EVZ LIMITED — Annual Report 2014

Nov 27, 2014

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering 28 November 2014

FY14 Group Highlights

Results Impacted by External Factors

• ² Revenue $64.4M

• ² EBIT loss $1.1M. EBITDA loss $0.3M

• ² NPAT loss $6.2M, includes impairment charge $4.6M

Summary

• ² Loss due to Brockman restructure in response to manufacturing

• closures in Geelong precinct.

• ² Impairment of TSF goodwill and asset revaluations.

• ² Clean energy market impacted by gas price increase reducing short term feasibility.

• ² Climate change policy uncertainty deferred energy plant projects.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Safety for Life

**Lost

Time
Injury**

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2011
2012
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ü Continuing reduction in incident frequency

ü LTIFR (1.1) down 80%

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2012
2013
2014
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Aid
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2012
2013
2014
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ü TRIFR (7.8) down 55%

ü Safe working benefits project outcomes.

ü Forward thinking safety culture

EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

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FY15 Outlook

Market Appreciation

v Tough market conditions.

v Gas price impacting manufacturing energy costs.

• v Climate change policy uncertainty reducing new investment in clean energy projects.

• v Oil industry supply chain transition creating new terminal infrastructure investment.

v Refinery closures creating transition projects.

• v Asian mega projects continue to accommodate economic growth in region.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

FY15 Objectives

Business Improvement

v Forward looking safety leadership culture

• v Capital restructure, leverage reduction. Debt reduction strategy continues with CBA support.

• v New Project Financial Management System.

• v Workforce flexibility achieved in response to cyclic nature of industry.

v Brockman & Syfon improving market share and financial outcomes. New management team driving success

• v Improving productivity from capital equipment investment.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

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Segment Outlook

	Segment Outlook	Segment Outlook	Segment Outlook	Segment Outlook
	Contracted Work [at 31/10/14]		Live Tenders [current]	FY15 Pipeline [bids due pre 30/6/15]
	$’000		$’000	$’000
	Brockman	20,362	25,500	100,050
	Syfon	17,166	15,900	30,000
	TSF	5,772	22,500	7,200
	Total	43,300	63,900	137,250

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Syfon Systems

Business Focus

Syfonic Roof Drainage and Water Proofing Systems to Large Scale Buildings throughout Australia and Asia.

Strategic Growth

• v Asia mega project opportunities expanding, now delivering solutions in Malaysia, Singapore, Philippines, Macau & Vietnam

• v Membrane water proofing solutions projects underway in NSW and VIC.

• v New products expanding reach into high rise residential market in Australia and Asia.

EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

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Syfon Systems

Market Appreciation

v Domestic market share greater than 70%.

v Syfon Systems preferred provider for major landmark projects.

v Syfon quality and landmark project experience regularly derives a premium.

v Asian market focus on mega projects across the region. Strong prospects exist underpinning further growth.

• v Roof membrane system suits being adopted for cost effective brown field roof restoration.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Syfon Australia Projects

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SHOPPING CENTRE
Westfield
Mt Gravatt QLD
PRIVATE HOSPITAL
CDC
MINERAL PROCESSING Gold Coast QLD
Rio Tinto
Cape Lambert WA
SHOPPING CENTRE
AMP Capital
Broadbeach QLD
SHOPPING CENTRE
CONVENTION CENTRE
AMP Capital
Lend Lease
Clarkson WA
Darling Harbour NSW
CHILDRENS HOSPITAL
FOOD MANUFACTURE
John Holland
Cadbury Schweppes
Perth WA
Ringwood VIC
TERTIARY HOSPITAL SPORTS STADIUM
Leighton HY JV Lend Lease
Adelaide SA Melbourne VIC
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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

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Syfon Asia Projects

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CASINO
MANUFACTURING City of Dreams, Melco
B.Braun
Macau
Hanoi, Vietnam
CASINO
Belle Grande, Melco
Manila, Philippines
SHOPPING CENTRE
Vivo City
Saigon, Vietnam
AIRPORT
International
Penang, Malaysia SHOPPING CENTRE
KK Times Square
METRO RAIL TERMINAL Kota Kinabulu, Malaysia
Underground Stations
Kuala Lumpur, Malaysia
AIRPORT
Domestic
RESIDENTIAL Seppinggan, Indonesia
Marina Bay
Singapore
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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

TSF Engineering & Maintenance

Business Focus

Clean Energy Generation comprising cogeneration, trigeneration & gas fired power plants to the manufacturing, mining and building sectors.

Strategic Growth

• v Operations and Maintenance contracts underpin growth in FY15 as customers replace CAPEX with OPEX.

• v Operations and Maintenance business now 30% segment revenue, high growth area.

• v Clean energy solutions include plant waste conversion to gas through anaerobic digestion.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

TSF Engineering & Maintenance

Market Appreciation

v Operations and maintenance contracts delivering recurrent revenue with uplift for unscheduled repairs and breakdowns. Maintenance contracts largely annual terms renewable without return to market.

v Project commencement delays due to gas pricing uncertainty combined with lack of clarity in federal government climate change policy.

• v Melbourne Airport project to be completed in early 2015.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

TSF Eng & Maint Projects

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MARINE ENGINES
Whitsunday Cruises
Airlie Beach QLD
DIESEL MAINTENANCE
Brisbane QLD
OFFICE POWER
Grocon
Brisbane QLD
RETAIL TRIGEN
GPT
Charlestown NSW
HEALTHCARE TRIGEN
LifeHouse RPA
Newtown NSW
HEALTHCARE POWER
NSW Health
StrathfieldNSW AIRPORT TRIGEN
Melbourne Airport
DATA CENTRE POWER Tullamarine VIC
Vodafone
Mt Waveley VIC
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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Brockman Engineering

Business Focus

Design and construction and maintenance of large scale steel storage tanks and pipework for the petrochemical, water and mining industries.

Strategic Growth

• v New management team focused on organic growth across all Australian industry sectors.

• v Internal restructure completed during year, resulting project wins with blue chip clients in all regions of Australia.

v Plant shutdown maintenance works expand to value added services.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Brockman Engineering

Market Appreciation

• v Oil industry downstream distribution rationalisation provides immediate growth opportunity.

v New downstream oil industry market entrants expanding storage facilities and tankage infrastructure.

• v Tankage projects underway and upcoming in all regions of Australia.

• v Water sector tankage need response to population growth and water security.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Brockman Engineering Projects

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FUEL TERMINAL TANKS
FUEL TANK REPAIR AGC AusGroup
BP Australia
Melville Island NT
Broome WA
FUEL TANK REPAIR
FUEL TANK REPAIR Shell Australia
Apache Energy Cairns QLD
Varanas Island WA
NEW GAS TANKS
Santos
Moomba SA
FUEL TANK REPAIR
Mobil
Birkenhead SA
NEW FUEL TANK
Caltex Australia
Banksmeadow NSW
TANK MAINTENANCE
Viva Energy
Geelong VIC
NEW WATER TANK
Dept of Defence
FUEL TANK REPAIR Mulwalla VIC
United Petroleum
Bell Bay TAS
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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering

Disclaimer

This presentation has been prepared by EVZ Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular need of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, none of EVZ Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault.

In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

The distribution of this document is jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe such restrictions.

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EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Engineering