Environmental : EGL CHAIR AND CEO AGM ADDRESS & PRESENTATION

Suite 1.01,10 Ferntree Place

Notting Hill VIC 3168

Telephone: +61 3 9763 6711

ABN 89 000 013 427

For personal use only

Suite 1.01,10 Ferntree Place

Notting Hill VIC 3168

Telephone: +61 3 9763 6711

ABN 89 000 013 427

ASX Announcement

25 November 2021

The Environmental Group (EGL) 2021 AGM - Chairman and CEO Addresses

Chairman's Address

I would like to commence these remarks by acknowledging the work of the entire EGL team during what has again been a challenging year. Covid-19 regulations have impacted each and every part of the EGL business and I thank all of our team members for their support and resilience as we have navigated the emerging environment and additional compliance requirements. I also acknowledge and thank our customers, suppliers and shareholders who have supported EGL over the past 12 months. Whilst many restrictions remain, we are witnessing a new working environment emerge and I am excited by the opportunities this brings.

Financial results for FY21 provided total revenue of $46.5 million, an improvement of over $9 million on the previous year's results. EBITDA increased for the group to just over $3 million with profit after tax of $1.7 million. These strong results were driven by positive returns from each area of operations, particularly in the second half of the year when some Covid restrictions had eased. Before corporate costs, Tomlinson Energy Service $1.7 million, Baltec IES $1.1 million and TAPC $0.8 million.

Throughout the year research and development has continued for EGL Water with commercial trials commencing in Q2 FY22. Further updates to the market will be provided once results of these trials have been analysed.

Our newest division, EGL Waste, commenced operations in March 2021 as a result of the AES acquisition and subsequent Turmec agreement. As previously outlined to the market, this agreement provides both a regular income stream and commission potential, and importantly an opportunity to play a pivotal role in improving one of the major challenges facing Australia - effective enhancement of recycling in the waste stream. Whilst the formation of EGL Waste expands market opportunities it also facilitates our strategy towards one EGL. EGL Waste has provided enhanced opportunities for each division to work synergistically towards end-to-end solutions for clients in waste and allied industries.

As we look to FY22 the impact of Covid-19 is slowly reducing in key markets, particularly in NSW and Victoria, however remaining restrictions will cause some constraints for both service work and contract completion through the year. Latent demand will be leveraged as markets stabilise in the second half of FY22 and into FY23. In his presentation, Jason will outline pipeline and growth opportunities for each area of the EGL business.

Throughout FY21 and into FY22 the Board will continue to maintain a focus on strengthening the balance sheet to facilitate growth opportunities.

In FY21 the Board implemented a strategic strengthening of both governance structures and the senior management team. Following the appointment of Adrian Siah in September 2020, two additional independent directors were elected in the second half of the year, bringing a reinvigorated focus on corporate governance, organisational performance, and shareholder returns. We welcomed Graeme Nayler and Vincent D'Rozario to the Board in March 21 both of which were elected by shareholders in July this year. Graeme and Vince bring extensive Board and commercial expertise to EGL in addition to strategic design, safety, and risk

For personal use only

Suite 1.01,10 Ferntree Place

Notting Hill VIC 3168

Telephone: +61 3 9763 6711

ABN 89 000 013 427

management experience. Resolution 5 on today's agenda, Replacement of the Constitution, is in part a result of the work the Board has done over the past 12 months to ensure compliance with revised regulations and recommendations. Resolution 4 on the agenda today in regard to Directors Renumeration is provided to formalise the renumeration structure that is currently in place.

Throughout the year the Board has also focused on strengthening the EGL senior management structure to provide a base for further growth. The Board was pleased to welcome Jason Dixon as CEO in February. As outlined in the annual report, Jason is an experienced senior executive with a track record in mergers and acquisitions and who has been appointed specifically to drive a growth strategy. Jason has moved seamlessly into this role, embracing the challenges of a diverse geographic and product portfolio across the EGL business, and has worked to capitalise on the solid potential in the business that has been established over recent years. We have already seen the impact on share price through the work that Jason has been doing within the investor community resulting in a diversified shareholder base and increased liquidity.

In line with the focus on developing a senior management team the Board also appointed Paul Gaskett as National Sales and Marketing Manager whose extensive industry knowledge and experience has already provided benefit across the EGL group. Paul has identified significant opportunities for each EGL business to provide solutions across water treatment, energy generation, odour control and the management of particulates, in addition to the agency agreement with Turmec which provides world class solutions to Australia's waste and recycling challenges. The Board also welcomes the promotion of Charles Borg and Aldo Giachero to senior roles in Baltec IES and TAPC respectively, further strengthening these organisations.

As Australia and other countries look to increase regulations around emissions and protection of the environment, the demand for EGL's world-class solutions continues to grow. Pursuing a future-focused strategic direction, EGL continues to build strength and synergies across our areas of operation, developing world-class,value-led solutions engineered to meet the evolving environment.

Positive returns have continued for the first quarter of FY22 with results in line with budget expectations. Looking ahead, the Board continues to have a high level of confidence in achieving full year results as forecast, subject to stabilised market conditions particularly in relation to COVID-19 restrictions both within Australia and throughout the global markets in which we operate.

Once again, thank you to Jason and the entire EGL Team, my fellow Board members and you, our shareholders, for your ongoing support.

