DGL GROUP LIMITED — Capital/Financing Update 2023

Jan 18, 2023

DGL Group Ltd Level 4, 91 William Street Melbourne, VIC 3000 Melbourne, Australia e info@dglgroup.com

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ASX RELEASE

19 January 2023

Acquisition of Nightingale Transport boosts DGL’s national logistics reach and enhances offering to target industries

The acquisition of Nightingale Transport by DGL Group Limited (ASX:DGL) represents a strategic growth opportunity by expanding the company's national logistics reach and enhancing its offerings to key industries in Australia. As a national provider of logistics services to some of the most respected blue-chip clients in the mining, agricultural, and infrastructure sectors, Nightingale Transport brings credibility and access to these vital industries that underpin the Australian economy.

The acquisition price of $18.2 million represents 3.7x EBITDA of $4.9 million and 1.1x net tangible assets of $15.2 million. The acquisition will be funded with cash, with DGL's net debt position remaining conservative. The acquisition is expected to be immediately EPS accretive, pre-synergies.

This acquisition will not only provide DGL with an additional 100 trucks and trailers, thereby substantially increasing the company's fleet, but it also allows for the utilisation of Nightingale's strong national transport capability as a collection network for the backloading of lead and other recyclable materials to DGL's other facilities. Furthermore, it opens the door for DGL to manufacture and deliver chemicals to Nightingale's existing customer base.

"The acquisition of Nightingale expands our national logistics reach, allowing us to provide true business-to-business scale and capacity while enhancing DGL's offering to target industries," said Simon Henry, Founder and CEO of DGL.

The acquisition is contingent upon the fulfillment of certain contractual conditions by the vendors, which are expected to be met by the proposed settlement date. The company will provide further updates to the market once the settlement has taken place.

DGL confirms its FY23 earnings guidance of $70.0-$72.0 million EBITDA before any contribution from Nightingale Transport. DGL Group will release HY23 results on the 28th February 2023.

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Approved for release by the Board of DGL.

CONTACT

Investor and media relations

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

ABOUT DGL GROUP LIMITED

DGL is a well-established, founder-led, diversified industrial group, specialising in the manufacture, transport, storage of chemicals and processing of hazardous waste. The Company has a strong track record of revenue and earnings growth.