WATERCO LIMITED — AGM Information 2009

Nov 2, 2009

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WATERCO LTD A.B.N. 62 002 070 733 36 South Street, Rydalmere NSW 2116 P.O. Box 230, Rydalmere BC NSW 1701 Ph: + 61 2 9898 8600 Fx: + 61 2 9898 1877 www.waterco.com

Chairman’s Address to the Annual General Meeting 04 November 2009

Ladies and Gentlemen

You would have read the report on the 08/09 operations included in the Annual Report. At this meeting, instead of repeating these details, I would like to review the factors that influence the outlook for the new financial year 09/10.

We have just completed four months of trading in the new financial year and, with this, I would attempt to provide you with a view of our expectation for the full year.

Sales in Australia and New Zealand are ahead of the previous corresponding period. The Swimart stores have had a good start to the season, and expect to grow their business this year, underpinned by a strong publicity campaign, spearheaded by the new champion of our products, Ms Susie O’Neill, also known as Madame Butterfly for her achievements in past Olympics.

The Pool Building Market in Australia and New Zealand continues to be depressed in line with the general economy. There are some signs that some consumer confidence is returning to the market with pool builders reporting recent increase in forward orders. We have continued to launch new innovative products into the market. We have been pleased at the support for our new Hydrotuf pump range and LED pool lights. Both of these product ranges provide better value and continue to promote Waterco’s innovative approach to products.

In the Northern Hemisphere, in Canada, USA and Europe, we expect sentiments to be more positive, although subdued, compared to the same time previous year, which was at that time, the commencement of the global financial crisis. While it may be too early for any indicators to flow through, sales expectations are positive to‐date. With further restructuring in the new financial year in the North American Division, overheads have been reduced, moderating the loss situation in that division.

We expect to achieve a Profit After Tax of $3.0 million which is approximately 10 cents in earnings per share, for 09/10, mainly with improvement in profits from Australia and reduced losses in the North American Division.

I would like to thank Shareholders for their continuing support, and my fellow Directors, the Management and Employees for the efforts they have put in during the year.