Announcement PDF ASX Announcement 03 OCTOBER 2022 CORPORATE PRESENTATION Parkway Corporate Limited (“Parkway” or the “Company”) (ASX: PWN) is pleased to advise that the Company will be presenting a corporate presentation as part of the upcoming Broker Briefing - Mining, Resources & Energy investor webinar. WEBINAR DETAILS Event: Broker Briefing – Mining, Resources & Energy investor webinar Date: Thursday 6 October 2022 Time: 11:40am AEDT (8:40am AWST) Presenter: Parkway Group Managing Director & CEO, Bahay Ozcakmak Topic: Building an Advanced Industrial Water Treatment Technology Company The Company invites shareholders, investors, and media to participate in this digital event by registering online via the webinar link below: https://us06web.zoom.us/webinar/register/2016518025664/WN_lKfEYQdMSWeKmMXvEaCp6w Participants will be able to submit questions to the Presenter via the panel throughout the presentation, however, we encourage shareholders and investors to send through questions via email beforehand info@brokerbriefing.com. A copy of the presentation materials to be delivered during the Broker Briefing webinar and at a range of additional investor relations related functions, is attached. The release of this announcement has been approved by Parkway’s Group Managing Director & CEO, Bahay Ozcakmak, on behalf of the board of directors of the Company. ADDITIONAL INFORMATION For further information or investor enquiries, please contact: Bahay Ozcakmak Alexander Cook General Enquiries Group Managing Director & CEO General Counsel 1300 7275929 solutions@pwnps.com ir@pwnps.com 1300 PARKWAY FORWARD-LOOKING STATEMENTS This announcement may contain certain “forward-looking statements”. The words “continue”, “expect”, “forecast”, “potential” and other similar expressions are intended to identify “forward-looking statements”. Indications of (and any guidance on) future earnings, financial position, capex requirements and performance are also “forward-looking statements”, as are statements regarding internal management estimates and assessments of market outlook. Where Parkway expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, “forward-looking statements” are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Parkway, its officers, employees, agents and advisors, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. There are usually differences between forecast and actual results, because events and actual circumstances frequently do not occur as forecast and their differences may be material. Parkway does not undertake any obligation to publicly release any revisions to any "forward-looking statements" to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under the applicable securities laws. ABOUT PARKWAY CORPORATE LIMITED Parkway Corporate Limited is an Australian cleantech company focused on developing and implementing, industrial-scale innovative water treatment solutions. Parkway is listed on the Australian Securities Exchange (ASX: PWN) and is emerging as an innovative player in water related sustainability solutions. With significant inhouse technical expertise and established partnerships, Parkway is well-placed to deliver the next generation of wastewater treatment plants, incorporating the company’s portfolio of world-class technologies. Parkway operates through three (3) core business units, comprising: • Parkway Process Solutions (PPS) – Parkway’s primary operating division and an emerging provider of industrial water treatment products, services, solutions and associated technology to customers throughout Australia. PPS has recently established commercial relationships with key water industry participants, including globally recognised OEMs; • Parkway Process Technologies (PPT) – Parkway’s technology development, acquisition, and commercialisation division. PPT owns a portfolio of industrial wastewater treatment technologies, including the patented aMES® and iBC® process technologies. PPT has global aspirations and is supported by a network of strategic partners, including global engineering company Worley; and • Parkway Ventures (PV) – holds a portfolio of project equity and royalty interests, including interests relating to Parkway’s Karinga Lakes Potash Project in the Northern Territory of Australia. Additional information regarding Parkway, including an overview of the corporate structure of Parkway and the companies in its corporate group, can be found at: www.pwnps.com/pages/about-us. SOCIAL MEDIA & EMAIL ALERTS Parkway is committed to communicating with the investment community through all available channels. Whilst the ASX announcements platform remains the most appropriate channel for market-sensitive news about Parkway, investors and other interested parties are also encouraged to: • follow Parkway on LinkedIn, Twitter, Facebook and YouTube; and • subscribe for our email alert service, Parkway News Alerts, on our website (www.pwnps.com). www.parkway-corp.com 03 OCTOBER 2022 | ASX ANNOUNCEMENT | 2 Building an advanced Industrial Water Treatment technology company 03 October 2022 Bahay Ozcakmak ASX: PWN | pwnps.com Group Managing Director & CEO Disclaimer Forward-Looking Statements Completeness and Accuracy of Information This presentation may contain forward-looking statements. The words “continue”, “expect”, “forecast”, “potential” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings, financial position, capex requirements and performance are also forward-looking statements, as are statements regarding internal management estimates and assessments of market outlook. No representation or warranty is made as to the accuracy, completeness or correctness of the information contained in this presentation. To the maximum extent permitted by law, none of Parkway, its directors, employees or agents or any other person, accept any liability for any loss arising from or in connection with this presentation including (without limitation) any liability arising from fault or negligence, or make any representations or warranties regarding, and take no responsibility for, any part of this publication and make no representation or warranty, express or implied, as to the currency, accuracy, reliability, or completeness of information in this announcement. