VERBREC LIMITED — Earnings Release 2013

Aug 20, 2013

ASX Announcement 21 August 2013

LogiCamms delivers strong operating results from a resilient business

• EBITDA^ of $14.1 million , up 25% from $11.3 million

• Operating cash flow of $14.6 million, up 49% from $9.8 million

• Statutory NPAT of $11.1 million , up 4% from $10.7 million

• Revenue of $129.5 million , up 5% from $123.1 million

• Full year dividend of 9.0 cents per share , and final dividend of 4.5 cents per share

• Delivering on strategy, contributing to workforce growth to 640 people:

• acquisition in May 2013 of oil and gas engineering specialist, Independent Technology Holdings (ITL)

• focus on unlocking value and increasing asset performance, particularly on existing assets for resource and energy markets

• further extension of services within hydrocarbon markets

• geographic expansion

• Sustained earnings growth anticipated. Robust opportunity pipeline of approximately $490 million, up from $320 million

Professional engineering and consulting services company, LogiCamms Limited , has announced a full year net profit after tax (NPAT) of $11.1 million (1H FY13: $5.6 million), up from last financial year’s NPAT result of $10.7 million.

The Company posted revenue of $129.5 million, up 5% on the previous corresponding period (pcp). Earnings before interest tax depreciation and amortisation (EBITDA) was up by 25% on the previous 12 months at $14.1 million, representing 10.9% margin on revenue.

Managing Director Steve Banning said, “We have delivered a strong operating performance in the 2013 financial year, which demonstrates the resilience of the business and the successful ongoing delivery of our strategy in a challenging operating environment.

“The business delivered growth at both the top and bottom line against the prior corresponding period, with a strong operating result, demonstrated by a 25% increase in EBITDA. This growth is largely attributable to our emphasis on operational excellence, focus on brownfield assets and our range of services geared to enhance and optimise the performance of our customers’ operations” he said.

Operating cash flow for the full year period remained strong with positive cash flow from operating activities of $14.6 million. LogiCamms’ balance sheet remains strong with no outstanding borrowings and a net cash position of $13.1 million as at 30 June 2013.

LogiCamms’ robust capital management strategy enabled the acquisition of oil and gas engineering specialist ITL without the need for any new financing facilities. The Company’s strong capital position also allowed for controlled reinvestment into the development of our people, innovation and enhanced and consolidated business systems.

The NPAT result again included a significant income tax credit associated with research and development tax incentives. The income tax credit of $1.8 million was below the $3.0 million credit in 2012 financial year, which recognised two years of research and development incentives. The research and development incentives recognise innovation across the business and the unique nature of services LogiCamms provides as part of delivering solutions to customers.

Engineering Consultancy | Project Delivery | Asset Performance

LogiCamms Limited ASX:LCM ACN 127 897 689 www.logicamms.com.au

Share Registry Computershare Investor Services Tel. +61 3 9415 4000 www.investorcentre.com

The Board today declared a final fully franked dividend of 4.5 cents per share bringing the full year dividend to 9.0 cents (fully franked), up 6% from 8.5 cents in the pcp. This reflects a payout ratio of 56%, in line with the Company’s previously stated policy of 40-60 per cent of NPAT. The record date is 6 September with a payment date of 25 September.

Mr Banning commented, “LogiCamms continues to build a strong and resilient business that is well positioned for continued earnings growth. Our focus on operational excellence positions us well to deliver value to our customers in times of dynamic industry conditions and economic volatility. LogiCamms continues to focus on long term relationships with our customers, helping identify and respond to drivers of change, and delivering enhanced services and solutions that unlock value for our customers’ assets.”

Operating Highlights

LogiCamms achieved a number of operational milestones in the 2013 financial year.

Customer Relationships

LogiCamms’ core offering is to work with customers to optimise and enhance the value of their assets. Our offering facilitates this through identifying and delivering solutions that drive down costs, apply innovation and improve performance. Reflecting this, the majority of 2012-13 revenue was derived from services delivered for brownfield assets and this is expected to continue.

LogiCamms built upon existing service contracts with key customers including Santos, Origin Energy, ConocoPhillips, Chevron, Oil Search, Vector (NZ), TAG Oil (NZ), BMA and Rio Tinto Iron Ore, and entered into new agreements with QGC, BHP Billiton and Ballance (NZ). The Company is also building on the success of major control systems projects for APA Group’s Mondarra gas storage facility and the Wiggins Island Coal Export Terminal.

Our work in international markets continued, driven by existing customer relationships and the demand for high value consultancy services. International work included early phase studies for new mine developments, plant optimisations and competency assurance and competency training projects.

