Name of Entity: Advanced Braking Technology ABN: 66 099 107 623 Reporting period: Year ended 30 June 2024 Previous corresponding period: Year ended 30 June 2023 Results for announcement to the market 30-Jun-24 30-Jun-23 $A’000 $A’000 Revenue from ordinary activities Up 12.01% 16,455 14,690 Profit / (Loss) from ordinary activities after income tax attributable to members Up 15.60% 1,704 1,474 Net Profit / (loss) for the period attributable to members Up 15.60% 1,704 1,474 Dividends 30-Jun-24 30-Jun-23 Net tangible assets cents cents Net tangible assets per share (cents) 1.93 1.41 Appendix 4E Full Year report There is no proposal to pay dividents for the year ended 30 June 2024 This report is based on accounts which have been audited. The commentary on the results for the period is contained in the release accompanying this statement. ANNUAL REPORT 2024 VEHICLE SAFETY INNOVATION ABN 66 099 107 623 CONTENTS Table of Contents 03 Operating and Financial Report 10 Notes to Financial Statements Consolidated Entity Disclosure Statement 35 61 Corporate Directory 04 Directors’ Report 16 Directors’ Declaration 62 Chair’s Report 06 Auditor’s Independence Declaration 29 Independent Auditor’s Report 63 Chief Executive Officer’s Report 08 Annual Financial Statements 30 Shareholder Information 67 3 ABT Annual Report 2024 2 | ©2024 Advanced Braking Technology Ltd. All rights reserved. CORPORATE DIRECTORY Directors Dagmar Parsons David Slack Adam Levine Les Guthrie Company Secretary Kaitlin Smith Registered Office 73 Inspiration Drive Wangara, WA 6065 Telephone: + 61 8 9302 1922 Telephone: 1800 317 543 Auditors Moore Australia Audit (WA) Level 15, Exchange Tower 2 The Esplanade Perth, WA 6000 Country of Incorporation Australia Legal form of entity Listed public company Bankers National Australia Bank Ltd 12 / 100 St Georges Terrace Perth, WA 6000 Share Registry Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth, WA 6000 Telephone: + 61 8 9323 2000 Facsimile: + 61 8 9323 2033 ASX Home Branch Australian Securities Exchange (ASX) Level 40, Central Park 152-158 St George’s Terrace Perth, WA 6000 ASX Code ABV – Ordinary shares Chief Executive Officer Andrew Booth Chief Financial Officer Angela Godbeer ABT Annual Report 2024 5 ABT Annual Report 2024 4 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 6 | ©2024 Advanced Braking Technology Ltd. All rights reserved. Chair’s Report Chair’s Report 7 ABT Annual Report 2024 Dear Shareholder, I am delighted to provide ABT’s Annual Report for FY2024. This year, we achieved new heights in performance and made further progress towards our ambitious strategic goals and targets. We focused on our purpose and vision, with the Board and Leadership Team working in unison to guide our strategic direction and tactical roadmap. During the year Andrew Booth, our CEO and I met with many of our shareholders and the investment community around the country. We received rich and insightful feedback which provided valuable input in setting our strategic priorities. OUR PRIORITIES Our people are at the core of everything we do. Our team bring unique skills, perspectives, and experiences to the table and it is vital that we create a supportive environment where they feel valued, respected, and empowered to thrive. By investing in our people through professional development opportunities and a focus on work-life balance, ABT has fostered a culture of growth and collaboration to ultimately benefit our people as well as the company as a whole. At ABT, we promote a positive and inclusive culture to attract and retain top talent, strong employee morale and enhance teamwork and communication. We value diversity, creativity and innovation and have aimed to create a work environment where employees feel motivated and inspired to do their best work. We also believe that strong organisational culture positively impacts our relationships with our customers, partners and all our stakeholders. The ABT Board and Leadership remain aligned in creating a positive and inclusive culture which enhances employee satisfaction and productivity, which ultimately drives the success of our business. People and Culture In addition, I am proud of the progress made across a range of projects and initiatives which will underpin the projected growth such as actively expanding into South Africa supported by the new product development of a SIBS brake for the TOYOTA Hilux. By adopting sustainable practices, ABT contributes to the broader goal of achieving a more environmentally and socially responsible mining industry. It is well known how important ESG is in the mining industry. As the demand for minerals continues to grow, mining companies are under pressure to improve their environmental performance, social responsibility, and corporate governance practices in both mature and developing markets. ABT understands this. We are developing a strategic framework which aims to solution for all aspects of ESG and to assist our customers in achieving their respective ESG targets. For example, ABT’s 100% Sealed Integrated Brakes (SIBs) contribute to a cleaner air environment where air quality is critical and air filtration is a material cost of business. ABT SIBs enhance sustainable mining measures which reduce carbon emissions. ABT Failsafe brakes providing safe working conditions for employees and key operating service partners with spring actuated hydraulic release brake systems offering both primary and secondary activation methods to prevent unintended vehicle movement as a key operating risk in underground mining. ABT solutioning contributes to stronger governance in optimal asset management for our customers’ mine operating models. ABT brakes offer our customers positive Total Cost of Ownership benefit over the useful life of the vehicle of circa 23% when compared to a standard brake. This demonstrates to our customers a positive return on investment in an ABT SIBS brake. Environmental, Social, and Governance (ESG) The Board has determined that, subject to satisfactory results for FY 25 and capital requirements, the company will consider paying dividends. To this effect, Advanced Braking Technology intends to put in place a Dividend Reinvestment Plan. Dividend Policy Dagmar Parsons Chair Innovation and technology are key to driving our progress and continues to revolutionise the mining industry, leading to increased efficiency, safety, and sustainability. Innovation in Mine Safety Technology continues to attract subsequently strong investment and strategic focus across mine operations around the globe. As adherence to safety regulations increases, collision avoidance technology development is in strong demand. ABT’s innovation roadmap identifies the importance of the complimentary interoperable relationship between failsafe brake systems and collision avoidance technology. We are actively exploring the ways in which ABT can participate in this space. We also continue to improve and leverage existing technology IP to expand our product range. The TOYOTA Hilux SIBS is a case in point as is the development of driveline solutions for ancillary vehicles. I look to the year ahead with confidence as there has never been greater opportunity for our vehicle safety innovation. Combined with strategic leadership, quality of customer engagement, technology and innovation offers great optimism that we can deliver for all our stakeholders. I want to thank our ABT leadership and the dedicated ABT team, our valued customers and our partners, who are bringing the ABT purpose and vision to life. On behalf of the Board I would like to thank our shareholders for their ongoing support. Innovation in Mine Safety Technology CHAIR’S REPORT Investing in a focused project management framework which brings together cross functional project teams. Driving an ABT supplier engagement strategy which leverages the scale which ABT has created over the past 3 years for our key suppliers and potential new supply partners. And importantly establishes a supply chain which will support a growth roadmap. Account planning based on strategic and tactical engagement strategies in order to optimise and activate a Bluechip customer base with international footprints. Gaining and maintaining a range of ISO accreditations demonstrating to customers, partners, suppliers and stakeholders that ABT follows internationally recognised standards for quality, risk, environmental management and continuous improvement. Enabling the foundations of ABT to support continuing growth and scale is a fundamental strategic charter for the ABT Board. I am delighted with the progress which