Capital Raising Overview

Key Risks (cont.) Financial risks (a) Contingent liabilities. As is typical in the industries in which the Company operates, the Company is regularly required to provide and fund bank guarantees and bonds in relation to projects and contracts, which can be in respect of material amounts. There is a risk that a performance security may be called upon, requiring the Company to make whole the provider of the security which may in turn adversely affect the Company's financial performance and position. The Company continually strives to achieve its performance obligations and currently considers that the risk of a performance security being called upon is moderate. (b) Cash flow and working capital. The Company's businesses can experience large swings in working capital during project cycles and net debt correspondingly varies up and down through the financial year. These movements are caused by such things as mobilisation costs for new or expanded contracts, working capital fluctuations on major projects due to work in progress movements, the timing of payments of claims and contract variations and seasonal volumes. (c) Future debt or equity funding. The Company's continued ability to effectively take advantage of future opportunities or to respond to competitive pressures may depend in part on its ability to continue to draw-on existing debt funding and/ or raise further funding in the future. The Company currently has the benefit of a funding facility which it uses for working capital purposes and is due to mature 30 June 2023. Like all such facilities, there are various conditions and ongoing obligations on the Company, non-compliance with which may result in the facility being withdrawn (wholly or partly) and/ or increases in the applicable interest rates. Included among those obligations, is the obligation for the Company to ensure that the facility is reduced below certain levels every six months (Clean Draw Down Requirements). While the Company remains focussed on complying with its obligations under its facilities, including the Clean Draw Down Requirements, there is a risk that a deterioration in the Company's cash position, including as a result of any delays in receiving payments from customers and/ or unforeseen expenses, may result in these Clean Draw Down Requirements and/ or other obligations not being met. The Company has also previously received a waiver from the occurrence of a review event (based on maintaining or exceeding a pre-defined EBITDA measure) and has agreed a variation to those provisions until 31 December 2022. There is a risk that the facility may be terminated, may not be renewed and/or that an alternative facility may not be obtained or may not be obtained on favourable terms and the Company's continued ability to operate effectively may be impacted. There is also a risk that any future debt or equity financing requirements may not be met on favourable terms or at all. If adequate funds are not available on acceptable terms in the future, the Company may not be able to take advantage of opportunities or respond to competitive pressures and the Company's continued ability to operate effectively may be impacted. (d) Interest rates, currency and inflation. Rising interest rates may adversely impact the Company's interest payments on its floating rate borrowings and inflation in underlying input costs may also adversely impact the anticipated returns from the Company's operations. Similarly, a small proportion of the Company's costs are denominated in foreign currencies and the Company is thus exposed to adverse or beneficial exchange rate movements. Certain equipment is also manufactured overseas but paid for in Australian dollars. As such, fluctuations of exchange rates of foreign currencies may affect the cost of equipment although most of these movements are absorbed through changes to the pricing of the Company's services. (e) Fluctuations in value of assets. The value of the Company's assets, including property, plant and equipment and intangible assets, may be impacted by a range of factors. Consistent with accounting standards, the Company is periodically required to assess the carrying value of its assets. Where the value of an asset is determined to be less than its carrying value, an impairment charge must be recognised in the Company's profit and loss account. Although any such charge is a non-cash item, it may reduce the Company's profits which in turn may impact its ability to pay dividends. General Investment Risks (a) Investing in securities and market conditions. Share market conditions may affect the value of the Company's quoted securities regardless of the Company's operating performance. Share market conditions are affected by many factors such as general economic outlook, interest rates and inflation rates, changes in investor sentiment toward particular market sectors, the demand for (and supply of) capital and terrorism or other hostilities. The market price of securities can fall as well as rise and may be subject to varied and unpredictable influences on the market for securities in general and resource exploration securities in particular. Neither the Company nor the Directors warrant the future performance of the Company or any return on an investment in the Company. (b) Integration risk. The Company may pursue mergers and acquisitions, or enter into strategic partnerships, in order to realise benefits including complementary revenue streams and future platforms for growth. The identification, evaluation and negotiation of these opportunities may require significant time and effort from key management and employees, and may result in disruptions to the business. There is also a risk that the Company is unsuccessful in integrating new businesses or assets into its existing operations in a timely manner, or that the new businesses or assets do not result in the benefits anticipated. This may include the potential challenges in integrating various operations as a result of different practices and processes being employed. The Company cannot guarantee that every acquisition or partnership that it makes or enters into will result in favourable outcomes for the business. The Company may also implement aspects of the acquired business or products to enhance its existing business. There is also a risk that the process of integrating new businesses requires significantly more financial and management resources, or time to complete, than originally planned. This may occur due to a variety of factors, including poor market conditions, poor integration of staff, staff losses, customer losses, technology impacts or other integration barriers. (c) Information technology/privacy. The Company relies heavily on its own computer systems and those of third party service providers to store and manage private and confidential information. A malicious attack on the Company's systems, processes or people from external or internal sources could put the integrity and privacy of the Company's data at risk and could hamper the Company's operations and, in turn, capacity to generate revenue. If the Company's efforts to combat any malicious attack are unsuccessful or the Company has actual or perceived vulnerabilities, not only could this result in the Company suffering short term economic loss, but the Company's business reputation and brand name may be harmed, potentially having a material adverse effect on the Company' operations and financial position. (d) Environment and Climate Change. The Company operates across a number of industries and geographies and some of the Company's clients are in sectors and geographies are exposed to environmental risks, including risks relating to climate change. A failure to manage these risks, by the Company's clients or the Company may impact the Company's operations and, in turn, financial performance. (e) Impact of COVID-19. The Company's business and operations are exposed to the effects of COVID-19. COVID-19 poses significant risks of disruption to the Company's business, impaired financial performance, as well as potential impacts on the wellbeing of personnel. While the long-term impacts of COVID-19 on the general economy and the Company is uncertain, it is likely that the financial and operational performance of the Company will be materially adversely impacted by ongoing COVID-19 related issues, including the emergence of new strains, lockdowns and/ or ancillary regulations, increased absentee rates, supply chain disruptions and general industry related impacts. In addition, the Company will be adversely impacted by further Government imposed COVID-19 lockdowns and/ or ancillary regulations that have a detrimental impact on workforce productivity and revenue. 21