GROUP CAPABILITY STATEMENT : simplebooklet.com

EXECUTIVE SUMMARYAll shares in the companies are held by the Davis family. John Davis has over 45 years international building experience and 30 years international experience in the manufacture and installation of light weight steel framing, trusses, floor systems and modular buildings.MANAGEMENTManaging Director John Davis Company Secretary Colleen Davis CEO Nicolle Ryan Business Development Arron Davis. Factory Manager Mark Armstrong Senior Estimator Michelle Hewitt Senior Designer Lourens Du Plessis Corporate Management Bradley Summerson BACKGROUND The Cadsteel group of companies evolved from the Harwood Pacific Group that was establish in Darwin in the wake of Cyclone Tracy in 1975 to assist in the city’s reconstruction. The family company relocated to Brisbane in 1988 and over the next decade established a reputation as a quality builder of family homes and small townhouse projects. In 1991 Property established Forest Lake as Brisbane’s first master planned community and Harwood Pacific developed the first townhouse projects and built over 300 homes in the community. In 1998 the company expanded to New Zealand with offices in Christchurch and Auckland and became the second largest builder of homes behind the Fletcher Group. In 1999 the company formed Cadsteel and commenced manufacture of light gauge steel framing for housing and in 2001 introduced light gauge steel framing to the USA with a plant in Orlando Florida. Development of hurricane resistant housing using steel fame construction expanded the business into the Bahamas and across southern Florida, Georgia, Alabama and was selected as key supplier by the USA Corp of Engineers to assist in the redevelopment of New Orleans after Hurricane Katrina and a military project at the Marine Base in Barstow California. Capitalising on the hurricane resistant steel framing systems, modular housing manufactured in Orlando Florida was shipped to The Bahamas for projects at New Providence, Grand Bahamas and Eleuthera. In 2011 the Australian and New Zealand Harwood Pacific companies were subject to a management buyout. In 2021 the company consolidated again in Queensland remains fully Australian family owned.

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Development of the latest innovative technology to produce lightweight galvanised steel frames, trusses, C-Span flooring systems and Modfloor (a revolutionary chassis system for modular housing) continued with plant established at 4/84 Christensen South Road Stapylton in 2021 and in November 2022 due to the rapid growth of the company manufacturing was relocated to a larger factory at 10B/84 Christensen South Road offering over double the production space and an additional 300 M2 of office space to accommodate back of house services. In 2022 a state of the art rollformer was bought on line to manufacture revolutionary steel flooring systems C-Span and Modfloor. The rollformer, the only one in the Southern hemisphere and one of only five in the world is capable of manufacturing in excess of 2,200 lineal metres of product daily per shift. Modfloor is now supplied to modular builders in Queensland, New South Wales and Victoria and MMC Modular builds volumetric modular housing utilising Cadsteel frames and trusses and the Modfloor chassis system. GOALS AND OBJECTIVES The impact of COVID and significant delays in the completion of residential projects due to labor shortages and a global supply deficit of several common building materials has severely impacted the residential building industry. The demand for residential housing in Australia reached crisis point in 2022 and supply continues to fall well behind demand. The group is now transitioning into a supplier to the modular building industry through Modfloor and Cadsteel. The manufacture of modular dwellings has long been hampered by outdated engineering and led to the development of Modfloor as a replacement chassis system for modular housing. Modfloor is making an impact in the modular industry with some of the largest manufacturers in Australia now using the system. Independent testing has proven the strength of the product and speed of assembly. Modfloor’s multi storey option (up to 3 floors) is undergoing final engineering assessment and an option to include integrated in-floor insulation will launch in August 2025

