Baumart : Appendix 4C - March 2022

MARKET UPDATE FOR QUARTER ENDED 31 MARCH 2022

BauMart Holdings Limited (ASX: BMH) ("BauMart" or the "Company") is pleased to present its quarterly cash report and operational update to 31 March 2022.

COVID-19 Pandemic

• • Supply chain bottlenecks, whilst easing, continues to affect customer lead times, particularly in our key markets of New South Wales and Victoria.

Group Results and Commentary on Appendix 4C

• • Net operating cashflows for the quarter was positive at $476K with an increase of $250K in receipts from customers on the previous quarter.

• • Payments to Related Parties of the Company and their associates comprised executive directors' salaries and non-executive director fees of approx. $93K.

• • At 31 March 2022, the Company had $703K cash at bank and $300K in available trade finance facilities.

• • 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 Q3 FY22 to $1.87M (Q3 FY21: $1.32M), an increase of 42%.

Materials Handling Division

• • Revenue for Q3 FY22 totalled $1.8M (Q3 FY21: $1.14M), an increase of 58%

• • Trading margins remained under pressure from spiking and unpredictable supply chain costs.

• • Exorbitant port charges have significantly affected variable costs month to month.

• • Delivery lead times remain unpredictable with customer expectations difficult to manage.

Source & Procure Division

• • Revenue for Q3 FY22 totalled $64K (Q3 FY21: $98K), a decrease of 35%.

• • The mining supplies project has continued to grow with increasing purchase orders received in Q3 FY22, expected to be delivered in Q4 FY22, with revenue recognised in the same quarter.

Building Materials Division

• • Revenue for Q3 FY22 totalled $0K (Q3 FY21: $82K), a decrease of 100%.

• • As part of the strategic review and stronger focus on the mining supplies sector, BauMart has not focused attention on this sector.

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 finalised a supply and distribution agreement with Washpod Consolidated Pty Ltd (refer ASX Announcement dated 22 March 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 Company continues to work closely with our advisors and is evaluating potential projects, divestments and strategies to determine the optimal future direction of the Company.

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

For further information, please contact:

Ben Talbot, Executive Director

T: [phone]

E:[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.

Rule 4.7B

Appendix 4C

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

Name of entity

BAUMART HOLDINGS LIMITEDABN

87 602 638 531

Quarter ended ("current quarter")

31 MARCH 2022

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 months) $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material)1 1.9 Net cash from / (used in) operating activities	2,150 - - (2) - (202) (88) - 166 (3) - - (1,545)	6,043 - - (32) - (558) (311) - 327 (25) - 293 (5,643)
476	94

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	(960)	(962)
(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.

Appendix 4C

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

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 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 2.6 Net cash from / (used in) investing activities	- - - - - - - - - 988	- - - - - - - - - 953
28	(9)

1. Other comprised of remaining payments for underground mining equipment project totalling $988K (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 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 activities	- - - - (136) - - - -	- - - - (132) - - - -
(136)	(132)

4.

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

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

343 476

750 94

Appendix 4C

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

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 months) $A'000
4.3 4.4 4.5 4.6	Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	28 (136) (8)	(9) (132) -
703	703

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A'000	Previous quarter $A'000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	703 - - -	343 - - -
703	343

6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 11 93 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.