Announcement PDF 1H 2023 Results Presentation ASX:FOS 1H 23 Highlights $ 8.6M Sales +39% Hawko Lighting Acquisition $0.52M NPBT +67% $-1M Operating cashflow $0.39M $5.3M NPAT +36% Order book -15% 59 Employees $58M Quote pipeline 1H23 Operational Update • Since inception April 2019 FOS has delivered 6 consecutive half yearly profits. • Record 1H sales $8.6M +39% Record Q2 sales $5.5M +57% • 1H NPBT $521K +67% 1H NPAT $392K +36% • Cost of doing business as a % of Sales improved 33% from 44% to 33% with further improvements expected as Hawko acquisition integrates. • Order book lower at $5.3M as a result of high Q2 sales • Expect to have it back above $6M in coming months • Negative operating cashflow to rebound in Q3 as receivables collected from high sales months • Acquired Hawko Lighting November 2022 • Integration continuing, now migrated onto FOS systems • $500K in synergies identified • Raised $1.5M via placement to fund acquisition • Expanded FOS VEKTA range, now our biggest selling product line Hawko Lighting Acquisition • Hawko Lighting Group • Established over 30 years, based on Sunshine Coast, Queensland • Manufactures an extensive range of LED linear lighting • Services the Australian market through distributors • 11 employees • FY22 Sales $3.3M • FY22 normalised EBIT $300K • Synergy benefits $500K (previously announced $250K) (to be realised over 12 months) • Purchase price $1M cash upfront $300K deferred 12 months linked to sale of stock • FOS Capital raised $1.5M via a sophisticated investor placement @20c per share • Hancock & Gore (ASX:HNG) and associated entities subscribed to $1M of the placement FOS Group Inclusive of Hawko +$20M 3 Annualized Sales Manufacturing & Warehousing facilities 15 59 Product ranges Employees 6 7 Sales offices Distributors $5.3M Order Book $58M Quote pipeline 1H23 Comparative analysis Orders on Hand 58.0M 56.0M 50.0M 6.1M 6.2M 5.3M 3.8M 25.1M 15.0M 42.0M ACTIVE QUOTES Sales JUN 2020 DEC 2020 JUN 2021 DEC 2021 JUN 2022 DEC 2022 1.5M 1.5M Jun 2020 Dec 2020 $13.5M $7.4M $8.1M $5.5M $4.2M $8.6M $2.8M $2.7M FY2020 $6.1M $3.9M FY2021 FY2022 1H 2H FY2023 Jun 2021 Dec 2021 Jun 2022 Dec 2022 FY22 Financials P&L ($m) 1H22 1H21 Balance Sheet ($m) Dec 22 Dec 21 Sales 8.6 6.2 Cash & Receivables 5.2 3.9 Gross Profit 3.3 2.8 Stock, P&E, Other 9.9 8.7 Other income 0.1 0.26 Total Assets 15.1 12.6 Expenses 2.9 2.8 Payables 2.9 1.6 Exp as % of Sales 33% 44% Other 3.1 3.5 PBT 0.52 0.31 Total Liabilities 5.9 5.1 NPAT 0.39 0.29 Net Assets 9.2 7.5 Outlook • FOS continues to build the foundations of a profitable sustainable business • Acquisition of Hawko represents significant manufacturing synergies and increased manufacturing capacity. • ANZ operation with 59 staff well positioned for further growth • New revenues streams from expanded geographical presence with the addition of 6 new distributors • Growing pipeline of projects with active quotes now at $58m • Commercial construction industry continues to be robust • Continued focus on product development and cost rationalisation • Strong balance sheet, debt free, no material capex requirements • Actively pursuing multiple value accretive acquisition opportunities FOS at a glance Capital Structure ASX:FOS Directors Shares on Issue 53.8m Non-Executive Chairman Sandy Beard Share price (20/02) 18c Managing Director Con Scrinis Market Cap $9.7m Executive Director Michael Koutsakis Non-Executive Director Michael Monsonego Cash (Dec 2022) $1m Employees 59 Net Assets $9.2m Brands 15 NA per share 17c Offices 6 Manufacturing plants 2 Major Shareholders: SKM Investment Group (associated with executive directors) 57% : Hancock & Gore Ltd 16.95%