MPR AUSTRALIA LIMITED — AGM Information 2012

Oct 29, 2012

TAG – THE POWER OF CONVERGENCE

Nathan Wise – Chief Executive Officer

Tag Pacific Limited Annual General Meeting 2012 30 October 2012

TAGPAC.COM MPOWER.COM.AU

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Strategically investing in power

YESTERDAY TODAY TOMORROW

TAG PACIFIC LIMITED

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YESTERDAY

Where we have come from

• Tag has been a strategic investor with diversified investments

• Strong balance sheet

• Focussed on transactions to generate shareholder value

• Track record of successful transactions

Emergence of power

• Opportunities in power have emerged thanks to convergence

• Tag identified and executed numerous power acquisitions

• Power investments have performed well

• In recent years our expertise and investments in power started to dominate

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TAG’S POWER SECTOR JOURNEY

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Early Control
Nikko Business Santon merges Westpower
investment in Systems
Equipment with McKenzie Rectifiers joins
Santon Consultants
Technology acquired acquired + Holland group
1980’s 1990’s
Bardic M+H Power
Advanced Project
Emergency becomes head
Power Electronics
Lighting operating
acquired acquired
acquired company
2005 2001
Awarded $5M M+H and
Awarded $32M Solaris
floodlight Advanced Power
Gorgon Technology
Australian army project for create MPower combined to contract acquired
2009 2010
Tag and
Large new
Platform set for a Awarded two MPower
premises
promising future Inpex contracts Integration
established
Proposal
2012 2011
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ONE YEAR AGO

This time last year…

• Transitioning from a strategic investor with diversified investments to a strategic investor with focussed investments

• Investment in iSoft had just been sold

– Proceeds of $1.8 million received in July 2011

• Investment held in Unique World and RecordPoint businesses

• 38% shareholding (equity accounted)

• Controlling 59% interest held in MPower

– Subsidiaries M+H Power Systems, Advanced Power, Solaris Technology

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“We are now an investment company strategically investing in power”

YESTERDAY TODAY TOMORROW

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A LOT HAS HAPPENED IN ONE YEAR

Since our last AGM…

• All non-power trading activities have been divested

• Unique World and RecordPoint businesses disposed of in December 2011 for $5.4 million

• MPower’s operating entities have been rebranded to MPower

• Advanced Power → MPower Projects M+H Power Systems → MPower Products (Australia) and MPower Pacific (NZ + Pacific Islands) Solaris Technology → MPower Solar Systems

• The successful completion of the Integration Proposal means that MPower is wholly owned by Tag

• Tag and MPower are now one group

• All MPower shareholders are now Tag shareholders

• Tag and MPower senior managers have formed one management team

• A single tax consolidated group has been formed

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NEW UNIFIED STRUCTURE

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Business
Services
Projects Products Solar Pacific
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TAG FINANCIALS – FY2012

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6.0c
Earnings per
share
$72.5m $17.8m
Revenue Total group cash
Financial
highlights
$6.9m
$4.3m
Operating cash
Profit after tax
flow
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SHARE INFORMATION

• 93.6 million shares on issue (ASX: TAG)

• 10 million listed options on issue (exercisable at $0.20) (ASX: TAGO)

• NTA per share of 35.4 cents at 30 June 2012 (before 5 cent dividend)

• Equity attributable to Tag shareholders rose from $12.3m to $27.0m in the 10 years to 30 June 2012

• Management alignment – circa 60% of shares held by senior management

12 month share price graph

Integration Proposal ex date for 5 cent announced dividend

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TAG PACIFIC LIMITED

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ABOUT US

Board

Peter Wise(Chairman)	Robert Moran
Nathan Wise(Chief Executive Officer)	Gary Weiss
Robert Constable	Richard Peterson
Gary Cohen	Darrell Godin(Chief Financial Officer & Company Secretary)

Shareholders

Anthony Australia (Wise family) Paul Sharp & associates KV Management (Nominees) 1,600 shareholders	ordinary shares	listed options
	38%*	50%
	14%	-
	7%	9%
	41%	41%

• Total relevant interest of 50%

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SPOTLIGHT ON MPOWER

• Reputation for delivering reliable power solutions for critical applications

• Presence across Australia, NZ and Fiji

• Established infrastructure

• 9 warehouses

• Circa 145 employees

• Diverse capabilities across all manner of power systems:

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• Turnkey projects

• Product distribution

• Design and engineering

• Installation and commissioning

• Asset management

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MPOWER’S OPERATIONS

Solar power systems

• Track record of designing and constructing solar power systems for commercial, industrial and residential applications

• Particular strength in remote off-grid power solutions

• Top Australian supplier of solar systems components

• Solar panels, inverters, batteries

• Significant expertise developed in power conversion and grid stability capabilities

