DGL GROUP LIMITED — Capital/Financing Update 2021

Nov 8, 2021

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ASX RELEASE

9 November 2021

DGL targets sustainable vehicle market with Austech Chemicals

Melbourne, Australia - DGL Group Limited (ASX:DGL) (NZX:DGC), (“ DGL ” or the “ Company ”), a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste, today announced the strategic acquisition of Austech Chemicals Pty Ltd (“ Austech ”).

Over the last 20 years, Austech has successfully developed unique intellectual property for chemical formulations used in the automotive industry. Austech specialises in the manufacturing of non-oil automotive chemicals, such as coolant, brake fluids, solvents, flammables and aerosols. It is widely recognised that as Australia moves into more sustainable vehicles that more advanced fluids will be required, as such DGL sees this as a unique opportunity to access the sustainable vehicle market.

Founder and CEO of DGL, Simon Henry, said: “With the acquisition of Austech, DGL will now have a network of 51 facilities stretching from Darwin to Christchurch with a throughput of over 1.5 million MT per annum and servicing over 2,000 regular customers.”

Austech adds to the already established Trans-Tasman presence of 30 chemical manufacturing sites across Australia and New Zealand. Austech formulates over 12,000 MT of specialty chemicals per annum for its strong customer base, including major oil and retail blue chips. DGL will work to enhance these relationships to develop a strong network capable of delivering the chemicals of the future.

Austech further enhances the capabilities of DGL’s Chemical Manufacturing division reinforcing the company as the leading full-service chemical management company in Australia and New Zealand. Aligned with DGl’s cross-sell strategy, there are significant opportunities to attain additional business within the group.

The acquisition price consists of:

(a) a cash payment of $13M; and

• (b) the issue of 5,306,122 fully paid ordinary shares in the capital of DGL. At the time the parties negotiated the conditional commercial terms in August 2021, the consideration represented a valuation of 5.2 x FY21 normalised EBITDA and based on the current market price of DGL shares, a valuation of 5.6 x FY21 normalised EBITDA.

Staff and management will be retained to continue to drive growth in the Austech business, as part of the broader DGL Group.

DGL Group NZ DGL Warehousing and Distribution DGL Environmental Solutions DGL Chemical Manufacturing Level 12 739 Progress Road 201 Five Islands Road 120 Fulton Drive 63 Albert Street Wacol, QLD 4076 Unanderra, NSW 2526 Derrimut, VIC 3026 Auckland 1010, New Zealand Brisbane, Australia Wollongong, Australia Melbourne, Australia p +64 9 309 9254 p +61 7 3548 7905 p +61 2 4247 2100 p +61 3 8369 9999

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- ENDS -

Approved for release by the Board of DGL.

CONTACT

Barbara Furci DGL Group Limited +64 9 309 9254 or barbara.furci@dglgroup.com

MEDIA ENQUIRIES

Aileen Bodart Cannings Strategic Communications +61 043 160 136 or abodart@canningscomms.com.au

ABOUT DGL GROUP LIMITED

DGL is a well-established, founder-led, end to end chemicals business that manufactures, transports, stores and manages the processing of chemicals and hazardous waste. The Company operates a network of 51 sites, both owned and leased, across Australia and New Zealand. The Company has a strong track record of revenue and earnings growth. Total pro-form revenue was $180.1 million in FY20.

DGL Group NZ Level 12 63 Albert Street Auckland 1010, New Zealand p +64 9 309 9254

DGL Warehousing and Distribution 739 Progress Road Wacol, QLD 4076 Brisbane, Australia p +61 7 3548 7905

DGL Environmental Solutions 201 Five Islands Road Unanderra, NSW 2526 Wollongong, Australia p +61 2 4247 2100

DGL Chemical Manufacturing 120 Fulton Drive Derrimut, VIC 3026 Melbourne, Australia p +61 3 8369 9999