ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL

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ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
AuMake International Limited
Acquisition of Broadway
and Equity Raising
April 2019
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Important notices and disclaimer

The investor presentation (“Presentation”) has been              Not an offer                                                         The distribution of this presentation in other jurisdictions     Financial data
prepared by AuMake International Limited (ACN 150 110                                                                                 outside Australia may also be restricted by law and any
                                                                 This Presentation is for information purpose only and is not                                                                          All dollar values are in Australia dollars (“A$”) and financial
017) (“ AuMake” or “company”). This presentation has been                                                                             such restrictions should be observed. Any failure to comply
                                                                 a prospectus, disclosure document, product disclosure                                                                                 data is presented as at and for the twelve months ending
prepared in connection with an equity offer (“Offer”) of new                                                                          with such restrictions may constitute a violation of
                                                                 statement or other offering document under Australian law                                                                             30 June 2019 unless otherwise stated. Investors should
AuMake ordinary shares (“New Shares”). The offer is being                                                                             applicable securities laws (see “international offer
                                                                 or other law (and will not be lodged with the Australian                                                                              note that this presentation contains pro forma financial
conducted under section 708AA of the Corporations Acts                                                                                restrictions”). By accepting this presentation you
                                                                 Securities and Investments Commission (“ASIC”)0. The                                                                                  information. The pro forma financial information provided
2001 (cth) (“Corporations Act”) as modified by ASIC                                                                                   representation and warrant that you are entitled to receive
                                                                 presentation is not and should not be considered an offer                                                                             in this presentation is for illustrative purposes only and is
Corporations (Non- Traditional Rights Issues) Instrument                                                                              such presentation in accordance with he above restrictions
                                                                 or an invitation to acquire entitlements or New Shares or                                                                             not represented as being indicative of AuMake‘s (or
2016/84.                                                                                                                              and agree to be bound by the limitations contained herein.
                                                                 any other financial products. The offer will be made on the                                                                           anyone else’s) views on AuMake’s future financial position
Summary information:                                             basis of the information to be contained in the offer                Not financial product advice                                     and/or performance. The pro forma financial information is
                                                                 booklet to be prepared for eligible shareholders in Australia                                                                         based on the audited financial information of AuMake,
This Presentation contains summary information about the                                                                              This presentation does not constitute financial product or
                                                                 and New Zealand (“offer booklet”), and made available                                                                                 and the unaudited management accounts of Broadway
current activities of AuMake and its subsidiaries (“AuMake”)                                                                          investment advice (nor tax, accounting or legal advice) nor
                                                                 following its lodgement with ASX. Any eligible shareholder                                                                            Group.
as at the date of this Presentation. The information in this                                                                          is it a recommendation to acquire entitlements or New
                                                                 in Australia and New Zealand who wishes to participate in
Presentation is of a general nature and does not purport to                                                                           Shares and does not and will not form any part of any            The pro forma financial information has been prepared by
                                                                 the Entitlement offer should consider the offer booklet in
be complete. This Presentation does not purport to contain                                                                            contract for the acquisition of entitlements or New Shares.      AuMake in accordance with the measurement and
                                                                 deciding to apply under that offer. Anyone who wishes to
all the information that an investor should consider when                                                                             This presentation has been prepared without taking into          recognition requirements, but not the disclosure
                                                                 apply for New Shares under the entitlement offer will need
making an investment decision nor does it contain all the                                                                             account the objectives, financial situation or needs of          requirements, of applicable accounting standards and
                                                                 to apply in accordance with the instructions contained in
information which would be required in a disclosure                                                                                   individuals. Before making an investment decision,               other mandatory requirements in Australia. Refer to the
                                                                 the offer booklet and the entitlement and acceptance
document or prospectus prepared in accordance with the                                                                                prospective investors should consider the appropriateness        “Basis of preparation of financial information” section of
                                                                 form.
requirements of the Corporations Acts. It should be read in                                                                           of the information having regard to their own objectives,        this presentation for further detail.
conjunction with AuMake’s other periodic and continuous          This presentation may not be released or distributed in the          financial situation and needs and seek appropriate advice,
disclosure announcement lodged with the Australian               United States. This presentation does not constitute an              including financial, legal and taxation advice appropriate
Securities Exchange, which are available at www.asx.com.         offer to sell, or a solicitation of an offer to buy, securities in   to their jurisdiction. AuMake is not provide financial product
au. To the maximum extent permitted by law, AuMake, the          the United States or in any other jurisdiction in which such         advice in respect of AuMake shares. Cooling off rights do
lead manager, their, and their respective affiliates and         an offer would be illegal. The entitlement and New Shares            not apply to the acquisition of New Shares.
related bodies corporates’, office, employees , partners,        have not been, and will not be, registered under the U.S.
agents and advisers make no representation or warranty           Securities Act of 1933, as amended (the “U.S. Securities Act”)
(express or implied) as to the currency, accuracy, reliability   or the securities laws of any state or other jurisdiction in the
or completeness of the information in this Presentation and      United States. Accordingly, the New Shares may not be
disclaim all responsibility and liability for the information    offered or sold, directly or indirectly, in the Unites States,
(including without limitation, liability for negligence).        unless they have been registered under the U.S. Securities
                                                                 Act (which AuMake has no obligation to do or procure), or
                                                                 are offered and sold in a transaction exempt from, or not
                                                                 subject to , the registration requirements of the U.S.
                                                                 Securities Act and any other applicable state securities
                                                                 laws.

