IPD GROUP LTD — Investor Presentation 2023

Nov 27, 2023

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AGM 2023 | 28 NOVEMBER 2023

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IPD GROUP FY23 RESULTS PRESENTATION

Important notice & disclaimer

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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 yourstockbroker, 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.

This release has been authorised by the IPD Group Limited Board of Directors.

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IPD GROUP AGM 2023 PRESENTATION

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IPD GROUP FY22AGM 2023 PRESENTATIONRESULTS PRESENTATION 17

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Our Vision

To help build a future where sustainable electrical infrastructure creates a better life for all.

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Our Mission

To enhance every aspect of infrastructure through energy efficiency, automation and secure connectivity while prioritising the safety and wellbeing of people.

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IPD GROUP AGM 2023 PRESENTATION

Our guiding principles

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IPD GROUP AGM 2023 PRESENTATION

FY23 Results

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Financial perfomance Continued strong organic growth for IPD Group

REVENUE $226.9m

EBITDA EBIT $27.7m $23.4m Up 37.1% (PCP $20.2m) Up 41% (PCP $16.6m)

Up 28.3% (PCP $176.8m) Up 37.1% (PCP $20.2m)

NPAT $16.1m

Up 45% (PCP $11.1m)

TOTAL DIVIDENDS – FY23

9.3cents

Payout ratio of 50%

NET ASSETS $72.9m

($63.4m as at 30 June 2022)

NET CASH LTIFR (1) $20.8m 1.1 LTIFR

($25.4m as at 30 June 2022)

PRODUCTS/SERVICES ROIC /ROCE(2) (3) REVENUE SPLIT 20% / 29% 92% / 8%

1. Lost time injury frequency rate at 30 June 2023. LTIFR Average number of lost time injuries over the past 12 months for every 1,000,000 hours worked

2. Return on invest capital (ROIC) = NOPAT / Invested Capital. NOPAT = NPAT (no debt on balance sheet). Invested capital = Equity + lease liabilities

3. Return on capital employed (ROCE) = EBIT / Capital Employed. Capital employed = Total assets –current liabilities

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IPD GROUP AGM 2023 PRESENTATION

Sales & earnings growth

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Record revenue & EBIT results

Revenue of $226.9 million, up 28.3% on pcp

• Strong organic growth displayed by a 26.1% CAGR since FY21 has been delivered predominantly by the existing product portfolio and growing market share

• Strong statutory growth displayed by a 38.6% CAGR since FY21 demonstrates the success of the IPD’s strategy to pursue strategic acquisitions

EBIT of $23.4 million, up 41.0% on pcp

• There have been ongoing strategic investments made during the year

• Expansion of the Gemtek team

• Recruitment of specification focused business development managers across the country

• Operational expansion with a new 4,000sqm warehouse

• While the Company has invested into these strategic initiatives during the financial year, IPD has continued to deliver strengthening EBIT margins through increases in gross profit margins and the benefits of operating leverage. EBIT has grown at a 56.0% CAGR since FY21

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ORGANIC REVENUE STATUTORY REVENUE
$226.9m $226.9 m
26.1% 38.6%
Organic CAGR Organic CAGR
$180.5m
$176.8 m
$142.6m
$118.1 m
FY21 FY22 FY23 FY21 FY22 FY23
Proforma Revenue Statutory Revenue
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IPD GROUP AGM 2023 PRESENTATION

FY23 Overview

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Growth momentum has continued

Successful integration of Control Logic and HTC businesses

Strong organic growth at a 26.1% revenue CAGR between FY21 and FY23

Delta distribution agreement providing access to new UPS and BESS markets

Orders won for multiple data centres

New business development investment is creating demand through specification

Busduct project business is growing

Additional 4000m[2] warehouse frees up 30% capacity in main distribution centre

IPD GROUP AGM 2023 PRESENTATION 22

Our market drivers

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Electrification and energy transition:

• Electricity usage to double by 2050

• Decarbonisation: Since 2007, Australia cut its fossil fuel electricity use from 81% to 53% and is adopting renewables faster than the global average

• Decentralisation: Improved technology has boosted efficiency and affordability in the decentralised energy sector

