Slide 1: Updated Investor Presentation cover letter to ASX
For personal use only ! ! EVZ!LIMITED! ABN!87!010!550!357! ACN!010!550!357! 11!May!2017! ! ! The!Manager! Market!Announcements!Office! Australian!Securities!Exchange! 20!Bridge!Street! Sydney!NSW!2000! ! Updated!Investor!Presentation! EVZ!Limited!(Company)!refers!to!the!Investor!Presentation!lodged!
Slide 2: EVZ Limited Capital Raising Presentation
EVZ LIMITED CAPITAL RAISING PRESENTATION For personal use only MAY 2017 EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 1
Slide 3: Important Notice & Disclaimer
DISCLAIMER IMPORTANT NOTICE & DISCLAIMER For personal use only This investor presenta.on (“Presenta.on”) has been prepared by EVZ Limited (ACN 010 550 357) (“EVZ” or “the Company”) in rela.on to a pro rata renounceable en.tlement offer of new fully paid ordinary shares in EVZ (“New Shares”) with reta
Slide 4: Disclaimer: Future performance and forward looking statements
DISCLAIMER Future performance and forward looking statements For personal use only This Presenta.on contains certain references to forecasts, es.mates, assump.ons and other forward-looking statements and statements regarding the intent, belief or current expecta.ons of EVZ. The words “likely”, “expe
Slide 5: Executive Summary
EXECUTIVE SUMMARY EVZ Limited (EVZ) is an industrial group with a porbolio of specialist For personal use only opera.ons in the engineering services sector. EVZ has three opera.ng divisions: 1. Engineering - Brockman Engineering 2. Water - Syfon Systems 3. Power Genera.on Maintenance – TSF Maintenan
Slide 6: Executive Summary
EXECUTIVE SUMMARY For personal use only EVZ is now well posi.oned to grow revenues and improve profitability by u.lising the improved balance sheet to take full advantage of the growing need for: - Fuel storage and terminal developments across Australia, leading to further sales and profitability in B
Slide 7: Earnings Guidance
EARNINGS GUIDANCE For personal use only EVZ Limited reported 1H17 EBITDA of $0.77M and now provides the following guidance for the full year: - Revenue for FY17 is expected to be in a range of $50M - $52M - FY17 normalised EBITDA is expected to be in a range of $0.7M - $1.0M EVZ is expec.ng FY18 to
Slide 8: EVZ Group Brands
EVZ GROUP BRANDS For personal use only BROCKMAN ENGINEERING Brockman Engineering is a specialist fuel and water industry tank design and construc.on company that also fabricates associated pressure pipework and performs shutdown maintenance. SYFON SYSTEMS Syfon Systems are specialist roof drainage e
Slide 9: Business Update: Debt Restructure and Equity
BUSINESS UPDATE EVZ LIMITED For personal use only DEBT RESTRUCTURE Debt reduc.on strategy has achieved a gross $7.285M reduc.on (in two tranches) in debt to now be $6.0M. Reduc.on was achieved through debt forgiveness by CBA. New three year facility agreement with CBA has been executed providing sta
Slide 10: Key Offer Details
KEY OFFER DETAILS For personal use only KEY DETAILS Share placement raising $303,190 from ins.tu.onal and Placement sophis.cated investors 20 for 11 fully underwri_en renounceable pro rata en.tlement En.tlement Offer offer of New Shares to eligible shareholders to raise approximately $4.4M Offer Price
Slide 11: Use of Funds
USE OF FUNDS For personal use only SOURCE OF FUNDS USE OF FUNDS Placement $303,190 Trade Creditors $3,830,000 $4,379,415 En.tlement Offer Working Capital $500,000 CBA Fee $50,000 Offer Costs $300,000 TOTAL $4,682,605 TOTAL $4,680,000 EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance
Slide 12: Capital Structure
CAPITAL STRUCTURE For personal use only Upon comple.on of Capital Raising Current Shares 210,548,789 Placement Shares 30,319,026 En.tlement Offer Shares 437,941,482 Unlisted op.ons to Underwriter* 15,000,000 Total Shares upon comple.on 678,809,297 *Op.ons are exercisable at $0.02 and expire 48 months
Slide 13: Offer Timetable
OFFER TIMETABLE For personal use only EVENT DATE Announcement of En.tlement Offer Thursday, 11 May 2017 Ex Date, Start of En.tlements Trading Monday, 15 May 2017 Issue of New Shares under Placement Tuesday, 16 May 2017 Record Date for En.tlement Tuesday, 16 May 2017 (7pm) En.tlement Offer Opens Friday
Slide 14: Bank Agreement
BANK AGREEMENT For personal use only KEY DETAILS Financier Commonwealth Bank of Australia Market Rate Loan $6,000,000 Finance Expense BBSY + 4.95% Bank Guarantee Facility $2,800,000 Finance Expense 3.5% pa Term 3 years Establishment Fee $50,000 Facility Fees $166,666 per annum Restric.ons on dividen
Slide 15: TSFC Loan
TSFC LOAN For personal use only KEY DETAILS Secured Loan $1,000,000 Lender TSF Corpora.on Pty Ltd Term Expires 15 December 2017 (rollover op.onal) Finance Expense 3.5% pa Security TSF Maintenance Services Pty Ltd 60% debt to equity conversion to occur within 90 days at $0.01 per share subject to sha
Slide 16: Proforma Balance Sheet
PROFORMA BALANCE SHEET At 31 December Impact of the Impact of the Pro-Forma For personal use only Revised Banking Net Equity 2016 Facility Raising Balance Sheet NOTES Current Assets Cash on Hand $1,743,085 $653,000 $2,396,085 This pro-forma Balance Sheet illustrates Trade and Other Debtors $10,449,3
Slide 17: Business Update: Brockman Engineering
