Premier Investments Limited Annual Report 2017

FY2017 Annual Report · Premier Investments Limited
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Annual Report 2017

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DIRECTORS 

Mr. Solomon Lew (Chairman) 

Dr. David M. Crean (Deputy Chairman)

Mr. Timothy Antonie (Lead Independent Director)

AUDITOR 

Ernst & Young 

8 Exhibition Street 

Melbourne Victoria 3000 

Corporate Directory

A.C.N. 006 727 966

Mr. Lindsay E. Fox 

Ms. Sally Herman 

Mr. Henry D. Lanzer 

Mr. Terrence L. McCartney  

Mr. Mark McInnes 

Mr. Michael R.I. McLeod 

Dr. Gary H. Weiss 

COMPANY SECRETARY 

Mr. Kim Davis 

REGISTERED OFFICE 

Level 53 

101 Collins Street 

Melbourne Victoria 3000 

Telephone (03) 9650 6500 

Facsimile (03) 9654 6665 

www.premierinvestments.com.au 

WEBSITE 

EMAIL  

info@premierinvestments.com.au 

SHARE REGISTER AND SHAREHOLDER 

Computershare Investor Services Pty 

ENQUIRIES 

Limited 

Yarra Falls 

452 Johnston Street 

Abbotsford Victoria 3067 

Telephone (03) 9415 5000 

LAWYERS 

Arnold Bloch Leibler

Level 21 

333 Collins Street 

Melbourne Victoria 3000 

Telephone (03) 9229 9999 

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Annual Report 2017   98

Solomon Lew
Chairman

Mark McInnes 
CEO Premier Retail

Chairman’s Report

The Directors of Premier Investments Limited (“Premier”) are pleased to 
submit to shareholders the Annual Report for the 52 weeks ended 29 July 
2017 (FY17).  Your company performed strongly in what continues to be a 
challenging environment for Australian retailers.  With consumer sentiment 
indicators lagging and cost of living pressures rising, retailers must provide 
the wanted product to their customers to remain relevant and proﬁtable.

In this context, I am proud of the way Premier has responded 
to economic and competitive pressures and I commend the 
management team for their efforts. In a year in which several 
retailers went out of business, your company has delivered 
growth at both the top and bottom line by driving the 
expansion of our unique brands, investing in online platforms 
and reﬁning the value proposition for our core bands in a 
competitive apparel market.

GROUP RESULT

During FY17, Premier delivered underlying net proﬁt before tax 
of $146.8 million, up 5.8%1 on the prior year and statutory 
reported net proﬁt after tax of $105.1 million. 

At the group level, Premier’s result reﬂects: the contribution 
from Premier Retail (or The Just Group) which includes its 
seven retail brands; earnings from Premier’s 27.5% stake in 
electrical consumer products manufacturer Breville Group 
Limited (“Breville”); and interest earned on Premier’s cash 
balance. 

I also note that, at the group level, statutory results are not 
comparable year on year due to a number of factors including: 
FY16 being a 53 week year; one off costs including the 
purchase of a new ofﬁce building at St Kilda Road, Melbourne; 
and the acquisition of a strategic investment in Myer Holdings 
Limited.

OPERATING RESULT

Premier Retail delivered a solid operating result, with sales for 
the year up 5.7% on prior year1 to $1.1 billion and underlying 
earnings before interest and taxation (“EBIT”) of 
$136.0 million.2

The resilience of Premier Retail is the direct result of key 
investment decisions made by your company over the past six 
years following the major strategic review undertaken in 2011. 
These decisions have included: priority allocation of capital 
and resources to our unique growth brands; development of a 
world class online platform supported by a best in-market 
logistics capability; and rejuvenation of our core brands.

INVESTING IN GROWTH

Smiggle

Over the past ten years, Smiggle annual sales have grown from 
$19 million to $239 million. In FY17 alone sales were up 28.8% 
on FY161. The growth for the year was achieved both by strong 
like for like growth in all markets and the opening of 58 new 
stores. Smiggle is now truly an international retailer, generating 
the majority of its sales outside of Australia. At the end of the 
ﬁnancial year, Smiggle had 297 stores trading across Australia, 
New Zealand, Singapore, England, Scotland, Wales, Northern 
Ireland, Republic of Ireland, Hong Kong and Malaysia. 

The brand performance across all geographies has given 
management conﬁdence to conﬁrm the opening of 100-120 
new stores in existing markets over the next two years.

The brand will also further grow its European markets by entry 
into Continental Europe by opening stores in the Netherlands 
and Belgium during calendar year 2018. 

Smiggle is aiming to exceed $400 million in revenues by FY20.

As I have said previously, your Board and Management Team 
will only pursue investments that present the best long-term 
value creation opportunities for shareholders.

Peter Alexander

Total sales at Peter Alexander grew by 14.0% in FY17 to 
$191 million1, with strong total and like-for-like sales. During 
the year, Peter Alexander opened six new standalone stores 
and ﬁve new Myer concessions. The brand also beneﬁted from 
refurbishments and expansions at Chadstone, Paciﬁc Fair, 
Spencer Street and Warringah.

As a result of the continuing strong performance of Peter 
Alexander, your Board has committed to further investment in 
Peter Alexander online, new store openings, concessions and 
category expansion with a view to generating sales in excess 
of $250 million by 2020. The new three year growth strategy 
has been built on the previous Peter Alexander plan that saw 
sales grow from $47 million per year to $191 million per year 
over the last ten years. 

1 On a comparable 52 week basis. The reported Group result in 
FY16 represented a 53 week period. The reporting period for 
FY17 represents a 52 week period.

2 The reported Group result in FY16 represented a 53 week 

period, whereas the reporting period for FY17 represents a 52 
week period. Refer to page 9 of the Directors’ Report for a 
deﬁnition and reconciliation of Premier Retail Underlying EBIT.

Annual Report 2017   1

Chairman’s Report continued

Online

FINANCIAL STRENGTH

During FY17, Premier Retail continued to invest in its online 
capabilities, delivering sales for the year of $68.1 million. This 
represents year on year growth of 44.3%1, signiﬁcantly 
outperforming the market. The online business has grown 
from 1.1% of the respective market’s sales in FY11 to 7.1% in 
FY17. Growth in our highly proﬁtable online sales channel 
remains a key focus for the group.

DELIVERING PROFITABILITY, SUSTAINABILITY 
AND EFFICIENCY

Premier Retail made targeted investments in refurbishments 
and new store formats during the year. Over the past ﬁve 
years, Premier Retail has opened 234 new proﬁtable Smiggle 
and Peter Alexander stores (143 of these outside of Australia) 
but Premier Retail has also closed 86 unproﬁtable stores over 
that time frame including eight during FY17. As consumers 
continue to shift their spending from physical stores to online, 
Premier Retail will continue to focus on store proﬁtability to 
drive appropriate investment and shareholder returns. Where 
landlords do not continue to invest in overall shopping 
experiences and/or adjust their rent expectations in line with 
the performance of their own centres and the major shift in 
consumer behavior, further store closures may be necessary.

This year’s strong result was achieved notwithstanding 
signiﬁcant external events that impacted trading. In addition 
to the macroeconomic and competitive pressures I’ve 
mentioned, I note that in FY17 Premier Retail also experienced 
signiﬁcant store closures across its portfolio for reasons 
outside of our control including: the signiﬁcant redevelopment 
of Chadstone shopping centre leading to temporary store 
closures; a partial building collapse in Hobart; and the 
devastating impacts of the Kaikoura earthquake in New 
Zealand.

I mention these factors only to underscore the resilience of 
your business – and the team that runs your business day in 
and day out. I would like to acknowledge Mark McInnes, the 
senior leadership team and our over 8,000 dedicated 
employees who now span nine countries across the globe. 
Notwithstanding weak consumer conﬁdence and signiﬁcant 
operational hurdles, this team continues to deliver results for 
shareholders across a well-diversiﬁed portfolio.

