Announcement PDF Energy Technologies Limited (ASX:EGY) A specialised cable & wires manufacturer supplying the high value infrastructure sector Investor Update Presentation December 2023 1 Important Notice & Disclaimer 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. 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. 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 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 Bambach Wire and Cables • Bambach Wire and Cables manufactures low voltage industrial and specialised copper cables • Founded in 1936, it is the oldest existing Australian cable manufacturer and 100% owned by Energy Technologies since 2012 • Factory in Rosedale, VIC with sales offices in New South Wales, West Australia and Victoria • Blue Chip customer base across Rail and Road, Mining, Construction, Defence and Power and Energy Rosedale, VIC 3 Strategy Pivot Maintain manufacturing at Rosedale for low voltage industrial and specialised copper cables Existing operations new focus Preference to high margin, value add products from manufacturing division Deliver high quality cables with short lead times specific to the customer New Division New division delivering imported cables (Purchased Sales) to existing and new clients Expanding our reach in existing and adding complementary sectors Competitive pricing across a larger landscape New Offering Delivering a broader suite of products into customers on a project basis and blanket sales offering will increase sales capacity New division is higher volume, lower margin and more reliable, efficient working cap cycle across Low Voltage and Solar markets 4 Purchased Sales Market There are ~90 participants with an estimated $2bn in Revenue. Low voltage and solar markets make up ~50% of the market with Solar growing aggressively* Inhibitors Sales staff must be experienced Logistics need time to be organised and tested Suppliers must be consistent and of quality *ANZSIC , IBIS WORLD Aug ust 2023 Sales Logistics Suppliers • Sales team are in place and established • Sales team have strong relationships across a bluechip customer base • Manufacturing capabilities often allows the sales team to see projects before they are awarded • Broader suite of purchased sales at competitive prices allows sales to offer a total solution for customers at the contract level resulting in the potential for larger contract wins • Warehousing in place and with capacity due to the finalisation of the second factory at Rosedale • Logistics in place at all Distribution Centres • Deliveries already depart weekly to existing customers • Potential to ramp up capacity by 5 times in a short time period • Sharing deliveries between manufacturing and purchased sales divisions will provide margin efficiencies • Bambach have been using overseas suppliers for the last 20 years • Suppliers used have predominantly been used for raw product finished at the factory • Long track record of quality assurance across many suppliers • All cables to be produced under an OEM arrangement subject to our QMS qualification process • A mix of suppliers will be used to de-risk supply and cost issues • Bambach have long established processes in place around risk mitigation of the supply chain • Terms and margins will improve as volume grows 5 5 Staged approach Actioned Sales Product Market Suppliers Logistics Sales Team 0 2 4 6 Engaged Actioned 8 10 12 14 Completed 6 Timeline Sales Team Logistics Suppliers Market Product Sales Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 In Place Soft Launch Identified but not actioned Not finalised 7 Operational Update • Market remains strong with sales and order book on track given operational conditions • Operational conditions remained challenging with constraints on working cap and operational staff • Factory more efficient after rationalisation but utilisation remains low due to the above • New strategy will ease working cap constraints and utilise sales capacity more efficiently • New sales division will contribute first sales in June quarter 2024 8 Appendices 9 Appendix: Key Risks 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. 10 11