AuMake International Limited                                                                                                                                                                                                                                         2
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Important notices and disclaimer

Past performance                                                      There can be no assurance that actual outcomes will not        Investment risk
                                                                      differs materially from these forward- looking statements.
Past performance information given in this presentation is                                                                           An investment in AuMake shares is subject to investment
                                                                      A number of important factors could cause actual results or
given for illustrative purposes only and should not be relied                                                                        and other known and unknown risks, some of which are
                                                                      performance to differ materially from the forward looking
upon as (and is not) an indication of future performance.                                                                            beyond the control of AuMake including possible loss of
                                                                      statements, including the risk factors set out in this
                                                                                                                                     income and principal invested. AuMake does not
Future performance                                                    presentation. Investors should consider the forward looking
                                                                                                                                     guarantee any particular rate of return or the performance
                                                                      statements contained in this presentation in light of those
This presentation contains certain “forward looking                                                                                  of AuMake, nor does it guarantee the repayment of capital
                                                                      disclosures and not place reliance on such statements. The
statements”. Forward looking statements can generally be                                                                             from AuMake or any particular tax treatment. In
                                                                      forward looking statements are based on information
identified by the use of forward looking words such as,                                                                              considering an investment in AuMake shares, investors
                                                                      available to AuMake as at the date of this presentation. To
“expect”, “anticipate”, “likely”, “intend”, “ should”, “could”,                                                                      should have regard to (amongst other things) the risks
                                                                      the maximum extent permitted by law, AuMake and its
“may”, “predict”, “plan”, “purpose”, “will”, “believe”, “forecast”,                                                                  outlined in this presentation.
                                                                      directors, officers, employees, advisers, agents and
“estimate”, “target”, “outlook”, “guidance”, and other similar        intermediaries disclaim any obligation or undertaking to
expressions within the meaning of securities laws of                  release any updates or revisions to the reflect any change
applicable jurisdictions and include, but are not limited to,         in expectations or assumptions.
indications of, or guidance or outlook on, future earnings or
financial position or performance of AuMake the outcome               Except as required by law or regulation (including the ASX
and effects of the offer and the use of proceeds. The                 listing rules), AuMake undertakes no obligation to provide
forward looking statements contained in this presentation             any additional or updated information whether as a result
are not guarantees or predictions of future performance               of new information, future events or results or otherwise.
and involve known and unknown risks and uncertainties                 Indications of, and guidance or outlook on, future earning
and other factors, many of which are beyond the control of            or financial position or performance are also forward
AuMake, and may involve significant elements of                       looking statements.
subjective judgement and assumptions as to future events
which may or may not be correct. Refer to the risks section           Effect of rounding
of this presentation for a summary of certain general and             A number of figures, amounts, percentages, estimates,
AuMake specific risk factors that may affect AuMake.                  calculation of value and fractions in this presentation are
                                                                      subject to the effect of rounding. Accordingly, the actual
                                                                      calculation of these figures may differ from the figures set
                                                                      out in this presentation.

