SAFEROADS HOLDINGS LIMITED — AGM Information 2012

Nov 20, 2012

Annual General Meeting Melbourne 21 November 2012

Welcome

The Board of Directors and the Management of Saferoads Holdings Limited are pleased to ZHOFRPH\RXWRWKH&RPSDQ\¶V Seventh Annual General Meeting

21 November 2012

ADDRESS BY GARY BERTUCH CHAIRMAN OF DIRECTORS

&+$,50$1¶6$''5(66

• Operating loss of $2.9 million mainly due to:
  • ¾ General downturn in economic activity
  • ¾ Significant losses in Civil contracting
  • ¾ Instability at senior management level
• Non-cash asset writedowns of $6.4 million
• Breach of bank covenants
  • ¾ Relationship with bank now more positive as debt reduction program has realised desired outcomes to date

&+$,50$1¶6$''5(66FRQWLQXHG

• New management team in place
  • ¾ Headed by founder, Darren Hotchkin
• FY2013 is a rebuilding phase for the company
  • ¾ Focus on core business and better promote our proprietary product offerings
  • ¾ Focus on operational efficiencies
  • ¾ Return to profitability
  • ¾ Look for new (profitable) growth opportunities
  • ¾ Reduce debt and associated finance costs
  • ¾ Restore and improve shareholder value

ADDRESS BY DARREN HOTCHKIN CHIEF EXECUTIVE OFFICER

FY2012 PERFORMANCE RECAP

• Reduced activity in the road construction industry due to reduced budget constraints
• Significant losses in Civil contracting
• Instability at senior management level
• Uncertain regulatory environment re: waterfilled temporary barriers
• Loss of EASI distribution agreement
• Profitable growth in Rentals offering

FY2012 PERFORMANCE RECAP

(continued)

• Focus on stabilising business operations
  • ¾ New senior mgmt team headed by founder, Darren Hotchkin
  • ¾ Focus on core business
  • ¾ Focus on operational efficiencies
  • ¾ Stabilised working capital requirements (stock replenishment, cashflow)
• Commenced debt reduction program

1st QTR FY2013 ACHIEVEMENTS

• Trading result for the quarter substantively in line with budget
• Strong cashflows generated from operations ensuring working capital needs are comfortably managed and met
• All financial covenants for the quarter were met
• Sale of head office site in Drouin for $1.5 million allowing reduction in core debt from $8.2 million to $6.7 million

CURRENT QTR FY2013 FOCUS

• Secured sale of Signals portfolio for $950k this month allowing further debt reduction from $6.7 million to $5.8 million
• Implement new business plan for go-forward Civil services (national) model
• Finalise transition of New Zealand operation to a distributor arrangement simplifying business model and minimising business risk
• Explore opportunities to expand our Rentals offering

LOOKING AHEAD ± FY2013

• Year of consolidation ± operational result significantly better than FY12 (excl. Asset sales)
• Significant restructure of National Civil operation
• Focus on core customer and product base
• Focus on profitable sales opportunities generating and maintaining positive cashflows
• Restore and improve shareholder value

Annual General Meeting

Proxies for Item 2

Proxies received for Item 2 ± Re-election of Mr Gary Bertuch

Votesin favour	3,838,649	57.96%
Votesagainst	189,225	2.86%
3UR[\¶VGLVFUHWLRQ	2,595,129	39.18%
Total votescast	6,623,003	100%
Abstentions	0	0

Proxies for Item 3

Proxies received for Item 3 ± Remuneration Report

Votesin favour	2,576,960	48.47%
Votesagainst	189,764	3.57%
3UR[\¶VGLVFUHWLRQ	2,550,129	47.96%
Total votescast	5,316,853	100%
Abstentions	59,500	-

Proxies for Item 4

Proxies received for Item 4

± Appointment of Grant Thornton as Auditor

Votesin favour	3,920,305	59.20%
Votesagainst	95,569	1.44%
3UR[\¶VGLVFUHWLRQ	2,607,129	39.36%
Total votescast	6,623,003	100%
Abstentions	0	-

QUESTIONS

Annual General Meeting