SGH LIMITED — AGM Information 2021

Nov 16, 2021

17 November 2021

Company Announcements Office Australian Securities Exchange Limited 20 BridgeStreet SYDNEY NSW 2000

2021 ANNUAL GENERAL MEETINGADDRESSES & TRADING UPDATE

Attached is a copy of the Chairman's Address and Managing Director & Chief Executive Officer's Address and Presentationto be made at the Annual General Meeting commencing at 11.00amtoday.

This release has been authorisedto be given to ASX by the Board of Seven Group Holdings.

Attachments:

• 1. Chairman's Address and Managing Director & Chief Executive Officer's Address
• 1. AGM Presentation Slides (including Trading Update)

For more details:

Jim Kelly +61 412 549 083 Lauren Thompson +61 438 954 729

Seven Group Holdings Limited is a leading Australian diversified operating and investment group w ith market leading businesses and investments in industrial services, media and energy. In industrial services, WesTrac Group is the sole authorised Caterpillar dealer in Western Australia, New South Wales and the Australian Capital Territory. WesTrac is one of Caterpillar's top dealers globally (by sales value). SGH ow ns Coates, Australia's largest nationw ide industrial and general equipment hire business. SGH also has a 69.9% shareholding in Boral, an international building products and construction materials group. In energy, SGH has a 30.0% shareholding in Beach Energy and has interests in oil and gas projects in Australia and the United States. In media, SGH has a 39.19% shareholding in Seven West Media, one of Australia's largest multiple platform media companies, including the Seven Netw ork, 7plus and The West Australian.

Seven Group Holdings Limited | A BN 46 142 003 469

Level 30, 175 Liverpool Street, Sydney NSW 2000 | Postal Address: PO Box 745, Darlinghurst N SW 1300 T elephone +6 1 2 8777 7574

Seven Group Holdings Annual General Meeting - 17 November 2021 Executive Chairman's and Managing Director & CEO's Addresses

Executive Chairman: Mr Kerry Stokes AC

Good morning. I am Kerry Stokes, Executive Chairman of Seven Group Holdings. Welcome to the Annual General Meeting of Seven Group Holdings.

Firstly, let me introduce the members of the Board. In the room we are joined by Managing Director and CEO of Seven Group Holdings, Ryan Stokes. Annabelle Chaplain. Terry Davis. Chris Mackay. David McEvoy. Warwick Smith. And Richard Uechtritz.

Kate Farrar is attending this meeting remotely.

SGH has undergone a process of Board renewal over the last couple of years, allowing us to create a Board of outstanding individuals who have worked constructively together to help guide the strategy and consequential growth of SGH.

As part of this evolution, this will be my last AGM as Chairman of SGH and following this meeting Terry Davis will take on the honour of leading this exceedingly capable Board and equally capable management team.

This will also afford the Board the opportunity to review its composition to ensure it remains appropriate for SGH and will give us the opportunity to introduce the next wave of talented directors.

It is appropriate that I acknowledge all Directors' contribution and personally thank each of them, on behalf of all shareholders, for their ongoing commitment.

Chairman's Address

The Seven Group Holdings results in the 2021 financial year demonstrate the value of our quality businesses and capable management team, supported by an exceptional workforce and excellent business partners.

Ryan will shortly talk in detail about the results but, as this is my last meeting as Chairman and Director, I wanted to reflect on the evolution of SGH and what has made it such a strong company today.

In 1988 I acquired Wigmores (now WesTrac), with its main assets being a partnership with Caterpillar of the US. Under the early leaderships of Frank Johnson and Jim Walker we have built what is now one of the leading Caterpillar dealerships in the world.

The then Chairman of Caterpillar Mr Don Fites considered the startup of WesTrac so important, he chartered two 747 planes to fly in the first supply of parts to ensure our customers were fully supported. During this time, Ryan and my other son Bryant spent their school holidays stacking parts at WesTrac to help us get underway. Later Bryant worked at WesTrac and Ryan attended Caterpillar's Executive University.

Over time, we widened our geographic spread through second and third dealerships in NSW and ACT and were granted one of the 5 dealerships in China - Beijing and five provinces in north and east of China. We spent 20 years building the China Caterpillar distribution business, employing thousands of Chinese, with training programs to qualify them in a range of trades and as engineers to support the sales and service through our territories.

Building on this successful relationship with Caterpillar, we acquired a majority stake in National Hire Group in 2008. In partnership with private equity group Carlyle, we then took over Coates business and merged it with National Hire to consolidate the two largest hire companies in Australia.

In 1995 we took over the Seven Network and later combined it with the West Australian Newspaper to what would become a very successful media group - Seven West Media.

Through the period of Seven ownership, I enjoyed working with the Late Maureen Plavsic, and I am proud to have appointed her as the first female CEO in Australian television. Both Maureen and, indeed, the Late David Leckie made an incredible contribution to Seven.

It was David Leckie who built the network into the leading television business in the country. I also acknowledge the contribution of Bruce McWilliam, who has served on the Seven Network and SGH Board, and was critical in supporting David Leckie.

Like all traditional media companies, Seven experienced challenging times but has now emerged as a strong digital platform, combined with traditional television and newspapers. Under the leadership of James Warburton, Seven has seen a resurgence of performance across both television and newspapers with increased audience share.

