SCIDEV LTD — Investor Presentation 2020

Feb 3, 2020

Investor Presentation

February 2020

==> picture [561 x 470] intentionally omitted <==

1

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.

==> picture [60 x 61] intentionally omitted <==

==> picture [90 x 24] intentionally omitted <==

1

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

Financial Highlights

==> picture [60 x 61] intentionally omitted <==

==> picture [90 x 24] intentionally omitted <==

2

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

FINANCIAL HIGHLIGHTS

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

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

Growing customer engagement is requiring a near term increase in inventory levels

Inventory levels to normalise in 2HFY20, providing an increase in cash realisation

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

==> picture [263 x 14] intentionally omitted <==

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

2Q FY20 Revenue +77% vs 1QFY20
----- End of picture text -----

==> picture [539 x 321] intentionally omitted <==

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

2Q FY20
2Q FY20 2Q FY20
Net cash from
Revenue Cash receipts
Operations
A$4.04m A$2.26m -A$1.8m
Net Cash Inventory at
at end 2Q end 2Q FY20
FY20
A$3.1m A$2.3m
----- End of picture text -----

3

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

RECENT CORPORATE ACTIVITIES

Contract win Commercial trial Strategic alliance

==> picture [32 x 41] intentionally omitted <==

==> picture [34 x 76] intentionally omitted <==

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

2018	Secured strategic partnership with Sinoz Group of companies – a globally significant manufacturer of mining reagents
Feb 19	Strategic alliance with Nuoer Group of China – the worlds 2nd largest producer of water based polymer products
July 19	Awarded an AUD$1.08m contract to provide friction reducers in to the US shale industry. First contract in the Oil & Gas sector
Aug 19	Awarded a 3 year contractwith Iluka Resourcesfor delivery of MaxiFlox® chemistry to the Jacinth–Ambrosia mine. AUD$8-12m contract over term
	$4.16m capital raising to provide working capital requirements for growing
Sep 19	inventory requirements
Oct 19	Acquired ProSol Australia Pty Ltd for AUD$1.9m, strengthening SDV’s position in the Hunter Valley Coal fields
Jan 20	Strategic acquisition of Highland Fluid Technology for US$6m, providing access to onshore USA oil and gas market
Jan 20	Trial Order for Maxiflox® chemistry from Las Bambas copper mine in Peru.
	First order in large South American copper industry	4

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

SALES PER QUARTER ($m)

SciDev has a track record of growing its sales as it executes on opportunities in its pipeline

Management are focused on signing new contracts and pursuing business opportunities globally

SciDev has a track record of growing revenues and has a wellstructured pipeline of business development opportunities globally

==> picture [571 x 380] intentionally omitted <==

5

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

Business update

==> picture [60 x 61] intentionally omitted <==

==> picture [90 x 24] intentionally omitted <==

6

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

SCIDEV: TECHNOLOGY

==> picture [32 x 41] intentionally omitted <==

==> picture [38 x 43] intentionally omitted <==

SciDev’s bespoke solutions and professional services deliver sustainable coagulant and flocculant dosage optimisation reducing the associated costs and the elimination of poor performance

SciDev generates revenue from professional services, our operating systems, and chemical sales

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

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

==> picture [623 x 350] intentionally omitted <==

7

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

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

==> picture [128 x 197] intentionally omitted <==

Oil & Gas market in USA $2bn Global Mineral processing $2bn Global Municipal water treatment $5bn Global Industrial water treatment $1bn

COMPETITOR INSIGHTS

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

==> picture [62 x 24] intentionally omitted <==

$3.5B EUR

$2B EUR

==> picture [62 x 13] intentionally omitted <==

==> picture [95 x 38] intentionally omitted <==

==> picture [86 x 22] intentionally omitted <==

$56B USD

$9B EUR

8

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

HIGHLAND ACQUISITION

Initial US$5m acquisition

c.US$7.8m of revenue delivered in CY19

Acquisition funded via the issue of 11.9m shares to the vendors at a price of $0.60/sh

50% of shares have nil escrow, 25% with 6- month escrow and 25% 12-month escrow

US$1m additional cash payment if US$20m of revenue achieved in CY2020 at a specified margin

SciDev’s strategic acquisition of Highland Fluid Technologies provides access to the sizeable USA onshore Oil & Gas market.

