Ann: An update from the Executive Chairman, page-41

I went to the AGM today and had the opportunity of talking to Ross about the business and how he sees it unfolding over the next few months.

Some observations: -

He is genuinely excited about the prospects of the Avonics business, formerly the Eagle Audio acquisition. It's performing above expectations currently and we may need to revise upwards our expectation of its contribution to revenues and EBITDA.

The CVM testing is going on and on as we all know. What we don't appreciate is the extent to which the MAX 3 disaster has led to a heightened need for testing, testing and more testing because of the backside covering that's been going on in the Boeing / FAA world. These are "engineering' led organisations and we are, whether we like it or not, victims of the more scrupulous testing regime. It will play out to our advantage in the longer term. I know it's incredibly frustrating to have expectations of timelines not met, but there's nothing we (SMN) can do about it. Sit quietly and have faith.

Once the APB testing is approved, don't assume the share price is going to rocket upwards. It won't move to the extent you'd like it to. Share price growth will be in lock-step with the overall business, across the 3 sectors.

Consideration is being given to extending the term of the current April 2024 options, as it is clear that they're not going to be in the money.

Any further capital raisings will give greater consideration to favourable terms for retail investors. Even though he said he doesn't read HC, he clearly knew the extent of disquiet here about the inequity of some of their CR practices.

Consolidating the business in Kelowna has been highly advantageous to SMN as the region is fast developing into an Avionics hub of global significance.

The company is in much better hands under Ross' stewardship than the bad old days with TC, MR, BM and others who have used it for their own financial gain. But chances are it's not going to be the financial windfall that a lot of us are hoping for.

Have trust that there is a good solid business there that can make the skies a safer place to travel.