Announcement PDF ASX RELEASE 23 September 2026 ANNUAL REPORT - UPDATE AVA Risk Group Limited (ASX:AVA) appends an updated copy of its Annual Report. This copy incorporates an amendment to the header and footer of the Auditor’s Independence Declaration contained therein, and is in the final published format. The content of the report remains otherwise unchanged. This announcement is authorised for release by the Board of Directors. - ENDS - For further information, please contact: Investor & Media Enquiries Alexandra Abeyratne Citadel-MAGNUS aabeyratne@citadelmagnus.com +61 438 380 057 2 About Ava Risk Group Ava Risk Group is a global leader in providing technologies and services to protect critical and high value assets and infrastructure. It operates three business segments – Detect, Access and Illumination. The Detect segment manufactures and markets ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access is a specialist in the development, manufacture and supply of high security biometric readers, security access control and electronic locking products. Illumination specialises in the development and manufacture of illuminators, ANPR cameras and perimeter detectors. Ava Risk Group products and services are trusted by some of the most security conscious commercial, industrial, military and government clients in the world. www.avariskgroup.com DETECT ACCESS ILLUMINATE 2026 ANNUAL REPORT AVA Risk Group Limited 2026 Annual Report 2 | 2025 ANNUAL REPORT AVA GROUP ABN 67 064 089 318 DIRECTORS David Cronin, Chairman and Non-Executive Director Mark Stevens, Non-Executive Director Mike McGeever, Non-Executive Director Rear Admiral Terence McKnight (USN, Ret.), Non-Executive Director Bryant Henson, Chief Executive Officer (formal appointment pending receipt of Australian Directors ID) COMPANY SECRETARIES Neville Joyce, Kim Larkin REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS 10 Hartnett Close, Mulgrave, Victoria 3170, Australia Telephone: +61 3 9590 3100 INVESTOR RELATIONS Email: investor@theavagroup.com SHARE REGISTRY Boardroom Pty Limited Grosvenor Place, Level 12, 225 George Street, Sydney, NSW 2000, Australia Telephone (within Australia): 1300 737 760 Telephone (outside Australia): +61 2 9290 9600 Facsimile: +61 2 9279 0664 STOCK EXCHANGE AVA Risk Group Limited shares are quoted on the Australian Securities Exchange (ASX). ASX Code: AVA BANKERS Westpac Banking Corporation 275 Kent Street, Sydney, NSW 2000, Australia AUDITORS BDO Audit Pty Ltd, Collins Place, Level 25, 35 Collins Street, Melbourne, VIC 3000 WEBSITE www.theavagroup.com Information correct as at 28 August 2026. Corporate Information CHAIRMAN’S REPORT 1 CHIEF EXECUTIVE OFFICER’S REPORT 3 DIRECTORS’ REPORT 5 AUDITOR’S INDEPENDENCE DECLARATION 24 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER 25 COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION 27 CONSOLIDATED STATEMENT OF CASH FLOWS 29 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DIRECTORS’ DECLARATION 76 INDEPENDENT AUDITOR’S REPORT 78 SHAREHOLDER INFORMATION 83 Table Of Contents DEAR FELLOW SHAREHOLDERS AND ASSOCIATES FY2026 did not deliver the financial outcome we expected. Several significant project orders moved into FY2027, constraining reported revenue and earnings. Importantly, the underlying strategic position of AVA Risk Group Limited (“AVA”, “AVA Group”, “the Company”) strengthened materially during the year. The Board’s focus has been to ensure that the Company has the leadership, capital, commercial capability and market access required to convert its differentiated technology into sustainable growth. A major step was the appointment of Bryant Henson as Group Chief Executive Officer following an extensive global search. Bryant commenced on 24 August 2026 and brings deep experience in defence, aerospace, government, secure communications and critical infrastructure. His career includes senior leadership roles at Lockheed Martin and L3Harris Technologies, where he led multi-billion-dollar mission-critical technology businesses, and most recently Otis Worldwide, where he served as Executive Vice President and Global Head of Strategy and Business Development. His appointment is deliberately aligned with the Company’s ambition to accelerate growth in the United States and other international markets. We also strengthened the commercial organisation. During FY2026, three senior sales leaders in the United States, Asia-Pacific and Europe each generated annual sales order intake of between $3.9 million and $5.0 million. Additional experienced sales executives were recruited in the United States, South-East Asia and India, expanding our coverage in markets where AVA has established technology credentials and a growing opportunity pipeline. The strategic investment from Hale Capital was another important milestone. AVA secured up to $7.0 million through a Convertible Loan Note, together with associated warrants of up to $5.6 