Seven West Media this year demonstrated its strong digital future with the coverage of the Tokyo Olympics. Simulcast across 40 channels, Seven's coverage of the Olympics has been applauded worldwide, with 7 Plus's registered users jumping to more than 9 million.

Seven West Media has recently announced the acquisition of Prime Television. The transaction will open the way for Seven to sell complete, national packages to advertisers wishing to reach city and regional areas.

In 2008, the formation of Seven West Media created an opportunity to form SGH, combining WesTrac and Coates under the leadership of Peter Gammell, creating the foundations of SGH. It would be remiss of me not to highlight the contributions of Rebecca Maslen-Stannage and the Late Fiona Gardiner-Hill, who were critical in working with Peter to bring the vision of SGH to fruition.

There were a range of complex capital markets transactions to bring about the formation of SGH under the direction of Chris Mackay, Terry Davis and Richard Uechtritz, allowing us to access new capital to support the growth of the Group.

On listing in 2010, SGH was a \$2 billion market cap company, 50 per cent of which was made up by our various media interests, including a majority share of Seven West Media.

Under the leadership of Don Voelte, we found the next opportunity for growth in the LNG market through the acquisition of Nexus. As we now take the Crux major gas field through to FID, it is an exciting time where, with our partners Shell and Tokyo Gas, we look to have LNG cargoes when the market is expected to be materially short.

Meanwhile the expected tightening of the east coast domestic gas market led us to acquire strategic shareholdings in both Beach Energy and Drillsearch.

Dislocations in price have given us the opportunity to acquire more shares in Beach, with SGH now owning a 30 per cent stake. This shareholding provides us with an exposure to both east coast gas market, as well as export LNG from the Waitsia field in the Perth basin where the infrastructure for distribution to process already exists.

Ryan took over the leadership of SGH in 2015 and he has built a very strong management team who support and deliver his vision. I acknowledge the very strong support provided by CFO, Richard Richards. Together Ryan and Richard make a very formidable team.

He led the very successful divestment of WesTrac China, which allowed us to acquire the remaining 50 per cent interest in Coates from Carlyle.

The WesTrac team, now led by Jarvas Croome and the recently retired Greg Graham, has continued to build two of the highest performing Caterpillar dealerships globally, with 85 per cent of the world's fully autonomous trucks working in our territories. The only autonomous truck training in the southern hemisphere is operating in Collie, South of Perth. The demand for new technology has seen the training centre booked out for the next 6 months.

There is challenge and excitement for the future as de-carbonization of mining drives the next wave of opportunity for WesTrac.

The most recent phase of growth for SGH has been delivered by Ryan and his management team in taking control of Boral. The team has raised capital and \$6.2 billion of debt to support the takeover of Boral and they have a clear plan to realise value from its underperforming businesses and property.

\All of the transactions I have listed - from Wigmores to Boral - have allowed your company to both grow and diversify, with exposures to media, mining production, construction, infrastructure investment and energy transition.

Through our strategic capital management, focus on operating discipline and a capacity to accept and navigate risk, the Group is well placed for its next phase of growth to benefit all stakeholders.

This will be achieved through the Group's strong leadership team, engaged employees, operational excellence, supportive business partners and satisfied customers.

The Group's businesses hold leading market positions, supported by a strong balance sheet and financial discipline, enabling us to compete and take advantage of growth opportunities.

On behalf of the Board, I thank our staff and you, our shareholders, for your continuing support and commitment to your company. Together with now over 14,000 employees, we continue to adapt to the ever-changing market and ensure our businesses remain strong and competitive.

I wish to thank all the former directors of SGH for their support in the company's evolution over the last 13 years. And I acknowledge and thank our existing Directors: Annabelle Chaplain; Terry Davis; Kate Farrar; Chris Mackay; David McEvoy; the Hon Warwick Smith and Richard Uechtritz.

I look back on what has been accomplished with great pride and look forward to assisting the Group in an advisory capacity.

I would also like to take this opportunity to thank my wife, Christine. She has been by my side through every step of the evolution of the Group, and has supported me and indulged my passion for this business.

I also want to acknowledge my son Bryant, who through his career has worked within Seven, WesTrac, and Coates, now working closely with me at ACE.

I look forward to watching Terry Davis and Ryan continue to achieve the next exciting stage of growth for the Group.

And on that note, I would like to invite Ryan to address you.

---

Managing Director & CEO Address: Mr Ryan Stokes AO

Thank you, Chairman, and on behalf of the company and all its employees, I thank you for the leadership and guidance that you have provided throughout the successful SGH journey. Although I know you are not going far and will remain as personally invested in SGH's ongoing success going forward.

Let me now extend my welcome to you, our shareholders, to the Seven Group Holdings 2021 Annual General Meeting. It is pleasing to be back in our traditional, in-person, AGM format, after what has been another year of challenges but also one of opportunities.

Sustainability – People & Safety

Firstly, we start with safety. With more than 13,000 employees across the consolidated Group safety and wellbeing of our people is our top priority.

While we are pleased with the safety improvements that we achieved during FY21, reducing Group LTIFR and TRIFR, there is more we need to do. We would like to say that the 5 year track record of continually improving is continuing, however the safety results in Q1 highlights this journey requires a constant focus.

