ENERGY TECHNOLOGIES LIMITED — Investor Presentation 2021

Aug 30, 2021

==> picture [842 x 120] intentionally omitted <==

Energy Technologies Limited (ASX:EGY)

==> picture [143 x 54] intentionally omitted <==

A specialised cable & wires manufacturer FY21 Results Presentation supplying the high value infrastructure sector August 2021

1

Important Notice & Disclaimer

==> picture [158 x 59] intentionally omitted <==

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.

2

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	10,058	-7.00%	•
COS		(6,794)	(7,642)
		2,634	2,416	-6.08%
Administrative		(5,668)	(5,113)	10.85%
Finance costs		(1,594)	(1,242)	28.34%	•
D&A		(2,503)	(1,236)	102.51%	•
Operating Loss		(9,765)	(5,175)
Other Revenue		2,163	760
PBT		(5,344)	(4,402)	-21.40%	•

==> picture [158 x 59] intentionally omitted <==

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

3

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

==> picture [158 x 59] intentionally omitted <==

• Intangibles higher due to R&D investment

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

4

Strategic Plan

==> picture [158 x 59] intentionally omitted <==

Corporate

Operational

==> picture [818 x 218] intentionally omitted <==

----- Start of picture text -----

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- Re-structure - Fast track the Medium term • compliance and - Expand company wide expenses - Automate costings Efficiencies
-governanceStrong focus on framework of the operational business completion of the second factory - Expand KMP’s roles Long term governance operations -consolidate sales Incentivise and process- Automate AP and - Targeted training Structural
- Removal of legacy - Replenish the with industry functions AR at the factory to job
obligations working cap to drive stakeholders - Use positive - Stringent controls - Automate Sales share - Complete building
COMPLETE sales - Fully automated cashflow to expand COMPLETE on current liabilities and Finance function - 2 [nd] shift introduced of second factory for
- 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
----- End of picture text -----

5

Why EGY?

==> picture [158 x 59] intentionally omitted <==

Specialised branded cables targeting ~38% gross margin (not commoditised) Considerable ‘know how’ & IP for new and custom product development Australian designed & manufactured (fast turnaround, high standards) using locally sourced input materials Capitalisation allows Rosedale, VIC the capacity for significant expansion & earnings growth Strategic Australian made – true downstream industry using Australian Copper Advantages Short lead times and certainty of delivery Competitive pricing Post the expansion the company is well placed for an increase in Defence spending Innovation culture identifying new market opportunities, designing and manufacturing new products

6

==> picture [842 x 120] intentionally omitted <==

Company Capability

==> picture [158 x 59] intentionally omitted <==

7

Bambach Wire and Cables

Bambach Wire and Cables manufactures low voltage industrial and specialised copper cables

Founded in 1936 and is the oldest existing Australian cable manufacturer and 100% owned by Energy Technologies since 2012

Factory in Rosedale, VIC capable of processing up to 250 tonnes of finished product per month

Significant investment to R&D leading to complete new ranges of cables for high value heavy industries

Main manufacturer (out of only two manufacturers) with braiding capability in Australia

Manufacturing inputs (eg copper) from Australian sources

==> picture [158 x 59] intentionally omitted <==

==> picture [297 x 243] intentionally omitted <==

----- Start of picture text -----

Rosedale, VIC
----- End of picture text -----

The addition of silicon cable capability would make Bambach the only end-to-end supplier of locally manufactured silicon cables

8

High Value Industry Focus

==> picture [173 x 145] intentionally omitted <==

----- Start of picture text -----

Defence
$130m in cables pa
----- End of picture text -----

==> picture [172 x 145] intentionally omitted <==

----- Start of picture text -----

Mining
$60m in cables pa
----- End of picture text -----

==> picture [172 x 145] intentionally omitted <==

----- Start of picture text -----

Road and Traffic
$40m in cables pa
----- End of picture text -----

==> picture [172 x 145] intentionally omitted <==

----- Start of picture text -----

Power / Energy
$100min cables pa
----- End of picture text -----

==> picture [173 x 145] intentionally omitted <==

----- Start of picture text -----

Rail Infrastructure
$70m in cables pa
----- End of picture text -----

==> picture [172 x 145] intentionally omitted <==

----- Start of picture text -----

Construction
$600m in cables pa
----- End of picture text -----

==> picture [158 x 59] intentionally omitted <==

Provision of specialised and customised cables and wires for large scale projects

$400m in annual demand in addressable market from target sectors plus $60m from bespoke cable projects in the short to medium term

Captures upfront value from major projects and long tail of products for maintenance

Significant pent-up and increasing demand to supply major projects

Previously limited by lack of working capital, legacy debt issues, low inventory and manufacturing limitation

Source: Internal estimates

9

Top Tier Client List

==> picture [158 x 59] intentionally omitted <==

Supplying some of the world’s largest companies. Many relationships established in last two years with opportunity to grow revenue.