For personal use only

Suite 1.01,10 Ferntree Place

Notting Hill VIC 3168

Telephone: +61 3 9763 6711

ABN 89 000 013 427

CEO's Address

Thank you for listening to today's AGM, hopefully I can provide you with some insight into the progress of the company since my arrival in February of this year and for the remainder of this financial year. Firstly, I would like to thank the staff for their contribution through the global pandemic. It has not been easy for the many staff working from home for months on end and for our authorised workers to continue to get the job done while under many constraints on site's.

Our staff, with the support of senior management, have performed very well and continued to drive improved results for the company with Revenue up 24.4% to $46.6M and EBITDA up to $3.1M, while improving the balance sheet with debt repaid of $600K.

As already mentioned by Lynn, we added three Non-Executive Independent Directors this year, in my view a pivotal move for EGL in ensuring we have improved levels of Governance in place for the best interests of shareholders and to make us investment grade in the view of the market. Our Board has been very supportive of management's intent to grow the business while providing the strategic oversight and rigor in our decision making. I thank the Board for their ongoing support of myself and the team.

As I mentioned FY2021 was a tough year to operate through the pandemic which affected all our business units, however we still managed to achieve significant growth in earnings. All three business units contributed to the bottom line, while corporate overhead was managed tightly ensuring improved returns for our shareholders. The corporate rationalisation was completed prior to my arrival and set EGL up with a platform to grow from while enduring the economic impact of the pandemic.

The strength of the management of EGL has increased considerably over the course of the year with Paul Gaskett joining as National Sales and Marketing Manager and has made a significant contribution to the company already. While Peter Rankin has been running the Tomlinson division very well since its acquisition in 2019, TAPC is now ably lead by Aldo Giachero and Baltec IES by Charles Borg. This now aligns all business units to have one clear leader in place, fully accountable for the profit and loss and growth of the business units. Both Aldo and Charles have very strong commercial acumen, understanding of risk and a culture of success.

I would now like to take you through the performance of the business units and our plans for organic growth.

Tomlinson proprietary boilers employ industry leading technology to eliminate detrimental emissions, and our design team have engineered the most efficient water tube boiler available in the Australian market. TES is supported by over 50 service technicians: servicing and maintaining boilers throughout Australia. As our technicians work on site, they had to work with many challenges throughout the year but continued to do so with a high level of service quality.

As mentioned in the Annual Report, in June of this year TES achieved its highest level of invoicing since 2014, reflecting the true underlying strength of the business when there are limited lockdowns in place. Unfortunately, by July - August that had come to an end again with much of the East Coast back in lock down. Through this time TES continued to service its clients and sell a significant number of new boilers setting up the year ahead for further earnings growth.

For personal use only

Suite 1.01,10 Ferntree Place

Notting Hill VIC 3168

Telephone: +61 3 9763 6711

ABN 89 000 013 427

TAPC brings together effective and energy-efficient industrial air pollution-control technologies that prevent harmful gases, particulate matter, and odours from being released into the environment. TAPC designs, manufactures and services the various technologies.

Financial Year 2022 is looking very good with TAPC going into the year with stronger sales in spare parts and servicing and as at 30 June had project sales on hand of $2.6m. Since the end of the financial year TAPC secured the FLSmidth Pty Ltd contract for the emission systems design and supply for a Lithium refinery in WA, and subsequently won a smaller Lithium refinery emissions system for a Canadian Plant. The Hastings Technology Metals Limited rare earths project supply portion continues to advance as the project moves through approval processes. TAPC has proven itself to be a world leader in designing emission systems for specialist plants that produce minerals renewable energy sector. Together with the strong underlying projects and service revenue TAPC is on track to deliver improved earnings again in the current year.

Baltec IES supplies highly efficient inlet and exhaust systems, which is crucial to supporting the renewable-energy sector by supplementing peak load energy requirements for gas turbines.

Baltec went into the year with work on hand of $10.7m and has a strong tender pipeline in place. With the sales achieved year to date we are confident that Baltec be a strong contributor to group earnings. Charles Borg was appointed as the General Manager of Baltec in September this year. Charles is an engineer who brings a wealth of knowledge working in the field of gas turbines for the last 30 years in various roles including senior positions with GE. Charles has already identified some areas of improvement he would like to focus on including business process improvements and quality control.

EGL Waste. Our agreement with Turmec for the world-leading recycling solutions via an exclusive agency agreement to provide the sales and service platform in Australia, has continued to gain momentum in the market. Following the CEO of Turmec Mr Geoff Bailey spending 3 months in Australia we were able to showcase the product suite with a great deal of interest from the waste management industry. Subsequently tenders for recycling plants have been or will be submitted by the end of the calendar year of around $50m AUD. EGL has been able to support Turmec by working on the commissioning of a new plant in Australia via its Tomlinson technicians. TAPC also provided advice and audits around dust suppression on Turmec plants, bringing together all the strengths of the EGL group to provide a unique offering to the waste services sector.

EGL Water division has enhanced patented technology designed to protect our environment by the removal of PFAS from contaminated water. There is increasing recognition for the need to remediate PFAS from the environment due to its widespread contamination.

Through our unique offering we have also been able to have discussions with the waste sector about EGL's trial into the separation of regulated PFAS. Following the successful removal of regulated PFAS at the pilot level, the full commercial trial with Reclaim Waste in now well underway with various waste streams being processed. EGL expects to provide an update to the market prior to the end of the calendar year on the progress of the trial results.

EGL's extraction technology if successful will be able to treat significant volumes of liquids at a low operating cost. We also continue to work with Victoria University on the separation PFAS from soil as a second and potentially larger opportunity in the market.

On a final note, the improving earnings and balance sheet are of key interest to shareholders, from a strategic point of view the operating divisions are integrating more and more into one