Our leaders throughout all our businesses are continually focused on initiatives, training and behaviours to improve the level of safety performance and keep our people safe.

We established the Vaccination Recognition Program, acknowledging the importance of vaccinations for employees, customers and the broader community.

We continue to invest in our people, through apprenticeships, trade upgrades, and ongoing training initiatives which is critical to ensure ongoing access to skilled labour.

Diversity is a key objective and WesTrac and Coates are targeting increased female participation in trades and management, targeting 25 per cent female representation in our workforce by 2025.

Emissions and Community

Earlier this year, we outlined our commitment to achieve net-zero emissions by 2040 in WesTrac and Coates. I am pleased to announce the interim targets for the businesses of a 30 per cent reduction from 2020 levels by 2026 and a 50 per cent reduction by 2030.

In September we released our inaugural Sustainability Report, outlining SGH's approach and actions relating to environmental, social and governance issues.

SGH's businesses have a strong track record of supporting their communities over their long operating histories.

We are engaging constructively within our communities, with SGH contributing \$4.9 million last year through our Bushfire Assistance Program, and we are continuing to support indigenous communities through programs and partnerships to provide opportunities for employment and business development.

Sustainability – Our Commitments

I encourage all shareholders to read the Sustainability Report available on our website. In the report, we outline SGH's approach to the 10 most critical issues identified across the Group.

Whilst specific actions and targets on each issue will differ for each of our businesses, a common aspiration is shared for each across the Group.

Year in Review

FY21 was another strong year for SGH, driven by our operating businesses WesTrac and Coates, and the contribution of our equity-accounted investments, particularly the inclusion of Boral and the successful transformation of Seven West Media.

The Boral investment has since increased to 70 per cent and now forms part of the consolidated group.

Collectively, our Industrial Services businesses are well positioned to benefit from the robust outlook for mining production, construction and infrastructure activity.

Our investments in Energy and Media are also well positioned through the recovery in both sectors and the opportunities emerging.

Group underlying EBIT increased 7 per cent to \$792 million, driven by 13 per cent growth in EBIT from our industrials businesses. Group statutory EBIT rose 143 per cent, reflecting a \$93 million impairment reversal in respect of our investment in SWM.

Earnings growth translated into strong operating cash flow generation, up 16 per cent to \$622 million and EBITDA cash conversion strengthened to 84 per cent.

The level of earnings and cash flow performance across the Group is supporting investment into future growth while also providing the confidence to increase the final dividend by 10 per cent to 23 cents, taking the total dividend to 46 cents.

This increase in dividend, when considered with our dividend approach of stable and growing dividends over time, should provide some perspective as to the confidence in the outlook for SGH.

Group Overview – Strategy

Within our strategic framework, our purpose is to recognise and serve exceptional businesses. This purpose is supported with our values of Respect, Owner's Mindset, Courage, and Agility. The disciplined approach of SGH to identifying opportunities and supporting our businesses in delivering the best performance is our purpose in action.

The past 12 months presented several opportunities that we looked to capture, in a disciplined way, to drive value for our shareholders.

Starting with our capital structure, we strengthened our balance sheet through new borrowing facilities, along with the upsize and extension of our corporate debt facility in December last year.

We then added further capacity through the capital raising in April. We were encouraged by the strong shareholder support via the Share Purchase Plan. These steps not only allowed us to increase our investment in Beach to 30 per cent but gave us the flexibility to pursue the Boral offer, which has now delivered an exciting opportunity to create significant value.

We understand how to drive industrial businesses. We take a long-term view, founded on operational excellence, disciplined execution; and exceptional people. In that regard, our focus now is to support Boral management to deliver the transformation program and improve business performance and returns.

Debt reduction is a key objective, and our target is to repay the \$2.97 billion bridge facility before 30 June 2022. We expect a significant distribution from our share of up to \$3 billion of capital return approved by Boral shareholders, subject to ATO approval.

Our investments will continue to evolve, and so far in FY22, we have divested \$120 million of our listed portfolio. We have appointed advisors to explore a sale of Crux as we approach FID. We are also actively looking at adjacent opportunities for WesTrac and Coates.

Capital Management

The funding initiatives across the Group over the past 12 to 18 months have been made possible through the strong confidence we enjoy from our lending group and with debt and equity capital markets more broadly. This is best evidenced by the increased commitments from new and existing lenders in FY21 and the \$6.2 billion acquisition facility we put in place to support the Boral offer.

We have a diverse borrowing structure, continually being optimised, including the use of low-cost equity swaps. We are comfortable with the leverage currently within the consolidated group and our ability to manage this through deleveraging options and the strong operating cash flow of our operating businesses.

We have taken Coates to the USPP market, noting that we repaid \$1.1 billion in Coates debt from SGH facilities in FY18 after we moved to 100 per cent ownership. We will close the transaction shortly with funding of \$900 million to be provided in January.

In addition, we have already repaid \$556 million of expiring USPP and OEM debt thus far in FY22. Given the long-dated nature of this debt, when compared to current borrowing rates, the interest savings are significant and offset approximately two-thirds of the interest cost on the bridge facility. Through this capital structure we are also increasingly fixing our interest rates.

