Annual Report 2020 FBR Limited (ASX:FBR) ABN 58 090 000 276
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Annual Report 2020 FBR Limited (ASX:FBR) ABN 58 090 000 276 61 8 9380 0240 | fbr.com.au [email protected] | [email protected] Registered Office 122 Sultana Road West High Wycombe Western Australia 6057 Contents 02 04 Letter from 08 the Chairman Year in and Managing Director review & CEO 06 10 12 14 Hadrian X® FBR Board and Corporate operations Hadrian X® in Commercialisation Executive Team Governance update the field strategy 16 18 24 Wall as a Service® Safety, Health, target markets Environment & Quality Directors’ Report 20 22 and Financial Statements Our people Community PICTURE HADRIAN X DURING THE CONSTRUCTION OF FBR'S FIRST DISPLAY HOME IN DAYTON, WESTERN AUSTRALIA. FBR LIMITED 2020 ANNUAL REPORT FBR Limited (ASX:FBR) Designs, develops and builds dynamically stabilised robots to address global needs. These robots are designed to work outdoors using the Company’s core Dynamic Stabilisation Technology™ (DST™). FBR is commercialising products for the construction sector together with DST™ enabled solutions for other industries. DST™ reacts to wind, DST™ delivers accuracy The Company’s first vibration and other previously only achievable in application of DST™ is the environmental factors controlled environments, Hadrian X®, a revolutionary instantly, enabling precise paving the way for robotic bricklaying robot capable of positioning over large construction and automation building the walls of a house distances outside. outdoors. in as little as one day. FBR is continuing to develop exciting new technologies for robotic automation outdoors. FBR LIMITED 2020 ANNUAL REPORT 1 Year in First display home built in Dayton, review Western Australia First demonstration of Wall as a Service® commercial model First non-residential structure built in Byford, Western Australia FBR generated first revenue Second Hadrian X® machine commissioned GP Vivienda Pilot Program completed FBR LIMITED 2 2020 ANNUAL REPORT Hadrian X achieved commercially viable lay speed and recorded new peak laying rate of 228 blocks per hour $21.5 million capital raised Winner of 2020 Prospectus Australian Institute milestone of Health & Safety achieved – Health & Safety Innovation (Small – Medium Enterprise) Award Hadrian X® Building Pilot demonstrated Program Agreement ability to work in with Archistruct hail, high winds Builders & Designers and heavy rains completed Adhesive-based wall system confirmed to meet National Construction Code Demonstration structures completed for Summit Homes FBR LIMITED 2020 ANNUAL REPORT 3 Dear Shareholders Chairman’s Review On behalf of the Board and management, it is my pleasure to present to you FBR’s Annual Report for 2020. The past year has been very exciting for While global economic conditions have FBR, with significant progress made in been far from certain during 2020, FBR the Company’s commercialisation journey, has been able to position itself well to capped by the successful suburban builds minimise the impact of the global health at Dayton and Byford in July and crisis on its operations, demonstrating September 2020 respectively. improvements in the speed and reliability of our technology despite the headwinds. The Company generated its first revenue in the financial year ended 30 June 2020 FBR has attracted significant by building demonstration houses for its international interest this year as we first builder customers in Perth, and in continue to show what we are capable of. doing so completed a prospectus milestone set in 2015. We expect the next 12 months to be just as exciting as the last, and I thank FBR welcomed two new Non-Executive you, our Shareholders, for your Directors during and subsequent to the continued support. end of the financial year, with Mr Grant Anderson and Mr Greg Smith filling roles Yours faithfully, vacated by Mr Andrew Bloore and Ms Nancy Milne. Both Grant and Greg are highly experienced and have valuable skillsets to contribute to FBR’s next phase of growth. I thank Andrew and Nancy for their contributions to FBR’s Richard Grellman Board during their time with the Non-Executive Chairman Company, and wish them all the best in their future endeavours. FBR LIMITED 4 2020 ANNUAL REPORT Dear Shareholders Managing Director & CEO’s Review What a year it has been for FBR. We can now proudly say that the Hadrian X® has our excellent performance at both Dayton and Byford, been deployed into a residential development and while Hadrian 1 receives a more extensive upgrade to built the walls of a house, which is a significant our next iteration of the Hadrian X®. This freedom moment not just for our Company, but for the entire enabled the engineering team to make some construction robotics industry. phenomenal progress, culminating in the new peak lay speed of 228 blocks per hour achieved at Byford. This year has been a tremendous year of growth and achievements for our Company, having completed our We also demonstrated additional machine capability such first residential and non-residential structures in as building cavity walls, building with a slab step-down, suburban