#1ASX ANNOUNCEMENT 25 February 2022 Investor Presentation APM Human Services International Limited (ASX: APM; "APM" or "the Company") provides the attached investor presentation to be presented at 12pm (AEDT) today 25 February 2022. Presenting will be Megan Wynne (APM Executive Chair), Michael Anghie (APM Group CEO) and Steve Fewster (APM Group CFO). Ends Authorised for release to the ASX by the Company Secretary of APM Human Services International Limited. For further information please contact: Investors Matthew Cooper Investor Relations Manager E: [email protected] P: +61-403 604 915 Media Adrian Bradley General Manager - Corporate Affairs E: [email protected] P: +61-2 6214 8800 Ronn Bechler Market Eye E: [email protected] P: +61-400 009 774 For personal use only About APM Founded in 1994 in Perth, Western Australia, APM is an international human services provider with the purpose of "Enabling Better Lives". Each financial year, APM supports more than 1 million people of all ages and stages of life through its service offerings that include assessments; allied health and psychological intervention; medical, psycho-social and vocational rehabilitation; vocational training and employment assistance; and community-based support services. With over 1,000 sites spanning 11 countries (Australia, United Kingdom, Canada, United States of America, New Zealand, Germany, Switzerland, Sweden, Spain, Singapore, and South Korea), APM's more than 9,000 team members work to enhance community health and wellbeing, delivering services to clients across the early childhood, youth, employment, insurance, justice, veterans, disability, and aged care sectors. For further information please visit: https://apm.net.au 1 APM enabling better lives#2APM enabling better lives H1 FY22 Results Presentation 25 February 2022 For personal use only ASX: APM#3For personal use only Overview Today's presenters • • Megan Wynne Executive Chair & Founder Occupational Therapist Founded APM in 1994 Michael Anghie Group CEO Joined APM in 2018 as CEO Held senior leadership roles at global professional services firm Ernst & Young with a M&A background Steve Fewster Group CFO Joined APM in 2021 as CFO • Previous CFO roles at WesTrac, iiNet and Southern Cross Electrical Engineering 2 | H1 FY22 Results Presentation • Today's H1 FY22 agenda • Highlights • Delivering on our promises Strong financial performance • Positive outlook, increased pro forma FY22 NPATA guidance APM enabling better lives#4For personal use only 3 H1 FY22 Results Presentation APM O AM H1 FY22 highlights APM enabling better lives#5For personal use only 4 APM delivered strong H1 FY22 revenue and earnings growth Revenue $613.7m 129%pcp Pro forma EBITDA1 $138.8m 17%pcp Pro forma operating cash2 $138.4m 118%pcp Net Leverage³ 1.8x Statutory NPATA Pro forma NPATA¹ $77.0m 138%pcp $(16.6)m Includes one off non-recurring expenses associated with the IPO and debt refinancing as outlined in the Prospectus (1) Pro forma excludes one off non-recurring expenses associated with the IPO and debt refinancing as outlined in the Prospectus (see slide 24 for a reconciliation of EBITDA and slide 25 for a reconciliation of statutory NPATA). (2) Pro forma operating cash (statutory operating cash adding back cash income tax paid, net finance costs and one-off IPO advisor fees. (3) Net leverage reflects net debt (including lease liabilities) divided by last twelve-month pro forma EBITDA to 31 December 2021 H1 FY22 Results Presentation APM enabling better lives#6For personal use only Executing our growth strategy Lil Grow existing businesses ✓ Successfully mobilised Restart program ✓ Commenced Residential Aged Care Assessments (RACA) contract ✓ Expanded US business to 24 states and into Job Corp market ✓ Talent acquisition and retention ✓ Mobilise Rehabilitation Services and Vocational Assistance Program for Veterans ✓ Investment in systems and technology Integrate and scale M&A Pursue new markets ✓ Lifecare (Allied Health & In-home care) ✓ Expansion of Allied Health services ✓ Clustera (Swedish Employment Services) ✓ Disability and aged care ✓ Early Start Australia (Early Childhood Early Intervention Therapy) ✓ Mobility (digital platform) ✓ MyIntegra (Plan Management and Support Coordination) ✓ Launched Employable ME (digital platform) ✓ Seek and convert new market opportunities (both local and international) ✓ Dynamic Workforce Solutions ✓ Generation Health ✓ 11 key leadership appointments 5 H1 FY22 Results Presentation APM enabling better lives#7For personal use only APM is making a positive and lasting social impact >1,000,000 >660,000 people supported Jobseekers assisted > 180,000 people with a disability supported (>90,000 assisted into work) > 100,000 people with mental health needs supported III ☆ >30,000 veterans supported (800) 19% of our people have a lived experience with disability > 50% of our leaders are female Published 2022 APM Disability Diversity & Inclusivity Index of Australian Workplaces (Australia, December 2021) P Published 2021 WCG National Employment Index (Canada, October 2021) 8 Cyber security framework compliance to ISO27001 Information Security Management Standards 6 | H1 FY22 Results Presentation APM enabling better lives#8For personal use only 7 |H1 FY22 Results Presentation APM H1 FY22 business overview APM enabling better lives#9For personal use only 8 Australia Services we deliver Support Jobseekers to gain meaningful employment Allied Health and vocational rehabilitation Mental health and wellbeing support Assessment services, aged care and disability support • Early childhood early intervention services Community care • NDIS plan management and support coordination Vocational training Digital solutions platforms for employment and on demand homecare services | H1 FY22 Results Presentation • • • . Revenue¹ $260.9m $300.2m NPATA¹ H1 FY21 H1 FY22 $56.0m $42.0m H1 FY21 H1 FY22 Delivered strong performance across challenging market conditions Growth in demand for vocational training and mental health support services Commencement of Residential Aged Care Assessments Completed acquisitions: Generation Health . • Early Start Australia and Lifecare expands Health & Wellbeing business MyIntegra and Mobility provide the key entry points into NDIS and Aged Care sectors (1) Revenue and NPATA are presented on a pro forma basis, refer slide 25 for a reconciliation with statutory accounts. Key adjustments relate to the IPO and the debt refinance in July 2021. APM enabling better lives#10For personal use only Europe 米+ Services we deliver Support Jobseekers to gain meaningful employment Training and vocational support Mental health and wellbeing support Health programs Youth programs Community support services Revenue $120.3m 6 | H1 FY22 Results Presentation • • $176.1m H1 FY21 H1 FY22 NPATA1 $4.7m $13.8m H1 FY21 H1 FY22 Employment services benefit from UK economic recovery Successful mobilisation of Restart contract - delivering in line with expectations Recommencement of summer National Citizens Service Youth contract Swedish market entry through acquisition of Clustera (1) No pro forma adjustments in the Europe segment. APM enabling better lives#11North America Services we deliver Support Jobseekers to gain meaningful employment Training and vocational assistance Allied Health and vocational rehabilitation For personal use only 10 | H1 FY22 Results Presentation • • • Revenue $98.3m $50.2m H1 FY21 H1 FY22 NPATA¹ $3.4m H1 FY21 Acquisition and integration of DWFS (US) and entry into Job Corp market • Expanded US operations to 24 States Ontario employment contract fully operational H1 FY22 On track for January 2023 start-up of Rehabilitation Services and Vocational Assistance Program for Veterans (Canada) (1) No pro forma adjustments in the North America segment. $4.2m H1 FY22 APM enabling better lives#12Asia Pacific Services we deliver Support Jobseekers to gain meaningful employment Outplacement services Allied Health and vocational rehabilitation For personal use only 11 | H1 FY22 Results Presentation • • Revenue $41.7m $38.8m H1 FY21 H1 FY22 NPATA¹ $5.9m $3.1m H1 FY21 H1 FY22 Temporary impact of COVID-19 lockdowns in New Zealand and Korea Contract renewal with Ministry of Employment and Labour (MOEL) success package in Korea • Growth in participants in Singapore (1) No pro forma adjustments in the Asia Pacific segment. APM enabling better lives#13For personal use only 12 TH1 FY22 Results Presentation H1 FY22 financial performance APM enabling better lives#14Strong growth in revenue and earnings A$m Revenue Pro forma EBIT¹ Pro forma profit before tax (PBT) Pro forma profit after tax (NPAT) 2 H1 FY22 H1 FY21 Growth 613.7 475.9 29% 81.1 66.3 22% . 