Envirosuite : 2021 AGM Chair Address & Company Presentation

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ASX RELEASE

25 November 2021

2021 Annual General Meeting

Chairman's Address and

Company Presentation

Leading environmental technology company Envirosuite Limited ('Envirosuite' or 'the Company'), is pleased to release the Chairman's Address and CEO & Company Update, ahead of these being delivered at the 2021 Annual General Meeting today.

The results of the meeting will be released to the ASX shortly after the conclusion of the meeting.

For further information, please contact:

[e-mail] or visit www.envirosuite.com.

Authorised by:

Rachel Ormiston

General Counsel and Company Secretary

CHAIRMAN'S ADDRESS

Envirosuite Fellow Shareholders, I am very pleased to welcome you to Envirosuite's 2021 Annual General Meeting.

As Covid-19 starts to recede from the daily mainstream headlines, we are already seeing that Environmental concerns, mainly driven by the universal levelling issue of climate change, are dominating the global mainstream conscious with renewed vigour for the foreseeable future.

Discussions of ESG are occurring at all levels, from the boardroom to investors to employees, and governments, regulators and companies are all being encouraged to take these matters into consideration. We believe environmental intelligence is key to improving the well-being of people and the planet. Environmental intelligence involves utilising technology to actively monitor, manage and measure the impacts of human endeavour on the immediate environment. This is the essence of what we do in identifying and going straight to the source, understanding in real time and even predicting

1	Envirosuite Limited	(ASX: EVS) ACN: 122 919 948
	Suite 1, Level 10, 157 Walker St	www.envirosuite.com
	North Sydney NSW 2060	Phone: [phone]

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what will happen next, so that we can help our clients to do the best they can by their surrounding communities and their own operations.

Globally, the growing importance of ESG, the advancement of the UN's Sustainable Development Goals, and President Biden's US$1 trillion infrastructure bill all create strong tailwinds, to an unprecedented degree. There are few ASX-listed companies better leveraged to this macro backdrop than Envirosuite, and fewer still which can offer solutions to help customers meet their ESG requirements and secure their social licence to operate. This bodes well for Envirosuite in FY22 and beyond.

The US "Infrastructure Investment and Jobs Act", signed into law just last week, has been hailed as a 'once in a generation1' investment. The legislation's fiscal stimulus is staggering with US$97bn (A$132bn) of new funding earmarked for Envirosuite's key sectors: US$55bn for clean water infrastructure - the largest investment in clean drinking water and waste-water infrastructure in American history; US$25bn going to Airports; and US$17bn towards Ports and Waterways. Whilst our target markets are global this watershed moment in the US is representative of opportunities in the years ahead for the Company.

Envirosuite delivered a solid financial result in FY21 with annual recurring revenue (ARR) of $46.5m. As with most businesses, COVID-19 impacted revenue in the first half of FY21, however, in the second half, Envirosuite delivered its strongest ever Half Year with $4.4m in new ARR orders. There was a clear increase in momentum in our end markets and the Company delivered two consecutive record breaking quarters. Total Revenue doubled in FY21 to $48.6m. Momentum has continued into this year with a 42% increase in new ARR in the most recent Quarter on the prior corresponding period.

Growing revenue is but one element of our story. A key strategic goal is to improve the scalability of Envirosuite to positively influence margins. We have been successful in increasing Gross Margins materially over the year from 31.0% to 42.4%. Our CEO Jason Cooper will elaborate on this however, we see scope for this improvement to continue as cost efficiencies and a growing contribution from EVS Water will reshape the overall business.

Our core EVS Airports business experienced stable recurring revenues across FY21, reflecting the multi-year, contractual nature of that business. COVID-19 induced lower discretionary expenditure for one-off projects by airport customers with a temporary decline in our profitable non-recurring revenues. We are, however, positive regarding the outlook. The trend of gradual reopenings globally brings renewed optimism that air travel could see an uptick in 2022 and we are already seeing a pick-up in project work.

