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23rd October 2012

AUSTRALIAN STOCK EXCHANGE LIMITED

Electronic Lodgement

PRESENTATIONS TO BE DELIVERED AT THE 2012 AGM

Appended are copies of the Chairman’s Address and the CEO’s and CFO’s presentations to be delivered to Shareholders at the Company’s 2012 Annual General Meeting to be held at 10.00am today.

Yours faithfully

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Clare Madelin Company Secretary

TAF-019 Rev.04

23 October 2012

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Chairman address to the 2012 Annual General Meeting

Good morning

My name is David Humann and I am the Chairman of this meeting and of your board of Directors.

I am advised that a quorum is present and therefore take pleasure in declaring this meeting open.

I should like to welcome all of you to our 2012 Annual General Meeting of Shareholders. I encourage you to participate in the meeting during the times allocated for questions.

I will now introduce my colleagues on the board.

• Mr Ken Johnsen – Our Chief Executive Officer and Managing Director

• Mr David Slack – a major investor in the company and a leading fund manager, and

• Professor Malcolm Richmond – who has a wide ranging experience in engineering and business management

I should also like to introduce to you Ms Clare Madelin, our Chief Financial Officer and Company Secretary.

Our independent auditors, Moore Stephens, are represented here today by Mr Suan Lee Tan and Mr Neil Pace partners in that firm.

Should you have any questions concerning audit, please address these to me and I will ask Suan to respond.

We are also pleased to welcome Mr Nino Odorisio, a partner at Q Legal, our solicitors, who is here at our invitation.

Our Board has been very active during this year and has the role of overseeing the good governance of your company in an efficient and effective manner.

We have amongst us a wide range of skills and experience which enables the Board to fully understand our business and to be active in advising management on the opportunities available for our success. We also oversee the development of the human and financial resources required to execute our strategy and to achieve our strategic goals.

I encourage you to stay on after the formalities of the meeting are completed. This is a once in a year opportunity to meet our key executives and staff and an opportunity to look around the workshop and warehouse.

BUSINESS: I will now present my address and then we’ll move through the statutory business of the meeting following which Ken Johnsen will provide you with an update in relation to the current activities of the Company. Clare Madelin will then present the financial results.

I should like to begin by thanking all of the staff of Advanced Braking for their exceptional efforts during the year under review. We produced an excellent result this year from every point of view.

Over the last 6 years we have achieved a market capitalisation of $20 million and have increased revenue by a spectacular 400% to $8 million. We have reversed the loss making performance of the Company. Up until 2006 previous boards and management had accumulated losses totalling $30 million.

In my view, despite recent warnings of growth in the mining sector, the gloomy comments in the press do not take account of the huge investment which has already taken place in the mining industry in Australia and elsewhere, particularly in iron ore. The committed funding for further mine expansion will ensure continuing strong growth over time, and the production volume increases will underpin the market for our mining products.

Another very important factor in improving the Australian and US economies is the expansion of oil and gas production. The wealth created in these industries will have at least an indirect benefit for our Company.

Over the year we have invested heavily, both in time and in cash, in the “company making” Garbage Truck product . The Garbage Truck product is a near term reality. Intensive testing is underway, as is our continuing engineering review. We continue to focus on finalising our supply chain for components in Thailand and in developing our marketing plans.

A significant cross section of potential customers have been engaged by our senior management and considerable publicity for the product has been carried out by our CEO, Ken Johnsen and operations manager, Sam Leighton. We have a marketing team, which will include senior executives, dedicated to the Garbage Truck Brake marketing and sales. Their appointment will be matched with the revenue derived from readying the final saleable product for the market.

Our plan is to achieve Garbage Truck Brake sales in the current financial year. Looking forward, if the Company achieves a 25% market share of just the Australian market by 2017, we will be generating about $60 million revenue a year. We expect to realise a very satisfactory gross margin and net contribution to profits from these sales.

