ASHLEY SERVICES GROUP LIMITED — Annual Report 2021

Aug 30, 2021

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FY 2021 RESULTS

Tuesday 31 August 2021

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Extremely positive trends evident across all financial performance metrics for FY21

• Revenue of $383.7 million, h$46.8m or 13.9% on pcp* (FY21 52wk v FY20 53wk)

• h$52.7m 15.9% on pcp excl. additional week in prior year ($5.8m)

• Significantly stronger second half with H2 growth h29% (H1 h4.7% 52wk)

• EBITDA of $15.5 million, h$5.8m or 60% on pcp

• NPAT of $9.6 million, h$4.5m or 90% on pcp

• EPS of 6.36 cents per share, up 2.12 cents or h96% on pcp

Acquisitions making a positive contribution to our organisation

• CCL Group delivered both Revenue and EBITDA growth, delivering upon the acquisition business case

• The Instruction Company was acquired mid-Sept with full financial year effect and has delivered a modest profit as we expanded its geographical footprint to drive future growth

Increased working capital requirement due to significant revenue growth

• Operating Cash Flow was a full year inflow of $5.4 million (H2 inflow of $12.4m)

• Strong H2 revenue (h29%) and an even stronger June (h40%) has increased working capital requirements

• Minimal Borrowings ($1.1m) and reduced Cash balances funded this timing difference

Return to twice yearly dividends

• Full year fully franked dividend of 4.2 cents per share (Interim 1.8c & Final 2.4c) up 1.5c or 56% on pcp

Impressive Safety Record continues

• The impressive safety performance of our company continues to represent world’s best practice

* Prior corresponding period (pcp), being FY20

REVENUE FY16 - FY21

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450.0
400.0 383.7
350.0 332.8 336.8
314.7
287.6
300.0 276.9
250.0
200.0
150.0
100.0
50.0
-
FY16 FY17 FY18 FY19 FY20 FY21
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EBITDA FY16 - FY21

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20.0
15.5
15.0
9.7
9.1
10.0 8.0
5.7
5.0
0.0
FY16 FY17 FY18 FY19 FY20 FY21
(5.0)
(7.7)
(10.0)
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• FY19 decline due to exit of a major, marginally profitable, Action Workforce contract (FY18 $59.2m)

NPAT FY16 - FY21

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12.0
9.6
10.0
8.0
6.0 4.6 4.8 5.4 5.1
4.0
2.0
-
FY16 FY17 FY18 FY19 FY20 FY21
-2.0
-4.0
-4.6
-6.0
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EBITDA % FY16 - FY21

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5.00%
4.05%
4.00%
3.17%
2.89%
3.00% 2.40%
1.81%
2.00%
1.00%
0.00%
FY16 FY17 FY18 FY19 FY20 FY21
-1.00%
-2.00%
-3.00%
-2.78%
-4.00%
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• FY16 & FY17 reflects Underlying EBITDA & Underlying NPAT

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REVENUE by Division FY16 - FY21

• Labour Hire FY21 Revenue h$44m (13.5%) on pcp (FY21 52wk v FY20 53wk) ▪ h$50m (15.5%) on pcp excl. additional week in prior year ($5.8m)

• Training FY21 Revenue h$2.4m (33%) almost entirely due to The Instruction Company first years’ revenue

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450.0
400.0 9.7
350.0
7.3
6.7
300.0 25.5
8.0
28.3
250.0
200.0
374.0
326.1 329.5
150.0 289.2 279.6
248.6
100.0
50.0
-
FY16 FY17 FY18 FY19 FY20 FY21
Labour Hire Training
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EBITDA by Division FY16 - FY21

• Labour Hire FY21 EBITDA $17.8m, h$5.3m (43%) with all brands delivering positive EBITDA contributions

• Training FY21 EBITDA $2.0m, h$1.2m on pcp, with $0.14m coming from the first year contribution of The Instruction Company

