SKS TECHNOLOGIES GROUP LIMITED — Investor Presentation 2016

Aug 30, 2016

STOKES LIMITED

(ASX:SKS)

FY16 Results Presentation

AUDIOVISUAL LIGHTING

Highlights

Continuing operations

• Ø Sales up 338% to $15.4 million
• Ø FY loss $1.5 million reduced from $2.2 million (FY15)
• Ø Stronger 2H delivers EBITDA $200K resulting in $1.4 million turnaround from 1H
• Ø FY order intake $17.6 million
• Ø Work in hand increased from $500K to $3.8 million 30 June.
• Ø Won Simonds Stadium and Melbourne Airport AV projects combined $3 million
• Ø Work in hand August 2016 $10 million following major project wins
• Ø Acquired AV & IT distributor Dueltek Distribution
• Ø Appointed Australian distributor of AT&T structured data cabling products
• Ø Won multiple major lighting projects with blue chip clients
• Ø Strong R&D focus delivers first sales of "Ascendancy" control system.

Discontinued operations

• Ø Sale of appliance parts division for $5 million
• Ø Closure and exit of manufacturing division
• Ø Profit from discontinued operations $1.5 million

Impressive sales growth for new businesses

AUDIOVISUAL LIGHTING

LED Lighting Division

• ØEstablished 2014
• ØLED lighting has revolutionised industry due to energy/maintenance savings
• ØSecured exclusive Oceania distributorship of Forma & AEC lighting products
• ØEstablished lighting distributors in WA, QLD
• ØStokes operates in commercial specification market working with electrical engineers and consultants to design & supply lighting projects
• ØStokes also assists clients obtain govt rebates where applicable
• ØProducts inc LED panels, down lights, floodlights & industrial lighting
• ØProjects inc offices, big box retail, warehouses, schools, railway stations
• ØNew products constantly under development

Audio Visual & IT Distribution Division

• ØAcquired Dueltek Distribution Sep 2015, $1.5m pa revenue business
• ØMelbourne based with significant online presence
• ØDueltek invested in additional product lines
• ØAdded sales staff & upgraded IT systems
• ØApr 2016 appointed national distributor of structured cabling systems provider`AT&T Cabling Systems
• ØProducts including LED video walls, AV control systems, cable systems, wall plates, racks
  • & cabinets, speakers, wireless routers
• ØCustomers include AV & IT integrators, electrical contractors, govt departments

Audio Visual Integration Division

• ØEstablished 2014
• ØOpened NSW & WA offices 2015
• ØExperienced management team with ability to deliver large scale technical projects
• ØStokes operates in the commercial specification market working with electrical engineers
  • & consultants to design & supply high end fully integrated AV projects
• ØProducts installed include AV control systems, LED screens, projectors, speaker systems
  • & video conferencing which incorporates programing & commissioning
• ØStokes services include providing support & scheduled maintenance for customers
• ØProjects include offices, boardrooms, meeting & conference rooms, retail