Slide 1: GLG Corp Ltd Corporate Presentation
For personal use only GLG Corp Ltd Corporate Presentation April 2017 Shawn Fung Chief Financial Officer
Slide 2: Disclaimer and forward looking statements
2 This presentation has been prepared by GLG Corp Ltd. (“GLG” or the “Company”) based on information available to it as at the date of this presentation. The information For personal use only in this presentation is provided in summary form and does not contain all information necessary to make an i
Slide 3: Capital Structure
3 Capital Structure For personal use only ASX Code GLE Ordinary shares on issue 74.1 million Joined the ASX December 2005 Top 5 Shareholders 87.96% OTHERS Market cap. A$18.5 million Miss Susan 12% Yong (based on closing price of 25c at 3 April 2017) 2% Mr Yoke Min Pang 3% Financials (at 31 December
Slide 4: A leading vertically-integrated global textile and apparel business
4 …a leading vertically-integrated global textile and apparel manufacturing and supply chain business For personal use only • 7,000 employees across 7 countries • 1 owned fabric mill (Malaysia) • 1 owned garment manufacturing facility (Vietnam) • 6 outsourced manufacturing facilities (Cambodia, Indo
Slide 5: A diverse product range across all genders and age groups
5 • A diverse product range across all genders and age groups For personal use only • Cotton & cotton blends, organic & recycle yarn • Our vast manufacturing network and technical competence allows us to service different customers internationally
Slide 6: We ship over million garments annually
6 For personal use only • We ship over 62 million garments annually • Our customers include many big name retailers and fashion houses across the US, Canada and Europe Revenue by destination Customer contract length Revenue by key customer Europe Walmart CAN 25% 19% LIDL Walmart USA >15 years <5 yea
Slide 7: Fabric mill production process
7 • Yarn is sourced from overseas suppliers with agreed lead time for deliveries For personal use only • Total yarn consumed by Maxim 25 million lbs pa • Cost of yarn constitutes about 58% of total costs of fabric production • Finishing capacity is about 22 million lbs pa • It takes 10 mins to finis
Slide 8: One-stop service provider
8 • Primary supplier in customer’s supply matrix and supply chain process For personal use only • One-stop service provider • Product design & development – 25 years of track record for leading brands • Fabric R&D sourcing • Vertical fabric mill • Efficient supply chain management / direct importer
Slide 9: Significant skill and knowledge: 7,000 employees
9 • Significant skill and knowledge For personal use only • 7,000 employees in 7 countries • GLG is a member of the Textile & Fashion Federation in Singapore • Felicia Gan, CMO/Executive Director sits on the Executive Committee
Slide 10: Vietnam garment factory development completed
10 • Greenfield development completed in September 2016 For personal use only • On time and on budget • Based in Ho Chih Minh city area (Binh Son Industrial park) • Size area approx. 40,100m2 • First in-house garment factory • Leverages Vietnam’s strengths • Key garment manufacturing centre • Abunda
Slide 11: Vietnam factory projected capacity and lines
11 • Projected garment facility will have 56 sewing lines each with 32 sewing workers For personal use only • We will have: • Polo 10 lines • Tops 15 lines • Pants 2 lines • Jackets 10 lines • Activewear 10 lines • Fashion 9 lines • 2 million units per month expected capacity • Auto cutting & laying
Slide 12: Strategic imperatives
12 Strategic imperatives For personal use only • Defend and extend our core business • Expand into profitable related ventures such as acquisitions and mergers vertically or horizontally • Selectively disrupt markets and adapt to new markets • Grow in untapped countries eg. China, Australia, Asia in
Slide 13: Customer updates: G-III Apparel and Gerber
13 GIII APPAREL GROUP LTD • US diversified apparel company – comprehensive portfolio of over 30 licensed and For personal use only proprietary brands, including Calvin Klein, Donna Karan, Guess, Tommy Hilfiger, Karl Lagerfeld, Levi’s, Dockers and Jessica Simpson • We produce • Basic Tops – shipments
Slide 14: USA retail shift to online shopping
14 USA For personal use only • Experiencing decline in retail store numbers as online shopping increases • Growth in online shopping driven by: • Dramatic increase in mobile technology usage; • Innovative online sales; and • Loyalty and free shipping programs • Need to expand customer base to includ
