PPK GROUP LIMITED — AGM Information 2024

Nov 27, 2024

ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

PPK Group Limited – ASX Code: PPK

Thursday 28 November 2024

Chair's Statement and Chief Executive Officer's Presentation

PPK Group Limited (ASX Code: PPK) is pleased to provide the following which will be presented at the Company's Annual General Meeting today:

• Chair's Statement
• CEO Presentation

This announcement has been authorised by the Board.

For further information contact:

Anne-Marie Birkill Chair of PPK Group Limited On 07 3054 4500

PPK GROUP LIMITED

ABN: 65 003 964 181

Level 13, 120 Edward St, Brisbane QLD 4000 GPO Box 754, Brisbane Qld 4001 Tel: +61 7 3054 4500 Fax: +61 7 3054 4599

Chair's Address

2024 Annual General Meeting

Good morning, I'm Anne-Marie Birkill and it is my pleasure to welcome you to my first AGM as the Chair of your company.

I begin by acknowledging the Wurundjeri and Bunurong people of the Kulin Nation as traditional custodians of the lands on which we meet and where PowerPlus Energy conducts its business.

I pay my respects to their ancestors and Elders, past and present. I acknowledge our indigenous peoples as the first innovators of these lands and express my admiration for their ingenuity.

I acknowledge my fellow directors, Glenn Molloy (who joins us today via videoconference) and Marc Fenton. Shareholders will recall that we advised mid-year that we were actively searching for a new director to join the PPK board with experience including in the energy transition sector. I am delighted to announce today that Rick Francis has been provisionally appointed to this role. Rick joins us today although his formal start date is 4th December. Rick was the Managing Director and CEO of Spark Infrastructure Group (previously ASX: SKI), then a S&P/ASX 100 entity that made long-term investments in energy infrastructure assets. During his tenure, Spark's market capitalisation grew from $1.3bn to $5.3bn. Rick's depth of experience in energy infrastructure and renewable technologies fulfills this ambition, he also brings with him over two decades of listed company experience, with a strong background in finance, governance and strategy. I am delighted to welcome Rick to the PPK Board and look forward to working with him to optimise the performance of our portfolio of companies.

I thank the PowerPlus Energy (PPE) team for allowing us to host this PPK AGM at their facility, and for providing shareholders with the opportunity to tour the PPE facility. While we do our best to share our excitement about the future of PPK based on the underlying performance of our portfolio of companies in the energy storage, armour protection and nanomaterials sectors; no amount of written correspondence replaces seeing their operations in person. I know you will leave PPE today enthused about the work that they are doing to support the transition to renewables and confident of their ability to continue to capture market share in the energy storage sector.

PPK continues to refine its mandate and develop a plan to pivot to a new position in the market. This process has necessarily included a reconciliation of our assets and a redefinition of our business model.

Our investment mandate, based on the opportunities we see in the market, the performance of our existing portfolio, and the experience the PPK team has amassed over the last several decades is to invest in innovative, growth stage companies, with global market opportunities, where our state-of-the-art Australian facilities deliver sovereign manufacturing capability.

PPK GROUP LIMITED

ABN: 65 003 964 181

Level 13, 120 Edward St, Brisbane QLD 4000 GPO Box 754, Brisbane Qld 4001 Tel: +61 7 3054 4500 Fax: +61 7 3054 4599 Since we released our 2024 Annual Report in August, we have continued to execute on our plans to reposition PPK. Both the divestment of AMAG and the deconsolidation of LIS, the latter returning $5.19M in fully franked dividends to PPK shareholders via an in specie distribution of LIS shares, are consistent with this objective.

We have also continued to apply the skills and resources of our board and our talented executive leadership team to support the growth of our portfolio of companies. The PPK leadership team's collective experience in investment, manufacturing, business growth, finance, governance and legal across sectors including plastics, agriculture, mining, technology, healthcare and enterprise software is a significant resource accessed by PPK portfolio companies to support them in their growth aspirations. I am exceptionally proud of the work this team does to support the PPK portfolio, and of their laser like focus on delivering shareholder value.

