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FY14 INVESTOR PRESENTATION

18 September 2014

CEO/MD – Mark Newman

CFO – Kevin Fine

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Group Highlights – company invests to grow

FY14 (1)

($ M)

FY13 (2)

Continuing

($ M)

Change

Revenue 124.9 99.5 +26%

Net Margin (%) 62.5% 67.2%

Total Expenses (%) 51.3% 55.9%

EBITDA 18.8 17.1 +10%

EBIT 13.3 11.9 +12%

EBIT Margin (%) 10.6% 11.9%

NPAT 8.3 7.1 +16%

EPS (cents) 20.2 17.5 +16%

DPS in cents & Fully franked 16.0 50.0

Group Like for Like Sales Growth (%) +8% -4%

Beginning of transformational investment stage

- Oroton brand transformation process began

- Gap brand traded for 9 months since November 2013

- Brooks Brothers joint venture launched February 2014

- 1st year of post Ralph Lauren era

Group Revenue up 26% to $124.9m

- Positive like for like sales of +8% in Oroton

- GAP sales for 9 months trade

- Brooks Brothers numbers not included due to JV equity accounting

Net margin declined to 62.5% due to:

- Oroton – continued discounting, price reductions and changes to product and

channel mix

- GAP – higher volume, lower margin business

CODB improved to 51.3% of sales (FY13: 55.9% ) led by:

- Leveraging the Head Office infrastructure to operate the two new brands

- Tight focus on expense control across the business

- Offset by early start up costs for GAP and Brooks Brothers

EBIT increased by $1.4m to $13.3m

- Includes establishment costs/losses for GAP and Brooks Brothers and further

investment in Asia

EPS up 16% to 20.2 cents

- Current effective tax rate at 37.3% due to non-deductibility of international

losses (FY13: 36.2%)

DPS of 16.0 cps

- The Board has declared a final fully franked dividend of 8.0 cps taking the full

year dividend to 16.0 cps

- This compares with a FY14 dividend of 50.0 cps which included the benefit of

the Ralph Lauren business with a reported EPS of 67.2 cps for the period

(1): Includes GAP brand from November 2013 & equity accounting for Brooks Brothers JV

(2): Continuing operations only. Excludes Ralph Lauren business discontinued from 30 June 2013

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Oroton – Strong growth as transformation opportunities identified

Like for like sales +8% (FY13: -4%) with H1 +3% and H2 +14%.

• Year of consolidation and self reflection

• Strong sales performance through consistent promotional plan

Strategy to elevate the brand to a true attainable luxury positioning commenced with:

• Negotiation of Rose Byrne as the celebrity face of the brand from August 2014

• Development of new store concept showcased at our flagship store QVB, Sydney and a new store at Emporium, Melbourne in August 2014 and a further 6 stores planned in FY15. The new concept is already showing positive sales results

• Product and price architecture designed to increase average selling price and average transaction value

Oroton online continues to grow and represents ~10% of brand sales

Margin decline driven by:

• continued discounting, particularly over the peak Christmas and New Year trading period as prior year promotional calendar followed

• retail price reductions in H1-14 without commensurate cost reductions which was reversed in H2-14

• changes to both product and channel mix

• FY15 to focus on reversing this trend and on quality margin generation through higher average selling price, less discounting and lower costs

Continue to review store network for opportunities to relocate in key centers and continue to review and close non performing stores

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Continued momentum in Asia

- Strong double digit like for like sales growth

- 5 new stores opened during the year, 2 in China, 2 department store

concessions in Singapore and a franchised store in Dubai. We

closed one underperforming store in Singapore (Marina Bay Sands)

at lease expiry

- Continue to review current stores performance vs. key metrics

- Total number of International stores is now 11:

5 x Malaysia

3 x Singapore

2 x China

1 x franchised store in Dubai

- Wholesale continuing to grow and includes business with

Singapore Airlines, Kuala Lumpur International Airport and Middle

East Distributor

Net international losses of ~$3.4m (FY13: $2.0m) driven by the

investment to open the new China stores, offsetting good results in

Malaysia which is now cash-flow positive

FY15 focus on consolidation and reducing losses overall and growth in

Singapore. We have signed a new store at Vivo City (Singapore) to

open in December 14 and are reviewing other department store

concessions opportunities

Continuing discussions with potential distribution partners for other

markets including China

Oroton International

Shanghai - Kerry Centre Store

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Rose Byrne as the celebrity face of the brand to lift our

brand position

Long term partnership with Rose Byrne as the face of Oroton

Rose epitomises the essence of what Oroton is about: relaxed glamour and

effortless style

Commenced with the recently launched Spring / Summer 14-15 advertising

campaign shot in London

Forms part of our strategy to elevate the brand and invest in marketing including

strong campaigns, events, traditional media and social media

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New store concept key step in Oroton brand transformation

New luxury concept designed in collaboration between

Oroton and a leading London-based creative

consultancy to elevate the brand

The new concept captures the brand’s heritage, place of

origin and celebrates Oroton’s 75 year old history

The conceptual palette for the project is a selection of

fresh neutrals and ceramic hues inspired by the warmth

of the Australian rural landscapes, natural light and

architectural details

Successfully launched at our Flagship store in QVB,

Sydney and a new store at Emporium, Melbourne in

August 2014

A further 6 stores planned for roll out in strategic

locations during FY15 including relocations to larger

stores in more prime retail locations

New concept already showing positive sales results

Oroton QVB – reopened August 2014

Oroton Emporium – opened August 2014

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Oroton on the Red Carpet

Jennifer Lopez carries

Oroton’s Raisa Clutch

while out-and-about in LA

Catherine Middleton,

Duchess of Cambridge

carries Oroton’s Odeion

Clutch while touring Australia

Jessica Alba selects

Oroton’s Freize clutch for

the helping hand of LA

Mother’s Day Luncheon

Hilary Duff carries Oroton’s

Freize Clutch for the 2014

Musicares Person of the Year

Event Honoring Carole King

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Successful integration of the 3 GAP stores from November 2013 at Pitt

Street (Sydney), Chadstone and Melbourne Central (Melbourne) under

new 10 year Franchise Agreement with a further 10 year option including

joint venture set up and exit options

Asset Purchase Agreement completed with previous franchisee for the

purchase of store assets, inventory and transfer of staff for $7.2M as

reported at half year

Encouraging positive like for like sales growth across all stores driven by

seasonal relevant product in store and global price harmonisation

FY14 was a period of transition and learning the GAP business model.

