SIMONDS GROUP LIMITED — AGM Information 2025

Nov 11, 2025

SIMONDS GROUP LIMITED

ASX ANNOUNCEMENT

12 November 2025

Annual General Meeting – Chair’s Address and Presentation

Attached are the Executive Chair & CEO's Address and Presentation to be delivered at today's Annual General Meeting of Simonds Group Limited (ASX:SIO).

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For more information, please contact:

Rhett Simonds

Executive Chair & CEO Ph: +61 3 9926 3196

Authorised for release by the Company Secretary.

Simonds Group Limited 2025 Annual General Meeting Executive Chair & CEO Address

After a momentous year for our company, it’s pleasing to reflect on the achievements and progress we’ve made over the past twelve months. This year marked a proud milestone for Simonds Homes as we celebrated our 75th anniversary as a business. It’s an extraordinary achievement built on decades of resilience, innovation, and unwavering commitment to quality. A legacy that began with my grandfather, Gary Simonds, back in 1949.

While we took a moment to honour and celebrate this legacy at a gala event, our focus has remained firmly on the future — on the next chapter of growth and transformation.

Reflections and financial performance

At last year’s AGM, I spoke about how the strategic foundations we laid in FY23 were taking shape and beginning to drive us forward. That momentum continued in FY24, a year defined by growth, focus, and renewed confidence in our direction. We delivered an EBITDA of $23.4 million — a remarkable $34.7 million turnaround compared to the prior financial year. While the broader industry showed early signs of improvement, this success was the result of deliberate long-term initiatives. A deepening strategy on diversifying our operations, maintaining a sharp focus on operating costs and drawing on the dedication and expertise of a highly skilled team, who are always ready to approach opportunities and challenges headon.

If FY24 was the year of building on our foundations, then FY25 has been the year of truly finding our stride. In March, we announced the acquisition of Dennis Family Homes, a pivotal strategic decision that united two organisations with shared values, deep family heritages, and complementary strengths and capabilities. The acquisition successfully expanded our product portfolio and equipped us with one of the largest display centre footprints across the country — offering our valued customers more choice and more ways to feel at home.

In FY25, our finance performance remained steady, underpinned by a 90% year-on-year increase in normalised Net Profit After Tax (NPAT) from continuing operations. This material improvement was driven by stronger gross margins across the revenue streams, combined with continued investment in expanding alternative channel capabilities. Revenue remained stable, with softer activity in the Insurance channel offset by increased average site start values, growth in alternative channels and contributions from the DFH acquisition. Despite incurring $6.2 million in one-off transaction and integration costs, reported EBITDA showed a modest improvement due to favourable gross margin performance.

The Group maintained a strong cash position, supported by improved operational productivity, better receivables collection, and efficient phasing of alternative channel projects. As of 30 June 2025, liquidity stood at $47.7 million, including $23.3 million in cash and $24.4 million in undrawn facilities.

Market outlook

Across the broader market, we’re beginning to see early signs of recovery, supported by improved consumer confidence, recent interest rate cuts, stabilising migration, and a renewed government focus on national housing targets.

However, the Australian housing landscape is undoubtedly evolving. Ongoing cost-of-living pressures, rising house prices and persistent labour shortages continue to challenge both delivery timelines and buyer sentiment.

At the same time, we’re seeing a shift in buyer preferences with growing demand for medium-density living and smaller-lot homes in line with urban planning priorities. Importantly, we are exceptionally well-positioned to meet this shift. Throughout FY25, we successfully delivered several sold-out medium-density projects and strategically secured over 200 lots for development in FY25–26 in partnership with leading developers. This focus aligns with the resurgence of investor activity, particularly in Victoria, where we’re seeing strong growth in both regional and metropolitan markets.

From our renewed leadership in the knockdown rebuild segment, supported by flagship projects in SkyRidge and Rowville, to the opening of innovative regional display centres in Gippsland and Shepparton, we’re continuing to cement our reputation as one of Australia’s leading home builders across capital cities and regional hubs.

Amidst a rapidly evolving market landscape, one thing remains constant — our unwavering commitment to our customers. In FY26, we’ll continue to build on that foundation through a series of customer-focused initiatives. These include the launch of a new customer portal, the introduction of a state-of-the-art Gallery experience and the integration of AI-driven capabilities across lead generation, qualification, and nurturing — all designed to enhance efficiency and elevate the customer experience.

Concluding words

Looking ahead to FY26, we have every reason to be optimistic.

The recent appointment of The Hon. Michael Sukkar, former Federal Housing Minister and Assistant Treasurer, to the Simonds Group Board as an Independent Non-Executive Director, further strengthens the strategic capability of our Board. His deep policy expertise and understanding of Australia’s housing sector reinforce our commitment to being a leading and influential voice in the national housing conversation.

The challenges and opportunities of FY25 have underscored the importance of the long-term partnerships that underpin our success. These relationships — with our customers, our suppliers, our communities, and, of course, our shareholders — remain the foundation of our strength and resilience.

As we move forward, we remain guided by the same principles that have defined us for 75 years: quality, innovation, and a deep commitment to helping Australians achieve their own Great Australian Dream.

To conclude, I would like to extend my sincere thanks to the Simonds Group Board and to our shareholders for your continued trust, guidance and support. Together, we’re continuing a proud legacy — one centred around building quality and affordable homes, for every dream.

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