1H22

Financial Results

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24 February 2022

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This document and the contents of this presentation (together the Presentation) has been prepared by Millennium Services Group Limited (ACN 607 926 787) (the Company or Millennium).

The Presentation contains general summary information about Millennium's business and activities which is current at the date of the Presentation. The information should not be considered comprehensive or complete and has not been independently verified. It has been prepared without taking account of any person's financial situation, objectives or particular needs. It does not comprise investment, taxation, legal or other advice. Any person reading the Presentation must make an independent assessment of its contents and seek independent financial, taxation, legal or other advice, appropriate to their own circumstances.

The Presentation is not and should not be considered to be an offer or invitation to acquire securities. It is not a prospectus, product disclosure statement or other disclosure document under Australian law or the law of any other jurisdiction. It does not comprise investment advice or a recommendation to acquire or dispose of any securities in Millennium.

Millennium and its related bodies corporate (and each of their respective directors, officers, agents, employees and advisers) have used reasonable endeavours to ensure that the information contained in the Presentation is not misleading but they make no representation or warranty as to the accuracy, reliability or completeness of the information or opinions contained in the Presentation. To the maximum extent permitted by law, they disclaim all liability arising from all loss of any kind which a person may sustain as a result of reliance on the Presentation.

Unless otherwise stated, all dollar values in this Presentation are Australian dollars ($AUD).

The Presentation contains forward looking statements, including projections and opinions (Forward Statements). These are indicated where words such as "expected", "may", "intend", "likely", "should", "plan", "forecast", "estimate", "consider", "believe", "anticipate", or similar words are used. The Forward Statements are based on assumptions, statements of current intention and opinion and predictions as to possible future outcomes as at the date of this Presentation. The actual outcomes may differ materially from the Forward Statements, based on changes in circumstances, events, risks and general economic conditions.

Statements about past performance do not represent a guide to future performance (and should not be relied upon as such) and are given for illustrative purposes only.

This Presentation should be read in conjunction with Millennium's other periodic and continuous disclosure announcements which are available at www.asx.com.au

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Performance

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Detailed

Financials

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Business Support

Growth

Update

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Outlook

Appendices

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1H22 Highlights.

Strong underlying profitability with balance sheet repair well underway

  • $1.9m NPAT has returned Balance Sheet to a positive net asset position
  • Underlying EBITDA of $6.7m down 4.3% from pcp of $7.0m
  • Stable gross margin at 15.9% on slight decline in revenue
  • Acquisition of Codee Cleaning Services for $1.1m in December provides growth and diversification opportunities
  • Continuing diversification of Contract book, buoyant Adhoc and project work and $70m pa of new revenue currently in tender (with success rates typically around 12%)
  • Available marketplace opportunities provide a very positive Outlook

Safety

  • 1H22 lost time injury frequency rate is 45% lower than FY21 and 79% lower than the industry benchmark. This is now the second consecutive year that we have achieved a significant reduction in injury frequency rate.

Customers

  • Customers emerging from COVID-19 creating further opportunities for business development in Cleaning, Security and Integrated Service offerings. Millennium is being invited to tender on increasing range of sectors. Extremely high rate and dollar value of contracts being renewed.
  • All customer contracts have rise and fall or labour cost pass through clauses as protection against inflationary wage pressures

Compliance

  • Second annual Modern Slavery Statement submitted in December 2021
  • Work Health, Safety (WHS) Framework review initiated by People & Risk Committee in Q4 2021 - focussed on systemic continuous improvement opportunities
  • HR information management system implemented ensuring a central, single point of employee data and standardised administration of key people processes. This system interfaces with our Time & Attendance and Payroll systems.
    • Refer to Appendix 2 for details of non IFRS / normalization adjustments

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Millennium Services Group Ltd. published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 05:51:05 UTC.