62.5 49.5 26% 51.0 30.5 67% • Pro forma NPAT before amortisation (NPATA) 3 77.0 56.0 38% For personal use only Statutory NPATA (1) Earnings before income tax (EBIT) (2) Refer slide 24 for a reconciliation of pro forma NPAT to statutory NPAT (3) Refer slide 25 for a reconciliation of pro forma NPATA to statutory NPATA 13 |H1 FY22 Results Presentation (16.6) 24.9 (167)% Revenue up 29% to $613.7m 65% of revenue growth is organic Underpinned by growth in employment services and new acquisitions Partially offset by COVID impact on APAC business Pro forma EBIT up 22% to $81.1m • Benefits of scale EBIT split between H1 and H2 is in line with Prospectus forecast H2 will benefit from the maturation of Restart contract, opening of global markets and continued contribution from acquisitions. Pro forma NPATA up 38% to $77.0m Effective tax rate of 22% in line with Prospectus forecast APM enabling better lives#15Strong growth in operating cashflows A$m H1 FY22 H1 FY21 Growth Statutory operating cash flow 80.0 111.7 (28%) Add: IPO deal costs in operating cash flow 20.9 (0.0) Add: Net finance costs paid (0.0) (0.0) Add: Net income taxes paid 37.5 5.7 Pro forma operating cash flow¹ 138.4 117.4 18% Pro forma EBITDA² 138.8 119.1 17% Pro forma EBITDA cash conversion³ 100% 98% For personal use only Statutory cash flow Operating cash flow Investing cash flow Financing cash flow Net increase / (decrease) in cash Opening cash (including FX differences) Closing cash 14 |H1 FY22 Results Presentation 80.0 111.7 (113.6) (31.1) 148.1 (46.4) 114.5 34.2 106.8 221.3 28.9 63.1 . Pro forma operating cashflow up 18% to $138.4m Underpinned by EBITDA growth in H1 FY22 • Investing cashflow of $113.6m supports growth strategy Acquisitions of Generation Health, DWFS, Early Start Australia, MyIntegra and Mobility - $76.4m Capex driven by Restart mobilisation, IT fleet and security upgrades - $37.2m Financing cash flows of $148.1m Includes proceeds of $343.5m from the IPO and debt repayments of $161.9m Interest payments down $10.6m following July 2021 debt refinance, IPO and debt repayment (1) pro forma operating cash (statutory operating cash adding back cash income tax paid, net finance costs and one-off IPO advisor fees) (2) Earnings before interest, tax, depreciation and amortization, refer slide 24 for a reconciliation of pro forma EBITDA (3) Cash conversion reflects pro forma operating cash (statutory operating cash adding back cash income tax paid, net finance costs and one-off IPO advisor fees) divided by pro forma EBITDA. APM enabling better lives#16For personal use only Sound balance sheet supports growth initiatives A$m 31-Dec-21 30-Jun-21 Cash Trade and other receivables Accrued revenue Prepayments 221.3 86.8 106.8 87.5 131.3 16.7 100.7 19.8 Total current assets 456.0 314.8 Property, Plant & Equipment Right-of-use Assets 53.2 30.3 Intangible assets 73.4 1,876.3 75.7 1,729.6 Other non-current assets 17.6 7.6 Deferred tax assets 9.9 14.6 Total non-current assets 2,030.4 1,857.8 • Trade and other payables (52.0) (52.5) Operating activities and net IPO proceeds increased cash balance by $114.5m • Working capital (excluding tax) down $18.8m • Intangibles up $146.7m due to business acquisitions, partially offset by amortisation of customer contracts Shareholder loans converted to equity as part of the IPO • • Net debt excluding property leases down $1.2bn Leverage of 1.8x pro forma EBITDA1 (including lease liabilities) Accrued expenses (81.1) (62.0) Interest bearing liabilities (41.7) (31.4) Current tax liabilities (9.2) (29.5) Deferred revenue Provisions Total current liabilities Interest bearing liabilities Shareholder loans Deferred tax liabilities Provisions Other non-current liabilities Total non-current assets (104.5) (78.2) (30.6) (28.6) (319.1) (282.3) (633.0) (757.8) 0.0 (965.5) (73.3) (99.0) (27.6) (20.3) (28.3) (4.1) (762.1) (1,846.7) Net Assets 1,405.2 43.6 15 |H1 FY22 Results Presentation (1) Leverage reflects net debt (including lease liabilities) divided by last twelve-month pro forma EBITDA to 31 December 2021 APM enabling better lives#17For personal use only H1 FY22 Results Presentation Positive outlook; Prospectus FY22 forecasts reaffirmed APM enabling better lives#18For personal use only 17 Market fundamentals underpinning long term growth Structural changes in labour markets Increased government focus on quality, performance, trusted partnerships and service consistency across geographic markets Focus on prevention of injury and illness and early