Andrew and his team have delivered which includes but is not limited to: Foundations for Scale Building a Learning and Development platform to lift the collective skills and development across the organisation. Successfully attracting top talent from the Mining and advanced manufacturing sectors here in Australia and overseas. Developing an ABT Performance Management Framework to enhance motivation, reward and engagement of our team. ABT Annual Report 2024 8 | ©2024 Advanced Braking Technology Ltd. All rights reserved. In the past year, ABT has delivered solid results as the team have forged ahead with focussed execution of our strategic roadmap. I am pleased to report that we have achieved our strongest results yet across key metrics including Revenue, Margin, Profit and Productivity in FY24. ABT’s Total Revenue of $16.5M increased +12% on prior year. This result reflects an unwavering focus on the execution of our customer engagement in our home market of Australia as well as ABT’s key international markets. South Africa, Indonesia, Mongolia and Canadian Market continue to develop and present ABT with strong deal pipeline opportunity. This drives our install base of Failsafe Brake sales and offers ABT strong opportunity to grow penetration of the Underground Operator Market. Spare Parts and Consumables is a profitable element of ABT total revenue in FY24. As a typical Original Equipment Manufacturer (OEM), ABT generates approximately 45% of sales from recurring sales of spare parts, which naturally increases as we grow our install base. ABT has delivered a Gross Margin of 51.4% which has increased from 50.2%. The result is a direct outcome of focussed cost and supply chain management as well as product mix. ABT has delivered sustained levels of profitability with NPAT of 1.7M +15.6% on prior year. Net Profit of 11.1% is an improvement on prior year results of 10.4% and sets new benchmarks in ABT’s productivity, as we continue to foundation this business model for future, ongoing scale. During the year we developed the new Failsafe Sealed Integrated Brake Systems (SIBS) for the popular TOYOTA Hilux light vehicle. The ABT SIBS Hilux will offer mine fleet operators similar benefits to our proven TOYOTA Land Cruiser SIBS. These benefits include ABT’s market leading Failsafe technology, as well as cost of ownership benefit over the useful life of the vehicle when compared to a standard brake. This demonstrates a positive return on investment in an ABT SIBS brake. The Hilux SIBS represents one of a number of key initiatives to diversify the vehicle applications of ABT SIBS Failsafe brake systems across both Light Vehicle and Heavy Vehicles in Mining operations. Our Strategic Roadmap offers ABT a 5-year plan to grow via a focus on leveraging our core failsafe product IP as well as capitalising on our perpetual R&D investment with commercialised innovation. Chief Executive Officer’s Report Chief Executive Officer’s Review Full Year highlights include: +15.6% ($1.7M) NPAT YOY Growth 12% ($16.5M) Total Revenue Growth Year End Gross Margin 51.4% (50.2%PCP) CHIEF EXECUTIVE OFFICER’S REPORT 9 Chief Executive Officer’s Review 9 ABT Annual Report 2024 Chief Executive Officer’s Report What are your reflections on FY24? How are you strengthening the ABT business for growth and scale? And as we execute this growth plan, the importance of strengthening the foundations of ABT to support continuing growth and scale is a key strategic charter for my team. Investment in training and development of our people remains key. As this ensures that our people grow in line with the ABT business so that ABT can continue to attract and benefit from new talent endowed with knowledge and industry experience. The ABT culture is a strong and positive one and at ABT we know that strong culture is as important as strong operating systems which when combined, create a powerful foundation for scale. Enhancing our systems development to improve productivity and streamline workflows leverages automation tools. By automating repetitive tasks, employees focus on important strategic activities, leading to increased efficiency and productivity. This continuous improvement is evident and at ABT, we consistently talk about how we are finding ways to be better everyday. As an OEM of advanced manufactured products, we rely on strategic supplier relationships locally and offshore for specialised componentry. As we scale, ABT is strengthening our partnerships with suppliers both existing and new to ensure ample production capacity to meet the demands of the growing industrial safety market. Because it is critically important to our highly valued customer base. These world leading mine and mining services operators are continuing to invest and innovate to improve their environmental performance, social responsibility, and corporate governance practices in both mature and developing markets. ABT understands this and continues to develop and refine a strategic framework which aims to solution for all aspects of ESG. These are not necessarily new or novel product developments. As some of these have been intrinsic benefits included in our intellectual property all along. Why is ESG relevant to the ABT strategy? Why ABT? We are a homegrown Australian Engineering OEM with intellectual property that offers vehicle safety solutions to world’s leading mine operators. This makes ABT a leading brand in Failsafe Brake Systems in the underground mining sector. ABT brakes have a proven reputation for unmatched safety, heightened productivity, zero emissions and durability in the most challenging operating environments in the world. With an estimated 20% market share globally, ABT has strong organic growth opportunities. We are dedicated to improving Safety - Improving the safety of miners and the efficiency of mine operations. This includes: • Prevention of Unintended Vehicle Movement. • Managing Brake Fade and Brake Failure. • Offering optimal durability – minimising service, maintenance and maximising the life of the brake • And our 100% Sealed brakes contribute to a cleaner air environment – where air quality is paramount What are your focus areas for FY25? In the year ahead we will continue to focus on the diversification of vehicle applications for our ABT SIBS range and deliver innovation on both light vehicle and heavy vehicle applications. Consequently, ABT is engaging with a number of Global Mine Operators to develop Failsafe Safety systems for a range of new vehicle solutions and offers just one example of how ABT is deepening our engagement across our bluechip customer base. Supporting our customers with best practice aftersales, technical support remains a pivotal element of ABT’s strong brand reputation in the mining sector. As we activate more offshore opportunity in regions such as Africa, Asia and America’s, ABT will continue to invest in these regions to drive important educational marketing to drive awareness of Failsafe braking in high risk operating environments. As we drive market penetration across a broader array of markets, we will continue to attain conformance to local regulator safety standards specific to those markets. Mine safety technology remains a key focus for ABT’s product innovation. Collision avoidance and failsafe braking are a natural fit and we see this as a key pillar for ABT future development. Continuous improvement in our systems and workflows remains a core element of enabling the level of scale we are targeting. Fostering a strong ABT team culture remains paramount to the ABT leadership charter. The ABT team completed FY24 with new records realised in Revenue, Profitability and Productivity and I am extremely proud of these achievements. Equally, we are commencing FY25 with unprecedented levels of opportunity and unabated focus on continuous growth and I am confident of ABT achieving new heights in this exciting year ahead. I want to take this opportunity to thank and congratulate our talented and dedicated ABT team, to thank our loyal customers, our partners, the ABT Board and all of our Shareholders for their trust, support and belief in the ABT Vision. 