Immediate The US onshore oil and gas market represents a potential US$2bn market in production & speciality chemicals access Margins are expected to improve through SciDev’s ability to introduce a Margin low cost chemical supply chain via their own facilities and strategic Uplift relationship with Nuoer Group who are a substantial SciDev shareholder Accelerated Surety of quality supply from Nuoer and SciDev facilities will allow Highland to target larger value customers accelerating growth growth

Highland staff will remain with SciDev providing valuable knowledge especially in the water recycling component of the oil and gas sector

Skilled staff

The Highland facilities in Houston will provide a base for SciDev in the USA to target opportunities in other sectors throughout the Americas

USA base

9

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

HIGHLAND OPPORTUNITY

Strategic acquisition of Highland Fluid Technology provides access to the fluid recycling and water reuse markets in the US$2.5bn onshore USA oil & gas industry

SciDev’s chemistries and services have been tested by Highland and its customers since mid year and have passed commercial trials – significantly de-risking the project

Acquisition will provide a USA base for further North American business development opportunities

Highland Fluid Technology management have a global network providing a segue into other large oil & gas markets

SciDev’s strategic acquisition of Highland Fluid Technologies provides access to the sizeable USA onshore Oil & Gas market.

USA ONSHORE OIL & GAS MARKET

INDUSTRY DRIVERS

==> picture [171 x 34] intentionally omitted <==

4 barrels of wastewater are generated by every 1 barrel of oil produced

==> picture [171 x 64] intentionally omitted <==

Water scarcity and increasing regulations on waste-water quality driving a need to produce less waste and reuse more water

Specialty & production chemical market in US oil and Gas industry is estimated at

The amount of water used in the US shale industry has risen 770% since 2011

US$2bn

CUSTOMER TARGET MARKET

SciDev, via Highland will target, drillers, producers and service companies to provide chemistry, equipment and professional services to help in the re-use and recycling of water and reduce waste. Key customer targets include; Halliburton, Innospec & US Well Services

10

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

Outlook

==> picture [60 x 61] intentionally omitted <==

==> picture [90 x 24] intentionally omitted <==

11

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

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 mineral processing, oil & gas, construction and wastewater 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 by Highland in 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

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

12

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

Appendix

==> picture [60 x 61] intentionally omitted <==

==> picture [90 x 24] intentionally omitted <==

13

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

SOLIDS-LIQUIDS SEPARATION

==> picture [32 x 41] intentionally omitted <==

==> picture [38 x 43] intentionally omitted <==

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 wastewater, 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 wastewater 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

14

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

SCIDEV: PEOPLE

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

==> picture [605 x 228] intentionally omitted <==

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

SCIDEV BOARD
TREVOR JONES LEWIS UTTING SIMONE WATT JON GOURLAY HEATH ROBERTS
CHAIRMAN CEO & MD NON-EXECUTIVE NON-EXECUTIVE DIRECTOR COMPANY SECRETARY
DIRECTOR
----- End of picture text -----

EXECUTIVE MANAGEMENT TEAM

==> picture [635 x 167] intentionally omitted <==

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

JAMIEL MUHOR JEFFREY ZHIANG BEN GILL
DALE BARRON John Fehon Kevin Smith
BUSINESS MARKETING & STRATEGY TECHNICAL
COO CFO PRESIDENT HFT DEVELOPMENT DIRECTOR DIRECTOR
15
----- End of picture text -----

15

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

CORPORATE SNAPSHOT

CORPORATE OVERVIEW

	ASX code	SDV
	Market cap (at $0.80 per share)	$103m
	Shares on issue	129m
	Options on issue (exercisable at $0.12 – exp. 07/22)	3.35m
	(exercisable at $0.10 – exp. 07/22)	2.00m
	Cash in bank	$3.1m
	Working capital facility	$0.5m

MAJOR SHAREHOLDERS	% held
Nuoer Group	7%
Sinoz Group	4%
Board and Management	5%
Institutional	12%
Retail	72%

BOARD MANAGEMENT

	Chairman	Trevor Jones
	MD & CEO	Lewis Utting
	Non-Executive Director	Simone Watt
	Non-Executive Director	Jon Gourlay
	Company Secretary	Heath Roberts

STRATEGIC INVESTORS

==> picture [49 x 36] intentionally omitted <==

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

==> picture [40 x 33] intentionally omitted <==

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

==> picture [90 x 25] intentionally omitted <==

17

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

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.

==> picture [90 x 24] intentionally omitted <==

18

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

==> picture [202 x 53] intentionally omitted <==

CONTACT

CEO & MD Lewis Utting +61 2 9622 5185

Company Secretary Heath Roberts

Investor Relations Craig Sainsbury

craig.sainsbury@marketeye.com.au 0428 550 499

+61 2 9622 5185

www.scidev.com.au

19

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