ADVANCED BRAKING TECHNOLOGY LTD — Interim / Quarterly Report 2021

Mar 9, 2021

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Investor Update 1H21 Half Year Results 1 © MARCH 2021 – ADVANCED BRAKING TECHNOLOGY

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Company Overview

‘Protecting your brakes from the environment, protecting the environment from your brakes’

Over 20 years experience and the original manufacturer of sealed wet brake technology

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Designed, developed, tested and manufactured in Australia Heavy duty braking solutions to the mining, defence, waste management and civil construction industries with further diversification underway

Focused on innovation, safety and environmental responsibility and reduction in downtime costs and increased operational efficiencies for our customers

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WE BELIEVE IN SAFETY – IT IS CENTRAL TO EVERYTHING WE DO Through embracing ‘Safety Principles’ in everything we do, we aspire to create prosperity for everyone that is touched by our business. We aim to produce and sell innovative braking solutions with the commitment to promoting sustainable business practices that protect people and the environment.

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Sales Revenue $4.8m 10% on pcp

Growing Blue Chip Customer Base

Gross Margin 44.7%

Substantially debt free

Cash Balance $1.48m $0.51m at June ‘20

First long term supply contract

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Market Overview

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Growing global distribution and customer network ABT is well-positioned to take innovative solutions to market and capture additional business development opportunities globally

Sales & Distribution network covering >16 countries >20 years experience and the original manufacturer of sealed brake technology Further growth planned through expansion of our Australian and international footprint

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Value proposition

The ABT product portfolio provides solutions to a number of identified problems

Problems identified

ABT solution

Customer benefits

Damage suffered to OEM braking systems operating in harsh off-road environments

• Abrasion and corrosion - contamination by dust, mud, chemicals leading to premature brake wear, poor and often unsafe braking performance

Unintended vehicle movements

• Risk to both people and equipment due to vehicle roll aways

Impact to both people and the environment

Enclosed and sealed braking systems

• Prevents contaminants from causing premature brake wear and poor braking performance

Failsafe technology

• Spring applied hydraulic release, failsafe capability

Wet brake technology

• Fluid filled braking system

• Significantly improved safety for both people and equipment

• Improved Total Cost of Ownership through reduced maintenance costs

• Increased vehicle uptime & fleet availability

• Excellent braking performance even in the harshest operating conditions

• Zero brake particulate emissions improves safety and lowers environmental impact

• Improved heat management results in reduction in brake fade and bearing overheating

• Harmful brake dust emissions

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Product and Customer Overview

Current core products

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Fully Sealed With Failsafe Capability

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Failsafe Driveline Brakes

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Failsafe Driveline Brakes
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Terra Dura ® Fully Sealed For Durability

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Current core products

Product portfolio suitable for a number of different applications

▪Maximum safety4WD brake ▪Fully enclosedwet brake design equipped withfailsafe technology ▪Exceptionalreliability and durability, with low maintenance requirement ▪Mandated for usein many underground mines to prevent vehicle runaway ▪Field proven byblue-chip customers for 20+ years ▪Zero brake dust emissions ▪Now in 4th generation	▪Maximum safety drivelinebrake ▪Contains all the safety features of Failsafe ▪Technology suitable for numerous applications from underground mining to high speed open road use ▪Mandated for usein many underground mines to prevent vehicle runaway ▪Field proven byblue-chip customers for 20+ years ▪Zero brake dust emissions	▪Exceptionally durable 4WD brake ▪Fully encloseddesign protects internal brake components from abrasion and corrosion ▪Sealed design specifically forharsh environments (mining, construction, agriculture & off-road) ▪Providessignificant costs savings ▪Zero brake dust emissions ▪Updated product launch in June 2019– greatly improved durability and reliability

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Product innovation

ABT continues to innovate to secure new market opportunities across a range of industries

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Design, prototype testing and long-term supply agreement with Thales Australia for a hill-hold brake for use on the Hawkei light protected vehicle

Design, prototype testing and deployment within Fortescue Metals Group for a dry driveline brake for use on a fully autonomous light vehicle application

Continuous improvement of original design concept

• design review undertaken

• metal cover version released to market for use within the most extreme operating environments

• International patent for improved concept design lodged

• Future innovation will focus on continuous improvement of our existing product portfolio to address the automotive megatrends of autonomous, electric and connected vehicles

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Customers and end users

ABT continues to grow its blue chip customer base

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Product, customer and industry diversification

Sales by Industry (rolling 12 months)

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Mining Civil Construction
Fleet Management Mining Services
Other
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Defence
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Waste Management
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Civil Construction
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Pipeline Opportunities