AuMake International Limited                                                                                                                                                                      3
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Acquisition of Broadway

— Announcement – AuMake International Limited (“AuMake”) has reached an agreement to purchase the business assets of
  an affiliated retail store network (”Broadway”)
— Complementary business – Broadway operates eight (8) store locations in Australia and New Zealand (“ANZ”) providing
  ANZ products to inbound Chinese tourists with a 20 year history in the industry
— Consideration – $14.18 million which is amortised in three (3) stages (50% cash and 50% shares)
— Implied acquisition multiple of 4.05 x FY19 EBITDA
— Committed vendor – Shares escrowed for a period of two years from issue based on 90 day vwap. All key staff retained.
— Funding – $7.0 million capital raising via Placement at $0.16/share to institutional, professional and sophisticated investors
  (“Offer”)
— Market Capitalisation (post capital raising & acquisition) – $53.3 million with enterprise value of $43.6 million
— Capital Structure
                                                                               Shares
     Shares on issue                                                     271,454,202
     Placement                                                           43,750,000
     Initial Consideration Shares - Broadway Group1                        17,725,000
     Total                                                              332,929,202
   1 - Excluding deferred consideration shares, please refer to page 9 for additional information

AuMake International Limited                                                                                                       4
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Proforma transaction impact

AuMake will have a significantly improved financial profile following the transaction

                                                AuMake FY191                                                         Broadway FY192     Proforma FY19       Uplift
 Revenue ($m)                                                                      45                                           30                  75        67%
 Gross Margin                                                        20%                                                       30%                24%        20%
 Gross Profit ($m)                                                                                9                              9                   18      100%
 EBITDA ($m)                                          minor loss                                                                3.5             positive   positive
                                                AuMake FY191                                                         Broadway FY192     Proforma FY19       Uplift    Aspirational FY203
                                                                                            17                                   8                  25        47%                    25
                                                                                                                                                                                    Yes
                                                                                                                                                                                   25%+
                                                                   10%                                                         25%                                                 20%+
                                                                              4.5                                               7.5                  12
                                                                                                   5                            30                  35                              70+
                                                        JD.com                                                                                                                 JD.com+
Footnotes 1,2,3 – please refer to page 32 for basis of preparation

AuMake International Limited                                                                                                                                                               5
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
1. Transaction summary
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Transaction summary

AuMake’s acquisition of Broadway increases earnings and expands store locations into all strategically relevant locations in Australia
and New Zealand (ANZ), enhancing AuMake’s influence in the cross border retail and inbound Chinese tourist markets
Transaction                         Compelling strategic                                                    Equity                            Positive outlook and
overview                            rationale                                                               raising                           clear strategy
AuMake to acquire Broadway,         20 year old business with highly   Creation of the first multi-         Acquisition consideration fully   In line with AuMake’s accelerated
an inbound Chinese tourist          experienced management and         channel retail platform servicing    funded by equity raising of       market share expansion strategy
focused business with eight (8)     extensive relationships in the     daigou, Free Independent             $7 million
affiliated store locations across   inbound Chinese tourist markets    Travellers (FITs) and Chinese tour                                     Enhances the AuMake brand
ANZ                                 both in Australia and China        groups with significant cross        Equity raising lead manager       back in China to leverage further
                                                                       pollination opportunities            Ashanti Capital                   growth opportunities including
Acquisition of Broadway valued      Market potential of inbound                                                                               existing exclusive strategic
at $14.18 million which is          Chinese tourist market estimated   Extensive operational and                                              partnership with JD Worldwide
amortised in 3 stages (50% cash     to be $2 billion increasing        corporate synergies are expected
and 50% shares)                     AuMake potential market to         as a result of this acquisition
                                    $4.5 billion in ANZ
Consideration represents an
implied acquisition multiple of     AuMake with Broadway to
4.05 x FY19 EBITDA                  transform the way that inbound
                                    Chinese tourists purchase ANZ
Compelling transaction metrics      products
as significant synergies between
the businesses and opportunities
to introduce online and owned
brand sales.

