Baumart : Appendix 4C - December 2021

For personal use only

ASX RELEASE

31 January 2022

MARKET UPDATE FOR QUARTER ENDED 31 DECEMBER 2021

BauMart Holdings Limited (ASX: BMH) ("BauMart" or the "Company") is pleased to present its quarterly cash report and operational update to 31 December 2021.

COVID-19 Pandemic

• Supply chain bottlenecks continue to affect customer lead times, particularly in our key markets of New South Wales and Victoria.
• In Malaysia, our key supplier continues to be affected by interruptions to supply chain as a result of the end-of-year peak season and frequent shipping delays.

Group Results and Commentary on Appendix 4C

• Net operating cashflows for the quarter was negative at $44K with a decrease of $93K in receipts from customers on the previous quarter. Ongoing supply chain delays resulted in the Company investing cashflows into inventory build-up necessary to support sales and associated costs.
• Payments to Related Parties of the Company and their associates comprised executive directors' salaries and non-executive director fees of approx. $73K.
• At 31 December 2021, the Company had $343K cash at bank and $163K in available trade finance facilities. The Company also currently holds an investment in listed securities with a market value of approximately $4.3m.
• Company expenditure for the quarter was in line with normal day to day operations including payments for inventory, staff costs and marketing
• Positive revenue growth for Q2 FY22 to $1.34M (Q2 FY21: $1.27M), an increase of 6%.

Materials Handling Division

• Revenue for Q2 FY22 totalled $1.3M (Q2 FY21: $1.1M), an increase of 19%
• Trading margins remained under pressure from spiking and unpredictable supply chain costs.
• Exorbitant port charges have significantly affected variable costs month to month.
• Delivery schedules from Malaysia have improved however peak season shipping (October to March) has caused further delays.
• New South Wales and Victoria were in some form of lockdown for a portion of the quarter which impacted our ability to deliver orders within the period.
• Delivery lead times remain unpredictable with customer expectations difficult to manage.

Source & Procure Division

• Revenue for Q2 FY22 totalled $1K (Q2 FY21: $154K), a decrease of 99%.
• Pleasingly, the mining supplies project has gained traction with multiple purchase orders received in Q2 FY22, expected to be delivered in Q3 or Q4 FY22, with revenue recognised in the same quarter.
• Supply chain issues have affected revenue capture in Q2 FY22.

Suite 3, 15 McCabe Street

North Fremantle, Western Australia 6159

1. [phone] www.baumart.com.au

BauMart Holdings Limited

ABN 87 602 638 531

For personal use only

ASX RELEASE

31 January 2022

Building Materials Division

• Revenue for Q2 FY22 totalled $39K (Q2 FY21: $13K), an increase of 189%.
• Stronger finish to the quarter and half year for this division.
• Long lead times due to supply chain and production constraints affected the division's ability to capture revenue within the desired time frames.

Other Activities

• The Company received recurrent income during the quarter from its managed services contract with a Perth-based industrial parts washer business.
• In line with its ongoing strategic business review, the Company has signed a binding terms sheet with Washpod Consolidated Pty Ltd (refer ASX Announcement dated 31 January 2022) that provides the Company with its first project-based recurring income stream.
• The Company is looking to grow the projects arm of its business and continues to evaluate more opportunities within its network.

Strategic Business Review

The strategic business review is ongoing with some positive advancement during the quarter. As part of this review the Company has announced updates to the board of directors. Subsequent to the end of the quarter Ben Talbot has joined the Company as an executive director and Michael Crichton has stepped down as a non-executive director. Berthus Budiman is being redesignated to a non-executive director effective 1 February 2022.

The Company continues to work closely with our advisors and is evaluating potential projects and strategies to deliver long-term growth and maximise shareholder value, with a focus on the renewable energy and recycling sectors.

This announcement was authorised by the Board of BauMart Holdings Limited.

For further information, please contact:

Matthew Logan, Executive Director

T: [phone]

1. [e-mail]

About BauMart Holdings Limited

BauMart Holdings Limited (ASX: BMH) is an Australian public company listed on the Australian Securities Exchange. The origins of the Company began with securing distribution partnerships with suppliers of building materials and its investment and leasing of automated glass-processing equipment. Since its listing in June 2015, the Company has diversified its business across a broad range of divisions including, but not limited to:

• supply of industrial products, including plastic material handling unit load devices;
• supply of building products, including premium volcanic natural stones;
• sourcing, procurement and end-to-end supply chain services; and
• managed services.

Headquartered in Perth with operations in Sydney, Melbourne and Brisbane and overseas in Auckland, New Zealand, the Company has a far-reaching presence and a robust network of infrastructure that is positioned for growth.

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

BAUMART HOLDINGS LIMITED
ABN	Quarter ended ("current quarter")
87 602 638 531	31 DECEMBER 2021

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,900	3,893
1.2	Payments for
	(a)	research and development	-	-
	(b) product manufacturing and operating	-	-
		costs
	(c)	advertising and marketing	(15)	(30)
	(d)	leased assets	-	-
	(e)	staff costs	(174)	(356)
	(f) administration and corporate costs	(141)	(223)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	159	161
1.5	Interest and other costs of finance paid	(20)	(22)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	293	293
1.8	Other (provide details if material)1	(2,046)	(4,098)
1.9	Net cash from / (used in) operating	(44)	(382)
	activities

1. Payments for inventory, lease payment obligations and other general working capital

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c) property, plant and equipment	-	(2)
	(d)	investments	-	-
	(e)	intellectual property	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
	(f)	other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)1	84	(35)
2.6	Net cash from / (used in) investing	84	(37)
	activities

1. Other comprised of net payments for underground mining equipment project totalling $84K (refer ASX

Announcement dated 4 October 2019 for details on the Company's mining equipment project).

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	-
	equity securities or convertible debt
	securities
3.5	Loans and borrowings	26	4
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	26	4
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	260	750
4.2	Net cash from / (used in) operating	(44)	(382)
	activities (item 1.9 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(6 months)
			$A'000
4.3	Net cash from / (used in) investing activities	84	(37)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	26	4
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	17	8
	cash held
4.6	Cash and cash equivalents at end of	343	343
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	343	260
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	343	260
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their	73
	associates included in item 11
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

1. Director's fees, salaries, and superannuation paid.

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.