Decmil : Chairman’s Address to Shareholders

1 November 2017‌‌‌

Company Announcement Office

Australian Stock Exchange Level 4, Stock Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

By ASX Online

Chairman's Address, Managing Director's Address and Presentation

Attached are the Chairman's address, the Managing Director's address and a presentation to be delivered at Decmil Group Limited's (ASX: DCG) Annual General Meeting scheduled to commence at 10.00am WST this morning.

Regards,

Alison Thompson

Company Secretary

Page 1 of 1

Good morning ladies and gentlemen.

Welcome to the 2017 Decmil Annual General Meeting.

My name is Bill Healy and I am Chairman of the Board of Directors of Decmil Group Limited.

On behalf of my colleagues, I would like to welcome you to our office to give you an overview of the highlights of FY17 and provide an update on the FY18 business plan and the growth sectors for the Company moving forward.

As it is now 10am and a quorum is present, I declare this meeting open. I propose to take the Notice of Meeting as read.

I would like to take this opportunity to introduce my fellow directors.

Scott was appointed Chief Executive Officer in July 2009, and Managing Director of Decmil Group Limited in April 2010 and has been a Director of the Company since that time.

He was previously the Managing Director of Decmil Australia from 2002, where he was responsible for the long-term growth and strategic direction of the company, playing a key role in building relationships with stakeholders and clients.

Scott joined Decmil Australia in 1993 as a construction labourer to gain experience and learn about the company from the ground up. He held a variety of roles within Decmil Australia including Construction Manager, Estimator, Business Development Manager and Area Manager.

Denis was the founder of Decmil Australia, Decmil Group Limited's major construction and engineering division.

He was appointed to Decmil's Board as a Non-Executive Director in August 2007 and served as Chairman from September 2009 to November 2011.

Denis is a civil engineer with more than 30 years' experience in construction and maintenance services for the oil and gas and resources sectors in central Queensland and north-west Western Australia.

David Saxelby, Non-Executive Director

David was appointed to the Board in May 2016. He has held Managing Director and CEO roles for the past decade, most recently with Lendlease as CEO of Construction and Infrastructure Australia. Prior to Lendlease, David was with the Leighton Group for 18 years, where he held a number of senior positions, most recently as Managing Director of Thiess Pty Ltd. In addition to these roles, David has held a number of senior positions on Industry Boards and was listed in the Top 100 Engineers in Australia.

Lee has more than 40 years' experience as a commercial and property lawyer. Until he retired in July 2012, he was a partner in the international law firm of Norton Rose Fulbright, where he headed its Commercial Property division in Perth. Lee is also an experienced company director, currently serving as a Non-Executive director of Finbar Group Ltd and Wyllie Group Pty Ltd. He joined our board in April 2010.

Lee has taken the decision to step down from the Decmil Board at this AGM. I would like to take this opportunity to thank Lee for his service to the Company over the past 7 years and wish him all the best for his future endeavours.

Given Lee's resignation, we will take the opportunity to review the composition of the Board to ensure we have an appropriate range of skills and geographical representation that reflects our future ambitions. Future appointments will consider our board skills matrix, our corporate governance obligations and our diversity aims.

I would also like to introduce you to the Executive Team which includes…

• Scott Criddle - our Managing Director,

• Craig Amos - our Chief Financial Officer,

• Tony Radalj - our Chief Operating Officer, and

• Ray Sputore - our Executive Manager Strategy & Pre-Contracts.

At today's meeting we have two resolutions to consider which will be put to a poll.

However, before we commence the formal part of the meeting, I am going to give a brief overview of the Company's highlights over the past year, and will then invite our Managing Director, Scott Criddle, to give shareholders a an update on the FY18 business plan and the growth sectors for the Group going forward.

At the conclusion of formal proceedings, we would welcome you to stay on for light refreshments, and discuss any matters regarding the Company with the directors and senior executives present today.

I now turn to the Business Highlights of FY17.

The 2017 financial year represented a year of stabilisation for the Group following the significant decline in revenue experienced in the 2016 financial year.

Throughout 2017 the Group bedded down the market and geographic diversification strategies executed in recent years. The Decmil business now operates across all of Australia and New Zealand with offices in Perth, Brisbane, Melbourne and Auckland.

As it enters FY18, the Group maintains its overall strategy of building a diverse and strong construction and engineering business focussed on three key sector pillars namely Infrastructure, Resources and Renewables.

The focus on these markets and access to a broader geographical spread have created a more sustainable national business moving forward.

Despite reporting a broadly break-even FY17 EBITDA position the Group maintained a strong balance sheet with net tangible assets of $135m and a net cash position of $17m at the end of the financial year.

In addition, the Group has access to substantial senior debt and bonding facilities and ended the year with no senior debt drawn.

The Board and management considers this fiscal discipline to be appropriate given the recent challenges in the broader construction and engineering sector.

Operational highlights of the 2017 financial year reflect the diversification of the Group in recent years, with project activity spanning a number of sectors including WA Iron Ore sustaining capital works, Queensland coal seam gas upstream maintenance, Defence enabling infrastructure, road and bridge projects for State road authorities and renewable energy.

Key highlights include:

• Sustaining capital work in the WA Iron Ore Sector including a logistics hub for BHP at Port Hedland, an airstrip and associated facilities at Cape Preston for Sino Iron and various works for Samsung C&T at the Roy Hill project. Also new projects for Fortescue and at Rio Tinto's Nammuldi and Silvergrass projects;

• A ~$50 million contract with Rio Tinto, for the design, construction and commissioning of the mine infrastructure area at the Amrun project;

• Enabling infrastructure works at a number of the Australian Defence Force bases and facilities;

• An EPC contract for Gullen for a 10MW solar farm and a two year operation and maintenance contract near Goulburn in New South Wales;

• Ongoing wellhead installation, brownfield maintenance and miscellaneous works for QGC in the Queensland coal seam gas sector;

• Work in New Zealand for the Ministry of Education with school projects in Christchurch and Auckland and the first project with the New Zealand Defence Force at Kauri Point;

• A variety of road and bridge projects for VicRoads including the Sand Road Interchange, the Monash Freeway Bridge Strengthening project and the Sneydes Road Interchange; and

• A contract with NSW Health Infrastructure for the redevelopment of a regional medical facility including the diversion of services, demolition of existing structures and the construction of a new temporary medical centre.

In closing, I would again like to take this opportunity on behalf of the Board to thank our loyal shareholders for their ongoing support and of course our staff for their dedication to Decmil.

I would like to now hand over to Decmil's Managing Director, Scott Criddle.