AMBERTECH LIMITED — AGM Information 2016

Nov 23, 2016

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Ambertech Limited

CHAIRMAN’S AND MANAGING DIRECTOR’S UPDATE 2016 AGM

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Order of Proceedings

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Chairman’s Address

Managing Director’s Update

Questions

Formal Business

Closure

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Chairman’s Address

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Board Members

Peter Wallace (Chairman), Peter Amos (Managing Director), Tom Amos, Ed Goodwin & David Swift (Non‐Executive Directors)

Robert Glasson (Chief Operating Officer & Company Secretary)

Auditor

Paul Bull (BDO East Coast Practice)

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Mana in Director’s U date g g p

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2016 Financial Results Total Revenue up 9% to $54.7M NPAT $237k (2015: ‐$1,654) EBIT $1.08M (2015: $388k) Operating Cash Flow $719k (2015: $367k)

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Mana in Director’s U date g g p

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Normalised Result Pre Tax
2,283
158 236
FY'10 FY'11 FY'12 FY'13 FY'14 FY'15(419) FY'16
(1,000)
(1,205)
(2,277)
Financial Year
Normalised Result Pre Tax
$'000
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Adjusted for write downs and tax asset adjustments to show trend of underlying business results.

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Mana in Director’s U date g g p

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Ongoing Cost Management

Expenses as% of Revenue	FY2014	FY2015	FY2016	‐	Continued shift towards contained
Employment Costs	17.6%	16.9%	16.3%	‐	variable employment costs. Marketing costs target of approx.
Premises Costs	3.9%	3.8%	3.6%		2.5% +/‐ investment in new brands.
Marketing	2.5%	2.1%	2.7%	‐	Finance facility renewed post year end with substantial ongoing savings.
Travel	1.2%	1.0%	0.9%
Other	1.8%	1.9%	1.6%
Depreciation	0.6%	0.6%	0.5%
Finance Costs	1.0%	1.7%	1.6%

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Inventory Management

Inventory Management
Inventory Management	FY2014	FY2015	FY2016
				‐	Improvement in stock turns during the
Average Inventory ($,000)	13,298	14,333	13,924		financial year.
				‐	Reduction in months stock held at year end.
Stock Turns(Times)	2.56	2.44	2.75	‐	Ongoing focus to improve both metrics to
					reduce funding requirements.
ClosingInventory ($,000)	13,760	14,906	12,942
Months Stock(Mths)	4.84	5.11	4.05

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Focus On Working Capital Improvement

Sales and Adjusted Working Capital

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56,000 40.0%
54,681 35.0%
54,000
28.5% 30.0%
52,000 26.2%
25.0%
23.6%
50,157
50,000 20.0%
15.0%
48,281
48,000
10.0%
46,000
5.0%
44,000 0.0%
2014 2015 2016
Sales ($,000)
Adjusted Working Capital (%)
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• Stock + Debtors – Payables as % Sales

• Continued improvement in adjusted working capital ratio on increased sales.

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Mana in Director’s U date g g p

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Business Status Update

More focused representation with major retailers.

Positive results achieved from restructure efforts.

Continued assessment and rotation of brand portfolio based on key metrics.

• Launched new brands Apart and Contacta.

• January launch of wireless audio brand in MI and commercial markets.

Multiple substantial media systems projects won and in final negotiations.

Renewed finance facility on more favourable terms.

Funding IT Infrastructure projects for F2017.

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Formal Business

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Item 1: Financial and other Reports

To receive the Financial Report and the Reports of the Directors and Auditors thereon for the year ended 30 June 2016.

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Formal Business cont. ( )

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Item 2: Election of Directors

Resolution 1:Re‐election of Tom Amos

To consider, and, if thought fit, to pass the following resolution as an ordinary resolution:

“That Mr Tom Amos, who retires by way of rotation in accordance with Article 6.1 of the Company’s Constitution, and, being eligible offers himself for election, is hereby re‐appointed a director of the Company.”

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Formal Business cont. ( )

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Item 3: Issue of Options to Director

Resolution 2: Issue of options to Peter Amos

To consider, and, if thought fit, to pass the following resolution as an ordinary resolution:

“That for the purpose of ASX Listing Rule 10.14, the proposed issue to Mr Peter Amos of 500,000 options in the Company pursuant to the Ambertech Employee Share Option Plan, as described in the Explanatory Notes to the Notice of Meeting, be approved.”

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Formal Business cont. ( )

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Item 4: Remuneration Report

Resolution 3: Non‐binding vote on the 2016 Remuneration Report

To consider, and, if thought fit, to pass the following resolution as a non‐binding resolution of shareholders:

“That pursuant to and in accordance with section 250R(2) of the Corporations Act the 2016 Remuneration Report, as contained within the Directors’ Report, be adopted.”

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Formal Business cont. ( )

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Item 5: Conditional Spill Resolution

Resolution 4: Conditional Spill Resolution

To consider, and, if thought fit, pass the following as an ordinary resolution:

"That, pursuant to and in accordance with section 250V of the Corporations Act:

(i) an Extraordinary General Meeting of the Company (Spill Meeting) be held within 90 days of the Company’s 2016 Annual General Meeting (AGM);

(ii) all the Company's Directors (other than the Managing Director of the Company) who were Directors of the Company when the resolution to adopt the 2016 Remuneration Report was voted on at the 2016 AGM, and who remain in office at the time of the Spill Meeting, cease to hold office immediately before the end of the Spill Meeting; and

(iii) resolutions to appoint persons to offices that will be vacated immediately before the end of the Spill Meeting be put to the vote at the Spill Meeting."

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Questions

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Any Questions?

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Closure

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Thank you for your attendance.

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