EVZ Limited Appendix 4E Preliminary final report

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1. Company details

Name of entity: EVZ Limited ABN: 87 010 550 357 Reporting period: For the year ended 30 June 2024 Previous period: For the year ended 30 June 2023

2. Results for announcement to the market

	2024	2023	Change	Change
	$	$	$	%
Revenues from ordinary activities	118,916,120	111,200,389	7,715,731	7%
Earnings Before Interest, Tax, Depreciation and Amortisation
(EBITDA)	4,906,295	3,757,274	1,149,021	31%
Profit from ordinary activities after tax attributable to the owners of
EVZ Limited	2,138,924	1,446,276	692,648	48%
Profit for the year attributable to the owners of EVZ Limited	2,138,924	1,446,276	692,648	48%
			2024	2023
			Cents	Cents
Basic earnings per share			1.77	1.20
Diluted earnings per share			1.69	1.14

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The profit for the consolidated entity after providing for income tax amounted to $2,138,924 (30 June 2023: $1,446,276).

Revenue grew by 7% to $119M, led by Syfon and Tank Industries in the Building Products sector and TSF Power in the Energy and Resources sector.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 17.23	Previous period Cents 15.23

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

EVZ Limited Appendix 4E Preliminary final report

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6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

Not applicable.

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements have been audited and an unmodified opinion has been issued.

11. Attachments

Details of attachments (if any):

The Chairmans Report for the year ended 30 June 2024 is attached.

The Annual Report of EVZ Limited for the year ended 30 June 2024 is attached.

EVZ Limited Chairmans Report 30 June 2024

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Chairman’s Report

Dear Shareholder,

During the 2024 financial year, EVZ achieved notable revenue growth and an improvement in operating profit, despite facing the market challenges of scarcity of skilled labour and persistent inflation. The Group's net profit after income tax expense was $2,138,924.

The Building Products group performed exceptionally well, growing both revenue and profits with a strong and optimistic outlook for FY25 and beyond. The Energy & Resources group delivered mixed results and were unable to convert the revenue growth to profit at the levels consistent with our goals. We are aware of the operational challenges within this group and our management teams are purely focused on enhancing contribution margins in new work.

During the year we secured several notable project wins and expect to secure additional new contract appointments to ensure our diversified portfolio of businesses maintains momentum across all our industry sectors and geographies. Consequently, we anticipate delivering an improved profit performance in the 2025 financial year.

The Directors provide the following comments for the financial year:

Revenue grew by 7% to $119M, led by Syfon and Tank Industries in the Building Products sector and TSF Power in the Energy and Resources sector.
Net profit after tax improved by 48% to $2.1M, primarily due to increased profits in Syfon Systems, Tank Industries, and TSF Power. Conversely, Brockman Engineering delivered less than our expectations as it concluded several projects that were heavily impacted by labour shortages and cost inflation. With these Brockman projects completing the Group are expected to generate improved profits during FY25.
The strategic drivers for the Group are, consistent improvement in margins, the addition of product and service pathways that are less dependent on contracting; and increasing scale of revenue and earnings in current or through acquired businesses.

I am pleased to comment in further detail on the year's activities across our market sectors:

Building Products:

We achieved significant increases in both revenues and profits for the Building Products segment in FY24. All businesses within this segment improved their backlog of contracted work, which should facilitate further revenue growth in FY25.

Syfon Systems maintained its position as the leading syphonic roof stormwater drainage company in Australia and Southeast Asia. Syfon remains committed to expanding into other key ASEAN markets using appropriate business models for each location as part of its progressive geographic expansion strategy.
Tank Industries posted strong profits in its first full financial year of operation within the EVZ Group since its acquisition in January 2023. The business co-located with Syfon during the year and is benefiting from the Building Products group's strong senior management, systems, culture, and synergistic client base.

Energy and Resources:

Brockman Engineering increased its revenue but was unable to deliver the expected improvement in operating profit due to a few pandemic legacy projects being impacted by labour shortages and cost inflation. Brockman remains a leader in petrochemical and water tank construction, recurrent maintenance, and piping fabrication sectors. It will leverage its competitive advantages of location, skills base, and relationships with major industry companies to secure additional large contract wins in the upcoming financial year. Brockman expects to stabilise its revenue and improve profit margin across its project portfolio in FY25.
TSF Power increased both revenue and operating profit during the FY24. The continued focus on technical excellence, industry knowledge, and skilled staff will enable continued growth in FY25 as it expands its exposure to the renewable gas power generation and standby power generation markets.

EVZ Limited Chairmans Report 30 June 2024

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As always, I extend my gratitude to the senior management team for their continued focus on business improvement through a collaborative approach and a culture of innovation.

Sincerely

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Graham Burns Chairman

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EVZ LIMITED

ANNUAL REPORT

For year ended 30 June 2024

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EVZ Limited Contents 30 June 2024

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Directors' report--------------------------------------------------------------------------------------------------------------------------------------------------------2 Corporate governance statement--------------------------------------------------------------------------------------------------------------------------------13 Auditor's independence declaration-----------------------------------------------------------------------------------------------------------------------------21 Statement of profit or loss and other comprehensive income--------------------------------------------------------------------------------------------22 Statement of financial position -----------------------------------------------------------------------------------------------------------------------------------23 Statement of changes in equity-----------------------------------------------------------------------------------------------------------------------------------24 Statement of cash flows --------------------------------------------------------------------------------------------------------------------------------------------25 Notes to the financial statements--------------------------------------------------------------------------------------------------------------------------------26 Consolidated entity disclosure statement----------------------------------------------------------------------------------------------------------------------60 Directors' declaration -----------------------------------------------------------------------------------------------------------------------------------------------61 Independent auditor's report to the members of EVZ Limited--------------------------------------------------------------------------------------------62 Shareholder information -------------------------------------------------------------------------------------------------------------------------------------------66 Corporate directory--------------------------------------------------------------------------------------------------------------------------------------------------68

General information

The financial statements cover EVZ Limited as a consolidated entity consisting of EVZ Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is EVZ Limited's functional and presentation currency.

EVZ Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

115 / 838 Collins Street Melbourne Vic 3008 Telephone: (03) 95455288 Email: [email protected]

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 August 2024. The directors have the power to amend and reissue the financial statements.

EVZ Limited Directors' report 30 June 2024

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of EVZ Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2024.

Directors

The following persons were directors of EVZ Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Graham Burns

Robert Edgely Ian Luck

Principal activities

During the financial year the principal continuing activities of the consolidated entity consisted of:

Design, manufacture, service and maintenance of large steel tanks for use in the water, petrochemical and chemical industries.
Design, construction, on-site installation, maintenance and shutdown engineering services to the mining, wood chip, petrochemical, aluminium, glass, cement, defence and agriculture industries.
Design, and installation of syphonic roof drainage systems to major buildings including airports, shipping centres and sporting venues throughout Australia and South East Asia.
Design, installation and maintenance of clean energy solutions, base and back-up power generation equipment, communications equipment, marine installations and provision of mobile generation capabilities.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Operating & financial review

The profit for the consolidated entity after providing for income tax amounted to $2,138,924 (30 June 2023: $1,446,276).

The Directors provide the following comments for the financial year:

Revenue grew by 7% to $119M, led by Syfon and Tank Industries in the Building Products sector and TSF Power in the Energy and Resources sector.
Net Profit after tax improved by 48% to $2.1M, primarily due to increased profits in Syfon Systems, Tank Industries, and TSF Power. Conversely, Brockman Engineering delivered less than our expectations as it concluded several projects that were heavily impacted by labour shortages and cost inflation. With these Brockman projects completing the Group are expected to generate improved profits during FY25.
The strategic drivers remain the consistent improvement in margins, the addition of product and service pathways that are less dependent on contracting and increasing scale of revenue and earnings in current or through acquired businesses.

Please also refer to the Chairmans letter for more detail on the operating results.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial year.

Matters subsequent to the end of the financial year

No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Likely developments and expected results of operations

The Group will continue its focus on investing in growth across all its businesses and looking for opportunities to acquire businesses that fast track the growth of the Company.

EVZ Limited Directors' report 30 June 2024

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Business risks

The board and management recognise that risk is inherent across the Group and that we are unable to provide certainty of the expected results of its activities, or that any or all of these likely activities will be achieved. The material business risks faced by the Group that could influence the Groups prospects, and how the Group manages those risks, are outlined below.

Risk description	Nature of risk	Mitigating actions

Worksite safety	Occupational Work, health & Safety (OHWS) obligations, critical safety incident or significant crisis.	Compliance with all WorkSafe laws and regulations and employ appropriately qualified safety professionals in each business to maintain our system compliance on site.
Delivery execution risk	The timely and efficient delivery of our clients’ projects are critical to their satisfaction and retention. Delivery execution risk arises from delays, cost overruns, poor scope definition and change management, labour shortages, safety and quality issues in delivering projects.	To mitigate delivery execution risk, the group employs several strategies. We focus closely on reducing or eliminating contract and scope risk at project inception. We implement standard project management methodologies to ensure clear project timelines, resource planning and allocation. We constantly update our project risk register to ensure focus is maintained on delivering qualityoutcomes on time and on budget.
Employment recruitment and retention	Loss of key people may lead to loss of critical skills, knowledge and experience, which may disrupt workflow, or impact relationships with clients.	EVZ strives to create a positive, can-do work environment that fosters employee engagement and satisfaction. EVZ offers competitive remuneration packages and conducts regular performance reviews to support its people and identify any potential issues early on. Dynamic succession planning and knowledge sharing help mitigate any potential loss of knowledge from employee movements.
Credit risk	Lack of payment by a major project client due to contractual dispute or client insolvency.	Actively manage the commercial risk of the business including detailed credit checks before entering contracts and, post contract execution, ensuring careful management of the client contracting structure to minimise the chance of financial loss.
Loss of customers	A loss of a key customer may negatively impact the financial success of the business.	The group constantly strive to meet or exceed customers’ expectations forprojects delivered.
Information security, including cyber- attacks.	EVZ group may be exposed to an event or events which may result in the groups digitally stored information being unavailable, lost, stolen, copied or otherwise compromised with adverse consequences for the business.	Regularly update and invest in our IT security strategy by focusing on key success factors such as: - Diversified file storage platforms; - Regular training and awareness of all employees; - Central management, with a robust and common strategy and policy across EVZ group; and - Continual focus and improvement.
Climate change	Transition Risks – driven by policy, regulation, technology development, reputation, and market shifts in current goals to decarbonise. Physical Risks – driven by extreme weather and long- term shifts in climatepatterns that have direct impacts.	EVZ recognises the interconnectedness of climate and sustainability issues within its operations and has introduced the following to progressively address them: - Adoption of a sustainability strategic framework - Ongoing monitoring of market conditions - Shift to cloud-based data management.

Environmental regulation

The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State law.

EVZ Limited Directors' report 30 June 2024

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Information on directors

Name:	Graham Burns
Title:	Non-Executive Chairman
Age:	69
Qualifications:	Master of Business Administration in Technology from the Australian Graduate School of
	Management
	Fellow of the Australian Institute of Company Directors.
Experience and expertise:	Extensive managerial skills and experience in the property, retail and manufacturing sectors.
	Currently CEO of Hunter Land which is a significant industrial developer in regional New South
	Wales.
Other current directorships:	None
Former directorships (last 3 years):	None
Special responsibilities:	Member of the the Remuneration, Audit and Nomination Committees
Interests in shares:	12,293,264 ordinary shares
Name:	Robert Edgley
Title:	Non-Executive Director
Age:	59
Qualifications:	Bachelor degree in Economics from Monash University
	Degree in Japanese language
Experience and expertise:	Significant experience and skills in strategic planning, performance management and marketing
	and has proven abilities in building business. His career has been predominantly focused in
	international finance and investment banking in Australia, the UK and throughout Asia.
Other current directorships:	Way 2 VAT Ltd (ASX code: W2V). Appointed 15 Sep 2021
Former directorships (last 3 years):	Self Wealth Limited (ASX code: SWF). Appointed 16 April 2019; Resigned 30 June 2023
Special responsibilities:	Chairman of the Audit Committee and a member of the Remuneration and Nomination
	Committees.
Interests in shares:	300,000
Name:	Ian Luck
Title:	Non-Executive Director
Age:	72
Qualifications:	Bachelor of Technology, Civil Engineering
	Fellow of the Institute of Engineers Australia
	CPEng (Ret)
Experience and expertise:	Significant experience in the engineering and construction sector with 49 years experience in
	business leadership, strategy and governance roles that focus on creating high performing
	teams to deliver outstanding growth and profitability. Previously he has been the Managing
	Director of Baulderstone, a Non-Executive Director of McConnell Dowell and a key manager in
	Leighton Contractors.
Other current directorships:	None
Former directorships (last 3 years):	McConnel Dowell Corporation Ltd
Special responsibilities:	Chairman of the Remuneration Committee and member of the Audit Committee and
	Nomination Committee
Interests in shares:	825,000

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

Company secretary

The Company Secretary is Pieter van der Wal. He was appointed 4 September 2017. Mr van der Wal has a Bachelor of Business and is a Chartered Accountant with company secretarial experience.

EVZ Limited Directors' report 30 June 2024

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Meetings of directors

The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year ended 30 June 2024, and the number of meetings attended by each director were:

			Nomination and Remuneration	Nomination and Remuneration
	Full Board		Committee		Audit and Risk Committee
2024	Attended	Held	Attended	Held	Attended	Held
G Burns	13	14	6	6	2	3
R Edgley	13	14	6	6	3	3
I Luck	14	14	6	6	3	3

Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.

Remuneration report (audited)

This report details the nature and amount of remuneration for Key Management Personnel.

Key Management Personnel are the non-executive directors and employees who have authority and responsibility for planning, directing and controlling the activities of the Company.

The remuneration report is set out under the following main headings:

Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel

Principles used to determine the nature and amount of remuneration

The remuneration policy of the Company has been designed to align Director and Executive remuneration with shareholder and business objectives by providing a fixed remuneration component and where appropriate offering specific short and long-term incentives based on key performance areas affecting the Group’s financial results. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best Directors and Executives to govern and manage the Group, as well as to create goal congruence between Directors, Executives and Shareholders.

