Tullio Cofrancesco Address Slides from 2015 Office Brands AGM

1. 2015 Annual General Meeting

2. Tullio Cofrancesco
Chief Financial Officer/Company Secretary

3. Financial Report 2014-2015
OFFICE BRANDS LIMITED

4. • Distributions to Licensees
• Declaration of Dividend
• Restoration of Balance Sheet
• Revenues & Expenses
• Net Earnings
KEY RESULTS 2014-2015

5. • Compliance Distributions of over $1.28M
• Total Rebate Distributions over $6.3M (including the early
payment of BPGI rebates)
• “Normalised” Rebate Distributions over $6.1M (when allowing
for early BPGI payments) compared to $5.9M in 2014.
DISTRIBUTIONS

6. DISTRIBUTIONS
$5,400,000
$5,600,000
$5,800,000
$6,000,000
$6,200,000
$6,400,000
2012
2013
2014
2015
Distribution to Licensees
Total Rebates Returned to Licensees

7. DISTRIBUTIONS
-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2011 2012 2013 2014 2015
Compliance Distributions
Total Compliance Distributions BPGI Redistribution Advertising Redistribution

8. • “Special” cash dividend of $2.10 cents per share (fully franked)
• Notional Yield of 11.6%
SPECIAL DIVIDEND

9. • Net Equity to over $1.7M
• Total Assets $3.97M
• Total Liabilities $2.18M
• Net Equity increased 14%
• Net Assets per Share $18.06 (2014: $15.42)
• Cash Reserves & Financial Assets increased 89%
• Current Ratio increased to 0.99:1 (2010: 0.37:1)
• Debt to Equity Ratio 1.5:1 (2014: 2.4:1)
• Retained Earnings $1.67M inc Asset Revaluation Write-back
BALANCE SHEET STRENGTH

10. BALANCE SHEET STRENGTH
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
2011
2012
2013
2014
2015
Current Ratio

11. BALANCE SHEET STRENGTH
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
2011
2012
2013
2014
2015
Net Assets

12. BALANCE SHEET STRENGTH
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2011
2012
2013
2014
2015
Debt To Equity Ratio

13. • Rebate and Advertising Revenues 4% growth
• Significant reduction in Direct Costs
• Growth in Gross Profit
• Increased Technology and e-Commerce Operational
Spend
REVENUES & EXPENSES

14. BALANCE SHEET STRENGTH
$2,950,000
$3,000,000
$3,050,000
$3,100,000
$3,150,000
$3,200,000
2011
2012
2013
2014
2015
Advertising Income

15. • Earnings Before Interest, Tax & Compliance Distributions down
by 7.5%
• Profit before Tax of $377,550 down 34% after early payment
of BPGI Rebates
• Net Profit after Tax of $310,029 after early payment of BPGI
Rebates
• Earnings per Share = $3.26
NET EARNINGS

16. • Record Licensee Distributions
(even after allowing for early payment of BPGI Rebate)
• Special Dividend $2.10 per share
• Net Equity $1.7M ( 14%)
• Net Assets per Share $18.06
• Current Ratio = 0.99:1
• Rebate & Advertising Revenues 4% Growth
• Earnings per Share = $3.26
SUMMARY