AuMake International Limited                                                                                                                                                  7
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
2. Acquisition rationale
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Acquisition summary

 Overview of the Acquisition of   — AuMake to acquire Broadway, an inbound Chinese tourist focused business
 Broadway Group                   — 20 years experience in the inbound Chinese tourist market with extensive relationships both in Australia and China.
                                  — Eight (8) strategically located affiliate stores in ANZ
                                  — Broadway Group partnering with AuMake to access capital markets in order to implement accelerated growth strategy

 Key metrics                      — $5.672 million - upfront at settlement (40% of total consideration)
                                    • $2.836 million payable in cash and $2.836 million to be satisfied by the issue of fully paid ordinary shares in the capital of the
                                      Company (AU8 Shares) at 90-day VWAP
                                  — $4.254 million – deferred cash consideration (30% of total consideration)
                                    • $4,254 million payable in cash in eight (8) equal quarterly instalments from the date of settlement
                                  — $4.254 million - deferred equity consideration (30% of total consideration)
                                    • $2.127 million to be satisfied by the issue of AU8 Shares at 90-day VWAP on the date that is twelve (12) months from the date of
                                      settlement
                                    • $2.127 million to be satisfied by the issue of AU8 Shares at 90-day VWAP on the date that is twenty four (24) months from the
                                      date of settlement
                                  — Transaction increases AuMake’s total store count to 25 locations in 7 cities

 Funding                          — Acquisition fully funded by an equity raising of $7 million (“Equity Raising”)

 Conditions                       — The Acquisition is conditional on shareholder approval, transfer of business assets and execution of formal agreements
                                  — Completion is expected by end of May 2019

AuMake International Limited                                                                                                                                               9
ACQUISITION OF BROADWAY AND EQUITY RAISING - AUMAKE INTERNATIONAL LIMITED - 61 FINANCIAL
Compelling acquisition rationale

AuMake’s acquisition of Broadway increases Company earnings and expands the store footprint into
strategically relevant locations in ANZ, enhancing AuMake’s influence in the cross border retail and inbound
Chinese tourist markets

                 Respected inbound Chinese         — Respected and trusted relationships built over 20 years with travel agencies and tour guides in China and ANZ
                 tourist retailer with extensive   — Strong and unique local networks at each specific store location
                 networks in China, ANZ            — Opportunity to transform the inbound Chinese tourist business model to increase market share in ANZ

                 Strengthens the AuMake            — Immediately positions AuMake as the dominant cross border retail and inbound Chinese tourist brand in ANZ
                 brand and customer value          — Increasing relevance and access to opportunities in the China market (e.g. existing exclusive strategic partnership with
                                                     JD.com)
                 proposition
                                                   — Significant cross pollination opportunities between AuMake stores and Broadway customers

                 Enhanced product offering         — Anticipated increase in owned brand product sales given Chinese tourist appetite for new products
                 capabilities                      — Significant opportunity to leverage online sales, as online services not currently offered to Broadway customers
                                                   — Anticipated material improvement in purchasing power and reduction in cost of goods sold
                                                   — Increased likelihood of new product traction given multiple store locations and increased total (offline and online) foot
                                                     traffic across the AuMake business

                 Increased diversification         — Diversification of AuMake’s business by adding significant inbound Chinese tourist numbers to existing daigou customer
                                                     base
                                                   — Improve resiliency of AuMake business model to future regulation changes
                                                   — Further exposure of AuMake to the growing Chinese tourist market both in Australia and in particular New Zealand

AuMake International Limited                                                                                                                                                     10
Opportunity to transform the cross border retail and inbound Chinese tourist markets
in ANZ

 Significant market share to    ——With a total of 25 stores, AuMake will be the market leader in Australia and NZ
 influence product trends       ——Capability to create trends for what Chinese consumers buy and what products become popular particularly with Chinese tourists
                                ——Ability to significantly increase sales of lesser known and owned brand products

 Transform antiquated Chinese   ——Antiquated business model that has largely remained unchanged for last 15 years
 tour group business model      ——Significant scope to cost efficiently create visually appealing stores and new products utilising AuMake supply chain
                                ——Apply the proven strategy used in daigou market to significantly improve sales and gross margins by through the introduction of
                                  online and own brand product sales
                                ——Opportunities to cater to the existing and known demand from inbound tourists from other countries (e.g. Korea and Taiwan)

 Further acquisition and        ——Combination of AuMake and Broadway will attract further potential acquisitions targets in ANZ
 consolidation opportunities    ——Expanded footprint increases the relevance and strengthens the relationship with large e-commerce and retail players in China
                                  (e.g. JD.com)
 available

AuMake International Limited                                                                                                                                        11
Industry statistics1

