SEAFARMS GROUP LIMITED — AGM Information 2012

Feb 23, 2012

CO₂

Our Ref: CO2 ASX Announce 2011 AGM Address to Shareholders (336)

ANNOUNCEMENT NUMBER 336

24 February 2012

Company Announcements Office
Australian Stock Exchange
4th Floor
20 Bridge Street
SYDNEY NSW 2000

By ASX Online
Number of pages: 13
(including this page)

Dear Sir

RE: ANNUAL GENERAL MEETING OF SHAREHOLDERS
CHAIRMAN AND CEO ADDRESSES TO SHAREHOLDERS

We enclose herewith a copy of the Chairman's and CEO's Addresses to Shareholders which will be presented at the Company's Annual General Meeting to be held at 11.30 am, on 24 February 2012.

Yours faithfully

Harley R. Whitcombe
Company Secretary

ENC

CO2 Group Limited
Level 11, 225 St Georges Terrace Perth WA 6000
PO Box 7312 Cloisters Square Perth WA 6850
Tel. 08 9321 4111
Fax. 08 9321 4411
ABN 50 009 317 846
www.co2australia.com.au

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CO2
Creating a better climate

CHAIRMAN'S OVERVIEW

The 2011 year witnessed significant progress on a number of important fronts.

Operationally, the company successfully executed its largest carbon sink development program to date; the operational foundation and processes established by our Management have provided your Board with a high level of confidence in your company's ability to significantly scale up our activities.

During the 2011 year, the regulatory landscape has changed positively with the passing of the Carbon Farming Initiative legislation in August and subsequently the Clean Energy (Carbon Tax) package of bills in November. The passage of this legislation is already beginning to result in increased sales opportunity; however I remind shareholders that the nature of our business means that our sales cycle is much longer than most companies.

Your company has placed increased strategic focus upon expanding its carbon offer in both the voluntary and compliance markets; the development of our environmental markets business which commenced trading in March 2011 has performed well and shareholders will see further expansion opportunities both in Australia and internationally during the 2012 financial year.

Financially the 2011 year Revenues increased by 28% to $35.4 million; earnings before interest and tax, depreciation and impairment (EBITDA) increased by $1.3 million to $2.7 million; long term contracted fee income has risen to in excess of $2.0 million per annum on a rolling twelve month basis.

Importantly, your company has no debt with cash at balance date being $17.9 million and the subsequent exercise of options in November increased your company's cash position to approximately $34.5 million as at November 2011.

In summary, your company is operationally sound and positioned for a significant expansion of our primary carbon sink business. The radically improved regulatory environment is providing an expanding sales opportunity; those factors coupled to your company's strong financial position auger well for its profitable growth.

Finally, your Board thanks our Executive and Management team for their efforts during 2011 and expect and anticipate a greater contribution to shareholders into the future.

Ian Trahar
Chairman
CO2 Group Limited

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CO2 Group Ltd

Annual General Meeting
24 February 2012
Presented by Mr. Andrew Grant, CEO

CO₂
Creating a better climate

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Agenda

1. Welcome
2. Financial and Operational highlights
3. Services overview and client base
4. Outlook

CO₂
Creating a better climate

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Welcome

2011 - A year of milestones

• Record financial performance
• Continued progress with new contract wins and expansions
• Significant expansion of business - now a broad based environmental services company
• $NZ10 million carbon sequestration project secured in New Zealand - Nov 2011
• Forest study contract secured with Tasmanian Government - Nov 2011
• Passing of Clean Energy legislation - Nov 2011
• Environmental trading division, Carbon Banc reports strong revenue growth - Oct 2011
• Passing of Carbon Farming Initiative - Aug 2011
• Launch of retail carbon offset platform, Yonderr - July 2011

CO₂
Creating a better climate

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Financial Highlights* FY2011

• Record revenue of $35 million - up from $27 million in PCP
• NPAT of $1.5 million
• EBIT of $2.2 million
• Earnings per share of .52 cents
• Record cash position at November 2011 - $35 million and no debt
• Business successfully diversified with new environmental services

• Corporate overheads stable at $6.5 million annualised

• Results are in comparison to a 15 month reporting period for FY2010 due to change in reporting period

CO₂
Creating a better climate

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Revenue and EBIT Trend

CO₂

Creating a better climate

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Operational Highlights FY2011

• 22,300 hectares of plantings now under management – up 25%
• All contractual obligations met
• Carbon growth across forest estate exceeding expectations
• Excellent vigour and health across forest estate
• Full compliance with regulatory schemes
• Carbon credits trading business launched - Carbon Banc
• Generated $11 million in revenue since March 2011
• Expansion of New Zealand business
• New investment in carbon forests
• Largest originator of carbon credits in NZ
• Launch of retail carbon offset business – Yonderr

CO2 is now Australia's leading diversified environmental services group

CO2

Creating a better climate

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Broad-based environmental services group

Carbon Sequestration

22,300 hectares of carbon sink plantings under management

Carbon Banc

Trading of carbon credits and renewable energy certificates

Yonderr

Retail carbon-offset platform

Environmental Services

Carbon accounting, inventory management, forestry management, mine site rehabilitation

CO₂
Creating a better climate

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Continued expansion of our Carbon Estates

CO2 now manages over 22,000 hectares of dedicated carbon plantings in Australia

CO₂

Creating a better climate

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A growing blue chip customer base

woodside

ERM
Power for generations

INPEX

origin

Tomago Aluminium

THE KANSAI ELECTRIC POWER CO., INC.

CITY OF SYDNEY

big day out

MACQUARIE

Santos
We have the energy.

wannonwater

ACTEW
CORPORATION

NEWMONT
The Gold Company

Eraring energy

Victoria
The Place To Be

RIP CURL

ANZ

Tasmanian Government

Creating a better climate

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The carbon market – untapped potential

Source: Treasury, 'Strong Growth, Low Pollution: modelling a carbon price - update', Commonwealth of Australia, September 2011.

SUPPLY

CO2 AUSTRALIA EMISSIONS OFFSETS

DEMAND

TOTAL PERMITS SOUGHT IN 2020 TO COMPLY WITH CLEAN ENERGY LEGISLATION

346 MILLION TONNES

CO₂
Creating a better climate

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A strong outlook

• Well positioned for growth with strong cash position
• No capital required for current growth excluding potential acquisitions
• Solid pipeline of new project opportunities
• Current growth has occurred in an uncertain legislative environment – future growth not dependent on changing policies/governments
• Similar growth rates anticipated for FY 2012
• New lines of business present significant revenue upside

CO₂
Creating a better climate