15 May 2019

Fastbrick Australia and our rapid growth curve.

Dear all,

As you would be aware, we recently announced the commencement of a Wall as a Service™ joint venture with Brickworks, Australia's largest supplier of brick and block products. The joint venture company is called Fastbrick Australia Pty Ltd, and is 50/50 owned by FBR and Brickworks.

Fastbrick Australia is our first demonstration of a Wall as a Service™ operating entity in the world, and an important step in the commercialisation plans of FBR and the use of our technology globally, allowing us to test the Hadrian X in our own backyard in partnership with the biggest market incumbent in Australia.

With FBR providing bricklaying services using the Hadrian X, and Brickworks supplying blocks developed specifically for use with the Hadrian X to maximise its output, Fastbrick Australia will offer erected structural wall to builders at a set price and with an accurate delivery time according to the architectural design. In line with FBR's long term vision set many years ago, Fastbrick Australia can truly aim to assist builders to deliver their product faster, safer, and more accurately while reducing waste and, by extension of the parallel benefits this provides, drive down cost to end customers. We will be demonstrating both clay and cement masonry products through the HX over time, depending on the use case and/or the customer needs.

Brickworks and FBR have been collaborating for some time on the future of this joint venture, and have already begun trialling the Hadrian optimised CMU test blocks at our facility, with both parties motivated to get building as soon as we can. The key motivators for developing a machine such as the HX are only expected to grow further over time as we see the shift away from the manual laborious tasks in industries like construction, and see the workers of the future look toward operating intelligent machines, and exercising the digital skills that they have developed during their education in these modern times.

There has been a lot going on behind the scenes this past couple of months, both commercially and from a technical perspective, with significant performance improvements made to the Hadrian X since our last full house build program. We have created a robotics centre of excellence here at FBR, and one that is extremely talented by global standards. Though we sometimes have to close ourselves off a bit to the outside world to focus on some important tasks internally, rest assured that the team are working on some impressive things that you'll get to hear about once we are in a position to communicate them to you.

In the midst of getting the Fastbrick Australia joint venture finalised, I made a quick trip around the world last month to meet with interested commercial parties and government representatives in Europe and the UAE to discuss what the future looks like for FBR in robotic construction in those important and valuable markets. I was also able to visit the Dubai 2020 Expo site where the Australian Government is building a very impressive pavilion to showcase some of Australia's unique technologies and product offerings to the world, with the event next year expected to attract over 30 million visitors.

Following the visit to Dubai, myself and two other members of our team visited key brick manufacturing sites in Europe and held meetings with interested parties to further scope the demand and opportunity that exists there. I arrived back in Perth very excited about the prospects that are present for the HX machines, and also for other key components of FBR's robotic technology that could see the Company participating in very high value and growing markets across other countries in the near future. I will update you further on this when I can.

The interest that FBR has attracted in many countries around the world indicates to me very strongly that we have developed a product and service that will be in demand into the future. The level of building activity I see, the demand in all forms of housing and commercial construction, and the prosperous environments that have a need for productivity and efficiency gains that FBR is striving to provide should see us very well positioned to achieve success.

As has been reported, FBR is expanding and has secured the tenancy on a brand new facility in High Wycombe in very close proximity to our current HQ. This facility will be where FBR continues development of our current machines and technology, as well as the development of other robotic systems for global markets where efficiency improvements are needed in 2-10 storey construction.

FBR is in a pivotal stage of its journey, where advances in our technology and any progress we make in forming high value partnerships with companies globally needs to be very tightly managed, while doing our best to keep everyone updated in accordance with our reporting obligations and boundaries. I can say that at this point in time, the future of the Company looks very bright, and that your support along with our tenacity and persistence are the things that will see FBR achieve the success that it deserves, and allow us to deliver our shareholders long term and sustainable value into the future.

In the coming weeks, I will be in Silicon Valley, Dubai and Europe again to further the prospects of the Company with many very interesting events and meetings planned during that time. Back in Perth, the team at FBR will be conducting further testing on HX 1&2 in preparation for building activities in the weeks and months ahead, and we anticipate that the internal fit out work on our new facility will get well underway.

We are about to enter a very important phase of FBR's growth, with many things still to be learnt and refined as we work the HX machines in real world environments. During this time we will be making continual improvements to our processes and work practices to ensure we slot into the current workflow of the residential construction arena, at a time where building activity in WA is at a 40 year low, and where the environment for builders is very challenging indeed. This will be an interesting time for the FBR Team, and we are looking forward to the challenge.

From all of us at FBR thank you for your support and for being part of the journey with us. Changing the way the world builds structures is not an easy undertaking, but we are heartened by the support you have given us and the technical milestones we continue to achieve.

H02 at FBR's new testing facility in High Wycombe

I look forward to providing you all with further updates soon.

Mike Pivac
Managing Director & Chief Executive Officer 
FBR Limited