#1For personal use only citadel group MANAGING COMPLEXITY 0410 10 0TU 19001 of otfoo 10000 010-10 Investor Presentation 0101 0110 0 1000 0101 0110 010000 FY20 Results 27 August 2020 Mark McConnell, CEO and MD Jenny Martin, CFO 10010 1000#2о ☐ An An Emerging Global Software Company For personal use only Citadel Group | Investor Presentation | 2 Global Challenger Brand in Health Software Defensive, recurring revenue model Citadel-IXTM Growing at 66.5%** Right markets at the right time #1 Market Leading products in: > Pathology, Cancer Care (Aus) > Radiology and Maternity (UK) > Successful transformational acquisition of Wellbeing Software > Significant cross sell opportunities - estimated market opportunity $250- $350m total contract value revenue in tenders over next 2-3 years $ > Pro forma software revenue $69.4m, at 65.3% gross profit margin* > 77.2% of software revenue is recurring* > Defensive business model with limited impact from COVID-19 > Proprietary secure Document Records Management System (DRMS) platform, Citadel-IXTM, expanding rapidly via direct and indirect channels in Australia and overseas > Channel partnership accelerates growth opportunities ☑ > Well positioned to capture a share of expected digital health spend over the next 3-5 years due to push for digitisation, regionalisation and interoperability > Pedigree in secure information management - well placed to benefit from regulatory tailwinds (GDPR, ISO 27001, Data Privacy, Cyber Security) *FY20 pro forma **FY20 actual growth from PCP#3◇ Key FY20 Metrics For personal use only *FY20 pro forma **48.8% excluding Noventus All comparisons to PCP Underlying Revenue up 29.4% Underlying EBITDA up 25.3% Strong GP margins at 43.5%** Cash Balance $32.5m Software Recurring Revenue 77.2%* Final Dividend 6.0 cps Citadel Group | Investor Presentation | 3#4о For personal use only Agenda 1. Business Update 2. FY20 Financial Performance 3. Software Segment Update 4. Services Segment Update 5. Company Outlook 6. Appendices Citadel Group | Investor Presentation | 4#5For personal use only Business Update 1 A & ii) IIIII I Citadel Group | Investor Presentation | 5 ° Do ☑#6о Highlights For personal use only Citadel Group | Investor Presentation | 6 Strong performance through COVID-19 reflects defensive nature of business model FY20 underlying revenue of $128.4m and underlying EBITDA of $29.2m in line with market consensus The acquisition of Wellbeing completed with financial performance in line with market consensus Successfully completed integration of Wellbeing into the Group, with synergies of $1.5m per annum commencing FY21 Secured channel partnerships and strategic relationships Opening up new local and international markets and actionable growth opportunities via partnerships with Micro Focus and LeanIX and establishing strategic relationship with Change Healthcare in the UK Successful integration of Noventus with early outperformance Noventus achieved $21.5m full year revenue, experiencing minimal impact from COVID-19 Strong balance sheet and capital management ahead of plan with net debt of $54.5m Cash position strong at $32.5m, gross bank debt of $86.5m Dividends for FY20 maintained at 10.8cps Final dividend declared of 6.0cps consistent with FY19#7о For personal use only FY20 Business update FY20 Revenue mix Two operating segments Software 47.5 35.0 15.3 26.8 19.7 20.7 $47.5m 37.3% of Total Revenue 35.7% growth ■ Enterprise ■ Health FY19 FY20 Bo Services 80.1 63.2 49.1 28.2 Citadel Group | Investor Presentation | 7 $80.1m 62.7% of Total Revenue 26.7% growth 35.0 31.0 Professional ■Technology FY19 FY20 Health Software > 10 year contract extension of the Queensland Health contract until 2029 to continue to provide Auslab™ and the upgrade to Auslab Evolution™ > Wellbeing awarded NIMIS contract in Ireland (7 years, £3.6m TCV) Revenue to commence in FY21 Professional Services > Early extension of Defence contract out to July 2021 > Revenue from Noventus $21.5m, ahead of expectations with no material impact from COVID-19 > Entered into strategic partnership with LeanIX - enterprise architecture software Enterprise Software > Revenue growth in Citadel Information Exchange (Citadel-IX™M) of 66.5% > Launch of goTRIM Pro™, an advanced mobile Content