© copyright 2015. Quickstep Holdings. All Rights Reserved.

FY15 Results Presentation

September 2015

David Marino, Managing Director Quickstep Holdings Limited (ASX:QHL)

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

Disclaimer

» This Presentation is provided by Quickstep Holdings Limited (“Quickstep” or the “Company”) as a summary of the Company and its operations and for

general information purposes only.

» This presentation is not a disclosure document and should not be considered as investment advice or an offer or invitation to subscribe for or purchase

any securities in Quickstep, or an inducement to make an offer or invitation with respect to such securities. This presentation does not purport to

cover all relevant information about any potential investment in Quickstep. Accordingly, potential investors are advised to seek appropriate

independent advice, if necessary, to determine the suitability of any investment. This presentation must not be relied on to make an investment or

other financial decision and recipients should conduct their own investigations, enquiries and analysis and place no reliance on this presentation in

evaluating any potential investment.

» None of Quickstep, or their respective employees, officers, related entities or advisers have audited or investigated the accuracy or completeness of

the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, none of

them makes any representation and none of them gives any assurance, guarantee or warranty, express or implied, as to, and none of them takes any

responsibility or assumes liability (including in negligence) for the authenticity, validity, accuracy, suitability or completeness of, or any errors in or

omissions from, any information, statement or opinion contained in this presentation.

» This presentation contains certain forward-looking statements which have not been based solely on historical facts but, rather, on Quickstep’s current

expectations about future events and on a number of assumptions which are subject to significant uncertainties and contingencies, many of which are

outside the control of Quickstep and its directors, officers and advisors. Quickstep undertakes no obligation to update these forward-looking

statements for events or circumstances that occur subsequent to such statements or to keep current any of the information provided. Any estimates

or projections as to events that may occur in the future (including projections of revenue, expense, net income and performance) are based upon the

best judgement of Quickstep and there is no guarantee that any of these estimates or projections will be achieved. Actual results will vary from the

projections and such variations may be material. Quickstep has no obligation to tell recipients if it becomes aware of any inaccuracy in or omission

from the information in this presentation.

» Other than for the pictures of the Quickstep facilities and machinery, the assets featured in the pictures in this presentation are not assets of the

Company.

» By accepting this presentation, you acknowledge and agree to be bound by each of the foregoing statements.

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

Aerospace Manufacturing

» Manufacturer of choice for composite components and complex assemblies

Quickstep Aerospace

» Global provider of disruptive technologies, lowering cost of manufacturing components

Quickstep Automotive

» Global provider of Class A body panels and structural parts for the automotive sector

Quickstep Systems

» Leading global innovator of advanced composites parts and capital manufacturing solutions

Quickstep – Strategy Overview

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Advanced Manufacturing, Smart Technology in one

Advanced Manufacturing

SmartTechnology

GlobalComposite Solutions

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

Quickstep – Overview of Business Units

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Aerospace Manufacturing

» Advanced manufacturer of composite components and assemblies in NSW

» Autoclave and Quickstep-patented manufacturing processes

» All facets of aerospace & defence manufacturing contract work

» Focused on aerospace and defence sectors

» Supplies, installs and maintains proprietary Quickstep-patented process technologies

» Qualifying these processes as alternative to using autoclaves for Aerospace

Quickstep Aerospace

» Automotive division in Waurn Ponds, Victoria

» Will manufacture niche volume components and assemblies

» Focus on ‘Class A’ surface parts and structural components

Quickstep Automotive

Quickstep Systems

» R&D Centre based at Deakin University in Waurn Ponds, Victoria

» Responsible for:

» Research & Development

» Process development

» IP and commercialisation

» Program management

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Quickstep – Key Customers and Locations

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Australia

USA

Europe BANKSTOWN, NSW

Aerospace Manufacturing and Quickstep Aerospace

Global Auto OEM

WAURN PONDS, VIC

Quickstep Automotive and

Global R&D Centre

MUNICH, GERMANY

Quickstep sales office for Aerospace and Automotive

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

Quickstep - FY15 Highlights

» Record Sales of $39.5m in FY15, up 229%

– FY14 Revenue: $12.0 million

– 31 ship‐sets delivered to Lockheed Martin for the C-130J program

– 464 JSF parts delivered to Northrop Grumman

» Strong FY15 H2 PBIT performance

– H2 operating profit (PBIT) of $2.23m

– Significant turnaround in full year PBIT

» Firm order book currently in excess of A$74.9m

» $1.76m GRIIF grant awarded for start-up of Quickstep Automotive in Waurn Ponds

» Sales growth momentum is expected to continue in FY16

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Financial Highlights Year-On-Year Sales and PBIT Performance

($20.0m)

($10.0m)

