Hydrix Ltd...• IVF • Robotics Healthcare is a US$7.8T annual market Hydrix’scapabilities...

Hydrix | Investor Update | 1 April 2019

Hydrix LtdInvestor Update

April 2019

Development and commercialisation of technologies that enhancepeople’s health, safety and well-being


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.


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 & Industrial• Utilities• Agricultural Tech• Internet of Things• Mining (USD$16Bn annual

market by 2025)

Critical systems• Rail (AUD$100bn over next

decade)• Security• Defence (Australian Defence

budget AUD$250B over next decade)

Medical Tech• Cardiac• Neurostimulation• IVF• Robotics

Healthcare is a US$7.8T annual market

Hydrix’s capabilities include:

• Software• Electronics• Mechanical Design• Industrial Design• Regulatory Consulting• CAD• Physics• Thermal Analysis• Robotics • Rapid prototyping & 3D Printing• Transfer to Manufacture• Manufacturer Selection &

Management• Supply Chain Audit• Product Supply


A diversified fee-for-service product design & commercialisation business

1. Innovate 2. Design 3. Engineer 4. Prototype 5. Manufacture

✓ 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


A proven portfolio of projects, clients and industries


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


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)


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 operating activities in the 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)


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


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

operations 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


Growth from fee-for-design services, buying & building pioneering products and making strategic investments in customers

Develop Products InvestTake 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

Val

ue

crea

tio

n

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


Well placed for future growth

In summary, we have:

• Clear vision and strategy for growth in providing services anddeveloping our own products for fast-growing target markets

• Increasing global demand for our advanced engineering anddesign 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 AustralianR&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 criticaldomains representing skills that are in demand globally

Appendix 1

Corporate and Board overview


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


A highly experienced board & executive leadership team

Gavin Coote GAICDNon-Executive Chairman

9.7m shares

Julie King GAICDNon-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 BryantNon-Executive Director

11.4m shares

35+ years experience in workplace performance and organisational culture

Paul Wright FAICDNon-Executive Director

-

Peter Lewis AMChief 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 organisations in product 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

Appendix 2

Selected fee-for-service project case studies


Proven Track Record – Design & Manufacture of Advanced Rail Communications System

Radio Interface Unit for Victorian Digital Train Radio System

• Provides Global Navigation Satellite System (GNSS), telemetry, data & communications

• Interface to digital radios, analogue radios & PA

• Feeds wirelessly to control room over propriety network

• Fully bespoke power supply design to rail stringent requirements

• High performance Linux based system

• Design to vibration, shock, EMI, EMC & IP requirements

• Full product verification


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)

• Software development (power management & x-ray fire control)

• Software HMI Design and Development

• Human Factors and Industrial Design

• Full System and Software Integration

• Formal Verification and Validation and FDA certification Management (IEC 62304, Class 2 Medical Device, Safety Related)


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)

• Hydrix is a world leader in developing this technology

• Hydrix has completed two successful clinical trial controllers and is currently developing 4 more controllers for LVADs and TAHs. Hydrix manages the end to end development of the controllers

• Program management and systems integration

• Usability analysis and design

• Mechanical design & analysis

• Safety critical embedded software and electronics design

• Prototype build and test

• Transfer to manufacture


hydrix.com

30-32 Compark CircuitMulgrave VIC 3170Australia

ASX:HYD

Hydrix Ltd...• IVF • Robotics Healthcare is a US$7.8T annual market Hydrix’scapabilities...

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