In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate.

Non-executive directors remuneration

The Board’s policy is to remunerate Non-Executive Directors at appropriate market rates. The Remuneration Committee recommends the fee structure for Non-Executive Directors which will be determined by reference to market practice, duties performed, time, commitment and accountability. Director fees are reviewed annually by the Remuneration Committee.

The Remuneration Committee may seek independent advice in determining appropriate fee structures for Directors.

The maximum aggregate amount of fees payable to Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are not linked to the performance of the Group. However, to align Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and may be able to participate in any employee share/option plan introduced.

All remuneration paid to Directors is valued at the cost to the Company and expensed.

Executive remuneration

The group changed its Operating Segments during the financial period (refer note 3) and appointed executive managers to each of the new segments accordingly. As a result of this restructure, management below this level are no longer considered Key Management Personnel (refer note 27) and have been removed from the remuneration report.

EVZ Limited Directors' report 30 June 2024

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The Board’s policy for determining the nature and amount of remuneration for key senior Executives for the Group is as follows: ● The remuneration policy, setting the terms and conditions for Executive officers, was developed by the Remuneration Committee, and approved by the Board after seeking external advice where appropriate from external independent consultants
All Executives receive a base salary (which is based on factors such as their experience and length of service), superannuation, fringe benefits and where appropriate performance incentives

The Remuneration Committee reviews Executive remuneration packages annually with reference to the Group’s performance, each Executive’s performance and comparable information from industry sectors and listed companies in similar industries. The performance of each Executive is measured against criteria agreed and is predominantly measured by comparing actual growth against forecast growth of the Group’s profits and shareholders’ value. Bonuses and incentives will be linked to predetermined performance criteria. The Board may, however, exercise its discretion in relation to approving incentives, bonuses and options, and can recommend changes to the Remuneration Committee’s recommendations. Any changes must be justified by reference to measurable performance criteria. The policy is designed to attract the highest calibre of Executives and reward them for performance that results in long-term growth in shareholder wealth.

Executives receive a superannuation guarantee contribution as required by the Government and do not receive any other retirement benefits. Individuals may choose to sacrifice part of their salary to increase payments towards superannuation. All remuneration paid to Executives is valued at the cost to the Company and expensed.

Performance based remuneration:

During the year to 30 June 2024, performance-based remuneration of $149,255 was paid to key management relating to the 2023 financial year performance. This amount had been accrued in the prior year. An amount of $124,643 has been accrued and is payable relating to the 2024 financial year performance.

Short Term Incentives (STI)

The Remuneration Committee set certain key performance indicators for the key Executives in the Group to determine eligibility for STI payments. The key performance indicators are quantitative measures based on business profitability and improvement in forward work in hand. Both measures are considered to be drivers of shareholder value.

STI’s payable in relation to the 2024 year are $124,643 (2023: $149,255).

Long term incentives (LTI):

LTI’s, also linked to key performance indicators for the key Executives in the Group, were issued under the Company’s’ Directors’ and Employees’ Benefits Plan.

The Key Performance Indicators (“KPIs”) used to measure performance for these incentives are group profit growth, earnings per share growth and cashflow. These KPIs are measured over a three-year performance period and were chosen because they are aligned to shareholder wealth creation. For each component of the LTI against a KPI no award is made where performance falls below the minimum threshold for that KPI

Shareholders had previously approved the EVZ Directors’ and Employees’ Benefits Plan (the “Plan”) which allows employees, Directors and others (“Eligible Persons”) to be granted shares, options and performance rights in the Company. The object of this Plan is to help the Company recruit, reward, retain and motivate its employees and Directors.

Such shares, options and performance rights would be offered only to those Eligible Persons entitled to receive an invitation. Those Eligible Persons would be:

a Director, or Secretary of a Group Company;
an employee in permanent full-time or permanent part-time employment of a Group Company; or
a contractor to a Group Company who is selected by the Board to participate in the Plan

There are no share options issued at 30 June 2024 (2023: Nil).

No LTI’s have been granted to Directors.

EVZ Limited Directors' report 30 June 2024

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Invitations to Eligible Persons will be made by the Board and may be made subject to such conditions and rules as the Board determines, including:

In the case of Options, the exercise period, the exercise price and the exercise conditions.
In the case of Shares, the issue price payable on acceptance of the application by the Company and issue of the shares and any other specific terms and conditions of issue.
In the case of Performance Rights, the performance criteria and the performance period in which those performance criteria must be satisfied.

The issue of any securities (including options or performance rights) issued to any Director or their associates will still require shareholder approval under ASX Listing Rule 10.14.

The maximum number of shares issued pursuant to the Plan would be not more than 5% of the equity interests in the Company.

Consolidated entity performance, shareholder wealth and link to directors and executives remuneration

The remuneration policy has been tailored to increase goal congruence between shareholders and Directors and Executives.

In considering the impact of the Group’s performance on shareholder wealth and the related rewards earned by executives, the Remuneration Committee had regard to the following measures over the years below:

	2024	2023	2022	2021	2020
	$	$	$	$	$
Group Performance measures for Remuneration
$ Profit / (Loss) after tax	2,138,924	1,446,276	894,680	3,403,148	(2,751,440)
$ Net Assets	32,576,976	30,444,015	29,067,293	24,446,853	21,205,223
Earnings per share (basic in cents)	1.77	1.20	0.89	3.54	(2.86)
% Change in share price	-	(26.30)	18.80	128.60	(61.10)

Details of remuneration

Amounts of remuneration

The remuneration, paid or payable, for each Director and each of Key Management Personnel of the Group during the year was as follows:

2024 Non-Executive Directors: G Burns R Edgley I Luck Other Key Management Personnel: S Farthing P van der Wal A Bellgrove	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 107,067 - - 72,100 - - 72,100 - - 455,458 24,863 - 289,268 20,400 - 349,211 79,380 36,423	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 107,067 - - 72,100 - - 72,100 - - 455,458 24,863 - 289,268 20,400 - 349,211 79,380 36,423	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 107,067 - - 72,100 - - 72,100 - - 455,458 24,863 - 289,268 20,400 - 349,211 79,380 36,423	Post- employment benefits Super- annuation $ - - - 27,399 27,399 27,675	Long-term benefits Long service leave $ - - - - - -	Share-based payments Equity- settled $ - - - 11,520 9,408 29,845	Total $ 107,067 72,100 72,100 519,240 346,475 522,534
	1,345,204	124,643	36,423	82,473	-	50,773	1,639,516

EVZ Limited Directors' report 30 June 2024

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Short-term benefits Post- employment benefits Long-term benefits Cash salary Cash Non- Super- Long service and fees bonus monetary annuation leave 2023 $ $ $ $ $ Non-Executive Directors: G Burns 90,334 - - - - R Edgley 56,333 - - - - I Luck 56,333 - - - - Other Key Management Personnel: S Farthing 429,946 35,163 - 25,292 - P van der Wal 267,359 29,063 - 25,113 - A Bellgrove 313,111 85,029 37,271 25,292 - 1,213,416 149,255 37,271 75,697 - The proportion of remuneration linked to performance and the fixed proportion are as follows: Fixed remuneration At risk - STI Name 2024 2023 2024 2023 Non-Executive Directors: G Burns 100% 100% - - R Edgley 100% 100% - - I Luck 100% 100% - - Other Key Management Personnel: S Farthing 93% 82% 5% 6% P Van der Wal 91% 83% 6% 8% A Bellgrove 79% 78% 15% 18%	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 90,334 - - 56,333 - - 56,333 - - 429,946 35,163 - 267,359 29,063 - 313,111 85,029 37,271	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 90,334 - - 56,333 - - 56,333 - - 429,946 35,163 - 267,359 29,063 - 313,111 85,029 37,271	Short-term benefits Cash salary Cash Non- and fees bonus monetary $ $ $ 90,334 - - 56,333 - - 56,333 - - 429,946 35,163 - 267,359 29,063 - 313,111 85,029 37,271	Post- employment benefits Super- annuation $ - - - 25,292 25,113 25,292	Long-term benefits Long service leave $ - - - - - -	Share-based payments Equity- settled $ - - - 68,600 30,320 19,880	Total $ 90,334 56,333 56,333 559,001 351,855 480,583
	1,213,416	149,255	37,271	75,697	-	118,800	1,594,439
						At risk - 2024 - - - 2% 3% 6%	LTI 2023 - - - 12% 9% 4%

The proportion of the cash bonus paid/payable or forfeited is as follows:

	Cash bonus	paid/payable	Cash	bonus forfeited
Name	2024	2023	2024	2023
Other Key Management Personnel:
S Farthing	13%	19%		87%	81%
P Van der Wal	21%	39%		79%	61%
A Bellgrove	63%	91%		37%	9%

Service agreements

Remuneration and other terms of employment for key Executives are formalised in employment service agreements. Each of these agreements may provide for the provision of other benefits including car allowances. These agreements have no fixed term. There are no other standard termination provisions excluding notice periods. Notice periods are generally between three and six months.

EVZ Limited Directors' report 30 June 2024

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Share-based compensation

Issue of shares

Details of shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2024 are set out below:

Name	Date	Shares	Exercise price
S Farthing	07/09/2023	290,000	$0.00
P Van der Wal	07/09/2023	148,000	$0.00
A Bellgrove	07/09/2023	32,000	$0.00

Performance Rights

The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management personnel in this financial year or future reporting years are as follows:

						Fair value
						per
						performance
	Vesting	date and				right
Grant date	exercisable date		Expiry date		Exercise price	at grant date
01/08/2021	30/06/2024		01/08/2024		$0.00	$0.16
12/08/2022	30/06/2025		12/08/2025		$0.00	$0.19
23/08/2023	30/06/2026		23/08/2026		$0.00	$0.14
	Number of					Fair value
	performance				per performance
	rights		Vesting date and			right
Name	granted	Grant date	exercisable date	Expiry date	Exercise price	at grant date
S Farthing	1,000,000	01/08/2021	30/06/2024	01/08/2024	$0.00	$0.16
P Van der Wal	400,000	01/08/2021	30/06/2024	01/08/2024	$0.00	$0.16
A Bellgrove	400,000	01/08/2021	30/06/2024	01/08/2024	$0.00	$0.16
S Farthing	1,000,000	12/08/2022	30/06/2025	12/08/2025	$0.00	$0.19
P Van der Wal	400,000	12/08/2022	30/06/2025	12/08/2025	$0.00	$0.19
A Bellgrove	400,000	12/08/2022	30/06/2025	12/08/2025	$0.00	$0.19
S Farthing	1,000,000	23/08/2023	30/06/2026	23/08/2026	$0.00	$0.14
P Van der Wal	400,000	23/08/2023	30/06/2026	23/08/2026	$0.00	$0.14
A Bellgrove	400,000	23/08/2023	30/06/2026	23/08/2026	$0.00	$0.14

Fair value is determined based on the Company's ASX traded share price on grant date.

Performance rights granted as remuneration during the financial year:

Details of performance rights over ordinary shares granted, vested and lapsed for directors and other key management personnel as part of compensation during the year ended 30 June 2024 are set out below:

			Number of	Number of	Number of
			performance	performance	performance
			rights	rights	rights	%
Name	Grant date	Vesting date	Initially granted	vested	lapsed	Vested
S Farthing	01/08/2021	30/06/2024	1,000,000	80,000	920,000	8
P Van der Wal	01/08/2021	30/06/2024	400,000	80,000	320,000	20
A Bellgrove	01/08/2021	30/06/2024	400,000	124,000	276,000	31

EVZ Limited Directors' report 30 June 2024

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Fair value is based on the share price at grant date. Performance rights which have been granted expire at the end of the financial period to which they relate if the targeted performance objectives are not met. The performance rights were granted on 1 August 2021 and vested on award date of 30 June 2024. The company plans to allot the shares within 60 days of the date of this report.

Performance rights are granted as part of the long-term incentive scheme and are determined based on the measures and results of a balanced scorecard analysis for each of key managements’ contribution to the business during the financial year. The measures are determined by the Board and all incentive awards are at the discretion of the Board.

Options

There were no options over ordinary shares issued to directors and other key management personnel as part of compensation that were outstanding as at 30 June 2024.

There were no options over ordinary shares granted to or vested by directors and other key management personnel as part of compensation during the year ended 30 June 2024.

Additional disclosures relating to key management personnel

Shareholding

The number of shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Ordinary shares G Burns R Edgley I Luck S Farthing P van der Wal A Bellgrove	Balance at the start of the year 11,282,149 300,000 825,000 2,016,840 368,000 1,417,171	Received as part of remuneration - - - 290,000 148,000 32,000	Additions 1,011,115 - - - - -	Disposals/ other - - - - - -	Balance at the end of the year 12,293,264 300,000 825,000 2,306,840 516,000 1,449,171
	16,209,160	470,000	1,011,115	-	17,690,275

Performance rights holding

The number of performance rights over ordinary shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below:

Performance rights over ordinary shares S Farthing P van der Wal A Bellgrove	Balance at the start of the year 2,290,000 948,000 832,000	Granted 1,000,000 400,000 400,000	Exercised (290,000) (148,000) (32,000)	Lapsed/ forfeited/ other (920,000) (320,000) (276,000)	Balance at the end of the year 2,080,000 880,000 924,000
	4,070,000	1,800,000	(470,000)	(1,516,000)	3,884,000

Performance rights over ordinary shares - Vested and exercisable S Farthing P van der Wal A Bellgrove	Vested and exercisable 80,000 80,000 124,000	Vested and unexercisable - - -	Balance exercisable at the end of the year 80,000 80,000 124,000
	284,000	-	284,000

EVZ Limited Directors' report 30 June 2024

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Performance rights which have been granted expire at the end of the 3 year financial period to which they relate if the service condition and targeted performance objectives are not met. The company plans to allot the vested performance rights within 90 days of the date of this report.

This concludes the remuneration report, which has been audited.

Shares under option

There were no unissued ordinary shares of EVZ Limited under option outstanding at the date of this report.

Shares under performance rights

Unissued ordinary shares of EVZ Limited under performance rights at the date of this report are as follows:

		Exercise	Rights vested
Grant date	Expiry date	price	and unissued
01/08/2021	01/08/2024	$0.00	284,000

No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in any share issue of the company or of any other body corporate.