Manager interface > Extending current partnership with Micro Focus, developing a significant global Big Pharma client pipeline Technology > 3 year managed services contract for AV/VC support with University of Melbourne - engaged by three of the Group of Eight (G8) universities > $9.7m+ building works contract won in May 2020, with $2.5m recognised in FY20 and remainder to be delivered in FY21#8Citadel Group | Investor Presentation | 8 0 ◇ Four key verticals For personal use only Clients / Market Growth Plan Products Software FY20 Revenue $47.5m, GP $29.6m, GP Margin 62.3% Health (Rev $26.8m, GP $21.2m, GP Margin 79.1%) > Public Health Sector > Private Health Sector Enterprise (Rev $20.7m, GP $8.4m, GP Margin 40.6%) > All levels of government (Federal, State and Local) > Large regulated enterprise Services FY20 Revenue $80.1m, GP $25.4m, GP Margin 31.7% Technology (Rev $31.0m, GP $8.8m, GP Margin 28.4%) > Tertiary Education > All levels of government (Federal, State and Local) > Large enterprise > Health Professional Services (Rev $49.1m, GP $16.6m, GP Margin 33.8%) > Defence > All levels of government (Federal, State and Local) > Large enterprise > Product Sales and Installation (including design and architecture) > Managed services > AV AssistⓇ > Managed services > Consulting and professional services > Partnership with Lean-IX > Software Pathology (Auslab™M/ Evolution™) Oncology/Cancer Care (CHARM®) Radiology (CRISⓇ) Maternity (Euroking) > International expansion for pathology and oncology/cancer care into the UK market TM > Software KapishⓇ Citadel-IX AusTender™ Grant Connect T - - goTRIM Pro TM TM > Development of channel partnerships > Growth from increased opportunities in the construction sector > Product expansion with existing customers > Further penetration into large enterprise clients#9Citadel Group | Investor Presentation | 9 о Delivering on strategy – right markets, right time - Significant progress has been made in shifting the revenue and gross profit composition of the business towards recurring software Revenue by segment FY19* 20% FY20* Health Enterprise Technology FY20 Full Year Pro Forma** Professional For personal use only 29% 19.6 28.3 35% Software Revenue $98.2m 15% 15.3 39% 21% 26.8 37% Software Revenue 49.1 $127.6m 32% 33% 49.1 48.7 46% Software Revenue $149.5m 20.7 16% 35.0 36% Gross Profit by segment FY19* Software Revenue has increased from $34.9m to $47.5m (36.1% increase) 31.0 24% Software contribution increased to 46% of total segment revenue 20.7 31.0 21% 14% FY20* FY20 Full Year Pro Forma** 29% 12.6 36% 47% Software 15.9 Gross Profit $43.9m 39% 30% 54% Software Gross Profit 16.6 21.2 $55.0m 23% 16.6 64% Software Gross Profit 13% $70.7m 36.9 8.8 52% 16% 8.8 10.4 5.0 24% Software Gross Profit has increased from $20.9m to $29.6m (41.6% increase) 8.4 Software contributing 66% of Gross Profit 8.4 12% 11% 15% Underlying revenue and gross profit, excluding other income ** * Underlying revenue and gross profit, excluding other income, adjusted for Wellbeing full year#10For personal use only Increasing software revenue Software revenue continues to grow Software revenue ($m) 69.4 21.9 > Pro forma Wellbeing software revenue CAGR 31.4% 47.5* 35.0 27.5 Citadel Group | Investor Presentation | 10 Recurring Software revenue ($m) Health Enterprise 102.3% Growth 53.6 26.5 9.2 17.3 18.1 > Pro forma Wellbeing recurring revenue 34.0% Growth 35.5 12.7 22.8 FY18 **21% FY19 **15% FY20 **12% FY19 FY20 > Strong growth in Software revenue, following the acquisition of Wellbeing, contributing $7.6m for FY20 and $29.5m on a pro forma basis. > Building scale across our product suite with global opportunities and access to new markets, particularly as a result of the Wellbeing acquisition in the UK, and new enterprise software channel and reseller agreements. > Focus is on developing secure cloud-based software solutions that have large addressable markets, and a high degree of contracted, recurring revenue models. *includes $7.6m for Wellbeing **R&D spend as a percentage Software revenue.