SKS TECHNOLOGIES GROUP LIMITED — Interim / Quarterly Report 2015

Feb 23, 2015

Stokes Limited (SKS) 1H Results Presentation

Key Highlights

• ! Group revenue steady at $7.7M (PCP $7.5M).
• ! EBITDA* ($19,772) (pcp $109,615 ).
• ! NPAT* ($291,292) (pcp $13,170 ).
• ! Revenue from technologies division $1.5M (pcp : nil).
• ! Appliance Parts online sales now at 24%
• ! Significant investment in expansion of Technologies division

*Net Profit After Tax and EBIT after adding back business-restructuring costs of $207,000 expensed to profit & loss

Results Snapshot

1H12! 2H12! 1H13! 2H13! 1H14! 2H14! 1H15!

Technologies Division - Audio Visual & Lighting

• ! Revenues of $1.5M (PCP:NIL)
• ! Continued investing in key staff with employees now at 15
• ! Launched new products: Ascendancy & Worksphere
• ! Appointed exclusive Australian distributor of Forma Lighting
• ! Established NSW sales office
• ! Established WA sales office (commenced January 15)

Technologies Division - Audio Visual & Lighting (cont'd)

• ! LED lighting now proven technology and at early adopter stage for retrofitting existing installations due to significant power and maintenance savings.
• ! Project pipeline continues to expand.
• ! Business being run with long term sustainable growth at the expense of short term profitability

Appliance Parts and Industrial Divisions

• ! Appliance parts division reaping gains post restructure
• ! Revenues lower as a result of removal of non profitable products
• ! Costs significantly reduced leading to doubling in profitability
• ! Online transactions now account for 24% of sales and growing.
• ! Industrial manufacturing division continued downsizing
• ! Staff numbers reduced from 100 (2012) to 48 (2014)

Outlook

• ! Technologies division growing rapidly with strong project pipeline
• ! New offices in WA & NSW to contribute in FY16
• ! New products open doors to larger customer and project pool
• ! Appliance parts division expected continued improvement

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