Annual Meeting Speeches and Presentation

Agenda
01 Board Introduction
02 Chair Presentation
03 CEO Presentation
04 Shareholder Questions & Discussion
05 Resolutions
06 Refreshments

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John Rae
Independent Director
Dianne Williams
Independent Director
Grant Biel
Director Emeritus
Katherine Turner
Independent Director
Paul Izzard
Independent Director
George Adams
Independent Chairman

Resilience through adaptation
•Bremworth’s Napier based spinning plant was
taken offline by flooding resulting from Cyclone
Gabrielle
•Napier was a key part of Bremworth’s
operations and supply chain, providing 75% of
total yarn to the Auckland carpet plant and
100% of dyed fibre to the Whanganui yarn
plant
•Massive impact on our people, new product
development and our ability to supply the
market
•Pivot to build alternative supply while
maintaining quality - while Napier remains
offline, we have reviewed & reimagined our
future with hybrid supply chain
•Consider new growth strategies with new
unconstrained supply chain

Insurance
•Priority is to return the business to a stable
footing following Cyclone Gabrielle and pursue
an insurance claim for damage and business
interruption
•The values insured have been arrived at in
conjunction with independent consulting
engineers
•Commissioned an independent engineering
assessment as to the cost of reinstatement
•The Board have appointed claims negotiator
BMS Risk Solutions to act on our behalf to
settle insurance our claim as efficiently as
possible
•Objective is to preserve optionality in relation to
a possible rebuild of Napier or not to rebuild
and to secure our yarn supply from other
sources

Board-led strategic review
Objectives
•What decisions must be taken to ensure a sustainable, profitable business model?
•Once insurance is settled, what are the investment choices that should be considered?
•How should any surplus funds be efficiently returned to shareholders?

FY23 Highlights
•FY23 net profit after tax increased to $10.7m, a
379% increase on FY22
•Net profit follows receipt of $35.5m from
insurance
•Normalised loss after tax was ($2.8m)
•Decline largely driven by a softening economy,
significant investment in retail samples and
technology and the impact of Cyclone
Gabrielle.
•FY23 normalised EBITDA was break-even
•Board has committed to a thorough strategic
review following Cyclone Gabrielle given the
quantum of insurance proceeds likely to be
received
•While no dividend has been declared for FY23,
our goal is to return to dividends by FY26

Bremworth experience store
•Opened this month at Home Ideas Centre soon
to be known as Residium
•Trial Omnichannel Strategy to grow the rug
business
•We have well developed e-commerce sites,
however research shows 57% of consumers
purchased their rug in store*.
•Will also support the sale of carpet –
connecting customers with selected retail
partners
•Centre has 80 lifestyle brands and attracts
over 50,000 visitors annually
•Secured exclusivity in soft flooring category in
this key strategic location
•Immersive space to get inspired and be
creative, plus learn and interact with the
Bremworth brand

Highlights
•FY23 carpet revenue dropped by 3% on FY22
largely due to cyclone-related disruptions and
a softening economy
•Rug revenue increased by 45% off the back of
FY22 17% growth
•Bremworth remains the most preferred brand
at 34% when compared to key competitors *
•We’ve been awarded the most trusted carpet
brand for the 10th consecutive year **
•We are now training over 63 leaders through
our Te Ara Rangatira training and
development programme
•Implemented a new radio frequency dryer at
Whanganui as part of our ongoing
commitment to reduce our carbon footprint
•We developed 5 new products which are
scheduled to launch in the 1st half of 2024
calendar year
*TRA Consumer Insights Research
**Readers Digest Most Trusted Brand

FY23 Financial Snapshot *
$ millions
Revenue
EBITDA
Normalised EBITDA
Net Profit After Tax (NPAT)
Normalised NPAT
Cash and bank
FY23
89.7
13.4
-0.2
10.7
-2.8
39.3
FY22
95.5
4.9
4.9
2.2
1.7
14.9
* Information extracted or derived from audited financial statements
•FY23 revenue and normalised earnings (EBITDA)
fell 6% and 104% respectively on FY22 due to
softening economy, cyclone related disruption
and increased investment
•Normalised EBITDA break even
•NPAT of $10.7m coming from insurance proceeds
net of costs
•Significant uplift in cash position

