ENVIRONMENTAL GROUP LIMITED (THE) — Board/Management Information 2016

Sep 18, 2016

ABN 89 000 013 427 Unit 1A, 9 Packard Avenue Castle Hill NSW 2154 Telephone: (02) 8858 3499 Facsimile: (02) 9899 3463

The Environmental Group Limited

19 September 2016

Company Announcements Office ASX Limited Level 4 20 Bridge Street Sydney NSW 2000

The Environmental Group Limited Strategic update. Appointment of Chief Executive Officer.

The Environmental Group Limited (ASX: EGL) is pleased to advise the appointment of Mr Peter Bowd as Chief Executive Officer (CEO).

Peter has qualifications in Electro Mechanical Engineering and an MBA. Peter has worked within a number of Australia’s energy businesses, as Director of Major projects for Australian Pipeline Trust (APA Group) and Management of Engineering and Projects for Origin Energy. Working both nationally and internationally with companies such as G&S Engineering, Mitsubishi & Hitachi Power – Atlantic Gulf & Pacific Group Philippines as Executive Director (Projects). Peter brings a depth of experience in the international Power and Gas sector as an experienced and seasoned technical and commercial leader. Peter’s industry knowledge and business relationship skills make him Ideal for this role.

As part of the recruitment process the board engaged Six Degrees Executive, a specialist recruitment firm to actively seek suitable candidates for this position. From a field of over 100 qualified applicants a long list of over 20 candidates was interviewed and a recommended short list presented to the board. The short list included a number of outstanding candidates from which Peter demonstrated the most appropriate business acumen, cultural and strategic fit with EGL.

On a personal note, it was always envisaged and supported by the board that my tenure as Managing Director would be a short one, necessitated from a need for stronger direction, rather than a wish on my part to remain long-term in this position. Your board has undertaken due diligence in the recruitment of a well-qualified CEO in Peter thereby enabling me, after a suitable handover period, to progressively move to a less day-to-day board position over this financial year.

Assuming the role of Managing Director over the past 9 months has been both rewarding and challenging requiring me to get to know our staff more intimately and for them to know me in addition to learning our improved technology. My overview of operations was that I was extremely impressed with the existing skills and technology which therefore allowed me to primarily focus on guiding the business into more profitable markets and contracts.

Since our marketing announcement on 27[th] April 2016, advising that the group had won orders in excess of AUD $10M during the third quarter of FY2016, the group has added an additional AUD $12M of business that further strengthens the pipeline for the remainder of FY2017, with some contracts completing in the FY2018. This is in line with the Directors reports released in the 2016 Annual Report.

Peter’s initial task will be to review and position the Baltec IES and TAPC operations to combine and leverage the group’s skills and resources to successfully implement and deliver on this growing workload and to continue to move the company forward.

Peter’s salary is $260,000 per annum plus statutory superannuation and is subject to review on or before July 2017.

I look forward to handing over to our new CEO, who now arrives with a solid foundation in the forward pipeline to drive the company to higher growth and success.

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Ellis Richardson Managing Director