IVE GROUP LIMITED — Investor Presentation 2016

Mar 22, 2016

BELL POTTER EMERGING LEADERS DAY CONFERENCE / MARCH 23, 2016

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IMPORTANT NOTICE

No recommendation, offer, invitation or advice

This presentation contains general information about the activities of IVE Group Limited (IVE) which is current as at 25 February 2016. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standards (IFRS) as well as information provided on a non-IFRS basis. This presentation is not a recommendation or advice in relation to IVE or any product or service offered by IVE’s subsidiaries.

This presentation is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with IVE’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular the Half Year Results for the Half Year to 31 December 2015. These are also available at www.ivegroup.com.au. Investors and potential investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified adviser having regard to their objectives, financial situation and needs before taking any action.

Disclaimer

No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, IVE, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of IVE, including the merits and risks involved. Investors and potential investors should consult with their own professional advisors in connection with any investment decision in relation to IVE securities.

Forward looking statements

The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects IVE’s intent, belief or expectations at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian

Securities Exchange, IVE disclaims any obligation or undertaking to disseminate any updates or revisions to this information over time. Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause IVE’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Investment risk

Any investment in IVE securities is subject to investment and other known and unknown risks, some of which are beyond the control of IVE. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. For example, the factors that are likely to affect the results of IVE include, but are not limited to, general economic conditions in Australia, exchange rates, competition in the markets in which IVE operates or may operate and the inherent regulatory risks in the businesses of IVE. Neither IVE, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance.

Jurisdiction

This presentation does not constitute an offer to issue or sell, or solicitation of an offer to buy, any securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of IVE.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Any such securities have not been, and will not be, registered under the U.S. Securities Act of 1933 (Securities Act), or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, persons in the United States, except in a transaction exempt from, or not subject to, registration under the Securities Act and applicable US state securities laws.

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IVE IS A VERTICALLY INTEGRATED MARKETING AND PRINT COMMUNICATIONS PROVIDER

Enabling its customers to communicate more effectively with their customers by creating, managing, producing and distributing content across multiple channels

IVE’s customers include many leading Australian and multi-national companies

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Bell Potter Emerging Leaders Day

IVE HAS EVOLVED TO MIRROR CUSTOMER COMMUNICATION STRATEGIES OVER TIME

Key dates in IVE’s history IVE traces its origins to the Selig family’s establishment of Link Printing in 1921

The evolution of IVE’s product and service offering

The evolution of IVE

Since 1996, IVE has grown significantly in scale and evolved its product and service offering to mirror the evolution of its customers’ communication strategies

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1997 1999 2001 2014
Third party Managed Print Production Retail display/
sourcing solutions (niche web offset) mobile interactive
and logistics technologies
and fulfilment
1921 > 1996 > 1997 > 2001 > 2006 > 2012 > 2015
Link Printing Blue Star Blue Star Blue Star Blue Star Print Blue Star Listing on ASX
established by Selig Family formedPrint Group [1] Print GroupacquiredLink Printing [1] managementbuy outPrint Group [1] by CHAMP PrivateEquityGroup [1] acquired Australia acquiredby WolseleyPrivate Equity 1996 Print production 1998 Creative services 2000 Personalised Expansion 2001 - 2007 2015 Promotional
and Selig Family (commercial) and print communications of existing merchandising
production capabilities Personalised
(digital) communications
Note: 1. Blue Star Print Group included New Zealand operations. These were sold in 2012. (outbound call centre)
Listing on ASX December 2015
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IVE HAS A BROAD RANGE OF PRODUCTS AND SERVICES

