ACUMENTIS GROUP LIMITED — AGM Information 2017

Nov 22, 2017

LandMark White 2017 AGM

November 23, 2017

Chairman’s Address – Glen White

Good afternoon ladies and gentlemen and thank you for joining us at LMW’s Annual General Meeting.

I would personally like to thank Chris Coonan, Chief Executive Officer, for his professionalism in leading the company since his appointment in April 2016 and his leadership in executing and integrating the merger with MVS National. Along with his senior executive team, they have continued to build upon the strategies that underpin the company’s growth. We are now the 4[th] largest property valuation company in Australia.

LMW has a long and proud heritage, providing property valuation services to many thousands of homeowners, investors, developers and lenders. We as a company have significant experience across a number of property market cycles and provide to our many valued clients independent property advice that they can rely on. As an acknowledged leader in the field of property valuation in Australia, our brand is synonymous with quality of product and service.

Highlights from the Year

• Merger with MVS National.

• Gross Revenues including franchised offices & joint venture businesses increased 5.0% to $38.9m.

• Growth in 2017 ($2.3m) was driven by the addition of MVS ($1.7m) and organic growth ($0.6m).

• Revenues from owned businesses increased 9.7% to $25.1m of which 2.2% growth came from the existing business and 7.5% from MVS.

• Net Profit Before Tax up 1.1% to $2.4m. However, the increase was 4.0% excluding profits from MVS and one-off costs posted to the profit and loss account.

• Full year dividend paid of 4.5 cents per share.

The company has and continues to diversify its service offerings which to date has included residential, commercial, government and advisory services across Australia. This diversity of revenue has served the company well in the past and is an approach that LMW continues to develop.

Merger with MVS

The recent merger with MVS has increased the company’s scale and coupled with a conservative balance sheet and disciplined approach to managing this growth, we have been able to perform well across changing market cycles.

Deferred consideration, payable in 2020, is capped at a fixed multiple of the EBITDA for the government services division of MVS for calendar year 2017

The performance of the government services division is largely dependent upon the timing of valuation instructions received from various government departments. Based upon revenue levels and performance to the end of October 2017 and our forecasts through to December 2017 we expect the deferred consideration to be lower than initially estimated and recorded in the 2017 Annual Report. However, as a result of contracts in place for the financial year 2018, we expect revenues for the division to be higher for the second half of FY18 and therefore the

LandMark White 2017 AGM

November 23, 2017

full year result to be in line with our expectations as disclosed during the capital raising that was conducted in May 2017.

We are excited at the future growth opportunities the company is considering. The merger with MVS is the first step in the process of the company evolving into a broader-based property services firm. The Board looks forward to updating shareholders on future acquisitions if and when they materialise, ensuring that any future acquisitions are a good fit and sufficiently EPS accretive.

Forecast for 2018

Our current forecast for FY18 remains in line with those published during the capital raising.

• Gross revenues of $60m

• Owned revenues of $45m

• NPAT of $7m

• Full year EPS of 9 cents

Second half earnings will be significantly higher than the first half as synergies and increased revenues are delivered.

Dividend

We have declared and paid a fully franked final dividend of 2.25 cents for the FY17 bringing the full year dividend to 4.5 cents. This is at the same level as FY16 notwithstanding the significant increase in shares issued (from 27.6m to 75.9m).

Composition of the Board

Following the capital raising and the resulting wider ownership of LMW, the Board has identified potential candidates to be appointed as independent directors. This would move the company towards the requirements of ASX Best Practice Recommendation 2.4. We have interviewed several strong candidates and expect to formally appoint two independent directors shortly.

Conclusion

Finally, I would like to offer my sincere thanks to my fellow non-executive directors, to our executives and to all our staff for their contribution to LMW’s success throughout what has been a very significant year for LMW.

I look forward to an exciting year ahead for the company and updating you on the continued growth of LMW.

I will now hand over to Chris Coonan, LMW CEO.

LandMark White 2017 AGM

November 23, 2017

CEO’s Address – Chris Coonan

Thanks Glen and I also wish to welcome shareholders to the 2017 LMW Annual General Meeting.

The most significant event of the last financial year for the business was the merger with MVS.

The coming together of these two businesses has helped accelerate LMW’s expansion into the national property services market, allowing us to build on the existing success and strength of both organisations.

The strategic and cultural fit between LMW and MVS, as well as the limited areas of duplication, allowed us to quickly merge the two businesses and now gives us a scale and depth of expertise that will make our client service delivery second to none.

Our expanded coverage and increased capabilities has seen us grow to more than 40 offices across the country. As well as delivering operational efficiencies and shareholder value we anticipate significant ongoing synergistic savings.

I am happy to report that with the support of the management team and all staff the operational integration of the business has progressed very well and is approaching completion.

Our Strategy & Focus

In FY17 we maintained a proactive focus on operating efficiency. The operational review that was carried out two years ago, helped us to develop the dynamic 5-year Strategic Business Plan titled ‘Towards Excellence’. More than ever, our Towards Excellence business plan is guiding the way for our increased growth and expanded markets.

We are immensely proud of our 2017 RICS Award for Valuation Team of the Year.

This award is a direct reflection on our continued focus on the 5 key strategic pathways to growth and sees us remain focused and dedicated to our mission: To be industry leaders known for service excellence, the ability of our people, our integrity and accountability to our stakeholders and community.

Our business is only as strong as its people and LMW is committed to investing in its staff, business efficiencies and innovation.

FY18 will see further capitalisation on our greater capacity across major cities and expand on our regional footprint.