#11For personal use only FY20 Financial Performance 2 A & ii) IIIII I © Citadel Group | Investor Presentation | 11 ° Do ☑#12© Citadel Group | Investor Presentation | 12 о Statutory Financial performance For personal use only Statutory Revenue and EBITDA impacted by non-recurring abnormal items $m Total Revenue Gross Profit Gross Profit Margin EBITDA EBITDA Margin FY20 FY19 Change 122.1 99.2 23.1% 50.9 45.0 13.1% 41.7% 45.4% 16.8 23.3 (27.9%) 13.8% 23.5% Depreciation & Amortisation 12.3 8.0 53.8% EBIT 4.6 15.3 (69.9%) Finance Costs NPBT Tax Expense 2.1 1.0 110.0% Revenue $122.1 million > Trading revenue from Enterprise, Health and Professional Services in line with expectations - no material impact from COVID-19 > Technology revenues were impacted in Q4 from reduced university spend, offset by a new contract win of $9.7m in May 2020 ($2.5m revenue recognised) > Reversal of contract asset of $5.7m from FY17/FY18 impacted Professional Services revenue, expected to be settled up to $5.0m in FY21 > Wellbeing trading results in line with expectations, revenue reduced by $0.6m as a result of fair value adjustment to deferred revenue on Wellbeing acquisition Gross margin of 41.7% > Negatively impacted by revenue adjustments above, partially offset by accrued expense reversal of $1.4m 2.5 14.3 (82.5%) > No JobKeeper payments received in FY20 1.5 3.4 (55.9%) NPAT from Continuing Operations 1.0 10.9 (90.8%) EBITDA $16.8 million > Abnormal expenses of $7.5m in respect of acquisition, integration and restructure costs > Full year impact of Gruden and Noventus, part year impact of Wellbeing acquisition > Synergies program in Wellbeing will deliver savings of circa $1.5m in FY21 > Citadel restructure in February 2020 resulted in $2.1m annualised savings, a portion of which will be reinvested back into the business to fund new growth strategies#13Citadel Group | Investor Presentation | 13 ◇ Underlying Financial performance For personal use only Strong growth in Underlying Revenue and Underlying EBITDA $m Total Revenue Gross Profit Gross Profit Margin EBITDA EBITDA Margin Depreciation & Amortisation EBIT Finance Costs NPBT Tax Expense NPAT from Continuing Operations FY20 Pro Forma* FY20 FY19 Change 150.9 128.4 99.2 29.4% 72.2 55.8 45.0 24.0% 47.8% 43.5% 45.4% 38.4 29.2 23.3 25.3% 25.4% 22.7% 23.5% 12.2 8.0 52.5% Underlying Revenue $128.4 million > Revenue from Enterprise, Health and Professional Services in line with expectations - no material impact from COVID-19 - 66.5% growth in Citadel-IX™, 35.3% growth in Enterprise a highlight > Technology revenues were impacted in Q4 from reduced university spend, down 11% on PCP as a result of COVID-19 > Wellbeing contributed revenue $7.6m, gross profit $5.3m and EBITDA $3.5m. GBP in line with expectations, AUD conversion impacted by FX movements Gross margin of 43.5% 17.0 15.3 11.1% > Margin excluding Noventus of 48.8% - improvement on PCP 2.1 1.0 110.0% 14.9 14.3 4.2% 3.3 3.4 (2.9%) 11.6 10.9 6.4% > Gross margin improves to 47.8% on a pro forma basis and is expected to improve as software growth continues Underlying EBITDA $29.2 million > SG&A increased from $21.8m to $26.5m, with Wellbeing contributing $2.1m and investment in growing in-house capabilities through internal re-structuring and strategic hires and a full year contribution from Gruden and Noventus acquisitions * Refer Appendices for Pro Forma calculation#14о O Balance sheet For personal use only Strong balance sheet supports growth strategy Citadel Group | Investor Presentation | 14 $m FY20 FY19 Change Cash 32.5 14.0 132.1% Trade and Other Receivables 12.2 21.5 (43.3%) Income Accrual 10.0 14.9 (32.9%) Plant and Equipment Intangibles Other Assets Total Assets 1.9 2.1 (9.5%) 263.7 84.6 211.7% 17.0 6.5 161.5% Wellbeing Acquisition > Wellbeing acquired for £103m ($205m), funded by a $34m unconditional placement, a $93m institutional placement and a $90m debt facility > Increase in Intangibles as a result of Goodwill ($135.8m), customer contracts ($31.8m) and software ($15.1m) acquired as part of the Wellbeing transaction Implementation of AASB16 Leases > Other Assets have increased by $10.4m due to recognition of right-of-use assets ($5.1m) as a result of the implementation of AASB16, lease liabilities of $7.8m also recognised Strong Cash and Net Debt Position 337.3 143.6 134.9% > Strong cash position at $32.5m > Debt comprises net bank debt of $80.6m and lease liabilities of $6.4m Debt 87.0 12.0 625.0% Trade and Other