Prestal Holdings Limited · ASX:PTL
Prestal — Pental — Merger or Acquisition (August 2021)
32 slides from Prestal's merger presentation, Aug 20, 2021
Slide 1: Investor Presentation August 2021
For personal use only Investor Presentation August 2021 1
Slide 2: Executive Summary
For personal use only Executive Summary 2
Slide 3: Pental Snapshot
Pental Snapshot ASX:PTL $60m 1956 Melbourne For personal use only Ticker Market Cap Origin HQ Key Consumer Brands1 Shepparton | Manufacturing & Warehousing • Soap plant Distribution Channels Manufacturing Gross Sales • Bleach plant VIC • Liquids plant Australian Major • Firelighters plant 5% 5% 10%
Slide 4: Pental Overview
Pental Overview 3 years of year-on-year growth For personal use only The Pental Business Pental Growth Strategy Pental Limited (Pental, ASX:PTL, or the Company) is a specialist fast Pental has a clear and structured strategy for developing both organic and moving consumer goods (FMCG) and household
Slide 5: Recent Developments & Key Wins
Recent Developments & Key Wins Pental has had several recent key wins that reinforce its position as a household goods and FMCG leader For personal use only 0 Exclusive Bleach New Jiffy Firelighter New White King Toilet New White King Stain New Softly Range Distribution Agreement Products Gel Range
Slide 6: Pental FY21 Performance Update
Pental FY21 Performance Update Strong Performance impacted by Duracell distributorship changes in H2 FY21 For personal use only Pental Performance Update ($m) FY20A FY21F1 Change Change (%) • Net sales marginally down as COVID demands subsided in second half combined with impact of changes from Dura
Slide 7: Sales Channel Diversification Strategy
Sales Channel Diversification Strategy A key strategic objective of expanding the e-commerce sales channel is to drive volume, revenue & margins of existing & newly developed products For personal use only Large supermarkets and Distribitors, discount stores, Large retail, hardware, route & Focus on
Slide 8: Acquisition Overview
For personal use only Acquisition Overview 8
Slide 9: Hampers With Bite Snapshot
Hampers With Bite Snapshot Hampers With Bite Pty Ltd (HWB) are hamper and gifting specialists, For personal use only • providing a range of hampers and gifts with the ability for customers to create their own hamper, or simply purchase one of HWB’s pre- designed hampers online. HWB hampers and gifts
Slide 10: HWB Detail
HWB Detail HWB has delivered significant growth across both B2C and B2B sales channels For personal use only • HWB provides premium quality hampers and gifts at affordable prices, utilising Customer Growth1 a combination of own-brand (+60%) and high margin third party brands and 80k products Overvie
Slide 11: Transaction Rationale
Transaction Rationale Diversifying our sales channels by fast tracking the e-commerce growth strategy For personal use only Online Channel Growth Revenue Synergies HWB represents a transformational and Significant cross-selling opportunities strategically compelling acquisition with with Pental’s pr
Slide 12: Revenue Synergies
Revenue Synergies Pental’s existing products and bundle packs will be cross-sold through HWB’s extensive online channel with Pental also adopting a subscription model for select products to be sold direct to consumers For personal use only Cross-selling Strategy Pental Product Subscriptions Pental P
Slide 13: HWB Management
HWB Management Management have significant For personal use only experience in developing and growing e-commerce focused businesses Rory Boyle Nicholas Boyle Charlotte Burley Natasha Giannetti Co-Founding Director Co-Founding Director Head of Operations General Manager Rory has established himself a
Slide 14: Transaction & Capital Raise
For personal use only Transaction & Capital Raise 14
Slide 15: Pro-forma Profit & Loss
Pro-forma Profit & Loss HWB earnings will fully offset lost earnings following alterations to the Duracell Distribution Agreement For personal use only • Pental expects total pro-forma net sales revenue for FY21F1,2 to be $148.9m FY21 Forecast as a result of the acquisition Pro-Forma Summary Income
Slide 16: Pro-forma Balance Sheet
Pro-forma Balance Sheet Strong balance sheet with $12.7m in cash and no debt (pre-acquisition) For personal use only • The transaction will be undertaken on a debt-free / cash-free basis with an FY21 Forecast average working capital level to remain in the business Pro-Forma Balance Sheet1,2 ($m) HWB
Slide 17: Transaction Overview
Transaction Overview Pental will acquire HWB for a total consideration of $28.3m (inclusive of Earnout) using a mix of cash and equity to be issued to the Target. For personal use only Sources of Transaction Funding The $28.3m purchase price (inclusive of Earnout) will be paid as Net Debt from bank
