MAXIPARTS LIMITED — AGM Information 2017

Oct 19, 2017

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20 October 2017

Australian Securities Exchange Company Announcements Office 20 Bridge Street SYDNEY NSW 2000

Dear Sir / Madam,

Chairman’s Address

In accordance with ASX Listing Rule 3.13.3, please find attached a copy of the Chairman’s Address to be presented at today’s Annual General Meeting of Members of the Company.

This address also contains a trading update.

Yours sincerely,

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Campbell Richards Company Secretary

MaxiTRANS INDUSTRIES LTD (ABN 58 006 797 173) 346 BOUNDARY ROAD DERRIMUT VICTORIA 3030 AUSTRALIA TELEPHONE: +61 3 8368 1177 FACSIMILE:+61 3 8368 1178

CHAIRMAN’S ADDRESS TO ANNUAL GENERAL MEETING

11:00 am, Friday, 20 October 2017

Good morning, my name is Rob Wylie and it is my pleasure to welcome you to the 2017 annual general meeting of MaxiTRANS Industries Limited.

As we welcome Dean to his first MaxiTRANS’ AGM, you will be aware, Michael Brockhoff retired from the Company earlier this year after 17 years as Managing Director. On behalf of the Board, I would like to take this opportunity to thank Michael for the significant contribution he has made to the Company. He has left the Company in terrific shape and it’s now poised for further growth under Dean’s leadership. I would also like to thank Michael and Dean for the smooth transition of leadership , it is a credit to them both.

Dean’s appointment is the latest in a deliberate Board strategy of ensuring fresh and innovative thinking, as well as diversity, is brought to the Board and executive team. The Board believes that Dean is well qualified to lead our company to new heights .

As we have done in previous years, I would like to share with you a brief overview of the current position of our Company and our broad strategic direction. Following this our Managing Director, Dean Jenkins, will discuss the operational performance of the Company for the 2017 financial year.

Since 2014, there has been a renewal of more than half of the Board and most of the executive team.

With Dean’s appointment, it was an opportune time to review the current strategic direction for the Company. We must ensure we have a cogent strategy that will deliver long term sustainable growth and superior returns for our shareholders.

We are still seeing general business confidence in Australia languishing as customers are reluctant to make capital equipment buying decisions, particularly in the general freight sector. Notwithstanding the low interest rate environment and the average age of the Australian trailer fleet continuing to increase, this of itself is not enough to encourage general freight operators to upgrade to more safe, reliable and efficient equipment. The

most recent Westpac Melbourne Institute Index of Consumer Confidence shows that consumer sentiment is marginally positive for the first time in 12 months, yet is below the long run average. The outlook for economic conditions in the next 12 months improved the most of all of the sub-indexes, yet is still negative over the next 5 years. The outlook for interest rates is likely to be stable in the short term, although there are differing view of this. These mixed indicators could be worrying businesses around the sustainability of the current strong conditions. Accordingly, we must ensure we have a strategy that delivers growth despite the current Australian economic climate.

As the leading provider in our markets, our purpose is to partner with operators in the freight transport business to improve efficiency and effectiveness and to reduce operator risk. Our strategy to achieve this focuses on the delivery of initiatives across three horizons:

• Firstly, in the short term, we are focussing on improving our current operations. As you know, we have previously undergone various continuous improvement activities within our manufacturing operations. We are broadening the scope of these activities to optimise our end-to-end business processes, including completing the upgrade of our Company-wide core IT systems and leveraging our scale to further optimise supply chain synergies across the business.

• In the short to medium term, we will be focussing on delivering growth in our existing markets. This will include a focus on customer-centric product innovation and various initiatives aimed at growing share in our current markets of trailer sales, after sales support and servicing as well as spare parts sales. I am delighted that we are now partnering with Monash University and Federation University to develop new solutions to improve the safety, efficiency and reliability of our products.

• Over the medium to long term, we will deliver on a series of growth initiatives aimed at accessing new markets. As you will be aware, almost 90% of our business is exposed to the movement of product in the Australian economy. To deliver on long term sustainable growth, we need to diversify our exposure to different markets and economies. Accordingly, we will be pursuing a number of initiatives including in China and South East Asia as well as new opportunities in Australia and New Zealand.

We will only be able to deliver on these initiatives if we build an enabled, proud and empowered team who will grow our organisation in accordance with an aligned set of values and behaviours. Accordingly, overarching these initiatives is a comprehensive program of people development and engagement to ensure we are building a highperforming organisation.

It is important that we communicate with our various stakeholders as to the delivery of our strategy. Accordingly, we are developing a targeted program of improved communications to ensure clear and consistent messaging.

As we look to the future, we will also be focussing on the appropriate capital structure for the Company. We have recently signed new banking facilities with CBA and HSBC Banks for the next five years and we look forward to their support. Our strategy will require capital investment over the next five years and we will review the various avenues of accessing capital, hence the special resolution to provide the Board with the flexibility to reinstate the dividend reinvestment plan. However, we must balance this with shareholders’ desire for dividend returns. In this respect, I am pleased to report the total dividends for the year to 3.5 cents per share, up from 3.0 cents per share the year before.

I would like to take this opportunity to thank all of our more than 1000 staff of MaxiTRANS for their dedication and hard work. It is great to see that through their efforts and commitment to the MaxiSAFE programme, MaxiTRANS is an ever safer place to work.

I would also like to thank our customers, suppliers, and shareholders for your continued support.