• Pioneers of a remote Grid Stability System for a government utility

Power systems for the Oil & Gas sector

• Established reputation for reliability amongst global oil & gas giants

• Recently awarded two Inpex contracts against international competition

• Combined value of up to $20m

• $32m Chevron Gorgon contract successfully completed

• Large pipeline of prospects

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MPOWER’S OPERATIONS

Commercial power systems

• Large installed base of back-up power systems

• Service up to 60% of Sydney CBD’s back-up power systems*

• Recognised as a leading systems integrator

• Successfully delivered several trigeneration systems

• Experts in technically challenging circumstances

Distribution & wholesaling activities

• Established infrastructure across Australia & New Zealand

• Diverse range of power products

• Batteries, emergency lighting, portable generators, solar panels, inverters

• Mix of proprietary brands and third party products

• Internal estimate

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YESTERDAY TODAY TOMORROW

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NEW STRATEGIC DIRECTION

• An innovative company clearly focussed on power

• Aim to build diversified income streams from power-related activities

• Kick started by the successful Integration Proposal which received full shareholder support

• Plans to expand existing MPower activities and to move into new fields of endeavour beyond existing activities

• Capture the opportunities brought about by power convergence

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TAG’S REFRESHED LEADERSHIP TEAM

• A team of dedicated executives with a depth of experience and diverse skills

• Nathan Wise recently appointed CEO

• Previously Head of Corporate Development for 9 years

• Darrell Godin recently appointed CFO and Company Secretary

• 12 years of experience with Investec Bank

• Peter Wise continues as Chairman

• Guided by 5 non-executive directors with broad commercial experience

• Strong MPower operational leadership

• Paul Sharp → Managing Director, MPower Products Brian O’Malley → Head of Sales, MPower Products Anthony Csillag → Managing Director, MPower Projects Dwayne Lange → Head of MPower Solar Systems Billy Lavery → Head of MPower Pacific

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POWER CONVERGENCE

What does this mean?

• Power activities which were once separate and distinct are now converging

• The lines are progressively being blurred

• Examples include hybrid systems, demand management, distributed generation

Aligning our capabilities

• At the same time, activities that were once undertaken by individual MPower companies are now converging under Tag

• We are aligning our capabilities to the new trends that are emerging

• Potential to extract synergies from existing activities

• The aim is to ensure we are best placed to capture future opportunities

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POWER CONVERGENCE

Example – hybrid systems

• Australia has many remote communities that rely on diesel power

• These power systems can be supplemented with solar to create a hybrid system

• Adding a power storage capability and sophisticated control systems can increase solar viability

• In this way the various elements of the overall power system have converged

• Multiple areas of expertise are involved – previously this would have required a variety of suppliers

• MPower has the full range of capabilities in-house, giving it a distinct advantage

• Solar and diesel design and engineering expertise

• Access to solar, battery and inverter products

• Remote area installation expertise

• Power conversion, storage and stability experience

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POWER CONVERGENCE

Example – trigeneration

• Trigeneration power systems use gas powered generators to produce electricity, hot water and chilled water

• Lower carbon footprint than grid power leading to green star improvements

• Provide base load power on site – supplemented by power from the grid

• Backup power systems are usually also required

• There are multiple elements to the site’s overall power requirement

• The technology has converged and knowledge of each of the elements is needed

• MPower has the full range of capabilities in-house

• Site analysis

• System engineering and design

• HVAC intellectual property

• Control system and interconnection point expertise

• Installation, commissioning and maintenance

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GROWTH PROSPECTS

• Growth to be achieved in three ways

• Growth prospects are supported by Tag’s strong balance sheet

Organic growth

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Acquisitions

GROWTH

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Innovation

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GROWTH PROSPECTS

Organic growth

• Large pipeline of project opportunities following Inpex contract wins

• Greater leverage of distribution capability

• Focus on areas of convergence where synergies can be extracted

Acquisitions

• History of successful acquisitions

• Plan to target acquisitions that will deliver further competitive advantages

• Recently acquired DESMO intellectual property

Innovation

• Proprietary Grid Stability System

• Demand management solutions to alleviate pressure on power infrastructure

• Power Purchase Agreements / asset ownership / supply of power

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SUMMARY: THE NEW TAG

• Tag has been transformed as an investment company focused on the power industry

• Rejuvenated management team to target substantial growth prospects

• A company winning significant new contracts against strong international competition

• Continuing the history of Tag profits through investment in market driven innovation

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Phone +61 2 8275 6000 Level 30 Piccadilly Tower TAGPAC.COM Fax +61 2 8275 6060 133 Castlereagh Street MPOWER.COM.AU Email info@tagpac.com GPO Box 4032 Sydney NSW 2001 Australia

The material in this document has been prepared by Tag Pacific Limited (‘Tag’) and is general background information about Tag’s activities current as at the date of this document. The information is given in summary form and does not purport to be complete. Information in this document, including financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities and does not take into account your particular investment objectives, financial situation or needs.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectation with respect to Tag’s businesses and operation, market conditions, results of Strategically investing in power operation and financial condition. Tag does not undertake any obligation to publicly release the results of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual outcomes may vary in a materially positive or negative manner.