•Total FY23 revenue of $89.7m, down 3% ($5.8m) on FY22
•1H23 marked the first six-month period of post-pandemic
trading. Carpet revenue grew by 2% on 1H22 with unimpeded
focus on implementing our strategic transformation plan
•$1m decrease in revenue at Elco Direct wool acquisition
operation, largely because of soft demand for strong wool
globally
•Other revenue was down $3.1m due to the full year impact of
exiting the commercial business and from sales of carpet yarn
we could not fulfil following Cyclone Gabrielle
A resilient result

•Cash and bank of $39.3m as at 30 June 2023
•Ongoing discipline around working capital
management
•Strong financial position with financial resources
to support post-cyclone rebuild of business
•Consider pursuing new opportunities
Cash position bolstered
by insurance

W e h a v e a n e n o r m o u s
o p p o r t u n i t y t o r e b u i l d
wool’s share of the
f l o o r i n g m a r k e t a n d
g r o w o u r b u s i n e s s i n N Z
a n d a n e v e n g r e a t e r
o p p o r t u n i t y i n A U
NZ soft flooring market share estimate by fibre
WoolSynthetic
Australia soft flooring market share estimate
by fibre
WoolSynthetic

24 – 25 - 26
Foundations for new
business model
•Complete board-led strategic review
•Fine tune new hybrid supply chain
•Continue to invest in brand and
technology
•Right-size organisation
•Trial omni-channel
•Improve productivity
•Investigate new geographies
FY24
Accelerate revenue
•Grow volume in New Zealand &
Australia
•Improve gross margins
•Re-enter commercial markets
•Benefits of cost-out strategy realised
•Return to dividends
FY25
Sustained profitable growth
•Full benefits of transformation
strategy
•Partnerships and product
adjacencies
•Free cash flow generated
•Enter new export markets
FY26 – ONWARDS

Resolutions
Resolution 1 – Re-election
of Dianne Williams:

That Dianne Williams, who retires and
is eligible for re-election, be re-
elected as a director of the Company.
Resolution 2 – Re-election of
Paul Izzard:
That Paul Izzard, who retires and is
eligible for re-election, be re-elected
as a director of the Company.

Resolutions
Resolution 3 – Auditor’s remuneration:
That the directors be authorised to fix the
remuneration of the auditor

Proxies and postal votes
The Company has received approximately 14.0 million proxy and postal votes representing approx. 20% of total
shares, with approx. 90% of those in favour of each of these three resolutions.
ForAgainstProxy
discretion
Re-election of Dianne Williams12,801,74514,1311,233,573
Re-election of Paul Izzard10,386,47926,6601,233,573
Auditor’s remuneration12,760,8376,7691,282,534

Disclaimer
•This presentation has been prepared by Bremworth Limited (“BRW”).
The information in this presentation is of a general nature only. It is not a
complete description of BRW.
•This presentation is not a recommendation or offer of financial products
for subscription, purchase or sale, or an invitation or solicitation for such
offers.
•This presentation is not intended as investment, financial or other advice
and must not be relied on by any prospective investor. It does not take
into account any particular prospective investor’s objectives, financial
situation, circumstances or needs, and does not purport to contain all
the information that a prospective investor may require. Any person who
is considering an investment in BRW securities should obtain
independent professional advice prior to making an investment
decision, and should make any investment decision having regard to
that person’s own objectives, financial situation, circumstances and
needs.
•Past performance information contained in this presentation should not
be relied upon (and is not) an indication of future performance. This
presentation may also contain forward looking statements with respect to
the financial condition, results of operations and business, and business
strategy of BRW. Information about the future, by its nature, involves
inherent risks and uncertainties. Accordingly, nothing in this presentation
is a promise or representation as to the future or a promise or
representation that a transaction or outcome referred to in this
presentation will proceed or occur on the basis described in this
presentation. Statements or assumptions in this presentation as to future
matters may prove to be incorrect.
•A number of financial measures are used in this presentation and should
not be considered in isolation from, or as a substitute for, the information
provided in BRW’s financial statements available at
https://bremworth.co.nz.
•BRW and its related companies and their respective directors, employees
and representatives make no representation or warranty of any nature
(including as to accuracy or completeness) in respect of this presentation
and will have no liability (including for negligence) for any errors in or
omissions from, or for any loss (whether foreseeable or not) arising in
connection with the use of or reliance on, information in this presentation.
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Bremworth 2023 Annual Shareholder Meeting Speeches

