IVE GROUP LIMITED — Capital/Financing Update 2019

Nov 24, 2019

==> picture [595 x 153] intentionally omitted <==

25 November 2019

ASX RELEASE – IVE GROUP LIMITED (ASX:IGL)

IVE to further expand retail offer through the strategic acquisition of Salmat Marketing Solutions and Reach Media New Zealand

IVE Group Limited (ASX:IGL) ( IVE ) today announces that it has entered into an agreement to acquire Salmat Marketing Solutions ( Marketing Solutions ), the Australian catalogue distribution business of Salmat Limited (ASX:SLM), for consideration of $25 million.

The transaction includes the acquisition of Reach Media NZ Limited ( Reach Media ), Salmat’s catalogue distribution business in New Zealand.

Marketing Solutions and Reach Media will form part of IVE’s extensive production and distribution offering and will continue to operate as standalone businesses.

The acquisition will be bolstered further by a $25-30 million capital investment program to automate the Marketing Solutions catalogue collation process prior to letterbox delivery for the existing 12,000 strong national (Australian) walker network.

The agreement is subject to the satisfaction of customary conditions and is scheduled to complete on January 1, 2020. The acquisition is expected to be accretive to EPS in FY20.

IVE CEO Matt Aitken said “these acquisitions complete the final phase of our strategic roadmap over recent years to further expand and strengthen our offer to the retail sector. The combination of Australia’s largest letterbox distribution business with IVE’s broader print, data analytics and marketing services offer provides an exciting opportunity for our clients to enhance returns on their marketing spend through our highly integrated offer. Importantly, the significant capital expenditure program over the next 18 months to automate catalogue collation will support the ongoing sustainability of the national walker network resulting in a strong distribution channel delivering improved ROI for IVE’s retail clients.”

About IVE

IVE is a holistic marketing services provider. IVE enables its clients to communicate more effectively with their customers by creating, managing, producing and distributing content across multiple channels. IVE has an unparalleled product and service offering in Australia and holds leading positions across multiple sectors.

==> picture [595 x 153] intentionally omitted <==

IVE employs 1,800 talented and committed people across its operations in Australia, China, Singapore and New Zealand. The Group services all major industry sectors including financial services, publishing, retail, healthcare, communications, property, clubs and associations, notfor- profit, utilities, manufacturing, education and government.

About Salmat Marketing Solutions

Salmat is a leading Australian marketing services provider. For over 40 years, helping clients connect with their customers, week-in, week-out. Salmat's unique combination of targeted letterbox and online catalogues enables clients to reach consumers and turn them into customers.

Salmat’s Marketing Solutions business incorporates Australia’s leading catalogue distribution network, reaching up to 17 million Australians in 7 million homes each week. The Lasoo online catalogue site extends the reach of the printed catalogue and takes shoppers right to the checkout. Sophisticated data and analytics helps to inform highly targeted marketing.

For further information contact:

Matt Aitken Geoff Selig

Chief Executive Officer Executive Chairman +612 8020 4400 +61 9089 8550

IVE Group was advised by Evans Dixon Corporate Advisory, Herbert Smith Freehills, and KPMG.