OLDFIELDS HOLDINGS LIMITED — AGM Information 2021

Jan 27, 2021

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OLDFIELDS HOLDINGS LIMITED

ANNUAL GENERAL MEETING

28[th ] January 2021

Important Notices and Disclaimer

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This company presentation (“Presentation”) has been prepared by Oldfields Holdings Limited ABN 92 000 307 988 “OLH”, “Oldfields”, or “the Company”)

Summary information : This Presentation contains summary information about OLH and its related bodies corporate and their activities, which is current as at the date of this Presentation. The information is of a general nature and does not purport to be complete. OLH, its directors, officers and advisers (“Associates”) have used reasonable endeavours to ensure that the information contained in this Presentation is not misleading but they give no representation or warranty (express or implied) in this regard and, to the extent permitted by law, accept no responsibility for any loss, damage, cost or expense (whether direct, or indirect, consequential, exceptional or special damages including but not limited to loss of revenue, profits, time, goodwill, data, anticipated savings, opportunity, business reputation, future reputation, production or profit, any delay costs, economic loss or damage) that any person may sustain as a result of reliance on this Presentation or as a result of any error, omission or misrepresentation in this Presentation. None of the information contained in this Presentation has been independently verified by a third party.

Third party information and market data : This Presentation contains information that has been derived from publicly available sources or third party surveys that have not been independently verified by OLH. No representation or warranty is made as to the accuracy, completeness or reliability of the information.

Not financial product or investment advice : This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other offer document under Australian law or the law of any other jurisdiction. This Presentation is not financial product or investment advice, a recommendation to acquire OLH securities, or accounting, legal or tax advice. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs, and obtain appropriate independent professional advice. OLH is not licensed to provide financial product or other advice in respect of OLH securities. This Presentation should not be relied upon as a recommendation by OLH with respect to any investment in OLH securities.

Past performance : The historical information in this Presentation is, or is based upon, information that has been released to the Australian Securities Exchange (“ASX”). This Presentation should be read in conjunction with OLH’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au. Past performance information given in this Presentation is for illustrative purposes only and should not be relied upon as (and it is not) an indication of OLH’s views on its future financial performance or condition. Investors should note that past performance of OLH or any of its related bodies corporate cannot be relied upon as an indicator of future OLH performance including future share price performance.

Financial data : Investors should be aware that certain data included in this Presentation may not have a standardised meaning prescribed by Australian Accounting Standards, and therefore may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards. Certain financial data included in this Presentation is ‘non-IFRS financial information’. OLH believes that this non-IFRS financial information provides useful insight in measuring the financial performance and condition of OLH. Readers are cautioned not to place undue reliance on any non-IFRS financial information including any ratios included in this Presentation.

Future performance : This Presentation may contain certain forward-looking statements. Such statements can generally be identified by the use of words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘objectives’, ‘outlook’, ‘guidance’, ‘forecast’ and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forwardlooking statements, including projections, indication or guidance on future earnings and financial positions, should not be relied upon as an indication, representation or assurance of future performance. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statements by any person including OLH and its Associates. Actual results, performance or achievements may vary materially from any projection and forward-looking statements and the assumptions on which those statements are based.

Except as required by law or regulation (including the ASX Listing Rules), PLH disclaims any obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Risks : OLH, and an investment in OLH securities, is subject to known and unknown risks, some of which are beyond the control of OLH. OLH does not represent or warrant any particular rate of return or performance of OLH, nor does it represent or guarantee the repayment of capital from OLH or any particular tax treatment.

Not an offer in the United States : This Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The distribution of this Presentation in other jurisdictions outside Australia may also be restricted by law. Any failure to comply with such restrictions may constitute a breach of applicable securities law. By accepting or accessing this Presentation you represent and warrant the you are entitled to receive such Presentation in accordance with the above restrictions and agree to be bound by the representations, terms, limitations, indemnities and disclaimers contained herein.

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Chairman & Board of Directors

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• Jonathan Doy – Chairman (Interim)

• David Baird - Non Executive Director

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• Jie Ma - Non Executive Director

• Richard Abela - Managing Director & CEO

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AGENDA

1. Welcome

2. Chairman’s Address

3. CFO Address

4. CEO Address

5. China Update

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1. Digital Transformation

2. Resolution 1 – Re-election of Director

3. Resolution 2 – Remuneration Report

4. Resolution 3 – Change of Auditors

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CHAIRMAN ADDRESS JONATHAN DOY

Welcome & Interim Chairman Address

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Welcome

• Upcoming presentations from CFO Alan Lee , CEO Richard Abela , NED Jie Ma and NED David Baird

• All presentations have been lodged with the ASX and are available on the Oldfields web site.

• The 2020 year has been severely impacted both by Building Cycles and accentuated by COVID-19 impact on demand

• The major shareholders and Board appointments in April 2020

• New thinking and fresh approaches are building plans for Oldfields future in this new normal

• All shareholders will be invited to participate in new opportunities

• Thank you to the Board, Management and Shareholders for all your support of the turnaround strategies

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COMPANY SECRETARY & CFO ALAN LEE

EBITDA Bridge – FY20 vs FY19

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

1,400
179
(52)
1,200 250 (149)
713 (402)
(37)
1,000 (1,059)
914
(158)
800
661
-
600
400
351
200 Consumer division Scaffold division
-
(200)
$'000s
----- End of picture text -----

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EBITDA Bridge – FY20 vs FY19 (Cont’d)

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Key EBITDA movements from FY19 to FY20

• Consumer division - Revenue increased with lower margin (FX loss and higher freight costs)

• Consumer division (NZ) – started since Nov 2019

• Scaffold division – COVID impacted on both revenue and margin (relatively more significant). SG&A expenses reduced from cost saving initiatives.

