Annual Report 2024

CONTENTS

02 At a Glance

04 Our Businesses

06 Chairman's Letter

07 Managing Director's Letter

10 Financial Report

100 Shareholder Information

102 Corporate Directory

OUR PURPOSE & VALUES

Tasmea   ALimited nnual Report 2024

RECENT ACQUISITIONS

Tasmea is now positioned with an end-to-end electrical capability with the recent Future Group acquisition, enabling Tasmea to offer fully integrated solutions, a unique capability in the national electrical service sector

L Tasmea imited  Annual Report 2024

WEST COAST

LINING SYSTEMS

August 2024

• Specialises in the supply and installation of geomembrane liners
• Environmental protection in solid waste management, mining, and water containment applications

• We identified the Western Australian geomembrane market represented 50% of the Australian market and strategically targeted an acquisition in this specialty to act on this opportunity, rather than gradual expansion of Fabtech into WA
• WCLS holds an estimated 20% of the WA geosynthetics market
• Highly attractive and earnings accretive acquisition
• Cross-sellingopportunities with customers of WCLS and Tasmea's civil businesses in the Pilbara, WA

• Tasmea saw this opportunity as one which would benefit from Tasmea's organic growth strategy as well as being vertically aligned with our existing businesses in the remote Pilbara West region
• Strong cashflow business with diverse customer base and limited working capital requirements
• Cross-skilledand adaptable workforce with a long history of service
• Complements the existing service offering of NWMC in the Pilbara and allows for vertical integration of services in the Pilbara

Our dual focus on organic growth and programmatic acquisitions will ensure that Tasmea Limited continues to deliver strong financial performance and sustainable value for our shareholders.

Dear Shareholders,

It is with pleasure that I present to you Tasmea Limited's Annual Report for the financial year ended 30 June 2024, my first year as Chairman. Amongst several milestones achieved during the year, none was more important than the Company's successful listing on the Australian Securities Exchange and the achievement of earnings consistent with Prospectus forecast, as detailed in the following Financial Highlights.

Financial Highlights

• Revenue Growth: We achieved revenue of $400 million, representing a 25.0% increase from the previous year. This growth was driven by our continued expansion in the mining, resources, and energy sectors, as well as the successful integration
  of recent acquisitions.
• Profitability: Our Pro-forma Earnings before Interest and Tax ("EBIT") reached $54.8 million, with an EBIT margin of 13.5% and Pro-forma Net Profit after Tax of $36.9 million, 10% above Prospectus guidance. This achievement underscores the strength of our business model and our focus
  on providing highly specialised, critical services to our blue-chip fixed plant customers.
• Operating Cash Flow:
  We maintained a high Operating Cash Flow Conversion, before interest and tax, to EBIT rate of over 100%.
• Dividend: On 26 August 2024, the Directors declared a fully franked final dividend of 4.0 cents per share, bringing the total fully franked dividend for the year to
  6.5 cents per share (3.5 cents FY23), reflecting the Group's strong financial performance.

Business Operations

This year, we made significant progress in executing our strategic initiatives. The recent acquisitions of Dingo Concrete Services, and post balance date acquisitions West Coast Lining Systems and Future Engineering Group have further strengthened

our capabilities and market position, particularly in remote areas where demand for specialised services remains strong. In FY25, our focus will be on integrating these businesses to unlock their full potential.

Additionally, our earlier acquisitions in FY24 of Groundbreaking Mining Solutions and ForeFront Services have delivered on their forecast earnings, with integration progressing in line with expectations. These strategic moves have bolstered our service offerings and positioned us to capitalise on growth opportunities in our key markets.

Safety continues to be a core value at Tasmea. I am proud to report that we have extended our lost-time injury (LTI) free record to over 4,200 days, demonstrating our unwavering commitment to ensuring a safe working environment for all our employees. Our continued focus

on safety and sustainability is key to maintaining our strong relationships with clients and ensuring the long-term success of our business.

Looking ahead, we remain optimistic about the future. Our dual focus on organic growth and programmatic acquisitions will ensure that Tasmea Limited continues to deliver strong financial performance and sustainable value for our shareholders. We are confident that the strategic initiatives we have in place will drive further success in the year ahead.

I would like to extend my sincere thanks to our employees, management team, and fellow Board members for their dedication and hard work. To our shareholders, I express my gratitude for your continued trust and support.

I look forward to further reporting to you during the 2024 Annual General Meeting on the progress of our company.

