Ann: Annual Report to Shareholders, page-3

Some key points to note : The drone industry is hotting up and QHL is positioning itself to benefit fully, remember the Carbonix JV.

Quickstep’s purchase of Boeing’s MRO (maintenance, repair & operations) facility in Tullamarine in early 2021 has positioned the
company well to service the resurgent airline industry. Our QAS business is rapidly gaining recognition in the aircraft industry, and we
were obviously delighted to win our first contract with Jetstar in FY22.

As we have previously reported, Quickstep has made seed investments in a couple of these
drone companies. More importantly, your company has already secured orders to build drones for the industry. This work will be
undertaken initially from our Geelong facility, but it is our expectation that we will quickly need to transition to a larger composites
manufacturing facility in Australia to accommodate expected future orders. Given our evolving reputation in this industry, Quickstep is
getting regular approaches from the global drone market ranging from relatively small data-focussed drones to very large drones in
the cargo segment. With much interest coming from the large USA market, Quickstep is in the process of evaluating opportunities and
ways to develop our drone capability in this key region.

The year saw continued progress across the Group with consistent performance on
core Aerostructures programs, including the negotiation of multi-year agreements
across all F-35 contracts, teaming on space programs and large cargo drones, as well as
extensive business development activity and customer proposals relating to the Guided
Weapons Enterprise. The Aerostructures business has experienced a significant
surge in the opportunity pipeline (primarily in the USA and Europe) and more resources
have been allocated to converting those opportunities into contracts.

During the year the continuing principal activities of the Group consisted of:
• production of parts for Northrop Grumman for the Joint Strike Fighter Project
• production of C-130J wing flaps for Lockheed Martin
• production of parts for the Joint Strike Fighter vertical tails for BAE Systems and Marand Precision Engineering
• manufacturing and development of parts using Qure technology
• maintenance, repair and overhaul of aircraft
• continued development of technologies for scaled volume production.
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Go QHL !!