intervention across health and wellbeing sector Widening social and economic inequality P& Increasing mental health and disability awareness Ageing populations, increased longevity and more complex health care needs |H1 FY22 Results Presentation APM enabling better lives#19APM is well positioned to deliver strong sustainable growth H2 FY22 priorities • Increase scale in priority programs ⑤• Integrate and invest in recent acquisitions For personal use only · Position APM for growth in new contracts Seek and convert new market opportunities • Reaffirm prospectus FY22 forecasts and increase full year guidance to incorporate acquisitions Recent contract wins, and acquisitions in the past 12 months provide a foundation for growth Prospectus FY22 forecasts reaffirmed based on H1 FY22 performance. Increased full year FY22 guidance to $157.6m pro forma NPATA from prospectus forecast of $155.1m pro forma NPATA driven by Lifecare and Clustera acquisitions contributing $2.5m NPATA to H2 FY22 earnings Directors intend to pay a final dividend of between 40% and 60% of NPATA generated in the period 1 January 2022 to 30 June 2022 18 | H1 FY22 Results Presentation APM enabling better lives#20For personal use only 19 In closing Market leading provider of health and human services across multiple geographies APM makes a positive and lasting social impact for the people, communities, and governments it supports Founder led, experienced management team with strong performance culture – proven ability to deliver - Exposure to large addressable markets that are resilient through economic cycles with inelastic demand and favourable industry dynamics Historically long-tenured contracts with cross-party government support for social welfare expenditure Opportunities for future growth, building on track record of historical organic growth and strategic acquisitions Consistently delivering strong outcomes for clients and customers, underpinned by its origins in Allied Health Reaffirm prospectus FY22 forecasts and increase full year guidance to incorporate acquisitions |H1 FY22 Results Presentation APM enabling better lives#21For personal use on 20 |H1 FY22 Results Presentation Questions APM enabling better lives#22For personal use only 21 | H1 FY22 Results Presentation Appendix APM enabling better lives#23For personal use only APM's service offering B Q. Employment Services Delivery of services to individuals who require support to find work, including those with injury, illness or disability, sole parents, youth, aged workers, ex-offenders, and people from culturally or linguistically diverse backgrounds Health and Wellbeing Delivery of government, insurance and corporate health programs focused on prevention, rehabilitation (medical, psycho- social and vocational), Allied Health and psychological intervention services Communities and Assessment APM works with individuals to develop support plans for funded and non-funded support. Also operates community-based programs including youth, justice, and veterans' services Disability and Aged Care Support Services Support services catering to the disability and aged care sectors with services including plan management, support coordination and an on-demand home care services market place AUS, NZ, UK, North America, Europe, Asia AUS, NZ, UK, Canada % PF FY22F revenue 76% 22 22 H1 FY22 Results Presentation AUS, NZ, UK 17% 5% AUS 2% APM enabling better lives#24For personal use only Revenue model Revenue Model Relevant Business Segments Service fee Outcome fee / payment by results or milestone Cost reimbursement and cost plus Fixed fee Fee for service 23 23 H1 FY22 Results Presentation +) (C+ 20 5 N Q • Description Initial fee for commencing and working with referrals, completing intake, assessing and providing advice. Service fees are generally a fixed amount Can vary by individual due to the assessed level of difficulty to place each individual client into employment • • Received after a client has been placed into a job, and then again at milestones after a client has sustained employment. The outcome fee may be based on the length of sustained employment (e.g. Australia), achieving an earnings threshold (e.g. UK) or achievement of a milestone (e.g. NDPP or NCS in UK) Can vary by individual due to the assessed level of difficulty to place that individual into employment ch • • Typically reimbursed for costs incurred