SPRINTEX LIMITED — Investor Presentation 2021

Oct 26, 2021

Sprintex Limited ABN: 38 106 337 599

ASX: SIX

ASX RELEASE 27 October 2021

Investor Webinar Presentation

Sprintex Limited ("Sprintex" or the "Company") is pleased to announce Sprintex's Managing Director and CEO, Mr Jay Upton, is providing an update on Sprintex at an investor webinar, including itsrecently announced agreement to develop, manufacture and supply industrial air compressors for use in the water treatment industry (see ASX announcement of 25 October 2021).

A copy of the investor presentation being delivered during the webinar is attached.

• Ends -

This ASX announcement was authorised for release by the Managing Director and CEO of Sprintex.

For further information

Sprintex Limited Jay Upton Managing Director and CEO

P: +61 8 9262 7277 E: jay.upton@sprintex.com.au MMR Corporate Services Pty Ltd Level 5, 52 Phillip Street Sydney, NSW 2000 Australia

P: +61 2 9251 7177 E: Sprintex@mmrcorporate.com

About Sprintex

Sprintex is a clean air compressor engineering, research, product development and manufacturing company, incorporated in Australia in 2003. Sprintex designs and manufactures electric and mechanically driven clean air compressors for use in a wide variety of applications, including:

• combustion engines where Sprintex sells Sprintex® twin screw superchargers, and supercharger systems incorporating the Sprintex® twin screw supercharger, in the automotive aftermarket and original equipment manufacturer (OEM) market in Australia, Asia, Africa, the Middle East and the United States of America;
• hydrogen fuel cells, which require a constant flow of oxygen rich air; and
• industrial oil-free clean air applications, including wastewater treatment.

Unit 2 / 63 Furniss Road, Darch WA 6065 Phone: +61 8 9262 7277 Email: admin@sprintex.com.au URL: www.sprintex.com.au

27 October 2021

1 Copyright © Sprintex Ltd

• § The information in this presentation has been prepared by Sprintex for the purposes of providing an overview of the company and its products.
• § This presentation does not constitute investment advice. Neither does this presentation nor the information contained in it constitute an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Sprintex does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.
• § This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Sprintex. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements.
• § Any forward looking statements in this presentation speak only at the date of issue of this presentation subject to any continuing obligations under applicable law, Sprintex does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation only changes in events, conditions or circumstances on which any such forward looking statement is based.
• § This document is provided for information purposes only. It is not an offer of sale nor a solicitation of any kind. It is recommended that anybody reviewing the statements here with a view for investment obtain independent professional advice.

Corporate Summary

Wayne Knight –Non-executiveChairman	§>30years'experienceworkingasafinancialadviser.§Heprovidesadviceoncreatingfinancialsecuritythroughpersonalandbusinessriskprotectionandprovidesservicesintheareasofpersonalsuperannuationplanning,managedinvestments,rolloverandredundancyplanning,wealthcreationandinsurances.
Jay Upton –Managing Director	§>20yearperiodworkingintheinternationalautomotiveindustry.§Priortothis,20years'experienceinengineeringmanagementintheheavymobileequipmentsectorandinbothindustrialandautomotivehighperformanceengineengineering.
Steve Apediale–Non-executiveDirector	§CharteredAccountant.§>30yearsexperiencegainedfromworkingwithmajoraccountingfirms&publiccompanies.
Li Chen –Non-executiveDirector	§6years'experiencefromanengineertoamanagingdirectorinmechatronics.§WithadegreeinMechanicalEngineeringfromUniversityCollegeLondon,MrChenisalsoqualifiedasaSeniorNew-energyEngineer(MinistryofIndustryandinformationTechnology,China).

Overview

ASXcode	SIX
Issued capital	214m
Options on issue:
§Unlisted $0.086, Apr 2024 expiry	5.0m
§Unlisted $0.086, May 2024 expiry	5.0m
Market capitalisation ($0.075 –20 October 2021)	~$16m
52 week high -low	$0.135 -$0.06

Substantial shareholders	Percentage holding (%):
China Automotive HoldingsLimited	15.5
MJ & MJ Wilson	13.2
Euro Mark Limited	9.8
Directors and Management	5.0
Top 20	88.6

SHARE PRICE PERFORMANCE Apr 21 – Oct 21

Key Highlights

World leading compressor technology supported by a library of global patents

Proven in mechanical drive applications and successfully applied, tested and proven in after-market automotive applications

Same compressor technology now being applied to electric drive compressor applications, targeting hydrogen fuel cells, the automotive industry and clean air applications such as wastewater treatment

Global facilities and reach:

R&D in Perth

Distribution in the US

Manufacturing in Malaysia

R&D and production facility in China – established in 2021, expected to be fully operation in Q4 2021

Targeting supplying compressors to the burgeoning hydrogen fuel cell market, industrial air applications (such as wastewater treatment) and eSuperchargers.

• Secured first industrial air client – RGE – ~A$6.3m revenue over 2 years, commencing Q1 20221

Compressors for Hydrogen Fuel Cells

• § Agreement for collaboration signed with Aeristech Ltd, a global technological leader in electric compressors.
• § Facilitates both Sprintex and Aeristech's steps towards the industrialisation of high-speed electric compressors and accelerates the two companies into hydrogen energy and clean air markets, including hydrogen fuel cell, industrial compressor sets.
• § First production samples scheduled for October 2021 to coincide with the opening of Sprintex's China production facility.
• § Provides significant future revenue opportunities for Sprintex with first fuel cell air compressor sales expected within the 2021 calendar year.

Hydrogen Fuel Cell Compressors

Hydrogen fuel cell air compressors

§ An air compressor is an essential part of the fuel cell system to boost adequate oxygen (from ambient air) into the fuel cell stack and makes the system more efficient and powerful.

