Phoslock Environmental Technologies : FY 2021 Business Review and Strategic Outlook Presentation

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Full Year 2021 Results & Outlook

World leaders in water remediation

Disclaimer

only Statements contained in this presentation, particularly those regarding possible or assumed future performance,

use estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such statements relate to future events and expectations and therefore involve unknown risks and uncertainties. Actual results may differ materially from those expressed or implied by

ersonal these forward looking statements.

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Today's topics

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Welcome and Introduction

Financials and Key Impacts

2021 in Review

•	China	•	Research and
•	COVID Impacts		Development
•	Projects Update	•	People, Performance
•	Commercial Platforms		and Culture
•	Manufacturing /	•	ASX relisting
	Supply Chain

Outlook

• Business outlook
• Key areas of focus

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2021 Full Year Results

- Audited

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	Key financial results	12 months to	12 months to
		31 December 2021	31 December 2020
		Revenues	$6.3 million	$6.9 million
use		Gross Profit	$3.6 million	$4.1 million
	Underlying EBIT1	($7.9 million)	($7.3 million)
		NPAT2	($3.9 million)	($25.5 million)
		Net Operating Cash Flow	($6.9 million)	($12.6 million)
ersonal		Key balance sheet metrics
	Cash at bank	$23.0 million	$30.4 million
	Receivables	$2.8 million	$2.7 million
		Inventory	$3.3 million	$4.0 million
		1.	Underlying EBIT (Earnings before interest and tax) is a financial measure which is not prescribed by
			Australian Accounting Standards ('AAS') and represents the profit or loss under AAS adjusted for the add
			back of income tax, finance costs and certain non-cash income and expense items that are deemed to
			not have an ongoing affect to the underlying performance of the business. The Company believes that
			presenting Underlying EBIT provides a better understanding of its financial performance by facilitating a
			more representative comparison of financial performance between financial periods.
		2.	Net Operating Profit/(Loss) after Tax

Key impacts on

Full Year financials

Revenues continue to		Continued elevated
be impacted by		expenditure on interim
COVID-related issues		management;
and project delays		restructuring, legal and
			audit costs
Higher freight costs
	Settlement secured to
contribute to lower
gross margin		all outstanding
(57% v 60% in FY20)		receivables involving
			BHZQ in China
			Non-cash adjustment
			to lease liabilities

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Key issues impacting business in FY21

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COVID-19 pandemic
		• Travel restrictions, lockdowns, project funding restrictions,
			increased freight costs
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China reset and improved systems and governance
• Significant management resources allocated to addressing
	legacy issues
• Restructuring, comprehensive business review and new
	go-to-market strategy in China
ersonal	• Improved systems and processes and higher governance
	standards implemented across entire business; Board renewal
		Implementation of new growth strategy
		• Review and restructure of global commercial operations
		• Reviews of R&D program, manufacturing and supply chain strategy
		• People, performance and culture review

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