SKS TECHNOLOGIES GROUP LIMITED — Investor Presentation 2024

Oct 29, 2024

13[th] Annual Australian Microcap Investment Conference Matthew Jinks Chief Executive Officer

30 October 2024

ASX: SKS

Disclaimer

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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2

Bespoke integrated systems/services for any market

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Healthcare &
aged care
Audiovisual Communications
Mining &
› Display and projector › Voice and data resources
systems structured cabling
› Interactive › Optical fibre and
whiteboards copper Banking & finance
› Video walls › Patch panel
› Specialist controlled lighting management
› Public access systems › Active equipment
› Video and audio conferencing › Cable networking auditing Corporate
› Touch panel control › WAP Installation
Manufacturing
Electrical Energy management Data centres &
technology
› General lighting and › Energy audits
power › Energy savings timers Utilities & smart
›› High voltage systemsEarthing systems › and sensorsEnergy monitoring buildings
› Uninterruptible power › Power analysis and data
systems logging Retail
› Power quality analysis › Lighting efficiency analysis
› Power factor correction
Sports, entertainment &
hospitality
Smart buildings Maintenance Airports and airlines
› Converged Networks › Desktop power and
› Digital Twins data Government
› Active monitoring of works
essential services to › Light level audits
facilitate timely fault detection › Exit and emergency light test Education
› Lamp replacements
› Test and tag electrical equipment
› Switchboard testing
Defence
Rail, transport, logistics
& warehousing
3
Offices/sites in all mainland states and territories
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All financial metrics show quantum growth

Sales Revenue ($M)

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50.5% CAGR
136.31
83.27
67.29 64.86
35.60
26.55
FY20 FY21 FY22 FY23 FY24 1Q25
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EBITDA ($M) NPBT ($M)
65.1% CAGR 75.6% CAGR 7.5%
7
4.8%
3.4% 5.0%
5 3.0%
9.01 0.6% 6.50 2.5%
3
0.0%
2.00
3.45 2.66 1 1.20 0.53 -2.5%
2.00
-0.38 -1.22
-2 -4.6% -5.0%
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
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NPAT ($M) EPS (cents)
56.0% CAGR 55.4% CAGR
6.04
6.62
2.80
3.02 1.61
1.74 0.58
0.63
-1.80
FY20-1.21 FY21 FY22 FY23 FY24
FY20 FY21 FY22 FY23 FY24
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Cash flows from ops ($M) Net Cash Flows ($M) Debt ($M)
$3.26M $3.39M
80.6% CAGR Current
Non-current
2.26 $1.76M
3.16
8.42 3.36 $1.32M
0.50
1.76
2.92 1.00
-0.12 1.43 -0.90 -0.45 -0.12 -0.07 -0.03 0.82
0.00
0.23
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
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Bank facilities ($M)

Working capital ($M)

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$21M
Equipment finance
2.0
Guarantee
Overdraft
$14.5M
$12M 2.0
2.0 17.0
$8M
5.12
5.0 10.0
3.0
0.10
5.0 5
-1.49 -1.28 -0.45 2.5 2
FY20 FY21 FY22 FY23 FY24 Sep-22 Nov-23 May-24 Sep-24
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4

Diversity & growth in traditional revenue base

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FY23 sales revenue FY24 sales revenue
Data centre
SKS Technologies’ In 12 months, data
traditional revenue centre revenue
business of Traditional SKS has grown to $31
converged AV/IT, $31M million,
revenue
electrical and comprising 22.8%
communications of FY24 sales
networking, has revenue.
continued to grow
26.5%
strongly, $83M
increasing by $105M
26.5% in 2024
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6

Dual strategic focus

The priority is to embed an increasingly sophisticated operating base to support continuing rapid levels of planned organic growth.

Growth

Consolidation

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• Pursue core growth organically

• 1. • Assess opportunistic acquisitions for fit • Anticipate market demand and direction

• Focus on recruiting the right people

• • Providing training programs for employees that foster attitudinal excellence

Vision

To drive future electrical technology landscapes through innovation, feasibility and efficiency that continuously captures potential and builds new ways of thinking

• Seek feedback from customers during and upon completion of projects

Mission

• Ensure margins are maintained despite continuing rapid increase in market share

• Manage cost base to support growing operating platform

• Invest in IT systems to support growth

• • Build the operating framework to sustain a higher level of operating activity

• • Continue to enhance the SKS Technologies safety culture

To execute creative, client-centric electrical technology solutions for unique and complex needs, safely and professionally

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Values
Client Focus Teamwork
Quality & Safety Integrity
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•
2. •
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Rigorous analysis of investment options Constant eye on future capital needs

