EVT LIMITED — Regulatory Filings 2003

Oct 22, 2003

CHAIRMAN'S ADDRESS TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS THURSDAY 23 OCTOBER 2003

Ladies and Gentlemen.

It gives me great pleasure to present to you the accounts for the Company for the year ended 30 June 2003. The accounts together with other related reports and also reviews of the operations of the Group are contained in the Annual Report, which has been forwarded to all shareholders. As disclosed in the Report, it is pleasing that the on-going businesses of the Group have been able to produce a Group operating profit before unusual and extraordinary items in excess of that achieved in the previous year.

After adjusting for unusual and extraordinary items, the Group's operating net profit was \$30.3 million compared to the \$28.4 million reported the previous vear.

It is significant to note that unusual and extraordinary items, whilst collectively showing a net loss before income tax of \$3.4 million contained a number of significant transactions. Notable amongst these were the impact of the disposal of the Company's 1/3 interest in Village Roadshow Corporation Limited and also the impact resulting from the settlement of the litigation over the Thredbo landslide. As foreshadowed at the last Annual Meeting, the Company completed its disposal of 50% of its holding in the Atlab Group, this being a move that introduced a new and significant partner to the Company, that being the Rank Deluxe Group.

Also during the year the Group in conjunction with Village Roadshow Limited acquired from Warner Bros the 1/3 equity that it held in the Australian Multiplex Cinemas. This was a significant investment for the Group and increased our exposure to the Australian exhibition market, one of our core activities for the Group.

Shareholders would also be aware that the company continued to experience difficulties through its investment in the German Cinemas. This has been an issue that has continued to draw the attention and focus of the Board and Senior Management throughout the year.

When reviewing the results for the Company, shareholders should also be mindful that there was a significant impact brought about by the SARS epidemic together with ongoing concerns regarding terrorism throughout the world. These two events impacted significantly on inbound tourism to Australia as a result of which we saw a deterioration in earnings from our tourism and leisure related activities.

Given the modest growth in earnings for the Company, Directors declared a final dividend for the year of 6.5 cents on top of the 5 cents per share interim dividend that was paid on 27 March 2003. The payment of this final dividend has brought to 11.5 cents the dividends paid for this year compared to the 11 cents paid in 2002.

During the year the Company continued its strong focus on ensuring the application of good corporate governance principles. The Corporate Governance Statement which was the subject of a full review during the year, is included both on our website and in the Annual Report. The Board has also adopted a Code of Conduct and Ethical Standards together with a Charter under which it operates.

Remuneration levels for both Executives and Directors have as in the past, been a key point of focus for your Board. During the year the Directors elected to suspend the Directors' Retirement Plan and in doing so all new Directors to the Board will not be eligible to partake in the Plan. Current serving Directors will continue to accrue a benefit in accordance with the plan, however this will be capped at \$165,000 per Director and no further benefits will accrue beyond this amount. Growth in executive salaries was modest during the year.

As stated at the last meeting I reiterate that your Board believes that the issue of options in Australia can be an appropriate and long term incentive for members of the Management Team, provided they are issued under appropriate guidelines. The Management Share Option Plan was used during the year to provide incentives to members of the Management Team and details and arrangements pursuant to that Share Option Plan are provided for all shareholders in the Annual Report.

The year has also seen changes in the executive ranks and since the conclusion of the financial year, changes at the Board level. Following the retirement of Mr. Richard Parton during the year, we appointed Mr. Jim Collier as Managing Director of Entertainment on 1^st September. Prior to this appointment Mr. Collier was Chief Executive of Restaurant Brands New Zealand Limited and brings with him a vast experience in multi-unit retailing.

Also, since the conclusion of the financial year, Mr. Adrian Lane, a Director of the Company for nearly 14 years retired from the Board. The vacancy created by Mr. Lane's retirement was filled with the appointment of Ms. Meredith Hellicar on 18 September this year.

I would like to express my and also the Board's deep appreciation both to Mr. Richard Parton and also to Mr. Adrian Lane for their contributions to the Company and we wish them both well in their future endeavours. At this stage, I would also like to again welcome Mr. Collier and Ms. Hellicar to the Company and I will have pleasure in introducing them to shareholders after the Meeting.

Your Board believes the Company is in a strong position at the commencement of the new fiscal year. The significant debt reduction that occurred during the past financial year combined with operating efficiencies together with high demand for our services should support our domestic operating businesses. In addition to this, every effort is being made to address the issues facing our operations in Germany.

The Board is more than aware that the market segments in which our various businesses operate will from time to time undergo changes. Notwithstanding this, we believe the businesses comprising Amalgamated Holdings Limited are strong, and whilst they operate in their own variable environments, we will be able to look forward to continued long-term earnings growth for the Group.

Ladies and gentlemen, I would also now like to take this opportunity to thank my co-Directors for their time and commitment during the year and in particular thank Mr. David Seargeant and his Management Team for their various efforts throughout the year.

I will now ask Mr. Seargeant to present his review of the Operations of the Group.

Alan G. Rydge Chairman