ADVANCED BRAKING TECHNOLOGY LTD — AGM Information 2009

Nov 1, 2009

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2[nd] November 2009

AUSTRALIAN STOCK EXCHANGE LIMITED

Electronic Lodgement

CHAIRMAN’S AND CEO’S PRESENTATIONS TO THE 2009 AGM

Please find appended a replacement copy of the Chairman’s Address and CEO’s Report to Shareholder’s given at the Company’s 2009 Annual General Meeting this morning. The appended documents replace an earlier release which was made in error. We apologize for any confusion cause by the release of the earlier drafts.

Yours faithfully,

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Ken McKinnon Company Secretary

Chairman’s address to this Annual General Meeting of Shareholders held at 10.30am Monday 2[nd] November 2009 at the Company’s offices at Unit 1, 3 McDonald Street Osborne Park Western Australia 6017.

My name is David Humann and under the practice of the Company as Chairman of the Board of Directors, I act as Chairman of the general meetings of shareholders.

I should like to warmly welcome all shareholders and thank you for your attendance. There will be an opportunity for you to ask questions and discuss the affairs of the Company with me and the other directors during and after the meeting.

I now introduce you to our Board members, Professor Malcolm Richmond, our Chief Executive Officer and Managing Director Mr Ken Johnsen and Mr David Slack, a new member of our Board who brings with him a vast and successful experience in the funds management and investment industry. We welcome David. Also to our Chief Financial Officer, Mr Ken McKinnon, who joined us during the year.

Our auditors, Moore Stephens are represented here by Mr Neil Pace. Mr Pace will be pleased to answer any questions you may have regarding the audit of our financial statements.

Key members of our staff are also present and I encourage you to meet with them after the formal proceedings are completed.

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In my Chairman’s letter included in the Annual Report I referred to the progress we have made and to the near term opportunities we have for profitable growth.

Since writing that letter in August 2009 we have continued with our product and market development activity of 2009/2010 financial year and can report that sales in the first quarter are trending in a positive direction and that we believe this can be maintained over the balance of the year. As has been reported to the ASX our cash use from operations for this first quarter has been quite a modest at $200,000 with a cash balance at September 30 at almost $1.8 million

The global financial crisis and its effect on business investment, the volume and profitability of trade and the effective freeze on bank lending has been widely discussed in all media.

Thankfully, it appears the Australian economy has remained buoyant and indeed, as confirmed by Dr Ken Henry, Secretary of the Australian Treasury Department, we stand at the threshold of an unprecedented period of prosperity. We are the direct beneficiaries of what is presently a very strong Chinese economy and growing strength in South East Asia. We should include the hoped for benefits of a new government and a fresh start in Japan and for example strong economic performance in Hong Kong, Singapore and Indonesia should benefit us.

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Importantly, the USA economy which is still the largest in the world reported 3.5% growth in the quarter last reported. Further, we had a national balance sheet of great strength when the GFC hit. This has carried us through and enabled a large programme of necessary infrastructure projects to be planned.

We are seeing large investment commitments to the oil and gas sector in Western Australia in particular, and elsewhere. Mineral resources, including gold, iron ore, copper and nickel are performing well with a consequential increase in investment. These developments should directly benefit our customers and hence the likelihood of an increase in the demand for our products.

Mine management and boards are ever vigilant as are mines inspectors about safety and there is an increasing acceptance of the fact that SIBs brakes offer positive safety solutions as well as maintenance savings. We are seeing more direct intervention by mining inspectors in them requiring high mining operating vehicles standards at sites they visit.

Ken Johnsen will discuss our Garbage Truck brake development project which is a major new initiative for the Company. Keen interest is expressed by major operators of heavy vehicles where operations necessitate a frequent stop/start driving mode.

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Brake dust emissions are recognised as a health hazard. An acceptance of our sealed and oil bath brake technology as a solution to the emission problem is an encouraging development for your Company.

We will continue to invest in the continuous improvements of our products and to develop new products, for example, the cement truck fail safe brake unit now being sold for use in underground mines.

We retained our key personnel, professional and technical staff during the banking crisis. This success was vital to preservation of the skills required to develop, manufacture and market our high quality and technically complex products on a sustainable basis. This factor is, and will always be a critical element in progressing down a very long lead time path from conception of the product to sales, and then to cash in the bank.

I congratulate all our staff and management on their energy and commitment to setting the Company on an excellent footing for future growth.

I single out our Chief Executive Officer, Ken Johnsen, for praise in his perseverance in managing all sections of the business, in creating the means to carry out the development of new products and for his work in identifying markets and customers prepared to enthusiastically endorse our products.

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Also thanks to the Board of Directors for their continuing support and positive contribution to our strategic planning and their experienced advice which has supported all manufacturing and marketing processes.

