Quickstep : Annual General Meeting Presentation and Chair's Address

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ASX Release: Thursday 18 November 2021

Annual General Meeting Presentation and Chair's Address

The annual general meeting of Quickstep Holdings Limited (ASX:QHL) (Company) will be held today using a webcasting facility, commencing at 2.00pm (AEDT). Please see the Company's Notice of Annual General Meeting (released to ASX on 15 October 2021) for instructions to join the meeting.

Attached is the Chair's Address and the Presentation to be given at the meeting.

Authorised by and for further information:

Mark Burgess - Managing Director

Quickstep Holdings Limited

Telephone: [phone]

1. [e-mail]

Forward looking statements

This release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements of the Company to be materially different from those expressed or implied in this release including, amongst others, changes in general economic and business conditions, regulatory environment, exchange rates, results of advertising and sales activities, competition, and the availability of resources. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release. Except as required by law, the Company assumes no obligation to update or correct the information in this release. To the maximum extent permitted by law, the Company and its subsidiaries and officers do not make any representation or warranty as to the likelihood of fulfilment of any forward-looking statements and disclaim responsibility and liability for any forward-looking statements or other information in this release.

Principal address: 361 Milperra Road	Tel: [phone]	ASX Code: QHL
Bankstown Airport NSW 2200	Fax: [phone]
www.quickstep.com.au	Email: [e-mail]

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QUICKSTEP HOLDINGS LIMITED

2021 AGM CHAIRMAN'S ADDRESS

Thursday, 18 November 2021

The 2021 financial year was a challenging time for business, and I am very proud of the resilience shown by Quickstep in the face of the many challenges thrown up by the COVID pandemic. Not only did Quickstep manage to grow its revenue through this pandemic, contrary to the experience of many other businesses in the aerospace industry, but we did this safely. Our first priority was to provide a safe work environment for our employees and the many layers of protocols that the company adopted delivered this, while keeping our factories open and production running. The pandemic also threw up challenges within our global supply chain as both air and sea freight were severely disrupted. Despite these difficulties, the business kept both the raw materials flowing into our factories and the finished goods flowing out to our customer base. I would like to congratulate every employee in the company for these achievements and thank them for their cooperation and efforts during the year.

As indicated in the annual report, the business had a good year and while there were some disappointments such as the impairment of the flare housing facility after not being awarded any F35 flare housing work, overall the positive developments far outweighed the inevitable challenges that all businesses face from time to time. While Mark will give more detail of the operating performance of the business, I would like to acknowledge two facets of the FY21 results. Firstly, the very strong cash flow delivered during the year and secondly the growth in top line revenue while underlying profit remained stable; all achieved at a time when many organisations in the aerospace industry were struggling. This bodes well for the company as the aerospace industry inevitably bounces back post pandemic.

I have now been a director of Quickstep for just under two years and chair for about a year, and the area that I am particularly pleased with is the company's development and implementation of its new strategy. This work started prior to my time on the board but is continuing to gain momentum.

The company has three clearly defined business segments.

Firstly, the traditional Quickstep aerostructures business. This is underpinned by the F35 and C130 work. This segment of the business has done the heavy lifting to ensure that Quickstep has had underlying profitability and been cash flow positive over the last few years while also demonstrating steady growth. This business has provided the funds for us to develop the other two legs of our strategy.

The second segment is the aerospace services business. As announced around the time of the last AGM, Quickstep reached an agreement to buy Boeing's maintenance, repair and overhaul (otherwise known as MRO) business at Tullamarine in Victoria. This acquisition completed in February 2021 and now operates under the Quickstep Aerospace Services (QAS) brand. Under the leadership of Tim Gent, who is a seasoned executive in Australia's commercial airlines industry, we have been working hard to capture the MRO opportunities presented by the reopening of the commercial airlines. So far, we are pleased with the progress made and we have won more ad-hoc work than we had initially anticipated at this stage. In line with our expectations during the integration, in FY21 this business was a net cost to Quickstep. The business development work for this unique independent capability in Australia will continue.

