SCHOOLBLAZER LIMITED — Earnings Release 2013

May 8, 2013

Level 11 280 George Street Sydney NSW 2000 GPO Box 4406 Sydney NSW 2001 www.hgl.com.au P +612 9221 7155 F +612 9233 2713

HGL Limited abn 25 009 657 961

H1 2013 Result Update

The Board of HGL Limited (“HGL” or “Company”, ASX: HNG) today provides guidance on the Company’s interim financial result for the half year ended 31 March 2013.

Preliminary Result Overview

Revenues totalled $54 million, a decline of 10% on H1 2012. Gross margins remained resilient and constant on H1 2012 at 46%. Earnings before Interest & Tax (EBIT) are anticipated to be in the range of $0.8 million to $1.2 million, a reduction of approximately 70% on H1 2012. Reported and underlying profit for H1 2013 is estimated to be in the range of $0 million to $0.4 million (H1 2012: reported profit $1.2 million and underlying profit $1.3 million).

The reduction in revenues, excluding the sales of discontinued product, was caused by Anitech and SPOS, together these business units accounted for almost the entire decline in Group sales. While depressed economic conditions remain and impacted these businesses, internal performance factors also contributed to the decline.

Change Initiatives Underway for Anitech and SPOS

Driven by our new Chief Executive’s comprehensive review of all business units a number of key operational and performance issues have been identified in Anitech and SPOS. Transformation initiatives have commenced to address these issues including changes in key personnel and process improvements. Reorganisation and redundancy costs together with associated asset write downs in the range of $4.0 million to $5.0 million after tax are anticipated in the second half, all such charges will be excluded from underlying profit.

The Board believes these transformation initiatives will positively impact the current performance trend with anticipated annual expense reductions in the range of $3 million to $4 million before tax.

Group Strategic Initiatives

The Company has also identified a number of strategic development opportunities focusing on market share growth in selected business units, gross margin management, continued business process improvements, staff development and working capital reduction.

Further details will be provided later this month when the final results for March are released.

Peter Miller Chairman 9 May 2013 For further information:

Henrik Thorup, Chief Executive Officer, 02 9221 7155 or 0419 268 560

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