Sales pipeline and forward order book remains strong

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Failsafe

Penetration into non-ABT mine sites

Failsafe mandated mine sites creating opportunities with new vehicle applications requiring Failsafe capability

New international markets engaged – Chile, Indonesia, Zambia, New Caledonia, Botswana

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Terra Dura
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Metal cover variant ”Terra Dura X” released to market Targeting “sweet spot” opportunities within wet/abrasive operating environments Engagement with nontraditional ABT customer base (eg salt, bauxite)

New international markets engaged – Chile, Indonesia, New Caledonia

Global Mining Failsafe mandated mine sites High maintenance environments

Autonomous vehicle applications

Civil Construction

Foothold gained within tunneling projects in Australia

Other Defence: Hawkei Project Rail: Hi-Rail applications

Environmental: Brake dust emissions

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Financial Performance

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Financial performance

• Total revenue of $5.13 million, up 10.8% on previous corresponding period (pcp)

• Operating Sales increased to $4.76 million, up 10.4% on pcp with product sales margins of 44.7% broadly stable compared to pcp of 46.2%

• Net Profit result of $0.24 million (1H20: ($0.006 million))

• Positive EBITDA result of $0.39 million (1H20: $0.32 million) a 23% increase on pcp

	1H21	1H20	Change
Total Revenue	$5.13m	$4.62m	10.8%
Operating Revenue	$4.76m	$4.31m	10.4%
Gross Margin	44.7%	46.2%	(3.3%)
Total Expenses	$2.26m	$2.32m	(2.5%)
EBITDA	$0.39m	$0.32m	22.8%
Profit / (Loss) for the period	$0.24m	($0.006m)	n/a

• ABT received approximately $0.1 million in COVID-19 related financial assistance payments, provided by both the Federal and Western Australian governments

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Cash Flow performance

• Improved cash position of $1.48 million following three consecutive quarters of positive cashflow

• Retired significant proportion of its debt in 1H20 materially reducing the Company’s ongoing finance costs

• Improved sales and focus on cost management alongside receipt of the tax offset for R&D of $0.53 million allowed the business to grow the cash balance, resulting in an improved cash position of $1.48 million

($m)	1H21	1H20
Net cash from operating	1.00	0.54
Net cash from investing	(0.02)	0.65
Net cash from financing	(0.01)	(0.49)
Cash balance	1.48	0.84

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Improving financial position

-$4,000 -$2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000
		1H21

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Strategy and Outlook

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Strategy

By 2023 Generate material growth in both revenues and earnings by offering innovative braking solutions to a global customer base

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DIVERSIFY
products,
services,
customers,
industries and
INNOVATION
countries
product
development and
R&D based on
safety, the
environment and
voice of customer
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LEVERAGE our
existing product
range and
historical R&D
DISTRIBUTION
supplier
networks,
geographical
coverage and
customer support
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GROWTH
through organic
and inorganic
growth
opportunities
ORGANISATIONAL
CAPABILITY
people, values,
culture and
branding
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CAPITAL
ALLOCATION of
costs, resources,
ROI
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Deliver shareholder value

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A strong future

Recent progress to support our strategy

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Leadership team and internal capability strengthened Significantly improved financial position; increased sales and cost management Substantially debt free Cash flow and EBITDA positive and net profit result achieved Product innovation and diversification; new products released to market Customer diversification; first long term supply agreement achieved Industry diversification; sales revenue from new industries achieved Patent portfolio strengthened; international patent lodged

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Outlook for FY21

The foundations for growth are now in place

• Continue to drive:

o Innovation;

• Diversification by leveraging our current product offering to both existing and new customers across a range of industries, and;

• Organic and inorganic growth opportunities.

• Expand our Australian and international distribution footprint by partnering with local businesses within key geographic regions

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• Continue to improve financial performance

• Investigate further opportunities that will allow ABT to achieve size and significantly upscale through acquisitions, strategic partnerships or joint ventures

• Position ABT for the future to participate in the automotive megatrends of automated, electric and connected vehicles

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Appendices

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Board and Management Team

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Dagmar Parsons Non-Executive Chair

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David Slack

Non-Executive Director

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John Annand Chief Executive Officer

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Adam Levine Non-Executive Director

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Paige Exley Chief Financial Officer

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Mark Lindh Non-Executive Director

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Corporate Overview ABT is substantially debt free with a supportive register

Top 50 share registry breakdown

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Institional Investors HNW Investors Retail Investors Board and Management

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For further information, please contact:

Corporate

Mr. John Annand

Chief Executive Officer

T: +61 (0) 8 9302 1922

Investors

Stephanie Ottens

Market Eye

T: +61 (0) 434 405 400

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Disclaimer

The material contained in this presentation sets out general background information

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