IPD GROUP LTD — AGM Information 2024

Nov 25, 2024

Solution provider to the Australian electrical market

AGM 2024

26 November 20 24

Important Notice & Disclaimer

No Reliance

The information contained in this document is not investment or financial product advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. The information provided in this presentation may not be suitable for your specific needs and should not be relied upon by you in substitution for obtaining independent advice.

To the maximum extent permitted by law, neither the Company nor any other party guarantees or makes any representations or warranties, express or implied, as to, or takes responsibility for, the accuracy or reliability of the information contained in this document or as to any other matter, or takes any responsibility for any loss or damage suffered as a result of any inadequacy, incompleteness or inaccuracy in any statement or information in this document including, without limitation, any financial information, any estimate or projections or any other financial information.

Past performance information provided in this document may not be a reliable indication of future performance. No representation is being made that any investment will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions, and beliefs of the Company. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon.

Forward Looking Statements

This document contains certain forward-looking statements and comments about future events. Forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of the Company, are subject to change without notice, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and which may cause the actual results or performance of the Company to be materially different from any results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this document. Forward looking statements should not be relied on as an indication or guarantee of future performance. No representation, warranty or undertaking is made that any projection, forecast, assumption or estimate contained in this document should or will be achieved. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based.

Miscellaneous

No person, especially those who do not have professional experience in matters relating to investments, may rely on the contents of this document. If you are in any doubt as to the matters contained in this document you should seek independent advice and/or consult your stockbroker, bank manager, solicitor, accountant, or other financial adviser. A number of figures and calculations in this presentation are subject to the effects of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation. All dollar figures within this document represent Australian Dollars unless otherwise specifically stated.

IPD Group – AGM 2024

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CEO’s Address Michael Sainsbury

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IPD Group – AGM 2024

Agenda

– Our Strategy & Market

– Financial Review

– FY25 Update

– Q&A

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IPD Group – AGM 2024

Our Strategy & Market

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IPD Group – AGM 2024

Our Strategy

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IPD Group – AGM 2024

Our Pillars

Our four strategic pillars drive strong returns by leveraging our subsidiaries' expertise and industry partnerships to build energy efficient, automated, and secure infrastructure with safety at the heart.

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Business Growth

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Operational Efficiency

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Sustainability

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People

Focused on customer value, market expansion, and accelerating growth.

Customer Value & Market Expansion: Use strong brands and expertise to deliver tailored, reliable solutions and grow into new markets.

Accelerate Growth: Focus on

investments and acquisitions to boost earnings, market share, and sector reach.

Building scalable operations, leveraging our synergies, and emerging technologies.

Scalable Operations: Leverage a shared services model and economies of scale to streamline processes, reduce costs, and expand industry reach.

Synergies & Emerging Technologies: Utilise partnerships and emerging tech to create innovative, adaptable solutions that drive value and growth.

Committed to responsible environmental and social impact.

Reducing Environmental Footprint: Minimising reliance on grid energy, transitioning to an electric/hybrid fleet, and emphasising circularity to reduce waste and maximise product and material lifecycles.

Making a Lasting Social Impact:

Supporting charitable causes, industry initiatives, and educational programs to strengthen our electrical industry.

Our success depends on a strong, engaged, and diverse workforce, essential for sustainable growth.

Employee Wellbeing & Development: Enhancing satisfaction, engagement, and safety while fostering an inclusive and supportive workplace.

Talent Attraction & Retention:

Attracting, retaining, and developing diverse talent to strengthen our team and uphold high standards.

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IPD Group – AGM 2024

Our Connected Group

We are well-positioned in the energy transition, backed by strong fundamentals and alignment with key megatrends. Our interconnected businesses deliver unique value across the entire value chain, creating synergy that drives long-term, sustainable growth.

