KORVEST LTD — AGM Information 2011

Oct 20, 2011

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ABN 20 007 698 106

CHAIRMAN’S ADDRESS TO SHAREHOLDERS

Delivered at the Annual General Meeting on Friday 21[st] October 2011

7[th] Floor, 151 Pirie Street Adelaide SA 5000

Ladies and Gentlemen,

Welcome to the 41[st] Annual General Meeting of Korvest Ltd. Today we present for your approval the financial statements for the year ended 30 June 2011 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 $67.384m, up 20.8% on the previous year. Profit after tax was $4.221, up by 6.0%. It was a year of two halves where the first half was burdened by soft trading conditions and the second half benefited from an increase in the volume of project work. This resulted in the second half showing a 25% improvement over the first half result.

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. During the year a number of projects contributed positively to the improved performance for this business. On a state by state basis all branches achieved revenue growth, however the magnitude of that growth did vary substantially between states where different levels of infrastructure investment were observed. Product innovation within the cable support business enabled EzyStrut to have a competitive advantage in some product lines and this underpinned the improved performance.

Included in the Industrial Products group is the Indax grating and handrail business. The performance for this business was below expectations and unsatisfactory. During the year Indax suffered a decline in margins and profitability, despite a growth in sales, due to acceptance of larger scale projects carrying lower inherent margins, higher than anticipated material and distribution costs and additional costs resulting from capacity constraints and administrative processes. These unprofitable projects were completed during F2011.

In the Production group the Galvanising business had another difficult year. Volumes remained at similar levels to those experienced in the prior year with month to month tonnage tending to vary due to a lack of consistent project work in the South Australian market. The recent trend of increased pricing pressure due to surplus industry capacity continued throughout the year.

DIVIDEND

We have announced a fully franked final dividend of 15.0 cents per share, this maintains the same final dividend as last year and combined with the interim dividend of 11.0 cents results in a full year dividend of 26.0 cents. The full year dividend in relation to the 2010 year was 32.0 cents per share.

The final dividend was paid on 8[th] September 2011.

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RE-ELECTIONS

In accordance with our Articles of Association Steven McGregor and I retire from the board at this meeting. We are both eligible for re-election at this meeting and offer ourselves accordingly.

KORVEST PEOPLE

Korvest is fortunate to have a strong and dedicated team of people. The improved financial results are due to the work of all staff across the country and I am sure that all here today join with me and the Directors in thanking management and staff for their efforts over the past financial year.

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

I am pleased to report that as recently announced the first quarter trading results have shown a significant improvement on the results achieved in the corresponding period last year. This has been due to involvement in several major contracts which will be substantially completed by the end of the first half. As a result it is now expected that the operating profit after tax for the period to 31 December 2011 will be between 65 – 75% above the profit for the prior year first half. Excluding major projects the day-to-day business environment remains challenging.

The availability of major contracts in the second half remains uncertain and accordingly the Company does not provide any specific guidance in relation to the full year result. At this stage the Board expects the full year result to be ahead of last year and further guidance will be provided in January 2012.

SHARE BUY-BACK

Recently the Company announced an on-market share buy-back for up to 10% of the issued capital. The purpose of this was to give the board the flexibility to purchase available parcels of shares at times when the opportunity presented. This does not oblige the Company to purchase shares but the Board will keep the situation under review.

P.W. STANCLIFFE Chairman 21 October 2011

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