Redflow : Presentation at MarketEye's Virtual Conference

Redflow

Market Eye Virtual Conference 26th May 2020

Company Overview

Headquartered	Company owned manufacturing
In Brisbane, Australia	facility in Thailand

Redflow designs and manufactures zinc-bromine flow batteries

Major Target Markets	Key Geographies
Telco	Southern Africa
Commercial, Industrial & Utility	Australia
Remote Area Power Systems	New Zealand
High end Residential	China and Selected Asia

~90 current deployments across multiple countries*

Redflow is redefining energy storage in our target markets

* Deployments with Redflow batteries operational as of 25th May 2020 or in the last 90 days

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Investment Thesis

Market leading flow

battery energy

storage provider with

deep technical

competence

Independent testing shows no changes in the capacity or performance over sustained cycling*

Growing diversified blue chip client base with addressable spend in growing 4m+ mobile tower market and other industries

$120m invested over 15 years in proprietary technology and commercialisation

40% growth in

deployments over the

last 12 months

Move to Thailand

manufacturing facility

has reduced

manufacturing costs

by 40% (current Gen2.5 battery)

Strategic growth opportunities in adjacent applications and markets including China

Strategies in place targeting a further 30% reduction in manufacturing cost (Gen 3 battery), with further cost reduction opportunities depending on scale

• Independent Australian government funded testing show sustained performance after 600 cycles. See batterycentre.com.au

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The Opportunity for Redflow

• The world is transitioning to a lower carbon energy system
• Storage sits at the core delivering reliable, affordable, low-carbon electricity
• Flow batteries have a specific role in the energy storage ecosystem

"Flow batteries are potentially going to be a big contributor in stationary energy storage, like the grid-level stationary energy

storage"

Australia Chief Scientist Dr Alan Finkell1

• Flow batteries suited for 10kWh applications up to multi MWh
• Comfortable with discharge times of up to 15 hours (at rated energy)
• Chosen for versatility, adaptability and robustness

Stationary Storage Market by Type (Illustrative)

Power

GW

Pumped Hydro

Compressed Air

Flow

Lithium

Lead

kW

0-2 h

2-6 h

6-12 h

> 12 h

Discharge durationDischargeat rateddurationPowerat rated Power

Market for redox flow batteries forecast to be worth US$4.5 billion by 20282

1 Australian Financial Review, Finkel backs unheralded Aussie battery tech companies to go global, 31 June 2019 2 IDTechEx, Redox Flow Batteries 2018-2028: Markets, Trends, Applications, August 2018

Patent protected technology with unique features

Gen2.5

(Current)

Gen3.0

(Target Customer trials Dec2020)

Competitive position is

protected through 10+ years investment in an IP portfolio across multiple countries plus trade secret knowledge

Flow chemistry is like a reversible electroplating process

Unlike conventional batteries, it is happy to run flat and repeatedly use 100% of its energy capacity

Excellent tolerance for high ambient temperatures without

external cooling

Compact Flow battery; this modular design enables scalability 10kWh → multi-MWh

Smart battery including Battery Management System (BMS) with remote monitoring and diagnostics plus self-protection features

Strong environmental credentials recyclable HDPE plastic and re-usable electrolyte

A number of theft mitigation features, incl. software and

hardware innovations

10 years or 36.5 MWh throughput warranty

Not susceptible to thermal runaway

Redflow Zinc Bromine Target Applications and Advantages

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Minimise Diesel Use

Generator only used to recharge batteries and/or as a backup solution

Maximise Renewable

Ability to go to empty and discharge to 0V repeatedly without damage

Ability to turn the battery off OFF without damage, and no

float current required

Ability to utilise 100% of the capacity of the battery and won't kill battery by over- discharging

Ability to "park" a system

and use it as requiredP (e.g. like a back-up

generator)

2 Consumption

Store excess energy generated through renewables to be deployed when needed

Mitigate peak demand

3 costs

Battery discharge targets the load peak to avoid extra charges related to peak demand

No material electrochemical degradation up to 50C battery operating temperature

• Not susceptible to thermal runaway

Straight forward to recondition, repaid and recycle

Potential operational cost savings, especially in warm climates - no air conditioning required

Low risk of causing fire, and avoid fire suppression costs

Strong environmental credentials and minimal end-of-life impact

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Decreasing life-time cost proposition