Slide 15: Meeting customer demand through vertical integration
15 • Our clients want Lower costs For personal use only • • Shorter lead times Vertical Short lead integration of • Vertical integrated suppliers time supplier • High quality • Innovative product development • GLG is meeting this demand through Low cost Quality • New fabric mill (Maxim) with own fab
Slide 16: Energy saving initiatives
16 For personal use only In the offices • Changed office lighting from T8 to T5 energy efficient bulbs for 60% reduction in energy consumption • Changed halogen bulbs to LED bulbs for 80% reduction in energy consumption • Reduced usage of centralised air condition system by 2hrs daily for 20% reduct
Slide 17: Awards from customers, suppliers and peers
17 • By our customers, suppliers and industry peers For personal use only • Most recent awards are Macy’s 5-Star Award received in 2015 and Walmart Canada’s Supplier Award in 2014
Slide 18: Financial information
Financial information Ajuo esn yeuosied 104 @%
Slide 19: Revenue and profit results
19 • Revenue impacted as a result of US economy FY 2016 For personal use only (US$’000) 1H FY 2017 1H FY 2016 (June year end) impacting some retailers • Offset in part by new contracts Sales 70,932 90,229 170,797 Cost of Sales (61,881) (79,338) (151,136) • Gross profit improved due to increase in Gr
Slide 20: Operating expenses
20 • Selling and distribution expenses decreased 34% For personal use only • Freight cost reduction • Administrative expenses decreased 5% • Saving in manpower costs; and • Reduction in some discretionary spending • Finance costs decreased 45% as a result of the elimination of trade credit service f
Slide 21: Assets
21 • Inventory reduced in line with the revenue reduction For personal use only • Receivables up due to increase in working capital for (US$’000) 1H FY 2017 FY 2016 outsourced manufacturing facilities to purchase materials Current assets for our production orders Cash & equivalents 9,742 7,908 Trade
Slide 22: Liabilities and equity
22 • NTA per share, $0.61 per share as of 31 December 2016 (US$’000) 1H FY 2017 FY 2016 For personal use only Current liabilities • Trade Payables increased due to: Trade & other payables 24,994 23,097 • Vietnam factory not operationally-ready, hence need to use Working capital facility 46,164 41,33
Slide 23: Net debt and equity
23 For personal use only US$ (million) 70.0 120.00% 60.0 100.00% 50.0 80.00% NET DEBT & EQUITY 40.0 60.00% 30.0 40.00% 20.0 20.00% 10.0 0.00% 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -10.0 -20.00% Net Debt ( Long&Short Term Borrowing exclude Cash and Cash Equivalent) Equity (All Ca
Slide 24: Cash flows
24 1H FY2017 1H FY2016 FY2016 Cash from operating activities Cash flows from operating activities For personal use only • decreased due to decrease in Receipts from customers 72,692 98,875 176,843 revenue caused by: Payments to suppliers and employees (65,120) (89,621) (173,033) • Weakness in retail
Slide 25: Investment highlights
25 • Leading vertically-integrated global textile and apparel manufacturing and supply chain business For personal use only • Proven value-add manufacturing knowledge and ability • Long-standing customer relationships • Servicing America’s largest retailers • Consistent history of being profitable C
Slide 26: Appendices
Appendices Ajuo esn yeuosied 104 @%
Slide 27: Supplier accreditation
Supplier accreditation 27 Technical Fit Expertise For personal use only • Grading of Technical Specification • MACYS 360 FIT APPROVAL Trained and READY • Self Approval for Fit / PPS • Integration of Patterns & Markers automation Quality Assurance • Achieving The Right Final Product On-time • Adheren
Slide 28: Board and management
28 For personal use only Estina Ang Felicia Gan Christopher Chong Shane Hartwig Founder, Executive Chairman Executive Director Independent Director Independent Director & CEO Christopher is a Partner and co-founder of ACH Shane is a Certified Practicing Accountant and Estina has over 25 years of exp
Slide 29: Capital Structure
29 Capital Structure For personal use only ASX Code GLE Ordinary shares on issue 74.1 million Joined the ASX December 2005 Top 5 Shareholders 87.96% Market cap. A$18.5 million Singapore Shareholders 82% (based on closing price of 25c at 30 March 2017) China Others 2% 1% OTHERS Miss Susan 12% Austral