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21 May/June 2023 | THE DAVEY BULLETIN Davey Chairman, President and CEO Pat Covey speaks during his presentation at the 2023 Annual Shareholders' Meeting at the Davey Institute in May. While in-person attendance was once again an option, the shareholders' meeting also featured a live broadcast accessible to employees and shareholders. Covey said. "Tons of opportunity here, especially on the asset management side and the infrastructure piece. The build-out of all things electric, the build-out of all things internet, really a ton of potential and money being spent on that, so we are really optimistic about the direction of that group." GREEN INDUSTRY GROWTH Days before the shareholders' meeting, Lawn and Landscape released its annual ranking of the top 100 largest companies in the green industry in the U.S. and Canada. For 2023, the Davey Company climbed from No. 3 to No. 2 on the Lawn and Landscape Top 100. The rankings are based on revenue earned the prior year. Covey said it is a noteworthy accomplishment for Davey to move up the L&L Top 100 list by surpassing Memphis-based TruGreen, which has not experienced the same rate of growth as Davey has in recent years. "It's a nice win to jump into the No. 2 spot," Covey said. CAPITAL INVESTMENTS CONTINUE Both Covey and Paul touched on capital investments that were under way in 2022 and continue in 2023, including construction of the Davey SEED (Science, Employee Education and Development) Campus, the SAP conversion, and renovations to the original two corporate office wings. Paul provided an update on the current state of Davey's conversion to SAP ® S4/HANA, which is an upgrade of the company's business software solutions for managing payroll, client billing, project management, and all other back-end business operations. The first phase of the project launched SuccessFactors in October 2021. Paul said a total 84 employees are involved in managing the conversion process and are comprised of corporate IT staff, operations personnel, and corporate support departments. "There is a strong commitment at all levels of the organization to this conversion," Paul said. "This is no small effort." Construction on the SEED Campus, which is located across the street from the corporate office, is well underway with the main roadway being installed, and water and power lines being extended to the main building site. The target completion date for the main building is late 2024. "It's a testament to our commitment to our field employees, who are going to be training there," Covey said. "That's what it's all about. That's the only thing it's about. It's an investment. Between the third wing, the building renovations, the SEED Campus and SAP, we are confident for the next 20 to 30 years much of that infrastructure will be in place, so the growth we want to continue to see will be accomplished without putting a lot more money into infrastructure." STRONG START TO 2023 Covey said Davey has started 2023 off strong. Sales companywide are up 8.5 percent compared with the first quarter of 2022. Additionally, operating profit is at 3.2 percent for the first quarter of 2023 compared with 2.4 percent in 2022. "Our first quarter has been very strong," he said. "It's a really good start to the year, thanks to operations and everybody who has put in the work because there has been a ton of work, especially in the West with the storms. We're very optimistic about this year. The demand is there." Davey Executive Vice President and Chief Financial Officer Joe Paul speaks during the annual shareholders' meeting. One topic Paul addressed was employee ownership at Davey, including the current share price ($18.50 per share), and the total number of shareholders (6,216 as of December). "This is the special sauce," Paul said of employee ownership. "This is what makes us different."

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