Ann: Chairman's Address to Shareholders, page-21

some key points

We believe the outlook for FY19 remains positive. We expect room numbersto increase again from around 65,000 currently up towards 86,000 by yearend FY19. NPAT - $1.2 mil.

The Company expects advertising strategy launch to start contributingmeaningful revenue in FY19 and become a major contributor to EBITDA overthe coming few years. At this early stage we do not currently include anyrevenue in our explicit forecasts from advertising, however given its obviouspotential it does in our opinion justify the premium multiples that we believeSW1 should trade on.

We attended the company’s recent AGM in Bentley, and the Board reiterated that theCompany continues to perform as expected and they are not aware of any operationalissues that would explain the recent share price weakness.

The latestinnovation seems to be the launch of the ‘Lumiair’ App. This seems to be an onlineversion of Swift’s content offering. If launched successfully this would allow SW1 totarget not only smaller customers (who either could not afford or would not want thehardware and related infrastructure of the existing standard system), roll out to newcustomers quicker and cheaper (would only require a download rather than a fullsystem installation) and expand their geographical footprint (the App theoreticallycould be accessed across boundaries and markets).

We also view SW1 as an attractive takeover target for a larger Group focusing onsimilar sectors and clients. Significant potential also still exists for SW1 to grow itselfthrough further acquisitions, providing additional support for the upside to our targetprice.