Leveraging Kiwi capability on the

world stage

February – March 2016

David Banfield/Deidre Campbell

Early insights - January 2014

• Business declining in a growing market • Business that needed support and to embrace new thinking • Business that needed to believe in itself before the markets

could believe in it• Ambition not reflected in results• Board that wanted new energy, speed and thinking

AIM: A business that did what it said

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An international business led from New Zealand

Methven United Kingdom(MUK)- Sales & Marketing

MethvenAustralia(MAU)- Sales & Marketing

Methven New Zealand(MNZ)- Sales & Marketing

Methven China(MCN)- Sales & Marketing

Group Operations

- Manufacturing

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Financial History

Financial Performance

Financial Position

NZ $000Sales revenue 97,868 96,349 96,720 98,420 106,202 122,087EBITDA1 13,292 12,682 11,286 12,454 13,880 12,421EBITDA1 margin (%) 13.6% 13.2% 11.7% 12.7% 13.1% 10.2%Net profit after tax 5,880 5,690 4,708 5,150 6,462 4,749

June 2015 March 2015 March 2014 March 2013 March 2012 March 2011

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June 2015 March 2015 March 2014 March 2013 March 2012 March 2011(NZ $000) Unaudited Unaudited Variance %Total equity 52,651 49,901 42,865 45,280 48,211 50,547Net (debt) / cash 23,871 22,754 14,450 17,222 11,746 19,074Capital expenditure 3,684 3,433 1,150 2,092 3,651 3,659ROCE (%) 13.4% 14.6% 13.8% 14.3% 16.1% 12.7%

Good progress on sales, profits and new international distribution

Half Year snapshot1July – December 2015 vs same period 2014

• Net Profit After Tax (NPAT) increased 26.8% to $4.7m• Total Group sales growth of 8%• 8% sales growth and market share growth in NZ• 6.4% sales growth and market share growth in Australia• Aio™ range supporting growth and continuing to win awards• New international distribution agreement in 5 test markets

leveraging global IP• Heshan factory performing in line with expectation. Leadership

transition completed• New Group leadership team complementing existing capability

to help drive performance

1. Following our change of balance date last year. all references are to our new half year -the six months ended 31 December 2015 and comparatives are to the six months ended 31 December 2014 – 6 –

Half Year snapshot (cont’d)

• Strong operating cashflow of $6.6m • Net debt reduced by 9.7%• Fully imputed interim dividend of 4.0 cps to be paid on 31

March 2016• Full year guidance maintained. NPAT growth expected to be

towards the top end of range (15-25%)

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BoardAgreement

StrategicImplementation

ExecutiveAlignment

What’s new

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What’s new The Board

Group Executive Leadership

Market Executive Teams

Executive Teams

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The spirit of innovation 1886

Methven was founded as an iron and brass foundry by Scottish born George Methven in Dunedin, New Zealand.

1906

Began manufacturing taps and copper laundry vessels

1939-45

Manufactured ammunitions for the New Zealand Army.

1950-65

During post-war building boom Methven focused on tapware and valving product for New Zealand homes.Bought by McKechnie Bros PLC and Peglers Ltd.

2011

Methven celebrated 125 years.Methven brand launched into the UK market and at ISH.Launch of Waipori Satinjet showers and Waipori tapware.

1996

Launch of Fastflow™ technology.

2014

Methven acquires Invention Sanitary (premium manufacturing supplier in Guangdong Province, China).

2012

Launch of Kaha Satinjet showers.Launch of Aroha tapware.

2004

Launch of Satinjet® technology.Methven lists on the NZ stock exchange.Methven tapware launched in Australia.

2007

Launch of Kiri Satinjet showers and Kiri tapware.Methven acquires The Deva Tapware Company Limited –one of UK’s largest independent shower and tapware supplier.

2009

Launch of shower infusions.Launch of Tahi Thermostatic.

2015

Global launch of Aurajet – NZ (19 February).

2015

Methven officially awarded as a Cool Brand in the UK(9 October).

2015

Methven UK opens new head office at Stonecross, featuring a purpose built Experience Centre (October).

2015

Successful Methven Heshan leadership transition to new CEO Andy Chen from retiring CEO Hui Zhuang(31 December).)

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2016

Methven celebrates 130 years(September).

Global recognition

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We own 2 of 5 global shower technologies• An amazing shower experience that doesn’t cost the earth

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Growing our commercial footprint to leverage IP

IP & Awards Coverage Sales Coverage

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Winning formula

Our plan:

• Think and act like the market leader • Insights drive action • Focus

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AustraliaNZ

UK China

Video removed

Digital Brand

• Launched in December 2014

• 2.5x the number of visits to the Methven site, with growth in all markets

• Biggest growth in Australia - 9x number of visits

• 63% increase in organic search year-on-year

• Strong growth in dealer locator conversion

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Digital disruption

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BrandAwareness

& Promotion

ReputationManagement

CommunityBuilding &

Engagement

Customer Care

& Experience

Service & Product

Promotion

Lead Generation

& Sales

NZ plumbers support Methven

• Methven remains a clear leader in showers and tapware with 95% brand preference

• Top 5 drivers of brand choice identified • Methven significantly outranking competitors on key criteria

for plumbers• Methven have a very strong Net Promoter Score (NPS) of 70%

and looking to strengthen• Nefa valves have 67% brand preference and 30% NPS

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Insights drive action

• Aio insight effective at understanding market potential • UK NPS of 42% (market leading score)• Australian customer satisfaction at 94% • Work-on’s identified to deliver even more loyalty and relevance• Innovation focus to support long term profitable growth

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3 Year PlanFY16 - FY18

12th June 2015

Our Cause….

The unrelenting pursuit of amazing

water experiences that don’t cost the earth

Our Vision….

To be the authoritative leader in showers,

taps and valves, setting industry leading standards

for our customers, shareholders and team

STRIDES Goals – June 2018

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Employees Employees as shareholders

Sustainability Significant reduction in carbon footprint

Methven 130 – Our Goals

Revenue $130 Million

NPAT Towards 10% of revenue

Supply & Operations $6 – $8M stock reduction

Technology NPD sales of $10M

Retail New markets and customers delivering $6 – $8M of sales

Insight Improved NPS across key influencers

Digital & Data # 1-2-3 in search

Methven United Kingdom(MUK)- Sales & Marketing

MethvenAustralia(MAU)- Sales & Marketing

Methven New Zealand(MNZ)- Sales & Marketing

Methven China(MCN)- Sales & Marketing

Group Operations

- Manufacturing

Increasing our international footprint

Belgium Netherlands Luxembourg Spain Portugal

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Our new head office – June 2016

• Continuing our proud history of NZ manufacturing and development

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Outlook for 12 months ending 30 June 2016

• Maintaining guidance• Revenue growth of at least 5% • NPAT growth between 15 and 25% (towards top end of range) • Net Debt forecast to decrease• Dividend pay-out ratio 70-90% • Business to remain well within banking covenants

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Why invest in Methven

• Turnaround reflected in current performance• Strategic plan aiming to deliver $130m revenue • NPAT target towards 10% of sales• Cash generative • Strong history of dividend pay-out• Defined pay-out ratio of 70-90%• Upper quartile ROCE • Global IP – starting to increase international footprint • Utilising NZ-based skills and expertise to take Methven to the

world

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