Forge Group Ltd David Simpson

Chief Executive Officer

Forge Group Limited HY Results 2013

ASX Spotlight - Small to Mid Caps Conference

Thursday 28 February 2013

David Simpson, MD & CEO

COMPANY OVERVIEW

Forge Group Limited (ASX:FGE) has emerged as a leading engineering,

construction and maintenance service provider to the power, infrastructure,

mining, and oil & gas sectors in Australasia and Africa. With a unified brand and

market presence, Forge is well placed for growth.

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FINANCIAL HIGHLIGHTS

A Strong Half-Year Performance – On-Track To Meet Full Year Forecasts

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Solid half-year NPAT up 60% to $33.9

million

Strong revenue growth – up 123% to

$502.9 million

Cash position robust at $187 million

EPS of 39.4 cents – a 54% improvement

First half dividend increased from 6c to

10c since Dec 2011

Order book of $1.04 billion as at 23

January 2013 – underpins FY2013 and

FY2014

Well funded for future growth

HFY13

($m)

HFY12

($m)

Change

(%)

Revenue 502.9 225.9 123

EBITDA 61.8 33.6 84

NPBT 49.0 30.2 62

NPAT 33.9 21.3 60

Cash and Term

Deposits 187.2 93.1 101

HFY13

(cps)

HFY12

(cps)

Change

(%)

Basic EPS 39.4 25.5 54

Diluted EPS 39.4 24.7 59

Dividend 10.0 6.0 67

NB: Table Dec 2011- Dec 2012 Comparative

OPERATING AND STRATEGIC HIGHLIGHTS

Safety, Operations and Strategy Performance Underpinning Growth

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Safety

Significant improvement in safety performance – a key priority for management

Forge Group Limited completed 2012 with a TRIFR of 14.20 and an LTIFR of 0.55, reductions of 22%

and 42% respectively when compared with December 2011.

2012 saw an increase in hours worked (exposure hours) of 75%

Operations

Integration and rebrand of four business units into one distinct brand – now trading as Forge Group

Strong pipeline of work in growth markets, particularly power and mining

Continued to deliver outstanding results in core business areas

Amount of work secured July 1 2012 - 23 January 2013 circa $0.6 billion

Strategy Defined

Continue to grow EPC power and mining services in diversified geographies

Growth in market share in the process infrastructure sector

Developed our asset management services across Australia and Africa

Growth in market share of services to the oil & gas industry

Geographical diversification continuing – growing Forge in new markets

STRENGTHENING SAFETY PERFORMANCE

Driving World Class Safety Standards is an Ongoing Focus

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NB 37% of Man hours from Oct 2012 attributed to the inclusion of Forge Group Power and Forge Group Africa.

Group wide safety management system to support continual improvement in safety culture - implemented in 2012

Advocates safety leadership and focus across the group

New initiative ForgeSafe Cultural & Behavioural Expectations (CBE) Program

Continuation of SafeSpine rollout

RECORD HALF-YEAR REVENUE AND PROFIT

Continued Growth in HY Revenue and Earnings

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UNDERLYING EARNINGS STRONG

Committed to Sustainable Growth

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CONSISTENT RETURNS FOR SHAREHOLDERS

Solid EPS Growth Delivering Long Term Returns for Shareholders

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ORDER BOOK

As at 23 January 2013, Forge Group had an Order Book Value of $1.04 Billion

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By Sector

FINANCIAL POSITION AND FUNDING

Well Positioned For Growth. Minimal Capital Required Going Forward

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Bank Guarantee & Insurance Bond Facilities

Utilised 290 65 346

Available 92 81 14

Total Facility 382 146 162

HFY13

($m)

HFY12

($m)

Change

(%)

Cash and Term Deposits 187.2 93.1 101

Net Cash (Cash less interest bearing loans and borrowings) 161.9 81.8 98

Capital Expenditure (Cash and Hire Purchase) 11.0 10.6 3

FOUR DIVISIONS TO DRIVE GROWTH

Diversified Service Provider Across Range of Growth Sectors

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BROADENING OUR GEOGRAPHICAL PRESENCE

Pursuing Growth Opportunities in East Coast of Australia and Africa

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GROWING OUR TEAM

Operating Under One Unified Forge Group Brand

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Integration and rebrand of four business units

completed – one culture

Appointment of senior executives to

complement strategy and growth plans

Implemented incentive plans with links to

financial performance and shareholder returns

Continued to focus on people to optimise the

new integrated operating model of Forge Group

Embrace our values and support our strategy

through attraction, development and retention of

our people at all levels

DIVISIONAL REVENUE SUMMARY

Business Unit Contributions

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*Forge Group Power (CTEC) was acquired Jan 2012.

**This is a newly created entity which had no activity prior to 31 December 2012.

HFY13

($m)

HFY12

($m)

Change

(%)

Forge Group Minerals And Resources 55.0 52.6 5

Forge Group Power* 202.5 Nil N/A

Forge Group Construction (incl Africa) 344.9 220.0 57

Forge Group Asset Management** Nil Nil N/A

Internal Eliminations (99.5) (46.7) 112

Total 502.9 225.9 123

FORGE GROUP MINERALS AND RESOURCES

Providing Engineering; Process Design; Project Management Services Including

Feasibility Studies, Front End Engineering Design, EPC Contract Execution; And Turnkey

Project Solutions.