• Build state-based customer accounts into 3. national accounts • Focus on growth across all market sectors

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8

Strategy evident in work on hand profile

Total work on hand ($M)

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180
96
86
45 39 47 45
26
Jun 21 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 Sep 24
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Increase in work on hand in targeted market sectors (%)

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August 2022 August 2023 October 2024
Data centres
Traditional 15% Tradtional market
market sectors sectors
100% 24%
Defence
11% Defence
Traditional 8% Data Centres &
market sectors Technology
74% 68%
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• Skewed by the $90M contract announced in July 2024

Work on hand by sector

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Banking & Finance Rail, Transport, Logistics &
0.3% Warehousing Utilities & Smart
Mining & 0.2% Buildings
Resources 0.1%
0.6%
Manufacturing
0.0%
Retail
1.0%
Education
1.1%
Airports
1.3%
Sports,
Entertainment &
Hospitality
1.6%
Aged Care &
Healthcare
4.5%
Government
5.6%
Data Centres &
Technology
Corporate 67.7%
7.6%
Defence
8.3%
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Data from 16 August 2024

9

Unabating pipeline of opportunities

Continuing strong momentum in pipeline Demand in the data centre market is large and growing, as anticipated. Having won several very large contracts recently, SKS Technologies is capitalising on its reputation of innovation and excellence, being in the enviable position of early mover with few competitors who can execute to the same standard

The focus remains on winning work across all market sectors

Data Centres & Technology Corporate Government Sports, Entertainment & Hospitality Defence Banking & Finance Mining & Resources Retail Education Utilities & Smart Buildings Rail, Transport, Logistics & Warehousing Aged Care & Healthcare Airports Manufacturing	$159,135,330 $105,861,049 $33,397,806 $18,500,870 $18,042,609 $8,647,385 $7,884,100 $7,466,798 $7,134,255 $5,967,358 $4,320,606 $2,556,995 $1,138,013 $528,016 Total Open Tenders Quantity: 1,102 Value: $380.6 million

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Data from 16 August 2024

11

Project Snapshot

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Westpac Bank, NSW

Description

Undertook a comprehensive range of all audiovisual systems on floors 1 – 15 and level 28, which included meeting room, event and executive spaces as well as the private wealth group area

Completion

December 2024

ADF’s RAAF base, Tindal, NT

Description

Completed a range of electrical and communications infrastructure projects at the Tindal base, including laying 180km of fibre optic cable across the entire site

Completion

February 2026

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Footscray Hospital, Melb VIC

Description

Designed and installed technology systems for education and training, as well as systems for wayfinding, digital signage, patient check-in and queuing throughout the 10-floor facility

Completion

April 2025

Deloitte Office, Adelaide, SA

Description

Completed a state-of-the-art electrical, communications and audiovisual fit-out 3.5 floors for Deloitte in the new Festival Tower

Completion

December 2024

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Data Centre in Melbourne, VIC

Description

Involves electrical design and construction works related to numerous multi-level data hall facilities to expand the data centre from 100MW capability to 185MW

Completion

October 2025

Melbourne Headquarters, VIC

Description

Designed and installed extensive audiovisual systems and equipment across multiple floors, including state-of-the-art technology in two ‘town hall’ spaces with capacity for 270 and 180 people, respectively

Completion

September 2024

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14

Pathway to $260 million revenue

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37%(f)
The SKS Technologies business development teams have been
successful in targeting and winning work in new sectors while
maintaining solid levels of work on hand in the business’s 33%
traditional market sectors. +
$260.0M
46%
$136.3M
39%
% FY $83.3M
Revenue 20%

$67.3M
Total $96M
Revenue $35.6M
$45M
$39M
$26M
Does not include the
WoH 1 July $7M $ $90M data centre contract
announced in early FY25
FY21 FY22 FY23 FY24 FY25
Key • Divestment of • $10M contract win for • Significant reinvestment in • Increases in bank facilities in • $90M data centre contract win in July 24 ( not
Revenue non-core assets to Footscray Hospital in projects and resources to November 23 and again in May 24 to included in $96M work on hand at 1 July)
Drivers refocus the December 21 support work on hand growth support the growth in work on hand • Consolidation and growth as outlined in strategy
business on the • Established a and build work in new sectors • Large defence and data centre
strength of its core specialist data centre and regions contract wins in November 23 and
competencies team with the • New bank facilities enable May 24 totalling ~$55M
• Significant networks and move away from expensive
increase in work expertise to target invoice financing
on hand large contracts in the arrangements
throughout the sector
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• Significant increase in work on hand throughout the year

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14

Outlook & investment proposition

SKS Technologies positioned for further organic growth in an attractive market environment

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Strengthened financial position:
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Unrelenting market demand:
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• increased operating and net cash flows

• increased operating and net • across a fully diversified cash flows customer base

• • solid working capital • with a substantial pipeline of • $21M of financing facilities work, and considerable • cost base that can growth predicted in the accommodate further defence and data centre expansion sectors

• focus on revenue diversification

• • rigorous approach to capital allocation

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Enhanced operating base:
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• increasing work on hand in targeted sectors.

