SKS TECHNOLOGIES GROUP LIMITED — AGM Information 2019

Oct 30, 2019

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2019 Annual General Meeting

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31 October 2019

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Disclaimer
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The material contained in this document is a presentation of general information about Enevis’ activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate.

To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by Enevis, including any of its related bodies corporate.

This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Enevis Group. These forward-looking statements are based on estimates, projections and assumptions made by the Enevis Group about circumstances and events that have not yet taken place. Although Enevis believes the forward-looking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Enevis’ control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forwardlooking statements (and from past results). Enevis makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements.

The forward-looking statements in this document speak only as of the date of this document. Enevis does not intend to update the forward-looking statements in this document in the future.

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ASX: ENE

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FY19 Financial Snapshot
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Sales Revenue ($M) Gross Profit ($M) & Margin
(from continuing operations)
50 12 30%
25% 25% 25%
40 4.7 10.2
36.5 8 20%
30
18%
27.2 6.8
20
20.2
4 5.1 10%
10 15.4
2.7
0
2016 2017 2018 2019 0 0%
Non-Lumex Lumex 2016 2017 2018 2019
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EBITDA ($M)
(from continuing operations)
2018 excluding doubtful debt impairment of $1,2m
1.0
0.9
0.5
0.0
-0.5
-0.9
-1.0
-1.0

-1.5
-2.0
-2.0
2016 2017 2018 2019
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NPAT ($M) Net Cash Flow ($M) Cash from Operations ($M)
1
2 0
-0.5
0.0
0 1 1.3 -1
0.7
0.6 -1.7
-1.0 0
-1 -2
-1.8 -1 -2.8
-2 -2.2 -3 -3.3
-2
-3.0
-3 -3 -4
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Thousands
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While we’ve turned the business around, we still have work to do to deliver an acceptable return to shareholders.

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Organisational Structure
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Cross selling customer base and shared operational platform

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Enevis Limited consists of three integrated business units which drive efficiencies through a shared resource platform of structure, resources, relationships and financial management.

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SKS Technologies
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Description
An electrical products and services provider that designs, delivers and
supports clients’ business critical communications systems, including audio-
visual, communications cabling, general electrical, and lighting and building
automation
Performance Highlights
State Library of Victoria
Redevelopment
❖ South Australian market entry with break-even achieved at six months
rather than the forecast 10 months and revenue exceeding expectation
❖ Queensland market entry, completing the strategy to be a national
business
❖ 93% of work and 86% of revenue emanated from existing customers,
reflecting the excellent level of customer service maintained over the year
❖ High calibre projects completed such as:
➢ Joan Kirner Women’s and Children’s Hospital
➢ State Library of Victoria
➢ Global film production studio, Mill Film
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SKS Technologies is now a well-established national provider of interactive audiovisual, communications and electrical solutions.

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Urban Lighting Group
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Description

A lighting specialist business that offers both internal and external lighting solutions for a range of applications, most notably for architectural, retail and commercial, urban space, street lighting and sports lighting market sectors

Performance Highlights

• ❖ Formalised Lumex acquisition and merged it with ULG on 1 August 2018. It brings together people and products to upscale the business

• ❖ New distribution rights secured for high end European commercial lighting product range

• ❖ New IP with the development and introduction of architectural product lighting range

• ❖ Strong demand in NSW has seen expansion of sales and marketing team ❖ Major projects completed include , Justco office lighting – a major coworking office space company in Melbourne and Sydney, Advancing Clean Energy Schools Rollout, Queensland, and SBS Broadcasting, Melbourne

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Urban Lighting Group is now a well-established national provider of energy efficient lighting solutions.

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Enegrow
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Description

A horticultural grow lighting business that offers energy efficient LED lights for cropping in greenhouses and warehouses through an exclusive supply agreement with US based manufacturer LumiGrow for the Australian, New Zealand markets as well as select markets in Asia

Performance Highlights

• ❖ Established in April to take advantage of the changing horticultural market with plants grown inside under lights to bring higher yields, better quality and higher returns to growers

• ❖ Agreement with LumiGrow, a leading US designer and manufacturer of sophisticated LED grow lighting and software, signed in April

• ❖ Participation in Protected Cropping Australia’s conference to generate awareness and sales for LumiGrow products

Cannabis crop under LumiGrow LED Lights

• ❖ Establishment of a diversity of relationships and contacts through which to pursue opportunities and build the business

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Enegrow has been established to use existing knowledge, skills and resources to capture new markets with new products.

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Strategic Initiatives -FY19
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Strategic Objective

Streamline operations and extract efficiencies across the business

Seek new growth opportunities that integrate with the existing business units

Completed

• Reviewed operating cost base for suitability with respect to short-term growth prospects

• • Continued to review stock levels and rationalised where appropriate

• Signed an evergreen exclusive supply agreement with LumiGrow to leverage our skills in the protected cropping market and currently pursuing some large prospects

• Achieved full integration of the Lumex acquisition – people, products, processes and projects

• Secured new distribution rights for high-end European commercial lighting product ranges

• built IP assets with the development/introduction of a product range under own architectural lighting brand, Forlite, filling a gap in the market for high quality, efficient architectural lighting

• Achieved an approximate 93% of work and 86% of revenue from existing customers in the SKS business

Maintain our customer service Achieved an approximate 93% of work and 86% of revenue from existing customers in the SKS levels such that we continue to business generate the majority of • Completed numerous projects for high profile institutions and buildings, including the State revenue from existing Library of Victoria, Joan Kirner Women’s and children’s hospital, Latrobe University and customers Queensland Rail Build national presence for • Out-performed expectations with first full year of SKS Technologies trading in the South business units Australian market

• Entered the Queensland market with SKS Technologies

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The Board’s strategy has delivered a turnaround in performance and exciting new prospects for growth.

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Wrap-Up
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National footprint to service larger customers

Product/market diversification

Platform for Profitable, Sustainable Growth

Significant level of customer satisfaction and repeat sales

Greater rigour in cost control and efficient management of capital

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With its revitalised business platform, Enevis is poised to optimise performance in the traditional businesses and capitalise on new opportunities with its new business.

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Further Information:
Peter Jinks
Executive Chairman and Managing Director
03 9289 5020
53 Stanley Street
West Melbourne VIC 3003
03 9289 5020
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