Current	Next 12m	Future*
Higher energy density	Excellent temperature
(volume or weight) than
Vanadium or Lead-acid**	tolerance means lower

		air-conditioning Opex
1		in warm climates	Remote monitoring
			facilitates reduction
2			in operations &
	3		maintenance costs	Opportunity to offer late-
		4			life refurbishment & re-
Long cycle-life and			5		conditioning to extend
			operational life
100% useable
			6
energy has cost
benefits		Non-flammable			7
		electrolyte means				8
		lower fire
		suppression costs		Finalise development of
				Recovery and recycling
				Gen3 battery and
				pursue significant	of chemical components
				opportunities for further		at end of life (EOL),
				cost reductions	provides opportunity for
				depending on scale		lower EOL costs
					compared to Lithium***

Target future	• Increase in core battery capacity currently undergoing testing (customer $/kWh benefits)
customer benefits in
• Additional software based functionality to increase application specific performance
development

• Timing will be dependent on customer demand for service
• See CSIRO Report Electrical Energy Storage: Technology Overview and Applications, July 2015
• Referenced from Renew Economy, 'Battery recycling could generate billion-dollar industry for Australia, push down prices.'

Markets and Outlook

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Major target markets

	Our sweet spots include…
Energy-focussed	Frequent	Warm climates that rapidly
applications	cycling	degrade other batteries

Present Focus

Telco

• >4m mobile towers globally
• Power costs a major factor
• Load shedding / weak grids increase demand for long duration batteries
• Increase in infrastructure sharing and tower companies
• Battery theft plus commercial and environmental concerns over diesel use

Provide technical and

commercial value proposition across off-grid,weak-grid and back-up power supply applications

Remote Area Power

Systems (RAPS)

• Battery Energy Storage System crucial to RAPS with renewable energy sources and can improve efficiency of fossil fuel generation.
• Needs high temperature tolerance, and frequent deep cycling. Minimal capacity decline, like ZBM, highly desirable to maintain optimum operation over life.

Redflow solution is well

suited to these and our ten

year warranty offers an attractive commercial proposition

Commercial,

Industrial & Utility

• Multiple industries where stable and cost efficient power is critical
• Key issues include intermittent power, high peak demand tariffs and maximising renewable use
• Address solar curtailment
• Sub-stationsupport as demands on grid increase.

Reduce energy costs by replacing / supplementing grid power and avoiding demand tariffs through storing off peak energy

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Near term target market - Telco sector

4 million

telco base stations globally with 4.6% CAGR growth 2019-20241

120,000

new base stations are deployed yearly - mostly in countries with poor grid infrastructure2

1 million +

off-grid and bad-grid towers by 2020 with over 90% using diesel as main power source2

• Major growth in markets and geographies with no or weak grid environments plus resiliency programs in developed markets such as Australia
• • Growth expected in areas of poor or limited grid connection and concentrated in Africa & Asia2
  • Government sponsored initiatives to improve telco resiliency/back up3
• Base stations energy use are a major cost component for Telcos
• • 160,0004 base stations in Africa. Existing engagements cover ~37k towers
  • 21,0004 base stations in ANZ & Pacific. Existing engagements cover ~16k towers
  • 407,0004 in Asia (excl China, India & Japan). Existing engagements cover ~18k towers
  • Expected increase in power consumption due to 5G. Widespread upgrades of mobile base station power systems is anticipated
• Growth of tower companies and infrastructure services
• • Focus on efficient energy management and emergence of energy as a service models
• Renewable Energy Commitments
• • Global telco operators have clear and ambitious renewable energy goals e.g. replace use of diesel5
  • Government driven and funded initiatives to reduce blackspots in key countries.
  • Government programmes to fund, subsidise or mandate build out of towers in rural or remote locations

1.	Mordor Intelligence, Telecom Towers Market, Growth, Trends and Forecast (2019 - 2024)
2.	GSMA Report, Green Power for Mobile, December 2014
3.	For example, Australian government AUD$37m Telecommunications Emergency Resilience Package to improve the resilience of communications networks, 2020
4.	TowerXchange 2019 Market Reports (Africa and Asia)	10
5.	Vodafone Group Sustainability Report, 2019

Case Studies and Commercial Strategy

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Case Studies - Australian Deployments

