1,000 PRODUCTSENDLESS POSSIBILITIES

MISSION To provide industry with quality affordable raw materials, delivered through personalised service.

VISION To develop a network of customers and suppliers, where together we create mutual enduring value.

Annual Report 2017

TABLE OF CONTENTS

WHAT GUIDES USVALUESLeadership We’re entrepreneurial and embrace continuous improvement

Integrity We form open and honest relationships based on trust

Hard Work We relentlessly pursue our goals

Knowledge We know and understand our markets

Service We operate with a sense of urgency and discipline

Health & Safety We’re focussed on the safety of our employees and our communities

04Our Founder

Redox Locations 08

Our History 10

Timeline 11

Board of Directors 06

Sales Performance 13

Our Products 14

Logistics 18

Quality Assurance 20

Financials 25

22Our Greatest Asset

Environment & Community 24

Corporate Details 26

05Message from the Board

4 5

It is with deep sadness that we announce that Redox founder, Roland Coneliano passed away peacefully in April this year, aged 88.

A true Australian success story, Roland immigrated in 1965 and grew Redox from a small indenting agency to a powerhouse of the world chemical industry over the 50 years with him at the helm. Retiring in 2015 due to poor health, he still marvelled at the successes of the business he created and deeply appreciated the Redox staff who continue his vision.

He will be remembered for his indomitable work ethic, mercurial wit, boundless enthusiasm and innate ability to forge a deal.

A beautiful private commemoration was held to celebrate his life and accomplishments with his family, closest friends and long-time employees of Redox in attendance.

The Coneliano family thanks everyone for their well wishes which have been sent from around the globe, an indication of the high esteem in which he is held by business partners and friends.

Roland is survived by his wife, five children, fifteen grandchildren and eight great-grandchildren. Ten family members are currently employed at Redox and are dedicated to the future growth and success of the business with hundreds of years of combined experience.

Robert Coneliano who joined the family business in 1971 takes over as Chairman.

FOUNDER OF REDOX Roland Coneliano

1928-2017

OUR FOUNDER

MESSAGE FROM THE BOARD

Redox continues to grow each year setting new records, reaching a new peak in excess of AUD 546m. The strengthening Australian dollar has adversely affected the top line, nonetheless this result represents a modest sales revenue growth of 2.2% while quantity of product sold actually increased significantly.

Redox is ramping up its effort to become the preferred distributor of chemicals, ingredients and raw materials in the countries where we have established a presence. To this end, the number of people employed at Redox has grown substantially in the past 12 months, yet we are still looking for additional staff to help us achieve our aims.

The passing of our founder Roland Coneliano was a sad event this year. His relentless efforts to build a successful business from a standing start back in 1965 is a source of much of our enthusiasm and hope for the future. Facing and conquering hurdles that a lot of us can’t appreciate, Roland and the many dedicated employees have succeeded in Redox reaching the position of 33rd largest business of our type in 2016. In the 52 years since he established Redox, we have seen many competitors exit or merge, leaving Redox as the longest established distributor under unchanged ownership in our field. Staff and management is determined to continue his legacy of success via effort and dedication.

To provide more efficient and cost effective service to West Australian customers, Redox has invested a further $4.3m increasing our storage capacity by 7,500 pallets to 10,700. Investing in logistics infrastructure is a major point of difference between Redox and most of its competitors. A further and substantial investment is planned at our Minto (Sydney) site to accommodate state of the art manufacturing assets.

Our efforts in USA are gaining momentum thanks to efforts by our customers there welcoming a new and sizeable entrant into the business. Customers appreciate that our wide product range coupled with longstanding associations with selected suppliers give us the ability to ramp up competition in any market in which we deploy. We are also happy to announce that our Malaysian branch has reached breakeven point. Thank you to our staff, customers and suppliers for helping us reach this milestone. Unlike our competitors, Redox is able to start an operation in a new territory and grow the business organically as our founder has done.

The financial strength of Redox continues to grow. We currently have the capacity to finance twice the current turnover. Although our sales growth over many years has been impressive, the Board is currently looking for acquisition targets that will further boost our turnover and possibly also our product range.