-

$10.0m

$20.0m

$30.0m

$40.0m

FY11 FY12 FY13 FY14 FY15 - H1 FY15

Sales

PBIT

FY15 - H1, $13.4m

FY15, $39.5m

$0.5m $0.5m $2.6m $12.0m $13.4m $39.5m

($12.1m) ($13.7m) ($16.1m) ($9.0m) ($3.0m) ($0.7m) For

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

FY15 Highlights

» The PRESCHE project has validated Quickstep's proprietary technology

– Project consisted of a demonstrator roof for Audi

» Quickstep Automotive division established and first contracts secured

– Thales Hawkei project underway

– Global OEM contract won

» Customer acceptance of Qure in aerospace sector

– $5.8m received from ORPE Technologiya for first sale

» Relocation of Quickstep’s Global R&D Centre to Waurn Ponds, Victoria

– Continued investment in the industrialisation of Quickstep’s RST Qure processes

– Development commenced on Quickstep's RapidQure process

» Management team has been strengthened

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Strategic and Operating Highlights

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Quickstep - Financial Performance

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» Significant growth in revenue to A$39.5m

– Up 229% from FY14; 1,442% over 2 years

– Significant increase in aerospace production

» Net loss of A$3.9m in FY15 reflecting:

– Ongoing investment to ramp up aerospace manufacturing activities

– Automotive investment start-up costs

– Investment in Quickstep’s Qure and resin spray transfer (RST) technology

– R&D A$2.7m in FY15; all R&D is fully expensed

» Financial expense includes options accounting and A$2.1m foreign exchange loss

– Low AUD will benefit Quickstep in future years

» A$1.8m R&D rebate benefit in FY15

» Operating cash increased with rising sales

– Cash flows expected to improve as production deliveries for JSF and C-130J increase

– JSF vertical tail project commences production

Results for the year ended: 30-Jun-15 $m

30-Jun-14 $m

Sales Revenue 39.5 12.0

Cost of sales (27.8) (13.8)

GROSS PROFIT (LOSS) 11.7 (1.8)

Other income 1.8 5.8

Operational and R&D expenses (6.7) (5.5)

Marketing and distribution expenses (0.2) (0.6)

Corporate and admin expenses (7.2) (6.8)

Other expenses (0.1) (0.2)

OPERATING LOSS (0.7) (9.0)

Financial income (0.0) (0.1)

Financial expense (3.2) (2.3)

Net financing costs (3.2) (2.1)

PROFIT (LOSS) BEFORE INCOME TAX (3.9) (11.2)

Income tax (expense) benefit - -

NET PROFIT (LOSS) AFTER TAX (3.9) (11.2) For

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Quickstep - Financial Position

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» A$1.2m cash at 30 June 2015

– Additional A$0.7m in restricted term deposits

» Strong improvement in inventory stock turns

» Substantial reduction in deferred income related to prepayments

– Prepayments associated with C-130J and Quickstep Aerospace contracts

» Improvement in cash and profitability from lower deferred income

» A$3m short-term facility secured in Feb 2015

– Through Newmarket Financing Management (a strategic investor in carbon fibre industry)

» Non-current loans relate to A$10m million Export Finance Facility Agreement with ANZ and Efic

Financial position as at 30-Jun-15 $m

30-Jun-14 $m

ASSETS

Cash 1.2 0.6

Receivables 5.1 6.2

Inventories 6.0 8.3

Other current assets 0.7 3.9

Property, plant and equipment 12.0 13.5

Other non-current assets 0.6 0.7

TOTAL ASSETS 25.6 33.2

LIABILITIES

Payables 4.6 5.3

Deferred income 3.2 13.8

Loans and borrowings 5.2 0.0

Other current liabilities 0.8 0.5

Loans and borrowings – non-current 10.5 10.5

Other non-current liabilities 2.5 0.0

TOTAL LIABILITIES 26.8 30.1

NET (LIABILITIES) ASSETS (1.2) 3.1

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Global Carbon Fibre Industry Opportunities

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Demand for carbon fibre expected to increase substantially through to 2020. Demand has

increased at an 8.1% CAGR since 2008; expected to grow up to 10% CAGR going forward

» Largest industry users of carbon fibre:

– Aerospace & Defence (30%)

– Wind Energy (14%)

– Sport/Leisure (14%)

– Automotive (11%)

» Significant Aerospace growth expected over the coming 20 years

– Airbus expects 27,800 new aircraft ordered between 2011-30

– Boeing forecast higher at 33,500 aircraft

» Fastest growing industry segment is forecast to be Automotive

– Governments globally are increasing penalties to reduce carbon emissions

– Vehicle lightweighting a major priority

Source: Composites Market Report 2014. CCeV & AVK.