David Humann

Chairman

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Light Vehicles
Garbage Trucks
Service Trucks Concrete Trucks
Annual General Meeting
2 [nd] November 2009
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Agenda

• Chairman’s Address

• Formal Business

• CEO’s Report

• CFO’s Report

• Questions and Answers

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Slide 2
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Chairman’s Address
Mr David Humann
Chairman
Advanced Braking Technology Ltd
Slide 3
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FORMAL BUSINESS
Slide 4
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Slide 5 Proxies 41,531,756 1,925,142 0 10,771,948 28,834,666 8 41,531,756 1,496,982 0 10,771,948 29,262,826 7 41,531,756 1,496,982 9,911,848 10,771,948 19,350,978 6 41,531,756 1,496,982 14,500,000 10,771,948 14,762,826 5 41,531,756 1,101,025 341,217 10,771,948 29,317,566 4 41,531,756 1,025 85,957 10,771,948 30,672,826 3 41,531,756 1,025 85,957 10,771,948 30,672,826 2 41,531,756 1,666,285 0 10,771,948 29,093,523 1 Total Against Abstain Discretion For Resolution

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CEO’s Report
Ken Johnsen
Slide 6
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Overview of Technology Patented Sealed Integrated Braking System Single rotor enclosed in an oil filled housing. Rear brake fitted with fail-safe feature. Slide 7

• ABT’s Value Proposition

• SIBS offers:

• Reduced vehicle maintenance costs

• Reduced vehicle downtime

• Reduced brake temperature

• More reliable and consistent braking

• Fail to safe functionality

• Elimination of airborne particle emissions

• SAFETY and RELIABILITY

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Slide 8
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ABT’s Product Applications
and
GROWING !
Slide 9
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ABT’s Customers
Slide 10
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ABT’s Business Model

• Engineered in Perth

• Manufactured in Thailand (wholly owned)

• Direct sales in Australia

• Resellers in Canada and South Africa

• High value high margin products

• Development income provides contribution to reduce overheads and enables new products Slide 11

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ABT’s Thai Production Facility
ISO 9001-2000 Accredited
Slide 12
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Achievements 08/09

• Weathered GFC reasonably well

• Resisted the temptation to cut back

• Q4 had largest negative impact

• First 9 month’s Revenue and P&L close to previous period

• $1.85 million raised

• Market Capitalisation increased since last AGM from ~$5m to >$20m

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Slide 13
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Achievements 08/09

• Major advancements in Garbage Truck Program

• Met all 4 quarterly technical gateways

• Launched 4 new product application

• Agi Brake

• Nissan Patrol

• Fermel “Jeep” – Toyota Dyna

• Mount Isa office fully established

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Slide 14
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Impact of Q4 08/09
(Comparison with prior year qtr by qtr)
Last Quarter Revenue Shortfall
Revenue largely accounts for increased loss
$5,000
$4,500
$4,000 P&L
$3,500
$500
$3,000
$-
$2,500 07/08 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Revenue -$500
$2,000$1,500 08/09Revenue -$1,000 07/08 P/L08/09 P/L
$1,000 -$1,500
$500 -$2,000
$- -$2,500
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Slide 15
$1000's
$1000's
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Increase in Shareholder Value
Market Cap $22.4m
Market Cap $5.2m
Slide 16
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New Product Applications
“Agi Brake” Fermel Mini UV
Slide 17
Nissan Patrol
Toyota Dyna
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Garbage Truck Project Goals

• $4 million engineering contract to develop the proven SIBS braking technology for application on garbage trucks that:

• Has the same brake feel/stopping character as dry brakes.

• Can be retrofitted to common garbage trucks without major modifications.

• Gives extended brake service intervals and vehicle up-time.

• Provides ~ 2 year payback on up-front cost.

• Reduces brake emissions (noise & air-borne particles).

• Meets all regulatory and safety standards.

• Can be approved for use by the vehicle manufacturer.

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Slide 18
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Garbage Truck Project
Vehicle used to characterize typical use
City of Swan Garbage Truck SW 231
Slide 19
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Slide 19
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From Concept to Reality
Front
Rear
Slide 20
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First Test Truck
Slide 21
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Brake Testing
Slide 22
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Brake Testing 4 x 2
Slide 23
Improved Brake Performance
STD ABT
STD ABT
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2 [nd] Prototype Vehicle
ABT Development Mule 2
Slide 24
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6 x 4 Installation
Slide 25
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Comparative Assessments
Slide 26
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HGV12 Driver Appraisal 27th July 2009
Lindsay Aaron Lance Phil Jeff
(external) (Swan) (Swan) (Swan) (ABT)
SIBS SW231 SIBS SW231 SIBS SW231 SIBS SW231 SIBS SW231
Pedal travel 8 7 7 8 7 8 9 8 7 8
Brake judder NR 5 NR 8 10 9 10 9 8 8
Brake squeal NR 7 NR 7 10 7 10 7 9 6
Feathering to a 8 6 8 6 9 8 9 8 7 6
stop
Vehicle stability NR NR 8 7 9 9 9 9 8 6
Overall score NR NR 8.5 6 NR NR NR NR 8 6.5
NR – Not Rated Slide 27
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Garbage Truck Project Current Status

