Environmental Group Limited · ASX:EGL
Environmental — The Environmental Group — Investor Presentation (March 2007)
31 slides from Environmental's investor presentation, Mar 1, 2007
Slide 1: Investor Presentation, 1 March 2007
illic tae a 4 / Z a : Pires : A. emma er 7 oy y i Le i sy ye. Ht The : © ee) : din a a INVESTOR ~ PRESENTATION 1 March 2007 THICAL ENVIRONMENTAL RETURNS
Slide 2: We are a diversified products and services company
Wea area diversified products and _
Slide 3: ASX Listed Australian Public Company
ASX Listed Australian Public Company (ASX:EGL) ¢ Issued capital — 102 million ordinary fully bale shares ¢ Market Cap - $16 million * Top 20 shareholders hold 40% of sto - Largest shareholder holds 6.0% of st ¢ Alignment with Shareholders — Boar Management hold in excess capital ¢ Significant invest
Slide 4: The Environmental Group Limited
The Environmental Group Limited EGL is the one of very few significant | environmental infrastructure services companies on the ASX. . . Focusing on increasingly higher le\ recurrent income (> 40% in 2007, gr to 70% by 2009). Further growth potential tho expansion. High ethical investment rating.
Slide 5: Outstanding Ethical Rating
OUTSTANDING ETHICAL RATING — Environmental ti — Social - 4 Source: Corporate Monitor December 2006 a - ei
Slide 6: Our Businesses in 2006
OUR BUSINESSES in 2006 EGL ENGINEERED PRODUCTS AND SYSTEMS ENVIRONMENTAL RESOURCE SECTOR SERVICES MINE ASSIST OTHER SERVICE PROVIDERS : SOLUTIONS SERVICES WATER & OPERATIONS and WASTEWATER MAINTENANCE LOW PRESSURE SEWER GAS CLEANING OTHER SERVICES | OTHER PRODUCTS
Slide 7: Infrastructure Services
Infrastructure Services Water * Atleading Australian owned technology provider; * Operational experience; * Practical economic solutions. infrastructure Support * Servicing infrastructure for over 10 years; * Operate water assets currently; ° Established service and maintenance group.
Slide 8: Environmental Services
Environmental Services i TT agian
Slide 9: Engineered Solutions
Engineered Solutions iii ) AI Pollution Control
Slide 10: Air Pollution Control
Air Pollution Control 43" September 2006 ‘The Environmental Group P/L Attn: Shane Andre Shane, Lwish to express my teams and MMO's thanks and appreciation to EGL for the way in which EGL executed the Acid Mist Eliminator project at MMO. You and your tearm delivered to MMO a quality project ina timel
Slide 11: Products & Systems
Products & Systems Low Pressure Sewer (LPS) System —— it Ee Low Pressure Sewer Used where gravity sewer is not viable. It is cost effective and environmentaily friendly.
Slide 12: Low Pressure Sewer Systems
Low Pressure Sewer Systems Strong support from water authorities and councils (SWC, Hunter, SA Water, Shoalhaven, Tamw: rth, Wagga.. a Technology
Slide 13: Resource Sector Services
Resource Sector Services to 500 mm diameter.
Slide 14: Mine Assist
Mine Assist Mine Assist has fully equipped field units complete nee ee uumeg With high . pressure pumps capable ‘4 of up to 6000 = psi.
Slide 15: Mine Assist
Mine Assist * Labour hire and. -sub-contracting. Through Mine Assist, EGL has a long-term contract with RTA in Newcastle to operate and maintain the ty Lake Macquarie at Swansea. ;
Slide 16: Our Clients
OUR CLIENTS PUBLIC SECTOR Sydney Water Corporation Hunter Water Corporation North East Regional Water XStrata— Authority (VIC) Brisbane City Council Redcliffe City Council Wagga Wagga City Council } South Australian Water South Gippsland Water PRIVATE SECTOR BHP Billiton Ltd Rio Tinto (Australia) Mi
Slide 17: High Growth for Australian Environmental Market but...
