Ann: Appendix 4C - quarterly, page-2

FBR Limited Quarterly Report | December 2018 Tuesday, 22 January 2019 – Robotic technology company FBR Limited (ASX:FBR) (‘FBR’ or ‘the Company’) is pleased to provide its quarterly update for the three months ending December 31, 2018. First full home structure built with Hadrian X; prospectus milestone achieved On 13 November 2018, FBR announced it had successfully demonstrated its robotic home building technology, Hadrian X, by building a 180m2, three-bedroom, two-bathroom home structure in less than three days. This achieved a major technical milestone set for the Company back in 2015. The structure was independently verified as meeting the relevant building standards by a civil and structural engineering consultancy group, and was later rendered in sections to demonstrate that the structure was of renderable quality for commercial use. The finished three-bedroom, two-bathroom structure built at FBR’s test facility with the Hadrian X in under three days Shortly after completion of the build, FBR hosted a team from Wienerberger AG, the largest clay block manufacturer in the world, to discuss the progress of the Hadrian X and the path forward for commercialisation. 2 FBR Limited (ASX:FBR) | ABN 58 090 000 276 +618 9380 0240 | www.fbr.com.au 122 Sultana Road West, High Wycombe, Western Australia 6057 CTO Mark Pivac with Wienerberger AG representatives Alexander Lehmden, Head of Product Management Wall Clay Building Materials Europe and Sebastian van Droogenbroeck, Head of International Product Management Façade testing a Wienerberger porotherm block in the Hadrian X’s gripper First Hadrian X outdoor test builds commenced Subsequent to the end of the December quarter, the first Hadrian X returned to FBR’s High Wycombe facility and commenced outdoor testing, with a small structure completed as part of initial testwork. The Hadrian X will soon commence building a full home structure outdoors on the High Wycombe site, which will again consist of three bedrooms and two bathrooms, but will be a more complex design than its previous build to provide a greater demonstration of the Hadrian X capabilities as it progresses through the testing regime. Home structure completion work will be incorporated into this test and demonstration including rendering, brick veneer, roofing, roof ties, window and door frame installation, MEP (mechanical, electrical, plumbing), ports, dry wall and wet finishing of internal walls. 3 FBR Limited (ASX:FBR) | ABN 58 090 000 276 +618 9380 0240 | www.fbr.com.au 122 Sultana Road West, High Wycombe, Western Australia 6057 The building of an ‘F’ structure in progress. The two-course F structure comprises every block configuration and combination required for the build of a full home structure. Second Hadrian X commissioning underway Testing and commissioning of FBR’s second Hadrian X is progressing well, with indoor test builds to commence shortly. This second Hadrian X machine will initially build small structures indoors before progressing to full home structures outdoors in readiness for the construction of the first commercial homes on residential sites later this year. 4 FBR Limited (ASX:FBR) | ABN 58 090 000 276 +618 9380 0240 | www.fbr.com.au 122 Sultana Road West, High Wycombe, Western Australia 6057 The second Hadrian X is drawing closer to its first indoor test builds as commissioning progresses Wall as a Service™ business model unveiled; Memorandum of Understanding with Caterpillar discontinued by mutual agreement On 3 December 2018, FBR released a new investor presentation which outlined the Company’s proposed business model of Wall as a Service™, or WaaS™, for the first time. The WaaS™ model is based on partnering with large brick and block manufacturers to scale the global rollout of Hadrian X robots by leveraging their existing customers, infrastructure and market share. FBR’s strategic relationship with Wienerberger, the largest clay brick and block manufacturer in the world, is significant for this reason. After extensive discussions with builders and brick makers, it was determined that they would prefer a model where walls can be provided by an expert on demand rather than adding new elements to their businesses to own, operate and service robots. FBR intends to introduce the Hadrian X to its target markets as quickly and effectively as possible, and rather than wait for industry players to purchase robots up front, train operators and build contract robotic bricklaying businesses from the ground up, FBR’s research and analysis indicates that offering WaaS™ is the best, most value adding and fastest path to commercialisation. FBR will not only retain full control of its IP under this model, but will also manage the people operating Hadrian X robots to ensure that the introduction of this leading technology is smooth and efficient. Further, WaaS™ offers the potential for significantly higher and longer-term income than royalties 5 FBR Limited (ASX:FBR) | ABN 58 090 000 276 +618 9380 0240 | www.fbr.com.au 122 Sultana Road West, High Wycombe, Western Australia 6057 from machine sales, and could scale at a much faster rate than traditional OEM-based machine sales to isolated end users. Both FBR and Caterpillar acknowledged that despite the dissolution of the MOU, the companies remain open to possible future business opportunities together. FBR is now focused on completing outdoor test and demonstration builds with the Hadrian X robots at its High Wycombe facility. It is expected that this will be followed by the commencement of construction of homes under commercial contract in Australia later this year as envisaged in the second milestone disclosed in the 2015 prospectus.