Redox has for many years focused on maximising the efficiency of our staff so as to drive success and growth. To this end, a training system totally designed in house has been deployed to ensure that our people know what is expected of them and to teach them the best way to achieve success. Our IT systems are being enhanced each day to make our staff more efficient. Much of the mundane work is being done automatically and we are deploying more Artificial Intelligence on an ongoing basis.

I wish to thank our devoted staff at each of our 12 sites around the world for their efforts and enthusiasm. I am happy to report that our customers are continuing to support us by purchasing an ever growing range of products. Lastly and importantly, a big thank you to our suppliers without whom we would not have reached this level of success.

ROBERT CONELIANOManaging Director – Chairman05.09.17

6

BOARD OF DIRECTORS

Overseeing all aspects of the business, Robert is best known as a logical, visionary leader with priceless business acumen derived from his 46 years at Redox. Under his careful guidance Redox has progressed and modernized in all facets of operation through the use of systems, procedures and standardization.

Committee Member – Governance and Nominations, Environment, Audit and Risk Management, Remunerations and Appointments.

ROBERT CONELIANOManaging Director

Joining Redox in 1995, Richard has lead the development of the Redebiz ERP system and guided the implementation of various IT and telecommunications innovations which have allowed for the rapid expansion of the company. Richard has a keen eye for process improvement and an engaging communication style.

Committee Member – Corporate Governance, Audit and Risk Management, Environmental.

RICHARD CONELIANO Director / Information Technology Manager

Ian joined the Board in 2009 and brings to the Company 30 years’ experience as a Partner with Ernst & Young working with entrepreneurial companies, preparing them for growth, sale and the capital markets. He is also Non-Executive Director of CVC Limited, Kip McGrath Education Centres Limited and a partner of Allegis Group. His previous directorships include Greens Foods, Gloria Jeans and Young Achievement Australia.

Committee Member – Audit and Risk Management.

IAN H CAMPBELLNon-Executive Director

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RENATO CONELIANODirector / Marketing Manager

Renato joined the company in 1980 and started traveling in 1985, since then completing more than 60 trips, most of which have included China. As Marketing Manager he controls the Product Management processes at Redox, controlling open positions, reducing risks and ensuring that Redox has the market information that adds value to the supply chain.

Committee Member – Governance and Nominations, Sales and Marketing, Audit and Risk Management.

A skilled negotiator and relationships expert, Raimond has overseen the development of Redox’s largest bulk product lines and brokered the Company’s biggest trades over his more than 20 year career. He has lead the sales team through acquisitions, into new markets, new products and broke sales records.

Committee Member – Sales and Marketing.

RAIMOND CONELIANODirector / Sales Manager

Starting with Redox in 1983, Malcolm has carefully guided the progress of one of the most integral functions at Redox – warehousing and logistics. Mal has a wide area of responsibility and expertise ensuring Redox has the most efficient warehousing and most competitive shipping rates.

Committee Member – Environmental, Remuneration & Appointments.

MALCOLM PERRINSDirector / Logistics Manager

Possessing a wealth of ingredient Product Management and FMCG Sales experience, Ken has been an integral part of Redox’s success in the Food industry. He has also been instrumental in blazing our way into Asia through the creation of our Kuala Lumpur, Malaysia office.

Committee Member – Sales and Marketing, Governance & Nomination.

KEN PERRINSDirector (appointed June 2017)/ Industry Group Manager Food

MELBOURNE

SYDNEY

CHRISTCHURCHHAWKE’S BAY

AUCKLAND

BRISBANE

KUALA LUMPUR

PERTHADELAIDE

SALES OFFICE/ WAREHOUSEMANUFACTURING FACILITIES

LOS ANGELES

OUR LOCATIONS

SYDNEY - Corporate head office

HAWKE’S BAY

MELBOURNE

PLASTICS AND MELBOURNE MANUFACTURING

LOS ANGELES KUALA LUMPUR

BRISBANE

ADELAIDE

ADELAIDE

CHRISTCHURCH AUCKLANDPERTH

SYDNEY MANUFACTURING

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In 1965 the business was established to distribute chemical products, with a particular focus on Eastern European sourcing. Growth was slow but steady.

By the 1980’s we had diversified our sourcing to many other parts of the world but with geopolitical changes, Asian sources increased in importance.