HIGH GROWTH FOR AUSTRALIAN ENVIRONMENTAL MARKET but... / : Exports 357 her 307° —oagh _ Soil & groundwater 3 (b) 207 iodiversity and landscape Isp “Air & climate 19 . Waste-water and & water protection 5+ _ Waste management 1997 55 fbillion) 204 $5 (billion) Source: ACIL Consutting
Slide 18: ...A Word of Caution
...A WORD OF CAUTION For every single great > environmental innovation tt are a dozen “bleeding ed solutions which need.mone' resources which far sustainable benefits.
Slide 19: Acquisition Strategy
ACQUISITION STRATEGY A good acquisition target will: ¢ be cashflow positive; be earnings per share accretive; have an established market position proven historical performance; —_ have brand recognition; be ethically aligned, sustainal want to be part of EGL; and be available for the right pric e
Slide 20: TAPC
TAPC On 16 Feb 2007 EGL entered into . ( an agreement to acquire Total Air Pollution Control Pty Ltd, a used in most industries including resou cement, metals, chemicals, food processi operations. TAPC is sole ANZ distributors for GE Energy, supplier of parts and services for emissions control ine b
Slide 21: TAPC
TAPC The acquisition will add approximately $2 million in additional revenue this financial year and is expected to provide up to $1.3 million of additional profits in the year to June 2008. The | services co months.
Slide 22: EGL in 2007
July 2007 EGL in 2007 EGL WATER SERVICES OPERATIONS & MAINTENANCE WATER/WASTEWATER TREATMENT ENVIRONMENTAL PRODUCTS CORIOLIS (PRESSURE SEWER) OTHER PRODUCTS RESOURCE SECTOR SERVICES CLEAN AIR SERVICES MINE ASSIST OTHER SERVICE PROVIDERS TOTAL AIR POLLUTION CONTROL GAS CLEANING
Slide 23: The way ahead...
The way ahead... Transition to products and services focused business incurred short term costs with longer term benefits. Historic cyclical nature of EGL’s engineeri businesses will be offset (and in some ca replaced) by predictable recurrent incom Growth of Resource Services provides fo increasing
Slide 24: Shares in EGL have gained
Shares in EGL have gained Over 50% in the past 12 months
Slide 25: Profit Before Tax
PROFIT BEFORE TAX
Slide 26: Highlights of 2006 so far...
Highlights of 2006 so far... Exceptional Growth in margins and recurrent income Strong Cash Flow from Operations’ Completed acquisition of Mine As exceeds performance expectations | Acquiring predictable incol Targeted additional income : acquisitions - eg TAPC
Slide 27: Revenue by type
12000 + © 8000 + Design” . Design 2= Construct | Services Construct Sa . wo — 4000; | — $13.1m | 0 T 2005 Revenue by type -EGL The Environmental Group Limited
Slide 28: Margins
Margins -~Gross Margin oe me 12000 4 13.5% . C AS (oe Ly - gl We a ce - 2 . al Teel bitte 8000 + a _ a a Revenue ($ M) oo i a a a i 4000 4 Che oo i | oo i . a i. i oo i a. i a . . . oo “h a oo a | A a a a a _ co. _ 2 ig Ee oo oo 0 Z i d : 2 2005 EGL The Environmental Group Limited
Slide 29: Cashflow from Operations
Cashflow from Operations 2000 1500 1000 ($ M) () We 500 4 ed c oo _
Slide 30: Strategy and Vision
Strategy and Vision * 1 Year Action Plan — Continue to be profitable — Continue to acquire good busin ¢ 3 Year Strategy a — > 60% recurrent income by 2009 — Profitable, diverse, ethi public company ¢ 5 Year Vision — Leading Australia owned | environmental services provider
Slide 31: Outlook
Outlook Continuation of defined organic and geographic expansion program. Continued focus on increased recurrent based income and hence predictability; Management of overheads. Additional acquisitions aligned environmentally and ethically.
The Environmental Group — Investor Presentation (March 2007) on 6ix