CPT GLOBAL LIMITED — AGM Information 2003

Nov 25, 2003

Good Morning

Welcome to CPT Global's Annual General meeting for 2003. My name is Peter Corrigan and I am your Managing Director.

I would like to start today's proceedings by passing on an apology from your Executive Chairman, Gerry Tuddenham.

The good news is that Gerry's absence today is a direct result of our success in expanding our international operations. He is currently in the United Kingdom and Europe attending to some unexpected work commitments. Given the steady increase in momentum in our activities in our overseas regions, and Gerry's critical role in the development of these international markets, the Board agreed that Gerry should remain in the United Kingdom. Gerry has asked me to deliver his Chairman's address today.

CPT Global's Performance

The year ended 30 June 2003 for CPT Global has been one of solid improvement with considerable progress made in our profitability, resulting in CPT Global doubling our after tax profit while maintaining revenue levels.

This has largely been achieved by the skill and dedication of our global team of IT professionals, management and staff. The Board wishes to thank them for their outstanding effort.

Details of our performance are provided in the 2003 Annual Report.

Highlights of our results include:

• CPT Global's revenue for the year ended 30 June 2003 was \$28.9 million. This is an increase of 0.6% on the prior year.
• Earnings before Interest Taxation Depreciation $\&$ Amortisation (EBITDA) for the year ended 30 June 2003 was \$2.92 million, an increase of 41% on the prior year.
• CPT Global's net profit after tax for the year ended 30 June 2003 was \$1.67 million. This is an increase of 96.8% on the prior year.

The challenging market conditions of 2002 continued with clients remaining focused on reducing IT expenditure. CPT Global has retained all its major clients during the year, but in some cases with reduced revenue streams. This has largely been due to the tougher economic conditions over the last financial year touching all market sectors. This impact has been offset by CPT Global's growing expansion of our Australian and global client base.

While the backbone of CPT Global's business is the provision of technical IT services, our presence in the 'Management of IT' services market has also continued to expand.

Closer to home, CPT Global's profit improvement was primarily attributable to targeted marketing campaigns, ongoing product development in CPT Global's core service streams, and efficient and effective cost control initiatives.

Over the last year, CPT Global's strong cash flow position was used to fund an on-market share buy back. CPT Global has not participated in the on-market buy-back for the last four months but has the ability to continue the facility over the current financial year, should the board feel it is prudent.

Total dividend declared and payable for the year ended 30 June 2003 was 5.0 cents per share (fully franked) which was a 100% increase on the prior year.

Notable achievements in CPT Global's operations include:

• Continued maintenance of CPT Global's client focus, which has enabled us to rapidly respond to clients' changing requirements and priorities.
• Successful development and execution of 'Risk/Reward' IT cost reduction services in $\bullet$ both the mainframe and midrange environments that have enabled CPT Global to break into new local and overseas clients, delivering significant value to these clients in a short timeframe.
• Expansion of service offerings in response to government sector opportunities, including 'Management of IT' to assist IT organisations in becoming more productive and better aligned with the business.
• Retention of all major clients whilst securing additional blue chip private sector and government clients.
• Gaining selection onto a number of strategic local and overseas supplier panels that will springboard CPT Global's growth and long-term future in those sectors.

Both government and private sector Tier One clients have continued to engage CPT Global to assist in their business-critical strategic planning and selective sourcing operations. CPT Global has developed a unique value proposition in this space and our reputation and demand for these services have increased steadily over the past 18 months.

Our success in leveraging several multi-national Australian clients and achieving sponsorship by those clients into their overseas parents and affiliates has also been very pleasing and reinforces CPT Global's value proposition is not just in Australia but equally in demand around the world. This strategy has placed CPT Global in a position of strength to leverage and build a strong client base in each of our strategically targeted locations with minimal upfront capital outlay required.

During the past year, CPT Global has strengthened its management team with the appointment of a new Regional Manager in Sydney as well as a Regional Manager in New York for the USA operations. Consequently, CPT Global has already seen tangible improvement in both the Australian and US Regions and we have also experienced flow-on benefits in our other regions as a general by-product of having a stronger and more experienced breadth of management across the company.

