Verbrec Evolution Engineered

H1 FY21 Financial performance H1 FY21 H1 FY20 Change to PCP Revenue Gross Profit 47.6m 64.5m (16.9m) 15.9m 20.0m (4.1m) Gross Margin % 33.3% 30.9% 2.4% General & Admin Costs (14.8m) (16.8m) (2.0m) Statutory EBITDA 4.0m 4.9m (0.9m) Statutory EBITDA Margin % 8.3% 7.6% 0.7% NPAT 1.1m 2.1m (1.0m) Basic EPS (Cents) 0.6 1.0 (0.4) Net Cash Position¹ 3.5m 0.1m 3.4m Closing Cash Position 11.1m 10.6m 0.5m 1. Cash on hand less borrowings and lease liabilities Outperformed against internal EBITDA and NPBT budgets H1 FY20 results benefited from a large pipeline EPC project that reached practical completion and contributed revenues of circa $7.9m during that prior period. Gross Margins increased 2.4% over prior corresponding period to 33.3% through work mix, new project delivery systems and strengthened project delivery capability Considerable savings achieved in general and administration costs driven by better utilised billable employees, reduced overhead employees, non-recoverable travel and leasing costs Statutory EBITDA margins improved 0.7% over prior corresponding period to 8.3% Continued strong focus on cost and working capital management with net cash increasing $3.4M over prior corresponding period. New ERP system launched in early January 2021 which will deliver efficiency benefits across the business and provide a platform for growth verbrec evolution engineered 8

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