RANGE INTERNATIONAL LIMITED — AGM Information 2019

May 28, 2019

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RANGE INTERNATIONAL LIMITED – AGM 2019

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29[th] MAY 2019

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DISCLAIMER

You must read the following notices before reading or making any use of this presentation or any information contained in this presentation. By continuing to read, use or otherwise act on this presentation, you agree to be bound by the following terms and conditions, including any modifications to them.

This presentation contains summary information about Range International Limited (RAN) and its subsidiaries and their activities. The information in this presentation does not purport to be complete. It should be read in conjunction with RAN’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

The information contained in this presentation is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek independent professional advice appropriate to their jurisdiction and circumstances.

To the maximum extent permitted by law, no responsibility for any loss arising in any way from anyone acting or refraining from acting as a result of this information is accepted by RAN, any of its related bodies corporate or its directors, officers, employees, professional advisers and agents (Related Parties). No representation or warranty, express or implied, is made by any person, including RAN and its Related Parties, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation.

An investment in RAN securities is subject to investment and other known and unknown risks, some of which are beyond the control of RAN or its directors. RAN does not guarantee any particular rate of return or the performance of RAN securities.

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. This presentation contains certain forward‐looking statements with respect to the financial condition, results of operations and business of RAN and associated entities of RAN and certain plans and objectives of the management of RAN.

Forward‐looking statements can be identified by the use of forward‐looking terminology, including, the terms “believes”, “estimates”, “anticipates”, “expects”, “predicts”, “intends”, “plans”, “goals”, “targets”, “aims”, “outlook”, “guidance”, “forecasts”, “may” or “will”, and similar expressions. These forward‐looking statements include all matters that are not historical facts. Such forward‐looking statements involve known and unknown risks, uncertainties and other factors which because of their nature may cause the actual results or performance of RAN to be materially different from the results or performance expressed or implied by such forward‐looking statements. Such forward‐looking statements are based on numerous assumptions regarding RAN’s present and future business strategies and the political, regulatory and economic environment in which RAN will operate in the future, which may not be reasonable, and are not guarantees or predictions of future performance. No representation or warranty is made that any of these statements or forecasts (express or implied) will come to pass or that any forecast result will be achieved. Forward‐looking statements speak only as at the date of this presentation and to the maximum extent permitted by law, RAN and its Related Parties disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, any assumptions or expectations set out in this presentation).

All figures in this presentation are US$ unless stated otherwise and all market shares are estimates only. A number of figures, amounts, percentages, estimates, calculations of value and fractions are subject to the effect of rounding. Accordingly, the actual calculations of these figures may differ from figures set out in this presentation.

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INDUSTRY RECAP

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Different financing models: outright sale, rental (hire/ dehire), pooled rental. Re>Pal focuses on pallet sales. Can look at rental for right counterparties and simple logistic needs i.e. not pooling.

Different pallet types: many different sizes and pallet uses (top/ bottom deck); many different loading combinations.

Winning larger export pallet types is desirable as they are annual volumes; though competitive vs lower priced timber

Uniquely Sustainable

INSIGHTS

Category Insights:

Our Customers Pain Points:

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90% market is still using wood

The shift from wood has started and is on the rise

There is more control and risk around wood

Cost from wood is high (fumigation etc)

Virgin plastic pricing has been high

Risk ‐ Infestation of entire cargo Supply chain ‐ Getting wood Supply chain – Product Reliability Supply chain ‐ inspections delays Profit ‐ Cost of wood (lumber is up) Profit – Plastic price was high Profit – Cost of fumigation Client satisfaction – Damage to goods

Reputation – CSR if using wood or new plastic waste and carbon

We need to solve our customers problems first to make it easy for them to buy Re>Pal.

Uniquely Sustainable

TARGET AUDIENCE

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Current Mindset
Future Mindset
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Uniquely Sustainable

SALES AND VALUE PROPOSITION

 In September 2018 Range moved away from ‘plastic for same price as timber’ value proposition to sell at a higher price than timber and below virgin plastic. In certain markets, timber pallet pricing is increasing. There is increased interest in using plastic in supply chains, though virgin plastic pricing is not rising as it was.

