Prestal Holdings Limited · ASX:PTL
Prestal — Pental — Merger or Acquisition (September 2023)
29 slides from Prestal's merger presentation, Sep 14, 2023
Slide 1: Pental Consumer Products Divestment
Investor Presentation | September 2023 Pental Consumer Products Divestment
Slide 2: Table of contents
Table of contents 1 Consumer Products Divestment 2 Overview & Pro Forma Financials 3 Future Strategy 4 Capital Management 5 Board Structure 6 Timetable 7 Appendix 2
Slide 3: Consumer Products Divestment
\ 1 Consumer Products Divestment 3
Slide 4: Proposed Transaction
Proposed Transaction Pental Limited (PTL) to divest Pental Products business and properties for a total sale price of $60.0m (subject to adjustments), transforming PTL into a dedicated eCommerce gifting & hampers business Item Description Sale of Pental • Pental to divest the Pental Consumer Product
Slide 5: Proposed Transaction
Proposed Transaction Pental Limited (PTL) to divest Pental Products business and properties for a total sale price of $60.0m (subject to adjustments), transforming PTL into a dedicated eCommerce gifting & hampers business Item Description • Pental’s directors unanimously recommend Pental shareholder
Slide 6: Benefits for Shareholders
Benefits for Shareholders The Pental Board considers the proposed transaction to be in the best interests of shareholders Item Description • The total sale price plus expected agreed and customary adjustments, the unwinding of the Duracell distributorship, debtors and creditors, represents approxima
Slide 7: Transaction Details
Transaction Details Pental is seeking shareholder approval to divest their Consumer Products division Sale of Consumer Products & Shepparton Manufacturing Facility • Buyer is Selleys, a division of DuluxGroup (Australia) Pty Ltd (DuluxGroup) • DuluxGroup is a subsidiary of Nippon Paint Holdings, the
Slide 8: Overview & Pro Forma Financials
2 Overview & Pro Forma Financials 8
Slide 9: Overview
Overview As part of the proposed Transaction, Pental will not retain their Owned Brands or Contracted Brands divisions and instead would operate as a stand-alone eCommerce business Current Business Divisions Pental Moving Forward Owned Brands Contracted Brands • Our aim is to be a market-leading eCo
Slide 10: Pro Forma Income Statement
Pro Forma Income Statement FY23 FY23 HwB • Challenging conditions for HWB business in $’000 Change % Group Pro Forma FY23 with significant inflation, cost of living 24,344 (90,917) (78.9%) pressures and soft demand for e-commerce in Net Sales 115,261 general Underlying EBITDA 11,551 2,806 (8,745) (7
Slide 11: Pro Forma Balance Sheet
Pro Forma Balance Sheet FY23 FY23 HWB • HWB expected to retain a healthy balance $’000 Change Group Pro Forma sheet with approximately $19m cash to be Assets available on balance sheet post settlement and Cash 1,784 128 (1,656) distribution in Dec 2023 Trade & Other Receivables 15,469 180 (15,289) •
Slide 12: Future Strategy
Future SUaLegy 1 VITALE
Slide 13: Growing our eCommerce Business
Growing our eCommerce Business Growth Strategy Key Pillars for Growth in FY24 Throughout FY23, the business Expansion of Range B2B Focus New CRM System New Machinery has taken significant steps in building and / or acquiring the infrastructure required to scale quickly and generate greater 1 2 3 4 m
Slide 14: Range Expansion
Range Expansion Settlement Range Bridesmaid Range Currently brings in $1m in revenue on average Wedding season is a lucrative market - offering annually bridesmaid boxes in our range can tap into this demand By updating the range and offering modern settlement hampers, we can personalise A bridesmai
Slide 15: B2B Focus
B2B Focus Resellers Range B2B / Property Exhibitions Incorporated a 25% margin into resale price (RSP), Attending Expos in person will give us exposure to new without compromising a healthy margin for HWB. clients Resellers and retailers are a market we haven't Attending / sponsoring the HR Evolve e
Slide 16: CRM System
CRM System Throughout FY23 the business integrated HubSpot, an all in one Sales CRM, Servicing, and Marketing platform Integrates with website, phone system, social media and digital ads to follow end to end customer journey Real time data insights into B2B and B2C customer behaviour In-built automa
Slide 17: New Machinery
New Machinery Nearly 3,000 of our customers request branding on their order and presents a significant opportunity to attract new customers and increase Average Order Value Highlights Outlook • Pental currently brands: o Gift cards o Ribbon 2,700 branded o Box sleeves customers in FY22 / 23 • To exp
Slide 18: Warehouse, Distribution and Production
Warehouse, Distribution and Production New Revenue Streams: Implement a co-packing function for internal and external clients Increased Storage: Futureproof volume projections of the storage of NEW WMS raw materials, packaging and our finished Hampers Using Pronto software Cost Reduction: Reduction
Slide 19: New Gifting Platform - Smileship
New Gifting Platform - Smileship Leveraging Existing Database We have launched our New eCommerce gifting website Smileship to leverage our existing HWB B2B and B2C customers as an avenue for those already registered on our Hampers with Bite database. 106% Increase in the Personalized Gift Year-long
Slide 20: Bondi Soap and Vitale Wellness
Bondi Soap and Vitale Wellness B2B Cold Outreach Currently running a cold outreach campaign selling Vitale 9.12% Wellness & Bondi Soap products directly to hospitality Skincare market venues. Cutting out the middleman and increasing margins growth CAGR Database Growth from 2021 – 2028 Database growt
Slide 21: Capital Management
Capital Management QM winrsss PoNDr ©) VITAL
Slide 22: Capital Management
Capital Management The Pental business will remain profitable and it is the intention of the Board to retain the current capital management strategy and ensure profits are returned to shareholders • Dividend payout history of ~70% of NPAT expected to be maintained Dividend Policy • A Dividend Reinve
Slide 23: Board Structure
Board Structure Gm eweers BONDI.) VITAL
Slide 24: Current Board Structure
Current Board Structure Changes and restructures to be advised in due course Name & Position Background • Mark has over 35 years’ experience having held previous positions in corporate finance, funds management and various C-suite roles Mark Hardgrave • Currently a Non-Exec Director of ASX listed co
Slide 25: Timetable
Timetable CGD auesss enor G&S) VITAL
Slide 26: Timetable
Timetable An indicative timetable, which is subject to change, is set out below Key item Date Notice of Meeting despatched to shareholders 22 September 2023 FY23 final dividend paid 6 October 2023 Extraordinary General Meeting (EGM) to approve sale of Pental Products business and 23 October 2023 She
Slide 27: Important Notice & Disclaimer
Important Notice & Disclaimer This presentation has been prepared by Pental Limited ACN 091 035 353 (Company). This presentation contains These forward-looking statements may be affected by a range of variables which could cause actual results or summary information about the Company, its subsidiari
Slide 28: Appendix
7 Appendix 28
Slide 29: Funds Flow Illustration
Funds Flow Illustration* Sources A$M Uses A$m Sale of assets in consumer goods business 60.0 Repayment of bank debt 1.3 Expected adjustments including working capital (0.3) Special dividend (at 6c per share) 10.2 like adjustments Proceeds from unwinding of Duracell 3.8 Capital return** (at 18c per s