ACROW LIMITED — AGM Information 2020

Nov 24, 2020

ASX:ACF

Acrow Formwork and Construction Services Limited

C/- Level 5, 126 Phillip Street

Sydney NSW 2000

==> picture [153 x 58] intentionally omitted <==

ASX Release

25 November 2020

Annual General Meeting - CEOs Presentation

Acrow Formwork and Construction Services Limited (ASX: ACF) (“Acrow” or “the Company”), is pleased to enclose the following presentation being given by CEO, Steven Boland at the Company’s Annual General Meeting being held at 1pm (AEDT) today.

This announcement has been approved by the Acrow Board of Directors for release to the ASX.

-ENDS-

About Acrow

Acrow is a leading hirer of formwork and scaffolding systems to large construction and civil infrastructure providers across Australia, operating a network of formwork and scaffolding branches in six states and employing approximately 245 people. The business services a diversified customer base of approximately 1,300 customers.

Acrow has a high quality and versatile portfolio of assets and has identified a number of near term growth opportunities, most particularly through the investment in capital equipment to take advantage of a range of opportunities in the growing East Coast civil infrastructure market, particularly in New South Wales and Victoria where the business is still underrepresented.

For further information, please contact:

Steven Boland Managing Director Ph: +61 (02) 9780 6500

Andrew Crowther Chief Financial Officer Ph: +61 (02) 9780 6500

Acrow Formwork and Construction Services Limited

Page 1

==> picture [228 x 91] intentionally omitted <==

Acrow Formwork & Construction Services Limited

Annual General Meeting CEO ADDRESS & TRADING UPDATE Chief Executive Officer – Steven Boland 25 November 2020

Continue to Execute on Strategy of Creating Long-term Shareholder Value

ACROW STRATEGY

==> picture [111 x 113] intentionally omitted <==

==> picture [131 x 130] intentionally omitted <==

==> picture [129 x 129] intentionally omitted <==

==> picture [129 x 129] intentionally omitted <==

==> picture [130 x 129] intentionally omitted <==

Become the Become the Earnings accretive leading leading Target High ROI Engineered Engineered Recruit train and Acquisitions Organic Formwork Scaffold retain the best primarily across Growth formwork management and Sales & Hire Solutions engineering opportunities solutions but may Equipment provider to the Talent to drive across States, include Solutions Australian cross-sell and new strategically the business Industrial Scaffold products positioned provider in industrial scaffold Australia market businesses

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 2

KEY HIGHLIGHTS[1]

EBITDA NPAT NET DEBT Pre-AASB16 Pre-AASB16 $14.6m $15.0m $9.0m +$10.9m +30% +20% UNDERLYING OP. CASH FULL YEAR EPS PROFIT[2] DIVIDEND 4.6cps $11.2m 1.05cps +5% (fully franked) +27% Lost Time Injury Freq. Rate XSO (adj.) 19.7 15.5 6.0 2.4 FY17 FY18 FY19 FY20

REVENUE $87.0m + 22%

==> picture [342 x 137] intentionally omitted <==

----- Start of picture text -----

ACF Share Price Relative to ASX Small Ordinaries
0.60
ACF XSO (adj.)
0.50
0.40
0.30
0.20
0.10
0.00
----- End of picture text -----

1.Underlying performance. Comparisons are to the previous full year. 2. Defined as EBITDA less maintenance capital expenditure less tax paid.

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 3

STRATEGIC PIVOT CONTINUES

Significant exposure to publicly funded civil infrastructure projects

Sales Contribution

==> picture [357 x 419] intentionally omitted <==

----- Start of picture text -----

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY17 FY18 FY19 FY20
Formwork Ind. Scaffold Comm/Resi Scaffold
----- End of picture text -----

• ❑ Continued strategic pivot away from highly competitive commercial/ residential scaffold markets, towards highly engineered formwork/industrial scaffold markets

• ❑ Significant exposure publicly funded civil infrastructure projects

• ❑ Formwork/industrial scaffold now comprises 75% of sales contribution, up from 43% in FY17

• ❑ Natform and Uni-span acquisitions align with

strategy

• ❑ Residential two–storey scaffold business exited FY19/FY20

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 4

FY20 KEY HIGHLIGHTS

6[th] Consecutive Year of EBITDA Growth

EBITDA[1] & Margin

==> picture [361 x 214] intentionally omitted <==

----- Start of picture text -----

$000
16,000 20%
18%
14,000
16%
12,000
14%
10,000 12%
8,000 10%
8%
6,000
6%
4,000
4%
2,000 2%
0 0%
FY15 FY16 FY17 FY18 FY19 FY20
EBITDA Margin
----- End of picture text -----