Current examples of assets that are well aligned with our future mandate include Li-S Energy, Craig International Ballistics and PowerPlus Energy who are performing well and progressing towards their growth targets. As noted in our Annual Report, Craig International Ballistics has been the clear stand-out performer in the last 12 months. While at a much earlier stage, our nanomaterials companies are important to the success of LiS but broader adoption of these proprietary materials is a long game with considerable risk.

We feel confident that our focus on investment in growth stage companies participating in the transition to renewable energy, providing armour protection and applying proprietary nanomaterials to solve the challenges of industry is well aligned with our investment mandate and the skills and experience of our executive leadership team.

Looking to the future, we are focused on continuing to strengthen the performance of the existing portfolio of investments while looking for new opportunities to expand PPK's footprint in energy storage. This may include inorganic growth opportunities for PowerPlus Energy and expansion of the portfolio.

We are also committed to improving the frequency and quality of shareholder communications and welcome your feedback on how we can improve our engagement with you. Marc and I recently engaged face-to-face with some shareholders in Melbourne and Sydney and it is clear that understanding the portfolio performance today can be difficult as the information is spread across various social media platforms and news releases.

In closing, thank you once again for your support. I'll now hand over to Managing Director Marc Fenton for a more detailed portfolio update before we move to the more formal part of the meeting.

PRESENTATION BY THE CHIEF EXECUTIVE OFFICER

Thursday, 28 November 2024

WE INVEST CAPITAL AND EXPERTISE IN HIGH POTENTIAL OPPORTUNITIES WITH A CURRENT FOCUS ON ENERGY STORAGE, ARMOUR PROTECTION AND NANOMATERIALS

ENERGY STORAGE		ARMOURPROTECTION	NANOMATERIALS

Li-S Energy (ASX:LIS)is commercialisingpatented lithium sulfurand lithium metal cellbattery technology	Supplies Australianmanufactured modularbattery storagesolutions utilising lithiumferro phosphate celltechnology	Leading Australian manufacturer ofballistic protection solutions whichprovide both personal protection andplatform protection across aircraft,vessels, and vehicles	Developing efficientmanufacturingprocesses to supplywhite graphene for arange of marketapplications	Developing efficientprocesses tomanufacture BNNT for arange of marketapplications

OUR GOAL IS TO GROW VALUE AND, WHERE APPROPRIATE, EXIT THE INVESTMENT

PPK Group Financial Reporting Structure post Li-S deconsolidation

PPK GROUP Subsidiaries

PPK includes 100% of operating results, assets and liabilities of:

51%*

51%

51%

39%

39%

PPK GROUP Associates

Includes PPK % share of associate profit/loss:

PPK ownership PPK ownership

* Pathway to 75%

INVESTMENT UPDATES

NANOMATERIALS JOURNEY TO MARKET

* Timing and volume dependent upon requirements, validate results, and customer go to market approach and are subject to change.

• Continued focus on developing efficient, high quality manufacturing processes and regulatory processes (e.g. toxicity testing)
• Moving applications through the funnel, but even where there is market pull the process is slow and iterative in nature
• Lack of BNNT market pull despite reduced cost; BNNT-X lab scale development
• No known volume sales of BNNT through publicly available information, distributor or prospect feedback
• No short-term material revenue

From pilot line to scaled up production line with a clear market focus

• Capability to produce 20kg per shift of white graphene, due to process optimisation, which is far greater than the forecast 2kg per shift
• Further process optimisation feasible but focus now on functionalisation at scale

GROWING IN SCALE

• Improve profitability by implementing operating efficiencies and achieving revenue growth
• PPE installations deliver benefits beyond simply storing energy
• Optimise opportunities from engagement with the National Battery Strategy and Battery Breakthrough Initiative
• Increased engagement with sister company, Li-S Energy related to engineering, battery testing and market knowledge

QR code to the youtube Willows Pastoral case study

Delivered off-grid innovation for RUMI on Louth Island

https://rumionlouth.com.au/

• Ecotourism use case
• Early engagement and collaborative design
• Modular design allows for future expansion

