EVZ LIMITED — Interim / Quarterly Report 2022

Feb 17, 2022

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EVZ LIMITED Half Year Investor Update 1HFY2022

18 February 2022

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EVZ is a leading provider of innovative engineering solutions

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A leading provider of steel bulk storage The leader in syfonic roof stormwater Provides technical, operations & tanks, pressure pipe networks & drainage systems in Australia, New maintenance support for the power maintenance for chemical/water storage. Zealand & South-East Asia. generation & renewable energy industry. Recurring & Project Revenue Project Revenue Recurring Revenue 57% of EVZ 1HFY22 Revenue 31% of EVZ 1HFY22 Revenue 12% of EVZ FY22 Revenue H1

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FY22 First Half Result

	1HFY22	1HFY21	1HFY22 Earnings Stability
Revenue from ordinary activities	$28,985,081	$29,772,774	Revenue and underlying earnings were stable in 1HFY22 despite disrupted trading conditions
			including construction industry shutdowns and
EBITDA	$1,454,911	$3,385,236	community lockdowns. New contracts and projects are commencing in 2HFY22 and FY2023.
			Building the Pipeline
Profit before finance costs and income tax	$623,676	$2,562,853	Backlog is predicted to increase by 190% to be in excess of $100M upon execution of the diesel tank
			contract with Viva Energy. Tendering and business
Profit from ordinary activities before tax	$416,427	$2,281,825	activity has recently increased with sales revenue
			forecast to increase during FY2023 and beyond.
			Syfon currently has record levels of revenue backlog
Profit from ordinary activities after tax	$407,660	$2,271,965	and is positioned for growth as the industry and the
			community return to full activity levels post COVID.
			Balance Sheet
Earnings per share (cents / share)	0.42	2.36	Positive cashflow and further debt reduction were
			achieved during 1HFY22. Debt now at $0.9M to be
Net Operating Cashflow	$1,031,786	$168,473	amortised to zero by 30 September 2022. Net cash at half year close of $3.0M.
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1HFY22 Result Snapshot

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REVENUE
H2 $28.1M
H1 $29.7M H1 $29.0M
FY2021 FY2022
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REVENUE DISTRIBUTION
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TSFP
12%
Brockman
Syfon
56%
32%
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REVENUE SECTOR
Building
Sector
38%
Energy &
Water Infra
62%
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EBITDA DISTRIBUTION

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TSFP
19%
Brockman
43%
Syfon
38%
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EBITDA REGION

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Asia
12%
Australia
88%
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Record Backlog & Pipeline

• Predicted revenue backlog is forecast to be $100M up 190% since 30 June 2021, upon execution of the Viva Energy diesel storage tank contract.

• Syfon recently secured three projects in Penang, and a large multistorey office refurbishment in Melbourne Australia. Revenue backlog across the Syfon business is at record levels supporting growth in future periods.

• TSF Power recently secured a renewable gas energy power installation project at Gippsland Water which will be completed in late FY2022.

• Additional BADSP contracts will be awarded in the tank construction industry prior to 31 December 2022. The total new expenditure in this sector to be more than $450M in the next three years.

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REVENUE BACKLOG
120
100
80
60
40
20
-
Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22
Brockman Syfon Aust Syfon Asia TSF Power
Millions
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Balance Sheet Improvement

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TERM DEBT v NET ASSETS DEBT FINANCE COST
30.0
$345k
25.0 $25.0M
20.0
$207k
15.0
10.0
5.0
$0.9M
-
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2021 FY2022
Term Debt Net Assets
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Term debt reduced to $0.9M at 31 December 2021.

Debt finance cost reduced due to reducing term debt balance.

Planned reduction in term debt to zero balance by 30 September 2022 Total Deferred Tax Assets available $4.1M, provided as $2.6M on balance sheet and $1.5M off balance sheet.

NTA increase to 13.4c/share.

Net operating cashflow of $1.0M in 1HFY22, up on $0.2M in 1HFY21.

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Health & Safety is at the core of everything we do

SAFETY BY CHOICE, NOT BY CHANCE

• EVZ has a direct workforce of more than 300, primarily comprised of highly skilled engineers, technicians and tradespersons.

• Our Total Recordable Injury Frequency Rate (TRIFR) and Lost Time Injury Frequency Rate (LTIFR) are in line with industry best practice.

• Our culture continuously reinforces our focus on improving safe work procedures, continuous risk assessment, job safety analysis and worker skills improvement through structured training.

• Our continuing target is zero recordable incidents and zero harm to our people.

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SAFETY PERFORMANCE 2017 - 2022
14.0
12.35
12.0
11.70
10.0
8.0
7.38
6.86
6.0 5.97
4.0 3.35
2.60 2.95 3.46
2.0 1.49 1.68
1.73
-
2017 2018 2019 2020 2021 2022
TRIFR LTIFR
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Brockman seeing increasing project activity

• Tendering activity increased significantly during 2QFY22 as the first group of federal government BADSP grant supported construction contracts were awarded.