Payables > Leverage ratio <1.6x at 30 June 2020*, down from circa 2x at completion of Wellbeing acquisition 22.0 18.7 17.6% > First debt repayment due in October 2020 for circa $3m Other Liabilities 37.4 26.6 40.6% Total Liabilities 146.4 57.3 155.5% Company is well placed to service debt and financing costs and meet all covenant requirements in FY21 Shareholders Equity 190.9 86.3 121.2% Based on actual debt covenant calculation#15☐ Cash flow For personal use only Strong cash from operations reflects shift to recurring, defensive revenue model © Citadel Group | Investor Presentation | 15 $m Opening Cash Cash from Operations FY20 FY19 Change % 14.0 23.9 (41.4%) 22.9 14.7 55.8% Investment in plant and equipment (0.5) (0.6) (16.7%) Investment in intangibles (5.9) (5.6) 5.4% Acquisition of subsidiaries, net of cash (198.2) (2.5) >100.0% > Closing cash position of $32.5m places the Group in a strong position to trade through COVID-19 without any further funding requirements – no JobKeeker payments received in FY20 > Cash used to fund Wellbeing acquisition of $7.5m, on top of capital raise/management rollover of $136.6m and additional debt facility of $72.6m > Operating cashflow up 55.8% as business scales > Cash conversion (Underlying EBITDA to Cash from Operations) 78.4% > Capital expenditure includes $1.6m towards new ERP system Repayment of loans and leases > Intangibles reflect investment in R&D of $4.3m (22.3) (5.3) >100.0% Dividends paid (8.7) (10.5) (17.1%) Proceeds from share issue 132.2 0.0 >100.0% Proceeds from loans 100.3 0.0 >100.0% Discontinued operations 0.0 (0.1) (100.0%) Foreign currency translation (1.3) 0.0 >100.0% Closing cash balance 32.5 14.0 132.1%#16For personal use only Software Segment Update 3 A & ii) IIIII I Citadel Group | Investor Presentation | 16 ° Do ☑#17◇ Citadel Health For personal use only Citadel Group | Investor Presentation | 17 A leading, international clinical workflow and data specialist Purpose and Product > Clinical workflow and data management software for pathology, cancer care, radiology and maternity vertices Revenue and Gross Profit (A$m) 21.2 14.9 15.9 26.8 4.0 > Key operating brands are Auslab™/Evolution™ (Pathology), CHARMⓇ (Oncology/Cancer Care) and Wellbeing (Radiology & Maternity) 19.7 18.3 2.4 1.9 Performance > Acquisition of Wellbeing in line with strategic growth priorities 22.8 > 10-year extension of Queensland Health contract > Some delays in projects impacting margins due to impact of Covid-19, however activity remains robust 16.4 17.3 > ISO 27001 certification Organic Growth Outlook > Growth of CHARMⓇ (Oncology/Cancer Care) > International expansion for pathology and cancer care software into UK market > Exploratory growth of radiology opportunities in Australia FY18 Recurring $26.8 million FY20 Revenue FY19 Non-recurring FY20 ⚫Gross Profit $21.2 million FY20 Gross Profit#18For personal use only لامه Wellbeing Acquisition Update Acquisition reached financial close on 3 April 2020 Funded through a capital raising, expanded debt facilities and existing cash FY20 Underlying Revenue and EBITDA performance in line with expectations On track with acquisition business plan Synergies Program Completed $1.5m cost savings identified and implemented for FY21 100 Day Integration Plan Completed All major actions completed Wellbeing and Citadel Health combined to form a single Health Software division Stephen Lynch appointed GM Health across Australian and UK operations Citadel Group | Investor Presentation | 18#190 For personal use only Enterprise Software Continued expansion of scalable best of class sovereign cloud-based storage and content manager solutions Purpose and Product > Citadel-IXTM - secure cloud-based real-time data information storage and access platform servicing large enterprise and government clients Citadel Group | Investor Presentation | 19 Revenue and Gross Profit (A$m) 8.4 4.3 5.0 20.7 > KapishⓇ - user-friendly software productivity suite that sits over Micro Focus Content Manager allowing for efficient management of documentation warehouses 15.3 8.0 6.1 > Government platforms - provision of government e-procurement and grants management platforms 9.2 4.0 12.7 Performance 9.2 > Citadel-IX revenue up 66.5% on FY19 > Recurring revenue