Australia Chinese visitation                                          New Zealand Chinese visitation                                                  Chinese visitor arrivals by purpose: 2006–07 to 2026–27
                                                                                                                                                      Data sources: Overseas Arrivals and Departures, Department of Home Affairs; Tourism Forecasts 2017, Tourism Research Australia
Tourism Research Australia (TRA) forecasts                            Approximately 450,000 inbound arrivals
for the next decade paint a positive                                  from China as at January 2019, which
picture for growth in Chinese visitation.                             demonstrates a 13% increase in visitation
                                                                      over the previous 12 months. This number                                                     4500
Between 2016–17 and 2026–27, inbound                                  is expected to grow to 913,000 in 2023.                                                      4000
arrivals from China are predicted to                                  (Tourism New Zealand)                                                                        3500
increase from 1.3 million to 3.9 million – an

                                                                                                                                                 VISITORS ('000)
average annual growth rate of 11.9% over                                                                                                                           3000
the period.                                                                                                                                                        2500
                                                                                                                                                                   2000
                                                                                                                                                                   1500
                                                                                                                                                                   1000
                                                                                                                                                                    500
                                                                                                                                                                      0

“Between 2016-17 and 2026-27,
 inbound arrivals from China...                                                                                                                                                               HOLIDAY        VFR      EDUCATION          OTHER

 increase from 1.3 million to 3.9
 million...”
Tourism Research Australia

1. Source: Tourism Research Australia Chinese free and independent travellers – their potential for regional Australia, Full Report March 2019

AuMake International Limited                                                                                                                                                                                                                                                           12
Industry statistics1

As demand for outbound travel                                         AuMake empirical data                                                      Forecast proportion of Chinese household income by city tier,
derives from all age groups                                           From industry observation over the last 12                                 2016 to 2030
across different cities, package                                      months, AuMake estimates that 500,000                                      Data source: Global cities, Oxford Economics 2017

and group tours as well as FITs                                       inbound Chinese tourists who visited
                                                                      Australia came in tour groups. Similarly,
will all co-exist.                                                    AuMake estimates 250,000 inbound
At the same time, there is geographic                                 Chinese tourists visited New Zealand over
segmentation due to differences in                                    the same period of time.
wealth. Consequently, package and
group tourists are mainly from lower-tier                             Tour group numbers in ANZ are expected
cities, while FITs are mostly from Beijing,                           to grow due to 1) increasing total inbound
Shanghai and other first-tier cities.                                 Chinese tourists and 2) increasing incomes
                                                                      from lower-tier cities in China.

“…package and group
 tourists are mainly from
 lower-tier cities”
Tourism Research Australia

1. Source: Tourism Research Australia Chinese free and independent travellers – their potential for regional Australia, Full Report March 2019

AuMake International Limited                                                                                                                                                                                     13
3. Overview of Broadway
Broadway Business Model

  Existing Broadway
  Model                                          During FY19 over 30,000
                                               tourists visit broadway stores
                                                  across eight locations

                                                                                Tourists purchase products on
              Relationship with tour guides
                                                                                average of A$1,000 per head;
                 and travel agencies –
                                                                                product mix includes popular
             Broadway features on Chinese
                                                                                    brands, owned brand
              tourist itinerary as Shopping
                                                                                products, generally high value,
                        destination
                                                                                    low volume products

  Under AuMake
  Operation

                  Tourists can continue to                                      Potential to increase spend by
                 purchase products online                                       increasing tourist visitation to
              in China at competitive prices                                         70,000+ for FY20 and
                (WeChat currently 30% of                                           changing the product mix
                       AuMake sales,                                             (from experience in AuMake
                     0% in Broadway)                                               stores). More competitive
                                                Tourists can pack and ship         pricing on popular brands
                                                   items in-store using
                                                 competitive logistic and
                                                   distribution network
                                                 (profitable for AuMake)

AuMake International Limited                                                                                       15
Broadway – strategic locations

                                             Cairns

                                             Gold Coast

                                                      Sydney
                                                               Auckland
                                                                          Rotorua
                                 Melbourne

AuMake International Limited                                                        16
Broadway – stores overview
                                            Cairns                         Cairns                   Gold Coast                        Gold Coast

 Store                         Coral Legend Pty Ltd           Coral Legend Pty Ltd       Gold Port Souvenir Outlet - Q1     Gold Port Souvenir Outlet

 Location                      T68, DFO Cairns,               9/1 Marlin Parade Cairns   T4&5 at Q1 building,               19 Warehouse Road Southport QLD
                               274 Mulgrave Road Cairns QLD   QLD 4870 Australia         3003 Surfers Paradise Boulevard,   4215 Australia
                               4870 Australia                                            Surfers Paradise QLD 4217

