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 2010 RISING STARS MICROCAP CONFERENCE
Thursday 10 of June 2010 / Level 4– Room 1/ SYDNEY HILTON (488 George St, NSW 2000)

AGENDA

MORNING SESSION

9:00-9:50 h. SILVER CHEF (ASX SIV) Allan English (CEO)

Charles Gregory (COO)

9:50-10:30 h. KONEKT LIMITED (ASX KKT) Serhat Oguz (CEO)

10:30-11:00 h MORNING COFFEE BREAK

11:00-11:40 h CLOVER CORPORATION (ASX CLV) Dr. Ian Brown (CEO)

11:40-12:20 h BIGAIR LIMITED (ASX BGL) Jason Ashton (Co-CEO)

12:20-13:30 h LUNCH BUFFET

AFTERNOON SESSION

13:30-14:10 h. CASH CONVERTERS INTERNATIONAL Ralph Groom (CFO)

(ASX CCV)

14:10-14:50 h. MANACCOM CORPORATION (ASX MNL) Mike Veverka (CEO)

14:50-15:20 h AFTERNOON COFEE BREAK

15:20-16:00 h PATTIES FOODS LTD (ASX PFL) Greg Bourke (CEO)

16:00-16:40 h XRF SCIENTIFIC LIMITED (ASX XRF) Terry Sweet (CEO)

.

www.microequities.com.au
 2010 RISING STARS MICROCAP CONFERENCE

PROFILES

EVENT ORGANISER

Microequities is a specialised Microcap asset manager. Established in 2005 as an independent

investment research house devoted to Microcaps. Microequities expanded into funds
management in early 2009 by launching our flagship Deep Value Microcap Fund.

Why us? Microequities' investment managers and analysts operate uniquely within the Microcap
asset class. This asset class offers investors access to Australian companies with an attractive
growth profile. However, it also necessitates a systematic and process driven research approach
to investing. We are uniquely positioned within the Microcap asset class and posses research
capabilities, deep knowledge and experience within the Microcap space. Our value-growth
approach, coupled with a long term investment strategy, provides us with an investment ethos
that is particularly well suited to Microcap investing.

The Deep Value Microcap Fund: Launched in March 2009, is a high conviction, value growth
Fund that seeks to identify and invest in growing, profitable undervalued companies. The Fund
does not have a broad based approach to investment. It maintains concentrated holdings in what
we consider the most compelling companies within the Microcap asset class with the most
attractive risk/reward metrics. The fund has returned 83% since inception (net of fees) compared
to 43.12% for the All Ords Index.

Carlos Gil (CIO) / cgil@microequities.com.au / +61 2 9231 6169

EVENT SPONSOR

Fortbridge Consulting is a media and investor relations firm representing publicly listed
companies. Fortbridge works with their clients to build corporate reputation and promote value.

Fortbridge investor communications programs target a range of stakeholders, including

shareholders, institutional investors and funds, as well as the financial media, in the markets in
which their clients operate.

With access to up-to-date research and investor contact information for financial centers around
the world, Fortbridge is able to research and maintain meaningful sector specific investor lists for
their clients. Using this information, Fortbridge target relevant institutional investors and funds to
engage their support for their clients’ IPOs, institutional placements, capital raisings, SPPs or
on-market trades.

Fortbridge consultants in Sydney, Perth, London Toronto and Santiago have a track-record in
working with clients to build shareholders value and to grow business; to communicate the value
of new developments and to manage significant issues that impact reputation.

Bill Kemmery (Managing Director) / bill.kemmery@fortbridge.com / +61 2 9331 0655

2010 Rising Stars
Microcap Conference

PATTIES FOODS LIMITED
ASX PFL
ASX‐PFL
Presented by Greg Bourke (CEO) 

SYDNEY HILTON, 10 of June 2010

Brief history.
• November 2006: IPO – Rijs family members sold down to 42%.
• May 2007:  Acquire Creative Gourmet (Frozen Fruit business)
• November 2007: New CEO appointed
November 2007: New CEO appointed 
• Early 2008:  Commence installation of additional capacity 
– savoury pies, sweet pies.
• 2008:  Supply issues, and reduced promotional activity.
• September 2008: New CEO appointed (ex George Weston Foods). 
• February 2009: New CFO & GM Manufacturing appointed
• July 2009: New Board structure (7 directors)
– Independent chairman
Independent chairman
– 3 x Non‐Executive independent directors.
– 2 x Executive directors 
– 1 Non – Executive director
• December 2009: New Head of Sales appointed (ex Fonterra)
• February 2010: Announce record sales revenue and earnings for 1H10. 
Strong margins with improving profits.
($m) 2H08 1H09 2H09 1H10
Net Sales Revenue 78.8 90.5 88.7 102.2
Costs of Goods Sold 47.5 54.3 56.6 61.9
Gross margin 31.5 36.2 32.1 40.3
Operating Expenses 17.6 22.3 18.9 23.5
EBITDA (underlying) 13.9 13.9 13.2 16.8
EBIT (underlying) 11.5 11.1 9.9 13.9
NPAT (underlying) 7.2 5.2 6.6 8.5
NPAT reported 6.5 4.7 6.6 7.5