At the end of the year, Premier’s balance sheet reﬂected free 
cash on hand of $170.6 million, an investment in Myer 
Holdings Limited valued at $67.7 million, and its equity 
accounted investment in Breville Group Limited at $216.9 
million. The market value of Premier’s holding in Breville was 
$362.3 million at 29 July 2017.

Due to the continued strength of Premier’s balance sheet and 
the performance of Premier Retail, the Board has declared an 
increased ﬁnal ordinary dividend of 27 cents per share fully 
franked, up 8.0% (FY16: 25 cents per share), bringing the full 
year ordinary dividend to 53 cents per share fully franked up 
10.4% (FY16: 48 cents per share).  

LOOKING FORWARD

Premier’s ability to deliver is a testament to:

• Our consistent strategy (both consistently delivered and 

consistently reviewed);

• Our commitment to invest in growth brands (Smiggle and 

Peter Alexander) and channels (online); and

• Our relentless pursuit of proﬁtability across our portfolio.

We will continue this focus into 2018 and beyond.

Of course, our growth would not be possible without the 
strong support of our customers who continue to engage 
with our unique brands and designs. We are very grateful of 
this support and conscious of doing everything in our power 
to maintain it when it comes to service, quality, fashion, 
availability and price.

We are also grateful for the continued support and investment 
of our shareholders. I look forward to addressing you in 
person at our 2017 Annual General Meeting (AGM) on 1 
December 2017 to be held at Just Building, 658 Church Street, 
Richmond, Victoria. 

Solomon Lew
Chairman and Non-Executive Director

2   Premier Investments Limited

The Directors

Solomon Lew
Chairman and 
Non-Executive Director

Henry D. Lanzer AM
B. COM., LLB (Melb) 
Non-Executive Director

David M. Crean
Deputy Chairman  
and Non-Executive Director

Terrence McCartney 
Non-Executive Director

Timothy Antonie
Non-Executive Director

Mark McInnes
Executive Director

Lindsay E. Fox AC
Non-Executive Director

Michael R.I. McLeod
Non-Executive Director

Sally Herman
Non-Executive Director

Gary H. Weiss LLM, J.S.D.
Non-Executive Director

Annual Report 2017   3

Strategic Review Premier Retail

Management continued the rigorous implementation of the six key initiatives outlined in the 2011 Strategic Review.

Focus Area

Status

Rejuvenate and 
reinvigorate all ﬁve 
core apparel brands.

Organisation-wide cost 
efﬁciency program.

Two phase gross 
margin expansion 
program.

Expand and grow the
internet business.

Grow Peter Alexander
signiﬁcantly.

11

22

33

44

55

66

Grow Smiggle 
signiﬁcantly.

Just Jeans and Jay Jays delivered solid results in very competitive 
markets in FY17. Both Portmans and Jacqui E have been reinvigorated 
through the executive appointments of new brand leaders in 2H17: 
Linda Levy (Portmans) and Nicole Naccarella (Jacqui E). The core 
brands successfully navigated a difﬁcult trading environment to ﬁnish 
the year with a clean inventory position.

Costs of doing business decreased 101 bps as a percentage of sales 
to 50.8% in FY17, whilst strategic investment continues in growth 
initiatives, including online, Peter Alexander and Smiggle international 
expansion. Over the past ﬁve years Premier Retail has opened 234 
new proﬁtable Smiggle and Peter Alexander stores (143 of these 
outside of Australia) but Premier Retail has also closed 86 unproﬁtable 
stores over that time, including 8 during FY17. As consumers 
continue to shift their spending from physical stores to online, Premier 
Retail will continue to focus on store costs and proﬁtability to drive 
appropriate investment and shareholder returns.

Premier Retail’s gross margin of 63.1% for the year in a 
highly competitive market was delivered through the effective 
implementation of key gross margin strategies. Direct sourcing 
initiatives continue to deliver beneﬁts from new suppliers and 
countries. Ongoing focus on markdown management is expected to 
support margin going forward and has left the company with a clean 
inventory position at year end. 

Online sales of $68.1 million were up 44.3% on FY16 – well ahead of 
market growth. Investment continues in technology, people and new 
marketing initiatives to deliver a world class platform and customer 
experience. Online channel continues to deliver signiﬁcantly higher 
EBIT margin than the Group average. Online sales now expected to 
exceed the original target of $100 million sooner than 2020.

Peter Alexander sales were up 14.0% to $190.9 million in FY17, 
with strong total and LFL sales growth including the opening of 11 
new stores during the year. Peter Alexander growth strategy has 
been announced that will see the brand planning to deliver annual 
sales in excess of $250 million by FY20. This 3 year growth strategy 
has been built up on the previous Peter Alexander platform that saw 
annual sales grow from $47.0 million to $190.9 million over the last 
ten years. After celebrating 30 years of Peter Alexander Sleepwear 
in FY17, the brand remains an established destination during key 
gift giving times which remains a focus alongside delivering unique 
customer experiences every day in store and online.

Another record year for Smiggle, with global sales of $238.9 million 
up 28.8% (+80% over two years) becoming the highest turnover 
brand in Premier Retail. The Smiggle global store expansion plan 
continues to be successfully executed, with 18 new stores opened 
across Asia and 40 new stores opened in Europe, including the 
brand’s ﬁrst two stores in the Republic of Ireland. Smiggle has 
announced plans to open stores in Continental Europe in 2018 and 
plans to achieve global sales in excess of $400 million by FY20. 

Note: FY17 Sales growth percentages are reported on comparable 52 weeks of FY16

4   Premier Investments Limited

Brand Performance Premier Retail

Smiggle, achieved exceptional sales growth of 28.8% in FY17, with more than 60% of global revenue generated 
outside Australia. John Cheston, Managing Director Smiggle, continues to lead a strong and focused management 
team growing a truly unique global brand. The Smiggle global store expansion plan continues to be successfully 
executed, with 18 new stores opened across Asia and 40 new stores opened in Europe, including the brand’s ﬁrst 
two stores in the Republic of Ireland. In August 2017, the brand opened store number 300 and is targeting to 
open a further 100-120 stores in existing markets over the next two years. Smiggle has announced plans to open 
stores in Continental Europe in 2018 and plans to achieve global sales in excess of $400 million by FY20.

Peter Alexander delivered outstanding growth of 14.0% in FY17. After over delivering on the previous three 
year strategic plan, Judy Coomber, Managing Director Peter Alexander and Peter Alexander, Creative Director 
have announced a new 3 year growth strategy that plans to see the brand deliver annual sales in excess of $250 
million by FY20. This 3 year growth strategy has been built up on previous Peter Alexander platform that saw 
annual sales grow from $47.0 million to $190.9 million over the last ten years.

Dotti, led by David Bull, delivered a credible result in the highly competitive young fast fashion category, opening 3 new 
stores in FY17. The result was impacted by several external factors including temporary store closures, a widely acknowledged 
cool start to summer and low consumer conﬁdence levels, particularly in Q4. Dotti’s successful implementation of a new 
sourcing channel continues to enhance gross margins. Dotti online continues to go from strength to strength at a higher 
margin than its retail store chain and continues to be an area of investment and focus for the group.

Portmans, under the new leadership of Linda Levy (appointed April 2017) is well progressed on a turnaround 
in performance after a challenging FY17 result in a highly competitive apparel market. FY17 was impacted by 
several external factors including temporary store closures, a widely acknowledged cool start to summer and low 
consumer conﬁdence levels, particularly in Q4. Pleasingly, Portmans has returned to positive like-for-like sales 
growth in the seven weeks since mid-July giving the brand renewed momentum for FY18. 

