#1For personal use only Investor Presentation FY20 GR GR ENGINEERING SERVICES LIMITED ENGINEERING CONSULTANTS AND CONTRACTORS#2For personal use only Corporate Profile Capital Structure Shares on issue $1.20 m 153.65 $1.00 Share price (GNG.ASX) (Aug 2020) 69 $ 0.96 $0.80 Market Capitalisation $m 147.5 $0.60 $0.40 Cash (30 June 2020) $m 37.5 $0.20 Debt (30 June 2020) $m 4.0 $m 114.0 Enterprise Value Directors & Management Phillip Lockyer Register Analysis Non-Executive Chairman 15.0% Share Price Performance - FY20 3.5 3.0 2.5 ww 2.0 1.5 1.0 0.5 0.0 Volume (millions) GNG.ASX Geoff Jones Tony Patrizi Managing Director Executive Director Barry Patterson Non-Executive Director 23.0% Peter Hood Joe Totaro Omesh Motiwalla Non-Executive Director Non-Executive Director Chief Financial Officer 62.0% ■Directors, Founders & Senior Management ■Institutions ■ Other GR Reference: 2677358 2#3For personal use only Our Strategy Growing to increase the Company's diversity and strength Facilitate larger projects and minimise vulnerability to changing market conditions Extend Geographical Presence Strategic Alliances and Larger Projects Investments Strong Extend Client Relationships and Diversify Acquisition Experience GR Reference: 2677358 3#4Capabilities GR Engineering ■ Process engineering design and construction contractor servicing the mining and minerals processing industry Specialising in EPC / EPCM project delivery to provide project outcomes with secure cost, time, plant performance and contract completion warranties and guarantees Expertise in gold, base metals and industrial mineral commodities Selected Clients Saracen ORABANDA MINING GEOPACIFIC OZ SALT LAKE POTASH LTD RESOURCES LIMITED Sheffield Resources LIMITED silverlake RESOURCES GALENA MINING LIMITED BCI MINERALS LIMITED For personal use only Upstream Production Solutions Oil and gas services business providing operations, maintenance, project advisory and engineering services to Australian oil and gas industry Strong presence on and offshore Perth Basin, Timor Sea, Queensland and Victoria Selected Clients Origin GR Santos eni MITSUI E&P apa Australia Australian Government Reference: 2677358 4#5For personal use only FY20 Results Summary Earnings Revenue $250m $200m Balance Sheet & Cash Flow Cash $40m $30m $150m $20m FY20 FY19 FY20 37.5 FY19 $100m 222.4 $10m 31.4 182.3 $50m $0m $0m Net Operating Cash Flow $15m EBITDA Underlying EBITDA* $30m $25m $10m $20m FY20 $15m FY19 $5m 11.3 9.9 $10m $5m $0m $0m PBT $15m $5m FY19 8.8 FY20 -9.7 -$5m -$15m FY19 24.7 FY20 11.2 Total Dividend 8cps 6cps 4cps FY20 FY19 2cps 6.0 6.0 Ocps *Underlying EBITDA excludes one-off bad debt expenses of $17.6m primarily associated with the TOGA debtor write-off, $0.3m relating to miscellaneous inventory and debtor write-offs and $0.1m relating to Hanlon acquisition costs Reference: 2677358 LO 5#6For personal use only FY20 Results During FY20, GR Engineering increased revenue by 22.0% to $222.4 million. The solid underlying EBITDA contribution of $11.3 million was the result of a strong second half performance. GR Engineering recorded an underlying EBITDA contribution of $9.3 million in the second half of FY20. As reported at 31 December 2019, the FY20 financial results were negatively impacted by the impairment of a $17.6 million receivable owed by Timor Sea Oil & Gas Pty Ltd (liquidators appointed) to the Company's wholly owned subsidiary, Upstream Production Solutions Pty Ltd. Cash at bank increased significantly to $37.5 million at 30 June 2020 (31 December 2019: $20.7 million). The Total Reportable Injury Frequency Rate for FY20 was 3.77 comparing favourably to the FY19 result of 4.99. A final dividend of 4 cps (unfranked) has been declared, resulting in FY20 dividends of 6 cps (unfranked). In February 2020, GR Engineering completed the acquisition of Hanlon Engineering & Associates Inc., a multi-disciplinary engineering services firm based in Tucson, Arizona. The acquisition increases GR Engineering's footprint in the Americas. GR Reference: 2677358 6 0#7For personal use only FY20 Summary - Mineral Processing - Practical completion achieved: OZ Minerals Limited's Carapateena Northern Wellfield Water Supply Project in South Australia - Kirkland Lake Gold Limited's Fosterville Paste Plant Project in Victoria New and ongoing projects include: Salt Lake Potash Ltd Silver Lake Resources Ltd Lake Way Project EPCM/EPC $107.0m Australia Deflector Flotation Tails Leach Project EPC $23.0m Australia Saracen Minerals Holdings Ltd Thunderbox Paste Plant Project EPC $22.0m Australia Saracen Minerals Holdings Ltd Carosue Dam Operations Plant Expansion Project EPC $32.6m Australia Ora Banda Mining Ltd Tellus Holdings Ltd First Majestic Corp. Bluestone Mines Tasmania JV Renison Tin Upgrade Projects Davyhurst Restart Project EPC $10.8m Australia Sandy Ridge Waste Storage Project EPC $46.0m Australia San Dimas Silver Mine Project EPCM US$4.5m Mexico EPC $8.7m Australia GR Reference: 2677358 7#8For personal use only FY20 Summary - Mineral Processing - GR Engineering's pipeline of work opportunities includes: Galena Mining Ltd Abra Base Metals Project $74.0m Australia Geopacific Resources Ltd Woodlark Gold Project $92.4m PNG EcoGraf (Australia) Ltd WA Battery Graphite Manufacturing Facility $25.0m Australia Sheffield Resources Ltd Thunderbird Minerals Sands Project Australia Strandline Resources Ltd Fungoni Mineral Sands Project US$17.9m Tanzania Bacanora Lithium Plc Sonora Lithium Project Mexico At 30 June 2020, GR Engineering was engaged on 26 studies across a broad range of commodities for projects both in Australia and abroad. Eleven of these studies related to prospective gold projects. GR Reference: 2677358 8#9For personal use only FY20 Summary - Oil & Gas GR