MaxiPARTS : Annual Report

In FY22 the business saw significant change and undertook a major transformation as it began the journey to set itself up on a path that would enable it to capitalise

on the foundations of being a pure play, commercial parts focused business; setting a pathway for future growth.

In a year full of change, the first milestone began in August 2021 when MaxiTRANS sold off its 'big brother' in the Trailer solutions business to the private market.

Separating the businesses required significant effort both commercially and through the separation of the joint supply and business functions. Post-sale of the business the Group went through a name change from MaxiTRANS to MaxiPARTS. In the end through the sale of the business and associated properties, the Group was able to reduce the ongoing Group's debt and pay out a special dividend of 62.5 cents per share.

The outcome of the separation resulted in letting the 'jewel' of the business come out of the shadows and establish itself

with its peers as a pure play, commercial parts business with renewed focus and access to capital for executing its growth plans.

Post-separation the business remained focused and committed to providing our customers with quality parts and great service, resulting in further Revenue and Profit growth in the underlying business.

With the Group refocused and energised for further accelerated growth, MaxiPARTS followed its strategic rationale and core strategy which led to the second major milestone of the year

in February 2022 with the acquisition of Truckzone Group only a few months after separation. For more information regarding the Truckzone Acquisition, refer to page 08.

The acquisition of the Truckzone business so early in our journey as a dedicated parts distribution business has accelerated our strategic growth plans surrounding network and core product expansion, allowing us to remain well-positioned as one of the industry leaders.

The Group remains focused to execute on the growth synergies expected from the Truckzone acquisition and financially strong to continue to add value through further organic and inorganic strategic growth projects that are in-line with the Group's strategic rationale.

This ability to deliver consistent growth,

profit improvement, enhanced cash generation and higher valuation multiples was the fundamental reason the company completed the disposal of the Trailer solutions business and is now positioned as a market leader

in the commercial vehicle parts industry and pure distribution business.

The acquisition of the Truckzone business, so early in our journey as a pure distribution business is exciting. With this acquisition allowing us to accelerate our growth over the coming years through two key strategic areas of network and core product expansion. To find an opportunity that covered both of these areas, in a business with some scale made the acquisition extremely well aligned with the stated strategy we presented to the market earlier in the year.

The support we received from all different size and types of shareholders through the capital raising process that allowed us to complete the acquisition, was very strong.

As a Board and business we thank you for your trust and support through this process.

With the changes seen in our business, along with an overall business landscape that is changing at a rate rarely (if ever) seen, we have reviewed our previous plans and updated our strategic plan to take the business forward. As illustrated in recently released investor packs, our strategic plan focuses

on four key pillars of activity being:

• Network
• People
• Product
• Systems and Solutions

The focused initiatives within these pillars are designed to not only drive growth in the business, but to ensure the foundations remain in place

to support this growth over a sustained period.

After a number of periods where the

business had not been electing to pay dividends to address the capital constraint the business worked through, we are pleased to have completed the significant capital return to shareholders in the first half through the special dividend of 62.5 cents (allowing higher than normal utilisation of franking credits) and

declare a FY22 H2 dividend of 2.5 cents, in line with our previously stated dividend distribution intention.

Finally, as previously outlined, the Board has been working through a Board renewal program on the basis of finding the balance between maintaining stability and continuity at a Board level as well as bringing in new Directors with fresh, innovative ideas and different experiences that are closely aligned to the core operations of the distribution business. This program has progressed well during the year with Gino Butera and Debra Stirling joining the Board and

Mary Verschuer being appointed Deputy Chair as part of this Board renewal process.

The Board and I thank you for your support, in what has been a year of significant change for the business.

Regards,

Rob Wylie

Chairman