Sprintex value proposition

• § Reliable electric controller exceeds 2 million switch cycles, air bearing exceeds 200k start stop cycles, (best in class).
• § Cost competitive
• § Efficient high efficiency.
• § Power density worlds' most power dense motor from 6kW to 50kW, provides compactness and lightweight for easy system layout.
• § Oil-free and maintenance-free bespoke air bearing design to provide frictionless operation, continuous clean air supply and maintenance-free operation for the entire unit life-time.

Technology trends

• § Technological advancement is tearing down many historic barriers to widespread adoption and dramatically reducing cost of the technology, especially for power electronics and high-speed motor applications.
• § High-speed centrifugal compressors are becoming the mainstream solution for fuel cell air charging.
• § Sprintex high-speed centrifugal fuel cell compressors aim to replace traditional expensive and bulky lobe-type, geared-centrifugal and twin-screw compressors for fuel cells.

Hydrogen Fuel Cell Market and Competitors

Key Market Drivers

• § Global government regulations and communal goal of Zero - Carbon, since hydrogen is the perfect media for energy storage of renewable power.
• § Hydrogen is the new diesel, with fuel cells to replace diesel engines in transportation, machinery, power generation where possible .
• § Efficiency in demanding duty cycle environments .

Market Size

• § The global Fuel Cell Market is projected to grow from USD 3 .36 B in 2021 to USD 28 .95 B in 2028 .
• § The FC Compressor Market represents 20 % of the Fuel Cell Market size (FC compressor costs 20 % of system cost) and is projected to grow from USD 0 .672 B to USD 5 . 8 B from 2021 -2028 . https ://www .fortunebusinessinsights .com/industry -reports/fuel cell -market -100733

Competitors

§ Less than 15 companies globally including Garrett, BorgWarner, Bosch, Liebherr and only 3 operating in China, Xeca Turbo, Kington, D . R . Power.

Industrial Clean Air Compressor (Industrial Air)

What is an industrial air compressor used for?

§ Used in modern production and processing, for metallurgy, production line pneumatic actuators, food and medicine, fabrics, wastewater treatment, vacuum, paper pulp, cement and semi-conductors etc.

Sprintex Value Proposition

Efficiency – frictionless high-speed centrifugal can reduce 10-40% of energy consumption compared to traditional lobe-type compressors. Can reduce 5-10% compared to geared centrifugal significantly reducing operating costs.

Reliability – EC life exceeds 2 million switch cycles, air bearings exceed 200k stop-start cycles (10x industrial requirements). Providing automotive standard reliability to general machinery.

Maintenance Free – bespoke oil-free design air bearing provides frictionless operation, continuous clean air supply and life-time maintenance free operation.

• Steel manufacturing • Cement manufacturing

• Food and medicine production

• Wastewater treatment
• Aquaculture industry aeration

• General production line pneumatic actuators
• Blow cleaning process

• Woven and non-woven fabrics, such as melt blown fabric process

• Semi-conductor industry

Industrial Air Market and Case Study

Case Study – Tech Trends – High-speed centrifugal compressor is the ideal solution for mid-low pressure and high flow application. 500,000 kWh (375 tonnes CO2 emissions) savings in a small/medium (320kW) wastewater treatment facility by switching to Sprintex from a lobe-type aeration compressor.

Key market drivers

• § Industrial air dominated by less efficient technologies soon to be obsolete by new regulations.
• § Demand for oil-free air across multiple market segments.
• § Oil-free air can improve the end-use equipment performance and reliability while lowering emissions, energy consumption, and total cost of ownership (TCO) to deliver maximum manufacturing uptime and improve profitability.

Market Size (Global Industrial Air, in GBP billion)

Sprintex/Aeristech Industrial Air Compressor (centrifugal)

eSupercharger/eTurbo

What is an eSupercharger for?

• § Electrically driven high-speed eSupercharger charges air into an engine to boost its performance, improves the combustion process, fuel economy, and reduces emissions.
• § Now used in Mercedes AMG and S-class, Audi diesel engines and mild-hybrid, more coming in 2022. eSupercharger/eTurbo is an essential step in Turbo system electrification for mild-hybrid engines, more powerful, cleaner and no turbo lag.

Sprintex Value Proposition

Power Density – worlds most power dense motor for 6kW to 10kW esSupercharger. Compact and low weight solution for easy system layout.

Performance – response time only 0.3s from 5,000 rpm to 75,000 rpm to build up full engine boost

Flexibility – capable of serving as a single boosting device, variants available for 12V, 48V and higher voltage vehicle systems for petrol, diesel and CNG engines

Supercharger/Turbo – Product and Market

Key market drivers

• § Government regulations ‒ Emissions regulations continue to drive the need to engine downsize and boost naturallyaspirated engines.
• § Performance improvements ‒ OEMs and aftermarket players are both introducing electric supercharging for power improvements. For diesel machinery, eTurbo can significantly reduce operating costs.

Market Size

Global turbocharger & supercharger market, in GBP billion

Technology trends

• § Emissions regulations and efficiency demands are driving continued growth in eSupercharging for both traditional and hybrid engine applications.
• § Multi and single-stage eSupercharging is providing manufacturers with alternative pathways to achieve improvements with limited investment.
• § Today's 48V automotive electrical systems are technically ready for the introduction of eSuperchargers.

Competitors

• § Well established market.
• § Sprintex will focus new products on diesel engine commercial vehicles, both mechanically and electrically driven.

© Sprintex Ltd 11

END

Jay Upton Managing Director

P: +61 8 9262 7277 E: jay.upton@sprintex.com.au

Contact: GO GREEN, GO SMART

Sprintex Limited

12 Copyright © Sprintex Ltd

October 2021