On a pro-forma basis, the consolidated \$3.1 billion of net debt for the combined SGH and Boral group as at 30 June 2021 is expected to settle between \$4.6 and \$4.7 billion, assuming financial close of all announced asset sales and completion of proposed capital distributions.

When engaging with our investors we encourage them to look at Group leverage a little differently. With equity interests (excluding Boral) of ~\$1.3b the Group net leverage against our operating businesses remains very reasonable and hence our ability to use leverage to acquire the position in Boral.

Group Overview – Businesses and Markets

The SGH portfolio includes exceptional businesses across industrials, energy, and media.

WesTrac is one of the world's leading Caterpillar dealers supporting customers across mining and construction.

Coates is the largest equipment rental services company in Australia and an important provider of end to end solutions in temporary works engineering, and industrial shuts.

Boral has a national network of construction materials assets with significant potential for value creation.

Our Energy investments comprise 30 per cent of Beach Energy and 100 per cent of SGH Energy. Together, they are positioned to create value through supplying gas to domestic markets and exporting LNG.

Seven West Media is one of Australia's leading diversified media platforms that has successfully transformed with earnings growth and an improved balance sheet.

Rather than present our businesses we thought it would be more interesting to talk to the investment thematics and drivers for our business. As a conglomerate we are constantly evaluating the portfolio and how we want to position SGH for relevant themes and underlying drivers. We are strongly oriented across four key themes of mining production, construction & infrastructure investment, energy demand, and consumer with media.

Key Themes – Mining Production

When we talk mining production, we are talking about production volumes. This is best characterised by export volumes. Over the past decade the Australian mining sector has continued to grow overall export volumes. Global economic activity levels have continued to create demand through some significant economic disruptions.

Iron ore demand is expected to continue at a high level for the foreseeable future with a geographic shift in mix from highly populated South-East Asian countries with growing steel intensity.

With some of the lowest C1 production costs in the world, Australian miners are well placed to capture this demand. Low-cost production also provides the financial capacity to withstand price volatility.

Coal exports are continuing near record levels notwithstanding recent disruptions relating to China. Volumes have been absorbed by other parts of Asia and the current level of demand is reflected by Newcastle coal currently selling at 15-year highs.

In addition to iron ore and coal, there are emerging opportunities being created through gold, copper, nickel, lithium and "future facing" rare earth metals.

Key Themes – Mining Production

WesTrac generates close to 70 per cent of its revenue through mining customers, with a large proportion of that comprising iron ore.

WesTrac's key driver is the level of mining production – through the volume of earth moved, the day and night operation of equipment, the level of wear and tear, and the resulting level of maintenance required through parts and service, and ultimately, the need to replace fleet.

Coates is also a beneficiary through its mining and resource customers who need the plant and equipment to complete mine expansions and undertake facility shutdowns.

We are seeing a high level of project deliveries for major customers supplemented by additional committed projects in the pipeline. Customers are continually pushing production by extending the life of their fleet, creating a high level of demand for support activity.

Customers are also focused on optimising their fleet over the long term. We have seen the first wave of technological step-change through autonomous haulage, which is ongoing and expanding from trucks to other ancillary equipment. The next step-change is emissions, with BHP and Rio recently partnering with Caterpillar on the development of zero-emissions mining equipment.

WesTrac is continuing to support customers in their drive to maximise production. We are investing in facility expansion to meet the level of demand, we are investing in our people to meet the labour shortage, and we are building technology leadership in order to continue delivering value to our customers.

Key Themes – Infrastructure

The infrastructure pipeline remains strong and continues to build through government investment to provide stimulus in response to current economic conditions and drive national productivity over the long term.

\$1.1 trillion of spending on engineering and infrastructure is expected over the next five years, of which public infrastructure is \$218 billion, across hundreds of road, rail, utilities and social infrastructure projects.

The level of infrastructure investment is expected to double over the next three years, and combined with the expected growth in residential construction, and eventually a recovery in non-residential construction, this will drive significantly greater demand for equipment and materials.

Over the next three years, demand for equipment is expected to grow by 140 per cent and demand for materials is expected to grow by 120 per cent. Within materials, the strongest growth is projected in quarry products, particularly rock and bluestone at 240 per cent growth.

Key Themes – Infrastructure

Infrastructure and related engineering represent a sizable proportion of the end markets of Boral and Coates. WesTrac also supplies and services construction equipment.

With the strength of the infrastructure pipeline, the opportunities for our businesses are vast. Together, Boral, Coates and WesTrac provide exposure across the lifecycle of major projects with minimal contract and labour risk.

To capture these opportunities, Coates is growing its penetration with Tier 1 customers whilst also progressing new channels with Mid-Tier and Trades customers. Specialist offerings aimed at enhancing customer value through Industrial Services and Engineering Solutions are also expanding.

From a Boral perspective, investment is underway to optimise its network to meet the anticipated level of activity. Importantly for Boral the opportunity for infrastructure is coupled with strong demand from construction customers.

Key Markets – Energy

Energy markets are currently reflecting a strong level of demand, translating to Brent above US\$80 per barrel and spot LNG remaining above US\$30 per Mmbtu. This reflects the recovery in global economic activity as we move through the COVID pandemic.

