#1SAUNDERS INTERNATIONAL FY22 Investor Presentation Mark Benson Managing Director & Chief Executive Officer Rudy Sheriff Chief Financial Officer 25th August 2022 ONE TEAM ZERO HARM ONE GOAL#2O ACKNOWLEDGEMENT OF COUNTRY Saunders respectfully acknowledges the traditional owners and custodians of the country and their connection to land, sea and community. We pay our respects to their cultures and to Elders past, present and emerging. S#3Performance Highlights $129.95m REVENUE UP 28% $9.38m EBIT $36.75m CASH UP 16% UP 54% Strong financial results despite the challenging operating landscape. Secured $165 million contract for the design and construction for U.S defence fuel storage facility in Darwin. Increased surety facility to $30 million supporting growth. $192.89m ORDER BOOK UP 133% $1.31b PIPELINE UP 63% 352 FULL TIME EMPLOYEES UP 65% Strong safety performance with industry leading TRIFR of 1.57 Federal Safety Commission (FSC) and Defence Industry Security Program (DISP) accreditations commenced. 6.24 cents EARNINGS PER SHARE UP 16% 3.00 cents DIVIDEND DISTRIBUTION $110m MARKET CAPITALISATION 50% PAYOUT UP 34% PlantWeave Technologies fully integrated. Continued geographical expansion with new offices established in Victoria and the Northern Territory. 3#4Speedglas 3M OSAUNDERS Financial Highlights FY22 strong financial performance achieved through successful operational delivery and execution of strategic initiatives. GROUP CASH (A$M) DAVE GROUP REVENUE (A$M) Up 28.4% 140 120 $101.24m 100 80 $66.46m 60 $50.13m 40 20 252525 Revenue Change Up 54.3% Cash Change 40 $129.95m $36.75m 35 30 $23.82m 20 15 $11.08m 10 $8.03m 0 0 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 10 8 6 2 O GROUP EBIT (A$M) Up 16.0% ($2.26m) $1.85m EARNINGS PER SHARE EBIT Change Up 16.4% EBIT Change $9.38m 8 $8.09m 6 6.24 5.36 4 1.23 (2.26) -2 -2 -4 -4 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22#5Sustained Growth The Group is well positioned for further growth with the momentum of the FY22 forecast set to continue into FY23. The platform for success is underpinned by solid fundamentals; record orderbook, record pipeline and the strength of our balance sheet. ORDER BOOK (A$M) ORDER BOOK BREAKOUT 250 200 150 100 $61m 50 $110 $83m $193m 0 Jun-19 Jun-20 Jun-21 Jun-22 1400 1200 1000 800 LIVE TENDER PIPELINE 600 $415m 400 200 Tenders ■Pipeline $803m $671m $1,309m 0 Jun-19 Jun-20 Jun-21 Jun-22 CIVIL SERVICES CONSTRUCTION SERVICES $193m Jun 22 PIPELINE $1.3b Jun 22 PREFERRED CONTRACTOR STATUS $104m Jun 22 MAINTENANCES SERVICES E TEAM ERO HARM ONE GOAL BUCK#6Managing Economic Uncertainties Saunders continues to manage economic uncertainties while leveraging market opportunities. COVID-19 Saunders has experienced impacts on productivity due to COVID-19. Mitigation strategies include: Over-staffing of projects to cater for absenteeism Work from home, RAT and PCR testing, education and training and best practice protocols at all locations Labour market Saunders is experiencing tight labour market conditions and pressures due to increased resource competition. Mitigation strategies include: • Salary increases, employer of choice programs, retention incentive plans, offshore recruitment . Renewed EBA's ensuring escalations are built into the estimating process • Saunders is a permanent employer with long term tenure Material Escalation Materials and logistics continue to be unstable in the industry. Mitigation strategies include: • Tighter commercial conditions with rise and fall clauses • Back to back locked in subcontracts and material purchases at contract execution • Robust Go/No Go process to decline risky projects Inclement Weather and Floods Weather continues to impact our business. We have experienced material impact to our NSW infrastructure business. Generally weather has had less impact in other states. Mitigation strategies include: • Tighter commercial terms, increased contingencies . Deployment of resources where possible to other projects 6#7Strategic Outlook SS BOOSTING AUSTRALIA'S DIESEL STORAGE ONE TEAM ZERO HARM • INFRASTRUCTURE DEFENCE • Forecast $400+ million in construction of remaining projects - FY22-FY24 . Government's "Fixing Country Bridges" program - forecast circa $300 million yet to be awarded Increased