We achieved substantial improvements to our SIBS production, engineering, sales, marketing and financial systems. This has achieved a higher quality product and greater customer satisfaction.

I note that in the recent independent ISO audit of our quality control systems we received a clear report and a no faults commendation.

This is particularly important where the nature and use of our braking products requires the highest possible safety performance.

As I stated earlier, a huge effort is being expended to finalise our Garbage Truck Brake development programme and to put the Company in a position to deploy the Garbage Truck Brake to the very large market, which our research tells us does exist.

Because the brakes will be used on heavy frequently stopping and starting vehicles, which operate on city and suburban roads, often at peak traffic hours, we must be more than confident that the brakes

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are safe. These high level safety standards of course apply equally to our SIBS braking systems which are mainly supplied to the mining industry.

Our thorough design and dynamometer and road testing under a wide range of conditions have proven our Garbage Truck brakes are safe under test and on road conditions, but more work on-road still needs to be done.

Mining vehicles operate in a secure and strictly controlled environment. Vehicles braked by the Garbage Truck Brake product will operate on public roads where there is a far less disciplined environment, hence our time consuming, but necessarily stringent test programmes.

Our customers will demand a high quality, reliable and long lasting brake which will deliver the customer silent operation, no fade, low wear and nil harmful emissions of any form of dust particles or gas fumes.

We believe our intensive preparations, excellent design, high quality castings and other components and strong customer training in correct installation, operating procedures and ongoing servicing of the brakes will result in the Company being able to access over time, a significant global market.

Our customers form a tight knit group and any sense of instability in the company, or faults in our manufactured products, will be instantly communicated within the market. Hence, our thorough “best of industry practice” preparation.

The whole roll out programme will be complex and will take time. We will continue to keep the market informed of our progress.

We believe the Garbage Truck Brake will prove to be a significant competitive advantage to our customers who will enjoy lower costs, safer operations and greater productivity through greater operating reliability and fewer out of service hours. The Garage Truck Brake will give us a competitive edge and should lead to contract customers being able to make winning bids at good margins.

As I said in my letter to shareholders in the Annual Report I believe that the Garbage Truck Brake is a " company making product " with unlimited potential.

Ken will refer to the Garbage Truck Brake project in detail in his presentation today.

We will of course continue to pursue a wide range of customer and application opportunities for our SIBS range of braking products. SIBS has been our life blood for many years and our customers have strong continuing and expanding businesses.

Our mining products are mainly supplied to the mining industry in Australia, Canada and the Republic of South Africa. There are also some other applications in the construction industry. For example, cement trucks.

While, as stated earlier, some commentators warn of the " end of the mining boom" the fact is that minerals and mineral products are an essential part of the manufacturing and processing industries worldwide. The installed capacity in mines and mining infrastructure is very large and in Australia at least, there is a large pipeline of committed new projects and extensions to existing capacity . Accordingly, we have great confidence in a strong future for SIBS.

Your Company continues to benefit from various substantial grants from the Commonwealth Government for which we are very grateful.

In summary, from a financial point of view, we have a strong balance sheet, minimal debt, growing sales and strong potential for rapid sales growth in an environment where our markets prospering.

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A final word on our people:

In particular I acknowledge our CEO, Ken Johnsen , who must traverse and oversee a very wide spectrum of functions involving all aspects of the operations of the Company.

These duties include; investor relations, marketing and customer contact, compliance of the company with the myriad of regulations applicable to every aspect of our operations. They extend beyond this to technical development, physical procurement, manufacture and assembly, order execution and delivery of our finished products to our customers. In addition to this add inventory control, management of receivables and the overall funding of the capital requirements of the business.

Ken is supported by all of our staff who have all contributed to the ongoing success of the Company to the very best of their ability. Our people include Sam Leighton, general manager of operations, Clare Madelin, finance and accounting, Mick Sheehan, Thailand procurement and manufacturing, Stephen Wilkinson, Australian sales, and Martin Johnson, engineering including the vital Garbage Truck Brakes, an innovative garbage truck braking system.

