Announcement PDF ASX Announcement 31st July 2024 Energy Technologies Limited 4Q FY2024 Quarterly Activities Report and Appendix 4C Key highlights:  Signed first Wholesale Distribution Agreement with Gantner Instruments Environment Solutions GMBH;  Further Wholesale Distribution Agreements have been identified and are currently under negotiation; and  Successful completion of a capital raising of $3 million by way of a share placement. Energy Technologies Limited (ASX: EGY or “the Company”), a 100% owner of Bambach Wires and Cables Pty Ltd (Bambach) which manufactures and sells low voltage copper insulated cables and energy solutions for the renewable energy industry, is pleased to release its Quarterly Activities Report and Appendix 4C Quarterly Cash Flow Report for the period ended June 2024 (“4Q, FY2024”). During the quarter, Energy Technologies Limited recorded cash receipts of A$2.7m. As previously guided, we experienced a decline in cash receipts. The primary factor contributing to this decline was the company's change in business planning. The business going forward is focusing on maintaining safe manufacturing margins supported by its focus on the renewable energy sector and purchased product to sell into previously manufactured product clients. The last quarter saw a shift in capital employed to re-position the factory while investing in the lateral business opportunities. Despite these changes, it is important to note that our core business fundamentals remain strong. We continue to see promising opportunities in key markets, and our customer relationships remain robust. Looking ahead, we are implementing targeted initiatives to bolster our financial resilience and operational efficiency. By refining our approach and aligning our sales efforts, we are confident in our ability to navigate these challenges and emerge stronger. Moving forward, our renewed focus will be on leveraging the strengths of our manufacturing division to optimize margins. Additionally, we are implementing our strategic decision to integrate Gantner products into our new renewables division. This initiative aims not only to capitalize on emerging market trends but also to diversify our revenue streams effectively. I am pleased to report that these strategic shifts are already showing promise as disclosed on 22 July 2024 – EGY Renewable Update. We have a robust pipeline of potential clients in various stages of engagement at targeted margins, indicating a positive trajectory for the upcoming year. This gives us confidence that our new business strategy is beginning to yield results. As we look ahead to the coming financial year, we are optimistic about the opportunities that lie ahead. By aligning our efforts with these strategic imperatives, we are poised for sustained growth and a move to profitability. Figure 1: EGY Quarterly Cash Receipts (A$’000) 4411 4151 3127 4758 4390 4099 40854211 3733 34433306 27772790 2845 2672 1817 Q1 Q2 Q3 F Y21 F Y22 F Y23 Q4 F Y 24 ASX Listing Rule 4.7C.3 In accordance with ASX Listing Rule 4.7C, payments made to related parties included in item 6.1 of the Appendix 4C incorporate director’s fees and salary. EGY paid a total of $54,000 in Director’s Fees and Salaries to the related parties in this current quarter. There were no substantive business activities during the quarter. – END – About Energy Technologies Energy Technologies Limited (ABN 38 002 679 469) has a 100% ownership of Bambach Wires and Cables Pty Ltd, a manufacturer of low voltage copper insulated cables and energy solutions for the renewable energy industry. Learn more about Energy Technologies at website www.energytechnologies.com.au. For more information, please contact: General enquiries Corporate Communications Mr. Gregory Knoke Company Secretary greg.knoke@energytechnologies.com.au This announcement is authorised by Energy Technologies Limited’s Board of Directors Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity ENERGY TECHNOLOGIES LIMITED ABN Quarter ended (“current quarter”) 38 002 679 469 30th June 2024 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Current quarter $A’000 Year to date (12 months) $A’000 2,672 15,133 (58) (122) (3,541) (14,829) (c) advertising and marketing (16) (53) (d) leased assets (7) (24) (1,066) (4,008) (472) (1,724) (a) research and development (b) product manufacturing and operating costs (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) - - 1.4 Interest received - 1 1.5 Interest and other costs of finance paid (237) (1,621) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives 7 30 1.8 Other (restructure) - - 1.9 Net cash from / (used in) operating activities (2,718) (7,217) 2. Cash flows from investing activities 2.1 Payments to acquire or for: - - (9) (93) - - (a) entities (b) businesses (c) property, plant and equipment (d) investments Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (12 months) $A’000 (e) intellectual property - - (f) - - (b) businesses - - (c) property, plant and equipment 1 34 (d) investments - - (e) intellectual property - - (f) - - other non-current assets Proceeds from disposal of: (a) entities other non-current assets 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Government Grant - - 2.6 Net cash from / (used in) investing activities (8) (59) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 2,954 2,954 Proceeds from