Shares issued on the exercise of options

There were no ordinary shares of EVZ Limited issued on the exercise of options during the year ended 30 June 2024 .

Shares issued on the exercise of performance rights

The following ordinary shares of EVZ Limited were issued during the year ended 30 June 2024 on the exercise of performance rights granted:

	Exercise	Number of
Date performance rights granted	price	shares issued
30/09/2020	$0.00	470,000

Indemnity and insurance of officers

The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

Indemnity and insurance of auditor

The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.

During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity.

Proceedings on behalf of the company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

Non-audit services

There were no non-audit services provided during the financial year by the auditor.

EVZ Limited Directors' report 30 June 2024

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Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

Auditor

Grant Thornton continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Graham Burns Chairman

26 August 2024

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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Introduction

The Board of the Company is committed to protecting shareholders’ interests and ensuring investors are fully informed about the performance of the Company’s business. The Directors have undertaken to perform their duties with honesty, integrity, care and diligence, according to the law and in a manner that reflects the highest standards of corporate governance.

The policies and practices of the Company are in accordance with the ASX Corporate Governance Council’s “Corporate Governance Principles and Recommendations – 4[th] Edition”.

Unless otherwise indicated, the best practice principles of the ASX Corporate Governance Council and suggested disclosures, have been adopted by the Company for the year ended 30 June 2024 as relevant to the size and complexity of the Company and its operations.

The Corporate Governance Statement is current at the date of approval of the annual report and has been approved by the Board of Directors.

Principle 1: Lay solid foundations for management and oversight

Recommendation 1.1: Board charter and the respective roles and responsibilities of the Board and management.

The Board charter sets out the function and responsibilities of the Board. The Directors of the Company are accountable to shareholders for the proper management of business and affairs of the Company.

The key Board functions and responsibilities include:

demonstrating leadership;
defining the Company’s purpose and setting its strategic objectives, including general and specific goals and reviewing actual results against those objectives, which are aimed at meeting stakeholders’ objectives and managing business risk;
overseeing management in its implementation of the Company’s strategic objectives, instilling the Company’s values and monitoring performance generally;
establishing and maintaining policies directed to ensuring that the Company complies with the law and conforms to the highest standards of financial and ethical behaviour;
ensuring that appropriate risk management systems, internal control and reporting systems and compliance frameworks are in place and are operating effectively;
assessing the necessary and desirable competencies of Board members, review Board succession plans, evaluate its own performance and consider the appointment and removal of Directors;
considering executive remuneration and incentive policies, the Company’s recruitment, retention and termination policies and procedures for senior management and the remuneration framework for non-executive directors;
monitoring financial performance;
approving decisions concerning the capital, including capital restructures, and dividend policy of the Company; and
monitoring the effectiveness of the Company’s governance practices.

The Board delegates responsibility for day-to-day management of the Company to the Chief Executive Officer (CEO), subject to certain financial limits. The CEO must consult the Board on matters that are sensitive, extraordinary, of a strategic nature or matters outside the permitted financial limits.

Recommendation 1.2: Director and senior management appointments

Non-Executive Directors appointed during the year hold office until the next annual general meeting, where they must stand for reelection. Each year one third of the Board of Directors (excluding the Managing Director) must retire and if they wish seek re-election at the annual general meeting. Board support for a Director’s re-election is not automatic and is subject to satisfactory Director performance.

Appropriate background checks are undertaken before a Director is nominated. At the annual general meeting shareholders are provided with all material information concerning the Director seeking election or re-election.

Recommendation 1.3: Terms of appointment

The Company has written agreements with all senior executives setting out the terms of their appointment. Written agreements have now been implemented for all new director appointments. The duties of the Directors as detailed above were provided to all directors.

Recommendation 1.4: Company secretary

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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The appointment and removal of the Company Secretary is a decision of the Board. The Company Secretary is accountable directly to the Board, through the Chairman, on all matters relating to the proper functioning of the Board and is responsible for ensuring compliance with Board procedures and governance matters. All Directors have direct access to the Company Secretary.

Recommendation 1.5: Diversity policy

The Group’s ultimate success is under-pinned by its employees. To maximise success, the Group encourages a diverse population of employees within its operations.

Diversity is defined to include race, ethnicity, gender, sexual orientation, socio-economic status, culture, age, physical ability, education, skill levels, family status, religious, political and other beliefs and work styles. The Group recognises that differences in ideas, backgrounds, patterns of thinking and approaches to work can generate value for the Group’s stakeholders: its customers, shareholders, personnel and the communities in which it operates. It is the Group’s policy to promote these differences within a productive, inclusive and performance-based environment in which everybody feels valued, where their skills are fully utilised, their performance is recognised, professional accountability is expected and organisational goals are met.

The Group’s approach to diversity is based on the following objectives:

retain, promote and hire the best people possible, focusing on actual and potential contribution in terms of performance, competence, collaboration and professional accountability;
foster an inclusive culture and ensure that current and future employee opportunities are based on competence and performance, irrespective of race, ethnicity, gender, sexual orientation, socio-economic status, culture, age, physical ability, education, family status, religious, political and other beliefs and work styles. This includes being intolerant of behaviour that denigrates or otherwise diminishes such attributes or that discriminates on the basis of such attributes;
create and manage appropriate human resource processes which take a unified and talent-based approach to recruitment, training and development, performance management, retention and succession planning;
provide a fair level of reward in order to attract and retain high calibre people – and build a culture of achievement by providing a transparent link between reward and performance; and
be compliant with all mandatory diversity reporting requirements.

The Group’s measurable objective and current gender profile:

The Group’s measurable objective for increasing gender diversity is to increase the representation of women at all levels of its organisation over time. The Group’s progress towards achieving that objective, along with the proportion of women employees within the Group, women in senior Executive positions and women non-executive directors, is set out in the table below:

		2024	2024	2023
Measure No. % No. %
Women employees	27	7.0	24	6.3
Women senior executives *	-	-	-	-
Women non-executive directors	-	-	-	-

This includes both employees and specific contractors engaged by the Group.

Recommendation 1.6: Board and committee performance

The Board and its committees undertook self-assessment in accordance with their relevant charters during the financial year. The Chairman conducts annual one-on-one personal performance discussions with each of the individual Directors.

The Board was provided with all company information it needed in order to effectively discharge its responsibilities and were entitled to, and did, request additional information when considered necessary or desirable.

Recommendation 1.7: Senior executive performance

Reviews of the performance of Senior Executives are undertaken annually against established key performance indicators. At the same time goals and targets for the coming year are discussed and implemented. The annual evaluation of the CEO’s performance is a specific function of the Remuneration Committee.

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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Principle 2: Structure the board to be effective and add value

Recommendation 2.1: Nomination committee

The Company has a duly appointed nomination committee. The committee operates pursuant to a nomination committee charter. The charter sets out the responsibilities of the committee including reviewing Board succession plans to ensure an appropriate balance of skills and expertise, developing policies and procedures for the appointments of Directors and identifying Directors with appropriate qualifications to fill Board committee vacancies. The term of Non-Executive Directorships is set out in the Company’s constitution.

Given the size of the Board, the Board has determined it appropriate for the nomination committee to consist of the full Board of Directors.

Recommendation 2.2 and 2.3: Board composition

The Company’s Board is comprised of Non-Executive Directors.

Details of Directors and skills are detailed in the following tables:

Director	Term in office	Qualifications	Status
Graham Burns	Appointed 1 February2008	MBA(Tech),FAICD	Not Independent
Robert Edgley	Appointed 26 August 2011	B Ec	Independent
Ian Luck	Appointed 3 July 2017	B Tech. Civil Engineering, FIE Australia, CPEng (Ret).	Independent

Areas of competence and skills of the board of directors are as follows:

Area	Competence and skills
Leadership	Business leadership
	Public listed company experience
Business & Finance	Accounting expertise
	Business strategy
	Corporate turnarounds
	Corporate financing
	Mergers and acquisitions
	Risk management
	Commercial agreements
Sustainability and Stakeholder management	Corporate governance
	Remuneration
Market and Industry	Financial services expertise
International	Geographical experience
	International business management

Recommendation 2.4 & 2.5: Director independence & Independence of the chairman

Directors of EVZ Limited all non-executive and are considered to be independent when they are not aligned with the interests of management or a substantial shareholder. Independent directors are free of any interest, position or relationship that might influence, or could reasonably be perceived to influence, in a material respect their capacity to bring an independent judgement to bear on issues before the Board and to act in the best interest of the Company as a whole, rather than in the interests of an individual shareholder or other party.

In the context of director independence, ‘materiality’ is considered from both the Company and individual director perspective. The determination of materiality requires consideration of both quantitative and qualitative elements. An item is presumed to be quantitatively immaterial if it is equal to or less than 5% of the appropriate base amount. It is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than 10% of the appropriate base amount.

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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Qualitative factors considered include whether a relationship is strategically important, the competitive landscape, the nature of the relationship and the contractual or other arrangements governing it and any similar factors.

When assessing the independence of a Director, the Board considers the definition of independence, and the factors set out in Box 2.4 of the ASX Corporate Governance Principles and Recommendations. In accordance with the definition of independence, and the materiality thresholds set, Mr Edgley and Mr Luck are both considered to be independent directors, representing the majority of the Board. The Board considers the depth of Company and industry knowledge and experience possessed by Non-Executive Director, Mr Burns, is of great benefit and value to the Company.

The Board believes that while the Chair is not independent, the current composition of the Board with its combined skills and capability, and its mix of experience, best serve the interests of the shareholders.

The role of Chair and Chief Executive Officer are not exercised by the same individual. In addition, there are procedures in place, agreed by the Board, to enable directors, in furtherance of their duties, to seek independent professional advice at the Company’s expense.

Profiles of the directors are set out in this annual report. All directors are subject to retirement by rotation in accordance with the Company’s constitution but may stand for re-election by the shareholders. The composition of the board is determined by the board and, where appropriate, external advice is sought. The board has adopted the following principles and guidelines in determining the composition of the board:

To be independent, a director ought to be non-executive and:

not a current executive of the Company;
ideally not held an executive position in the Company in the previous three years;
not a nominee or associate of a shareholder holding more than 10% of the Company’s shares;
not significantly involved in the value chain of the organisation, either upstream or downstream; and
not a current advisor to the Company receiving fees or some other benefit, except for approved director’s fees.

Directors are encouraged to be long term shareholders in the Company. Directors shareholdings are disclosed in the annual report. Any change in directors’ shareholdings are disclosed in accordance with ASX Listing Rules.

Recommendation 2.6: Induction and training

Any new director will receive a letter of appointment. Directors are provided access to the Company’s policies including the board’s charter. At board meetings directors receive regular updates and also undertake site visits, attend customer and financier meetings as required. These assist directors to keep abreast of relevant market and industry developments.

Principle 3: Instil a culture of acting lawfully, ethically and responsibly

Recommendation 3.1: Articulation and disclosure of values

The Company has formulated core values which all directors, senior executives and employees are expected, at a minimum, to follow. The core values are included in the corporate governance section of the Company’s website.

Recommendation 3.2: Code of conduct

The Company has developed a code of conduct to guide all of the Company’s employees, particularly directors, the CEO, the CFO and other senior executives, in respect of ethical behaviour. A copy of the code is available on its website.

These codes are designed to maintain confidence in the Company’s integrity and the responsibility and accountability of all individuals within the Company for reporting unlawful and unethical practices.

These codes of conduct embrace such areas as:

conflicts of interest
corporate opportunities
confidentiality
fair dealing and trade practices
protection of assets
compliance with laws, regulations and industry codes
security trading

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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commitment to and recognition of the legitimate interests of stakeholders

Recommendation 3.3: Whistleblower policy

The Company has a Whistleblower protection policy in place (Whistleblower Policy), a copy of which is available on its website.

The Whistleblower Policy Encourages all employees to speak out if they have concerns about unethical, unlawful, or irresponsible behaviour within the Company. The Company has established an external helpline to assist reporting, which can be done online and anonymously if preferred. The CEO and CFO are informed of all incidents reported under the Whistleblower policy. The CEO and CFO will inform the board of any material incidents reported under the Whistleblower policy.

Recommendation 3.4: Anti-bribery and corruption policy

The Company has established an anti-bribery and corruption policy which is disclosed on the Company’s website. This policy is a particular focus for the Board, as the company operates across multiple divisions and has exposure to foreign markets and cultures outside of Australia. It is a requirement of the policy that the board of directors be informed of any material breaches of the policy.

Principle 4: Safeguard the integrity of corporate reports

Recommendation 4.1: Audit committee

The Board-appointed audit committee operates in accordance with the audit committee charter. The details of the committee meetings held during the year and attendance at those meetings are detailed in the directors’ meeting schedule in the directors’ report.

The audit committee consists of:

Robert Edgley - Chairperson
Ian Luck
Graham Burns

Each of the members of the committee is a Non-Executive Director and the Chairman of the committee is not the Chairman of the Board. Mr Edgley and Mr Luck are both considered to be independent, representing the majority of the committee. Refer further commentary around independence at recommendation 2.5 above. The CEO and the CFO/Company Secretary may attend the meetings at the invitation of the committee. All members of the committee are financially literate (i.e. they are able to read and understand financial statements) and have an understanding of the industry in which the Company operates.

The audit committee provides an independent review of:

financial information produced by the Company;
the accounting policies adopted by the Company;
the effectiveness of the accounting and internal control systems and management reporting which are designed to safeguard company assets;
the quality of the external audit functions;
external auditor’s performance and independence as well as considering such matters as replacing the external auditor where and when necessary; and
identifying risk areas.

Recommendation 4.2: CEO and CFO assurance

The CEO and CFO have provided to the Board formal declarations that the integrity of the financial statements is founded on a system of risk management and internal control which supports the policies adopted by the Board and that the Company’s risk management and internal control system is operating effectively in all material respects to manage the Company’s material business risks.

Recommendation 4.3: Integrity of corporate reports

The Company’s periodic corporate reports are subject to comprehensive review and auditing. The process ensures that the Company is satisfied that any reports that are issued by the Company are materially accurate, balanced and provide investors with appropriate information to make informed investment decisions.