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MODFLOOR https://www.modfloor.com.au/ All modular houses and buildings are manufactured on either a steel or timber chassis designed to enable the finished building (dwelling) to be transported to site by truck then craned into position. Some buildings comprise multiple modules complexed onsite. The use of timber for the manufacture of chassis is declining due to movement of the chassis during transport, weight of the finished product, speed of assembly and the need for qualified carpenters to manufacture. Traditionally, steel chassis have been manufactured from “hot rolled or structural steel” The components of the chassis are then usually welded together to create a torsionally strong chassis. This type of chassis usually requires heavy steel “skid beams’ to support and brace the structure. MODFLOOR completely eliminates heavy hot rolled steel beams, is up to 1/3 cheaper, lighter, stronger, does not require any measuring, cutting or welding and offers Australia’s only corrosion warranty for modular floor systems. Modfloor can be designed to suit virtually any type of foundation system with lengths only limited by transport restrictions and 5.3 metre widths available. Components are manufactured to exact lengths in the factory eliminating waste in the factory and at the point of assembly and the steel is 100% recyclable. Modfloor technology allows modular builders to customise floor panels with less flex and deflection and independent testing has proven the strength and righty of the system. LINK TO INDEPENDENT TEST REPORT Pre-punched service holes allow builders to install plumbing, electrical services even air conditioning ducts in the floor during manufacture rather than onsite. Speed of assembly is proving to be a key motivator for manufacturers looking to speed up production and meet demand. Follow the link below to a video of a ample 12 metre x 4.5 metre chassis that was assembled in under two hours by three unskilled workers with no previous experience. LINK TO ASSEMBLY VIDEO

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MODFLOOR -V- TRADITIONAL STEEL CHASSIS WELDED STEEL CHASSISMODFLOORASSEMBLY PROCESSChassis assembly requires experienced and high-cost welders.!!Components need to be measured, cut and welded often in combination with multiple brackets.!!Location of each joist to be measured then the joists welded to a perimeter beam.No measuring or cutting required and can be assembled with minimal tools by unskilled labour with no welding required.!!!Joists connect to bearers into pre-punched tabs that positively locate the joists and eliminates measuring, cutting and brackets.FAST ASSEMBLYBeams need fabrication, steel cut to length, brackets attached and welders required!to manufactureA typical 12 meter x 4.5 metre chassis can be assembled in under three hours by unskilled labour. No welding needed.STRENGTHChassis strength relates to the deﬂection of the chassis during transport.!!Typical deﬂection rates are 15mm to 20mmIndependent testing conﬁrms nominal deﬂection at a maximum of 4.1mm minimising internal repairs after deliveryWEIGHTChassis are heavy with some individual components requiring forklifts or overhead cranes to move around the factory ﬂoor.Finished chassis are generally 40% to 50% lighter.!! !Typical 12m x 4m Modﬂoor chassis weighs 1350kg, a welded chassis 2700kg and Modﬂoor is 1/10 the weight of a concrete chassis!CORROSION PROTECTIONManufactured from standard!galvanised steel which needs repainting where welding has destroyed the galvanising. No!corrosion warranties.Manufactured from ZinMag ZM310 steel with 7-10 times more corrosion protection than galvanised steel. !Up to 50-year corrosion warranties with 30-year warranty close to the oceanWET AREA STEP DOWNSIncluding wet area step-downs is complex and difﬁcult to achieve due to the supporting structureCan be set from 0mm to 50mm and bevelled to provide ﬂow to drains. ! Choice of joist direction with service holes for wasteREUSABLE LIFTING BRACKETSSingle use lifting brackets welded into the chassis adding complexity, cost and sacriﬁce strengthReusable lifting brackets combine transport tie-downs reducing cost and manufacturing time.FREIGHTOutsourced pre-built chassis incur heavy freight costs often due to wide load restrictions and escort costsNo special transport requirements as Modﬂoor is shipped nationally, ﬂat packed and ready for assembly.SERVICE HOLESNot possible with traditional chassisPre-punched service holes allow installation of plumbing, electrical services even air conditioning ducts in the ﬂoor system during manufacture.WASTEFactory waste steel requires disposalZero factory and on-site waste