Rail Rail Road & Traffic Other Defence

==> picture [66 x 30] intentionally omitted <==

==> picture [78 x 30] intentionally omitted <==

==> picture [118 x 32] intentionally omitted <==

==> picture [112 x 57] intentionally omitted <==

==> picture [120 x 22] intentionally omitted <==

==> picture [127 x 50] intentionally omitted <==

==> picture [64 x 35] intentionally omitted <==

==> picture [60 x 31] intentionally omitted <==

==> picture [68 x 28] intentionally omitted <==

==> picture [78 x 56] intentionally omitted <==

==> picture [81 x 24] intentionally omitted <==

==> picture [91 x 39] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

10

Revenue Mix and Uplift Potential

==> picture [158 x 59] intentionally omitted <==

Revenue mix by industry

==> picture [775 x 318] intentionally omitted <==

----- Start of picture text -----

||||||
|---|---|---|---|---|
|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|

----- End of picture text -----

11

Primed for New Growth

Rosedale, VIC
Factory • Large factory with high throughput
Capacity • Expansion to ~250 tonnes of copper wire cable / month + located next to rail line
Revenue • Significant capacity to increase revenue • Expansion into silicon cables to service Navy construction contracts, add plugs / harnesses, enter medium voltage product market
Expansion • Currently expanding factory footprint by 60% to house new silicon line and defence capacity
Workflow • Optimised through fit-out to maximise efficiency
Order • Order Book at levels not seen for 3 (three) years
Sales • Constricted by working cap albeit up 68% and continuing through July and August
Demand • Ability to meet demand and grow post raise • Many immediate contracts to fulfil
Fulfilment • Ability to fulfil order quickly (~4 weeks)

==> picture [158 x 59] intentionally omitted <==

Large machines can process 200-250 tonnes of copper per month

10x increased capacity and expanding, plus Government support for regional development & employment

12

Strategic Advantage

==> picture [158 x 59] intentionally omitted <==

	Specialised Cables	Asian-sourced Cables	Eu-sourced Cables
High value & margin industries
Approved for specific projects
Turnaround times for custom product	~4 weeks	~8-12 weeks	>12 weeks
Custom manufacturing capability
Knowledge & process advantage
Sales channels developed
Suitable for Australian Defence & essential industries
Suitable for ‘Brand Australia’ insourcing initiatives
Price of goods	Competitive	Competitive	Expensive
Quality of output	High	Variable	High
Manufacturing input costs	AUD linked	Relies on imports	High
Preference to local manufacturing
Reseller/importer of other/s manufactured product

13

Client Lifecycle

==> picture [55 x 56] intentionally omitted <==

==> picture [61 x 55] intentionally omitted <==

Approval & Product creation Standards

• •

• R&D and custom ISO AS/NZS production of 9001:2015 new product lines standards

• •

• Decades of Industry approval knowhow & for use capability •

• Type approval for

• • Developed >5,000 products by customised government products since organisations incorporation

==> picture [60 x 46] intentionally omitted <==

==> picture [75 x 48] intentionally omitted <==

Quote & Order & Proposal Delivery

• Significant inbound enquiry

• Receive order

• Fulfil from existing inventory or make to order

• Dedicated sales team in place to convert prospects

Customer profile:

• ~1,000 customers

• 50 major customers with repeat business

• Tenders for larger work & (low voltage) electricity industry – prefer Project sales

==> picture [158 x 59] intentionally omitted <==

==> picture [94 x 71] intentionally omitted <==

Repeat Orders

• Repeat sales to organisations that have successfully used Bambach products

• Average client tenure of several years

14

==> picture [842 x 120] intentionally omitted <==

Market Opportunity

==> picture [158 x 59] intentionally omitted <==

15

Significant Market Opportunity

==> picture [158 x 59] intentionally omitted <==

Fulfil existing demand from heavy industries

Generate new demand from adjacent markets and export

Develop new indemand products (eg silicon cable)

