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h₂o innovation® PRESS RELEASE For immediate release TSXV : HEO Growth Paris : MNEMO : ALHEO OTCQX : HEOFF H₂O Innovation Reports Q3 2021 Results With Strong Profitability and Strong Cash Flow Generation Key Financial Highlights Acquisition of the remaining 76.0 % of the issued and outstanding shares of Genesys Membrane Products , S.L. ( " GMP " ) to expand the specialty chemical products and laboratory services to the large international distributor network and to increase the commercial presence in Latin America , notably within the mining industry ; Revenue growth of 8.6 % over the same period of the previous fiscal year , reaching $ 39.2 M for the third quarter of fiscal year 2021 ; Adjusted EBITDA¹ reached $ 4.5 M , or 11.5 % of revenues , for the third quarter of fiscal year 2021 compared to $ 3.8 M , or 10.5 % of revenues , for the comparable quarter of previous fiscal year ; Net earnings amounted to $ 2.1 M for the third quarter of fiscal year 2021 , compared to a net loss of ( $ 3.1 M ) for the comparable quarter of previous fiscal year ; Strong financial position with a net debt¹ of $ 3.3 M at the end of the quarter , compared to a net debt of $ 10.5 M as at June 30 , 2020 ; and Cash flows from operating activities generated $ 10.2 M for the third quarter of fiscal year 2021 , compared to $ 0.9 M for the comparable quarter of previous fiscal year . All amounts in Canadian dollars unless otherwise stated . Quebec City , May 13 , 2021 – ( TSXV : HEO ) - H2O Innovation Inc. ( " H2O Innovation " or the " Corporation " ) announces its financial results for the third quarter of fiscal year 2021 ended March 31 , 2021 . " Once again we are extremely proud to present a strong financial performance for our Q3 results . The sustained free cash generated from our operations combined with constant margin improvement testifies to the work of the last months , even years . As we continue to build our platform of complementary water treatment technologies and services through acquisitions and innovations , we multiply the synergies between these technologies and services which simultaneously fosters an exceptional business culture full of diverse talents . The multiple synergies become our competitive advantage as they generate value for our customers and help the Corporation preserve long term business relationships , thus causing high recuring revenues . With a strong financial position showing a net debt - to - adjusted EBITDA ratio of 0.20 , we have room to invest in organic growth opportunities and to realize strategic acquisitions , and therefore achieve our 3 - year Plan . Despite the lasting COVID - 19 pandemic , our business model combined with the essential nature of the products and services offered is providing financial robustness and resiliency " , stated Frédéric Dugré , President and Chief Executive Officer of H2O Innovation . 1 These non - IFRS measures are presented as additional information and should be used in conjunction with the IFRS financial measurements presented in this press release . Definition of all non - IFRS measures and additional IFRS measures are provided at the end of this press release to give the reader a better understanding of the indicators used by management . H₂O Innovation Inc. 330 , rue Saint - Vallier Est , Suite 340 Quebec City ( Quebec ) G1K 9C5 Canada Tel .: +1 418-688-0170 Fax : +1 418-688-9259 www.h2oinnovation.com info@h2oinnovation.com