Optus	Knox Children and Family Centres

• Deployed in April 2019. Commissioned May 2019.
• Consisting of 6 ZBM2 batteries and diesel generator (previously running 24 hours per day)
• Deployed in environmentally sensitive high temperature Daintree rainforest deployment in Queensland, Australia
• Redflow selected due to sustained energy storage capacity, tolerance of warm temperatures, remote management capability and environmentally-friendly design

Total energy throughput since commissioning:

7.4MWh (70% diesel runtime reduction)*

• Deployed and Commissioned in May 2019
• 36 ZBM2 batteries across two centres combined with 180 kw PV solar panels storing up to 360 kWh of energy
• Children and Family Centre Bayswater Winner - Architectural Design/Green Architecture category in the 2019 International Architectural MasterPrize Awards "It is Australia's first civic-wellnesscentre with a 100+ year design life, setting a new benchmark for council and government bodies nationally"

Total battery energy throughput since commissioning:

75.2MWh*

* Internal Redflow estimate of total energy output since commissioning to 2nd May 2020. Based on data received from Redflow Battery Management System

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Case Studies - International Deployments

Moropa & Mobax - Vodacom Mobile Towers	Vodafone New Zealand

• Redflow batteries deployed at Moropa's rural base stations on Vodacom network since 2019 for standby power. New deployments ongoing.
• Mobax commenced deployment of 68 batteries on approx 30 Vodacom-owned towers in Dec 2019. Deployment ongoing but delayed due to COVID-19
• Two sites with Redflow batteries have been targeted by thieves in last 3 month. Attempted theft of the Redflow units was abandoned in both cases.
• Redflow selected due to anti-theft, modular sizing and long duration discharge.

Moropa remote site back up power - 695 kWh of energy used

during site power outages since installation (approx. 70

outages since May 2018)

• Installed April 2016. Batteries commissioned June 2016
• Vodafone telecommunications off grid tower in remote area of New Zealand
• System uses wind, solar and Redflow batteries as primary energy sources for the tower. Diesel generator only for minimal backup power during low radiation days.

Since installation in 2016, the Redflow batteries have supplied

more than 60 MWh (megawatt-hours) of energy

* Internal Redflow estimate of total energy output since commissioning to 2nd May 2020. Based on data received from Redflow Battery Management System

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Our Commercial Strategy

• We are currently engaged with global telco and tower operators which represent over 70,000 towers under management at various stages of the sales cycle. We estimate that 25-30% of this total is addressable by a Redflow based solution.
• Based on current telco and other engagements, Redflow assesses our immediate addressable market to be 5,000+ batteries in the next 3-4 years. This does not include demand from new customers in this period.
• Sales and timing dependent on COVID-19 recovery and ability to serve key markets.

SCALE AND EXPAND

INTO ADJACENT

MARKETS

RAPID SCALE UP IN

TARGET MARKETS

STAGED RECOVERY

AND COMMISSION

GEN3

Next 12m		12 - 24m		3+ years

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Disclaimer

This presentation has been prepared by Redflow Limited ("Redflow"). It contains general information about Redflow as at the date of this presentation. The information in this presentation should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in Redflow may require in order to determine whether to deal in shares. The information in this presentation is of a general nature only and does not purport to be complete.

This presentation does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this presentation constitutes investment, legal, tax or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth).

Readers or recipients of this presentation should, before making any decisions in relation to their investment or potential investment in Redflow, consider the appropriateness of the information having regard to their own objectives and financial situation and seek their own professional legal and taxation advice appropriate to their particular circumstances.

This presentation is for information purposes only and does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any shares. Further, this presentation does not constitute investment

advice, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Certain statements in this presentation are forward-looking statements. You can identify these statements by the fact that they use words such as "anticipate", "estimate", "expect", "project", "intend", "plan", "believe", "target", "may", "assume" and words of similar import. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

Forward-looking statements, including projections, guidance on future earnings and estimates, are provided in this presentation as a general guide only and should not be relied on as an indication or guarantee of future performance. Forward- looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements. No representation, warranty or assurance (express or

implied) is given or made by Redflow that the forward-looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, Redflow disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this presentation to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this presentation shall under any circumstances create an implication that there has been no change in the affairs of Redflow since the date of the presentation.

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