EVZ LIMITED — AGM Information 2013

Nov 28, 2013

==> picture [580 x 94] intentionally omitted <==

29 November, 2013

Chairman’s Address to the 2013 EVZ Ltd AGM

Welcome everyone to the EVZ Ltd 2013 Annual General Meeting.

Our Chief Executive Officer, Scott Farthing, will present to the meeting in greater detail on the strategy, initiatives, performance and expectations of the individual businesses within the Group.

It was pleasing that the EVZ Group returned to profitability in the 2013 financial year, following the restructuring undertaken in the prior financial year. The Group now has three businesses which the Directors believe can deliver future growth.

There are however still a number of hurdles to clear in delivering this growth.

Firstly, the economic climate is still extremely difficult in the market sectors in which we operate. Investment is restrained and contract procurement delayed and this continues to squeeze margins on projects. This is borne out by recent profit downgrades from many ASX engineering services operations. Economic recovery is slower than expected and we believe it will not get any better in the remainder of the 2014 financial year.

The economic climate has impacted on our energy strategy. We have been vigorous in marketing our energy solutions and whilst the targeted beneficiaries of this energy solution model accept the benefits of the model, they still remain hesitant in committing the necessary capital expenditure at this point in time. The current uncertainty surrounding gas supplies and price and government inaction on carbon pricing has also impacted on the ability to market our energy solution model.

We have implemented significant changes at our tank and piping business. We now have a pipeline of tenders which is four times greater than it was less than six months ago. The geographic and sector reach of Brockman has also been significantly expanded. We are actively pursuing these tender opportunities but are being frustrated with slow decisionmaking and postponement in project start times by the customers. Staffing levels have been reduced significantly in line with current workloads.

Somewhat counter to the economic climate is the performance of our syfonic roof drainage business. Syfon Systems continues to expand both in Australia and in Asia. The Australian operation holds near record levels of forward work and is extremely busy and the Asian business has record forward work. Asia however is being hampered by delays in project commencement. Asian expansion remains a strategy and focus for EVZ.

==> picture [580 x 93] intentionally omitted <==

The second hurdle to be cleared is the Group’s balance sheet and cash reserves. The bank facilities mature in January 2014 and Directors believe that current legacy debt levels are higher than they should be. The Commonwealth Bank has also now indicated a desire for a structured debt reduction program. Canterbury Partners continue to advise us on the best options available to derive an optimal outcome. Options being considered may include a change in the capital structure of EVZ and/or the potential for the orderly divestment of some of its operations. The cleaning-up of the balance sheet will then establish an appropriate structure from which growth beyond the current constrained marketplace is facilitated.

Once the way forward is determined we will advise shareholders accordingly.

I thank all our shareholders for their support and also employees who continue to work diligently at improving the group’s performance.

I now hand over to Scott for his presentation.