Excellence in Recruitment & Consulting

AGM Presentation

25 November 2016

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HiTech Group Australia 2016 AGM

Highlights

Strong client relationships with multiple preferred supplier agreements in place (private and public sectors)3

2Over 23 years in operation and established expertise in ICT Services & Recruitment

Proprietary candidate and client database (HiBase) of over 300,000 skilled professionals and growing4

Top tier client base including Federal and State Government departments and leading private organisations5

High proportion of recurring revenue, with over 94% of turnover from contracting6

Successful renewal of long term contracts and new client contract wins across all areas of recruitment7

Positive industry dynamics and multiple paths to growth8

Record FY2016 financial results. On track to deliver significant revenue and profit growth in first half FY20171

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HiTech Group Australia 2016 AGM

Business SnapshotRecruitment and Consulting firm specialising in the placement of

permanent and contract personnel in:

ICT

financesales andmarketing

RECRUITMENTCANDIDATES

RE JOB

SEARCH

AGENCIES

SCREENING

EXP

ERTI

SE

COMPANY

PERSON

REQUIREMENTS

SECTOR

SELECTION

SOURCING

EXTERNAL

HIR

ING

EMPLOYER

SPECIALIST

officesupport

3

Information Communications Technology

RESUMÈ

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HiTech Group Australia 2016 AGM

Corporate Overview

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Board Share Price Corporate

Raymond HazouriChairman

Elias HazouriCEO, Executive Director

George ShadNon Executive Director

ASX.HIT

31.0 million shares issued

5.5 million options issued

Last close $0.58

Market Cap - $17.9m

Cash - $4.4 million(as at 30 June 2016 )

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($)

Top Shareholders

Ray Hazouri 59.5%

Salem Hazouri 6.4%

John Snell 4.0%

Clapsy Pty Ltd 3.8%

Berne No 132 Noms Pty Ltd 2.4%

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HiTech Group Australia 2016 AGM

Company Overview• HiTech is a specialist provider of recruitment and ICT consulting services, predominantly in the IT sector, in

areas such as system development, infrastructure support and networking and operations

• The majority of HiTech’s revenue is generated from IT contracting placements, providing a source ofgrowing recurring revenue

• HiTech is leveraged to the growth trends of the expanding ICT jobs market, rapid growth of certain ICTprofessions, the increased use of contractors and large scale public and private IT transformation projects

• Business revenues are being supplemented by an expanding candidate and client base and diversificationthrough the provision of recruitment services in areas of office support, financial services and sales anmarketing

• Strong balance sheet enabling the Board to pursue growth opportunities including a focus on gaininggreater share of the substantial State and Federal Government IT contracting and services market andpotential acquisitions of complimentary businesses (e.g. recruitment and workforce managementplatforms)

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HiTech Group Australia 2016 AGM

Our Customers

Private

Government – Federal &State

Sample clients

Preferred supplier to severalGovernment (Federal and State)and private sector corporations

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HiTech Group Australia 2016 AGM

FY 2016 Financial SummaryOperating Revenue

$18.3 million

up 22.4%

EBITDA

$3.1 million

up 132.8%

Profit after Tax

$2.2 million

up 168.9%

Net Tangible Assets

$0.19 per share

up 58.3%

Earning per Share

$0.07 cps

Up 168.6%

Cash

$4.4 million

Zero debt, up 139.8%

Dividend

$0.02 per share

fully franked, 3.6% yieldShareholder returns

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HiTech Group Australia 2016 AGM

Key performance metricsRevenue EBITDA

Net Profit After Tax

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FY 2014 FY 2015 FY 2016

Revenue ($m) 8,037 15,105 18,772

Growth 87.9% 24.3%

Gross Income ($m) 1,210 3,180 3,893

Growth 162.9% 22.4%

Gross Margin 15.1% 21.1% 20.7%

FY 2014 FY 2015 FY 2016

EBITDA ($m) -178 1,349 3,140

EBITDA growth 858.5% 132.8%

EBITDA margin 8.9% 16.7%

Permanent placement income (higher margin revenue)10% higher in 2016

Contracting revenue (stable recurring revenue stream)23% higher in 2016

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HiTech Group Australia 2016 AGM

