MLG OZ LIMITED — Investor Presentation 2021

Aug 24, 2021

FY21 Full Year Results Investor Presentation

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25 AUGUST 2021

Business Update

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Revenue and EBITDA ahead of prospectus forecast

Higher revenues mitigating some challenging cost pressures

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• Pro forma revenue of $254.0 million ahead of prospectus forecast ($241.6 million)

• higher demand for haulage

• proceeds related to cessation of crushing activity at Christmas Creek.

• Pro forma EBITDA (Earnings before Interest and Tax) of $42.7 million ahead of prospectus forecast ($41.0m)

• Pro Forma excludes cost associated with IPO

• Fully franked final dividend has been determined to be paid of 1.71c per share for the period from 01 January 2021 to 30 June 2021. The dividend is expected to be paid on 1 October 2021

Statutory Pro Forma Actuals Prospectus Forecast Pro Forma Actual $000’s Notes FY20 FY21 FY21 FY21 Revenue Mine Site Services and Bulk Haulage 172,529 191,818 189,864 191,818 Crushingand Screening 28,858 55,478 47,842 55,478 Export Logistics 3,749 6,720 3,891 6,720 Fuel Tax Credits 1 3,311 3,470 - - Other Income 1 147 329 - - Total revenue 208,594 257,815 241,597 254,016 Costs of sales (167,975) (200,112) (184,622) (196,313) Grossprofit 40,619 57,703 56,976 57,703 General and administration (14,866) (17,465) (15,938) (14,984) EBITDA 25,753 40,238 41,038 42,719 Depreciation 2 (13,745) (18,519) (16,752) (18,519) EBIT 12,008 21,719 24,286 24,200	Statutory Pro Forma Actuals Prospectus Forecast Pro Forma Actual $000’s Notes FY20 FY21 FY21 FY21 Revenue Mine Site Services and Bulk Haulage 172,529 191,818 189,864 191,818 Crushingand Screening 28,858 55,478 47,842 55,478 Export Logistics 3,749 6,720 3,891 6,720 Fuel Tax Credits 1 3,311 3,470 - - Other Income 1 147 329 - - Total revenue 208,594 257,815 241,597 254,016 Costs of sales (167,975) (200,112) (184,622) (196,313) Grossprofit 40,619 57,703 56,976 57,703 General and administration (14,866) (17,465) (15,938) (14,984) EBITDA 25,753 40,238 41,038 42,719 Depreciation 2 (13,745) (18,519) (16,752) (18,519) EBIT 12,008 21,719 24,286 24,200	Statutory Pro Forma Actuals Prospectus Forecast Pro Forma Actual $000’s Notes FY20 FY21 FY21 FY21 Revenue Mine Site Services and Bulk Haulage 172,529 191,818 189,864 191,818 Crushingand Screening 28,858 55,478 47,842 55,478 Export Logistics 3,749 6,720 3,891 6,720 Fuel Tax Credits 1 3,311 3,470 - - Other Income 1 147 329 - - Total revenue 208,594 257,815 241,597 254,016 Costs of sales (167,975) (200,112) (184,622) (196,313) Grossprofit 40,619 57,703 56,976 57,703 General and administration (14,866) (17,465) (15,938) (14,984) EBITDA 25,753 40,238 41,038 42,719 Depreciation 2 (13,745) (18,519) (16,752) (18,519) EBIT 12,008 21,719 24,286 24,200	Statutory Pro Forma Actuals Prospectus Forecast Pro Forma Actual $000’s Notes FY20 FY21 FY21 FY21 Revenue Mine Site Services and Bulk Haulage 172,529 191,818 189,864 191,818 Crushingand Screening 28,858 55,478 47,842 55,478 Export Logistics 3,749 6,720 3,891 6,720 Fuel Tax Credits 1 3,311 3,470 - - Other Income 1 147 329 - - Total revenue 208,594 257,815 241,597 254,016 Costs of sales (167,975) (200,112) (184,622) (196,313) Grossprofit 40,619 57,703 56,976 57,703 General and administration (14,866) (17,465) (15,938) (14,984) EBITDA 25,753 40,238 41,038 42,719 Depreciation 2 (13,745) (18,519) (16,752) (18,519) EBIT 12,008 21,719 24,286 24,200	Statutory Pro Forma Actuals Prospectus Forecast Pro Forma Actual $000’s Notes FY20 FY21 FY21 FY21 Revenue Mine Site Services and Bulk Haulage 172,529 191,818 189,864 191,818 Crushingand Screening 28,858 55,478 47,842 55,478 Export Logistics 3,749 6,720 3,891 6,720 Fuel Tax Credits 1 3,311 3,470 - - Other Income 1 147 329 - - Total revenue 208,594 257,815 241,597 254,016 Costs of sales (167,975) (200,112) (184,622) (196,313) Grossprofit 40,619 57,703 56,976 57,703 General and administration (14,866) (17,465) (15,938) (14,984) EBITDA 25,753 40,238 41,038 42,719 Depreciation 2 (13,745) (18,519) (16,752) (18,519) EBIT 12,008 21,719 24,286 24,200
	Actuals		Prospectus Forecast	Pro Forma Actual
$000’s Notes FY20		FY21	FY21	FY21
Revenue
Mine Site Services and Bulk Haulage 172,529		191,818	189,864	191,818
Crushingand Screening 28,858		55,478	47,842	55,478
Export Logistics 3,749		6,720	3,891	6,720
Fuel Tax Credits 1 3,311		3,470	-	-
Other Income 1 147		329	-	-
Total revenue 208,594		257,815	241,597	254,016
Costs of sales (167,975)		(200,112)	(184,622)	(196,313)
Grossprofit 40,619		57,703	56,976	57,703
General and administration (14,866)		(17,465)	(15,938)	(14,984)
EBITDA 25,753		40,238	41,038	42,719
Depreciation 2 (13,745)		(18,519)	(16,752)	(18,519)
EBIT 12,008		21,719	24,286	24,200

