculants and coagulants to improve the efficiency of the process technology

SciDev with our customers to deliver solutions to their engage bespoke solid-liquid separation requirements.

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Initial Client Defined work Client Execution,
engagement introduction negotiation, optimisation,
scope / lab
supported by & build concept commitment total package
program / field
a Capability – problem trials & integration solution for
Statement identification steady state
operations
0 3 3-6 6-12 12-18
mths mths mths mths mths
Process
Control
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PROCESS CONTROL OPTIFLOX®

Optiflox® is a patent pending technology that continuously analyses & measures key parameters in industrial process streams.

OptiFlox® accurately & continuously measures the vital characteristics that dictate process performance (particle surface charge, pH, conductivity, turbidity and solids settling rate).

OptiFlox® analysis determines what chemicals need to be added to the process to optimise efficiency, maximising output and minimising costs for our customers

The technology can be applied to a range of industries that engage in solid liquid separation including mining, mineral processing, wastewater treatment and oil & gas

Optiflox® is a patent pending technology that continuously analyses and measures key parameters in the industrial process stream.

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MINERAL PROCESSING OIL & GAS
Monitors XYZ • ABC
MISCELLANEOUS INDUSTRY APPLICATIONS
• Food preparation
• Municipal authorities, wastewater treatment and
management
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SCIDEV CHEMICAL SOLUTIONS

SciDev has designed a range of proprietary polymers to meet any solid-liquid separation challenge

Whilst the company can develop bespoke solutions for any challenge, our primary product range is;

• MaxiFlox®

• • DairyFlox®

Our chemicals are inert and provide a clean and sustainable solution

SciDev and our partners have developed bespoke flocculants and coagulants that work across a range of industries.

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MaxiFlox[®] is specifically designed for use in solid liquid separation processes. The technology can be utilised across a range of industries including mining & minerals processing, water & wastewater, oil & gas, food & beverage and paper manufacturing

DairyFlox® is our range of polymers specifically developed for the dairy sector. They were developed through an eight-year R&D program to provide a lower cost, safer and greener method for treating dairy wastewater. The products are used in the treatment of wastewater streams produced in dairy manufacture processes.

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THE STRATEGIC OPPORTUNITY

The global opportunity for SciDev’s products is significant

The chemical industry has experienced a period of consolidation which has created large industry competitors that are focussed on centralised manufacturing with reduced service levels

Our world-class technical staff and our bespoke solutions will allow SciDev to increase penetration into the market

SciDev technologies can be applied as a solution to a range of solidliquid problems across multiple industries on a global basis.

GLOBAL MARKETS

INDUSTRY DRIVERS

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Mineral processing $2bn Municipal water treatment $5bn Industrial water treatment $1bn

COMPETITOR INSIGHTS

Large industry competitors have consolidated and are now focused on centralised manufacturing with reduced service levels.

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$127B USD $58B EUR

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$9B EUR

$43B USD

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CASE STUDY

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CASE STUDY

Peabody Energy committed to a six-month trial program, which provided clear and actionable insights resulting in a permanent solution that yielded measurable and sustainable results

RESULTS

240 hrs

SciDev measured, analysed and modelled Wilpinjong’s unique environment and resulting requirements

Constant data capture and analytics tracking chemical and particle changes

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500K

Optimisation of polymer usage and increased consumable recovery driving down operational costs by $500k

Real time measurement alleviating lag time in corrective processes providing an additional 240 hrs of productivity

Increase in productivity, reduction in environmental footprint and increased water re-use

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CASE STUDY

OptiFlox[®] is now the permanent chemical and process control solidsliquid separation solution for the world’s largest non-government coal company, Peabody Energy.

PEABODY ENERGY FACED UNSUSTAINABLE DOWNTIME ON THE WILPINJONG COAL MINE TAILINGS THICKENER

The fundamental operational challenge facing Peabody Energy was poor chemical dosing in response to constantly changing feed types.