increases from Citadel-IXTM contracts - average contract length 3 years Organic Growth Outlook > Growth of Citadel-IX TM via emerging channel partnership with Micro Focus > Kapish K365 launched Aug 2020 which integrates seamlessly with Microsoft 365 - early sales activity is encouraging > Diversification into analytics and security for government procurement platforms Recurring $20.7 million FY20 Revenue FY19 Non-recurring $8.4 million FY20 -Gross Profit FY20 Gross Profit 5.2 FY18#20For personal use only Services Segment Update 4 A & ii) IIIII I Citadel Group | Investor Presentation | 20 ° Do ☑#21о For personal use only Technology Services World class communication and collaboration technology capability Purpose and Product > Delivering end-to-end secure integrated audio, visual and streaming hardware and software solutions Revenue and Gross Profit (A$m) © Citadel Group | Investor Presentation | 21 10.6 10.4 8.8 35.0 31.0 29.0 Performance > Lower revenue and margins due to impact of Covid-19, particularly in the higher education industry 35.0 > Won first large AV/VC installation contract with multinational construction firm worth $9.7m, commenced May 2020 29.0 31.0 Organic Growth Outlook > Expected increase in activity in the higher education sector, however cautionary spend is anticipated > Targeted sales focus in health care and government sector > Lower margins expected with subdued market activity and expansion into direct-to-builder market $31.0 million FY18 FY19 FY20 Revenue Gross Profit $8.8 million FY20 Revenue FY20 Gross Profit#22◇ Professional Services о For personal use only Continued provision of specialist government and defence contracting services Purpose and Product > Provision of specialist project, contracting and management services for medium to large secure information management networks > Provision of appropriate security-cleared consultants to government Performance > Strong performance of government contracting services > Increase in contracting services into financial sector Revenue and Gross Profit (A$m) 24.7 49.1 12.6 Citadel Group | Investor Presentation | 22 16.6 49.1 31.6 28.2 32.6 11.8 > Extension of large Dept. of Defence document management records contract 17.5 16.4 16.5 Organic Growth Outlook FY18 FY19 > Contracting services growth to continue with expansion into new sectors > Partnership with Lean-IX for enterprise architecture software services Recurring ■Non-recurring $49.1 million FY20 Revenue FY20 -Gross Profit $16.6 million FY20 Gross Profit#23For personal use only Company Outlook 5 A & ii) IIIII I Citadel Group | Investor Presentation | 23 ° Do ☑#24☐ Outlook For personal use only > Pursuing Health cross sell opportunities > Expanding channel partnerships > Increasing Software recurring revenue > Retention of core contracts > Leveraging managed services credentials > Leveraging national security pedigree to broaden Government offering > Strong cash position and cash conversion enables further investment in R&D and M&A > Diversification of Technology into new verticals and building contracts No formal guidance is provided on FY21 given the uncertainty on the impact of COVID-19 which has the potential to impact services more than software Software In our software divisions we are targeting long term top line organic growth of 15%+ per annum Services In our services divisions we are targeting long term top line organic growth of 5-10% per annum Citadel Group | Investor Presentation | 24#25For personal use only Appendices 6 A & ii) IIIII I Citadel Group | Investor Presentation | 25 ° Do ☑#26For personal use only Corporate Timeline 2007 Citadel Group | Investor Presentation | 26 The Citadel Group commenced with Jakeman Business Solutions/ Frontier Group merger to form The Citadel Group ASX Listing The Citadel Group listed on the Australian Stock Exchange Kapish acquisition Micro Focus Content Manager value-add software and services APP acquisition Online anaesthetic billing software and practice management software designed for anaesthetists Noventus acquisition Multi-disciplinary project management, logistics and engineering advisory services 2008 2014 2015 2017 2018 2018 2019 2019 2020 ServicePoint acquisition Leading experts in communication and collaboration