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Parkway, its officers, employees, agents and advisors, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. There are usually differences between forecast and actual results, because events and actual circumstances frequently do not occur as forecast and their differences may be material. The Company does not undertake any obligation to release publicly any revisions to any "forward-looking statements" to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under the applicable securities laws. ASX: PWN | Corporate Presentation | 03 October 2022 No Professional Advice The information in this presentation does not take into account individual investment and financial circumstances and is not intended in any way to influence a person dealing with any securities in Parkway. This presentation does not include any financial, legal or taxation advice. Any person intending to deal in Parkway securities is recommended to obtain professional advice. Additional Information This presentation has been prepared by Parkway Corporate Limited (“Parkway” or the “Company”)(ASX: PWN) and has been released on the ASX announcement platform and is also available at the Company website: www.pwnps.com Additional information regarding the Company can also be found at the Company’s website, or by contacting the Company at: ir@pwnps.com www. pwnps.com | 2 Presentation Outline Overview Company Website This presentation is intended to provide an introduction and general overview of Parkway. Key Topics § Corporate Overview § The Problem – Extractive Industries Wastewater § Sustainability – The Challenge of Our Time § Growing Water Challenges Facing Industry § Key Addressable Markets § PPT – Proprietary Technologies from Parkway § PPT – Industrial Technology Commercialisation § PPT – Typical Business Development Cycle § Technology Application – CSG Case Study § Parkway Group Structure § PPS – Integrated Solution Provider § Building Capabilities – Generating Traction § Investment Case § Appendices ASX: PWN | Corporate Presentation | 03 October 2022 Additional information about Parkway, is available from the Investor Centre: www.pwnps.com/collections/investor-centre www. pwnps.com | 3 Corporate Overview Current Experienced Team Ordinary Shares (PWN) on issue 2,213,280,416 § Strong corporate, strategic M&A, industrial and technology experience. 12-month Trading Range $0.008 - $0.014 § Highly focused team methodically executing corporate strategy. $20 million § Board, KMP and employees are strongly aligned with shareholders. Capital Structure Market Capitalisation (at $0.009) § Details about board & management outlined in Corporate Profile. Unlisted Options ($0.020, 16 Dec 2022) 310,166,664 Unlisted Options ($0.030, 02 Feb 2023) 177,277,773 Unlisted Options ($0.019, Jul/Dec 2024) 260,931,548 Major Shareholders % Defined Strategy § To build an advanced industrial water treatment technology company. § Staged approach to generating revenue and commercialising technology. § Commercially pragmatic to ensure reasonable value capture. Holdings associated with Group MD 9.9% Lions Bay Capital (Canadian LIC) 7.6% BNP Paribas Nominees / Deutsche Börse 7.4% § Significant financial resources and demonstrated financial discipline. BNP Paribas Noms / EU & Institutional 4.3% § Accumulation of inventory (PPS) and R&D funds (PPT, grants & rebates). Top 20 46.4% § Established operations in Melbourne, Perth & Darwin, Australia. Funding $ Building Momentum Debt nil § Internal technical/commercial capabilities expanded substantially. Cash (at 30 June 2022, excl. grants) $4.1 million § Established partnerships with key industry players to align interests. Cash (at 30 Jun 2022) $4.1 million § Strong relationships with existing clients and future prospects. Well Resourced All amounts refer to Australian dollars ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 4 The Problem “ Globally significant water challenges, particularly from extractive industries. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 5 Electrification and Net Zero The electrification of transportation and heavy-industry … … is key to reducing emissions and achieving net-zero. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 6 However, Electrification Requires Minerals Electrification § Copper is critical to electrification. § A dramatic increase in copper supply is required in the next 20 – 25 years, essentially equivalent to all the copper ever mined in human history. Lithium Ion Batteries § Batteries, particularly lithium ion batteries, are a key technology, required for electrification of many mobile but energy intensive applications. Critical Minerals § Electrification, lithium-ion batteries as well as most clean energy technologies require vast quantities of critical minerals. § According to the International Energy Agency (IEA), key critical minerals, include copper, lithium, nickel, cobalt and rare earth elements. The green revolution is inextricably dependent on new mine development, as a source of these critical minerals. https://www.benchmarkminerals.com/membership/more-than-300-new-mines-requiredto-meet-battery-demand-by-2035/ ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 7 Mining Required for Supply of Critical Minerals Mining of critical minerals requires vast amounts of water … … often in regions with limited sources of water, with competing uses. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 8 Legacy of Extractive Industries – Mining Degraded environment including acid & metalliferous drainage (AMD). ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 9 Legacy of Extractive Industries – Energy Degraded environment from oil production in Northern Alberta, Canada. https://www.nationalobserver.com/2021/10/18/news/enviro-groups-want-feds-step-after-report-reveals-albertas-tailings-ponds Waste brine ponds from gas production in Queensland, Australia. https://www.abc.net.au/news/rural/2022-04-26/queensland-coal-seam-gas-industry-big-salt-problem/100990978 ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 10 Time For Action “ True sustainability is not possible, without sustainable water and wastewater management. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 11 Sustainability – The Challenge of our Time 1) We Need to Improve Sustainability The Energy-Water Nexus § In order to improve sustainability, § Large volumes of water needed for: § we all understand we need to reduce emissions. § cooling in thermal power generation. § However, it is less commonly understood that, we also, § fracture stimulation in oil & gas wells. § need to better manage our valuable water resources. 2) Electrification is a Key Lever to Improve Sustainability § Electrification underpins economic development, and also § Large amounts of energy are required for: § producing water through desalination processes. § operation of wastewater treatment plants § provides opportunities to decarbonise the global economy. 3) Electrification Requires Mining & Energy § The mining and energy industries are large users of water. 4) True Sustainability § Sustainability is about more than emissions reductions. Water for Energy Energy for Water § True sustainability can only be achieved by: § Ensuring the extraction and utilisation of water is sustainable. § Wastewater production is eliminated, or minimised, through reuse and beneficial treatment processes. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 12 Growing Water Challenges Facing Industry Industry Profile: Mining § The mining industry is a large consumer of water, an issue that is only compounded by the fact that many mines are located in arid environments where water is already scarce. § The overall demand for water is forecast to rise by as much as 500% for some metals by 2025, driven by increased applications in batteries, renewable energy and other green technologies. § However growing environmental, social & governance (ESG) constraints on metals production (particularly copper, lithium, nickel) threaten to make many projects unviable in coming years. § Water scarcity identified by Fitch as the greatest emerging risk to the metals and mining sector. § Compounding the water challenges facing the mining industry, is the wastewater storage in tailings dams which are accounting for a growing portion of total operating costs and also present risks. Implications: Society is demanding more sustainable operations, which means the mining industry will increasingly need to adopt process and wastewater treatment technologies, to reduce net water use. Industry Profile: Desalination § For every litre of freshwater output, desalination plants produce on average 1.5 litres of waste brine. § World’s ~16,000 desalination plants discharge 142 million m³/day of waste brine daily. § Brine management can represent up to 33% of a desalination plant’s operating cost. Industry Profile: Energy § The oil and gas industry faces similar wastewater treatment challenges as the desalination industry. § In many cases, these environmental liabilities will persist for decades after operations have ceased. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 13 Technology Based Solutions “ Next-Generation Technologies provide an opportunity to solve these problems, sustainably. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 14 Key Addressable Markets Key Markets Mining & Energy Industrial Wastewater Municipal & Desalination Challenges § Limited access to freshwater is driving need to recycle wastewater § Access to freshwater is becoming more difficult, costly and uncertain § Wastewater storage and discharge is increasingly being scrutinised § Major challenges impacting industry § Wastewater storage is problematic § Processing of waste is complex § Wastewater discharge is difficult § Processing of waste is expensive § Conventional treatment can be complex due to salts and organics PPS Opportunity § Parkway Process Solutions (PPS) § Projects require range of products and conventional solutions § Solid-liquid separation options including chemistry as well as membrane based approaches § Projects require range of products and conventional solutions § Removal of contaminants and organics to meet wastewater discharge requirements § Projects require range of products and conventional solutions § Removal of salts, nutrients and organics to meet wastewater discharge requirements PPT Opportunity § Projects require range of products and next-generation solutions § Projects require range of products and next-generation solutions § Projects require range of products and