LYNCH GROUP HOLDINGS FY25 INVESTOR PRESENTATION 20 AUGUST 2025 For personal use only 2 Important notice and disclaimer The information contained in this presentation and any information which has been or may be supplied in writing or orally in connection with this presentation (together, the Presentation) has been prepared and is being distributed by Lynch Group Holdings Limited (ACN 608 543 219) (Company) or its related bodies corporate (Lynch Group). The Presentation is provided to you on the following ba ...

Financial Data and Key Metrics Changes - The fourth quarter net sales were $257.1 million, a decrease of 7% year-over-year but an increase of 7% sequentially from the third quarter [35][36] - The full year fiscal 2025 net sales were $1.048 billion, down 6% from $1.115 billion in fiscal 2024, primarily due to program roll-offs [45] - The fourth quarter adjusted loss from operations was $21.6 million, a decrease of $11.8 million from fiscal 2024 [36] - Fourth quarter adjusted EBITDA was a negative $7.1 million, down $12.4 million year-over-year [39] - Free cash flow for the fourth quarter was $26.3 million, an increase of $10.5 million from fiscal 2024 [42] Business Line Data and Key Metrics Changes - Record sales for power products in data center applications exceeded $80 million for the full year, nearly double that of fiscal 2024 [14][45] - EV sales represented 20% of consolidated total sales, showing a year-over-year increase of 1419%, but a sequential decrease of approximately 10% from Q3 [16] - The automotive segment faced significant challenges, with historical warranty and quality issues contributing to losses [13][41] Market Data and Key Metrics Changes - The company expects a 10% to 15% decline in EV sales for fiscal 2026 due to weaker market demand and program delays [17] - The company anticipates a significant rebound in EV sales in fiscal 2027 based on customer forecasts and industry projections [17] Company Strategy and Development Direction - The company is focused on improving operational execution and successfully launching a large pipeline of new programs, with 30 new program launches expected in fiscal 2026 [20][49] - The transformation strategy aims to enhance operational efficiency and drive innovation, particularly in data centers and EV markets [30][31] - The company plans to optimize its footprint and reevaluate its product portfolio to align with market opportunities [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fiscal 2026 will be a reset year due to EV program delays, particularly from Stellantis, but expects to double EBITDA despite declining sales [11][12] - The leadership team emphasized the importance of maintaining discipline and focus on objectives amid external challenges such as tariffs and market volatility [24][25] Other Important Information - The company has successfully remediated three material weaknesses in internal controls identified in fiscal 2024 [51] - The dividend was reduced to $0.07 per share to provide flexibility and align with peers, considering the company's financial situation [104] Q&A Session Summary Question: What are the key earnings levers given the expected sales decline? - Management highlighted operational improvements and the elimination of one-time expenses as key factors for expected EBITDA growth despite lower sales [54][58] Question: How many of the new launches are EV platforms? - Approximately 50% of the new program launches are related to the EV market, with a significant focus on data center growth as well [79] Question: Can you clarify the leverage waiver and covenant levels? - The leverage covenants were relaxed, starting at 4.25 for Q4 of fiscal 2025, with confidence in meeting these covenants over the next year [66][67]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $137.8 million, a decrease of 4% from the previous year's fourth quarter. Adjusted EBITDA was $21.1 million, down 17% [4][20]. - U.S. operations saw a revenue decline of 3% and an EBITDA decrease of 8% [4]. Business Line Data and Key Metrics Changes - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, and has since seen revenue and EBITDA increase by 2732% respectively in the four months following its opening [5][6]. - The Central Casino Hotel Cape Girardeau reported an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [9][10]. - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to an overall revenue decline of 7% [12]. Market Data and Key Metrics Changes - The East segment, including properties in West Virginia and Maryland, experienced a revenue decline of 7% and an EBITDA drop of 29% [14]. - The West segment, particularly the Nugget Casino Resort in Nevada, saw a 10% decline in gaming revenue, attributed to low slot hold [16]. Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [22][23]. - There is an ongoing consideration to divest non-U.S. properties, particularly in Poland and Canada, as part of a strategic focus on North American assets [19][72]. Management's Comments on Operating Environment and Future Outlook - Management noted that the low-end consumer segment remains weak due to macroeconomic factors, impacting overall performance [5][23]. - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives and a reduction in capital expenditures [24][22]. Other Important Information - The company has no debt maturities until 2029 and has completed its major capital expenditure cycle, which should lead to improved leverage ratios [21][20]. - The company plans to spend $4 million on growth projects and $14 million on maintenance CapEx in 2025, significantly lower than previous years [22]. Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the low-end consumer weakness is the primary concern, while mid and upper tiers are performing well [27]. Question: What are the thoughts on the Nugget's performance and conference pipeline? - Management noted that the decline in casino revenue is correlated with hotel revenue and expressed optimism for future conference business [31][32]. Question: Will the suspension of gaming machine purchases in Alberta impact operations? - Management does not expect a meaningful negative impact from the suspension, estimating only a 0.5% to 1% effect [34]. Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, focusing on revenue sharing models [62]. Question: Is there a consideration for insider buying or stock buybacks? - Management expressed interest in buybacks but noted restrictions due to insider laws and blackout periods [83].