million. Hale brings more than capital: it provides experience, networks and market access across US federal, state, enterprise and critical-infrastructure markets. The subsequent appointment of Rear Admiral Terence “Terry” McKnight (USN, Ret.) to the Board further strengthens this alignment. Terry brings more than 40 years of US Navy and defence-industry leadership, including experience supporting major US Department of Defense programs and relationships with government stakeholders and prime contractors. AVA’s technology platform remains the foundation of the investment case. Detect, led by Aura Ai-X, is increasingly being applied beyond conventional perimeter security into high-consequence infrastructure including sovereign borders, aviation, rail, energy, telecommunications and subsea networks. In Access, the five-year UniKey agreement and refreshed reader range create a platform for mobile, NFC and wallet-enabled credentials, while Dormakaba and other channel relationships provide routes to market. Illuminate remains focused on disciplined channel growth, OEM relationships and cross-selling into Detect customers. The financial result should be viewed with appropriate candour. Revenue and other income was $28.8 million and underlying EBITDA was positive at $0.1 million. Approximately $6.0 million of expected orders were delayed into FY2027; no material contracts were lost or cancelled. Consolidated gross margin remained strong at 63% and operating costs were slightly lower than the prior year. This matters because much of the technology and operating platform is already established, providing meaningful operating leverage as revenue grows. Chairman’s Report The Board therefore enters FY2027 with a sharper strategy and a clear execution agenda. The priority is not to reinvent the business; it is to convert the platform that has now been built. In particular, we are focused on: •  Accelerating the United States, with particular emphasis on federal, defence, government and critical-infrastructure markets; •  Converting proven Detect applications in aviation, rail, telecommunications and subsea, energy and sovereign border protection into repeat and multi-site deployments; •  Growing higher-quality revenue through recurring services, OEM and channel relationships, and the commercialisation of the refreshed Access portfolio. FY2027 is an execution year. The Company enters it with $6.8 million of sales order backlog, including $2.6 million of contracted annual recurring revenue, a stronger global commercial team and a clearer concentration of resources on markets where our technology has demonstrated differentiation. The Board sees a credible pathway to improved revenue, EBITDA and cash generation if we execute with greater consistency and discipline. Finally, on behalf of the Board, I thank our shareholders and associates for their continued support, and I acknowledge the commitment of our management and staff during a year of significant change. FY2026 was financially disappointing, but the Company exits the year strategically stronger. We now have the responsibility to translate that progress into measurable financial performance and long-term shareholder value. David Cronin Chairman | 2 2026 ANNUAL REPORT AVA GROUP REVIEW OF OPERATIONS I joined AVA on 24 August 2026, after the end of the financial year under review. I therefore did not lead the business during FY2026. My initial assessment, however, is clear: AVA has differentiated technology that has already been validated in demanding security and critical-infrastructure environments, a high gross-margin business model, and substantially greater addressable-market potential than is reflected in its current revenue base. The opportunity in FY2027 is to convert those strengths into more consistent order intake, revenue growth and cash generation. FY2026 was affected by the timing of several significant projects. Sales order intake was $29.4 million, broadly in line with FY2025 ($29.9 million), while approximately $6.0 million of anticipated orders moved into FY2027. No material contracts were lost or cancelled. At the same time, the Company made meaningful progress in the markets that now form the core of our growth strategy. •  United States, Federal & Defence: The United States is a central strategic priority. FY2026 order intake in the Americas was $6.2 million, supported by corrections and government-security activity, while $1.9 million of energy and government opportunities remained open at year end and were carried into FY2027. The Hale partnership, strengthened US commercial capability, the appointment of Rear Admiral McKnight and my own appointment are deliberately aligned to building a more substantial position across federal, defence and critical-infrastructure markets. • Aviation: AVA completed paid PIDS trials at Canberra and Cairns airports and commenced comprehensive trials at Melbourne and Perth during H2 