As capital strength increased, stocks grew and investment started in a series of Redox owned storage and distribution centers around Australia.

In 1994 we established our first New Zealand operations. With steady growth and customer support, this has grown into a network of three branches servicing all parts of the north and south island.

Bulk importation of dry and liquid products commenced by the late 90’s. This enabled us to become more competitive with low priced commodities and made it possible to secure substantial increases in market share.

Established in Sydney as a partnership named C&K Industrial Traders.

The Company was incorporated in 1970, the same year sales passed AU$1 million for the first time.

Renamed “Redox Chemicals”.

Expanded to purpose built Botany facility.

Sales topped AU$5 million. Botany facility was expanded to cover all available land.

Sales passed AU$10 million per annum. Redox established an office in Melbourne.

Redox opened Perth office.

Faced with an exponential growth rate, Redox bought a one hectare site at Wetherill Park, Sydney.

Redox opened Brisbane office.

Redox opened Adelaide branch and Melbourne branch relocated to a larger site. National sales topped AU$25 million.

Revenue reached AU$40 million.

Phenomenal growth in sales funded a move into New Zealand, with 3 branches in service today.

OUR HISTORY

11

Our first foray into Malaysia was made in late 2011. Our Kuala Lumpur sales office is growing quickly and finding early success.

To augment our organic growth, two businesses were purchased in 2012.

The Bribros acquisition provides a strategic share of the plastic, foam and rubber market with a highly experienced and motivated team.

Deltrex adds two large pallet stores, bulk liquid storage facilities, dilution and mixing capabilities and a sales team with diverse experience across a multitude of industries.

To cope with our growing and evolving business, the Redox designed CRM and ERP system ‘Redebiz’ was deployed. The envy of our industry, Redebiz helps us manage all facets of our business, providing efficiencies and controls that allow us to fulfill our obligations in full and on time.

TIMELINE

ICIS Chemical Business Magazine has released their annual Top 100 Chemical Distributors list naming Australian based Redox as the 8th largest in Asia and 33rd largest worldwide based on 2015/16 revenue (A$534m).

6 hectares of industrial land was purchased in Minto, as it was clear Redox would outgrow the Wetherill Park site.

Completion of purpose built corporate headquarters and NSW distribution centre at Minto.

Expanded pallet space in Minto by 30% with the addition of a specialty food store.

Passed the company milestone of AU$100 million in net tangible assets.

New record of 289,000 metric tonnes sold.

A new site was secured for Redox’s Brisbane operations, measuring 2.3 hectares.

Redox acquires Deltrex and Bribros. Kuala Lumpur, Malaysia office established. Redebiz system launches.

Redox expanded into the USA.

Sales Exceeded AU$546 million.2017

1212

SALES PERFORMANCE

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500M AUD

400M AUD

300M AUD

0

600M AUD

200M AUD

100M AUD1

97

01

97

11

97

21

97

31

97

41

97

51

97

61

97

71

97

81

97

91

98

01

98

11

98

21

98

31

98

41

98

51

98

61

98

71

98

81

98

91

99

01

99

11

99

21

99

31

99

41

99

51

99

61

99

71

99

81

99

92

00

02

00

12

00

22

00

32

00

42

00

52

00

62

00

72

00

82

00

92

01

02

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12

01

22

01

32

01

42

01

52

01

62

01

6

Sales Record

546$M AUD

14 151515

OUR PRODUCTS

Redox constantly monitors changes in regulatory standards to effectively deliver competitively priced, high-quality, innovative products to the Nutraceutical and Pharmaceutical sectors.

HUMAN HEALTH AND NUTRITION

HUMAN HEALTH AND NUTRITION

Redox continues to add value to the supply chain with key relationships with Crop Nutrition, Horticulture and Protection sectors. We provide;

CROP PRODUCTION AND PROTECTION

Vitamins, trace elements and minerals

Improvers for broad acre and drip delivery,

Growth mediums for Horticulture and Potting soils

Herbicides, fungicides and other foliar applications.

