AML3D : AGM Addresses

ASX Release

19 November 2021

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2021 ANNUAL GENERAL MEETING

ADDRESSES

AML3D Limited (ASX: AL3) ("AML3D" or "the Company") is pleased to provide a copy of the Chairman's and Managing Director's Addresses to be given at AML3D's Annual General Meeting on 19 November 2021.

This announcement has been authorised for release by the Board of AML3D.

For further information, please contact:
Andrew Sales	Hamish McEwin
Managing Director	Chief Financial Officer
AML3D Limited	AML3D Limited
T: [phone]	T: [phone]
E:[e-mail]	E:[e-mail]

About AML3D Limited

AML3D Limited, a publicly listed technology company founded in 2014, utilises new technologies to pioneer and lead metal additive manufacturing globally. Disrupting the traditional manufacturing space, AML3D has developed and patented a Wire Additive Manufacturing (WAM®) process that metal 3D prints commercial, large-scale parts for Aerospace, Defence, Maritime, Manufacturing, Mining and Oil & Gas. AML3D provides parts contract manufacturing from its Technology Centre in Adelaide, Australia, and is the OEM of ARCEMY®, an industrial metal 3D printing system that combines IIoT and Industry 4.0 to enable manufacturers to become globally competitive.

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AML3D Limited 2021 Annual General Meeting

CHAIRMAN'S ADDRESS

Good morning ladies and gentlemen.

My name is Sean Ebert and I am Interim Chairman of AML3D Limited. I will be chairing this second Annual General Meeting of AML3D today.

Given the ongoing health concerns attributed to the COVID-19 pandemic, and in addition to guidelines and restrictions issued by Australian state and federal governments, we are holding this AGM as a virtual meeting, in a manner that is consistent with current legislation.

As it is now 10:30 am and the Company Secretary has confirmed that a quorum is present. I now declare the meeting open. I confirm that the meeting has been properly constituted.

Firstly I would like to address the announcement made yesterday concerning the resignation of two directors from our Board: Stephen Gerlach and Kevin Reid. The Board thanks both Stephen and Kevin for their significant contributions to AML3D since prior to the Company's initial ASX listing.

Subsequent to these Board changes, the Board has met and elected me as Interim Chair of the Board.

I would now like to introduce the Board of AML3D, present here today. I am joined by:

• Andrew Sales, Managing Director; and
• Len Piro, Non-executive Director;

We are also joined by our Company Secretary, Christine Manuel.

Also present is Matthew King, representing our Auditor, William Buck.

No apologies have been received for today's meeting.

Formalities

Before we review the 2021 financial year and commence the formal proceedings, I will outline the agenda for this morning.

Apart from the virtual nature of the AGM, our approach will be as per normal AGMs.

I will begin with a brief overview address, which will be followed by the Managing Director's address.

After these addresses we will proceed to the formal business and the resolutions to be considered by shareholders at today's AGM. As announced yesterday, resolution 2, relating to the re-election of Stephen Gerlach, has been withdrawn as it is no longer relevant.

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COVID-19

Before I start with my address, I think it would be remiss of me not to mention the ongoing COVID-19 pandemic and the impact it continues to have on our business.

We have been lucky here in South Australia in that we have had minimal lockdowns. With international and domestic borders closed to most jurisdictions throughout last year, AML3D was heavily restricted in its ability to get potential customers to our facility to demonstrate our capabilities.

We are however very thankful that we have not recorded any cases internally, with a number of measures adopted such as staff working from home, regular testing and strict enforcement of social distancing in the workplace.

So, we very much look forward to the opening of borders which will allow us to get back to the normal course of business and pursue our aggressive growth strategy.

Now that I have provided some context to the challenging year that was, I will begin with a quick recap of the AML3D strategic planning process and outcomes.

AML3D Strategic Plan

Our goal at AML3D is to become a leading diversified large-scale 3D metal printing company by commercialising our proprietary WAM® process. For those that have not seen this acronym before, WAM® stands for Wireless Additive Manufacturing, a process which builds objects via sequential layering of metal.

The WAM® process combines welding science, robotics, metallurgy and software to produce automated wire fed 3D printing in a large freeform environment.

The strategic planning process has provided AML3D and its staff, with a clear understanding of what we are as a company, and where it is we want to go.

Our Vision is simple but to the point. "We utilise new technologies to pioneer and lead metal additive manufacturing globally". We believe our technology is unique and will continue to differentiate ourselves from our competition to drive new business moving forward, not just here in Australia but in targeted markets abroad.

Our mission is two-fold "We partner with our clients to enable them to become globally competitive" and "We do this by helping them establish industry 4.0 capability through our additive manufacturing solutions using IOT Technology". We are already delivering on our mission. We have partnered with a number of customers to improve their capability with our Arcemy® units. These units, and the technology that drives them, help to showcase our offering to a broader audience and market of end users looking for high quality 3D printed products.

