FBR signs MOU to establish joint venture with BrickworksHighlights• FBR signs binding MOU with Brickworks Building Products Pty Ltd (‘Brickworks’) under which the parties agree to collaborate on the manufacture and certification of concrete masonryunit blocks suitable for the construction of structural walls of residential buildings inAustralia; ando FBR agrees not to grant exclusive rights to manufacture or supply blocks for use by theHadrian X in Australia to any third party; ando the parties agree to negotiate in good faith the terms of a formal shareholders agreementin relation to the proposed joint venture between the partiesfor a period of 45 days or as otherwise agreed by the parties• Fastbrick Australia Pty Ltd (‘Fastbrick Australia’), the proposed joint venture company, willsupply Wall as a Service™ to the Australian building and construction market using Hadrian X• Under the proposed joint venture, Brickworks would exclusively manufacture customised blocks for use by the Hadrian X in Australia underlicense; ando be granted the exclusive right to supply brick and block products for use by Hadrian X inAustralia• Fastbrick Australia to begin Pilot Program operations in Western Australia immediately uponcommencement of the joint venture• Pilot Program will involve the Hadrian X building the structural walls of residential homes usingBrickworks blocks with construction adhesive, for building companies via commercial buildingcontracts• Pilot Program to demonstrate the building capabilities of Hadrian X, while delivering near termrevenue and proving the Wall as a Service™ business model in AustraliaTuesday, 05 February 2019 – Robotic technology company FBR Limited (ASX:FBR) (‘FBR’ or ‘theCompany’) is pleased to advise that it has signed a Memorandum of Understanding (‘MOU’) withBrickworks Building Products Pty Ltd (‘Brickworks’), a wholly owned subsidiary of Brickworks Limited,Australia’s leading supplier of building products.The MOU sets out the key terms on which FBR and Brickworks propose to operate a special purpose50/50 joint venture company for a period of 3 years under a shareholders agreement which iscontemplated to be negotiated between the parties, to provide Wall as a Service™ (‘WaaS™’) to theresidential building and construction sector. The purpose of this joint venture company is primarily todemonstrate the building capabilities of the Hadrian X and to prove the WaaS™ business model inAustralia. After significant global market analysis in relation to potential commercialisation pathways,WaaS™ has emerged as FBR’s current preferred business model based upon the potential to maximiselong term value for Shareholders and the scalability of this business model globally.Under the binding MOU, FBR and Brickworks have also agreed to collaborate in the design,manufacture, compliance certification and testing of clay and concrete masonry blocks for use byHadrian X in the Australian market, commencing with the development of a block product that issuitable to Western Australian builders.The MOU terminates on the earlier of the parties entering into a shareholders agreement and 45 daysafter the date of the MOU, or as otherwise agreed by the parties.2FBR Limited (ASX:FBR) | ABN 58 090 000 276+618 9380 0240 | www.fbr.com.au122 Sultana Road West, High Wycombe, Western Australia 6057Upon the commencement of the joint venture, Fastbrick Australia will begin pilot operations in Perth,Western Australia, with an initial focus on residential construction. Brickworks will also be granted theexclusive right to supply blocks to Fastbrick Australia.With FBR providing bricklaying services via the Hadrian X construction robot and Brickworks providingmasonry blocks optimised for use with the Hadrian X, Fastbrick Australia will engage with buildingcompanies to provide the structural brickwork for residential homes on demand through commercialbuilding contracts (Pilot Program). These Pilot Program activities are anticipated to generate firstoperating revenues, likely on a ‘per square metre of wall built’ basis, for FBR in the 2019/20 financialyear.The Hadrian X is a collaborative robot (co-bot) that will work on site with experienced robotoperators/masons to deliver quality wall product. The WaaS™ model also involves partnering withmarket dominant masonry product manufacturers and suppliers who have an extensive andestablished customer base of building and construction companies which will drive demand for theWaaS™ product. Under the WaaS™ model, the end customer receives the benefits of roboticconstruction without having to train operators, invest significant capital upfront or complicate theircore businesses, which could potentially accelerate global adoption of FBR’s robotic technology.Brickworks Managing Director Lindsay Partridge AM & FBR CEO Mike Pivac3FBR Limited (ASX:FBR) | ABN 58 090 000 276+618 9380 0240 | www.fbr.com.au122 Sultana Road West, High Wycombe, Western Australia 6057FBR’s Chief Executive Officer, Mike Pivac: “Partnering with a company of the scale and reputation ofBrickworks is a significant step forward for FBR in the commercialisation of the Hadrian X and providesan excellent opportunity to introduce the Wall as a Service™ business model to the constructionindustry. Our relationship with Brickworks will significantly accelerate the global commercialisation ofour technology through the support they can provide as Australia’s leading incumbent in theconstruction materials space, the direct market access they can facilitate through their existingcustomer base, and the industry knowledge they have accumulated over the last 110 years. FBR haschosen the WaaS™ business model as it offers the highest long term commercial value to the Companyand its Shareholders. Fastbrick Australia will be the first robotic WaaS™ entity established in the world,and our Pilot Program in Western Australia will serve to further validate the Hadrian X technology, thenew block products created for the Hadrian X and this unique business model which we believe canbe rolled out worldwide.”Brickworks’ Managing Director, Lindsay Partridge AM: “We are excited to work together with FBRtowards creating this joint venture initiative. We are pleased to be able to leverage our experience andcapabilities to manufacture customised blocks for use by FBR’s Hadrian X robots and have theopportunity to secure exclusive block supply rights for these robots in the Australian market.”Disclaimer: While the parties have agreed to negotiate the terms of the joint venture shareholdersagreement in good faith and with a view to reaching an agreement as soon as practicable, there canbe no assurance that an agreement will be reached within 45 days or at all.Ends
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the parties agree to collaborate on the manufacture and certification of concrete masonryunit blocks suitable for the construction of structural walls of residential buildings inAustralia; ando FBR agrees not to grant exclusive rights to manufacture or supply blocks for use by theHadrian X in Australia to any third party; ando the parties agree to negotiate in good faith the terms of a formal shareholders agreementin relation to the proposed joint venture between the partiesfor a period of 45 days or as otherwise agreed by the parties• Fastbrick Australia Pty Ltd (‘Fastbrick Australia’), the proposed joint venture company, willsupply Wall as a Service™ to the Australian building and construction market using Hadrian X• Under the proposed joint venture, Brickworks would
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