Sincerely

Joe Totaro

Chairman, Tasmea Limited

Managing Director's Letter

L Tasmea imited  Annual Report

Dear Shareholders,

The 2024 financial year has been transformative for Tasmea Limited, marked by our listing on the Australian Securities Exchange (ASX), continued robust growth, strategic acquisitions, and operational excellence. We have successfully met the financial projections outlined in our Prospectus, further solidifying our position as a leading provider of engineering and maintenance services across Australia.

Financial Performance

Revenue: Our total revenue for FY24 reached $400 million, representing a 25.0% increase from FY23. This growth was primarily driven by strong performance in our core sectors-mining, resources, energy, and infrastructure-alongside the integration of recent acquisitions. Whilst our revenue was slightly below the Prospectus forecast due to some project-based work slippage and June shutdown cancellations, we were able to exceed our EBIT and NPAT targets, demonstrating the resilience of our business model.

EBIT: Pro-forma EBIT for the year was $54.8 million, reflecting a 13.5% EBIT margin. This margin was driven principally by the highly specialised and critical services we provide to our blue-chip fixed plant customers. Our focus on delivering high-value, essential services has enabled us to achieve this exceptional level of profitability, even in a competitive market environment.

Net Profit: The Group's Pro-forma net profit after tax (NPAT) was $36.9 million exceeding Prospectus guidance by $2.3 million, reflecting a 29.9% increase from prior year Pro forma NPAT. This was driven by revenue growth, efficient cost management, and the positive impact of our acquisitions. The Statutory NPAT per share was 15.2 compared to 9.9 cents in FY23, an increase of 52%.

Operating Cash Flow Conversion: Tasmea achieved a high Operating Cash Flow before interest and tax conversion to Statutory EBIT rate of more than 100% in FY24. This strong conversion rate is attributed to our business model, where the majority of work is conducted on a schedule of rates with a maintenance focus, allowing us to invoice regularly for work completed each month.

Dividend: Reflecting our strong financial performance, the Board has declared a final fully franked dividend of 4.0 cents per share up from 2.0 cents per share in FY23. This brings the total fully franked dividend for the year to

6.5 cents per share up from 3.5 cents per share in FY23, delivering strong returns to our shareholders.

Strategic Acquisitions

During FY24, Tasmea Limited made several strategic acquisitions that have significantly enhanced our service offerings and expanded our market presence:

Groundbreaking Mining Solutions: On 1 July 2023, Tasmea Limited acquired Groundbreaking Mining Solutions Pty Ltd ("GMS"). GMS offers drill and blast rig solutions to clients in Australia and overseas, comprising a range of in-houseengineering, maintenance and asset management services as well as equipment hire. The acquisition enables the Group to diversify its client base and geographical scope of operations. The total purchase consideration for the business was $22.0 million upfront consideration, and $6.0 million contingent consideration payable over three years. GMS has delivered upon their forecast earnings, with integration progressing in line with expectations.

ForeFront Services: Tasmea Limited acquired ForeFront Services on

1 October 2023. ForeFront Services is a multi-disciplined engineering, construction, maintenance and mining services provider based in Orange, New South Wales. ForeFront Services provides surface and underground maintenance and shutdown services to various mining facilities and fixed mining plant and equipment. The total purchase consideration for the business was $17.0 million. The acquisition has been earnings accretive in the year of acquisition, and is integrated within the group.

Dingo Concrete Services:

Acquired in June 2024 for $6.5 million, Dingo Concrete Services specialises in concrete batching, material supply, and transport services. This acquisition has strengthened our presence in the Pilbara region, particularly in Tom Price. The acquisition has been earnings accretive in the year of acquisition and was funded through a combination of cash and borrowings. As we move into FY25, our focus will be on fully integrating this business into our operations and setting this business on a path for growth.

West Coast Lining Systems: Acquired subsequent to year end on 31 July 2024 for $11.45 million, West Coast Lining Systems is a leading provider of geomembrane liners and related services for the mining, industrial, and aquaculture industries. This acquisition complements our existing capabilities in the water and fluid services segment and is expected to contribute strongly to our earnings accretion in the coming years. Integration of this business will be

a key focus for FY25 as we aim to fully leverage its potential within Tasmea.

