Announcement PDF ASX:3DA ASX Announcement 18 November 2024 Investor Presentation …………………………………………………………………………………………………………… Amaero International Limited (ASX:3DA) (“Amaero” or the “Company”) is pleased to announce that it will participate in Additive Manufacturing Symposium to be hosted by Shaw and Partners. Hank Holland, Chairman and CEO, will present at 10:00am AEST on Tuesday, November 19. See Investor Presentation attached. About Amaero Amaero International Limited (ASX:3DA) is an ASX-listed company with manufacturing and corporate headquarters located in Tennessee, USA. Amaero is a leading U.S. domestic producer of high-value C103, refractory alloy, and titanium powders for additive and advanced manufacturing of components utilized by the defense, space, and aviation industries. The technical and manufacturing team brings decades of experience and know-how with pioneering work in gas atomization of refractory and titanium alloys. The Company has commissioned advanced gas atomization technology with an industry leading yield of AM powder. The Company is also a leader in PM-HIP (Powder Metallurgy Hot Isostatic Pressing) manufacturing of large, near-net-shape powder metallurgy parts with forged-equivalent material properties and microstructure for a variety of alloys. This announcement has been authorized for release by the Chairman and CEO. For further information, please contact: Amaero International Limited Hank J. Holland Chairman and CEO hank.holland@amaeroinc.com Media & Investor Enquiries Jane Morgan Director jm@janemorganmanagement.com.au For more information Follow us on X Subscribe on our YouTube Follow us on LinkedIn Subscribe to our mailing list to receive updates Visit our investor website: https://www.amaeroinc.com AMAERO INTERNATIONAL LIMITED (ASX:3DA) Shaw and Partners, Additive Manufacturing Symposium November 19, 2024 Important Notice and Disclaimer This presentation has been prepared by Amaero International Ltd (ACN 633 541 634) (“Amaero” or the “Company”) and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Amaero or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of Amaero or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. 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The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe any such restrictions. 1 Executive Summary Shift in Trump-elect Administration policy and macro trends to drive re-shoring and scaling of industrial base 1 President-Elect Trump Administration Policies The President-Elect is proposing priority policy initiatives to stimulate a U.S. manufacturing renaissance with the goal of Making More in America, by Americans, for America (and its most strategic allies) 2 New Industrial Revolution 3 Advanced Materials 4 Advanced Manufacturing The complex industrial base has a critical need to improve U.S. domestic supply chain resiliency and to scale manufacturing throughput Essential to withstand the extreme temperatures and harsh conditions inherent in next-generation technology and applications Enables iterative design-production cycle for more complex geometries and reduces buy-to-fly ratio Amaero is positioned to benefit from these thematic tailwinds 5 6 25 Who is Amaero Amaero’s capabilities address critical gaps in the additive and advanced manufacturing supply chain Amaero’s Mission and Milestones Amaero has established a first-mover advantage by investing capital to meet future demand. With pioneering experience and advanced technology, it’s positioned as the largest scale and most agile domestic producer of high-value refractory and specialty metal powders. 2 01 President-Elect Trump Administration Policies President-Elect Trump Administrative Policy Make more in America, by Americans, for America   Strengthen Industrial Base      America First [and our most strategic allies] Policy         Improve the resiliency and breadth of supply chain by expanding contracts with SMEs Promote creation of highly-skilled, highly-paid jobs through revitalization of small businesses Proposed reduction of corporate taxes and increase to R&D and capital investment incentives Reform cumbersome regulatory burden on small businesses Direct non-dilutive federal funding to small businesses, including SBIRs and federal contract awards  Invest in U.S. Small Businesses Prioritize U.S.