• ❑ Six consecutive years of EBITDA growth

• ❑ EBITDA margins continue to climb from 5% lows

• ❑ Solid contributions from Natform (record 4Q20 results) and Uni-span acquisitions and synergies

• ❑ Growth capex returning 40%[+] on investment

• ❑ Scale benefits emerging

1. EBITDA is presented pre-adoption of AASB 16 for comparative purposes

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 5

FY20 KEY HIGHLIGHTS

• 6[th] Consecutive Year of EBITDA

Growth

• ❑ Immediate implementation of risk mitigation measures

• ❑ No lost days or cases of COVID-19 across all operations

• ❑ In excess of $6m in reduced cash outflows over six

COVID-19 Response

• months (to Sep-20)

• ❑ Negotiated six-month deferral of debt repayments and extension of loan agreements

• ❑ Exited surplus depots and re-negotiated and extended leases

• ❑ Cancellation of interim dividend payment (re-instated final dividend)

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 6

FY20 KEY HIGHLIGHTS

• 6[th] Consecutive Year of EBITDA

Growth COVID-19 Response

Successful Acquisition and Integration of Uni-span

==> picture [347 x 260] intentionally omitted <==

• ❑ Uni-span acquired October 2019

• ❑ Highly complementary formwork equipment offering and introduction to exciting new business opportunity – Industrial Scaffold

• ❑ Provided access to leading international formwork equipment supplier – ULMA

• ❑ Integration benefits of $2.2m exceeded initial estimates

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 7

FY20 KEY HIGHLIGHTS

• 6[th] Consecutive Year of EBITDA

Growth

COVID-19 Response

Successful Acquisition and Integration of Uni-span

Natform Business Exceeding Expectations

==> picture [346 x 260] intentionally omitted <==

• ❑ Operations now fully integrated into Acrow

• ❑ Excellent performance from recently commenced Victorian operations – exceeding expectations

• ❑ Significant uplift in NSW operations – benefitting from design flexibility and commercial approach – back to pre-acquisition levels

• ❑ Queensland integration with Uni-span offering creating new market opportunities

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 8

FY20 KEY HIGHLIGHTS

• 6[th] Consecutive Year of EBITDA Growth

• COVID-19 Response

==> picture [249 x 150] intentionally omitted <==

----- Start of picture text -----

Successful Acquisition and
Integration of Uni-span
Natform Business Exceeding
Expectations
----- End of picture text -----

Expanded Product Offering and Footprint Nationally

==> picture [394 x 277] intentionally omitted <==

----- Start of picture text -----

Product Offering by State
Brisbane
Size:40,063m [2]
Asset Focus: F,CS, IS, Scr
Sydney
Perth Size:35,563m [2]
Size:17,600m [2] Asset Focus: F,CS, IS, Scr
Asset Focus: F & Scr Adelaide
Size:14,820m [2]
Asset Focus: F,CS,Scr Melbourne
Size:9,100m [2]
F : Formwork Asset Focus: F,CS,Scr
Launceston
CS : Scaffold
IS : Ind. Scaffold Asset Focus: F & CSSize:3,500m [2] Hobart
Scr : Screens Size:3,500m [2]
Asset Focus: F & CS
----- End of picture text -----

• ❑ Uniquely positioned nationally to offer a full suite of formwork, scaffold, screening products and services across all segments of the construction and industrial maintenance markets

• ❑ Integrated sales teams provide cross-sell opportunities

• ❑ Increasing focus on Product Sales

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 9

FY20 KEY HIGHLIGHTS

6[th] Consecutive Year of EBITDA Growth

COVID-19 Response

Successful Acquisition and Integration of Uni-span

Natform Business Exceeding Expectations

Expanded Product Offering and Footprint Nationally

Record Hire Contracts Won and Pipeline

Hire Contracts Won ($m)

==> picture [359 x 166] intentionally omitted <==

----- Start of picture text -----

+62%
16.2
13.4
11.1
10.0
1H19 2H19 1H20 2H20
----- End of picture text -----

Current Pipeline – Potential Hire Revenue ($m)

==> picture [319 x 150] intentionally omitted <==

----- Start of picture text -----

+63%
76.3
63.4
46.8
Jun-19 Dec-19 Jun-20
----- End of picture text -----

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 10

SUN-METALS ZINC REFINERY EXPANSION PROJECT - TOWNSVILLE

==> picture [192 x 279] intentionally omitted <==

==> picture [193 x 279] intentionally omitted <==

==> picture [192 x 279] intentionally omitted <==

Acrow’s Largest Contract To-date

Combination Of Acrow Supercuplock And Uni-span MK System Equipment Contract commenced Dec-19 – contract period 6 months

