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1 30 August 2017 Tamawood Investor Presentation - August 2017 Please note we apologise but have made an amendment to page 8 of the Investor Presentation and have released a new version. Please find attached the amended Tamawood Investor Presentation - August Geoff Acton Company Secretary T: F: (07) A: PO Box 16 Sherwood Qld 4075 ABN:

2 178.28% % % TWD Investor Presentation 100% 97.20%

3 Growth in TWD Housing Starts as a % versus HIA Housing Starts in QLD as a % 160% % 150% % 140% Percentage 130% 120% % % % % % 110% % 100% TWD Housing Starts HIA Housing Starts in QLD Increase of 33% in FY17 sales whilst reduction in advertising spend by 35.6%. Strong recovery in approvals in last quarter of FY17 due to land supply recovering after Cyclone Debbie. Establishment of sales offices in Newcastle and Gladstone, office fitout also commenced in Port Macquarie. Managing Director Report

4 R ECOGNITION ARRAGEMEN T Growth in TWD Housing Starts as a % versus HIA Housing Starts in NSW as a % 400% % 350% 300% % Growth (%) 250% 200% % certificate of registration Issue Date Expiry Date 27 Jul Jun 2018 Oliver. L. Evans Chief Executive Officer International Certifications C34969 INTERNATIONAL CERTIFICATIONS REGISTRATON NUMBER This is to certify that the management systems of Dixon Build T/A Dixon Homes have been formally assessed by International Certifications and found to comply with the requirements of ISO 9001:2008 Quality Management Systems - Requirements Scope of Registration: Design & construction of single or two storey residential dwellings Registered Site(s): Dixon Build T/A Dixon Homes-1821 Ipswich Road, Rocklea, QLD, 4106, Australia Dixon Homes Cairns & Townsville-172 Mulgrave Road, Westcourt, QLD, 4870, Australia Dixon Homes Cairns & Townsville-7 Featherwood Street, Mount Low, QLD, 4818, Australia Dixon Homes Mackay-19c Juliet Street, Mackay, QLD, 4740, Australia Dixon Homes New England-49 Rogers Street, Stanthorpe, QLD, 4380, Australia Dixon Homes Sydney-Unit 2/4 Hudson Ave, Castle Hill, NSW, 2154, Australia MEMBER OF MULTILATERAL This certificate of registration is issued by International Certifications Limited, 138 Harris Road, East Tamaki, Auckland, New Zealand, 2013 ( Accreditation by Joint Accreditation System of Australia and New Zealand ( Joint Accreditation System of Australia and New Zealand is a signatory to the IAF multi-lateral agreement ( This certificate remains the property of International Certifications Limited and must be returned upon request. It must not be altered or defaced in any way and deliberate misuse of the certificate or misrepresentation of the certification will result in cancellation without notification. QUALITY ASSURED 150% 100% QUALITY ASSURED THIRD PARTY CERTIFIED TO ISO % 6 STATUTORY BUILDING INSPECTIONS 20 ADDITIONAL BUILDING INSPECTIONS % % TWD Housing Starts HIA Housing Starts in NSW 15 COMPULSORY THIRD PARTY CERTIFICATES 35 ADDITIONAL THIRD PARTY CERTIFICATES All quality assurance co-ordinator vehicles are gps tracked to ensure inspections are completed. Customers notified by sms at completion of inspection. 2

5 TWD Wages as a % of Total Revenue versus HIA Statistics 19.00% 17.00% Wages as a % of Total Revenue 15.00% 13.00% 11.00% 9.00% 16.60% 16.10% 16.30% 16.30% TWD % includes Sales Commissions and Wages 7.00% 6.81% 7.12% 7.13% 6.53% 5.00% Years TWD Wages HIA Statistics Tamawood continues to integrate further modules of the Senterprisys Ltd (TWD shareholding 23.44%) enterprise software in FY17. It is anticipated the integration will be complete in FY18 which will create further operating efficiencies for the group. These efficiencies are highlighted by the decrease in wages as a % of revenue to 6.53% (2016: 7.13%). Further efficiencies are expected as software is being continuously debugged and new modules are being added. Full benefit of the implementation expected to crystalise in FY19. 3

6 Advertising Spend as a % of Construction Revenue and Construction Revenue growth as a % 180% % 3.00% Revenue Growth as a % 170% 2.50% Construction Revenue Growth (%) 160% 150% 140% 130% 120% 2.40% % 1.73% % 1.41% 2.00% 1.50% 1.00% Advertising (%) 110% 100% 97.20% 0.74% 0.50% 90% % Construction Revenue Advertising as a % of Total Construction Revenue Revenue More designs 2000 Homes, Duplexes, multi-family and granny flats More flexibility Speedy modifications and costings - floor plans and elevations More steel Steel frames, trusses and Colorbond roof included More concrete Conventional footings and slab - 80% more than Waffle Pods More glass 80% thicker than minimum, tinted window glass More European inclusions Premium Italian appliances and tapware More advanced management systems Third party quality assurance certification More extensive warranties 50 year limited structural warranty More homes built Home to 80,000 Australians More Building Industry Awards Over 100 in total More offices 11 offices / selection centres, 24/7 web-based information system Less up-front costs $100 soiltest and survey fee, $700 total deposit Less expensive to buy Best price guarantee for better value Less living costs Solar power PV and solar hot water, 6 star Energy rating Less risk ASX Listed debt free Australian owned company 4