People and Organisation

We expanded our workforce to approximately 640 people from 490 at the end of financial year 2012 largely as a result of welcoming additional people through the ITL acquisition. The increased strength of our workforce also reflects ongoing strategies to attract, develop and transfer skills across our business to meet changing customer needs. As a professional services business, the successful implementation and ongoing development of our People and Culture strategy is an important part of our competitive advantage.

LogiCamms continues to invest in the development of our people and systems, and an organisational design that supports high performance. Key enhancements include:

• Introduction of a Director of Operational Excellence in Flora Furness, previously People and Culture Director. The new role demonstrates a commitment to driving efficiency in the way we operate and ensuring effectiveness in delivering quality results.

• Promotion of Geoff Jenkins to the executive team as Director of Projects to oversee the continued development of business and expertise in three key industries, being hydrocarbons, minerals and metals and infrastructure.

LogiCamms remains committed to ‘Zero Harm’ and achieved an excellent health and safety performance in 2013, with a Total Recordable Injury Frequency Rate of zero, down from 2.2 per million hours worked in the previous year.

Engineering Consultancy | Project Delivery | Asset Performance

LogiCamms Limited ASX:LCM ACN 127 897 689 www.logicamms.com.au

Share Registry Computershare Investor Services Tel. +61 3 9415 4000 www.investorcentre.com

ITL Acquisition

Following the acquisition of ITL in May this year, we have made considerable progress with the transition process, including optimising collaboration and synergies across the combined LogiCamms and ITL businesses. Successful outcomes have included new work orders in New Zealand to be delivered using in part LogiCamms’ existing asset performance services, sharing of technical knowledge and skills and a strengthened offering with existing and future Australian hydrocarbons customers.

Our work in the hydrocarbons sector increased to 30 per cent of Company revenue in 2013 and is expected to exceed 40 per cent in the year ahead. Industry diversification and responding to changes in market needs is an important element of our company strategy. LogiCamms’ ability to rapidly develop a presence and expertise in supporting hydrocarbons markets has been encouraging following an acceleration of our strategic pursuits in this sector in 2010.

Opportunity Pipeline

LogiCamms’ opportunity pipeline stands at approximately $490 million, up from $320 million last year. The significant increase primarily relates to new prospects and the anticipated extension of existing long term support agreements with existing customers in the hydrocarbons sector. There has also been an increase in brownfield opportunities identified with minerals and metals customers. We continue to apply a rigorous assessment of our pipeline and maintain a focus on efficient tendering processes.

Strategy and Outlook

Mr Banning said, “I am confident that LogiCamms’ strong financial capacity, targeting of specific market opportunities with a high value service offering, as well as our own focus on operational excellence, puts us in a position of readiness to respond to market demand. Together with the earnings contribution from the acquisition of ITL, sustained year on year earnings growth is anticipated.

“LogiCamms’ focus on unlocking value and increasing asset performance, particularly on brownfield operations, presents a genuine opportunity for both our customers and LogiCamms to optimise performance in the coming year. This is despite the outlook for some of our minerals and metals customers, particularly in the coal sector, challenged with ongoing pressure to cut costs and improve productivity in their existing operations.

“We remain confident in the outlook for our services into the hydrocarbons sector. We see the potential for accelerated penetration of our expanded hydrocarbons expertise, strong core capabilities and asset performance services, as well as key specialist consulting services.

“In many ways LogiCamms is breaking through the competitive landscape. In helping our customers to drive asset performance in an environment where margins are under significant pressure, we have been able to build deeper, longer term relationships and will continue to build on that market position,” he concluded.

• Ends -

Further information Mr Matthew Adamo Chief Financial Officer LogiCamms Tel. +61 7 3058 7205

Media enquiries Shareholder enquiries Mr Alasdair Jeffrey Mr Paul Bowker Rowland Company Secretary Tel. +61 7 3229 4499 LogiCamms Tel. +61 7 3058 7205

^Earnings Before Interest Tax Depreciation and Amortisation. The reference to EBITDA is unaudited and unreviewed and is intended to provide a measure of financial performance before the impact of non-cash expense items such as equity settled transaction and depreciation and amortisation, as well as interest income and expenses. EBITDA references in this presentation include profit from non controlling interests.

About LogiCamms

LogiCamms - engineering breakthroughs in asset performance. Working with leading owners and operators of hydrocarbons, minerals and metals and infrastructure assets, the Company works to reduce costs, increase efficiencies, and enhance the value of customers’ assets and operations. LogiCamms’ core business units include engineering consulting, project delivery and asset performance services. The Company has offices across Australia and New Zealand and is headquartered in Brisbane, Queensland. In 2013 LogiCamms acquired ITL Engineering, an established New Plymouth based business providing a range of design and build solutions primarily to the hydrocarbons industry. LogiCamms’ Vision is to be a market leader delivering outstanding customer solutions.