Annual REPORT 2017-2018 402 7.6 Aboriginal and Tonnes less sugar Torres Strait consumed through Islander jobs sugary drinks in communities Outback Stores 85% Committed to Of all team 430 Closing the Gap members employed Tonnes of fresh fruit in stores are and vegetables sold Aboriginal and Torres Strait in communities Islander 2 OUTBACK STORES ANNUAL REPORT 17-18 3 Vision Outback Stores aspires to be the national company of choice by being the most efficient and effective provider of retail services and deliver quality and sustainable retail stores. Mission To make a positive difference in the health, employment and economy of remote Indigenous communities, by providing quality, sustainable retail stores. Nutritional Aim To improve the health of Indigenous people living in remote communities by improving access to a nutritious and affordable food supply. 4 OUTBACK STORES ANNUAL REPORT 17-18 5 Table of contents Letter of Transmittal 9 Chairman’s Report 10 CEO’s Report 12 Health and Nutrition 14 Aboriginal and Torres Strait Islander Employment and Training 22 Aboriginal and Torres Strait Islander Team Members Shine 24 Steve Bradley: A Decade as Chairman 30 Because of Her, We Can! 34 Santa Teresa Excellence Recognised 42 Bakeries Provide Jobs and Freshness 46 Work Health and Safety 48 Store Locations 50 Organisation Structure 52 Outback Stores’ Performance 55 Corporate Governance 57 Other Information 62 Index of Annual Report Requirements 65 Directors Report 69 Directors Declaration 76 Auditors Independence Declaration 77 Independent Auditors Report 78 Statement of Comprehensive Income 80 Statement of Financial Position 81 Statement of Changes in Equity 82 Statement of Cash Flows 83 6 OUTBACK STORES ANNUAL REPORT 17-18 7 Letter of Transmittal 24th of August 2018 Senator the Hon Nigel Scullion The Minister for Indigenous Affairs PO Box 6100 Senate Parliament House Canberra ACT 2600 Dear Minister, In accordance with Section 97 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), I submit the Annual Report of Outback Stores Pty Ltd for the year ended June 2018. Under section 97 of the PGPA Act, the Directors of Outback Stores are responsible for producing an Annual Report that includes a Financial Report, Directors Report and Auditors Report that is required by the Corporations Act 2001, and other additional information or report required by the Minister for Finance orders under the PGPA Act. All reports and Audited Financial Statements contained in this Annual Report were made in accordance with a resolution of Outback Stores Directors on the 23rd of August 2018. Yours Sincerely, Stephen Bradley Chairman, Board of Directors 8 OUTBACK STORES ANNUAL REPORT 17-18 9 Chairman’s Report On behalf of the board, I am The board has a strategic focus on work with to ensure reliable access valuable contributions to the Outback pleased to report on Outback achieving an independent self-funded to affordable and healthy food. In Stores vision. In an often-challenging Stores’ performance for the 2017- Outback Stores that will be able to addition, a further $299,455 was environment, without each individual 2018 financial year. We are a deliver our social outcomes for the spent on capital improvements across contribution to improving social and Commonwealth Government foreseeable future. Our objective is for sixteen stores. commercial outcomes for remote owned organisation with a mandate the underlying operating business to communities, we would not be where to improve the affordability and be financially self-sufficient so that we I would like to thank the senior we are today. l would also like to quality of nutritious food available can fund our core operations, support leadership team led by Michael Borg thank our clients; without the store in remote aboriginal communities. unviable stores and achieve our for their effort and commitment to directors and community’s support We passionately believe that access social outcomes without the need for our vision and mission over the last we would not be able to make such to healthy and affordable food in further ongoing government subsidy. twelve months. This year we have a contribution. With their ongoing remote communities is a key element The most meaningful measure of this achieved some of our best health, support, Outback Stores will continue of closing the gap in the health of objective is comparable cash outflows nutrition, employment and commercial to grow and make a meaningful Aboriginal people. Meaningful change (excluding store loans and custodian outcomes, detailed throughout contribution towards closing the gap in the social outcomes that we seek funding). Continued focus on efficiency this report. These results wouldn’t for the foreseeable future. will require generational change. The has seen noted improvement. Cash be possible without such strong continuous and progressive change outflows totalled $619,689 against leadership. As the business now embarks on a that Outback Stores has achieved our target of $1.5 