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VERIS LIMITED AGM Information 2023

Oct 17, 2023

66021_rns_2023-10-17_0cb1e1af-0419-40ca-88d1-531d22464721.pdf

AGM Information

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Annual General Meeting

Presented by:

Karl Paganin, Chairman Michael Shirley, Managing Director & CEO Steve Harding, CFO

18 October 2023

1

We acknowledge Aboriginal and Torres Strait Islander peoples as the traditional owners and custodians of this land and the places on which we live and work.

We respect and honour Aboriginal and Torres Strait Islander Elders past, and present. We acknowledge the stories, traditions and living cultures of Aboriginal and Torres Strait Islander peoples on this land and commit to building a brighter . future together

Through our alliance with Wumara Group we are working together to help close the gap between Indigenous and non-Indigenous Australians.

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2

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Veris – a trusted, leading provider of spatial data services

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Company Profile

Our Services

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15 500+ Offices People across Australia

DIGITAL & SPATIAL

ENGINEERING SURVEY

3D scanning, data capture, hosting storage, management, modelling, visualisation and analysis.

Civil construction and engineering survey solutions for major infrastructure.

Industries

Infrastructure Mining Defence

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PROPERTY SURVEY PLANNING & URBAN DESIGN

Land surveying, cadastral and consulting solutions.

Due diligence, strategic planning, master planning, place-making and planning approvals.

Property Utilities

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Government

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49% interest in Indigenous owned Wumara Group

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3

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FY23 Highlights

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Continuing to do what we said we’d do

Profit before Tax $1.1m

Up from $0.1m in FY22

Revenue

$100.9m

Up from $92.4m in FY22

CAGR Revenue 10.5% p.a.

Since FY20

Reinstating Final Dividend

0.15 cps Delivered out of operational performance

Higher margin returns

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From Digital & Spatial, Planning & Urban Design Business Lines

Investment in leading-edge tech and capability

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Essential for strategic growth

Strengthened skill sets

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In areas including AI and Data Analytics

Driving operational efficiencies To deliver ongoing margin growth at national scale

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4

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Unlocking growth in key accounts

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Building trust and resilience

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Defence
Property
Infrastructure
A leading
Mining and Resources
client base
Government
Energy and Utilities
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5

Financials

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6

FY23 Results Summary

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Highlights

  • Strong revenue growth yoy,

  • ✓ 9.2% revenue growth in FY23

  • ✓ Revenue CAGR of 10.5% since FY20

  • Margin improvement focus delivering tangible results

  • ✓ Gross margin % improved

  • ✓ Underlying EBITDA margin % improved

  • ✓ EBIT margin % improved

  • ✓ PBT margin % improved

  • Underlying profitable result for Veris’ core spatial data offering.

Veris Continuing Operations FY20
FY21
FY22
FY23
Growth
rate %*
Revenue
Gross margin %
EBITDA reported
EBITDA Reported margin %
D&A
Restructuring
EBIT
Finance Costs
Share Based Payments
Equity accounted profit of investee
PBT
Underlying EBITDA Reconciliation
EBITDA Reported
Less: Govt Grants
EBITDA Underlying
Underlying EBITDA Margin %
74.8
77.5
92.4
100.9
9%
24.1%
29.0%
30.4%
31.4%
0.8
7.4
10.0
10.2
2%
1.1%
9.6%
10.8%
10.1%
(13.5)
(7.8)
(8.4)
(8.0)
(5%)
(1.3)
(0.2)
(0.2)
-
(14.1)
(0.6)
1.4
2.2
61%
(2.0)
(1.7)
(1.2)
(0.8)
(34%)
-
-
-
(0.2)
-
-
-
0.1
(16.0)
(2.3)
0.1
1.1
920%
0.8
7.4
10.0
10.2
2%
-
(4.4)
(1.0)
-
0.8
3.0
9.0
10.2
13.3%
1.1%
3.8%
9.7%
10.1%

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FY23 Financials

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Gross Margin Improvement EBITDA & EBIT Increasing
120.0 33.0% 11.0 Profit Before Tax
31.0%
100.0 9.0
29.0%
80.0 7.0 0.1 1.1
27.0%
5.0
60.0 25.0% FY20 FY21 FY22 FY23
40.0 23.0% 3.0 (2.3)
21.0%
1.0
20.0
19.0%
(1.0) FY21 FY22 FY23
- 17.0% (16)
FY20 FY21 FY22 FY23 (3.0)
Revenue Gross Margin % EBITDA Underlying EBIT PBT
$m
Revenue ($m)
Gross margin %
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  • First full year without COVID-related interruptions & lockdowns impacting operations and results

  • Strong focus on margin improvement delivering enhanced results via:

  • project management disciplines and

  • targeting key clients and larger project work

▪ $17m+ turnaround at the bottom line in 3 years - the historical financial deficit was significant, our strategy has been focused on returning the business to sustainable, profitable growth.

