FOS CAPITAL LTD — AGM Information 2021

Nov 29, 2021

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2021 AGM Presentation

ASX:FOS

FY21 Highlights

$ 8.1M Sales +47%

$0.96M PBT (pre ipo exp)

$ 3.8M Order book +164%

Pixon Technology Appointed exclusive distributor

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Acquisition $ 2.2M JSB Lighting Reduced JSB cost base

ASX listed IPO raised $3m

47 Employees +56%

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FY21 Operational Update

• JSB integration complete

• Subleased JSB factory to new tenant & relocated to FOS factory

• Vacated/relocated 6 other office/warehouses

• Merged JSB & FOS IT systems and now operating as one company

• Completed sale of Intralux inventory

• Cost of restructure $0.75 million

• JSB cash on acquisition $1.19 million used to fund restructure & paydown liabilities

• FOS order book at record high $3.8 million with increasing pipeline

• Employed 5 new senior sales executives across Melbourne, Sydney and Brisbane

• Continued product development & expansion of ranges

• FOS appointed exclusive distributor to Pixon Technology LED display screens

• This creates a new product vertical

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Financials 30 June 2021

P&L ($m)	FY21	FY20*		Balance Sheet ($m)	FY21	FY20
Sales	8.1	5.5		Cash & Receivables	5.27	2.01
PBT(excl ipo costs)	.96	.4		Stock, P&E, Other	5.71	2.87
IPO costs	.17	.19		Total Assets	10.98	4.88
PBT	.90	.21		Payables	1.6	.8
PAT	.78	.12		Other	2.46	1.19
EPS	1.7c	n/a		Total Liabilities	4.06	1.99
*FOS Lighting Group				Net Assets	6.92	2.89

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FY21 Comparative analysis

Sales by Region FY20

Sales by Region FY21

Import vs Local Manufactured

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QLD NSW QLD
56%
18% 38%
NSW
4%
SA
2%
VIC
VIC 34% OTHER
40% 8%
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Manufactured
48%
Imported
52%
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- YTD Highlights November

$ 5.1M Sales +66%

$ 6.1M Order book +500%

$ 47M Active Quotes +90%

Acquisition Ecopoint Lighting

ISO9001 QA Accreditation

iCore Smart Poles Appointed exclusive distributor

54 Employees +80%

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YTD Commentary

• Order book continues to climb as we navigate lengthy lock downs in VIC, NSW & NZ resulting in project sales & order delays.

• Investment in new sales executives to deliver greater results in second half.

• Ecopoint acquisition completed and positively contributing

• Substantial $1.6m hospital order majority to be invoiced 2h22

• iCore smart poles to open new revenue streams in the IoT market

• Multiple mounting options, Lighting, Signage, Cameras, Sensors, EV charging

• Multi channel to facilitate high and low voltage cabling

• Have increased stock of raw materials & components to insulate against delayed deliveries.

• Have created a diversified business model to protect against external impacts

• Customer/product/geographic range extremely diversified

• No concentration on any one element

• All systems cloud based, the business can operate from any location if required

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Comparative analysis

Active Quotes

Orders on Hand

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Sales
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$15.1M
6.1M
47.0M
42.0M
3.8M $9.0M
$8.1M
25.1M
$5.5M
15.0M $4.2M
1.5M 1.5M $2.8M
$6.1M
$3.9M
$2.7M
Jun 2020 Dec 2020 Jun 2021 Nov 2021 Jun 2020 Dec 2020 Jun 2021 Nov 2021 FY2020 FY2021 FY2022 (Forecast)
1H 2H
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Outlook

• Ecopoint acquisition bedded down looking to expand sales team

• ANZ operation with 54 staff now in place well placed for further growth

• Proven & experienced management team with substantial skin in the game

• Record order book $6.1M underwrites increased second half

• 2H Revenue forecast +$9M will bring FY22 +85% to approximately $15M

• Growing pipeline of projects with increased construction activity as VIC,NSW & NZ come out of lockdown.

• Govt increased infrastructure spend brings additional benefits to FOS Lighting

• Actively pursuing multiple value accretive acquisition opportunities

• We are building a long term sustainable, maintainable business.

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Strong financial and market position

Robust balance sheet

• Low Capex

• No Debt

• Continued investment in • People

• • Products

• Acquisition strategy • Acquire Synergistic Business’s

• • Build Critical Mass

• Organic growth • +25% PA

• Increasing national market share

• Manufacturing facility • Quality assurance achieved - ISO 9001 accreditation

• • Excess capacity for future growth

• Risk diversified • Broad blue-chip customer base

• • Geographic spread of national operations

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FOS at a glance

Capital Structure	ASX:FOS	Directors	Directors
Shares on Issue	46.3m	Non-Executive Chairman	Sandy Beard
Share price (29/11)	24c	Managing Director	Con Scrinis
Market Cap	$11.1m	Executive Director	Michael Koutsakis
		Non-Executive Director	Michael Monsonego
		Employees	54
		Brands	16
		Offices	5
Major Shareholders:SKM Investment Group (associated with executive directors) 65% :ASX listed HGL Ltd 6.5%

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