TAMAWOOD LIMITED — Capital/Financing Update 2021

Dec 9, 2021

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10 December 2021

Positive Outlook in FY2022

The Board anticipates an improved second half, despite difficulties faced by the industry, with a full year profit before tax result of between $8 million - $9 million.

The reasons for the positive outlook are as follows:

• All contracts signed prior to the significant supplier and subcontractor price rises have gone through the stages of construction where prices have increased.

• Contract prices are at levels that meet the current cost of suppliers and subcontractors and include provision for expected further increases.

• Tamawood remains debt free and is cash positive.

• Enquiry levels are in excess of what is needed to maintain our expected earnings.

The Negative Impact on First Half Earnings

• The first half has been negatively impacted by weather with 50% of days lost to rain in the past 60 days.

• The significant price increases caused by pent up demand combined with the Federal Government Grant and supply chain demands.

• Pre-existing shortage of subcontractors exacerbated by the antiquated apprenticeship and licensing system.

Authorised by: Robert Lynch Chairman

F: (07) 3272 7311 A: PO Box 16 Sherwood Qld 4075

ABN: 56 010 954 499

T: 1300 10 10 10