BUSINESS UPDATE BROCKMAN ENGINEERING For personal use only Brockman is reposi.oning in the market to be a provider of value added services to the fuel industry. Current long term agreements: - Viva Geelong Refinery Mechanical & Tank Maintenance (3 yr) - Exxon Mobil Services Agreement (5 yr) - Mobil A
Slide 18: Business Update: Brockman Engineering
BUSINESS UPDATE BROCKMAN ENGINEERING For personal use only Current tank construc.on workload includes: - New tank Viva Geelong refinery ($4M) - New tank Viva Geelong refinery ($2M) - Tank floor replacement Caltex Ly_on Refinery ($2M) - Tank floor replacement Esso Longford ($2M) - Tank floor replacement Vi
Slide 19: Business Update: Syfon Systems
BUSINESS UPDATE SYFON SYSTEMS For personal use only Syfon is market leader in Australia, circa 70%* market share. Syfon is also market leader in Malaysia with circa 80%* market share. Largest opportunity for growth exists in expanding across SE Asia. Syfon provides a holis.c service; product develop
Slide 20: Business Update: Syfon Systems
BUSINESS UPDATE SYFON SYSTEMS For personal use only Current contract commitments in Asia exceed $7.8M in support of FY18 and FY19. Asian growth plan is to approach each country sequen.ally, Vietnam to springboard off Malaysian headquarters un.l leading market share is established. HDPE pipe and fivng
Slide 21: Business Update: TSF Maintenance
BUSINESS UPDATE TSF MAINTENANCE For personal use only TSF Maintenance is a specialist, manufacturer independent, power genera.on maintenance and opera.ons provider. Current long term agreements: - Telstra / Visionstream (5 yr) - NBN / Broadspectrum (5 yr, annual rollover) - QUU Biogas Plant (2 yr) N
Slide 22: EVZ Projects: Melbourne Park Sports Precinct
EVZ PROJECTS SYFON SYSTEMS For personal use only MELBOURNE PARK SPORTS PRECINCT – Syfonic Roof Drainage EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 21
Slide 23: EVZ Projects: City of Dreams Macau
EVZ PROJECTS SYFON SYSTEMS For personal use only CITY OF DREAMS MACAU – Syfonic Roof Drainage EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 22
Slide 24: EVZ Projects: Esso Long Island Point
EVZ PROJECTS BROCKMAN ENGINEERING For personal use only ESSO LONG ISLAND POINT – Two Tank Floor Replacements EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 23
Slide 25: EVZ Projects: Melville Island Fuel Terminal
EVZ PROJECTS BROCKMAN ENGINEERING For personal use only MELVILLE ISLAND FUEL TERMINAL – Three new tanks constructed EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 24
Slide 26: EVZ Projects: Queen St, Brisbane
EVZ PROJECTS TSF MAINTENANCE For personal use only 480 QUEEN ST, BRISBANE – Standby Power Plant EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 25
Slide 27: Appendix
For personal use only APPENDIX EVZ LIMITED | Brockman Engineering | Syfon Systems | TSF Maintenance 26
Slide 28: Financial Notes
FINANCIAL NOTES BASIS OF PREPARATION OF PROFORMA BALANCE SHEET For personal use only To illustrate the effect of the offer on the Company, the consolidated pro-forma balance sheet of the Company has been prepared using the reviewed balance sheet of the Company as at 31 December 2016, adjusted to reflec
Slide 29: Key Risks: Summary
KEY RISKS SUMMARY For personal use only An investment in the Company exposes investors to certain risk factors. The business of the Company and the industry in which it operates are subject to risk factors both of a general nature and risks which are specific to the industry and/or the Company’s busi
Slide 30: Key Risks: Financial risk
KEY RISKS Financial risk For personal use only • Even following the Company’s recent successful nego.a.on of an interest bearing debt reduc.on with the Commonwealth Bank of Australia, the Company will con.nue to have debt obliga.ons. The debt facili.es contain a variety of material covenants which t
Slide 31: Key Risks: Product risk
KEY RISKS Product risk For personal use only • The products and services EVZ produces are subject to sales agreements with customers and must meet certain specifica.ons. Despite controls and measures being in place, products and services may fall outside these specifica.ons due to process failures, eq
Slide 32: Key Risks: Contractual risks
KEY RISKS Contractual risks For personal use only • EVZ's financial performance is reliant on the revenue produced from the u.lisa.on and produc.vity of its key assets. To ensure that the produc.vity of the Company's assets is maximised, where possible the Company engages in short term contracts with
Slide 33: Key Risks: Disruption to Business Operations
KEY RISKS DisrupAon to Business OperaAons For personal use only • The Company’s ac.vi.es are subject to a range of opera.onal risks. Such opera.onal risks include equipment failures, IT system failures, external services failure (including energy or water supply), industrial ac.on or disputes and na
Slide 34: Key Risks: Foreign exchange, taxation, accounting standards
KEY RISKS Foreign exchange rates and interest rates For personal use only • Adverse movements in exchange rates may impact sales proceeds received, product costs and price compe..veness and may impact the opera.ons and financial performance of EVZ. Also, adverse fluctua.ons in interest rates, to the e