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COMPANY UPDATE Acquisition of assets from Cablelogic Pty Ltd JULY 2016

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Page 1: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

COMPANY UPDATE

Acquisition of assets from Cablelogic Pty Ltd

JULY 2016

Page 2: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

ABOUT TEMPO

ASX listed contractor servicing the resources sectors – mining, and oil and gas

Target contract size <$50m – geared for scopes of work that are not economic for large players

Larger works targeted in partnership with large Engineering Procurement and Construction firms, and Original Equipment Manufacturers

Well positioned for sustainable and strategic growth – heathy tender pipeline

Key Value Proposition:

Flat management structure that drives lean overheads and improved client responsiveness

Structured front line employee engagement process focused on driving retention and continuous improvement

Efficient management system focused around productivity, quality and risk management

Established frontline productivity tool-kit, comprising of five key tools developed to drive site based activities through continuous monitoring of leading productivity indicators

Exclusive partnership with a tech company aimed at obtaining site-based productivity metrics through the use of innovative micro and geo-fencing techniques

Financials

Strong operating cash flows in the last 12 months to 31 Mar 2016

$11.5m

Record revenue (to year ending 31 Dec 2015)

$79.2m

Record NPAT (to year ending 31 Dec 2015)

$6.7m

Cash at bank (at 31 Mar 2016) $9.8m

Page 3: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

ABOUT CABLELOGIC

Established in 1995, headquartered in Perth, with a regional office and workshop in Karratha

Workforce of ~45 including more than 30 front line employees

Specialist provider of electrical, telecom and data communications services to the Resources, Telecommunications, Commercial and Industrial Building Construction industries

Extensive experience in turnkey fibre optic and communications cabling solutions including design, procurement, installation, terminations and specialist telecommunications carrier grade OTDR testing for LNG trains, gas plants, offshore platforms, mines and camps in both live and construction environments

Strong track record of delivery with an established client base in the commercial and industrial building industry

Dedicated service & maintenance division offering electrical & data cabling services and maintenance support to organisations across WA

Strong track record in renewable energy and energy management solutions for commercial and industrial clients encompassing solar PV grid connected and off grid systems as well as battery storage technology

Achieved Quality Assurance and OH&S certification to AS9001 and AS4801 as well holding many Original Equipment Manufacturers endorsements

Page 4: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE

CREATE

SHAREHOLDER VALUE

ENHANCE

COMPETITIVE

ADVANTAGE

ENSURE

SUSTAINABLE FUTURE

MANAGE RISK

WORK WITH THE

RIGHT CLIENTS AND

PARTNERS

STRATEGIC IMPERATIVE

• Enhances Tempo’s specialised delivery capabilities and extends service offering through a 20 year track record

of successful electrical, telecom and data communication services to the resources and commercial sectors

• Expands Tempo’s presence in the Pilbara region through a regional office and workshop in Karratha

• Assets include work in hand of approximately $4 million and an operational group with specialised plant and

equipment that have delivered an average turnover over the past three years of approximately $15 million

• Cablelogic’s core business is profitable and scalable, but previous investments in non-core assets, coupled

with a weak balance sheet, had forced Cablelogic into receivership

• Allows Tempo to further differentiate on upcoming rail line technology and upgrades, mining, oil and gas

maintenance and sustaining capital projects where specialised electrical, telecom and data communication

expertise and equipment is required

• A highly experienced operational team which will be located at Tempo’s current headquarters, broadening

Tempo’s delivery depth

• Recurring revenue streams through the delivery of long term electrical, telecom and data communication

infrastructure and maintenance services

• An expanded pipeline of opportunities has already been established (through the diligence process) with

existing Cablelogic and Tempo clients

• Allows Tempo to diversify into the commercial and industrial building sectors through a 20 year track record of

delivery with well established clients

• The acquisition has been funded out of working capital, and will not impact Tempo’s ability to fund current

business or support future growth opportunities

• Cablelogic has a strong track-record of delivery to Blue Chip clients in the Resources and Commercial and

