Peoplein (PPE) Investor Update summary

Strategic divestment and capital allocation

• Announced sale of Health and Community brands, First Choice Care and Edmen, to Healthcare Australia for AUD 20.25 million in cash at a 6.2x EBITDA multiple, with completion expected by 31 December 2025, subject to customary conditions.

• Proceeds from the sale will reduce net debt to zero, strengthening the balance sheet and providing significant capital for future growth and acquisitions.

• Divestment provides capital to accelerate a focused growth plan in infrastructure, defence, food services, agriculture, and professional services.

• Divestments, including Techforce, have reduced overall earnings by about 40%, with Health and Community previously contributing 10% of revenue.

• Buyer Healthcare Australia offers scale and market position to support further growth and opportunities for staff.

Growth strategy and sector priorities

• Growth plan targets Infrastructure Construction (especially in Queensland), Defence and Defence Industry, Food Services and Agriculture, and Professional Services.

• Over 50% of revenue now comes from Queensland, positioning the group to benefit from major infrastructure investments.

• Strategic focus on market dominance, accretive acquisitions, and operational excellence, leveraging a simplified structure for cross-selling.

• Plans to capture demand from Queensland's infrastructure pipeline, expand in defence staffing, and grow international staffing solutions, especially through the PALM scheme.

• Focus on technology to drive productivity, margin expansion, and cost efficiency.

Trading update and financial outlook

• Q2 trading conditions have improved, with Engineering, Trades, and Labour on track for over 50% organic growth.

• RWM business challenges are easing, Education is growing, and Professional Services remains stable with some growth in Perigon.

• Education segment grew organically by $0.5M in H1.

• H1 FY26 normalized EBITDA is projected between AUD 15 million and AUD 16 million, including discontinued operations.

• Cash conversion in H1 is close to 80% of EBITDA, at the lower end of guidance.