Principle 5: Make timely and balanced disclosure

Recommendation 5.1: Continuous disclosure

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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The board recognises that the Company, as an entity listed on the ASX, has an obligation to make timely and balanced disclosure in accordance with the requirements of the Australian Securities Exchange Listing Rules and the Corporations Act 2001. The board also is of the view that an appropriately informed shareholder base and market is essential to an efficient market for the Company’s securities. The board is committed to ensuring that shareholders and the market have timely and balanced disclosure of material matters concerning the Company.

In demonstration of this commitment, the Company has adopted a continuous disclosure policy which can be accessed under the corporate governance section of the Company’s website.

Recommendation 5.2: Board to receive copies of material market announcements

The Company secretary ensures that the board receives timely copies of all material market announcements made in accordance with the continuous disclosure requirements. The Company’s continuous disclosure policy can be accessed under the corporate governance tab of the Company’s website.

Recommendation 5.3: Investor / Analyst presentations

As documented in the Company’s continuous disclosure policy, when the Company gives a new and material investor or analyst presentation, a copy of the presentation materials are provide to the ASX ahead of the presentation. The Company’s continuous disclosure policy can be accessed under the corporate governance tab of the Company’s website.

Principle 6: Respect the rights of security holders

Recommendation 6.1: Company website

The Company provides information about itself and its governance procedures to its investors via its website. The corporate governance policies are disclosed on the website through a specific corporate governance tab, as are copies of annual reports, and biographies for directors and key management.

Recommendation 6.2: Investor relations program

Investor updates:

The Company provides regular investor updates via the ASX website to communicate the Company’s performance and strategies. These updates typically focus on the Company’s financial performance and strategies.

Annual general meeting and annual reports:

The Company’s Annual General Meeting enables security holders to engage directly with the board and key management. The CEO and Company Secretary also meet with security holders upon request and respond to any inquiries that may be made from time to time. The Company’s annual report and associated investor presentation are released to the ASX and copies are available on the Company’s website.

Regular release of financial information:

The Company financial results are announced every 6 months with full year results released via the ASX in August and half year results in February. In between full and half year results, the Company also releases material information on contract wins and other relevant information to the ASX throughout the year as events occur.

Recommendation 6.3: Participation at meetings by security holders

The Company’s AGM provides shareholders with the opportunity to vote on resolutions recommended by the board, hear directly from the board and CEO and ask questions of the board.

The Company’s AGM is usually held in November. The Chairman and CEO’s AGM presentations and voting results are released to the ASX on the day of the meeting.

Recommendation 6.4: Substantive resolutions decided by poll

All substantive resolutions are decided by poll, rather than by a show of hands.

Recommendation 6.5: Electronic communication

The Company provides security holders with the option to receive communications from the entity and its security registry, such as notice of meetings, explanatory memorandums, proxy forms and annual reports electronically. A corporate email address is provided via the

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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Company’s website to allow security holders to communicate with the Company. The Company’s share registry provider remains Computershare.

Since 2020, the Company has ceased producing hard printed copies of its annual report for environmental reasons. Shareholders who have registered to receive electronic communication from the Company’s share register will receive access to an electronic copy of the annual report together with the notice of annual general meeting.

Arrangements for hard copy annual reports can be made by request via the corporate email address on the Company’s website.

Principle 7: Recognise and manage risk

Recommendation 7.1: Risk committee

Overall risk management is the responsibility of the Risk Committee and covered within that committee’s charter. A copy of the charter is available on the company’s website.

Recommendation 7.2: Risk management framework

The Risk Committee has implemented a Risk Register matrix framework under which, matters of higher risk or higher likelihood of occurrence are reported at least monthly to the Board. In addition, a monthly project risk report is tabled at Board meetings for consideration.

Recommendation 7.3: Internal audit

The Company does not currently have any internal audit function. The Board considers that given the Company’s current size there is no benefit in having an internal audit function. Independent advice will be sought as necessary. The Board has overall responsibility for the identification, assessment, management and monitoring of the risks faced by the Company.

Recommendation 7.4: Environmental and social risks

EVZ Group is committed to operating within a defined Environmental, Social and Governance Framework (ESG) that provides our investors, employees, and all other stakeholders with assurance that the Board and senior management are focused on leading an ethical and sustainable business. EVZ Group is committed to acting ethically and with integrity in all its business dealings and relationships.

Accordingly, EVZ Group has developed an ESG framework outlining the Groups commitment to continuous improvement in response to the ever-evolving business landscape. A copy of the Groups ESG framework can be obtained on its website at the following location:

https://evz.com.au/assets/images/site/2023/05/EVZ-Limited-ESG-Framework-May-2023.pdf

Principle 8: Remunerate fairly and responsibly

Recommendation 8.1 and 8.2: Remuneration committee and policies

The Company has a duly appointed remuneration committee. The committee operates pursuant to the remuneration committee charter.

The remuneration committee consists of:

Ian Luck
Graham Burns
Rob Edgley

The Company’s approach to remuneration is set out in the Remuneration Report contained within this annual report.

The primary responsibilities of the remuneration committee are:

Establish appropriate remuneration policies for directors, the CEO and other senior executives which are effective in attracting and/or retaining the best directors and executives to monitor and manage EVZ Limited, whilst ensuring goal congruence between shareholders, directors and executives.
Ensuring appropriate disclosure of remuneration in line with the Corporations Act, ASX Listing Rules and Corporate Governance guidelines.

Non-executive directors are remunerated by way of fees. They may receive options (subject to shareholder approval) but there is no scheme for retirement benefits, other than statutory superannuation. Executives are paid a salary and may be provided, under the

EVZ Limited Corporate governance statement For the year ended 30 June 2024

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directors’ and employees’ benefits plan, with shares, performance rights and/or options and bonuses as part of their remuneration and incentive package.

There are no executive directors.

Recommendation 8.3: Equity based remuneration scheme

There is currently in place an EVZ Directors’ and Employees’ Benefits Plan (the “Plan”) which allows employees, directors and others (“Eligible Persons”) to be granted shares, options and performance rights in the Company. The object of this plan is to help the Company recruit, reward, retain and motivate its employees and directors.

Such shares, options and performance rights would be offered only to those eligible persons entitled to receive an invitation. Those eligible persons would be:

a director or secretary of a group company;
an employee in permanent full-time or permanent part-time employment of a group company; or
a contractor to a group company.

Recommendation 8.3: Equity based remuneration scheme (continued)

Invitations to eligible persons will be made by the board and may be made subject to such conditions and rules as the board determines, including:

In the case of options, the exercise period, the exercise price and the exercise conditions.
In the case of shares, the issue price payable on acceptance of the application by the Company and issue of the shares and any other specific terms and conditions of issue.
In the case of performance rights, the performance criteria and the performance period in which those performance criteria must be satisfied.

The issue of any securities (including options or performance rights) issued to any director, or their associates will still require shareholder approval under ASX Listing Rule 10.14.

The maximum number of shares issued pursuant to the plan would be not more than 5% of the equity interests in the Company.

End of corporate governance statement

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Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222

Auditor’s Independence Declaration

To the Directors of EVZ Limited

In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of EVZ Limited for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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M A Cunningham Partner – Audit & Assurance

Melbourne, 26 August 2024

www.grantthornton.com.au

ACN-130 913 594

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.

12140453v1

EVZ Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2024

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Note Revenue Sales 3 Other Revenue Cost of Sales Gross profit Other income Interest received Expenses Corporate costs Administration Finance costs 4 Profit before income tax benefit Income tax benefit 5 Profit after income tax benefit for the year attributable to the owners of EVZ Limited Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation of foreign operation Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of EVZ Limited Basic earnings per share 31 Diluted earnings per share 31	Consolidated 2024 2023 $ $ 118,908,415 111,200,389 7,705 -	Consolidated 2024 2023 $ $ 118,908,415 111,200,389 7,705 -
	118,916,120 (101,499,596)	111,200,389 (96,332,056)
	17,416,524	14,868,333
	(68,397) 43,907 (2,118,377) (12,874,362) (580,880)	34,141 108,120 (1,871,345) (11,415,016) (298,398)
	1,818,415 320,509	1,425,835 20,441
	2,138,924 185,620	1,446,276 (188,354)
	185,620	(188,354)
	2,324,544	1,257,922
	Cents 1.77 1.69	Cents 1.20 1.14

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

EVZ Limited Statement of financial position As at 30 June 2024

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Note Assets Current assets Cash and cash equivalents 6 Trade and other receivables 7 Contract assets 8 Inventories 9 Financial assets 10 Total current assets Non-current assets Trade and other receivables 7 Property, plant and equipment 12 Right-of-use assets 11 Intangibles 13 Deferred tax asset 5 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 14 Contract liabilities 15 Lease liabilities 16 Income tax payable 5 Provisions 17 Total current liabilities Non-current liabilities Lease liabilities 16 Deferred tax liability 5 Provisions 17 Total non-current liabilities Total liabilities Net assets Equity Issued capital 18 Reserves 19 Accumulated losses Total equity	Consolidated 2024 2023 $ $ 8,365,542 9,268,155 20,129,097 20,675,650 4,796,260 2,547,698 3,747,014 3,494,723 267,878 235,575	Consolidated 2024 2023 $ $ 8,365,542 9,268,155 20,129,097 20,675,650 4,796,260 2,547,698 3,747,014 3,494,723 267,878 235,575
	37,305,791	36,221,801
	1,219,845 7,010,585 3,751,905 12,072,010 3,030,251	1,118,241 6,533,977 1,263,152 12,072,010 2,729,611
	27,084,596	23,716,991
	64,390,387	59,938,792
	18,092,360 3,135,705 1,418,017 17,767 3,933,990	15,593,821 6,772,896 1,182,668 91,470 4,121,392
	26,597,839	27,762,247
	4,135,904 31,624 747,400	1,543,049 37,330 152,151
	4,914,928	1,732,530
	31,512,767	29,494,777
	32,877,620	30,444,015
	60,142,066 50,383 (27,314,829)	60,099,766 (201,998) (29,453,753)
	32,877,620	30,444,015

The above statement of financial position should be read in conjunction with the accompanying notes

EVZ Limited Statement of changes in equity For the year ended 30 June 2024

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Issued capital $ 60,009,326 - -	Share based payments reserve $ 90,440 - -	Foreign currency translation reserve $ (132,444) - (188,354)	Accumulated losses $ (30,900,029) 1,446,276 -	Total equity $ 29,067,293 1,446,276 (188,354)
- - 90,440	- 118,800 (90,440)	(188,354) - -	1,446,276 - -	1,257,922 118,800 -
60,099,766	118,800	(320,798)	(29,453,753)	30,444,015
Issued capital $ 60,099,766 - -	Share based payments reserve $ 118,800 - -	Foreign currency translation reserve $ (320,798) - 185,620	Accumulated losses $ (29,453,753) 2,138,924 -	Total equity $ 30,444,015 2,138,924 185,620
- - 42,300	- 109,061 (42,300)	185,620 - -	2,138,924 - -	2,324,544 109,061 -
60,142,066	185,561	(135,178)	(27,314,829)	32,877,620

The above statement of changes in equity should be read in conjunction with the accompanying notes

EVZ Limited Statement of cash flows For the year ended 30 June 2024

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Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Income taxes paid Net cash from operating activities 30 Cash flows from investing activities Payment for purchase of business, net of cash acquired Payments for property, plant and equipment 12 Proceeds from disposal of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from finance leases Repayment of borrowings Repayment of lease liabilities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 6	Consolidated 2024 2023 $ $ 124,922,950 117,738,301 (122,510,946) (113,657,819)	Consolidated 2024 2023 $ $ 124,922,950 117,738,301 (122,510,946) (113,657,819)
	2,412,004 43,907 (580,878) (59,540)	4,080,482 108,120 (253,238) (93,828)
	1,815,493	3,841,536
	- (2,147,810) 6,103	(796,463) (2,259,785) 23,044
	(2,141,707)	(3,033,204)
	758,067 - (1,334,466)	1,468,119 (300,000) (1,641,781)
	(576,399)	(473,662)
	(902,613) 9,268,155	334,670 8,933,485
	8,365,542	9,268,155

At 30 June 2024 there was a difference between the above statement of cash flows and the Appendix 4C. $10.5m of GST paid was allocated to payments to suppliers and employees in the above statement of cash flows which was previously coded to receipts from customers in the Appendix 4C.

The above statement of cash flows should be read in conjunction with the accompanying notes

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information

The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Historical cost convention

The financial statements have been prepared under the historical cost convention.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 26.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of EVZ Limited ('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. EVZ Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

Foreign currency translation

The financial statements are presented in Australian dollars, which is EVZ Limited's functional and presentation currency.

Foreign currency transactions

Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign operations

The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information (continued)

The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.

Revenue recognition

Revenue is recognised when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer.

To determine whether to recognise revenue, the Group follows a 5-step process:

1 Identifying the contract with a customer;
2 Identifying the performance obligations;
3 Determining the transaction price,
4 Allocating the transaction price to the performance obligations; and

5 Recognising revenue when/as performance obligation(s) are satisfied.

The core principle of AASB 15 is that an entity shall recognise revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Construction revenue

The contractual terms and the way in which the Group operates its construction contracts is predominantly derived from projects containing one performance obligation. Due to the high degree of interdependence between the various elements of these projects, they are accounted for as a single performance obligation. Contracted revenue is recognised over time by comparing costs incurred with total estimated costs required to deliver the project to measure progress. Estimated costs are reviewed on a monthly basis. The requirements of over time measurement are met as the construction creates assets with no alternative use to the Group and there is an enforceable right to payment for performance completed.

Contract variations are assessed to determine whether they represent a separate contract with the customer or are modifications to the original contract.

Most contracts are billed according to approved monthly progress claim schedules or in some cases according to contracted milestone schedules. When payments received from customers exceed revenue recognised to date on a particular contract, an excess (a contract liability) is reported in the statements of financial position. Alternatively, where revenue to be recognised exceeds amounts invoiced to customers, the excess (contract asset) is reported.

