Premier Investments Limited 2021 Half Year Results Overview 24 March 2021 X0 Agenda Premier Investments Limited 1 1H21 overview 8 Industry restructure accelerating Premier Investments Limited COVID-19 impacts on 1H21 2 1H21 consolidated financial results 9 Smiggle – strong global brand Premier Retail – delivers record result 3 10 flourishing where children are back to school Premier Retail 1H21 EBIT and record gross 4 margins 11 5 Peter Alexander – delivers record growth Apparel Brands – well positioned for future 6 growth 13 7 Online – contributes 20% of group sales X1 X2 1 Premier Investments Limited 1H21 overview Group result1, 2 – Statutory net profit after tax of $188.2 million, up 88.9% on 1H20 – Record Premier Retail sales of $784.6 million, up 7.2% on 1H20 – Global LFL sales up 18.2% on 1H20 on a constant currency basis – Record Peter Alexander sales of $207.7 million, up $62.9 million or 43.4% on previous record 1H20 – Record Online sales of $156.7 million, up $59.5 million or 61.3% on previous record 1H20 and contributing 20.0% of Premier Retail’s total 1H21 sales – Apparel Brands 1H21 LFL sales growth of 18.5% – Record Premier Retail Gross Margin up 286 bps to 65.4% – Premier Retail EBIT (Pre AASB 16) of $237.8 million, up 88.5% on 1H20 – Premier Retail EBIT % to sales (Pre AASB 16) of 30.3%, up 1,308 bps on 1H20 Note: 1. The Statutory results for 1H21 and 1H20 reflect the adoption of the new Accounting Standard AASB 16 Leases. To allow for historical comparison, 1H21 and 1H20 results disclosed in this presentation unless otherwise stated are pre adoption of AASB 16 (“Pre AASB 16”) and therefore exclude the impact of AASB16. Refer Appendix B for reconciliations of Statutory and Pre AASB 16 results. 2. 1H21 includes a 27th week which contributed $21.5 million in sales and $9.1 million in EBIT. All 1H21 sales, margin and profit information contained in this release (except LFL sales, or where otherwise stated) are for the period of 27 weeks ended 30 January 2021 (1H20: 26 weeks ended 25 January 2020). 3 1 Premier Investments Limited 1H21 overview Strong balance sheet – Strong balance sheet at end of 1H21 shows: – Investment in associate (Breville Group Limited) of $268.1 million. The market value of this investment is $1.0 billion (as at 30 January 2021) – Cash on hand of $497.2 million (up $297.5 million on 1H20) – Investment in strategically-owned properties at St Kilda Road Melbourne (Premier Retail’s global head office) and Premier Retail’s Australian Distribution Centre of $70.1 million, reflected at historical cost less accumulated depreciation, not their current market value – Investment in Myer Holdings Limited of $27.4 million – Franking credit pool of $224.9 million – The Premier Board has approved an Interim 1H21 dividend of 34 cents per share fully franked, in line with 1H20. The Interim dividend will be payable on 29 July 2021 with a record date of 24 June 2021. 4 2 Premier Investments Limited summarised consolidated income statement $'M 1H21 1H20 Premier Retail EBIT1 237.8 126.1 Premier Investments income from Associate (BRG) 16.9 13.9 Premier Investments other revenue (Interest, Rent & Other) 2.5 3.4 Premier Investments expenses (ex Premier Retail) (4.6) (3.4) Finance costs1 (2.6) (3.1) AASB16 Impact on net profit before tax1 3.0 (0.1) Net profit before tax 253.0 136.8 One-off gain from the equity accounting impact of BRG share issue 9.1 - Reported net profit before tax 262.1 136.8 Income tax expense (73.9) (37.2) Net profit after tax 188.2 99.6 Note: 1. The Statutory results for 1H21 and 1H20 reflect the adoption of the new Accounting Standard AASB 16 Leases. To allow for historical comparison, 1H21 and 1H20 results disclosed in this presentation unless otherwise stated are pre adoption of AASB 16 (“Pre AASB 16”) and therefore exclude the impact of AASB16. Refer Appendix B for reconciliations of Statutory and Pre AASB 16 results 5 2 Premier Investments Limited summarised consolidated balance sheet Balance Sheet $'M 30 Jan 2021 25 Jul 2020 Assets Cash and cash equivalents 497.2 448.8 Inventories 180.2 156.6 Property, plant and equipment 148.5 155.1 Right of Use assets 213.1 231.8 Other assets 22.5 40.9 Deferred tax assets 62.9 66.9 Listed equity investment at fair value 27.4 18.1 Investment in associate 268.1 257.4 Intangible assets 827.0 826.9 Total assets 2,246.9 2,202.5 Liabilities Interest bearing liabilities 146.7 146.7 Lease liabilities 268.4 303.9 Trade payables and other liabilities 183.1 169.9 Provisions 56.1 48.9 Income tax payable 54.1 66.2 Interim dividend payable - 54.0 Deferred tax liabilities 66.6 65.4 Total liabilities 775.0 855.0 Total equity 1,471.9 1,347.5 6 7 3 Premier Retail – Delivers record result – Premier Retail EBIT (Pre AASB 16) of $237.8 million, up 88.5% on 