Slide 1: Transition Technology for a Low Carbon Future
Synertec Corporation Limited (ASX: SOP) ‘Transition Technology for a Low Carbon Future’ ‘The only ASX-listed company focused on zero-emission remote continuous industrial-scale energy production.’
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Synertec Corporation Limited (the Company) on behalf of the Company Forward looking statements, forecasts and estimates, by their very nature, involve known and unknown risks and and its subsidiaries (the Group). are subject to uncertainty and contin
Slide 3: About Synertec
About Synertec Synertec is a technology growth company: our Technology business has significant near-term growth potential with several products nearing commercialisation; and our growing Engineering business generates cashflow Technology Engineering We design, develop and deliver Our multi-discipli
Slide 4: Integrating Technology and Engineering for 25+ years
Integrating Technology and Engineering for 25+ years At this critical juncture for the global economy, Synertec can deliver immediate solutions to help solve the challenges of energy efficiency, security and reliability that governments and commercial leaders require Technology Engineering Synertec’
Slide 5: Sustainable Business Focus
Sustainable Business Focus The global focus on carbon emissions reductions presents an historic investment opportunity in Synertec’s Technology and Engineering solutions Environment Social Governance • Developing technologies to • Working with industry to reduce • Transparency and accountability sup
Slide 6: Technologies for a World in Transition
Technologies for a World in Transition We are partnering with organisations looking to lead the charge in finding clean, cost-effective ways to execute their industrial processes while simultaneously reducing their carbon footprint. 1 2 3 Powerhouse LNG Custody Transfer Composite Dry Powder AI-contr
Slide 7: Powerhouse Technology
Powerhouse Technology Synertec Corporation Limited (ASX:SOP) | August 2022 7
Slide 8: Powerhouse – Reliable Renewable Power in Remote Locations
Powerhouse – Reliable Renewable Power in Remote Locations Cost-effectively replacing fossil fuels solves the world’s CO2 problem and Powerhouse is the technology to do just that The Challenge The Solution • Energy industry is one of the heaviest emitting sectors • Powerhouse’s breakthrough technolog
Slide 9: Powerhouse – An Intelligent Industrial Renewable Energy Solution
Powerhouse – An Intelligent Industrial Renewable Energy Solution Powerhouse delivers 24/7 carbon-free power without fossil-fuel back-up AI-controlled predictive solar array and battery power with data- driven load management system Intelligence enables the utilisation of continuous 100% renewable ba
Slide 10: The Technology
The Technology Intelligently decarbonising industry with Artificial Intelligence, sunlight and batteries AI-driven – Multi-satellite-driven big-data solar algorithms enabling accurate prediction of local solar irradiance levels to automate load management Predictive - AI-predictive control feature t
Slide 11: System Design - Overview
System Design - Overview Powerhouse is a solar PV and BESS system intelligently designed with AI-driven controls for industrial grade applications Battery Battery House 1 House 2 750 kWh 750 kWh Site Electrical AI Control System Network (existing) Site Equipment PV Array 300 kW peak Synertec Corpora
Slide 12: The ESG Value Proposition is Compelling
The ESG Value Proposition is Compelling Prototype environmental credentials proven in the field to meaningfully address climate change The Opportunity Global mining & energy companies have publicly committed to a substantial reduction in GHG emissions, working towards net zero as a matter of social
Slide 13: Market Position
Market Position Powerhouse fits a large gap in the market to satisfy critical continuous industrial applications Solar Generation Systems – Sizing Spectrum Small Scale Powerhouse Large Grid Scale POWERHOUSE <50kW 50kW to 10 MW 10 MW + • Off-the-shelf systems • Modular, rapid deployment, portable sol
Slide 14: The Market Opportunity
The Market Opportunity Synertec’s Powerhouse technology can be utilised on any remote site globally Staged development and rollout program to drive growth across multiple target markets in Australia and United States CSG exploration & Mining exploration & Agriculture Manufacturing Community Batterie
Slide 15: The Commercial Model – Australia and Beyond
The Commercial Model – Australia and Beyond Strong pre-tax cash flows over fixed long-term ‘BOOM’ agreement Construction and supply chain Roll-out strategy Revenue Model • Key component supply chain identified & • Initial orders can be supplied • Build-Own-Operate-Maintain confirmed promptly from ex
Slide 16: Powerhouse Timeline
Powerhouse Timeline Developed from decades of real field and operator experience, now a technology of its time 2022 (Future) & 2023/24 2021 2022 (Current) - Field Trial of prototype ARTIST IMPRESSSION 2012-2015 - Concept re-modelled & updated - Solar arrays deployed to Santos’ - Finalise bulk purcha
Slide 17: Santos Agreements
Santos Agreements Commercial agreements are in place with Santos to provide a ready end-customer Goods and Services Contract with Santos (ASX:STO): • Original MOU progressed as-planned to a commercial agreement in the form of a master Goods and Services Contract (‘GSC’) to streamline future orders •
Slide 18: Pathway to Commercialisation
Pathway to Commercialisation Initial rollout of Powerhouse units is to be on brownfield sites to eliminate fossil-fuel generated power Phase Estimated Status Key developments include: Completion • Successful Factory Acceptance Testing in June 2022 Concept design Q4 FY21 Complete • Successful deliver
Slide 19: Other Technologies
Other Technologies Synertec Corporation Limited (ASX:SOP) | August 2022 19
Slide 20: LNG Custody Transfer System (CTS)
LNG Custody Transfer System (CTS) High precision Eliminates fugitive Leverage to Developing measurement Synertec-installed emissions - growing demand marine-based system for the land-based competitive for LNG as a solution with fiscal transfer of systems in place advantage marine fuel GasLog LNG Cur
Slide 21: Composite Dry Powder (CDP)
Composite Dry Powder (CDP) Potential to Enhances Treatment of Wider applications convert mud into operational safety Synertec has hydrocarbon in mining tailings non-polluting high- and lowers IP/supply licence drilling mud & and sewage strength building transportation from GreenTech wastewater sludg
Slide 22: Group Financial Highlights
Group Financial Highlights Synertec Corporation Limited (ASX:SOP) | August 2022 22
Slide 23: FY22 Financial Highlights
FY22 Financial Highlights Total Revenue & Other Income ($M) & Gross Margin (%) 25.0 • FY22 Total Revenue & Other Income of $12.1 million up 20.0 11.3 2H 43% on pcp 1H 15.0 Gross margin • 4 percentage point improvement in gross margin driven by greater proportion of revenue from higher margin 10.0 6.
