IGNITE LIMITED — AGM Information 2008

Oct 27, 2008

Annual General Meeting 28[th ] October 2008

Diana Eilert CEO/Managing Director

Clarius is a leading contracting and recruitment business with specialist brands..

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...that targets white collar sectors...

Specialist recruiter and contractor for professionals. We target high growth, higher margin sectors:

• Information, Communication and Technology (ICT)

• Banking and Finance

• Property and Construction

• Business Services

• Health

• …competing only where we can leverage our operating models and scale to drive

• returns well over industry

• We provide broader services where there is limited capital required, and we can

• leverage our HR and contractor skill sets to take on more project/service risk for higher returns

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…building a presence in Australasia

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Agenda

1. Results Summary

2. Management Challenges and Response

3. Strategy

4. Outlook

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Overview

• Net profit after Tax of $11.3 million

• Some challenges, but delivered

improvement in Lloyd Morgan arrested decline in contractor numbers hired quality senior team, clear roles integrated acquisitions

• Strategy part implemented

• Current economic downturn impacting FY09

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FY08 Financial Results

June 08 Year June 07 Year

$321 million $298 million

Revenues

Full Year NPAT $11.3 million, $13.4 million $12.1 million before oneoffs Operating Cashflow ($0.3 million) $14.4 million Full Year 16 cents per share 19 cents per share Dividend

Up 8% largely due acquisitions

NPAT guidance delivered

Fully franked dividend payment in line with policy of 70-80% NPAT

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Agenda

1. Results Summary

2. Management Challenges and Response

3. Strategy

4. Outlook

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We faced some significant challenges over the past year, and have made progress

• Limited ability to grow organically, and 2 year decline in contractor numbers was accelerating

• Lloyd Morgan loss of key staff in April 07, resulting in revenue decline

• Candle loss of major client in Feb 07

• Gaps in capability

• Management roles and accountability

• Back office largely manual, systems not integrated

• Planned increase in debt during the year as vendor payments come due

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1. We have returned the Lloyd Morgan Australia business to profit

Lloyd Morgan Australia Earnings Contribution

Key Points

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2000
1500
1000
500
0
Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08
-500
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• Business stabilised & ahead of plan

• Increased candidate registrations by 87% from prior year

• Consultants have grown 16% net of non-performers exiting

• 10 major new clients engaged

• Candidate and client satisfaction surveys - >90% willingness to recommend

• Operating overheads have decreased 20%

Lloyd Mor gan Aus Ear nings Contr ibution

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2. We have stabilised contractor numbers after run-off since Jun 06

Clarius Group Temp/Contractor Numbers

Key Points

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3.5
3
2.5
2
1.5
1
0.5
0
Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08
Temp/Contractor Acquisition uplift in half
Number
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• Run off since June 2006

• Stable numbers since Dec 07

• Focus on contractor/temp placements

• Impact of lower contractor run rate on profit during last half (H2 08)

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3. We have established clear accountabilities and upgraded the Executive team

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Business Heads
Paul Barbaro David Stewart Greg Smith Alfred Chown Murray Parker
[AUS] [ASIA]
Services
David Marshall (CFO) Kym Quick
Shared Services FutureForce & HR
(Finance & Payroll, Legal &
Compliance,
IT, Business Systems)
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Key Points

• New Managing Director from end Aug 2007

• Focus on individual businesses

• Four new strongly credentialed executives, supplementing existing high quality team

• Clear accountability for growth and service levels

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4. We have further integrated acquisitions

• All brands now using common financial platform

• Alliance brands migrated to Candle recruitment system, Asia moving to Adapt recruitment system

• Common processes and policies being implemented

• Financial reporting upgraded significantly, and

• KPI’s and performance management implemented across business

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Agenda

1. Results Summary

2. Management Challenges and Response

3. Strategy

4. Outlook

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We are changing from a business that grows solely through acquisition

Past

Growth by acquisition

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Now Building organic growth model

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2009 onwards Organic growth momentum

P/E arbitrage using small acquisitions

In current market acquisition pricing largely not attractive/accretive

Premium for organic growth Opportunistic high quality acquisitions

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Our strategy is to significantly improve our core business, extend the scope and slowly expand services

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2
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Extend specialist recruiter scope and geography

Develop a “robust and replicable” model that enables rapid expansion into

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• Australia and NZ

• Asia

1 Defend and Improve Specialist Recruiter

Selectively acquire businesses that move into target sectors

• Health

• Construction

• Design and implement model for growth (recruitment, training career paths, reward & remuneration)

• Improve core profitability

• Upgrade technology and processes

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3
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Expand into Services from “Labour Hire”

• 1.Grow business in the areas of IT and Project Management (JAV IT)

• 2.Develop complementary HR services to develop ‘partnership’ with clients

Project FutureForce Initiatives underway

Our short term initiatives are focused on improving our core business

1. Lift productivity

• Project FutureForce - job roles, rewards and performance expectations

• Candle pilot (July to Oct), followed by rollout,

• Alliance to follow (H2)

2. Increase salesforce

• Aim to continue sales momentum

• FutureForce to deliver skilled recruiters to business

3. Improve cash flow

• On-line time sheets shorten billing cycle, improve customer experience

• Focus and measurement on cash and debtors

• However, vendor payments still due

4. Reduce cost

• Selective roles removed, mostly by natural attrition

• Discretionary spend tightened => limited capacity to reduce cost

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Agenda

1. Results Summary

2. Management Challenges and Response

3. Strategy

4. Outlook

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Outlook for the Next 12 Months…

Macro economic environment challenging

• US and European economies now appear to be in recession

• Business confidence and hiring intentions lowest since 1991 (Dun&Bradstreet)

• Australia and Asia slowing

Now impacting recruitment services

• Reduction in permanent recruitment by >10%,

• Financial services particularly impacted, and worsening

• China/HK experienced very poor July and August

• Industry data points to a potential slow down in IT

• ⇒ Market uncertainty means guidance is difficult

• ⇒ Indications are that profit for the first half could be 35 to 40% lower than pcp

Clarius has strengths in a down turn

• Strong brands

• Seasoned management

• Debt to Equity Ratio 15%

• quality of client receivables high

• Current assets exceed current liabilities by ~$15 million

• Diversified by sector and geography – able to shift sector focus

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Questions?

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Disclaimer

• The material herein is a presentation of non-specific background information

• about Clarius Group Limited’s current activities.

• It is information given in summary form and does not purport to be complete.

• Investors or potential investors should seek their own independent advice.

• This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of a particular investor.

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