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Annual Annual General Meeting, Monday 27 th 27November, th 2017 2017 for for the the Year Year Ended Ended (53 (53 Weeks) Weeks) 2 July 2 July 2017 2017

1 Annual Annual General Meeting, Monday 27 th 27November, th for for the the Year Year Ended Ended (53 (53 Weeks) Weeks) 2 July 2 July Charlie Charlie McLeish McLeish Chief Chief Executive Executive Officer Officer Josie Josie De De Martino Martino Chief Chief Financial Financial Officer Officer

2 AGENDA About Pental Financial Overview Operational Update Outlook Questions 2

3 About 3

4 About Pental Pental brands deliver quality and expertise in home and hygiene products for today s lifestyle. Household products that are efficient and quality-tested to help families live better. Wherever you go in an Australian home today it would be odd not to find at least one Pental product. The Pental tradition of providing our customers with products of superior quality continues with constant product innovation and improvements. Pental trusted by families for generations. 4

5 Who We Are ~ Our Brands Personal Care House- Hold Cleaning New Zealand Laundry Fire needs Kitchen New Zealand 5

Pental People Board of Directors & Company

Independent Chairman Mel Sutton Non Executive

Independent Director John Etherington Non

Wells Non Executive Independent Director

Management Substantial Shareholders (1) Alan

6 Pental People Board of Directors & Company Secretary Peter Robinson Non Executive Independent Chairman Mel Sutton Non Executive Vice Chairman John Rishworth Non Executive Independent Director John Etherington Non Executive Independent Director Kimberlee Wells Non Executive Independent Director Oliver Carton Company Secretary Senior Management Substantial Shareholders (1) Alan Johnstone % Allan Gray Australia % John Homewood 12.6% Elevation Capital Management 8.5% Charlie McLeish CEO Josie De Martino CFO (1) As at 23 July

7 Our Business Pental Limited (ASX:PTL) Established 63 years ago Market Cap: $81 Million (1) Headquartered in Melbourne Asia 2% Manufacturing facilities Shepparton 90% of products - Soap plant - Bleach plant - Liquids and bulk liquids plant - Firelighters plant Supplemented by 3rd party contract manufacturing in NZ New Zealand 18% Distribution Channels ~4,000 supermarkets ~700 pharmacies ~300 petrol & convenience, corner & hardware stores Warehousing Warehouses: Shepparton (Vic), Christchurch (NZ), Auckland (NZ), Shanghai FTZ (China) and Ningbo FTZ (China) Australia 80% Gross Sales by Region (1) As of 2 July

Our Strategic Focus CONTINUE TO BUILD A SOLID PLATFORM FOR GROWTH DRIVE YEAR ON YEAR PRODUCTIVITY SAVINGS DRIVE INNOVATION GROW THE COMMERICAL AND

8 Our Strategic Focus CONTINUE TO BUILD A SOLID PLATFORM FOR GROWTH DRIVE YEAR ON YEAR PRODUCTIVITY SAVINGS DRIVE INNOVATION GROW THE COMMERICAL AND INDUSTRIAL CHANNEL GROW THE EXPORT CHANNELS Manufactured locally for Australia, New Zealand and Beyond FY17 Annual Investor General Presentation Meeting 8

9 Financial Overview 9

10 FY17 in Review FY17 in Review 7.4% Net Sales up (Gross Sales up 7.0%) 10.1% 28.7% Underlying EBITDA up to $11.9m Manufacturing Labour (net recoveries) down on 9.1% increased volume produced $1.8m Asia sales growing steady 3.2% Underlying EBIT up to $8.5m $1.1m Profit Delivery Projects 6.3% White King growth Improved profitability of NZ operations 5.1% Dividend Up 10

11 Key Financial Results $ 000 FY17 FY16 Change % Gross Sales (GSV) 117, ,980 7, % Net Sales 85,124 79,223 5, % Underlying EBITDA (i) 11,923 10,834 1, % Underlying EBITDA to gross sales (i) 10.13% 9.85% o Australia gross sales up 7.7% (Net Sales up 6.3%) o o o New Zealand gross sales down 1.3% (net Sales up 4.6%) Gross sales into Asia $1.8m HY1: $0.66m & HY2: $1.14m Bleach Filler breakdown caused stock shortage/ DIFOT issues. Profit impact ~$0.5m plus delayed new product launches Depreciation (3,376) (2,552) (824) Underlying EBIT (i) 8,547 8, % Underlying EBIT to GSV (i) 7.26% 7.53% Reported NPAT 5,850 5, % Basic EPS (cents) % o o o o Underlying EBIT & excluding FX losses (Gains LY) would be up 11.2% or $8.9m. ACCC Legal re: Flashable Wipes still ongoing EBIT up 3.2%, after increase depreciation of $0.8m capital investment Dividends up5.1% Dividend Per Share (cents) % (i) Before one-off: ACCC legal costs 11