In addition, we have recently secured a Regional Manager who will be based in Melbourne. This new appointee will commence with CPT Global in January 2004.

Outlook

Business Conditions

$\overline{During}$ the past six months, industry research organisations have been forecasting a gradual improvement in the level of demand in the IT sector.

CPT Global is also beginning to observe this improvement in general market sentiment and attitude to IT spending in each of its markets and is accordingly cautiously optimistic for the coming year.

We expect the outlook for the IT industry to continue to improve as major IT users such as financial institutions, telecommunications and government continue to embrace IT as a key driver in the development of business productivity and enhanced service delivery.

We have noted an increased level of interest and focus on 'Management of IT' services. especially in relation to strategic IT reviews. The demand for these services and CPT Global's core technical IT offerings continues to strengthen.

Business Strategy

CPT Global's strategies over the past year have been successful in improving profitability and return for shareholders. CPT Global will continue to follow these strategies many of which were outlined at our 2002 Annual General meeting.

Key strategies include:

• Continuing our client focus, ensuring that we build on the loyalty of our existing client base, and where possible, increase the scope of activities we undertake for these clients.
• Continuing the development and expansion of our cost reduction services in both the mainframe and midrange environments.
• $\bullet$ . Expanding our range of service offerings in response to government sector opportunities, both nationally and internationally. This expansion will focus on extending the suite of 'Management of IT' services which assist IT organisations in becoming more productive and better aligned with their targeted business outcomes.

A recent example of the success of this strategy has been the commencement of work for a large government department in the United Kingdom. A key factor that contributed to our securing this client was our expertise demonstrated in similar work for an Australian government department.

Priority is being assigned to the marketing of those services that return the maximum profit and open doors for future opportunities – namely the cost reduction services. Our international operations have led this approach with work of this nature being successfully completed or being undertaken now in Ireland, United Kingdom, Germany, Austria, Switzerland and the United States.

We intend to continue to leverage our multi-national Australian client base internationally. Our greatest success to date using this approach has been with a client who is one of the top five companies in the world who operates in the automotive sector. Following a small piece of cost reduction work undertaken in Australia, we have now competed work in the United Kingdom, Germany and the United States for the same client. More importantly each job completed has

created a future reference site and should continue to generate further work for this company worldwide.

Targeting of clients within the Australian and State Governments will also continue to be a key focus.

Gerry is taking this approach internationally with the government sector work currently being undertaken in the United Kingdom involving both our technical services and 'Management of IT' lines of business

We also intend to maintain our focus on internal cost reduction whilst striving to improve the quality of service delivery.

Operation and financial performance

Results to date for the current financial year indicate that we are benefiting from continued improvement in our operations especially in the Sydney and Canberra regions of Australia.

After three years of developing and cultivating business in Europe and the United Kingdom, we also expect to see progress in the performance of our operations in these markets during the current financial year.

We are currently pursuing a number of exciting engagements and opportunities in the United States, Europe and the United Kingdom markets which have the potential to substantially boost our operations in those regions in the coming year, but more importantly, help build the long-term prospects for our company.

CPT Global will maintain the successful strategies that have underpinned the improved 2003 results. We remain confident in our ability to grow our local and international business.

Financial Outlook

CPT Global is cautiously optimistic for the coming year but is wary of the fluctuating economic conditions across the world and how quickly things can change. Consequently, the Board has chosen to refrain from making any financial predictions until the end of the first half of the current financial year.

What I can confidently tell you today is that for the first four months of the current financial year, we are ahead in both revenue and net profit compared to the same period last year. The focus on company efficiencies over the last 12 months continues to flow through into this financial year and all regions are tracking positively. We expect the US operations to return a break-even position for the year and all other regions to improve on last years numbers. Unfortunately, the quantum of this improvement is difficult to quantify at this early stage in the year, and the total company performance is obviously always at the mercy of the volatile and unpredictable times we are currently living in.

Thank you.