Services revenue

Services revenue arises from maintenance and other services supplied to infrastructure assets and facilities which may involve a range of services and processes.

Under AASB 15, these are recognised over time with reference to inputs (time and materials) as services are provided. These services have been determined to be one performance obligation as they are highly inter-related and fulfilled over time therefore revenue is recognised over time.

As with construction revenue, contract variations are assessed to determine whether they represent a separate contract with the customer or are modifications to the original.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information (continued)

Parts sales revenue

The Group recognises parts sales revenue as follows:

Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to their customers. For each contract with a customer, the Group:

identifies the contract with a customer;
identifies the performance obligations in the contract;

· determines the transaction price which takes into account estimates of variable consideration and the time value of money;

allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and
recognises revenue when or as each performance obligation is satisf ied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price if any, reflects concessions provided to the customer such as discounts, rebates and refunds and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount method'. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.

Income tax

The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information (continued)

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Contract assets

Contract assets are recognised when the consolidated entity has transferred goods or services to the customer but where the consolidated entity is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes.

Inventories

Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Buildings	40 years
Leasehold improvements	3-10 years
Plant and equipment	3-7 years
Fixtures and fittings	3-10 years
Motor vehicles	3-10 years
Computer equipment	2-5 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information (continued)

Right-of-use assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

Intangible assets

Goodwill

Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

Impairment of non-financial assets

Goodwill that has an indefinite useful life is not subject to amortisation and is tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Contract liabilities

Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the consolidated entity recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or services to the customer.

Lease liabilities

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding rightof use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 1. Material accounting policy information (continued)

Employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

Share-based payments

The Group operates an equity-settled share-based payment employee share scheme. The fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense with a corresponding increase to an equity account.

Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Note 2. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Share-based payment transactions

The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. Professional judgment is involved in estimating the inputs used in the fair value calculation. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Goodwill

The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy stated in note 1. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions, including estimated discount rates and growth rates of the estimated future cash flows.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 2. Critical accounting judgements, estimates and assumptions (continued)

Recovery of deferred tax assets

Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Note 3. Operating segments

Identification of reportable operating segments

The consolidated entity is organised into two operating segments: Energy and Resources, and Building Products. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.

The information reported to the CODM is on a monthly basis.

The reported operating segments have been revised during the current financial period to align with the restructure of the consolidated entity's management group. The revised structure reflects the markets in which the Group operates. The CODM reviews the performance of the business based on monthly management reports reflecting this revised structure. Brockman Engineering (previously Engineering ) and TSF Power (previously Energy ) operate in the Energy and Resources market, while Syfon Systems and Tank Industries operate in the Building Products market (previously Water ).

Types of products and services

The principal products and services of each of these operating segments are as follows:

Energy and Resources The energy and resources segment designs, manufactures and installs equipment on electricity, oil and gas facilities. Its product range consists of constant load power stations, back up power generation equipment, clean energy solutions, large steel tanks, silos, cooling towers, pipe spooling, pressure vessels and fabricated structural steel. In addition the segment provides customer support services by way of ongoing maintenance, servicing of equipment and sourcing emergency equipment.

Building Products

The building products segment designs syphonic roof drainage systems for large and/or complex roof structures, supplies and installs metal panel tanks and prefabricated hydraulic systems.

Intersegment transactions

Intersegment transactions were made at market rates. The Energy and Resources operating segment purchases Quality Control services from the Building Products operating segment. Intersegment transactions are eliminated on consolidation.

Intersegment receivables, payables and loans

Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation.

Unallocated items

The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:

Impairment of assets and other non-recurring items of revenue or expense
Income tax expense
Current tax liabilities
Other financial liabilities

EVZ Limited Notes to the financial statements 30 June 2024

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Note 3. Operating segments (continued)

Major customers

The Group has many customers to whom it provides products and services. In the current year, the Group had one major customer in the Energy and Resources operating segment who accounted for 24% (2023: 26%) of external revenue. There are no other significant client accounts.

Operating segment information

Energy & resources $ 79,955,558	Building products $ 38,960,562	Unallocated $ -	Total $ 118,916,120
79,955,558	38,960,562	-	118,916,120
3,354,963 (1,489,076) 14,628 (299,684)	3,623,274 (1,015,396) 21,999 (291,338)	(2,071,942) (46,435) 7,280 10,142	4,906,295 (2,550,907) 43,907 (580,880)
1,580,831	2,338,539	(2,100,955)	1,818,415 320,509
33,828,599	43,128,593	498,682
			2,138,924
			77,455,874 (13,065,487)
911,030	1,230,096	6,685
			64,390,387
			2,147,811
23,865,482	16,337,433	486,497	40,689,412 (9,176,645)

			31,512,767

EVZ Limited Notes to the financial statements 30 June 2024

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Note 3. Operating segments (continued)

Energy & resources $ 82,672,456	Building products $ 28,802,550	Unallocated $ 13,497	Total $ 111,488,503
82,672,456	28,802,550	13,497	111,488,503
2,793,030 (1,408,887) 81,662 (237,242)	2,788,297 (684,982) 12,961 (54,900)	(1,824,054) (47,291) 13,497 (6,256)	3,757,273 (2,141,160) 108,120 (298,398)
1,228,563	2,061,376	(1,864,104)	1,425,835 20,441
34,920,087	36,405,214	1,971,727
			1,446,276
			73,297,028 (13,358,236)
1,845,262	1,165,242	46,064
			59,938,792
			3,056,568
26,537,800	12,143,826	387,071	39,068,697 (9,573,920)

			29,494,777

Geographical information

Australia Asia	Sales to external customers 2024 2023 $ $ 114,163,392 101,955,983 4,752,728 9,244,406	Sales to external customers 2024 2023 $ $ 114,163,392 101,955,983 4,752,728 9,244,406	Geographical non-current assets 2024 2023 $ $ 10,292,852 7,264,863 496,636 532,266	Geographical non-current assets 2024 2023 $ $ 10,292,852 7,264,863 496,636 532,266
	118,916,120	111,200,389	10,789,488	7,797,129

The geographical non-current assets above are exclusive of financial instruments and deferred tax assets.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 3. Operating segments (continued)

Energy & resources $ 67,263,464 8,647,079 4,045,014	Building products $ 38,810,622 20,738 129,203	Total $ 106,074,086 8,667,817 4,174,217
79,955,557	38,960,563	118,916,120
72,793,148 7,108,693 2,688,959	28,609,594 - -	101,402,742 7,108,693 2,688,959
82,590,800	28,609,594	111,200,394

Construction contract revenue and services revenue are recognized over time

** Parts sales are recognized at a point in time

Note 4. Expenses

Profit before income tax includes the following specific expenses: Finance costs Interest and finance charges paid/payable on bank facilities and other Interest and finance charges paid/payable on lease liabilities Finance costs expensed Leases Short-term lease payments Superannuation expense Defined contribution superannuation expense Share-based payments expense Share-based payments expense Employee benefits expense excluding superannuation Employee benefits expense excluding superannuation Write off of assets Plant and equipment	Consolidated 2024 2023 $ $ 263,863 161,735 317,017 136,663	Consolidated 2024 2023 $ $ 263,863 161,735 317,017 136,663
	580,880	298,398
	32,095	44,421
	2,474,557	2,938,247
	109,061	118,800
	49,226,035	41,131,192
	30,941	-

EVZ Limited Notes to the financial statements 30 June 2024

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Note 5. Income tax

Income tax benefit Current tax Deferred tax expense Utilisation of carried forward tax losses Prior year overprovision Aggregate income tax benefit Deferred tax included in income tax benefit comprises: Increase in deferred tax assets Decrease in deferred tax liabilities Deferred tax expense Numerical reconciliation of income tax benefit and tax at the statutory rate Profit before income tax benefit Tax at the statutory tax rate of 30% (2023: 30%) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Share-based payments Other permanent differences Previously unrecognised tax losses now recognised Difference in overseas tax rates Prior year overprovision Tax affect of provisions acquired Income tax benefit Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 30%	Consolidated 2024 2023 $ $ 896,160 743,977 (306,346) (121,791) (872,548) (590,914) (37,775) (51,713)	Consolidated 2024 2023 $ $ 896,160 743,977 (306,346) (121,791) (872,548) (590,914) (37,775) (51,713)
	(320,509)	(20,441)
	(300,640) (5,706)	(118,741) (3,050)
	(306,346)	(121,791)
	1,818,415	1,425,835
	545,524 46,825 70,215	427,751 - (57,447)
	662,564 (925,431) (19,868) (37,774) -	370,304 (370,304) 98,300 (51,713) (67,028)
	(320,509)	(20,441)
	Consolidated 2024 2023 $ $ - 3,084,771
	-	925,431

The group has no unrecognised tax losses as at 30 June 2024. All previously unrecognised tax losses have been utilised or recognised in the deferred tax asset at the end of the financial year.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 5. Income tax (continued)

Deferred tax asset Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Unrecouped tax losses Employee benefits and other provisions Other Deferred tax asset Movements: Opening balance Credited to profit or loss Closing balance Deferred tax liability Deferred tax liability comprises temporary differences attributable to: Amounts recognised in profit or loss: Property, plant and equipment Deferred tax liability Movements: Opening balance Credited to profit or loss Closing balance Note 6. Cash and cash equivalents Current assets Cash at bank	Consolidated 2024 2023 $ $ 1,292,218 972,399 1,506,288 1,558,769 231,745 198,443	Consolidated 2024 2023 $ $ 1,292,218 972,399 1,506,288 1,558,769 231,745 198,443
	3,030,251	2,729,611
	2,729,611 300,640	2,610,870 118,741
	3,030,251	2,729,611
	Consolidated 2024 2023 $ $ 31,624 37,330
	31,624	37,330
	37,330 (5,706)	40,380 (3,050)
	31,624	37,330
	Consolidated 2024 2023 $ $ 8,365,542 9,268,155

EVZ Limited Notes to the financial statements 30 June 2024

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Note 7. Trade and other receivables

Current assets Trade receivables Trade receivables - Retention debtors Less: Allowance for expected credit losses Other debtors / prepayments Non-current assets Trade receivables - Retention debtors	Consolidated 2024 2023 $ $ 19,366,322 19,687,004 697,264 796,689 (523,798) (623,726)	Consolidated 2024 2023 $ $ 19,366,322 19,687,004 697,264 796,689 (523,798) (623,726)
	19,539,788	19,859,967
	589,309	815,683

	20,129,097	20,675,650
	1,219,845	1,118,241
	21,348,942	21,793,891

Market practices provide for the retention of monies from progress and final billings on certain construction contracts. The monies are received after a contracted period of time has elapsed following completion of the construction.

Current trade receivables are non-interest bearing and generally on 30 days terms.

Credit risk – trade and other receivables

The Group has no significant concentration of credit risk with respect to any single counter party or Group of counter parties. The class of assets described as Trade and Other Receivables is considered to be the main source of credit risk related to the Group.

On a geographical basis, the Group has credit risk exposures in Australia and Asia given the substantial operations in those regions. The Group’s exposure to credit risk for receivables at reporting date in those regions is as follows:

Australia Asia	Consolidated 2024 2023 17,715,816 17,709,518 4,156,924 4,708,099	Consolidated 2024 2023 17,715,816 17,709,518 4,156,924 4,708,099
	21,872,740	22,417,617

Trade and other receivables pertaining to the Australian entities in the Group, as disclosed in Note 28, are provided as security against the Group’s bank facilities.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 7. Trade and other receivables (continued)

Allowance for expected credit losses

The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Expected credit loss rate 2024 2023 Consolidated % % Not overdue - - 0 to 3 months overdue - 1% Over 6 months overdue 25% 100% Other receivables - -	Carrying amount 2024 2023 $ $ 16,925,388 17,666,539 2,263,238 3,330,330 2,094,805 605,065 589,309 815,683	Carrying amount 2024 2023 $ $ 16,925,388 17,666,539 2,263,238 3,330,330 2,094,805 605,065 589,309 815,683	Allowance for expected credit losses 2024 2023 $ $ - - - 18,661 523,798 605,065 - -	Allowance for expected credit losses 2024 2023 $ $ - - - 18,661 523,798 605,065 - -
	21,872,740	22,417,617	523,798	623,726

Movements in the allowance for expected credit losses are as follows:

Opening balance Additional provisions recognised Provisions utilised Closing balance	Consolidated 2024 2023 $ $ 623,726 574,996 245,735 110,407 (345,663) (61,677)	Consolidated 2024 2023 $ $ 623,726 574,996 245,735 110,407 (345,663) (61,677)
	523,798	623,726

Closing balance

Market and economic conditions have tightened over the previous year which has impacted an increase in provisions utilised year on year.

However, the overall group receivables balance has reduced year on year which has also been factored into the expected credit loss rate and a slightly lower provision level in absolute dollars.

Construction contracts Net construction work in progress at the reporting date: Contract costs incurred to date Profit recognised to date WIP acquired from business combination Less: Progress billings received and receivable Net construction work in progress Representing: Contract liabilities (Receipts in advance) Contract assets (Amounts due from customers for contract work in progress)	Consolidated 2024 2023 $ $ 93,539,320 85,350,042 12,539,197 10,756,620 - 326,657	Consolidated 2024 2023 $ $ 93,539,320 85,350,042 12,539,197 10,756,620 - 326,657
	106,078,517 (104,833,952)	96,433,319 (100,658,517)
	1,244,565	(4,225,198)
	(3,135,705) 4,380,270	(6,772,896) 2,547,698
	1,244,565	(4,225,198)

EVZ Limited Notes to the financial statements 30 June 2024

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Note 7. Trade and other receivables (continued)

Construction contracts which have remaining performance obligations at 30 June 2024 total $51,905,568 (2023: $75,022,483). This obligation excludes long term service and maintenance contracts also held by the group at 30 June 2024 for $13,002,645 (2023: $9,499,567).

Refer note 1 for more detail of accounting policy for revenue recognition.

Note 8. Contract assets

	Consolidated	Consolidated
	2024	2023
	$	$
Current assets
Contract assets	4,796,260	2,547,698

Contract assets

Contract assets are balances due from customers under long term contracts as work is performed and therefore a contract asset is recognised over the period in which the performance obligation is fulfilled. This represents the Group’s right to consideration for the services transferred to date. Amounts are generally reclassified to accounts receivable when there is an unconditional right to receive payment.