The LNG outlook is positive over the medium to long-term, with more supply needed to meet the projected level of demand. Domestically, gas supply remains tight, with the latest AEMO forecast identifying a gas supply constraint for East and South-East markets by 2023.

These trends are set to benefit the Group with Beach progressing its Waitsia development with Mitsui and having now signed its first LNG contract for 2023 offtake.

SGHE's investment in Crux has completed FEED and is evaluating proposals for the Detailed Engineering and Execution phases, followed by FID. We have appointed advisors to examine a potential sale of the asset.

Projects such as Beach's Otway development and SGHE's Longtom project, will be critical to expand the level of supply on the East Coast. Beach is also well positioned to supply into the West Coast domestic market.

Key Markets – Media

In Media, advertising has rebounded strongly through 2021. FTA TV advertising spend grew by 32 per cent over the 12 months to September.

BVOD continues to grow with viewing time increasing by 40 per cent in September and October. Ad spend was up 66 per cent year-on-year during the six months to 30 June 2021.

Seven West continues to evolve its digital platform and offering to take advantage of available opportunities. This year Seven West is forecasting EBITDA of \$120 million from digital, up 100 per cent.

Consolidation within the sector is an opportunity and Seven West will deliver significant value with the acquisition of Prime.

Businesses – Trading Update

As we look at performance for the year to date, WesTrac is continuing to benefit from strong mining and construction demand. We have seen some supply chain pressures, including port disputes, shipping delays, and CAT machine and parts supply constraints. We are working closely with CAT as they look to manage the impacts.

Coates delivered Q1 results in line with budget, notwithstanding the impact of lockdowns. We are seeing strength in Queensland and WA whilst NSW and Victoria are showing strong signs of recovery. Pleasingly, the level of activity and demand, driven by the acceleration of projects, has resulted in an increase in time utilisation approaching 60 per cent.

Boral's Q1 results have been affected by lockdowns with EBIT impacted by \$33 million, partially offset by the transformation benefits delivered in the period. Revenue was down slightly and margins were lower, however, activity levels have rebounded post lockdown.

Beach has seen a re-rating in its share price reflecting confidence in its development plan and production growth outlook driven by Otway and Perth Basin activities including its first LNG contract. Q1 production was down 4 per cent on the prior quarter. . Strengthening oil and LNG prices presents upside opportunities.

Contrary to what you may have read, SGH has no plans to divest Beach, while we have been approached by others, we believe there is significant value upside as energy prices continue to rerate upwards.

SWM has delivered a strong ratings performance and is well-positioned to capture metro TV market share of 40 per cent in 1H FY22. TV advertising spend is continuing to recover. SWM is well positioned for future growth, with ongoing delivery of transformation program benefits, great content to distribute across multiple platforms, and improved balance sheet having refinanced its debt facilities.

Outlook

WesTrac is expected to deliver low single digit EBIT growth.

Coates is expected to deliver high single digit EBIT growth.

Boral expects some uncertainty and challenges in FY22, however there has been a good rebound in activity coming out of lockdown. At this stage, Boral does not expect the cumulative COVID impact for FY22 to exceed \$50m, and is focused on delivering a further \$60 million to \$75 million of EBIT benefit from its transformation program.

Beach has provided production guidance of 21 to 23 MMboe and capex guidance of between \$900 million and \$1.1 billion.

Seven West Media has upgraded its guidance and is now expecting FY22 EBITDA to be 7 to 10 per cent above consensus of approximately \$260 million.

Further guidance update will be provided at the 1H results announcement in February where COVID and supply chain disruptions are better understood.

Disclaimer

Finally, this is our standard disclaimer.

With that, I will now hand to Warwick Smith AO to provide a tribute to the Chairman on behalf of the Board.

---

Annual General Meeting

SGH | Industrial Services, Media, Energy and Investments

17 November 2021

SUSTAINABILITY PEOPLE & SAFETY

Safety of our people is always our top priority

• YoY improvements achieved in FY21
• Positive safety behaviours
• Specialised training and initiatives

Vaccination Recognition Program

Investing in skills in a tightening labour market

• \$10m invested in training and upskilling in FY21
• Over 2,000 training courses run by WesTrac

Focus on increasing female participation and leadership

• Aspirational target of 25% female participation by 2025

	LTIFR		TRIFR
	FY20	FY21	FY20	FY21
WesTrac WA	1.1	0.2	6.9	5.1
WesTrac NSW	0.0	0.3	6.2	4.2
Coates	0.7	1.7	6.9	8.1
Group Total	0.8	0.7	6.9	5.9
Boral	2.6	3.2	10.0	11.9

– Lost time injury frequency rate (LTIFR) = number of work related injuries that resulted in time lost from work per million hours worked; Total recordable injury frequency rate (TRIFR) = number of work related recordable injuries per million hours worked; statistics are calculated on a rolling 12 months basis

– Results for previous periods may be adjusted following post incident investigation and review

SUSTAINABILITY EMISSIONS AND COMMUNITY

Net zero GHG emissions by 2040 for WesTrac and Coates

• Direct action to reduce Scope 1 and 2 emissions
• Interim targets of 30% reduction by 2026 and 50% reduction by 2030
• Working with suppliers and customers on Scope 3 emissions
• Initiatives: LED lighting, solar, bio-diesel fuel, biodegradable hydraulic oil