TOTAL REVENUE $381M

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Creative Services Personalised Print Production Print Production Retail Display Promotional Logistics &
Communications Niche Web Offset Commercial Digital Merchandising Fulfilment
Overview IVE provides creative IVE manages personalised IVE produces a wide IVE produces a wide IVE designs and IVE manages customers’ IVE provides inventory
services across marketing communications range of printed range of printed manufactures point of promotional merchandise management,
traditional, mobile and through physical and collateral collateral sale collateral programs warehousing
interactive technologies digital channels and logistics services
Examples – creative development – strategy development – Special interest magazines, – marketing communications, – concept, design and – creative development, – storage, pick and pack
of products and production – data management custom publications, brochures, flyers, manufacture of sourcing, production, – kitting and fulfilment
and services – mobile interactive and analytics corporate material including booklets, stationary temporary, and distribution of – call centre services
solutions – direct marketing travel and tourism brochures, and posters semi-permanent and promotional merchandise – freight management
– content management – e-communications magalogues, financial services permanent point of
systems – outbound call centre booklets and inserts sale collateral
Pro forma
forecast FY2016 $9m $78m $94m $89m $14m $49m $16m $15m
revenue
2% 20% 24% 23% 4% 13% 4% 4%
Third Party Sourcing $17m 4%
Managed Solutions
IVE provides major customers with seamless access to its products and services via dedicated onsite teams and its technology platform
$90m [1]
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Note: 1. – This revenue is allocated across the various service lines

1. – Totals may differ due to rounding

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IVE’S ADDRESSABLE MARKET IS ESTIMATED AT $4.1 BILLION

No competitor holds a top three position in more than one other sector in IVE’s Addressable Market

No	competi	tor holds a top	three position in more th	three position in more th	an one oth	er sector in	IVE’s Addre	ssable Mar	ket
	Creative Services	Personalised Communications	Print Production		Retail Display	Promotional Merchandising	Logistics & Fulflment	Third Party Sourcing	Managed Solutions
		Direct Marketing Mail2	Niche Web Offset Printing	Commercial & Digital Printing
Sector position1	n/a3	No. 1	Top 2	No. 1	No. 2	Top 3	n/a3	n/a3	Top 3
Sector market share1	n/a3	11%	41%	8%	9%	1%	n/a3	n/a3	15%
Sector size4	n/a3	$394m	$219m	$1,372m	$461m	$1,651m	n/a3	n/a3	$640m5
Note: 1. – Management estimate of IVE market position and market share based on relative FY2014 revenu					e

Note: 1. – Management estimate of IVE market position and market share based on relative FY2014 revenue

1. – Excludes essential mail (e.g. statements)

2. – IVE’s market position considered immaterial relative to sector size

3. – Management estimate of segment size based on FY2014 revenue

4. – Includes all revenue items. The sector size based on management fees only is $26m

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CASE STUDY

OVERVIEW

This major financial services business has been an IVE customer since 2004.

IVEO provides a full suite of services from ideation to campaign delivery including creative services, commercial print, digital print and warehousing and fulfilment.

IVE has broadened its product and service offering to the customer to incorporate Kalido’s creative representation on-site as well as growth in digital consultation and design services.

PRODUCTS AND SERVICES PROVIDED

Creative services

Kalido provides creative strategy and production as well as video production, ePublications, responsive HTML and web tiles.

OUTCOMES

IVEO’s strong customer relationship and on-site presence has enabled IVE to continually grow with the customer to meet its evolving product and service offering requirements.

An important outcome of the relationship has been the deployment of a range of ‘enabling technologies’ including:

a customised local area marketing system providing their adviser network the ability to tailor their marketing collateral for requirements specific to their local area, but within pre-approved brand guidelines; and

an online portal which provides streamlined access to sourcing and supplier management tools and a gateway to Inventory Ordering and Print on Demand tools. Product and service mix in pro forma forecast FY2016 revenue

Personalised communications

Blue Star DIRECT provides direct mail, email, personalised urls, SMS, MMS and Quick Response codes.

Print production

All printed collateral including point of purchase is produced through Blue Star PRINT, Blue Star WEB and Blue Star DISPLAY.

Third party sourcing

A range of products is supplied though IVE’s Third Party Sourcing supply chain. Logistics and fulfilment

Inventory management, warehousing and distribution through Blue Star CONNECT.