Engineering's wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream), generates longer term operations and maintenance services revenue which results in baseline revenue alongside project based design and construction work. During FY20, revenue contributions were primarily from: · . Wellsite and plant maintenance work in the Bowen and Surat Basins (Origin Energy Ltd and Santos Ltd) Timor Sea operations and maintenance services (Australian Government and Eni Australia Ltd) Maintenance work on assets in the Perth Basin including Mitsui Co. (Australia) Pty Limited Commissioning, operations and maintenance support services and surface facility construction in Victoria to clients including APA Group. As reported at 31 December 2019, Upstream PS' FY20 results were negatively impacted by the impairment of $17.6 million relating to an outstanding receivable owned by Timor Sea Oil & Gas Pty Ltd (liquidators appointed) (TOGA). Following TOGA being placed into liquidation, the Australian Government engaged Upstream PS to provide operations and maintenance services to the Northern Endeavour FPSO, in a non-production environment. GR Reference: 2677358 9#10For personal use only Balance Sheet Strong balance sheet maintained at 30 June 2020 Cash: $37.5 million (30 June 2019: $31.4 million) Listed investments: $5.3 million Significant headroom on project facilities: . Bank guarantee facility: $70 million Insurance bond facility: $60 million Net operating cashflows: $11.2 million (FY19: $24.7 million) Full year dividends paid: 6 cents (unfranked) GR Reference: 2677358 10#11use only For personal FY21 Outlook ■ Since 1 June 2020, GR Engineering has increased its order book by $170 million. As the consolidated entity moves into FY21, GR Engineering has a strong order book dominated by Australian projects. ■ The consolidated entity expects revenue for FY21 to be in the range of $280 million to $300 million, with improved EBITDA margins. ■ GR Engineering's strong cash position means that it is well capitalised to deliver its FY21 pipeline of work. GR Reference: 2677358 11#12For personal use only Contact Details Geoff Jones Managing Director +61 8 6272 6000 [email protected] Australian Office Details GR Engineering Services Ltd 71 Daly Street Ascot WA 6104 PO Box 258 Belmont WA 6984 +61 8 6272 6000 Building 3, Level 3, Kings Row Office Park 42 McDougall Street Milton QLD 4064 +61 7 3838 8000 Omesh Motiwalla CFO & Company Secretary +61 8 6272 6000 [email protected] Upstream Production Solutions Level 16, 350 Queen Street Melbourne VIC 3000 +61 3 8623 9800 Level 10, 345 Queen Street Brisbane QLD 4000 +61 7 3239 5800 GR Level 11, 99 St Georges Terrace Perth WA 6000 +61 8 6109 4000 Hanlon Engineering & Associates 2502 N Huachuca Dr, Tucson, AZ 85745, United States +1 520 326 0062 29 Dawson Street East Arm NT 0822 +61 8 7979 2340 Reference: 2677358 12#13For personal use only Disclaimer RELIANCE ON THIRD PARTY INFORMATION This presentation may contain Information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. No responsibility, warranty or liability is accepted by GR Engineering Services Limited (Company), its officers, employees, agents or contractors for any errors, misstatements in or omissions from this presentation. PRESENTATION IS A SUMMARY ONLY This presentation is information in a summary form only and does not purport to be complete. It should be read in conjunction with the audited financial report for the year ended 30 June 2020. Any information or opinions expressed in this presentation are subject to change without notice and the Company is not under any obligation to update or keep current the information contained within this presentation. NOT INVESTMENT ADVICE This presentation is not intended and should not be considered to be the giving of investment advice by the Company or any of its shareholders, Directors, officers, agents, employees or advisers. The information provided in this presentation has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs. Each party to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. NO OFFER OF SECURITIES Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Company securities in any jurisdiction. FORWARD LOOKING STATEMENTS This presentation may include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, these statements are not guarantees or predictions of future performance, and involve both known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control. As a result, actual results or developments may differ materially from those expressed in the statements contained in this presentation. Investors are cautioned that statements contained in this presentation are not guarantees or projections of future performance and actual results or developments may differ materially from those projected in forward-looking statements. NO LIABILITY To the maximum extent permitted by law, neither the Company nor its related bodies corporate, Directors, employees or agents, nor any other person, accepts any liability, including without limitation any liability arising from fault or negligence, for any direct, indirect or consequential loss arising from the use of this presentation or its contents or otherwise arising in connection with it. DISCLOSURE OF NON-IFRS FINANCIAL INFORMATION Throughout this presentation, there are occasions where financial information is presented not in accordance with accounting standards. There are a number of reasons why the Company has chosen to do this including to maintain a consistency of disclosure across reporting periods ROUNDING Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. GR Reference: 2677358 13#14For personal use only GR GR ENGINEERING SERVICES LIMITED ENGINEERING CONSULTANTS AND CONTRACTORS