• Head office support – increased due to equity transaction, debt repayment and other restructuring activities.

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CHIEF EXECUTIVE OFFICER RICHARD ABELA

Review of 2020 – A Challenging but Important Year

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2019 / 2020 has continued to present some of the most challenging conditions.

• Building cycle downturn has been accentuated by COVID

• The postponement and delay on jobs & sites has stalled pipelines

• State lockdowns has hit revenue and staffing levels requirements

• Forward industry confidence is at best cautious in unpredictable environments.

• The ability to build on programs and further develop key client relationships was / is significantly hampered.

• As the market returns, margins are under renewed pressure until remaining players find a new equilibrium on pricing

• More recently, international supply chain challenges have put pressure on inventories, customers deliveries & cash flow.

Review of 2020 – Response and actions

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The business is responding decisively and rapidly;

• Cost reductions and consolidation where necessary to protect assets and capital are in place and are under constant fortnightly review

• The business is taking a fresh look at all business units in respect to their competitive position and ability to provide differentiation in the new economy

• We remain close to key customers and are tracking their recovery at the ground level

• We are working intelligently to develop a more flexible cost base and assuming worst case forecasts

2020 – Paint Tool Essential - steps forward

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• Innovation strategy has started to bear fruit. Has allowed the business to re-establish itself as a true trade product leader and to take market share again

• Targeted hero product introductions are proving invaluable in growing our offer

• UK & NZ Export feedback is proving to be a great new market opportunity which will be pursued in 2021

• USA – Sampling feedback extremely positive

• On-Line – move into online (Click and Collect) will assist store partners to grow sales of Oldfields while increasing end consumers’ awareness

• Key partners have signed onto the program

• Targeting non active consumer segments

2020 – Scaffolding - Steps Forward

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• Key customers: communication and further focus on key accounts is building

• Job mix is improving in an attempt to counter building cycles and macroeconomic trends

• Targeting 1[st] and 2[nd] tier organisations in all channels

• Skill base – capacity and qualitative building

• China New Production Facility

• Capacity – relocation mid 2020 into a major new facility

• Local revenue opportunities – important discussions underway with significant potential customers

New Board Focus

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• New board established from April 2020

• Fresh eyes on the business, model, value proposition and its potential.

• Fresh look at business units and our ability to scale and generate profits

• Emphasis on sustainability and profitability over the medium term and significant growth long term

• New opportunities being investigated

• Priorities will need to be set and not forgotten as we climb out of the current economic environment.

• Increase Capital – all time low interest rates and our debt-free balance sheet means now is the time to raise fresh capital and strengthen ourselves

• New investment in strategic niches will allow growth to occur in the new post-COVID economies

Summary for 2021

Paint Tool are Essentials

• Lock in more major distributors

• Launch on line strategy

• Develop off shore markets

Scaffolding

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• See out the current environmental impacts

• Continue to consolidate and improve cost base

• Continue build right key account relationships

• Differentiate based on service/quality/compliance

China – Export and Local Revenue

• Establish scale with new manufacturing facility

• Develop revenue opportunities with rare strategic clients

International

• Accelerate the development of the UK & NZ paint tool markets.

• Commence investigation into Paint Tools USA

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CHINA UPDATE JIE MA

China Update

Original Canton Province

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New Henan Province

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China factory - Video

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• Available on the Company’s website https://oldfields.com.au/investor-centre/

• New Investor Centre Portal to be launch mid-2021

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Digital Transformation DAVID BAIRD

Digital Transformation

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• Market Analysis

• UK Opportunity

• Digital Strategy

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ITEMS OF BUSINESS

Financial Statements & Reports

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To receive and consider the following reports of the company for the financial year ended 30 June 2020;

• The financial report (which includes the Statement of Financial Position, Statement of Comprehensive Income, Cash Flow Statement and Directors Declaration); and

• The Directors’ Report and Auditor’s Report

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Resolution 1

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Re-election of David John Baird as a Director

“That David John Baird, who retires by rotation in accordance with the Company's Constitution and being eligible, offers himself for re-election as a Director, be re-elected as a Director.“

Total Proxies received	42,480,497
Votes for	42,356,211
Votes against	0
Proxy’s discretion	124,286
Exclusions	0
Abstentions	0

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Resolution 2

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Remuneration Report

“That the FY2020 Remuneration Report be adopted”

Total Proxies received	42,480,497
Votes for	2,971,683
Votes against	0
Proxy’s discretion	124,286
Exclusions	39,384,528
Abstentions	0

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Resolution 3

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Change of Auditors

"To accept the resignation of “ BDO East Partnership” as Auditors of the Company and to approve the appointment of “ BDO Audit Pty Ltd” as the Company’s auditors from 22 May 2020."

Total Proxies received	42,480,497
Votes for	42,356,211
Votes against	0
Proxy’s discretion	124,286
Exclusions	0
Abstentions	0

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