DIRECTORS’ REPORT Continued CASH FLOW FOR THE 52 WEEKS TO 28 JULY 2018 2018 2017 $m $m EBITDA* 135 183 Working capital movement (4) 4 Operating cash flow (before interest and tax) 131 187 Conversion 97% 102% Tax (13) (28) Interest (9) (10) Operating cash flow 109 149 Capex / acquisitions** (87) (110) Free cash flow before dividends 22 39 Dividends (16) (49) Net cash flow 6 (10) *EBITDA includes implementation costs and individually significant items with the exception of non-cash asset impairments ** Net of landlord contributions OTHER STATISTICS AND FINANCIAL RATIOS 2018 2017 Returnon Total Funds Employed* 5.9%** 8.9% Gearing 15.5%** 9.5% Net Debt/EBITDA* 0.72x 0.58x *Calculated on a rolling 12 months basis **ROFE 4.7% and Gearing 9.0% if goodwill and brand impairment is excluded from calculations SHARES AND DIVIDENDS 2018 2017 Shares on Issue 821.3 million 821.3 million Basic EPS* 4.0 cents 8.3 cents Dividend per share Nil 5.0 cents *Calculated on weighted average number of shares of 821.3 million (FY2017: 821.3 million) and based on NPAT preimplementation costs and individually significant items NON-IFRS FINANCIAL MEASURES The Company’s results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Company discloses certain non-IFRS measures in this Directors’ Report, which can be reconciled to the Financial Statements as follows: Income Statement reconciliation $millions EBIT INTEREST TAX NPAT Statutory reported result (485.8) (9.0) 8.8 (486.0) Add back: implementation costs and individually significant items Restructuring and redundancy costs 9.2 - (2.8) 6.4 Store exit costs and other asset impairments 7.5 - (2.0) 5.5 Impairment of assets 524.5 - (17.9) 506.6 Underlying result 55.4 (9.0) (13.9) 32.5 Myer Annual Report 2018 19