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1% 9% 11% Creative Services
3% Print Production –
Commercial
26%
Print Production –
Niche Web Offset
Personalised
Communications
Print Production –
Digital
Retail Display
Logistics and
Fulfilment
Third Party
Sourcing
Promotional
9% 8% 33% Merchandising
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ATTRACTIVE AND DIFFERENTIATED MARKET POSITION

IVE’S BUSINESS IS DIFFERENTIATED BY ITS VERTICALLY INTEGRATED, CUSTOMER FOCUSED OFFERING AND A TOTAL MANAGED SOLUTION

Which enables IVE to:

• service all stages of the marketing process;

• reduce its reliance on commoditised and transactional relationships;

• bring scale;

• bundle products and services to deliver tailored customer outcomes; and

• further expand the range of products and services offered to customers.

IVE provides many of its major customers with managed communication solutions

• focus is on improving the customer’s return on total supply chain or ‘ownership’ cost

• this approach has resulted in strong, long-term relationships with customers and provides the opportunity to further expand the range of value added products and services offered to customers

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3.
• Centrally managed, consolidated
communications supply chain
• Focus on total supply chain cost, return
on marketing spend drives decisions
• Multi-channel campaign management
• Supply chain and inventory management
• Customers typically spend greater
than $2m per annum
2.
• Solutions for target industry
verticals (e.g. retailing)
• Components of product and
service offering bundled to
provide a tailored solution
• Customers typically spend
greater than $0.5m per annum
1.
• Simple transactional relationships
• Limited engagement on ‘value-add’ opportunities
• Fragmented print procurement with unit cost focus
LOW Value to customers HIGH
Trend in customer buying
Total managedsolutions
Bundled product
and service offering
Transactional
FEW
Number of providers
MANY
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HIGH QUALITY, STABLE AND DIVERSIFIED REVENUE BASE

MAJORITY OF CUSTOMERS USE MULTIPLE PRODUCTS AND SERVICES

63% of pro forma FY2015 revenue was generated by customers using multiple products and services

LONG RELATIONSHIPS AND CONTRACTS

IVE generates revenue from over 2,000 customers through the provision of a diverse range of products and services

Average length of IVE’s relationships with its top 20 customers being approximately 9 years

In FY2015, 100% of the top 20 customers (which comprise 33% of pro forma FY2015 revenue) had contractual arrangements in place with IVE

78% of pro forma FY2015 revenue was generated from customers with contractual arrangements in place or with whom IVE has an established relationship of greater than 2 years

PROPORTION OF PRO FORMA FY2015 REVENUE GENERATED BY CUSTOMERS USING MULTIPLE PRODUCTS AND SERVICES

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35% 6%
6%
16%
1 product/service
2 products/services
3 products/services
4 products/services
37% 5 or more products/services
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Bell Potter Emerging Leaders Day

HIGH QUALITY, STABLE AND DIVERSIFIED REVENUE BASE

IVE’S LARGEST CUSTOMER ACCOUNTS FOR 5% OF PRO FORMA FY2015 REVENUE

Revenue by customer in pro forma FY2015

Customers are well diversified across over 26 industries

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5%
10%
18%
Top customer
Top 2-5 customers
Top 6-20 customers
Other customers
67%
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Revenue by industry exposure in FY2015F %
Financial / Insurance / Corporate Services 17%
Publishing 17%
Retail 13%
Charity 11%
Manufacturing 9%
Government 8%
Tourism / Entertainment 7%
Media 3%
Trade 2%
Associations 2%
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PROVEN STRATEGY FOR CONTINUED GROWTH

THE BOARD AND MANAGEMENT REMAIN FOCUSED ON THE CONTINUED GROWTH OF IVE

IVE’s growth strategy is driven by:

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1. 2. 3. 4. 5.
NEW CUSTOMER GROWING SHARE OF EXECUTION OF FOCUSING ON EXPANDING
ORIGINATION WALLET A DISCIPLINED OPERATIONAL IVE’S VALUE
ACQUISITION EFFICIENCY PROPOSITION
PROGRAM AND TARGETED
PRODUCTIVITY
• Structured, disciplined approach • IVE’s broad range of products • Guided by IVE’s • Strong focus on operational • A clearly defined strategy
to market with a track record and services provides an excellent strategy framework efficiency for expanding its product
of success platform to grow share of wallet • Focussed on short payback • Targeted, productivity enhancing, and service offering to meet
• IVE has been successful in with existing customers periods and material integration capital expenditure program its customers’ evolving
approximately 74% of formal • IVE will continue to leverage and cross-selling synergies communication requirements
proposals submitted over FY2015 the strength of its relationships • IVE has a strong history • Identified specific new product
for new customers with customers of making and integrating and service opportunities across
• IVE believes that major • Alignment with IVE’s customers profitable acquisitions the marketing process
corporations are increasingly supply chain objectives • IVE operates in several highly • A track record of successfully
focused on counter-party risk • 63% of pro forma FY2015 revenue fragmented sectors with many developing and launching
and IVE is in a position to benefit generated by customers using attractive targets new offerings
multiple products and services
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PROVEN STRATEGY FOR CONTINUED GROWTH

IVE HAS A STRONG TRACK RECORD OF MAKING AND INTEGRATING PROFITABLE ACQUISITIONS

IVE has a pipeline of future potential acquisition opportunities either as:

• future expansion of its product and service offering; or

• bolt-ons to existing business

No acquisitions are included in the FY2016 forecasts

Key transaction characteristics

• short pay-back periods

• material integration and cross-selling synergies

• transaction risk reduced by structuring acquisitions as asset purchases with deferred consideration arrangements linked to future operational or sales performance targets

• $20 million 3 year acquisition facility established post IPO

Acquisitions

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Date Company Acquisition type
March 2013 GEON Selected assets and liabilities
June 2014 iGroup Selected assets and liabilities
July 2014 STI Selected assets and liabilities
February 2015 Thompson Selected assets and liabilities
April 2015 Task2 100% of the share capital
April 2015 VaVaVoom Selected assets and liabilities
May 2015 POS Collective Selected assets and liabilities
August 2015 Oxygen8 Selected assets and liabilities
October 2015 Pareto Group 100% of the share capital
February 2016 Laser Computer Services Selected assets and liabilities
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PEOPLE, CULTURE AND BOARD

EXPERIENCED, SUCCESSFUL AND COMMITTED MANAGEMENT TEAM, RESPONSIBLE FOR DRIVING THE OPERATING AND FINANCIAL PERFORMANCE

Industry experience of 19 years and an average tenure with IVE of 11 years

Responsible for driving the improved operating and financial performance of IVE since the Existing Owners acquired IVE in 2012

Ongoing commitment to, and substantial investment in, the future success of IVE

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GEOFF SELIG Executive Chairman IVE Group Limited

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GLEN DRAPER Chief Executive Officer IVEO

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SEAN TRINER Chief Fundraising Evangelist & Co-Founder Pareto Fundraising

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WARWICK HAY

Managing Director IVE Group Limited

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JOEL NORTON

Chief Executive Officer Kalido

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GRAHAM MORGAN Head of Acquisitions and Alliances IVE Group Limited

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DARREN DUNKLEY Chief Financial Officer IVE Group Limited

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BRUCE COTTON Chief Executive Officer Pareto Phone

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MIKE SHANNON Group General Manager Business Services IVE Group Limited

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MATT AITKEN

Chief Executive Officer Blue Star Group

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PAUL ROBERTS

Chief Executive Officer & Co-Founder Pareto Fundraising

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A COMPLEMENTARY BOARD

THE BOARD COMPRISES AN EXECUTIVE CHAIRMAN, MANAGING DIRECTOR, TWO NON-EXECUTIVE DIRECTORS AND TWO INDEPENDENT NON-EXECUTIVE DIRECTORS

Core competencies of the Board include:

• marketing and print communication operational excellence;

• corporate strategy;

• mergers and acquisitions;

• financial management; and

• legal expertise.

• corporate governance.