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HIGHLIGHTS

Completion DeGrussa Copper Project

Completion Shark Bay Salt Washplant (Feb 2013)

Strong tender pipeline

MAJOR PROJECTS DeGrussa Copper Project, EPC, Sandfire Resources,

Western Australia

Obuasi Gold Mine, EPC, AngloGold Ashanti, Ghana,

Africa

Shark Bay Salt Washplant, Design and Construction,

Shark Bay Resources, Western Australia

REVENUE* SALES CONTRIBUTION %*

*Based on operating segment pre-consolidation revenues.

FORGE GROUP POWER

Forge Group Power Is A Turnkey Project Provider To The Energy And Utilities Sectors

Specialising In Gas Turbine Power Plants.

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REVENUE*

SALES CONTRIBUTION*

MAJOR PROJECTS Diamantina 242 MW Combined Cycle Power Station,

EPC, DPS LTD, Queensland, Australia

Cape Lambert 120 MW, Combined Cycle Power

Station, EPC, RTIO, Western Australia

West Angelas Power Station 100MW Open Cycle Power

Station, EPC, RTIO, Western Australia

HIGHLIGHTS $505 million contract awards 1 July 2012 - 23 January

2013

Chief Executive promoted internally, former Chief

Executive assumes Chief Development Officer role

96% increase in Employees since July 2012

Completion McKee 100MW Open Cycle Power Plant,

NZ

Established Thailand Base

*Based on operating segment pre-consolidation revenues.

FORGE GROUP CONSTRUCTION

Forge Group Construction is an Award Winning Multi-disciplinary Contractor Providing a

Complete Suite of Construction Services to All Sectors

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HIGHLIGHTS

Awarded $82 million in new contracts

Completion of Solomon Iron Ore Primary Crushing

Hubs

Solid tendering pipeline Power, Minerals &

Resources

REVENUE*

SALES CONTRIBUTION*

MAJOR PROJECTS Solomon Iron Ore Processing Facility, Civil and

Concrete Works, FMG, Western Australia

Obuasi Gold Mine, EPC services, Anglo Gold Ashanti,

Ghana, Africa

West Angelas and Brockman Fuel Hubs, EPC, RTIO,

Western Australia

*Based on operating segment pre-consolidation revenues.

FORGE GROUP ASSET MANAGEMENT

Forge Group Provides A Broad Range Of Asset Management Services Across Our

Customer’s Asset Life Cycles

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Newly created entity which had no activity prior to 31 December 2012

Supports Forge Group’s unique ability to provide end to end project solutions

Maintenance services from current contracts to flow into Asset Management Business Unit.

MAJOR PROJECTS

South Hedland Power Station, Operations and Maintenance Contract

Water Corporation, Asset Management Program

On-going Navy Maintenance

OUTLOOK - FORGE GROUP PERFORMANCE

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On-track to achieve forecasted FY2013 NPBT of between $90 million - $100 million

Full year revenue of between $950 million to $1 billion

Revenue and earnings evenly weighted between first and second half

Order book of $1.04 billion as at 23 January 2013

Solid bidding pipeline underpins growth

Continue geographic diversity

– Blue chip partners in new markets

– Broadening sector focus

– Expanding existing capability into Eastern States and strengthening African presence

Continued emphasis on growing asset management business

$187 million in cash and term deposits – well placed to take advantage of growth opportunities

DISCLAIMER

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This presentation has been prepared by the management of Forge Group Ltd (the Company)

for the benefit of brokers, analysts and investors and not as specific advice to any particular

party or person. The information is based on publicly available information, internally

developed data and other sources. Where an opinion is expressed in this document it is based

on assumptions and limitations mentioned herein and are an expression of present opinions

only. No warranties or representations can be made as to the accuracy, validity, completeness

or reliability of the information. The company disclaimers and excludes all liability (to the extent

permitted by law), for loses, claims, damages, costs and expenses of whatever nature arising in

any way out of or in connections wit the information, its accuracy, completeness or by reason of

reliance by any person on any of it. Where the Company expresses or implies an expectation

or belief as to the success of future developments, such expectations or belief is expressed in

good faith and believed to have a reasonable basis. However, such forecasts are subject to

risks, uncertainties and other factors which could cause actual results to differ materially from

future results expressed, projected or implied by forecasts made in this presentation. The

Company does not have any obligation to advise any person if it becomes aware of any

inaccuracy in or from any forecast or to update such forecast.

THANK YOU & QUESTIONS

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Forge Group Ltd

45 Stirling Highway, Nedlands, Western Australia, 6009

T (08) 6389 8500

F (08) 6389 8599

E investor@forgegroup.com.au

Forge Group Ltd David Simpson

Chief Executive Officer