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Balance sheet

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STRONG BALANCE SHEET TO UNDERPIN CONTINUED STRATEGY EXECUTION

Balance Sheet Jun 23
Jun 22
Cash 17.3
18.2
Debtors & WIP 19.7
22.0
P,P&E 9.8
7.2
AASB16 Leases – ROUA 16.4
19.9
Deferred Tax Assets 3.7
3.7
Intangible assets 0.3
-
Other 2.3
2.0
Total Assets 69.5
73.0
Trade Creditors 7.2
9.5
Employee Benefits (C + NC) 8.7
9.8
HP Lease Liabilities (Current) 0.7
1.5
HP Lease Liabilities (Non-Current) 0.8
2.5
Borrowings 5.0
1.0
AASB16 Leases – ROU (Current) 4.9
5.1
AASB16 Leases – ROU (Non-Current) 12.7
14.0
Other Liabilities 0.8
0.9
Total Liabilities 40.7
44.4
Net Assets 28.8
28.6

Overview

  • Cash at bank and term deposits of $17.3m

  • Strong focus on working capital management

  • Capitalised R&D spend associated with internally developed Digital & Spatial services

  • Lower cost corporate debt accessed to support ongoing investment in equipment technology

▪ Cash flow from operations utilised to extinguish higher cost traditional HP equipment finance

▪ Strong net cash balance provides underlying strength through periods of uncertainty.

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9

Executing our strategy

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10

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Delivered on strategic priorities

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What we said we’d do

Return the Increase Maintain a Pivot to a Crystallise business to margins strong capital spatial data shareholder profitability position business returns

FY23 Delivered outcomes profitable result for Veris’ core digital and spatial services offering.

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YOY margin growth in EBITDA, EBIT and PBT.

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Strong capital Invested & Declared final base of commercialised dividend 0.15c $17.3m cash a suite of Data per share and and term and Digital Continuation of deposits at 30 solutions. on-market

June 2023. share buyback.

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We have achieved this whilst continuing to invest in key areas of our strategy to set the business up for sustainable, profitable growth.

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Executing on our strategy

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Returning the business to sustainable, profitable growth

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Spatial Data strategy progress

Operational Investing in our Unlocking growth Excellence People in key accounts

Strong Pipeline & outlook

Continued investment in leading-edge technology. Acquisition of skillsets aligned to spatial data strategy.

Successful expansion of value proposition to clients via integration of data and digital solutions.

Development of data hosting, analytics and AI capabilities.

Renewed focus on driving innovation and operational efficiencies.

Accelerated our pivot from lower margin work in the second half of FY23. Appointment of Julie Stanley as COO.

Investment in enhanced project management.

Re-negotiation of key supply arrangements.

Young Professionals Concentrated effort to Program third annual build trust and mutual intake. benefit with key clients. Implemented a Diversity & Increased share of Inclusion policy and revenue from key clients framework. – 45% in FY23. Strong representation of Delivering improved women in leadership team. margins for higher value services. Refreshed set of values. Growing Indigenous Participation through Wumara Group alliance.

Continued strong pipeline and outlook.

Demonstrated track record in converting backlog and pipeline to revenue. Service offering spans a diverse spread of markets.

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Our people are at the heart of our business

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Women in our workforce - progress

Women in senior leadership roles

Representation of women in workforce

Representation of women in Young Professionals Program

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10+

20.2% Up from 2022

38%

2023 Intake

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People initiatives;

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  • Attracting and retaining the best

  • Work arrangements that support diversity and inclusion, build trust and promote flexibility

  • Strengthened employee development programs, focusing on performance management and succession planning

  • Reviewed and refresh of our values

  • Continued focus on the Young Professionals Program (YPP)

  • Review of ESG initiatives commenced with focus on reporting in line with the relevant voluntary frameworks.

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Continuously driving a safety culture

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The Working Safely – Michael Formosa Award seeks to drive continuous improvement and tireless focus on all our efforts to stay safe and to keep each other safe.

‘One Safe Step at a Time’ was something Michael Formosa would say, and the initiative to adopt this message more widely was developed and is currently being rolled out across the business nationally.

