SCHOOLBLAZER LIMITED — AGM Information 2014

Jan 27, 2014

ASX code: HNG

HGL

SUPPLYING MARKET LEADING BRANDED PRODUCTS

HGL Limited

Annual General Meeting

28 January 2014

Computershare Offices,

Level 4, 60 Carrington Street,

Sydney

www.hgl.com.au

anitech

BUNJUE

HANDBOOK.COM

BLC.

COSMETICS

A

Leutenegger

HGL 1859

SPOSgroup

www.sposgroup.com

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ASX code: HNG

SUPPLYING MARKET LEADING BRANDED PRODUCTS

Strategy Plan Update

Annual General Meeting
28 January 2014
Henrik Thorup – Chief Executive Officer

anitech

BUSINESS
NEWSWEEK. CARDS

BLC.
COSMETICS

Leutenegger
HIT. 001

SPOSgroup

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HGL's Business Model

SUPPLYING MARKET LEADING BRANDED PRODUCTS

HGL is a product marketing and supply chain business of market leading brands in diversified specialist markets.

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Corporate Strategy

SUPPLYING MARKET LEADING BRANDED PRODUCTS

Corporate strategy with focus on three core objectives: Growth, Profit and Sustainability (GPS).

Phase is to rebuild foundations.

1. Arrest revenue decline, maintain gross margins and improve operational efficiency.

Phase is establishing the future industry footprint.

1. HGL must participate in attractive industries with long-term growth prospects.

Phase is leveraging foundations and new industry footprint.

1. Leverage Phase One and Two in delivering enhanced Revenue and Profit growth.

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Business Unit Sales Growth Plan

Transformation

New Products to
New Markets

Adjacent

New Products to
Existing Markets

Core

Existing Products to
Existing Markets

anitech

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Business Unit Contribution to HGL

• Business Unit EBIT result excluding One-Offs

Source: Figures based on financial accounts of 30 September 2013

© HGL Limited 2014

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

HGL Industry Footprint

HGL

Source: Figures based on IBIS World statistics 2012 and other research.

© HGL Limited 2014

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Things we have achieved so far……

• FY13 Underlying EBIT result marginally ahead of last year
• Working capital reduction of $7.0m
• Positive cash flow from operations
• Increased gross margin by 1.5% across the HGL Group
• Divestment of two non-core JV companies (BOC & XLN)

HGL
- EBIT result excluding One-Offs
- Source: Figures based on financial accounts of 30 September 2013
Page 8
© HGL Limited 2014

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Things we have achieved so far...

• Arrested previous significant losses in SPOS Group
• Substantially streamlined operations in Anitech, SPOS & Leutenegger
• New CEO’s appointed in BLC Cosmetics, SPOS and Leutenegger
• Expanded HGL executive team with appointment of COO

HGL

Source: Figures based on financial accounts of 30 September 2013

Page 9 © HGL Limited 2014

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Challenges in our Business ...

• Recent AUD exchange rate volatility
• Future GDP growth prospects of average 2.5% to 3.0% per annum
• Increasing wage levels and declining productivity rates
• Difficulty in attracting best-in-class talent in wholesale sector
• Pricing pressure from large scale retailers in selected sectors

HGL

Page 10 © HGL Limited 2014

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SUPPLYING MARKET LEADING BRANDED PRODUCTS

Our Current Priorities

• Rebuild profitability levels in underperforming business units
• New business development initiatives and top line growth
• Invest in staff development and high performance culture
• Commence pursuit of strategic acquisitions

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ASX code: HNG

HGL

SUPPLYING MARKET LEADING BRANDED PRODUCTS

HGL Limited

GPS Strategy Plan (Growth, Profit & Sustainability)

28 January 2014

Henrik Thorup – Chief Executive Officer

anitech

BUNITE INNOVAS, CLAFIS

BLC. COSMETICS

Leutenegger EYE 1891

SPOSgroup

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ASX code: HNG

SUPPLYING MARKET LEADING BRANDED PRODUCTS

Disclaimer

Statements contained in this presentation, particularly those regarding possible or assumed future performance and outcomes, projected growth of the company, industry growth or other trend projections are or may be forward looking statements. Such statements relate to future events and expectations and therefore involve risks and uncertainties. Actual results may differ materially from those expressed or implied by these forward looking statements.

anitech

BUNITE
MARKETING, CLAIMS

BLC
COSMETICS

Leutenegger
HIT. 001

Sposgroup