12 NPAT FY16 Gross margin before trade spend Trade rebates & discounts Employee expenses Freight & distribution Marketing Development & Amortisation Other expenses & revenue FX (loss)/gain One off costs Finance costs Tax NPAT FY1 Financial Overview 12,000 10,000 8,000 Aust. Gross sales up 7.7% NZ gross sales down 4.6% (or 2.1% in NZD) Asia export steady grow Manufacturing Labour (after recoveries) down 28.7% Offset by Continuous Improvement Engineer, Sales support for new channels & manning for consolidated warehousing Additional depreciation from capital investment Outsourced Customer Service In field merchandising Occupancy costs on consolidation of warehouses LY Reduced R&D claim Effective tax rate 29.9% vs LY H1 31.5% - R&D adjustment 6,000 4,000 2,000 Trade spend increase in line with sales growth. At 27.7% of Gross Sales vs LY 28.0% Ongoing improvement in logistics even with increased sales volume Refocus activity in Promotional/ Trade spend & delayed launch of new products FX loss $385k vs $252k gain LY ACCC Dispute Legal Costs 5,628 4,073 1, ,850 12

Inventories 10,297 8,866 Trade & other payables (17,242) (16,659) Working capital 16,668 15,789 o ~$7.

13 Working Capital + Balance Sheet Net cash position of $11.7m o Nil debt Key Balance Sheet Items $ 000 FY17 FY16 Cash 11,660 12,335 Net assets ,177 Net debt / equity 0% 0% Working Capital $ 000 FY17 FY16 Trade & other receivables 23,613 23,582 Inventories 10,297 8,866 Trade & other payables (17,242) (16,659) Working capital 16,668 15,789 o ~$7.4m to be utilised to repurchase Shepparton property settlement occurred on 2 August 2017 o Major capital works to come Staged soap plant upgrade and non-bleach liquids Banking facility of $5 million o Substantial capacity to redraw more asrequired Solid operating cash flow of $6.6m, but $4.6 down on LY due to: o FY16 tax liability of $2.3m tax paid in FY17 & monthly payment of FY17 tax estimate o Increased working capital Working capital increased by $0.9m: o Increased safety stocks after DIFOT issues in second half o Increased stock to cover additional promotional activities in 1 st Qtr. FY18 13

14 Cashflow $ 000 FY17 FY 16 Change Cash from operating profit after tax 9,259 8, Decrease/(increase) in working capital & other (812) 857 (1,679) Increase/(decrease) in net tax liability (1,832) 2,138 (3,970) Cash flow from operating activities 6,615 11,259 (4,644) Capital expenditure (3,066) (6,148) (3,082) Dividend paid (4,224) (3,816) (408) Net increase/(decrease) in cash (675) 1,295 (1,970) Net cash position at end of year 11,660 12,335 (675) FY16 tax liability of $2.3m tax paid in FY17 & monthly payment of FY17 tax estimate Working capital increase mainly due to increased safety stocks after DIFOT issues in second half and additional stock to cover promotional activities in 1 st Qtr. FY18 Capital expenditure includes: o Completion of bulk line o Soap cutting and wrapping equipment o General replacement and upgrade of plant and IT equipment 14

15 Operational Update 15

16 For personal use only FY17 Operational Scorecard WIP Living Our Values: Safety Customers Innovation People Quality Eliminate low value activities & drive costs out Production Lines Efficiency Capital Work Progressively improving On track and continues to be a key focus Business case must be solid DIFOT Now back on track Preventative Maintenance Plant reliability needs to improve 16

17 Growing our Brands White King Soakers continue to grow strongly in Woolworths through the implementation of a new key pricing strategy 24.3% growth Strong Growth: White King 6.3% Toilet Cleaner 11.9% Household 5.9% *Source: Aztec Scan data, Value, MAT to 28/5/

18 Innovation White King Bleach Free Pental venture into non-bleach liquids with the launch of two new products 18

19 White King Original and the Best 19

20 Firelighters best performing Fire brands* Little Lucifer re-positioned to target the Foodie trend NEW Eco Fire Sticks 12 Pack Pental is the one and only firelighter manufacturer in Australia Little Lucifer and Jiffy are best performing fire brands in the grocery channel* *Source: Aztec Scan data, Value, MAT to 28/5/

21 Velvet Heritage Soap (Export) A vintage look inspired by our Heritage - since A range of botanical soaps enriched with essential oils Pental launched 3 new products into China promoting our brand heritage. 21

