EVZ LIMITED — Interim / Quarterly Report 2008

Feb 26, 2008

Mr Gordon McKern - Executive Chairman

• Group sales for the first half of FY2008 were $45.7M

• Group EBIT for the first half of FY2008 was $5.2M

• All figures include only 4 months from TSF Engineering

“EVZ is a key player in Engineering services in the Australasian region”

Putra Jaya Mosque, Southern Cross Station, Malaysia Melbourne

Terminals Pty Ltd tanks, Geelong

Key Clients

• Our strategy is to develop a network of engineering service enterprises across Australia through a combination of organic growth, intra-group synergies and acquisitions

• FY2007 was the second consecutive year a profit result was recorded by EVZ

• H1 FY2008 has seen continued strong profit growth

• We have successfully completed 5 acquisitions over the last 3 years, which has generated strong growth through:

• Increased earnings

• Geographic expansion

• Strong organic growth

• Enhanced our integrated shareholder value measurement system

• The Group has in excess of 400 employees, most of whom are skilled trades people

• Declared final fully franked dividend of 0.75c per ordinary share – Payable May 2008

• Declared interim fully franked maiden dividend – Paid November 2007

• Launch of Dividend Reinvestment Scheme - November 2007

• Launch of Employee Share Plan – November 2007

• Balance sheet strength

• Extremely low gearing at 5%

• Strong interest coverage of 13 times

• Capacity to gear for future acquisitions within comfortable levels

Syfon based in Victoria, Queensland and Malaysia, are specialist roof drainage engineers with over 15 years experience in high rainfall areas

Projects in Australia and Asia include sporting arenas, airports, convention centres, mosques, hospitals, and shopping malls

Brockman based in Geelong Victoria, are tank engineers and steel fabricators providing a fully integrated service including design and fabrication, installation and maintenance

The company specialises in the design and fabrication of very large scale tanks, silos and cooling towers for the chemical, petroleum, agriculture and water industries

Danum based in Geelong Victoria, are specialist mechanical engineering contractors providing construction, on site installation and maintenance engineering services to a wide range of industries including petrochemicals, aluminium, glass, cement, defence and agriculture

They have a proven track record of completing shut-down maintenance programs on time and on budget, with an excellent OH&S record

National based in Young New South Wales, is a major steel fabrication business

The company’s core business is the fabrication of structural steelwork for commercial, industrial and retail projects including stadiums, car parking stations, bridges, coal handling facilities and multi-storey buildings

TSF based in Sydney New South Wales, operate throughout Australia, Asia and the Pacific region

The company specialises in the design and installation of back-up power generation equipment and associated services on major infrastructure installations including maintenance and service

The company also has a division which treats wastewater on marine vessels

Divisional Review

• Increasing EBIT margin

• Continually contributes to economic profit

• New office opened in Brisbane - January 2008

Economic profit = cash operating profit after tax and economic depreciation – capital charge

• New projects include Merrylands shopping centre in NSW and the Adelaide showgrounds redevelopment

• The Malaysian division has a number of key projects including the Sunway Lagoon Shopping centre and Kota Kinabulu Airport

• Consistent double digit EBIT margin over recent periods

• Acquisition date - April 2006

• Increasing contribution to economic profit

• Strong first half FY2008 sales

Economic profit = cash operating profit after tax and economic depreciation – capital charge

• Substantial tanks works completed at Terminals, Yarra Valley Water & South East Water

• Major repair contracts with Shell & Alcoa in second half of FY2008

• Acquisition date - January 2007

• Strong historic contribution to economic profit

• Variable historic sales but consistent double digit EBIT Margin

• $5.9M in forward orders

Economic profit = cash operating profit after tax and economic depreciation – capital charge

• Contracts include shutdowns for Blue Circle, maintenance work for Shell, Tenix and Midway re-build

• Acquisition date - June 2007

• Excellent initial contribution to economic profit

• Strong first half FY2008 result

• • Currently completing the Canberra DFO project ($10.9M revenue)

Economic profit = cash operating profit after tax and economic depreciation – capital charge

• Upcoming projects include the Linfox HO Building in Essendon

• Acquisition date - September 2007

• Acquisition pricing was based on the average of prior 3 years EBIT of $3.6M (in line with future earnings expectations)

Economic profit = cash operating profit after tax and economic depreciation – capital charge

• Major projects include Broadway standby generator plant upgrade ($4.4M in revenue), Haymarket reticulation project ($5.2M) and the Global switch project data back-up centre ($3.2M)

• Recently awarded projects include the maintenance and service contract for Sydney Harbour Ferries

Group Review

• Acquisition of TSF Engineering and subsequent expansion into the Sydney market

• Appointment of Chief Operating Officer - Mr Andrew Powis

• The head office corporate team has been enhanced to provide additional support to the operating businesses, whilst continuing the policy of maintaining corporate costs at low levels

• Maiden dividend payment & introduction of employee share scheme

• Appointment of NSW based Independent Director - Mr Graham Burns

• EVZ has significantly increased it’s economic profit over the last 2 years

• EVZ has consistently delivered direct value to the shareholders

• The half year result for FY2008 has almost reached the full year FY2007 result

Economic profit = cash operating profit after tax and economic depreciation – capital charge

Forecast & Future Outlook

Core Business Operations

• EVZ have implemented a number of initiatives to maximise the opportunities and synergies that exist between the existing portfolio of companies

• regular meetings by the COO with the five MDs

• the introduction of a shared tender register

• multiple bids for contract

• the transfer of skilled workers to cover peak demands

• EVZ has expanded its operations into several new geographical markets and will seek to have all businesses operate in the three eastern states, in some cases working from shared office, E.g. Queensland

Acquisitions

• Acquisition template was refined at strategy conference in November 2007

• Focus remains on engineering services sector

• In addition to EVZ’s current acquisition strategy we are also seeking bolt-on acquisitions for Group companies to drive synergies

• Geographic focus remains on eastern seaboard of Australia

• Current low gearing ratios provide capacity for future acquisitions

Corporate Structure

• Corporate overheads continue to decrease as a percentage of Sales

• Forecast annualised Sales of approximately $100M for FY2008

• Forecast EBIT of $11.0M in FY2008 (increase of 88% on FY2007)

• Even in this current volatile market, EVZ is a financially strong company which will continue to produce strong growth in sales, profits and shareholder value

• The ongoing demand in Australia for engineering, maintenance and fabrication services ensures the EVZ revenue and profits are secure

• With 5 established companies based in the engineering services sector, EVZ is well placed to take advantage of the synergies and opportunities that exist between the companies

• EVZ intends to continue to operate with low corporate overheads, whilst providing full support to the Group companies