VERIS LIMITED — Interim / Quarterly Report 2016

Feb 14, 2016

ASX/MEDIA RELEASE – OTC

15 February 2016

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RECORD FIRST HALF EARNINGS

Summary for the half year ended 31 December 2015 (1H FY16):

• Revenue up 91% to $62.5m (1H FY15: $32.6m)

• EBITDA before significant items $8.7m (1H FY15: $0.9m), exceeding guidance of +$8.0m

• EBIT $5.5m (1H FY15: -$2.5m), Cash flow from operations $5.6m

• NPAT $14.3m (1H FY15: -$1.7m), including a positive tax adjustment

• EPS 5.4 cents per share (1H FY15: -0.77 cents)

• Cash $10.2m and net debt (including hire purchase) $3.4m

• Consistent performance by Surveying, Town Planning and Urban Design division, demonstrating value of growth and diversification strategy

• Infrastructure division recorded significant improvements in revenue and margins

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OTOC is pleased to announce its financial results for the half year ended 31 December 2015 ( 1H FY16 ). The results are in line with the guidance provided on 1 February 2016.

Revenue was up 91% to $62.5m, with strong growth from Surveying, Town Planning and Urban Design (up 50% to $23.8m) and the Infrastructure division (up 131% to $38.6m).

The Company has achieved record first-half EBITDA and net profit. EBITDA of $8.7m was greater than recent guidance ($8.0m) and a significant improvement on 1H FY15 ($0.9m) and full-year FY15 ($4.3m). This strong earnings result reflects the successful implementation of the National Surveying Strategy and restructure of the Infrastructure division.

Cash flow from operations of $5.6m enabled the Company to maintain a strong balance sheet with cash $10.2m and net debt $3.4m (FY15: net debt $5.9m).

Full details of the 1H FY16 result are contained in the Interim Financial Report that was released today.

OTOC is focussed on delivering further acquisitions as part of its National Surveying, Town Planning and Urban Design strategy. Given the Company’s strong balance sheet and earnings growth, OTOC is well placed to continue its professional services roll-up strategy and is an attractive partner for private businesses operating in this highly fragmented sector.

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Commenting on the 1H FY16 results, OTOC CEO, Simon Thomas, said:

“The Company has delivered record earnings in 1H FY16, with each of our business divisions achieved strong operational and financial results.

Our core Surveying, Town Planning and Urban Design business recorded EBITDA of approximately $4.2m. This was achieved through our premium exposure to the property and civil infrastructure sectors on the East Coast of Australia, which mitigated current weakness in the Perth property market and WA resources sector. We continue to assess acquisition targets that will expand our national footprint and service offering, and are confident of securing further quality businesses.

The Infrastructure division demonstrated an impressive turnaround. Significant infrastructure projects were completed including the DeGrussa Solar Renewable Energy Project, with a lower overhead base as a result of restructuring undertaken in 2015. OTOC Australia is engaged on ongoing works across identified markets, providing confidence for the remainder of FY2016.

The strong earnings result demonstrates the early success of our national surveying growth strategy and business-wide operational review. The Company is ideally positioned to advance its national strategy, with the benefit of strong earnings momentum, balance sheet and dedicated growth plan.

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About OTOC

OTOC Limited offers surveying, planning and infrastructure services throughout Australasia. A leading provider of professional consulting and innovative spatial solutions, OTOC delivers quality service to clients across a range of industry sectors.

OTOC offers surveying services across land development, infrastructure and engineering surveying, aerial mapping, laser scanning, town planning and urban design.

OTOC provides non process infrastructure construction and maintenance services to clients covering government, resources, utilities, remote area and renewable energy.

For further information please contact

Corporate Office OTOC Limited Tel (08) 9317 0628