Hazer Group Limited

On behalf of Hazer Group, I'd like to welcome you to this March quarter investor webinar. Today's session is in listen mode only. If you have a question at any point, please type it into the chat box and we'll address it during the Q&A at the end of the presentation. Presenting today's Hazer Groups, MD and CEO Glenn Corrie and Tom Cooligan. who will take you through the March quarterly report and provide an update on recent operational and commercial progress. I'll now hand over to Glenn and Tom to run through the presentation.

Thank you, Simon, and very good morning to everybody, and welcome to our Q3 webinar. Thanks for joining us today. As Simon said, Tom Coolican's on the call, our Chief Operating Officer. He's joining us from India, actually. where he's engaging with the KBR scale-up team, but also taking the opportunity to liaise with some potential clients and customers there. Together, we're going to present our quarterly results. We're going to give an update on our key developments across our business. I think it's fair to say we've had another really important quarter for the company. one where we've continued to execute on our strategy and build on that very important commercial momentum that we established in 2025. Perhaps go down to slide three, please. Thank you. I think most of you are familiar with our vision. Those relatively new to our story We're transforming gas, natural gas. We're transforming that into clean energy in the form of hydrogen and a critical mineral in the form of graphite. We do that with zero emissions in our process. It's one technology or process that serves two very discreet but important markets, the hydrogen market and the critical mineral, the graphite market. Our competitive advantages are strengthening. We're low cost. We're pragmatic investors. The technology or the process is scalable. I would add to that it's secure, it's local, and it integrates wonderfully into existing supply chains and facilities, and it's available to decarbonize industries. Very hard to abate industries today. If we just go down to the next slide, this is a new slide. I think it's a very nice snapshot of where our business is today. Hydrogen, as many of you know, is a major feedstock to critical industries like refining, liquid fuels, ammonia, fertilizer production. You don't create or produce fertilizer without urea. You don't produce urea without ammonia, nor ammonia without hydrogen. All of these sectors require hydrogen, and they're all experiencing fairly significant supply chain disruption at the moment. Against this backdrop, of course, Hazer is extremely well positioned to deliver a local, secure, reliable source of clean energy or clean hydrogen and critical minerals. On the left-hand side, all of the elements of our company or our technology are in place. The technology is substantially de-risked. We've invested over 15 years in developing the process. Over $130 million has been invested. It's low cost. It's scalable with various components that are proprietary of our technology and our process to meet that demand today. Hazer Graphite, as you've seen in the recent months, is an increasingly valuable co-product. And our partnerships and relationships continue to build and endorse what we're developing as a company. So really uniquely positioned corporately on the right-hand side of that slide, you'll see we're well-funded. I'll talk to that very shortly. And we've got strong support from the analyst community and Philip Pepe from Shores and Declan Bonick from Euros and Hartley. It's my view that they're two of the best analysts on the street. In terms of our agenda this morning, I'll kick off with the highlights. We'll step through then the macro, the hydrogen outlook, the graphite market outlook. Tom will We'll discuss our commercial scale-up and our go-to-market strategy. We'll then do a bit of a deep dive on our graphite monetization strategy. There's been some material developments in the last quarter, including an offtake, a big one, which is a material milestone for us. So we'll cover that in detail. We'll round out with a corporate update, some observations from Sarah Week, which I attended in March, and then cap off with the near-term catalysts and then dive into Q&A. In terms of our highlights for the quarter, I think it's fair to say we posted a strong quarter of performance. We continue to build on those very important foundations of commercialization that we've talked about. We kicked off that global marketing campaign. We're seeing encouraging early traction from the market. Importantly, Tom will talk to you shortly, that post-end quarter completion of the PDP, the process design package, that directly supports these marketing efforts but gives clients greater confidence in the scalability but also the underlying economics of a Hazer plant. Canada is advancing. Potential there for expansion. KBR has now been brought in to provide further certainty to the engineering and also the project delivery, the two things that they do best with plants and engineering and clients. It was a big quarter for graphite monetization. Former KBR markets in the signing of our first commercial large-scale LOI in steel that provides visibility on pricing and visibility on value. And then finally, pipeline conversion. It's early days. We're live on several active opportunities at the moment. Projects are progressing. We can't disclose full details yet, but what I am encouraged by is the level of engagement across Australia, internationally, in several industries with potentially significant customers. In numbers at the bottom, we ended the quarter with almost $15.5 million of liquidity. That's an extended runway through significant commercial licensing milestones that we see ahead. That was strengthened by inflows from Arena due to some commercial and economic milestones being met and that lower cash burn year on quarter on quarter, which was down 16% on the previous quarter. Diving then into the markets on slide nine, I won't go through the numbers because I know many of you are familiar with this, but the hydrogen market is a big market. It's a big problem. It's a billion tons of CO2 problem. That's the prize, of course, that's worth reiterating for Hazer. What's changed since we last spoke is that the conflict in the Middle East has is impacting the global supply of refined products, diesel, refined, other refined products, ammonia, fertilizer, other liquid fuels. So in this context, Hazer is increasingly being recognized as a provider of local, secure, reliable sources of hydrogen that directly supports the resilience of these critical supply chains. Beyond this, we're seeing growing interest in hydrogen demand for data centers, in particular in the US and North America, but also growing interest in sustainable aviation fuels where hydrogen is a major component of the feedstock stack. Geographically, we're seeing an uptick in interest from our Asian counterparties, Japan, South Korea, India, all looking to continue to shore up energy supplies from stable jurisdictions. Of course, these are big markets for steel. And then in steelmaking, the interest in decarbonisation remains continues to go flowing into these initiatives. You may have seen Stegra, one of the big European green steel developers, has recently secured around $1.5 billion of funding to complete their project, so some really important signposts coming out of the hydrogen market. It's a similar dynamic in graphite, if we move to the next slide. Graphite, of course, is a critical mineral for the energy transition. I just want to call out EVs or electric vehicle demand. It is surging at the moment as a result of, again, the energy crisis. That's going to absolutely place increasing pressure on supply chains for critical minerals like graphite, a major component of battery technology. In Australia, at least year on year, February versus February of last year, I believe the demand for EVs has doubled. So again, some really important signposts coming out of at least the critical mineral markets. This, of course, at the highest level is exacerbated by China's domination of production and processing of graphite, and that is going to continue to create supply chain vulnerabilities That concentration risk is continuing to be recognised by governments as well as industry who are actively looking to diversify away from that supply chain and secure alternative sources of supply. It's worth mentioning that one hazer facility at our design package, our base design package of 30,000 tonnes per annum, produces almost 100,000 tonnes per annum of graphite. Now, if you look at the battery market, That's 5% of the total demand for graphite that goes into batteries today. So we can be a major solution for the energy transition in terms of that local source of supply of a critical mineral. Tom, I think this is a good place to hand over to you in terms of the scale-up strategy as well as our design package, please.

