Robotic technology company FBR Limited (ASX: FBR) held its AGM in Sydney today, signing off on a busy and highly successful year that has laid the foundation stones for a step-change in its efforts to commercialise the Hadrian technology.
Below is an edited version of managing director Mike Pivac’s address to shareholders:
“Thanks to the hard work and dedication applied to the multiple programs and work streams underway within FBR by our unique and capable team, we have reached an important stage of our company’s journey, setting the stage for what could be an extraordinary phase of growth in the years ahead.
“Moving from a period where our sole focus was the research and development of our core technology, the design and manufacture of the next-generation Hadrian X and the commissioning and demonstration of this 21st century machine, we have achieved a significant number of important milestones and are now in the phase of early commercialisation of the Hadrian X®, with trials of our Wall as a Service (WaaS) offering to customers in the United States.
“In addition, we are seeing a high level of inbound interest for FBR’s core technology and long-reach stabilised boom capabilities from large multinational companies in adjacent industries where labour constraints and the need for automation efficiencies are highly sought after.
“This demonstrates to us that there may be new opportunities for the company where we provide valuable solutions to unique problems and help deliver positive effect and change.
“A critical step in the commercialisation of the Hadrian X® and for future robotic solutions is ensuring adequate IP protection for the advanced technologies that drive our machines and systems through the filing of an additional nine international patents. This brings the number of patent families now to over 40, further extending the competitive advantage that our IP provides and therefore creating future potential value for our shareholders.
“This past year we have continued to prove the versatility and commercial viability of the next-generation Hadrian X®, which from the time it laid its first blocks has made significant improvements to speed and reliability compared to its predecessor.
“In fact, 18,000km away in the United States, the same robot is currently undertaking a 10-home Demonstration Program with one of the largest building materials companies in the world, in one of the largest residential construction markets in the world.
“Concurrently, here in Australia, our team continued to work on the two existing construction projects that we had underway, namely the Willagee and St James projects in Perth. Both involve the construction of two-storey, medium-density townhouses – 16 townhouses at Willagee and eight townhouses at St James.
“Each of these now-completed projects had levels of complexity not attempted before by FBR and certainly not by any other construction robotics technology company in the world, further demonstrating that FBR is by far the global leader in this pioneering space.
“Our people are our most important asset and ensuring their safety is our top priority. Over the past two years, with the increased levels of activity and associated risks, we have sought to increase a focus on reducing and mitigating the risks that our people and our assets face through the implementation of a new safety management system and through increasing education and training with respect to safety, hazard identification and risk.
“It is pleasing to see that these measures are providing results, with a reduction in the number of incidents, reduced occurrence of injury and increased levels of improvements throughout the business. We will continue to make SHEQ a key tenet of our business, ensuring a focus on safety and quality as we expand to new geographies and our business experiences higher levels of complexity and risk.
“A highlight for FY24 came in January when FBR announced the signing of a suite of agreements with CRH Ventures, the investment arm of CRH plc, to jointly build up to 10 homes under a Demonstration Program in Florida. The intended result will be the formation of a Wall as a Service® joint venture between FBR and CRH Ventures to provide our Wall as a Service offering to customers in Florida.
“Under the Demonstration Program, CRH can exercise the option to form a JV at any time up until 45 days post-completion of the Demonstration Program. Since announcing the signing of agreements to the market, we have successfully progressed through a number of significant milestones, which in turn have unlocked corresponding payments from CRH.
“With six of the 10 homes required under the Demonstration Program now completed, we expect completion of the next house structure very soon. Work orders for the final three homes are anticipated to be received shortly.
“If the Option Agreement is exercised by CRH, a joint venture between CRH (49%) and FBR (51%) will be established to supply WaaS® using Hadrian X® construction robots in the US. The JV will issue an initial order for 20 Hadrian X® robots at US$2 million each, funded by a US$40 million credit facility from CRH.
“Once the first 20 units are successfully operated, the JV may order 39 additional robots, followed by another 40, with a potential total of 300 units.
“In preparation for the internal demands we will experience should the JV Option be exercised, FBR is scaling its manufacturing capabilities to more efficiently produce the modular components of the Hadrian X®, with support and advice from OEM Liebherr-Mischtechnik.
“This partnership, outlined in a Memorandum of Understanding that was extended this year, aims to ensure Hadrian X®’s commercial scalability, with the potential for a long-term manufacturing and commercialisation agreement.
“Our development roadmap outlines the updates and upgrades to various modules that make up the Hadrian X® and is driven by our focus on continuous improvement. Improvements we implement are all made to affect positive change in the speed, accuracy, reliability and overarching economics of our machines.
“FBR recently announced a Share Purchase Plan, priced at 3.8c per share. The SPP will close on November 26. Funds raised from the SPP will provide additional working capital to deliver on the key milestones that lie ahead of us, including the completion of the Demonstration Program in Florida.
“The progress we have made to date proves that our technology has the potential to make a significant impact in each of the markets that it will operate in. This gives FBR a strong competitive edge and enhances its appeal to leading companies worldwide.
“Our business is poised for substantial transformation in the coming years as we scale to meet the anticipated demand for our technology. With each step forward, my confidence grows in FBR’s unique technology and business model, which I believe have the potential to create a meaningful, positive impact on the global construction industry.”