Jacqui E under the new leadership of Nicole Naccarella (appointed June 2017) is well progressed on a turnaround 
in performance after a challenging FY17 result in a highly competitive apparel market. FY17 was impacted by 
several external factors including temporary store closures, a widely acknowledged cool start to summer and low 
consumer conﬁdence levels, particularly in Q4. Jacqui E announced Rachel Hunter as its new brand ambassador in 
July 2017 and is expecting to return to positive like-for-like sales growth in the second quarter of FY18. 

Just Jeans, under Matthew McCormack’s leadership, delivered sales growth of 1.5% in a highly 
competitive market in FY17. The year was impacted by several external factors including temporary 
store closures, a widely acknowledged cool start to summer and low consumer conﬁdence levels, 
particularly in Q4. Like-for-like sales were stronger than overall sales as 3 stores were closed in FY17 
as part of the ongoing program to close unproﬁtable stores across the group. Ash Hart was launched 
as the new brand ambassador in August 2015, and together with the Stenmark twins continues to 
deliver a strong brand campaign.

Jay Jays, under Linda Whitehead’s leadership, further consolidated its market position in FY17 in 
a highly competitive market. Ongoing focus on driving an increase in full price sales together with 
sourcing initiatives has delivered a seventh consecutive year of gross margin growth. FY17 was 
impacted by several external factors including temporary store closures, a widely acknowledged 
cool start to summer and low consumer conﬁdence levels, particularly in Q4. Like-for-like sales were 
stronger than overall sales as 3 stores were closed in FY17 as part of the ongoing program to close 
unproﬁtable stores across the group.

Note: FY17 Sales growth percentages are reported on comparable 52 weeks of FY16

Annual Report 2017   5

Internet Performance Premier Retail

 100

 90

 80

 70

 60

 50

 40

 30

 20

 10

 0

7.1%

5.2%

68.1 

4.1%

34.4 

47.2 

3.3%

24.6 

2.6%

18.9 

1.9%

13.8 

1.1%

8.3 

FY11

FY12

FY13

FY14

FY15

FY16

FY17

Online Sales ($'M)

Online sales as % of the sales in countries & brands with a transactional website

8%

7%

6%

5%

4%

3%

2%

1%

0%

• Online sales of $68.1 million up 44.3% on FY16 – well ahead of market growth of 0.7% for the 12 months 

ended July 2017

• Online business has grown from 1.1% of the respective markets’ sales in FY11 to 7.1% in FY17

• Investment continues in technology, people and new marketing initiatives to deliver a world class platform and 

customer experience

• 2013 investment in centralised and speciﬁcally customised Australian Distribution Centre servicing 100% order 

fulﬁlment of 100% of Premier Retail products in Australia

• Online channel continues to deliver signiﬁcantly higher EBIT margin than the Group average

• All global sites continuing to deliver strong growth with all brands outperforming the market

• Online sales now expected to exceed the original target of $100 million sooner than 2020

Note: NAB Online Retail Sales Index – July 2017, published 12 September 2017, reported Australian online retail sales in the 

fashion category grew by 0.7% in the 12 months to July 2017

Note: FY17 Sales growth percentages are reported on comparable 52 weeks of FY16

6   Premier Investments Limited

Smiggle International Growth

Another record year for Smiggle with strong LFL sales recorded in all countries

Dundrum, UK

• More than 60% of total global revenue was generated outside Australia in FY17

• 58 new stores opened in FY17 across Asia and Europe, including the brand’s ﬁrst two stores in the Republic of Ireland

• Sales have grown from $19 million in FY08 to $239 million in FY17

• Through investment in technology, people and marketing, online sales continue to grow well above expectations

• Smiggle plans to open a further 100 – 120 new stores in existing markets over the next two years

• Smiggle plans to open stores in Continental Europe in 2018

• Smiggle has announced growth strategy which plans to achieve global sales in excess of $400 million by FY20

• John Cheston (Managing Director: Smiggle) continues to lead a strong and focused management team and a truly 

unique global brand

Olympian City, Hong Kong

Annual Report 2017   7

Peter Alexander Growth

Sales for FY17 were up 14.0% to $190.9 million

• 11 new stores opened

• 109 stores operating at year end

• 8 new stores conﬁrmed to open in 1H18

Premier Retail has announced Peter Alexander’s 2020 growth strategy that plans to deliver sales in excess of $250 
million by FY20. This 3 year growth strategy has been built up on previous Peter Alexander platform that saw annual 
sales grow from $47.0 million to $190.9 million over the last ten years.

Peter Alexander’s 2020 growth plan includes:

• Targeting 40 new stores over next three years

•• 12 existing stores identiﬁed to be upsized or refurbished by 2020

•• Continued investment and growth from online

•• Extension of Peter Alexander brand into the Bath & Body category, and

•• Signiﬁcant expansion of Peter Alexander’s childrenswear and P.A. Plus Size ranges

Chadstone, Australia

Note: FY17 Sales growth percentages are reported on comparable 52 weeks of FY16

8   Premier Investments Limited

Our Commitment To Business Sustainability

Premier acknowledges the importance of respecting our stakeholders, 
including employees, shareholders, customers and suppliers. 

PEOPLE

COMMUNITY

ENVIRONMENT

ETHICAL SOURCING

• Attraction and retention

• Peter Alexander and RSPCA/

• Packaging Stewardship

• Development

• Reward and recognition

• Workplace Safety

PAW JUSTICE

• Smiggle Community 

Partnerships

• Waste and Recycling

• Energy efﬁciency

• Our sourcing models, 
principles & policies

• Our Assurances

• Membership of the Alliance 
for Bangladesh Worker 
Safety

• Our activities in Bangladesh

• Ethical Raw Material 

Procurement

We are committed to a long term goal of delivering 
sustainable value through the effective use of our resources 
and relationships. This goal inﬂuences how we behave and 
impacts everything we do.

OUR COMMITMENT TO OUR PEOPLE

Our goal is for Premier to attract, retain and motivate high 
calibre employees. Our outstanding leadership team have 
developed and nurtured a culture that supports our success. 
We value speed, integrity, energy, and results. We have a ‘can 
do’ culture in which employees see the difference they make. 

TOTAL EMPLOYEES

% FEMALE

8,000+

90%

ATTRACTION AND RETENTION 

At the end of the ﬁnancial year, Premier employed over 8,000 
staff across six countries. By Christmas 2017, Premier will 
employ over 10,000 staff.  

Premier believes that it is important to ensure that all team 
members enjoy a workplace which is free from discrimination; 
we believe our staff perform the best when they can be 
themselves at work and so we strongly support gender, age, 
sexual orientation, disability and cultural diversity at work. 
In FY17, 90% of our total team members are women, who 
held 76% of the positions at management level. We have 
continued our focus on the development and career trajectory 
of our very strong team of female executives. Female leaders 
spearheaded internet and marketing, human resources, and 
four out of our seven brands, to deliver exceptional results. 
We rely on the passion and commitment of our employees to 
achieve the results we do. 

DEVELOPMENT

Premier provides ongoing and regular training opportunities 
throughout the year to develop and support our future 
aspiring leaders. This year we held 388 training and 
development workshops led by our People & Culture 
Managers and Senior Leaders. 

REWARD AND RECOGNITION

We recognise and reward outstanding contributions to our 
group results, both individually and for team performance. 
Our annual awards held in FY17 saw our best performing 
employees celebrated and recognised for their excellent 
performance and contribution to achieving our goals. In 
addition, annually we reward our top stores and staff across 
all seven brands publicly amongst their peers for their great 
leadership and delivery of our results. The top performing 
Regional Managers, Store Managers and Visual Merchandiser 
Managers for each of our brands are rewarded publicly 
amongst their peers for their great leadership and delivery of 
the FY17 results. 