9 Andrew Booth CEO 11 Operating and Financial Report Operating and Financial Report ABT Annual Report 2024 ABT Annual Report 2024 10 | ©2024 Advanced Braking Technology Ltd. All rights reserved. BUSINESS OVERVIEW Advanced Braking Technology Ltd (‘ABT’ or the ‘Company’) is an Australian company listed on the Australian Securities Exchange (ASX:ABV) that designs, manufactures and distributes its innovative braking solutions worldwide. From its head office in Perth, Western Australia, ABT continues to develop its product portfolio for a diverse range of industries that have a strong requirement for safety and environmental responsibility, including the mining, defence, civil construction and waste management industries. ABT’s innovative braking solutions are well known for their unparalleled safety, improved productivity, zero emissions and durability in the world’s harshest conditions. As the Company’s reputation has grown, demand for ABT’s brakes has expanded internationally with its braking solutions being used in all seven continents across the globe. Approximately 40% of revenue from continuing operations comes from overseas locations including Canada, Europe, Asia-Pacific, South Africa and Chile in which ABT has key distribution partners. ABT has three strategic key supplier relationships, all located in Australia, which represent approximately 60% of ABT’s supply chain inputs. This primarily Australian-based supply chain has continued to contribute to the Company’s operational resilience to deliver ongoing sales growth and financial year results. During FY24, ABT offered the following key products: Brakesafe Wheel End SIBS Brakes - Sealed wet brakes with Spring Applied Hydraulic Release (SAHR) mechanism and optional interlocks, this integrated Park and Service Brake system eliminates the risk of unintended vehicle movement ensuring unparalleled safety for operators and site personnel. Brakesafe Driveline SIBS Brakes - ABT Driveline Brakes act as a supplementary system for critical situations. In case of service brake failure, these brakes provide rapid intervention, preventing unintended vehicle movements and going beyond the standard OEM supplied park braking systems. During FY24, the Company continued to deliver on our strategic roadmap. These included: • International expansion of our SIBs install base. • Launch New SIBs for TOYOTA Hilux. • Double digit % Growth in Revenue and NPAT. • Record ‘trail’ revenue in Spare Parts and Consumables. • Gross Margin performance reflects strong supply chain management. • Enhanced productivity exhibited via Operating Leverage. • Official Opening of ABT Inspiration HQ. • ABT Exhibit at International Mining and Resources Conference IMARC October 2023. • Full Time Sales Manager based in Johannesburg. year as the Company continues to invest in self-funded new product development which will deliver revenue diversification and scale opportunities. During FY24, ABT received funds of $27.5K for the Energy Efficient Grant (‘Grant’) by the Department of Industry, Science and Resources. The Grant was awarded to provide funding to increase the uptake of energy efficient technologies. OPERATING AND FINANCIAL REPORT Financial Summary The Company reported financial results for the year end 30 June 2024, with revenue from ordinary activities of $16.46m (FY23: $14.69m), which represents a 12.0% increase on the prior year. The net profit for the year of $1.7m (FY23: $1.47m) was achieved through an increase in sales revenue and controlled expense. The Company reports a balance sheet with cash and receivables of $5.41m (FY23: $3.99m). Net assets as of 30 June 2024 have increased 28% from FY23 to $8.87m. Increases in inventory holdings and increases in the R&D tax incentive have been the main contributors to the increase in net assets. The Company increased inventory holdings to service open orders and hold safety stock levels akin to the sales increases. Increases in self-funded research and development have resulted in an increase in R&D tax receivables. Cash balance of $2.41m, is up from the $2.05m at 30 June 2023. Trade and other payables remained constant at $2.0m (FY23: $2.0m). Trade receivables increased to $3.0m (FY23: $1.9m). Revenue from continuing operations in FY24 of $15.29m (FY23: $14.15m) was achieved primarily from sales of the Company’s core BrakeSAFE Wheel End and BrakeSAFE Driveline products and associated spares and consumables predominately in the mining industry. The gross margin for revenue from continuing operations for FY24 is 51.4% (FY23: 50.2%). The increased gross margin is a culmination of improved cost control measures, economies of scale and improved inventory management. ISO9001 accreditation provides process improvement implementations, increased productivity, efficiency and costs control measures. The estimated research and development (R&D) tax incentive refund for the year of $947k (FY23: $480k) is higher than prior Revenue Expenses for FY24 totaled $7.3m (FY23: $6.2m) representing a 19% increase on prior year. The increases in expenses are in line with the Company’s strategic horizon to support a step change in growth. Total expenses are 48% of revenue from continuing operations (FY23: 44%) and aligned to the revenue growth achieved through the year. Expenses The cash balance of $2.41m (FY23: $2.05m) has increased on prior year due to higher revenue, and the Company reports a positive operating cash flow of $0.3m (FY23: $0.9m). The Company continues to take a proactive approach to minimise disruption of delivery to customers by purchasing inventory in advance and holding higher stock levels than previously required. The Company has a solid sales pipeline on which to place orders, and as the Company looks to strengthen operations and build business resilience, the importance of supply chain risk management is more apparent than ever. This is a prudent and mandatory investment in securing the opportunity sales pipeline. Cash 11 ABT continues to focus on the ongoing execution of its strategic roadmap with sustained financial and operational performance during FY25. The growth strategy will be implemented through: • Organic growth via focused sales and marketing engagement with ABT’s international customer base; • Product innovation at pace and interoperable with technology advancement • SIBS product development to support broader vehicle application • Supply chain expansion to support step change growth and scale • Continuous improvement focus on delivering customer, quality and cost enhancement • Inorganic growth through implementing our Joint Ventures, Partnering and Acquisitions strategy Diversification is a key strategic theme in FY24 through the following: • Our product offering; • Our customer base; • The geographic locations in which our products are found; and • Our network of partners: Suppliers, Installation and Service Providers, and International Distributors. With a focus on leveraging our core Sealed Integrated Brake System SIBS intellectual property and existing product range as well as capitalising on our perpetual R&D investment, the Company is positioned to grow sales during FY25 to a broader range of customers and geographic regions. The diversification of vehicle variants to which these products can be fitted is based on market intelligence and understanding the fleet and asset management requirements of the customer, with a diligent focus on investment return benchmarks. An example of this diversification is the launch of the Failsafe Sealed Integrated Brake System SIBS for the popular TOYOTA Hilux Light Vehicle. The ABT SIBS Hilux will offer Mine Fleet Operators similar benefits to our proven TOYOTA Landcruiser SIBS, including ABTs leading Failsafe technology, as well as Total Cost of Ownership benefit over the useful life of the vehicle of Circa 23% when compared to a standard brake. This demonstrates to our customers a positive return on investment in an ABT SIBS brake. The Hilux is a popular vehicle for mining applications in developing regions such as South Africa, Asia and South America where awareness in safety systems is growing. Strategy implementation and product development Operating and Financial Report Operating and Financial Report ABT Annual Report 2024 ABT Annual Report 2024 12 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT maintains a growing focus on the heavy vehicle market, which includes operators using heavy rigid road- trucks for mining as well as additional heavy ancillary mining equipment and we continue to engage with key mining operators to validate heavy vehicle brake solutions. This diverse fleet of vehicles ranges from heavy rigid trucks through to telehandlers, loaders and other ancillary fleet vehicles as safety, environmental concerns and reduce fleet operating costs remain a focus for mine operators. Smaller, faster, more fuel-efficient vehicles to deliver environmental & productivity gains is a consistent trend across the sector. ABT are engaged with a number of major mining operators both in Australia and Internationally to validate a range of heavy vehicle brake solutions. Brake safety systems are highly complementary to collision avoidance technology in mining. Vehicle Collision Avoidance Technology is rapidly emerging across mining operations globally to address the risk of human injury and fatality from vehicle interactions. Each year, between 30-40% of mining industry deaths are attributable to failures of vehicle interaction controls and of these about half involve pedestrians (EMESRT) Collision Avoidance Level 9 intervenes and overrides the driver and when combined with Failsafe Braking, provides complementary safety intervention systems which save lives. ABT’s strategic innovation focus in this Collision Avoidance Systems (CAS) space offers significant growth opportunity via increasing applications as a leading safety OEM brand in the mining market. 