Slide 3 - Board
Joining me today are your Directors. I’ll ask them each to raise their hand when I
introduce them.
Firstly, Dianne Williams... then John Rae ... Paul Izzard .... and Katherine Turner.
And there is, of course, also Grant Biel, co-founder of the Bremworth carpet
business and the Company’s first ever Director Emeritus.
Your directors bring a diversity of skills, experience and thinking to the table, and
ensure core competencies are met across critical areas for our company. Also
joining us today is our CEO, Greg Smith and our long-serving CFO, Victor Tan, who
has recently announced his retirement. A number of our advisers including our
auditors are also present. I’d like to thank all the professional firms who have
provided valuable advice to Bremworth over the last year.

Slide 4 - Chair’s Presentation
I’d now like to move on to my presentation for today.

Slide 5 - Our vision
Our vision is to become a global leader in designing and creating desirable,
sustainable, safe and high performing natural interiors ... and we remain committed
to achieving this goal.

Slide 6 - Resilience through adaptation

In February of this year, our Napier facility was taken offline by extensive flooding
during Cyclone Gabrielle. For context, Napier supplied 100% of our dyed fibre and
about 75% of our yarn.

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Naturally, the impact of the event was significant and disrupted the supply of yarn
and dyed fibre to the Auckland and Whanganui factories.
Without this supply, work at these plants was at times suspended or heavily
constrained, until alternative supply could be found, commissioned and brought
online.
This event also necessitated a rationalisation of our range which saw the best-selling
products prioritised to utilise the limited inputs available.
Our Whanganui plant and team adapted well to the deficit created as a result of the
cyclone and increased production by over 50% to help fill the gap. Despite their
heroic efforts to fill the gap we still had to find over half of our yarn requirements from
elsewhere.
We ensured all our Hawke’s Bay staff were paid throughout the disruption and we
are appreciative of those who supported us during the cleanup of the factory during
this time - as well as those who have commuted each week to operate our licensed
dyehouse facility in Christchurch. Sadly though, we were forced to make the Napier
team redundant in July as it became clear that re-commissioning the plant would
take a long time and we wanted to ensure that the team could get on with their lives
in the meantime.
Our leadership team also took on additional responsibilities as they managed new
workstreams, health & safety, communication, site stabilisation, insurance and
alternative supply of dyed fibre sourced from offshore channels.
In addition to other initiatives, the new product development programme was also
heavily disrupted.
Thankfully, the company had advanced risk management plans in place and within a
week of the event was able to enact these, with team members flying to visit
potential suppliers in Christchurch and overseas.
Our commitment to our quality standards and the use of New Zealand wool remains
resolute and we were able to rapidly obtain an export licence to ship our New
Zealand wool fibre directly from Elco around the world for processing.
This new international hybrid supply chain that is being developed as a result of the
cyclone is expected to remove capacity constraints over time and allow us to grow at
an accelerated rate.
Naturally, our focus over the past 9 months has been to replace our yarn supply as
efficiently as possible and with that now largely in place, we have also been busy
with new products which we look forward to launching in the first half of the calendar
year 2024.

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I would also like to gratefully acknowledge the support we received from our retail
partners during this challenging time.
This event has also driven an immense amount of work for Greg and his team and
the board and I are deeply grateful for their efforts to keep our business alive and
sustainable during this incredibly difficult time...thank you

