Announcement PDF ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 27 January 2026 ASX RELEASE QUARTERLY ACTIVITY REPORT & APPENDIX 4C FOR THE QUARTER ENDED 31 DECEMBER 2025 The consolidated entity, consisting of Electro Optic Systems Holdings Limited and the entities it controlled during the quarter, (“EOS” or the “Group”) has filed its Appendix 4C and provides the following update on its activities for the quarter ended 31 December 2025. 1. KEY ACTIVITIES Manufacturing and Delivery Activity  During the quarter, EOS in Australia and the United States continued the manufacture and delivery of RWS for customers in the United States, Europe, the Middle East, South East Asia and Australia. Activity levels during the quarter were higher than in previous quarters due to the timing of customer orders and delivery schedules.  During the quarter, EOS relocated its business activity in Singapore to a new facility. The facility includes a new Remote Weapon System (RWS) service and support centre and a High Energy Laser Weapon manufacturing facility.  During the quarter, EOS Space Systems continued to deliver on the backlog of contracts with the Australian Defence Force (ADF) and Commonwealth of Australia. Customer Order Activity  On 6 October 2025, EOS announced that it had secured a contract for the delivery of RWS to Hanwha Australia for the ADF LAND 400-3 Project valued at A$108m. Under this contract, EOS expects to deliver an enhanced R400 RWS which is planned to be fully integrated with Hanwha’s Redback Infantry Fighting Vehicle. The contract started in 2025 and is expected to be primarily fulfilled by EOS during 2026 and 2027.  On 17 November 2025, EOS announced that it had secured a €11.4m/~A$20m contract to supply Slinger counter-drone RWS to a Western European NATO country to address urgent operational requirements. The contract started in 2025 and is expected to be completed during 2026.  On 15 December 2025, EOS announced that it had entered into a binding, conditional contract with a customer in the Republic of Korea relating for a High Energy Laser Weapon (HELW) valued at US$80m/~A$120m. If the conditions are satisfied, the contract will involve: 1) the manufacture and sale of a 100kW HELW, 2) the establishment of a joint venture between EOS and the customer to develop and supply the Korean market, and 3) the licencing of intellectual property relating to 100kW HELW to the joint venture. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 As announced on 15 December 2025, the conditions of that contract include the payment by the customer of the initial deposit (US$18m), the customer procuring the issuance of a letter of credit for the remaining amount of the contract, and the customer inspecting and being satisfied with EOS' Singapore facility. A customer inspection of EOS’ Singapore facility has occurred and the customer has indicated it has no further requirements in this regard. The customer has indicated that further work is required to finalise the arrangements, including the initial deposit and letter of credit, and that this work will continue during February 2026. Based on discussions with the customer, EOS believes this could be concluded in February or March 2026.  On 19 December 2025, EOS announced that it had secured a US$21/~A$32m contract with a North- American customer to supply R400 RWS to be integrated on Light Armoured Vehicles (LAV) for an end- user in South America. This contract marks the entry of EOS into the growing South-American region. The systems are expected to be manufactured during 2026 and 2027.  On 23 December 2025, EOS announced a US$22/~A$33m contract with General Dynamics Land Systems to deliver RWS for integration onto a major U.S. Army ground combat vehicle. Manufacturing will take place at EOS’ facility in Huntsville, Alabama, further establishing the Company’s presence in the U.S. defence market. Work under this contract is expected to occur mainly during 2026, 2027 and 2028.  After the end of the quarter, EOS’ KiwiStar Optics business secured a contract to produce critical optical elements for the World's largest ever optical/infrared telescope: Europe's Extremely Large Telescope (ELT). KiwiStar's workshare for the program is ~€3m/~A$5m and is expected to occur mainly during 2026 and 2027. Order Book Development Activity  The Contract Backlog at 31 December 2025 was $459m which represents a $323m or 238% increase from 31 December 2024. Contract Backlog – 31 December 2025 ($mil)  The Contract Backlog only includes unconditional contracts and does not include the conditional Korean contract noted above (valued at US$80m/~A$120m). Including the conditional Korean contract, the total backlog would be $579m.  The conditional Ukraine contracts first announced on 2 and 25 April 2023 have been excluded from the contract backlog and will be excluded going forward. Progress on this contract during the quarter has been slower than hoped due to customer funding challenges (as previously disclosed). 