SKS TECHNOLOGIES GROUP LIMITED — AGM Information 2023

Nov 22, 2023

Annual General Meeting

23 November 2023

==> picture [489 x 540] intentionally omitted <==

ASX: SKS

==> picture [960 x 55] intentionally omitted <==

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

Five-year P&L reflects rate of growth
----- End of picture text -----

Annual revenue has grown over the last five years by an average of 34.8%

Earnings results for FY23 reflect the deliberate decision to invest heavily for rapid expansion The strategy’s success is now evident in the quality of work being won with new customers in new markets

Medium-term growth can now largely be achieved with the current cost base

==> picture [304 x 208] intentionally omitted <==

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

Sales Revenue ($M)
83.3
67.3
35.6
25.2 26.6
FY19 FY20 FY21 FY22 FY23
----- End of picture text -----

==> picture [304 x 208] intentionally omitted <==

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

EBITDA ($M)
3.5
2.7
2.0
1.1
0.4
FY19 FY20 FY21 FY22 FY23
----- End of picture text -----

==> picture [630 x 207] intentionally omitted <==

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

Net Profit Before Tax ($M) Net Profit After Tax ($M)
3.0
2.0
1.2 1.7
0.6 0.5
0.6 0.6
-1.2 -1.2
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
----- End of picture text -----

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 2
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Investment benefits begin to flow through in early FY24
----- End of picture text -----

• Approximately $3 million was invested in initiatives to underpin growth, including hiring industry specialists, opening new offices to complete the national footprint, and strengthening systems and processes

• Medium-term growth can now largely be achieved with the current cost base

Jan 22	Inducted newly recruited client services team and replaced management & expanded WA office and offering
Feb 22	Recruited and onboarding specialist data centre team
Mar 22	Established a new branch in NT		YTD FY24	Revenue	$34.5M
Apr 22 May 22	Recruited HSEQ management Recruited new management and expanded offering in QLD		Financial performance	EBITDA	$1.8M
Jun 22	Recruited specialist defence		(Jul – Oct)	PBT	$1.04M
Aug 22	Established SKS Indigenous Technologies and began trading
Ongoing	Expanding systems and processes top support significant growth
					ASX : SKS	3

==> picture [960 x 55] intentionally omitted <==

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

Increased cash flows from operations and zero long-term debt
----- End of picture text -----

The turnaround in cash flows from operations between FY22 and FY23 enabled full retirement of the R&D liability as well as a net reduction in short-term borrowings Thus, the business now has no long-term debt Short-term debt fluctuates according to sales and working capital required to fund projects Increased CBA financing facilities from $8 million to $12 million in Nov 23.

==> picture [635 x 303] intentionally omitted <==

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

Cash flows from operations ($M) Debt profile ($M)
2.9
6.7
Short-term debt
Long-term debt
1.4
3.4
3.3 3.5
-0.1
3.3
-0.9
2.3
3.2 1.8
1.3
0.5 1.8
1.0
-2.8 0.8
0.2
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 0.0
----- End of picture text -----

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 4
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Strategy drives exponential growth
----- End of picture text -----

• Focus on organic growth

Guided the growth of the business

Identified the sectors of smart buildings, data centres and defence as attractive targets for expansion

Identified the value of targeting end user customers for higher margins and the further work that comes with direct relationships.

$100+ million revenue target in FY24

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

• Leverage new networks

• Build higher revenue spread across existing cost base

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

• Build work for SKS Indigenous Technologies • Secure projects directly with the end-user client for repeat work and higher margins • 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

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 5
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Work on hand profile transitioning to targeted sectors and customers
----- End of picture text -----

Solid progress on securing work on hand in new sectors

New data centre project in excess of $30million boosts work on hand to: $80.6 million

Increase in work on hand in targeted market sectors (%)

November 2023 (%)

August 2023 (%)

August 2022 (%)

==> picture [182 x 111] intentionally omitted <==

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

Data centres
Smart building & technology
networks 14.9%
0.2%
Defence
11.5%
----- End of picture text -----

==> picture [255 x 123] intentionally omitted <==

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

Smart building Data centres &
networks technology 11.8%
0.7%
Not including
Defence $30M data
10.5%
centre project
Traditional market sectors 77.0%
----- End of picture text -----

==> picture [98 x 98] intentionally omitted <==

Traditional market sectors 100%

Traditional market sectors, 73.4%

Over the last three months, end-user work on hand has increased by approximately 50%

