For personal use only. EVZ Group Half-Year Results for 6 months ending 31 December 2012

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Basil Shepherd
5 years ago
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1 EVZ Group Half-Year Results for 6 months ending 31 December 2012

2 Summary Return to profitability EBIT of $1.6m Continued focus on implementing clean energy strategy utilising TSF s capabilities CEO with clean energy credentials appointed Operations stabilised but further progress still to be made Difficult trading conditions remain Bank covenants met

3 Analysis of Results 31/12/ /12/2011 % Change $ $ Revenue 28,367,063 31,577,050-10% Expenses -26,363,562-31,560,021-16% EBITDA 2,003,501 17, % Depreciation -364, ,500 EBIT 1,639, ,471 Net Finance Costs -641, ,407 Non-Operating Costs -287,526 0 Net Profit/(Loss) Before Tax 709, ,878 Results in line with budget Continuing focus on cost control The EVZ Group was continually challenged during the half-year by delays with contracts being awarded and work commencing despite having a robust pipeline of work across its businesses. These delays have in turn reduced available work resulting in increased competition and margin pressure. This scenario is expected to continue for the remainder of FY13.

4 Segment Performance Segment Revenue and EBITDA for the half-year ended 31 December 2012 Engineering Power Water Corporate Consolidated $000 $000 $000 $000 $000 Revenue 13,644 5,608 9,115-28,367 EBITDA 1, , ,003

5 Performance of Segment Engineering Positive contribution from Brockman, in line with expectations Won Yarra Valley Mt Ridley water tank project - $4m Won Caltex Newport Terminal pipe/pumps/instrumentation upgrade - $4m Shell maintenance contract through to December 2014 The Brockman Group financial result was impacted by ongoing delays in the awarding of project work - this increased the competition for available work and reduced margins

6 Performance of Segment Energy Increased focus on electricity costs and clean energy solutions has provided a significant increase in opportunities for TSF Engineering, particularly in the Cogeneration and Tri-generation space A significant improvement in the performance of the Energy Group is now expected during 2013/14 Melbourne Airport Tri-generation project progressing contract value $18m - construction expected to commence last quarter FY13 Won Baxter Healthcare Co-generation project contract value $3m construction expected to commence last quarter FY13 TSF Engineering half-year result impacted by project initiation delays

7 Performance of Segment Water Syfon Systems continued to perform better than industry indicators and is on budget for the six months Strong forward orders and pipeline of projects replenishing Now established in the Western Australian market and has recently been awarded the Busselton Health contract Business development team very focused. Asian expansion strategy developed, focus in Mega Projects across SE Asia from low cost Malaysia base, new product range being developed to suit designers and developers feedback

8 Performance of Segment Overall Market is tight and project initiation can be lengthy Operations are now stable, more work to do before closure of this chapter Clean Energy Strategy has been commenced, opportunities being sought in DBOOM space Engineering sector continuing with limited growth expectations in short term Cost control and strong project management are key focal points

9 Platform for Growth Clean energy strategy remains the focus enquiry level good Targeting DBOOM Energy opportunities Reducing reliance on traditional construction segment Succession plan underway Focus on business development across all businesses Asian growth strategy for Syfon Systems underway. Complementary acquisitions being targeted Continued focus on health and safety standards across the Group

10 Co-generation

11 Tri-generation

12 Bank Facilities Update & Dividend Policy Bank Facilities The Group continues to meet the covenant conditions of the restructured facility. Dividends The Directors believe it prudent not to declare a dividend. They remain committed, however, to returning the Group to a dividend payment strategy.

13 Disclaimer This presentation has been prepared by EVZ Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular need of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, none of EVZ Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. The distribution of this document is jurisdictions outside Australia may be restricted by law. document outside Australia must seek advice on and observe such restrictions. Any recipient of this

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