Global Demand for Carbon Fibre

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» Sales growth momentum expected to continue in FY16

– Aerospace Manufacturing Sales projected to grow 20% in FY16

– Supply of JSF Vertical Tails program to commence in Q4 FY16

– Expansion of Bankstown facilities to accomodate additional volumes

– First two Quickstep Automotive contracts to commence product supply

– New aerospace & automotive parts contracts currently in negotiation

– Currently quoting additional process technology sales with OEMs

» New process technology & composites solutions continue to be developed

– Automotive & R&D facilities in Waurn Ponds fully established

– Full industrialisation of proprietary Qure and RST processes

– Development of ‘next generation’ RapidQure technology

– Strategic cooperation with Deakin University expanded

» Further advancement of our aim of becoming a global leader in advanced composites solutions

FY16 Strategic Priorities and Outlook

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Divisional Performance and Outlook

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Aerospace Manufacturing – JSF Program

» JSF production increased 152% in FY15

– JSF component production increased to 464 parts

» Quality performance, supply speed and delivery improved

– More than 50 parts per month completed in top month

» Sole supplier globally to Northrop Grumman for 21 JSF parts

» Capital planning for three-fold increase in production over the next three years has commenced

» Vertical Tail pre-production parts have been supplied to BAE Systems for testing

– Volume production ramp up planned for FY16, after customer approvals

– Expected to have significant impact on sales in FY17

» Quickstep’s high quality and delivery is creating new project opportunities

– Northrop Grumman and BAE through the Global Access Program, and new tenders are in negotiation

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Quickstep has secured agreements to manufacture carbon fibre composite parts for the F-35 Lightning II Joint Strike Fighter with several OEMs

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Aerospace Manufacturing – C-130J Program

» Exclusive supplier of composite wing flaps for Lockheed Martin’s C-130J Hercules aircraft

» US$75m MoA to produce 120 sets of wing flaps over five years

– 31 ship sets completed in FY15, up 343% y.o.y.

– Achieved production rate of three C-130J ship sets per month during FY15

» FY16 production to continue at a rate of three sets of wing flaps per month

» 25% increase in volumes for wing flaps (including spares) currently being negotiated with Lockheed Martin

» Customer-funded investment in robotic drill automation for FY17 implementation

– Demonstrating customer confidence in extension of work beyond existing MoA

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Above: Lockheed Martin’s C-130J in flight At right: Quickstep’s C130-J wing flaps being assembled at Lockheed Martin

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Aerospace Manufacturing – Outlook

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» Anticipated 20% increase in sales for existing JSF contracts

» Nadcap1 accreditation and international recognition underpins stronger credentials for tenders

– Focus on military, commercial and light aircraft; and helicopter opportunities

» Further significant JSF growth expected in FY17 optimising utilisation of fixed assets

» JSF vertical tails qualification process for BAE Systems on track for completion in H2 FY16

» Strong pipeline of opportunities to secure further contracts

– Negotiations with existing defence customers, and for the supply of parts for commercial aircraft, are continuing

Military Aircraft Light Aircraft

Commercial Aircraft Helicopters

1. National Aerospace and Defense Contractors Accreditation Program

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Quickstep Aerospace – ORPE Technologiya

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» First commercial sale of Qure technology achieved in FY15

» A$6m contract with ORPE Technologiya secured in July 2013

» $5.8m received in FY15; balance when installation completed in FY16

– Integrated, assembled, tested and approved by customer at Quickstep’s Munich facility

– Ready for delivery & installation in FY16

» Cost of using Qure to customer estimated at 1/10th of an Autoclave

– Running costs estimated 1/3 of Autoclave

» Provides strong endorsement of Quickstep’s Qure process for manufacturing carbon fibre composites

Qure machine built by Quickstep and satellite shielding parts to be made by ORPE using this process

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Quickstep Aerospace – Outlook

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» Quickstep is focused on qualification of its Qure and RST technologies

– Focus is on unmanned aircraft, light aircraft and sports aircraft markets in FY16

» Qure machines and composite parts would be manufactured and supplied by Quickstep from Australia

» Commercial aircraft applications are under negotiation

» Success in securing contracts for the global commercial aircraft market would expedite acceptance of Quickstep’s technology for a broader range of applications

» Quickstep is currently in discussions with firms in USA, Europe and Asia, including China

Space & Exploration Aircraft

(Unmanned)

• Sale of Qure process to spacecraft manufacturers – i.e. ORPE

• Focus on low-medium volume production customers

• Customers potentially in developing markets – i.e. Russia, China, India

• Parts relatively flat, large surface area

Light & Sports Aircraft

(Small to medium size)

• Sale of Qure process to light & sports aircraft producers – get flying parts

• Qualification of Qure with Defence & Commercial PRIMEs/Tier 1 suppliers

• Seek opportunities in both developing & mature markets

Defence & Commercial Aircraft

(Large global platforms)