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GEOFF SELIG Executive Chairman

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WARWICK HAY Managing Director

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PAUL SELIG

Non-Executive Director

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JAMES TODD

Non-Executive Director

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GAVIN BELL

Independent Non-Executive Director

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ANDREW HARRISON Independent Non-Executive Director

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Introduction to IVE–Bell Potter Emerging Leaders Day

FINANCIAL TRACK RECORD WITH HIGH CASH FLOW GENERATION

Forecast EBITDA CAGR of 27.9% from FY2013 to FY2016

• execution of growth strategy by the Existing Owners

• organic and inorganic growth

Margin expansion through procurement savings, synergy benefits from acquisitions and productivity improvements

IVE has a well established track record of high cash flow generation, converting 105% of pro forma FY2015 EBITDA into operating cash flow

The growth strategy implemented by the Existing Owners is expected to deliver sustainable earnings growth, shareholder returns and strong cash generation in FY2016 and beyond

IVE financial performance

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11.2%
9.2%
42.5m
7.5%
7.3%
30.9m
22.9m
20.3m
FY2013 FY2014 FY2015 FY2016F
Pro forma EBITDA ($m)
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Introduction to IVE–Bell Potter Emerging Leaders Day

REVENUE PERFORMANCE

ORGANIC REVENUE GROWTH[1]

ACQUISITIONS

IVE achieved organic pro forma revenue growth of 3.7% in FY2015 Organic pro forma revenue growth is forecast to be 2.3% in FY2016 Organic pro forma revenue growth in FY2016 is forecast to be driven by:

• new customer wins; and

• growth from additional products and services provided to both existing customers and customers acquired through acquisition

Seven acquisitions completed in FY2015 and FY2016

• STI (July 2014), Thompson (February 2015), POS Collective (May 2015), VaVaVoom and Task2 (April 2015);

• Oxygen8 (August 2015) and Pareto Group (October 2015)

No new acquisitions are included in FY2016 forecasts

FY2013 to FY2016F pro forma revenue

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381.0
337.4
303.5
276.5
FY2013 FY2014 FY2015 FY2016F
Revenue
9.8% 11.2% 12.9%
growth
Pro forma revenue ($m)
CAGR 11.3%
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Note: 1.Organic revenue growth is calculated as financial year on year revenue growth excluding Asset Acquisition related revenue. Any full year revenue growth in an acquired business post acquisition is considered organic growth as IVE realises cross-sell synergies and other integration benefits. The impact of customer contracts lost prior to the Existing Owners acquiring the business has been excluded from the calculation. The impact of the Pareto Group acquisition is included within organic revenue growth, given the historical results of the business are included as a pro forma adjustment.

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FINANCIAL HIGHLIGHTS

	Pro Forma	Pro Forma	Pro Forma
	H1 FY2016 $’M	H1 FY2015 $’M	% Var $’M
Revenue	196.1	172.2	13.9%
EBITDA	22.2	17.0	30.7%
EBIT	17.6	8.4	109.5%
NPAT	11.4	4.6	145.0%
NPATA	12.2	5.3	129.7%

• $196.1M Revenue at 51.5% of full year forecast

• New business $18.7M

IGHTS
	Pro Forma
	Actual H1 FY2016	F’cst FY2016
Revenue growth	13.9%	12.9%
Organic revenue growth %	2.5%	2.3%
Gross proft margin	52.5%	52.3%
EBITDA growth	30.7%	37.6%
EBITDA margin	11.3%	11.2%
EBIT growth	109.5%	85.1%
EBIT margin	9.0%	8.4%
NPAT growth	145.0%	109.5%
NPATA growth	129.7%	100.2%

• $22.2M EBITDA at 52.2% of full year forecast

• $12.2M NPATA to full year forecast of $22.0M

• IVE is on track to meet prospectus forecast for FY2016

• H1 FY2016 Dec 15 metrics tracking to FY16 forecast

• EBITDA growth at 30.7% to forecast of 37.6% – H2 FY2016 to reflect further benefits of initiatives put in place H1 FY2016

• YTD Dec 15 EBIT and NPAT growth impacted by FY15 depreciation impairment adjusted in H1 results