environments. We were also able to progress and building above single storey. We anticipate we’ll be our commercial arrangements and demonstrate our Wall building two storey structures shortly. All of this as a Service® commercial model in action through pilot demonstrated capability has led to an immense global programs with local and international customers. opportunity for our technology, and our commercial strategy of establishing Wall as a Service® operating We completed all three stages of the Building Pilot entities in our key markets with the intention to partner Program Agreement with Archistruct Builders & with local organisations has attracted significant inbound Designers, having built 11 home structures in the interest. Work has begun on establishing these operating Demonstration Stage, the Dayton display home for the entities, and discussions have commenced with local Display Home Stage, and the Byford Commercial and parties in North America, Europe and the GCC region, as Community Centre for the Builder’s Project Stage. We well as obviously here in Australia. also completed the Pilot Program Stage of the Building Pilot Program Agreement with GP Vivienda, building four We will be well placed to deploy our technology Mexican-style house structures, with each structure internationally once the COVID-19 pandemic passes, but taking less than one standard shift on average to until then we have plenty to focus on here in Australia. complete, and two demonstration structures for Summit We are positioned for a big year in FY21. We have the Homes. We have significant interest from both Australia best and only end-to-end autonomous bricklaying robot and overseas, with potential partners and customers in the world, an immense global opportunity ahead of us, wanting to see the Hadrian X® build in their style with and a knowledgeable, experienced and energetic team their preferred building products. ready to seize that opportunity. The COVID-19 pandemic has been challenging for all We would like to extend our gratitude to our businesses, but I am proud of the way we reacted Shareholders, employees, contractors, customers, quickly to the escalating crisis and ensured our suppliers and commercial partners for another year Company retained maximum flexibility going into an of support, and we look forward to another exciting uncertain time, and that we were well positioned to year full of accomplishments. preserve Shareholder value despite subdued economic conditions. Unfortunately, that strategy meant the Yours faithfully, introduction of a cost rationalisation program, which resulted in a strategic resizing of the team and the dissolution of the Fastbrick Australia joint venture. It also gave us an opportunity to have complete control of our assets as they were not required to be available Mike Pivac for projects at all times, which meant we were able to Managing Director & implement some improvements to Hadrian 2 that led to Chief Executive Officer FBR LIMITED 2020 ANNUAL REPORT 5 FBR Board and Executive Team Richard Grellman Mike Pivac Mark Pivac Non-Executive Chairman Managing Director & Executive Director & Chief Executive Officer – Global Chief Technical Officer Richard Grellman AM is a highly experienced leader and a member of the Order of Australia Mike Pivac spent 20 years in the aviation Mark Pivac is the primary inventor of FBR’s for service to the community and to the finance sector as an Airborne Mission Coordinator automated bricklaying technology. He is an and insurance sectors. Richard is currently the with Australian Border Protection and aeronautical and mechanical engineer with Non-Executive Chairman of IPH Limited, Search and Rescue, specializing in Electronic over 25 years’ experience working on the Director and Chairman of the Audit Committee Detection Systems and strategic and development of high technology equipment of Bisalloy Steel Group Limited and a Director of tactical mission planning, working closely ranging from lightweight aircraft to heavy the National Health and Medical Research with Australian and International off-road equipment. He has 20 years’ Council Institute for Dementia Research. Since Government and Military Agencies. He has experience working with pro/engineer 3D 2014, Richard has served as the Tribunal of the also owned and operated businesses in the CAD software as well as high-level NSW Statutory and Other Officers retail, hospitality and transport sectors and mathematics, including matrix mathematics, Remuneration Tribunal (SOORT), appointed by has been key to developing FBR’s robot transformations and vector the Governor of NSW. He spent 32 years with technology, business plan and machine mathematics for machine motion. Mark has accounting firm KPMG, where he was a partner development strategy. He has forged also worked extensively with design, from 1982 to 2000, a member of KPMG’s relationships with investors, builders, commissioning and fault finding on servo National Board from 1995 to 1997 and product suppliers and future customers controlled motion systems achieving very National Executive from 1997 to 2000, and pivotal to bringing the Hadrian X to life.