next-generation solutions § Parkway Process Technologies (PPT) § Opportunity to recover economic quantities of metals & reagents § Product recovery funds treatment § Opportunity to recover (and sell) and/or destroy contaminants, allowing subsequent discharge § The requirement for zero liquid discharge (ZLD) is increasing with with objective of reducing volumes Global Market Size > $25 Billion / yr > $100 Billion / yr > $25 Billion / yr § Wastewater treatment opportunities § < 5% of wastewater currently recycled § Large and growing global markets Market size estimates, in Australian dollars ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 15 PPT – Proprietary Technologies from Parkway Overview Integrated Solutions § Parkway owns a portfolio of proprietary (including patented) wastewater treatment related technologies. § Parkway offers both industry standard (conventional) and nextgeneration (PPT) technologies including integrated offerings. aMES® Technology § Integration of both conventional (grey) and proprietary (blue) technologies, deliver the most comprehensive process or wastewater treatment solution for the client. § Innovative process technology that enables the treatment of concentrated aqueous solutions to recover a range of valuable minerals, reagents and fresh water. § Significant progress in developing modularisation approaches to support technology commercialisation. § PFS study findings supported by state-of-the-art pilot plant. iBC® Technology § Innovative process technology that removes common impurities from brine streams enabling further processing. § Core technology in landmark feasibility study with QGC Shell. volume reduction 10 – 50% (no product recovery) volume reduction 50 – 100% (product & reagent recovery options) § New pilot plant reached mechanical completion in August 2022, and is ready to support larger-scale evaluations. Integration of Process Technologies Strategic, Research & Development Pipeline § Portfolio of both conventional and proprietary technologies, suitable for delivering integrated wastewater treatment solutions. § Secured additional rights to synergistic technologies. § Significant ongoing investment in R&D and commercialisation to advance range of technologies. ASX: PWN | Corporate Presentation | 03 October 2022 § Commitment to adopting best available technology or best available techniques (BAT) to meet project objectives and satisfy regulatory obligations (as required). www. pwnps.com | 16 Disruptive Industrial Technologies Technology Commercialisation § New industrial technologies take time to develop, however, when commercialised successfully, can disrupt entire industries, rapidly. Not because they are easy, but because they are hard. John F. Kennedy For details regarding Rates of Technology Adoption, refer to the Strategic Water Treatment Opportunities (Slide 33) in the Appendices. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 17 PPT – Industrial Technology Commercialisation State-of-the-Art Technology Platform § Technology platform specifically developed for commercialising innovative wastewater related process technologies, globally. § Established strategic partnerships with world-class partners, underpin the strength of the innovative technology platform. aMES® Pilot Plant iBC® Pilot Plant Laboratory Facilities Creating, Extracting & Protecting Value Additional information on Parkway website: § Innovative Business Model § Multi-layered IP Strategy § iWPaaS™ Technology Platform Challenging Wastewater Streams Innovative Technology Portfolio Proprietary Process Solution Technology Solution Validation Project Feasibility & Execution § Very large addressable markets § Limited conventional wastewater treatment options available § Portfolio of industrial process technologies includes: § aMES® § State-of-the-art process simulation and engineering and capabilities § Process integration to develop flowsheet § Large inventory of conventional and next-generation process pilot plants § Integrated process piloting capability § Technoeconomic models support early business case development § Process piloting supports feasibility study development § Internal project development and execution capabilities § Strong support from Worley, a leading global engineering company § Global partnership § Capacity to deliver large tier-1 projects § Projects require innovative approach § Clients amenable to new technologies § iBC® § tech pipeline § Deep technologies provide clear value proposition INDUSTRIAL CLIENTS ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 18 PPT – Typical Business Development Cycle Overview § Given the nature of target projects (large, complex and long-life operations), the business development cycle is similarly sophisticated with many stakeholders. § Parkway is currently advancing a pipeline of projects through key business development stages, with a specific focus on high value and strategic applications. § Indicative timelines associated with the business development cycle are outlined below. The trajectory of each project varies depending on specific factors. Revenue Revenue Generation Revenue Upfront and Recurring Revenues § Cost recovery § Client funds concept and feasibility studies § EPCM related fees § Constant focus on revenue visibility. § Supports business development § § Engineering and professional services fees Early revenues from conventional WTP (if possible) § § Professional services fees Recurring technology royalties Business Development Preliminary Pilot Studies Opportunity Evaluation Concept & Feasibility Studies Contractual Arrangements Project Execution & Operations § Inbound PPT enquiries § Exploratory discussions § Bench-scale piloting § Concept study (3 months) § Project delivery model § Project execution / EPCM § § PPS generated Partner generated § § Desktop evaluations Business case evaluation § § Proof-of-concept Precursor to major studies § § FS (9 mo.) / DFS (12 mo.) Large-scale piloting § § Project execution plan Commercial terms § § Project operations Project optimisation ONGOING PRIORITISATION Priority Applications § § Hydrometallurgical refineries (Co, Cu, Li, Ni) Oil & gas wastewater Industrial wastewater § § Mineral brine projects Desalination brine § 0 - 3 MONTHS Various Opportunities § § Large range of potential applications under ongoing review Market segment specific applications are at time evaluated with various strategic partners 3 - 4 MONTHS Various Projects 3 - 12 MONTHS Proposals Developed § Mining upstream - various § § § Mining downstream various Oil & gas - upstream § § § Industrial refineries Mineral brines § Performing landmark feasibility study for QGC Shell based on iBC® Invited to participate in range of RFT projects Range of proposals at various stages 6 - 12 MONTHS ONGOING iWPaaS™ innovative Wastewater Processing as a Solution™ § Project execution and operations phase Strategic Opportunities § In parallel with existing technologies, Parkway has secured certain rights to a range of innovative OEM related technologies (key details remain commercial-inconfidence) and is exploring similar synergistic opportunities, which have been assessed to have the potential to be highly disruptive and transformative. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 19 Technology Application Case-Study “ The QGC Shell feasibility study is a landmark milestone, highlighting the transformative potential of our technology. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 20 Addressable Market – Coal Seam Gas Case Study CSG Related Wastewater Challenges § Coal seam gas (CSG) operations in Queensland currently produce 55,000,000,000 litres of associated water, annually. § Concentrated brines derived from the treatment of associated water, contain 194,000 tonnes of dissolved salts annually, rising to 5,500,000 tonnes over the life of existing CSG projects. § The recovery and disposal of these mixed salts represent a substantial risk and liability (cost) to CSG project operations. QGC Shell - Kenya Water Treatment Plant, in Queensland, Australia. Market Opportunity § Strong regulatory environment relating to environmental authority (EA) to develop and operate CSG projects in Queensland, requires brine or salt residues to be treated to create useable products, wherever feasible. § In excess of $100 million invested by CSG industry over a decade to identify a long-term solution to treating brine and salts, no viable pathway has been identified to date. § In addition to brine processing costs, CSG operators are required to pay significant salt disposal costs, including a regulated waste levy in the order of $125 - $175 per tonne. § Additional information about the CSG related market opportunity is outlined in 07 April 2022 ASX announcement. ASX: PWN | Corporate Presentation | 03 October 2022 www. pwnps.com | 21 CSG Case Study – Feasibility Study for QGC Shell Overview § QGC (a Shell Group company) is one of Australia’s leading gas producers and has invested >$2 billion on water infrastructure. § Parkway has been collaborating with QGC for several years. § On 7 April 2022, QGC awarded Parkway a material contract, to perform a landmark feasibility study. Technology QGC Shell - Northern Water Treatment Plant, in Queensland, Australia. § The feasibility study involves Parkway performing a range of evaluations and assessing the feasibility of treating waste brine derived from QGC’s CSG water treatment plants, using Parkway’s patented iBC® technology. Client Feasibility Study Master Contractor § The feasibility study incorporates iBC® based, i) process simulation & modelling, ii) process piloting, iii) process engineering, and iv) technoeconomic analysis, related activities. § Parkway Process Solutions Pty Ltd. § Feasibility study related activities are supported by strategic partners, Worley (ASX: WOR) and Victoria University (VU), with whom Parkway has long-standing partnership relationships. § Victoria University. § Additional information about the feasibility study contract awarded by QGC (a Shell Group company), is outlined in 07 April 2022 ASX announcement. ASX: PWN | Corporate Presentation | 03 October 2022 § QGC Pty Limited, a Shell Group company. PPS – R&D Partner PPS – Global Strategic Partner § Worley. www. pwnps.com | 22 CSG Case Study – QGC Feasibility Study Progress Overview § Collaborative project team, led by Parkway engineering team. Piloting Activities § Bench Scale – extensive evaluations performed, confirming key process conditions, and the production of key products. § Pilot Scale – mechanical installation of New iBC® pilot plant completed in August, ready to support larger-scale evaluations. Feasibility Study New iBC® Pilot Plant, installed at Victoria University, in Victoria, Australia. § Existing QGC site for commercial-scale iBC® plant identified, and is being incorporated into project engineering design. § Engineering phase has commenced, supported by pilot results. Commercial § Key product produced by iBC® technology is caustic soda (50% NaOH). Price of caustic soda has doubled in the last year. § Preliminary discussions with industrial customer/s capable of taking all caustic soda production, are very encouraging. § Genuine opportunity for iBC® technology to