-based manufacturing and supply chain in response to geopolitical tensions and the threat to national security Impose tariffs between 10-20% on imports to the U.S. and up to 60% on imports from China to support revival of American manufacturing Reduce reliance on Chinese imports; push to re-shore critical manufacturing and supply chain capabilities including critical minerals, advanced materials and advanced manufacturing Address threat to national security from lack of capacity for large castings and forgings Bolster U.S. defense capabilities and counter adversaries’ primacy capabilities such as hypersonics and intercontinental ballistic missiles Strengthen Indo-Pacific security through expansion of maritime and submarine industrial base, as well as regional alliances with Australia, South Korea and Japan Increase replenishment production capacity for missiles and munitions Accelerate RDT&E for cutting-edge research and advanced capabilities such as advanced materials and manufacturing technologies Reform acquisition and procurement, appropriations and contracting practices  Peace Through Strength Policy The U.S. is the global leader in innovation, though it’s manufacturing base has atrophied, creating critical gaps in the domestic supply chain Given the threat to national security, the U.S. is focused on improving resiliency and scalability of industrial production and supply chain After the past three decades of hollowing-out the domestic manufacturing sector, priority policy initiatives will incentivize creation of highly-skilled, high-paying manufacturing jobs Goal to attract foreign companies to relocate factories and jobs stateside Provide tax incentives and impose tariffs to incentivize an American manufacturing renaissance   ________________________ Source: Reuters, CNN, Manufacturing Dive, National Association of Manufacturers. 4 “Supply chains that have been biased in favor almost exclusively of efficiency and low-cost have to be shifted in favor of resilience…If China has a lock on supply chains relating to economic prosperity or our security, that’s a really bad thing.” – H.R. McMaster, Former National Security Advisor and Special Advisor to Amaero “In the face of geopolitical turbulence and strong economic headwinds, our priorities remain steadfast: supporting American leadership in aerospace and defense; igniting innovation and job creation; and strengthening our national security. Together, we will reach new heights.” – Eric Fanning, President and CEO of Aerospace Industries Association “The 2017 Tax Cuts and Jobs Act was ‘rocket fuel’ for manufacturers. The legislation increased wages, helped us hire and make tremendous investments in our businesses and communities, giving us the certainty we needed to kickstart the manufacturing resurgence we have seen in recent years. Efforts to modernize permitting processes, unleash American energy and relieve backlogs of pipeline projects helped make us energy independent and provide needed resources for allies around the world.” – Megan Tanel, President of National Association of Manufacturers 02 New Industrial Revolution U.S. Leads in Innovation, but Manufacturing has Atrophied Military and economic might isn’t sufficient without a robust U.S. domestic manufacturing capability. Logistics win wars. The Innovation Economy is Thriving in Defense and Space… …But the domestic manufacturing configuration lacks the flexibility required to scale throughput effectively Defense and Space VC Activity in the Last Decade 5,189 5,014 $47.3B Investors Deals Capital Invested Space Companies The federal government’s acquisition and procurement, appropriation and contracting process is antiquated. The incumbent process discourages private sector participation and scaling due to opaque demand signals, long contracting lead times and a lack of financial incentives When emerging Defense & Space companies design a product, they design the process to build just a few prototyping units. They test, evaluate and iterate the design and engineering. They incorporate vertical integration with modular production to accelerate production and to continue an iterative improvement process Investors We have migrated from an entrepreneurial, founder-focused industrial complex to a highly-concentrated, bureaucratic and oligopolistic industrial complex. Over 30 years, we’ve consolidated from 51 defense primes to 5, hollowed out our domestic supplychain capabilities and created point-of-failure vulnerabilities “If the U.S. carrier fleet went across the straight of Taiwan in a confrontation with China we’d deplete our entire stockpile of munitions in 3 days, and it would take 3 years to replace it” ________________________ Source: PitchBook, a16z podcast “Rebuilding America’s Industrial Backbone”, November 2024. 6 Domestic Manufacturing Throughput  The U.S. faces an unprecedented, massive buildup of Chinese defense supplies as domestic throughput slows  If the U.S were to go into conflict with China, essential munitions would be depleted within 8 days of engaging in high-intensity conflict with China  Russia produces 3x the amount of artillery rounds as the U.S. and Europe can collectively manufacture Replenishment time for U.S essential munition Munition Type Replenishment Time Ammunition 6 Months Javelin Antitank Missile 5.5 - 8 Years HIMARS Guided Rocket 2.5 - 3 Years Stinger Antiaircraft misslie 6.5 - 18 Years Commercial shipbuilding output by country Average gross tonnage of ships built per year from 2019–2023, in thousands China Race for Naval Dominance: Rise of Chinese Maritime Production  China now possesses the world’s largest maritime fighting