WORKPLACE SAFETY
Premier is committed to the prevention of workplace 
injury and lost time. We want to create a culture where 
all employees feel responsible for all aspects of health 
and safety. ‘Play it Safe’ has become part of our culture. 
Workplace safety is considered in all our business decisions, 
including workplace design and development, supply chain, 
visual merchandising and store planning. We have clear and 
measurable performance targets. However, in the event that 
a work related injury or illness occurs, we are also committed 
to supporting affected employees to return to work and 
continuing their career.

We will continue to develop Premier as a great place  
to work, and a great company in which our team build  
their careers.

Annual Report 2017   9

Our Commitment To The Community

Premier has a long history of philanthropic support, particularly with 
our Peter Alexander and Smiggle brands. 

PETER ALEXANDER AND THE RSPCA 

PETER ALEXANDER AND PAW JUSTICE 

As much as Peter Alexander has become famous for his 
pyjamas, he has also become known for his dogs, and is 
a huge supporter of animal welfare organisations. Peter 
Alexander has worked closely for the last 12 years with  
the RSPCA in Australia, and for the last four years with 
Paw Justice in New Zealand. Our work has included a 
variety of fundraising activities which raise awareness 
for animal charities.

Working with the RSPCA, Peter has raised over $662,000 
contributing to RSPCA shelters, which care for more than 
140,000 animals every year supporting rescue, rehabilitation 
and rehoming unwanted, stray and injured animals. Peter 
has been awarded the status of RSPCA Ambassador in 
recognition of his efforts.

In 2014, aligned with the growing presence of Peter Alexander 
in New Zealand, we partnered with the NZ animal charity Paw 
Justice, and over the last four years have raised over $77,000.

Paw Justice works to stop violent animal abuse; and they 
have been instrumental in focusing the New Zealand public’s 
attention on the need for reform of animal welfare laws 
through youth education and advocacy for pets.

During the year Peter Alexander continued its commitment to 
the prevention of cruelty to animals. The involvement with the 
RSPCA in Australia and Paw Justice in New Zealand continues 
to be the key charity supported by the brand. Each year, Peter 
develops a special product to be made available in store in 
the lead up to Christmas. In 2016, a range of chocolate bars 
featuring Peter Alexander prints were sold with 100% of 
all proceeds donated to these charities. During the year we 
donated $114,000 to the RSPCA and $36,000 to Paw Justice.

Peter has raised over 
$739,000
contributing to RSPCA shelters in 
Australia and Paw Justice in  
New Zealand.

SMIGGLE COMMUNITY PARTNERSHIPS

Premier and our Smiggle brand also support a number of 
children’s charities, organisations and educational programs. 
Plus, countless community fundraising initiatives both locally 
and abroad, for schools, sporting, and educational events. 
During the year we have donated over $75,000 in products.

Peter Alexander

10   Premier Investments Limited

Our Commitment To The Environment

Across our network of stores, reuse is always our ﬁrst option. 
Speciﬁc initiatives relate to plastic hangers and carton 
packaging. In store, plastic hangers are ﬁrst reused, and if 
there is an oversupply our supplier collects and repackages 
hangers for reuse or 100% recycling. Additionally, cartons are 
reused to facilitate movement of stock between our stores. In 
the balance of instances we will utilise our shopping centre 
recycling facilities.

ENERGY EFFICIENCY

Premier recognises the importance of energy efﬁcient, low 
environmental impact lighting systems and since 2012 have 
adhered to new improved lighting standards to efﬁciently 
manage our energy consumption in all of our stores. This has 
resulted in an investment to our store network and upgrade 
of 260 stores to LED lighting. This initiative has subsequently 
meant less heat, thereby reducing the overall heat load on 
our stores and reduced investment in cooling requirements. 
In addition this has led to a dramatic reduction in ongoing 
maintenance and light bulb replacement. This standard has 
been implemented for all new store ﬁt-outs. Across our 
existing store network all expired bulbs are recycled and we 
are looking to complete a “like for like’ conventional to LED 
lamp replacement programme. 

With the active participation of our employees, we believe that 
our focus on environmental issues will make our business more 
efﬁcient, drive customer and employee connection, and have a 
positive impact in the communities in which we operate.

PACKAGING STEWARDSHIP

Premier is committed to managing and reducing the impact 
our business operations have on the environment. Premier is 
a signatory to the Australian Packaging Covenant, a voluntary 
agreement between government and industry which provides 
companies with tools to be more involved in reducing their 
impact on the environment through sustainable packaging 
design, recycling and product stewardship. Premier has 
submitted its Action Plan outlining its objectives in relation to:  

1. Optimising packaging to reduce environmental impact;

2. Increasing the collection and recycling of packaging;

3. Commitment to product stewardship; and 

4. Implementation of Sustainable Packaging Guidelines.

All plastic shopping bags used by the group are made using 
EPI technology designed to control and manage the lifetime 
of products made from the most common plastics to assist in 
the breakdown, degradation and subsequent biodegradation 
process.

WASTE AND RECYCLING

Premier has extensive recycling and sustainable practices 
across our network of Stores, Distribution Centres and Support 
Centre. Our Distribution Centres execute on-site recovery 
systems for recycling used packaging, following Sustainable 
Packaging Guidelines. All carton packaging uses recycled 
content. Cartons are reused to facilitate the replenishment of 
stock, and where necessary waste packaging is compacted 
and collected for recycling. We have partnered with Orora, a 
signatory to the Australian Packaging Covenant, to collect and 
process waste in line with their recycling procedures. Orora’s 
recycling waste business specialises in paper and cardboard, 
among others, which is the major input for their recycled 
paper mill that produces 100% recycled paper.

Our Support Centre recycles all paper and has a continuing co-
mingled recycling program for glass and plastics on every ﬂoor 
in our entire building. All paper purchased for our Support 
Centre is accredited from The Forest Stewardship Council 
sources, an international network which promotes responsible 
management of the world’s forests. All necessary printing at 
our support centre is activated by personalised swipe access 
only to release print. This initiative has seen a signiﬁcant 
reduction in waste paper printing, as it removes non-collection 
of printouts. All weekly retail reporting, forms, reference and 
administrative material is stored and accessible via mobile 
technology, where possible. 

Annual Report 2017   11

Our Commitment to Ethical Sourcing 

Premier commits to the highest standards of ethical conduct 
and responsible product sourcing practices.

We support this commitment by our models for sourcing 
products, the principles that back-up those models, together 
with our policies and assurance program.

OUR SOURCING MODELS, PRINCIPLES & POLICIES

We share our customers’ full engagement in understanding 
where products come from, how products are made and the 
way that people who manufacture those products are treated.

With this in mind, we use the following sourcing models:

• direct sourcing from factories with whom we work in close 

partnership

In each case our model is supported by 
the following strict sourcing principles:

1. We comply with all laws in the countries we 

source from and operate.

2. We insist on workers’ legal rights – including 
worker empowerment and free association.

3. We have zero tolerance for child labour.
4. We have zero tolerance for bribery and 

corruption.

5. We have zero tolerance for animal cruelty.

• through Li & Fung, the world’s largest sourcing company for 

• prohibits forced labour (including child labour)

major retailers and brands around the world

In addition, we work with known established and trusted 
Australian importers.

We currently source products in the following countries: 
China, Australia, Bangladesh, Hong Kong, India, Indonesia, 
Mauritius,  Taiwan, Thailand, Turkey, and Vietnam.

SOURCE COUNTRIES (THE JUST GROUP, UNITS)

Rest of the world 16%

China 84%

Our Ethical Sourcing and Supply Code (Code) supports our 
commitment to sourcing merchandise that is produced 
according to these principles, regardless of origin.

