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1 Fr persnal use nly 22 September 2016 PREMIER INVESTMENTS DELIVERS STRONG FY16 RESULT RECORD PREMIER RETAIL SALES AND EBIT FINAL ORDINARY DIVIDEND INCREASED HIGHLIGHTS FOR FY16 Premier Investments underlying net prfit befre tax (NPBT) f $145.4 millin, up 22.6% n prir year 1,3 Premier Retail s underlying earnings befre interest and tax (EBIT) f $133.3 millin, up 26.1% and underlying EBIT margin up 152bps t 12.7% 1,2,3 Premier Investments reprted net prfit after tax (NPAT) f $103.9 millin, up 17.9% n prir year Premier Retail s sales passed $1 billin fr the first time Strng grwth in Premier Retail s sales and margin: Ttal sales up 10.9% t $1,049.2 millin 1,2 Like-fr-like (LFL) sales up 3.5% 1 Online channel grwing prfitably and well ahead f market, with sales up 39.6% n FY15 1 Smiggle s sales up 41.8% with ttal and LFL sales grwing strngly in all cuntries 1 - Smiggle UK perfrming ahead f expectatins - New stres pened in Malaysia and Hng Kng trading ahead f expectatins Peter Alexander s sales up 20.4% n last year 1 Final rdinary dividend f 25 cents per share (cps) fully franked (FY15: 21 cps) declared bringing ttal full year rdinary dividends declared t 48 cps fully franked (FY15 rdinary: 42 cps) Premier Investments Limited ( Premier ) tday reprted net prfit after tax f $103.9 millin, up 17.9% n prir year (FY15: $88.1 millin). Premier s underlying net prfit befre tax was $145.4 millin fr the financial year ended 30 July 2016 (FY15: $118.6 millin). 1,3 Premier Retail s underlying EBIT f $133.3 millin was up 26.1% n FY15 (FY15: $105.7 millin). Underlying net prfit befre tax increased 28.1% t $129.2 millin reflecting the mmentum being created by the grwth platfrms f Smiggle, Peter Alexander and Online as well as the cntinuing transfrmatin f Premier Retail s cre brands. 1,3 1 Grup result in FY16 includes 53rd week cntributing $16.8m in sales and $7.4m in EBIT. LFL Sales are reprted as 53 weeks v 53 weeks. 2 Excluding sales t Suth African Jint Venture in FY15. 3 Underlying EBIT and NPBT excludes nn-recurring csts in FY16 regarding a ne-ff litigatin expense ($2.3m) included within Other Expenses in the statutry accunts and in FY15 assciated with exit frm Suth Africa jint venture ($1.7m). Page 1 f 5

2 Fr persnal use nly Ttal sales fr Premier Retail were up 10.9% t $1,049.2 millin, breaking the $1 billin mark fr the first time. LFL sales were up 3.5% acrss the grup. Grss margin was up 78bps t 63.9% despite the weaker Australian dllar, increasing cmpetitin and an unseasnably warm Autumn. 1,2 Premier s Chairman, Mr Slmn Lew said: The Premier Retail team, led by Premier Retail CEO Mark McInnes, has again delivered a very strng perfrmance in a difficult retail envirnment. The 2016 result demnstrates the cntinued successful implementatin f the Premier Retail Strategy t drive grwth thrugh Smiggle, Peter Alexander and ur nline ffer while rejuvenating ur cre brands and imprving efficiencies. Smiggle sales are up 41.8% fr the year and 79% ver tw years. Smiggle nw has stres in Australia, New Zealand, Singapre, England, Sctland, Wales, Malaysia and Hng Kng and is a truly unique internatinal brand. Our strng trading results in each cuntry cnfirms the lng term stre rll ut targets management have set and we cntinue t actively review pprtunities in new gegraphies. Peter Alexander achieved sales grwth fr the year f 20.4% driven by the pening f 11 new stres, strng LFL grwth, innvative prducts and campaigns that resnate with ur custmers. We cntinue t rll ut new stres fr Peter Alexander and invest in the in-stre experience thrughut ur existing netwrk. Once again ur nline sales significantly utperfrmed the market, with ur nline sales grwing by 39.6%. We will cntinue t make significant investments in technlgy, peple and marketing, t achieve annual nline sales f ver $100 millin by Premier Retail CEO, Mr Mark McInnes said: Our first class team has delivered recrd sales, grss prfit and EBIT in a highly cmpetitive and vlatile envirnment. Our strategy is unchanged and we cntinue t pursue it relentlessly investing in expanding Smiggle glbally, grwing Peter Alexander significantly and delivering a superir nline experience fr ur custmers while achieving efficiencies and cntinuing t invest in ur cre apparel businesses." Page 2 f 5