13 ABT’S 2029 STRATEGIC HORIZON ABT’s 2029 strategic horizon model illustrates the themes over a medium-term 5 year time band. FY25 continues progression in deepening our market share across a global customer base parallel to strengthening our foundations to support growth. ABT strategic focus and investment in industrial safety technology remains a key development target. The combination of these horizons will support ABT’s continued journey of growth and scale. ABT will continue to allocate resources towards the creation and enhancement of new technologies, products and processes through Research and Development (R&D). Investment in R&D is important for the Company to remain competitive, foster innovation and drive long term growth. 15 RISK MANAGEMENT ABT Risk management drives the identification, management, and mitigation of risk, which in turn crates a risk aware corporate culture. Key risks are reviewed on a quarterly basis and reported to the Audit & Risk Committee, and to the Board. The key risks to ABT’s ability to successfully operate a global business, grow and remain cost competitive, and the strategies devised to mitigate these risks are summarised as follows: Cyber Security and Information Technology Risk Targeted cyber-attacks or unauthorised access to ABT’s IT systems pose a number of risks to AB, including reputational damage, financial loss, operational disruption and reaches of regulatory compliance obligations. In FY24 ABT invested in the implementation of the Australian Cyber Security Centre Essential 8 and achieved Level 1 status. ABT developed, and continues to update it’s IT policies, procedures and practices including the use of company information, personal storage devices, IT systems and IT security. To mitigate risks, ABT maintains ongoing training and awareness for all staff. The Board is briefed on cyber security on a regular basis. Health & Safety Risk ABT has a comprehensive Occupational Health & Safety management system in place, designed to ensure proactive health and safety risk identification, mitigation and management strategies are employed at all times. ABT remains committed to review and refine safety management practices already in use in the workplace. People Risk The ongoing global shortage of skilled labour continues to place pressure on our ability to attract, grow and retain critical and diverse talent across our workforce. In addition, there are also risks of disruptions due to industrial relations leading to financial loss. ABT aims to mitigate risks through remunerating competitively, identification of critical roles, and the implementation of succession and retention plans. Innovation Risk ABT takes pride in offering bespoke design and engineering solutions that meet customers’ needs in terms of product capability and performance. Delivering innovative solutions is crucial to our ongoing success. By incorporating technology and innovation into our designs and products, ABT maintain its competitive edge and stands out from the competition. In our market key competitive elements include price, quality, delivery, technological innovation and engineering development. To safeguard our innovation advantage, we focus on attracting top talent, protecting our intellectual property and investing in future operations. Strategic Risk ABT consistently seeks business growth opportunities and assesses strategic alternatives to ensure the long-term sustainability of producing high quality products for its customers. Supply Chain Risk ABT is reliant on a few strategic suppliers for key component parts. ABT has developed sound relationships with key suppliers to ensure ongoing supply in a timely manner. ABT continues to invest in supplier management to provide forecast that enable planning. ABT has invested in robust risk management strategies to implement contingency plans. SUSTAINABILITY SNAPSHOT ABT is dedicated to operating in a way that recognises and proactively addresses the issues most critical to the long term sustainability of its business, the environment and the communities where it sells products and operates. This commitment is rooted in ABT’s core values which are fundamental to our business practices and culture. Environmental ABT is committed to the continued management of the environmental impact of our operations facility and our products to lower our carbon footprint. • Investment in energy efficient premises and equipment to reduce waste and energy. • Implementation of energy management systems to monitor and reduce energy consumptions. • Implemented recycling programs for plastic, paper, electronics and other materials. • Installed water saving fixtures and appliances. • Provide training and resources to educate employees about sustainability practices. • Encouraged employee-led sustainability initiatives. Social ABT is dedicated to the health and safety of our people, providing an inclusive workplace that offer many opportunities. • Occupational Health and safety performance has continued to improve through education and training on safe work practices. • ABT continues to offer training and development programs to all staff, assisting in their growth and development. • ABT provides flexible work arrangements, including working from home arrangements where possible. • Employee benefits including discounts with many retailers through our Employee Benefits Program. • ABT’s Employee Assistance Program provides employees and their families immediate confidential support services. • ABT fosters a workplace that encourages diversity and inclusion, and appropriate behaviour at all times. • Support fundraising efforts by matching employee’s charitable donations. Governance ABT is committed to upholding the highest standards of corporate governance, which serve as the foundation for stakeholder’s trust in our business. • Significant upgrades to IT systems and mitigation of cyber security threats. • Female leadership roles appointed in the business to achieve a more gender diverse organisation. • ABT provides regular training on ethics and compliance for employees at all levels. • ABT has established a comprehensive risk management framework to identify, assess and mitigate risks, with regular reviews held. • ABT has updated governance policies and procedures to ensure alignment with best practices and regulatory requirements. Growth and Outlook The Company’s agenda is underpinned by a strong focus on the safety needs of our customers operating in both developed and developing markets globally. This is founded upon a clear and aligned channel-to-market strategy supported by a fully integrated sales & marketing framework targeting heavy industrial, mining, mining services and international distribution. The Company also continues to focus on strategic growth opportunities and is currently assessing key initiatives to drive scale, revenue diversification and enhanced innovation for the business. 