million. Whilst we new chapter I am confident that the over the last decade gives me great continue to improve year on year in The composition of the board capability and culture within Outback confidence for the future. this area, there is much work to be remained stable this year. I would Stores will continue to drive standards done as we challenge ourselves to like to welcome back Bess Price to the highest they have ever been. I reduce the cash outflow to a point Our goal is to be financially self- as a director. Her experience in wish the team at Outback Stores the where we are at break even. sufficient with a strong focus on politics, education and training, public very best for all future endeavours. reinvesting any surplus funds to administration, the media, community support communities that we work All stores we operate are run on development, interpreting, translating Stephen Bradley with. This year Outback Stores Pty Ltd sound commercial principles. Last year and language teaching brings a unique Chairman made an operating loss of $147,155. twenty- five stores were commercially set of skills and perspective that will A major contributor to this result was viable in their own right and generated be invaluable to the board. the low returns available to our cash an operating profit. Unfortunately, not investments caused by the low interest all stores are commercially viable due This year is my eleventh and final rate environment. We are currently to small populations, extremely remote year as Chairman and I will be leaving pursuing an alternative investment locations or a combination of both. the Board in August 2018. Over strategy to improve our overall return Despite this, we operate these stores this time, I have been privileged to with appropriate mitigation of risk. as efficiently as possible, enabling us work alongside many inspirational We finished the year with thirty-eight to keep the additional funds required and dedicated people who are remote community stores under to a minimum. In total, we provided committed to improving outcomes for management with total sales of $80.2 $1.76 million of funds to support Aboriginal and Torres Strait Islander million. Twenty-four stores in the thirteen unviable stores. This figure Australians. I would like to thank past Northern Territory, eleven in Western equates to a cost of $392 for each and present board members, CEO’s Australia and three in South Australia. person living in the communities we and team members who have made 10 OUTBACK STORES ANNUAL REPORT 17-18 11 CEO’s Report Outback Stores’ commitment to This year 85% of all staff employed look forward to a prosperous working improved outcomes for people in making a positive difference to the in community stores that we manage relationship with both entities. remote communities. I look forward to health, employment and economy of on behalf of communities are working with you well into the future. remote Aboriginal and Torres Strait Aboriginal and Torres Strait Islander. This year saw Richard Mead join the Islander communities is demonstrated Additionally, hours worked in stores senior leadership team as Group Finally, I would acknowledge Stephen by providing the highest quality retail by Aboriginal and Torres Strait Merchandise and IT Manager. Bradley for his contribution and stores in our market sector. Over Islander team members increased Richard is a great addition to the leadership as Chairman for the last the journey we have maintained an by 20% on the previous year. Both team, bringing with him thirty years’ eleven years. Simply put, without unwavering commitment to supporting are significant results indicative of a experience in the retail industry Steve, Outback Stores would not remote communities by guaranteeing cultural shift where we continue to across supermarkets, liquor and in the be where it is today. His impact access and improving affordability make a concerted effort in challenging independent wholesale sector. over a decade has helped forge of food supply. We work closely with ourselves to perpetually improve strong foundations, deliver improved many suppliers and service providers Aboriginal and Torres Strait Islander Moving into the next year we remain outcomes for Aboriginal and Torres to achieve the best possible outcomes employment outcomes. focussed on delivering improved Strait Islander Australians and ensured for the communities we serve. health, nutrition and employment the business is in a sustainable We have continued our strong focus outcomes. We will also be further position to keep doing so well Our health and nutrition team continue on working towards financial self- investigating how we improve financial into the future. I wish the outgoing to support communities to deliver sustainability. This year we have outcomes in particular; differentiation chairman all the very best for his future positive health outcomes. This year we further challenged ourselves to of how we invest capital, improving endeavours.