Constructive engagement in our communities

• \$4.9m contributed over 18 months through Bushfire Assistance Program
• Assistance for volunteer firefighters
• Helping to rebuild communities

Supporting indigenous communities

• Training and career opportunities through indigenous programs
• Supporting indigenous businesses through partnerships
• Coates "Reflect" Reconciliation Action Plan underway
• WesTrac to follow in FY22

SUSTAINABILITY OUR COMMITMENTS

1. Safety	To be recognised by our teams, customers and regulators for safety excellence
2. Energy & Emissions	To play a leading role in each of our sectors in meeting the Paris Agreement's goal to limit global temperature rises to well below 2ºC
3. Waste & Water	To play a positive role in helping Australia reduce its reliance on landfill and attain more sustainable water outcomes
4. Materials	To be a leading Australian corporate contributor to the circular economy
5. Technology & Innovation	To bring the benefits of technology and innovation, including digital, to our teams and customers
6. Diversity	To have 25 per cent female participation in our workforce by 2025
7. Employment	To be an employer of choice across all categories of employment, known for fairness, empathy, development and contribution
8. Training	To engage, educate, develop and inspire our people
9. Indigenous Inclusion	To make a meaningful contribution to the full realisation of the rights of Aboriginal and Torres Strait Islander peoples in communities we operate in
10. Local Communities	To be an engaged and constructive participant in the communities in which we operate

fully franked

YEAR IN REVIEW

FY21 underlying EBIT \$792.1m up 7% FY21 statutory EBIT \$925.6m up 143% Final dividend up 10% to 23c, total dividend 46c

Strong performance of WesTrac and Coates

SGH has executed on our growth agenda

Boral presents compelling opportunity, we now own 70%, and are focused on supporting transformation

Robust outlook with mining production, construction and infrastructure activity expected to remain strong

Energy positioned to benefit from improving LNG and domestic gas markets

Successful transformation of Seven West Media, positive outlook with recovering advertising markets

GROUP OVERVIEW STRATEGY

Boral is a significant value creation opportunity

• Increases Group exposure to infrastructure and construction
• 70% position allows SGH to drive and support the business through our disciplined execution and capital management
• Supporting Boral management to deliver the transformation program
• Driving business performance and returns to acceptable levels

Debt reduction over next six months

• \$2.97m bridge facility expected to be fully repaid by 30 June 2022
• Up to \$2.1bn in proceeds from capital return approved by Boral shareholders, subject to ATO ruling
• \$900m US private placement by Coates finalised
• \$556m of historical debt repaid in Jul/Aug 2021 (OEM, USPP)
• Reduction in average borrowing cost notwithstanding bridge debt

Ongoing review of investments

• \$120m of listed investments sold in FY22 to date
• Continuing to review investments across the portfolio
• Crux: advisors appointed to explore FID sale
• Adjacent opportunities in WesTrac and Coates

Seven Group Holdings 6

GROUP OVERVIEW CAPITAL MANAGEMENT

Unlocking opportunities to create value

• Funding initiatives over past 12-18 months created the ability to invest in Boral
• \$533m institutional placement and retail SPP
• Extension of \$400m by three years to Sep 2024 and increased limit to \$558m

Strong credit support for the Group

• \$6.2bn Boral acquisition facility supported by key banks
• Low cost swaps to increase investment in Boral and Beach

Ongoing capital management discipline

• \$431m OEM facility repaid in July
• A\$125m USPP repaid / refinanced in August
• \$2.97bn bridge repayment expected by 30 Jun 22
• Moving debt to longer duration and fixed interest rate
• Maintaining a strong balance sheet to support current operating businesses, investments and opportunities Bridge

GROUP OVERVIEW BUSINESSES AND MARKETS

Industrials	Industrials	Industrials	Energy	Media
100%	100%	70%	Beach 30% SGHE 100%	39%
WesTrac is one of the largest CAT dealers globally (by sales) operating the WA and NSW/ACT territories	Coates is Australia's largest industrial and general equipment hire company providing end-to-end solutions	Boral is Australia's largest construction materials and building products supplier with operations in all states & territories	Beach Energy is a leading mid-cap E&P business and a key supplier to a growing East Coast gas market	Seven West Media is a leading diversified media company in Australia
28 branches FY21 \$3.8bn revenue	157 branches FY21 \$0.9bn revenue	367 sites FY21 \$2.9bn revenue	Onshore and offshore assets in multiple basins	Monthly Australia-wide audience reach of:
Focus on customers in direct mining, mining contractors, construction and infrastructure	Focus on large tier-one customers, mid-tier and trade, engineering and industrial solutions	(continuing operations) Focus on infrastructure, non-residential and residential construction	SGH Energy holds operated and non-operated oil and gas interests including 15% of the Crux LNG Project	16.4m in Seven Network - 6.1m in 7Digital - 3.9m in WAN + digital - 9.2m 7Plus active users
Employees	Employees	Employees	Employees	Employees
~3,800	~2,000	~5,000	~700	~2,000

KEY THEMES MINING PRODUCTION

Ongoing growth in low-cost iron ore production

• Low C1 production costs of our iron ore mining customers
• Robust long-term demand from Asia
• Increasing steel intensity in highly populated countries (India, SE Asia)

