MPR AUSTRALIA LIMITED — AGM Information 2015

Nov 29, 2015

TAG PACIFIC LIMITED ANNUAL GENERAL MEETING 2015

Hilton Sydney, 488 George Street, Sydney 30 November 2015

TAGPAC.COM MPOWER.COM.AU

==> picture [62 x 33] intentionally omitted <==

Strategically investing in power

Strategically investing in power

Our mission is to invest in niche areas of the power industry to create and enhance value and achieve above average returns Our main investment is in a diverse range of companies and activities that have been brought together primarily to operate under the banner of MPower

The changing power sector presents attractive growth opportunities

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

2

==> picture [664 x 29] intentionally omitted <==

WHERE WE ARE – OVERVIEW

• Principal investment is MPower Group, a successful leader in quality integrated power systems and products

Tag Pacific MPower MPower Group MPower MPower MPower Strategically Business Projects Products Pacific investing in Services Leader in quality power integrated Power system Distribution of Power system Supports the power systems design & power system products and MPower and products construction products projects for NZ businesses and the Pacific

• As MPower evolves, it strives to shape opportunities in decentralised power to deliver maximum returns

• Historically power has been generated centrally and transmitted to where it is used

• Under a decentralised model, power is generated where it is used (eg rooftop solar), giving end users more control over their power needs

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

3

==> picture [664 x 29] intentionally omitted <==

WHERE WE ARE – OVERVIEW

A powerful platform

• It has taken longer and cost more than expected, but the significant investment to integrate the group has laid the foundation for future growth

• MPower represents a powerful base with exciting growth potential

• Broad and unique offering in the power sector

• A talented team with unmatched capability and experience

• Proven track record of delivering mission critical projects for top tier customers

• Focused on the disruptive nature of decentralised power

• off-grid power systems

• energy storage systems

• Continuing losses in some areas – ongoing margin pressures

• Focussed on increasing the scale of activity

• Seeking new opportunities to invest / partner

==> picture [128 x 77] intentionally omitted <==

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

4

==> picture [664 x 29] intentionally omitted <==

FY2015 RESULTS

FY2015 RESULTS	FY2015 RESULTS
$million Fullyear
Revenue	54.3
Tagstatutoryloss after tax	12.1
Add back significant items:
Restructuring& exit costs	3.2
Depreciation,amortisation,interest & head office costs	2.8
Non-cash non-recurringaccountingcharges	7.1
MPower EBITDA before significant items	1.0

==> picture [165 x 234] intentionally omitted <==

• The transition has been a costly and painful exercise

• Statutory loss includes two non-cash, non-recurring items totalling $7.1 million:

• Impairment against intangibles ($2.3 million)

• Reassessment of deferred tax assets ($4.8 million)

• Tax losses remain available for use in later years

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

5

==> picture [664 x 29] intentionally omitted <==

FY2015 RESULTS

• Legacy issues and a changing landscape presented greater challenges than originally thought

Major restructuring initiatives during FY2015

• Exited portable generator business (manufacturing and distribution)

• Ceased distribution of Pramac generators

• Focussed renewables activities on large scale solar and energy storage

• Sydney, Adelaide and Brisbane capabilities amalgamated

• Aligned engineering team to new areas of work

• Centralised distribution activities around core centres

• Reduced operating costs to align with future activities

• Comprehensive inventory review

• Total restructuring and exit costs of $3.2 million incurred

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

6

==> picture [664 x 29] intentionally omitted <==

BALANCE SHEET & CASH

• Balance sheet impacted by accounting write-downs and ongoing losses

• Total assets of $30.1 million at 30 June 2015

• Net tangible assets of 12.7 cents per share at 30 June 2015

• No development costs or IP capitalised

• Cash balance of $5.7 million at year end, after

• repayment of $1.4 million bank loan

• trading losses and restructuring costs

• $2.1 million capital raising announced today to help fund working capital requirements

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

7

==> picture [664 x 29] intentionally omitted <==

RECENT ACHIEVEMENTS

• Developed resources and expertise in large scale solar and energy storage

• More than $20 million in solar and energy storage projects secured since the start of FY2015

• 5.0 megawatt solar power project in Samoa

• 1.7 megawatt off-grid solar development connected to a mine site mini-grid

• 800 kilowatt landmark energy storage system

• Substantially progressed conventional oil & gas and mining work

• Inpex CPF, Inpex FPSO and Roy Hill

• Restructured distribution activities

• Reinvigorated and rebranded Bardic emergency lighting business

• Successfully implemented restructuring initiatives

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

8

==> picture [664 x 29] intentionally omitted <==

SPOTLIGHT ON SOLAR

==> picture [108 x 63] intentionally omitted <==

• The first of its size in Australia for a remote mining site

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

9

==> picture [664 x 29] intentionally omitted <==

==> picture [108 x 63] intentionally omitted <==

SPOTLIGHT ON SOLAR

==> picture [664 x 381] intentionally omitted <==

----- Start of picture text -----

•
$14 million Samoa solar project awarded in July 2015
•
Currently under construction
•
Largest solar project undertaken by MPower
----- End of picture text -----