• Sale of Qure process to large aircraft PRIMEs & Tier 1 suppliers

• Identify opportunities for RapidQure in the aerospace & defence sectors

• Consider manufacturing of parts in-house outside Australia

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Quickstep Automotive – Hawkei

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» Letter of Intent to provide bonnet, side skirts and mud guards for Thales Australia’s Hawkei protected mobility vehicle

– Government sourcing decision expected in FY16

– Initial deliveries expected in FY16

» First contract utilising Quickstep's automotive RST lay-up technology

– Potential order value in excess of A$8 million

» Design activity underway jointly with Thales for pilot build in mid-FY16

– Manufacturing plans developed for volume production

» Fulfilment will increase credibility for securing further contracts with automotive manufacturers

Thales’ Hawkei protection vehicle and demonstration Quickstep part

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Quickstep Automotive – Global OEM Contract

» Quickstep has secured its first contract with a global automotive original equipment manufacturer

» Will make components for a low-volume, high-performance vehicle

» Niche volume order for about 1,000 components, plus spare parts

– Start of production expected in early FY16

– Production likely to be the first commercial activity at Quickstep’s new automotive facility near Geelong, Victoria

» Opportunities to sell additional parts

– Parts could be sold through OEM dealerships

» Demonstrates Quickstep’s serial production capabilities

» Contract represents Quickstep’s first automotive part opportunity

– Potential for future growth opportunities with existing and additional OEMs

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Quickstep Automotive - PRESCHE Project

» German-government funded PRESCHE Project undertaken with Audi and other partners has provided a high-quality outcome for Quickstep

– Commenced Nov 2011, completed June 2015

» Confirmed ability of Quickstep’s Qure and RST processes to manufacture parts more efficiently than traditional process in niche volumes

– Confirms ability to produce paintable Class A surface parts at lower cost for volumes under 10,000 parts p.a.

» Involved manufacturing Audi A1 sedan roof using Quickstep’s RST & Qure processes

– Increased Quickstep’s knowledge in carbon fibre pre-forming and resin optimisation

– Expertise developed in working with German suppliers to improve performance

» Validates Quickstep’s strategy to focus on niche volume contracts in FY16; increases opportunities to supply global customers

Demonstrator Roof Assembly produced for Audi A1 sedan

The project underlying this publication was funded by the Federal Ministry of Education and Research of Germany under grant number 02PJ2050 and supervised by the Projektträger Karlsruhe (PTKA). The responsibility for the contents of this publication is with the author

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© Copyright 2015. Quickstep Holdings. All Rights Reserved.

» A$1.76m GRIIF grant awarded to Quickstep in FY15

– Helps establish automotive division at Deakin University’s Waurn Ponds campus

– Quickstep will commission pilot RST production and Qure process equipment

» Waurn Ponds facility fit-out to be completed in Q2 FY16

– First manufacturing contract expected to go into production in mid-FY16

» Focus on securing niche volume automotive projects

– Including composite seat structure and A-class panel projects

» Relocation of Quickstep’s Global R&D Centre to the Deakin campus

– Helps control Quickstep’s Intellectual Property

– Drives development of Qure and RST, and next generation RapidQure

– Will assist new fibre and resin projects to reduce manufacturing costs

Quickstep Automotive – Outlook

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Above: Quickstep’s Resin Spray Transfer (RST) automated lay-up cell

Quickstep’s new Automotive facility located at Deakin University’s Waurn Ponds campus

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ure Process

» ‘Out of Autoclave’ process for Aerospace/Defence as replacement for Autoclave

– Low-niche volume manufacturing of large flat panel components

– Also suitable for premium automotive applications

Rapid ure Process

» Future Qure process for Automotive capable of mass production

– Designed to achieve at least 50,000 parts p.a.

» Will provide an alternative to auto industry’s resin transfer moulding (RTM) and compression moulding

Quickstep – Process Technology Development

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Quickstep - Summary

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» Positioned for another year of record production in FY16

» Quickstep is delivering on all of its customer commitments

» Strong sales growth; targeting at least 20% aerospace manufacturing sales growth in FY16

» Focus on strengthening balance sheet – debt reduction underway

» Aerospace manufacturing operations expected to remain profitable in FY16

» Maximising the use of our capital assets to deliver optimised cash performance

» Quickstep Aerospace expected to complete the installation of its first Qure contract in FY16

» Quickstep Automotive has secured initial contracts and will commence production in FY16

» New fibre and resin developments delivering improved cost performance; supports our mass production strategy

» New projects across all of our divisions are being quoted and negotiated

» Significant opportunity for Quickstep to become a global leader in advanced composites manufacturing solutions

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