304 242 209 136 459 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Market and Business Development Activity  During the quarter, EOS engaged in several discussions with prospective customers for High Energy Laser Weapon products. This included potential customers in Europe, the Middle East and Asia and related both to EOS 100kW laser weapon products and also to potential future development projects for higher power levels. The discussions have variously included a wide range of subjects about potential future arrangements, including product capability requirements and potential demonstrations, scope and timing of supply, supply agreements, local manufacturing joint venture arrangements, strategic partnerships and strategic investments. Discussions are ongoing and there is no guarantee of what form any future arrangements may take or that any of the above may eventuate.  In December 2025, EOS, as part of the Leidos Australia led LAND 156 team, successfully demonstrated a mission-ready counter-drone capability for the Australian Defence Force, shooting down drones kinetically. As previously announced, LAND 156 is an Australian Defence Force project to acquire counter-drone capabilities over the next several years, with a total project spend of up to A$1.3bn. EOS believes it is well placed to capture some portion of future LAND 156 contracts in the future.  EOS continued a wide range of market development activity for its Remote Weapon Systems, including work in North America, Europe, the Middle East, South East Asia and Australasia.  In November 2025, EOS Space Systems was part of a Spaceflux-led consortium which was awarded three major United Kingdom Government contracts for Space Domain Awareness. While initial contract sizes are modest (less than A$1m), EOS believes this represents a key step into the fast growing UK space industry.  During the quarter, EOS Space Systems continued to work to develop orders with existing customers and potential new customers. This included demonstrations and detailed discussions with senior military personnel from several countries in relation to a range of products and services, including Space Control.  There is no guarantee that any of the above opportunities will be realised in the form of binding sales contracts or any guarantee regarding the timing of revenue recognition and cash flows that may ultimately arise, if any. Business Combinations  In November 2025, EOS announced the acquisition of a new interceptor capability from MARSS Group (MARSS) for a total amount of €5.5m/~A$10m. Interceptor drones are a rapidly emerging technology for kinetically defeating drones, with relatively low collateral damage. As such, they are also well suited for non-military use cases. The acquisition is consistent with EOS’ stated strategic intent of expanding its counter-drone capability.  After the end of the quarter, on 12 January 2026, EOS announced that it had entered into a conditional agreement to acquire the remainder of the MARSS group business. MARSS is a Europe- based provider of AI-enabled command and control (C2) systems which are critical for effectively countering drones.  The acquisition consideration comprises an upfront cash payment of US$36m (~A$54m) and a potential earnout of up to €100m (~A$174m) payable in a combination of cash and/or EOS shares (see section 6 below).  Completion is subject to customary conditions precedent, including relevant customer, regulatory, export and other approvals, expected during 2026. There is no guarantee that the acquisition of MARSS will be completed. More details are included in the announcement of 12 January 2026. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Financing Activity  Also on 12 January 2026, EOS announced that it had secured a commitment to a $100m two-year secured term loan facility. The facility is intended to be available if required to support growth and provide liquidity buffers, including working capital, across the expanded business and if required to support payments for the acquisition of MARSS. 2. FINANCIAL SUMMARY EOS’ total cash holdings at 31 December 2025 were $106.9m, representing a $15.4m increase from the total cash holdings (including term deposits) at 30 September 2025. No term deposits were held as at 31 December 2025. In addition to the total cash holdings at 31 December 2025, the Group had a further $41.6m of cash security deposits held with banks to support bank guarantees and bonds. OPERATING CASH FLOWS The Net Cash inflow from Operating Activities for the quarter was $19.3m, compared to a Net Cash outflow of $34.3m in Q3 2025. Receipts from customers totalled $77.3m for the quarter, representing an increase of $60.8m compared to Q3 2025. The increase primarily reflects milestone completions achieved on customer contracts during the quarter, resulting in higher cash receipts. As noted above, as at 31 December 2025 the order Contract Backlog was $459m, an increase of $323m on the position at the start of the year. EOS expects in future to benefit from cash receipts arising from this growth in order book. Other cashflows from operating activities (excluding cash receipts from customers) amounted to net payments of $58.0m during the quarter, an increase of $7.2m compared to Q3 2025. Other cashflows during the quarter included payments for manufacturing and operating costs of $23.9m, and payments totalling $28.7m for staff costs and administration costs (which were both higher due to higher activity levels) and other items. Payments made during the quarter are expected to support future customer deliveries and cash