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

10

==> picture [664 x 29] intentionally omitted <==

WHERE WE ARE GOING – VISION

MPower aims to be the distributed power supplier of choice

• To be industry specialists in distributed power systems for critical applications

• solar, energy storage, smart controls, diesel

• health, infrastructure, oil & gas, mining, utilities

• To have annuity baseload revenue plus project activity peaking revenue

• To offer packaged solutions that can be “designed once and reused many times”

• To use partnerships & alliances to differentiate our offering

• To be a results focussed, technically driven, innovative team

• To offer an “asset ownership” model that provides power as a service

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

11

==> picture [664 x 29] intentionally omitted <==

THEMES

Global and domestic themes supporting decentralised power

• High power prices

• Desire to use clean energy

• Continuing fall in the cost of renewables and energy storage

• Increased awareness of power needs and costs

• Desire to control or have certainty over power costs

• Supportive political environment

• Australia’s small population and large geography

• Plenty of sunshine

==> picture [204 x 445] intentionally omitted <==

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

12

==> picture [664 x 29] intentionally omitted <==

ENERGY STORAGE

• The potential disruption and impact of energy storage on power systems is widely acknowledged

• Energy storage benefits:

• enables power generated at one time to be used at another time

• reduces the inherent unpredictability of renewables

• improves levels of self-consumption

• Battery costs set to fall dramatically

• MPower is leading the way in energy storage

• major projects already completed or underway

• pipeline of new opportunities

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

13

==> picture [664 x 29] intentionally omitted <==

ENERGY STORAGE

BUILDING ON A SOLID FOUNDATION

Completed or underway

Coming up

==> picture [669 x 248] intentionally omitted <==

----- Start of picture text -----

TKLN PROJECT TRIALS
AUSNET LARGER
3 x grid stability systems Further residential,
10 x residential energy Hybrid solar & energy
(NT) electric vehicle &
storage trials (VIC) storage systems
$1.0 million mini-grid trials
off-grid energy
grid-connect off-grid energy grid-connect
storage integrating
energy storage storage energy storage
solar into mini-grid
HORIZON POWER QUEENSLAND 2ND GENERATION VIRTUALISATION
Hybrid solar & energy 800kw/h energy Energy storage systems virtual power plants &
storage (WA) storage facility with new technologies precinct power
$1.0 million $2.0 million and features opportunities
----- End of picture text -----

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

14

==> picture [664 x 29] intentionally omitted <==

ENERGY STORAGE – PRACTICAL CASE STUDY

Yungngora, Western Australia Project completed for Horizon Power in 2015

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

15

==> picture [664 x 29] intentionally omitted <==

HOW WE WILL GET THERE

Actions

• Aggressively targeting project opportunities

• Focussed on value-add projects aligned to MPower’s capability

• Improving marketing and business development capabilities

• opportunities to offer packaged solutions

• Seeking opportunities to increase the scale of activity

• both distribution and project activities will benefit from increased scale

Pipeline

• Strong and growing pipeline of prospects

• $200M in qualified opportunities

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

16

==> picture [664 x 29] intentionally omitted <==

CAPITAL RAISING 2015

• Pro rata rights issue announced today

• Shareholders entitled to apply for 11 new shares for every 20 shares held

• Issue price of 4 cents per share

• Tag to raise up to $2.1 million (before costs)

• Up to 51.4 million shares to be issued

• Funds will be used to meet ongoing working capital requirements, including funding the continued development of the company’s investments

• Anthony Australia Pty Ltd (Wise family) to take up its full entitlement ($773K)

• Full details contained in the Offer Document lodged with ASX today

==> picture [244 x 345] intentionally omitted <==

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

17

==> picture [664 x 29] intentionally omitted <==

SUMMARY

• Tag is strategically investing in power

• Significant restructuring and one-off events in FY2015

• A platform for growth has now been built

• Improved performance requires increase in scale of activities

• MPower aims to be the distributed power supplier of choice

• Global themes point to major future growth in decentralised power

• Actions are being taken to capture the opportunities

• Growing pipeline of upcoming work

• Capital raising underway to fund ongoing working capital requirements

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

18

==> picture [664 x 29] intentionally omitted <==

APPENDIX: SHARE INFORMATION

PRE – RIGHTS ISSUE ANNOUNCED ON 30 NOVEMBER 2015

• 93.7 million shares on issue (ASX: TAG)

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

• NTA of 12.7 cents per share at 30 June 2015

Shareholders

Shareholders
	ordinary shares	listed options
Anthony Australia (Wise family)	37%*	50%
Sharp & associates	14%	-
KV Management (Nominees)	7%	10%
1,550 shareholders	42%	40%

• Total relevant interest of 50%

TAG PACIFIC LIMITED – ANNUAL GENERAL MEETING 2015

19

==> picture [663 x 346] intentionally omitted <==

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.