ENERGY TECHNOLOGIES LIMITED — AGM Information 2021

Nov 28, 2021

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Energy Technologies Limited (ASX:EGY)

A specialised cable & wires manufacturer supplying the high value infrastructure sector

AGM Presentation November 2021

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Important Notice & Disclaimer

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This presentation has been prepared by Energy Technologies Limited (EGY or the Company). It should not be considered as an offer or invitation to subscribe for, or purchase any shares in EGY, or as an inducement to purchase any shares in EGY. No agreement to subscribe for securities in EGY will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.

Although the Company believes that the expectations reflected in the forward looking statements included in this presentation are reasonable, none of the Company, its Directors or officers can give, or gives, any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this document will actually occur or that the assumptions on which those statements are based are exhaustive or will prove to be correct beyond the date of its making.

This presentation is not a prospectus, product disclosure document, or other offering document under Australian law or under the law of any other jurisdiction. It has been prepared for information purposes only. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of an individual investor. It is not a financial product advice and the Company is not licensed to, and does not provide, financial advice.

This presentation may contain forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of past and present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this presentation, are expected to take place. Such forward-looking statements do not guarantee of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors many of which are beyond the control of the Company, its Directors and management.

Readers are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company has no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this presentation.

Readers should make their own independent assessment of the information and take their own independent professional advice in relation to the information and any proposed action to be taken on the basis of the information. To the maximum extent permitted by law, the Company and its professional advisors and their related bodies corporate, affiliates and each of their respective directors, officers, management, employees, advisers and agents and any other person involved in the preparation of this presentation disclaim all liability and responsibility (including without limitation and liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use of or reliance on anything contained in, or omitted from, this presentation. Neither the Company nor its advisors have any responsibility or obligation to update this presentation or inform the reader of any matter arising or coming to their notice after the date of this presentation document which may affect any matter referred to in the presentation.

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EGY Corporate Overview

Key Metrics		Share Price ($)		Board of Directors
Fully paid shares on issue (m)	272.2	12 month high	0.18	Brian Jamieson	Mr. Jamieson has over 40 years’ experience in the advisory, manufacturing, resources and
Options on issue (m) Last traded price ($)	25.0 0.10	12 month low 30/6/2020	0.075 0.123	Non- Executive Chairman	technology industries in Australia and offshore. Mr. Jamieson was Chief Executive of Minter Ellison Melbourne from 2002-2005, Chief Executive Officer at KPMG Australia from 1998-2000, Managing Partner of KPMG Melbourne and Southern Regions from
Market capitalisation ($m)	27.2	31/6/2021	0.159		1993-1998 and Chairman of KPMG Melbourne from 2001- 2002. Prior to the merger of

Mr. Jamieson has over 40 years’ experience in the advisory, manufacturing, resources and technology industries in Australia and offshore. Mr. Jamieson was Chief Executive of Minter Ellison Melbourne from 2002-2005, Chief Executive Officer at KPMG Australia from 1998-2000, Managing Partner of KPMG Melbourne and Southern Regions from 1993-1998 and Chairman of KPMG Melbourne from 2001- 2002. Prior to the merger of Touche Ross & Co and Peat Marwick Hungerfords to form KPMG, Mr. Jamieson was the Managing Partner for Australia for Touche Ross & Co. He has over 30 years’ experience in providing advisory and audit services to a diverse range of public and large private companies. He is also a Fellow of the Institute of Chartered Accountants in Australia and New Zealand and a Fellow of the Australian Institute of Company Directors

Source: IRESS, Sentieo, Computershare

			Matthew DriscollBA, Grad.	Mr Driscoll has significant experience across several industries, including online
			Dip. App Fin. SF Fin., GAICD	technologies, financial services, fintech,property and resources. Over 30 years’
			Non- Executive Director	experience in capital markets, financial services and is an accomplished company director.
Top 5 Shareholders				Chair for Carbonxt Group (ASX:CG1) ,Chair for Tennant Minerals NL(ASX:TMS). Chair Smoke Alarms Holdings.
J P Morgan Nominees Australia Pty Limited Cashel Family Office	67,737,817 19,987,346	24.9% 7.3%	Ian Campbell Non-Executive Director	Mr Campbell joined Olex Cables in 1989 as Group General Manager and then as Managing Director of the Pacific Dunlop Cables Group until 1998.In 1998 Mr Campbell
Advance Cables Pty Ltd	10,782,839	3.9%		joined ASX-200 listed GUD Holdings Ltd as its Managing Director and CEO until his
Samada Street Nominees Pty Ltd	9,977,560	3.7%		retirement in mid-2013. Mr Campbell joined the BWX board in 2015 and was appointed Chairman in September
Alfred Chown (MD & Founder)	8,243,575	3.0%		2018. Mr Campbell has been a non-executive director of Mirrabooka Investments Ltd
Other shareholders (#933)	155,546,077	57.1%		since 2007. He was formerly a national councillor and Victorian Vice-President of the Australian Industry Group
Total	272,275,214	100.0%	Anthony Smith	Mr. Smith has over 30 years’ experience in finance with a variety of firms concentrating
Source: IRESS, Sentieo, Computershare			Non-Executive Director	on small to medium sized companies in regard to corporate finance, institutional
				research sales and private wealth advice. During this time, he was charged with running
				these businesses along with titles of Head of Securities and Country Director of Austock
				Group and Phillip Capital. Mr Smith currently handles the investments at Cashel Family
				Office, a Melbourne based multi family office company and is a Non-Executive Director of
				IODM Limited