requirement for complex precast components as part of NSW infrastructure boom • Expand our service offering, including industrial automation capabilities to existing Defence clients Defence Fuels Transformation Program (DFTP) Tranche 2 program budget $500 million 2022 to 2026 ONE GOAL OSAUNDERS Utilise recent terminal experience to convert growing pipeline of new opportunities INTERNATIONAL MAINTENANCE • Leverage our recent shut down experience in the utilities and industrial sectors • Expand long term national maintenance contracts FY23 OUTLOOK • • Despite uncertainties around tightening labour markets, inflationary pressures, supply chain costs, likely ongoing impacts from COVID-19 and severe weather events, the outlook for Saunders remains positive With the current levels of our order book and the pipeline of new opportunities, we are confident that we can deliver another year of continued revenue and earnings growth 7#8Project Caymus Darwin a • Project 31% complete Recruitment of all personnel on track with current onsite workforce circa 120 Bulk earth works and civil ring beams for 11 tank complete Minimal disruption from the first wet season All 11 tanks under construction All major subcontracts for the tank package have been awarded • Safety performance is good with 18,000 hrs LTI free Design of balance of plant underway Balance of plant procurement underway Project has GREEN traffic light designation 8#9Corporate Snapshot CAPITAL STRUCTURE ASX Code Ordinary shares on issue Share price as of 30 June 2022 Market capitalization 30 June 2022 SND 105,895,210 $1.020 cents $108.1m SUBSTANTIAL HOLDERS NAOS Asset Management Mr. Desmond Bryant Anacacia Pty Ltd Mr Timothy Burnett BOARD AND SENIOR MANAGEMENT Timothy Burnett Chairman and Non-Executive Director Greg Fletcher Nick Yates Non-Executive Director 165% 155% Non-Executive Director 145% 135% Mark Benson Managing Director & Chief Executive Officer 125% Rudy Sheriff Chief Financial Officer & Company Secretary 115% 105% 95% 85% SND PERFORMANCE AGAINST ASX300 الله 23.94% 22.96% 11.68% 11.04% 01 Jul 21 05 Aug 21 09 Sep 21 14 Oct 21 18 Nov 21 23 Dec 21 02 Feb 22 09 Mar 22 13 Apr 22 23 May 22 28 Jun 22 ―SND.ASX XKO.ASX 6#10Our Company Saunders International Limited is a multi-disciplined engineering and construction company providing design, fabrication, construction, shutdown, maintenance and industrial automation services to leading organisations across Australia, and the Pacific Region. With over 70 years of experience, the Saunders Group provided innovative cost-effective solutions to the oil & gas, infrastructure, defence, water, power, new energy and mining & minerals sectors. OFFICES Newcastle Rhodes Newport 350+ EMPLOYEES Gladesville Darwin Woolner Papua New Guinea PROJECTS We apply the experience of our capable team and innovative history to deliver excellence in everything we do OSAUR ZERO HARM (ZERO) (ZERO HAPM OSAUNDER 10#11DEFENCE WATER 0 OIL & GAS OUR SECTORS POWER INFRASTRUCTURE NEW ENERGY ENGINEERING & DESIGN CONSTRUCTION MAINTENANCE FABRICATION OUR SERVICES ASSET SERVICES AUTOMATION MINING & CONTROL & MINERALS CIVIL INFRASTRUCTURE STRUCTURAL, MECHANICAL & PIPING (SMP) 11#12Sustainability Saunders' approach to Safety, Health, Environment and Quality (SHEQ) focuses on creating a workplace culture that promotes safety, integrity, innovation, teamwork and leadership. Saunders' success in delivering consistent project excellence is shaped by our "OneTeam" culture and underpinned by our robust risk management systems. We proactively identify critical risks in our operations and implement strategies and systems to minimise the risk to our people, our customers and our communities. 