receipts, including activity expected in 2026. OTHER CASH FLOWS The Net Cash inflow from Investing Activities for the quarter was $17.1m, compared to an inflow of $16.2m in Q3 2025. This primarily relates to a receipt arising from the maturity of a $20.0m term deposit during Q3 2025, and was partly offset by a cash payment of $6.3m as part of the Interceptor business acquisition in November 2025. The acquisition of the Interceptor business has been provisionally accounted for as a business combination and further work is ongoing. In addition, the quarter included net cash proceeds of $9.8m arising from the reduction of cash security deposits under performance bond following completion of contract deliverables. The Net Cash outflow from Financing Activities for the quarter was $1.3m, compared to an outflow of $1.0m in Q3 2025. Financing Activities includes receipts of $0.1m arising from the issuance of equity securities, which represents receipts from the exercise of share options under EOS Omnibus Employee Incentive Plan (‘OEIP’). Further detail on the EOS OEIP are included in the EOS Financial Report published on 25 February 2025. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5 3. BORROWING SUMMARY As at 31 December 2025 and the date of this announcement, EOS has no borrowings. The Group continues to be required to comply with covenants under bond facility agreements with Export Finance Australia, which facilitates the issuance of performance bonds and guarantees to support certain supply arrangements. During the quarter, the Group executed an amendment to its existing bond facility agreement with Export Finance Australia to reflect changes in security deposit requirements for performance bonds and guarantees following completion of contract deliverables. Under the amended agreement, after the end of the quarter, the prior US$33.2m performance bond was replaced with a US$16.0m warranty bond to reflect the Group’s warranty obligations and the cash security deposit is expected to be reduced during Q1 2026 accordingly. The warranty bond is expected to be released upon completion of the warranty period in 2028. As part of the amendment, the previous covenants were replaced with new monthly and quarterly covenant requirements. The new covenants include a requirement that Tangible Net Worth exceed $220m and that a minimum unrestricted cash balance of $35m is maintained. In addition, subsequent to the end of the quarter, on 14 January 2026, the Group entered into an agreement with Westpac Banking Corporation to issue a A$10.8m bank guarantee to a customer in Australia. The bank guarantee was fully secured by cash deposits. The guarantee amount, together with the required cash security, reduces progressively as key contractual milestones are achieved during the contract period. For the quarter ended 31 December 2025, and in the period up to the date of this announcement, the Group complied with its covenants and other obligations under the various facility agreements. As noted in section 1 above, after the end of the quarter on 12 January 2026, EOS announced that it has secured a commitment to a $100m two year secured term loan facility. The commitment has been made in EOS favour and is exercisable at EOS’ option. The facility is subject to the finalisation of legal agreements, which will contain representations, warranties and covenants (but will not include any financial ratio covenants), as well as other customary terms and conditions. Entry into the facility will require the consent of existing funding providers to EOS, including Export Finance Australia and the Group’s bankers. Further details of the loan facility will be announced when the legal agreement is finalised. 4. OFFSET CREDIT OBLIGATION As outlined in the Financial Report for the year ended 31 December 2024 (lodged on 25 February 2025), the Group is obligated as part of its contract to supply a customer in the Middle East, to contribute to economic development in the country as an offset against purchases of its products and services (“Offset Program”). The obligation commitment is secured by an offset bond of US$16.9m (A$25.3m) which is guaranteed by Export Finance Australia. In respect of this bond, a cash security amount of US$16.9m (A$25.3m) has been placed on deposit. This is included in the cash security deposits identified in section 2 above. As part of the offset program, EOS was required to develop, agree and submit an approved business plan, to generate offset credits, to the offset credit authority. On 20 February 2025, the Group received approval from the offset credit authority for the business plan. During the quarter, in accordance with various approvals from the offset authority, EOS continued to take steps to formally establish a 49% EOS owned JV with Shielders Advanced Industries. The intention of both parties is that this JV will set up local manufacturing and assembly of EOS’ R150 Remote Weapon System product in the Middle East. Under the approved business plan, EOS has from 1 July 2026 until 1 July 2033 to set up the JV and earn the relevant offset credits. This includes in kind contributions including the licensing of EOS owned IP, and providing technical data packages and manufacturing knowhow to the JV. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 6 Under the approval from the offset credit authority, the final form of the various agreements necessary for the JV to manufacture and assemble EOS product in the Middle East, require the approval of the offset credit authority in due course. As at the date of this announcement, EOS expects to achieve the necessary approvals. Under the approved business plan in order to earn offset credits EOS must contribute not less than AED 18.4m (approximately A$7.5m) in cash to the JV by 1 July 2026 unless otherwise agreed with the offset authority. As at the date of this report, EOS has not yet contributed any cash. EOS considers that it is currently in compliance with its obligations. In the event that EOS does not comply with its obligations in future, the Offset Credit authority is entitled to demand payment under the guarantee outlined above. EOS intends to continue to work to ensure it complies with its obligations. 5. TRADING UPDATE On 31 October 2025, EOS restated a Full Year 2025 Outlook that it expected 2025 revenues to be biased towards the second half of the 2025 year and that it expected full year revenue from existing contracts to be between $115-125m. Based on unaudited information currently available, EOS now expects full year revenue to be slightly above the range previously indicated. 6. SETTLEMENT OF ASIC INVESTIGATION On 26 November 2025, EOS announced that it has settled ASIC's investigation in relation to certain disclosure matters in 2022. As part of the settlement, ASIC has applied to the Federal Court seeking declarations of contravention of continuous disclosure obligations and a civil penalty of $4m. EOS supports the declarations and penalty sought by ASIC. If approved by the Federal Court, EOS expects to pay the penalty during 2026. Further details are included in the announcement of 26 November 2025. 7. ISSUANCE OF EQUITY SECURITIES As noted in section 2, cash receipts of $0.1m arose during the quarter from the issuance of equity securities, representing receipts from the exercise of share options under EOS Omnibus Employee Incentive Plan (‘OEIP’). As part of the proposed acquisition of MARSS, (see section 1 above), subsequent to quarter end on 12 January 2026, EOS announced the proposed issue of performance rights to MARSS management shareholders upon completion of the transaction as consideration for the earnout component of the acquisition. These performance rights could vest into a maximum number of 23,529,411 EOS shares based on agreed issue price of $7.40, subject to the completion of the acquisition and the extent of the satisfaction of the earnout conditions as detailed in the announcement. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 7 8. RELATED PARTY TRANSACTIONS Payments to related parties of the entity and their associates totalled $332,800 for the quarter. These amounts include:  payments of $189,050 paid to CEO Dr Schwer, representing salary paid during the quarter; and  $143,750 paid in directors’ fees and superannuation to non-executive directors and entities associated with non-executive directors during the quarter. 9. SUBSEQUENT EVENTS Other than items disclosed above, including the acquisition of MARSS group (section 1), the secured commitment to the term loan facility (section 1) and the changes in performance and warranty bonds, and performance guarantees (section 3) there were no other material subsequent events. 10.AUDITED RESULTS All information included in this announcement is unaudited. EOS plans to release audited results on or around Thursday 19 February 2026. This announcement has been authorised for release to the ASX by the Board of Directors. All amounts are in Australian dollars unless stated. Further information: DR ANDREAS SCHWER Managing Director and Chief Executive Officer ir@eos-aus.com EOS INVESTOR HUB Questions relating to this announcement can be posted on our Investor Hub at the link below: https://investorhub.eos-aus.com/link/r6Vmor ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 8 ABOUT ELECTRO OPTIC SYSTEMS (ASX: EOS) EOS currently operates in two divisions DEFENCE SYSTEMS Defence Systems specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare. Its key products include next-generation remote weapon systems, vehicle turrets, high-energy laser weapons (directed energy), as well as fully integrated and modular counter-UAS and C4 systems. SPACE SYSTEMS Space Systems specialises in applying EOS-developed optical sensors and effectors to detect, track and characterise objects in space. It includes capabilities in the domain of space control. EOS CUSTOMER IDENTITIES EOS deals with a number of customers in the defence and security industries and in some instances has not disclosed the identity of all of these customers in this announcement. EOS confirms that:  it does not consider the identity of such customers to be information that a reasonable person would expect to have a material effect on the price or value of EOS securities; and  this announcement contains all material information relevant to assessing the impact of the matters referred to in this announcement on the price or value of EOS securities and is not misleading by omission. FORWARD LOOKING STATEMENTS This announcement may contain certain "forward-looking statements" including statements regarding EOS' intent, belief or current expectations with respect to EOS' business and operations, market conditions, results of operations, financial condition, and risk management practices.Thewords"likely", "expect", "aim", "should", "could", "may", "anticipate", "predict", "believe", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings, financial position and performance, establishment costs and capital requirements are also forward-looking statements. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This announcement may contain such statements that are subject to risk factors associated with an investment in EOS. Forward- looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of EOS to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED ABN Quarter ended (“current quarter”) 95 092 708 364 31 December 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 1. Cash flows from operating activities 77,262 194,555 1.1 Receipts from customers 1.2 Payments for (3,419) (10,291) research and development product manufacturing and operating costs (23,926) (89,118) advertising and marketing (861) (5,971) leased assets - - staff costs (18,480) (62,690) administration and corporate costs (10,247) (29,941) 1.3 Dividends received (see note 3) - - 1.4 Interest received 1,046 3,298 1.5 Interest and other costs of finance paid (1,589) (18,099) 1.6 Income taxes paid (478) (5,943) 1.7 Government grants and tax incentives - 15 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities 19,308 (24,185) ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) businesses (6,281) (6,281) (c) property, plant and equipment (5,340) (14,026) (d) investments - - (e) intellectual property (1,062) (6,017) (f) other non-current assets - - (g) term deposits - (60,000) 2.2 Proceeds from disposal / maturity of - - (a) entities (b) businesses - 159,975 (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) other non-current assets - - (g) term deposits 20,000 60,000 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Security Deposits 9,821 4,296 2.6 Cash balance disposed of in disposal of business - (3,366) 2.7 Transaction costs arising from disposal of business - (3,294) 2.8 Net cash from / (used in) investing activities 17,138 131,287 ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 3. Cash flows from financing activities 57 287 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - (48,219) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Repayment of lease liabilities (1,333) (5,084) 3.10 Net cash from / (used in) financing activities (1,276) (53,016) 4. Net increase / (decrease) in cash and cash equivalents for the period 71,495 52,304 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 19,308 (24,185) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 17,138 131,287 4.4 Net cash from / (used in) financing activities (item 3.10 above) (1,276) (53,016) 4.5 Effect of movement in exchange rates on cash held 251 526 4.6 Cash and cash equivalents at end of period 106,916 106,916 ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 106,916 71,495 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Note Cash and cash equivalents at end of quarter (should equal item 4.6 above) Not included in the cash figure above are: • Term deposits • Current and non-current cash security deposits securing performance bonds, premises and guarantees. 106,916 - 41,586 71,495 20,000 51,989 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 333 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - These amounts included in item 6.1 relate to salary and bonus payments to the executive director during the quarter and payments for directors’ fees and superannuation to non-executive directors and entities associated with non-executive directors during the quarter. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other – Export Finance Australia 49,227 49,227 7.4 Total financing facilities 49,227 49,227 7.5 Unused financing facilities available at quarter end - ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 7.6 Export Finance Australia Bond Facility: • During the quarter, the Group executed an amendment to its existing bond facility agreement with Export Finance Australia to reflect changes in security deposit requirements for performance bonds and guarantees following completion of contract deliverables. The cost of the bond facility agreement is included in Item 1.5 as other costs of finance paid. Under the amended agreement, after the end of the quarter, the prior US$33.2m (A$49.7m) performance bond was replaced with a US$16.0m (A$23.9m) warranty bond to reflect the Group’s warranty obligations and the cash security deposit is expected to be reduced accordingly during Q1 2026. The warranty bond is expected to be released upon completion of the warranty period in 2028. As part of the amendment, the previous covenants were replaced with new monthly and quarterly covenant requirements. The new covenants include a requirement that Tangible Net Worth exceed $220m and that a minimum unrestricted cash balance of $35m is maintained. The warranty bond is secured by a cash Security Deposit of US$9.3m (A$13.9m) and a fixed and floating charge over the assets of the Group. • Under the terms of a contract in Defence Systems, the Group signed an offset agreement w