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FY15 INVESTOR PRESENTATION

17 September 2015

CEO/MD – Mark Newman

CFO – Vanessa De Bono

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A year of transformational repositioning and investment - Reduced discounting in Oroton has elevated the brand but

resulted in reduced sales and earnings in this transitional year - Oroton International consolidation with a solid network platform

- Gap brand awareness builds with a further 3 stores opened

- Group LFL sales in first 7 weeks of FY16 were +11% as the strategy

gains traction

Brooks Brothers joint venture exited

Group Revenue up 6% to $132.0m:

- Oroton sales were -4% due to the impact of less discounting

- GAP sales were +81%

Net margin declined to 60.7% due to: - Oroton – downward pressure due to higher USD purchasing

costs in AUD offset by improved constant currency margin

generation on higher average selling prices and lower markdowns

- Mix shift to GAP which has lower margin than Oroton

Underlying CODB increased to 56.1% (1) of sales (FY14: 51.3% ) led by:

- Higher mix of GAP in the cost base offset by vigilant expense control

Underlying EBIT reduced to $6.8m (1) - Reduced sales in Oroton First Retail stores from less discounting,

establishment costs/losses for GAP partly offset by reduced losses in

the International business

Underlying EPS down 58% to 9.3 cents (1) - Current effective tax rate is 48.1% due to non-deductibility of

international losses and equity accounted losses in Brooks Brothers

(FY14: 37.3%)

Strong Balance Sheet and low Gearing to support growth initiatives

DPS of 6.5 cents fully franked - The Board has declared a final fully franked dividend of 2.0 cps

taking the full year dividend to 6.5 cps with an underlying payout of

70% (2014: 72%) (1),(2)

Investment in elevation of Oroton gaining traction despite

cost of reduced discounting & expansion of Gap stores

(1) Underlying results are reconciled to IFRS audited measurements through the add back of the onerous Hong Kong Store lease

after exit ($0.8m), the closure of the Singapore office ($0.2m) and the trading losses ($1.8m) and gain on exit ($1.7m) from

Brooks Brothers Australia. Total add backs $1.2m (rounded)

(2) Underlying comparatives are reconciled to IFRS audited measurements through the add back of the Brooks Brothers trading

losses of $0.8m.

FY15

Reported

$ M

FY14

Reported

$ M

Change

%

FY15 (1)

Underlying

$ M

FY14 (2)

Underlying

$ M

Change

%

Revenue 132.0 124.9 +6% 132.0 124.9 +6%

Net Margin (%) 60.7% 62.5% 60.7% 62.5%

Total Expenses (%) 56.9% 51.3% 56.1% 51.3%

EBITDA 10.9 18.8 -42% 12.1 19.6 -38%

EBIT 5.6 13.3 -58% 6.8 14.1 -52%

EBIT Margin (%) 4.3% 10.6% 5.2% 11.3%

NPAT 2.6 8.3 -68% 3.8 9.1 -58%

EPS (cents) 6.4 20.2 -68% 9.3 22.2 -58%

DPS (cents) / Fully

franked

6.5 16.0 6.5 16.0

DPS payout (%) 102% 79% 70% 72%

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Oroton – Brand elevation strategy gaining traction

LFL sales in FY15 were -6% (FY14: +8%) with Q1 -12% but an improving trend by Q4 -3%.

• Decrease in sales due to significantly less discounting in First Retail channels • Full year of heavy discounting now cycled • Elimination of friends and family sales

Strong LFL sales in first 7 weeks of FY16 of +8%

Brand elevation strategy now in full swing

• Rollout of the new store concept to more than one third of the First Retail store footprint. New concept more productive with higher LFL sales, average selling price and average transaction value compared to non refurbished stores in ‘non discount’ periods

• Launched “Clientelling” Program to upgrade in store experience

• New product development focussed on higher average price point and limited editions and reduced discounting has positively impacted consumers perception of the luxury positioning and led to higher average selling prices and higher average transaction value

• First full year with the Australian actress Rose Byrne as face of the brand

• Increased social media engagement and celebrity endorsement

Investment in technology and marketing to maintain position as e-commerce leader with online sales maintained at ~10% of sales

Continue to review store network for opportunities to take more prominent positions in key centres and continue to review and close non performing stores

There were 71 stores at the end of the financial year compared to 71 in FY14.

