HITECH GROUP AUSTRALIA LIMITED — AGM Information 2017

Nov 23, 2017

==> picture [842 x 151] intentionally omitted <==

==> picture [842 x 151] intentionally omitted <==

AGM Presentation (ASX Code: HIT) 24 NOVEMBER 2017

Important information and disclaimer

This presentation has been prepared by HiTech Group Australia Limited ABN: 41 062 067 878 (“HiTech”). This document contains background information about HiTech current at the date of this presentation. The presentation is in summary form and does not purport be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, HiTech, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. HiTech accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. All amounts expressed are in $A unless stated otherwise.

Forward-Looking Statements

This presentation may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of HiTech. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, HiTech does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Not An Offer

This presentation is for information purposes only and does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in HiTech in any jurisdiction. This presentation and its contents must not be distributed, transmitted or viewed by any person in any jurisdiction where the distribution, transmission or viewing of this document would be unlawful under the securities or other laws of that or any other jurisdiction. The securities of HiTech have not been registered with the U.S. Securities and Exchange Commission or listed on any U.S. Stock Exchange.

2

HiTech overview

• HiTech Group Australia Limited is a specialist provider of recruitment and ICT consulting services

• The term information and communications technology (ICT) is generally accepted to mean all technologies that, combined, allow people and organisations to interact in the digital world

• Services cover ICT, Office Support, Sales & Marketing and Finance sectors

• HiTech generates the majority of its revenue from ICT contracting and consulting, meaning revenue is almost entirely recurring

• Revenue is underpinned by a long term, blue chip customer base across Federal Govt, State Govt and the Private Sector

• HiTech has a well balanced and diversified client base of new and loyal existing ones

• Favourable conditions also expected to continue from growing demand for skilled ICT professionals and large scale public & private IT transformation projects

==> picture [285 x 274] intentionally omitted <==

3

Board of Directors

Raymond Hazouri

Chairman

Qualifications: BA (Sydney University), DipEd.

Experience: Founded HiTech in 1993 and has over 26 years’ experience in the IT industry. Prior to establishing HiTech, Ray worked in a number of capacities in the information technology industry ranging from management positions, technical IT consulting roles including systems analysis/programming, project management and sales roles. Ray worked and consulted for a broad range of employers in the private, multinational, SME, and public sectors.

Elias Hazouri

Executive Director & CEO

Qualifications: B Sc, MBA

Experience: Over 27 years’ experience in IT and banking. Elias was previously a director of HiTech from 1993-March 2000. Elias’s knowledge of HiTech’s business is extensive. Throughout his career, Elias has been integral to the development of many IT systems and IT support departments. He has held roles ranging from programmer to technology support head. Elias is a key resource and knowledge base to the HiTech account managers and is jointly responsible for generating new business. Elias has advised on business strategy, both from a financial and operational perspective, since the inception of HiTech in 1993. Elias is employed in the capacity of Chief Executive Officer.

George Shad

Non-executive Director

Qualifications: Solicitor

Experience: Appointed to the Board on 30 July 2003. Principal of Shad Partners Solicitors with thirty years’ experience as a lawyer specialising in commercial and conveyancing work. George is a panel solicitor for a number of major banks and his expertise and contacts in the corporate sector will assist HiTech in furthering its client base.

4

Global ICT industry overview

==> picture [842 x 287] intentionally omitted <==

----- Start of picture text -----

5,000 1,000
Global Spending Asia Pacific Spending
4,000 800 US$ 752 BN
US$ 3,387 BN US$ 3,486 BN US$ 720 BN
3,000 600
2,000 400
1,000 200
0 0
2016 2017 2016 2017
Data Center Systems Software Hardware / Device
IT Service Communications Service
----- End of picture text -----

In 2017, total spending is expected to increase 2.9% and 4.4% respectively for Global and the Asia Pacific Region. In particular, software and IT Services are the two top sectors for growth. Software is expected to grow 7.2% Globally and 10.2% for Asia Pacific in 2017. IT Services is expected to grow 4.8% Globally and 6.0% in the Asia Pacific Region in 2017.

Source: Gartner (October 2016)

5

Australia ICT industry overview

Historical & Forecast ICT Employment, 2011-22 ⁽¹⁾

==> picture [371 x 230] intentionally omitted <==

----- Start of picture text -----

2011 2016 2022
300,000
250,000
200,000
150,000
100,000
50,000
0
ICT ICT technical ICT sales ICT trades Electronic ICT industry
management and trades and admin and
and professional professional logisitics
operations support
----- End of picture text -----

Selected Sector Spending ⁽²⁾

==> picture [302 x 222] intentionally omitted <==

----- Start of picture text -----

A$ BN
30 2016 2019
25.70
25
22.00
20
15
10.50
9.40
10
5
0
IT Services Software
----- End of picture text -----

Strong growth in the ICT workforce is expected to continue, reaching 722,000 workers by 2022. This represents average annual growth of 2.0%, compared to 1.4% for the Australian workforce as a whole. The Australian government is a big employer in terms of procurement of IT Services and additional personnel for the vast number of new and existing ICT / Digitisation initiatives.