Slide 7 - Insurance
Our priorities since the cyclone have been to return the business to a stable footing
and work through the insurance claim in respect of both the damage to the Napier
plant and the interruption to our business caused by that damage. This work is
ongoing.
As previously communicated, we have business interruption cover in place for 18
months post the Cyclone. Amongst other things, this covers loss of earnings and
increased costs of doing business while we get our new supply chain in place.
The larger claim relates to the material damage to the Napier plant, building and
stock on hand. As you can see, and as advised in our Annual Report, we are insured
for up to $49.4m for the building, $116.1m for the plant and $3.8m for stock on hand.
These values insured for plant and building were arrived at in conjunction with
independent consulting engineers. The values for the building and plant are based
on reinstatement cost – that is, if we elect to reinstate our Napier site, we can claim
our costs of doing so up to these amounts. At this stage we are still in discussions
with our insurers as to what work would be undertaken in reinstatement and at what
cost.
If we elect not to reinstate the Napier site, we still have a claim for the damage to the
buildings and plant but the amount we can claim is yet to be determined. As we have
previously advised, it is impracticable to estimate an amount because of the extent of
estimation uncertainty around the amounts that would be receivable.
Again, as previously communicated, in working through the insurance claim, we
commissioned an independent engineering assessment as to the scope and cost of
reinstatement and our insurers have also commissioned and received a partial
engineering assessment from its own advisors. The board has also appointed
leading claims negotiator BMS Risk Solutions to act for us in closing this matter out
as efficiently as possible.
Much as I would like to give you a definitive timeline for the settlement of our claim,
I’m sure you understand, that is not possible, but we undertake to keeping you
informed of material progress as it happens.

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Our objective in all of this is to ensure we preserve optionality, or to keep all of our
options available, to maximise value for the business in relation to a possible repair
and rebuild of the Napier plant and the extent to which our yarn supply from other
sources can play a role. It is possible that the business will end up with surplus
capital and to that end, the board has commissioned a Strategic Review.

Slide 8 - Board-led Strategic Review
As the FY23 results indicate, the quantum of insurance proceeds received to date,
as well as potential future payments, will likely significantly alter the company’s
financial position.
To ensure these proceeds are used effectively and appropriately the Board has
committed to a thorough strategic review.
The review has three key objectives to address:
● Firstly, what decisions must be taken to ensure a sustainable, profitable
business model in light of the material changes to our supply chain?
● Secondly, once insurance is settled, what are the investment choices that
should be considered?
● And finally, how should any surplus funds be efficiently returned to
shareholders?
It is important to the board that we consider all options including the opportunities
that the new supply chain presents to rebuild our business to a more sustainably
profitable future as well as payment of all or part of the insurance proceeds received
to shareholders and the possible sale of assets in a manner which would allow for a
tax efficient distribution of all funds.
Once the strategic review is completed and our final insurance position is
established which, as I earlier noted, may take some time, we will have a defined
plan for how these insurance funds will be allocated and for our next steps as a
business. I look forward to updating you at that time. Greg will also talk you through
our next three-year pathway to growth during his presentation.
________________________________________________________________________

Slide 9 - FY23 Highlights
Despite the impact of the weather event on our operations, we finished FY23 with a
$10.7m net profit after tax, a 379% increase on the previous year.
This was supported by a $35.5m insurance payout which we have recognised as
income under the accounting standards.

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Normalised profit after tax was a loss of $2.8m driven primarily by a softening
economy, a significant investment in retail samples and technology and of course the
impact of the cyclone on our operations. Notably, normalised EBITDA for the year
was break-even.
On the matter of dividends, as is anticipated in the strategic review, it is possible we
will end up with surplus funds. Once we fully understand this we will revert to
shareholders with details on the next steps and while no dividend has been declared
for FY23, our goal is to return to dividends by FY26.
Over to you Greg

Slide 10 - CEO’s presentation
Thank you, George.
Kia ora koutou katoa, good afternoon and thank you for joining us at our Annual
Shareholder Meeting.
FY23 year is my second year as Bremworth’s CEO and I would like to acknowledge it
has also been the most challenging year in our corporate history.
As many of you know, the events we have encountered in recent times have tested
our resilience and adaptability. From lawsuits to the global pandemic, and even natural
disasters, we have had our share of hurdles.
These events were beyond our control, but I am incredibly proud of how our team has
navigated through these turbulent times. Despite the disruptions, we have managed to
keep our business intact and continue moving forward.
Our core purpose, which revolves around finding a more sustainable way and utilising
wool as a vehicle for change, has remained at the heart of our operations.
I want to express my sincere gratitude to my team for their unwavering dedication and
commitment during these challenging times.
Among these I would like to give a special acknowledgment to our retiring CFO
Victor Tan. Victor has provided 40 years of professionalism and loyalty to the
company. His astute governance and insight are responsible for the level of
insurance the company had in place and we are grateful to have had his support
throughout his tenure with us and also to retain his expertise as Company Secretary.