CROP PRODUCTION AND PROTECTION

Constant interaction with nutritionists and regulatory bodies ensures that this division stays at the forefront of the Industry. We provide an extensive range of:

FOOD & BEVERAGE

Sweeteners and stabilizers Minerals and phosphates

Basic and functional ingredients Acidulants and preservatives

FOOD & BEVERAGE

Whether you are formulating a shampoo or sunscreen Redox have a wide variety of innovative commodity and specialty ingredients for the Personal Care specialist. Our current product range includes but is not limited to:

PERSONAL CARE

Emollients Emulsifiers Humectants

Solvents Sunscreens Surfactants

Thickeners Vegetable oils Preservatives

Specialty additives

PERSONAL CARE

WATER

Our detergent customers use our quality materials to manufacture products for Industrial, Institutional and Consumer markets. Clients in the sector are involved with everything from automotive washes, laundry, dishwashing, hard surface cleaners, hospital, food manufacturing, dairy cleaners and much more.

DETERGENTS

DETERGENTS

Redox is bridging the gap between the world’s premier ingredient manufacturers and stock feed producers throughout Australia, New Zealand, Malaysia and the United States. Our wide range of products also play a vital role in animal health and wellbeing in pet food (both wet and dry) and veterinary health markets.

ANIMAL HEALTH AND NUTRITIONANIMAL HEALTH AND NUTRITION

WATERFor the safest and cleanest water, we supply quality water treatment chemicals such as:

Flocculants pH adjusters Filter media

Scale inhibitors Fluoridation additives

Organophosphates and biocides Ion Exchange Resins

16

OURPRODUCTS

An integral supplier of raw materials used in the Surface Coating industry, including:

SURFACE COATINGS

Fillers Pigments Solvents

Oxides Amines Acids

Glycols and resins

Redox provides key products to service the lubricant and automotive industry with a leading position

in the Diesel Exhaust Fluid market.

LUBRICANTS

Our presence in the steel, refractory, smelter, galvanising, electroplating and other metals industry sectors give us the knowledge to help our clients achieve efficiencies

and cost savings in today’s competitive marketplace. Whether it’s a commodity item like Zinc Ammonium Chloride for your flux bath or specialized additives to reduce

splatter and explosion, Redox has you covered.

METAL

Our experience in mining chemicals, reagents and processing aids give us the knowledge to help our clients achieve efficiencies and cost savings needed in today’s competitive marketplace, from flotation agents to cyanide destruction,

Redox have reagents and products for your application.

MINING AND EXPLOSIVES

Redox are a leading plastics, rubber and foam distributor, active in:

Polymers – PE, HDPE, LDPE, LLDPE, PET, Polystyrene

Engineering plastics

Isocyanates Polyols UV monomers

and oligomers Flame retardants

Solvents Silane coupling

agents and a range of plasticisers

PLASTIC, RUBBER AND FOAM

Our specialty and commodity chemicals find use in every stage of hide

processing and textile manufacture.

TEXTILES AND LEATHER

1717

SURFACECOATINGS

LUBRICANTS

METAL

MINING AND EXPLOSIVES

BUILDING ANDCONSTRUCTION

PLASTIC, RUBBERAND FOAM

TEXTILES AND LEATHER

Redox products are utilized in the manufacture and treatment of:

BUILDING AND CONSTRUCTION

Glass Bricks

Concrete Insulation

Timber Fiberglass and more

18 19

LOGISTICS

The Redox logistics department coordinates the movement of over 20,000 20 foot containers annually, and synchronizes their movement with over 15 various shipping lines and agents. We pride ourselves on our 60 specialized storage sites that are strategically situated near intermodal container transfer nodes for efficient delivery.

Redox implements the road and rail movement of 436,787 tonnes per year via semi-trailers, bulk road tankers and a fleet of rigid vehicles.

We use the latest pallet software to monitor the movement of over 33,000 units on hire on any given day, and manage an additional 11,000 premium-quality, non-returnable pallets per year.

We employ over 130 people directly involved in the supply chain, and an additional support network of 182 others. The logistics team efficiently engages in duties such as shipping documentation, customs, brokerage, complete inter-port functions and warehouse management to ensure customer peace of mind and satisfaction.