• —Storage capacity to increase 30x

• —Grid scale wind & solar increase 9x

• —Distributed solar PV 5x

• Digitalisation: Smart meters and digitalisation in Australia’s energy sector are on the rise

EV infrastructure:

• IPD Group has a potential $1b opportunity in the expanding EV charging infrastructure, set to grow 20x by 2030

• Australia’s EV fleet is set to grow from ~40k to 1m by 2027, increasing infrastructure demand

• IPD Group offers end-to-end EV infrastructure solutions

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IPD GROUP AGM 2023 PRESENTATION

Unique end-to-end solution

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Well placed to capitalise on EV charging infrastructure investments

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Gemtek’s EV charging site assessment, infrastructure design and load management solutions

IPD product distributor for many brands of electrical distribution & charging equipment

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IPD manufacturing of
EV charging distribution
boards
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Addelec engineering, construction with service & maintenance capability

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IPD GROUP AGM 2023 PRESENTATION

Ex Engineering acquisition

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Significant step forward in expanding our service offerings and capabilities

Solid financials : Revenue ~$12M EBITDA $2.5M Purchase price ~$10M

Complex assembled products; with sticky customers protecting profits

Services hazardous environment customers such as oil and gas, petrochemicals, mines, grain etc

High barriers to entry due to specialised knowledge and regulatory hurdles

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Next steps: IPD’s national sales force and footprint to expand the successful EX Engineering model across Australia from its current base in WA

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IPD GROUP AGM 2023 PRESENTATION

Transaction Highlights

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IPD is undertaking the acquisition of CMI Operations

• IPD Group Limited (“ IPD ”) to acquire CMI Operations Pty Ltd (“ CMI ”), a leading distributor of electrical cables and manufacturer and distributor of

• Transaction plug brands in Australia, from ASX listed Excelsior Capital Limited (“ Excelsior ”) (ASX:ECL) • Total consideration includes an upfront payment of $92.1 million and a contingent payment up to a maximum of $8.9 million • CMI is a strategically compelling acquisition in highly complementary sectors that extends IPD’s product suite, increases supplier diversity,

• Rationale strengthens its overall value proposition with existing customers and broadens customer reach

• Attractive • Low capital intensity and high cash flow generation business • Solid and growing EBIT margins , increased from 12.0% in FY21A to 14.9% in FY23A model • Strong re-occurring revenue streams linked to a regulatory driven plug replacement cycle • CMI has been experiencing significant organic growth , growing at a ~ 18% revenue CAGR between FY21A and FY23A

• Growth • During the same period, EBIT has grown at 31% per annum , demonstrating the benefits of operating leverage

• Funding • Acquisition to be funded with a combination of new debt facilities and a fully underwritten equity raising of approximately $65 million • The acquisition results in pro forma FY23A EPS accretion of over 30% (excluding synergies)[2]

• Financial • Increases IPD’s pro forma FY23A EBIT margin from 10.3% to 11.7%

• impact[1] • Leverage of ~0.9x gross debt[3] / pro forma FY23A EBITDA

• Pro forma FY23A metrics exclude any synergies, incremental costs, or one-off transaction or integration costs

• Adjusted for the theoretical ex-rights price (“TERP”) which is the theoretical price at which an IPD share should trade at immediately after the ex-date for the Entitlement Offer. Assumes that the maximum contingent payment of $8.9 million is paid (refer to next page for details)

• Gross debt is on a pre-AASB16 basis (excluding lease liabilities)

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IPD GROUP FY22 RESULTS PRESENTATION

CMI Overview

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CMI sells a portfolio of electrical cables and Australia’s leading plug brand for hazardous environments

Key facts

• Established in Sydney in 1991, CMI is a leading distributor of electrical cables and manufacturer and distributor of its “Minto” plug brand

$104.3m

FY23A net sales

18%

FY21A – FY23A revenue CAGR

• CMI consists of two core divisions:

• CMI’s cable division supplies electrical cable to major construction, infrastructure and renewables projects nation-wide, targeting orders of between $0.25m - $10m

