Hydrix : Updated Company Overview

For personal use only

ASX Announcement	18/07/2022

Updated Hydrix Company Overview

Hydrix Limited (Hydrix or Company) (ASX: HYD) attaches an updated company overview, following on from recently lodging its 30 June 2022 quarter Appendix 4C and Business Update.

Hydrix Executive Chairman Gavin Coote commented:

"Following on from our strong June quarter and full year results report and positive outlook for revenue growth in the year ahead, I am pleased to provide investors the updated company overview.

Hydrix strategy is to become a profitable, global, diversified medtech company. Each of the three business segments that make up the commercial business model have set out to achieve significant sustainable growth milestones in the coming year.

During the COVID impacted past two years, we strengthened our core business, expanded our sales, marketing and business development reach, continued to build on our rich 20 year track record in breakthrough product development with recent significant medtech client wins, made strategic investments in high potential clients, and invested in market development to distribute disruptive cardiovascular products secured under exclusive distribution rights.

Hydrix is a powerful medtech innovation company. We are positively impacting on people's lives every day. I would like to thank our hard working and dedicated employees, the Board, and our long term shareholders for staying the course and being part of our exciting journey.

I look forward to keeping investors updated regarding important milestones in the months and year ahead."

-ENDS-

Authorisation: This announcement is authorised for release by the Board of Directors of Hydrix Limited.

Contact Details: For more information, please contact:

Company Enquiries:	Media Enquires:
Gavin Coote	Rod North
Executive Chairman	Managing Director, Bourse Communications
[e-mail]	[e-mail]
[phone]	[phone]

About Hydrix Limited

Hydrix Limited (ASX: HYD) is a powerful product innovation company. Hydrix purpose is to improve a billion lives. The company leverages its powerful product innovation capability across multiple growth platforms. These platforms include Hydrix Services offers design and engineering expertise to help transform client ideas into commercial products; Hydrix Ventures invests in high potential early stage medtech clients; and Hydrix Medical sells and markets disruptive cardiovascular technologies that aim to solve unmet market needs and improve patient quality of life.

Hydrix Limited	30-32 Compark Circuit		W: www.hydrix.com
ACN 060 369 048	Mulgrave VIC 3170	T+ 61 3 9550 8100	E: [e-mail]

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onlyThis 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

pr vided 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.

useProspective 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 pre entation 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 the Hydrix Group shall be responsible for or have any

ersonalliability 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.

2 | Hydrix - Commercial in confidence

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3 | Hydrix

Diversified global medtech company - 20 year history in breakthrough product development, Melbourne-based, 70 employees. Commercial business model consists of three complementary business segments:

• Services: Fee-for-service product design and engineering
  o FY22 revenues $10.3m up 40% YoY
  o FY23 outlook is for +20% revenue growth, improving gross profit margins & resource utilisation, profitability
• Ventures: selectively invest in high potential medtech clients
  o Four early stage medtech investments, book value $3.65m
  o Valuation outlook next 12-to-24 months ~5x to 10x the cash cost base of ~$2.0m
• Medical Products: Two pre-revenue stage disruptive cardiovascular products under exclusive APAC distribution rights, including
  o The Guardian, the only FDA approved implanted heart attack alert device which solves unmet market need, significant product revenue potential o Key milestones anticipated for 2HCY22

Cash on hand $1.94m (30/6/22) plus listed Options at $0.12c ($2.25m, exp 31/7/22) & $0.18c ($5.15m, exp 31/3/24)

Attractive market value entry point with key near-term milestone growth catalysts - share price $0.072c | m/cap $14.25m (15/7/22)

- Commercial in confidence

	Hydrix Services (unaudited) (refer p.17)
	• FY22 revenue $10.3m up 40% YoY, ~60 employees
	• FY22 revenue source: +50% international, +40% cardiovascular technology clients
	• +$60m sales pipeline, order book value +$12m is 2x same time last year
	• Trend revenue growth outlook for FY23 is +20%
	• Sales growth & improving margins returning business to profitability in FY23
	Hydrix Medical - Disruptive Cardiovascular Device Distribution (refer p.9-15)
only• Two products under exclusive distribution rights
	• Pre-revenue, revenue potential 2025 & beyond +$25m p.a.
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	•	Products progressing through clinical trials and regulatory approvals
	• Leadership team (3) has over 80 years cardiovascular experience
	Hydrix Ventures (refer p.18)
	• Four venture investments in Services clients, 2 have commenced sales, 2 are being developed with Hydrix
		Services and are pre-revenue
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	•	Book value $3.65m, upside potential is 5x - 10x on cash cost base of ~$2.0m
	Hydrix Limited
	• Cash on hand $1.94m (30 June 2022)
	• 12c listed options exp 31 July 2022 - $2.25m
	• 18c listed options exp March 2024 - $5.0m
	• ASX: HYD share price…2 year High $0.46c (August 2020) | Low $0.072c (July 2022)
4 | Hydrix - Commercial in confidence

Europe

44%

FY22 revenue

Employees

70

International clients

17

USA

7%

FY22 revenue

Asia Pacific

49%

FY22 revenue