FY2026. The identified FY2027 Australian aviation pipeline exceeds $2.0 million. Successful conversion would provide important reference sites and a pathway to repeat deployments as Australian airports modernise perimeter security. •  Rail & Transportation: The Sydney Metro deployment with UGL is a strategically important reference installation for Aura Ai-X corridor intrusion and obstacle detection. During FY2026 the Company successfully tested object-detection capability on the live rail corridor, a critical milestone towards project completion. The application has expanded beyond the original scope into additional transport infrastructure, demonstrating the potential for technology adoption to grow within a customer once performance is proven. Completion of Sydney Metro is expected to make a broader set of Australian rail opportunities addressable and provides a reference for international opportunities. •  Telecommunications & Subsea: AVA continued its collaboration with Telstra, including data collection from Aura Ai-X deployed on a subsea cable in northern Sydney and participation in Telstra marketing initiatives demonstrating protection of critical telecommunications infrastructure. The strategic importance of subsea and terrestrial communications networks is increasing, creating a significant long-term application for fibre sensing across cable landing infrastructure, terrestrial routes and network facilities. •  Energy & India: The Company successfully fulfilled a $2.7 million contract to deploy fibre sensing technology to a critical pipeline in the Indian energy sector. This builds on AVA’s prior success in Indian defence and provides a significant reference for further opportunities across pipelines, storage, processing and other critical-energy infrastructure. India remains an important FY2027 growth market across both energy and defence. •  Sovereign Borders & Government: AVA supplied detection systems for border protection in Latvia, building on prior success in Eastern Europe. A $2.8 million Middle East sovereign-border opportunity was delayed by regional conflict and moved into FY2027. The Company was also appointed as a prequalified supplier to the Australian Department of Home Affairs Border Protection Technologies Panel for an initial five-year term from 1 July 2026, providing a structured procurement pathway for Commonwealth border-security and critical-infrastructure opportunities. • Access: BQT entered into a five-year Master Supply and Services Agreement with UniKey to co-develop five next-generation NFC/ BLE reader form factors. The agreement includes minimum purchase commitments and is anticipated to generate $4.6 million of revenue over five years, subject to successful completion of the co-developed products. Alongside the refreshed reader range and dormakaba distribution network, this provides a clearer platform for growth in North America, Europe and other markets. • Illuminate: The strategy is deliberately focused: grow through distributor and OEM relationships, expand in the United States and use the installed Detect customer base to create cross-sell opportunities. This approach is intended to increase revenue while maintaining discipline around fixed-cost investment. Chief Executive Officer’s Report Financial Review A$m FY2026 FY2025 Change Revenue and other income 28.8 31.7 (2.9) Underlying EBITDA* 0.1 2.1 (2.1) Loss After Tax (3.2) (6.5) 3.3 Reconciliation of Underlying EBITDA* FY2026 FY2025 Change Underlying EBITDA 0.1 2.1 (2.1) Impairment of Goodwill (0.7) (5.6) 4.9 Impairment of Intangibles (0.4) - (0.4) Depreciation & Amortisation (3.8) (3.5) (0.3) Finance Expense (0.7) (0.2) (0.5) Foreign Exchange Gain / (Loss) 0.7 0.1 0.6 Fair value gain on financial liabilities 1.8 0.0 1.8 Tax (Expense) / Benefit 0 0.7 (0.7) Loss After Tax (3.2) (6.5) 3.3 *EBITDA is unaudited Revenue and other income for FY2026 was $28.8 million, $2.9 million below the prior year, principally reflecting project timing in Detect. Consolidated gross margin remained strong at 63% and operating costs were slightly lower than FY2025. Underlying EBITDA remained positive at $0.1 million despite the lower revenue outcome. At 30 June 2026, the Company had a cash balance of $5.3 million and sales order backlog of $6.8 million, including $2.6 million of contracted annual recurring revenue. The statutory net loss of $3.2 million included impairment charges against intangible assets and goodwill of $1.1 million. The statutory net loss was $3.3 million less than the prior year, which included a $5.6 million impairment charge against goodwill. The combination of sustainable gross margins, an established technology platform and a scalable operating cost base creates meaningful earnings leverage if the Company improves revenue conversion. Outlook FY2027 is focused on execution. The Company expects performance to be significantly stronger than FY2026, with management concentrating on converting