It is good to see so many of our staff at this meeting today. Please try and meet them after the formal part of the meeting is finished.

We have now the best team in the history of the Company and are now building a strong future with them and for the Company.

I conclude by thanking the Board, management and staff for their support and our investors for their loyalty and continuing interest.

David Humann Chairman

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Annual General Meeting Presentation 23[rd] October 2012 Advanced Braking Technology | Microcap Conference Presentation

1. Chairman’s Address

2. Formal Business

3. CEO’s Report

4. CFO’s Report

5. Questions and Answers

Advanced Braking Technology | Microcap Conference Presentation

Mr David Humann Chairman

Advanced Braking Technology | Microcap Conference Presentation

Formal Business

Advanced Braking Technology | Microcap Conference Presentation

Accounts and Reports – receive and consider the financial report and the reports of the Directors and of the Auditor for the financial year ended 30 June 2012

PROXIES RECEIVED

POLL (if required)

Advanced Braking Technology | Microcap Conference Presentation

Mr Ken Johnsen Chief Executive Officer

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Key milestones delivered in 2012

Mining

• Expand SIBS II features to all mining products

• Expand product range

Mining

• → Transition to the improved SIBS[®] II version of the light commercial vehicle brake across various Landcruiser models

• → Development of SIBS[®] II variant for Toyota Hilux and other similar sized vehicles

• Explore cost saving enhancements → Preparations for ANCAP 5 vehicles underway

• Expand service agent network →Modular EMMA hydraulic unit developed  Grow export sales →Service agent network doubled (3 to 6 agents) → 11% growth in export sales

Garbage Truck Brake

• Prepare for garbage truck launch Garbage Truck Brake

• Achieve production ‘sign off’ for Garbage Truck Brake

Garbage Truck Brake

• → Extensive in-field and bench testing validates key features ahead of production decision

• → Development of ABS (anti-skid) version of the SIBS[®] Garbage Truck Brake

• → Confirmation of environmental benefits - significant reductions in dust particle and noise pollution

• → Formal approval for production go-ahead given

• by Board in July 2012

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• › ABT is a developer, manufacturer and worldwide distributor of its

award-winning, patented Sealed Integrated Braking System (SIBS[®] )

• › SIBS[®] is a fail-safe, enclosed “wet” braking system for off-road and on-road applications

• › SIBS[®] technology is extensively proven and has been established in the mining industry over many years

ABT is a Listed Company on the ASX

• › ABT is now using its SIBS[®] technology to target full scale commercial roll out of its garbage truck brake product in CY2013

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Vision:

To be the industry leader in developing, manufacturing and distributing safe and efficient braking technology across multiple applications and sectors

Strategy:

• › Pursue robust growth through:

• Leveraging strong mining market positioning to provide funding for product and sector expansion

• Commercial roll-out of Garbage Truck Brake in Australia and other countries – North America and Europe

• Entry into other sectors using “frequently stopping trucks”

• Expand export sales into new markets

• Invest in research and development – focusing on upgrading and expanding product range to increase market share and expand into new industries

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• › Unique, proven and patent protected technology

• › Global market potential across multiple applications and sectors

• › Significant competitive advantages over alternative products

• › Compelling customer offering – “triple bottom line” benefits › Robust commercial model with attractive margins and high scalability

› Strong Board and management with extensive technical and commercial expertise

• › Significant valuation upside potential

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Sealed Integrated Braking System (SIBS[®] )

• › Fully enclosed, single rotor, high speed wet brake

• › Incorporates fail-safe features

• › Designed for retro-fit or factory fit

• › Comprehensively patented Australian invention

• › Virtually wear and maintenance-free (unlike conventional drum and disc brakes)