Industrial sectors

• Further strengthen Tempo’s established working relationships with key clients such as: Woodside, Chevron,

BHP Billiton, and Rio Tinto

HOW THE CABLELOGIC ACQUISITION DELIVERS ON TEMPO’S STRATEGY

Page 5: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

TEMPO GROUP OPERATING MODEL (POST ACQUISITION)

Cablelogic to become Tempo’s electrical,

telecom and data communication division for the

Commercial and Industrial Building Construction

Industry

Cablelogic personnel and assets will further

differentiate and enhance Tempo’s brand of a

specialised multidisciplinary construction and

maintenance group in the resource sector

Cablelogic brand will be retained and used to

target:

telecom and data communications work in

the Commercial and Industrial Building

Construction Industry; and

long term electrical, telecom and data

communications infrastructure

maintenance service offerings across

metropolitan areas

Cablelogic operational personnel will relocate to

Tempo’s premises and work utilising Tempo’s

management systems

Multidisciplinary

Construction &

Maintenance

Resources Industrial &

Commercial

Electrical &

Telecommunications

Page 6: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

CABLELOGIC CORE CAPABILITES

Resources Solutions Commercial and

Industrial Solutions

Service and

Maintenance Solutions

Experience in the design and construction

of electrical, data and telecom

communication infrastructure for onshore

plant, offshore rig, platforms, ship cabling,

mines and mine camps

State-wide coverage supported by a Perth

based operations team, and regional

Karratha branch

Experience in intrinsically safe equipment

Fibre optic single and multimode cabling

from 6 core to 144 core

Cat5e, cat6a, and cat7 structured cabling

systems

Program Logic Controllers, and E&I work

Multi core backbone cabling for controls

and communications

System cabling for various applications

such as Alan Bradley, ABB VSDs, Vesda

fire systems, security, Triconics etc

Satellite systems

RF and wireless

Conduit, pit and pipe, cable ladder, tray

and basket support systems

20 years of experience providing

electrical, telecom and data infrastructure

design and installation to commercial and

government clients

Experience in providing solar power and

energy efficiency solutions

Electrical and structured cabling

Fibre Optic single and multimode cabling

from 6 core to 144 core

Satellite and wireless communications

Security and Access control systems

Fire and EWIS

Lighting and Telephony installations

Preventive and reactive maintenance for

electrical and communications network to

minimise downtime

Metropolitan coverage supported by a

dedicated Service & Installation team

Complete service and support for

electrical, data and voice network

infrastructure

Repair of data outlets and cabling

Repair and testing of fibre optic cabling

Repair or replacement of electrical

cabling, light fittings, emergency light

audits, RCD test and repair, test and

tagging of power points, outlets, office

equipment and stores equipment

Page 7: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

KEY PROJECTS/TRACK RECORD – RESOURCES SOLUTIONS

LNG4 & 5 and Pluto

Gas Trains

Client: Woodside Petroleum

Scope: Execution of fusion spliced

fibre optic terminations to support

ethernet LAN network, gas plant

process control systems, CCTV,

fire protection systems, security

and access control systems and

other services. Temporary and

permanent construction building

fibre and copper cabling

Mooka Stage 1 & 2

Ore Car Repair Shop

Expansion Project

Client: McConnell Dowell & BHPB

Scope: Installation of

communications, fibre optic and

E&I cabling infrastructure for new

machines and robotic systems,

PLC systems, commissioning and

electrical punch list items

Rio Tinto Iron Ore Rail

Capacity Enhancement

Project

Client: Ansaldo STS & Rio Tinto Iron Ore

Scope: Rail signalling upgrade and new

construction project along side live

operating rail network. Drum testing of

fibre optic cables, post installation

testing of fibre optic cables, installation,

termination and testing of mainline and

spurs cables, installation, termination

and testing of cables between signalling

equipment cases testing and certification

to client and vendor specifications

Page 8: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

KEY PROJECTS/TRACK RECORD – RESOURCES SOLUTIONS

Oyu Tolgoi Gold,

Copper Mine, Mongolia

Client: Rio Tinto and Oyu Tolgoi

.