• We still believe that a 100% sustainable pallet is a unique proposition.

• Nestle Philippines (PP) ordered for Cabuyao plant and interested in Re>Pal across the Philippines for sustainability agenda.

• Small orders from LF Logistics (Indonesia), Thai Union (Thailand), Parex (Philippines) received.

• LF Logistics potentially important relationship, their client base interested in sustainability and plastic/ lifetime value.

 Two Business Development Managers recruited in Indonesia for the Jakarta Industrial areas. Two consultants on commission arrangements. One existing sales person in Surabaya, the other in Jakarta resigned. CRM system in place and reporting engine, tracks pallets that Re>Pal doesn’t currently make but clients have demand for.

• Sales cycles remain far longer than expected but overall the pipeline is expanding in Indonesia, Thailand, Vietnam and the Philippines.

Uniquely Sustainable

SELECTED CLIENTS

Oleochemicals

• Unilever OleoChemicals

• Beauty/ FMCG

• Canada Green Gate

• SC Johnson

• Utama Spice

• Wings Group

Flavour & Fragrances

• IFF Philippines

• Givaudan

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Beverages

• Vitacoco Philippines

• • Sinar Sosro Food

• Nestle

• • Indofood • Frisian Flag • Jollibee • ABC President • Century Pacific Food

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Electronics

• Kyoden Group

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Uniquely Sustainable

SELECTED CLIENTS

Engineering& Manufacturing • Dynapack Group (Dynaplast & Rapidplast) • MBCS Corporation Co.,Ltd • Combine Will (toys) Footware/ Leather • Ecco Indonesia • Panarub • Halim Jaya –Ando Cement • Parex Group	Garment • Eco Smart Garment Autoparts • Kiat Motor Wintor Indonesia Sport Brands • PanaTrade Caraka (SPECS) Pharmaceutical • Soho Industri Pharmasi • Adi Bharata Asty • Sinar Roda Utama

Uniquely Sustainable

SELECTED CLIENTS

Logistics/ 3PL

• LF Logistics

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• DHL

• CWT logistics

• Kerry Express

• LBC Express

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Uniquely Sustainable

PRODUCT DEVELOPMENT

• Core product development has been far slower than expected with issues arising for new

designs related to ISO compliance and ensuring the finished good quality is to standard. HD1210L will complete final testing June 30 2019.

• Then we will embark on the next pallet according to the most demand from our CRM/ potential relationships.

• Likely a 1200x1200; 1100x1100 or 1200x800

 To speed product development we would need to invest in an additional CNC machine to manufacture the mold. We can then produce new molds and modify existing molds in parallel, which brings the new mold to market sooner by 4 months or so. Outsourcing is not ideal as many mold manufacturers also sell pallets.

Uniquely Sustainable

RAW MATERIALS SOURCING AND CONTROL

In 2018/ early 2019 we swapped many sources of raw materials due to issues summarised in the FTI Consulting report.

Added controls on humidity, quality control sampling, weighing and reconciliation.

Adding different sources to put downward pressure on pricing where possible.

Partnering with Domestics/ Multi‐Nationals on their waste streams, and looking at areas that resellers do not want to take.

Partnering with municipal governments in Indonesia where possible for waste from landfill, waste banks.

Investigating an import license for post‐factory waste.

Re>Pal’s production process is dependent on the availability of:

• HDPE, PP and LDPE. We can use mixed waste plastics, in our production process.

• Many of these types of plastics are not free in Indonesia

• Diversity of supply is key to keeping raw material pricing at predictable and reasonable levels.

• Sourcing dirty waste from corporates including trials of post‐production (non toxic) waste or general waste from factories

• Investigating sourcing dirty plastic from waste banks and land fills; takes time to discuss with Governments.