QR code to the youtube RUMI case study

• Make decisions for optimal performance based on solar input, battery charge, and energy demand, or in cases of poor weather events that affect solar production, the diesel backup

Red Plateau Organic - off grid avocado farming

QR code to the youtube case study

Strong brand recognition

• All Energy 2024 stand generated over 150 sales leads
• "Voice of customer" feedback loop on product requirements and market insights
• Strong social media presence of installation use cases and product updates

https://www.linkedin.com/company/ powerplus-energy/

Increased cadence of new product

Differentiation through innovation for the customer, not price

Batteries

• New large capacity modular battery (Eco4847P) in market
• New battery in prototype for telecoms lead-acid replacement
• Certification under way to enable battery sales into north and south America

Battery Energy Storage Systems (BESS) –

• Unique portfolio of indoor and outdoor installation
• Products tailored for key sectors such as agriculture, utilities and mining
• Other products under investigation
  • Stackable, low-cost battery for residential market
  • Swappable light-weight battery for security applications
  • High voltage battery for containerised storage

Key Takeaways

• Strong cash position $24.8M in cash and short term investments at 30 June 2024
• Clear strategy focused target markets, highly differentiated technology and strategy to scale
• Phase 3 successfully commissioned under budget
• Cells being produced 10Ah and 20Ah cells under test – industry leading Li-S energy density > 450Wh/kg.
• Intelligent battery management system (BMS) prototype more rapidly integrates packs into partner products
• First product integration underway integrating Li-S cells and packs into the VTOL "Dawn-'til-Dusk" UAV – awarded $1.35M Government grant
• Strong and growing partner pipeline - particularly in the drone and security markets
• Building critical sovereign capability – aligned with National Battery Strategy objectives

Li-S is delivering on the critical factors that strategic partners seek

• Highest energy density possible

• Sufficient power for application

• Sufficient cycle life for application

• Safety benefits and standards adherence

• Produce reliable high-quality cells in volume

• Prove automated manufacturing that can scale

• Deliver industry standard performance testing

• A battery management system (BMS) & pack

• A team to assist with pack design and integration

• Show a credible path to scale cell production over time as demand grows

• Ensure manufacturing processes are well understood & risks are mitigated to facilitate expedited scaling as needed.

Nail Penetration Safety Test

Video showing nail penetration on Li-S Energy 2.5Ah multi-layer GEN3 lithium sulfur cell, alongside a comparable lithium-ion cell from an internationally recognised manufacturer (2.5Ah 21700 25R cylindrical LCO cell)

Use this QR code or click here to see the video.

Successful uncrewed aerial vehicle test flight

GEN3 Lithium sulfur cells built on Phase 3 line

12 cell 6S2P battery pack – 11.4V 20Ah

Scan or Click to watch on YouTube

Going Forward

LIS key focus areas over the next two years are:

• Developing a path to core revenue
• Acquiring additional funding to support core activities
• Strong partnerships that lead to conditional offtake agreements
• A clear pathway to scale

STRONG GROWTH

• FY24 delivered 66% revenue growth YoY
• Continued revenue growth forecast for FY25 Proudly manufacturing in Australia delivering sovereign capability
• Servicing defence, police and corrective services
• Clients in Australia and Asia
• 25 years in business
• Over 40 employees

Strategic in-house capability development enables future growth

• Strong focus on research and development
• Recent appointment of Chief Technology Officer
• Shortened product development timeframes with new inhouse testing laboratory
• New manufacturing processes, with improved material consolidation achieved from new autoclave
• Continued investment in enabling technologies with the recent installation and commissioning of new state-of-the-art hydraulic press equipment

Protection use cases

Our delivery focused PPK team will build and support a portfolio of innovative, growth stage companies with Australian sovereign manufacturing capabilities, with the potential for global expansion

• Explore opportunities to expand our footprint in the energy storage sector
• Progress plans to monetise existing assets delivering returns to

shareholders

• Strengthen our Board with the appointment of a new Director with strong sectoral experience
• Improve shareholder engagement