• Notes: 1. Pro Forma offsets fuel tax credit revenue and other income against Costs of sales

2. Includes impairment of the Fixed Plants at the Fortescue’s Christmas Creek site in Actual and Pro Forma Actual FY21

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High levels of activity in Industry continue

Level of enquiry and new project commencement remains very high

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• High levels of growth opportunity with new projects commencing H1 FY22

• Northern Star (Existing Client) – Jundee expansion (started)

• Norton Gold Fields (New Client) – Paddington Operation (started)

• Mincor Resources NL (New Client) – Kambalda Nickel (early next year)

• Challenging labour market conditions

• Rising wage rates

• High demand across the industry for trained and experienced operators

• High demand for equipment within the industry

• Delays in supply from OEM’s

• Limited competitor scale in MLG space

• Preference to suppliers with fleet capacity (existing or on order)

• Covid restrictions continue to cause delays

• Inability to source labour from eastern states

• Sea lane shipping costs suffering severe escalation of cost

• Equipment orders delayed – utilising subcontractors

MLG remains well positioned

              - Large Fleet

              - Strong culture

     - Long term client relationships

        - Integrated service model

  - High maintenance capability (rebuilds)

        - Strategic assets (quarries)

        - Availability of equipment

           - Management depth

• Clients engaging in mitigation strategies

• Site specific allowances

• Rate increases underpinned by contractual rise and fall mechanisms

• Open to considering shared risk modelling

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Vertically integrated service offering

MLG delivers integrated production support services to embed MLG into customer operations

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Construction Site Services Crushing and Export Materials and Bulk Haulage and Civil Works Screening Logistics Quarries

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• Strategic acquisition and positioning of quarry operations, throughout Western Australia near key regional centres

• Supply of bulk materials products for mining and civil projects

• Sand

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• Crusher feed

• Road maintenance

• Rehabilitation work

• Vehicle maintenance

• Machine and labour hire

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• Contract crushing - mobile plant

• Build Owned and Operated- fixed plant

• Concrete aggregate production

• Road base production

• General screening

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• Bulk material transfer

• General site haulage

• Bulk ore haulage services (on road and off road)

• Logistics

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• Bulk material import/export

• Container handling

• Esperance Port facility

• Aggregate

• Cement

• Lime

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Financial Information

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Financial performance

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Higher revenues in FY21 mitigating some challenging cost pressures

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Prospectus Data - Pro forma|[1]|revenue|FY21 Actual - Pro forma|[1]|
|Statutory|Pro Forma|
|250|
|254|
|241|Prospectus|Pro Forma|
|Actuals|
|200|Forecast|Actual|
|205|
|200|
|$000’s|Notes|FY20|FY21|FY21|FY21|
|150|
|Revenue|
|133|
|100|Mine Site Services and Bulk Haulage|172,529|191,818|189,864|191,818|
|Crushing and Screening|28,858|55,478|47,842|55,478|
|50|Export Logistics|3,749|6,720|3,891|6,720|
|Fuel Tax Credits|2|3,311|3,470|-|-|
|0|Other Income|2|147|329|-|-|
|FY18|FY19|FY20|FY21F|FY21A|Total revenue|208,594|257,815|241,597|254,016|
|Prospectus Data - Pro forma|[1]|EBITDA|Costs of sales|(167,975)|(200,112)|(184,622)|(196,313)|
|40.0|42.7|Gross profit|40,619|57,703|56,976|57,703|
|41.0|
|General and administration|(14,866)|(17,465)|(15,938)|(14,984)|
|30.0|34.0|EBITDA|25,753|40,238|41,038|42,719|
|Depreciation|3|(13,745)|(18,519)|(16,752)|(18,519)|
|24.5|EBIT|12,008|21,719|24,286|24,200|
|20.0|
|Margins|
|EBITDA|17.0%|16.8%|
|15.6|
|10.0|EBIT|10.0%|9.5%|
|Notes: 2. Pro Forma offsets fuel tax credit revenue and other income against Costs of sales|
|3. Includes impairment of the Fixed Plants at the Fortescue’s Christmas Creek site in Actual and Pro Forma Actual FY21|
|0.0|
|FY18|FY19|FY20|FY21F|FY21A|

