Announcement PDF Coffee Microcaps Presentation ASX: FOS FOS Overview • FOS Capital founded April 2019 and listed in June 2021. (management have +35 years in the industry) • FOS manufactures & distributes commercial & architectural LED lighting to the project specification market • Immediate market FOS operates in estimated sales +$500M (broader market +$1B) • Medium term target market share 15% (currently 5%) • Targeted EBITDA +10% • M&A strategy to consolidate a fragmented industry • 5 acquisitions to date • Created ANZ business with Annualised revenues +$25m and 79 staff • 2 manufacturing facilities • 16 Brands • Multiple accretive opportunities available • Scale up business to extract synergies and drive margins • Consolidating manufacturing facilities improves gross margins through scale and purchasing power • Experienced management with proven ability to execute Milestones Track record of accretive acquisitions KLIK Strategic Acquisition • KLIK 40+ years in operation in design, manufacture & distribution of quality LED linear & handrail lighting solutions • The acquisition of KLIK Systems forms part of a strategy to consolidate the linear lighting market in Australia. • Significant presence in US market with 70 agents across North America • FOS commenced manufacturing of linear lighting in Brisbane October 2019. • FOS acquired Sunshine Coast linear lighting manufacturer Hawko Lighting November 2022. • FOS acquired Sydney based linear lighting manufacturer KLIK Systems October 2023. • Over the 2H of FY2024 FOS will consolidate the manufacturing of these products to the KLIK factory in Sydney in order to extract significant manufacturing and purchasing synergies. • FOS have made a $500K restructuring provision in its half year accounts directly related to the KLIK acquisition. • The restructuring provision includes the following major items that will be implemented by June 2024. • Closure of factory on the Sunshine Coast • Redundancy’s related to closure of Sunshine Coast factory • Relocation of Sunshine Coast production to KLIK in Sydney FOS 1H24 Key Takeaways $9.9m $7.2m $2.7m $11.1m 1H Sales +15% SOLID 1H Q2 Sales +30% RECORD December Orders Intake KLIK IMPACT Order Book RECORD 0.9m KLIK Systems 10 Consecutive $100m Profitable half years EBITDA* +43% VOLUMES INCREASE MARGINS ACQUISITION *Excludes KLIK restructure provision RESILIENT BUSINESS Pipeline GOOD VISIBILITY Financials P&L ($m) 1H24 1H23 Balance Sheet Dec 23 Dec 22 Sales 9.9 8.6 Cash & Receivables 5.9 5.2 Gross Profit 4.3 3.3 Stock, P&E, Other 13.0 9.9 Other Income .1 .1 Total Assets 18.9 15.1 Operating Expenses 3.5 2.8 Payables 2.1 2.9 EBITDA .9 .6 Debt 2.8 0 Int & Dep .2 .1 Operating Profit .7 .5 Other 4.6 3.1 Klik Restructure Exp .5 0 Total Liabilities 9.5 5.9 PBT .2 .5 Net Assets 9.4 9.2 PAT .1 .4 Comparative Analysis 11.1 100 Pipeline Order Book 80 50 56 6.2 6.1 58 5.3 42 3.8 3.3 25 15 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 1.5 1.5 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 17.1 Sales 13.5 8.5 8.1 5.5 7.4 4.2 8.6 2.8 9.9 6.1 2.7 FY20 3.9 FY21 FY22 FY23 FY24 Outlook • ANZ operation with 79 staff well poised for further growth • Commercial construction industry continues to be robust with orders being released • Acquisition of KLIK expected to deliver significant manufacturing synergies • New revenue streams from expanded geographical presence with the addition of 4 new distributors via KLIK • Entry into new export markets • Order book over $11m with active quotes now at +$100m • Continued focus on product consolidation • Seeking further acquisition opportunities FOS Interactive Investor Hub https://investorhub.foscapital.com.au/welcome