• CMI’s plug division “Minto”, is the market leader in hazardous environments and other safety-focused applications for its best-inclass couplers and receptacle products

• Since its establishment, CMI:

• has grown organically to generate $104.3 million of revenue in FY23A and $15.5 million of EBIT

• has expanded to operate Australia wide, with six warehouses located across four states

• now employs ~60 people who service ~500 customers annually

• CMI is exposed to growing industries, with end-users in construction, infrastructure, renewables, mining, tunnelling and precious metals

$17.1m

$15.5m

FY23A EBITDA

FY23A EBITDA FY23A EBIT 16.4% 14.9% FY23A EBITDA margin FY23A EBIT margin 27.4% ~60 FY23A gross profit margin FTE employees as at June 2023

FY23A gross profit margin

6 Warehouses across 4 states

~500

Customers as at June 2023 nil Lost time incidents since FY20

<1%

Warranty rates

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IPD GROUP FY22 RESULTS PRESENTATION

Our strategic priorities Focused on achieving double-digit growth

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EV infrastructure

Merging Addelec and Gemtek to capitalise on the growing EV infrastructure market with a substantial combined team

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People &

capabilities

Investing in resources over and above the current pool to support our strong revenue growth

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Strategic sales

Investing in business development managers across the country to boost demand by promoting our IPD solutions to key influencers and identify early project opportunities

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Acquisitions

Expand product portfolio further into key themes of decarbonisation, decentralisation, and digitalisation

Continue to pursue strategic and earnings-accretive company acquisitions, while ensuring a good cultural fit

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IPD GROUP AGM 2023 PRESENTATION

Our people & sustainability

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Our people are not just the heart
of IPD Group, they are the driving
force behind our success.
43% 1.1
Net promoter score – This reinforces Lost time injury
our ‘employer of choice’ status, with frequency rate
(LTIFR)
many satisfied employees likely to
recommend our business
70% 567
Employee engagement score IPD employees
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Environmental

Dedicated to energy efficiency with a 100Kw solar system at our Sydney Headoffice

Sustainable procurement practices and our collaboration with suppliers for a circular economy in packaging

Use of 100% FSCcertified Fill Pak paper and recyclable boxes

Recycling initiatives and partnership with reDirect Recycling

ISO 14001 accreditation highlights structured environmental management

Transitioning our fleet to Electric Vehicles

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Social

Support and company donations for initiatives such as ‘Biggest Morning Tea’, ‘International Women’s Day’, ‘Movember’ and ‘R U OK Day’

Implementation of an Employee Assistance Program (EAP)

Introducing employee transition programs, including parental leave andretirement plans

Sponsoring multiple industry associations such as NECA, MEA, and NESMA to provide essential funding for the electrical industry

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Governance

Commitment to ethical business conduct

Environmental standards and transparent affiliations in place

Inclusive employee programs

Mandatory training for all commercial employees around ACCC and our obligations as an ASX listed entity

A strong Designated Line of Authority (DLA) policy across the organisation ensuring compliance and adherence

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IPD GROUP AGM 2023 PRESENTATION

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IPD GROUP FY22AGM 2023 PRESENTATIONRESULTS PRESENTATION 30

Trading update & outlook

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Earnings guidance

Guidance is based on unaudited management accounts for the first four months of FY24 and management budget for November and December

$m	H1 FY23 statutory	H2 FY23 statutory	Underlying H1 FY24 guidance 1	H1 FY23 vsH1 FY24 change (%)2
EBITDA	13.4	14.3	16.0 – 16.5	~21%
EBIT	11.5	11.9	13.5 – 14.0	~20%

• Positive momentum has continued into FY24 and the outlook for our markets remain buoyant

• Tailwinds from the electrification of the economy have had a positive impact

• The Company is expecting a number of significant projects to commence in the second half of the year

• Excludes one off M&A transaction costs

• Based on the midpoint of the H1 FY24 guidance range

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IPD GROUP AGM 2023 PRESENTATION

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IPD GROUP FY22AGM 2023 PRESENTATIONRESULTS PRESENTATION 32

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Thankyou

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IPD GROUP AGM 2023 PRESENTATION