Xenitra Limited · ASX:XEN
Xenitra — Merger or Acquisition (April 2019)
33 slides from Xenitra's merger presentation, Apr 17, 2019
Slide 1: Acquisition of Broadway and Equity Raising
AuMake International Limited Acquisition of Broadway and Equity Raising April 2019
Slide 2: Important notices and disclaimer
Important notices and disclaimer The investor presentation (“Presentation”) has been Not an offer The distribution of this presentation in other jurisdictions Financial data prepared by AuMake International Limited (ACN 150 110 outside Australia may also be restricted by law and any This Presentatio
Slide 3: Important notices and disclaimer
Important notices and disclaimer Past performance There can be no assurance that actual outcomes will not Investment risk differs materially from these forward- looking statements. Past performance information given in this presentation is An investment in AuMake shares is subject to investment A nu
Slide 4: Acquisition of Broadway
Acquisition of Broadway — Announcement – AuMake International Limited (“AuMake”) has reached an agreement to purchase the business assets of an affiliated retail store network (”Broadway”) — Complementary business – Broadway operates eight (8) store locations in Australia and New Zealand (“ANZ”) pro
Slide 5: Proforma transaction impact
Proforma transaction impact AuMake will have a significantly improved financial profile following the transaction AuMake FY191 Broadway FY192 Proforma FY19 Uplift Revenue ($m) 45 30 75 67% Gross Margin 20% 30% 24% 20% Gross Profit ($m) 9 9 18 100% EBITDA ($m) minor loss 3.5 positive positive AuMake
Slide 6: 1. Transaction summary
1. Transaction summary > AuMake international Limited
Slide 7: Transaction summary
Transaction summary AuMake’s acquisition of Broadway increases earnings and expands store locations into all strategically relevant locations in Australia and New Zealand (ANZ), enhancing AuMake’s influence in the cross border retail and inbound Chinese tourist markets Transaction Compelling strateg
Slide 8: 2. Acquisition rationale
2. Acquisition rationale > AuMake international Limited
Slide 9: Acquisition summary
Acquisition summary Overview of the Acquisition of — AuMake to acquire Broadway, an inbound Chinese tourist focused business Broadway Group — 20 years experience in the inbound Chinese tourist market with extensive relationships both in Australia and China. — Eight (8) strategically located affiliat
Slide 10: Compelling acquisition rationale
Compelling acquisition rationale AuMake’s acquisition of Broadway increases Company earnings and expands the store footprint into strategically relevant locations in ANZ, enhancing AuMake’s influence in the cross border retail and inbound Chinese tourist markets Respected inbound Chinese — Respected
Slide 11: Opportunity to transform the cross border retail and inbound Chinese tourist markets in ANZ
Opportunity to transform the cross border retail and inbound Chinese tourist markets in ANZ Significant market share to ——With a total of 25 stores, AuMake will be the market leader in Australia and NZ influence product trends ——Capability to create trends for what Chinese consumers buy and what pro
Slide 12: Industry statistics
Industry statistics1 Australia Chinese visitation New Zealand Chinese visitation Chinese visitor arrivals by purpose: 2006–07 to 2026–27 Data sources: Overseas Arrivals and Departures, Department of Home Affairs; Tourism Forecasts 2017, Tourism Research Australia Tourism Research Australia (TRA) for
Slide 13: Package and group tourists are mainly from lower-tier cities
Industry statistics1 As demand for outbound travel AuMake empirical data Forecast proportion of Chinese household income by city tier, derives from all age groups From industry observation over the last 12 2016 to 2030 across different cities, package months, AuMake estimates that 500,000 Data sourc
Slide 14: 3. Overview of Broadway
3. Overview of Broadway > AuMake international Limited
Slide 15: Broadway Business Model
Broadway Business Model Existing Broadway Model During FY19 over 30,000 tourists visit broadway stores across eight locations Tourists purchase products on Relationship with tour guides average of A$1,000 per head; and travel agencies – product mix includes popular Broadway features on Chinese brand
Slide 16: Broadway – strategic locations
Broadway – strategic locations Cairns Gold Coast Sydney Auckland Rotorua Melbourne AuMake International Limited 16
Slide 17: Broadway – stores overview
Broadway – stores overview Cairns Cairns Gold Coast Gold Coast Store Coral Legend Pty Ltd Coral Legend Pty Ltd Gold Port Souvenir Outlet - Q1 Gold Port Souvenir Outlet Location T68, DFO Cairns, 9/1 Marlin Parade Cairns T4&5 at Q1 building, 19 Warehouse Road Southport QLD 274 Mulgrave Road Cairns QLD
