EVZ LIMITED — Interim / Quarterly Report 2020

Feb 26, 2020

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EVZ LIMITED Half Year Investor Update 1HFY2020

27 February 2020

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1HFY20 financial results...

	1HFY20	1HFY19
Revenue from ordinary activities	$34,433,155	$36,930,495
EBITDA	($1,642,108)	$1,625,710
Profit before finance costs and income tax	($2,355,039)	$1,302,585
Profit from ordinary activities before tax	($2,772,994)	$1,070,230
Profit from ordinary activities after tax	($2,845,428)	$840,759
Earnings per share (cents / share)	(2.96)	0.92

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1HFY20 revenue split...

REVENUE YoY

REVENUE DISTRIBUTION

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H2 H2
H2
TSFP
9%
H1
Syfon
$37M 32%
H1 $34M
H1 Brockman
59%
FY2019 FY2020
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NOTES

• 1HFY20 revenue similar YoY.

• Syfon improved performance compared to FY19 indicative in revenue proportion.

• TSF Power revenue increased 26% YoY confirms strategic intent aligns with market and client needs.

• 2HFY20 revenue outlook similar to 1HFY20 revenue.

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1HFY20 profit analysis...

EBITDA DISTRIBUTION

EBITDA REGION

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TSFM
2%
Asia
19%
Syfon
31%
Brockman
-67%
Australia
-81%
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NOTES

• Brockman loss due to impact of revenue and profit adjustment due to negotiated claim provision on major crude tank.

• Claim negotiation remains active to resolve final settlement. Project completion due in 4QFY20.

• Underlying result comparable to 1HFY19 excluding provision for negotiated claims at Brockman.

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1HFY20 operations analysis...

FINANCE COST REVENUE SECTOR

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$417k
Building Sector
41%
$232k
Energy & Water
Infra
59%
FY2019 FY2020
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NOTES

• Finance costs increased due to adoption of AASB 16.

• Energy and Water Infrastructure sector revenue reduced due to adjustment on major crude tank project

• Building construction sector revenue proportion increased due to improved performance at Syfon in Australia and Asia.

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BROCKMAN update...

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Petroleum and water industries capital expenditure levels expected to stay at current levels in foreseeable future. MARKET / INDUSTRY Current global economic instability may defer some upcoming petroleum projects in the short term but recovery expected when risks dissipate. Consolidate position as preferred technical provider to fuel and water industries for tanks and niche mechanical services. STRATEGY Proven capability in delivering contracts up to $50M increases accessible project opportunities in east coast and recovering west coast markets. Current workload stable consisting of a blend of small, medium and larger projects in addition to sustaining capital and maintenance term contracts. OUTLOOK Recent appointment on Hastings Terminal Expansion provides base workload for growth to accrue into FY21

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SYFON update...

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Building construction sector activity in Australia and Asia growing to support population growth and rising living standards.

MARKET / INDUSTRY

Asia infrastructure investment cycle continuing despite geopolitical changes and world economic risks.

Continue to deliver premium quality and technically superior syfonic roof drainage to Australian and Asian markets. STRATEGY Invest further in SE Asia growth through geographic expansion in growth markets of Vietnam, Philippines and South Korea from base in Malaysia. FY20 outlook an improvement from FY19 in Australia and Asia. Ultraflow acquisition now fully integrated benefitting growth in NSW market. OUTLOOK FY21 expect to see return to higher growth rates in both regions.

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TSF POWER update…

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Distributed generation market investment continuing, particularly in renewable waste gas sector.

MARKET / INDUSTRY

Growth in new contracts in diesel standby power market sector. Increased scale and capability allows access to national maintenance contracts.

STRATEGY

Growth in new contracts in diesel standby power market sector. Increased scale and capability allows access to national maintenance contracts.
Expanded service offering to generation plant asset owners now fully
operational in new premises:
1. Operations and planned maintenance support 2. Workshop engine overhauls and renewals.
3. Parts and consumables sales.
4. Portfolio of revenue generating assets.

Growth available in further supporting operations of renewable and waste gas on sector power generation assets. Sector growing as owners capitalise OUTLOOK economic and carbon credit (LGC’s) from waste gas reuse.

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Important notice…

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

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

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

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

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

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www.evz.com.au

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