2015 Annual General Meeting

Tullio CofrancescoChief Financial Officer/Company Secretary

Financial Report 2014-2015OFFICE BRANDS LIMITED

• Distributions to Licensees• Declaration of Dividend• Restoration of Balance Sheet• Revenues & Expenses• Net Earnings

KEY RESULTS 2014-2015

• 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

DISTRIBUTIONS

20122013

20142015

$5,400,000

$5,600,000

$5,800,000

$6,000,000

$6,200,000

$6,400,000

Distribution to Licensees

Total Rebates Returned to Licensees

DISTRIBUTIONS

2011 2012 2013 2014 2015 2016 -

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000 Compliance Distributions

Total Compliance Distributions BPGI Redistribution Advertising Redistribution

• “Special” cash dividend of $2.10 cents per share (fully franked)

• Notional Yield of 11.6%

SPECIAL DIVIDEND

• 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

BALANCE SHEET STRENGTH

20110.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00Current Ratio

BALANCE SHEET STRENGTH

2011$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000 Net Assets

BALANCE SHEET STRENGTH

20110.00

1.00

2.00

3.00

4.00

5.00

6.00

Debt To Equity Ratio

• Rebate and Advertising Revenues 4% growth• Significant reduction in Direct Costs• Growth in Gross Profit• Increased Technology and e-Commerce Operational

Spend

REVENUES & EXPENSES

BALANCE SHEET STRENGTH

2011$2,950,000

$3,000,000

$3,050,000

$3,100,000

$3,150,000

$3,200,000

Advertising Income

• 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

• 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