existing opportunities and demonstrating the operating leverage inherent in the business model. The key priorities are: •  Convert the $6.8 million opening backlog and delayed FY2026 opportunities into revenue and cash, while improving forecasting discipline and pipeline conversion; •  Accelerate the United States under new leadership, with particular focus on federal, defence, corrections, energy and other critical- infrastructure customers; •  Scale Detect across six priority markets: US Federal & Defence, telecommunications & subsea, aviation, rail & transportation, energy & critical infrastructure, and sovereign border protection; •  Commercialise the refreshed Access portfolio, execute the UniKey program and expand dormakaba and other distribution channels; • Grow Illuminate through targeted distributor, OEM and US cross-sell opportunities while maintaining cost discipline; •  Maintain consolidated gross margins in the 60% - 64% range and a stable, scalable operating cost base so that incremental revenue can translate into stronger EBITDA and cash generation; •  Increase the quality and predictability of revenue through recurring services, repeat deployments, multi-site programs and strategic channel relationships; •  Leverage established technology platforms in each operating segment, which require minimal incremental development effort to scale as revenue grows. Bryant Henson Chief Executive Officer | 4 2026 ANNUAL REPORT AVA GROUP The directors present their report together with the financial report of the Consolidated Entity (referred to hereafter as the “Group” or “Consolidated Entity”) consisting of AVA Risk Group Limited (referred to hereafter as the “Company” or “AVA Risk Group” or “AVA Group”) and the entities it controlled for the financial year ended 30 June 2026 and auditor’s report thereon. Directors The names of directors in office at any time during or since the end of the year are detailed in the table below. The directors have been in office since the start of the year to the date of this report unless otherwise stated. Information on Company Directors and Company Secretaries The qualifications, experience and special responsibilities of each person who has been a director of AVA Group at any time since 1 July 2025 to the date of this report is provided below, together with details of the company secretaries as at the year end. Name, qualifications, and independence status Experience, special responsibilities and other directorships David Cronin Chairman of the Board (Appointed 31 August 2018) Non-Executive Director (Appointed 10 April 2018) David has over 25 years professional experience and more than 15 years of international experience at the director/ chairman board level. David is presently the Managing Director of the investment & consulting group Pierce Group Asia where he is responsible for its technology focussed corporate development and investment activities. Previous to his role at Pierce Group Asia, David was an investment manager for the London listed Guinness Peat Group PLC and Director of M&A for its technology focussed division. Working for several large financial and non- financial institutions, David has been involved in various advisory, executive level and board positions with several early to mid-stage technology companies. David has extensive knowledge of AVA Group and the security markets that it services. He has more than 10 years of board level experience within AVA Risk Group, having previously served as a Director and Chairman of AVA Group prior to its IPO. Mr Cronin is not a director of any other ASX listed entity in the last three years. Mike McGeever Non-Executive Director (Appointed 8 August 2018) Mr McGeever has over 35 years’ experience in the military, facilities and securities sectors. Prior to his retirement in 2015, Mr McGeever was the Managing Director and founder of Transguard Group LLC, a UAE based security and facilities management company and one of the largest security companies in the world, employing 55,000 staff. Prior to that he held senior positions in a range of security and facilities focussed companies. Mr McGeever has a Master of Business Administration from the University of Portsmouth (England). Mr McGeever is not a director of any other ASX listed entity in the last three years. Mark Stevens Non-Executive Director (Appointed 11 March 2015) Mark is an accomplished executive and company director with more than 40 years of leadership experience across the telecommunications, defence and information technology sectors. He has held senior executive roles with multinational corporations headquartered in the United States, Singapore, Sweden and Australia, leading regional sales, technology, operations and general management functions. Mark holds a Master of Business Administration from the University of Melbourne, a Bachelor of Engineering from Monash University, and is a Graduate Member of the Australian