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1 FY17 Investor Presentation Year ended (53 weeks) 2 July 2017 Charlie McLeish Chief Executive Officer Albert Zago Chief Financial Officer

2 Agenda About Pental Financial Overview Operational Update Outlook Appendix 2

3 About Pental 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 Personal Care Household Cleaning Laundry Care Fire Oral Care Dishwash Private Label Personal Care (New Zealand) Laundry Care Fire Needs (New Zealand) Household Cleaning 5

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 Albert Zago CFO (1) As at 16 August

7 Our Business Pental Limited (ASX:PTL) Established 63 years ago Market Cap: $81 Million (1) Headquartered in Melbourne Asia 1% 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 81% Gross Sales by Region (1) As of 2 July

8 Our Strategic Focus CREATE A SOLID PLATFORM FOR GROWTH: Nail the basics: Safety, People Engagement, Environment, Quality & Customer Service DRIVE YEAR ON YEAR REAL PRODUCTIVITY SAVINGS Install cost effective high performance capability NEW CHANNELS Establish new sales channels. Commercial and industrial. ACCELERATE OUR CAPABILITY TO GROW THE EXPORT BUSINESS OUR BRANDS DRIVE INNOVATION Build strategic alliances with category leaders to access customer insights and innovation pipeline Optimise pack and price in the right Channel Drive innovation 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 10.2% 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% 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, % o Australia gross sales up 7.7% (Net Sales up 6.3%) o o o 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 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 o Dividends up 10.2% Basic EPS (cents) % 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 FY17 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

13 Working Capital + Balance Sheet Key Balance Sheet Items $ 000 FY17 FY16 Cash 11,660 12,335 Net assets 84,960 83,177 Net cash position of $11.7m o o Nil debt ~$7.4m to be utilised to repurchase Shepparton property settlement occurred on 2 August 2017 Net debt / equity 0% 0% o Major capital works to come Staged soap plant upgrade and non-bleach liquids Working Capital $ 000 FY17 FY16 Trade & other receivables 23,613 23,582 Inventories 10,297 8,866 Trade & other payables (17,242) (16,659) Banking facility of $5 million o Substantial capacity to redraw more as required Working capital increased by $0.9m: o o Increased safety stocks after DIFOT issues in second half Increased stock to cover additional promotional activities in 1 st Qtr. FY18 Working capital 16,668 15,789 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 (1,669) 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) Celebrating our Heritage since 1900 Pental launch 3 new products into China promoting our brand heritage. 21

22 The Australian Country Life Soap Bars All natural ingredients From the farm to the supermarket shelf v No other bar soap can claim to be locally and ethically made with 100% Australian ingredients by an Australian owned company for Australians for over 60 years. 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

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) Position as reigning AFL Premiers means more live broadcast of Bulldogs games on free-to-air TV Cumulative TV audience and match attendance numbers are up 237% in 2017 compared to previous year By end 2017, Bulldogs would have played 8 Friday night games 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 3-year partnership with NBCR Help reach the goal of zero deaths from breast cancer by 2030 Proceeds of Velvet product sales will be donated to NBCF Total $300,00 26

27 Shepparton s Premier Business Awards Pental and White King are proudly sponsoring Shepparton s premier Business Awards in 2018 and The Awards celebrates 23 years of business awards success in the community, with 100+ nominees per annum. The growth of the Business Awards has seen new categories introduced over the years including Business of the Year, Customer Service of the Year, Best New Business across three mediums - Professional, Trade and Retail. Increased brand awareness and recall Increased reach to new customers and channels 24/7 radio and TV coverage from May Nov 2018 Pental and White King on all promotional material Gala Presentation Award Coordinated by the Shepparton Chamber of Commerce & Industry 27

28 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 28

29 Geographically widening our reach Regions o Northern China o Central China o Eastern China o Southern China o Western provinces Distribution channels Bricks & Mortar E-commerce 29

30 Growing our brands online E-Commerce: 30

31 New Domestic Channel New range of industrial-sized cleaning products: 5 to 15 litres Long-term expansion objective into new channels with our power brands 31

32 Outlook 32

33 Our Outlook Strategic Focus DRIVE PROFITABLE SALES GROWTH IN KEY CHANNELS Australia and NZ FMCG Private Label Pharmacy Industrial, Commercial, Foodservice MANUFACTURING CONTINUOUS IMPROVEMENT Reduce unplanned stoppages Drive Out costs DIFOT NEXT PHASE OF CAPITAL WORKS Upgrade Soap plant Liquids EXPORT GROWTH Continue building growth in China Commence exporting into other Asian countries BRANDS & DEVELOPMENT OF NEW PRODUCTS Accelerate innovation Brand protection Target right consumer communication channels 33

34 Appendix 34

35 Appendix $ 000 FY 17 FY 16 % Change Gross sales (GSV) 117, , % Trade spend (32,536) (30,747) 5.8% Net Sales 85,124 79, % Raw materials, consumables & change in inventory (44,625) (41,294) 8.1% Freight out & distribution (6,373) (6,557) -2.8% Employee expenses (12,946) (12,667) 2.2% Marketing expenses (2,462) (2,865) -14.1% Other expenses & revenue (6,410) (5,268) 21.7% FX gain/(loss) (385) % Underlying EBITDA (i) 11,923 10, % Depreciation & amortisation (3,376) (2,552) 32.3% Underlying EBIT (i) 8,547 8, % One off ACCC legal Costs (160) % Reported EBIT 8,387 8, % % to Gross Sales Trade spend 27.7% 28.0% -0.3% Freight-out & distribution costs 5.4% 6.0% -0.5% Marketing costs 2.1% 2.6% -0.5% Gross Margin (GSV less Trade Spend & COGS) 24.5% 24.5% - (i) Before one-off: ACCC legal costs $160k 35

36 Thank You