Source: ⁽¹⁾ Australia’s Digital Pulse(2017) ⁽²⁾Atradius Market Monitor Report, 2016

6

Market Voices – ICT industry growth to continue

==> picture [108 x 49] intentionally omitted <==

==> picture [121 x 38] intentionally omitted <==

By 2020, half of the top 500 companies in Australia will become part of the digital transformation economy, as they see the majority of their business depend on their ability to create digitally enhanced products, services, and experiences – International Data Corporation, 2017

52% of the current ICT workforce is employed outside ICT-related industries, in such areas as professional services, public administration and financial services

The continued growth in ICT employment across the Australian economy reflects strong employer demand for ICT workers and skills, and continued improvements in the foundations of the Australian labour market.

- Deloitte Report, Australia’s Digital Pulse, 2017

The government is taking a lead in Australia’s digital transformation through greater investment in ICT

infrastructure and capability. Through its investments in data analytics, technology platforms, digital identity, cyber security, the expansion of the MyHealth record system, and building digital skills across the public service, government will be much better positioned to deliver efficient, quality services to Australians. These are smart investments that will enable the adoption of future technologies as government services evolve

- Australian Information Industry Association (Australia’s peak member body for the ICT industry), 2017

The ICT recruitment market in the ACT continues to be extremely active. The majority of demand is for IT contractors for the Federal Government and is fuelled by continued restrictions around hiring full-time staff and the ongoing enterprise transformation, modernisation and digitalisation initiatives that are taking place.

- Hays Quarterly Report, Q4 2017

7

FY2017 Results highlights

2015 2016 2017

==> picture [213 x 257] intentionally omitted <==

----- Start of picture text -----

A$ M
25
23.32
20
18.26
15.04
15
10
5
0
Revenue
----- End of picture text -----

• FY2017 Revenue up 27% driven by 28% growth in contracting and 13% growth in permanent placement revenue

• FY 2017 is the company’s fourth consecutive year of double digit growth

==> picture [379 x 109] intentionally omitted <==

----- Start of picture text -----

4.71
3.89
3.18 3.12 3.43
1.35
Gross Profit EBITDA
----- End of picture text -----

8

FY2017 Results highlights cont’d

==> picture [842 x 213] intentionally omitted <==

----- Start of picture text -----

2015 2016 2017
A$ M A$ Cent
3 9
2.31 7.01
2.17 6.55
2 6
1 0.81 3 2.61
0
0
NPAT
EPS
----- End of picture text -----*

• FY 2017 underlying growth represents the removal of the impact of the realised and unrealized investment gains in FY 2016 and FY 2017, which are non-core to HiTech

• Final dividend for FY 2017 of 3 cents fully franked declared and paid, bringing total dividends for the year to 6 cents fully franked, a 7.5% yield ⁽¹⁾

• On a fully diluted basis

⁽¹⁾ Dividend yield is calculated based on HIT share price of 80 cents on 23 Nov 2017

9

Specialised service with a winning formulae for success

• HiTech works closely with select, identified blue chip client base names on talent acquisition

• Management intimately understands the key drivers of recruitment and ITC consulting services for its clients

• Continually seeking out permanent ICT work with the strongest margins or avenues for value added growth

• Execute and deliver on time for clients and is rewarded with long, established business relationships and recurring revenue stream

• Opportunity cost of each piece of business is always at the forefront of HiTech’s thinking

• No revenue growth for revenue growth’s sake

• Push into ICT consulting and services space as these sectors are exhibiting strong growth

==> picture [352 x 285] intentionally omitted <==

• Board and management teams have a uniquely engrained culture of financial discipline across all areas and aspects of its business

10

Revenue breakdown – majority Federal and State Govt clients

FY 2017 Revenue Breakdown – Client Type

==> picture [842 x 256] intentionally omitted <==

----- Start of picture text -----

1.60%1.84%1.92%
8% 2.32%
2%
2.35%
19.37%
2.51%
2.52%
Further Breakdown of 3.15%
FY2017 Federal Govt
Revenue
3.25%
7.68% 3.34%
3.61%
4.18%
3.72%
90% 3.88%
Federal Govt State Govt Private Sector
Federal Department 1 Federal Department 2 Federal Department 3
----- End of picture text -----

Federal Department 1 Federal Department 2 Federal Department 3 Federal Department 4 Federal Department 5 Federal Department 6 Federal Department 7 Federal Department 8 Federal Department 9 Federal Department 10 Federal Department 11 Federal Department 12 Federal Department 13 Federal Department 14 Federal Department 15 Federal Department 16 Federal Department 17

