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h₂o innovation® PRESS RELEASE For immediate release TSXV : HEO Growth Paris : MNEMO : ALHEO OTCQX : HEOFF First Quarter Results Set the Tone for a Compelling FY2022 Key financial highlights Revenue growth of 9.7 % reaching $ 38.4 M for Q1 - FY2022 from $ 35.0 M for Q1 - FY2021 ; Adjusted EBITDA¹ reached $ 4.0 M , or 10.5 % of revenues , for Q1 - FY2022 , compared to $ 3.5 M , or 9.9 % of revenues , for Q1 - FY2021 ; Net earnings amounted to $ 0.6 M or $ 0.007 per share for Q1 - FY2022 compared to net earnings of $ 1.0 M or $ 0.013 per share for Q1 - FY2021 ; Consolidated backlog of $ 122.8 M at the end of the quarter ; and Strong financial position with a net debt¹ of $ 3.4 M. All amounts in Canadian dollars unless otherwise stated . - - Quebec City , November 10 , 2021 ( TSXV : HEO ) H2O Innovation Inc. ( " H2O Innovation " or the " Corporation " ) announces its financial results for the first quarter of fiscal year 2022 ended September 30 , 2021 . " We are starting our new fiscal year on a strong financial basis supported by sustained business drivers : growing capital equipment backlog , sales network expansion with new distributors and account managers , start - up of new O & M projects in Rhode Island and Mississippi and continuous recurrent revenues at high margins . All pieces of our business puzzle are clicking together and generates an increasing number of business synergies and operational efficiency . On top of that , our financial position remains strong with a very low level of debt , which allows us to stay opportunistic for acquisitions . I could not be more confident and prouder of our progress " , stated Frédéric Dugré , President and Chief Executive Officer of H2O Innovation . First Quarter Results With three strong and complementary business pillars , the Corporation is well balanced and not dependent on a single source of revenue . Consolidated revenues from our three business pillars , for the three - month period ended on September 30 , 2021 , increased by $ 3.4 M , or 9.7 % , to reach $ 38.4 M compared to $ 35.0 M for the comparable quarter of the previous fiscal year . Assuming a constant USD exchange rate between the periods , the consolidated revenues increase would have been 13.4 % , or $ 4.7 M. This overall increase was partially fuelled by the acquisition of Genesys Membrane Products , S.L.U. ( " GMP " ) on February 1 , 2021 , which contributed $ 2.4 M in revenues for the three - month period ended on September 30 , 2021 . 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