solutions PJAS acquisition Specialist health systems and managed services provider Charm acquisition Leading support of specialist Oncology eHealth systems Gruden acquisition Delivers large scale and complex digital business platforms and managed services Wellbeing acquisition Critical software for the practice management of Maternity and Radiology#27◇ About Citadel о For personal use only Our Company Founded in 2007 Listed on ASX in 2014 Operating Structure Two Segments, Four Verticals 1. Software - Health and Enterprise 2. Services - Technology and Professional Services Industry Focus Healthcare Government Regulated Corporates Tertiary Education Experienced Team CEO/MD Co-founder 387 Staff across 6 offices globally Average tenure 4.5 years Long Term Customers We have worked with our top 10 clients for an average of >15 years Motivated Shareholders 9.6% Escrowed Current Executive/Management 12.2% Founders 43.3% Institutional Holders © Citadel Group | Investor Presentation | 27#28о For personal use only Statutory Reconciliation to Underlying FY20 Impact of significant items on Statutory results Underlying Exceptional Deferred $m Total Revenue Gross Profit FY20 transactions revenue Contract adjustment Statutory FY20 128.4 (0.6) (5.7) 122.1 55.8 (0.6) (4.3) 50.9 Gross Profit Margin 43.5% 41.7% EBITDA 29.2 (7.5) (0.6) (4.3) 16.8 EBITDA Margin 22.7% 19.9% Depreciation & Amortisation 12.2 12.2 EBIT 17.0 (7.5) (0.6) (4.3) 4.6 Finance Costs NPBT Tax Expense NPAT from Continuing Operations 2.1 2.1 14.9 (7.5) (0.6) (4.3) 2.5 3.3 (0.4) (0.1) (1.3) 1.5 11.6 (7.1) (0.5) (3.0) 1.0 Net loss from discontinued operations (0.1) (0.1) Net profit for the year 11.5 (7.1) (0.5) (3.0) 0.9 Other comprehensive loss (15.8) (15.8) Total comprehensive income/(loss) (4.3) (7.1) (0.5) (3.0) (14.9) Citadel Group | Investor Presentation | 28 Exceptional transactions $7.5 million > Wellbeing non-capitalised acquisition and integration costs $6.7m > Group restructuring costs $0.7m Deferred revenue $0.6 million > Wellbeing deferred revenue acquired fair value adjustment Contract adjustment $5.7 million > A $5.7 million reversal of a contract asset (income accrual) under AASB 15 that was originally recognised in FY17 and FY18 (of which up to $5 million is expected to be recovered in FY21), and the reversal of an over accrual in respect of a sub-contract of $1.4 million in respect of the same project. The change in accounting treatment arises as a result of the contract no longer being expected to be fully completed and the final payment yet to be agreed.#29For personal use only Underlying Reconciliation to Pro Forma FY20 Impact of Wellbeing acquisition on full year results Underlying Wellbeing 9 Pro Forma $m Total Revenue Gross Profit FY20 months FY20 128.4 22.5 150.9 55.8 16.4 72.2 Gross Profit Margin 43.5% 72.9% 47.8% EBITDA 29.2 9.2 38.4 EBITDA Margin 22.7% 40.9% 25.4% Citadel Group | Investor Presentation | 29 Reconciliation > Underlying FY20 includes 3 months actual Wellbeing trading results under IFRS (includes AASB15 reduction of £41.4k revenue and £34.5k gross profit adjustment for contract unable to be recognised yet under IFRS) > Wellbeing 9 months under UK GAAP Accounting Standards (audited), adjusted for: Estimated AASB15 adjustments (includes AASB15 reduction of £367.1k revenue and £361.9k gross profit adjustment for contract unable to be recognised yet under IFRS) - Estimated AASB16 adjustments (unaudited) - Excluding abnormal expenses prior to acquisition Converted at the monthly average exchange rate as per the RBA#30For personal use only Glossary Citadel Group | Investor Presentation | 30 Citadel's Financial Statements for the year ended 30 June 2020 is presented in accordance with Australian Accounting Standards. Citadel has chosen to include certain non-IFRS financial information to allow investors to relate the performance of the business to the measures used by management and the Board to assess performance and make decisions on the allocation of resources. Non-IFRS and Underlying measures have not been subject to audit or review. Glossary AASB AV/VC CAGR EBIT EBITDA GP M&A NPAT NPBT PCP Pro forma Rev RBA R&D Underlying Australian Accounting Standard Board Audio visual and video conferencing Compound annual