HiTech has a diversified blue chip client base with solid revenue base supported by Federal Government departments and agencies

11

HiTech revenue breakdown cont’d

==> picture [227 x 22] intentionally omitted <==

----- Start of picture text -----

FY 2017 Revenue Breakdown - Top 10 Clients
Concentration
----- End of picture text -----

==> picture [210 x 11] intentionally omitted <==

----- Start of picture text -----

Average History of Service by Client Type
----- End of picture text -----

==> picture [842 x 256] intentionally omitted <==

----- Start of picture text -----

Federal Govt.
37%
State Govt.
63%
Private Sector
Top 10 Others Years 0 4 8 12 16 20 +
----- End of picture text -----

HiTech has a long history and robust working relationship with its key established clients

12

HiBase - proprietory, predictive database of ICT talent

• HiBase is a predictive intelligence tool built by HiTech for sourcing talent

• A comprehensive up to date database of over 360,000 professional candidates for contract or permanent positions

• The HiTech Services team is at the forefront of the digital transformation movement which is a critical priority amongst each of our Federal Govt, State Govt and Private Sector client base

• The HiTech ICT Services team has developed a 'best of breed' project delivery system in line with client needs – we call this Project Delivery as a Service (PDaaS) which benefits our clients:

• A perpetually Fit-For-Purpose Project Delivery Model, managed as a Service;

• Project Delivery as a Service that offers you access to resources and tools at a flexible and predictable cost, via a fully structured Managed Service, underpinned by KPIs and SLAs;

==> picture [321 x 248] intentionally omitted <==

• Whether it's Skilled Resource Provision or a fully Managed Service, PDaaS can help you maximize your Project success and improve your IT Project Delivery; and

• We offer the ability to have on boarded resources available based on the demand curve of your portfolio.

13

HiTech’s antidote to potential technology and competitor disruptions

• HiTech is at the forefront of enabling digital transformations by connecting the right people to work together and apply new, relevant and often non traditional technology, to transform the way we think about how we might communicate and work

• “Automated platforms” operate in a segment of the market that focuses on high volume/low margin transactional work that can replace some but not all of this intensely personal process for specialised ICT services

• The HiTech Group is a proud member of the Digital Transformation Agency services supplier panel known as the Digital Marketplace Panel. The marketplace allows HiTech to provide IT specialists to all Government departments looking to initiate and complete digital transformation projects. This national Government initiative further opens up the possibilities for HiTech to participate in the Government's multibillion dollar expenditure on ICT

==> picture [307 x 180] intentionally omitted <==

• HiTech operates at the cutting edge of the ICT industry in select and highly specialised areas and is closely aligned with its niche blue chip client base

• HiTech has a valuable, underutilised candidate database ripe for monetisation via innovation and cross-selling opportunities

14

Strong Balance Sheet and financial discipline

==> picture [842 x 251] intentionally omitted <==

----- Start of picture text -----

Quick Ratio ⁽¹⁾ Net Debt ⁽²⁾
6.00x A$ M
0
4.96x
5.00x
-1
4.00x
3.36x -2
-1.84
3.00x
2.56x
-3
2.00x
-4
-4.41
1.00x
-5
-5.21
0.00x -6
2015 2016 2017 2015 2016 2017
----- End of picture text -----

HiTech is a resilient and strong company with a safe balance sheet and no debt which is unique in the industry

⁽¹⁾ Quick ratio = (Cash & Cash Equivalents + Accounts Receivable) / Current Liabilities

⁽²⁾ Net Debt = Total Debt - Cash & Cash Equivalents.

15

Consistent track record is being rewarded in share price….

==> picture [357 x 315] intentionally omitted <==

----- Start of picture text -----

Volume in K Price A$
1,800 0.90
1,600 0.80
1,400 0.70
1,200 0.60
1,000 0.50
800 0.40
600 0.30
400 0.20
200 0.10
0 0.00
11-12 11-13 11-14 11-15 11-16 11-17
HiTech Group Australia Limited (ASX:HIT) - Volume
HiTech Group Australia Limited (ASX:HIT) - Share Pricing
----- End of picture text -----

HIT’s Market Capitalisation	A$
Closing price as of 23-Nov-17	$0.80/share
52-week high on 17-Nov-17	$0.83/share
52-week low on 02-May-17	$0.52/share
Ordinary shares on issue	35.15m
Options outstanding⁽¹⁾	4.50m
Equity market capitalisation	$28.12m
Plus: net debt as of 30 June 2017	$(5.21)m
Enterprise value	$22.91m
⁽¹⁾as at 30 June 17, the total number of options outstanding was 4.5 million with an exercise price of A$0.22 cents
Substantial shareholding as at 23-Nov-17	% of total voting rights
R. Hazouri – 17.76 million shares	50.53%
E. Hazouri – 3.93 million shares	11.17%
S. Hazouri – 1.98 million shares	5.63%