 FY19 Sales %                  4%                             New store                  8%                                 6%

AuMake International Limited                                                                                                                                  17
Broadway – stores overview
                                            Sydney                         Melbourne                           Auckland                            Rotorua

 Store                         Broadway Tax Free Pty Ltd         Maxbuy Australia Pty Ltd           PNL Souvenir Centre               Sweet Dream

 Location                      Suite GB 11, 22-36 Mountain St,   52 Market St, Melbourne VIC 3000   Unit 1, 106 St Georges Bay Road   120 Riri Street Rotorua,
                               Ultimo NSW 2007 Australia         Australia                          Parnell, Auckland, New Zealand    New Zealand

 FY19 Sales %                  24%                               21%                                13%                               24%

AuMake International Limited                                                                                                                                     18
4. Combined group profile
AuMake & Broadway locations

        JD.com                                                             —Combined 25 store locations in Queensland,
     CHINA                                                                  New South Wales, Victoria and New
                                                                            Zealand.
                                 x2                                        —Major Chinese Tourist locations covered with
                                  Cairns                                    highly experienced staff at each location.
                                                                           —Bring ‘look and feel’ of Broadway stores in
               AUSTRALIA                             x1                     line with AuMake stores.
                                           x2
                                                Brisbane
                                                                           —All key management and staff retained
                                 Gold Coast

                                  x15                            x1
                                                           x1
                                           Sydney               Auckland
                                                                 Rotorua
                     Melbourne
                                                x1
                                                           x1
                           x1                                                 AuMake store   Broadway Group store
                                                 NEW ZEALAND
AuMake International Limited                                                                                              20
The Opportunity – Apply AuMake model to Broadway

Three significant revenue and profit streams
in addition to retail gross margin
                 Increase online sales   — Currently Broadway does not provide online functionality to its customer base:
                                           • Online appeals to a younger demographic
                                           • Online increases repeat sales
                                         — Currently 30% of AuMake total sales are online sales (WeChat)

                 Increase owned          — 25% of current Broadway sales consist of owned brand product sales, opportunity to replace with AuMake owned
                                           brand products, which have a 50%+ gross margin
                 brand product sales
                                         — Chinese tourists have significant appetite for new products and brands

                 Increasing number of    — Ability to increase number of Chinese tour groups and FITs exponentially by expanding existing relationships with
                                           Chinese tour agencies and tour guides. Aspirational target of 70,000 Chinese tourists for FY20 (35,000 FY19)
                 Chinese tourists

AuMake International Limited                                                                                                                                   21
Proforma transaction impact

AuMake will have a significantly improved financial profile following the transaction

                                                AuMake FY191                                                         Broadway FY192     Proforma FY19       Uplift
 Revenue ($m)                                                                      45                                           30                  75        67%
 Gross Margin                                                        20%                                                       30%                24%         20%
 Gross Profit ($m)                                                                                9                              9                   18      100%
 EBITDA ($m)                                          minor loss                                                                3.5             positive   positive
                                                AuMake FY191                                                         Broadway FY192     Proforma FY19       Uplift    Aspirational FY203
                                                                                            17                                   8                  25       47%                     25
                                                                                                                                                                                    Yes
                                                                                                                                                                                   25%+
                                                                   10%                                                         25%                                                 20%+
                                                                                  4.5                                           7.5                 12
                                                                                                   5                            30                  35                              70+
                                                        JD.com                                                                                                                 JD.com+
Footnotes 1,2,3 – please refer to page 32 for basis of preparation

AuMake International Limited                                                                                                                                                               22
Proforma statement of financial position

AuMake will have a significantly improved financial profile following the acquisition of Broadway
                                    AuMake as at 31 .12.184                Equity Raising5   Broadway acquisition    Proforma Combined
                                                                                                                      Group as at 31.12.18
                                                              $m                      $m                      $m                      $m
 Cash                                                         8.0                     6.7                   -5.06                     9.7
 Inventory                                                    3.8                       -                      1.5                    5.3
 Fixed assets                                                 2.8                       -                    2.77                     5.5
 Intangible assets                                            2.4                       -                   12.28                     14.6
 Other assets                                                  1.3                      -                       -                      1.3
 Total assets                                                18.3                     6.7                    11.4                     36.4
 Interest bearing loans                                       -0.1                      -                       -                     -0.1
 Other liabilities                                           -3.4                       -                   -11.49                   -14.8
 Total liabilities                                           -3.5                       -                   -11.4                    -14.9
 Net assets                                                  14.8                     6.7                       -                     21.5
 Net debt                                                     0.1                                                                      0.1
Footnotes 4,5,6,7,8,9 – Please refer to page 32 for basis of preparation