Increase in work on hand by customer type (%)

August 2023 (%) November 2023 (%)

August 2022 (%)

==> picture [135 x 125] intentionally omitted <==

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

End user
10.4%
Traditional customer type 89.6%
----- End of picture text -----

==> picture [33 x 16] intentionally omitted <==

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

End user
1.0%
----- End of picture text -----

==> picture [33 x 16] intentionally omitted <==

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

End user
15.9%
----- End of picture text -----

==> picture [98 x 98] intentionally omitted <==

==> picture [98 x 98] intentionally omitted <==

Traditional customer type 99.0%

Traditional customer type 84.1%

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 6
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

National branch network services high value clients
----- End of picture text -----

Services include AV, communications, electrical, building and energy management solutions, and maintenance.

Client base includes household brand names across all market sectors in Australia.

==> picture [225 x 215] intentionally omitted <==

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

Darwin,
NT, 2022
Brisbane,
Perth, QLD,2019
WA, 2015
Adelaide, Sydney, NSW
SA, 2018 2015
Canberra,
Melbourne, ACT, 2022
VIC & TAS
2014
----- End of picture text -----

==> picture [91 x 47] intentionally omitted <==

==> picture [92 x 45] intentionally omitted <==

==> picture [81 x 36] intentionally omitted <==

==> picture [105 x 28] intentionally omitted <==

Projects are delivered to customers across the entire economy, including:

==> picture [80 x 44] intentionally omitted <==

==> picture [67 x 31] intentionally omitted <==

==> picture [106 x 30] intentionally omitted <==

==> picture [80 x 19] intentionally omitted <==

• hospitals and aged care facilities

• • manufacturing and distribution facilities

==> picture [69 x 39] intentionally omitted <==

==> picture [82 x 47] intentionally omitted <==

==> picture [105 x 29] intentionally omitted <==

==> picture [105 x 21] intentionally omitted <==

• commercial buildings

• • correctional facilities

==> picture [118 x 17] intentionally omitted <==

• hotels

==> picture [56 x 53] intentionally omitted <==

==> picture [77 x 32] intentionally omitted <==

==> picture [56 x 40] intentionally omitted <==

• defence buildings

• • airports • data centres

• • retail centres

• • smart buildings

• • sporting complexes

• • universities • government/defence

• • mining and resources businesses

• • utilities

• • banks and financial institutions

• • public sector buildings.

==> picture [108 x 30] intentionally omitted <==

==> picture [60 x 42] intentionally omitted <==

==> picture [93 x 50] intentionally omitted <==

==> picture [56 x 36] intentionally omitted <==

==> picture [83 x 17] intentionally omitted <==

==> picture [79 x 79] intentionally omitted <==

==> picture [53 x 54] intentionally omitted <==

==> picture [94 x 35] intentionally omitted <==

==> picture [88 x 19] intentionally omitted <==

==> picture [70 x 47] intentionally omitted <==

==> picture [125 x 31] intentionally omitted <==

==> picture [76 x 32] intentionally omitted <==

==> picture [87 x 24] intentionally omitted <==

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 7
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

SKS Technology’s systems and services are relevant across all sectors
----- End of picture text -----

A concerted drive to win projects in the targeted sectors of Defence, Data Centres and Technology, and Mining and Resources has resulted in almost 53% of total work on hand in those three sectors

New $30+ million data centre project comprises a large portion of the Data Centre and Technology work on hand

Broad stable of Federal and state government customers provides a solid base of projects

Total work on hand ($M)

Work on hand by sector

==> picture [660 x 344] intentionally omitted <==

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

Utilities & Smart
Retail 2.2% Airports 1.7% Buildings 0.6%
81+
Manufacturing 0.1%
Logisitics &
Warehousing 1.2%
Healthcare &
Aged Care
12.0%
Mining &
Resources
0.9%
47
39
Data Centres Corporate
& Technology 8.0%
45.3%
26
Defence 6.6%
Sports, Entertainment &
Hospitality 1.0%
7
Education 3.9%
Government 12.3%
Banking &
Jun 20 Jun 21 Jun 22 Jun 23 Nov 23 Finance 4.4%
----- End of picture text -----

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 8
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Our valuable and growing pipeline of opportunities is unremitting
----- End of picture text -----

Pipeline shows no sign of abatement

Significant amount of work under tender in targeted sectors of defence and data centres

