SIETEL LIMITED — AGM Information 2021

Jan 21, 2021

==> picture [74 x 53] intentionally omitted <==

SietelLIMITED ACN 004 217 734 Incorporated in Victoria

Sietel Limited

Annual General Meeting of Shareholders

Held at the Company registered office commencing 12:00 pm Friday 22 January 2021

Chairman’s Address

Shareholders, Ladies and Gentlemen

The Board of Directors and staff welcome you all to this year’s Annual General Meeting.

I refer you to the Annual Report and more specifically the Directors’ Report and Financial Accounts.

Rather than repeat the information already contained in the Annual Report I now limit my current comments to a few matters which I consider are of interest to shareholders.

The Group Operating Profit before tax of $1,804,690 shows a 5% decrease over the previous year (2019 $1,891,750). Sietel Limited’s Operating Profit before tax decreased by $421,753 during the financial year caused by the onset of the pandemic which adversely impacted on revenues received from ASX listed investments via dividends and rental income as a number of tenants either terminated their tenancies or applied for relief in accordance with state government emergency legislation.

This decrease experienced by Sietel Limited was partially offset by an increase in Operating Profit before tax by Cook’s Body Work’s and a reduction in Alliance Appliances Australia losses, which equated to $162,963 and $175,518 respectively.

The listed ASX company share portfolio has been expanded via participation in dividend reinvestment plans and modest purchases generally in existing top 200 listed companies.

The Group’s investment in all ASX shares if sold at 30 Sep 2020 would have resulted in a gain of $2,042,988 when compared with the original aggregate cost of this investment (2019 $6,686,698 gain). The decrease equal to $4,643,710 is the continued reaction to the impact of COVID-19 and the resultant volatility in the share market.

Cook’s Body Works operated during the government lock down periods but has experienced price discounting from competitors and reduced demand by customers as they assessed the impact of the pandemic and government restrictions. The Federal and State Government measures to reduce the impact of the pandemic was applied for and in most part forthcoming with a contribution to the Group revenue of $503,000.

Australian regulations and conditions continued to limit expansion by AAA in the gas and electric water heater business. A review of overheads including staff levels in light of achievable turnover has been implemented and in part and along with Government initiatives assisted in a reduction in operating losses.

Address: 140-144 Cochranes Rd, Moorabbin, Victoria, Australia Postal Address: PO Box 1195 Moorabbin, Victoria 3189 Telephone: (03) 9553 5740 Fax: (03) 9555 2662

Sietel Limited ACN 004 217 734 ABN 75 004 217 734

SietelLIMITED ACN 004 217 734 Incorporated in Victoria

==> picture [74 x 53] intentionally omitted <==

The Directors valuation of all real-estate held be the Group at 30 September 2020 and associated estimate of the unrealized gain over book value is detailed in note 9 to the Financial Accounts.

The Group continued to expand and increase its holdings in unlisted investments with the objective of providing some exposure to relatively new businesses which it is believed can provide potential for above average returns as offered by larger and more established businesses. The Board appreciates the higher risk of failure associated with investment in this sector so has adopted a policy of limited quantum and a wide spread of businesses and industries.

A table of the top fifteen listed investments held by the Group as at 30 September 2020 is included as note 33 to the Financial Accounts

The group’s cash position has increased in 2020 to a balance of $3,089,011 (2019 $1,678,848). The company’s resources provide for investment opportunities if market conditions move against vendors in areas of interest to the group or if opportunities provide management with room for expansion in the group’s operating businesses.

We have not paid an ordinary dividend this year. The Board continues to espouse their policy of using retained earnings for investment in assets and or businesses considered advantageous to maintenance of long-term growth in shareholder value as reflected in share price and asset backing of the company’s issued shares.

The policy of re investment of profits has been a major feature of the company for many years. This policy remains subject to review, where, for example, a distribution would not restrict the ability of the Group from taking advantage of opportunities for further strategic investments and expansion.

Sietel Limited’s revenue from real estate leasing operations has continued to be adversely impacted in the financial year commencing 1 October 2020 and it is anticipated the situation will take twelve to eighteen months, at least, before returning to more normal conditions.

Similarly, the recovery period for Cook’s Body Works will be impacted throughout the 2020/21 financial year and with the pending staged withdrawal of government assistance, management is faced with a difficult period.

I would like to thank management and staff for their efforts over the past twelve months and look forward to steady growth over the coming years.

==> picture [111 x 64] intentionally omitted <==

Mr Geoffrey L Rees Chairman of Directors Sietel Limited

Address: 140-144 Cochranes Rd, Moorabbin, Victoria, Australia Postal Address: PO Box 1195 Moorabbin, Victoria 3189 Telephone: (03) 9553 5740 Fax: (03) 9555 2662

Sietel Limited ACN 004 217 734 ABN 75 004 217 734