DIRECTORS’ REPORT Continued INCOME STATEMENT FOR THE 52 WEEKS TO 28 JULY 2018 2018 2017 Change vs. LY Change vs. LY $m $m ($m) (%) Total Sales 3,100.6 3,201.9 (101.3) (3.2%) Concessions 654.0 701.7 (47.7) (6.8%) Myer Exclusive Brands 517.2 546.8 (29.6) (5.4%) National Brands and other 1,929.4 1,953.4 (24.0) (1.2%) Operating Gross Profit 1,184.4 1,220.4 (36.0) (2.9%) Operating Gross Profit margin 38.20% 38.12% +8bps Cost of Doing Business (1,035.0) (1,019.8) 15.2 1.5% Cost of Doing Business/Sales 33.38% 31.85% +153bps Share of Associates - (2.5) (2.5) EBITDA* 149.4 198.1 (48.7) (24.6%) EBITDA margin* 4.82% 6.19% -137bps Depreciation and amortisation (94.0) (91.5) 2.5 2.7% EBIT* 55.4 106.6 (51.2) (48.0%) EBIT margin* 1.79% 3.33% -154bps Net Finance Costs (9.0) (10.8) (1.8) (16.7%) Net Profit Before Tax* 46.4 95.8 (49.4) (51.6%) Tax* (13.9) (27.9) (14.0) (50.2%) Net Profit After Tax (NPAT) (pre implementation costs 32.5 67.9 (35.4) (52.2%) and individually significant items) Implementation costs and individually significant items (518.5) (56.0) (462.5) (post-tax) NPAT (postimplementation costs and individually (486.0) 11.9 (497.9) significant items) * Excluding implementation costs and individually significant items BALANCE SHEET AS AT 28 JULY 2018 July 2018 July 2017 $m $m Inventory 367 372 Other Assets 35 30 Less Creditors (381) (380) Less Other Liabilities (239) (282) Property 23 24 Fixed Assets 401 436 Intangibles 485 986 Total Funds Employed 691 1,186 Comprising of: Debt (149) (143) Less Cash 42 30 Net (Debt) / Cash (107) (113) Equity 584 1,073 18 Myer Annual Report 2018