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Pro forma adjustments:

1.Adjusted for effect of new accounting standards (AASB9, AASB15 and AASB16), public company costs, and interest costs to reflect impact of proceeds from the offer. Revenue has been adjusted to offset fuel tax credits against cost of fuel rather than shown as revenue.

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Income statement

Statutory result recognises IPO costs and higher interest costs in FY21

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Revenue

• Statutory Group revenue for FY21 was $257.8m up $49.2m (23.6%) on the prior corresponding period (pcp) of $208.6m.

• Pro forma Revenue of $254.0m ahead of prospectus forecast of $241.6m.

• Significant improvement in crushing and screening revenue with two FMG fixed plants fully operational during FY21

• Growth in civil construction revenue

• Client volumes higher than FY20 – not experiencing same impact from COVID-19

Profitability

• Statutory Net after tax profit increased to $12.5m ahead of $5.7m in FY2020. Statutory NPAT included the full costs associated with the initial public offering.

• Pro forma EBITDA of $42.7m ahead of prospectus forecast of $41.0m.

• Higher depreciation reflects impairment adjustment against the construction costs of the two crushing plants following the cessation of operation

Revenue by service offering

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• Higher cost of sales reflects higher utilisation of subcontractor and labour hire services and the impact of higher labour rates

• Pro forma results are presented to be consistent with the prospectus financial information and therefore exclude the costs associated with the initial public offering (IPO).

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Cashflow and Capital expenditure Continued strong cash flow conversion and higher capex ahead of new contract start-ups in FY22

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• Historical positive operating cash flow allowing the business to cover the majority of the capital investment which has occurred across the same time period

• Higher FY21 capex includes investment in equipment for new projects at Jundee, and Paddington commencing in FY22

• Cash conversion rate lower due to a large outstanding debtor at 30 June 2021 (Debt has now been received)

Pro forma[1] cash flow summary

	Pro Forma1 Historical	Pro Forma1 Historical	Pro Forma1 Historical	Pro Forma1 Historical	Pro forma1 Forecast		Pro forma Actual
$'000	Notes	FY18	FY19	FY20	FY21		FY21
EBITDA		15,599	33,970	24,482	41,038		42,719
Movement in net working capital		8,208	(8,890)	4,536	(851)		(2,686)
Other operating cash flows	2	-	38	17	-		-
Tax paid		(3,858)	(2,714)	(2,132)	(2,626)		(3,139)
Operating Cash Flows		19,949	22,404	26,904	37,561		36,894
Net Replacement Capex		(563)	(5,604)	(11,337)	(9,267)		(10,735)
Growth Capex		(24,065)	(19,822)	(36,746)	(22,206)		(30,415)
Net Cash Flows before financing	3	(4,679)	(3,022)	(21,179)	6,088		(4,256)
Cash flow metrics FY18 FY19 FY20 FY21F FY21A
Operating cash flow conversion 127.9% 65.9% 109.9% 91.5% 86.4%

Pro forma adjustments:

• 1.Adjusted for effect of new accounting standards (AASB9, AASB15 and AASB16), public company costs, and interest costs to reflect impact of proceeds from the offer. Revenue has been adjusted to offset fuel tax credits against cost of fuel rather than shown as revenue. 2 Movement in net working capital represents the movement between the opening and closing working capital positions in each period presented

• The Pro Forma Historical Cash Flows and Pro Forma Forecast Cash Flows have been presented at the net cash flows before financing level as the capital and debt structure of MLG will be different post Offer and as the repayment of debt mentioned above is expected to be spread across debt facilities and various hire purchase arrangements

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Balance Sheet

Lower net debt as compared to 30 June 2020 providing capacity for growth following receipts of IPO proceeds