Okay, thanks, Glenn. Good morning, everyone. Yeah, welcome to our briefing. I'm here in India with the KBR technology team in one of their technology centres. Arguably, this team is the best fluidised fluid solids team in the world, and really we're working through some of the technology improvements that we're making and growing the technology, especially for the scales that we're now talking about. But overall, I wanted to quickly give you a brief on where we are with KBR, building that alliance right through licensing and the KBR operations. So we're on track for commercialisation. The team is working incredibly well together and the first studies are in and we're working on those studies right now. So it's good to see the first runs on the board with KBR. So proposals are being sent out, multiple customers are requesting proposals at the moment, and we have more in-bounds coming in. So as Glenn said, it's covering quite a number of industries, so we're getting a lot of interest from the liquid fuels and sustainable aviation fuels industries. We're getting a lot of interest from steel makers and obviously that integration of the hydrogen for reduction as well as the graphite into the carbon for carbon steel. It's a real integrated product there and also from chemicals industries too. So we spent the last few days having a lot of deep dive into chemicals industry. So it's been an excellent progress for this period with KBR. The main areas that I think maybe jump to the next slide, Simon, if you could, and we'll talk a bit more about the process design package. So we did announce that the PDP is complete for clients to now come and have a look at, and actually we can now use this as the basis for developing a client or a site-specific design package. So just to sort of give you an idea about what this looks like from the inside out, the plant layout, the plant design has to be done. And so that's what we were able to sort of assess at this. We decided on a 30,000 tonne design being a midpoint between the ammonia production steam methane reformers, which we're really targeting to replace with their 11 tonnes per tonne of CO2. They go 30 to 50,000 tonnes per annum. So it's quite a nice size for a design package for us to put out in the market. So all the flow sheets of how the package and how the unit is put together, they're all part of this design package. The plant layout, the buildings, the silo, the loading system, the importing system, that's all part of this package. We look at the cost estimates and all of the major pieces of equipment have the general design drawings to the point where we can go out and actually get some costing for those components. So we do cost estimates so we can build up a real good CapEx view. By having all the process done, we can actually then walk through the operation of the facility and get a good view of what its ongoing operational costs will be, its turnaround periods and its maintenance windows. And then finally, we do an emissions assessment of the facility as well. So at this size, we make assumptions about different places in the world, what their gas is, what their energy is, what their feedstocks would be, and we have an emissions profile for this unit as well. So this then becomes what we would use to have done a pre-check before we go to a client facility in any country in the world, take their inputs and then process them through this design package so that we can create a specific bespoke process design package for every company that requires it. This is something that KBR did very well and in the slide here you can see and in their announcement, the President of Sustainable Solutions at KBR, Jay Ibrahim, commented on the value of having a PEP for this technology. So it really does progress the technology forward in terms of its deployment and commercialisation. We've also had some pretty good progress, and again, linked to KBR, which is fantastic, has come into the Canada project. So we've engaged KBR to help us really work with Fortis on growing the maturity of the engineering works, doing a really deep dive into the constructability, the cost estimates, and also the scalability of this project. So it's fantastic to see that they've actually jumped in. We see that there's going to be significant cost optimisation working with KDR and they have a modular approach to development as well. So this will really fast track that sort of early stages going through engineering design so that this project can get to FID as soon as possible. The view that we're seeing at the moment is it will actually redefine value for the project. And we should have a more material update, as we said in the announcement, coming up soon. So we just wanted to get that up now and give you an update. The project is probably in better shape than it's ever been. Over to Glenn.