issue of convertible debt securities - 6,812 Repayment from issue of convertible debt securities (50) (50) Transaction costs related to issues of equity securities or convertible debt securities (138) (138) 3.5 Proceeds from borrowings 603 918 3.6 Repayment of borrowings (621) (3,202) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Proceeds from exercise of options - - 3.10 Net cash from / (used in) financing activities 2,748 7,294 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 45 49 (2,718) (7,217) 3.2 3.3 3.4 4.2 Net cash from / (used in) operating activities (item 1.9 above) Consolidated statement of cash flows 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 4.6 5. Current quarter $A’000 Year to date (12 months) $A’000 (8) (59) 2,748 7,294 Effect of movement in exchange rates on cash held - - Cash and cash equivalents at end of period 67 67 Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 67 45 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 67 45 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 54 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Current quarter $A'000 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. 6.1 $29K Director’s Fee and $25 K Salary 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8,100 4,066 - - 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (please specify) 13,092 13,092 7.4 Total financing facilities 21,192 17,158 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 4,034 7.1: Secured Debtor Finance Facility - lender Cash Flow Finance Pty Ltd trading as Earlypay. Interest is charged on the facility at rate of the base rate, currently 12.85% less margin rate of 1.85%. Balance drawn at end of quarter $1,358,047. No maturity date. 7.1 Secured Trade Finance Facility - lender Cash Flow Finance Pty Ltd trading as Earlypay. Term Charges 5.85% per 120 days. Balance drawn at end of quarter $2,708,095. No maturity date. 7.3 Secured Equipment Finance loan with balance outstanding at end of quarter $1,405,623. Interest rate 13.81% per annum and Lender Grow Finance Pty Ltd. Matures August 2027. 7.3: Secured Equipment Finance loan with balance outstanding at the end of the quarter $134,617. Interest rate 15.80% per annum and Lender Procuret. Matures 5 March 2026. 7.3 Secured loan from director of subsidiary Bambach Wires and Cables Pty Ltd for $190,000. Interest rate 10.00% per annum. Maturity Date is as agreed by the parties. 7.3 Convertible Notes issued of $11,361,500 to noteholders. These notes have a face value of $1.00, attract a coupon rate of 10% and are convertible at $0.08. Of these notes $600,000 matures in October 2024, $1,000,000 matures in February 2025, and $3,000,000 matures in October 2025. These notes amount to $4,600,000 and interest is payable monthly. The remaining notes amount to $6,761,500, which was received from August 2023 to March 2024, mature twenty-four months from the issue date or such later date as is agreed in writing between the parties. Interest is payable on maturity. All notes can be paid back by the company at their discretion. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) 8.2 Cash and cash equivalents at quarter end (item 4.6) 8.3 Unused finance facilities available at quarter end (item 7.5) 4,034 8.4 Total available funding (item 8.2 + item 8.3) 4,101 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 1.51 (2,718) 67 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: No. The company expects to reduce net cash outflow from operating activities, from the current reported net cash outflow, after taking into account the following: 8.6.2 The Factory’s ability to further increase capacity at the factory; The order book continues around all-time highs; The margin is higher than historical levels; The prospect of larger renewable contracts; This quarter’s increase in expenses due to investment in materials which have resulted in Work In Progress increasing; and The company is comfortable with the current level of facilities and the ability to raise capital or debt on a need’s basis. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: Yes. The company has a corporate mandate with Shaw and Partners to manage its capital needs pursuant to the growth of the business, specifically in the renewable industry. It raised $3m during the quarter by way of a share placement. It has the ability, subject to meeting conditions, to further increase the working capital facility that it will draw down as sales increase. It further reserves the right to raise additional funds through capital and/or debt on a need’s basis. 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes, as discussed in Questions 8.6.1 and 8.6.2. Furthermore, the sectors that the company are focused on continue to show strength, and expansion into new products via the recent distribution and supply agreement allow the company to offer a broader offering to its existing and new clients. Moreover, there was an increase in cash payments in contrast to cash receipts to fund an increase in capacity that has resulted in an increase in Work In Progress that will be collected over the next quarter. Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 31st July 2024 Authorised by: EGY BOARD OF DIRECTORS..................................................................... (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.