• well-positioned to capture the growth opportunities, whilst continuing to build work on hand in traditional market sectors

• disciplined approach to evaluating growth opportunities and rigorous focus on project execution

• strategy for consolidation and growth

  • excellent safety record

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14

Appendices

1. Company snapshot 2. Historical profit & loss 3. Historical balance sheet 4. Historical cash flows

Company snapshot

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SKS Share Price Chart []
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1.70
1.50
1.30
1.10
0.90
0.70
0.50
0.30
0.10
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
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	Market	Information *
	Shares on Issue	112,069,879
	Options on Issue	0
	Market Cap	$159.14M
	52-Wk Range	$0.185 - $1.720
	AV Volume/Day	217,861

Directors and Executives

Share Register Composition *

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Other
Shareholders
30.3%
69.7%
Top 20 Shareholders
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	Peter Jinks	Executive Chairman
	Greg Jinks	Executive Director
	Terrence Grigg	Non-Executive Director
	Antoinette Truda	Non-Executive Director
	Matthew Jinks	Chief Executive Officer
	Gary Beaton	Chief Financial Officer

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16

• Information current as at closing on 28/10/24

Historical rofit & loss (continuing operations) p

A$000s		FY24	FY23	FY22	FY21	FY20*
Revenue & other income	Sales	136,309.2	83,268.1	67,288.4	35,599.2	26,551.1
	Other income	208.4	902.3	1,838.0	1,469.3	838.7
	Total Revenue & other income	136,517.6	84,179.4	69,126.4	37,068.5	27,389.9
Expenses	Raw materials, consumables & logistics	(72,345.0)	(46,854.4)	(38,174.0)	(22,245.1)	(16,770.6)
	Employee benefits	(51,260.5)	(31,814.5)	(25,669.6)	(11,355.2)	(9,830.8)
	Occupancy	(135.9)	(170.5)	(185.5)	(122.5)	(45.5)
	Administration	(3,763.3)	(2,624.4)	(1,645.4)	(1,350.7)	(1,126.7)
	Depreciation & amortisation	(1,925.7)	(1,407.4)	(917.6)	(549.2)	(483.7)
	Finance charges	(588.3)	(772.1)	(530.8)	(242.7)	(347.1)
	Total expenses	(130,018.8)	(83,643.3)	(67,122.9)	(35,865.4)	(28,604.5)
Profit/(loss) before tax		6,498.8)	527.1	2,003.5	1,203.2	(1,214.6)
	(Tax)/tax benefit	125.8	105.0	1,020.0	540.0	-
Profit/(loss) after tax		6,624.6	632.1	3,023.5	1,743.2	(1,214.6)
	Profit/(loss) from discontinued operations	-	-	(0.9)	423.3	(3,774.7)
Profit/(loss) for year		6,624.6	632.1	3,022.6	2,166.5	(4,989.3)
Profit attributable to members after minority interest		6,559.7	752.8	-	-	-

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17

• Wholesale company restructure completed

Historical balance sheet (continuing operations)

A$000s		FY24	FY23	FY22	FY21	FY20*
Current assets	Cash & equivalents	3,366.7	8.6	39.5	109.2	229.0
	Trade & other receivables	42,308.0	18,080.5	20,173.1	11,477.1	6,235.2
	Inventories	142.1	49.3	102.9	46.5	170.5
	Assets held for sale	-	-	-	-	990.7
	Other current assets	302.5	369.2	287.7	123.7	115.1
	Total current assets	46,119.3	18,507.6	20,603.3	11,756.4	7,740.5
Non- current assets	Trade and other receivables	-	-	414.9	-	-
	Plant & equipment	4,028.1	1,826.7	1,746.7	1,381.4	649.8
	Right of use assets	5,916.3	4,872.3	4,216.3	928.6	433.7
	Intangible assets	1,883.7	1,901.0	1,919.4	1,898.1	33.4
	Other non- current assets	0.1	0.1	115.7	140.0	131.7
	Deferred tax asset	1,797.3	1,665.0	1,560.0	540.0	-
	Total non-- current assets	13,625.5	10,265.1	9,972.9	4,888.2	1,248.5
Total assets		59,744.7	28,772.7	30,576.2	16,644.6	8,988.9