Earnings per share (cents) 5.1 3.7 4.7 6.1

Div per share (declared) 4.5 2.0 2.5c 3.0c
Gross Margin/Sales 39.9% 40.0% 36.2% 39.4%
EBIT/sales 14.6% 12.2% 11.2% 13.6%
NPAT/sales 9.1% 5.7% 7.4% 8.3%

Building Balance Sheet Strength
($m) Dec-09 Jun-09 %
• Net Debt to Equity Ratio of
Current Assets 64.0 58.8 +8.8%
55.0% at 31 December
2009 (72.1% at 31 Fixed Assets 63.8 62.0 +2.9%
December 2008) B d and
Brands dG
Goodwill
d ill 78.7
8 78.9
89 -0.3%
0 3%
• Net Debt reduced by $3.7m Investments in Joint Ventures 8.3 8.0 +3.8%
to $63.5m due to improved
working capital Total Assets 214.9 207.7 +3.5%
management and earnings. Current Interest Bearing
Securities 2.3 2.3 +0.0%
• Debt facility with Westpac
with the next review date on Other Current Liabilities 26.8 20.3 +32.0%
30 Sep 2011. Long term Non Current Interest Bearing
interest rate hedge on 50% Securities 64.5 68.2 -5.4%
of total debt.
Other non-current liabilities 5.8 5.8 +0.0%
• Capital expenditure for
Total Liabilites 99.5 96.6 +3.0%
FY10 will be approx $9m of
which $3m is maintenance Net Assets 115.4 111.1 +3.9%
and the remaining is Equity 68.2 68.2 +0.0%
projects generating a
planned ROI of Retained Profits and Reserves 47.2 42.9 +10.0%
+20%. Total Equity 115.4 111.1 +3.9%
Frozen savoury & dessert industry
• Capital intensive and steep learning curve to achieve 
economies of scale and best practice – solid barriers to entry.
• Attractive to consumers as “Australia’s favourite meal” – the 
meat pie.
• Increasing consumer trends towards sweet and savoury 
snacking – especially out of home.
• Customers need innovation in food to create demand.
• Customers need market leading brands to confirm quality 
proposition. 
• Out of Home market growing faster than traditional 
Out of Home market growing faster than traditional
supermarkets. 
• PFL is the only national supplier servicing all channels. 
• PFL has more than 3 times the revenue of nearest savoury 
competitor.  

History of strong organic growth …
when not supply constrained!
$200 ACQUIRED CREATIVE
$180 GOURMET FROZEN
FRUIT
$160
$140 +12%
millions

$120
$100 SUPPLY
ISSUES
$80
+13%
$60
$40
$20
$0
FY07 FY08 FY09 1H10
1H 2H
PFL is category leader –
In Home.
Retail Savoury Retail fruit pie

Market Share ‐ 26 weeks to 31 Dec Market Share ‐ 26 weeks to Dec 31
54% 61
60
52% 60
50% 59
59
48% %
58

46% 58
57
44% 57
56
42%
1HF08 1HF09 1HF10
1HF08 1HF09 1HF10

AZTEC – MAT 31 Dec 09 AZTEC – MAT 31 Dec 09

Over 50% share.

PFL is growing in Out of Home.

Out of Home Savoury Market Share

30

25

20

15

10

0
F07 F08 F09 F10
Management Estimate as at Dec 09
 How do we grow sales ?
• Create demand through clear multi‐brand positioning 
and focused communication strategies. 
g
• Strong customer relationships: when they grow – we 
grow.
• Consumer behaviour insights
– what is the consumer doing?
– develop new products to meet consumer needs.
p p
• Efficient production driven from
– Investment in state‐of‐the‐art equipment 
– Continuous improvement processes.

Our brands meet demand from most 
consumers
High Income

Everyday Special
Usage Usage

Low Income
Example of new product development

Strategic direction

• Build on investment in capacity.
Build on investment in capacity
• Continue growth through brand leverage. 
– Product innovation.
– Channel expansion.
• Strong opportunities as national supplier in Out of Home. 
• Longer term ‐ M&A.
 STRATEGIC FRAMEWORK
PHASES

Build
B ild Develop
D l Expand
E d
the and and
Base Grow Extend
OUTCOMES

¾Low costs ¾New Products ¾New Channels

¾High Cust. Service ¾Extra Ranging ¾New Regions
¾Defend the core ¾Extra Distribution ¾New Categories
¾Category Leadership ¾More customers ¾New sub-businesses
O

™Continuous Improvement ™Customer relationships ™Opportunity valuation

ENABLERS

™Sales Forecast accuracy ™Innovation everywhere ™Financial capacity

™ Excellent Execution ™Sales & Ops Planning ™Integration skills
H I G H P E R F O R M I N G TEAMS

PROGRESS V3