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Megatrends Our unique value proposition Geopolitical shifts With global reach and local adaptability IPD can quickly respond to changing regulations and regional energy demands. Product specification & supply Urbanisation IPD’s smart solutions and energy-efficient systems provide scalable infrastructure to support the growth of urban areas. Sustainability Aligned with the global push for greener operations, IPD is driving sustainable energy management and supporting the shift toward net-zero carbon. Engineering & installation Electrification IPD’s innovative solution will accelerate the shift from fossil fuels to renewable electric energy in industries and infrastructure. Digital & technological transformation With expertise in automation and digital solutions, Maintenance, repair IPD is leading the way in optimising energy use & operation and operational efficiency.

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IPD Group – AGM 2024

Our Connected Group

NPS Growth reflects strong customer satisfaction

Voice of Our Customers

Commendable NPS Score

In FY24, our Net Promoter Score (NPS) improved to 32.9%, a significant rise from 30.2% in FY23. This positive trend in customer satisfaction and engagement spans all our subsidiaries, underscoring the effectiveness of our customer-centric strategies. In the B2B industry, an NPS between 30-40% is regarded as strong, indicative of solid customer loyalty and validating our approach to prioritising customer relationships.

32.9%

Diversified Revenue

Our diverse technology portfolio has strengthened Group performance across targeted sectors. We are actively expanding our offerings to meet the demands of digital transformation and mitigate market risks. This approach ensures stable growth by catering to various markets with multiple technologies.

FY24 Revenue by Product Type

FY24 Revenue by End Market

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Commercial Construction/ Buildings – 37% Infrastructure/Industrial/ Mining – 23% Data Centres – 12% Water & Waste Water – 11% Power Utilities – 6% Food & Beverage – 3% Residential Construction – 1% Others – 7%

Power Distribution - 43% Automation & Communication – 12% Cable – 12% Motor Control – 10% Hazardous Area Equipment – 10% Services – 7% Power Monitoring – 5% Others – 1%

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IPD Group – AGM 2024

Our People & Sustainability

Our people are not just the heart of IPD Group, they are the driving force behind our success.

EMPLOYEES

664

SCORE OF 35%

(2)) LTIFR

0

LOST TIME INJURY

470

Employees

Employee NPS score

Lost time injury frequency rate

Over 470 days since our last LTI

One of the many ways we are creating a positive imprint

Commitment to

Collaborative

Sustainability: IPD and Approach: Partnered ABB focus on with ABB to reduce, circularity, minimising reuse, and recycle waste by extending packaging, cutting product and material waste significant lifecycles

Reusable Crates: Switched to reusable plastic crates for deliveries, reducing disposable materials and saving time.

Efficiency Gains: Flatpacked crates return to ABB for reuse, reducing cartons and tape by 20%.

Expanding Initiatives: Replaced plastic void fill with 100% recyclable paper to further enhance sustainable packaging efforts.

1. Lost time injury frequency rate at 26 November 2024. LTIFR Average number of lost time injuries over the past 12 months for every 1,000,000 hours worked.

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IPD Group – AGM 2024

Our Markets

Australia’s Data Centre Capacity to Double by 2030 with AI & Cloud Growth

Data centres contributed 12% of revenue in FY24, with expected growth of 25% in FY25. Growing demand for digital services will double the deployable capacity of data centres in Australia to 3,100 megawatts by 2030

Our end-to-end solutions position us to meet rising data centre demands.

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(4)
Internet-Connected Devices in Australian Households Data Centre Deployable Capacity in Australia
Average devices per household, 2024-2030F (3) Megawatt (MW), 2024-2030F
x2.1 x2.3
3,100MW
51
24
1,350MW
2024 2030F 2024 2030F
X2.1 Growing demand +AU$26 Infrastructure investment
devices Australians could have up to 2.1x more internet- billion Investment of $26 billion is required to construct
connected devices in the home by 2030 the additional data centre capacity by 2030
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1. Forecasts are based on the expected growth between 2021 and 2025.

