Envirosuite (EVS) Investor Update summary

Strategic partnership and investment overview

• Hitachi Construction Machinery invested AUD 10 million for a 12% equity stake at a 29% premium, becoming the largest individual shareholder and gaining a board seat.

• The partnership is structured through subscription and collaboration agreements, enabling joint go-to-market strategies, product development, and leveraging Hitachi’s global footprint across 400 mining sites.

• The collaboration focuses on ESG and Net Zero solutions, integrating environmental intelligence with mining equipment expertise to deliver site-wide GHG emissions optimization and advanced digital solutions.

• The agreement is expected to enhance gross margin, accelerate sales, distribution, and product innovation, and support the land-expand-scale strategy.

• Eric Winsborrow from Hitachi joins the board, bringing global software and technology expertise.

Market opportunity and industry context

• Mining contributes 4%-7% of global GHG emissions, with up to 80% from diesel equipment and only 0.5% electrified, representing a major decarbonization opportunity.

• $800 billion USD in capital investment is needed in mining to meet Net Zero by 2050.

• 20 of the world’s top 30 mining companies have public GHG reduction goals, representing a market cap of AUD 679 billion, with major players committing billions to decarbonization.

• The partnership aims to address productivity and ESG needs for mining customers, combining environmental intelligence with equipment data.

• The companies are aligned on commercial returns, growth, and long-term vision, validated by extensive pre-agreement collaboration.

Technology, product, and innovation roadmap

• Envirosuite provides advanced environmental monitoring and decision support data, trusted by leading operators in mining and other sectors.

• The partnership will combine Envirosuite’s environmental performance technology with Hitachi’s equipment data and analytics for comprehensive GHG monitoring and predictive analytics.

• Joint development of ESG-related products will focus on optimizing operations and reducing emissions for mining clients.

• The companies will co-present and launch the partnership at MINExpo, the world’s largest mining conference, to engage with key industry players.

• The partnership is expected to unlock new opportunities and access to each other’s customer bases.