33,033Freight quotes maintained at all times

436,787Tonnes sold

13,110Purchase orders

Suppliers active742

4,799 SKU’s

1,030Product groups active

20,068Shipping containers handled

130,476 Invoices

Redox has maintained an impeccable track record in logistics. Our in-house supply chain solutions are capable of costing and monitoring the movement of products with ease using an economy of scale and a broad range of activity.

20 21

Redox has established strong dynamic relationships with its clients and suppliers due to its commitment to quality assurance and regulatory affairs. As an ISO 9001 certified company, constant review and management through auditing and testing our processes ensures we maintain best business practices, while acting in accordance with the relevant industry standards.

QUALITY ASSURANCE

The Responsible Care Program administered by Chemistry Australia, which sees us tackle a wide range of issues including: Environmental Protection, Employee Health & Safety, Storage and Transport Safety, Product Stewardship, Community Right to Know and Sustainability.

Constant correspondence with suppliers on manufacturing and treatment processes required by the strict import regulations imposed by Biosecurity in both Australia and New Zealand.

Continuing efforts with authorities and the Australian Crime Commission to crackdown on the chemical manufacture of illegal drugs.

Procuring the Codex HACCP and FSSC 22000 Food Safety Management System Certifications to allow for the warehousing and supply of specialty ingredients for food and beverage related industries.

Improving the internal control systems that monitor our complex range of permits, including Dangerous Goods & Poisons Licensing, HSNO (NZ), quarantine import permits and Chemical Weapon & Illicit Drug Precursors and Kosher and Halal Certifications.

Monitoring and assessing our suppliers’ performance against selection criteria to build confidence in our supply base in order to reduce risk.

Membership of the RSPO, demonstrating steps towards commitment to sustainable palm oil.

This assurance is also achieved through our commitment to:

22

OUR GREATEST ASSET

23

24

ENVIRONMENT AND COMMUNITY

FINANCIALS

2017 2016SALES REVENUE $ 546,027,572 $ 533,984,601

CURRENT ASSETS

CASH AND CASH EQUIVALENTS $ 10,524,967 $ 17,081,713

TRADE AND OTHER RECEIVABLES $ 100,519,833 $ 86,565,980

INVENTORIES $ 121,757,269 $ 118,292,760

OTHER ASSETS $ 552,521 $ 532,454

TOTAL CURRENT ASSETS $ 233,354,590 $ 222,472,907

NON-CURRENT ASSETS

PROPERTY, PLANT & EQUIPMENT $ 89,752,109 $ 87,815,203

INTANGIBLE ASSETS - -

DEFERRED TAX ASSETS $ 2,273,945 $ 2,539,676

TOTAL NON-CURRENT ASSETS $ 92,026,054 $ 90,354,879

TOTAL ASSETS $ 325,380,644 $ 312,827,786

CURRENT LIABILITIES

TRADE AND OTHER PAYABLES $ 34,239,346 $ 35,432,195

BORROWINGS $ 15,591,131 $ 18,612,148

PROVISIONS $ 4,368,899 $ 4,894,540

CURRENT TAX LIABILITIES $ 4,364,960 $ 2,660,538

TOTAL CURRENT LIABILITIES $ 58,564,336 $ 61,599,421

NON-CURRENT LIABILITIES

DEFERRED TAX LIABILITY $ 8,499,446 $ 8,499,446

BORROWINGS $ 31,094,566 $ 28,093,683

PROVISIONS $ 2,503,643 $ 1,451,047

TOTAL NON-CURRENT LIABILITIES $ 42,097,655 $ 38,044,176

TOTAL LIABILITIES $ 100,661,991       $ 99,643,597

NET ASSETS $ 224,718,653 $ 213,184,189

SHAREHOLDERS EQUITY

CONTRIBUTED EQUITY $ 2,325,909 $ 2,325,909

RESERVES $ 21,803,006 $ 21,782,174

RETAINED EARNINGS $ 200,589,738 $ 189,076,106

TOTAL EQUITY $ 224,718,653 $ 213,184,189

Bringing total capacity to 500kW across 5 Australian sites, Redox will continue to install solar power generation systems as a practical environmental initiative that also lowers operating expenses.

The electricity generated will reduce CO2 emissions by 1,280,000kg per annum which is equivalent to:

During 2017 Redox completed projects to fit an additional 3 sites with photovoltaic solar generation systems.