Contract Asset details: Contract assets - construction Contract assets - service contracts	Consolidated 2024 2023 $ $ 4,380,270 2,547,698 415,990 -	Consolidated 2024 2023 $ $ 4,380,270 2,547,698 415,990 -
	4,796,260	2,547,698

Contract assets and contract liabilities are offset where they relate to the same contract.

Contract assets at the start of the reporting period was $2,547,698 (2023: $3,860,275). All contract assets recognised at the start of the reporting period have been reclassified to accounts receivable and subsequently received during the financial year.

Note 9. Inventories

	Consolidated	Consolidated
	2024	2023
	$	$
Current assets
Stock on hand - at cost	3,747,014	3,494,723

Inventories pertaining to the Australian entities in the Group, as disclosed in Note 37 are provided as security against the Group's bank facilities.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 10. Financial assets

	Consolidated	Consolidated
	2024	2023
	$	$
Current assets
Security deposits	267,878	235,575

Funds on deposit represent security deposits covering a guarantee for property lease obligations and contract performance bonds.

Note 11. Right-of-use assets

Non-current assets Land and buildings - right-of-use Less: Accumulated depreciation Office equipment - right-of-use Less: Accumulated depreciation	Consolidated 2024 2023 $ $ 5,418,809 2,805,899 (1,778,563) (1,646,924)	Consolidated 2024 2023 $ $ 5,418,809 2,805,899 (1,778,563) (1,646,924)
	3,640,246	1,158,975
	199,711 (88,052)	195,918 (91,741)
	111,659	104,177
	3,751,905	1,263,152

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2022 Additions Exchange differences Depreciation expense Balance at 30 June 2023 Additions Disposals Exchange differences Depreciation expense Balance at 30 June 2024	Land and buildings ROU $ 1,069,060 757,350 (2,878) (664,557)	Office equipment ROU $ 143,361 - - (39,184)	Total $ 1,212,421 757,350 (2,878) (703,741)
	1,158,975 3,348,267 - 1,779 (868,775)	104,177 56,336 (7,881) - (40,973)	1,263,152 3,404,603 (7,881) 1,779 (909,748)
	3,640,246	111,659	3,751,905

EVZ Limited Notes to the financial statements 30 June 2024

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Note 12. Property, plant and equipment

Non-current assets Buildings - at cost Less: Accumulated depreciation Leasehold improvements - at cost Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Fixtures and fittings - at cost Less: Accumulated depreciation Motor vehicles - at cost Less: Accumulated depreciation Computer equipment - at cost Less: Accumulated depreciation	Consolidated 2024 2023 $ $ 194,962 196,533 (15,922) (12,120)	Consolidated 2024 2023 $ $ 194,962 196,533 (15,922) (12,120)
	179,040	184,413
	488,512 (99,348)	359,334 (235,961)
	389,164	123,373
	13,366,969 (7,624,802)	14,154,505 (8,792,335)
	5,742,167	5,362,170
	469,672 (328,541)	407,626 (299,207)
	141,131	108,419
	1,761,594 (1,430,862)	1,988,246 (1,548,852)
	330,732	439,394
	967,150 (738,799)	1,065,295 (749,087)
	228,351	316,208
	7,010,585	6,533,977

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Consolidated Balance at 1 July 2022 Additions Additions from business acquisitions Exchange differences Depreciation expense Balance at 30 June 2023 Additions Exchange differences Write off of assets Depreciation expense Balance at 30 June 2024	Buildings $ 192,495 - - (1,849) (6,233)	Improvemen ts $ 112,551 30,182 - (515) (18,845)	Fixtures and Fittings $ 53,450 99,902 - (225) (44,708)	Computer Equipment $ 310,290 167,041 - (1,910) (159,213)	Plant and Equipment $ 3,877,032 1,989,589 522,108 (6,567) (1,019,992)	Motor Vehicles $ 405,698 247,746 - (1,000) (213,050)	Total $ 4,951,516 2,534,460 522,108 (12,066) (1,462,041)
	184,413 - - - (5,373)	123,373 370,861 - (6,667) (98,403)	108,419 80,994 - - (48,282)	316,208 53,821 (1,021) - (140,657)	5,362,170 1,542,189 - (23,454) (1,138,738)	439,394 99,945 - (820) (207,787)	6,533,977 2,147,810 (1,021) (30,941) (1,639,240)
	179,040	389,164	141,131	228,351	5,742,167	330,732	7,010,585

EVZ Limited Notes to the financial statements 30 June 2024

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Note 13. Intangibles

	Consolidated	Consolidated
	2024	2023
	$	$
Non-current assets
Goodwill - at cost	12,072,010	12,072,010

Reconciliations

Reconciliations of the written down values by CGU (Cash Generating Unit) at the beginning and end of the current and previous financial year are set out below:

By Cash Generating Unit Consolidated Balance at 1 July 2022 Balance at 30 June 2023 Balance at 30 June 2024	Syfon Systems Group $ 3,282,532 3,282,532	Brockman Engineering Group $ 8,789,478 8,789,478	Total $ 12,072,010 12,072,010
	3,282,532	8,789,478	12,072,010

Impairment disclosures

The EVZ Group assesses at each annual reporting date the potential impairment to the carrying value of Goodwill of the relevant cash generating unit (CGU) or group of CGU's.

The recoverable amount of each CGU (Brockman Eng and Syfon Systems) is determined based on value-in-use calculations. Value-in-use is calculated based on the present value of pre-tax cash flow projections over a five year period adjusted for the estimated terminal value of the cash generating unit. The cash flows are discounted using a discount rate determined individually for each CGU and reflects current market assessment of the time value of money and industry-specific risk factors. All discount rates are pre tax.

Budgets use estimated weighted average growth rates to project revenue. Costs are calculated taking into account historical gross margins as well as estimated weighted average inflation rates over the periods which are consistent with inflation rates applicable to the locations in which the businesses operate. The forecasts used in the value-in-use calculations are based on the management approved budgets.

Other key assumptions in the value-in-use calculation include gross margin, allowances for capital expenditure and normalisation of working capital changes. Due to the correlation of these factors, assumptions for growth rates and discount rates are the most sensitive in the value-in-use calculation.

The following assumptions were used in the value-in-use calculations:

	2024	2024	2023	2023
	Growth Rates	Discount Rates	Growth Rates	Discount Rates
	%	%	%	%
Syfon Systems Group:
Growth year 1	2%	15%	7%	15%
Growth subsequent years	2%	15%	2%	15%
Engineering (Brockman Eng.):
Growth year 1	2%	15%	(4%)	15%
Growth subsequent years	2%	15%	2%	15%

EVZ Limited Notes to the financial statements 30 June 2024

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Note 13. Intangibles (continued)

A growth rate of 2% in revenue is modelled for Syfon Systems for all future periods. Gross margin is not expected to be impacted.

For Brockman, the growth rate is also 2% reflecting the minimum expected growth that is expected in each of the relevant CGUs in normal markets.

All growth rates consider forward work-in-hand levels, weighted project prospects, consideration of future expected activities, and giving consideration to historical growth rates achieved.

Key estimates

The following sensitivity analysis was undertaken with respect to the value in use calculations and the imbedded assumptions and estimates used in performing the impairment testing on the carrying value of goodwill.

In performing impairment testing on the carrying values of goodwill, certain discount rates and growth rates have been assumed as part of the value-in-use calculations.

The following table illustrates sensitivities to changes in those discount rates and growth rates. The discount and growth rates used, and the results of the sensitivity analysis are:

2024 Growth Rates Discount Rates % % Syfon Systems Group: Growth year 1 - 17% Growth subsequent years - 17% Engineering (Brockman Eng.): Growth year 1 - 17% Growth subsequent years - 17% Value of impairment to carrying value of goodwill based on sensitivity analysis: Syfon Systems Group Engineering (Brockman Engineering)	2023 Growth Rates Discount Rates % % 7% 17% - 17% (4%) 17% - 17% Consolidated 2024 2023 - - - -	2023 Growth Rates Discount Rates % % 7% 17% - 17% (4%) 17% - 17% Consolidated 2024 2023 - - - -
	-	-

The sensitivity discount rates of 17% are the same as the prior year, and the Growth rates are Nil for 2024 compared with 7% and -4% in 2023. As a result, there is no impairment in either Syfon Systems group or Brockman Engineering.

Note 14. Trade and other payables

Current liabilities Trade payables Other payables	Consolidated 2024 2023 $ $ 11,661,837 11,554,674 6,430,523 4,039,147	Consolidated 2024 2023 $ $ 11,661,837 11,554,674 6,430,523 4,039,147
	18,092,360	15,593,821

EVZ Limited Notes to the financial statements 30 June 2024

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Note 15. Contract liabilities

	Consolidated	Consolidated
	2024	2023
	$	$
Current liabilities
Contract liabilities	3,135,705	6,772,896

Contract liabilities

Contract liabilities relating to construction contracts are balances due to customers under construction contracts. These arise if a milestone payment exceeds the revenue recognised to date. Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period was $6,772,896 (2023: $8,802,809).

Contract assets and contract liabilities are offset where they relate to the same contract.

Note 16. Lease liabilities

Current liabilities Lease liability Non-current liabilities Lease liability	Consolidated 2024 2023 $ $ 1,418,017 1,182,668	Consolidated 2024 2023 $ $ 1,418,017 1,182,668
	4,135,904	1,543,049
	5,553,921	2,725,717

Refer to note 21 - financial instruments for further information on leases.

The lease liabilities are secured by the related underlying assets. Future minimum lease payments are as follows:

0-1 years 1,784,960 (366,944)	1-2 years 1,233,080 (284,014)	2-3 years 706,657 (235,705)	3-4 years 643,010 (201,613)	4-5 years 568,057 (167,807)	5+ Years 2,226,057 (351,817)	TOTAL 7,161,821 (1,607,900)
1,418,016	949,066	470,952	441,397	400,250	1,874,240	5,553,921
1,310,965 (128,297)	1,035,706 (66,019)	544,147 (16,275)	46,705 (1,215)	- -	- -	2,937,523 (211,806)
1,182,668	969,687	527,872	45,490	-	-	2,725,717

Lease payments not recognised as a liability

The group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis.

The expense relating to payments not included in the measurement of the lease liability is as follows:

EVZ Limited Notes to the financial statements 30 June 2024

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Note 16. Lease liabilities (continued)

Short term leases Total lease payments expensed directly to profit or loss Note 17. Provisions Current liabilities Annual leave Long service leave Non-current liabilities Long service leave	Consolidated 2024 2023 32,095 44,421 - -	Consolidated 2024 2023 32,095 44,421 - -
	32,095	44,421
	Consolidated 2024 2023 $ $ 3,105,007 2,780,618 828,983 1,340,774
	3,933,990	4,121,392
	747,400	152,151
	4,681,390	4,273,543

Amounts not expected to be settled within the next 12 months

The current provision for employee benefits includes all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount is presented as current, since the consolidated entity does not have an unconditional right to defer settlement. However, based on past experience, the consolidated entity does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

Note 18. Issued capital

Consolidated 2023 2024 Shares $ 120,621,917 60,142,066	Consolidated 2023 2024 Shares $ 120,621,917 60,142,066	2023 $ 60,099,766
Shares 120,145,917 476,000	Issue price $0.19 $0.09	$ 60,009,326 90,440 60,099,766 42,300 60,142,066
120,621,917 470,000
121,091,917

EVZ Limited Notes to the financial statements 30 June 2024

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Note 18. Issued capital (continued)

Shares issued are performance rights that vested and were issued to employees.

The issue price is the deemed issue price based on the fair value of the performance rights at grant date. No cash received upon issue of shares as exercise price was nil.

Ordinary shares

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. The ordinary shares have no par value.

Capital risk management

Management controls the capital of the Group in order to maintain an appropriate debt to equity ratio, provide shareholders with adequate returns and ensure the Group can fund its operations and continue as a going concern. The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

Note 19. Reserves

Foreign currency reserve Share based payments reserve	Consolidated 2024 2023 $ $ (135,178) (320,798) 185,561 118,800	Consolidated 2024 2023 $ $ (135,178) (320,798) 185,561 118,800
	50,383	(201,998)

Foreign currency reserve

The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 19. Reserves (continued)

Movements in reserves

Movements in each class of reserve during the current and previous financial year are set out below:

Consolidated Balance at 1 July 2022 Foreign currency translation Performance rights vested and issued Share based payment expense Balance at 30 June 2023 Foreign currency translation Performance rights vested and issued Share based payments expense Balance at 30 June 2024	Foreign Currency Reserve $ (132,444) (188,354) - -	Share Option Reserve $ 90,440 - (90,440) 118,800	Total $ (42,004) (188,354) (90,440) 118,800
	(320,798) 185,620 - -	118,800 - (42,300) 109,061	(201,998) 185,620 (42,300) 109,061
	(135,178)	185,561	50,383

During the year 284,000 (2023: 470,000) performance rights vested to Key Management Personnel. The performance rights were issued subsequent to year end.

Performance rights which have been granted expire at the end of the financial period to which they relate if the targeted performance objectives are not met. The company plans to award and allot the shares within 90 days of the date of this report.

Note 20. Dividends

Dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Franking credits

		Consolidated	Consolidated
		2024	2023
		$	$
Franking credits available for subsequent financial years based on a tax rate of	30%	1,813,797	1,813,797

Note 21. Financial instruments

Financial risk management objectives

The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.

The main purpose of non-derivative financial instruments is to raise finance for Group operations.

Treasury risk management

The Board of Directors is responsible for monitoring treasury risk. Currency and interest rate exposures are reviewed regularly to ensure any risk associated with these exposures is minimized.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 21. Financial instruments (continued)

Market risk

Foreign currency risk

The Group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and services in currencies other than the Group’s measurement currency. The Group monitors its foreign exchange exposure on a regular basis.

Refer Note 3 for a breakdown of revenue and assets by geographic location. Whilst the Group monitors its foreign exchange risk, it does not believe there is any material risk associated with its foreign exchange exposure.