==> picture [294 x 179] intentionally omitted <==

==> picture [295 x 179] intentionally omitted <==

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 11

SUN-METALS ZINC REFINERY EXPANSION PROJECT - TOWNSVILLE

==> picture [422 x 229] intentionally omitted <==

• ❑ Initial contract of $2.8m awarded by Western Downs contracting for supply of Acrow Supercuplock and Uni-span MK System

• ❑ Additional $1.3m of work secured for further equipment and supply of labour

• ❑ Further $3.0m of work secured from multiple subcontractors including Zico Formwork, Barrier Reef Contracting, Steuler Australia and RB Welding

• ❑ Total work done exceeded $7m at completion

Standard industry practice for value of work done to grow over the term of a project

==> picture [657 x 192] intentionally omitted <==

----- Start of picture text -----

$7.1m
$4.1m
$2.8m
Initial contract Additional Total work done
work secured at completion
----- End of picture text -----

Annual General Meeting 2020

| 12

MARQUEE CIVIL PROJECT INVOLVEMENT

==> picture [182 x 223] intentionally omitted <==

==> picture [182 x 224] intentionally omitted <==

Sydney Metro Completion: mid-2022 Contracts: Multiple contracts awarded Stations: Marrickville/ Chatswood/Barangaroo Supply: Sales + hire Won to-date: $4.5m Opportunity: Well positioned - additional contracts available

Melbourne Metro

Completion: mid-2022 Contracts: Multiple contracts awarded Stations: Arden St/ CBD North & CBD South Supply: Sales + hire Won to-date: $3.5m Opportunity: Well positioned - additional contracts available

==> picture [182 x 224] intentionally omitted <==

==> picture [182 x 224] intentionally omitted <==

Melbourne Western Dist. Completion: mid-2022 Contracts: Multiple contracts awarded Location: South/North Portals & Hyde St Ramp Supply: Hire Won to-date: $3.5m Opportunity: Well positioned - additional contracts available

Snowy Hydro 2.0 Completion: 2027 Contracts: n/a Location: Tantangara/ Talbingo Supply: Sales Won to-date: $300k Opportunity: Early Stage. First formwork equipment supplied to job - additional contracts available

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020

| 13

TRADING UPDATE

❑ Group EBITDA - 4 months to October 2020

• Exceeding expectations

• Well ahead of previous corresponding period (pcp)

• Comfortably ahead of budget

• ❑ Victorian formwork business up 97% on pcp

• Assisted by Melbourne Metro Rail and Western Distributor projects

• ❑ Natform – strong start with 65% of budgeted revenue contracted year to-date

• ❑ Industrial Scaffold business renewed Origin Surat Basin contract - est. $13m revenue over 5 years

• ❑ Two speed construction sector – Public spending driving growth. Private remains soft

• ❑ On track to achieve 25% yoy uplift in new contracts secured in 1H21

• ❑ Currently comfortable with FY21 EBITDA consensus broker forecast of $22.3m

==> picture [313 x 417] intentionally omitted <==

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020 | 14

PRIORITIES

Targeting High ROI Organic Growth Opportunities

Product Sales/Online Platform - Greater focus on product sales across all brands. Launch online platform

Industrial Scaffold -

Develop national footprint in industrial scaffold business

Commercial Scaffold Opportunities – monitor competitor landscape for organic growth opportunities

Engineering Team - Promote technical expertise and capabilities to civil construction sector

New Clients/Markets - Expand and promote formwork capabilities and expertise in new markets

Employ High Calibre Professionals – Become the industry leading employer of choice

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020 | 15

IMPORTANT NOTICE

This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepared as of its date and remains subject to change without notice. This presentation has been provided to you solely for the purpose of giving you background information about Acrow Formwork and Construction Services Limited (“Acrow”).

No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. Neither Acrow, its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers makes any representations or warranties that this presentation is complete or that it contains all material information about Acrow or which a prospective investor or purchaser may require in evaluating a possible investment in Acrow or acquisition of shares. To the maximum extent permitted by law, none of those persons accept any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation. Acrow has not independently verified any of the contents of this presentation (including, without limitation, any of the information attributed to third parties). No person is under any obligation to update this presentation at any time after its release to you.

Certain statements in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should” , “could”, “may”, “predict”, “plan”, “propose”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements.

Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in Acrow and neither this presentation nor any of the information contained herein shall form the basis of any contract or commitment. In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.

This presentation may not be reproduced or redistributed to any other person.

In receiving this presentation, each recipient agrees to the foregoing terms and conditions.

==> picture [262 x 33] intentionally omitted <==

Annual General Meeting 2020 | 16