Ongoing demand for coal

• Global energy mix is undergoing a long-term shift, however coal will be a significant part of the energy system
• Reduced coal demand from China absorbed by other parts of Asia with price now at a 15-year high
• Major customers are investing in fleet renewal / replacement

Growing exposure to minerals outside of iron ore and coal

• Gold, nickel, lithium and rare earth metals

Source; historical data ex ABS, Bloomberg, forecasts ex Department of Industry, Science, Energy and Resources June 2021 quarterly

KEY THEMES MINING PRODUCTION

High level of mining machine deliveries

• Continuing delivery by WesTrac into major projects (Rio, FMG, Newmont, BHP, MRL)
• Committed pipeline includes Newmont, Northern Star, Rio, FMG
• Demand for support activity remains as customers push production by extending useful life of their ageing fleets

Fleet renewal and enhancement over time

• Autonomous haulage solutions (AHS) has provided a step-change with WesTrac and Caterpillar at the global forefront
• BHP and Rio agreement with Caterpillar on development of zero-emissions mining equipment which, coupled with autonomy, will provide the next stepchange in mining operations

Group initiatives to benefit from mining production growth

• Continued investment by WesTrac in facilities to support growth in capacity
• Training and development of our people to meet the skilled labour shortage
• Continuing WesTrac's technology leadership
• Opportunities for Coates to win associated work e.g. major shutdown projects
• Working with customers to reduce emissions and carbon footprint

Seven Group Holdings 10

KEY THEMES INFRASTRUCTURE

Government stimulus measures driving infrastructure Major infrastructure projects (Infrastructure Australia)

• Long-term government response to drive economic activity and improve national productivity through infrastructure
• \$1.1 trillion of engineering and construction spend expected over next five years of which public infrastructure is \$218bn
• Annual peak spending on public infrastructure in FY23 over \$50bn
• On average \$1 spent on public infrastructure has an economic multiplier of \$4 and we expect new projects to be added to the pipeline after 2025
• Concurrent growth forecast in residential and non-residential building and private engineering construction

Plant and materials shortages will support Boral and Coates

• Infrastructure Australia expects shortages in plant, equipment and materials as demand grows over the next three years
• 120% growth expected in demand for materials
• Strongest growth expected in quarry products, particularly rock / bluestone at +240%
• East Coast expected to account for 87% of major infrastructure project activity over the next five years

MPIP is 20% of All sectors

KEY THEMES INFRASTRUCTURE

Plant Demand

• Demand projected to grow by \$12 20bn over next five years
• 140% expected growth in plant demand over next three years
• Includes site equipment (cranes, scaffolding, lifts), site facilities and accommodation, civil plant (excavators, graders, bulldozers, compactors) and speciality plant

Building construction activity poised to accelerate

• WA 1Q FY22 building approvals 29%¹ higher than 1Q FY21
• NSW 1Q FY22 building approvals 39%¹ higher than 1Q FY21
• East Coast outlook residential building growth over next five years led by WA and QLD, non-residential building growth from FY23 ²

Group initiatives to benefit from infrastructure / construction

• Boral, Coates and WesTrac together provide exposure across the lifecyle of major projects with minimal contract and labour risk
• Growing market penetration in Coates with Tier 1 infrastructure customers
• Expanding Coates offering into Industrial and Engineering solutions
• Boral pivot focus back to Australia and optimising network to meet activity levels

Seven Group Holdings 13

KEY THEMES ENERGY

Oil and LNG pricing

• Strength in global demand with Brent above US\$80/bbl as economic activity ramps up
• LNG supply constraints and growing demand support strong current spot pricing peaks

Domestic gas markets

• Tight gas supply and increasing marginal costs of production leading to robust pricing expected in CY22 and CY23

Group initiatives to benefit from energy

• Beach signed its first LNG contract (HoA) for Waitsia commencing 2023
• Crux (SGHE 15%) completed FEED and evaluating proposals for the Detailed Engineering and Execution phases, followed by FID
• Crux dual track process commenced; advisors appointed for sale process
• Beach is well placed to deliver gas into east / west coast domestic markets
• Longtom (SGHE 100%) pathway to market being progressed with 80 PJ available to supply into east coast gas market

KEY THEMES MEDIA

Media sector rebound through strong advertising recovery

• Positive market momentum is continuing through Q2
• FTA ad market growth of 32% over 12 months to Sep 2021¹

BVOD is the fastest-growing media channel

• BVOD viewing growth of 40% in Sept and Oct 2021
• BVOD ad spend up 66% YoY during the 6 months to 30 June 2021²
• Over 11 million hours of BVOD content being consumed every week

Industry consolidation opportunities

• M&A within the sector is expected through consolidation
• Synergies in revenue, cost, audience

Group initiatives to benefit from media

• SWM ratings leadership underpinned by content-led growth strategy
• 7plus success with 20.2 million Australians viewing 4.74 billion minutes during the Tokyo Olympics, metro audience up 71% compared to Rio
• Digital strategy delivering revenue growth
• SWM refinance completed and now in a position to lead
• Prime acquisition announced creating Australia's leading commercial premium broadcast, video and news network with nationwide reach

Metro FTA TV – Total People	7 Network	Rank
Including Tokyo Olympics 1/1/2021 to 24/10/2021	40.0%	#1
Excluding Tokyo Olympics 1/1/2021 to 24/10/2021	38.1%	#1

