SCHOOLBLAZER LIMITED — AGM Information 2019

Feb 19, 2019

20 February 2019

CEO's AGM Presentation

Please find attached the CEO's presentation to the HGL Ltd (ASX: HNG) Annual General Meeting being held today.

Enquiries in relation to the presentation should be directed to Henrik Thorup, Chief Executive Officer, on 0419 268 560.

Yours sincerely

Iain Thompson

Company Secretary

HGL Limited

Annual General Meeting 20th February 2019

CEO Presentation Henrik Thorup AGM Presentation

21 February 2018 Henrik Thorup – Chief Executive Officer

20th February 2019 ASX:HNG

1. GPS Strategy Plan 2022

2. Operational Review

CEO Presentation Henrik Thorup 4. Corporate Update

21 February 2018

1. FY19 Trading Outlook

CORPORATE HIGHLIGHTS

• Executing the GPS strategy with significant corporate activity undertaken:
  • Acquisition of Pegasus Healthcare making a substantial addition to our company portfolio.
  • Bolt-on acquisitions of Intralux and POSM strengthening the product offering in SPOS Group and JSB Lighting.
• Evolving sales performance in SPOS Group, Pegasus Healthcare and Mountcastle.
• Conduct by former CEO in JSB Lighting causing departure of many senior management and staff members has negatively impacted interim sales and profit performance in the company.
• Settlement of JSB Lighting legal case against BFD Lighting and other respondents will contribute to HGL's non-underlying earnings in FY19.
• Acquisition opportunities currently being pursued in segments like Medical Equipment, School Wear, Architectural Lighting and Other Segments.

1. GPS Strategy Plan 2022

2. Operational Review

CEO Presentation Henrik Thorup 4. Corporate Update

21 February 2018

1. FY19 Trading Outlook

BUSINESS MODEL OF EQUITY AND SKILLS

Business model based on two-tiered eco-system utilising Equity and Skills

Parent Company

• actively partnering with a portfolio of wholly or partly owned companies in Australia and overseas.

Wholesale and distribution Companies

• selling exclusive agency or company brands in diversified business-to-business markets

Business Unit

HGL Limited

Equity & Skills

HGL MANAGEMENT SUPPORT TO OUR BUSINESS UNITS

Small business owners require equity to grow and are seeking corporate management skills to remain competitive, both provided by HGL Head Office.

• * Shared responsibility CEO & CFO
• ** Shared responsibility HR & CEO

GPS STRATEGY PLAN (Roadmap 2022)

Macro-trends: Increasing population and aging demographic driving Industry Prospect

REVENUE AND PROFIT TARGETS (Organic Goals FY18-FY22)

Continuing Operations*

* Continuing Operations are JSB Lighting, SPOS Group, BLC Cosmetics and Pegasus Healthcare.

** EBIT to sales ratio incorporates Continuing Operations plus Mountcastle equity accounted profit contribution

1. GPS Strategy Plan 2022

2. Operational Review

CEO Presentation Henrik Thorup 4. Corporate Update

21 February 2018

1. FY19 Trading Outlook

FY18 FINANCIAL PERFORMANCE (Continuing Operations*)

Improving performance in Continuing Operations underpinned by recent acquisitions.

5 Year Compound Annual Growth Rate (CAGR) 2014-2018:

Revenue up 5%, Underlying EBIT up 34% and Operating Cash Flow up 8%

NOTE: * Continuing Operations are JSB Lighting, BLC Cosmetics, SPOS Group and Pegasus Healthcare.

**Underlying EBIT includes Continuing Operations plus Mountcastle equity accounted profit contribution

HGL HEAD OFFICE FUNCTION

HGL Head Office with decreasing cost base able to manage larger Group.

• HO with lower expenses able to manage larger Group.
• Lower payroll cost across board and employees since 2014
• No incentives payments since 2016.
• Board currently consist of 4 directors, down from 5 directors.
• Key Management Personnel reduced from 3 to 2 since 2015.
• Transition of senior accounting and HR roles to general staff in full-time and part-time functions (2).
• HGL has signed new lease agreement for reduced office space in the existing Macquarie Park tenancy.

Normalised Head Office Expenses ($m)

Note: FY18 head office expenses normalised for unallocated incentive provisions ($0.2m)

PEGASUS HEALTHCARE

Pegasus performing ahead of expectations adding scale and contribution to earnings.