• › Manufactured in Thailand, through wholly-owned subsidiary

Comprehensive Patent Protection

• › 61 international patents or patent applications

• › Average patent life of 12 years

• › New patents being lodged as developments continues

• › Trademark protection on various trademarks including “SIBS” and “ABT”

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• › Wet brake technology enables a cooler operating temperature , essential to longer lasting and safer braking systems

• › System encloses key components – the single rotor, brake callipers and brake pads – within a casing containing the SIBS[®] cooling fluid

• › Cooling fluid is specifically formulated oil which controls the operating temperature of the system

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Advanced Braking Technology | Microcap Conference Presentation

Prime Target Market – Waste Sector

Multiple customer “calls to action”:

• › Brakes are the second biggest expenditure after fuel for garbage truck fleet operators

• › Public desire for noise reduction

• › Global drive to reduce pollution

Australian market:

• › Dynamic, recession-proof industry

• › Annual growth rate of 5.4% (ABS, 2011)

Global growth potential:

• › Next targets:

• Expanding into North America and Europe

• Highest waste generating markets in the world (per capita)

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• › Multi year development program now complete

• › Commercial roll out set for CY2013

› Technical risk is very low:

• ABT has significant experience and expertise with the associated technology

• Long history of successful application

• Extensive and successful testing process

• › Targeted customers expressing significant demand interest

› Launch Strategy:

• Initial Sales into Australian retro-fit market – low barriers to entry

• Retro-fit facilitates rapid take up

• Australian OE – (new truck sales) will follow

• Export markets (retro-fit and OE) will follow after Australian launch

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Garbage Truck Revenue Potential
200,000
180,000
160,000
140,000
120,000
100,000 New Refuse Trucks
Installed Fleet
80,000
60,000
40,000
20,000
-
Australia Europe North Amercia
Australia
North America
Annual sales 800 trucks
Annual sales 20,000 trucks
Installed Fleet 8,000 trucks
Installed Fleet 200,000 trucks
25% share of retro-fit = $60 million revenue
25% share of retro-fit = $1.5 billion revenue
50% share new sales = $12 mill p.a.
50% share new sales = $300 mill p.a.
Advanced Braking Technology | Microcap Conference Presentation
Number of Garbage Trucks
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“Triple bottom line” benefits

› Financial Savings:

• Dramatically reduces frequency of brake overhauls from more than twice a year, to once every two years or longer

• Reduces annual operating costs by up to $15,000 per truck

• Customer payback on initial investment < 2 years

• Tyre wear 30% less

› Superior Operating Performance:

• Brakes are virtually wear and maintenance-free, unlike conventional drum and disc brakes

› Safety and Environmental Benefits:

• Total elimination of brake noise and dust emissions

• Provides consistent safer braking at all times

• Avoids need for regular checking and adjustment

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The City of Swan is evaluating 2 trucks fitted with SIBS

Its Mayor Mr Charlie Zannino stated in a press release last week :

Extract –

The trial has been so successful, the City is investigating the possibility of extending the use of the SIBS across other vehicles in the City fleet. After six months of the trial, the brake pads show very low rates of wear, which should result in greatly reduced brake service down time and costs for the vehicles.

The results indicated only minimal wear whereas a standard truck would be close to or past its wear limit at this point. …..”

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• › Significant product development investment – time and capital

• › Comprehensively patented technology for 10 years

• › No existing competition

• › Braking technology extensively proven in commercial application

• › ABT known as a reliable supplier in mining sector that provides quality, timely and reliable support

• › Brakes designed to be retro-fitted, significantly increasing the immediate potential market

• › Compelling proposition for Original Equipment take-up

• › Seamless compatibility with modern anti-skid systems (ABS)

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• › Penetration into the garbage truck market provides an entry point into other “frequently stopping vehicles”

› Buses – similar drivetrain to waste vehicles and can be easily adapted › Logging and similar heavy haulage trucks – with high brake demands › Military vehicles – used in harsh conditions and need low thermal signature

