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1 PWR Holdings Limited (ASX: PWH) ASX ANNOUNCEMENT 11 October 2017 PWR Presentation at Morgans Queensland Conference PWR Holdings Limited will today make a presentation at the Morgans Queensland Conference in Brisbane. Please find attached a copy of the presentation to be given at the conference. A copy of this presentation is also available on our website at For further information: Kees Weel, Managing Director

2 INVESTOR PRESENTATION PWR HOLDINGS LIMITED OCTOBER 2017

3 IMPORTANT NOTICE This document has been prepared by PWR Holdings Limited (PWR) and comprises written materials/slides for a presentation concerning PWR. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any or contract or investment decision. Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as anticipate, estimate, expect, project, intend, plan, believe, target, may, assume and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements. No representation, warranty or assurance (express or implied) is given or made by PWR that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, PWR and its respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any direct or indirect loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, PWR disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of PWR since the date of the presentation. 2

4 AGENDA

5 FY17 RESULTS AND REVENUE GROWTH Actual and Constant Currency Results FY16 vs FY17 (AUD) Revenue by Currency CAGR 27.5% CAGR 58.4% CAGR 11.1% Estimated result using constant currency 4 EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation ( EBITDA ) is a non-ifrs term which has not been subject to audit or review but has been determined using information presented in the Group s financial report.

6 STRONG BALANCE SHEET & CASHFLOW A$'000 FY17 FY16 Cash at year end 9,064 8,797 Net working capital 8,305 7,698 Cash from operating activities 13,529 16,599 Conversion of EBITDA to Cash 91.9% 98.2% Free cash 5,326 11,373 Capital expenditure C&R Racing core production line 1,925 - Key points Zero net debt and strong cash position Strong cash conversion from operating activities Finance facilities in place and available Fully franked FY17 total dividend 5.6 cents per share, 60% of FY17 NPAT All FY17 capex of $3.9 million paid from cash resources Growth capex 1,265 1,752 Business as usual capex

7 PWR DIFFERENCE Technology Passion Range Quality Delivery 6

8 MANAGEMENT LONG TERM EXPERIENCE Person Role Time at PWR Kees Weel Matt Bryson Marshall Vann Adam Purss Jim Ryder Andy Burton Mick Cullen Experience MD & CEO 20 years 40 years cooling mfg, product development and sales GM Engineering 11 years 20 years cooling mfg, product development and sales GM 7 years 5 years CEO listed coy 25 years commercial CFO 4 years 4 years CFO listed coy 4 years audit experience GM USA 9 months 20 years Roush 8 years Ford Motor Co GM UK/Europe Production Manager Responsibilities Business performance Global operations Technical sales Engineering Product development Commercial operations Investor relations Finance C&R USA sales & production USA OE programs management 10 years 10 years Alcon Brakes UK/Europe business development 14 years 14 years PWR fabrication & production PWR Australia production 7

9 FY17 INVESTMENT IN THE FUTURE Staff Increased overall headcount by 14% including Increased engineering headcount by 36% Increased specialty production headcount by 48% Equipment C&R core production line budget US$4.25 million Second Variaxis CNC machine cost $780,000 High speed CNC mills cost $200,000 Cold plate cooler test rig cost $80,000 Batch vacuum purge braze furnace cost $135,000 8

10 MOTORSPORTS DRIVEN 9

11 MOTORSPORTS CUSTOMER ENGAGEMENT Motorsports Customer Revenue > A$100K Constant currency basis on FY13 average exchange rates

12 CURRENT YEAR Continued organic growth in the first quarter The Australian dollar has strengthened compared to the prior year Average exchange rate for first quarter FY17 FY18 GBP USD C&R Core Production line coming on line Development of new technologies still continuing 11

13 HISTORIC SEASONALITY Average Monthly Revenue as % of Annual Revenue FY14 FY17 39% 61% Key Drivers of seasonality Motorsports (66% of FY17 revenue) calendar year season 2H build for current and upcoming races, 1H less race demand more prototyping Australian aftermarket (10% of FY17 revenue) Hotter weather = more sales summer 12

14 FORMULA 1 SPEND 1 PWR FY17 category sales analysis Together, Formula 1 teams spent a little over 2 billion in calendar 2016 or almost A$3 billion at current rate Liberty Media new owners Purchase price US$8 billion On record - more races, more teams 13 1 The News Wheel 5/1/17

15 SOME CONTRIBUTORS TO THE FUTURE Automotive Hypercars Supercars Hybrid vehicles Electric vehicles Outside the Square Bus cooling Electric vehicle recharging 14

16 OEM PROGRAMS Client confidentiality requirements limits disclosure Program 1 1 Selected as cooling assembly supplier to a niche, high-end, supercar USA OEM program for a planned 5 year production run of 250 vehicles per year commenced in Q1 CY17, PWR supplying 5 cooling units per vehicle (up from 3 previously announced). Program 2 1 Selected as cooling assembly supplier to a medium size USA OEM program for a planned 2 to 3 year production run of circa 8,000 vehicles per year commencing Q4 CY18 (up from previously announced), PWR supplying 2 cooling units per vehicle. Program 3 1 Received nomination as cooling assembly supplier to a niche, high-end, Formula 1 inspired hypercar UK/European OEM program for a planned 2 year production run of 85 vehicles per year commencing Q2 CY OEM program timing, volume and term are dependent upon manufacturer requirements

17 FAVOURABLE INDUSTRY TRENDS Electronics 16

18 BLUE CHIP RELATIONSHIPS PWR has engineering ties with many OEM s through motorsports and other technology driven programs Aston Martin Audi Bentley BMW Bustech Citroën Ferrari Ford Motor Company General Motors Honda Hyundai Jaguar KTM Lamborghini Lotus McLaren Mercedes Multimatic Nissan Pagani Peugeot Porsche Red Bull Automotive Technology Renault Roush Industries Toyota Volkswagen Williams Advanced Engineering 17