Decmil : Chairman’s address AGM 2018

8 November 2018

ASX Company Announcements Australian Securities Exchange (ASX)Level 40, Central Park

152-158 St George's Terrace PERTH WA 6000

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.

Yours faithfully,

Alison Thompson

Company Secretary

Decmil Group Limited ABN 35 111 210 390

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STA-TP-0011

Chairman's Address

DECMIL GROUP LIMITED

2018 ANNUAL GENERAL MEETING 8 NOVEMBER 2018

DAVID SAXELBY

Good morning ladies and gentlemen. Welcome to the 2018 Decmil Annual General Meeting. My name is David Saxelby and I am Chair 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 FY18 and provide an update on the outlook for FY19 and beyond.

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

However, before we commence the formal part of the meeting, I would like to take this opportunity to introduce my fellow non-executive directors; Bill Healy, Don Argent and Dickie Dique.

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

• • Scott Criddle - our Managing Director and CEO,

• • Craig Amos - our Chief Financial Officer,

• • Tony Radalj - our Executive General Manager,

• • Kate Strack - our Executive Manager of People, and

• • Damian Kelliher - our Executive Manager of Commercial and Risk.

For those who are not aware, this year marks Decmil's 40 year anniversary. Starting out as a small business in Karratha in 1978, Decmil has been on a fascinating journey of geographical expansion, diversification and growth. Today Decmil is a well established and highly regarded construction company, employing over 500 people on sites across Australia and New Zealand.

Our long history provides us with strong experience to execute large projects for clients in the resources, infrastructure and renewables sectors. In celebrating this milestone we wish to thank everyone who has contributed to our success over our first 40 years.

This year we also recognise the achievements of Decmil's founder Denis Criddle who has recently stepped down from Board duties. Denis always fostered a culture of 'family, respect and mutual support' and we acknowledge him for his commitment and dedication to Decmil and for creating a strong culture from the very beginning.

Denis's values will continue to drive the success and sustainability of Decmil throughout the years to come and we are delighted that his legacy will live on through the annual 'Denis Criddle Leadership Award'. We thank Denis for his tremendous contribution to the Board over the years and we wish Denis, Nola and their family all the best for the future.

I will now 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 an update on our key projects and the progress we have made in executing our FY19 business plan.

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 executive leadership team members present today.

I now turn to the Group Highlights of FY18. In 2018 Decmil returned to revenue growth as the Company secured several new large projects. These projects included:

• - the expansion of BHP's Mulla Mulla village at South Flank;

• - the provision of tug infrastructure and service facilities for Fortescue at its Port Hedland tug harbour;

• - a NZ$185+ million combined contract to design, procure and install rapidly deployable modular prisons cells for New Zealand Corrections;

• - over $180 million of new transport infrastructure projects to the Victorian business unit; and

• - completion of the Gullen solar project near Goulburn in New South Wales.

In addition to the above, we have recently been awarded an EPC contract with Maoneng Australia in relation to its Sunraysia Solar project. With work in hand of $550 million, revenue is now expected to exceed $600 million for the year ended 30 June 2019.

FY18 saw significant diversification in Decmil's revenue by sector and geography. With our current order

book being infrastructure focussed, and with an increasing exposure to select renewable projects, we are expecting the split of revenue across our core sectors will be even more diverse in FY19.

This split demonstrates the successful execution of our strategy to position ourselves to benefit from the significant opportunities that are being presented in the Eastern states infrastructure markets and the renewable energy space.

It has also been pleasing to see the revenue from our core construction business increase by 28% on the prior year and increase by 42% half on half. For the 2018 financial year the group delivered gross margins of 10.4% and an EBITDA from continuing operations of $4.7 million.

In addition, at 30 June 2018, our financial position remained sound with the Group's balance sheet reflecting

a net cash position of $17 million with no drawn core senior secured debt and net tangible assets of $131 million.

Our business plan remains consistent with prior years. After benefiting greatly from the resource construction boom, Decmil experienced subdued market conditions throughout FY16, FY17 and part of FY18.

During that time, Decmil focussed on diversification, stabilisation and resetting its overhead cost base to ensure it remained competitive and sustainable. This created a platform for a more diverse national business, which is now exposed to the expanding infrastructure and renewable energy markets. Conditions across these sectors, along with our traditional resources sector, continue to improve as we head into FY19.

Decmil's strategy to increase exposure to the infrastructure market has been executed over the past 3 financial years and we are now well positioned for more project awards in this sector in FY19 and beyond.