to deliver the services and can include an allowance for providers to make a profit on the costs of providing the services. The profit is typically calculated as a specified percentage of direct costs Typically refers to an agreed amount that is fixed at the start of the contract and does not adjust with changes in volumes Based on delivery of a service. Fee typically based on hourly rates, per assessment, per counselling session, per training program - + c² Employment Services Health and Wellbeing Legend: Communities and Assessment Disability and Aged Care Support Services APM enabling better lives#25For personal use only Reconciliation of pro forma to statutory EBITDA and NPAT Reconciliation to Statutory Results A$m Pro forma EBITDA IPO listing costs Extinguish pre-IPO MEP plan Foreign exchange impact on US debt Employee IPO Gift Total EBITDA Adjustments Statutory EBITDA Pro forma NPAT IPO listing costs Extinguish pre-IPO MEP plan Foreign exchange impact on US debt Employee IPO Gift Debt refinance - July 2021 Reverse pre-IPO bank interest Capital structure on IPO Shareholder interest expense Tax effect of adjustments Total NPAT Adjustments Statutory NPAT Note H1 FY22 H1 FY21 138.8 1234 (27.9) (10.5) 119.1 (12.9) 4 (5.1) (56.5) 82.4 - 13.3 132.4 13.3 1. IPO listing costs - advisor costs relating to the IPO Offer. 2. Extinguish MEP plan - As a result of the Offer, the Management Equity Plan was fully vested and expensed in the income statement. 3. FX impact on US debt - impact of FX fluctuations on USD denominated debt. 4. IPO gift - on IPO, APM offered a gift of Shares to qualifying employees. 5. Debt refinance – expense associated with APM's refinance of the first and second lien term loan facility to an all first lien facility in July 2021. 6. Capital structure – proceeds from the IPO were used to pay down debt and subsequently reduce the interest expense. This adjustment assumes the go forward capital structure was in place for the entire period reported. 7. Shareholder interest – removing historical interest expense relating to the non-redeemable preferences (Series A) shares which converted to ordinary equity on IPO. 8. Tax effect - recognise the tax effect of the abovementioned adjustments (note: shareholder interest expense is non- deductible for Australian tax purposes). 51.0 30.5 1234 (27.9) (10.5) (12.9) 13.3 (5.1) 56 (24.7) 6 (18.1) (28.3) 6 14.7 14.7 7 (28.3) (35.9) 8 19.2 5.1 (93.6) (31.1) (42.7) (0.6) 24 |H1 FY22 Results Presentation APM enabling better lives#26Reconciliation of pro forma to statutory NPATA by segment Reconciliation to Statutory Results A$m Australia Europe North America Asia Pacific Pro forma NPATA Note H1 FY22 H1 FY21 56.0 42.0 1. Refer previous slide for a breakdown and description of the adjustment. All of which relate to the Australian segment. 13.8 4.7 4.2 3.4 3.1 5.9 77.0 56.0 For personal use only Australia Europe North America Asia Pacific Total NPATA Adjustments Australia Europe North America Asia Pacific Statutory NPATA 25 25 H1 FY22 Results Presentation 1 (93.6) (31.1) (93.6) (31.1) (37.7) 10.9 13.8 4.7 4.2 3.4 3.1 5.9 (16.6) 24.9 APM enabling better lives#27For personal use only 26 Glossary APAC CEO CFO Asia Pacific Region MOEL Ministry of Employment and Labour (Korea) Chief Executive Officer NPATA Net profit after tax and amortisation Chief Financial Officer NPAT Net profit after tax COVID Coronavirus NDIS National Disability Insurance Scheme CRS Concussion Rehabilitation Services (New Zealand) PBT Profit before tax DWFS Dynamic Workforce Solutions pcp Previous corresponding period EBITDA Earnings before interest, tax depreciation and amortisation PMET Professionals, Managers, Executives and Technicians EBIT FY22 Earnings before interest and tax RACA Residential Aged Care Assessments Financial year ended 30 June 2022 TANF H1 FY21 Period 1 July 2020 to 31 December 2020 VRS H1 FY22 Period 1 July 2021 to 31 December 2021 WIOA Temporary Assistance for Needy Families (US) Vocational Rehabilitation Services (New Zealand) Workforce Innovation and Opportunity Act (US) H2 FY22 IPO M&A Period 1 January 2022 to 30 June 2022 Initial Public Offering Mergers and Acquisitions |H1 FY22 Results Presentation APM enabling better lives#28For personal use only 27 Important notice and disclaimer This presentation has been prepared by APM Human International Services Limited ACN 639 621 766 (Company). This