Slide 18: Capital Raise Overview
Capital Raise Overview Pental will undertake a $6.0m institutional Placement (with an ability to accept oversubscriptions of up to $2.0m) & a $2.0m SPP to existing shareholders to fund a component of the acquisition consideration For personal use only Two Tranche institutional Placement to raise a m
Slide 19: Timetable & Use of Funds
Timetable & Use of Funds Indicative timeline and expected disbursement of funds For personal use only Indicative Timetable1 2021 Use of Funds2 A$m Trading Halt 9:00am (AEST), Wednesday, 18 August Acquisition of HWB $4.6m Bookbuild completed for Placement Thursday, 19 August Costs of the Acquisition
Slide 20: Appendix
For personal use only Appendix 20
Slide 21: Important Notice & Disclaimer
Important Notice & Disclaimer Introduction For personal use only The following Important Notice and Disclaimer applies to this presentation and you are therefore advised to read this carefully before reading or making any other use of this presentation or any information contained in this presentati
Slide 22: Important Notice & Disclaimer (continued)
Important Notice & Disclaimer (continued) Not an offer For personal use only This presentation is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offer document under Australian law or any other law (and will not be lodged with the Au
Slide 23: Important Notice & Disclaimer (continued)
Important Notice & Disclaimer (continued) Investment risk For personal use only An investment in Pental’s shares is subject to investment and other known and unknown risks, some of which are beyond the control of Pental including loss of income and principal invested. Pental does not guarantee any p
Slide 24: Important Notice & Disclaimer (continued)
Important Notice & Disclaimer (continued) Disclaimer For personal use only The information in this presentation has been obtained from or based on sources believed by Pental to be reliable. To the maximum extent permitted by law, Pental, its representatives and advisers, and their respective affilia
Slide 25: Key Risks
Key Risks This section discusses some of the potential key risks with an investment in shares in PTL. Each of the risks set out below could, in isolation or in combination, if they eventuate, have a material adverse For personal use only impact on PTL’s business, financial condition and performance,
Slide 26: Key Risks: Acquisition Risks
Key Risks Acquisition Risks For personal use only If the Acquisition completes, PTL will assume certain historical liabilities in respect of the HWB business. Such liabilities could include liabilities which were not identified Historical liabilities by PTL during its due diligence or which are grea
Slide 27: Key Risks: Acquisition Risks
Key Risks Acquisition Risks For personal use only The integration of a business of the size of the HWB business carries risk, including potential delays or costs in implementing necessary changes, and difficulties in integrating various operations that were previously operated independently. The suc
Slide 28: Key Risks: Business Risks
Key Risks Business Risks For personal use only There is a risk that PTL will be unable to offer a sufficient number of successful new products which could potentially result in reduced or negative growth. There is a risk that new PTL products developed and launched to the market, including those ari
Slide 29: Key Risks: Business Risks
Key Risks Business Risks For personal use only There is a risk that laws or regulations may be introduced or amended in Australia, or in foreign jurisdictions in which the PTL sells, or sources its ingredients and/or products. Changes to the regulatory environment could have a material effect in a n
Slide 30: Key Risks: Business Risks
Key Risks Business Risks For personal use only The PTL group portfolio of brand names and related intellectual property are key assets of the business. The reputation and value associated with these brands and related intellectual property could be adversely affected by a number of factors, includin
Slide 31: Key Risks: Offer Risks
Key Risks Offer Risks For personal use only There are general risks associated with investments in equity capital such as PTL shares. The trading price of PTL shares may fluctuate with movements in equity capital markets in Australia and internationally. This may result in the market price for the N
Slide 32: Contact
For personal use only Contact: Charles Reed Director | PAC Partners M: +61 437 533 220 E: [email protected] James Emonson Associate Director | PAC Partners M: +61 411 827 342 E: [email protected] 32