Xtek : ASX Announcement - XTEK Company Update 9 June 2017

Release to the Australian Securities Exchange

Company Update

Canberra - Friday, 9 June 2017: XTEK Limited (ASX: XTE or the "Company") is pleased to release a Company Update presentation following the Australian Government's announcement of a A$101m investment in small unmanned aerial systems ("SUAS") on 1 June 2017. XTEK will provide acquisition, maintenance, and support services for this capability.

XTEK will present at Proactive Investors conferences in Sydney and Melbourne next week.

A$101M SUAS INVESTMENT

• XTEK could receive up to A$100m in supply, maintenance, and support revenue over the next 5 to 7 years

• This will represent a step-change transaction for XTEK, and sees the Company

  well placed for further contract wins

• The Australian Government also announced they will dedicate A$200bn to growing Australia's defence capability over the next decade

• XTEK is well positioned to benefit from this sustained increase in Australian Government defence spending

  XTEK COMPANY HIGHLIGHTS

• A market leader in homeland security equipment for the military and police sectors in Australasia

• Forecasting A$9m revenue in FY17 with high revenue growth and shift to profitability during 2H FY17

• New revenue guidance from FY18 onwards represents an upgrade from that previously disclosed

• Strong revenue pipeline with major wins including success as tenderer for provision of

  up to A$100m in Small Unmanned Aerial Systems for the Australian Defence Force

• Senior management and Board have distinguished military and police backgrounds, experience in the homeland security market, and global commercialisation expertise

• Significant market opportunity with defence spending set to increase significantly in Australia

• Operational across the full value chain from development and manufacturing, to distribution and maintenance

• Broad product suite in the areas of Unmanned Aerial Systems and imagery, Tactical Weapons / ballistic protection and Explosive Ordnance Disposal

• Strategy focussed on leveraging existing exclusive distribution agreements, with

development and commercialisation of proprietary innovations in the same fields

For more information visit the XTEK website at www.xtek.net

Signed for and on behalf of XTEK Limited:

Lawrence Gardiner Company Secretary

Media enquiries: Gabriella Hold

9 June 2017 E: [e-mail]

M: 0411 364 382

INVESTOR PRESENTATION

JUNE 2017 ASX: XTE

Company highlights

• A market leader in homeland security equipment for the military and police sectors in Australasia

• Forecasting A$9m revenue in FY17 with high revenue growth and shift to profitability during 2H FY17

• New revenue guidance from FY18 onwards represents an upgrade from that previously disclosed

• Strong revenue pipeline with major wins including success as tenderer for provision of up to

  A$100m in Small Unmanned Aerial Systems for the Australian Defence Force

• Senior management and Board have distinguished military and police backgrounds, experience in the homeland security market, and global commercialisation expertise

• Significant market opportunity with defence spending set to increase significantly in Australia

• Operational across the full value chain from development and manufacturing, to distribution and

  maintenance

• Broad product suite in the areas of Unmanned Aerial Systems and imagery, Tactical Weapons / ballistic protection and Explosive Ordnance Disposal

• Strategy focussed on leveraging existing exclusive distribution agreements, with development

and commercialisation of proprietary innovations in the same fields

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Corporate overview

XTEK is a supplier of high quality protective security, tactical and forensics solutions to the government, law enforcement, military and commercial sectors

Trading information Share price performance

Share price (7-Jun-17)	A$0.450
52 week low / high	A$0.295 / A$0.490
Market capitalisation (7-Jun-17)	A$13.3m
Cash (May-17)	A$0.9m
Debt (May-17)	A$0.6m
Enterprise value	A$13.0m

Share price (Acps) Volume (m)

50

Up +29%

45 since 1 May

0.5

0.4

40 0.3

35 0.2

30 0.1

25 -

Uwe Boettcher (Non-Executive Chairman)	17.18%
Fairlane Management	7.1%
High net worth investor	5.1%
Top 20 shareholders	55.45%

Major shareholders

Source: IRESS

Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17

Volume XTEK S&P/ASX Small Industrials

A premier emerging defence and homeland security opportunity on the ASX

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