Source: OzTam

BUSINESSES TRADING UPDATE

WesTrac benefiting from continuing strong demand

• Strong mining demand in WA and NSW
• Supply chain pressure on timing of deliveries
• Construction demand remains strong

Coates well positioned for new opportunities / growth

• Q1 results in line with budget particularly with QLD and WA strength while NSW and VIC showing strong signs of recovery
• Engineering & Construction demand remains strong
• Focus on margins with proactive response to current environment
• Time utilisation of 59% in 1Q

Boral impacted by lockdowns in 1Q

• \$33m EBIT impact in 1Q FY22 due to COVID disruptions
• Revenue from continuing operations down ~1%, but EBIT down more reflecting lower overall margins due to lower volumes in NSW and lower Asphalt margins due to completion of higher margin project work in prior year
• Benefits of transformation program partially offset lower EBIT due to lockdowns

Beach re-rating and confidence in development plan

• Otway and Perth Basin to drive production growth
• HoA signed with BP for 3.74m tonnes of LNG from Waitsia Stage 2 from H2 2023
• Q1 FY22 production of 5.7 Mmboe down 4% on prior quarter
• CEO change focus remains on project delivery and moving towards production target of 28 Mmboe in FY24

SWM benefitting from ad spend and BVOD growth

• Well-positioned to achieve targeted 40% share in 1H FY22
• 7plus revenue up 145% in FY22 YTD; post Olympics, growth continued up ~50% annual growth in Sep and Oct
• Net debt reduced to \$240m with leverage ratio now 0.95x; refinanced debt facility on more favourable terms, upsized to \$600m and extended to Oct 2024
• Delivery of recurring savings target of \$15-20m is progressing to expectations

GROUP FY22 OUTLOOK

Business Outlook
Industrials expecting improvement in majority of key markets	Mining production, infrastructure and construction activity are robust and expected to underpin further growth • for SGH's industrial businesses in FY22. Earnings will benefit from the consolidation of Boral.
	In FY22, WesTrac is expected to deliver low single digit EBIT growth on FY21 on strong customer service • demand supporting aged fleets and continuing fleet deliveries
	Coates is expected to deliver high single digit EBIT growth on FY21 through its continued focus on costs and • supporting delivery of key infrastructure projects and growing Industrial Services opportunities
	Boral has seen a good rebound in activity coming out of lockdown but some trailing COVID impacts are • expected in the remainder of FY22, including some further volume impacts in October, particularly in Victoria. At this stage, not expecting cumulative impact for FY22 to exceed \$50m.
East Coast gas and global LNG demand strong	Beach production guidance of 21.0 – 23.0 MMboe and capex of \$900m - \$1,100m. Increased gas volumes • from Perth Basin and Victorian Otway, with uplift in Otway production from mid-FY22, lower oil production.
SWM accelerating the transformation strategy	SWM targeting improved revenue share in FY22 on the back of audience performance and new schedule. • Digital earnings expected to double to \$120m in FY22. SWM expects to exceed analyst consensus EBITDA of c\$260m by between 7% and 10%.
Key Opportunities
SGH is well placed to capture available opportunities	Our three key focus areas of mining production, infrastructure investment and gas as key transition energy • continue to provide attractive thematics over the medium to long term, boosted by budget stimulus measures
	Boral portfolio rationalisation to be completed, with focus on transformation delivery •
	Our operating businesses and investments well-placed to capture available opportunities in their markets •
	Further guidance update will be provided at the 1H results announcement in February •

DISCLAIMER

Basis of preparation of slides

• Included in this presentation is data prepared by the management of Seven Group Holdings Limited ("SGH") and other associated entities and investments. This data is included for information purposes only and has not been subject to the same level of review by the company as the financial statements, so is merely provided for indicative purposes. The company and its employees do not warrant the data and disclaim any liability flowing from the use of this data by any party.
• SGH does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forwardlooking statements.
• Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this material are references to estimates, targets and forecasts by SGH. Management estimates, targets and forecasts are based on views held only at the date of this material, and actual events and results may be materially different from them. SGH does not undertake to revise the material to reflect any future events or circumstances.
• Period-on-period changes that are greater than 100%, less than (100)% or change between positive and negative are omitted for presentation purposes.

Non-IFRS Financial Information

• SGH results comply with International Financial Reporting Standards ("IFRS"). The underlying segment performance is presented in Note 2 to the financial statements for the period and excludes Significant Items comprising impairment of equity accounted investees, investments and non-current assets, fair value movement of derivatives, net gains on sale of investments and equity accounted investees, restructuring and redundancy costs, share of results from equity accounted investees attributable to Significant Items, loss on sale of investments and derivative financial instruments, acquisition transaction costs, significant items in other income, remeasurement of tax exposures and unusual tax expense impacts. Significant Items are detailed in Note 3 to the financial statements.
• This presentation includes certain non-IFRS measures including Underlying Net Profit After Tax (excluding Significant Items), total revenue and other income, Segment EBIT margin and Segment EBITDA margin. These measures are used internally by management to assess the performance of the business, make decisions on the allocation of resources and assess operational management. Non-IFRS measures have not been subject to audit or review.