• There will be a renewed concentration on growing our Victorian operations

• Continued marketing and client focus on our existing valuation businesses

• Concentration on expansion of our government services business both with state and federal clients

• Continued focus on revenue from non-mortgage based activities nationwide.

We continue to explore opportunistic acquisitions in both the valuation and adjacent property advice businesses in line with our stated investment and acquisition strategy.

Outlook

While the outlook for specific property markets remains varied, we expect conditions to be reasonably supportive in FY18. There is ongoing consolidation within the valuation industry

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November 23, 2017

with larger firms growing market share at the expense of the smaller firms. The recent scale gained from the merger with MVS, positions LMW well to benefit from this trend.

Clients continue to look for service quality and consistency across all major markets and we expect to see further growth within non-mortgage related activities.

Interest rates are anticipated to be stable and we expect the economy to continue to grow, albeit at below trend levels, with the residential market flattening in both Sydney and Melbourne and remaining subdued in other locations.

We are seeing strong activity in the commercial sector and anticipate continued strength in activity across Sydney, Melbourne and to a lesser extent, South East Queensland in the short to medium term.

We have commenced FY18 with a high level of residential and government contracts in hand and I am confident that our adopted strategy will continue to see our core businesses deliver ongoing profitable growth.

In order to mitigate any possible slowing of property markets, our ongoing focus will be on increasing market share through performance, continued innovation, marketing and focused client engagement.

Conclusion

I am privileged to work with a highly-skilled and well-motivated management team and I want to thank them and the entire LMW staff for their continued engagement and hard work which has contributed to LMW achieving its goals. I would also like to express my sincere thanks to the Chairman and non-executive directors for their devotion to the company and their guidance and counsel.

Finally, I would like to thank you, our shareholders for your continued support and the great interest you take in our progress and ambitions. LMW is committed to repaying this support through growth in shareholder returns.

I will now hand you back to the Chairman to run through the formalities of the meeting.

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2017

Annual General Meeting

A enda g

1. Chairman’s Address

1. CEO’s Address

2. Resolutions

3. Questions

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Chairman’s Address Glen White

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Financial Highlights

	Year ended 30 June 2017 $000s	Year ended 30 June 2016 $000s	Increase/ (Decrease) $000s	% Change
Revenue	38,879	37,013
Gross revenues (including joint ventures & franchisees)			1,866	5%
Owned business	23,352	22,849	503	2%
Continuing operations
Acquired business	1,716	-	1,716	-
	25,068	22,849	2,219	10%
Profit before tax	2,462	2,368	94	4%
Continuing operations
Acquired business	212	-	212	-
Acquisition costs expensed	(286)	-	(286)	-
	2,388	2,368	20	1%
Income tax expense	762	709	53	7%
Net Profit after tax from continuing operations	1,626	1,659	(33)	(2%)
Net Profit after tax adjusted to remove the impact of the MVS acquisition	1,826	1,659	167	10%
Dividends	4.5 cents	4.5 cents

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Merger with MVS

MVS Summary Financials

		1 Jun 2017 – 30 Jun 2017 $000s	1 Jun 2017 – 30 Jun 2017 $000s	1 Jun 2017 – 30 Jun 2017 $000s	1 Jul 2016 – 30 Jun 2017 $000s	1 Jul 2016 – 30 Jun 2017 $000s
Revenue		1,716			29,598
Profits from ordinary activities after tax		159			3,806
	Upfront Cash		Upfront Shares	Deferred Shares		Total
Maximum Consideration	16.0		7.3	11.7		35.0
Provided in 30 June 2017 Annual Report	16.0		7.3	8.7		32.0
Current expectations*	16.0		7.3	1.2		24.5

*Final deferred consideration is dependent on performance of the Government Services business line for calendar year 2017 and financial years FY18, 19 & 20.

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Forecast for 2018

• Gross revenues of $60m

• Owned revenues of $45m

• NPAT of $7m

• Full year EPS of 9 cents

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CEO’s Address Chris Coonan

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Merger with MVS

• Cultural fit

• EPS accretive

• Diversification of revenue streams

• Minimal service/client duplication

• Increased geographical coverage

• Ongoing synergies

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Our Strategy & Focus

• Capitalise on our greater capacity across major cities and expand on our regional footprint.

• Concentrate on expanding our Victorian business.

• Investment in our people.

• Expand on the nonmortgage operations across the country.

• Continued investment in business efficiencies and innovation.

• Explore opportunistic acquisitions as per investment and acquisition strategy.

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Market Outlook

• Residential market flattening in both Sydney and Melbourne and remained subdued in other locations.

• Continued strength in commercial markets across Sydney, Melbourne and to a lesser extent, SEQ.

• • Ongoing consolidation within the valuation industry.

• Clients continue to look for service quality and consistency across all major markets.

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Resolutions
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Remuneration Re ort p

Resolution 1 Proxy and Direct Votes (Combined)

For Against Open Abstain 21 254 916 251 763 333 619 273 000 , , , , , 96.1% 1.1% 1.5% 1.2%

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Election of Brad Piltz

Resolution 2 Proxy and Direct Votes (Combined)

For Against Open Abstain 36 626 669 77 732 333 619 8 000 , , , , , 98.9% 0.2% 0.9% -%

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A pproval of 10% Placement Facility

Resolution 3 Proxy and Direct Votes (Combined)

For Against Open Abstain 23 131 770 13 538 623 356 619 19 008 , , , , , , 62.4% 36.5% 1.0% 0.1%

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Questions?

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