• Renewed master contract with NSW Health for 5 + 5 years
• Tendering for additional contracts in Sydney Local Health Districts (LHD)
• New branch offices established in Ballina and Newcastle (NSW)
• New setup in Canberra supporting local health district
• New Corporate Identity implemented in November 2018
• Investing in back office capacity to build base for future organic and transactional growth.

SPOS GROUP

SPOS is a solid contributor to Group results gathering further momentum

• Increased profitability from sales growth in FY18 despite tougher retail conditions driving down margins
• Significant synergy and cross-selling opportunities have been derived from the purchase of POSM
• New Pro-Glide product range providing opportunity to enhance retail presence
• Launch of Ticket-it, an automated in-store ticket management solution sold to major retail chains in Australia
• Growth in NZ operation is emerging under new sales management
• New e-commerce website launched in January 2019

Pro-Glide System

JSB LIGHTING

JSB Lighting is rebuilding under new CEO and management team

• Settlement in December 2018 of JSB Lighting legal case against BFD Lighting and other respondents
• Conduct by former CEO and loss of senior employees have negatively impacted sales and profit performance
• New sales force rebuilding project pipeline gaining daily traction
• Introduction of new Sammode and IILUS brands and new Intralux products lines will add further opportunities
• Plan to relocate Sydney head office to lower cost premises

Sammode Tubular Lights Intralux Light Fittings

BLC COSMETICS

Change initiatives in BLC are yielding emerging results with full impact to be realised

• The company is undergoing significant change to build scale, profitability and sustainability.
• Execution of a new client service activities to larger, profitable, key accounts.
• Secured new exclusive distribution rights for Linda Meredith (UK) and Scentered (UK) in Australia
• Launch of the new Skin Regimen cosmeceutical brand from Comfort Zone
• Promotional activities in 2019 include new website launches for Kerstin Florian and Comfort Zone.

MOUNTCASTLE

Mountcastle increases sales of school wear and corporate wear uniforms.

• The partnership with The School Locker retail chain continues to grow.
• Mountcastle has expanded production capacity in its manufacturing facility in Vietnam to manage future volumes.
• Appointed a new General Manager to the Corporate Wear business to drive new sales initiatives and production.
• Focus on expanding the corporate wear product offering into new headwear and workwear categories
• Implementation of new Enterprise Resource Planning systems in manufacturing facilities.

1. GPS Strategy Plan 2022

2. Operational Review

CEO Presentation Henrik Thorup 4. Corporate Update

21 February 2018

1. FY19 Trading Outlook

HGL Limited (ASX: HNG) Page 19

ACQUISITION STRATEGY AND OPPORTUNITY PIPELINE (Feb19)

Acquisition opportunities with Equity and Skills partnerships are being pursued.

Note: Projects are defined as potential acquisition opportunities, when HGL has exclusivity.

REVENUE ASPIRATION 2022 (Including acquisitive revenue)

Organic

Acquisitions

Legend: Continuing Operations are JSB Lighting, SPOS Group, BLC Cosmetics and Pegasus Healthcare.

Assumptions cover one acquisition expected to occur in 2019 and another acquisition expected to occur by mid-2020

1. GPS Strategy Plan 2022

2. Operational Review

CEO Presentation Henrik Thorup 4. Corporate Update

21 February 2018

1. FY19 Trading Outlook

FY19 TRADING OUTLOOK

Market Conditions:

• Company portfolio now shifted to operate in higher growth industry segments
• Underlying market potential for HGL's business units remain significant.
• Economic conditions remains steady with recent indications of a moderate softening.

FY19 Performance:

• Positive full-year earnings contribution from Pegasus Healthcare
• Organic sales growth projected in SPOS Group, Pegasus Healthcare and Mountcastle
• JSB Lighting is rebuilding following severe organisational disruption from lower baseline performance level

Strategic Initiatives:

Acquisition opportunities in key industry segments are being pursued.

DISCLAIMER:

This presentation is provided for information purposes only.

CEO Presentation The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account investment objectives, financial situation or needs of any particular investor.

Henrik Thorup 21 February 2018 Statements contained in this presentation, particularly those regarding possible or assumed future performance and outcomes, projected growth of the company, industry growth or other trend projections are or may be forward looking statements.

Such statements relate to future events and expectations and therefore involve risks and uncertainties. Actual results may differ materially from those expressed or implied by these forward looking statements.