14 | ©2024 Advanced Braking Technology Ltd. All rights reserved. Operating and Financial Report ABT Annual Report 2024 Operating and Financial Report ABT Annual Report 2024 15 17 The Directors of Advanced Braking Technology Ltd (‘Company’ or ‘ABT’) and its controlled entity Advanced Braking Pty Ltd (the ‘Group’ or the ‘Consolidated Group’ or the ‘Consolidated Entity’), present the annual financial report for the financial year ended 30 June 2024. For the purposes of the Corporations Act 2001, the Directors provide the report as follows: The following persons were Directors of the Company during the financial year are as follows: Principal Activities The principal activity of the Consolidated Group during the course of the year was the research, development, design, commercialisation and manufacture of the ABT Failsafe Brakes, ABT Failsafe Emergency Driveline Brakes and Terra Dura Brakes and associated braking systems. Opening Results The results of the Consolidated Group for the year ended 30 June 2024 were a net profit from continuing operations, after income tax, of $1,704,000 (2023: net profit $1,474,000). Revenues from continuing operations were $15,287,000 (2023: $14,150,000). Revenues from other activities were $1,168,000 (2023: $540,000). Dividends There have been no dividends paid or declared by the Company. focus on attracting top talent, protecting our intellectual property and investing in future operations. SUMMARY OF MATERIAL TRANSACTIONS Issue of Securities In March 2024, the Company issued 321,426 of ordinary shares as part of the Employee Share Plan. Refer to Note 23 for further details. Exercise of Options In December 2023, the company issued 1,489,527 new ordinary shares in the Company on the exercise of 1,489,527 unlisted options exercisable at $0.04 to our KMP, A Booth. Refer to Note 19 and 23 for further details. In June 2024, the company issued 1,489,527 new ordinary shares in the Company on the exercise of 1,489,527 unlisted options exercisable at $0.04 to our KMP, A Booth. Refer to Note 19 and 23 for further details. Energy Efficient Grant ABT was awarded the Energy Efficient Grant (‘Grant’) to the value of $27.5K by the Department of Industry, Science and Resources. The Grant was awarded to provide funding to increase the uptake of energy efficient technologies improving energy efficiency practices and reduce greenhouse gas emissions. ABT fully received the remainder of the grant in FY24. Research And Development Tax Incentive ABT received $671,255 as a refundable tax offset for eligible research and development expenditure relating to the development of its innovative braking solutions during FY23, following the lodgment of the Company’s FY23 income tax return. Significant Changes in the State of Affairs Mr. Les Guthrie was appointed as Non -Executive Director effective 1 August 2023. Events Subsequent to Balance Date There are no further events subsequent to balance dates. Future developments With a focus on leveraging our core SIBS intellectual property and existing product range as well as capitalising on our Particulars of each director’s experience and qualifications are set out later in this report. 16 | ©2024 Advanced Braking Technology Ltd. All rights reserved. Directors’ Report ABT Annual Report 2024 Directors’ Report ABT Annual Report 2024 17 DIRECTORS’ REPORT INFORMATION ON DIRECTORS Experience and Expertise Ms Parsons has more than 25 years of experience in the mining and resources industry across a range of functions, working in senior executive roles with Worley Parsons, AECOM and Downer. Ms Parsons has worked with major national and multinational entities to drive critical market success by providing strategic direction, visionary leadership and innovative thinking. As a Mechanical Engineer, Ms Parsons has developed an in-depth knowledge of engineering, manufacturing, and service industry environments in the Mining, Oil and Gas, Power and Infrastructure sectors. Ms Parsons has considerable experience in transforming and growing complex businesses across diverse corporate, operational and entrepreneurial roles in Australia, Asia and Europe. She has a strong appreciation of the role of good governance in setting, implementing and over- sighting strategic imperatives. Ms Parsons holds a Masters Degree in Mechanical Engineering and a Masters in Business Administration. She is also a graduate member of the Australian Institute of Company Directors. Qualifications Dipl.-Ing. (TH), MBA, GAICD Directorship held in other listed entities Non-Executive Director of Laserbond Ltd. (ASX: LBL) Period of Directorship January 2023 to current. Former directorship in last three years Non-Executive Director of Greenvale Mining Ltd (ASX Code: GRV) Period of Directorship June 2021 to August 2022. Special responsibilities Member of Audit & Risk Committee, Member of Remuneration & Nomination Committee. Interest in shares, options and performance rights Shares – 840,000 Options – Nil Performance Rights - Nil Dagmar Parsons Non-Executive Chair Appointed 22 April 2018 Name Position Appointment Date Resignation Date Dagmar Parsons Chair 22-Apr-18 - David Slack Non-Executive Director 9-Sep-09 - Adam Levine Non-Executive Director 9-Apr-13 - Les Guthrie Non-Executive Director 1-Aug-23 - historical R&D, the Company is positioned to grow sales during FY24 to a broader range of customers and geographic regions. The diversification of vehicle variants to which these products can be fitted is based on market intelligence and understanding the fleet and asset management requirements of the customer, with a diligent focus on investment return benchmarks. The Company will continue to develop its product offering through ongoing R&D to ensure it remains relevant long into the future as automation and electrification of vehicles gains momentum around the world, and the environmental impacts from non-exhaust vehicle emissions, including brake dust particles, are better understood by government and consumers. Environmental Regulation The Consolidated Entity is not subject to any particular and significant environmental regulation under a law of the Commonwealth or of a State or Territory. 19 18 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 19 Experience and Expertise Mr Guthrie is an engineer with 45 years’ experience in the project delivery space. He has held corporate executive and project management roles, across the UK, Australia, North America, and Asia. It is a background steeped in the strategy, development and delivery of major capital programs spanning mining, infrastructure, and oil & gas. He is the Managing Director of Bedford Road Associates, where he has provided advice and delivery support to clients in Mongolia, South Korea, New Zealand as well as in Australia. Prior to establishing Bedford Road, Mr Guthrie was Vice President Projects for BHP Billiton. Previously, he held roles as Group Head of Capital Projects and President LNG for BG Group in UK, President of Aker Kvaerner Inc in the US, and the Management Director of Aker Kvaerner Australia. Mr Gurthrie was a founding contributor to the John Grill Center for Project Leadership at Sydney University and was previously engaged as a subject matter expert by EY Advisory. Qualifications B.Sc (Engineering and Marketing) Directorship held in other listed entities Non-executive Director of Neometals Ltd (ASX: NMT) Les Guthrie Non-Executive Director Appointed 1 August 2023 Experience and Expertise Mr Levine’s extensive private equity experience and proactive investment practice have been the major contributory factor to the Rockwell Group’s success with a portfolio IRR in excess of most leading national and global private equity funds. He brings a very analytical and inquiring mind when engaging with, challenging and supporting the key Executives of the companies he invest into. He currently sits on the boards of a number of global businesses including FMD Financial Pty Ltd, Tharr Group Pte, LOFB International LLC and a number of other private companies. Mr Levine is also the founder (with his wife) and Chair of the Rockwell Foundation, a private ancillary fund, which focuses on supporting opportunities for under privileged youth. He is also the mediate past Chairman of the Australian Jewish Museum Foundation Limited., and has been Chairman of YPO Melbourne and an active global member of YPO for over 10 years. Qualifications L.B (Hon), B.Ec (Acc) Directorship held in other listed entities Nil Former directorship in last three years Nil Special responsibilities Chair of the Remuneration & Nomination Committee, Member of Audit & Risk Committee. Interest in shares, options and performance rights Shares – 777,778 Options – Nil Performance Rights - Nil Experience and Expertise Mr Levine, has over 25 years national and global experience in structuring and executing private equity investments and corporate finance transactions both as legal advisor and a principal investor. Mr Levine is the Executive Chair and Co-Founder of the Rockwell Group which undertakes principal investments into regulated financial and professional services businesses as well as global social ventures. Adam Levine Non-Executive Director Appointed 9 April 2013 Qualifications He has a Bachelor of Economics with Honours and is a fellow of FINSIA. He is also a member of the Australian Institute of Company Directors. Directorship held in other listed entities Non-Executive Director of The Australian Wealth Advisors