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Continued momentum in Asia

Closed 3 loss making stores and Singapore office with positive impact on

earnings in FY16

6 new stores opened in FY15 including

- 5 department store concessions in Singapore, Malaysia & China

- 1 free standing store in Singapore in high traffic local shopping mall

Total number of International stores at year end was 15

Wholesale continues to grow and includes business with Singapore

Airlines, Kuala Lumpur International Airport and Middle East Distributor

Continue to review other market opportunities

Underlying net international losses were ~ $2.7m for the year (FY14: ~

$3.4m) after excluding $1m of one time costs associated with the closure

of the Hong Kong store and Singapore office both before the expiry of

leases. The underlying losses of the International stores reduced by

$0.7m due to continued good results in Malaysia which continues to be

cash flow positive and reduced trading losses in Hong Kong due to the

store closure

In FY16 focus is on LFL growth in existing network and measured

expansion through capital-light department store shop in shops

Oroton International – consolidation and reduction in

underlying losses

Vivo City, Singapore

Nanjing Store, China

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New store concept leading Oroton brand transformation

New luxury concept designed in collaboration between Oroton and a leading London-based creative consultancy to elevate the brand

In FY15 rolled out to over 30% of First retail store footprint including flagship locations in Sydney, Melbourne, Adelaide and Singapore

Department store shop in shop version now also developed

A further 12 stores planned for roll out in strategic locations during FY16 to cover more than 50% of First retail footprint by the end of FY16

New concept together with the impact of upgraded visual merchandising standards is proving to be more productive with those stores achieving higher LFL sales, higher average selling price and higher average transaction value compared to non refurbished stores during ‘non discount’ periods

Oroton Miranda

David Jones – Elizabeth Street

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Oroton on the Red Carpet

Jennifer Lopez with the

Society

Chrissy Teigan with the

Opera Crystal Clutch Eva Longoria with the

Freize Clutch

Rose Byrne with the Aura

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GAP – building distribution with 3 more stores opened

The 3 existing stores traded for 12 months with positive like for like sales of +0.2% and more importantly like for like NM $ of +6%

Growth in total GAP sales of +81% achieved thanks to 3 new stores opened in NSW at the Macquarie, Miranda and

Parramatta shopping centres making a total of 6 at year end

Strong like for like sales in first 7 weeks of FY16 of +24% due to more appropriate inventory and strong promotions

The above results were achieved in a competitive retail environment where consumers remained cautious with their

spending as well as increased international competition in all locations

The brand was loss making in the year due to start up costs of

the 3 new stores The focus in FY16 will be on strategic marketing & customer

engagement to drive traffic to stores and supply chain efficiencies with increased scale

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Brooks Brothers – exited loss making Joint Venture in July 2015

JV commenced trading in February 2014. The Group held a majority of 51% in the joint venture company until 24th July 2015 at which time 100% of its shares were sold to Brooks Brothers International LLC.

Full year trading losses were $1.8m, offset by a gain to the Group on exit from the JV of $1.6m. FY15 net impact of BB was a loss of $0.2m (FY14: $0.8m loss)

OrotonGroup will continue to provide support services for at least 12 months and manage the brand in Australia with

both support service and management fees charged

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Strong Balance Sheet and low Gearing to support growth

initiatives

FY15

($ M)

FY14

($ M)

PP&E 15.3 11.1

Inventory 37.7 27.6

Net Assets 44.9 36.9

Net (Debt) / Cash (5.8) 10.1

Net Debt / Equity 13% N/A

Operating cash

flow (before

interest and tax)

2.4 23.8

Following a year of investment to elevate the Oroton brand and expand GAP, the Group is well

positioned with:

- A strong balance sheet ($44.9M in net assets)