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ZINMAG ZM310 THE COATING Manufactured to AS1397:2011, the ZINMAG ZM310 steel used in the manufacture of Modfloor is coated with a zinc-aluminium-magnesium alloy that is highly resistant to corrosion. These alloys have been developed to provide a breakthrough solution in surface corrosion and cut edge protection suitable for aggressive environments. ZINMAG ZM310 steel is exclusive to Modfloor. HOW IT WORKS The magnesium in the zinc-aluminium system accelerates the formation of a highly resistant crystalline film which is extremely stable protecting against corrosion. With the addition of magnesium to aluminium, ZinMag ZM310 stabilises the self-sacrificial corrosion of zinc on the coated surface and on scratches or cut edges that can occur during manufacturing or installation on-site. THE BENEFITS The magnesium changes the corrosion mechanics offering improved cut edge corrosion performance with significantly improved corrosion resistance in harsh environments, including chemical and marine environments. SALT SPRAY TESTING ZINMAG ZM 310 has been independently tested in Australia under ASTM B117-19 and found to be totally rust, corrosion and delamination free after 2,000 hours of testing. The salt spray test under ASTM B117-19 is a standardised method used to evaluate the corrosion resistance of materials and coatings. The test involves exposing samples to a controlled saline environment, simulating the effects of long-term exposure to harsh, corrosive conditions and is an accelerated corrosion test designed to speed up the corrosion process, providing quick results that can be used to predict long-term performance. The test involves placing samples in a chamber where they are exposed to a fine mist of saltwater solution, typically consisting of 5% sodium chloride. The chamber is maintained at a constant temperature, usually around 35°C (95°F), and the samples are continuously exposed to the corrosive environment. General rules can be applied to estimate the equivalence between salt spray test hours and real-life exposure suggesting that 24 hours of salt spray testing can be roughly equivalent to one year of exposure in a marine environment. On this basis 2,000 of successful testing relates to many years of strong corrosion resistance. TEST REPORT LINK

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AUSTRALIAN MODULAR HOUSING OVERVIEW One of Australia's most recent construction trends is the preference for modular construction techniques. Off-site construction methods like modular construction include building prefabricated modules in a factory setting before transporting them to the job site. Prefabricated (Modular) building systems and construction hold a high potential to improve the efficiency and performance of the Australian construction industry in a more sustainable sense. With the market just opening up in the building industry, generating trust and investments in the technology, the market is open to ample opportunities and can witness substantial growth in the coming years. The Australia Prefabricated Buildings Market size is estimated at A$16 billion in 2024, and is expected to reach A$19.5 billion by 2029, growing at a CAGR of 4.93% during the forecast period (2024-2029). Increasing demand for new homes is driving the market. and is primarily driven by the demand for low to mid-rise residential buildings, project homes, and public housing. Increasing awareness about the benefits of prefabricated buildings, such as reduced material waste and less disruption to the surrounding environment, is driving market growth. The adoption of prefabricated solutions in Australia has increased significantly over the past few years. Industry associations and institutions in Australia are launching campaigns to create awareness about the benefits of the prefabricated industry. Leading figures in the Australian industry have recognised the productivity and efficiency gains that advanced manufacturing techniques can offer. Due to various causes, including a tight labour market, rising input costs, and increased demand due to government incentives, the construction and building industries have experienced significant price inflation in most states. However, the problems mentioned above are beginning to affect all types of construction. The cost rises traditionally started in residential construction. Many public spaces in Australia, such as new railway stations, police stations, healthcare facilities, and community centres, are now being built using volumetric modular construction and other prefabricated methods with the assistance of the Australian government.

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CADSTEEL FRAME AND TRUSS PRODUCTS https://www.cadsteel.com.au/ For over 25 years, Cadsteel has continued to manufacture high quality cold-formed steel frames and trusses. The product is non-combustible and can withstand fires, hurricanes, and can be engineered to C4 wind loads. Cold formed steel is a termite, mould, and rot-proof solution and is the most recycled material on Earth. The ease of prefabrication and mass production, fast and easy erection, and installation of Cadsteel Frames and Trusses substantially speeds up construction time. Cadsteel cold formed steel members are fabricated to exact standards and are accurate to within 1.6 mm, allowing even complicated designs to be constructed more easily and with less waste than with traditional materials.

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C-SPAN https://www.cspan.com.au/C-SPAN is a light-weight flooring system designed to replace web and timber joists. Manufactured utilising our “state of the art” rollformer the system comprises both joists and perimeter frame with the joists sitting at the same level as the perimeter, achieving a full load transfer for multi-level dwellings providing strength and reliability. C-Span joists are pre-punched with service holes to provide sufficient space for electrical, plumbing and air-conditioning services within the joist. Manufactured from cold rolled galvanised steel and comprises a C section joist and a perimeter section that incorporates a tab to which the joists are fastened through pre-punched holes. C-Span trucks are fitted with HIAB cranes with substantial reach so that product can be delivered to site, usually without the additional cost of crane hire.

GROUP CAPABILITY STATEMENT

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