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The third segment and most recently announced leg of Quickstep's businesses is the applied technology business. As Mark will discuss, under our new Quickstep Advanced Air Mobility brand (QAAM), we have been particularly active in the unmanned or drone space and have announced a variety of agreements and arrangements (including two seed investments) in this potentially vast and fast-growing market. The manufacturing agreement with Swoop Aero should see product starting to be delivered early in calendar year 2022. Quickstep is increasingly being recognised as a player in the advanced air mobility market.

In my view the Quickstep strategy is a good blend of a traditional aerostructures business line that is providing the company with a predictable, growing business with underlying profitability, together with longer term growth potential through our other two business streams.

As I indicated last year, the company is fortunate to have a very capable management team led by Mark Burgess. The combined experience and capability of this team has been instrumental in getting the company thus far and the team is now actively engaged in the delivery of the current strategy. I would like to thank our previous CFO Alan Tilley who left Quickstep in October and welcome our new CFO, Stephen Gaffney, who joined the company last month.

I would also like to thank my fellow directors for their contribution, advice, and support.

Finally, as you would have seen in the notice of meeting, we are proposing a number of initiatives to modernise our constitution and to consolidate the number of Quickstep shares in circulation. While these are administrative initiatives, they are considered in line with good practice for an ASX listed company.

I will now move to the formal AGM proceedings.

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DISCLAIMER

This Presentation is provided by Quickstep Holdings Limited ("Quickstep" or the "Company") as a summary of the Company and its operations and for general information purposes only.

This presentation is not a disclosure document and should not be considered as investment advice or an offer or invitation to subscribe for or purchase any securities in Quickstep, or an inducement to make an offer or invitation with respect to such securities. This presentation should be read in conjunction with Quickstep's other ASX releases as available from time to time

This presentation does not purport to cover all relevant information about any potential investment in Quickstep. Accordingly, potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of any investment. This presentation must not be relied on to make an investment or other financial decision and recipients should conduct their own investigations, enquiries and analysis and place no reliance on this presentation in evaluating any potential investment.

To the maximum extent permitted by applicable laws, none of Quickstep or its related entities or their employees, officers or advisers makes any representation and none of them gives any assurance, guarantee or warranty, express or implied, as to, and none of them takes any responsibility or assumes liability (including in negligence) for the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions from, any information, statement or opinion contained in this presentation.

This presentation contains certain forward-looking statements which have not been based solely on historical facts but, rather, on Quickstep's current expectations about future events and on a number of assumptions which are subject to significant uncertainties and contingencies, many of which are outside the control of Quickstep and its directors, officers and advisors. Many factors could cause actual results, performance or achievements of the Company to be materially different from these forward looking statements including, amongst other things, changes in general economic and business conditions, regulatory environment, exchange rates, results of advertising and sales activities, competition, and the availability of resources and materials. Quickstep undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such statements or to keep current any of the information provided. Any estimates or projections as to events that may occur in the future (including projections of revenue, expense, net income and performance) are based upon the best judgement of Quickstep and there is no guarantee that any of these estimates or projections will be achieved. Actual results will vary from the projections and such variations may be material. Quickstep has no obligation to tell recipients if it becomes aware of any inaccuracy in or omission from the information in this presentation.

Other than for the pictures of the Quickstep facilities and machinery, the assets featured in the pictures in this presentation are not assets of the Company.

By accepting this presentation, you acknowledge and agree to be bound by each of the foregoing statements.

Financial Data

Investors should be aware that certain financial measures included in this presentation are 'non-IFRS financial information' under ASIC Regulatory Guide

1. 'Disclosing non-IFRS financial information' published by ASIC and also 'non-GAAP financial measures' within the meaning of Regulation G under the U.S. Securities Exchange Act of 1934, as amended, and are not recognised under Australian Accounting Standards (AAS) and International Financial Reporting Standards (IFRS). The non-IFRS financial information / non-GAAP financial measures include EBITDA and EBIT. The Company believes the non-IFRS financial information / non-GAAP measures provide useful information to users in measuring the financial performance and conditions of the Company. The non-IFRS financial information / non- GAAP financial measures do not have a standardised meaning prescribed by AAS or IFRS. Therefore, the non-IFRS financial information is not a measure of financial performance, liquidity or value under the IFRS and may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS financial information / non-GAAP financial measures included in this presentation.

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