Future Engineering Group: Tasmea has acquired Future Engineering Group subsequent to year end on 24 August 2024 for an estimated $84.5 million based on a full year maintainable EBIT of $15.5 million under Tasmea's ownership and the achievement of future earnings targets in FY25, FY26 and FY27. The acquisition of Future Engineering Group includes Future Engineering & Communication Unit Trust ("FEC") and its associated entities Future Power Pty Ltd ("Future

2024

LETTERS

07

continued

Power"), Rollwell Pty Ltd ("Rollwell") and Westplant Pty Ltd ("Westplant") (collectively referred to as "Future Engineering Group" or "FEG"). Completion is expected to occur on or about 30 August 2024.

Future Engineering Group, established in 1992 and based in Western Australia, specialises in the design, supply,

and installation of communication structures and high voltage powerline infrastructure. With a workforce of 139 employees, Future Engineering Group serves a diverse range of customers, including electricity providers, mobile phone carriers, and mining companies across Australia and overseas.

The acquisition is expected to be highly Earnings per Share ("EPS") accretive, delivering approximately 21.5% EPS accretion, enhancing shareholder value and reflecting the strong financial performance projected under Tasmea's ownership. This acquisition positions Tasmea to capitalise on the rapidly growing electrification demand in Australia, supporting the integration of critical renewable energy sources into existing grids to ensure stability, reliability and a more sustainable supply that aligns with our customers' focus to reduce their carbon emissions.

Specialist Trade-Skilled Services in Remote Locations

Tasmea Limited has continued to leverage its expertise in providing specialist trade-skilled services, particularly in remote locations across Australia. Our strategic focus on remote area operations has enabled us to develop a strong presence in regions where demand for specialised services, such as electrical, mechanical, and civil maintenance, is high. Our ability to mobilise and deploy skilled teams to these locations has been a key driver of our success, ensuring that we meet the unique needs of clients operating in challenging environments.

Our remote operations have also been bolstered by the integration of each of our strategic acquisitions which have expanded our service offerings and geographical reach. These acquisitions have enhanced our capabilities in remote infrastructure projects, particularly in the mining and resources

sectors, where our services are essential for the smooth operation and longevity of critical assets.

Focus on Fixed Plant Maintenance, Blue-Chip Customer Base, and Recurring Revenue

A significant aspect of our growth strategy has been our focus on providing fixed plant maintenance services. This area of our business, which involves the ongoing maintenance and repair of critical infrastructure in mining and industrial operations, has proven to be a consistent source of recurring revenue. By ensuring the reliability and efficiency of our clients' fixed plant operations, we have been able to secure long-term contracts and build strong relationships with key customers.

Our blue-chip customer base is a testament to the trust that leading companies in the industry place in Tasmea's operating subsidiaries. These clients rely on our specialist trade services businesses not only for our technical expertise but also for our ability to ensure maximum plant uptime, which is critical for their operational success. The high repeat revenue we generate from these customers underscores our purpose of Delivering Value - Always and the strong, ongoing partnerships we have cultivated over the years.

Master Services Agreements (MSAs)

Another key element of our success has been the significant revenue generated through a large number of Master Services Agreements (MSAs). These agreements, which outline ongoing service commitments to our clients, have become a cornerstone of our business. They provide us with a steady stream of work and enable us to plan and allocate resources effectively across multiple projects.

Our ability to secure and manage these MSAs reflects our strong reputation in the industry for delivering high-quality, reliable services. The recurring nature of the revenue generated from these agreements further strengthens our financial position and supports our growth ambitions.

A key focus in FY25 will be on fully integrating our recent acquisitions of Dingo Concrete Services, West Coast Lining Systems and the Future Engineering Group to realise their full potential within Tasmea.

Operational Achievements

Our strategic focus on integration and operational excellence has yielded strong results. The newly acquired businesses have been successfully integrated into our operations, contributing positively to our overall performance. We have also made and will continue to make significant investments in upgrading our systems and processes, ensuring that our operations remain efficient, scalable, and capable of supporting

future growth.

Safety and Workforce Development

Safety remains a cornerstone of

our operations. I am proud to report another year of lost-time injury (LTI) free performance, extending our LTI-free record to over 4,200 days. This achievement reflects our unwavering commitment to maintaining a safe and healthy work environment for all our employees.

In addition to our safety achievements, we have continued to invest in our workforce. Our headcount has grown by 18%, bringing our total number of employees to over 1,500. This growth has met the increased demand for our services and our strategic focus on developing a skilled and capable workforce to meet our customers' needs.