16

…but with significant upside left versus ASX Listed peers

		HiTech Group Peer 1 Peer 2 Peer 3 Peer 4⁽¹⁾ Peer 5 Peer 6 Peer 7 Peer 8
	Shares on issue M Share Price A$ Market Capitalisation A$ M Cash A$ M Debt A$ M EV A$ M Revenue A$ M EBITDA A$ M EBIT A$ M NPAT A$ M EV/EBITDA (x) EV/EBIT (x) EPS P/E (x) Total Debt/EBITDA EV/Revenue (x) NPAT Margin EBITDA Margin	35.15 89.58 67.17 231.99 246.15 171.46 154.18 61.52 64.04 0.80 0.08 0.16 1.00 0.04 0.11 0.17 0.13 1.38 28.12 6.81 10.75 231.99 9.11 18.86 25.44 8.00 88.38 5.21 1.79 2.93 17.75 1.86 3.21 8.32 1.83 0.89 0 3.27 0 0 15.01 0.00 0.00 0.00 10.78 22.91 8.29 7.82 214.24 22.26 15.65 17.12 6.17 98.28 23.32 153.30 107.79 0.78 199.80 0.65 0.81 0.24 191.99 3.58 -2.50 1.94 -4.30 14.61 -4.47 -24.12 -2.34 10.25 3.54 -3.62 1.09 -4.86 13.94 -4.48 -29.21 -3.31 9.12 2.31 -4.00 0.88 -4.65 17.99 -4.48 -31.48 -2.67 6.22 6.41 N/A 4.03 N/A 1.52 N/A N/A N/A 9.59 6.47 N/A 7.19 N/A 1.60 N/A N/A N/A 10.77 0.07 -0.04 0.01 -0.02 0.07 -0.03 -0.20 -0.04 0.10 12.17 N/A 12.28 N/A 0.51 N/A N/A N/A 14.21 0.0 -1.3 0.0 0.0 1.0 0.0 0.0 0.0 1.1 0.98 0.05 0.07 276.09 0.11 24.10 21.09 25.56 0.51 9.90% N/A 0.81% N/A 9.00% N/A N/A N/A 3.24% 15.33% N/A 1.80% N/A 7.31% N/A N/A N/A 5.34%

Note: Share prices as of 23 Nov, 2017

⁽¹⁾Peer 4 - a total of A$ 14.7m debt was forgiven in the 2H of 2016, a FX translation gain of A$ 2.44M recorded after profit or loss

17

A simple 2 Tier growth strategy

• On-boarding of new clients

• Enhance the service offering provided to existing clients by providing a broader suite of recruitment and ICT consulting solutions in addition to base contracting agreements

• Expand the company’s ICT offering into high margin consulting and service space (Cloud, Security, SaaS) in line with client objectives

• Pursue acquisitions in a highly fragmented market that satisfy the following criteria:

• Fit the industry and company culture of HiTech

• Complimentary acquisitions which leverage towards its established blue chip client base

• EPS and CFPS accretive

• Deliver positive returns to shareholders

• Preliminary studies are currently being conducted to understand the businesses and operations of potential targets under HiTech’s strict criteria

• The Board is committed to act in the best interests of all shareholders employing a disciplined M&A growth strategy that will benefit HiTech and its broader stakeholders over the long term

18

Investment highlights – Investor proposition

• 3 cents fully franked interim dividend was paid in FY2017, bringing total dividends for the year to 6 cents

• Dividend yield of about 7.5% at the current share price of 80 cents*

• Intention to maintain dividends

• FY2017 was a third consecutive year of revenue and profit growth

• Record growth of 27.7% in revenue and 6.4% in NPAT

• This growth is fueled and underpinned by a long term, blue chip client base and recently renewed multiyear supplier agreements with large Government departments

• Organic growth is forecast to continue with strong ICT industry fundamentals in Australia

==> picture [41 x 101] intentionally omitted <==

----- Start of picture text -----

Strong Position
----- End of picture text -----

• Strong balance sheet with no debt

• Net cash of $5M+ puts the company in a strong position to implement its 2 Tier growth strategy

• The Board and the management are dedicated to deliver a fourth consecutive year of growth anticipated for FY2018

• Share price as of 23 Nov 2017

19

Contact information

Elias Hazouri

CEO

==> picture [19 x 19] intentionally omitted <==

elias@hitechaust.com (02) 9241-1919 www.hitechaust.com

Level 9, 189 Kent street, Sydney, NSW 2000, Australia

20