Hydrix Ltd Investor Update April 2019 Development and commercialisation of technologies that enhance people’s health, safety and well -being Slide 1 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 omissions in, or the use of or reliance upon the information contained in this document. To the greatest extent permitted by law, we exclude all conditions 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 2 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 Hydrix’s capabilities include : Medi dical al Tech Critica ical systems ems Rail (AUD$100bn over next • Software • Cardiac • decade) Neurostimulation • Electronics • Security • IVF • Defence (Australian Defence Mechanical Design • • Robotics • budget AUD$250B over next Industrial Design • decade) Healthcare is a US$7.8T annual Regulatory Consulting • market CAD • Physics • Thermal Analysis • Consumer er & Robotics • Indu dustr tria ial Rapid prototyping & 3D Printing • Utilities • Transfer to Manufacture • • Agricultural Tech Manufacturer Selection & • Internet of Things • Mining (USD$16Bn annual • Management market by 2025) Supply Chain Audit • Product Supply • Slide 3 Hydrix | Investor Update | 1 April 2019
A diversified fee-for-service product design & commercialisation business ✓ Develop pioneering technology to deliver successful product innovation for our clients ✓ Breadth of capability from idea generation to commercialisation ✓ Delivered 200+ products over the last 15 years ✓ Strong track record of success locally and internationally 1. Innovate 2. Design 3. Engineer 4. Prototype 5. Manufacture Slide 4 Hydrix | Investor Update | 1 April 2019
A proven portfolio of projects, clients and industries Slide 5 Hydrix | Investor Update | 1 April 2019
A diverse array of sophisticated design projects Selection of Current Projects: Cardiac Assist Devices for Heart Failure Patients • Currently operating three simultaneous projects: UK, France & USA (Inc. total artificial heart) Powered robotic exoskeleton for stroke victims Next generation site protection Treatment for Alzheimer’s disease IVF assistance device Smart Meter Technology Smart Mining Innovation Slide 6 Hydrix | Investor Update | 1 April 2019
Delivering strong revenue growth Audited Quarterly Revenue ($'000) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Slide 7 Hydrix | Investor Update | 1 April 2019
Met or exceeded all 1H FY19 milestones Milestones 1H FY19 Updates Minimum 15% revenue growth Exceeded → 1H19 revenue of $5.7m represents compared to 2H18 43% growth on 2H18 revenues of $4.0m 15% increase in engineering Exceeded → 25% headcount increase in engineers services capacity and designers to current 60 personnel Secure three new significant and Achieved → Rex Bionics, Gyder Surgical and large high-dollar value projects Utility (commercial-in-confidence) 20% reduction in cash used in operating activities in the Exceeded → 27% reduction in cash used from December quarter against $1.8m in 1Q19 to $1.3m in 2Q19 September quarter Buy → Continue efforts to identify strategic acquisitions Implement Buy, Build, Invest Build → Implemented internal product strategy identification opportunity program. Invest → Established strategic equity partnership in Gyder Surgical P/L, Memphasys (ASX:MEM) Slide 8 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 On Track compared to H1 Solidify global leadership position engineering On Track cardiac assistance control devices Secure three significant and high-dollar value On Track projects Targeting break-even in 4Q FY19 On Track Identify our next acquisition or equity On Track investment opportunity Slide 9 Hydrix | Investor Update | 1 April 2019
A vision and clear strategy that drives growth Development and commercialisation of technologies that will Vision enhance people’s health, safety and well -being To be a sought-after world class developer and provider of pioneering Mission technology products & services Increased business and shareholder Build a robust and world-class, fee-for- Leverage design & engineering value Strategy service design and engineering capability to build a portfolio of business product and IP-based business Best practice in Attract and retain the best design Grow services project Grow recurring Targets operations and engineering revenues and product and IP delivery, and minds and profitability based revenues client satisfaction problem solvers Slide 10 Hydrix | Investor Update | 1 April 2019
Growth from fee-for-design services, buying & building pioneering products and making strategic investments in customers Hydrix provides a unique opportunity to gain access to a diversified technology development and products company at the start of its growth trajectory Diversified product & Develop Invest Take equity Acquire Monetise IP portfolio Products Value creation Strategic growth activity Leverage core engineering and design capability to develop our own products & IP Consumer & Critical Systems & Current world-class Medical Technology engineering services Industrial Defence Slide 11 Hydrix | Investor Update | 1 April 2019
Well placed for future growth In summary, we have: • Clear vision and strategy for growth in providing services and developing our own products for fast-growing target markets • Increasing global demand for our advanced engineering and design services developed over 15+ years • Scale to take on big global projects with over 50 world class, professional designers and engineers • Trusted relationships with major global companies including GE, Cochlear, Philips, Siemens and others • Global clients and investment opportunities attracted to Australian R&D tax incentives, cost effective exchange rates and (in MedTech) strong clinical trials reputation • Ability to work in high-end Class III medical and safety critical domains representing skills that are in demand globally Slide 12 Hydrix | Investor Update | 1 April 2019
Appendix 1 Corporate and Board overview
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