Ann: Chairman's Address to Shareholders , page-3

Hi Timee, I’m not surprised by the SP holding up. The Oroton-brand share of the profit last FY was 39.5 cps. They have been opening new stores in Asia and the first of these stores are now becoming profitable. Looking at what Oroton have been able to achieve in Australia over the past decade, including the GFC period, I see Asia as massive potential for Oroton, held back only by the cashflow required to rollout new stores. My estimate of Oroton brand profit in FY13/14 is 47 cps, or a forward P/E of 14. On top of that is the $27M cash injection from RL which will turbo-charge new store rollout - that more than justifies this P/E. Oroton management have shown how well they can grow profit.