• Brockman secured a letter of intent from Viva for the recently Energy

• first BADSP project being three new 30ML diesel tanks at the Geelong refinery with an expected total contract value of circa $40M.

• Brockman was also appointed by Ampol for the design phase of two further 30ML diesel tanks at their Newport Terminal which are expected to convert to a design and construction contract in 4QFY22 with an expected contract value of circa $15M.

• Brockman continues to also grow baseline recurrent revenue from the provision of technical, fabrication and maintenance support to the liquid fuels industry and major industrial companies on the eastern seaboard.

• Brockman remains well positioned to secure further BADSP contracts and other new projects from clients in the liquid fuels, gas water and Defence sectors.

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BROCKMAN REVENUE
60
50
40
30
20
H1
10
0
FY17 FY18 FY19 FY20 FY21 FY22
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Syfon Systems work in hand at historically high levels

• continues to build market share and reach as the

• Syfon geographic first choice for roof drainage systems in Australia and SE Asia.

• is from an increased need for new and

• Syfon benefiting warehousing distribution centres across Australia and SE Asia.

• Syfon in Asia has returned to full capacity as the major Asian markets respond to increased demand for our services in conjunction with new large infrastructure and building developments in Kuala Lumpur, Penang and Vietnam.

• Additional investment in construction automation techniques is improving margins and worker safety.

• The outlook remains positive for the remainder of FY22, FY23 and beyond as the worldwide economy returns to business as usual.

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SYFON REVENUE
25
20
15
10
H1
5
0
FY17 FY18 FY19 FY20 FY21 FY22
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TSF Power activity levels improving

• TSF Power continues to grow baseline revenue from the provision of technical, operations and maintenance support to the renewable and distributed power generation industry and the emergency standby power industry.

• Service workload and parts sales have grown consistently in recent periods with the demand for renewable gas energy continuing to rise as the economy demands more options to manage the impact of climate change.

• Revenue is from the installation of new renewable waste increasing

• gas generator facilities and end of life engine renewals as our capability and market share increases.

• NBN power infrastructure maintenance multi-year contract renewal is a template for expanding the provision of services to support the national data centre needs driven by the “working from home” phenomenon.

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TSF POWER REVENUE
8
7
6
5
4
H1
3
H1
2
1
0
FY17 FY18 FY19 FY20 FY21 FY22
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Appendix

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EVZ: Company Snapshot

Locations

EVZ Head Office Melbourne, VIC

Brockman

Norlane, VIC Belrose, NSW

Syfon Systems

Huntingdale, VIC Glendenning, NSW Meadowbrook, QLD Kuala Lumpur, Malaysia Ho Chi Minh City, Vietnam

TSF Power

Glendenning, NSW Tingalpa, QLD Norlane, VIC Forrestdale, WA

EVZ Limited (ASX:EVZ)

Market Cap A$15M (17 February 2022) Established in 2004

Locations across Australia and SE Asia Direct workforce of ~300, professional, technicians & trades Major Shareholders:

• Thorney Investment Group (19.8%) • Salter Brothers (10.2%) • Board & Management (16.1%)

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Australia’s Fuel Security Package – a key positive

• In the 2020-21 Budget the Federal Government introduced a comprehensive Fuel Security Package that aims to increase Australia’s domestic fuel storage and to maintain a sovereign on-shore refining capability that meets Australia’s needs during an emergency, as well as into the future.

• Included in the package are two programs that are key positives for Brockman: 1) the Boosting Australia’s Diesel Storage Program (BADSP) and 2) The Fuel Security Services Payment (FSSP).

• Up to $260M in grants over three years to 30 June 2024 to support more than $520M of new diesel bulk storage construction in Australia (780 megalitres).

BADSP will drive a significant increase in near term storage tank construction

• The Australian bulk fuel tank construction industry comprises three players who will competitively bid for these works for delivery in FY23 and FY24. It is forecast that industry revenues will increase by more than 60% during these years as a result of the BADSP.

• It is expected that $450M of BADSP contracts will be awarded in the tank construction industry before 31 December 2022.

FSSP will underpin Australian refinery assets until at least 2027 and drive further investment in the Australian Fuels industry

• Provides a variable support payment to refiners for production during periods of low refining margins, materially reducing refiners financial risk and earnings volatility.

• o To receive the FSSP, Australia’s two domestic refiners must commit to keep operating until at least 30 June 2027, with the option to extend this to 30 June 2030. Both Viva Energy and Ampol have committed to ongoing refinery operations in Australia until at least mid 2027.

• Provides the refining sector the level of long term certainty necessary to make ongoing investments in their plants and the industry.

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Australia’s Fuel Security Package

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Source: Energy.gov.au

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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