• 4 x 2 and 6 x 4 trucks operational

• Key Performance Requirements met

• Braking performance equal/better than OE

• Brake Feel considered excellent

• Manufacturability and target costing confirmed

• Design Validation Program Underway

• – On road testing

• – Bench (rig) testing Slide 28

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Garbage Truck Project Conclusion

• SIBS demonstrating in testing final project deliverables appear achievable.

• End users have confirmed there is a need

• Main task ahead is to validate low wear rates and reduced service costs

• Working toward Phase 1 completion by March 2010

• Commenced planning for Phase 2 which will be 20 trucks in a pilot production field trialSlide 29

Recent Achievements

• Strong uptake of “Agi Brakes”

• WA and Qld Mines Inspectors focusing on “inadequate truck brakes”

• Delivered evaluation brakes for Chinese explosion proof vehicle.

• Commenced push into Indonesia and PNG

• First quarter sales trending up at pre-GFC levels

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Slide 30
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Current Priorities (1)

• SALES – Strong focus on existing markets

• Australia, South Africa and North America

• – Stronger push into close neighbors • Indonesia, PNG

• – Stronger push into above ground mines • Open cut coal, mineral sands and quarries

• – Identification of growth areas • China, South America and Africa

• – Prepare foundations for Garbage truck sales Slide 31

Current Priorities (2)

• OPERATIONAL

• Contain costs/conserve cash

• Manage inventory and currency

• Further enhance customer service and support

• • DEVELOPMENT – Continue to meet Garbage Truck project deliverables

• – Plan for commencement of Phase 2 of Truck Project

• – Support roll out of expanded product range

• – Under take additional “fee for service” projects

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Slide 32
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Conclusion

• Business growth continues

• Cash position solid

• GFC highlighted business risk of all eggs in the mining market.

• Garbage truck project is allows Company to enter global and recession proof market

• Increased focus on mine safety is creating new opportunities

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Slide 33
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CFO’s Report
Ken McKinnon
Slide 34
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08/09 Full Year
08/09 07/08
$’000 $’000
Revenues from trading activities 3,524 4,392
Revenues from other activities 210 22
Total revenue 3,734 4,414
Total expenses (5,978) (5,747)
Loss before tax (2,244) (1,333)
Income tax expense / R&D rebate 298 304
Loss after Tax (1,946) (1,029)
Slide 35
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	Balance Sheet 5,442 TOTAL EQUITY (35,158) Accumulated losses 616 Other Reserves (40) Foreign Currency Reserve 40,024 Issued Capital EQUITY 5,442 NET ASSETS/(LIABILITIES) 1,429 TOTAL LIABILITIES 194 Total non-current liabilities - Deferred Income 194 Interest-bearing liabilities 1,235 Total current liabilities 585 Deferred Income 112 Provisions 107 Interest bearing liabilities 431 Trade and other Payables 6,871 TOTAL ASSETS 2,842 Total non-current assets 2,387 Intangibles 398 Property, plant and equipment 57 Trade and other Receivables 4,029 Total current assets 33 Other current assets 1,418 Inventories 589 Receivables 1,989 Cash $’000 CURRENT ASSETS 08/09	Slide 36 5,342 (33,212) 51 (120) 38,123 5,342 2,300 562 500 62 1,738 1,000 107 56 575 7,642 4,101 2,586 205 1,310 3,541 36 1,198 870 1,437 $’000 07/08

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Sales Historical Performance
ANNUAL SALES 2005 TO 2009
5,000
4,500
4,000
3,500
Other Income
3,000
Sales - Engineering and Fitting
2,500
Sales - Spares
2,000 Sales - Brakes
1,500
1,000
500
0
2005 2006 2007 2008 2009
Slide 37
$'000's
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Losses Historical Performance
ANNUAL LOSSES 2005 TO 2009
(5,000)
(4,500)
(4,000)
(3,500)
(3,000)
(2,500)
(2,000)
(1,500)
(1,000)
(500)
(0)
2005 2006 2007 2008 2009
Slide 38
$'000's
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Conclusion

• Solid cash position

• Sales trending upwards

• Increasing product diversification

• Virtually no debt

• High realisable value in inventory

• Strong foundation of recurring sales

• Well placed to service sales growth

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Slide 39
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www.advancedbraking.com
Email: info.perth@advancedbraking.com
Phone: +61 (0) 8 9273 4800
Fax: +61 (0) 8 9201 9986
Slide 40
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