Slide 1 Hydrix | Investor Update | 1 April 2019
Hydrix Ltd
Investor Update April 2019 Development and commercialisation of technologies that enhance people’s health, safety and well-being
Hydrix Ltd Investor Update April 2019 Development and - - PowerPoint PPT Presentation
Hydrix Ltd Investor Update April 2019 Development and commercialisation of technologies that enhance peoples health, safety and well -being Slide 1 Hydrix | Investor Update | 1 April 2019 Disclaimer This presentation has been prepared by
Slide 1 Hydrix | Investor Update | 1 April 2019
Investor Update April 2019 Development and commercialisation of technologies that enhance people’s health, safety and well-being
Slide 2 Hydrix | Investor Update | 1 April 2019
Disclaimer
This presentation has been prepared by Hydrix Limited (the “Company” or “Hydrix”). This presentation is being provided to investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. The document is not intended to constitute an invitation or an inducement to engage in any investment activity. The presentation is not intended to constitute investment advice and should not be relied upon as such. This document is not intended as an offer or recommendation with respect to the purchase or sale of any securities in the Company. The content and graphical illustrations contained in the presentation are provided for information purposes and should not be relied upon to form any investment decisions or to predict future performance. The Company is wholly reliant upon third parties for the accuracy and completeness of the information in the presentation and has no duty of care owed to you in relation to such information. Although the information expressed is provided in good faith and the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include amongst others, unforeseen delays in product development, the timing and extent of any changes in the associated technology and the ability of the Company to meet its stated business goals. Prospective investors should make their own independent evaluation of an investment in the Company or seek advice from their financial adviser, accountant, lawyer, stockbroker or other professional adviser before making any investment decision. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act, or otherwise. This presentation does not amount to, involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. Neither Hydrix nor any of its or their associates or any of the Company’s directors’ (Hydrix Group) shall have any liability whatsoever for: (a) investment advice; (b) a recommendation to enter into any transaction or strategy; (c) advice that a transaction or strategy is suitable or appropriate; (d) the primary basis for any investment decision; (e) a representation, warranty, guarantee with respect to the legal, accounting, tax or other implications of any transaction or strategy; or (f) to cause the Hydrix Group to be an advisor or fiduciary of any recipient of this report or other third party. None of Hydrix shall be responsible for or have any liability to you for losses or damages (whether consequential, incidental or otherwise) arising in any way for errors or
and warranties that might otherwise be implied by law with respect to the document, whether by operation of law, statute or otherwise, including as to their accuracy, completeness or fitness for purpose. Unauthorised copying of this document is prohibited.
Slide 3 Hydrix | Investor Update | 1 April 2019
Hydrix today
Hydrix brings together a unique set of skills to solve complex problems and develop pioneering technology in large, fast growing, global target markets
Consumer er & Indu dustr tria ial
market by 2025)
Critica ical systems ems
decade)
budget AUD$250B over next decade)
Medi dical al Tech
Healthcare is a US$7.8T annual market
Hydrix’s capabilities include:
Management
Slide 4 Hydrix | Investor Update | 1 April 2019
A diversified fee-for-service product design & commercialisation business
✓ Develop pioneering technology to deliver successful product innovation for our clients ✓ Breadth of capability from idea generation to commercialisation ✓ Delivered 200+ products over the last 15 years ✓ Strong track record of success locally and internationally
Slide 5 Hydrix | Investor Update | 1 April 2019
A proven portfolio of projects, clients and industries
Slide 6 Hydrix | Investor Update | 1 April 2019
A diverse array of sophisticated design projects
Selection of Current Projects: Cardiac Assist Devices for Heart Failure Patients
total artificial heart)
Powered robotic exoskeleton for stroke victims Next generation site protection Treatment for Alzheimer’s disease IVF assistance device Smart Meter Technology Smart Mining Innovation
Slide 7 Hydrix | Investor Update | 1 April 2019
Delivering strong revenue growth
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
Audited Quarterly Revenue ($'000)
Slide 8 Hydrix | Investor Update | 1 April 2019
Met or exceeded all 1H FY19 milestones
Milestones 1H FY19 Updates Minimum 15% revenue growth compared to 2H18 Exceeded → 1H19 revenue of $5.7m represents 43% growth on 2H18 revenues of $4.0m 15% increase in engineering services capacity Exceeded → 25% headcount increase in engineers and designers to current 60 personnel Secure three new significant and high-dollar value projects Achieved → Rex Bionics, Gyder Surgical and large Utility (commercial-in-confidence) 20% reduction in cash used in