All suppliers must sign our supply terms and conditions,  
of which the Code is part, prior to any orders being placed. 
We will not do business with a supplier who does not 
comply with the Code.

Among other things, we note that our supply terms and 
the Code:

• requires compliance with all laws (and/or requires our 

suppliers to meet higher standards)

• insists on the free association of workers, including the right 

to collectively bargain and be represented

• requires labour to be voluntary, without workers being 
required to lodge deposits (eg. identity documents; for 
recruitment fees etc.)

12   Premier Investments Limited

• insists on worker rights such as the right to work in safe, 
hygienic premises where working hours are not excessive

• requires the payment of the minimum national legal 

standards or local benchmark standards (whichever is 
higher), and, in relation to full time workers, sufﬁcient to 
meet basic needs and to provide discretionary income

• prohibits unauthorised sub-contracting – meaning that we 
have a fully transparent relationship with our suppliers

• prohibits discrimination on the basis of personal attributes 

as well as union membership or political afﬁliations

ASSURANCES WHICH SUPPORT OUR SOURCING 
PRINCIPLES
Background checks. We conduct thorough and ongoing 
compliance activities of all suppliers directly and through Li & 
Fung and qualiﬁed audit ﬁrms.

Factory inspections. Senior management personally inspect 
all factories that manufacture for us. We continue factory visits 
throughout our relationship with our suppliers to ensure our 
principles are strictly adhered to.

BANGLADESH SOURCING

Background

Bangladesh’s economic and social development relies on 
the expansion and strength of the garment sector, including 
through investment by international retailers. The garment 
industry comprises around 80% of all Bangladesh export 
earnings, is a signiﬁcant contributor to GDP, and employs 
over 4 million workers, most of whom are women. Premier 
currently sources a portion of its Just Jeans, Dotti and Jay 
Jays branded products in Bangladesh and we highlight our 
program in this country in the interest of full transparency.

MEMBERSHIP OF THE ALLIANCE FOR BANGLADESH 
WORKER SAFETY

Since 2013 we have been a proud signatory to the Alliance for 
Bangladesh Worker Safety. This is a legally binding ﬁve year 
commitment to work with some of the world’s largest apparel 
retailers including the following companies: Nordstrom, Gap, 
Target, Sears, J.C. Penney, Hudson’s Bay and Macy’s. 

Together we have invested in worker safety, improved 
conditions and transparent reporting in a results oriented, 
measurable and veriﬁable way.

The Alliance’s achievements to date include:

• inspection of 100% of member factories (including all of our 

4.

factories)

• publication on the Alliance website of all factory inspection 
results, along with corrective action plans for any factories 
requiring remediation (including all of our factories)

• in partnership with the International Finance Corporation, a 
$50 million low-cost long-term facility to assist factories to 
undertake remediation 

• an anonymous worker helpline program in over 800 member 
factories, available to over 1.1 million workers (including all of 
our factories)

• Fire and safety training for 1.29 million workers in all member 
factories (including all of our factories). Plus following the 
Nepal Earthquake, the Alliance is now integrating earthquake 
preparedness into their training programs

Further, the Alliance for Bangladesh Worker Safety 
collaborates with all parties in country – including the 
Bangladesh government, NGOs, factory workers and the 
Accord on Fire & Building Safety in Bangladesh. Both the 
Alliance and the Accord share common priorities , including 
a relentless focus on workers generally, as well as building 
integrity and safety – all supported by ﬁnancial commitments 
and good governance.

All initiatives of the Alliance are publicly available at  
www.bangaladeshworkersafety.org

OUR ACTIVITIES IN BANGLADESH
Our operational processes have included the establishment 
of our own ofﬁce in Bangladesh, which we opened in March 
2014. Our investment in on the ground infrastructure in 
Bangladesh, including employing staff at our sourcing ofﬁce 
directly, supports our audit and compliance activities in that 
market with particular focus on social compliance and safety 
which includes:

1. Senior management personally inspect ALL factories that 
manufacture for us prior to commencing business. We 
continue factory visits throughout our relationship with our 

suppliers to ensure our principles are strictly adhered to. 
Our Code includes the ability for us to make unannounced 
visits in Bangladesh for the purposes of our audit and 
compliance activities.

2. Prior to placing orders with any factory, we also engage 

independent internationally recognised qualiﬁed 
assessment and audit ﬁrms to verify compliance with all 
local laws and safety conditions, in relation to labour and 
safety issues including ﬁre and building integrity.

3. During manufacturing, our globally independent audit 

ﬁrm Intertek inspect all orders. To-date we have achieved 
a 100% inspection rate of all our orders in all of our 
factories.
In addition, if the factories are not member factories of 
either the Alliance or the Accord, then we will not conduct 
business with them. Factories must be inspected for 
compliance with Alliance safety standards before they can 
be approved by the Alliance for production. 

As noted; the Alliance has conducted ﬁre safety training at all 
factories we source from and all employed staff have received 
this training. We are fully engaged in this process with a 
committed and responsible work program in Bangladesh.

ETHICAL RAW MATERIAL PROCUREMENT
Our sourcing commitment is supported by the following 
initiatives relating to ﬁbre procurement:

• Rabbit angora

We conﬁrm that we will not source products containing 
rabbit angora until we can be completely conﬁdent that the 
ethical standards of rabbit angora farming are assured and 
independently audited.

• Cotton 

We will not source cotton harvested in Uzbekistan. We will 
maintain this position until the government of Uzbekistan 
ends the practice of forced child and adult labour in its 
cotton sector. To this end, we signed the Pledge against 
Child and Adult Forced Labour in Uzbek Cotton.

• Azo Dyes

We have voluntarily adopted the EU standard whereby we 
prohibit the manufacture and sale of goods which contain 
prohibited levels of the speciﬁc aromatic amines originating 
from a small number of azo dyes.

• Sandblasted denim

The harmful practice of ‘sandblasting’ denim with silica 
based powders has been discontinued in our business since 
2011.

Annual Report 2017   13

Our Business

CODE OF CONDUCT

SHRINKAGE

Shrinkage is the loss of merchandise that can be attributed 
to product theft or through administrative handling process. 
Premier has a shrinkage reduction strategy in place with 
processes and education aimed at reducing these losses. 
Premier delivered the seventh consecutive year of improved 
shrinkage results in Australia and we will continue to maintain 
this focus into the future.

Premier acknowledges the importance of respecting our 
stakeholders, including team members, shareholders, 
customers and suppliers. We also know that by respecting and 
working with the communities in which we operate we can 
make an impact.

Our Code of Conduct outlines our legal, moral and ethical 
obligations which are underpinned by the behaviours we 
expect of all of our stakeholders.

The principles ensure that we:

• Foster a culture in which all stakeholders including 

customers, shareholders and fellow team members are 
treated with respect

• Comply with the law and Premier policies

• Protect company assets, information and reputation

• Provide a safe workplace for our team members and visitors

• Develop a culture where professional integrity and ethical 

behaviour is valued

As part of this focus, team members are regularly required to 
complete the Code of Conduct training. 

In addition, we have an advisory email and a conﬁdential 
telephone service for all issues and complaints under this 
Code.

14   Premier Investments Limited

Premier Investments Limited
A.C.N. 006 727 966

Financial Report
For the Period Commencing
31 July 2016 to 29 July 2017

Contents

Directors’ Report 

Auditor’s Independence Declaration 

Statement of Comprehensive Income 

Statement of Financial Position 

Statement of Cash Flows 

Statement of Changes In Equity 

Notes to the Financial Statements 

Directors’ Declaration 

Independent Auditor’s Report to the  
Members of Premier Investments Limited 

ASX Additional Information

Corporate Directory
Corporate Directory

2

36

37

38

39

40

41

90

91

97

9898

1   Premier Investments Limited

Directors’ Report

The Board of Directors of Premier Investments Limited (A.B.N. 64 006 727 966) has pleasure in submitting its 
report in respect of the financial year ended 29 July 2017. 