growth rate Earnings before interest and tax Earnings before interest, tax, depreciation and amortisation Gross profit Mergers and acquisitions Net profit after tax Net profit before tax Previous corresponding period Indicative annual 12-month equivalence Revenue Reserve Bank of Australia Research and development Financial measure which reflects adjustments for certain non-operating items including acquisition and integration costs, restructure costs, significant non-recurring or one-off items, or fair value adjustments. Underlying represents the same as Adjusted in the 2020 Annual Report (refer page 10 of 2020 Annual Report for details).#31For personal use only Thank you Citadel Group | Investor Presentation | 31#32For personal use only Important Notice © Citadel Group | Investor Presentation | 32 Not an offer The material contained in this presentation is for information purposes only and is intended to be general background information on The Citadel Group Limited (CGL) and its activities and is dated 27 August 2020. It is for information purposes only and is not, and should not be considered to be, an invitation, offer or recommendation to acquire shares or any other financial products. Summary information The information in this presentation is supplied in summary form, is of a general background nature and does not purport to be complete or to provide all information that an investor should consider when making an investment decision. It should be read in conjunction with CGL's periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular, CGL's full year results for the financial year ended 30 June 2020. Not financial product advice This presentation is for information purposes only and it is not financial product nor investment advice (nor tax, accounting or legal advice) nor a recommendation to acquire shares and has been prepared without taking into account the objectives, financial situation or needs of recipients of this presentation. It is not intended that it be relied upon as advice to investors or potential investors, who should make their own enquiries and investigations regarding an investment in CGL and in relation to all information in this presentation (including but not limited to the assumptions, uncertainties and contingencies which may affect the future operations of CGL and the value and the impact that different future outcomes may have on CGL) and before making any investment decisions, should consider the appropriateness of the information having regard to their specific investment objectives, financial situation or particular needs and should seek independent professional advice appropriate to their jurisdiction before making an investment decision. Neither this presentation nor anything contained in it forms the basis of any contract or commitment and no agreement to subscribe for securities will be entered into on the basis of this presentation. CGL is not licensed to provide, and this presentation does not constitute the provision of, investment or financial product advice in respect of CGL's shares. Cooling off rights do not apply to the acquisition of CGL's shares. An investment in CGL shares is subject to investment and other known and unknown risks, some of which are beyond the control of CGL. CGL does not guarantee any particular rate of return or the performance of CGL, nor does it guarantee the repayment of capital from CGL or any particular tax treatment. Financial data All amounts are in Australian Dollars ($ or AUD) unless otherwise indicated. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation. Investors should also be aware that certain financial data included in this presentation including EBITDA and measures described as "pro forma", are "non-IFRS financial information" under ASX Regulatory Guide 230 (Disclosing non-IFRS financial information). The non-IFRS financial information financial measures do not have a standardised meaning prescribed by Australian International Financial Reporting Standards (AIFRS) and, therefore, may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with AIFRS. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS financial measures included in this presentation.