Challenges with inventory availability and seasonality post transition which

have improved with full responsibility for buying and planning from

Summer 14 season

Season relevant product resonates well with local consumers, resulting in

high in store conversion. We are focussed on strategic marketing and

customer engagement including building our CRM capabilities

Negative contribution as anticipated in the year due to start up costs/IT

integration and inherited inventory

3 new stores planned in FY15 at Macquarie, Miranda and Parramatta in

NSW and local ecommerce site planned for FY16

Discussions have commenced with Banana Republic for the launch of the

brand in the Australian market

GAP – successful integration of the business F

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Brooks Brothers – 10 stores opened in FY14

JV commenced trading in February 2014

OrotonGroup holds a majority of 51% in the JV company with

an initial licence term of 10 years with a 5 year renewal option

including PUT/CALL options for both partners

10 stores opened during FY14 with a further 5 stores planned

next year:

2 x Free standing stores

4 x Menswear and 2 x Womenswear concessions at

David Jones

2 x Factory outlets

Sales were $3.2M for the 6 months of trade with growing local

brand awareness

Trading loss for the year is approx. $800k in start up phase

OrotonGroup’s investment in the brand was $5.6M during the

year

A flagship store opened at Martin Place in August 2014

Local online sales website operated by the JV commenced in

August 2014. www.brooksbrothers.com.au

Martin Place Flagship - opened August 2014

Chatswood Chase - opened April 2014

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Cashflow + Balance Sheet in post Ralph Lauren era

FY14

($ M)

FY13 (1)

($ M)

PP&E 11.1 9.7

Inventory 27.6 18.5

Stockturn 2.0 2.0

Net cash 10.1 23.0

Net Assets 36.9 46.4

ROCE(2) 31.6% 23.9%

Year of investment to elevate the Oroton brand and support the new GAP and Brooks Brothers brands

- Net cash position of $10.1 M at year end

- $3.9M capital expenditure for the Oroton brand and infrastructure (LY $3.5M) with a focus on growth and strategic refurbishments:

• New stores in China and new concept store at QVB and Emporium

• Key strategic factory refurbishment at Homebush and International online website design

• IT integration of GAP and Brooks Brothers

- $7.2 M payment for purchase of GAP assets including inventory and fixed assets

- $5.6 M investment in Brooks Brothers by OrotonGroup to support inventory and CAPEX requirements

$40M bank facility currently available to support continued investment in FY15

Dividend payment of 16.0cps for the full year (Interim: 8.0 cps and Final: 8.0 cps) compared to a full

year dividend of 50.0 cps in FY13 with the benefit of the Ralph Lauren business

Hedging policy in place to manage foreign exchange risk by using foreign exchange contracts to hedge 85% of anticipated transactions up to 24 months out

23.812.8

14.7

5.4 10.1

23.0

FY14 cash Dividends Interest and Tax

CAPEX

3.9

Investment in BB & GAP

FY13 Cash Operating activities

Cashflow ($m)

(1): Continuing operations only. Excludes Ralph Lauren business discontinued from 30 June 2013

(2): EBIT/ (Total Assets - Current Liabilities)

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Outlook for FY15 – a further year of investment for growth

Open 3 stores in FY15 at Miranda,

Macquarie and Parramatta

Invest in season relevant inventory

Focus on driving supply chain

efficiencies with increased scale

Innovative promotional activity

targeted towards driving traffic to

store

Continue discussions on roll out of

Banana Republic brand

Continued investment in a

flagship store at Martin Place,

Sydney and a further 4 stores in

FY15

Launched local online store in

August 2014

www.brooksbrothers.com.au

Focus on innovative marketing to

drive in store traffic and brand

awareness

Review wholesale opportunities

Net cash of $10.1 M and a bank facility of $40m to support investment in all 3 brands

Investment in IT infrastructure to support growth and new businesses including new point of sale

and CRM in FY15

Build a true attainable luxury positioning

including investment in new store concept

to elevate the store environment

Focus on strong marketing campaigns

using the new face of the brand, Rose

Byrne

Increase investment in domestic

marketing including media and customer

engagement

Reduce the level of discounting with focus

on quality margin generation

Continue to grow Oroton International and

focus on limiting the establishment costs

in Asia

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Store Listing – As at July 2014 there were 71 Oroton stores,

3 GAP and 10 Brooks Brothers F

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OrotonGroup Limited (OrotonGroup) advises that the information in this

presentation contains general background information about the Company’s

activities as at the date of the presentation. It is information given in summary

form and is based on information available to OrotonGroup that has not been

independently verified.

The information in the presentation contains forward looking statements which

may be subject to uncertainties outside OrotonGroup’s control and therefore no

representation or warranty is made or given as to the accuracy, reliability or

completeness of the information, opinions and conclusions expressed. This

presentation should not be relied upon as a recommendation or forecast by the

Company.

This document should be read in conjunction with the FY14 Results

Announcement and the FY14 Annual Report.

Important notice and disclaimer F

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