The Directors present their report together with the consolidated financial report of Premier Investments
Limited (the (cid:179)Company(cid:180) or (cid:179)Premier(cid:5)) and its controlled entities (the (cid:179)Group(cid:180)) for the 52 week period  
31 July 2016 to 29 July 2017(cid:15) together with the independent audit report to the members thereon. 

DIRECTORS 

The names and details of the Company(cid:182)s Directors in office during the financial year and until the date of the 
report are as follows.  Directors were in office for this entire period unless otherwise stated. 

Solomon Lew    Chairman and Non-Executive Director

Mr. Lew was appointed as Non(cid:16)Executive Director and Chairman of Premier on 31 March 2008. Mr. Lew is a 
director of Century Plaza Investments Pty Ltd(cid:15) the largest shareholder in Premier and was previously 
Chairman of Premier from 1987 to 1994. 

Mr. Lew has over 50 years(cid:182) experience in the manufacture(cid:15) wholesale and retailing of textiles(cid:15) apparel and 
general merchandise(cid:15) as well as property development. His success in the retail industry has been largely 
due to his ability to read fashion trends and interpret them for the Australasian market(cid:15) in addition to his 
demonstrated ability in the timing of strategic investments.  

Mr. Lew was a Director of Coles Myer Limited from 1985 to 2002(cid:15) serving as Vice Chairman from 1989(cid:15) 
Chairman from 1991 to 1995(cid:15) Executive Chairman in 1995 and Vice Chairman in 1995 and 1996.  

Mr. Lew is a member of the World Retail Hall of Fame and is the first Australian to be formally inducted. 

He is also a former Board Member of the Reserve Bank of Australia and former Member of the Prime 
Minister(cid:182)s Business Advisory Council. 

Mr. Lew was the inaugural Chairman of the Mount Scopus Foundation (1987 (cid:177) 2013) which supports the 
Mount Scopus College(cid:15) one of Australia(cid:182)s leading private colleges with 2000 students. He has also been the 
Chairman or a Director of a range of philanthropic organisations. 

Dr. David M. Crean    Deputy Chairman and Non-Executive Director

Dr. Crean has been an Independent Non(cid:16)Executive Director of Premier since December 2009(cid:15) Deputy 
Chairman since July 2015 and is currently the Chairman of Premier(cid:182)s Audit and Risk Committee (appointed 
August 2010). 

Dr. Crean was Chairman of the Hydro Electric Corporation (Hydro Tasmania) from September 2004 until 
October 2014 and was also Chairman of the Business Risk Committee at Hydro Tasmania(cid:15) member of the 
Audit Committee and Chairman of the Corporate Governance Committee. 

Dr. Crean was State Treasurer of Tasmania from August 1998 to his retirement from the position in February 
2004. He was also Minister for Employment from July 2002 to February 2004. He was a Member for 
Buckingham in the Legislative Council from 1992 to February 1999(cid:15) and then for Elwick until May 2004. From 
1989 to 1992 he was the member for Denison in the House of Assembly. From 1993 to 1998 he held Shadow 
Portfolios of State Development(cid:15) Public Sector Management(cid:15) Finance and Treasury. 

Dr. Crean has been a non(cid:16)executive director and deputy Chairman of Moonlake Investments(cid:15) owner of VDL 
dairy farms in Tasmania since August 2016(cid:15) and is Chairman of its Audit and Risk Committee. He is also a 
Board member of the Linfox Foundation. Dr. Crean graduated from Monash University in 1976 with a 
Bachelor of Medicine and Bachelor of Surgery. 

Annual Report 2017   2

Directors’ Report continued

Mar(cid:78) M(cid:70)(cid:44)nne(cid:86)    Executive Director 

Mr. McInnes is a career retailer with a long track record of success in every role he has occupied. Like many 
great retailers(cid:15) Mark started his career from the shop floor as a company cadet for Grace Brothers. Mark has 
been directly responsible for some of Australia(cid:182)s greatest retail success stories (cid:177) including as a co(cid:16)founder of 
the Officeworks concept which is today Australia(cid:182)s largest office supply superstore.  

Prior to (cid:77)oining Premier(cid:15) Mark led David Jones to its most successful time as a public listed company. Mark 
spent 13 years at David Jones (cid:177) 6 years as Merchandise & Marketing Director and 7 years as CEO. From 
2003 to 2010(cid:15) Mark as CEO and Executive Director of David Jones turned the company into a fashion and 
financial powerhouse(cid:15) creating in excess of (cid:7)2 billion of shareholder value. 

Mark was appointed CEO of Premier Retail in April 2011(cid:15) and has set about transforming the company to 
compete in an industry under great structural pressure. Premier Retail today has a clear path and a clear 
focus.  

In December 2012(cid:15) Mark was appointed as an Executive Director of Premier Investments Limited. Mark holds 
an MBA from the University of Melbourne.

(cid:55)imo(cid:87)(cid:75)(cid:92) (cid:36)n(cid:87)onie    Non-Executive Director and Lead Independent Director 

Mr. Antonie was appointed to the Board of Directors on 1 December 2009. He holds a Bachelor of Economics 
degree from Monash University and (cid:84)ualified as a Chartered Accountant with Price Waterhouse. He has 20 
years(cid:182) experience in investment banking and formerly held positions of Managing Director from 2004 to 2008 
and Senior Advisor in 2009 at UBS Investment Banking(cid:15) with particular focus on large scale mergers and 
ac(cid:84)uisitions and capital raisings in the Australian retail(cid:15) consumer(cid:15) media and entertainment sectors.  
Mr. Antonie is also a Non(cid:16)Executive Director of Village Roadshow Limited(cid:15) Breville Group Limited and 
Netwealth Group Limited and is a Principal of Stratford Advisory Group. 

Lind(cid:86)a(cid:92) (cid:40). (cid:41)o(cid:91) (cid:36)C    Non-Executive Director 

Mr. Fox has extensive experience in all aspects of the transport(cid:15) distribution and warehousing industries. He 
is the founder of the Linfox Group of Companies. Today(cid:15) the Linfox Group operates one of the largest supply 
chain services businesses with operations in 12 countries. The Linfox Group employs over 24(cid:15)000 people(cid:15) 
operates 4.8 million s(cid:84)uare metres of warehouses and a fleet of more than 6(cid:15)000 vehicles and carries out 
distribution operations for leading companies across the Asia(cid:16)Pacific region. The Linfox Group includes 
operations in the areas of transport and logistics(cid:15) airports(cid:15) property development and cash management 
services. 

Mr. Fox has extensive involvement in Australian and international circles and(cid:15) apart from his business 
interests(cid:15) is well recognised and active in sport and charity work. 

In 2010(cid:15) Victoria University admitted Mr. Fox to the degree of Doctor of the University honoris causa for his 
outstanding achievements in the transport industry(cid:15) for his contribution to the community through his 
sustained efforts to reduce unemployment and his campaign against youth suicide. 

In January 2008(cid:15) Mr Fox was awarded a Companion of the Order of Australia (AC) for continued service to 
the transport and logistics industries(cid:15) to business through the development and promotion of youth 
traineeships and to the community through a range of philanthropic endeavours.  

He was awarded an Officer of the Order of Australia (AO) in 1992 for his contribution to the transport industry 
and the community and he received a Centenary Medal for services to the transport industry in 2001. 

From September 1992 to December 1993(cid:15) Mr. Fox together with Mr. Bill Kelty introduced a national campaign 
called (cid:181)Work for Australia(cid:182). This campaign encouraged companies and local communities to generate (cid:77)obs for 
the unemployed with the aid of government subsidies and programs. More than 60(cid:15)000 (cid:77)obs were pledged 
through their efforts and Mr. Fox and Mr. Kelty were awarded (cid:181)Victorians of the Year(cid:182) by the Sunday Age.

