Acrow Formwork and Construction Services : 2021 Annual General Meeting - Address and Presentation

For personal use only

ASX:ACF

Acrow Formwork and Construction Services Limited

C/- Level 5, 126 Phillip Street

Sydney NSW 2000

ASX Release

22 November 2021

2021 Annual General Meeting - Chairman's Address and CEO Presentation

Acrow Formwork and Construction Services Limited (ASX:ACF) ("Acrow" or the "Company") is pleased to attach the following documents to be presented at its 2021 Annual General Meeting being held at 11am (AEDT) today:

• Chaiman's Address
• CEO's presentation

This release was approved by the Acrow Board of Directors.

-ENDS-

About Acrow

Acrow is a leading hirer of formwork and scaffolding systems to large construction and civil infrastructure providers across Australia, operating a network of formwork and scaffolding branches in six states and employing approximately 245 people. The business services a diversified customer base of approximately 1,300 customers.

Acrow has a high quality and versatile portfolio of assets and has identified a number of near-term growth opportunities, most particularly through the investment in capital equipment to take advantage of a range of opportunities in the growing East Coast civil infrastructure market, particularly in New South Wales and Victoria where the business is still underrepresented.

For further information, please contact:
Steven Boland	Andrew Crowther
Managing Director	Chief Financial Officer
Ph: [phone]	Ph: [phone]

Acrow Formwork and Construction Services Limited

Page 1

For personal use only

ASX:ACF

Acrow Formwork and Construction Services Limited

C/- Level 5, 126 Phillip Street

Sydney NSW 2000

Acrow Chairman's Address

Good afternoon ladies and gentlemen,

I am Peter Lancken, Chairman of the Board and on behalf of Acrow Formwork and Construction Services, I welcome you to the 2021 Annual General Meeting.

During FY21, Acrow continued on its journey of becoming the leading provider of engineered formwork sales and hire equipment to the civil infrastructure markets, and the leading engineered scaffold solutions provider in Australia.

Despite the disruptions caused by the COVID-19 pandemic to the general economy, Acrow delivered another year of strong financial results in FY21. Revenue was up 22% to $106 million and pre-tax profit was up 35% to a record $10.2 million. As a result, the Board declared a final dividend for the year of 1.15 cents per share, bringing total dividends for the year to 1.90 cents per share, fully franked, up 81% on the previous year.

Much of this continued success is the result of two transformational acquisitions over the last three years, which have significantly strengthened and expanded our business, providing Acrow with a broad suite of formwork, scaffold, screening products and engineering services to the construction and industrial maintenance markets. The business was particularly enhanced with the acquisition of Uni-Span in 2019, which also provided Acrow with an exclusive distribution arrangement with ULMA, a leading global manufacturer and supplier of formwork, shoring, and temporary scaffolding systems.

In addition, the acquisition of Uni-span provided Acrow with the building blocks to develop a complementary new business vertical, Industrial Services, at the time a nascent, primarily Queensland centric business. During FY21, the Industrial Services business expanded its operations with contract wins in New South Wales, South Australia, and Tasmania and successfully entered new market segments, including providing engineered scaffold solutions for shut-down maintenance work for power utilities, mining operations, and other large manufacturing sectors. This resulted in a doubling of sales revenue during the year. Notwithstanding this, the future potential for this business remains substantial as we continue our push into these new markets and new market segments.

Much of Acrow's success is also due to the depth and talent of the entire Acrow team, from back office services, to sales & marketing, relationship management, supply side management, logistics and our engineers, all working together to deliver solutions which differentiate our products and services and help build on our reputation and success across our market segments. Securing contracts on flagship projects such as Melbourne Metro Rail, Brisbane Cross River Rail, Bruce Highway, and Snowy Hydro to name a few is a testament to the strength of our team, products, and service offering.

Our businesses all share an entrepreneurial and customer-focused culture, and teamwork across these business units has provided numerous opportunities to cross-sell our expanded product suite and engineering capabilities. Notably, during this period of growth, we have been careful to maintain a prudent capital management approach, only building on our portfolio of assets, subject to a rigid investment principle of achieving a minimum 40% return on investment during the first year of purchase.

