GR ENGINEERING SERVICES LIMITED — Investor Presentation 2015

Aug 31, 2015

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Investor Presentation FY15 Financial Results

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Disclaimer
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This document has been prepared by GR Engineering Services Limited ACN 121 542 738 ( GR Engineering ) to provide an overview and update of GR Engineering’s activities and FY15 financial performance.

Any statements, opinions, projections or other material contained in this document do not constitute any commitments, representations or warranties by GR Engineering and associated entities or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of GR Engineering shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in the document.

This document includes certain statements, opinions, projections and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Recipients of the document must make their own independent investigations, consideration and evaluation of the opportunity to participate in any investment. By accepting this document the recipient agrees that if it proceeds further with its investigations, consideration or evaluation of the opportunity to participate in any investment it shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon the document.

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About GR Engineering
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Mineral Processing

Selected Clients

• Process engineering design and construction contractor servicing the mining and minerals processing industry

• Specialising in EPC / EPCM contracting to provide project delivery with secure cost, time, plant performance and contract completion warranties and guarantees

• Australian offices in Perth and Brisbane. Offshore presence in West Africa, United Kingdom, PNG, Indonesia and the Americas

• Primary expertise in gold, base metals and industrial mineral commodities

• GR Engineering operates in a niche market – limited EPC competitors, high barriers to entry

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Oil and Gas Services

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Selected Clients

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• Oil and gas services business providing operations, maintenance and well management services to Australian and South East Asian oil and gas industry

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FY15 Results Analysis
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Revenue

EBITDA

PBT

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Op. Cash Flow
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Dividend

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$216.9m $20.3m $17.2m $42.5m 9.5cps
$16.8m
$17.2m
7.0cps
$114.2m $18.7m
90% 18% 2% 127% 36%
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FY15

FY14

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FY15 Results Summary
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Key Themes

• Record sales revenue - $216.9 million

Earnings

• EBITDA - $20.3 million - disciplined approach to operating costs maintained

• Increased operating cash flow - $42.5 million – elevated levels of design and construction activity

• Positive results from implementation of growth strategy – geographical expansion, broader commodity mix and expanded delivery models

Operations

• Successful outcomes being delivered across a diverse range of projects

• Key awards have provide strong earnings visibility through FY16 and into FY17

• Operational capacity maintained to facilitate additional work

Balance Sheet

• Net cash of $63.5 million

• Shareholder returns enhanced with increased full year dividend of 9.5cps (fully franked)

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Operational Performance
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Design and Construction

• Positive contributions received from all major projects, including:

• Hemerdon Tungsten & Tin Project (UK)

• Keysbrook Mineral Sands Project (WA)

• Paraburdoo MRP (WA)

• Syama Oxide Project (Mali)

• Wetar Copper Expansion Project (Indonesia)

• Telfer sustaining works projects (WA)

• Larger offshore earnings contributions and projects for nontraditional commodities (tungsten, tin and mineral sands)

Tungsten & Tin Processing Plant - England

• Benefits obtained from growth strategy materialising

• TRIFR of 6.3 – focusing on zero harm culture

Studies and Consulting

• Completed 31 studies for projects in Australia and internationally

• Engaged on 14 studies as at 30 June

• Activity on projects that are well suited to EPC delivery and across a broad commodity mix

Wet Concentrate Plant – Western Australia

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Operational Performance
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Upstream Production Solutions

• Delivering results within expectation

• Secured new services contracts in Queensland in FY15

• Revenue underpinned by recurrent operations and maintenance contracts

• FY15 revenue of $31.2 million

Order book and pipeline

• Group order book comprised of predominantly Western Australian industrial and precious metals projects (gold, copper, nickel and mineral sands)

• Significant recent awards for:

• Nova Nickel Project process plant and infrastructure ($126 million)

• Forrestania Mill Recovery Enhancement Project (up to $22 million)

• Contracted and recurrent revenue for FY16 estimated at approximately $220 million

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Corporate Summary
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Capital Structure
Shares on issue	m	150.7
Share price_(GNG.ASX)(31/08/15)_	$	1.10
Market capitalisation	$m	165.8
Cash_(30 June 2015)_	$m	64.6
Debt_(30 June 2015)_	$m	1.1
Enterprise Value	$m	102.3

Share Price Performance

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Directors & Management

Shareholder Breakdown

Joe Ricciardo Non-Executive Chairman Geoff Jones Managing Director Tony Patrizi Executive Director Barry Patterson Non-Executive Director Terry Strapp Non-Executive Director Peter Hood Non-Executive Director Joe Totaro CFO & Company Secretary

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27.4%
55.2%
17.4%
Directors & Senior Management Institutions Other
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1. The Company also has 2,295,000 Performance Rights and 942,064 Share Appreciation Rights on issue vesting on various dates with various vesting criteria.

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Contact
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Geoff Jones

Managing Director

• +61 8 6272 6000

• geoff.jones@gres.com.au

Joe Totaro

CFO & Company Secretary

Australian Office Details

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179 Great Eastern Highway Belmont WA 6104

• PO Box 258 Belmont WA 6984

• +61 8 6272 6000

175 Melbourne Street South Brisbane QLD 4101

• +61 7 3838 8000

• +61 8 6272 6000

• joe.totaro@gres.com.au

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Level 11, 607 Bourke Street Melbourne VIC 3000

20 Container Street Tingalpa QLD 6173

• +61 3 8623 9800  +61 7 3239 5800

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