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Introduction to IVE–Bell Potter Emerging Leaders Day

BUSINESS HIGHLIGHTS

REVENUE

ACQUISITIONS

CAPITAL EXPENDITURE

• Strong new business performance $18.7m

• Letter of intent executed with Westpac Banking Corporation for the provision of graphic design and print management services. Contract expected to be executed end of March for an expected full service national roll-out within the first half of the 2016

• Successful implementation of Vodafone Australia and McDonald’s Australia managed solutions contracts in our IVEO division

• Successfully rolled over a number of key contracts across the Group

• Tabcorp, American Express, TAL, Foxtel, RACV, Bupa, QBE Insurance, Flight Centre, Travelcorp, Charles Tyrwhitt, Morris Communications

• The Group continues to actively explore opportunities for complimentary and earnings accretive acquisitions

• The period saw the roll out of a number of meaningful capital expenditure initiatives across the Group

• The period saw the successful integration of 3 acquisitions completed late in FY15 (The POS Collective, VaVaVoom, Task2)

• Expansion of wide format digital printing footprint in Blue Star DISPLAY ($2.8m)

• Upgrade/replacement sheet-fed printing presses in Blue Star PRINT ($2.5m) and Blue Star WEB ($5.7m)

• The acquisition of Oxygen8 (completed July 31, 2015) and the Pareto Group (completed October 30, 2015)

• Automated inline packing solution in Blue Star WEB ($1.7m)

• Relocation of Blue Star DISPLAY, Blue Star PROMOTE and Blue Star CONNECT (Victoria) to new premises ($1.7m)

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Introduction to IVE–Bell Potter Emerging Leaders Day

BALANCE SHEET

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Actual Actual Pro Forma
Dec-15 Jun-15 Jun-15
$’M $’M $’M
CURRENT ASSETS
Cash and cash equivalents 17.3 6.7 12.3
Trade, prepayments and others 66.2 60.2 63.5
Inventories 21.0 14.4 14.9
Total Current Assets 104.5 81.3 90.7
NON CURRENT ASSETS
Deferred tax assets 11.0 11.7 13.1
Property, plant and equipment 38.3 35.4 36.0
Intangible assets and goodwill 48.8 25.3 43.4
Other non current assets 2.2 0.2 0.2
Total Non Current Assets 100.3 72.6 92.7
Total Assets 204.7 153.9 183.4
CURRENT LIABILITIES
Trade payables and provisions 76.9 65.9 66.7
Finance lease liabilities 2.1 2.7 2.7
Bank loans 0.0 22.0 0.0
Current tax payable 5.9 3.1 3.4
Total Current Liabilities 84.9 93.7 72.8
NON CURRENT LIABILITIES
Trade payables and provisions 12.4 11.5 16.5
Finance lease liabilities 9.3 6.8 6.8
Bank loans 33.0 0.0 32.7
Total Non Current Liabilities 54.8 18.3 56.0
Total Liabilities 139.6 112.0 128.8
NET ASSETS 65.1 41.9 54.6
EQUITY
Share Capital 39.2 15.3 39.8
Retained Earnings 25.9 26.6 14.8
Total Equity 65.1 41.9 54.6
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• Cash increase June 2015 Pro Forma to Dec 15 reflects business free cash-flow and cash in from Pareto acquisition

• Inventories increase reflects high point, balance of year will see inventories track closer to FY15 levels

• Intangibles increase reflects goodwill impact of Oxygen8 and Pareto

• Trade payables and provisions increase relates to higher activity trading

• Total finance lease liability increase relates to new digital equipment

H1 FY2016 Net Debt

H1 FY2016 Net Debt
	Actual H1 FY2016 $’M	Pro Forma H2 FY2015 $’M
Current fnance lease liabilities	2.2	2.7
Non current fnance lease liabilities	9.3	6.8
Bank loans	33.0	32.7
Total loans and borrowings	44.5	42.2
Less: Cash and cash equivalents	(17.3)	(12.3)
Net total indebtedness	27.2	29.9

• Net debt $27.2M in line with FY16 forecast