CHALLENGES

Inconsistent plant feed quality

No real-time monitoring

Resulting in

Escalating chemical cost

No reporting technology

plant stoppages, reduced productivity and increased downtime.

Peabody quickly recognised the unique opportunity offered by SciDev’s technical innovation, supported by our team of fieldexperienced technicians.

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RECENT ACHIEVEMENTS

Strong financial position following placement and rights issue Q1 2019

Contract win Commercial trial Management changes Strategic alliance

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SciDev has delivered several significant milestones in the past 12 months.

Commencement of commercial trial of OptiFlox® at coking coal site in the 2018 Bowen Basin Secured strategic partnership with Sinoz Group of companies – a globally 2018 significant manufacturer of mining reagents Jan 19 Commercial trial of OptiFlox® with Peabody in the USA thermal coal industry Strategic alliance with Nuoer Group of China – the worlds 2[nd] largest producer Feb 19 of water based polymer products Apr 19 Lewis Utting announced as new CEO and Managing Director Awarded an AUD$1.08m contract to provide friction reducers in to the US July 19 shale industry. First contract in the Oil & Gas sector Awarded a 3 year contract with Iluka Resources for delivery of MaxiFlox® Aug 19 chemistry to the Jacinth–Ambrosia mine. AUD$8-12m contract over term

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FINANCIAL POSITION

SciDev is in a strong financial position to continue to advance opportunities in our growth pipeline

Our aim is to maintain a positive balance sheet to provide flexibility for growth

Recent announcement of a contract wins with Iluka Resources (A$8-14m over 3 years) and into the US oil & gas industry A$1m provide ongoing revenue streams

SciDev has a robust balance sheet, growing revenues and an ongoing focus on cost control.

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FY19 Net Cash Net Assets
Sales at end FY19 at end FY19
Revenue
A$2.92m A$1.76m A$4.7m
4Q FY19
YoY 4Q FY19
cash from
Revenue Revenue
Operations
Up
A$1m
-A$0.2m
32%
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SCIDEV: PEOPLE

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LEWIS UTTING
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SciDev’s products are backed up with expert support from our technical personnel, with a combined experience of several decades in the field. We can determine the best chemistry for a particular application and assist customers in optimising dosing and performance on site.

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CEO & MANAGING DIRECTOR
JAMIEL MUHOR JEFFREY ZHIANG SAM JIANG
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BUSINESS DEVELOPMENT MARKETING & STRATEGY FINANCIAL CONTROLLER
DIRECTOR
BRAD BORHAM SIMON PRIGMORE REECE SLINGSBY
INDUSTRY MANAGER TECHNICAL ACCOUNT TECHNICAL ACCOUNT
MANAGER MANAGER
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THE OUTLOOK

SciDev has a strong growth pipeline and is well positioned to deliver sustainable growth in solid-liquid separation

Drive our revenue line through the execution of a well structured business development pipeline in the Oil & Gas and mineral processing sectors

Build upon the Company’s momentum in the Australian coal industry, transitioning across application, mineral types and key industry players with our OptiFlox® technology

Further develop the opportunities presented through SciDev (US) LLC into the US oil & gas sector

Extend our technology into the precious metal and base metal sectors throughout Australia and Asia, while looking for other opportunities in currently unrealised sections of the mineral processing value chain

Renew our effort in the Australian water and wastewater sector with strategic partnerships and licensing opportunities with global operators and key end users

Deliver upon our recent agreement with Iluka in the mineral sands sector delivering value and further developing this relationship

Continue to strengthen and leverage our relationship with Nuoer through joint marketing and R&D efforts in key market areas

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DISCLAIMER

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.

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CONTACT

Managing Director & CEO Lewis Utting +61 2 9622 5185

Company Secretary Heath Roberts

Investor Relations Craig Sainsbury Market Eye

craig.sainsbury@marketeye.com.au

+61 2 9622 5185

www.scidev.com.au

S C I D E V I N V E S T O R D E C K