4.3 million man hours WITHOUT A LOST TIME INJURY (LTI) • • ENVIRONMENTAL Reduction of water consumption Waste management SOCIAL Diversity & social inclusion • Mental health & wellbeing initiatives GOVERNANCE Formal strategy development Published policies & procedures • Recycling, re-use, • repurpose Promoting female • Stakeholder • Resource management participation • Sustainable materials Education & skills development • usage • Support of charitable • . organisations Engagement with various Indigenous vendors engagement Formal commercial processes Structured documents and safety systems ONE TEAM ZERO HARM ONE GOAL 12#13Engineering Construction Lendlease Sydney WATER CROWLEY® AUSTRALIAN DEFENCE FORCE ENTRY Front End Engineering Design (FEED) Structural Mechanical & Piping design 3D drafting of large fuel terminals Control system design and implementation Network design and implementation HV and LV electrical design and implementation EPC & EPCM services New tank builds for bulk fuel and chemical storage terminals Water reservoirs and pumping stations Road and Rail bridge construction Tank Jacking technology (top down construction) bp Л CALTEX LAING O'ROURKE AMPOL QUANTEM BLAK LIQUID STORAGE & HANDLING VIVA EnergyAustralia NEWCREST MINING LIMITED Evolution MINING 13#14Civil Infrastructure CPB CONTRACTORS AUSTRALIAN DEFENCE FORCE MIDCOAST council Transport Sydney Trains F Fulton Hogan BMD urban 風味 JOHN HOLLAND Road and Rail bridge construction Marine structures Precast fabrication Concrete foundation systems Manufacturing of complex Super-T and planks for infrastructure projects Excavation and installation of support structures Road works acciona LAING O'ROURKE NSW GOVERNMENT Transport 14#15Asset Services & Maintenance VIVA EnergyAustralia Repair and maintenance of bulk liquid and chemical storage tanks Asset management services Industrial boiler works Road and rail bridge maintenance Plant and facility shutdowns and decommissioning Facilities maintenance Overhauls and upgrades Structural Mechanical Piping installation Pump and valve overhauls or replacements Pressure welding Lendlease Mobil / bp CALTEX VEOLIA Opal. ventia AMPOL QUANTEM BULK LIQUID STORAGE & HANDLING LAING O'ROURKE 15#16Automation & Control UTILITIES Living o Barangaroo OSAUNDERS Bad Neare 71 Industrial automation Control system upgrades Panel manufacturing and testing Machine learning and statistical/physical process modelling Asset and inventory management Instrumentation selection, installation and calibration Plant commissioning Process optimisation Preventative maintenance Pr Cyber security auditing and hardening to ISA/IEC ROYAL NORTH SHORE THIESS Lendlease HOSPITAL VEOLIA origin SYDNEY MARKETS Ausgrid LAING O'ROURKE Transgrid Bega AVEVA 16#17Our Commitment As an Australian company, it is our responsibility to cultivate diversity and inclusion in our workplace. To empower all cultures and demographics and increase the representation of our First Nations peoples. To represent Saunders' commitment to Indigenous inclusion, we approached First Nation artist, Sharon Smith to create an artwork that communicates the coming together of our two cultures. This artwork hangs in our head office as a reminder of our company's dedication to togetherness and understanding of culture. Artists' Statement: "When I paint, I think about how our ancestors worked and looked after the land. This painting represents our Indigenous heritage and an Australian company, Saunders International, coming together to listen, share our stories and work together to protect and maintain our environment. It's a part of healing and understanding the importance of belonging which helps create a connection to community and culture. The travelling tracks in the painting represent meeting places where men and women come together as one." Sharon Smith (Wiradjuri Artist) " CORPORATE CITIZENSHIP Heart Foundation M TradeMutt Westpac Rescue Helicopter Service THE PUSH-UP CHALLENGE SYDNEY CHILDREN'S HOSPITAL FOUNDATION FOOD BANK FIGHTING HUNGER IN AUSTRALIA TARONGA RUBBISH RUN Vinnies good works Drug ARM Australasia Max's CAST "CURE ONE MEAL IT MAKES A DIFFERENCE#18Appendices OSAUNDERS LE TEAM ERO ARM OUR VALUES CORPORATE SNAPSHOT BOARD OF DIRECTORS & KEY MANAGEMENT TEAN ONE (ZERO ONE GOAL BALANCE SHEET CASHFLOW OSAUNDERS OAUNDERS SVIL BUILD 18#19Our Values ONE TEAM (ZERO HARM ONE GOAL OSAUNDERS INTERNATIONAL ZERO HARM ZERO HARM We are committed to the practice of Zero Harm behaviour at work and at home ONE TEAM ONETEAM We are better together when we collaborate with each other and our customers RAISE BAR EXCELLENCE We commit to delivering excellence in everything we do D▸ Ꮻ INNOVATION We continually challenge ourselves to create innovative solutions for our customers INTEGRITY We hold ourselves to the highest standards and deliver on our commitments RESPECT We act with