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25.0
20.0
2.0
15.0
0.0 1.0 0.8
10.0
2.9 17.8
5.0 11.8 11.5 12.5
7.8
4.9
0.0
FY16 FY17 FY18 FY19 FY20 FY21
(5.0) (6.9) (3.8) (3.4) (3.6) (4.3)
(5.0)
(10.0) (5.7)
(15.0)
Labour Hire Training CCL Corporate
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• FY16 & FY17 reflects Underlying EBITDA

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270 Internal Staff up 60 or 29%

Offices 2 New: Junee & Beresfield 23 (TIC acquisition)

684 Customers (TIC acquisition)

[Weekly Workers] 5,600[+] up 600 or 12% 6.0 Years Tenure Top 20 Customers up 1.2 years

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4
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9
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Fully Integrated Labour Hire & Training provider

▪ Horticulture ▪ Transport & ▪ Production / Logistics Process ▪ Manufacturing ▪ Maintenance ▪ Trades ▪ Construction ▪ Engineering ▪ Technical ▪ HR & IR Consulting ▪ Fixed term ▪ Permanent Contract Recruitment ▪ Payrolling Services ▪ Executive Search ▪ Fitout & Project ▪ Merchandising Works Staff ▪ Retail Staff ▪ Safety Inspections ▪ Track Machine / ▪ Protection Officers ▪ Project Vehicle Operators ▪ Safe Working Consultation ▪ Hand Signallers ▪ Track Examiners ▪ Council permits ▪ Construction Labour ▪ Specialist Labour ▪ Authority approvals ▪ Traffic Management ▪ Labourers, Trades, Services Plant Operators, Steel Fixers

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TRAINING:4 RTOs operating across VIC, WA & QLD with the	TRAINING:4 RTOs operating across VIC, WA & QLD with the	TRAINING:4 RTOs operating across VIC, WA & QLD with the
TIC RTO operating nationally
34 Qualifications offered across both the		ASH Pty Ltd
traditional Training operations and the		RTO 20749
newly acquired The	instruction Company
▪Business, Business	▪Data & Voice	Vocational Training
Admin	Communications	Australia Pty Ltd
▪Early Childhood	▪Foundation Skills	RTO 40596
Education and Care	▪Building &
▪Community Services	Construction	Australian Institute
▪Individual Support	▪Civil Construction	of Vocational
▪Ageing Support	▪Rail Infrastructure	Development Pty Ltd
▪Disability	▪Track Protection	RTO 40596
▪Health Services Assistance	▪Shunting ▪Rail Track Vehicle	Tracmin Pty Ltd RTO 51895
▪Food Processing	Driving
▪Supply Chain	▪Rail Driving
Operations	▪Rail Track Surfacing	The Instruction
▪Civil Construction Plant Operations	▪Rail Structures ▪Rail Signalling	Company Pty Ltd RTO 20928
▪Telecommunications	▪Terminal Train Driving
Technology	▪Rail Network Control
	▪Train Driving
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	Consolidated Statement of Profit or Loss and Other Comprehensive Income	Consolidated Statement of Profit or Loss and Other Comprehensive Income	Consolidated Statement of Profit or Loss and Other Comprehensive Income	Consolidated Statement of Profit or Loss and Other Comprehensive Income	Consolidated Statement of Profit or Loss and Other Comprehensive Income
	For the financial year ending 4 July 2021
			FY21	FY20
			$000	$000
		Revenue	383,672	336,841
		Other income	334	2,040
		Employment costs	(360,928)	(321,668)
		Depreciation and amortisation expense	(1,785)	(2,068)
		Finance costs	(648)	(713)
		Other expenses	(7,298)	(7,387)
		Profit before income tax from continuing operations	13,347	7,045
		Income tax expense	(3,737)	(1,976)
		Profit from continuing operations	9,610	5,069
		Profit/ (loss) for the period from discontinued	-	-
		Profit for the period	9,610	5,069
		Other comprehensive income	-	-
		Total comprehensive Income for the period	9,610	5,069
		Total comprehensive income for the half year is
		attributable to:
		Owners of Ashley Services Group Limited	9,150	4,667
		Non-controlling interests	460	402
			9,610	5,069
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	Consolidated Statement of Financial Position	Consolidated Statement of Financial Position	Consolidated Statement of Financial Position	Consolidated Statement of Financial Position
	As at 4 July 2021
			FY21	FY20		FY21	FY20
			$000	$000		$000	$000
		Assets			Liabilities
		Current assets			Current liabilities
		Cash and cash equivalents	2,969	8,063	Trade and other payables	27,391	18,517
		Trade and other receivables	44,421	29,418	Borrowings	1,090	-
		Contract assets	791	154	Current tax payable	1,083	1,634
		Other assets	2,035	1,745	Dividends payable	460	400
		Total current assets	50,216	39,380	Lease liabilities	888	723
		Non-current assets			Other liabilities	1,220	1,412
		Property, plant and equipment	1,247	1,060	Provisions	3,387	2,453
		Right-of-use assets	2,042	2,345	Total current liabilities	35,519	25,139
		Deferred tax assets	5,709	4,694	Non-current liabilities
		Intangible assets	10,848	9,322	Deferred tax liabilities	2,341	764
		Other assets	111	92	Lease liabilities	1,324	1,716
		Total non-current assets	19,957	17,513	Other liabilities	1,973	2,762
		Total assets	70,173	56,893	Provisions	514	682
					Total non-current liabilities	6,152	5,924
					Total liabilities	41,671	31,063
					Net assets	28,502	25,830
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Purpose and Date: This presentation contains general background information about the activities of Ashley Services Group Limited ABN 92 094 747 510 (“ASH”) as at 31 August 2021 (“Presentation Date”).

