ANNUAL GENERAL MEETING STOKES LIMITED (SKS)...Appliance Service ØAppliances, Parts & Service Business; Ø Acquired appliance service business Aussie Whitegoods Rescue (AWR) June 2013.

ANNUAL GENERAL MEETING STOKES LIMITED (SKS)November 2013

Presented by Managing Director – Mr. Con Scrinis

Agenda

Ø Year 1 Success.Ø What we did V’s what we said.Ø Appliance Parts.Ø Appliance Service.Ø Industrial. Ø Technologies.Ø Financials Summary.Ø Capital Structure.Ø Trading to date & Outlook.

Year 1 Success

Numerous achievements to cap off successful first year under new board & management.

Ø Completed restructuring plan in year 1 on time & on budget, which included;Ø Acquiring 4 businesses,Ø Disposing 1 business,Ø Reduced staff numbers by 40%,Ø Removed a total of $2.4M in fixed costs representing 30% of fixed cost base.

Ø Added new product lines & revenue streams with; Lighting, Audio Visual & Service.

Ø Completed 2 capital raisings for a total of $4.3M providing stability & funding platform for growth.

Ø Upgraded companies IT systems & websites.

Ø Consolidated national warehousing into NSW.

Ø Strengthened senior management team.

Ø Negotiated new lease agreements at Ringwood & Riverwood resulting in significant cost savings.

Ø Set up platform for growth & profitability.

Year 1 Success Continued..

What we said V’s what we did

Ø Explore acquisition opportunities ✔Ø Grimwood Appliance Parts.Ø Aussie Whitegoods Rescue (service).Ø ANZ Appliance Parts & Service.Ø Janda Electric Co. Appliance Parts.

Ø Upgrade websites ✔Ø New Stokes corporate website.Ø New Stokes appliance parts e-commerce site.Ø New Stokes Technologies website.Ø Upgraded and converted AWR website to Stokes.

What we said V’s what we did Continued..

Ø Upgrade IT systems ✔Ø Moved to Exonet system company wide.

Ø Create e-commerce presence ✔Ø New Stokes appliance parts site.

Ø Re-locate Melbourne facility✔Ø Decision to stay at Ringwood on revised and improved terms.Ø Re-located AP warehouse from Ringwood to Sydney.Ø Consolidated Stokes Miranda NSW to Riverwood NSW.

What we said V’s what we did Continued..

Ø Exploit strong brand name & distribution network✔

Ø Added LED lighting products.Ø Added Audio Visual products.Ø Re-branded AWR to Stokes Service.

Ø Rationalise manufacturing & increase outsourcing✔

Ø Reduced manufacturing workforce by 60%.Ø Consolidated manufacturing into smaller area.Ø Replaced 40 manufactured products with import replacement.Ø Ceased production on 30 non-commercial product lines.

What we said V’s what we did Continued..

Ø Increase direct importing of components ✔Ø Import volumes increased by 80%.

Ø Streamline warehouse & logistics process ✔Ø Upgraded IT systems.Ø Consolidated into one national warehouse.Ø Reduced logistics workforce 60%.

Ø Add complementary product lines ✔Ø LED Lighting.Ø Audio Visual.

Appliance Parts

Ø Strengths;

Ø Largest independent distributor in Australia.

Ø Distribution in all states & territories.

Ø Fully owned subsidiary EDIS - exclusive Kleenmaid distributor.

Appliance Parts Continued..

Ø Acquired Grimwood, ANZ & Janda appliance parts businesses.

Ø Merged Stokes and EDIS onto one IT platform.

Ø Launched new e-commerce website.

Ø Targeting 20% on line sales in first year.

Ø Consolidated national warehouse into NSW.

Ø Expect further operational savings as new systems take effect.

Ø Expanding retail and trade counter in Ringwood.

Ø Appointed two new distributors in WA and Tasmania.

Appliance Service

Ø Appliances, Parts & Service Business;

Ø Acquired appliance service business Aussie Whitegoods Rescue (AWR) June 2013.

Ø AWR established 2009 which evolved from the former Kleenmaid service business.

Ø AWR now re-branded Stokes Service.

Ø Annual revenues of $1.5M.

Appliance Service Continued..

Ø 30 authorised service agents (ASA) Australia wide.

Ø ASA’s being fitted with company uniforms & signage on vans.

Ø Formulating training program to up skillASA’s

Ø Expecting rapid organic growth by leveraging off Stokes brand.

Ø Winning new contracts covering extended warranty &new brand representation.

Industrial

Ø Highlights;

Ø Industrial heating element manufacturer.

Ø Operates from Ringwood Victoria.

Ø Experienced engineering & manufacturing team.

Ø Major consolidation of operations in 2013.

Ø Reduced factory workforce by 60%.

Ø Business unit profitable since July 2013.

Ø Concentrating on new business via specification market.

Technologies

Ø Lighting & Electrical;

Ø Successfully set up the distribution & support

of LED lighting products & solutions.

Ø Developed new LED Products; NLight -

marketed to the high end lighting project

market.

Ø Completion of commercial projects

Ø Division will seek additional niche electrical

products.

Technologies Continued..

Ø Stokes Technologies Division;

Ø Introduced Audiovisual division.

Ø Amalgamated Lighting, Electrical &

Audiovisual under the NEW Stokes

Technologies division.

Ø Diversifying revenue streams & increasing

distribution of innovative technologies &

services.

Ø Developed new ‘AV Complete’ audiovisual

solutions & training courses for certified

installers.

Technologies Continued..

Ø Pioneering a suite of pre-

packaged audiovisual solutions

for the building &

construction market.

Ø Distribution of both

established brands & Stokes

proprietary brands.

Ø One company, one complete

audiovisual solution.

Technologies Continued..

Ø Stokes not only provide the pre-packaged

solution to certified installers; there’s..

Ø Engineering & integration support.

Ø Full catalogue of audiovisual products.

Ø Including ‘Stokes T-Control Android tablet

controller’ & ‘Stokes Wall Plate controller’ &

much, much more.

Financial Summary

FY 2013($’000)

FY 2012($’000)

Sales 12,765 14,250

EBIT (1,063) (1,237)

Interest 120 160

One off/Restructure (2,042) -

PBT (3,225) (1,397)

Normalised PBT (1,183) (1,397)

Financial Summary Continued..

6 mths to June 13 (‘$000)

6 mths to Dec 12 (‘$000)

6 mths toJune 12(‘$000)

Sales 6,363 6,402 7,427

EBIT (431) (632) (741)

Interest 53 67 69

Restructure (400) (1,642) -

PBT (884) (2,341) (810)

Normalised PBT (484) (699) (810)

Ø Half Yearly Financials

Capital Structure

Ø Current shares on issue 28.3M.

Ø Market cap @ 35c $10M.

Ø Major shareholders

Ø Note: pre-issue of Directors placement subject to shareholder approval.

Shareholder Percentage Share

JM Financial Group 19%

Con Scrinis 13%

Greg Jinks 13%

Peter Jinks 13%

Trading to date & Outlook

Ø Sales for first 5 months 17% higher than previous year.

Ø With re-structuring complete management will now focus resources on growing top

line sales whilst continuing to reduce operating costs.

Ø Big emphasis on Technologies division with a number of growth opportunities in

high margin business.

Ø Continue to grow & consolidate appliance parts & service business.

Ø Long term aim to be the leading provider of innovative appliance and electrical

products and service.

Leading provider of innovative appliance& electrical products and service.

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