ADSLOT LTD. — AGM Information 2011

Nov 29, 2011

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Level 2, 85 Coventry St, Webfirm Group Limited South Melbourne Victoria ABN: 70 001 287 510 3205 Australia ASX: WFM E: info@webfirmgroup.com

www.webfirmgroup.com T: +61 (0) 3 8695 9199 F: +61 (0) 3 9696 0700

A S X A N N O U N C E M E N T

30 NOVEMBER 2011

Manager Announcements Company Announcement Office Australian Securities Exchange

2011 AGM – Chairman Address

Please find following the Chairman’s Address given by Webfirm Group Limited Chairman Mr Adrian Giles at the Company’s Annual General Meeting being held today at 3:30pm.

Contact:

Brendan Maher Group CFO and Company Secretary Phone: 03 8695 9199 Email: brendan.maher@webfirmgroup.com Web: www.webfirmgroup.com www.adslot.com

M E L B O U R N E

L O N D O N

WEBFIRM GROUP LIMITED Annual General Meeting

Wednesday, 30 November 2011 at 3:30 p.m.

BDO: Level 30, 525 Collins Street (Rialto) Melbourne

Chairman Address

It’s been just 21 months since we acquired the Adslot business and begun building out the products.

Our ad server Adimise was acquired in July last year, and we finalised the QDC acquisition, which gave us our ad building technology, in December.

These were all the pieces we needed to build a fully self-serve end-to-end advertising platform for publishers. In other words, a product that allowed classified publishers to automate the sale of display advertising by allowing the advertisers themselves to buy directly online using a credit card and build their own ad banner.

Whilst we were building out this technology we signed reference customers Realestate.com.au and Carsales.com.au to more bespoke versions of the Adslot technology. Meaning that we built customised products specifically to suit those key initial customers.

The objective was to get a foot in the door with these customers and learn as much as we could about advertising sales within both the online real estate and automotive industries that could help us to create a more refined and validated end-to-end fully self serve advertising platform.

The classified space has been a great place for us to start because companies like Realestate.com.au and Carsales.com.au already understand the value of automating the sale of classified listings. They are already doing that with their agents and dealers, and they also recognise that their listings businesses are maturing, which is why there is a strong focus for them on the growth of display advertising. Which by the way, is the fastest growing revenue source across both Carsales.com.au and Realestate.com.au. So we are really in the sweet spot for the future growth of the online classified industry. And it’s early days, and it’s just the beginning.

So parallel to the customised products we built for both Carsales.com.au and Realestate.com.au, we have also spent a significant part of this year building the acquired technologies (Adslot, Admise and QDC) into an integrated platform, which culminated in our first sale to SeLoger the largest real estate player in France.

It not only proved that the technologies can seamlessly work together, but we were also able to prove that we could build it in a different language, opening up non-English speaking markets right off the bat.

The platform was launched just last month. After some early refinement at the request of SeLoger they are now starting to ramp up the promotion of the product to their real estate agents all over France. Their increased use of the product will continue throughout 2012 and beyond as display advertising demand grows at SeLoger.

Once we launched SeLoger we came back to our initial customers in Australia and were quickly able to sell Carsales.com.au the same platform we sold SeLoger, but for car dealers rather than real estate agents.

So this product is really only 2 months old. Now that the new version of Adslot is ready, we have taken the decision to focus our existing sales pipeline on the sale of this newer version of Adslot. Until recently we have been selling a very customised version, one that was very consultative and needed to be heavily configured for each customer circumstance. The completion of the end-to-end platform has given us a product that is clearly presented, requires less consultation, is easier to understand and less customised. This means faster deployment and easier on-boarding of customers. We also now have a large selection of demonstration platforms for every industry, and over time we will start to gather validation data that can be used to provide even more confidence to future customers.

Our sales people inform us that the pipelines for this new product are strong, however these deals will take time. As previously indicated to the market, the Adslot product sales cycle is around 6-9 months at least, sometimes more. We have also found that in some markets clients see the merit in the Adslot proposition, but are still focussed on growing and competing for market share, rather than concentrating on yield optimisation and process automation. The classified market is different in each territory, you don’t always have clear market leaders like Realestate.com.au and Carsales.com.au very willing to take on new products. Instead you have a more level playing field where competition for top spot in an industry can lead to more conservative attitudes from prospects.

The market conditions in Europe right now are obviously not favorable to fast decision making by prospects. Some of these prospects have indicated and provided our sales people with a timetable that often moves therefore resetting our expectations.

Despite these challenges we remain very encouraged by what our sales team inform us about their sales pipelines, and we continue as a business to focus on closing new business for Adslot.

The other current and future focus for the company has been on product strategy. Some of the challenges we have faced with our initial version of

Adslot, include the long sales cycle; a large number of stakeholders needing to buy-in; a high level of integration and the customised nature of development. Whilst these can be a benefit long term as customers become more technically tied to our products and demand for display advertising grows, there is also a much broader market Adslot can tap into beyond classifieds. Which is why it is important we continue to innovate the product and the strategy.

Adslot Direct is one such innovation. It is a version of Adslot designed for niche publishers. It brings a self-serve advertising platform to the middle market of niche publishers allowing them to capitalise on the movement towards ad sales automation just like the larger publishers. It’s designed to require little customisation, easier integration and is something we can build once and sell to many. The key to the success of any early stage technology company is to constantly innovate your products. So a very strong focus on innovation will continue during 2012 and beyond.

We are a very unique company, and I’m not just talking about our technology and opportunity, but I’m talking about how unique we are as a listed company. There are very few early stage technology companies listed on the ASX. This presents both an opportunity, and a challenge. Hopefully the opportunity is obvious to you or you wouldn’t have invested. But the challenge is that the market is used to more mature companies. Companies that they can easily validate, easily understand and easily measure. Unfortunately the nature of an early stage technology company is that it usually isn’t any of those things for the market. So one of the greatest challenges we have as a board is that of expectation management.

When I consider early stage investment, it’s a long-term proposition. Most technology companies take many years to develop. Hitwise took 7 years to really hit its straps, and we sold it after 10 years. Computershare started in 1978, listed on the ASX in 1994 with a market cap of around $36M and 16 years later hit a market cap of $6B. Seek.com.au started in 1997. They lost $20M over five years before they started to break even. At that point they had less than $20M in revenue.

Good things take time, great things sometimes take longer. So what do you look for in an early stage investment? Why invest in Webfirm now? Speak to most investors in early stage companies and they will say the same thing. You invest in the people. But there are other ingredients that define success in an early stage business.

Some of these are present in Webfirm:

• A unique and globally relevant technology, that is constantly innovating and being further validated with every passing day.

• An experienced team of entrepreneurs, who have done it before.

• The opportunity to expand this technology platform beyond its early days in classifieds, to cater for all online publishers, and then on to other forms of media.

• A company very well capitalised, with sufficient funds to execute on its strategy in the years ahead.

• And the most important ingredient of all, time. And it’s going to take a considerable amount of that ingredient to make this business a success.

The board and management of this company are not resting on our previous successes but are working as hard as we can to make this business a success. For those of you willing to give this business the time it needs, we are confident you will be significantly rewarded.

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