EVZ : Quarterly Activities/Appendix 4C Cash Flow Report-Amendment

For personal use only

26 July 2022

Australian Securities Exchange (ASX)

Level 4, North Tower, Rialto

525 Collins Street

MELBOURNE VIC 3000

EVZ LIMITED - AMENDMENT TO APPENDIX 4C FOR THE QUARTER ENDING 30 JUNE 2022

EVZ Limited (ASX: EVZ) (the Company) advises that in accordance with ASX Listing rule 4.7.C.3 that the Appendix 4C for the quarter ended 30 June 2022, released to the ASX on 22 July 2022, contained an omission at section 6 (Payments to related parties of the entity and their associates).

Under item 6.1 (Aggregate amount of payments to related parties and their associates included in item 1) the company should have reported payments to related parties for the quarter of $45k. These related party payments consisted of consulting fees paid for director related services. All payments were on normal commercial terms.

Issued by order of the board.

Pieter van der Wal

Chief Financial Officer and Company Secretary

About EVZ Limited

EVZ Limited is an industrial group with a portfolio of specialist businesses in the engineering services sector. EVZ operates in the areas of fuel industry mechanical services including bulk tank design and construction, syfonic storm water and roof drainage and distributed power generation plant maintenance through subsidiaries, Brockman Engineering, Syfon Systems and TSF Power.

EVZ Limited ABN 87 010 550 357

115 | 838 Collins Street, Melbourne VIC 3008 Australia P + 61 3 9545 5288 F + 61 3 9542 6061 www.evz.com.au

EVZ LIMITED

For personal use only

Quarterly Activity Report

& Appendix 4C

4QFY2022

30 June 2022

Quarterly Update

For personal use only

Strong positive cashflow underpinned by record high contract backlog and imminent commencement of new large contacts.

Key Highlights

• Strong positive cashflow of $6.3M: EVZ delivered a strong positive cashflow of $6.3M during the quarter which includes a $3.7M capital raising in April 2022 to support revenue growth in FY2023 and beyond as new contracts in the liquid fuels, renewable gas energy and built infrastructure sectors commence.
• Secured new contract wins: EVZ secured new contracts in the liquid fuels, water and built infrastructure to maintain the backlog above $100M. This strong pipeline of new construction and capital projects is expected to commence in Q1FY2023 and underpin revenue growth for at least 24 months as further new projects are secured and proceed as forecast.
• Tender activity remains strong: Tender activity and demand for EVZ services is at an all time high across the Brockman, Syfon and TSF Power businesses.
• Strengthened balance sheet and positioned for growth: Positive operating cashflow in addition to the $3.7M capital raise has strengthening EVZ's balance sheet and provided working capital to support EVZ's strong pipeline of work.
• Inflation cost control: EVZ manages material cost price rises effectively by maintaining trade and material supply price coverage for all contract wins.

GENERAL BUSINESS

In Q4 FY2022, EVZ delivered a consistent operating performance with additional new contract wins to position the group for growth in FY2023 and beyond. The business maintained its strong backlog position with additional contract wins whilst also responding to a high level of tendering activity and relationship based contract appointments.

We remain confident in the strength of the economic recovery post the COVID pandemic and in the outlook for the liquid fuels, renewable gas energy, and built infrastructure sectors, which we expect to drive revenue growth during FY2023 and FY2024.

During the quarter, payments to related parties and their associates totalled $45k. These related party payments consisted of consulting fees paid for director related services. All payments were on normal commercial terms.

Page 1 - Quarterly Update - 30 June 2022

Quarterly Update

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BROCKMAN ENGINEERING

Brockman will imminently commence site works on the $40M contract for Viva Energy for three new 30ML diesel tanks at the Geelong refinery. Brockman will also shortly commence work on three more new tank build contracts for a combined value of $21M. During the quarter Brockman also secured a new water storage tank project for Sydney Water for circa $5M that will commence on site in Q2FY2023.

Tendering activity during the quarter was high as the second group of federal governments "Boosting Australia's Diesel Storage Program" (BADSP) grant supported construction contracts were tendered to industry. It is expected that further BADSP contracts will be tendered and awarded in the tank construction industry during 1HFY2023.

Brockman is well positioned to secure a share of these contracts and remains available for further contract wins from our current client base in the liquid fuels, gas and water sectors. Our current diversified project and revenue portfolio provides a balanced risk profile for stability in revenue and earnings growth as the group moves into the next phase of its growth strategy.

SYFON SYSTEMS

Syfon Systems delivered another strong performance in Q4 FY2022. The outlook remains positive for FY2023 with historically high contracted backlog and tendering activity also at historic highs.

Syfon Asia has returned to full operating capacity due to increased demand for our services for new large infrastructure and building developments in Kuala Lumpur, Penang and Vietnam.

Tun Razak Exchange, Kuala Lumpur - Syfon Systems project underway

Page 2 - Quarterly Update - 30 June 2022

Quarterly Update

The outlook in Asia is positive for FY2023 and FY2024 and we expect activity levels to increase further as the social infrastructure build phase returns to full capacity in the region.

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Queens Wharf, Brisbane - Syfon Systems project

TSF POWER

TSF Power service and parts sales continued to grow in Q4 FY2022 as the demand for renewable gas energy rises in line with market demands for more renewable energy supply options to manage the transition to net zero.

Customer demand for our technical support and our value for money offering has risen across our four operating segments: gas engine service and maintenance, gas engine spare parts sales, standby power plant service and maintenance and gas engine sales and installation.

During the quarter, the TSF Power team successfully delivered a renewable gas power generation system installation at a wastewater treatment facility in Victoria to augment the customer's existing power generation capacity.

BALANCE SHEET AND CASH FLOW

EVZ delivered a gross positive operating cashflow of $3.8M in addition to completing a $3.7M equity raising to provide working capital to support revenue growth in FY2023.

Term debt was reduced to $0.3M during the quarter which will be reduced to zero on 30 September 2022.

Improved industry outlook across the Australian and Asian markets in FY2023 and FY2024 will provide further opportunities for organic growth through new large contract wins.

We are also assessing and pursuing a number of strategic acquisitions in our sectors to expand the scale and geographic reach of our operations.

Page 3 - Quarterly Update - 30 June 2022