- Low gearing of 13%

- A $40M bank facility, including $24M unused at year end

Operating cash flow (before interest and tax) reduced by $21m due to a reduction in EBITDA of

$8m and an increase in working capital mainly to open 3 new GAP stores

During FY15 the Group’s investments were aligned with their strategy:

- $6.6M capital expenditure in Oroton new concept stores and new POS and CRM systems

focused on growth by elevating the client experience and offering a full omni-channel

shopping experience

- $3.2M capital expenditure in 3 new GAP stores to build reach and brand awareness

Net cash inflow from Brooks Brothers Australia of $1.7m ($2M shareholder loans advanced, less

$3.7m cash received on exit)

Conservative Hedging policy to manage FX risk covering 85% of forecast USD transactions up to

24 months out. Contracts in place at 25 July 2015 range from 0.79-0.88 USD (on average). Refer

note 29 in appendix 4E for more details.

Dividend payment of 6.5cps fully franked for the full year compared to a full year dividend of 16.0

cps fully franked in FY14 (Underlying payout: FY15 70% and FY14 72%) (1),(2) 2.4 6.6

-5.8

3.2

10.1

FY15 net debt

Interest and Tax

4.9

Dividends CAPEX Oro & IT

5.1

Operating activities

CAPEX Gap Other

1.4

FY14 Cash

Cashflow ($m)

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Outlook for FY16 – after a year of transformation, a return to

profitable growth

Capital – light department store

distribution

Market relevant product

development and Marketing

Focus on opening price points

Increase roll out of new store concept

New categories

Increased average selling prices

“Clientelling” program to deliver

excellent customer service

Technology for a true 360 degree

brand experience

OROTON brand Investment in

elevation and growth

OROTON International

Pave the way to profitability

Gap franchise Growth in sales and

margin

Strong like for like sales growth

Continued margin improvement

Australia relevant product

Efficient inventory management and

supply chain

Strategy focused on 3 key pillars:

Underpinning all of this is a new point of sale system, new CRM Platform,

enhanced payment systems, new online functions.

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Store Listing – as at July 2015 there were 71 Oroton and

6 GAP stores

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Important notice and disclaimer

This presentation includes information about the activities of OrotonGroup Limited (“OrotonGroup”) which is current as at 17 September 2015. It is in summary form only and is not intended or represented to be complete. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this

presentation. Please read this presentation in conjunction with OrotonGroup’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange. These are available at www.orotongroup.com

Forward-looking statements

This presentation includes certain forward-looking statements that are based on OrotonGroup’s current views and assumptions as well as information known to date, and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond OrotonGroup’s control. These factors may cause actual results to differ materially from those expressed in or implied by this presentation. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast.

To the maximum extent permitted by law, OrotonGroup and its related corporations, directors, officers, employees and agents disclaim and do not assume any obligation or undertaking to release any updates or revisions to the information in this presentation to reflect any change in expectation or assumptions, and disclaim all responsibility and liability for any loss arising from use or reliance on this presentation or its content (including, without limitation, liability for fault or negligence).

Currency

All amounts in this presentation are in Australian dollars unless otherwise stated.

No offer of securities

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell OrotonGroup securities in any jurisdiction.

Reported and underlying information

Information in this presentation which is referred to as being reported is based on audited financial statements and / or the director’s report. Underlying information has not been audited, but has been reconciled to the IFRS reported results. OrotonGroup uses certain measures, such as underlying results, to manage and report on business performance that are not recognised under Australian Accounting Standards (non-IFRS financial measures).

Although the Directors believe that these non-IFRS measures provide useful information about the financial performance of OrotonGroup, they should be considered as supplements to the income statement and cash flow measures that have been presented in accordance with the Australian Accounting Standards and not as a replacement for them. Because these non-IFRS financial measures are not based on Australian Accounting Standards, they do not have standard definitions, and the way OrotonGroup has calculated these measures may differ from similarly titled measures used by other companies. Readers should therefore not place undue reliance on these non-IFRS financial measures.

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