3 Fr persnal use nly PREMIER RETAIL TRANSFORMATION FOCUS ON GROWTH & INVESTMENT Grwth Grw Smiggle significantly Grw Peter Alexander significantly Expansin and grwth f nline businesses Cre Grss margin expansin prgram Rejuvenatin f cre apparel brands Organisatin-wide cst efficiency prgram GROWTH INITIATIVES DELIVER Smiggle s successful glbal expansin cntinues Smiggle pened 52 new stres during the year. The brand achieved glbal sales in FY16 f $188.0 millin, up 41.8% n last year with strng LFL sales in all gegraphies (Australia, New Zealand, Singapre and the United Kingdm). Ttal sales are up 79% ver tw years. Smiggle UK pened 40 new stres during the year, taking the FY16 year end stre cunt t 64. The brand expects t have between 85 and 90 stres trading befre Christmas Fllwing the Brexit vte, management perfrmed an analysis f ptential macr-ecnmic issues n Smiggle s UK ambitins and actively mnitred any impacts n pst-brexit trade. The sales perfrmance f the brand in the UK pst Brexit, has been equal t r better than prir t the vte. This strng trading pattern cmbined with strng market psitin reinfrced the view that Smiggle UK has the ptential fr 200 stres with annual sales in excess f $200 millin by calendar year During 2H16, Smiggle expanded its Asian ftprint by pening its first stres in Malaysia and Hng Kng. At year end, the brand had five stres trading acrss these tw markets and expects t have ten stres trading by Christmas The results have cnfirmed management expectatins that the tw markets cmbined have the ptential fr 50 Smiggle stres within five years. Mr McInnes said: The sales and custmer acceptance f Smiggle in each f the cuntries we have entered have been exceptinal. Our Managing Directr f Smiggle, Jhn Chestn, has led Smiggle t becme a truly unique glbal brand. During the year we pened 52 new stres wrldwide. Mre than 50% f Smiggle s revenue fr the financial year was delivered by internatinal stres, underscring ur decisin t invest in the brand glbally. Peter Alexander cntinues t perfrm strngly Ttal sales at Peter Alexander fr the year grew by 20.4% t $169.1 millin with strng ttal and LFL sales in bth Australia and New Zealand. Peter Alexander pened 11 new stres during the year, including a flagship stre in Queen Street, Auckland and its first airprt stre in Brisbane. Management is reviewing the ptential fr further airprt lcatins fllwing the success f the Brisbane airprt stre. During 1H17, Peter Alexander will pen three new stres and upgrade and refurbish a further fur existing stres. Management expects t pen between five and seven new stres in each f calendar years 2017, 2018 and Management als plans t upgrade, refurbish r upsize between three and five existing stres per year ver the same time hrizn. Page 3 f 5