Business ModelSource Placement Revenue

Access HiTech’s proprietarydata base (HiBase) developedover more than 23 years forcandidates and clients

Advertising on majorrecruitment sites and allleading online media

Headhunting of candidateswith rare talent and skill sets

Team of experienced HiTechrecruitment consultants

Permanent Recruitment Search and selection of candidates

for full time permanentemployment

Contract / Temporary Recruitment Provision of staff for temporary ,

contract or other non-permanentstaffing needs of clients for projects

Selection and placement of thebest candidates for client needs

Contracts term is 6 months to 1year, and normally extend foranother year, 2 or 3 or may beongoing

Permanent Placements One off payment for permanent

job placements Characterised by higher profit

marginsContract/ Temporary Placements Recurring revenue stream Revenue is generated by HiTech

billing the clients certain rateseither hourly, daily or on a projectbasis, paying subcontractors acorresponding pay rate andmaking a margin in the process

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HiTech Group Australia 2016 AGM

Growth Strategy

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Significant opportunities to grow both organically and through acquisitions

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Continue to grow number of clients and proprietary database (HiBase) of skilled candidates1

Enhance service offering to existing clients by providing a complete recruitment solution in additionto ad hoc contracting engagements

Build on existing ICT expertise to expand into the high margin Consulting/Services space

(e.g. cloud, Security, SaaS, Project-As-A-Service)

Potential to expand services into other geographic markets including overseas

Capitalise on economies of scale achieved from proven business model and long term clientrelationships

Significant opportunity to continue to grow market share in the large NSW and FederalGovernment IT contracting and services market

Opportunity to pursue strategic acquisition opportunities in highly fragmented industryFor

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HiTech Group Australia 2016 AGM

Company OutlookGovernment ICT Expenditure of $5.6 billion in 2015 is forecast to increase to

$6.2 billion by 2018

• Within the ICT market, certain professions are growing at a rapid rate1:– ICT Managers +25.0%– Support and Test Engineers +26.5%– Software Programmers +18.4%

• Employment prospects particularly in the ICT sector are positive, with 9,000 new jobs predicted to be created by 20191

• Our focus is on the sizeable ICT Government contracting sector where we already have strong established relationships andpreferred supplier agreements which will continue to provide further organic growth

• HiTech’s business model continues to be supported by large scale IT transformation projects in both public and privatesectors. For instance, the Federal Government’s Digital Transformation Initiative designed to drive changes in the way thecommunity accesses Government Services ( MyGov, MySchool) and the NBN2

• Information and Communication Technology is HiTech’s niche and continues to top the list of employment growth with ICTjobs contributing around 6% of Australia’s GDP and generating $85 billion revenue per year1

• Australian Government Department of Employment forecasts the ICT employment market to grow 15% by 20203

• HiTech on track to deliver significant gross profit, operating profit and revenue growth in FY2017

• H1 FY2017 profit and revenue results expected to increase between 10%-20% over previous corresponding period

Sources:1. www.joboutlook.gov.au2. www.dta.gov.au3. http://lmip.gov.au/default.aspx?LMIP/EmploymentProjections

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HiTech Group Australia 2016 AGM

ICT Market SnapshotHiTech’s business is leveraged to the positive dynamicsof the ICT employment market

• The digital economy which demands the skills of ICTworkers is forecast to grow from $79 billion in 2014 to $139million in 2020, representing a growth rate of 75% and 7.3%of GDP 1,2

• Skilled high value ICT professionals (such as Digital SecurityExperts) are in high demand and short supply, andAustralian companies continue to use overseas workers tofulfil their ICT skills requirements1

• Australia’s ICT workforce is forecast to rise from 628,000workers in 2015 to 695,400 in 2020, representing anaverage annual growth rate of 2.0% (compared to 1.4% forthe workforce as a whole) and will account for 5.4% of thetotal workforce1

• There is a trend towards contracting vs permanentplacements. On average 80% of the workforce in ICT iscontracted3

• The ICT industry : Nearly A$100 billion(www.austrade.gov.au)

