Verbrec Evolution Engineered

Acquisition of Site Skills Site Skills provides an extensive list of high-risk licence and qualifications in mining & resources, oil & gas, construction and engineering industries About Site Skills Operates facilities in Perth, Darwin, Gladstone and Brisbane (West & North) and offers courses including civil construction, gas transmission & distribution, health and safety, crane operation, load shifting and mobile plant Has provided skills training through approximately 200,000 courses to over 150,000 students over the past 10 years Transaction Overview and Details Asset purchase which includes selected employees and contractors, training facilities, student databases, trade and domain names. Verbrec is not responsible for restructure costs Announced 26th February, closed 12th April To be funded from existing cash and bank debt with $1.44M to be paid in consideration for the assets and a further $500k to be paid on satisfaction of conditions subsequent Two revenue based earn-outs, FY22 and FY23, $1.0M and $1.5M respectively. Competency Training revenues of $18M for FY22 and $20M for FY23 for full earn-outs to be achieved. Minimum revenues of $12M (below which no earn-out), pro-rata between $12M and the $18/$20M targets Strategic rationale ➤ Adds significant scale to existing training business - acquisition forecast to triple training revenue from ~$6M per annum to ~$18M per annum Scale will improve net margins via better coverage of relatively fixed compliance and back-office costs EPS accretive in FY21 due to $1.8M per annum in cost savings to existing Site Skills business, forecast to deliver ~$2M in EBITDA in FY22 Access to training facilities in strategic growth areas including Darwin and Gladstone verbrec evolution engineered 13

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