SIMONDS GROUP LIMITED — Capital/Financing Update 2015

May 26, 2015

==> picture [106 x 66] intentionally omitted <==

==> picture [649 x 288] intentionally omitted <==

Simonds Group Limited May 2015 Update

27 May 2015

==> picture [720 x 55] intentionally omitted <==

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

Focused on delivery
----- End of picture text -----

• Strong performance and pipeline provides confidence to deliver at least prospectus pro-forma FY15 NPAT of $20.4m

•

• New increased funding facility supports future growth

• Simonds Homes site starts ahead of forecast

• NSW expansion investment brought forward creating solid platform for FY16

•

• First 11 Sydney display homes across 5 locations to be open by March 2016

• Expansion of S-E Queensland display footprint on schedule to have 11 centres operating by December 2015

• BAA course enrolments ahead of forecast

• BAA strategic fundamentals underpinning performance

•

$3.3m technology-led investment on track to underpin improved productivity

==> picture [623 x 49] intentionally omitted <==

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

Prospectus forecast re-affirmed
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

2

==> picture [720 x 55] intentionally omitted <==

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

Strong sales pipeline – Simonds Homes
----- End of picture text -----

As at 26 May 2015

• On track to exceed FY15 forecast of 2,433 site starts

• Sales pipeline of $441m¹ in revenue

• Pipeline provides strong platform for FY16

• Continued solid sales performance across all states

Simonds Homes Sales pipeline

==> picture [366 x 288] intentionally omitted <==

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

4,288
957 Sales accepts –
contract being
prepared
Sales
Pipeline
2,056 Contract signed –
1,099
awaiting site start
2,433 [2]
2,232
Site started [2]
----- End of picture text -----

1. 2,056 sales pipeline at forecast average site-start value (SSV) of $214.7k as at 26 May '15 Forecast site starts 2. Simonds Homes Residential site starts (excluding Madisson Projects) (FY15) Site starts refers to the commencement of construction.

==> picture [623 x 49] intentionally omitted <==

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

Sustainable strong sales pipeline for FY15 & FY16
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

3

==> picture [720 x 55] intentionally omitted <==

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

NSW display home footprint on track
----- End of picture text -----

==> picture [83 x 36] intentionally omitted <==

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

Display home
Business centre
----- End of picture text -----

==> picture [306 x 366] intentionally omitted <==

• NSW to have 11 display homes across 5 locations by the end of March 2016

• Well located in greenfield growth corridors

• Market-leading Gallery opening 28 May 2015

• Continued regional expansion via wholesale network

• Solid housing market forecast for next 3 years

==> picture [623 x 49] intentionally omitted <==

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

Strategic display locations growing in NSW
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

4

==> picture [720 x 55] intentionally omitted <==

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

QLD display home expansion
----- End of picture text -----

==> picture [83 x 36] intentionally omitted <==

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

Display home
Business centre
----- End of picture text -----

==> picture [307 x 354] intentionally omitted <==

• QLD to have 18 display homes across 11 locations by December 2015

• Growing housing starts forecast in QLD for next

• 3 years

• Growth platform created for FY16 and beyond

==> picture [623 x 49] intentionally omitted <==

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

Strategic display locations growing in QLD
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

5

==> picture [720 x 55] intentionally omitted <==

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

Builders Academy Australia (BAA)
----- End of picture text -----

• 1,166 participants successfully completed their courses YTD FY15

Builders Academy Course Pipeline

• Average of 468 enrolments per month YTD FY15

• Current 4,922 active participants (registered[1] and enrolled[2] participants).

• New courses have been introduced (i.e. Cert IV Workplace Health and Safety with 1,343 current active participants) with lower average course value

• BAA on target to deliver at least prospectus -

• pro forma FY15 EBITDA of $9.8m.

Average monthly enrolments 468

==> picture [298 x 226] intentionally omitted <==

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

4,922
Registered
668
participant [1]
2,800
4,254 Enrolled
participant [2]
as at 26 May 2015 Forecast participants
(FY15)
----- End of picture text -----

1. Registered participant – participant registration paperwork has been completed and participant has committed to their course start date.

2. Enrolled participant – participant has enrolled and commenced their course.

Note: One student undertaking two courses will be listed as two participants

==> picture [623 x 49] intentionally omitted <==

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

BAA participants have exceeded prospectus forecast
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

6

==> picture [720 x 55] intentionally omitted <==

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

New expanded debt facility put in place
----- End of picture text -----

• Finalised new 3-year corporate finance facility totalling $39 million.

• Funding is provided by Commonwealth Bank of Australia (CBA).

• The facility contains standard (and improved) covenants appropriate for the Group’s medium-term needs.

• Delivers a high degree of flexibility within its arrangements and provides the Group with secure access to competitively priced long-term funding.

•

• Facilities will be utilised to assist in funding growth in operations including planned display homes roll-out (in particular, Qld, NSW and SA).

• 3-year facility provides SIO with the long-term confidence

• to support business growth as we develop a national footprint across Simonds Homes and Builders Academy

==> picture [623 x 49] intentionally omitted <==

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

Funding structure to support growth now in place
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

7

==> picture [720 x 55] intentionally omitted <==

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

In summary
----- End of picture text -----

• Confidence in delivering at least FY15 pro-forma prospectus forecast NPAT of $20.4m

•

• Strong national dwelling starts forecasted

• Expansion of the display home footprint provides platform for growth through FY16 & beyond

•

• Builders Academy Australia executing on growth plan

•

• Strong financial position with growth headroom

• Targeting 65% dividend payout ratio for period Listing – 30 June

==> picture [181 x 53] intentionally omitted <==

==> picture [161 x 75] intentionally omitted <==

==> picture [151 x 75] intentionally omitted <==

==> picture [620 x 49] intentionally omitted <==

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

Prospectus forecast re-affirmed
----- End of picture text -----

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

8

==> picture [720 x 55] intentionally omitted <==

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

Important notice and disclaimer
----- End of picture text -----

Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Simonds Group Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside the control of Simonds Group Limited.

Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from Simonds Group Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained herein with caution.

==> picture [620 x 49] intentionally omitted <==

==> picture [629 x 30] intentionally omitted <==

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

SIMONDS GROUP LIMITED | May 2015 Update | 27 May 2015
----- End of picture text -----

9