force operating 234 warships followed by the US Navy’s 219  China’s production advantage is further reflected through its young fleet, with ~70% of Chinese warships launched after 2010 compared to only 25% of US Navy ships  Combined with shipbuilding costs reaching more than 4 times the world average, the sector’s output ultimately amounts to a fraction of one percent of the global total  Despite American manufacturing and technological dominance, US shipyards’ output has ranked 15th in the world ________________________ 7 Source: Center for Strategic and International Studies, UN Trade and Development, Congressional Research Service 26390 South Korea 18821 Japan 11869 Phillipines 651 Italy 535 United States 75 U.S shipbuilding output amounts to less than 0.2% of Chinese output National Defense Industrial Strategy The Number of Primes is Decreasing, Raising Resiliency Concerns GD Ft. Worth MEL Defense Systems 51  5 Decrease in Aerospace and Defense Prime Contractors since 1990 Sanders Associates Lockheed GE Aerospace Business Martin Marietta Gould (Ocean Systems) GD Space Systems Honeywell (E-Optics) Fairchild Weston Systems Loral Goodyear Aerospace BDM International Librascope LTV (Missile Business) IBM Federal Systems Union (Def. Electronics) Comsat Hughes Electronics Sat. Jeppesen Sanderson Hughes Helicopters McDonnell Douglas Boeing Argo Systems Litton Precision Gear Rockwell Intl-Aerospace Automatic Marine Sys Grp Allan Tec CAE Link Magnavox Electronics GD (Missile Business) Rediffusion Simulation Hughes Aircraft GM (Hughes Aircraft) Corporate Jets Raytheon E-Systems Chrysler Tech Airborne TI Defense Avondale Industries TASC PRC GI Defense Litton Industries Varian (Solid State Elec.) 90% of missiles come from three sources Sperry Marine (Storage) Grumman Northrop Vought Aircraft Westinghouse Defense SyScan Logeion Geodynamics Ryan Aeronautical Comptek Federal Data Steering Software Aerojet Newport News Shipping TRW Princess Technologies GTS Govt Systems NASCO Holdings Teladoc Vehicle Systems Bath Iron Works Cessna Aircraft Chrysler Defense General Dynamics Coridan’s Computing Defense & [???] Sys Advanced Tech Sys Gulf Stream Aerospace K-C Aviation Galaxy Aerospace Motorola Info Sys Crp 1985 1980 1990 1995 2000 …While the Domestic Manufacturing Base is Shrinking, Creating Urgent Defense Supply Chain Concerns Manufacturing as % of GDP of Industrialized Countries 7.1 Million Fewer people in US manufacturing jobs since 1979, a 36% decline in the industry’s workforce 1.9 Million Fewer people employed in Defense Industrial Base (DIB) companies since 1985, a ~64% reduction “ 27.5% 25.5% China Prime contractors lost sight of their own sub-tier supply chains and faced the risk of sourcing resources from potential adversaries…minor disruptions in the DoD’s supply chain can cause massive ripple-effect bottlenecks” – National Defense Industrial Strategy, DoD South Korea Japan Switzerland Germany Poland Austria Italy Finland India Sweden United States France United Kingdom ________________________ 8 Source: Center for Strategic & International Studies, Defense Technical Information Center, Deloitte. 20.9% 19.1% 18.9% 17.4% 16.9% 15.5% 14.7% 14.4% 13.2% 10.1% 9.0% 8.2% Small Businesses Are Essential to U.S. Domestic Industrial Base What Needs to Happen to Revitalize Defense Production?  Provide predictable and transparent demand signals to private industry  Streamline acquisition and procurement process to reduce contracting period; provide multi-year contracting  Reform cost-plus contracting to incentivize scaled capacity and on-time, on-budget performance The Market for Small Businesses is Substantial 25% of DoD prime contracts going to small businesses  Reform the regulatory environment to reduce burdens on small businesses  Incentivize the availability of growth capital to small businesses and provide government non-dilutive funding to scale manufacturing and supply chain capacity manufacturers with 700+ DoD under $100M in revenue  Incentivize and assist small businesses with work-force development and skills training  Improve collaboration and eliminate competition with federally-funded research and development centers (FFRDCs) by the DoD in $80B spent prime contracts to small businesses FY20–FY22 DoD recognizes that small businesses are the key to solving this problem, while creating both industrial and economic advantages for the U.S. U.S. GDP is 40%+ ofaccounted for by 30 million small businesses ________________________ Source: U.S. Department of Defense, NDIA Vital Signals. 