SKS TECHNOLOGIES GROUP LIMITED — AGM Information 2022

Nov 16, 2022

Annual General Meeting

17 November 2022

ASX: SKS

The Eminence, Brisbane

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Disclaimer
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The material contained in this document is a presentation of general information about SKS Technologies’ 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 SKS Technologies, 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 SKS Technologies Group. These forward-looking statements are based on estimates, projections and assumptions made by the SKS Technologies Group about circumstances and events that have not yet taken place. Although SKS Technologies 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 SKS Technologies’ control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). SKS Technologies 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. SKS Technologies does not intend to update the forward-looking statements in this document in the future.

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ASX : SKS 2
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Adelaide Railway Station

Chairman’s Address Peter Jinks

Chief Executive Officer’s Report Matthew Jinks

Data Centre

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Profit and Loss Performance FY20 to FY22 (continuing ops by half year)
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Since the completion of the restructure at FY20, and despite the impact of Covid, revenue has grown at a compound annual growth rate of 59.2%. The business has completed the year with a revenue run rate in excess of $90 million against the previously stated $80 million annual revenue target for FY23.

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Sales Revenue
$M 39.1
28.2
22.4
15.1
13.2
11.5
1H20 2H20 1H21 2H21 1H22 2H22
Net Profit Before Tax
$M
1.1
0.9
0.7
0.5
-0.2
-1.1
1H20 2H20 1H21 2H21 1H22 2H22
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EBITDA
$M 1.9
1.5
1.1
0.9
0.1
-0.5
1H20 2H20 1H21 2H21 1H22 2H22
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Net Profit After Tax

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$M 1.7
1.3
1.1
0.7
-0.2
-1.1
1H20 2H20 1H21 2H21 1H22 2H22
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ASX : SKS 5
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Earnings Growth (continuing ops)
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Despite 2.5 times increase in shares on issue, growth all earnings metrics, on a per share basis, have outperformed the growth in issued capital, emphasising the quality of the new earnings.

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Per share increase from start FY19 to end FY22
Sales 4%
EBITDA 18%
NPBT 26%
NPAT 26% Tax Benefit 64%
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ASX : SKS 6
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Debt Reduction FY19 to FY22
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From FY19 to FY21, debt was reduced by $5.4 million. Increased debt in FY22 is a result of increased revenue and a commensurate increase in the financing facility.

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Reduction in Debt
$M
6.7
3.4
3.3
1.3
2019 2020 2021 2022
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ASX : SKS 7
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Systems and Services
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• › Display and projector systems › Interactive whiteboards

• › Specialist controlled lighting › Public access systems

SKS Technologies’

optimum capability offers a technology package that manages employee connection and interaction, energy management and data warehousing to mitigate risk and extract maximum value from a business’s core operations.

• › Video and audio conferencing

• › Touch panel control › Video walls Audiovisual

• › Voice and data structured cabling › Converged Networks › Optical fibre and copper Communications › Digital Twins › Patch panel management Communications Smart Building › Active monitoring of essential services › Active equipment Solutions to facilitate timely fault detection › Cable networking auditing › WAP Installation Converged systems that enable operational and cost

• Electrical efficiencies Energy Management

• Maintenance &

• › General lighting and power Essential › Energy audits Services

• › High voltage systems › Energy savings timers and sensors › Earthing systems › Energy monitoring › Uninterruptible power systems › Power analysis and data logging › Power quality analysis › Desktop power and data works › Lighting efficiency analysis › Power factor correction › Light level audits › Exit and emergency light tests › Lamp replacements › Test and tag electrical equipment › Switchboard testing

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ASX : SKS 8
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National Network
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SKS Technologies Group is headquartered in West Melbourne and employs 325 EFTs working from offices in the capital cities in Australia, except Tasmania, which is serviced from Victoria. It offers the largest range of integrated systems and services nationally and is the only ASX-listed business of its kind.

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Opened in 2022
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Opened in 2019
Opened in 2015 Opened in 2015
Opened in 2018
Opened in 2022
Opened in 2014
Serviced by the
Melbourne office
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ASX : SKS 9
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Work on Hand
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The order book has expanded rapidly over the past two years, requiring significant investment in resources to deliver the work load. The new offices in Canberra and Darwin, and restructured offices in Brisbane and Perth, are expected to increase the diversity of earnings across the geographic markets.