After the balance date, we raised $10.5 million through a placement at 38 cents per share to fund growth opportunities in our industrial services and civil formwork businesses. I would like to acknowledge the support of our existing and new shareholders who believe in our business and helped make this capital raise successful. This new capital places us in a strong position to take advantage of the large pool of opportunities in the industrial services sector and the transport infrastructure construction boom currently underway.

As Acrow evolves we have ensured that our Board is refreshed with the skills and experience required to guide our future development. I would like to thank Josh May, who retired from the board in October 2020 and acknowledge Gregg Taylor and Margaret Prokop for their service. Gregg will retire after this Annual General Meeting and Margaret on December 31, 2021.

It is a pleasure to welcome to the Board two new directors, Melanie Allibon and Laurie Lefcourt. Melanie joined us on 1 September 2021, and is an experienced global people manager and company director, having held executive level human resources roles at Pacific Brands, Seven Group, and Newcrest. Melanie is also currently a non-executive director of ASX- listed Boom Logistics.

Effective 1 October 2021, Laurie Lefcourt, an experienced non-executive director and senior finance executive, also joined our Board. She has held senior finance roles at Queensland Rail and Rio Tinto and is currently a non-executive director of ASX-listed Tamawood and Advance Nanotek.

Acrow Formwork and Construction Services Limited

Page 2

For personal use only

ASX:ACF

Acrow Formwork and Construction Services Limited

C/- Level 5, 126 Phillip Street

Sydney NSW 2000

In closing, on behalf of the Board, I would like to express my gratitude to Steven Boland, his leadership team, Acrow's dedicated team of employees, our suppliers, our clients, and our shareholders for the part they have all played in Acrow's success to date.

As we embark on what is projected to be a long-lived civil infrastructure construction cycle, with spending currently estimated to be more than $100Bn over the next five years, we are excited about the future for the Company. Due to our innovative engineering, formwork & scaffolding expertise, and broad product suite, we believe Acrow is well-positioned for many years of continued growth.

Thank you

Peter Lancken

Acrow Formwork and Construction Services Limited

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onlyAcrow Formwork & Construction Services Limited

usepersonalAnnual General Meeting

CEO ADDRESS AND TRADING UPDATE

Chief Executive Officer - Steven Boland

22 November 2021

Hassall Street, Parramatta r

CEO Address - 2021 AGM

Ph: [phone]

Ph: [phone]

Steven Boland Managing Director

Andrew Crowther Chief Financial Officer

IMPORTANT NOTICE

This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepared as of its date and remains subject to change without notice. This presentation has been provided to you solely for the purpose of giving you background information about Acrow Formwork and Construction Services Limited ("Acrow").

onlyNo representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. Neither Acrow, its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers makes any representations or warranties that this presentation is complete or that it contains all material information about Acrow or which a prospective investor or purchaser may require in evaluating a possible investment in Acrow or acquisition of shares. To the maximum extent permitted by law, none of those persons accept any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation. Acrow has not independently verified any of the contents of this presentation (including, without limitation, any of the information attributed to third parties). No person is under any obligation to update this presentation at any time after its release to you.

Certain statements in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. Forward looking statements can generally be identified by the use of forward-looking words such as, "expect", "anticipate", "likely", "intend",

use"should" , "could", "may", "predict", "plan", "propose", "will", "believe", "forecast", "estimate", "target" and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements.

Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance. Nothing contained in this presentation, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in Acrow and neither this presentation nor any of the information contained herein shall form the basis of any contract or commitment. In particular, this presentation does not constitute an offer to sell, or a solicitation of an

personaloffer to buy, any securities in the United States.

This presentation may not be reproduced or redistributed to any other person.

In receiving this presentation, each recipient agrees to the foregoing terms and conditions.

This Presentation was approved by the Acrow Board of Directors

For further information please contact:

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