2. Excludes on-premise servers, telecommunication, and government data centres.

Source: Morgan Stanley (2024) Australia – Data Centre Handbook; NBN (2024) Australian feel the need, the need for speed; Statista (2023) Australia: Average number of internet-connected devices per household; Telsyte (2024) Australia’s smart home market set to crack $2.5B, driven by AI, energy savings and security; Datacentremap; Data from select data centre operators; Expert interviews; Mandala analysis.

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IPD Group – AGM 2024

Our Markets

Increased Water Infrastructure Investment Driven by Population & Climate Needs

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Water Infrastructure – Forecast Spend
14
Historic Forecast
12
Population Urbanisation & Climate
10
Growth Congestion Change &
Management Water Security
8
6
4
Technological Aging Government
Advancements
Infrastructure Investments & 2
in Water
Asset Base Incentives
Management
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Source: ACIF (June 2024)
A$bn
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IPD Group – AGM 2024

Financial Review

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IPD Group – AGM 2024

FY24 Results Overview

Record Results Driven by Demand for Electrification

(6) (6) Revenue Underlying EBITDA Underlying EBIT $290.4m $40.1m $34.3m Up 28.0% (PCP $226.9m) Up 44.8% (PCP $27.7m) Up 46.6% (PCP $23.4m)

(6) Underlying NPAT $23.3m Up 44.7% (PCP $16.1m)

(6) Underlying EPS 24.2 cents Up 30.1% (PCP 18.6cents)

Net Assets $150.7m

($72.9m as at 30 June 2023)

(7) Net Debt $8.8m

($31.1m of Borrowings as at 30 June 2024)

Capital Raised $65.0m Successfully raised in Dec 2023

(8)

LTIFR

0 LTIFR Over 470 days since last LTI

Total Dividends FY24 10.8 cents Dividend per share fully franked 50% payout ratio

1. Underlying EBITDA, EBIT and NPAT from ordinary activities is a non-IFRS measure reported to provide a greater understanding of business performance. Underlying EBITDA and EBIT have been arrived at by adding back acquisition related costs totaling $1,221,000. Underlying NPAT from ordinary activities has been arrived at by adding back acquisition related costs after tax totaling $855,000.

2. Net Debt excludes lease and tax liabilities. 8. Lost time injury frequency rate at 30 June 2024. LTIFR Average number of lost time injuries over the past 12 months for every 1,000,000 hours worked.

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IPD Group – AGM 2024

Financial Overview

Strategic Growth Drives Strong Returns & Long-Term Value

Acquisition of EX Engineering and CMI Operations delivers strong EBITDA, EBIT and NPAT growth. • Revenue Growth: $290.4M, up 28% YoY, with a 35% annualised growth rate over 5 years. • Gross Profit: $107.8M at a 37.1% margin, reflecting strong core and acquired business performance. • EBITDA: Reached $40.1M, up 44.8% YoY, exceeding market guidance. • Strategic Investments: Expanded teams, strengthened key partnerships, integrated EV solutions nationwide, increased workshop capacity, and broadened international reach with CMI Operations. • Net Assets: More than doubled to $150.7M, with a strong balance sheet focus. • Working Capital: Increased to $76.9M, supporting revenue growth and acquisitions. • Cash Flow: Operating free cash flow conversion up significantly to 88%.

$m Underlying FY24 FY23 Movement % (vs lastyear) Revenue 290.4 226.9 28.0% Gross profit 107.8 86.8 24.2% EBITDA 40.1 27.7 44.8% EBIT 34.3 23.4 46.6% NPAT 23.3 16.1 44.7% EPS (cents per share) 24.2 18.6 30.1% Gross profit margin 37.1% 38.2% (1.1%) Operating expenses as % of revenue 23.6% 26.3% (2.7%) EBITDA margin 13.8% 12.2% 1.6% EBIT margin 11.8% 10.3% 1.5% NPAT margin 8.0% 7.1% 0.9% (9) (10)

1. Underlying EBITDA, EBIT and NPAT from ordinary activities is a non-IFRS measure reported to provide a greater understanding of business performance. Underlying EBITDA and EBIT have been arrived at by adding back acquisition related costs totaling $1,221,000. Underlying NPAT from ordinary activities has been arrived at by adding back acquisition related costs after tax totaling $855,000.