Institute of Company Directors. He is not a director of any other ASX listed entity in the last three years. Directors’ Report Rear Admiral Terence “Terry” McKnight (USN, Ret.) Non-Executive Director (Appointed 21 July 2026) Terry brings more than forty years of distinguished leadership across the U.S. Navy and defence industry. He most recently served as Senior Vice President, Customer and Government Relations at CAES by Honeywell, where he played a key role in driving growth across major U.S. Department of Defense programs and strengthening relationships with government stakeholders and prime contractors. During his military career, Terry held a number of senior command roles, including Commander of Expeditionary Strike Group Two, and the inaugural Commander of Combined Task Force 151, leading multinational counter-piracy operations in the Gulf of Aden. Terry is not a director of any other ASX listed entity in the last three years. Bryant Henson Group Chief Executive Officer (Appointment pending) Bryant Henson was appointed Group Chief Executive Officer effective 24 August 2026. Bryant will also be appointed as an Executive Director subject to receipt of an Australian Directors ID. Bryant is an internationally experienced technology, defence and critical infrastructure executive with more than two decades of leadership experience building and scaling global businesses serving defence, aerospace, government, critical infrastructure and commercial security markets. Throughout his career, Bryant has developed extensive experience leading complex international technology businesses, building high performing commercial organisations, executing strategic growth initiatives and developing long-term relationships with government, defence and critical infrastructure customers across the United States and internationally. Bryant is not a director of any other ASX listed entity in the last three years. Malcolm Maginnis Previous Group Chief Executive Officer (CEO) and Executive Director – appointed on 9 January 2023. Mr. Maginnis ceased to be a Director on 20 November 2025. Malcolm has more than 35 years of experience in the defence, security, safety and technology industries. Mal served as President of Rapiscan Systems from July 2017 until September 2022 – a US-headquartered global manufacturer of security equipment and systems. Prior to joining Rapiscan, Malcolm was head of Iveagh Technology a technology development company based in Singapore and part owner of SX Technologies, a Sydney-based detection company. He was also President of Smiths Detection from 2011 to 2014. Joint Company Secretaries Neville Joyce | Appointed 3 November 2021 Neville is a highly experienced financial and commercial executive with proven expertise across multiple sectors including energy, mining, technology and manufacturing. With extensive experience in leadership, management and strategic financial analysis, Neville has held senior finance positions at Origin and Energy Australia including roles as Chief Financial Officer and Divisional Head of Finance. Prior to joining AVA Group, Neville was Group Chief Financial Officer at Redflex Holdings Limited from 2017 to 2021. Neville is a CPA and holds a Bachelor of Business. Kim Larkin | Appointed 20 January 2017 Kim is an experienced business professional with 24 years’ experience in the banking and finance industries and 7 years as a Company Secretary (in-house) of an ASX300 company. Her experience includes debt and capital raising, risk management, mergers and acquisitions, compliance and governance. Kim currently acts as Company Secretary to various ASX listed and unlisted companies in Australia and is the Head of Corporate Services for Boardroom Pty Limited’s Queensland office. Directors’ Meetings The number of meetings of the board of directors and of each board committee held during the financial year and the number of meetings attended by each director are: Board of Directors’ Meetings Meetings of Audit & Risk Committee (ARC) Meetings of Remuneration & Nomination Committee (REM) Eligible to Attend Attended Eligible to Attend Attended Eligible to Attend Attended D Cronin 12 12 5 5 3 3 M Stevens 12 12 5 5 3 3 M McGeever 12 12 5 5 3 3 M Maginnis 4 4 - - - - | 6 2026 ANNUAL REPORT AVA GROUP Directors’ Report <continued> Committee Membership As at the date of this report, the Company had an Audit & Risk Committee, and a Remuneration & Nomination Committee of the Board of Directors. Members acting on the committees of the Board during the year were: Audit & Risk Committee Remuneration & Nomination Committee M Stevens (Chairman) M McGeever (Chairman) D Cronin D Cronin M McGeever M Stevens Gender Diversity Policy The Remuneration & Nomination Committee is responsible for setting the diversity policy of the Company. The Committee has established a diversity policy for the Company, which is disclosed on the Company website. Measurable objectives for achieving