Range International Limited · ASX:RAN
Range International — Investor Presentation (December 2019)
30 slides from Range International's investor presentation, Dec 6, 2019
Slide 1: Capital Raising Presentation
ASX Announcement (ASX:RAN) 6 December 2020 For personal use only Capital Raising Presentation This presentation has been prepared by and contains general and background information about Range International Limited (‘Range International’ or ‘Company’), manufacturer of Re>Pal™ recycled plastic pallet
Slide 2: Range International Limited Capital Raising Presentation
1 Range International Limited For personal use only Capital Raising Presentation December 2019 RANGE INTERNATIONAL 2017
Slide 3: For personal use only
RANGE ( = INTERNATIONAL
Slide 4: Executive Summary
Executive Summary 3 Range International Limited (“Range”) is an Australian company producing Re>Pal ‘zero-waste,’ environmentally responsible For personal use only pallets for a wide range of applications across business supply chains Re>Pal’s zero waste pallets are made from 100% recycled waste
Slide 5: Executive Summary (continued)
Executive Summary (continued) 4 Sustainable supply chains are now being demanded by an increasing number of large companies and circular economy For personal use only relationships and initiatives are being embraced in a way as never before seen. Companies such as Danone Aqua recently started part
Slide 6: The Offer & Capital Structure
The Offer & Capital Structure 5 A conditional Placement to raise between $1.0 million and $1.5 million Offer A SPP to raise up to $0.90 million For personal use only Structure and Size The minimum capital raise is A$1.0 million The Placement will be conducted at $0.015 per share ‒ 16.67% dis
Slide 7: The Offer & Capital Structure
The Offer & Capital Structure 6 Shareholders Shares (m) Undiluted % Options (m) Diluted %4 For personal use only Existing Shareholders 201.10 56% - 50% Options1 - - 14.2 4% Director Options - - 24.0 6% New Shares issued Placement and 160.33 44% - 40% SPP3 Total 361.43 100% 38.2 100% 1. Options: • 1.
Slide 8: Timetable
Timetable 7 Timetable1 Date For personal use only Trading halt Prior to 10am, Tuesday, 3 December 2019 7:00pm (Sydney time) Wednesday, 4 December Record Date for determining eligible participation to subscribe for New Shares via the SPP 2019 Trading halt lifted, and announcement of the Placement and
Slide 9: The Team
The Team 8 Richard Jenkins, Executive Chairman Christopher Fong, Executive Director Stephen Bowhill, Chief Executive Officer Richard commenced work with Hill Samuel in 1979 For personal use only Chris is an Australian with thirty years of business Stephen was a Director of the Australian and Asian i
Slide 10: The Team
The Team 9 For personal use only Peter Wallace, Non-Executive Director Kenn MacMillan, Non-Executive Director Matthew Darby, Non-Executive Director Peter’s career spans private equity, corporate Kenn has over 26 years of financial services Matthew has an entrepreneurial background having advice, non
Slide 11: The Pallet Market
The Pallet Market 10 For personal use only Timber Pallet Pain Points: Risk - infestation of entire cargo Supply chain - getting wood Supply chain - product reliability Supply chain - inspections delays Profit - cost of wood (lumber is up) Profit - plastic price was high Profit - cost of fumigation C
Slide 12: The Solution: ThermoFusion process
The Solution: ThermofusionTM process 11 For personal use only RANGE INTERNATIONAL LTD (ASX: RAN) December 2019
Slide 13: The Solution: Re>Pal Products
The Solution: Re>Pal Products 12 Re>PalTM pallets – changing supply chain dynamics as supply chains in MNC’s The Re>Pal Nestable Pallet embrace Corporate Social Responsibility in supply chains Export/ block-stack For personal use only 1200 x 1000 Better lifetime value than virgin plastic or
Slide 14: Operations Update
Operations Update 13 Raw materials sourcing is integral to the Company’s performance and management continues to work to secure cheap, effective supply of raw materials: For personal use only Range’s production process is dependent on the availability of: High-density polyethylene (HDPE) typically
Slide 15: Operations Update
Operations Update 14 Sales pipeline is building, Re>Pal value proposition is resonating in today’s ‘sustainability focused’ market For background, in September 2018 Range moved away from ‘plastic as same price as timber’ value proposition which anchored the Company to For personal use only low p
Slide 16: Operations Update
Operations Update 15 Quarterly Highlights (September 2019) For personal use only Financials: Sales 32,834 pallets were sold (invoiced following delivery/collection), up 43.8% during the quarter up from 22,829 in Revenue the previous quarter increased Sales revenue grew 45% during the quarter