Newly enhanced tendering database will enable greater transparency and analysis of pipeline in future years

==> picture [671 x 432] intentionally omitted <==

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

($M) Data Centres & Technology 55.9
Corporate 51.2
Sports, Entertainment & Hospitality 24.8
Defence 24.2
Retail 21.5
Government 17.9
Aged Care & Healthcare 11.0
Education 6.4
Banking & Finance 6.2
Airports 4.5
Rail, Transport, Logistics & Warehousing 4.2
Mining & Resources 3.4
Utilities & Smart Buildings 2.6 TOTAL OPEN TENDERS
Manufacturing 2.2 Quantity: 1,122
Other 0.5 Value: $236.5 million
----- End of picture text -----

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 9
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

A successful first year for SKS Indigenous Technologies
----- End of picture text -----

51% owned by Indigenous identity, Chris Johnson

==> picture [63 x 63] intentionally omitted <==

Achieved the initial target of 3% Indigenous employment in the business, to match the national target. The new target is 4% - 5%, depending on the future rate of growth

==> picture [63 x 63] intentionally omitted <==

Achieved order intake of Increasing pipeline of >$10 million, all of which opportunities across all will be delivered in FY24. market sectors Work won is for Government, defence and corporates

==> picture [63 x 63] intentionally omitted <==

Onboarded with many Achieved Supply Nation government panels as certification , which enables approved service providers inclusion in the indigenous – approximately 10 Business Direct database government and corporate and confirms that a business panels around Australia is Indigenous owned and audited annually

49% owned by SKS Technologies Group

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 10
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Safety culture delivers long-term flawless performance
----- End of picture text -----

Zero LTIs in five years despite significant growth in workforce and hours worked Strong safety culture developed and promoted throughout the organisation over many years

==> picture [570 x 365] intentionally omitted <==

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

0 LTIs during rapid growth
325
200
100
92
69
0 0 0 0 0
CY18 CY19 CY20 CY21 CY22
Employees LTIs
----- End of picture text -----

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 11
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Environmental, social and corporate governance commitment
----- End of picture text -----

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

==> picture [611 x 106] intentionally omitted <==

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

E S G
Environmental Social Governance
----- End of picture text -----

• Waste is recycled

  • Ethical approach to transacting business

• Safe and healthy management

• • Tolerant, fair and ESG

• empathetic workforce

• Energy/water efficiency

• Management of key business risks

• Sustainable

procurement

  - Responsible reporting and disclosure

• Diversity in age and Responsible reporting ethnicity apparent, while and disclosure •

• seeking greater gender Stakeholder engagement balance

• Materials and supplies reused including refillable options

• No single use plastics/virgin materials

• Source materials responsibly

• Support local communities in which the business operates

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 12
----- End of picture text -----

==> picture [960 x 55] intentionally omitted <==

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

Strong operating platform with high demand and capital to fund it
----- End of picture text -----

==> picture [309 x 96] intentionally omitted <==

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

Initiatives
to support
growth
----- End of picture text -----

Benefits of Target those revenue initiatives performance Based on the high level of work won and performed in FY23, as well as the investment in the people, processes and systems to our growth, the revenue target for FY24 is in the range of: $100+ million

Changing profile of work on hand evident. Large new contracts in the data centre and smart buildings sectors, and a solid orderbook proportion in defence work

Recruited specialist market sector teams to develop new capability and pursue work in the data centre, smart buildings and defence sectors

Commensurate growth in pipeline with $336.5 million currently out for tender

Built and recruited relationships with end user clients to gain higher margins and repeat work

Continued improvement in working capital, augmented by increased CBA financing facilities

Undertook significant and continuous financial analysis to understand funding commitments and risks, and secured finance Established SKS Indigenous Technologies

Work secured on the basis of specific government/corporate accreditations, certifications and other processes undertaken by the new specialist teams

Completed the national footprint of branches to target state-specific market sectors

Additional work generated by SKS Indigenous Technologies – $10 million of work on hand as at 31 August 2023

Upgraded systems, processes, accreditations and certifications to pursue work in new sectors and support overall growth

==> picture [705 x 37] intentionally omitted <==

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

ASX : SKS 13
----- End of picture text -----

==> picture [551 x 540] intentionally omitted <==

Investor Inquiries:

Matthew Jinks, CEO Gary Beaton, CFO (03) 9289 5000

Inquiries@sks.com.au