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Izac Anderson, Senior Surveyor - Engineering Survey in our Victorian team, was named the inaugural winner of the Michael Formosa Safety Award 2023!

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Industry Awards

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Paradise Gorge Digital Twin Project Technical Excellence Award Asia-Pacific Spatial Excellence Awards TAS

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M6 Stage 1 Technical Excellence Award Geospatial Excellence Awards NSW

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3D Monitoring of the Robe Coastline project Community Impact Award Asia-Pacific Spatial Excellence Awards SA

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Young Professionals Program Workforce Development and Inclusion Award Asia-Pacific Spatial Excellence Awards Victoria

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Cardinia Shire Council Project Excellence in Innovation Award IPWEA Engineering Excellence Awards VIC

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Indigenous Surveyor Employment Pathway Program Workforce Development and Inclusion Award Asia-Pacific Spatial Excellence Awards NSW & National

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Cardinia Shire Council Project Community Impact Award Geospatial Excellence Awards VIC

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Nathan Quadros, Digital & Spatial Business Lead Bruce Thompson Innovation Award Asia-Pacific Spatial Excellence Awards National

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Hobart Rivulet Digital Twin Geospatial Enablement Geospatial Excellence Awards TAS

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National Firm Category

Surveying Consultancy Excellence Awards Consulting Surveyors National

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North-West Coast Underwater Bridge Inspections Technical Excellence Award Geospatial Excellence Awards TAS

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Indigenous Participation

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There are numerous success stories emerging from our Alliance with Wumara Group, which aligns to our Reconciliation Action Plan, including:

The Indigenous Surveyor Employment Pathway Program - an award-winning program providing opportunities for Indigenous Australians to build a career in the surveying industry.

Working together on major projects resulting in the growth and capacity building of the Wumara business.

Enhanced cultural awareness and learning to foster greater recognition and understanding of First Nations Peoples culture and history.

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Video Link: https://www.youtube.com/watch?v=gxh7-PbGVUI

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Digital strategy in action

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Our difference is we collect, hold and understand the data.

  • Our clients need to visualise changes to assets regularly as part of operations and decision making.

  • Our offering meets this need, by providing:

  • _ 3D data capture of assets

  • _ Real-time monitoring

  • _ A cloud-based platform.

  • The data can also be re-used by additional clients for multiple purposes, expanding the addressable market for the data.

  • Our digital platforms are easy to adopt for clients to access the data.

  • With each additional client, long term repeatable project annuity revenues are building.

  • There is long term value in hosting data and AI based analytics that can be re-used beyond a single client.

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$
$
Growth
$
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Digital solutions

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Our strategic move to integrate data and digital solutions across our service offerings positions Veris at the forefront of spatial innovation

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RoadSidE
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Revolutionising road maintenance

  • Rapid, safe 3D data capture of road condition over large distances.

  • Data hosting, visualisation and analysis using our bespoke cloud-based RoadSiDe platform.

  • Powered by AI and spatial analytics.

  • Enables virtual inspections, quantitative and predictive analysis for smarter asset management.

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Data hosting, visualisation & analysis
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  • Rapid, safe 3D data capture of physical assets such as buildings, vegetation, and infrastructure.

  • Data hosting, visualisation and analysis using our cloud-based 3SiDe platform.

  • Ideal place to create and manage 3D digital twins of physical assets such as buildings, vegetation, and infrastructure.

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Manage data for Greenfields Property

  • Provides a cloud-based, central data management platform for Greenfields developments.

  • Information is continually updated and is readily accessible as a Development progresses.

  • Unlocks the power of GIS analysis to empower stakeholders to visualise and interact with data.

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Digital solutions for Road Corridor Inspections

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Video Link: https://www.youtube.com/watch?v=kx_7r9xxx1s

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Outlook & Pipeline

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Market outlook

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Property

Underlying market fundamentals remain sound in the medium to longer term.

Defence

Ongoing investment by the Australian Government over the coming decade in new and upgraded Defence capabilities.

Infrastructure

Mining and Resources

Continued demand for commodities as well as ongoing expenditure on operations and sustaining capital.

Outlook

Major transport infrastructure spending commitments continue albeit with a Government review to maximise value and productivity.

Energy and Utilities

Ongoing investment in asset management

of utilities and shift to renewables

Government

Multi-sector spend including planning, transport infrastructure and smart cities / Digital Twin initiatives.

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Pipeline

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Despite some economic uncertainty, Veris has a

growing pipeline and outlook underpinned by national footprint and positioning across a diverse spread of markets.