Group Limited ( ASX: WAG) Period of Directorship April 2024 to current Former directorship in last three years Nil Special responsibilities Chair of Audit & Risk Committee, Member of Remuneration & Nomination Committee. Interest in shares, options and performance rights Shares – 75,520,131 Options – Nil Performance Rights - Nil Experience and Expertise Mr Slack has been a substantial shareholder and NED of Advanced braking for the past 16 years. He is a non executive director of two other public companies, apart from Advanced Braking. He is an NED of Australian Wealth Advisor Group, an ASX listed company (( ASX: WAG) which is a financial planning and fund management group. He is a NED and Chaiman of Transport Safety Systems Group, an Australian public unlisted company in the commercialisation phase of a new rail crossing technology. Mr Slack has had a successful 45 year career in Australian Fund Management as an Australia Equity manager for the Institutional and retail markets. He was instrumental in the formation of 3 successful investment management firms in Australia: County Natwest Investment Management, Portfolio Partners and Karara Capital. David Slack Non-Executive Director Appointed 9 September 2009 Directors’ Report Directors’ Report 21 INFORMATION ON OFFICERS Mr Booth is an accomplished business leader, skilled and experienced in corporate development and strategy across a range of industry sectors and international markets across a broad array of industry sectors including manufacturing, logistics, private equity, finance and resources. Mr Booth has lead growth and innovation, balanced with a risk and governance mindset. He has a reputation for demonstrating strong and collaborative relationship skills and is driven by entrepreneurial leadership where stakeholder and strategic partnerships are key. Mr Booth is above all, passionate about Australia’s unique intellectual property and immense opportunity in the region. Mr Booth has a Master’s of Business Administration (MBA) from the Australian Graduate School of Management (AGSM) and is a Graduate of the Australian Institute of Company Directors (GAICD). Ms Godbeer has over 20 years of experience in financial management and strategic leadership roles across a number of industries, including Engineering, Manufacturing, Media and Financial Services in the United Kingdom and Australia. Prior to joining ABT, Ms Godbeer extensive and diverse background in finance leadership encompasses developing’ and implementing financial strategies, ERP implementation, project management, business improvement, change management and risk control. Ms Godbeer is a Certified Practicing Accountant (CPA), an Associate of the Governance Institute of Australia (AGIA), a Chartered Management Accountant (ACMA) and a Chartered Global Management Accountant (CGMA). INFORMATION ON COMPANY SECRETARY Ms Smith was appointed joint Company Secretary 19 July 2018 and Company Secretary on 10 August 2018. Ms Smith provides company secretarial and accounting services to various public and proprietary companies. She is a Chartered Accountant, a fellow member of the Governance Institute of Australia and holds a Bachelor of Commerce (Accounting). The Company Secretary is accountable to the Board, through the Chair, on all matters to do with the effective functioning of the Board. All directors have direct access to the Company Secretary. Corporate Governance Statement The Board is committed to achieving and demonstrating the highest standards of corporate governance. The Board continues to refine and improve the governance framework and practices in place to ensure they meet the interests of shareholders and our global stakeholders. The Board has prepared the Corporate Governance Statement in accordance with ASX Corporate Governance Council’s Principles and Recommendations, which is available on the Company’s website at www.advancedbraking.com under the Investors/Corporate Governance. Meetings of Directors The numbers of meetings of the Company’s Board of Directors and of each Board committee held during the year ended 30 June 2024, and the numbers of meetings attended by each Director were: Former directorship in last three years Australian Mines Ltd Period of Directorship November 2019 to July 2023 DRA Global Ltd ( Chair of People, Culture and Remuneration Committee, and member of Sustainability, Safety, Health and Environmental Committee) Period of Directorship January 2020 to October 2023 Special responsibilities Member of Audit & Risk Committee, Member of Remuneration & Nomination Committee. Interest in shares, options and performance rights Shares – Nil Options – Nil Performance Rights - Nil 20 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 21 Andrew Booth Chief Executive Officer Kaitlin Smith Company Secretary Angela Godbeer Chief Financial Officer Director Directors’ Meetings Audit & Risk Committee Remuneration & Nomination Committee Held Attended Held Attended Held Attended Dagmar Parsons 11 11 5 5 1 1 David Slack 11 11 5 5 1 1 Adam Levine 11 10 5 4 1 1 Les Guthrie 10 10 4 3 1 1 REMUNERATION REPORT (AUDITED) This remuneration report for the year ended 30 June 2024 outlines the remuneration arrangements of the Company and the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been audited as required by section 308(3C) of the Act. The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Parent Company. Individual key management personnel disclosures Details of KMP of the Parent and Group are set out below. DIRECTORS Name Position Appointment Date Resignation Date Dagmar Parsons Chair 22-Apr-18 - David Slack Non-Executive Director 9-Sep-09 - Adam Levine Non-Executive Director 9-Apr-13 - Les Guthrie Non-Executive Director 1-Aug-23 - EXECUTIVES Name Position Appointment Date Resignation Date Andrew Booth Chief Executive Officer 15-Mar-22 - Angela Godbeer Chief Financial Officer 2-May-22 - Directors’ Report Directors’ Report 23 22 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 23 BOARD OVERSIGHT OF REMUNERATION Remuneration Committee During the year, the Remuneration Committee met to make recommendations to the Board on remuneration policy and to recommend salary reviews and short and long-term incentives for the Company’s executives. Remuneration Policy The remuneration policy of the Company is to pay executive directors and executives at market rates which are sourced from average wage and salary publications are subject to periodic reviews by external consultants and which may include a mix of short and long-term incentives linked to performance and aligned with market practice. In addition, Directors and employees may be issued shares and share options to encourage loyalty and to provide an incentive through the sharing of wealth created through equity growth which is linked to Company performance. The Remuneration Committee members believe the remuneration policy to be appropriate and effective and tailored to increase congruence between shareholders and Directors and executives. The following table shows the gross revenue, net profit / loss and ABV share price of the Company at the end of each respective financial year. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS Remuneration Policy The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. The amount of aggregate remuneration sought to be approved by Shareholders and the fee structure is reviewed against fees paid to non-executive directors of comparable companies. The Company’s Constitution and the ASX listing rules specify that the Non-Executive Directors’ fee pool shall be determined from time to time by a general meeting. The latest determination was at the 2022 Annual General Meeting (AGM) held on November 2022 when Shareholders approved an aggregate fee pool of $500,000 per year. Structure The remuneration of Non-Executive Directors consists of directors’ fees. There are no schemes for retirement benefits for Non-Executive Directors other than statutory superannuation and Non-Executive Directors do not participate in any incentive programs. Other than the Chair, each Non-Executive Director received a base fee of $55,000 per annum plus the superannuation guarantee contribution. The Chair received a base fee of $85,000 plus the superannuation guarantee contribution. Voting and Comments from the Company’s 2023 Annual General Meeting At the Company’s most recent Annual General Meeting held in November 2023, over 98.86% of eligible votes were cast for the adoption of the 30 June 2023 remuneration report. As no comments were received from shareholders who had voted against the resolution at that meeting, the