AVA RISK GROUP LIMITED — AGM Information 2016

Nov 22, 2016

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Future Fibre Technologies Ltd 10 Hartnett Close, Mulgrave Victoria 3170, Australia www.fftsecurity.com ABN 67 064 089 318 P +61 3 9590 3100

2016 Annual General Meeting Wednesday, 23 November 2016 CHAIRMAN’S ADDRESS – Mr Terence Winters

Ladies and gentlemen welcome to the Annual General Meeting of Future Fibre Technologies Limited.

My name is Terry Winters and it is my privilege to serve as Chairman of your Board.

Thank you for taking the time to join us here this morning. Your interest and support of Future Fibre Technologies is greatly appreciated.

As you may be aware, this is my first Annual General Meeting as FFT Chairman, having been appointed to this role last month. However, I am no stranger to FFT, having first joined the Board in 2004.

On behalf of the Board, I would like take the opportunity to thank Arlene Tansey for the contribution she made to the Company during her term as Chairman. Arlene led the Company through a successful IPO and has provided valuable advice and guidance to her fellow-directors and the FFT management team.

I would also like to welcome Chris Fergus as a Non-Executive Director to the Board and his first AGM.

By way of background, Chris is the CEO of AVA Global, and Senior Vice President Strategy and Business Development for ASX listed security product and services company MaxSec Group Limited.

Prior to this role, Chris was employed for 20 years with G4S, the world’s leading security services provider. During his time with G4S, Chris worked across several continents, most recently as Regional Managing Director, Middle East, managing a portfolio of Security & Facilities Management joint ventures, with total revenues of circa US$1 billion.

We are confident that Chris’s security industry experience, combined with his proven leadership abilities will bring additional highly relevant skills and capability to the FFT Board. The advice and networks he will bring to the management team will be highly valuable in helping scale the business internationally.

I will now make some general comments on the Company's performance and the year under review. This will be followed by a presentation from our CEO Rob Broomfield, before we come to the formal business of the meeting.

While we have made, good progress implementing the growth strategy articulated prior to the Company’s IPO, progress in financial terms during FY16 - FFT’s was unacceptably below what we set out to achieve.

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Our operating revenues were impacted by investment delays in Oil & Gas economies – regions that had contributed strongly to FFT revenues in previous periods.

In retrospect, we underestimated the timing and impact that a lower oil price would have on the critical projects we expected to commence in the second half of the financial year.

With the wisdom of hindsight, we recognise that relying on one market segment for such a large percentage of our revenues was risky. This has led us to focus on growing the other and new segments so we have a more balanced portfolio of markets to remove some of this risk and progressively smooth out our revenues and deliver improved performance predictability over time.

In addition, we continued our investment in R&D including the development of a product portfolio we believe will open new market opportunities for the company and deliver us a significant competitive advantage in those markets.

Importantly, FFT remains well positioned to implement the deferred oil and gas projects in the future and carries forward several strong sales opportunities as the economics of the oil industry improves.

In fact - in recent months - some of the Middle East projects and contracts have started to come back online - which is pleasing.

Over the coming year, we anticipate that our increased geographic reach and improved sales capabilities, combined with broadening and growing our base of opportunities in other markets, will ensure FFT’s return to profitability and the restoration of value for shareholders.

Despite the challenges of the past year, global demand for intrusion detection systems remains strong. The rise in the number of perimeter intrusions and increasing government regulation relating to the security of critical infrastructure continue to be the main drivers of demand for the perimeter security, and in particular, high-end physical intrusion detection systems like those offered by FFT. As an industry leader in fence mounted perimeter intrusion detection, FFT is well placed to deliver solutions that address the dynamically changing security threats and the growing demand from the US Utilities Sector for perimeter and network security solutions.

Before handing over to Rob, I would like thank my fellow-directors, the management team and our staff for the important contribution they have made towards FFT’s progress during this past year.

I would also like to thank our shareholders for their patience and support during a difficult period for the Company.

I would now like to invite FFT CEO Rob Broomfield to address the meeting.

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