A$000s		FY24	FY23	FY22	FY21	FY20*
Current liabilities	Trade & other payables	36,838.7	14,174.5	15,720.7	11,230.9	5,890.9
	Borrowings	-	1,761.3	2,664.0	-	1,401.6
	R&D liability payable	-	-	500.8	500.8	860.5
	Provisions	3,115.3	1,642.0	1,350.0	859.0	588.3
	Lease liabilities	1,039.3	826.0	816.5	448.5	438.8
	Liabilities held for sale	-	-	-	-	51.4
	Income tax payable	6.5	-	-	-	-
	Total current liabilities	40,999.9	18,403.7	21,051.9	13,039.3	9,231.4
Non-current liabilities	R&D liability payable	-	-	229.0	821.5	1,001.6
	Provisions	43.8	86.8	40.2	24.7	47.7
	Lease Liabilities	6,555.4	4,795.8	4,185.3	939.6	482.5
	Total non-current liabilities	6,599.2	4,882.6	4,454.5	1,785.8	1,531.8
Total liabilities		47,599.1	23,286.3	25,506.4	14,825.1	10,763.3
Net assets / (deficiency)		12,145.6	5,486.4	5,069.8	1,819.5	(1,774.3)
Equity	Contributed equity	22,615.7	22,359.1	22,072.8	22,085.7	20,658.3
	Share option reserve	-	2.5	230.9	-	-
	Accumulated losses	(10,414.3)	(16,754.5)	(17,233.9)	(20,266.2)	(22,432.6)
	Equity attributable to group equity holders	12,201.3	5,607.0	5,069.8	1,819.5	(1,774.3)
	Non-controlling interest	(55.7)	(120.6)	-	-	-
	Total equity	12,145.6	5,486.4	5,069.8	1,819.5	(1,774.3)

• Wholesale company restructure completed

Historical cash flows (continuing operations)

A$000s		FY24	FY023	FY22	FY21	FY20*
Cash flows from operations	Receipts from customers	132,856.5	94,433.5	64.903.1	34,694.9	44,338.8
	Receipts from government incentives	41.1	759.4	1,717.9	1,528.4	697.6
	Payments to suppliers & employees	(123,888.8)	(91,471.0)	(66,989.7)	(34,540.4)	(44,686.4)
	Interest received	16.7	2.1	0.4	0.7	4.5
	Interest paid (incl lease liab)	(606.4)	(801.5)	(527.4)	(253.5)	(477.5)
	Net cash from (used in) operations	8,419.1	2,922.5	(895.6)	1,430.0	(123.0)
Cash flows from investing	Payment for plant & equipment	(2,179.7)	(656.0)	(766.9)	(314.6)	(14.9)
	Proceeds from disposal of plant & equipment	(19.6)	54.9	2.0	24.5	19.7
	Payment for intangibles	(4.5)	(6.9)	(47.4)	(24.8)	-
	(Payments to) / Proceeds from bank guarantees	7.2	251.5	(114.6)	(46.9)	28.3
	Payment for acquiring business – APEC	-	-	-	(66.3)	-
	Proceeds from sale of discontinued operations	-	-	142.0	1,187.6	2,090.9
	Net cash from investing activities	(2,157.4)	(356.5)	(784.9)	759.6	2,124.1

A$000s		FY24	FY23	FY22	FY21	FY20*
Cash flows from financing	(Payments to) / proceeds from issue of options/shares	(3.7)	(1.4)	(12.9)	(8.9)	500.3
	Payment to buy back shares	-	-	-	(13.1)	-
	Payment of lease liabilities	(919.2)	(870.1)	(552.1)	(425.6)	(500.9)
	Net (repayment of)/ proceeds from borrowings	(1,761.3)	(902.7)	-	-	-
	Proceeds from borrowings	-	-	66,114.6	31,856.8	40,984.6
	Repayments of borrowings	-	-	(63,450.6)	(33,258.4)	(43,185.4)
	Repayment of R&D liability	-	(249.3)	(488.2)	(460.4)	(250.5)
	Dividends paid	(219.5	(273.5)	-	-	-
	Net cash used in financing activities	(2,903.6)	(2,596.9)	1,610.8	(2,309.5)	(2,452.0)
Net increase/(decrease) in cash		3,358.1	(31.0)	(69.7)	(119.8)	(450.9)
	Cash & equivalents at start of year	8.6	39.5	109.2	229.0	679.9
Cash & equivalents at end of year		3,366.7	8.6	39.5	109.2	229.0

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19

• Wholesale company restructure completed

Further information:

Investor Inquiries:

Matthew Jinks, CEO Gary Beaton, CFO (03) 9289 5000 investors@sks.com.au