Price risk

The Group minimises its exposure to price risk as costs of major materials and components are agreed and fixed with suppliers and subcontractors at the time of project tender.

Interest rate risk

The consolidated entity has no bank loan borrowings at balance date (2023: $nil).

The Group currently has no bank loans and all bank deposits are at variable rates, and therefore believes it has minimal exposure to interest rate risk.

Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not have any material credit risk exposure to any single receivable or Group of receivables under financial instruments entered into by the Group.

Liquidity risk

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash reserves are maintained.

Refer below for a maturity analysis of financial liabilities and to Note 16 Leases for a maturity analysis of lease liabilities.

Weighted average interest rate Consolidated - 2024 % Non-derivatives Non-interest bearing Trade payables - Other payables - Interest-bearing - variable Finance Leases 7.83% Total non-derivatives	1 year or less $ 11,661,837 5,749,134 638,184	Between 1 and 2 years $ - - 520,074	Between 2 and 5 years $ - - 509,870	Over 5 years $ - - 13,274	Remaining contractual maturities $ 11,661,837 5,749,134 1,681,402
	18,049,155	520,074	509,870	13,274	19,092,373

EVZ Limited Notes to the financial statements 30 June 2024

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Note 21. Financial instruments (continued)

Weighted average interest rate Consolidated - 2023 % Non-derivatives Non-interest bearing Trade payables - Other payables - Interest-bearing - variable Finance Leases 6.65% Total non-derivatives	1 year or less $ 11,554,674 1,668,802 623,537	Between 1 and 2 years $ - - 453,995	Between 2 and 5 years $ - - 379,914	Over 5 years $ - - -	Remaining contractual maturities $ 11,554,674 1,668,802 1,457,446
	13,847,013	453,995	379,914	-	14,680,922

Fair value of financial instruments

The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Group approximate their carrying value.

The fair values of financial assets and liabilities, together with their carrying amounts in the statement of financial position, for the consolidated entity are as follows:

2024 Carrying amount Fair value $ $ 8,365,538 8,365,538 267,878 267,878 20,759,633 20,759,633 589,309 589,309	2024 Carrying amount Fair value $ $ 8,365,538 8,365,538 267,878 267,878 20,759,633 20,759,633 589,309 589,309	2023 Carrying amount Fair value $ $ 9,268,152 9,268,152 235,575 235,575 20,978,208 20,978,208 815,683 815,683	2023 Carrying amount Fair value $ $ 9,268,152 9,268,152 235,575 235,575 20,978,208 20,978,208 815,683 815,683
29,982,358	29,982,358	31,297,618	31,297,618
11,661,837 6,430,523 1,482,472	11,661,837 6,430,523 1,482,472	11,554,674 4,130,617 1,353,913	11,554,674 4,130,617 1,353,913
19,574,832	19,574,832	17,039,204	17,039,204

Note 22. Key management personnel disclosures

Names and positions of Directors and key management personnel in office at any time during the financial year are:

Directors

The following persons were directors of EVZ Limited during the financial year:

Mr G Burns Mr R Edgley Mr I Luck

Non-Executive Chairman Non-Executive Director Non-Executive Director

EVZ Limited Notes to the financial statements 30 June 2024

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Note 22. Key management personnel disclosures (continued)

Other key management personnel

The following persons also had the authority and responsibility for planning, directing and controlling the major activities of the consolidated entity, directly or indirectly, during the financial year:

Mr S Farthing Chief Executive Officer and Executive General Manager - Energy and Resources Mr P van der Wal Chief Financial Officer and Company Secretary Mr A Bellgrove Executive General Manager - Building Products

The Group changed its Operating Segments during the financial period (refer note 3) and appointed executive managers to each of the new segments accordingly. As a result of the restructure, management below this level are no longer considered key management personnel.

Compensation

The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below:

Short-term employee benefits Post-employment benefits Share-based payments	Consolidated 2024 2023 $ $ 1,506,270 1,399,942 82,473 75,697 50,773 118,800	Consolidated 2024 2023 $ $ 1,506,270 1,399,942 82,473 75,697 50,773 118,800
	1,639,516	1,594,439

Refer to disclosures in Note 25 for other transactions with Key Management Personnel.

Key Management Personnel are the non-executive directors and employees who have authority and responsibility for planning, directing and controlling the activities of the Company.

Note 23. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by Grant Thornton, the auditor of the company:

	Consolidated	Consolidated
	2024	2023
	$	$
Audit services
Audit or review of the financial statements	186,585	159,000

Note 24. Contingent liabilities

The consolidated entity has given bank guarantees as at 30 June 2024 of $5,617,557 (2023: $4,548,938) to various customers.

The facilities are secured by a registered equitable mortgage over the assets and undertakings of all Australian companies in the Group.

In addition to the above facility, the Group has provided cash backed bank guarantees of $43,266 (2023: $86,532) as security on projects. These bank guarantees are secured by term deposits totalling the same amount.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 24. Contingent liabilities (continued)

Bank Guarantee Facilities Used at the reporting date Unused at the reporting date	Consolidated 2024 2023 $ $ 5,617,557 4,548,938 1,382,443 2,451,062	Consolidated 2024 2023 $ $ 5,617,557 4,548,938 1,382,443 2,451,062
	7,000,000	7,000,000

Note 25. Related party transactions

Parent entity EVZ Limited is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 27.

Key management personnel

Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in the directors' report.

Transactions with related parties

The following transactions occurred with related parties:

	Consolidated	Consolidated
	2024	2023
	$	$
Payment for other expenses:
Directors fees	251,267	203,000

Receivable from and payable to related parties

The following balances are outstanding at the reporting date in relation to transactions with related parties:

	Consolidated	Consolidated
	2024	2023
	$	$
Current payables:
Director fees payable	52,500	42,300

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 26. Parent entity information

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Loss after income tax Total comprehensive income Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Issued capital Share based payments reserve Accumulated losses Total equity	Parent 2024 2023 $ $ (1,800,314) (1,742,997)	Parent 2024 2023 $ $ (1,800,314) (1,742,997)
	(1,800,314)	(1,742,997)
	Parent 2024 2023 $ $ 178,727 213,534
	3,266,100	1,971,788
	329,174	281,091
	3,253,914	387,085
	60,142,069 185,558 (60,315,441)	60,099,766 118,800 (58,633,863)
	12,186	1,584,703

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries

A deed of cross guarantee between EVZ Ltd (Parent Entity), Brockman Engineering Pty Ltd, Syfon Systems Pty Ltd, and Brockman Services Pty Ltd (previously Syfon International Pty Ltd and EVZ Energy Pty Ltd) (Group Entities) is enacted and relief was obtained from preparing financial statements for those Group Entities under ASIC Legislative Instrument 2016/785. Under the deed, EVZ Ltd and the Group Entities jointly guarantee to support the liabilities and obligations of the Group Entities. EVZ Ltd and the Group Entities are the only parties to the Deeds of Cross Guarantee and form the Closed Group.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.

Material accounting policy information

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following:

● Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 27. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1:

		Ownership	interest
	Principal place of business /	2024	2023
Name	Country of incorporation	%	%
Syfon Systems Pty Ltd	Australia	100.00%	100.00%
Syfon Systems Sdn Bhd	Malaysia	100.00%	100.00%
Syfon Systems Pte Ltd	Singapore	100.00%	100.00%
Syfon Systems SE Asia, Inc.	Philippines	100.00%	100.00%
Syfon Systems Vietnam Co Ltd	Vietnam	100.00%	100.00%
Brockman Engineering Pty Ltd	Australia	100.00%	100.00%
Brockman Project Services Pty Ltd	Australia	100.00%	100.00%
TSF Power Pty Ltd	Australia	100.00%	100.00%
Brockman Services Pty Ltd*	Australia	100.00%	100.00%
Tank Industries Australia Pty Ltd	Australia	100.00%	100.00%

Brockman Services Pty Ltd (previously Syfon International Pty Ltd) did not trade during the year or the prior year.

Note 28. Deed of cross guarantee

The following entities are party to a deed of cross guarantee under which each company guarantees the debts of the others:

EVZ Ltd (Parent Entity) Brockman Engineering Pty Ltd Syfon Systems Pty Ltd Brockman Services Pty Ltd (previously Syfon International Pty Ltd)

By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare financial statements and directors' report under Corporations Instrument 2016/785 issued by the Australian Securities and Investments Commission.

The above companies represent a 'Closed Group' for the purposes of the Corporations Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by EVZ Limited, they also represent the 'Extended Closed Group'.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 28. Deed of cross guarantee (continued)

Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial position of the 'Closed Group'.

Statement of profit or loss and other comprehensive income Sales Cost of sales Corporate costs Administration Finance costs Profit/(loss) before income tax benefit Income tax benefit Profit after income tax benefit Other comprehensive income for the year, net of tax Total comprehensive income for the year Equity - accumulated losses Accumulated losses at the beginning of the financial year Profit after income tax benefit Accumulated losses at the end of the financial year	2024 $ 92,592,549 (82,051,848) (2,118,377) (7,961,590) (488,606)	2023 $ 92,158,330 (82,713,947) (1,871,345) (7,062,290) (157,618)
	(27,872) 300,640	353,130 118,741
	272,768 -	471,871 -
	272,768	471,871
	2024 $ (31,412,825) 272,768	2023 $ (31,884,696) 471,871
	(31,140,057)	(31,412,825)

EVZ Limited Notes to the financial statements 30 June 2024

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Note 28. Deed of cross guarantee (continued)

Statement of financial position Current assets Cash and cash equivalents Trade and other receivables Inventories Non-current assets Property, plant and equipment Intangibles Deferred tax asset Other Total assets Current liabilities Trade and other payables Borrowings Non-current liabilities Borrowings Provisions Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity Note 29. Events after the reporting period	2024 $ 6,407,416 18,219,163 1,499,026	2023 $ 6,835,184 17,318,927 1,521,052
	26,125,605	25,675,163
	8,619,325 12,072,010 3,030,251 5,756,322	5,720,391 12,072,010 2,729,611 6,851,845
	29,477,908	27,373,857
	55,603,513	53,049,020
	21,464,486 926,495	22,378,407 1,182,668
	22,390,981	23,561,075
	3,741,699 524,589	- 941,227
	4,266,288	941,227
	26,657,269	24,502,302
	28,946,244	28,546,718
	59,835,629 250,672 (31,140,057)	59,809,006 150,537 (31,412,825)
	28,946,244	28,546,718

EVZ Limited Notes to the financial statements 30 June 2024

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Note 30. Reconciliation of profit after income tax to net cash from operating activities

Profit after income tax benefit for the year Adjustments for: Depreciation and amortisation Write off of property, plant and equipment Net gain on disposal of property, plant and equipment Share-based payments Foreign exchange differences Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Decrease/(increase) in contract assets Increase in inventories Increase in deferred tax assets Decrease in prepayments Increase in trade and other payables Decrease in contract liabilities Increase/(decrease) in provision for income tax Decrease in deferred tax liabilities Increase in employee benefits Net cash from operating activities Note 31. Earnings per share Profit after income tax attributable to the owners of EVZ Limited Basic earnings per share Diluted earnings per share Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Performance rights over ordinary shares Weighted average number of ordinary shares used in calculating diluted earnings per share	Consolidated 2024 2023 $ $ 2,138,924 1,446,276 2,550,908 2,141,160 30,941 - - (23,044) 109,061 - - (69,553) 444,949 (1,854,295) (2,248,562) 1,312,577 (252,291) (883,304) (300,640) (118,741) 152,417 2,211 2,498,539 3,124,565 (3,637,191) (2,029,911) (73,703) 7,522 (5,706) (3,050) 407,847 789,123	Consolidated 2024 2023 $ $ 2,138,924 1,446,276 2,550,908 2,141,160 30,941 - - (23,044) 109,061 - - (69,553) 444,949 (1,854,295) (2,248,562) 1,312,577 (252,291) (883,304) (300,640) (118,741) 152,417 2,211 2,498,539 3,124,565 (3,637,191) (2,029,911) (73,703) 7,522 (5,706) (3,050) 407,847 789,123
	1,815,493	3,841,536
	Consolidated 2024 2023 $ $ 2,138,924 1,446,276
	Cents 1.77 1.69 Number 121,004,355 5,910,028	Cents 1.20 1.14 Number 120,415,868 6,103,026
	126,914,383	126,518,894

Note 32. Share-based payments

During the period performance rights over ordinary shares in the company were granted as remuneration to key executives in the group as part of the Long-Term Incentive (LTI) program. These performance rights will vest subject to the meeting of Key Performance Indicators (“KPIs”) and service conditions.

EVZ Limited Notes to the financial statements 30 June 2024

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Note 32. Share-based payments (continued)

Details regarding the payments related to these performance rights are as follows:

	Consolidated	Consolidated
	2024	2023
	$	$
a) Expense recognised in profit or loss
Share based payments expenses for the year comprise:
Performance rights under Long Term Incentive plan	109,058	118,800

b) Performance rights granted and outstanding

The following table shows the performance rights granted and outstanding at the beginning and end of the reporting period.