No financial advice: The information in this presentation does not constitute financial product advice and does not take into account the investment objectives, financial situation, taxation position or particular needs of any particular person. The information in this presentation should not be relied upon by any person as the sole basis for any decision regarding ASH securities. A person should obtain independent professional advice before making any investment decision regarding ASH securities.

No offer of securities: This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy or sell any ASH securities. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and accordingly any person in such jurisdictions should inform themselves about, any observe and comply with, any such restrictions.

Forward looking statements: This presentation contains certain forward looking statements and comments about future events, conditions and circumstances and expectations about the future financial performance of ASH. Forward looking statements can generally be identified by the use of words such as ‘expect’, ‘expected’, ‘anticipate’, ‘scheduled’, ‘ likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and variations of such words and phrases or state that certain actions, events, circumstances or results ‘may, ‘could’, ‘would’, ‘might’, or ‘will’ be taken, occur or be achieved. Indications of, and guidance on, future earnings or financial position or performance are also forward looking statements. All estimates and projections contained in this presentation are illustrative only and ASH’s actual results may be materially affected by changes in economic or other circumstances which cannot be foreseen. The forward looking statements contained in this presentation are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond ASH’s control and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Accordingly all forward looking statements contained in this presentation should not be relied on as an indication or guarantee of future performance. Nothing in this presentation is, or should be relied on as, a promise or representation either as to future results or events or as to the reasonableness of any assumption or view expressly or impliedly contained in this presentation.

None of ASH, its directors or officers can give any assurance that the results implied by any of the forward looking financial information contained in this presentation will be achieved. Events and outcomes might differ in quantum and timing from the assumptions with material consequential impacts on such forward looking financial information.

No warranty: None of ASH or its related bodies corporate or any of their directors, officers, employees and advisers makes any representation or warranty (express or implied) in relation to the accuracy and completeness or likelihood of fulfilment of any forward looking statement or information contained in this presentation. None of the forward looking statements contained in this presentation will be updated for events that occur after the Presentation Date. While all due care and attention has been taken in the preparation of this presentation, any person reading this presentation should note that there are inherent risks and uncertainties involved in estimating future financial performance.