The Group now has significant experience in this market, with contracts successfully executed for the Department of Home Affairs, the Department of Defence, the Department of Corrections and the Ministry of Education in New Zealand.

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.

Managing Director's Address

DECMIL GROUP LIMITED

2018 ANNUAL GENERAL MEETING 8 NOVEMBER 2018

SCOTT CRIDDLE

Thank you Dave.

Good morning ladies and gentlemen and thank you for joining us today for our 2018 Annual General Meeting.

As you have heard from our Chairman, 2018 has seen significant revenue growth for the Company along with an increasing exposure to the infrastructure sector and select renewable energy projects. I would now like to give you an update on our current projects and the outlook for FY19 and beyond.

The past financial year has seen the expansion of our New Zealand business with an initial award of a NZ$60 million contract for the design, procurement and on-site installation of rapidly deployable modular prison cells at two existing prison sites in New Zealand, and then a NZ$125 million contract extension for the installation of additional modular prison cells at three further sites. This is a very important project for the New Zealand Department of Corrections which will deliver an additional ~1,000 person capacity to their existing prisons. The works are progressing well with inground services and foundations already prepared for the first shipment of 162 modules which will be complexed into units for installation.

The Drysdale Bypass project for the Major Road Projects Authority was awarded to Decmil in September 2018. The largest road project ever undertaken by Decmil, the project includes the design and construction of six-kilometres of bypass road from Jetty Road to north of Whitcombes Road. The scope also includes earthworks, services and stormwater drainage, a pedestrian underpass bridge near local schools and a bridge over the Bellarine Railway. Detailed design is currently progressing with the client and staff have been mobilised to site to commence clearing and top soil stripping.

Our recently awarded three-year Framework Agreement with Shell for works within the Surat Basin extends our seven year relationship with QGC. Over the years we have provided many services to this client including the installation of wellheads and various brownfield maintenance activities. The new scope, which commenced this month, includes the provision of construction activities, logistics and maintenance services across a number of QGC's upstream projects. We look forward to executing this contract for Shell which includes an option to extend for up to two years beyond the initial three-year term.

Decmil was recently issued a Notice to Proceed for the Sunraysia Solar Farm in Balranald, NSW. The scope of the project includes the engineering, procurement and construction of a 255MWp solar PV project, but excludes connection to the grid and the construction of the substation. The developer, Maoneng, has entered into a long term equity partnership with global infrastructure investor and manager John Laing for the investment and development of the project. Power purchase agreements are also in place with AGL and the University of New South Wales. The Sunraysia Solar Farm Project will be one of the largest solar farms in Australia and will significantly expand Decmil's presence in the renewable energy market.

In our traditional Resources sector, our FMG Tug Pens project is currently in its punchlisting phase and works on Amrun are nearly complete with handover to Rio Tinto to occur shortly. The initial works on the Mulla Mulla project at South Flank are also nearing completion, however the project team will be commencing on Separable Portion 2. We are seeing a general increase in the level of activity in this sector, particularly in the Pilbara, with new work being bid for Fortescue (Eliwana), Rio Tinto (Brockman) and RioTinto (Koodaideri). As can happen on major mining projects we are seeing cost and productivity pressure and these need diligent commercial management.

I now turn to the outlook for FY19 and beyond.

We are currently exposed to a strong tender pipeline with continued focus on the Resources, Infrastructure and Renewable Energy sectors across Australia and New Zealand. These sectors are experiencing strong market conditions and accordingly our pipeline extends revenue visibility to FY20 and FY21.

Consistent with this, our outlook is strong, with FY19 revenue now expected to exceed $600 million. Our recent $50 million capital raising has added financial capacity to the balance sheet to support bigger projects. The group continues to see strong market conditions across a number of its key sectors including:

• - Resources, with FMG's Eliwana and Rio Tinto's Koodaideri projects and also improved market conditions in the QLD Coal Seam Gas sector;

• - Infrastructure, with significant public sector infrastructure spend by State and Federal Government, in particular in the Transport sector in Victoria; and

• - Renewable Energy, with solar PV and wind projects as a balance of plant contractor.

Before I conclude I would like to thank Dave, our Chairman, and our fellow directors, for your support and advice over the past year. I would also like to thank our dedicated staff and our loyal shareholders for the support afforded to the business during the past 12 months.

I will now hand back to Dave to conduct the formal business.