respect to our people, customer, communities and the environment 19#20Board of Directors RUDY SHERIFF CHIEF FINANCIAL OFFICER & COMPANY SECRETARY GREG FLETCHER NON-EXECUTIVE DIRECTOR TIMOTHY BURNETT CHAIRMAN & NON-EXECUTIVE DIRECTOR MARK BENSON MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER NICK YATES NON-EXECUTIVE DIRECTOR 20#21Income Statement A$'K 2022 2021 Revenue 129,955 101,242 Other Income 1,272 704 Materials and third-party costs charged to projects (87,552) (58,838) Employee benefits expense (27,709) (28,100) Depreciation expense (2,246) (1,931) Motor vehicle expense (365) (317) Occupancy and operating lease expense (468) (237) Finance costs (106) (95) Other expenses (3,402) (4,343) Profit/(loss) before income tax 9,379 8,085 Income tax (expense)/benefit (2,828) (2,543) Profit/(loss) for the year 6,551 5,542 Earnings Per share Basic (cents per share) 6.24 5.36 Diluted (cents per share) 6.07 5.21 21#22Balance Sheet A$'K 2022 2021 Current assets Cash and Cash equivalents 36,746 23,816 Trade and other receivables 28,946 10,258 Contract Assets 9,340 2,884 Other current Assets 381 314 Total current assets 75,413 37,272 Non-current assets Property, plant and equipment 12,086 10,473 Other non-current assets 3,995 2,597 Total non-current assets 16,081 13,070 Total assets 91,494 50,342 Current liabilities Trade and other payables 35,500 10,725 Contract liabilities 13,023 5,684 Other current Liabilities 7,707 704 Total current liabilities 55,856 20,279 Non-current liabilities Lease liabilities 2,328 1,719 Other non-current liabilities 911 237 Total non-current liabilities 3,239 1,956 Total liabilities 59,469 22,235 Net assets 32,025 28,107 Equity Issued capital 22,482 20,687 Treasury shares under employee share plan (1,806) (674) Share based payments reserve 384 736 Retained Earnings 10,965 7,358 Total equity 32,025 28,107 22#23Cashflow A$'K Cash flows from Operating activities Cashflows from Investing activities Cashflows from Financing activities Net Increase in cash and cash equivalents 2022 2021 19,763 15,161 (3,279) (1,751) (3,649) (1,008) 12,835 12,828 Opening cash on hand Effects of exchange rate fluctuations on cash held 95 (97) Closing cash on hand 36,746 23,816 50,000.0 45,000.0 GROUP CASH FLOW BRIDGE (A$000S) 19,763.0 40,000.0 36,746 3,279.0 95.0 3,649.0 35,000.0 30,000.0 25,000.0 15,561.0 23,816 1,725.0 1,008.0 97.0 20,000.0 15,000.0 10,000.0 5,000.0 11,085.0 0.0 FY20 - Cash Balance Operating - Investing- FY21 FY21 Financing FY21 FX - FY21 FY21 - Cash Operating- Balance FY22 Investing- FY22 Financing - FX - FY22 FY21 FY22 - Cash Balance 23 23#24SND Disclaimer Important information for investors MARK BENSON Managing Director & Chief Executive Officer (02) 9792 2444 L2, 1F Homebush Bay Drive, Rhodes NSW 2138 www.saundersint.com [email protected] This presentation has been prepared by Saunders International Limited ("Saunders") as a summary of the Company and its operations and for general information purposes only. This presentation is not and should not be considered as an offer or invitation to subscribe for or purchase any securities in Saunders, or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Saunders will be entered into on the basis of this presentation. Saunders has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Saunders can neither make any representation nor give any assurance, guarantee or warranty, express or implied, nor takes any responsibility and assumes liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of Saunders does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company's prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision. The contents of this presentation are confidential. This presentation is being provided to you on the condition that you do not reproduce or communicate it or disclose it to, or discuss it with, any other person without the prior written permission of the Company. The presentation contains certain forward-looking statements which have not been based solely on historical facts but, rather, on Saunders' current expectations about future events and on a number of assumptions which are subject to significant uncertainties and contingencies many of which are outside the control of Saunders and its directors, officers and advisers. E