1 https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/28/fact-sheet-historic-bipartisan-infrastructure-deal/

2	Envirosuite Limited	(ASX: EVS) ACN: 122 919 948
	Suite 1, Level 10, 157 Walker St	www.envirosuite.com
	North Sydney NSW 2060	Phone: [phone]

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Our EVS Water business, which we commercialised during the year was a modest financial contributor in FY21. We expect this to change markedly as we look ahead. At an estimated $2.8bn SAM2, EVS Water serves a materially larger addressable market than our core Aviation and Omnis platforms. Every major town in the world, for example, is a potential customer for EVS Water. We are focusing on internally resourcing EVS Water to attack this commercial opportunity and market acceptance has been very encouraging. It is also characterised by short sales cycles and a higher margin SaaS style commercial model.

As shareholders know, the Company's leadership evolved in FY21 with Jason Cooper moving from COO to CEO effective March 1. Jason's experience is well suited to Envirosuite's current positioning with 20 years' experience in the technology sector as well as at senior executive level in both multi-national and start-up SaaS environments. You will be hearing from him shortly.

Peter White retired, having prepared the Company for its next growth phase. In aggregate Peter dedicated more than eight years to leading EVS as CEO, overseeing the growth of the company from a small consulting firm to become a global leader in environmental intelligence solutions with 260 employees

in 12 countries. On behalf of the Board I would like to thank Peter for his leadership through some trying times and some good times, he has always put the Company first and created many successful outcomes during his tenure. Peter will retire from the Board as of todays meeting, thanks Peter for your outstanding contribution. The Board is currently undertaking an extensive global search for two new Non-Executive Directors as part of our Board refresh program, we are hopeful of announcing one new NED early in 2022

In closing, we look forward to the coming quarters with great optimism, and with good reason. Envirosuite is well prepared for a new phase of growth. I would like to thank my fellow board members; we ask for active participation and that's what we get. To our team, the Environauts, as they are known around the world, thank you very much for your relentless pursuit of building a better Envirosuite for all stakeholders and to you, our shareholders, for your support this year. As I noted in the Annual Report, we are in the sweet spot of the most critical and mainstream themes in industry, government, community and capital markets: Climate Change, ESG and digital transformation. The value and importance of environmental intelligence for the world is only accelerating and the time for Envirosuite is now.

• The serviceable addressable market is the portion of the Total Addressable Market (TAM) that can be meaningfully reached by Envirosuite's software and solutions. It is calculated by taking the applicable global Sites (mines, wastewater treatment plants etc.) where Envirosuite's software and solutions could meaningfully apply and multiplied by the current market Annual
  Recurring Revenue (ARR) price for that software/solution.

3	Envirosuite Limited	(ASX: EVS) ACN: 122 919 948
	Suite 1, Level 10, 157 Walker St	www.envirosuite.com
	North Sydney NSW 2060	Phone: [phone]

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Our time is now

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Disclaimer

The material in this presentation is general background information and is current at the date of the presentation. The information is given in summary form and does not purport to be complete. Investors should review this presentation in conjunction with the Annual Report of Envirosuite Ltd and its subsidiaries (the Group) for the 12 months ended 30 June 2021.

Information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider the appropriateness of the information having regard to these matters, any relevant offer document and seek independent financial advice before making any investment decision. No representation is made as to the accuracy, completeness or reliability of the presentation.

Certain statements in this presentation constitute forward looking statements. Such forward looking statements involve both known and unknown risks, assumptions, uncertainties and other factors, many of which are beyond the control of the Company and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. There are a number of other important factors that could cause actual results to differ materially from those projected in such statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the Australian and global economic

climate and market conditions. Further information is contained in the Group's Annual Financial Report for the 2021 financial year, which is available at www.envirosuite.com. Actual results may vary, with materially positive or negative impacts. Investors are cautioned not to place undue reliance on these forward-looking statements. Past performance is not indicative of future performance and no guarantee of future returns is implied or given.

While all reasonable care has been taken in relation to the preparation of this presentation, none of the Group, or their directors, officers, employees or advisors accepts responsibility for any loss or damage resulting from the use of or reliance on this presentation by any person.

This presentation is not a prospectus, disclosure document or investment statement, nor an offer of shares for subscription, or sale, or the solicitation of an offer to buy, in any jurisdiction, including the United States.

Any opinions expressed reflect the Group's position at the date of this presentation and are subject to change.

All amounts are in Australian dollars unless otherwise stated.