gender diversity have been set with the Company assessing annually both the objectives and the entity’s progress in achieving them. The Company has set an objective to ensure that the representation of women across the business is 25%. During the year ended 30 June 2026, women represented 28% of the business. Whilst AVA Group particularly focuses on narrowing the gap in gender representation across all levels, it strives for equal development opportunities for all employees, irrespective of gender, cultural, physical capabilities, or other differences. Directors’ Interests in shares or performance rights As at 30 June 2026, the interests of the directors in the shares and performance rights of AVA Group are as detailed below: Number of ordinary shares Number of performance rights Number of performance rights forfeited / exercised during the year D Cronin 33,750,706 - 200,000 M Stevens 1,821,780 - 200,000 M Mc Geever 6,005,000 - 200,000 M Maginnis 1,000,000 - 2,833,333 Principal Activities The principal activities of the Consolidated Entity during the financial year were: • the provision of security technology products for perimeter intrusion detection solutions; •  the development, manufacture and supply of high quality, high security card and biometric readers, electromechanical locks and related electronic security products; and •  manufacture and supply of professional external security and intruder detection equipment including ANPR cameras, lighting controllers and infrared and white-light LED Illuminators. Review of Operations I joined AVA on 24 August 2026, after the end of the financial year under review. I therefore did not lead the business during FY2026. My initial assessment, however, is clear: AVA has differentiated technology that has already been validated in demanding security and critical-infrastructure environments, a high gross-margin business model, and substantially greater addressable-market potential than is reflected in its current revenue base. The opportunity in FY2027 is to convert those strengths into more consistent order intake, revenue growth and cash generation. FY2026 was affected by the timing of several significant projects. Sales order intake was $29,400,000, broadly in line with FY2025 ($29,900,000), while approximately $6,000,000 of anticipated orders moved into FY2027. No material contracts were lost or cancelled. At the same time, the Company made meaningful progress in the markets that now form the core of our growth strategy. •  United States, Federal & Defence: The United States is a central strategic priority. FY2026 order intake in the Americas was $6,200,000, supported by corrections and government-security activity, while $1,900,000 of energy and government opportunities remained open at year end and were carried into FY2027. The Hale partnership, strengthened US commercial capability, the appointment of Rear Admiral McKnight and my own appointment are deliberately aligned to building a more substantial position across federal, defence and critical-infrastructure markets. • Aviation: AVA completed paid PIDS trials at Canberra and Cairns airports and commenced comprehensive trials at Melbourne and Perth during H2 FY2026. The identified FY2027 Australian aviation pipeline exceeds $2,000,000. Successful conversion would provide important reference sites and a pathway to repeat deployments as Australian airports modernise perimeter security. •  Rail & Transportation: The Sydney Metro deployment with UGL is a strategically important reference installation for Aura Ai-X corridor intrusion and obstacle detection. During FY2026 the Company successfully tested object-detection capability on the live rail corridor, a critical milestone towards project completion. The application has expanded beyond the original scope into additional transport infrastructure, demonstrating the potential for technology adoption to grow within a customer once performance is proven. Completion of Sydney Metro is expected to make a broader set of Australian rail opportunities addressable and provides a reference for international opportunities. •  Telecommunications & Subsea: AVA continued its collaboration with Telstra, including data collection from Aura Ai-X deployed on a subsea cable in northern Sydney and participation in Telstra marketing initiatives demonstrating protection of critical telecommunications infrastructure. The strategic importance of subsea and terrestrial communications networks is increasing, creating a significant long-term application for fibre sensing across cable landing infrastructure, terrestrial routes and network facilities. •  Energy & India: The Company successfully fulfilled a $2,700,000 contract to deploy fibre sensing technology to a critical pipeline in the Indian energy sector. This builds on AVA’s prior success in Indian defence and provides a significant reference for further opportunities across pipelines, storage, processin