ENVIRONMENTAL GROUP LIMITED (THE) — AGM Information 2003

Nov 18, 2003

The Environmental Group Limited

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20 November 2003

The Manager Companies Announcements Office Australian Stock Exchange $10^{\rm b}$ Floer 20 Bond Street SYDNEY NSW 2000

Subject: Managing Director and Chairman's Address to Shareholders

Please find the following presentations to be delivered at the Aran.al General Meeting of Shareholders, Tuursday 20^th Nevember 2003.

$\cdots$

Yours faithfully

$\sim$ a f

Victor Mahoney
Company Secretary

and a straight and state $\sim$ $\sim$ $\sim$ A Great Mapoual Construct * CharlesySpanganesenter Serverserver in Production Squading

Delivering environmental benefits to our community

Annual General Meeting 2003

Chairman's Introductory Comments

Work In Progress

Our Recent History

EGL In Perspective

agaaniin 44 maana, 79
Aaniinin 10 maart 111 The Environmental Group Limited

Managing Director's Review

• Exected Profits (\$1.45m) and Revenues (\$17m)
• $>$ Record order book up 150% to \$24 million for 2002/03
• $>$ Substantial opening order book, 1 July 2003 (\$10.6m) and Sirong orders (\$5.5m) first 3 monins 2003/04

• WES acquisition integrated

• Purac Licence / Anglian Water Alliance

• Morant share register

The Year In Review

	30 June 2003	30 June 2002	% Change
Revenue, Smillions	STA	96	EIG
PBT, Smillions	445	0/41	$H\tilde{Y}$
EBITDA, Smillions	(1,444)	OKER	- 7
PAT, Smillions	0/45	0,575	-30
Tax, Smillions	0.404	0435	$-200$
Total Assets, Smillions	433	GZ.	$-103$
CESTEIN CEST equivalents, Smillions	29	23
EPS cans	INF	OSZ!	MA

Revenue

Profit Before Tax

Total Assets 2003

The Building Blocks

"Diverse niche income streams leveraging off common EGL know how and customer base"

EGL Divisions

Gas & Vapour

Market Leader in Australia and Region

Water & Wastewater

First Asset Management Contract

Pressure Sewer

• Market Leader in New Figh Growth Market

• Strong Recurrent Income Stream

Gas & Vapour Projects

Venturi/Packed Tower Scrubber Olfenit Australian Gold Reagents Kwinana, WA

Dynawave Scrubber Olient: Tiwest Kwinana, WA

Water & Wastewater Projects

Nurrung Street Effluent Treatment Plant in Wagga Wagga, New South Wales

Kooringal Effluent Treatment Plant in Wagga Wagga, New South Wales

Pressure Sewer Projects

Installation of pressure sewer systems at Yerong Creek, near Wagga Wagga

EGL's Enjeal Standing Creating the Competitive Folge

EGL an Ethical Company

$>$ Environmental Social Governance

$\frac{1}{2}$ (Corporate Monitor's Ratings) (Rating out of maximum 5 points) $\mathbf{Z}$

$>$ TBL reporting (EGL is 1 of 9 most improved for 2002)

E.

$>$ EGL suitable as an Ethical Investment (SRI). Five screen

Fel as an investingnt

Market Capitalisation as at November 2003

• Market Price per Share
• Number of Shares on Issue
• Market CapitalIsation
• Debt NI en de la provincia de la provincia de la provincia de la provincia de la provincia de la provincia de la provi
  De la provincia de la provincia de la provincia de la provincia de la provincia de la provincia de la provinci
• Shareholders

Liculality

Average Annual Shareholder - 1 year 100%+ en en de la familie de la familie de la familie de la familie de la familie de la familie de la familie de la
Décembre de la familie de la familie de la familie de la familie de la familie de la familie de la familie de Return

• $-296$ (yearly range $12-326$ )
• $-71$ million
• $-321$ million
• Cash /Investments > \$3 million Forecast \$4m by December 2003
• Enhanced Register
• • $-5$ years $40$ $1\%$ oa
• Annual Turnover 87%

The Environmental Group Limited

Chairnan's Vision for the Fudure

Evolving Mix of Income Streams

Competitive tendering > Negotiated contracts > Recurrent facome

Now ETCO Medium $L_{\odot}$ W

FUILLIC Medium Hich Hiclo

Profitable Growth Through...

Organic Growth $\overline{1}$ 2. Acquisitive Growth

Organic Growth

• Leverage off common EGL know how and customer base
• Market segments growing at greater than 30% pa
• EGL expects to grow faster than overall market
• Focus on enhanced EBIT margins target 10%
• Forecast annual revenues of \$50 million in 3 years

Acquisitive Growth

• Track record of identifying and integrating new environmental businesses
• Target business to leverage off EGL's know how and QUStonier base
• Focus on recurrent income streams and strong management
• Sirici evaluation criteria
• Evaluating new opportunities but will not compromise e en la familie de la familie de la familie de la familie de la familie de la familie de la familie de la fami
  De la familie de la familie de la familie de la familie de la familie de la familie de la familie de la famili selection criteria

The Outlook for 2003/2004

• Profitable and cashilow positive result for the first quarter ended 30 September, 2003
• Order book of \$10 million as at 30 September, 2003
• Forecast for the 6 months to 31 December 2003 to outperform and a bhaile an chuid an chuid an chuid an chuid an chuid an chuid an chuid an chuid an chuid an chuid an chuid previous corresponding period in terms of profitability and CESTIOW
• Forecast for the year ended 30 June, 2004 dependent on timing of contract approvals expected over the next three months

Delivering environmental benefits to our community

Annual General Meeting 2003