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Historical Operating Results

	Energy Technologies - Profit & Loss	Energy Technologies - Profit & Loss	Energy Technologies - Profit & Loss
(A$'000, unless indicated)		FY21	FY20	Variation
Sales revenue		9,428	10,126	-7.00%	•
COS		(6,794)	(7,643)
		2,634	2,483	-6.08%
Administrative		(5,668)	(5,143)	10.21%
Finance costs		(1,594)	(1,242)	28.3%	•
D&A		(2,503)	(1,236)	102.51%	•
Operating Loss		(7,131)	(5,108)
Other Revenue		1,787	761
PBT		(5,344)	(4,377)	-21.40%	•

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Sales down YOY but strengthened in the last quarter due to sharp increase in June as a result of working cap restructuring

Finance costs to remain high in the short term

D & A higher due to decision to write down and impair multiple items

Loss lower in the second half due to accounting for R & D claim

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Balance Sheet

Energy Technologies – Balance Sheet (FY18 – 1H FY20)	Energy Technologies – Balance Sheet (FY18 – 1H FY20)	Energy Technologies – Balance Sheet (FY18 – 1H FY20)
(A$'000, unless indicated)	FY21	FY20
Assets
Cash	123	27
Trade and other Receivables	4,303	4,188	2.75%
Inventory	3,963	2,327	70.31%
Other	546	358
	8,941	6,900
PP&E	12,113	12,871
Deferred Tax	217	229
Right of Use Asset	3,156	3,876
Intangibles	6,246	4,737
Other	280	216
	22,012	21,929
Total Assets	30,953	28,830
Liabilities
Trade and other Payables	4,133	6,269	-34.07%
Debt	5,147	3,865	33.17%
Other	1,952	882
Provisions	487	846
	11,719	11,862
Debt	2,395	339
Leasing	2,772	3,395
Other	132	157
	5,299	3,891
Total Liabilities	17,018	15,753
Net Assets	13,935	13,076

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• Intangibles higher due to R&D investment

• Other liabilities includes Leasing of 923k and Staff provisions of 1.03m

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Revenue Mix and Uplift Potential

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Revenue mix by industry

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||||||
|---|---|---|---|---|
|12 Month|Target|
|Other|
|Revenue Goal|Market (Low|
|10.9%|
|Current|Run Rate|Voltage) Size|
|Made to Order|
|10.9%|Rail|$5.1m|$5.7m|$60m-$80m|
|Mining|$400k|$6m|$600m|
|~$9.6m|
|Rail|Road|$300k|$4.2m|$60m|
|55.7%|
|Average revenue|Defence|$350k|$5.7m|$60m|
|Power &|
|last 2 years|
|Energy|
|10.9%|Power & Energy|$1m|$3.8m|$50-80m|
|Defence|Made to Order|$1m|$5m|$60m|
|3.8%|
|Road|
|3.3%|Other|$1m|$2m|$400m+|
|Mining|
|4.4%|
|Total|$9.1m|$32.4m|>$1.0bn|

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Strategic Plan

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Corporate

Operational

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Management control Management Re-structure
- Improved financial Finance • - Identify efficient Control Costs
reporting systems to Board - New stance away Short term work descriptions with critical KPI’s - Centralise Automation
-reportingImproved Board from debt ($1.14m in savings) - Fast track the Medium term • compliance and - Expand company wide expenses - Automate costings Efficiencies
-governanceStrong focus on -framework of the Re-structure completion of the second factory - Expand KMP’s roles Long term governance operations -consolidate sales Incentivise and process- Automate AP and - Targeted training Structural
operational business - Replenish the with industry functions AR at the factory to job
($1.4m in savings) working cap to drive stakeholders - Use positive - Stringent controls - Automate Sales share - Complete building
COMPLETE - Removal of legacy sales - Fully automated cashflow to expand COMPLETE on current liabilities and Finance function - 2 [nd] shift introduced of second factory for
obligations - Re-structure KMP reporting systems in machines through to handle increased the Silicon Line and
UNDERWAY compensation to be to the board new factory sales further expansion
STI and LTI focused - Expand KMP’s and - Drive sales to $45m UNDERWAY - Use automation to - Reduce freight
IDENTIFIED reduce reporting lines on an annual run rate UNDERWAY drive down costings costs
- Australian
IDENTIFIED manufacturer of UNDERWAY
choice for target
industry
IDENTIFIED
NEXT STAGE
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Appendix: Key Risks

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Risk	Risk Management
Demand Risk	• The target industries are varied and demand can be affected in numerous ways, not the least Covid related, Government and
	Defence spending, Construction industry, Private infrastructure and lack of confidence in delivery and pricing.
Capacity Risk	• Access to raw materials has been restricted due to limited capital. Capacity issues are a risk to Sales as Sales are booked once the
	product has been processed and delivered. Issues with machinery would also affect the capacity of production depending on
	timing and the relevant machine
Product Risk	• Each product is manufactured to ISO AS/NZS 9001:2015 and other Federal and State Government standards and by quality
	assured by industry in the majority of its uses
Delivery Risk	• The company had previously lacked inventory, working capital and manufacturing capacity to be able to meet delivery timeframes
	in a timely manner. Delivery times are extremely important in the industry
Competition	• Bambach’s main competition in specialised cables and wires is from offshore suppliers. The Company’s offering is competitive in a
	weaker AUD rate environment and delivery time
COVID-19	• The Company has experienced a decline in orders in relation to COVID-19 through the first half of FY21.

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