Total Work on Hand

Work on Hand by Location

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NSW, 1.7 NT, 1.1
47
$M
45 WA, 0.6 QLD, 0.2
Work on hand 43
39
30
SA, $5.8
26
$M
20
10
7
Jul 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Aug 22
VIC, $29.2
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ASX : SKS 10
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Customer Snapshot
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SKS Technologies Group enjoys a 96% repeat business level from a diverse range of listed, private, government, large and small organisations across the full spectrum of industry sectors. Our relationships with our customers, suppliers and employees are what make our business so successful.

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ASX : SKS 11
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Environmental, Social and Governance
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Management understands the value of keeping people safe, protecting and preserving the environment, operating ethically, and celebrating the approach to diversity and inclusion that has helped drive the business to achieve the success that it has delivered over the past few years.

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SOCIAL
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GOVERNANCE
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▪ Safe and healthy employees
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• Safe and healthy employees ▪ Ethical approach to

• ▪ Workforce is tolerant, fair transacting business and empathetic ▪ Management of key

• ▪ Diversity in age and business risks ethnicity apparent. Seeking ▪ Responsible reporting and greater gender balance disclosure

• Source responsibly ▪ Stakeholder engagement

• ▪ Support the local communities in ESG

• which we operate ESG ENVIRONMENTAL

• ▪ Waste is recycled ▪ Energy/water efficiency ▪ Sustainable procurement ▪ Materials and supplies reused including refillable options

• ▪ No single use plastics/virgin materials

Mission

To preserve and improve the physical, social, environmental cultural and economic health and wellbeing of its neighbourhoods, while ensuring quality of life for current and future generations.

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ASX : SKS 12
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Strategy and Revenue Outlook
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Our expansion strategy informs every major decision that is made in the business and is supported by an external environment that realises the necessity of our systems and services for its business continuity.

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Focus on organic growth

Maintain opportunistic approach to acquisitions – as assessed against specific criteria that drive capability, capacity and scale

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• Leverage new networks

• Build higher revenue spread across existing cost base

• Build work on hand in newer markets in WA, NT, ACT and QLD

$90 million revenue target in FY23

• Build work for SKS Indigenous Technologies

• Secure projects directly with the end-user client

Continue to strengthen the balance sheet Pursue recurring revenue opportunities Continue to focus on cost efficiencies

• Capture a share of the lucrative and rapidly evolving data warehousing market

Continue to focus on technology conversion

Pursue converged IT networks projects in intelligent buildings Pursue defence opportunities

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ASX : SKS 13
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SKS Indigenous Technologies
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A key tenet of our strategy, which also aligns with our ESG approach, is the establishment of SKS Indigenous Technologies, which opens up employment opportunities for Indigenous people as well as valuable markets for our business.

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Separate board with appropriate directors to network and win work Chris Johnson, Managing Director 51% owned by Indigenous identity, Chris Johnson Shared resources – management, technical expertise, marketing and administration resources, and offices and assets Initially targeting Indigenous employment that exceeds the national Indigenous 3% of the total Australian population 49% owned by SKS Technologies Group Committed to procuring products and services from Indigenous companies Supply Nation Registered. Approval pending for Supply Nation Certification

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ASX : SKS 14
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A Prospering Business
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Significant growth in all earnings metrics year on year since restructure completion in mid-2020.

The logical extension of SKS Technologies’ systems and services is in integrating more widely to encompass the spectrum of technological value and harness the efficiencies and added functionality that come from full integration.

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integration.
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Resilient performance through 2H20 and FY21 despite significant hindrance of pandemic More than six-fold increase in the order book over two years with a continuing strong pipeline of attractive opportunities Blue chip client base with high level of repeat business (96%)Work on hand Growth areas in integrated systems for intelligent buildings as well as in the rapidly developing area of data warehousing and defence Technologies, systems and services that are critical for business continuity and in demand across all market sectors A national presence with branches in all mainland states and territories $8 million of new CBA bank debt facilities to free up working capital currently tied to project performance guarantees and enable a more flexible and efficient means of funding the operations

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ASX : SKS 15
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(03) 9289 5000 investors@sks.com.au