1H201 – Premier Retail EBIT % to sales (Pre AASB 16) of 30.3%, up 1,308 bps on 1H201 – Premier Retail Profit before tax (Pre AASB 16) of $236.7 million, up 90.1% on 1H201 – Premier Retail sales of $784.6 million, up 7.2% on 1H20 – Global LFL sales up 18.2% on 1H20 on a constant currency basis – Record Peter Alexander sales of $207.7 million, up $62.9 million or 43.4% on previous record 1H20 – Record Online sales of $156.7 million, up $59.5 million or 61.3% on previous record 1H20 and contributing 20.0% of Premier Retail’s total 1H21 sales – Apparel Brands 1H21 LFL sales growth of 18.5% – Record Premier Retail Gross Margin up 286 bps to 65.4% – In the midst of a global pandemic, in mid-2020 Premier Retail made the strategic decision to significantly invest in inventory and build the supply chain to be in stock for the critical summer trading period including Black Friday, Christmas and January sales period. – This strategy has and continues to provide the foundation for the significant sales and margin momentum currently being experienced with Global LFL Sales up 32.1% and Gross Margin up 379 bps after the first 7 weeks of 2H21 Note: 1. The Statutory results for 1H21 and 1H20 reflect the adoption of the new Accounting Standard AASB 16 Leases. To allow for historical comparison, 1H21 and 1H20 results disclosed in this presentation unless otherwise stated are pre adoption of AASB 16 (“Pre AASB 16”) and therefore exclude the impact of AASB16. Refer Appendix B for reconciliations of Statutory and Pre AASB 16 results 8 3 Premier Retail performance Pre AASB16 2 Pre AASB16 2 27 weeks 26 weeks 1H21 Rent Expense rebased to 12.7% $'000 to 30 Jan 2021 to 25 Jan 2020 Var LY of Sales Sales 784,614 732,074 +7.2% As a result of the accelerating retail LFL sales (constant currency) 18.2% 4.3% industry restructure underway, during Gross Profit 513,120 457,834 +12.1% 1H21 Premier Retail was able to reach Gross margin (%) 65.4% 62.5% 286bps mutual agreement with key landlords that has appropriately rebased the Group’s Employee Expenses (158,161) (163,231) -3.1% first half normalised rent at 12.7% of % sales 20.2% 22.3% -214bps sales on a 26 week period (down 318 bps Rent (71,022) (116,400) -39.0% on 1H20) recognising the long term % sales 9.1% 15.9% -685bps financial strength of Premier Investments Advertising & Direct Marketing (9,915) (8,928) +11.1% and its seven iconic brands. % sales 1.3% 1.2% 4bps In addition to the benefits of rebasing the Depreciation & Amortisation (11,361) (16,049) -29.2% rent, during 1H21 Premier Retail also reached mutual agreement with key % sales 1.4% 2.2% -74bps landlords on $13.2 million worth of Impairment - (5,025) -100.0% COVID-19 abatements and $9.2 million in % sales 0.0% 0.7% -69bps benefits in relation to stores previously in Other Cost of Doing Business (26,392) (22,634) +16.6% hold over. % sales 3.1% 27bps 3.4% The rent expense in 1H21 was further Other income 1,526 559 decreased by $3.7 million due to the UK EBIT 237,795 126,126 +88.5% government providing temporary relief 30.3% 17.2% 1,308bps from business rates compared to 1H20. The UK government recently announced Borrowing Costs (1,128) (1,625) -30.6% the current relief would continue until PBT 236,667 124,501 +90.1% June 2021. Post June 2021, further relief 30.2% 17.0% 1,316bps to March 2022 continues at a lower level Note: 1. 1H21 result includes 27th week which contributed $21.5 million in sales and $9.1 million in EBIT 2. The Statutory results for 1H21 and 1H20 reflect the adoption of the new Accounting Standard AASB 16 Leases. To allow for historical comparison, 1H21 and 1H20 results disclosed in this presentation unless otherwise stated are pre adoption of AASB 16 (“Pre AASB 16”) and therefore exclude the impact of AASB16. Refer Appendix B for reconciliations of Statutory and Pre AASB 16 results 9 4 Premier Retail – Record Gross Margin up 286 bps • Premier Retail has seven iconic brands each with a strong, distinctive and competitive market position • Record Premier Retail Gross Margin up 286 bps to 65.4% in 1H21 Record Gross Profit Margins • In the midst of a global pandemic and despite the significant 66.0% uncertainty at the time, in mid-2020 Premier Retail made the 65.4% critical strategic decision to invest in increased inventory and build the supply chain to be in stock for the critical summer 65.0% trading period including Black Friday, Christmas and January sales period 64.0% • Long term gross margin strategies continue to deliver 63.0% • Better merchants developing better products 62.5% • High quality inventory delivering more full-priced sales 62.0% with less promotional activity • Long term foreign currency hedging strategies 61.0% allowing for long term merchandise planning 1H20 1H21 • Long term relationships with key