Slide 24: FY22 Financial Highlights (continued)
FY22 Financial Highlights (continued) Engineering Consultancy Services Revenue ($M) 10.0 9.0 • High-margin Engineering Consultancy Services Revenue of 8.0 $8.9 million up 88% on pcp 7.0 4.6 6.0 • Engineering Consultancy Services Revenue for the year 5.0 4.0 greater than previous 2 years combined 2.5
Slide 25: Group Outlook
Group Outlook Synertec Corporation Limited (ASX:SOP) | August 2022 25
Slide 26: Investment Conclusion
Investment Conclusion Technologies for a world in Powerhouse technology Underpinned by deep technical & Robust balance sheet & financial transition progressing to commercialisation management skillset performance • Three advanced technologies to • Commercial agreements with • 90 highly skilled engin
Slide 27: Corporate snapshot
Corporate snapshot Synertec Corporation Ltd Key Shareholders ASX Code ASX:SOP 7.7% Perennial Value Management Shares on issue 357,360,560 17.3% Management Share Price (as at 29 August 22) 20.0c 50.8% Northwest Nonferrous Australia Mining 11.0% Market Cap (as at 29 August 22) $71.5M SG Hiscock & Rega
Slide 28: Michael Carroll David Harris
Michael Carroll David Harris Managing Director Executive Director | CFO | Company Secretary M: +61 419 351 676 M: +61 434 408 668 E: michael.carroll@synertec.com.au E: david.harris@synertec.com.au Head Office - Ground Floor, 2-6 Railway Parade, Camberwell, VIC, 3124 Tel: +61 3 9274 3000 Perth Office
Slide 29: Appendices
Appendices Synertec Corporation Limited (ASX:SOP) | August 2022 29
Slide 30: Powerhouse Prototype Technical Fact Sheet
Powerhouse Prototype Technical Fact Sheet Advanced 300kW 1.5 MWh Performance Control System Solar Array BESS • Solar forecasting algorithms • 99.9%+ Availability • Configurable Solar Panels • Configurable Advanced Gel using satellite data • More reliable than fossil-fuel • PV Inverters Lead Acid Bat
Slide 31: FY22 Financial Highlights (continued)
FY22 Financial Highlights (continued) Revenue by Type ($M) FY18 H1 FY18 H2 FY19 H1 FY19 H2 FY20 H1 FY20 H2 FY21 H1 FY21 H2 FY22 H1 FY22 H2 100% 1.3 0.7 • Consultancy Services revenue highest ever & almost 1.5 1.3 80% 2.7 2.4 double prior year 9.7 5.5 60% 5.2 • Workforce continuing to grow to accommo
Slide 32: FY22 Financial Highlights (continued)
FY22 Financial Highlights (continued) Engineering Performance ($M) 24 Total Engineering Revenue Adjusted EBITDA - Engineering Gross margin • Ongoing shift from fixed price to consultancy revenue 22 model significantly de-risks the business as project cost 20 18 blowout risk is minimised 16 14 • Stro
Slide 33: FY22 Financial Highlights (continued)
FY22 Financial Highlights (continued) Total Cash to Net Assets ($M) & Current Ratio (x) 11.0 2.5 9.0 2.0 7.0 1.5 • No working capital debt or covenants from its bank 5.0 1.0 • Current Ratio of 2.1 times as at 30 June 2022, up from 3.0 5.0 5.8 4.1 1.6 times as at 30 June 2021 3.0 2.6 0.5 1.0 • No bad
Slide 34: FY22 Engineering Business Highlights
FY22 Engineering Business Highlights Contract Wins Team Growth New GM Engineering role & Organisation Structure • $10M+ in new • Skills and talent • GM to strengthen & grow contracts and contract expanding despite tight Synertec’s expertise & extensions awarded labour market business development dur
Slide 35: Engineering Solutions – Recurring "Blue Chip" Customer Base
Engineering Solutions – Recurring “Blue Chip” Customer Base Engineering Energy Water Product Enabler of technology development & access to markets Overview Niche multi-disciplinary engineering expertise supporting a Tier-1 blue chip customer base + Supports Synertec Group’s focus on technologies for