chairman's address agm 2013

From Pg3... Chairman's address AGM 2013

We are pleased that profitability is developing and building upon our experience of the fourth quarter of
FY2013. Even taking into account that capitalisation of various classes of contract establishment costs
no longer occurs and therefore a higher level of costs is being expensed, our lower cost base is being
sustained and is assisting in improved profit and cash flow.

In the context of all of this, the Company envisages that EBITDA for the first six months of the current
financial year will be in the range of $9.5 to $10 million. This includes a $1.2 million write back of
provisions for bad & doubtful debts that are no longer at risk.

As I mentioned we are on track with our aggressive debt reduction approach, our balance sheet is
progressively strengthening and our Data Centre, although non-strategic in terms of ownership, is
performing well from a profitability viewpoint.

Although we are the clear local leader in this type of service provision, we acknowledge that our
shareholders and the capital markets generally are waiting for us to prove the value of our positioning
and our business model with quality financial results. We believe that the guidance provided at this
meeting is the first step towards that objective. Next February and later with our full year results in
August, we expect to be releasing superior results based upon solid organic growth, good margins, firm
cost control and good access to the expanding New World markets.