3   Premier Investments Limited

3 

 
Sall(cid:92) (cid:43)erman    Non-Executive Director

Sally Herman is an experienced Non(cid:16)Executive Director in the fields of financial services(cid:15) retail(cid:15) 
manufacturing and property.  She had a successful executive career spanning 25 years in financial services 
in both Australia and the US(cid:15) transitioning in late 2010 to a full time career as a Non(cid:16)Executive Director.  

Prior to that(cid:15) she had spent 16 years with the Westpac Group(cid:15) running ma(cid:77)or business units in most operating 
divisions of the Group as well as heading up Corporate Affairs and Sustainability through the merger with St. 
George and the global financial crisis.  

Ms. Herman sits on both listed and unlisted Boards(cid:15) including Suncorp Group Limited (effective 6 October 
2015)(cid:15) Breville Group Limited(cid:15) ME Bank Limited (retired 5 October 2015) and Investec Property Limited. She 
was also a board member of FSA Group Limited (retired 28 November 2014).  Ms. Herman is on the Board of 
the Sydney Harbour Federation Trust.  Ms. Herman holds a BA from the University of NSW and is a Graduate 
of the Australian Institute of Company Directors. 

(cid:43)enr(cid:92) D. Lan(cid:93)er (cid:36)M    (cid:37).C(cid:50)M. LL(cid:37) (cid:11)Mel(cid:69)(cid:12)    Non-Executive Director

Henry Lanzer AM is Managing Partner of Arnold Bloch Leibler(cid:15) a leading Australian commercial law firm. 
Henry has over 35 years(cid:182) experience in providing legal(cid:15) corporate finance and strategic advice to some of 
Australia(cid:182)s leading companies. 

Mr. Lanzer is a Non(cid:16)Executive Director of Just Group Limited(cid:15) Thorney Opportunities Limited and the 
TarraWarra Museum of Art and also a Life Governor of the Mount Scopus College Council.  

In June 2015(cid:15) Henry was appointed as a Member of the Order of Australia. 

(cid:55)erren(cid:70)e L. M(cid:70)Car(cid:87)ne(cid:92)   Non-Executive Director (Appointed 15 April 2016) 

Mr. McCartney has had a long and successful career in retail. Mr. McCartney started at Boans Department 
Stores in Perth then moved to Grace Bros in Sydney. After the ac(cid:84)uisition of Grace Bros by Myer(cid:15) he 
relocated to the merged Department Stores Group in Melbourne within the merchandise and marketing 
department. His successful career within Coles Myer meant that Terry then moved to the Kmart discount 
department stores as Head of Merchandise and Marketing and then Managing Director. Following several 
years as Managing Director of Kmart Australia and New (cid:61)ealand(cid:15) Terry became Managing Director of Myer 
Grace Bros. For 5 years Terry lead year on year growth in profitability of Australia(cid:182)s largest department store.  

Terry(cid:182)s experience spans the full spectrum of retailing(cid:15) ranging from luxury goods in department stores to 
large mass merchandise discount operations. Terry has also been retained by large international accounting 
and legal firms as an expert witness in relation to Australian retail.

In addition to his extensive list of retail experience(cid:15) he has also been an advisor to large Australian and 
international mining companies(cid:15) prior to (cid:77)oining the Just Group Board in 2008. Terry lends his extensive retail 
and commercial expertise to the Just Group as Non(cid:16)Executive Director(cid:15) and by serving on a number of 
committees(cid:15) including the Internet Steering Committee of the Group(cid:15) and through various store and site visits(cid:15) 
both locally and overseas. He is also involved in seasonal and trading performance reviews for the Group.    

Terry is a member of the Remuneration and Nomination Committee of Premier Investments Limited. In 
August 2017(cid:15) he was appointed Chairman of the Remuneration and Nomination Committee. 

Annual Report 2017   4

Directors’ Report continued

Mi(cid:70)(cid:75)ael (cid:53).(cid:44). M(cid:70)Leod    Non-Executive Director

Mr. McLeod is a former Executive Director of the Century Plaza Group and has been involved with the Group 
since 1996 as an advisor in the areas of corporate strategy(cid:15) investment and public affairs. He has been a 
Non(cid:16)Executive Director of Premier Investments Limited since 2002 and was a Non(cid:16)Executive Director of Just 
Group Limited from 2007 to 2013. Past experience includes the Australian Board of an international funds 
manager(cid:15) chief of staff to a Federal Cabinet Minister and statutory appointments including as a Commission 
Member of the National Occupational Health and Safety Commission. 

He holds a Bachelor of Arts (First Class Honours and University Medal) from the University of New South 
Wales.  

Dr. (cid:42)ar(cid:92) (cid:43). (cid:58)ei(cid:86)(cid:86)    LL.M(cid:15) (cid:45).S.D. Non-Executive Director

Dr. Weiss holds the degrees of LL.B (Hons) and LL.M (with distinction) from Victoria University of Wellington(cid:15) 
as well as a Doctor of Juridical Science (JSD) from Cornell University(cid:15) New York. Dr. Weiss has extensive 
international business experience and has been involved in numerous cross(cid:16)border mergers and ac(cid:84)uisitions.

Dr. Weiss is Chairman of Ridley Corporation Limited and Estia Health Limited(cid:15) Executive Director of Ariadne 
Australia Limited(cid:15) and a Director of Pro(cid:16)Pac Packaging Limited(cid:15) Tag Pacific Limited (resigned(cid:29) 31 August 
2017)(cid:15) Thorney Opportunities Limited(cid:15) The Straits Trading Company Limited and Ardent Leisure Limited 
(appointed(cid:29) 3 September 2017). He was Chairman of Clearview Wealth Limited from July 2013 until May 
2016 and of Coats Plc from 2003 until April 2012(cid:15) and Executive Director of Guinness Peat Group Plc from 
1990 to April 2011 and has held directorships of numerous companies(cid:15) including Mercantile Investment 
Company Limited (retired 25 February 2015)(cid:15) Westfield Group(cid:15) Tower Australia Limited(cid:15) Australian Wealth 
Management Limited(cid:15) Tyndall Australia Limited (Deputy Chairman)(cid:15) Joe White Maltings Limited (Chairman)(cid:15) 
CIC Limited(cid:15) Whitlam Turnbull & Co Limited and Industrial E(cid:84)uity Limited. 

He has authored numerous articles on a variety of legal and commercial topics. 

COMPANY SECRETARY 

(cid:46)im (cid:41). Davi(cid:86)

Mr. Davis has been the Company Secretary of Premier Investments Limited for 23 years. Prior to holding this 
position(cid:15) Mr Davis had 15 years(cid:182) experience within the accounting industry as a tax and financial advisor. 

5   Premier Investments Limited

PRINCIPAL ACTIVITIES

The Group operates a number of specialty retail fashion chains within the specialty retail fashion markets in Australia(cid:15) 
New (cid:61)ealand(cid:15) Singapore(cid:15) United Kingdom(cid:15) Republic of Ireland(cid:15) Malaysia and Hong Kong. The Group also has 
significant investments in listed securities and money market deposits.  