7 Growth in Profit as a % versus Cost growth as a % 200% % 180% 160% % % Growth (%) 140% 120% % % 100% 98.23% % 80% 84.37% 60% Profit Growth Cost Growth BEST PRICE GUARANTEE We save you a minimum of $5,000 for every $100,000 on a home of a similar size & design with equal or better inclusions, or we will refund your preliminary fees in full, up to 30 days from paying preliminary fee or up to 5 days from signing contract. 5

8 TWD Profit Before Tax after Interest Expense as a % of Total Revenue versus HIA Industry Statistics 12.00% 11.41% 11.00% 10.82% 10.00% 9.99% Profit Before Tax (%) 9.00% 8.00% 8.05% 8.99% 7.09% 7.09% 7.00% 6.27% 6.61% 6.00% 5.38% 5.00% TWD Profit Before Tax Years HIA Industry adjusted for estimated industry costs (Source: Housing Industry Australia Ltd Economic Group Industry performance for residential construction industry) WARRANTIES DIXON STATUTORY STRUCTURAL: 50 YEAR LIMITED NON-STRUCTURAL: 7 YEAR LIMITED MAINTENANCE PERIOD: 17 MONTHS STRUCTURAL: 6 YEAR 3 MONTHS NON-STRUCTURAL: 12 MONTHS 6

9 Grossed up Fully Franked Dividend Yield % 10.59% 35.71cents 37.14cents 11.00% cents 30cents 32.86cents 9.94% 10.00% 9.00% Dividends (cents) % 8.68% 8.00% 7.00% 6.00% Dividend Yield (%) % 4.11% 4.50% 4.63% 4.19% 5.00% 4.00% Years 3.00% TWD grossed up fully franked Dividend (cents) Dividend yield TWD ASX Average Dividend yield ASX Consumer Discretionary Dividend yield (2017: 3.56%) Tamawood listed in August 2000 at 50 cents. Debt free since Total grossed up dividend payments of $4.28 since % increase in fully franked dividends for FY17 to 27 cents. The current payout ratio is 76.14%. 7

10 TWD Share Price TWD Share Price ($) All Ords Index ($) TWD Share Price All Ords Index We thank our shareholders by continuing our successful shareholder discount program that has been in place for a number of years. I believe this is also contributing to our increase in sales Chairman s Letter

11 QUEENSLAND ROCKLEA 1821 Ipswich Road, Rocklea QLD 4106 CHERMSIDE 992 Gympie Road, Chermside QLD 4032 PLAINLANDS 4424 Warrego Highway, Plainlands QLD 4341 GOLD COAST 1/50 Lawrence Drive, Nerang QLD 4211 SUNSHINE COAST 12a 189 Anzac Ave, Harristown QLD 4350 TOOWOOMBA 684 Nicklin Way, Currimundi QLD 4551 GYMPIE 2/5 River Road, Gympie QLD 4570 JIMBOOMBA Unit 4/ 19 Tamborine St, Jimboomba QLD 4280 CAPALABA 14/ 39 Old Cleveland Rd, Capalaba QLD 4157 GLADSTONE 32 Latrobe St, Tannum Sands QLD 4680 NEW SOUTH WALES COFFS HARBOUR 178 Pacific Highway, Coffs Harbour NSW 2450 BALLINA 2/10 Kerr St, Ballina NSW 2478 SYDNEY Unit 3/142 James Ruse Drive, Rosehill NSW 2142 NEWCASTLE 137 Melbourne St, East Maitland NSW 2320 Coming soon PORT MACQUARIE 2/141 Gordon St, Port Macquarie NSW 2444 ILLAWARRA Franchisees CAIRNS Mulgrave Rd, Wescourt, QLD 4870 MACKAY 19c Juliet St, Mackay, QLD 4740 HERVEY BAY 42 Watson St, Pialba, QLD 4655 WESTERN DOWNS Unit 7/17 Enterprise St, Toowoomba, QLD 4350 NEW ENGLAND 49 Roger St, Stanthorpe QLD 4380 NORTH-WEST NSW 46 Ring St, Inverell NSW 2360 DUBBO 14 Baird St, Dubbo NSW 2830 ACT Unit 8/289 Canberra Ave, Fyshwick ACT 2609 MILDURA 75 Deakin Ave, Mildura VIC 3500 GIPPSLAND Shop 1/43 Monash Rd, Newborough VIC 3825 MELBOURNE NORTH-WEST 113 Maribyrnong Road, Ascot Vale VIC 3032 BALLARAT 806 Wilsons St, Ballarat VIC 3350 Coming soon SHEPPARTON/ALBURY/WODONGA P.O.Box 1151 Sherrarton VIC 3632 DISCLAMER Management of Tamawood Limited (ABN ) and its subsidiaries (collectively Tamawood ) has made every effort to ensure the accuracy of information contained in this presentation. The presentation has been prepared based on information available prior to the date of this presentation. No responsibility or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Tamawood, its related bodies corporate or any of its directors, employees, agents or advisers accept any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Tamawood, its related bodies corporate or any of its directors, employees, agents or advisers. The material contained in this presentation is for information purposes only and does not constitute financial product advice. The information contained in this presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making any investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Nothing in this presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and the differences may be material. 9