Outstanding at the beginning of the financial year Granted Forfeited / lapsed Exercised Outstanding at the end of the financial year Vested and exercisable at the end of the financial year	Number of rights Weighted average exercise price 2024 2024 4,070,000 $0.00 2,600,000 $0.00 (1,516,000) $0.00 (470,000) $0.00 4,684,000 $0.00 284,000 $0.00	Number of rights Weighted average exercise price 2023 2023 4,876,000 $0.00 2,200,000 $0.00 (2,530,000) $0.00 (476,000) $0.00 4,070,000 $0.00 470,000 $0.00

c) Performance rights granted as remuneration

2024

Fair Value at grant date Grant date Expiry date price 30/09/2020 30/09/2023 $0.09 01/08/2021 01/08/2024 $0.16 12/08/2022 12/08/2025 $0.19 23/08/2023 23/08/2026 $0.14	Balance at the start of the year 470,000 1,800,000 1,800,000 -	Granted - - - 2,600,000	Exercised (470,000) - - -	lapsed/ forfeited/ other - (1,516,000) - -	Balance at the end of the year - 284,000 1,800,000 2,600,000
	4,070,000	2,600,000	(470,000)	(1,516,000)	4,684,000

EVZ Limited Notes to the financial statements 30 June 2024

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Note 32. Share-based payments (continued)

2023 Fair Value at grant date Grant date Expiry date price 26/09/2019 26/09/2022 $0.09 30/09/2020 30/09/2023 $0.14 01/08/2021 01/08/2024 $0.16 12/08/2022 12/08/2025 $0.19	Balance at the start of the year 476,000 2,200,000 2,200,000 -	Granted - - - 2,200,000	Exercised (476,000) - - -	Expired/ forfeited/ other - (1,730,000) (400,000) (400,000)	Balance at the end of the year - 470,000 1,800,000 1,800,000
	4,876,000	2,200,000	(476,000)	(2,530,000)	4,070,000

EVZ Limited Consolidated entity disclosure statement As at 30 June 2024

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					Australian
		Trustee,			resident or	Foreign tax
		partner, or	% of share		foreign resident	jurisdiction(s)
		participant in	capital	Country of	(for tax	of foreign
Name of Entity	Entity type	joint venture	held	incorporation	purpose)	residents
EVZ Limited	Body Corporate	n/a	n/a	Australia	Australian	n/a
Brockman Engineering Pty Ltd	Body Corporate	n/a	100%	Australia	Australian	n/a
Brockman Project Services Pty Ltd	Body Corporate	n/a	100%	Australia	Australian	n/a
Brockman Services Pty Ltd	Body Corporate	n/a	100%	Australia	Australian	n/a
Syfon Systems Pty Ltd Australia	Body Corporate	n/a	100%	Australia	Australian	n/a
Syfon Systems Sdn Bhd Malaysia	Body Corporate	n/a	100%	Malaysia	Foreign	Malaysia
Syfon Systems Pte Ltd Singapore	Body Corporate	n/a	100%	Singapore	Foreign	Singapore
Syfon Systems SE Asia, Inc.	Body Corporate	n/a	100%	Philippines	Foreign	Philippines
Syfon Systems Vietnam Co Ltd	Body Corporate	n/a	100%	Vietnam	Foreign	Vietnam
Tank Industries Australia Pty Ltd	Body Corporate	n/a	100%	Australia	Australian	n/a
TSF Power Pty Ltd	Body Corporate	n/a	100%	Australia	Australian	n/a

Basis of preparation

This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It includes certain information for each entity that was part of the consolidated entity at the end of the financial year.

Determination of tax residency

Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency.

In determining tax residency, the consolidated entity has applied the following interpretations:

Australian tax residency

The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5.

Foreign tax residency

Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign tax legislation.

EVZ Limited Directors' declaration 30 June 2024

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In the directors' opinion:

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2024 and of its performance for the financial year ended on that date;
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable;
at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee described in note 28 to the financial statements; and
the information disclosed in the attached consolidated entity disclosure statement is true and correct.

The directors have been given the declarations required by section 295A of the Corporations Act 2001.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Graham Burns Chairman

26 August 2024

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Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222

Independent Auditor’s Report

To the Members of EVZ Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of EVZ Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001 , including:

a giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

www.grantthornton.com.au ACN-130 913 594

12140505v1

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

How our audit addressed the key audit matter

Revenue from contracts with customers (Note 3)

In accordance with AASB 15 Revenue from Contracts with Customers , revenues from goods and services are recognised based on the completion of performance obligations under each contract.

Our procedures included, amongst others:

Obtaining an understanding of the nature of revenue transactions and the process and internal controls at each subsidiary;

For the year ended 30 June 2024 the Group recognised revenue from construction contracts of $118,908,415. Revenue for these contracts is recognised over time with reference to the input method to determine revenue to be recognised.

Selecting a sample of revenue transactions and obtain the contract or agreements, test whether the revenue is being calculated and recognised appropriately;
Performing testing on debtors outstanding at balance date to ensure these exist and have been recovered subsequent to 30 June 2024;

The determination of the appropriate timing of revenue recognition requires estimation of the inputs (costs) remaining in the contract and the expected margins earned on the contracts which requires management judgement.

Detailed analytical review of revenue and gross margin analysis across the Group;
• Reviewing material work-in-progress at 30 June 2024 to verify that the calculation utilised and the inputs in the calculation are reasonable and reflect the expected profit margin;

This area is a key audit matter due to the high level of estimation and management judgement required to determine the revenue recognised from each contract.

This area is a key audit matter due to the high level of estimation and management judgement required to determine the revenue recognised from each contract.	•	Reviewing material work-in-progress at 30 June 2024 to verify that the calculation utilised and the inputs in the calculation are reasonable and reflect the expected profit margin;
	•	Reviewing project margins in the 30 June 2024
		work-in-progress compared to actual margins
		achieved by the business throughout FY24;
	•	Discussing material projects performance with
		General Managers and obtaining signed
		confirmations from Project Managers to determine
		whether the respective project status agrees with
		the work-in-progress ledger; and
	•	Assessing the adequacy of financial report
		disclosures.
Goodwill impairment (Note 13)
As at 30 June 2024, the Group has goodwill of	Our procedures included, amongst others:
$12,072,010 across two cash generating units (CGUs). The Group is required to perform an annual impairment test of goodwill in accordance with AASB 136 Impairment of Assets.	•	Assessing managements goodwill impairment process in accordance with the requirements of AASB 136;
The Group estimates the recoverable of its CGUs by employing a discounted cash flow model and, in doing	•	Assessing the design and implementation of relevant controls for embedded in the process;
so, must determine the following key inputs and assumptions:	•	Assessing managements goodwill allocation by reviewing their determination of the cash generating
• forecast cash flows from operations;		units or group of cash generating units;

forecast cash flows from operations;
working capital adjustments;
capital expenditure estimates;

Grant Thornton Audit Pty Ltd

discount and growth rates; and • Reviewing management's goodwill impairment models as at 30 June 2024 for accuracy and
• terminal value. technical compliance;
This area is a key audit matter due to management estimation and judgement involved in the assessment. • Reviewing the key assumptions used in the model for reasonableness given historical results, subsequent events, contract pipeline and work backlog;
Performing a sensitivity analysis on the key assumptions utilised in management models;
Reviewing the FY24 forecasts against FY24 actuals to determine managements’ ability to forecast accurately;
Inquiring with management on current business performance and pipeline of projects to support cash flow assumptions in the model;
Reviewing managements forecast for FY25 - FY29;
Determining an auditors point estimate for the recoverable amount of the CGUs and comparing the outcome to managements; and
Assessing the adequacy of financial report disclosures.

Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial report

The directors of the Company are responsible for the preparation of:

a the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001 , and

for such internal control as the directors determine is necessary to enable the preparation of:

i the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and
ii the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error.

Grant Thornton Audit Pty Ltd

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This description forms part of our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in pages 5 to 11 of the Directors’ report for the year ended 30 June 2024.

In our opinion, the Remuneration Report of EVZ Limited, for the year ended 30 June 2024 complies with section 300A of the Corporations Act 2001 .

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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M A Cunningham Partner – Audit & Assurance

Melbourne, 26 August 2024

Grant Thornton Audit Pty Ltd

EVZ Limited Shareholder information 30 June 2024

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The shareholder information set out below was applicable as at 9 August 2024.

Distribution of equitable securities

Analysis of number of equitable security holders by size of holding:

Ordinary shares % of total Number shares of holders issued 1,096 0.26 270 0.52 82 0.50 151 4.82 93 93.90	Ordinary shares % of total Number shares of holders issued 1,096 0.26 270 0.52 82 0.50 151 4.82 93 93.90	Options over ordinary shares % of total Number shares of holders issued - - - - - - - - - -	Options over ordinary shares % of total Number shares of holders issued - - - - - - - - - -
1,692	100.00	-	-
1,306	0.57	-	-

Twenty largest quoted equity security holders

The names of the twenty largest security holders of quoted equity securities are listed below:

UBS Nominees Pty Ltd Bond Street Custodians Limited (Salter - D79836 A/C) Airlie Beach Investments Pty Ltd Bond Street Custodians Limited (RSALTE - V38514 A/C) Bond Street Custodians Limited (RSALTE - D62375 A/C) Sirocco Assets Pty Ltd (ABI Superannuation Fund A/C) Myall Resources Pty Ltd (Myall Group Super Fund) Onmell Pty Ltd (ONM BPSF A/C) STF Enterprises Pty Ltd Bond Street Custodians Limited (RSALTE - V39117 A/C) Bond Street Custodians Limited (RSALTE - V37466 A/C) HSBC Custody Nominees (Australia) Limited Three Pillars Investment Group Pty Ltd (Bellgrove Super Fund) Archwin Pty Ltd (Sharp Retirement Fund A/C) Mr Wayne Stephen Glynne + Mrs Carol-Anne Glynne (Tuncurry Super) Tayco Investments Pty Ltd T R B Management Pty Limited (Bowden Super Fund A/C) Ms Serena Salanitri Mrs Carol-Anne Glynne Mr Sean Patrick Martin (The Avebury Family A/C)	Ordinary shares % of total shares Number held issued 23,807,384 19.66 21,500,000 17.76 8,628,264 7.13 5,050,000 4.17 4,500,000 3.72 3,665,000 3.03 2,545,754 2.10 2,443,462 2.02 2,306,840 1.91 2,272,096 1.88 2,120,351 1.75 1,654,272 1.37 1,448,621 1.20 1,444,798 1.19 1,416,287 1.17 1,387,815 1.15 1,025,000 0.85 1,009,230 0.83 1,000,000 0.83 1,000,000 0.83	Ordinary shares % of total shares Number held issued 23,807,384 19.66 21,500,000 17.76 8,628,264 7.13 5,050,000 4.17 4,500,000 3.72 3,665,000 3.03 2,545,754 2.10 2,443,462 2.02 2,306,840 1.91 2,272,096 1.88 2,120,351 1.75 1,654,272 1.37 1,448,621 1.20 1,444,798 1.19 1,416,287 1.17 1,387,815 1.15 1,025,000 0.85 1,009,230 0.83 1,000,000 0.83 1,000,000 0.83
	90,225,174	74.55

Unquoted equity securities

There are no unquoted equity securities.

EVZ Limited Shareholder information 30 June 2024

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Substantial holders

Substantial holders in the company are set out below:

	Ordinary	shares
		% of total
		shares
	Number held	issued
UBS Nominees Pty Ltd	23,807,384	19.66
Bond Street Custodians Limited (Salter - D64848 A/C)	21,500,000	17.76
Airlie Beach Investments P/L and Sirocco Assets P/L	12,293,264	10.15

Voting rights

The voting rights attached to ordinary shares are set out below:

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

There are no voting rights attached to options for ordinary shares until the options have been exercised.

EVZ Limited Corporate directory 30 June 2024

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Directors	Mr. Graham Burns, Chairman & Non-Executive Director
	Mr. Robert Edgley, Non-Executive Director
	Mr. Ian Luck, Non-Executive Director
Company secretary	Mr. Pieter van der Wal
Registered & principal office	EVZ Limited
	Suite 115, 838 Collins Street
	Melbourne Vic 3008
	Telephone: (03) 9545 5288
	Email: [email protected]
Share register	Computershare Investor Services Pty Ltd
	452 Johnston Street
	Abbotsford Vic 3067
	Telephone: +61 (0)3 9415 4000
Auditor	Grant Thornton Audit Pty Ltd
	Collins Square, Tower 5
	727 Collins Street
	Docklands VIC 3008
Bankers	Commonwealth Bank of Australia
	Collins Square, Tower 1
	727 Collins Street
	Docklands VIC 3008
Stock exchange listing	EVZ Limited shares are listed on the Australian Securities Exchange (ASX code: EVZ)
Website	https://evz.com.au/
Chief Executive Officer	Mr. Scott Farthing

AI assistant

EVZ LIMITED — Annual Report 2024

64889_rns_2024-08-26_ed19b2b6-50b1-46d3-bdd8-1f51ac53b52d.pdf

EVZ Limited Appendix 4E Preliminary final report

1. Company details

2. Results for announcement to the market

Dividends

Comments

3. Net tangible assets

4. Control gained over entities

5. Loss of control over entities

6. Dividends

Current period

Previous period

7. Dividend reinvestment plans

8. Details of associates and joint venture entities

9. Foreign entities

10. Audit qualification or review

11. Attachments

Chairman’s Report

Building Products:

Energy and Resources:

EVZ Limited Chairmans Report 30 June 2024

EVZ LIMITED

EVZ Limited Contents 30 June 2024

General information

Directors

Principal activities

Dividends

Operating & financial review

Significant changes in the state of affairs

Matters subsequent to the end of the financial year

Likely developments and expected results of operations

Business risks

Environmental regulation

EVZ Limited Directors' report 30 June 2024

Information on directors

Company secretary

Meetings of directors

Remuneration report (audited)

Principles used to determine the nature and amount of remuneration

Non-executive directors remuneration

Executive remuneration

Performance based remuneration:

Short Term Incentives (STI)

Long term incentives (LTI):

EVZ Limited Directors' report 30 June 2024

Consolidated entity performance, shareholder wealth and link to directors and executives remuneration

Details of remuneration

Amounts of remuneration

Service agreements

Share-based compensation

Issue of shares

Performance Rights

Performance rights granted as remuneration during the financial year:

Options

Additional disclosures relating to key management personnel

Shareholding

Performance rights holding

This concludes the remuneration report, which has been audited.

Shares under option

Shares under performance rights

Shares issued on the exercise of options

Shares issued on the exercise of performance rights

Indemnity and insurance of officers

Indemnity and insurance of auditor

Proceedings on behalf of the company

Non-audit services

Auditor's independence declaration

Auditor

Introduction

Principle 1: Lay solid foundations for management and oversight

Recommendation 1.1: Board charter and the respective roles and responsibilities of the Board and management.

Recommendation 1.2: Director and senior management appointments

Recommendation 1.3: Terms of appointment

Recommendation 1.4: Company secretary

Recommendation 1.5: Diversity policy

The Group’s measurable objective and current gender profile:

Recommendation 1.6: Board and committee performance

Recommendation 1.7: Senior executive performance

EVZ LIMITED Annual Report 2024