presentation contains summary information about the Company and its subsidiaries (Group) and the business conducted by the Group as at 25 February 2022. The information in this presentation is general information and in summary form and does not purport to be complete or comprehensive. This presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange. This presentation is not and should not be considered, and does not contain or purport to contain, an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Company (Securities) nor does it constitute financial product or investment advice (nor taxation or legal advice) nor take into account your investment objectives, taxation situation, financial situation or needs. This presentation does not constitute an advertisement for an offer or proposed offer of Securities. Neither this presentation nor anything contained in it shall form the basis of any contract or commitment and it is not intended to induce or solicit any person to engage in, or refrain from engaging in, any transaction nor is it intended to be used as the basis for making an investment decision. The material contained in this presentation may include information, data, estimates and projections derived from publicly available sources or other third party sources that have not been independently verified by the Company. No representation or warranty is made as to the accuracy, completeness, or reliability of the information. Estimates and projections involve risks and uncertainties and are subject to change based on various factors. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of the Group and conduct its own investigation and analysis. The information in this presentation is subject to change without notice. The Company has no obligation to update or correct this presentation, except as required by law. A number of figures, amounts, percentages, estimates and calculations of value 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. All dollar values are in Australian dollars (A$), unless otherwise stated. The operating and historical financial information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company's views on the Group's future performance or condition. You should note that past performance of the Group cannot be relied upon as an indicator of (and provides no guidance as to) future Group performance. This presentation may contain forward-looking statements with respect to the operations and businesses of the Group. Forward-looking statements can generally be identified using words such as "may", "will", "would", "could", "expects", "intends", "anticipates", and other similar words that involve risks and uncertainties. The assumptions underlying these forward-looking statements involve circumstances and events that have not yet taken place, and which are subject to uncertainty and contingencies outside the Group's control. Readers are cautioned not to place undue reliance on any forward-looking statements. The Group does not undertake any obligation to publicly release the result of any revisions to forward-looking statements in this presentation or to otherwise update forward-looking statements, whether as a result of new information, future events, or otherwise, after the date of this presentation, except as required by law. To the fullest extent permitted by law, no representation or warranty (expressed or implied) is given or made by the Company, its subsidiaries, or its respective directors, officers, employees, agents or consultants nor any other person in relation to the accuracy or completeness of all or any part of this presentation and no responsibility for any loss arising in any way (including by negligence) from anyone acting or refraining from acting as a result of the material contained in this presentation is accepted by the Group. |H1 FY22 Results Presentation footprints footprints APM enabling better lives#29Contact us For further information please contact: Investors Matt Cooper Investor Relations Manager E: [email protected] P: +61-403 604 915 Ronn Bechler Executive Chairman, Market Eye E: [email protected] P: +61-400 009 774 For personal use only Media Adrian Bradley General Manager - Corporate Affairs E: [email protected] P: +61-2 6214 8800 Tristan Everett Executive Director, Market Eye E: [email protected] P: +61-403 789 096 28 | H1 FY22 Results Presentation APM enabling better lives