22 The Australian Country Life 5 pack Current New A premiumisation of the Personal Care category now reflected in The Australian Country Life 5- pack range. Simple, Authentic, contemporary & Naturally Australian! 22

23 Investing in New Zealand - Sunlight Growing profitable sales through product differentiation Sunlight has maintained it s strong position within the highly competitive NZ Manual Dish Wash Category and now leveraging of the brand to move into a new category for Pental - Dishwashing tablets New Sunlight 2 Litre Dishwashing Liquid 23

24 Investing in New Zealand - Janola As one of New Zealand s most trusted brands, Janola continues to grow its reach within New Zealand households with the launch of Mould & Scum Trigger Spray and In-bowl Toilet Hangers 24

Sponsorship Western Bulldogs White King s loudest fan Western Bulldogs Bulldogs cumulative audiences ranked #1 in AFL (almost double club average of 4.

25 Sponsorship Western Bulldogs White King s loudest fan Western Bulldogs Bulldogs cumulative audiences ranked #1 in AFL (almost double club average of 4.95 million) As reigning AFL Premiers there were more live broadcast of Bulldogs games on free-to-air TV in the 2017 season Cumulative TV audience and match attendance numbers are up 237% in 2017 compared to previous year Bulldogs played 8 Friday night games during the 2017 season on average, the most watched game of all in the current 2017 fixture by a whopping 155% Rise of AFL broadcast subscriptions allows for more replays available to more viewers i.e. greater viewer numbers overall 25

26 For personal use only Sponsorship Breast Cancer Foundation 2-year partnership with NBC to 31 October 2017 Help reach the goal of zero deaths from breast cancer by 2030 Through the sale proceeds of our NBCF partnership pink ribbon products such as Velvet, NBCF have received a total of $234,000 26

27 Asia Project Growing our presence in China & beyond: Gross sales into Asia $1.8m ( HY1: $0.66m & HY2: $1.14m) First container sent to Vietnam in June 2017 Creating a solid platform for Growth: Developed Chinese contract manufacturing opportunities & exporting! Direct relationships with Chinese retailers Developed good government relationships and using Free Trade Zones for warehousing and distribution - Shanghai FTZ and Ningbo FTZ (China) Built solid foundation - trade mark, authorisation by region, products, pricing, risk management with selective partners - following the correct procedures Focus areas: Speed to market Ongoing development of marketing and brand information for retailers & consumers Distribution in both channels: - E-commerce and Bricks & Mortar 27

28 Growing our brands online E-Commerce: 28

29 Commercial & Industrial Channel New range of industrial-sized cleaning products: 5 to 15 litres Long-term expansion objective into new channels with our power brands 29

30 Outlook 30

31 Our Outlook Strategic Focus Consumer & Customer Minded Field Support Quality Products Innovation Product Continuous Improvement Brands & Private Label Manufactured locally for Australia, New Zealand and Beyond FY17 Annual Investor General Presentation Meeting 31

32 Questions 32

33 Annual Thank General Meeting, Monday you 27 th November, 2017 for the Year Ended (53 Weeks) 2 July 2017 Charlie McLeish Chief Executive Officer Josie De Martino Chief Financial Officer

34 PENTAL 2017 Exporter Award Monday 27 th November,2017 Annual General Meeting, Monday 27 th November, 2017 for the Year Ended (53 Weeks) 2 July 2017 Charlie McLeish Chief Executive Officer Josie De Martino Chief Financial Officer

Jiangsu province: population 78 million, top 5 most

years old chemical products business, Silverstone

fully committed to marketing and selling Pental

sales of Omniherb branded household and cleaning

35 Jiangsu province: population 78 million, top 5 most developed provinces In China, apart from their 20 years old chemical products business, Silverstone created 2 totally independent sales teams: One is fully committed to marketing and selling Pental branded products; The other team is responsible for sales of Omniherb branded household and cleaning products, for which Pental contractmanufacturing 10 SKUs 35 35

36 Zhejiang province: population 56 million, top 5 most developed provinces One of the first Chinese distributors to assist launch Pental into China; A highly committed team in managing the growth of Pental products in the region; Successful launch and operation of White King Flagship Store on Kaola.com 36 36

37 Hebei province: population 73 million, near capital city of Beijing Owner of Lubei Cosmetics which has 25 chain stores; Full range of Pental branded products supplying regional supermarkets; Successful Butterfly Soap project, a win-win for both the consumers and effective factory waste management

TRUSTED BY FAMILIES FOR GENERATIONS. Pental brands deliver quality and expertise in home and hygiene products for today s lifestyle.

Manufactured locally for Australia, New Zealand and Beyond ANNUAL REPORT 2017 TRUSTED BY FAMILIES FOR GENERATIONS Pental brands deliver quality and expertise in home and hygiene products for today s lifestyle.