Energy Technologies Limited 1Q FY2025 Quarterly Activities Report and Appendix 4C

Energy Technologies Limited (ASX: EGY), is pleased to release its Quarterly Activities Report and Appendix 4C Quarterly Cash Flow Report for the period ended September 2024 (“1Q FY2025”).

Key highlights:

• Quarterly cash receipts of A$3.2m, up 23% on June 2024 Quarter;
• Net Cash operating outflows of $1.28m, a 52.6% improvement on June 2024 Quarter;
• Renewable Energy Division becomes operational and records initial sales receipts of $328k;
• Wholesale product agency/distribution agreement with Tratos Group finalised and implemented within the Purchased Sales Division;
• On 12 September 2024, announced a non-renounceable pro-rata rights issue to eligible shareholders to raise up to c. $12.7 million; and
• $6.00m line of credit secured to support continued execution of the revised business plan including anticipated growth of the Renewable Energy and Purchased Sales divisions.

The increased cash receipts and continued execution in respect of the previously announced revised business plan contributed to a significant reduction in 1Q FY2025 net cash operating outflows to $1.28m, a 52.6% improvement over the June 2024 Quarter.

The revised business plan re-focuses the Company from being predominantly concerned with the manufactured sales of specialised low voltage wires and cables to a broadening of commercial pursuits comprising:

• adopting strict financial margin metrics for the Manufactured Sales Division, whereby – absent a compelling commercial rationale - low margin production orders are transferred to the Purchased Sales Division;
• the commissioning of the of the Renewable Energy Division, which currently comprises the recently announced wholesale distribution agreement with the Gantner Group; and
• the establishment of the Purchased Sales Division with the recently announced wholesale distribution agreement with the Tratos Group, which now enables EGY to offer the complete suite of medium and high voltage wires, cables and allied products.

As a consequence of the continued execution of the transformative business plan, EGY not only enjoyed its first sales from the Renewable Energy Division during 1Q FY2025 but importantly has been able to confidently commence tendering in this sector supported by the recent:

• procurement of a $6.00m line of credit; and
• launch of the c. $12.7m non-renounceable pro rata rights issue.

With the forgoing initiatives, EGY can now comfortably meet any working capital requirements arising from its’ enhanced business activities. In this respect the Board reserves the right to place the rights issue shortfall as the working capital requirements dictate.

EGY CEO Nick Cousins commented: “We are currently pursuing a range of tenders that extend beyond revenue opportunities in our Renewable Energy Division. EGY is strategically positioned to enhance revenue growth in both the Purchased Sales and Manufactured Sales divisions. Our ability to provide comprehensive solutions across low, medium, and high voltage wires, cables, and related products will enable us to capitalise on these opportunities effectively”.

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