AuMake International Limited                                                                                                                 23
5. Equity raising overview
Equity raising overview
Transaction financed by equity raising to allow for maximum shareholder upside to acquisition

 Offer size and structure        — Equity raising of $7 million
                                 — 43.75 million new AuMake shares to be issued

 Offer pricing                   — Offer price of $0.16 per New Share, represents a:
                                   • 21% discount to 30 day vwap
                                   • 23.8% discount to last traded price

 Use of proceeds                 — The net proceeds from the equity raising will be used to partly fund the acquisition of Broadway and associated transaction
                                   costs/working capital requirements

 Timing                          — Offer conducted from 15 April to 17 April 2019

 Ranking                         — New Shares issued under the Offer will rank equally with existing shares on issue

 Lead manager                    — Ashanti Capital

 Sources of funds                         $m          Uses of funds                                                                                              $m
 Gross proceeds from equity raising       7.0        Acquisition of Broadway (including upfront cash consideration,                                              5.0
                                                     inventory, store renovations and leasing bonds)
                                                      Transaction costs, online sales functionality, targeted marketing and working                              2.0
                                                      capital
 Total source of funds                    7.0         Total use of funds                                                                                         7.0

AuMake International Limited                                                                                                                                       25
Indicative equity raising timetable

 Event                                                                                                                 Date
 ASX trading halt                                                                                               15 April 2019
 ASX announcement of the Proposed Transaction and capital raising                                               17 April 2019
 Appendix 3B, cleansing notice and issue of Placement shares                                                   30 April 2019
 Issue of Notice of meeting seeking approval for issue of consideration shares for the Proposed Transaction   End April 2019
 Shareholder meeting                                                                                          Late May 2019
 Satisfaction (or waiver) of all conditions precedent to Proposed Transaction                                 Late May 2019
 Completion of Proposed Transaction                                                                           Late May 2019
 Appendix 3B and issue of Initial Consideration Shares                                                        Late May 2019

AuMake International Limited                                                                                                26
6. Summary
Company highlights

With the acquisition of Broadway Group, AuMake has created a platform for long-term sustainable growth

1                              2                              3                             4
AuMake transformed into        Broadway provides              Leveraging AuMake model       Company changing
the dominant brand in the      immediate presence for         to significantly improve      transaction to deliver long
cross border retail and        AuMake in all strategic        sales and profitability of    term profitability and
inbound Chinese tourist        Chinese tourist locations in   Broadway (online, owned       creation of platform for
markets in ANZ                 ANZ                            brand and increasing          growth into China
                                                              number of Chinese tourists)

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FY20 outlook and beyond

 Market                        — Highly attractive and long term growth prospects
                               — Chinese visitor spend is forecast to rise to $26.2 billion in 2026–27 from $9.8 billion in 2016–17
                               — Cross border retail and Chinese tourist markets in ANZ continuing to be major channel for delivery of products to China
                               — Combined ANZ cross border retail and inbound Chinese tourist markets worth an estimated $4.5 billion per annum
                               — Positions AuMake to take advantage of growing number of Chinese tour groups from third tier Chinese cities over the next
                                 decade

 Operational                   — AuMake with Broadway creates ANZ’s first retail platform combining daigou and inbound Chinese tourists in one place
                               — Economies of scale never achieved before in this market
                               — Most experienced management team ever assembled in one place
                               — AuMake presence in every key strategic location in ANZ

 Financial                     — Highly accretive acquisition to significantly grow revenue immediately with increasing margins
                               — Platform for profitability in place for the future from the application of the AuMake model (online and owned brand products)
                               — Existing opportunity to accelerate market share and be dominant cross border retail brand in ANZ
                               — Leveraging existing fixed cost base to increase efficiencies to drive down total operational costs and cost of goods sold
                               — Combined group increases relevance and opportunities in China e.g. JD.com

