AUSTOCK GROUP LIMITED

2013 ANNUAL GENERAL MEETING

CHAIRMAN'S ADDRESS

The 2012/2013 financial year has been one of accomplishment for Austock Group.
The Group has been restructured and simplified. It is now a clearly focussed business with a well-defined strategy. We have a fantastic asset in Austock Life and will continue to concentrate on growing its funds under management organically whilst also seeking out and appraising other avenues for growth and the enhancement of shareholder value.
We started the 2013/2014 financial year in a solid position with considerable confidence and we maintain that confidence today.
It is important that shareholders have a clear understanding of Austock Life, its products and its potential. To this end, I encourage all shareholders who are present today to remain after the conclusion of the AGM for Ross Higgins' presentation on Life.
The financial performance of the Group is in accordance with expectations. Austock has substantially lifted its commitment to business development and has done so within its clear aim of preserving cash. This should result in a small loss (after tax) in the current financial year but projections confirm that our strategy will prove beneficial in both earnings and capital value in future years.
The cash position of the Group remains strong. Cash on hand is currently $10.6 million, which after allowing for regulatory and other requirements, leaves us with "free" cash of around $8.4 million.
The Group paid a fully franked dividend of 1 cent per share on 1 October 2013, its second dividend since 2008. Your directors remain committed to a dividend program, however we must continue to balance the capital needs and expectations of Austock Life in making any decision as to the payment of dividends.
We commented in our Annual Report on the previous Federal Government's intention to phase out the PDF program over a number of years. Austock is yet to be notified of the timing of closure of the program and any transitional arrangements that may apply. The present Federal Government has not indicated its stance on the PDF program however we note there have been a number of non-legislative initiatives proposed by the previous Government which have not been pursued by the present Government.
I thank shareholders for their continued support.
FGA Beaumont QC
Independent Non-Executive Chairman

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