2. Weighted average number of ordinary shares used in the calculation of earnings per share of 96,039,605 (30 June 2023 : 86,345,843)

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IPD Group – AGM 2024

Sales & Earnings Growth

Record Revenue & EBITDA Growth Driven by Strategic Acquisitions

Revenue of $290.4 million, up 28.0% on pcp

• The acquisitions of EX Engineering and CMI Operations have contributed to the Group's revenue growth.

• Strong continuing revenue growth displayed by 35.0% CAGR over the past five financial years.

(12)

Underlying EBITDA of $40.1 million, up 44.8% on pcp

• Continued growth for the Group drives earnings above the top end of the guidance range.

• EX Engineering and CMI Operations higher EBITDA margins have contributed to the Group's results and expanding EBITDA margins.

(12)

• Strong underlying EBITDA growth with a 44.8% CAGR over the past five financial years.

• EX Engineering and CMI Operations higher EBITDA, EBIT and NPAT margins will continue to have an accretive impact on the consolidated group.

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(12)
Revenue Underlying EBITDA
$40.1m
35.0% $290.4m
44.8%
CAGR
CAGR
$226.9m 13.8%
$27.7m
$176.8m
$20.2m
$118.1m
$13.6m 12.2%
$87.5m
$107.8m
$9.1m 11.4%
$86.8m 11.5%
$67.5m
$46.3m
$33.6m 10.4%
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Statutory revenue Gross profit EBITDA EBITDA margin
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1. Underlying EBITDA is a non-IFRS measure reported to provide a greater understanding of business performance. Underlying EBITDA has been arrived at by adding back acquisition related costs totaling $1,221,000.

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IPD Group – AGM 2024

FY25 Update

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IPD Group – AGM 2024

Trading Update & Outlook

Earnings Guidance Provided 25 November 2024

Guidance is based on unaudited results for the first four months of FY25 and management forecasts for November and December.

• During the first four months of FY25 IPD Group has observed a 39% increase in average monthly orders received (vs 1H24 Pro Forma (13)), alongside a 50% increase in the Order Backlog (vs pcp Pro Forma) to $93.1m as at end-October 2024.

• This has been driven by a transition in the order book from daily trade toward larger and more complex orders, which typically have longer lead times and less certainty around delivery timing.

• While Revenue for 1H25 is forecast to exceed the pcp (Pro Forma), a proportion of orders that would previously have already become invoiced Revenue are now sitting in the Order Backlog. Additional investments into the operating cost base to generate and deliver these additional orders will impact margins for 1H25, albeit with the operating cost base now well placed to service future growth.

			(13)
	$m	1H FY24 Statutory Result	1H FY24 Pro Forma	1H FY25 Guidance Range
	EBITDA	16.1	24.8	22.5 – 23.1
	EBIT	13.7	21.4	19.2 – 19.8

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Order Backlog ($m) Average monthly orders received
93 ($m, PF)
40
62
29
+50% +39%
31 Oct-23 31 Oct-24 1H24 Jul-Oct 24
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The outlook for our markets remains buoyant, driven by the transition to renewable energy, increasing demand from data centres and their
energy requirements, the growing number of EV chargers, and a supportive legislative environment.
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1. IPD acquired EX Engineering on 21 July 2023 and CMI Operations on 31 January 2024. The Pro Forma information presented includes the financial performance of EX Engineering and CMI Operations prior to acquisition and excludes acquisition related costs.

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IPD Group – AGM 2024

Q&A

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IPD Group – AGM 2024

Thank you

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IPD Group – AGM 2024