9 03 Advanced Materials Advancement of High-Temperature Material Applications Benefits of High Temperature Materials Chemical Resistance Heat Resistance Ability to withstand extreme temperatures and harsh conditions Niobium Alloys Zirconium Alloys  C103 has decades of data in high-temperature, extreme environments  Zirconium has applications in nuclear reactors within nuclear power plants  Niobium C103 played an important role in the Apollo lunar landing; the engine nozzle of the Saturn V rocket, which landed humans on the moon  Zirconium alloys are used as cladding due to its corrosion resistance and low neutron cross section, which allows nuclear reactors to operate efficiently Apollo 11 Lunar Landing: Saturn V ________________________ Source: Statista, McKinsey, Deloitte, World Economic Forum. Durability Resistance to corrosion and chemical degradation at high temperatures   Nuclear Submarine; Refractory Metals & Alloys Molybdenum Alloys Tungsten / Rhenium Alloys Molybdenum is well known for its high melt temperature, but its relatively lower density and cost versus some other refractory metals increases its industrial use  Tungsten and Rhenium alloy create attractive materials with high strength, toughness and heat tolerance  Tungsten and Rhenium alloy are used for rocket nozzles, thermocouples in propulsion systems and thruster components Development alloys like TZM have higher performance vs. pure Molybdenum and have been used in rocket engine nozzle applications Molybdenum alloys 11 Long lifespans significantly reduce maintenance needs Tungsten / Rhenium applications, Advanced Refractory Metals Advanced Materials: C103 in Defense and Space Applications Novel uses of advanced materials & additive manufacturing address thermal protection and propulsion system issues Hypersonics Strategic Missiles • First- and second-stage rocket nozzles • First-, second-, and third-stage rocket nozzles • The hypersonics market is rapidly evolving in order to develop and field offensive and defensive capabilities • Reentry vehicles subjected to extreme environments as they travel back through the atmosphere • High-Temperature Materials Requirement Space Launch The U.S. is currently recapitalizing its ground-based strategic missile arsenal via the Sentinel program 12 • First- and second-stage rocket motor nozzles • C103 is wellestablished in this market for second-stage rocket motor nozzle extender applications Satellites • Thruster nozzles of satellites Demand Signal for HighTemperature Materials Estimated AM Powder Demand (Figures in Metric tonnes) 204 CAGR ’23E–’28E 15% 185 174 140 119 25% 100 Total Addressable Market FY2028(1) High-Temperature Material Demand 105 C103 Demand, Wrought and Powder C103 AM Powder US$370 million 73 49 10 14 2023E 2024E 26 2025E 2026E 2027E ________________________ Source: Estimated demand figures from Fairmont Consulting Group analysis, 23 January 2024. Note: Gov’t Fiscal Year Ending September 30. (1) Assumes an illustrative US$3,500 per kilogram of C103 AM Powder. 2028E 13 62% 04 Advanced Manufacturing Shortage of Domestic Casting and Forging  Market void exists for domestic casting and forging activities  U.S. DoD has prioritized casting and forging as one of four focus areas posing a pressing threat to national security  National investment into casting, forging and plate production Global Metal Casting Production is Dominated by Foreign Powers (million metric tons) China 52 India USA 10  5X more cast products than U.S.  More than next 9 countries combined Russia “ Germany Japan The materials in our weapons systems affect platform resilience, sustainability, and affordability…Castings and forgings are critical to achieving and maintaining the capabilities we need; however, the supply chain for cast and forge components for the Defense Industrial Base has shrunk by 80 percent.” – Dr. Matthew Draper, Technical Director of Metallurgy and Manufacturing, Office of the Under Secretary of Defense for Acquisition and Sustainment – Innovation Capability and Modernization Office ________________________ Source: Statista. 15 Mexico Brazil Italy 0 10 20 30 40 50 60 Additive & Advanced Manufacturing  Additive Manufacturing (AM) addresses critical requirements that are key in aerospace and defense:  Reduced buy-to-fly ratio  Reduced time to production  More complex geometries  Low-volume, high-value  Improve material properties  Rapid prototyping  U.S. DoD’s additive manufacturing aims to advance TRL and MRL such that AM can be fully adopted and integrated in the defense production and MRO ecosystem “ Additive manufacturing offers DoD unprecedented supply chain agility while enabling our developers to sustain technological dominance for our Warfighters.” – Robert Gold, Director of the Technology and Manufacturing Industrial Base 16 ________________________ Note: TRL – Technical Readiness Level. MRL – Manufacturing Readiness Level. MRO – Maintenance Repair and Operations. Additive & Advanced Manufacturing (Cont.) The Casting & Forging Problem  Given the domestic lack of resiliency and scalability, the U.S. faces supply chain challenges for components that require large casting and forgings scalability and forge-like material properties  Demand for maintenance, repair and operations (MRO) shops are increasing the strain PM-HIP as a Solution  PM-HIP manufacturing processes involve fabricating pre-formed, hollow molds for largescale components and fi