KORVEST LTD — AGM Information 2010

Oct 21, 2010

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ABN 20 007 698 106

CHAIRMAN’S ADDRESS TO SHAREHOLDERS

Delivered at the Annual General Meeting on Friday 22[nd] October 2010 7[th] Floor, 151 Pirie Street Adelaide SA 5000

Ladies and Gentlemen,

Welcome to the 40[th] Annual General Meeting of Korvest Ltd. Today we present for your approval the financial statements for the year ended 30 June 2010 together with the reports of the Directors and Auditors.

FINANCIAL RESULTS

The revenue from trading activities including financial revenues for the year under review was $55.774m down 11% on the previous year. Profit after tax was $3.983m down by 29%. It was a difficult year for our business with significantly softer conditions impacting on the markets serviced by Korvest. The activity in a number of key markets was less than had been experienced over recent years. The volume of larger project work diminished during the year and the smaller day-to-day business was inconsistent from month to month and state to state.

In the Industrial Products group the EzyStrut cable and pipe support business supplies products to contractors for small industrial developments and also supplies products for major infrastructure developments. The overriding feature of the year was the lack of significant projects. There had been an expectation that a number of these larger projects would commence in the second half of the year however as reported during the year this did not occur. As a result of the reduced demand in the EzyStrut markets there was fierce competition for available work and margins were under pressure throughout the year.

Also included in the Industrial Products group is the Indax grating and stanchion business. This business has experienced significant growth over recent years and as a result of this growth a new production facility was successfully opened in Queensland in March 2010. It was expected that the new facility would take a short period to become profitable and this has proved to be the case. Most importantly the new facility when fully operational will replicate the Kilburn capacity and therefore double the Group’s capacity. It will also provide a facility that is geographically able to better service the significant eastern states markets.

In the Production group the Galvanising business had a difficult year. Volume was at historically low levels over the course of the year once again driven by a lack of active infrastructure projects. As a result of surplus capacity in national markets selling prices were generally down as competition became more intense for the reduced quantity of available work. The business is well positioned to capitalise on any improvements in the market conditions.

DIVIDEND

We have announced a fully franked final dividend of 15.0 cents per share, this is 2.0 cents lower than both our interim dividend and last year’s final 17.0

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cents final dividend. The full year dividend in relation to the 2010 year was 32.0 cents per share compared to 34.0 cents per share for the previous year.

The final dividend was paid on 7[th] September 2010.

RE-ELECTIONS

In accordance with our Articles of Association Graham Twartz and Peter Brodribb retire from the board at this meeting. Each is eligible for re-election at this meeting and offers themselves accordingly.

KORVEST PEOPLE

The Directors express their appreciation to all management and staff for their efforts over the past financial year. It was a particularly difficult year for all parts of the business and all concerned are to be commended for their efforts. Korvest is fortunate to have a strong and dedicated team of people and I am sure that all here today join with me in thanking them for their continued hard work.

CORPORATE GOVERNANCE

Korvest’s approach to Corporate Governance is a practical one determined by the nature and size of our business and the risks identified in our operating environment. Our practises are set out in detail in the Annual Report.

CURRENT YEAR TO DATE AND OUTLOOK

When releasing our F2010 full year results in July it was noted that the expectation was that that the markets in which Korvest’s businesses operate would remain subdued during 2011 albeit with expectation of gradual improvement later in the year. This expectation remains and is supported by the trading conditions in the first quarter which remained subdued but are consistent with the trading conditions experienced in the second half of F2010.

When compared to the same period last financial year it is expected that the first half F2011 results will be between 20-30% below the profit of the prior year’s first half. However, given the subdued conditions in the second half of last year the full year’s results should be in line with last year’s full year results.

With recent investment in expansion and plant improvements Korvest is well placed to take advantage of any improved economic conditions during the coming year.

P.W. STANCLIFFE Chairman 22 October 2010

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