AuMake International Limited                                                                                                                                     29
Key risk factors

 Loss of key management        The Company’s ability to remain productive, profitable and competitive and to implement planned growth initiatives depends on
                               the continued employment and performance of senior executives and other key members of management. The Company’s
 personnel and ability to      performance also depends on its ability to attract and retain skilled workers with the relevant industry and technical experience.
 attract and retain skilled
 workers                       If any one of these individuals resigns or becomes unable to continue in his or her present role and is not adequately replaced in a
                               timely manner, business operations and the ability to implement the Company’s strategies could be materially disrupted. The loss
                               of a number of key personnel or inability to attract additional personnel may have an adverse impact on the financial and
                               operating performance of the Company.
                               There can be no assurance that the Company will be able to attract and retain skilled and experienced employees and, should it
                               lose any of its key management personnel or fail to attract qualified personnel, its business may be harmed, and its operational
                               and financial performance could be adversely affected.

 Regulatory risks              Changes in legislative and administrative regimes, taxation laws, interest rates, other legal and government policies in Australia
                               and China may have an adverse effect on the assets, operations and ultimately the financial performance of the Company and
                               the market price of Shares.

 Market conditions             Demand for the Company’s products depends in significant part upon the purchasing activities by its customers.
                               Notwithstanding the recent product prices, the occurrence of, timing and sustainability of the market is uncertain and even in the
                               case where the recent strength in market conditions continues, the corresponding increase in volumes and improvement in the
                               Company’s performance may be significantly delayed or short term in nature due to other factors such as market competition,
                               difficulty in achieving synergies or the loss of key personnel.

 Competition                   The Company is for the supply of products and a customer may prefer to purchase directly from the supplier, however the
                               Company believes this would be difficult for the majority of the Company’s customers. There are a number of competitors,
                               including other retail stores, distributors and wholesalers, that currently provide products similar to those provided by the Company.
                               The Company generally competes on the basis of, among other things, reliability, price, service offerings and the age, mix and
                               relative attractiveness of its products.

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Key risk factors

 Economic risk and external    Various factors including political movements, stock market trends, changing customer preferences, interest rates, inflation levels,
                               commodity prices, foreign exchange rates, industrial disruption, environmental impacts, international competition, taxation
 market factors                changes and legislative or regulatory changes, may have an adverse impact on the Company’s operating costs, profit margins and
                               Share price. There factors are beyond the control of the Company and it cannot, to any degree of certainty, predict how they will
                               impact on the Company.
                               Prolonged deterioration in general economic conditions could potentially have an adverse impact on the Company and its
                               operations and may adversely impact the trading price of AuMake shares.

AuMake International Limited                                                                                                                                          31
Proforma financials – basis of preparation

1. The annualised financial performance of of AuMake includes its half year report as at 31 December 2018, unaudited management accounts from 1 January
   2019 to 31 March 2019 and a management forecast for the period between 1 April 2019 to 30 June 2019;
2. The annualised financial performance of Broadway includes an unaudited management account for the period between 1 July 2018 and 31 March 2019
   and AuMake & Broadway management forecast for the period between 1 April 2019 to 30 June 2019; and
3. The aspirational figures used are management estimations based on historical data and future markets trends.

4. Position of the Company as stated in its half year report as at 31 December 2018 released on ASX on 28 February 2019;
5. Funds received from the capital raising are net of $0.3m capital raising costs;
6. In accordance with the Sale Agreement, this cash payment consists of $2.8m cash consideration, $1.5m inventory and $0.7m reimbursement for store fit outs and leasing
   bonds;
7. Based on the preliminary fair value of the store fit-outs, plant and equipments, and is subject to final fair value of assets of Broadway as at Settlement date;

8. The recognition of any intangible assets may arise as a result of fair value adjustments is subject to final fair value of net assets of Broadway as at Settlement date; and
9. This balance represents the deferred consideration payments as per the Sale Agreement.

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Contact details

CORPORATE WEBSITE
www.aumake.com.au
MEDIA RELATIONS
Lynn Semjaniv, Sauce Communications
Mobile: 0481 004 797
Email: lynn@saucecommunications.com.au
INVESTOR RELATIONS
Keong Chan
Executive Chairman
Email: keong.chan@aumake.com.au

Twitter: @AuMakeAus
Instagram: @aumake
LinkedIn: www.linkedin.com/company/aumake
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