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I would also like to extend my thanks to our shareholders. Your support and loyalty
have been instrumental in helping us weather the storm. We understand that these
past few years have been uncertain, and we appreciate your trust in us as we strive to
overcome these obstacles.
PAUSE
Over the next 20 minutes, I want to take you through the results of this latest year of
transformation, starting with our exciting new retail presence.

Slide 11 - Bremworth Experience Store
In line with our strategy to grow our presence, we have opened the new Bremworth
experience and retail store, where you are today.
This is a first for the industry and is part of a trial omnichannel strategy that aims to
bring us closer to the end consumer as we look to grow our rug business.
We have well-developed digital platforms which are growing fast, delivering high-
margin rug sales. However, research shows that over half of rug buyers purchase in-
store and this presents a significant opportunity to expand our share of this market.
We know that rugs are a relatively high-involvement purchase and a high-ticket item
- the most expensive we have sold is around $12,000 for a single rug. It is logical
that consumers want to touch and feel the product before they purchase.
We will also support the sale of our carpets through this brick-and-mortar store -
connecting customers with selected retail partners who can then quote and install
our carpet.
The Home Ideas Centre, soon to be renamed Residium, has 80 lifestyle brands and
attracts over 50,000 visitors annually.
Bremworth has exclusivity in the soft flooring category and as you can see has
secured a key position at the entrance. Inside the store we have collaborated with
other suppliers to showcase the beauty of locally-made natural materials.
We have created an immersive space for consumers to be inspired and interact with
the brand. This immersion works both ways and is also designed for Bremworth to
better connect with and learn from our customers as we look to refine our offering to
them. For those of you online, that can, I invite you to come in and explore the space
and meet the team.

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Slides 12 & 13 - FY23 Priorities & Progress
Every year we embark on key focus areas based on a three-year planning horizon.
The first of these is to grow revenue.
While the financials may show a drop in revenue, it is important to note that this
result is relatively encouraging given the circumstances.
The first half of FY23 marked the first six-month period of post-pandemic trading.
Moving forward on the implementation of our strategic transformation, our carpet
revenue grew by 2% on the previous half-year period.
The second half of the year however saw us feel the full weight of Cyclone Gabrielle.
The disruption to our business was immediate and had a corresponding impact on
our bottom line - with revenue falling by 3% for the full year.
Given the level of impact on our supply chain, along with an economic softening in
the markets we trade in, this fall in revenue is smaller than it could have been.
Pleasingly we have been able to maintain strong growth in our high-margin direct to
consumer rug business.
As part of our growth programme we committed to making winning products that
meet the needs of our customers and contribute to a more sustainable future. The
cyclone constrained this new product development in FY23. We are now back on
track by incorporating offshore supply meaning this coming year we will introduce
five new products - This will have a positive impact on our sales.

Slide 14 - Highlights
Carpet revenue dropped by 3% in FY22 largely due to Cyclone-related disruptions
and a softening economy.
Revenue within our rug business however continues to accelerate and was up 45%
on FY22 which, as mentioned previously represents a significant growth opportunity
for the company.
As we continue our journey from manufacturer to consumer brand, TRA Consumer
Insights research shows Bremworth remains the most preferred brand in NZ- with a
preference rating against our main competitors of 34%.

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Trust is an essential element of any business and we are proud to be acknowledged
as the most trusted carpet brand in NZ for the tenth consecutive year.
We are continuing to invest in our leaders and 63 members of our team are part of
our Te Ara Rangatira (which means ‘the way that unites people’) training and
development programme. Leadership has been key to navigating a better future for
Bremworth through these difficult times and everyone plays a part in achieving our
goals.
A new radio frequency dryer in our Whanganui plant has been implemented to help
reduce total carbon emissions.
The international supply chain model is beginning to yield results and has helped get
our new product development pipeline back on track.
New supply chains take time to develop. We have travelled the globe to find like-
minded partners that share our belief in high quality premium wool yarns and lasting
win/win relationships. It’s a challenging process but we are making good progress.

