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h₂o innovation PRESS RELEASE For immediate release H₂O Innovation Reports Record Fiscal Year 2021 Revenues and Profitability Key Financial Highlights Revenues reached $ 144.3 M for fiscal year 2021 , representing a $ 10.7 M growth , or 8.0 % , compared to $ 133.6 M for the previous fiscal year ; Gross profit margin before depreciation and amortization expenses represented 27.7 % of the Corporation's total revenues for fiscal year 2021 , compared to 26.9 % for the previous fiscal year ; TSXV : HEO Growth Paris : MNEMO : ALHEO OTCQX : HE OFF Net earnings of $ 3.1 M or $ 0.039 per share for fiscal year 2021 , compared to a net loss of ( $ 4.2 M ) or ( $ 0.061 ) per share for the previous fiscal year ; Adjusted net earnings¹ reached $ 6.5 M or $ 0.081 per share for this fiscal year compared to $ 5.4 M or $ 0.078 per share for the previous fiscal year ; Adjusted EBITDA¹ reached $ 14.6 M , or 10.1 % of revenues for this fiscal year compared to $ 12.5 M , or 9.4 % of revenues , for the previous fiscal year ; Strong financial position with a net debt¹ of $ 0.5 M at the end of the year , compared to a net debt of $ 10.5 M as at ] une 30 , 2020 ; Completion of two accretive acquisitions complementing our O & M services in Texas and expanding our specialty products offering and sales network ; and Q4 - FY2021 financial results impacted by foreign exchange and freight delays which postponed revenue recognition . All amounts in Canadian dollars unless otherwise stated . Quebec City , September 28 , 2021- ( TSXV : HEO ) - H₂O Innovation Inc. ( " H₂0 Innovation " or the " Corporation " ) announces its financial results for the fourth quarter and fiscal year ended June 30 , 2021 . " FY 2021 was exceptional in many ways . Not only have we delivered our best financial performance with significant profitability improvement , as seen with our adjusted EBITDA of $ 14.6 M for fiscal year 2021 , but we achieved that while dealing with an unprecedented pandemic challenging all aspects of our lives . We have had to reinvent ourselves and develop new ways to interact and lead our business . Through this all , we realized that water is truly essential and that our business model is sound , robust , and resilient . Through our different business lines , we continue to create sales synergies and customer retention . Hence , we have maintained a high - level our recurring revenues by nature , allowing us to gain financial predictability and continuously improve our balance sheet . We kept the business going without interruption in the safest possible manner , and continued to grow organically while completing two acquisitions , one to consolidate our O & M service activity in Texas , and a second one to complement our specialty chemicals and laboratory services offering , expanding our reach in Spain and Latin America . While continuing to improve our financial performance and straightening our balance sheet , we remain confident to achieve the objectives set in our triennial strategic plan and continue to complete acquisitions " , 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 in section " Non - IFRS financial measurements " 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