Ann: XTEK Investor Presentation of June 2016-XTE.AX, page-2

A quick reading of the June Investor Presentation finds good and not so good news for shareholders - while there is progress the bottom line payoff seems to be pushed back again.

For the first time XTE has put a number on the initial Land 129 Phase 4 UAS supply and support deal. Indicative but not yet confirmed revenues are up to $20m with potential for further sales. But, deliveries and so presumably revenues are now not expected until 2017/18. The FCT testing of XTclave armour is now expected to conclude in Q1 2016/17 which suggests another extension by the US DoD. Either the DoD is taking its time or they are finding the results of testing interesting. If the latter that should be hopeful. Also XTE has flagged a contract for tactical bomb response, forensics and Unmanned Vehicle equipment in the second half of 2016/17. I think this is the first mention of this as yet un-costed deal.

But that seems to be the end of the good news. XTE says a number of projects have been pushed into 2016/17 and 2018 impacting 2015/16 revenues. The second half result this year is expected to be about the same as the first so the full year will be a significant loss.

So it seems XTE continues to progress but we will have to wait a bit longer for that to show up in the bottom line.