Slides 15 & 16 - Financials
There is lot of information on this slide to absorb.
The key takeaways are:
Revenue and normalised earnings (EBITDA) fell 6% and 104% respectively - off the
back of a softening economy, cyclone-related disruption, and increased investment
in retail samples and technology.
Net Profit After Tax rose by 379% to $10.7m however this was boosted by the
receipt of $35.5m of insurance progress payments less cyclone-related costs
incurred.
Our cash position of $39.3m at the end of the year is a significant uplift from the
previous year and as George mentioned is expected to grow further as we finalise
settlements with our insurers and pending Board decision around the post-cyclone
rebuild.

Slide 17 - A Resilient Result
In the first half of the year our execution was not perfect however we were seeing
some year on year revenue growth. This was unable to be maintained in the second
half for all the well known reasons mentioned. I’m not happy that we were unable to

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achieve growth last year and look forward to showing how these circumstances have
set us up for success in coming years.

Slide 18 - Cash Position
We closed the year with a cash balance of over $39.3m, a position significantly
stronger than the start of the year and thanks to good governance, a strong
relationship with our insurers and strategic planning we will build Bremworth back
stronger. As the Chair noted in his presentation, once the strategic review is
completed, we will be in a position to determine the amount of cash required by the
business to pursue new opportunities.
I take this opportunity to advise that we are in the process of receiving a further
$10.0 million progress payment which would largely offset the further insurance-
related costs since balance date.

Slides 19 & 20 - The Opportunity for Bremworth
While Bremworth has faced an extreme level of unwelcome disruption over the past
couple of years, the market interest in wool continues to grow.
Whether it is in the fabric of their clothing or the fibres they walk on, consumers are
more aware of the downsides of synthetics and consciously choosing more natural
products in their homes and their lives.
Wool carpet has a comparatively small share of the New Zealand flooring market at
the moment and an even smaller share in Australia.
What this means is the opportunity for us to grow our share is significant and we
have the infrastructure, expertise and now greater capacity and cash resources to
shift the market in our favour.

Slide 21 - Growth Strategy
We have a clear growth strategy built on four pillars:
• to grow the wool flooring market
• to grow our share of this market
• to expand our presence; and

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• to use design-led innovation to create competitive advantage

Slide 22 - Growth Strategy
Our growth strategy has remained consistent, but the events of the last nine months
have changed our tactical approach to its implementation. This slide demonstrates
our pathway to growth over the next three years.
In FY24 we will be focussed on laying the foundations for a new business that is
more profitable and sustainable with a lower fixed cost base.
Our strategic vision involves a combination of New Zealand and Australia, along with
a mix of local and offshore supply to lower our overall costs and improve our profit
margins.
One of the key factors in achieving our objectives is the ability to increase our supply
availability. Currently, we sell almost everything we manufacture. Our supply is often
pre-sold, leaving no room for further growth. However, as we continue to
commercialise our offshore made yarn, we will see a rise in our ability to meet
demand, in turn growing volumes. We expect these increased volumes to translate
to solid revenue growth in FY25.
This growth is not solely dependent on selling more of our existing products. We will
introduce new ranges that will stimulate sales and create excitement in the market.
Furthermore our margins will improve due to lower manufacturing variances as a
result of the cyclone.
Growing volume and margin and lowering costs may sound ambitious but the reality
is our new mixed supply chain model enables unconstrained supply to meet demand
with lower fixed and total costs.
In addition to these factors, we are implementing a cost-out strategy. As we
transition into a different business, we will ensure that our expenditure is aligned with
the new business model and go to market strategy.
We will continue to invest in our Direct to Consumer rug business. Consumers love
our product and our online platform. We also know that Omni-channel businesses
enjoy higher brand awareness and margins which is good for us and our wholesale
partners.

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And finally while the events of this past year have been challenging, we were well
prepared. We have introduced a new supply model relatively quickly. There are risks
which need careful management however we are learning fast. All in all we are
emerging from this year a stronger, leaner and more resilient business.

Slide 23 - Committed to a Bold New Future
Bremworth has a team of engaged and dedicated people who are focused on the
ongoing implementation of our strategy.

We are building a high-performance culture and as the shift to natural fibres
becomes more prevalent, Bremworth will leverage its investment in the brand to
grow our share of the wool flooring market.

I would like to close today by thanking you, our shareholders, for your commitment to
us. Your support is helping Bremworth change the flooring market and support New
Zealand’s wool sector.