Slide 18: Broadway – stores overview
Broadway – stores overview Sydney Melbourne Auckland Rotorua Store Broadway Tax Free Pty Ltd Maxbuy Australia Pty Ltd PNL Souvenir Centre Sweet Dream Location Suite GB 11, 22-36 Mountain St, 52 Market St, Melbourne VIC 3000 Unit 1, 106 St Georges Bay Road 120 Riri Street Rotorua, Ultimo NSW 2007 Aus
Slide 19: 4. Combined group profile
4. Combined group profile > AuMake international Limited
Slide 20: AuMake & Broadway locations
AuMake & Broadway locations JD.com —Combined 25 store locations in Queensland, CHINA New South Wales, Victoria and New Zealand. x2 —Major Chinese Tourist locations covered with Cairns highly experienced staff at each location. —Bring ‘look and feel’ of Broadway stores in AUSTRALIA x1 line with AuMak
Slide 21: Three significant revenue and profit streams in addition to retail gross margin
The Opportunity – Apply AuMake model to Broadway Three significant revenue and profit streams in addition to retail gross margin Increase online sales — Currently Broadway does not provide online functionality to its customer base: • Online appeals to a younger demographic • Online increases repeat
Slide 22: Proforma transaction impact
Proforma transaction impact AuMake will have a significantly improved financial profile following the transaction AuMake FY191 Broadway FY192 Proforma FY19 Uplift Revenue ($m) 45 30 75 67% Gross Margin 20% 30% 24% 20% Gross Profit ($m) 9 9 18 100% EBITDA ($m) minor loss 3.5 positive positive AuMake
Slide 23: Proforma statement of financial position
Proforma statement of financial position AuMake will have a significantly improved financial profile following the acquisition of Broadway AuMake as at 31 .12.184 Equity Raising5 Broadway acquisition Proforma Combined Group as at 31.12.18 $m $m $m $m Cash 8.0 6.7 -5.06 9.7 Inventory 3.8 - 1.5 5.3 Fi
Slide 24: 5. Equity raising overview
5. Equity raising overview > AuMake international Limited
Slide 25: Equity raising overview
Equity raising overview Transaction financed by equity raising to allow for maximum shareholder upside to acquisition Offer size and structure — Equity raising of $7 million — 43.75 million new AuMake shares to be issued Offer pricing — Offer price of $0.16 per New Share, represents a: • 21% discoun
Slide 26: Indicative equity raising timetable
Indicative equity raising timetable Event Date ASX trading halt 15 April 2019 ASX announcement of the Proposed Transaction and capital raising 17 April 2019 Appendix 3B, cleansing notice and issue of Placement shares 30 April 2019 Issue of Notice of meeting seeking approval for issue of consideratio
Slide 27: 6. Summary
6. Summary ; AuMake International Limited
Slide 28: Company highlights
Company highlights With the acquisition of Broadway Group, AuMake has created a platform for long-term sustainable growth 1 2 3 4 AuMake transformed into Broadway provides Leveraging AuMake model Company changing the dominant brand in the immediate presence for to significantly improve transaction t
Slide 29: FY20 outlook and beyond
FY20 outlook and beyond Market — Highly attractive and long term growth prospects — Chinese visitor spend is forecast to rise to $26.2 billion in 2026–27 from $9.8 billion in 2016–17 — Cross border retail and Chinese tourist markets in ANZ continuing to be major channel for delivery of products to C
Slide 30: Key risk factors
Key risk factors Loss of key management The Company’s ability to remain productive, profitable and competitive and to implement planned growth initiatives depends on the continued employment and performance of senior executives and other key members of management. The Company’s personnel and ability
Slide 31: Key risk factors
Key risk factors Economic risk and external Various factors including political movements, stock market trends, changing customer preferences, interest rates, inflation levels, commodity prices, foreign exchange rates, industrial disruption, environmental impacts, international competition, taxation
Slide 32: Proforma financials – basis of preparation
Proforma financials – basis of preparation 1. The annualised financial performance of of AuMake includes its half year report as at 31 December 2018, unaudited management accounts from 1 January 2019 to 31 March 2019 and a management forecast for the period between 1 April 2019 to 30 June 2019; 2. T
Slide 33: Contact details
Contact details CORPORATE WEBSITE www.aumake.com.au MEDIA RELATIONS Lynn Semjaniv, Sauce Communications Mobile: 0481 004 797 Email: lynn@saucecommunications.com.au INVESTOR RELATIONS Keong Chan Executive Chairman Email: keong.chan@aumake.com.au Twitter: @AuMakeAus Instagram: @aumake LinkedIn: www.li