$000’s	Consolidated 30 June 2021	Consolidated 30 June 2020
Cash and cash equivalents Trade and other receivables	9,689 42,226	1,005 33,392
Inventories	14,214	9,866
Total current assets	66,130	44,264
Property, plant and equipment	152,098	128,012
Other non-current assets	4,660	6,466
Total non-current assets	156,757	134,478
Total assets	222,887	178,742
Trade and otherpayables	47,074	35,049
Financial liabilities	28,229	49,007
Lease liabilities	1,525	1,450
Provisions	1,009	763
Total current liabilities	77,836	86,270
Financial liabilities	18,226	28,402
Lease liabilities	3,287	4,515
Other non-current liabilities	9,313	5,076
Total non-current liabilities	30,826	37,993
Total liabilities	108,662	124,262
Net assets	114,225	54,480

• Strong cash position at 30 June 2021 of $9.7m

• Net Assets increase to $114.2m, underpinned by $152.1m of property, plant and equipment

• Utilisation of proceeds from IPO to reduce financial liabilities by $30.9m

• Net debt at $36.8m as at 30 June following higher capital expenditure (0.86x EBITDA)

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Capital Management and Dividend

MLG has established debt facilities with sufficient headroom to support growth and working capital

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Liquidity

Dividend

• Strong operating cashflow of $36.9m

• Debt facilities available for growth

• At 30 June 2021 MLG had $85.7m of total equipment finance facilities

• $55.6m of these facilities were unused

• Broad range of hire purchase facilities with various funders each with specific credit limits

• Multiple providers (Banks, Specialist equipment finance, equipment manufacturers)

FY21 dividend Franking credits Dividend policy

• Final dividend has been determined to be paid for 01 January 2021 to 30 June 2021 of 1.71c share expected to be paid on 1 October 2021

• The final dividend for FY21 will be 100% franked

• MLG has a current franking balance of $20.4 million prior to the payment of the FY21 dividend

• The MLG Board expects to pay a dividend in the range of 30-50% of NPAT and it is expected that the dividend would be paid semi-annually

• Interest rates remain highly competitive

• Understand our business and long history of lending

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Robust industry dynamics driving growth from existing clients with continuing demand for greater ore movements

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Outlook for FY22

Material projects commencing in H1 and large tenders on horizon for H2

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• Business development pipeline very active with large scale opportunities aligned to MLG integrated model

• Recent contract wins mobilising in H1 FY22 (Northern Star – Jundee, Norton Gold – Paddington, Mincor – Kambalda)

• Short listed with Roy Hill (large integrated Crushing and Screening, Haulage and Site services contract)

• –

• MOU signed with Lithco as preferred supplier for Crushing and Screening, Haulage and Export Logistics (Bald Hill) commercial terms in negotiation (commence H2, 3-5 years)

• Awarded Western Areas (Cosmic Boy) integrated Haulage, Site Services and Export Logistics contract (3 years)

• Multiple other tenders underway

• Challenging cost pressure but mitigation opportunities

• Clients engaging in site specific incentives

• Our ability to complete material rebuilds of machines growing

• Large contingency of pre ordered new equipment on track to arrive in coming weeks

• Redeploying activity from lower margin work to higher margin opportunities

• Rate increases underpinned by contractual rise and fall mechanisms

• Crushing plants awaiting redeployment

• Transitioned into care and maintenance activity

• Assessing market opportunities

• Not required to service current project needs

• Opportunities to redeploy actively being investigated

• Financial Performance

• Market aware of lower H1 expectations (loss of Christmas Creek) and set-up costs for new projects

• Stronger second half expected as new projects fully mobilise and full year benefit of projects commencing in FY21 (Ora Banda, Tampia)

• Review of Lime business (importation) viability due to material increase in importation cost (sea freight)

Private & Confidential

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Strong pipeline of potential growth opportunities

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MLG has identified and is actively pursuing a range of potential growth initiatives

Pursuit of strategic assets

Further contract wins

Expanded service offering

  - Continued pursuit of strategic assets (such as quarries) near long-life assets with the aim of creating a competitive advantage

• MLGs growth to date has been driven by the ability to offer a range of capabilities within the production process through one delivery model

• Utilise differentiated business capability to provide multiple support services into one delivery framework

• • Quarries established to date have provided a Consolidate MLG’s position as a critical component of the client’s operations and the • Seek to further enhance and expand this competitive advantage in unlocking further production supply chain service offering to provide MLG with a contract expansion within the existing client potential competitive advantage in future base

• 1 tender processes 2 3

• Bolt-on acquisition opportunities Commodity market diversification Australia-wide operations • Current MLG clients consist of low-cost gold, • Significant potential opportunity to expand

• • Complementary potential acquisition nickel, and iron ore operations the scope of MLG’s offering to mining and opportunities have been identified by MLG, • Seek further exposure to new commodities to non-mining clients and operations across which would broaden MLG’s service offering provide further portfolio diversification and Australia and geographical reach exposure to long-life assets • MLG will actively pursue selective and • complementary opportunities More diverse commodity exposure will provide opportunities to increase project pipeline

• 4 5 6

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E: investors@mlgoz.com.au