However, it is our values that will shape our organisation, and ensure we have the right culture to deliver on our strategic objectives. These have been identified as "Integrity, Collaborative, Can Do, Team Focused, Creative". They are simple and self-explanatory but equally important in the forging of a successful business that will deliver what we expect will be market beating shareholder returns over time.

Multiple Business Streams

Many of you will be familiar with this slide, however, it is always worth reinforcing the four key business streams that drive AML3D.

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Three of these streams are the key to driving revenue, they are Contract Manufacturing, Arcemy® unit sales and WAMsoft® licensing, with the fourth stream, Research and Technology, arguably the most important stream that will keep AML3D ahead of its competition.

We anticipate that contract manufacturing, which is mainly the customised production of specialised parts, will be an ongoing stable source of revenue that will comfortably fund the underlying business.

Arcemy sales are the sales of the Arcemy® units to external third parties. Last year we sold 1 unit with a further 4 now on pre-order. We anticipate that this revenue stream could be our largest moving forward.

From these Arcemy® unit sales we will generate annual service fees for training, software updates and the provision of AML3D staff, as well as ongoing maintenance of the Arcemy® units to ensure continual improvement is applied to the welding technology.

And finally, Research and Technology. While not directly delivering revenue, Research and Technology is the key business stream that will keep us ahead of our competition as we look to continue our delivery of superior manufactured products to the market.

It is pleasing to see that, for an early-stage technology company such as ours, we continue to build revenue momentum as we grow our customer base.

Revenue for the last financial year was $644,000, which is an increase of 123% on FY20. This revenue growth has continued in the first quarter of FY22, with revenue up by 79% on the first quarter of last year.

Based on the advanced state of prototype testing with key customers, Covid restrictions being eased, and purchase orders for further Arcemy® unit sales in place, we expect revenue growth in FY22 to improve further on what was achieved last year.

Customer Journey

This slide focuses on the key milestones that need to be satisfied before material long-term contracts are signed, and shows that securing these contracts can and do take time.

Obviously not all customer requirements and needs are the same, however, we estimate that it will take at least six months and up to two years until a long-term recurring contract revenues for the printing of bespoke parts with key customers is executed.

Having said that, we are well along the road with some of our existing customers on this journey.

Most of these milestones, are self-explanatory. One of the main things I want to get across is that once we have engaged a customer, we drive the majority of the process up until the contract stage. We have delivered a number of prototypes that have been tested and proven as superior to traditional forging and casting as well as those manufactured by powder additive technology.

However, with the proof in testing confirmed, it is then the customer that drives the execution of a long-term contract. We are certainly pushing very hard to get to this stage and I am pleased to say we are extremely close on a number of these.

While we are not using COVID-19 as an excuse, the restrictions placed on our business as a result of the pandemic has eliminated our ability to meet with customers face to face outside of South Australia. Therefore, it goes without saying that we are very much looking forward to state and international borders opening back up again.

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Market Opportunity

The size of the market for additive manufacturing in the years to come is massive. The market size is estimated at US$10 billion and expected to grow to US$35 billion by 2024.

With our reputation growing in the market and our customer pipeline building, I firmly believe that we are perfectly placed to expand our business once the world gets comfortable living with COVID-19.

We only need a small slice of this exponentially growing additive manufacturing market to grow our market cap materially.

And this growth will be underpinned by the patents we now have in place in most of our key markets, our technology constantly evolving and improving, and the excellent internal capability that has been built within our management, technical and marketing teams.

Peer Comparisons

When we look at AML3D against our peer group, there is an obvious delta between our enterprise value and the amount of customer receipts being generated.

AML3D is performing at a much higher level in terms of customer receipts yet this is not reflected in the current share price.

Our growth in revenue is expected to grow materially over the coming years.

This revenue is expected from all of our key revenue streams, with a key focus on locking in long-term product contracts with our key customers.

This coupled with the constant evolution of our technology makes for a compelling investment opportunity.

Foundations for success and returns in place

So we now have all the key ingredients in place for success.

We have had some changes to our management team, particularly with the appointment of Hamish McEwin as our CFO and further strengthening of our senior management team is under consideration.

We have proven that our Arcemy® units and the specialised printed products they manufacture are stronger and better products than those from traditional casting and forging, and that they are a much greener alternative.

Our ability to innovate to stay ahead of our competitors is "best in class", and with an outstanding culture focused on teamwork and inclusiveness, we are well positioned to start delivering sustainable shareholder returns.

Acknowledgements

Before I hand over to Andrew, I would like to thank my fellow Board members including Stephen Gerlach and Kevin Reid for the wide-ranging skills and expertise they have brought to AML3D, and their support and input throughout this very challenging year.

To have navigated our way through the challenges of COVID-19, a great deal of recognition must be given to our management team and staff, who have demonstrated resilience and dedication to the business over this trying period. Much thanks to all.

Finally, to you, our shareholders, thank you for investing in AML3D. Your Board and management team will continue to push the Company aggressively towards securing multiple

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