Scope: Engaged by Rio Tinto to

consult, assist, train and work

alongside Chinese and Mongolian

communications contractors for

best practices for installation,

termination and certification

testing of fibre optic network and

process control systems for the

new underground gold mine

located in the Gobi desert in

central Mongolia

Wheatstone LNG

Offshore Platform

Client: BAE Systems and Chevron

.

Scope: Execution of fibre optic

core testing. Support subsea

umbilical fibre optic cable

termination and testing to

platform’s junction box. Test, re-

terminate, retest and certify 6,8,&

24 core, OS1 and OM3 fibre

cables to Chevron standards

Cloudbreak Mine – Newman

.

Client: Downer EDI & Fortescue Metals

Group

Scope: Cable installation for new mine

including 48 core fibre optic and

communications cabling facilities for

process control, marshalling and LAN

systems

Page 9: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

KEY PROJECTS/TRACK RECORD – COMMERCIAL & INDUSTRIAL SOLUTIONS

BP Refinery, Kwinana

Client: Gavin Construction & BP

.

Scope: Large open general lab, office

space, amenities, second floor plant

room, octane test engine facility,

process analyser workshop and

support facilities

Willetton Senior High

School

Client: Cockram Construction

.

Scope: Constructed electrical services,

fibre optic backbone and cat 6 data

cabling for six new blocks while

keeping the existing school operating

GP Super Clinic

Client: Pindan & Metropolitan

Redevelopment Authority

Scope: Subdivision of the heritage

listed Midland Rail Workshops

(Block 1) and construction of a

new multi-storey building within the

confines of the heritage listed

building

Page 10: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

KEY PROJECTS/TRACK RECORD – SERVICE & MAINTENANCE SOLUTIONS

Attorney General’s Dept

Client: Australian Government

.

Scope: Cable installation, service

and maintenance state wide over the

past 20 years

Vodafone

Client: Cellular Asset Management and

Vodafone

Scope: Installation of IBC (in building

cabling services) in airports, shopping

centres, public spaces, hospitals and

high rise buildings for mobile phone

services

Flight Centre

Client: One Group Retail and Flight

Centre .

Scope: Installation of voice, data,

and electrical equipment for new

branch stores over the past 10

years

Page 11: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia

DISCLAIMER

This Presentation is provided by Tempo Australia Ltd (the Company).

You should not rely upon anything in this presentation and/or any information obtained from the Company,

its Directors or their associates in deciding whether or not to seek to participate in the shares of the

Company.

This is not an offer to subscribe for securities in the Company.

The Presentation may contain quantitative statements of anticipated future performance such as

projections, forecasts, calculations, forward-looking statements or estimates all of which are based on

certain assumptions (Forward Looking Statements).

The Forward Looking Statements may involve subjective judgements and are based on a large number of

assumptions and are subject to significant uncertainties and contingencies, many of which are outside the

control of the Company and may not prove to be correct.

No representation or warranty is made that any Forward Looking Statements will be achieved, or occur, or

that the assumptions upon which they are based are reasonable or the financial calculations from which

they have been derived are correct. Actual future events may vary significantly from the Forward Looking

Statements.

Each Recipient should undertake its own independent review of the Forward Looking Statements,

including the assumptions on which they are based and the financial calculations from which they are

derived

Page 12: COMPANY UPDATE - tempoaust.com · ACQUISITION BUSINESS CASE – STRATEGIC RATIONALE ... PARTNERS STRATEGIC IMPERATIVE ... located in the Gobi desert in central Mongolia