Market Size (2020)

==> picture [351 x 215] intentionally omitted <==

----- Start of picture text -----

Imported
Domestic
cable and
wires $3.3B production
$1.5B
$1.8B Revenue
45%
55%
(2019)
----- End of picture text -----

==> picture [144 x 41] intentionally omitted <==

Of the $3.3bn cables industry, sub-industries are estimated as:

• Low Voltage ($1-1.5bn)

• Fibre (~$1bn)

• Medium Voltage, High Voltage & Extra High Voltage (~$1bn)

Source: IBISWorld, 2020

16

Market Tailwinds

==> picture [250 x 214] intentionally omitted <==

----- Start of picture text -----

Significant infrastructure
spend over mid term
----- End of picture text -----

• Major Federal and State Govt spend planned (~$110 billion) over next decade on infrastructure

==> picture [250 x 214] intentionally omitted <==

----- Start of picture text -----

Increased focus on
defence and rail
----- End of picture text -----

• ~$200 billion in defence spend planned

• $65 billion of major rail projects, regional rail upgrades and rail crossing removals planned and underway

==> picture [158 x 59] intentionally omitted <==

==> picture [251 x 214] intentionally omitted <==

----- Start of picture text -----

Push to procure products
domestically post COVID-19
----- End of picture text -----

• Require high Australian standards

• Federal and State Govt policies to support ‘economic sovereignty’

• Remove supply chain bottlenecks

17

Australian Made Advantages

==> picture [158 x 59] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

==> picture [53 x 54] intentionally omitted <==

==> picture [66 x 66] intentionally omitted <==

==> picture [73 x 44] intentionally omitted <==

Made in Quicker Weaker AUD Satisfies local Australian Leverage postAustralia with turnaround for makes pricing procurement and Standards and COVID environment ~92% production comparable to Australian Industry Type for insourced composition of imported Government Approval manufacturing (4 weeks vs ~8-12 Australian products ‘economic provides ongoing due to Govt weeks for China materials sovereignty’ advantage requirement or and >12 weeks for initiatives supply chain Europe) security

18

==> picture [842 x 120] intentionally omitted <==

Appendices

==> picture [158 x 59] intentionally omitted <==

19

==> picture [158 x 59] intentionally omitted <==

EGY Corporate Overview

Board of Directors
Brian Jamieson	Mr. Jamieson has over 40 years’ experience in the advisory, manufacturing, resources and
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
	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.
Matthew DriscollBA, Grad.	30 years’ experience in capital markets, financial services and as a Company Director. NED
Dip. App Fin. SF Fin., GAICD	for Blina Minerals (ASX:BDI) and NED for BuyMyPlace.com.au (ASX:BMP). Experienced in
Non- Executive Director	online technologies, fintech, property and resources.
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
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
Yulin Hu	An Australian resident and leading businessman whose roles include the President of
Non-Executive Director	China City Construction Holdings Limited a construction business in China with

Key Metrics		Share Price ($)
Shares on issue (m)	172.2	12 month high	0.18
Last traded price ($)	0.14	12 month low	0.075
Market capitalisation ($m)	24.1	5 day VWAP	0.135
Net debt ($m)*	-0.8	15 day VWAP	0.135
Enterprise valuation ($m)	23.3	30 day VWAP	0.142

Source: IRESS, Sentieo

Top 5 Shareholders
J P Morgan Nominees Australia Pty Limited	40,866,142	23.7%
Cashel Family Office	12,691,949	7.4%
Advance Cables Pty Ltd	10,782,839	6.3%
Alfred Chown (MD & Founder)	8,243,575	4.8%
Howe Automotive Limited	4,989,465	2.9%
Other shareholders (#933)	94,701,244	55.0%
Total	85,730,955	100.0%

An Australian resident and leading businessman whose roles include the President of China City Construction Holdings Limited, a construction business in China with approximately 6bn RMB (A$1.1bn) turnover.

*Pro Forma Chart Source: IRESS

20

Appendix: Key Risks

==> picture [158 x 59] intentionally omitted <==

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.

21

22

==> picture [842 x 120] intentionally omitted <==

==> picture [842 x 119] intentionally omitted <==

==> picture [842 x 120] intentionally omitted <==