GR ENGINEERING SERVICES LIMITED — Investor Presentation 2016

Feb 22, 2016

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HY16 Results Presentation 23 February 2016

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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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HY16 Results Summary
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• Improvement on HY15 across all key earnings metrics

• Increased interim dividend

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Revenue EBITDA PBT EPS Dividend
$127.2m $10.8m $10.5m 5.8cps 5cps
$9.9m 4.5cps
$8.3m
$98.2m
4.3cps
30% 9% 27% 35% 11%
HY16
HY15
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HY16 Results Summary
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• Strong operational performance, maintaining budgeted financial outcomes on all projects

• Delivery of Hemerdon Tungsten & Tin Project and Keysbrook Mineral Sands Project

• Commencement of Deflector Gold Project and Nova Nickel Project EPC works

• Operations Positive contributions from the Company’s EPCM projects and design and consultancy engagements

• 13 studies completed, 18 studies on hand

• Strong safety performance – TRIFR 8

• Upstream Production Solutions – delivering in line with expectations in a constrained market

Balance

• Net cash of $42.6 million

• Interim dividend increased to 5cps (fully

• Sheet franked)

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Looking Ahead
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Order book and i eline p p

• Ongoing contributions from:

• EPC: Deflector Gold Project and Nova Nickel Project, both in WA

• EPCM: Wetar Copper Expansion project in Indonesia and Olympias Phase Two gold/lead/zinc project in Greece

• Solid study pipeline

• 18 studies on hand for a range of projects located in Australia and offshore, across various commodities

• Recent key study wins for high quality gold projects in WA

• Reliable visibility for remainder of FY16

• Second half revenue and earnings expected to be consistent with HY16

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Corporate Summary
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Capital Structure
Shares on issue	m	152.4
Share price_(GNG.ASX)(22/02/16)_	$	0.95
Market capitalisation	$m	144.8
Cash_(31 December 2015)_	$m	44.1
Debt_(31 December 2015)_	$m	1.5
Enterprise Value	$m	102.2

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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29.3%
54.5%
16.2%
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Directors & Senior Management Institutions Other

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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

• 17 Graystone Street Tingalpa QLD 4173

• +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

• +61 3 8623 9800

17 Graystone Street Tingalpa QLD 6173

• +61 7 3239 5800

Suite 2, 100 Havelock Street West Perth WA 6005

• +61 8 9482 0650

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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 HY16 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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