AGM Presentation and Chair's Address

• Optimising core Structures business and exiting loss-making MRO business
• Negotiated stable demand with customers and enhanced Structures profitability
• Received takeover approach from ASDAM, Board evaluating options

Quickstep Holdings Ltd (ASX: QHL) has presented an update at its Annual General Meeting, outlining the significant changes the company has undergone in the last 6 months. The company has adopted a sharpened strategy to return to improved profitability and strong cashflow, initially focused on optimising the existing Structures business and exiting the loss-making MRO business. The company has negotiated a level demand scenario with its customers, redesigned its production processes to accommodate lower demand while enhancing the profitability of the Structures business. This has resulted in a 14% drop in revenue from continuing operations in Q1 FY25, but a 78% increase in EBITDA. The company has also successfully negotiated price increases with some customers, which will progressively take effect over the next 6 months. The MRO business based in Victoria was shut down at the end of October due to significant losses. Quickstep has recently received a takeover approach from ASDAM, an Australian private equity owned defence conglomerate, and the Board is evaluating this offer, as well as any future offers, to determine the best outcome for shareholders.

The company expects the strong profit performance in its core Structures business to continue over the 2025 financial year, with Q2 FY25 expected to be weaker than Q1 due to a slow scheduled delivery month in November and the seasonal Christmas effect in December. Profitability is then expected to accelerate appreciably in the second half of FY25 as the new operating systems settle down and the price increases take effect.

Quickstep is currently heavily involved in several Australian-focused growth initiatives, including the Australian Defence Guided Weapons Explosive Ordnance (GWEO) initiative, which is continuing at pace. The company is also exploring growth opportunities in new and adjacent sectors such as air mobility and space engineering.