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Secured forward workload is in excess of $60m to be executed over the next 12 months.

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Healthy, unsecured project pipeline has a weighted value in excess of $200m.

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In addition to forward workload, we anticipate ongoing project variation and direct assignment works.

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Strong track record in demonstrating the conversion of our backlog and pipeline to revenue and margin in subsequent periods, providing confidence in our outlook.

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Pipeline
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190 200

140 190

190

44 50 55 55 60

Unsecured project pipeline Secured forward workload

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22

Q1 Update

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Consistent performance and growth

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We are delivering smarter solutions for our key clients with higher margins.

H2

H1

Professional Services To be sustainable, we Strengthen the core need a professional To provide a platform services approach, that for profitable growth is different

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We have started adding additional margins under a professional services approach

We have strengthened the business and continued to grow a sustainable profit

H3 Digital & Spatial Deliver value through data, providing end-to-end solutions for our clients – from data capture to insights

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We will unlock the value of our data-as-aservice offering

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24

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Q1 FY24 Trading Update

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Q1 FY24 has seen the continuation of our focus on growth and improvement in margins

Veris Australia Q1 PCP Q1 Q1
(Unaudited) $M FY22 FY23 FY24
Revenue 20.8 27.8 24.9
EBITDA 1.4 2.9 2.7
EBITDA Margin % 6.7% 10.3% 10.9%
PBT (0.8) 0.5 0.5
PBT Margin % (4.0%) 1.7% 2.0%

Overview

  • Strong focus on “winning the right work” necessitated by a competitive landscape for skilled labour and broader inflationary pressures seen in our key operational costs.

  • ▪ Further margin improvement remains a key, ongoing focus.

Veris Margin % Growth

2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
Q1 PBT Margins FY21 -FY23
26.0%
27.0%
28.0%
29.0%
30.0%
31.0%
32.0%
33.0%
34.0%
35.0%
Sep-21
Sep-22
YTD Sep 23
EBITDA Margin % (LHS)
Gross Profit Margin % (RHS)

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3.0%
2.0%
1.0%
0.0%
(1.0%)
(2.0%)
(3.0%)
(4.0%)
(5.0%)
Sep-21 Sep-22 YTD Sep 23
PBT Margin %
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Summary

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Summary

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Continued progress delivering on our strategy – doing what we said we would

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A profitable result for Veris’ core spatial data offering.

Margin improvement focus and operational excellence delivering tangible results.

Strong net cash position enabling transformational opportunities including the assessment of M&A opportunities.

Reinstating final dividend paying 0.15c.

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Spatial data strategy is expanding Veris’ value proposition to clients.

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Strong pipeline and outlook underpinned by national footprint and diverse spread of markets.

Q1 FY24 demonstrates continued improvement in margin and strategy execution.

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Appendix

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Capital Structure

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Corporate Snapshot
ASX Code VRS
Share Price (17 October 2023) $0.073
Shares on Issue 512.9m
Market Capitalisation (17 October 2023) $37.4m
Cash at Bank (30 June) $17.3m

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Disclaimer

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This Document should not be considered as an offer or invitation to subscribe for or purchase any securities in Veris Limited (“Veris” or the “Company”) or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Veris should be entered into on the basis of this Document. This Document contains high level information only and does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Veris and its prospects. Any forecasts and forward-looking information contained in this Document are subject to risks and uncertainties and are not a guarantee of future performance. Actual performance will almost certainly differ from those expressed or implied. Veris makes no representation or warranty, express or implied, as to the accuracy, currency or completeness of the information presented herein. Information contained in this Document may be changed, amended or modified at any time by Veris. Veris is under no obligation to update any information or correct any error or omission which may become apparent after this Document has been issued. To the extent permitted by law, Veris and its officers, employees, related bodies corporate and agents (‘Associates’) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Veris and/or its Associates) for any loss or damage suffered by recipients of this Document or other persons arising out of, or in connection with, any use of or reliance on this Document or information contained herein. By accepting this Document, the recipient agrees that it

shall not hold Veris or its Associates liable in any such respect for the provision of this Document or any other information provided in relation to this Document. Recipients of this Document must make their own independent investigations, consideration and evaluation of the information contained herein. Any recipient that proceeds further with its investigations, consideration or evaluation of the information described herein shall make and rely solely upon its own investigations and inquiries and will not in any way rely upon this Document. Recipients of this Document should not act or refrain from acting in reliance on material in this Document.

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