Slide 17: Financials: Group Revenue and EBITDA
Financials: Group Revenue and EBITDA1 16 Revenue US$000's EBITDA $US000's 1,800 2017 2018 2019 For personal use only 1,600 - (758) (1,140) (521) 376 (2,000) (3,934) (748) (632) 1,400 (1,026) 1,200 (4,000) (1,309) 557 367 519 1,000 (6,000) (3,332) 800 (8,000) 353 600 357 (3,140) 471 (10,000) 400 559
Slide 18: Tier 1, Diversified Customer Base
Tier 1, Diversified Customer Base 17 For personal use only Food Logistics FMCG Apparel Pharmaceutical Engineering Misc. Comments: Orders are taken from customers on a purchase order basis. The table is indicative of past and present customers of Range. RANGE INTERNATIONAL LTD (ASX: RAN) December 201
Slide 19: Production Capacity Limitations
Production Capacity Limitations 18 The Materials Processing System (MPS) is made up of three main components: Wash Plant For personal use only To lower raw material prices Re>Pal is now purchasing increasing quantities of dirty plastic for processing through the wash plant and diversifying sup
Slide 20: Strategy
Strategy 19 2020 For personal use only Grow: 2019 − Sales growth with large MNC’s regionally is key. Building a portfolio of Multi-National companies and large domestic warehouse 2018 Optimise: MNC’s with sustainability goals embedded − Right people for Growth phase; within procurement − Right size
Slide 21: Investment Highlights
Investment Highlights 20 The Company has reset its cost base, through cost cutting where it can, subject to ManPower laws in Indonesia and managing For personal use only Highlight 1 its resources base through production. We are continually looking at how we can improve the plant efficiency and raw
Slide 22: Disclaimer: Key Risks
Disclaimer 21 • The risks Key Personnel associated Risk with • an investment in Range Range is reliant The future on the capabilities of aoperating number ofperformance of Range its key employees whoand theextensive have value of an investment experience in the in, and Range Shares knowledge may beb
Slide 23: Disclaimer: Key Risks continued
Disclaimer 22 Key Risks continued… For personal use only Funding risk Range's ability to secure the requisite levels of funding to meet its capital requirements in the future will depend on the amount of funding required, the performance and future prospects of its business and a number of other fac
Slide 24: Disclaimer: Key Risks continued
Disclaimer 23 Key Risks continued… For personal use only Inability to Meet There is a risk that Range will not be able to increase its production capacity quickly enough, while maintaining appropriate quality standards, to meet customer orders or that its Customer Orders cost of goods remains too hi
Slide 25: Disclaimer: Key Risks continued
Disclaimer 24 Key Risks continued… For personal use only Key Personnel Risk Range is reliant on the capabilities of a number of its key employees who have extensive experience in, and knowledge of, Range's business and the market in which it operates. Litigation As with all businesses, Range will be
Slide 26: Disclaimer: Risks associated with Range Shares
Disclaimer 25 Risk associated with Range Shares For personal use only Market price of Range The market price of Range shares may fluctuate over time as a result of a number of factors including the financial performance and prospects of Range, prevailing market Shares conditions, general investor se
Slide 27: Disclaimer: Risks associated with Range Shares continued
Disclaimer 26 Risk associated with Range Shares continued… For personal use only Past performance Past performance cannot be relied upon as an indicator of future performance. General General risk factors outside the control of Range, which may have a significant impact on the future performance of
Slide 28: Disclaimer & ASIC Guidance
Disclaimer Disclaimer & ASIC Guidance • This presentation has been prepared by Range International Limited (ABN 22 611 998 200) (Range). For personal use only Summary information • This Presentation contains summary information about Range and its subsidiaries (Range Group) and their activities curr
Slide 29: Disclaimer: Future performance continued
Disclaimer Future performance continued… • For personal use only An investment in Range shares is subject to investment and other known and unknown risks, some of which are beyond the control of the Range Group, including possible delays in repayment and loss of income and principal invested. Range
Slide 30: Disclaimer: ASIC Guidance
Disclaimer ASIC GUIDANCE • In December 2011, ASIC issued Regulatory Guide 230. To comply with this Guide, Range is required to make a clear statement about whether information disclosed in documents other than the financial report For personal use only has been audited or reviewed in accordance with
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