December quarter against September quarter Exceeded → 27% reduction in cash used from $1.8m in 1Q19 to $1.3m in 2Q19 Implement Buy, Build, Invest strategy Buy → Continue efforts to identify strategic acquisitions Build → Implemented internal product identification opportunity program. Invest → Established strategic equity partnership in Gyder Surgical P/L, Memphasys (ASX:MEM)
Slide 9 Hydrix | Investor Update | 1 April 2019
On track to meet or exceed 2H FY19 milestones
Milestone Aspirations 2H FY19 Status Minimum 15% revenue growth in H2 compared to H1 On Track Solidify global leadership position engineering cardiac assistance control devices On Track Secure three significant and high-dollar value projects On Track Targeting break-even in 4Q FY19 On Track Identify our next acquisition or equity investment opportunity On Track
Slide 10 Hydrix | Investor Update | 1 April 2019
A vision and clear strategy that drives growth
Development and commercialisation of technologies that will enhance people’s health, safety and well-being
To be a sought-after world class developer and provider of pioneering technology products & services Best practice in project
delivery, and client satisfaction Attract and retain the best design and engineering minds and problem solvers Grow services revenues and profitability Build a robust and world-class, fee-for- service design and engineering business Leverage design & engineering capability to build a portfolio of product and IP-based business Grow recurring product and IP based revenues
Vision Mission Strategy Targets Increased business and shareholder value
Slide 11 Hydrix | Investor Update | 1 April 2019
Growth from fee-for-design services, buying & building pioneering products and making strategic investments in customers
Develop Products Invest Take equity Acquire Monetise
Leverage core engineering and design capability to develop our own products & IP
Diversified product & IP portfolio Strategic growth activity Current world-class engineering services Value creation
Medical Technology Consumer & Industrial Critical Systems & Defence Hydrix provides a unique opportunity to gain access to a diversified technology development and products company at the start of its growth trajectory
Slide 12 Hydrix | Investor Update | 1 April 2019
Well placed for future growth
In summary, we have:
developing our own products for fast-growing target markets
design services developed over 15+ years
professional designers and engineers
Cochlear, Philips, Siemens and others
R&D tax incentives, cost effective exchange rates and (in MedTech) strong clinical trials reputation
domains representing skills that are in demand globally
Corporate and Board overview
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A long term, supportive shareholder base
30-32 Compark Circuit, Mulgrave, VIC 3170 Australia
Capital Structure (as of 28 Mar. 2019) Ticker HYD Share Price $0.02 Shares on Issue (m) 669.1 Options and Performance Rights (m) 41.7 Fully Diluted Shares 710.8 12-month Range $0.019 - $0.096 Market Capitalisation ($m)1 $12.7m Enterprise Value $16.7m Major Shareholders Shares (m) % John W King Nominees 144 22% Lion Tail Trading Pty Ltd* 43 7% Kurrawonga Pty Ltd 19 3% Flet Superannuation Pty Ltd 15 2% Goetzke Super Company 14.5 2% Top 10 283m 42% Top 20 346m 52%
* 25m in escrow until Nov. 19
Slide 15 Hydrix | Investor Update | 1 April 2019
A highly experienced board & executive leadership team
Gavin Coote GAICD
Non-Executive Chairman 9.7m shares
Julie King GAICD
Non-Executive Director 114.2m shares 25+ years’ financial leadership building business in the US and Australia across technology healthcare and industrial sectors 35+ years experience in corporate communications, people and change management
Joanne Bryant
Non-Executive Director 11.4m shares 35+ years experience in workplace performance and organisational culture
Paul Wright FAICD
Non-Executive Director
Chief Executive Officer 2m shares 30+ years’ experience in leading and growing large- scale, multinational engineering product design & manufacturing companies 30+ years’ experience in leading technology-based
commercialisation, business development, international sales & marketing, and M&A
The Hydrix Board and Executive Team possess wide ranging experience and proven skills across: Finance, Strategy, Governance, Capital Markets, Technology, IP and our target industry sectors of MedTech, Industrial, Consumer and Defence
Selected fee-for-service project case studies
Slide 17 Hydrix | Investor Update | 1 April 2019
Proven Track Record – Design & Manufacture of Advanced Rail Communications System
Radio Interface Unit for Victorian Digital Train Radio System
telemetry, data & communications
requirements
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Proven Track Record – End to End Design & Development of Unique X-Ray System
Portable radiography using nanotechnology (from concept to FDA certification in 18 months)
control)
Management (IEC 62304, Class 2 Medical Device, Safety Related)
Slide 19 Hydrix | Investor Update | 1 April 2019
Proven Track Record – Design of Controller for a Total Artificial Heart
Development of control systems for Ventricular Assist Devices (LVADs) and Total Artificial Hearts (TAHs)
controllers and is currently developing 4 more controllers for LVADs and TAHs. Hydrix manages the end to end development of the controllers
design
Slide 20 Hydrix | Investor Update | 1 April 2019
hydrix.com
30-32 Compark Circuit Mulgrave VIC 3170 Australia ASX:HYD