• Partnering with Governments directly to employ separators via the Government rather than via multi‐level reseller network

• Leveraging the Company’s internal wash plant to lower cost of processing, leverage in‐house staff and equipment, this was successfully tested during April 2019 and is being expanded in house.

• This could provide a 15‐30% reduction in raw material pricing depending on supplier agreements.

• Take>Bak of other supplier’s or Re>Pal’s broken pallets to regrind into waste

• Cooperation with logistics providers to capture any waste from products they distribute across Indonesia

• Still need to add truck weigh scales in factory (project has been mostly paid for in 2017 but ~~not implemented.~~

Uniquely Sustainable

PRODUCTION OUTPUT

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Telford Smith Engineering attended the Pasuran factory end May to optimise the pelletiser. The

initial outcome of this review is that the production capacity has been significantly increased.

Throughput is still well under our target envisaged during original factory build.

We are engaged with TSE on improvements required and await their report before we take further steps.

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Each improvement of the pelletising equipment enables more efficient pellet production, a reduction

of staff costs per kg of plastic produced and provide the efficiency to manage larger orders. Reliable

operation of the pelletiser is needed to ensure production is not affected.

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Improvements in Utilisation

• Use casual daily hire where possible eg for wash plant vs permanent employees.

• Transition to daily hire where we can when permanent come off contracts (HR Manager leading this process)

• More consistent access to raw materials, increase raw material stock held to eliminate downtime

risk for lack of materials.

• Running shifts avoiding peak kVA period

Uniquely Sustainable

CASH MANAGMENT

The Company continues to implement initiatives to improve cash management

• Significantly reduced operating overheads

• Significant reduction in Directors Fees and Professional fees

• Tightened terms and conditions of sales

• Chasing debts and tightened Accounts Receivable procedures

• Lowering production costs in particular raw materials through diversifying sourcing initiatives.

• Raw materials costs need to be significantly reduced from the current pricing for plastics having

been sourced in 2018 and early H12019 from resellers

• Provides for a more stable platform for management to focus on sales and partnerships

Uniquely Sustainable

STRATEGY

2019 - 2020

2019

Grow:

• −Sales growth with large MNC’s regionally is key.

2018

Stabilise:

• Restructuring staff following FTI

• Procurement and raw material processes tightened

• Raw material suppliers changed

• Client collections tightened

• All costs and contracts examined

• Overseas offices closed or significantly downsized.

• Pricing of pallets increased

• Social marketing/web/ news restarted after 18 months, Branding tightened, differentiate between Re>Pal and Range

• Joined industry associations are joined (IABC, ADUPI, IBCSD)

• CRM and reporting engine started

• −Target is building a portfolio of MultiNational companies and large domestic warehouse MNC’s with focus on sustainability

Optimise:

• −Right people for growth phase;

−Right size factory staff, and shift patterns. Click to edit Master title style −Headcount freeze; reduce manager: staff ratio

• −Focus on large Indonesia/ regional exporting companies (exporters of pallets for annual volume)

• −Marketing/ social media at relevant events (IABC annual meeting Bali, Logistic Exhibition Jakarta (Oct 19), Plastics Jakarta Nov 19)

• −New raw material sourcing, handling control, rec’s & wash plant expansion

• −Efficiency of equipment and electricity: pelletiser throughput

• −Recruit high performance Indonesia sales staff, tertiary qualified, CEO level enabled

• −Optimise equipment configuration in factory

• −Partnering on MNC’s free waste; build marketing story of waste into pallets for circular economy with larger MNC’s

• −Develop partnerships with better resellers

• −Develop strong local Indonesian Board

• −Reduce waste cost significantly to ensure competitiveness

• −Develop new products in collaboration with MNC’s, new partnerships, companies wanting to use Re>Pal plastic

• −Import license for post-factory waste, establishes a maximum price for raw materials

• −Raw material dashboard to be established

• −Examine ‘mini-plant’s’ overseas if viable/ licensing IP

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