Board does not propose any action with respect to its resolution at this time. The Board considers its remuneration policy to be appropriate and properly aligned with the current size and performance of the Group. EXECUTIVE REMUNERATION ARRANGEMENTS Remuneration level and mix The Group aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Group and aligned with market practice. ABT undertakes an annual remuneration review to determine the total remuneration positioning against the market. Remuneration Structure In the financial year ended 30 June 2024, the executive remuneration framework consisted of the following components: • Fixed remuneration; and • Variable remuneration The table below illustrates the structure of Advanced Braking Technology Ltd’s executive remuneration arrangements Directors’ & Other Key Management’s Interest in the Company The following tables sets out each current Director’s and other KMP’s relevant interest in shares, options to acquire shares of the Company or a related body corporate as at 30 June 2024. Company Performance 30-Jun-24 30-Jun-23 30-Jun-22 30-Jun-21 30-Jun-20 Total Revenue ($‘000) 16,627 14,690 11,741 10,448 9,079 Net Profit / (loss) ($‘000) 1,704 1,474 644 620 171 ABV Share Price 5.6 cents 3.8 cents 2.6 cents 3.5 cents 2.4 cents Remuneration Component Payment Vehicle Purpose Link to Performance Fixed remuneration Represented by total employment cost (TEC).Comprises base salary, plus superannuation contributions. Set with reference to role, market and experience. Based on annual appraisal and reference to market rates. Short-term incentive component (STI) Paid in cash and/or share based incentives for KMPs. A share-based scheme was put in place for KMP executives. Rewards executives for their contribution to achievement of Group and business unit outcomes. Linked to key performance indicators including group performance such as sales revenue, profit targets, and performance against budget and targets such as product commercialisation. All grants are at the discretion of the Board of Directors. Long-term incentive component (LTI) Paid in cash or share based incentives for KMPs. During the FY20 year, a new share- based scheme was put in place for KMP executives. Rewards executives for their contribution to performance of Group. Linked to Total Shareholder Return, sales budgets and profit targets. At judgement and discretion of the Board of Directors. Directors’ Report Directors’ Report 25 24 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 25 Equity Holdings and Transactions The movement during the reporting period in the number of securities of Advanced Braking Technology Ltd held, directly, indirectly or beneficially, by each Director or Executive, including their related party entities, are as follows: Details of Remuneration of Directors and Executives The details of the nature and amount of remuneration for each Director and Executive (Key Management Personnel) of the Company are: 1 D Slack acquired shares on market on December 2022 and March 2024. 2 A Booth exercises his options in December 2023 and June 2024. 3 During the period, management granted employee shares to eligible employees. Refer to Note 23 for further details. 1 The unlisted options granted and issued during the period are unvested and subject to vesting conditions. Refer to Note 23 for further details. ORDINARY SHARES Directors Balance at 1 July 2023 Granted as compensation during year Exercise of options during year Other movement during year Held at date of resignation Balance at 30 June 2024 Dagmar Parsons 840,000 - - - - 840,000 David Slack 1 75,156,743 - - 363,388 - 75,520,131 Adam Levine 777,778 - - - - 777,778 Les Guthrie - - - - - - Sub-total 76,774,521 - - - - 77,137,909 Executives Andrew Booth 2,3 308,127 17,857 2,979,054 - - 3,305,038 Angela Godbeer 3 - 17,857 - - - 17,857 Sub-total 308,127 35,714 2,979,054 - - 3,322,895 Total 77,082,648 35,714 2,979,054 363,388 - 80,460,804 UNLISTED OPTIONS Directors Balance at 1 July 2023 Granted during the period as compensation Exercise of Options Balance at 30 June 2024 (or date of resignation) Vested and exercisable at 30 June 2024 Dagmar Parsons - - - - - David Slack - - - - - Adam Levine - - - - - Total - - - - - Executives Andrew Booth 1 11,916,218 - (2,979,054) 8,937,164 2,979,054 Angela Godbeer 1 5,958,109 - - 5,958,109 2,979,054 Total 17,874,327 - (2,979,054) 14,895,273 5,958,108 Directors Year Short Term Benefits Post Employment Share Based Payments Total Salary & Fees $000’s Bonus $000’s Super $000’s Options $000’s Total Remuneration $000’s Performance Related % % Adam Levine 2023 61 - - - 61 - 2024 61 - - - 61 - David Slack 2023 55 - 5 - 60 - 2024 55 - 6 - 61 - Dagmar Parsons 2023 85 - 9 - 94 - 2024 85 - 9 - 94 - Les Guthrie 2023 - - - - - - 2024 50 - 6 - 56 - Total 2023 201 - 14 - 215 - Total 2024 251 - 21 - 272 - Directors’ Report Directors’ Report 27 Cash Bonuses, Performance-related Bonuses and Share-based Payments Details of STI’s and LTI’s are as follows: Short Term Incentives $73K were accrued for STI during the financial year’s 2024. (2023: $97K) Long Term Incentive Plan On 27 November 2019, shareholders approved the adoption of the ABT Share Option Plan. The issue of unlisted options pursuant to the ABT Share Option plan are as follows: The unlisted options vest over a 3 year period from issue date and are subject to vesting conditions. 26 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 27 On 8 November 2021, The Company issued Andrew Booth 5,958,109 unlisted options with the following vesting conditions: • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2024 with a vesting date being 8 November 2022. • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2024 with a vesting date being 8 November 2023. • 2,979,054 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 8 November 2024. On 1 December 2022, The Company issued Andrew Booth 5,958,109 unlisted options with the following vesting conditions: • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 31 December 2022. • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 31 December 2023. • 2,979,054 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 31 December 2024. On 4 January 2023, The Company issued Angela Godbeer 5,958,109 unlisted options with the following vesting conditions: • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 30 April 2023. • 1,489,527 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 30 April 2024. • 2,979,054 unlisted options exercisable at $0.06 and expiring 30 June 2025 with a vesting date being 30 April 2025. The unlisted options above were valued using Black Scholes, the inputs have been disclosed in Note 23. No other performance incentive-based options were issued as remunerations to Directors or KMP during the period. Other Equity Plans Eligible employees are offered shares in the Company, at no cost to the employees, to the value of $1,000 per annum under the terms of the Company’s Employee Share Plan. There are no performance conditions, because the plan is designed to align the interests of participating employees with those of shareholders. 2 Key Management Personnel, being A Booth and A Godbeer participated in the share plan in 2023 (2022: 1 KMP participated). Refer to Note 19 and 23. Executive Contracts The employment terms and conditions of all Executive KMP are formalised in contracts of employment. The terms of the employment contracts with all Executives require both parties to provide three months of notice to terminate the contract. Other Equity-related KMP Transactions There have been no other transactions involving equity instruments apart from those described in the tables above relating to options and shareholdings. Loans to KMP No loans have been provided to Directors or Executive during the period. Transactions With Key Management Personnel Refer to Note 25 for details of transactions with Directors and key management personnel. Indemnification and Insurance of Directors and Officers During the course of the year the Company has paid a premium for Directors and Officers liability insurance. The insurance would cover costs and expenses incurred in defending legal proceedings arising out of their conduct while acting in the capacity of director or officer of the Company, other than conduct involving wilful breach of duty in relation to the Company. Indemnification and Insurance of Auditors The Company has not during, or since the end of the financial year, in respect of an auditor of the Consolidated Group, paid a premium to indemnify an auditor against a liability incurred as an auditor, including costs and expenses in successfully defending legal proceedings. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purposes of taking responsibility on behalf of the Company for all or part of those proceedings. Non-Audit Services The Board of Directors, in accordance with advice from the Audit and Risk committee, is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. Executives Year Short Term Benefits Post Employment Share Based Payments Total Salary & Fees $000’s Bonus $000’s Super $000’s Options $000’s Total Remuneration $000’s Performance Related % % Andrew Booth 2023 319 58 28 74 479 28% 2024 387 44 25 51 507 17% Angela Godbeer 2023 212 39 22 36 309 24% 2024 247 29 26 30 330 16% Total 2023 531 97 50 110 788 26% Total 2024 634 73 51 80 837 16% Total Consolidated 2023 732 97 64 110 1,003 21% Total Consolidated 2024 885 73 72 80 1,109 13% Executives Issue Date Exercise Price Number of KMP Options - Vesting 1 year from issue Number of KMP Options - Vesting 2 years from issue Number of KMP Options - Vesting 3 years from issue Total KMP Options on Expiring 30 June 2024 Total KMP Options on Expiring 30 June 2025 Andrew Booth 8-Nov-21 $0.04 1,489,527 1,489,527 2,979,055 2,979,054 2,979,055 Andrew Booth 1-Dec-22 $0.06 1,489,527 1,489,527 2,979,055 - 5,958,109 Angela Godbeer 4-Jan-23 $0.06 1,489,527 1,489,527 2,979,055 - 5,958,109 Total 8,937,162 8,937,162 17,874,329 2,979,054 14,895,273 Directors’ Report Directors’ Report 29 28 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 29 The directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons: • All non-audit services are reviewed and approved to ensure they do not adversely affect the integrity and objectivity of the auditor; and • The nature of the services provided does not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board. The following fees were paid or payable to the auditor for non-audit services provided during the year ended 30 June: Auditor’s Independence Declaration The Auditor’s independence declaration is included after this Directors’ Report. Rounding of Amounts The Company is an entity to which ASIC Class Order 98/100 applies and accordingly, amounts in the financial statements and Directors’ report have been rounded to the nearest thousand dollars. Signed in accordance with a resolution of the Board of Directors. Dagmar Parsons Chair Signed at Perth this 29th August 2024 Auditor’s Remuneration Consolidated Group 2024 2023 Remuneration of the auditor: Moore Australia Audit (WA) Pty Ltd Audit or review of the financial statements 57 51 Moore Australia (WA) Pty Ltd Taxation services 10 19 67 70 Directors’ Report ABT Annual Report 2024 ABT Annual Report 2024 Financial Statements Financial Statements 31 FINANCIAL STATEMENTS 30 | ©2024 Advanced Braking Technology Ltd. All rights reserved. 32 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 33 Financial Statements Financial Statements 34 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 35 ABT Annual Report 2024 Financial Statements Notes to the Financial Statements 36 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 37 ABT Annual Report 2024 ABT Annual Report 2024 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 38 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 39 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 40 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 41 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 42 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 43 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 44 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 45 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 46 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 47 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 48 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 49 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 50 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 51 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 52 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 53 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 54 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 55 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 56 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 57 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 58 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 59 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 ABT Annual Report 2024 60 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 ABT Annual Report 2024 61 Notes to the Financial Statements Notes to the Financial Statements ABT Annual Report 2024 Directors’ Declaration The Directors of the Company declare that: 1. The financial statements and notes, as set out on pages 31 to 61, are in accordance with the Corporations Act 2001: a) Comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements, constitutes compliance with International Financial Reporting Standards (IFRS); and b) Give a true and fair view of the financial position as at 30 June 2024 and of the performance for the year ended on that date of the Consolidated Group. c) The information disclosed in the consolidated entity disclosure statement within the annual report is true and correct. 2. The Chief Executive Officer and Chief Finance Officer have each given the declarations required by s295A of the Corporations Act 2001. 3. In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed by authority for and on behalf of the Directors by: Dagmar Parsons Chair 29th August 2024 63 62 | ©2024 Advanced Braking Technology Ltd. All rights reserved. 65 64 | ©2024 Advanced Braking Technology Ltd. All rights reserved. 67 66 | ©2024 Advanced Braking Technology Ltd. All rights reserved. ABT Annual Report 2024 Shareholder Information 2. Substantial Shareholders The Company has the following substantial Shareholder at 26 July 2024: 3. Share Options on issue at 26 July 2024 The Company has the following unquoted equity securities on issue: 4. On-market buy-back. There is no current on-market buy-back. 5. Quotation Ordinary shares in Advanced Braking Technology Ltd are listed on the Australian Securities Exchange (ASX:ABV). Mr Keith Knowles 33.36% 127,701,545 ordinary shares Mr David Slack 19.73% 75,210,131 ordinary shares Number of Options Number of Holders Unlisted Share Options 14,895,273 2 DISTRIBUTION OF FULLY PAID ORDINARY SHARES Size of Holding Number of Shareholders Shares Held % Units 1 - 1,000 206 132,079 0.03 1,001 - 5,000 286 770,382 0.20 5,001 - 10,000 151 1,161,854 0.30 10,001 - 100,000 485 18,823,835 4.92 100,001 and Over 250 361,879,274 94.55 Total 1,368 379,466,944 100.00 Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below. Statement of issued capital at 26 July 2024 A. Distribution of fully paid ordinary shares B. There are 580 Shareholders with less than a marketable parcel. C. There are no restrictions on voting rights attached to the ordinary shares on issue. On a show of hands, every member present in person shall have one vote and upon a poll, every member present in person or by proxy shall have one vote for every share held. SHAREHOLDER INFORMATION 68 ABT Annual Report 2024 Shareholder Information 6. Largest Fully Paid Ordinary Shareholders The names of the twenty largest Shareholders at 26 July 2024, who hold 68.88% of the fully paid ordinary shares in the Company, are: Rank Name Number of shares % of Issued shares 1 Parks Australia Pty Ltd 68,656,628 17.94 2 Mr Keith Knowles 54,665,950 14.28 3 Dasi Investments Pty Ltd 52,496,634 13.72 4 Windpac Pty Ltd18,981,633 4.96 5 Dmx Capital Partners Limited 12,000,000 3.14 6 Rp Invest Pty Ltd 8,600,000 2.25 7 Mr Peter Rodney Bower 8,141,590 2.13 8 Mr Craig Graeme Chapman 6,237,556 1.63 9 Mr Keith Knowles 4,378,967 1.14 10 Mr David Earl Slack 4,041,864 1.06 11 Mr Andrew George Booth 3,264,454 0.85 12 National Nominees Limited 3,000,000 0.78 13 Mrs Teresa Elizeabeth Williams 2,883,200 0.75 14 Mrs Jennifer Anne Hurley + Mr Justin John Hurley 2,557,059 0.67 15 Onkaparinga Holdings Pty Ltd 2,500,000 0.65 16 Myall Resources Pty Ltd 2,450,000 0.64 17 M/S Tracey-Ann Palmer 2,414,490 0.63 18 Bnp Paribas Nominees Pty Ltd 2,214,696 0.58 19 Mr Venugopalan Thekkiniyil 2,095,794 0.55 20 Mr Graeme John Medhurst 2,025,000 0.53 Total 263,605,515 68.88 68 ABT Annual Report 2024 69 1800 3175 43 info@advancedbraking.com 73 Inspiration Drive Wangara 6065, Western Australia Scan the QR code to learn more about Advanced Braking Technology www.advancedbrakingtechnology.com ©2024 Advanced Braking Technology Ltd. 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