4 Fr persnal use nly Online strategy delivering Premier Retail s nline sales cntinue t significantly utperfrm industry grwth, with ttal sales up 39.6% n last year. Online is a prfitable channel fr Premier with EBIT margin significantly higher than the grup average. Premier will cntinue t invest in further enhancing its nline capabilities, custmer ffering and custmer engagement in rder t reach $100 millin in annual nline sales by PROGRESS AGAINST CORE TRANSFORMATION INITIATIVES Grss margin strategies delivering Premier Retail s grss margin fr the year was 63.9%, up 78bps n last year despite a weaker Australian dllar and the warmest autumn n recrd thrugh the effective implementatin f grss margin strategies: lng range freign currency hedging plicies (in all markets) allwing fr lng term merchandising planning; direct surcing initiatives cntinuing t deliver benefits frm new and existing suppliers; surcing frm new gegraphies; investing in better merchants delivering better prduct; a fcus n disciplined executin f markdwn management; and significant grwth frm the higher margin brands Smiggle and Peter Alexander. Premier Retail is fully hedged fr all Australia, New Zealand and United Kingdm ffshre purchases fr the balance f FY17 and 1H18. Premier Retail's inventry psitin was clean at year end. Rejuvenatin f cre apparel brands Targeted investment in refurbishments and new stre frmats cntinued acrss the stre netwrk and is delivering strng results. Cre brands capital investments during FY16: 18 new stres; 33 stre relcatins and refurbishments; and 28 stre refurbishments in existing lcatins. Benefits f new surcing initiatives cntinue t imprve intake margins. Cst efficiency and supply chain Csts cntinued t be well cntrlled during the year. Supply chain cntinued t perate smthly during the year frm bth the Australian wned distributin centre and the New Zealand leased facility. Successful third party lgistics partnerships are supprting the grwth f the grup s peratins in the UK, Singapre, Malaysia and Hng Kng. Page 4 f 5

5 Fr persnal use nly PREMIER INVESTMENTS FINANCIAL STRENGTH At the end f the year, Premier s balance sheet reflected free cash n hand f $283.2 millin plus its equity accunted investment in Breville Grup Limited at $213.4 millin. The market value f Premier s hlding in Breville Grup Limited was $295.1 millin at 20 September Due t the cntinued strength f Premier s balance sheet and the perfrmance f Premier Retail, the Bard has declared an increased final rdinary dividend f 25 cents per share fully franked (FY15: 21 cps), bringing the full year rdinary dividends t 48 cents per share fully franked (FY15 rdinary: 42 cps). The final rdinary dividend f 25 cents per share will be payable n 18 Nvember The dividend will be 100% franked. Premier cntinues t use its strng balance sheet t fund the expansin f its grwth brands, while still retaining the flexibility t pursue ther pprtunities that may arise in the future. ENDS Fr enquiries: Fr investrs and analysts Mark Middeldrf Premier Investments Tel: Fr media Lauren Thmpsn Mb: Based n Breville Grup Limited share price f $8.25 n 20 September 2016 APPENDIX Overview f Premier s nn IFRS financial infrmatin IFRS financial infrmatin is financial infrmatin that is presented in accrdance with all relevant accunting standards Nn-IFRS financial infrmatin is financial infrmatin that is presented ther than in accrdance with all relevant accunting standards. Fr example: ne-ff items, nn-recurring csts, 53rd week year, like fr like sales, underlying EBIT, underlying NPBT and underlying NPAT Any nn-ifrs financial infrmatin is clearly labelled t differentiate it frm reprted/ifrs financial infrmatin Premier Investments prvides recnciliatins in the ftntes in rder t allw the reader t clearly recncile between the IFRS and nn-ifrs financial infrmatin Premier Investments management believes that the presentatin f additinal nn-ifrs infrmatin in its results presentatins prvides readers f these dcuments with a greater understanding int the way in which management analyses the business as well as meaningful insights int the financial cnditin r Premier s verall perfrmance The Australian Securities and Investments Cmmissin (ASIC) acknwledges the relevance f nn-ifrs financial infrmatin in prviding meaningful insight as lng as it des nt mislead the reader. Page 5 f 5