Chairman’s Address Annual General Meeting Wednesday, 21 November 2007 Westin Hotel Sydney In my address to you in November 2005 I talked about market leadership, innovation and consolidation. Since that date little has changed – we have moved to consolidate the Cabcharge Group as market leaders and further developed our technology to underpin plans we have for the future. Our joint venture with Singapore based ComfortDelGro Corporation in purchasing Westbus, Hillsbus and Hunter Valley Buses in October 2005 – through our joint venture Company, ComfortDelGro Cabcharge Pty Ltd (CDC) – is proving to be one of the real success stories in Public Transport and leading the way with the NSW Government to improve services to the community of Western Sydney and the rapidly growing Hunter Valley Region. If you take the achievements made through our relationship here in Australia followed by our increased interest in the UK business in CityFleet and Computer Cab in London in 2006, it is quite awesome when you realise the position we have established in what is a relatively small period of time. I will obviously talk in some more detail on various sections of our business as I proceed on this journey today. I have an obligation to talk about the financial year 2007 and the contents of our Annual Report so let me just touch on the key points of our year’s work and then get on with the really important issues relating to the future, rather than just revisiting historical facts that are already well known to those who are really interested. Year 2007 was a great year for the Company: Net Profit After Tax increased 36% to $51.8m; Total Revenue increased 16% to $151m; Earnings per Share (diluted) increased 32% to 44.9 cents per share; For personal use only Total Turnover increased 16% to $1.025 billion; and Earnings Before Interest and Tax (EBIT) were up 36% to $72m. Analysis of performances shows a staggering Compound Aggregate Growth Ratio (CAGR) of – Page 1 Last Last 2 Years 4 Years NPAT 36.6% 26.1% EPS 34.6% 25.4% The Board of your Company are a genuine group of people who dedicate many hours on many occasions to chart the Company’s strategic development and progress. They, together with the Management and Staff and support of the Industry – both nationally and internationally – have forged a well-earned position in the ASX 200 list of Companies. The increase in earnings per share was 32.4%. The significance of the increase in the earnings per share is important. It shows that after several years of acquisition and growth, we have not slowed down and it underpins our confidence in the years ahead. More importantly for our shareholders, it allowed us to pay you yet another fully franked record dividend – this time 30 cents per share – which is a clear demonstration that we are able to grow and reward our shareholders at the same time. Overall, we have substantially outperformed the All Ordinaries Index for five consecutive years. Since our listing in 1999 we have seen a 900% growth in our share price and the dividends have exceeded the initial offer price. You will note that in past disclosures we have referred to litigation commenced against Cabcharge by another Meter Manufacturer. I am pleased to advise that the litigation was recently finalised with the claim against Cabcharge being dismissed. Cabcharge is about transparency. For some time Cabcharge has been in dialogue with Bank and Third Party Card issuers in relation to the long awaited Payment Card Industry Data Security Standards for the security of charge, credit and debit cards and we have done all we can at present with our GPRS EMV compliant equipment, along with the introduction of the Cabcharge eTicket to ensure that more and more transactions are authorised at point of sale. The importance of these standards is twofold. Firstly, more transactions will be processed electronically which of course has a flow on effect to Cabcharge, but just as importantly, the point of sale approval offers consumers further protection and creates further transparency within the Taxi Industry. The Growth of credit cards, both corporate and personal has continued as people strive to utilise the ‘online authorisation’ which provides accurate trip details for reasons of accountability. In addition the security issues for the Taxi Industry with the long term desire to minimise cash carried by drivers is very important. Our further development of technology For personal use only and acquisitions has provided us with the systems to offer security and compliance requirements and faster and better settlement procedures. We have also been recently holding discussions with Banks and Third Party Card Issuers in our continuous effort to drive down operating costs. We are pleased to advise that as a result of these discussions, we hope to be in a position to make an announcement about a Page 2 substantial reduction in operating costs which will see a solid increase in Cabcharge’s future Net Profit. In 2004 we introduced the Europa Taxi Meter to the market. Originally Europa was a subsidiary of the well known French based Ingenico Group, but earlier this year we purchased the Europa business and as a result, many synergies have already been realised. As a result, we now have our own in-house maintenance group to service some 19,000 EFTPOS units and also to work with agencies Australia wide for their installation, de- installation and re-installation as vehicles are regularly changed or added to fleets. This network of agencies when desirous of doing so, also look after our meters as well as those of other suppliers. We believe the popularity of the Europa Meter will continue to grow as a result of consumer demand for transparency. As there are more and more toll roads being built around Australia, the demand for point of sale explanation of toll charges also continues to grow, and consumers have also embraced the Meter’s capacity, via the Cabcharge EFTPOS equipment, to show details of pick-up and drop-off destinations as proof of any journey. Innovation will always be the aim of the Group as demands from all sectors of Public Transport are screaming for integration, accountability and the urgent need to maximise speed of getting passengers on and off transport in order to make the most of operating efficiency. This is evident as a result of the Queensland Government Transport Subsidy Scheme Contract which Cabcharge secured in March this year, and which is expected to be fully operational by the end 2007. ComfortDelGro and CDC: ComfortDelGro is the world’s second largest land transport company with a total fleet of 41,000 buses, taxis and rental vehicles. The Group is based in Singapore and is proving a wonderful partner. We have similar mindsets in driving increases in revenue from overseas operations. We share the same principles in corporate integrity and work together in a spirit of friendship and mutual trust. What a fantastic story the CDC operation in Australia is – it was only in October 2005 that we acquired a Company (the Westbus Group) that was under administration and suffering from lack of funds and low staff morale. Today (just two years on) the bus fleet has grown from 642 to 812 as at 1 October 2007. This growth of 170 vehicles has partly resulted from the acquisition of 29 vehicles when For personal use only acquiring the operations of Baxter’s Buses and 86 vehicles from the acquisition of Toronto Buses. The State Government approved the addition of 21 vehicles to operate the North- West Transitway which opened in March 2007, 29 vehicles to cater for increased patronage growth on the Hills to City services via the M2 and 5 additional vehicles for use in the Hills area. AGM 2007-Chairman's Address Final Page 3. The company has also been replacing its older vehicles with modern buses. To date the company has taken delivery 113 replacement vehicles in the period 1 October 2005 to 1 October 2007. These buses have been recognised by the industry through the award of the ‘Best Bus’ trophy by the Australian Bus and Coach publication and the NSW Bus and Coach Association. This replacement program, together with the fleet growth, has reduced the average age of the fleet from 14.06 years in October 2005 to 11.51 years at the beginning of October 2007. A further 107 vehicles are being delivered between October 2007 and June 2008. This will further reduce the average fleet age. The Company has also undertaken refurbishment of a 46 buses in the fleet. These buses, which will continue in service beyond the first 7-year term of the contract, are given a major overhaul and typically receive new internal linings and flooring, re-upholstery of seating, some air-conditioning, electronic destination signs and new paintwork. The average expenditure on each refurbishment is $30,000 and is funded under the contracts with the State Government. A further 288 vehicles will undergo refurbishment over the balance of the contract terms until 2012. Because CDC reports on a calendar year basis (in conformance with the reporting requirements of ComfortDelGro), it is difficult for shareholders of Cabcharge Australia Limited to see like for like performances. To give you a snapshot of CDC’s performance (as announced last week) the results for the third quarter ending 30 September 2007 were as follows: “ComfortDelGro Cabcharge Pty Ltd’s operations for the first nine months ended 30 September 2007 reported a revenue growth of 25% or $21.8m to $107.4m from $85.7m in the corresponding nine month period ended 30 September 2006.