Glg Corp Ltd · ASX:GLE
Glg — Investor Presentation (December 2005)
18 slides from Glg's investor presentation, Dec 14, 2005
Slide 1: GLG Corp Ltd
y GLG Corp Ltd An integrated one stop service provider for the global textile and apparel industry GK Soh - Chief Executive Officer Eu Mun Leong - Chief Financial Officer Surina Gan - Chief Marketing Officer 14 December 2005 TRICOM
Slide 2: GLG Corp is a world class leader in textile and apparel logistics
GLG Corp is a world class leader in textile and apparel logistics that is well positioned for future growth ... Our Business + Global SCM supplier exporting to US for over 25 years * Specialist Casual knitwear * Project manage textile and apparel supply chain for leading retailers * All inventory tr
Slide 3: The GLG Corp Network
Production capacity is sourced and managed through ultimate delivery to the end customers .... The GLG Corp Network os - pa , ee : Best Apparel Oe i, Be B i Los Angele Cee ee Ghitn Li Global Hong Kong edema tend Camila din 2 es Shim i Global Singapore © Matin Textite @ @ Singapore wo Sourcing 6 Merh
Slide 4: We have evolved our business model from manufacturer to supply chain manager
We have evolved our business model from being a textile and apparel manufacturer to supply chain manager ... Industry Competitor Manufacturing base Manufacturers Understand manufacturing Asset heavy GLG (supply chain manager) Started 6 sewing machines Understand manufacturing High value add Asset li
Slide 5: We are a primary supplier in our customers' supply matrix
We are a primary supplier in our customers’ supply matrix .. Competitive Strengths + Primary supplier in customers’ supply matrix and supply chain process « Long standing relationships based on demonstrated trust and performance « Integrated “one-stop” service provider — Design and trend services —
Slide 6: The Group supplies and has had long relationships with most large US retailers
The Group supplies and has had long relationships with most of the large US retailers .... Major Customers They include: — Macy's — Aeropostale — Wal-Mart — May Department Stores — Sears — K-Mart — Target — Eddie Bauer and — Foot Locker GLE WHITEEASTAG? ere re es ADTHINTIC Estate on | TRICOM
Slide 7: GLG Corp: Growth
GLG Corp: Growth « NO QUOTA — Add capacity globally ‘like hell’ — Consolidation of suppliers by existing customers — New customers TRICOM
Slide 8: The removal of quotas is expected to be a catalyst for industry change
The removal of quotas (USA, Canada and Europe) from Jan 2005 is expected to be a catalyst for industry change ... US Total Apparel Imports (US$ millions) Year to date - June 2003 2004 % change 2004 2005 % change World 61,162 64,767 5.9 29,071 32,359 11.3 China 7,258 8,928 23.0 3,755 7,404 97.2 India
Slide 9: GLG Corp: Growth
GLG Corp: Growth « NO QUOTA — Add capacity globally ‘like hell’ — Consolidation of suppliers by existing customers — New customers * FREE TRADE AGREEMENTS — Duty free « Possible Acquisition @ ghen a
Slide 10: Countries with US FTA / Preferential Treatment
Countries with US FTA / Preferential Treatment Trade Relief Assistance for Developing Economies Act Middle East South Asia( TRADEA) South East Asia Oceanic Countries Lao Peopie's Dernocratic Kiribati, Solomon Isiands, Republic, East Timer, Tuvalu, Sarnoa, Vanuatu Cambodia Yemen Afghanistan, Banglade
Slide 11: The Group has grown rapidly and expanded profit margins
The Group has grown rapidly over the last few years and at the same time expanded profit margins.... Financials A$ million (using A$1 = US$0.75) 2002 2003 2004 FY2006* Revenue 204.5 236.5 268.8 287.0 Cost of sales (185.3) (214.4) (243.4) (259.3) Gross profit 19.2 22.1 25.4 27.7 Other operating incom
Slide 12: Sales Bookings and Shipments Update
Sales Bookings and Shipments Update Forecast FY06: A$286.96M (Exchange Rate: US$/A$: 0.75) ASM Jul — Sept Q1 Oct — Dec Q2 Jan — Mar Q3 Apr — Jun Q4 Balance to be booked FY05 FY06 15.26 75.11 72.50 68.60 55.43 64.56 58.27 7.91 261.46 216.18 - 70.78 261.46 286.96 Remarks Bookings & Shipments 100% Comp
Slide 13: Sales remain on track with prospectus forecasts
Sales remain on track with prospectus forecasts .... Third Quarter Sales Update A$’million January February March TOTAL LY 18.36 15.38 21.69 55.43 Budget 24.06 18.33 22.91 65.30 Booking to date 25.33 18.73 20.50 64.56 13 TRICOM
Slide 14: And include a large element of repeat business
And include a large element of repeat business .... Customer Walmart Target Macy's Aeropostale Style Embroidered Blouse Stretch Terry Jacket and Pant Blouse Polo t-shirt Oct - Dec 2005 Pes (M) 2.20 0.50 0.27 0.70 A$ (M) 9.53 10.26 1.44 2.80 14 Oct -— Dec 2004 Pcs (M) 1.50 1.00 0.17 0.50 A$ (M) 6.50
Slide 15: Production capacity expansion is in line with prospectus forecasts
And production capacity expansion is now in line with prospectus forecasts ... Production Capacity Production Capacity Update, January — June 2006 Dozens Brunei 657,756 Indonesia 617,437 Malaysia 454,068 Guatemala 395,466 China 272,272 Sri Lanka 231,280 Cambodia 117,860 Singapore 93,632 TOTAL 2,839,
Slide 16: And US retail sales remain strong
And US retail sales remain strong ... US Retail Sales Key Retailers Comp Sales YTD Nov 2005 (43 weeks) 5.8% Target 5.3% Sam's 3.4% Koht's 3.4% Wal-Mart (US) 3.1% JC Penney Federated Sears May (2.0)% Limited (5.0)% Gap 16 TRICOM
Slide 17: GLG Corp: Summary (1)
GLG Corp: Summary (1) . ° ° Leading global casual knitwear sourcing company We are a B2B ‘brand’ to our customers Evolved to be Supply Chain Manager: — Proven value-add manufacturing knowledge — Asset light for growth Servicing America’s largest retailers 17 TRICOM
Slide 18: GLG Corp: Summary (2)
GLG Corp: Summary (2) « Growth opportunities from changes in industry dynamics — End of quota era — US Free Trade Agreements — Need to add capacity ‘like hell’ — New customers and markets « Experienced management team + Conservative capital raising pricing cere y yaaa 18 TRICOM