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29 May 2014 Energiser Investments plc ("Energiser" or the "Company") Final Results for the Year Ended 31 December 2013 CHAIRMAN'S STATEMENT INTRODUCTION I am pleased to write my first report to shareholders following my appointment as Chairman on 4 December 2013. There has been very little activity in the Company in recent years. Various corporate transactions were under negotiation which did not proceed, however they did take up a considerable amount of management time and resource. Similarly, an investment in a potentially revolutionary new high powered motor was written off as it became apparent that there were significant flaws in the concept. A decision has now been made to focus on the property sector and, in particular, the provision of mezzanine funding to small, experienced housebuilders. Since the very difficult period in the economy and the banking crisis, banks have remained very cautious in their lending policy to smaller housebuilders and require the developer's own contribution to be injected into the project prior to the banks' own capital being drawn down. There is therefore a "gap" in the market for providers of such finance to housebuilders that are having difficulty securing funding for high quality residential development opportunities in the South East of England where housing demand is strongest. I am pleased to report that Energiser, via its subsidiary Cedar Green Homes Limited, has secured its first opportunity in this field. The Group has committed to inject up to GBP2.6m into a development of 12 units under construction on a spectacular site at Kingswood Park, Surrey. The development of 9 houses and 3 apartments is expected to generate a gross development value of over GBP8.5m. We have procured funding for this commitment from a number of investors who will be paid a coupon of 10% on the funds invested. In the current climate of low returns on bank deposits, this interest rate is an attractive return for these investors. Their investment is secured by way of a second charge over the property behind the senior debt provider. Energiser is entitled to 50% of the net profit of the development including a "priority return" of GBP785,000, subject to the development making sufficient profit, before the developer receives its share of profit. Construction is now well under way with the first sales expected by the end of the current financial year. The Directors are evaluating other such proposals and believe that this new strategy will provide a substantial revenue stream to the Company and will re-build shareholders' funds. RESULTS Our residential development in Wellingborough generated gross rental income of GBP147,000 (2012: GBP149,000) and, after associated operating costs, resulted in net