5,380Computers

280Passenger cars

OR

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SYDNEY 2 Swettenham Road Minto, NSW 2566 Australia T: +61 2 9733 3000 F: +61 2 9733 3111 Email: info@redox.com Web: www.redox.com

HEAD OFFICE Managing Director - Chairman Robert Coneliano

Directors Robert Coneliano Renato Coneliano Malcolm Perrins Ian Campbell Richard Coneliano Raimond Coneliano Ken Perrins

Company Secretary Malcolm Perrins

Registered Office 2 Swettenham Road Minto, NSW 2566 Australia ABN 92 000 762 345

Dun and Bradstreet Ref. 75-114-3249

Auditors Deloitte Private Pty LtdEclipse Tower, 60 Station StreetParramatta NSW 2150

Solicitors Patrick Lim and Associates Suite 503, Level 4 Eastgardens Office Tower 152 Bunnerong Road Eastgardens, NSW 2036 Australia

CORPORATE DETAILS

26

@redoxtweet

https://www.linkedin.com/company/redox-pty-ltd

MELBOURNE 26-30 Gilbertson Road Laverton North, VIC 3026 Australia T: +61 3 9369 3355 F: +61 3 9369 3733 Email: Melbourne@redox.com

BRISBANE 776 Boundary Road Richlands, QLD 4077 Australia T: +61 7 3268 1555 F: +61 7 3268 1150 Email: Brisbane@redox.com

ADELAIDE 178-180 Cavan Road Dry Creek, SA 5094 Australia T: +61 8 8349 5299 F: +61 8 8349 4014 Email: Adelaide@redox.com

PERTH 27 Howson Way Bibra Lake, WA 6163 Australia T: +61 8 9418 8222 F: +61 8 9418 8204 Email: Perth@redox.com

AUCKLAND 11 Mayo Road Wiri, Auckland 2104 New Zealand T: +64 9 2506 222 F: +64 9 2506 226 Email: Auckland@redox.com

CHRISTCHURCH Unit 6A, 245 Blenheim Road Upper Riccarton, Christchurch 8041 New Zealand T: +64 3 357 8360 F: +64 3 357 8364 Email: Christchurch@redox.com

HAWKE’S BAY Unit 1, 27 Napier Road Havelock North 4130New Zealand T: +64 6 873 8870 F: +64 6 873 8871 Email: Hawkesbay@redox.com

KUALA LUMPUR Level 2, No. 8, Jalan Sapir 33/7 Seksyen 33, Shah Alam Premier Industrial Park 40400 Shah Alam Selangor, MalaysiaT: +603 5614 2111F: +603 5103 2097 Email: Kualalumpur@redox.com

MANUFACTURING DIVISION SYDNEY 144 Gilba Road Girraween, NSW 2145 Australia T: +61 2 9636 0700 F: +61 2 9636 0999

MANUFACTURING DIVISION MELBOURNE 7-11 Burr Court Laverton North, VIC 3026 Australia T: +61 3 9369 3355F: +61 3 9369 3733

PLASTICS DIVISION MELBOURNE 7-11 Burr Court Laverton North, VIC 3026 Australia T: +61 3 9699 6888 F: +61 3 9699 2244

LOS ANGELES3960 Paramount BoulevardSuite 107Lakewood, CA, 90712United States of AmericaT: +1 424 675 3200F: +1 424 675 3211Email: Losangeles@redox.com

REGIONAL & OVERSEAS OFFICES

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ABN 92 000 762 345www.redox.com

The Redox logo is a registered Trademark of Redox Pty Ltd.

As the use of the products described in this document is outside the control of Redox Pty Ltd, we make no representation or warranty concerning the suitability or fitness of those products for any purpose. It is your sole responsibility to ensure that the products will have the qualities and attributes that will make them fit for any purpose required of them, even if that purpose is made known to us at any time. This includes responsibility on your part to conduct in a timely manner all appropriate tests and quality checks on the products and any goods made from them. We disclaim any liability if any products are not suitable or fit for any such purpose. The sale and delivery by us of any of the products described in this document is subject to our Standard Terms & Conditions of Sale, a copy of which is available from our website or on request.

www.redox.com