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217,992

251,592

36,211

80,050

3,712

105,808

194,604

225,393

32,594

73,872

3,639

98,708

143,352

196,462

32,003

70,491

4,155

84,531

0 100,000 200,000 300,000

ICT management and operations

ICT technical and professional

ICT sales

ICT trades

Electronic trades and professional

ICT industry admin and logistics

2010 2015 2020

Australia’s Historical and Forecast ICT Employment,2010 - 20201

Sources:1.Deloitte Report, Australia’s Digital Pulse, 20162.Deloitte Access Economics, The Connected Continent II, 20163.ITCRA Employment Trends Report Q4 2015

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HiTech Group Australia 2016 AGM

ICT Employment Market

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The ICT employment market encompasses a wide range of professions outside of those traditionally associated with the ICT industry.Most ICT specialists (97%) work outside the ICT industry itself.

Source: Deloitte Access Economics, The Connected Continent II, 2016

Accountants Other information and organisation professionals

Accounting Clerks Environmental scientists

Advertising,public relations, sales managers Auditors, company secretaries and corporate treasurers

Office Managers Intelligence and policy analysts

Bookeepers Transport services managers

Software and applications programmers Medical laboratory scientists

CEO's and MD's Practice managers

Personal assistants Medical imaging professionals

Advertising and marketing professionals Multimedia specialists and web developers

Solicitors Surveyors and spatial scientists

Secretaries ICT sales professionals

Keyboard operators Mining engineers

General Managers ICT sales assistants

Management and organisation analysts Insurance agents

Production managers Financial dealers

Bank workers Geologists and geophysicists

ICT support technicians Agricultural and forestry scientists

Civil engineering professionals Electrical engineering draftspersons and technicians

Finance managers Librarians

ICT managers Judicial and other legal professionals

Financial investment advisors and managers Telecommunications engineering professionals

Electronic trades workers Urban and regional planners

Human resources managers ICT support and test engineers

Database and systems administrators, and ICT security specialists Archivists, curators and records managers

Payroll clerks Other accommodation and hospitality managers

credit and loan officers Life scientists

supply and distribution managers Other natural and physical science professionals

Insurance, money market and statistical clerks Barristers

Computer network professionals Electronic engineers

Industrial, mechanical and production engineers Electronic engineering draftspersons and technicians

ICT business and systems analysts Chemists, and food and wine scientists

Policy and planning managers Actuaries, mathematicians and statisticians

architects and landscape architects Economists

Engineering and production workers Auctioneers, and stock and station agents

Engineering managers Telecommunications technical specialists

Financial brokers ICT trainers

Electrical engineers Other sales support workers

Chemical and materials engineers

*Bolded occupations are included in the narrow definition of ICT jobs, by OECD

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HiTech Group Australia 2016 AGM

DisclaimerThe information contained in this Presentation (“Presentation”) has been prepared by HiTech Group Australia Limited (“the Company”) and is beingdelivered for informational purposes only.

The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No attempt has been made toindependently verify the information contained in this Presentation. The Presentation does not purport to contain all information that a prospectiveinvestor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors,officers, agents, employees, or advisors give, has given or has the authority to give, any representations or warranties (express or implied) as to, or inrelation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oralinformation made or to be made available to any interested party or its advisors (all such information being referred to as “information”) and liabilitytherefore is expressively disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisors takeany responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect ofthe accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any losshowsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to providethe recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentationwhich may become apparent.

This Presentation should not be considered as the giving of investment advice or recommendations by the Company or any of its shareholders, directors,officers, agents, employees or advisors. Each party to whom this Presentation is made available must make its own independent assessment of theCompany after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinionscontained herein necessarily involve significant elements of subjective judgement, analysis and assumption and each recipient should satisfy itself inrelation to such matters.

This Presentation may contain “forward looking statements”. Where the Company expresses or implies an extension or belief as to future events or resultssuch expectation or belief is expressed in good faith and believed to have reasonable basis. However, “forward looking statements” are subject to risks,uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forwardlooking statements”. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect eventsor circumstances after the date of this Presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

All forward looking statements contained in this Presentation is qualified by the foregoing cautionary statements. Recipients are cautioned that forwardlooking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward lookingstatements due to the inherent uncertainty therein.

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