#33For personal use only Important Notice Citadel Group | Investor Presentation | 33 Future performance Forward-looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include statements regarding CGL's intent, belief or current expectations with respect to business and operations, market conditions, results of operations and financial conditions, including, without limitation, forecasted economic indicators and performance metric outcomes. This presentation contains words such as 'will', 'may', 'expect', 'indicative', 'intend', 'seek', 'would', 'should', 'could', 'continue', 'plan', 'probability', 'risk', 'forecast', 'likely', 'estimate', 'anticipate', 'believe', or similar words to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. These forward-looking statements reflect CGL's current views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, many instances, beyond the control of CGL, and have been made based upon CGL's expectations and beliefs concerning future developments and their potential effect on CGL. There can be no assurance that future developments will be in accordance with CGL's expectations. A number of important factors could cause CGL's actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including but not limited to, general economic conditions in Australia and other jurisdictions in which CGL or its related bodies corporate operate; exchange rates; competition in the markets in which CGL will operate, the inherent regulatory risks in the businesses of CGL and the duration of the COVID-19 pandemic. Assumptions on which forward-looking statements in this presentation are based may or may not prove to be correct and there can be no assurance that actual outcomes will not differ materially from these statements. None of the Associated Persons nor any other person referred to in this presentation makes any representation as to the accuracy or likelihood of fulfilment of the forward-looking statements or any of the assumptions upon which they are based. When relying on forward-looking statements to make decisions with respect to CGL, investors and others should carefully consider such factors and other uncertainties and events. CGL is under no obligation to update any forward-looking statements contained in this presentation, as a result of new information, future events or otherwise, after the date of this presentation. As such, undue reliance should not be placed on any forward-looking statement. Past performance information given in this presentation is given for illustrative purposes only and is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood or achievement or reasonableness of any forward-looking statements. Disclaimer No representation or warranty, express or implied, is made as to the accuracy, completeness, reliability or fairness of the information, opinions and conclusions contained in this presentation. Any information in this presentation is made only at the date of this presentation, and opinions expressed reflect CGL's position at the date of this presentation, and are subject to change. CGL is under no obligation to update this presentation. Neither CGL, its related bodies corporate, shareholders or affiliates, nor any of their officers, directors, employees, affiliates, agents, contractors, advisers or any other associated persons (collectively, "Associated Persons") represents or warrants in any way, express or implied, that the information, opinions, conclusions or other information contained in this presentation, any of which may change without notice, is fair, accurate, complete, reliable, up to date or correct. CGL does not represent or warrant that this presentation is complete or that it contains all material information about CGL or which a prospective investor or purchaser may require in evaluating a possible investment in CGL or an acquisition or other dealing in CGL shares. To the maximum extent permitted by law, CGL and its Associated Persons each expressly disclaims and excludes all direct, indirect, consequential or contingent loss, damage or liability (including, without limitation, any liability arising from fault or negligence) that may arise from, or is connected to, this presentation, or the use of this presentation, or any other written or oral information provided by or on behalf of CGL.