Buses

Logging

Military

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Established Presence in Mining Sector

Australia:

• › Growing market share – currently 25%

• › Product improvement driving growth

• › SIBS[®] technology now standard in many vehicles, across many mining sites

• › Olympic Dam, Xstrata Zinc – George Fisher, BHP – Nickel West

• › SIBS[®] II currently ABT’s standard product offering for Landcruisers in Australia

• › Developed SIBS[®] II for Toyota Hilux and expanding to other similar vehicles

• › Compatible with ANCAP 5 safety rated vehicles

Export:

• › Representing 25% of total sales (average over last 3 years)

• › Strong foothold in South Africa and Canada

• › Expansion into new markets (e.g. USA, Central/West Africa, South America)

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› Proven success in the mining industry

› $1.33 million profit contribution in FY12

• › Over 400% growth in brake sales over the past 6 years

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7.0
6.0
5.0
4.0
Sales - Engineering and Fitting
Sales - Spares
3.0
Sales - Brakes
2.0
1.0
0.0
2006 2007 2008 2009 2010 2011 2012
$'s Million
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Growth set to continue

• › Ongoing industrialisation of emerging economies led by China and India

• › Strong growth in new mine development

• › Expansion into surface mines with safety and productivity focus

Increased Focus on Safety Regulations

• › WHS Act (Jan 12’) and pending MHS Act (Jan 13’) - greater focus on responsibility of mine holders/operators to ensure worker safety

• › “Uncontrolled vehicle movements” are a major problem for mine operators - results in fatalities and injuries on site

• › SIBS[®] brakes significantly improve safety for mine operators with a three-in-one service, park and fail-safe emergency brake

Growing Emphasis on Productivity

• › – Sector productivity has declined 50 per cent since 2001 (PWC Report 2012) many companies have renewed focus on improving mine productivity

• › SIBS[®] brakes increase productivity by reducing brake overhaul and therefore vehicle downtime on site

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Attractive business:

• › High margins similar to mining products

• › Highly scalable cost base with efficient fulfilment model

• Business model supports high long term RoI:

• › Benefits of offshore outsourced manufacturing

• › Low cost fulfilment model

• › Low capital intensity

Manufacturing Engineering, Sales & Assembly & Distribution Thailand Australia › Low cost › Proximity close to › Low capital customer market

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• › Main focus for FY13 is the commercial roll out of the Garbage Truck Brake

• All indicators suggest that there will be a strong demand

• A progressive and controlled launch is planned

• › Mining sales will continue to play an important role in the Company’s future, however external factors in mining make precise forecasts difficult

• › a more Garbage Truck Brake sales are expected to provide reliable and consistent sales pattern

• › Export sales in mining will continue to grow through expansion into other countries, such as USA, Central/West Africa, South America

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Chief Financial Officer Clare Madelin

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• Total revenue +10% to $8 million

• Mining sales generated $1.33 million profit – with sales up by 3% to $6.3 million (sales for first three quarters up by 17%)

• Export sales +11%, represents c22% of total sales

• Overall net loss of $123k is attributed to the substantial investment in upgraded products

• Successful $2.1 million capital raising in April 2012

• Commercialisation Australia grant of $761,000 – in support of the Garbage Truck Brake development

• R&D Tax Incentive of $786,000

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Revenue Profit After Tax
$ millions $ millions
9.0 1.0
8.0
0.5
7.0
0.0
6.0
5.0 -0.5
4.0 -1.0
3.0
-1.5
2.0
-2.0
1.0
0.0 -2.5
05/06 06/07 07/08 08/09 09/10 10/11 11/12 05/06 06/07 07/08 08/09 09/10 10/11 11/12
----- End of picture text -----

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Questions?

Advanced Braking Technology | Microcap Conference Presentation

www.advancedbraking.com [email protected]

Advanced Braking Technology | Microcap Conference Presentation