1. Natural Fibre Solutions from Source to Shop FELICITY MCDONALD THE MERINO COMPANY (TMC) A UNIQUE BUSINESS MODEL, PROVIDING WOOLGROWERS STABLE AND SUSTAINABLE RETURNS

2. Natural Fibre Solutions from Source to Shop THE MERINO COMPANY (TMC) TMC Pools Products (Manufacturing) Sales & Marketing Solutions Customer Providing differentiated and targeted natural fibre solutions from Source to Shop for leading retailers and brands globally. Our Ultimate Aim: to provide stable and sustainable returns to woolgrowers.

3. Natural Fibre Solutions from Source to Shop VOLATILE ‘COMMODITY’ BUSINESS ENVIRONMENT More than 40 years of declining prices in boom and bust cycles Declining wool production - down >60% since 1990 A new business model was needed…

4. Natural Fibre Solutions from Source to Shop SIGNIFICANT CHALLENGES FOR WOOL wool price = customers exit or substitute fibres wool price = decrease in production TOUGH BUSINESS CONDITIONS ADVERSARIAL STRUCTURE / COMMODITY TRANSACTIONS HIGH VOLATILITY & COMPETITION Wools share of apparel market declining - a large fibre switch occurring Increased pressure on manufactures to reduce cost (globalisation) Traditional system – wool pushed to customers with little value Customers dictate play Producers are ‘Price Takers’

5. Natural Fibre Solutions from Source to Shop THE AUCTION SYSTEM a single option for woolgrowers at a point in time multiple buyers ‘on-the-floor’ limited involvement beyond auction THE TRADITIONAL SYSTEM – SUPPLY DRIVEN THE SUPPLY CHAIN disconnected trading relationships at each link information and timing flows slowly down the supply chain from wholesaler / retailer regarding their future needs no transparency at each stage of the supply chain, final use or for the final user

6. Natural Fibre Solutions from Source to Shop THE TMC BUSINESS MODEL TMC Pools Greasy Wool Tops Yarn Sales & Marketing Solutions Fabric Garment / Product Customer Customer focused approach Supply Chain Management Communication Marketing ServicesInnovation Transparency A competitive advantage generating real opportunities for wool

7. Natural Fibre Solutions from Source to Shop THE TMC POOL SYSTEM The Pool system enables TMC to provide price stability and supply security to both growers and customers. Managing greasy wool through to yarn for Pool Participants Enable TMC to provide retailers & brands Specific quality Specific quantity Differentiation Certifications Traceability

8. Natural Fibre Solutions from Source to Shop STRATEGIC PROCESSING & SALES TMC is committed to growing (differentiated) ‘pull-through’ from the Pools, by increasing strategic-alliance processing capacity and sales capability CONNECTING the value chains …

9. Natural Fibre Solutions from Source to Shop CUSTOMER DRIVEN MARKET DEMAND TMC’s unique relationship at both ends of the supply chain enables an unparalleled flow of information TMC discovers customers needs and feeds this information back to wool growers creating a pull through system

10. Natural Fibre Solutions from Source to Shop CURRENT CONSUMER TRENDS AND MARKET OPPORTUNITIES Burgeoning demand for environmentally friendly products “Green” is now mainstream The Sustainable Revolution - Global apparel industry is embracing sustainability Value, high quality natural products over fast fashion Transparency and traceability in both food and fashion

11. Natural Fibre Solutions from Source to Shop TMC RESPONDING TO DEMAND TMC has developed differentiated brand platforms in line with these current trends and opportunities, providing value added wool solutions to customers

12. Natural Fibre Solutions from Source to Shop MARKETING SUPPORT & TRACEABILITY

13. Natural Fibre Solutions from Source to Shop A TMC CUSTOMER EXAMPLE

14. Natural Fibre Solutions from Source to Shop TMC – A POSTIVE OUTLOOK FOR WOOL Surviving the fall in wool demand by meeting customers’ needs. Significant uptake in customer enquiry Solid growth in brand partners Significantly increased global capabilities and facilities Impressive year-on-year growth in pool participants

15. Natural Fibre Solutions from Source to Shop TMC Pools Greasy Wool Tops Yarn Sales & Marketing Solutions Fabric Garment / Product Customer TMC - PROVIDING A REAL ALTERNATIVE