ENERGY TECHNOLOGIES LIMITED — AGM Information 2022

Nov 28, 2022

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Energy Technologies Limited (ASX:EGY)

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

AGM Presentation November 2022

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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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Historical Operating Results

	Energy Technologies - Profit & Loss	Energy Technologies - Profit & Loss
(A$'000, unless indicated)	FY22	FY21	Variation
Sales revenue	12,519	9,428	+33%	•
COS	(11,447)	(6,794)	+68%	•
	1,072	2,634	-68%
Operating Expenses	(5,151)	(5,271)
Other	(153)	(98)
EBITDA	(4,232)	(2,735)
Finance costs	(1,069)	(1,594)	-33%
D&A	(3,710)	(2,802)
Tax	(55)	(12)
Operating Loss	(9,066)	(7,143)	-27%
Other Revenue	341	1,787
Minority Interests	(6)	15
Statutory Loss	(8,731)	(5,341)	-63%

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Operating revenue up 33% despite extremely challenging conditions

Inventory up $1.1m, investment through lockdowns in planning and scheduling systems, staff shortages leading to factory inefficiencies

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FY22 Detailed

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• The year commenced on budget but was greatly impacted by State and Eastern Seaboard lockdowns through September to November 2021. December and the first part of January was further impacted by a subsequent increase in COVID cases which resulted in further isolation of staff and issues with the logistics chain while the extended close contact isolation periods lasting until April 2022 during which the country and state were opened further exasperated the issue

• These interruptions to operations accounted for an increase in the loss provided for the year to 30 June 2022

• Staff shortages hampered the full use of a second shift by 35%

• While operationally challenging, the factory produced good operational results. Sales were up 33% on last year while copper consumption through the factory was ~434,500kg versus ~213,500kg

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FY22 Key Milestones

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• FY22 was focused on ensuring that the factory ended the year better than it started and the company is extremely pleased with the achievements

• Restructure of the planning and scheduling department

• Developed and implemented a customised planning system

• Factory 2 frame and roof is now complete

• Nick Cousins appointed Chief Operating Officer

• Alf Chown focusing on Large Project and Contract tendering

• The current order book sits at $3.64m

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Appendices

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EGY Corporate Overview

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Key Metrics	Share Price ($)	Board of Directors
Shares on issue (m) 272.2	67,753,966 24.9% 19,987,346 7.4% 10,782,839 3.96% 8,243,575 3.03% 7,885,266 2.9% 157,622,222 57.8% 272,275,214 100.0% 12 month high 0.105 12 month low 0.05	Brian Jamieson Non- Executive Chairman Mr. Jamieson has over 40 years’ experience in the advisory, manufacturing, resources and technology industries in Australia and offshore. Mr. Jamieson was Chief Executive of Minter Ellison Melbourne from 2002-2005, Chief Executive Officer at KPMG Australia from 1998-2000, Managing Partner of KPMG Melbourne and Southern Regions from 1993-1998 and Chairman of KPMG Melbourne from 2001- 2002. He has over 30 years’ experience in providing advisory and audit services to a diverse range of public and large private companies. He is also a Fellow of the Institute of Chartered Accountants in Australia and New Zealand and a Fellow of the Australian Institute of Company Directors. Mr Jamieson is currently a Non-Executive Director of Highfield Resources and IODM Limited and has held former directorships with Sigma Healthcare, Mesoblast Limited, OZ Minerals, Tatts Group Limited and Tigers Realm Coal.
Last traded price ($) 0.06
Market capitalisation ($m) 16.3
Source: IRESS
		Matthew DriscollBA, Grad. Dip. App Fin. SF Fin., GAICD Non- Executive Director 30 years’ experience in capital markets, financial services and as a Company Director. NED for Blina Minerals (ASX:BDI) and NED for BuyMyPlace.com.au (ASX:BMP). Experienced in online technologies, fintech, property and resources.
Top 5 Shareholders
		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 joined ASX-200 listed GUD Holdings Ltd as its Managing Director and CEO until his retirement in mid-2013. Mr Campbell joined the BWX board in 2015 and was appointed Chairman in September 2018. Mr Campbell has been a non-executive director of Mirrabooka Investments Ltd since 2007. He was formerly a national councillor and Victorian Vice-President of the Australian Industry Group
J P Morgan Nominees Australia Pty Limited
Cashel Family Office
Advance Cables Pty Ltd
Alfred Chown (MD & Founder)
Howe Automotive Limited
Other shareholders (#933)
		Anthony Smith Non-Executive Director Mr. Smith has over 30 years’ experience in finance with a variety of firms concentrating 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
Total

*Pro Forma Chart Source: IRESS

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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 FY22.

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