Quarterly Report and Appendix 4C

1 Unaudited underlying EBITDA is prior to any earn-out payments or lease arrangements associated with the acquisition of Haldon Industries

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Addressing quarterly performance SciDev Interim CEO, Seán Halpin said "It's exceptionally pleasing to deliver a record revenue and cashflow quarter which reflects the breadth and diversity of the solutions SciDev provide to our customers. Importantly, we continued to expand our client base during the quarter, securing several new contracts, which will ensure our growth momentum continues in FY23. The strength in the oil price and elevated drilling activity seen since early 2022 translated into exceptionally strong performance from our Energy Services division over the period. We continue to gain exposure to more onshore oil fields and are well positioned to take advantage of the recently improved industry conditions. Our PFAS technology, which has been in commercial operation in Australia for several years, is gaining increasing acceptance across the Australian market and we have engaged with a number of blue-chip mining and infrastructure companies to help solve PFAS issues. Our ability to improve cashflow generation across FY22 reflects our focus on ensuring our growth is profitable while delivering long lasting returns for shareholders."

Financial Performance

SciDev delivered record revenues during Q4FY22 of A$18.2m (+38% on pcp) along with record cash receipts of A$19.0m (+39% on pcp). The improved revenue performance for the quarter and an improvement in working capital delivered an operating cashflow inflow of A$2.6m for the period. Operating cashflow has improved consistently over the year reflecting the improved scale and sustainability of our business.

As forecast, the gross profit margin of 25% for the quarter was lower than Q3FY22, but up on previous quarters driven by increased proportion of revenue from speciality chemistry sales and build own operate projects.

Figure 1: Revenue by vertical (unaudited)

Operational Performance

Energy Services

SciDev continues to deliver innovative, in-house developed products, to our clients that improve their operational efficiency and reduce their wastewater footprint. SciDev currently supports over 20 oilwell completion fleets across the US oil and gas industry.

Activity and revenue levels in the June quarter were positively impacted by high oil prices. Sales increased 185% vs the Q3FY22 driven by elevated drilling activity and new customer wins. The business continues to build a greater volume of higher margin speciality chemistry sales. SciDev future sales and customer activity levels will continue to be influenced by the broader market conditions.

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Gross margin for the Energy Services business improved through a combination of a higher sales of speciality chemistry, improved logistics management and further supply chain efficiencies.

Key Q4FY22 operational and development highlights include:

• Awarded supply of SciDev's proprietary suspension polymer technology, XSlik 620, for a series of wells for a major E&P company. These works generated revenue of A$0.8m in June. Supply will continue through to December 2022
• Sales of our Catchek technology, which improves well efficiency, delivered A$3.1m for the quarter as the Company continued to attract new customers across the US shale industry.
• SciDev has secured a field trial with an existing CatChek customer to trial our High-VIS friction reducer which can reduce water usage required for well completion by up to 50%. The trial will commence in Q1FY23.
• SciDev developed a new cationic emulsion friction reducer for application in a recycled water completion fluid system. The product was successfully field trailed with a Tier 1 E&P company and an initial purchase order for the product is expected to generate up to A$2.0m in Q1 FY23.

Mining & Construction

Revenue from Mining & Construction was slightly down on prior quarter due to timing of consumption of SciDev chemistry across mine sites. Key customer activity and development work during the quarter included:

• Trial order to the value of A$2.0m received from major Nickel producer in Australia. The field trial is anticipated to last up to 3 months and revenue from the trial anticipated to be recognised in Q1FY23
• First fill executed at greenfield coal mine in Queensland with three-year contract under negotiation
• Purchase order received for consultancy services to assist with tailings management optimisation at major coal producer in Queensland
• SciDev continues to receive significant customer interest in our suspension chemistry with a number of field trials beginning in Q1FY23.

Water Treatment

During the quarter Water Services continued to expand its operations in Australia with the execution of several new contracts across the PFAS treatment and broader water treatment industries.

SciDev has delivered 12 PFAS treatment and remediation projects across Australia generating over A$9.5m in revenue in FY22. Key new contracts secured in the PFAS sector during the quarter include:

• Awarded a contract for the design, construction and operation of a permanent PFAS treatment plant for a major mining client in Western Australia with a total contract value of over A$2.0m
• In June SciDev rapidly responded to a request from a major Australian infrastructure and construction company to provide a mobile PFAS treatment plant to support construction works on site in New South Wales. The delivery of the plant is the first engagement with the customer for PFAS treatment
• A further 3 PFAS treatment plants were mobilised in the quarter to customers across New South Wales and Queensland to treat PFAS contaminated surface water prior to discharge to the environment
• The Company has received interest from parties in Europe and North America for the utilisation of our PFAS treatment technology and we continue to explore these international opportunities.

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SciDev also expanded its water treatment activity during the period with key contracts including:

• An A$1.1m purchase order by a Tier 1 mining company in Western Australia for the design, fabrication and installation of 27 custom water quality monitoring units. The water quality monitoring units will be deployed across sites to remotely monitor a range of water quality parameters. Revenue will be recognised across FY23
• SciDev was issued a variation to an existing Leachate Treatment Plant on a major infrastructure project. The variation includes a Build Own Operate (BOO) scope of works to remove suspended solids, heavy metals and nutrients from ground & surface water onsite. The variation works will run in parallel with existing O&M works onsite and will generate an additional A$1.4m in revenue through to the end of calendar 2023.

Corporate

Seán Halpin was appointed Interim CEO following the resignation of Lewis Utting.

Payments to Directors and their associates for the quarter (A$434K) includes fees paid to the Managing Director/CEO and Non-Executive Directors.

Outlook

SciDev's focus for FY23 will include:

• Ongoing focus on the health and safety of all our employees and contractors
• Leveraging the extensive business development pipeline in the water treatment sector and converting opportunities into contracts
• Establish a presence in Europe and North America with the aim of delivering full scale PFAS treatment technology within FY23
• Continue to increase sales of our speciality chemistry in the US oil and gas industry increasing not only the number of sites but also the number of solutions per site
• Target key mining clients within the existing SciDev customer base to further develop our water treatment presence and deliver an end-to-end service within the industry
• Optimise the inventory position to ensure reliability of supply to customers whilst maintaining focus on effective working capital management
• Drive a positive culture across the organisation and increase the level of integration within our business to take advantage of the strong cross sell opportunities across our client base.

Investor Webinar

Date and time: Tuesday 26 July 2022 at 2:00pm (AEST / Sydney time).

Please note that SciDev will be using the Zoom video webinar facility for the call. Participants will need to register your participation to join the call.

Please register in advance to participate:

https://us02web.zoom.us/webinar/register/WN_-cHiQqiEQq2jN4ZK9ix4Bw

Seán Halpin

Interim Chief Executive Officer

This release has been approved by the Board of Directors of SciDev Limited.

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About SciDev

SciDev is a leader in the environmental solutions market focused on water intensive industries. SciDev brings together world-class technology, chemistry and application to solve pressing operational and environmental issues for the water, oil and gas, mining and construction markets.