Capital Raising Overview

Key Risks (cont.) (f) Invoicing and cash collection risk. The Company relies on its staff to invoice for work performed and collect debts owed, promptly and in full so as to minimise the Company's reliance on the bank facilities available. While the Company has established systems and processes in place to assist in the management of this risk, if the Company's staff are less than diligent in invoicing and collecting cash and/ or one or more of the Company's clients delay payment, there is a risk that the Company's financing facilities may be exhausted, exacerbating the risk described at the "Cash flow and working capital" section further on in this Presentation. (g) Cyclical industry risk. A number of the industries in which the Company operates are subject to cyclical fluctuations. These cycles are principally driven by domestic and global factors (including general economic and business conditions) which are outside the Company's control and, in turn, may impact the Company's financial performance. In particular, the Company's APS Business Unit is impacted by swings in the level of activity in the non-residential construction and infrastructure sectors. The Company's diversity across industries, geographies and clients provides it with some protection from the cyclical influences in the industries in which it operates, but the Company is unable to completely eliminate these cyclical effects from its operations. (h) Accreditation risk. Many of the Company's various business units require the Company and key staff to obtain and maintain various accreditations and/ or licences, some of which are subject to periodic review. A failure to obtain or maintain such accreditations or the loss of any one or more employees who hold such accreditations/licenses may have a material adverse impact on the Company. In some instances, the Company may seek to address this risk through the engagement of suitably qualified/ accredited sub-contractors, however, this may not be possible in all circumstances and the engagement of which may result in increased cost to the business. (i) Key personnel and labour shortages. The talents of a relatively small number of key personnel contribute significantly to the Company's operational effectiveness. There is a risk that if one or more of those personnel leave the Company, the Company may not be able to replace them promptly or with persons with comparable skill and experience. In addition, parts of the Company's workforce are highly qualified. The Company is dependent on the availability of suitably skilled labour to provide its services and is therefore susceptible to any labour shortages in those vocations in Australia. (j) Industrial relations. Although the level of union involvement within the Company's workforce is limited, the Company may be exposed to the risk of industrial actions occurring at client sites which may disrupt the Company's work programs and may have an adverse impact upon the Company's cash flows. (k) Competitive risk. The industries within which the Company operates can be highly competitive. The actions of competitors or the entry of new competitors may adversely impact the Company's financial performance or operating margins where the Company is unable to effectively respond in a timely manner. The Company has effectively competed in the majority of industries in which it operates over a number of years and has a strong track record of securing work. The Company is also committed to maintaining and where possible, improving its operating margins. However, the competitive nature of the industries provides no assurance that the Company will be able to successfully compete in the future and maintain, or even increase, current operating margins. Further, technological changes in the industries in which the Company operates, whilst presenting significant opportunities for the Company, also pose the risk that a competitor may introduce or develop a technology through which it may be able to extract a competitive advantage. (1) Occupational health and safety. The Company's operations involve risk to both property and personnel. A work health and safety incident may lead to a serious injury or death. The Company is currently party to a number of workplace health and safety investigations and proceedings in the ordinary course of business, including in respect of two workplace fatalities, which, alone or together with future incidents that may arise, may result in penalties and/or compensation being incurred by the Company that may have a material adverse effect on the Company's future financial performance and position. Such an incident may also cause reputational damage which may have flow-on effects, such as adversely impacting the Company's ability to renew existing contracts or win new contracts. The Company has an occupational health and safety policy that strives to ensure best practice. Notwithstanding the existence of the policy and the best efforts to enforce the policy, there remains an inherent risk of health and safety incidents owing to the nature of the Company's operations, which could give rise to penalties, prosecutions and compensation claims which could have an adverse effect on the Company's financial performance and position. The Company strives to minimise this risk. However, given the nature of the Company's business this is not possible. (m) Litigation and disputes. Disputes and litigation are common in the industries in which the Company operates, including particularly, the design and construction industry. The Company is subject to the usual business risk that disputes or litigation may arise from time to time in the course of its activities. Contract variations in particular, commonly lead to disputes. There is a risk that material or costly disputes or litigation could adversely affect the Company's financial performance or position. 20 20

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