DIVIDENDS

Final Dividend recommended for 2017 
Dividends paid in the year(cid:29) 

Interim for the half(cid:16)year ended 28 January 2017

Final for 2016 shown as recommended in the 2016 report 

C(cid:40)(cid:49)(cid:55)S 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

27.00 
26.00 

25.00 

42(cid:15)592 
40(cid:15)994 

39(cid:15)358 

OPERATING AND FINANCIAL REVIEW 

(cid:42)ro(cid:88)(cid:83) (cid:50)verview(cid:29) 

Premier Investments Limited ac(cid:84)uired a controlling interest in Just Group Limited ((cid:179)Just Group(cid:180))(cid:15) a listed company 
on the Australian Securities Exchange in August 2008. Subse(cid:84)uent to the ac(cid:84)uisition(cid:15) Just Group delisted from the 
Australian Securities Exchange. Just Group is a leading specialty fashion retailer with operations in Australia(cid:15) New 
(cid:61)ealand(cid:15) Singapore(cid:15) United Kingdom(cid:15) Malaysia(cid:15) Hong Kong and the Republic of Ireland. Just Group has a portfolio 
of well(cid:16)recognised retail brands(cid:15) consisting of Just Jeans(cid:15) Jay Jays(cid:15) Jac(cid:84)ui E(cid:15) Portmans(cid:15) Dotti(cid:15) Peter Alexander and 
Smiggle. Currently(cid:15) these seven uni(cid:84)ue brands are trading from more than 1(cid:15)100 stores across seven countries(cid:15) as 
well as online. Smiggle opened its first two stores in the Republic of Ireland during the year(cid:15) marking the brand(cid:182)s 
entry into the Eurozone. A total of 58 Smiggle stores were opened across Europe and Asia(cid:15) bringing the global total 
stores to 297 as at the end of the 2017 financial year. 

The Group(cid:182)s emphasis is on a range of brands that provide diversification through breadth of target demographic 
and sufficiently broad appeal to enable a national footprint. Over 90(cid:8) of the product range is designed(cid:15) sourced and 
sold under its own brands. There is a continuing investment in these brands to ensure they remain relevant to 
changing customer tastes and remain at the forefront of their respective target markets.  

(cid:42)ro(cid:88)(cid:83) (cid:50)(cid:83)era(cid:87)in(cid:74) (cid:53)e(cid:86)(cid:88)l(cid:87)(cid:86)(cid:29) 

The Group(cid:182)s reported revenue from the sale of goods(cid:15) total income and net profit after income tax for the 52 week 
period ended 29 July 2017 (2016(cid:29) 53 week period ended 30 July 2016) are summarised below(cid:29) 

Revenue from sale of goods 

Total interest income 

Total other income and revenue 

Total revenue and other income 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:8) C(cid:43)(cid:36)(cid:49)(cid:42)(cid:40) 

1(cid:15)092(cid:15)760 

1(cid:15)049(cid:15)226 

6(cid:15)145 

2(cid:15)227 

7(cid:15)888 

1(cid:15)847 

1(cid:15)101(cid:15)132 

1(cid:15)058(cid:15)961 

(cid:14)4.15(cid:8)

(cid:16)22.10(cid:8)

(cid:14)20.57(cid:8)

(cid:14)3.98(cid:8)

Net profit after income tax 

105(cid:15)136 

103(cid:15)874 

(cid:14)1.21(cid:8)

Annual Report 2017   6

Directors’ Report continued

OPERATING AND FINANCIAL REVIEW (CONTINUED) 

(cid:42)ro(cid:88)(cid:83) (cid:50)(cid:83)era(cid:87)in(cid:74) (cid:53)e(cid:86)(cid:88)l(cid:87)(cid:86) (cid:11)(cid:70)on(cid:87)in(cid:88)ed(cid:12)(cid:29) 

(cid:53)e(cid:87)ail Se(cid:74)men(cid:87)(cid:29) 

As Premier(cid:182)s core business(cid:15) Just Group was the key contributor to the Group(cid:182)s operating results for the financial 
year. Key financial indicators for the retail segment for the 52 week period ended 29 July 2017 (2016(cid:29) 53 week 
period ended 30 July 2016) are highlighted below(cid:29) 

(cid:53)(cid:40)(cid:55)(cid:36)(cid:44)L S(cid:40)(cid:42)M(cid:40)(cid:49)(cid:55) 

Sale of goods 

Total segment income 

(cid:24)(cid:21) (cid:58)(cid:40)(cid:40)(cid:46)S 
(cid:40)(cid:49)D(cid:40)D (cid:21)(cid:28) (cid:45)(cid:56)L(cid:60) 
(cid:21)(cid:19)(cid:20)(cid:26)

(cid:24)(cid:22) (cid:58)(cid:40)(cid:40)(cid:46)S 
(cid:40)(cid:49)D(cid:40)D (cid:22)(cid:19) (cid:45)(cid:56)L(cid:60) 
(cid:21)(cid:19)(cid:20)(cid:25) 

(cid:8) C(cid:43)(cid:36)(cid:49)(cid:42)(cid:40) 

1(cid:15)092(cid:15)760 

1(cid:15)095(cid:15)062 

1(cid:15)049(cid:15)226 

1(cid:15)051(cid:15)241 

(cid:14)4.15(cid:8)

(cid:14)4.17(cid:8)

Segment net profit before income tax 

126(cid:15)182 

126(cid:15)207 

(cid:16)0.02(cid:8)

Capital expenditure

45(cid:15)040 

42(cid:15)677 

(cid:14)5.54(cid:8)

The Retail Segment contributed (cid:7)126.2 million to the Group(cid:182)s net profit before income tax for the 52 week period 
ended 29 July 2017 (2016(cid:29) (cid:7)126.2 million net profit before income tax for the 53 week period ended 30 July 2016). 
The reported results for the 2016 financial year represented a 53 week period ended 30 July 2016(cid:15) whereas the 
current financial year represents a 52 week period(cid:15) ended 29 July 2017.  

The Retail Segment Underlying Earnings before Interest and Taxation ((cid:179)EBIT(cid:180)) increased by 7.3(cid:8) to (cid:7)136.0 million 
for the 52 weeks ended 29 July 2017(cid:15) a new record for the Group. This strong result was achieved notwithstanding 
the structural pressures and challenges currently facing the Australian retail landscape.  

Premier Retail Underlying EBIT History

$126.7 

$136.0 

$105.7 

$92.8 

$80.4 

$83.7 

$65.3 

 $160.0

 $140.0

 $120.0

 $100.0

 $80.0

 $60.0

 $40.0

 $20.0

 $-

FY11

FY12

FY13

FY14

FY15

FY16 *

FY17

$' millions

(cid:13) FY16 Underlying EBIT represents a comparable 52 week period.

Refer to page 9 for a reconciliation between underlying EBIT and statutory reported operating profit before taxation 
for the Retail Segment.

7   Premier Investments Limited

Growth in sales(cid:15) combined with tight controls over the total cost of doing business led to the outstanding retail 
segment underlying EBIT result. The solid result is a reflection of the Group(cid:182)s continued efforts to transform its core 
brands(cid:15) the implementation of its organisation(cid:16)wide cost efficiency program(cid:15) as well as the focus on its growth 
initiatives(cid:15) both locally and internationally.  

(cid:51)(cid:53)(cid:40)M(cid:44)(cid:40)(cid:53) (cid:53)(cid:40)(cid:55)(cid:36)(cid:44)L (cid:55)(cid:53)(cid:36)(cid:49)S(cid:41)(cid:50)(cid:53)M(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) S(cid:55)(cid:53)(cid:36)(cid:55)(cid:40)(cid:42)(cid:60) (cid:177) (cid:50)(cid:56)(cid:53) (cid:41)(cid:50)C(cid:56)S (cid:50)(cid:49) (cid:42)(cid:53)(cid:50)(cid:58)(cid:55)(cid:43) (cid:36)(cid:49)D (cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)M(cid:40)(cid:49)(cid:55) 

(cid:42)(cid:53)(cid:50)(cid:58)(cid:55)(cid:43) 

C(cid:50)(cid:53)(cid:40) 

 Grow Smiggle significantly

 Gross margin expansion program

 Grow Peter Alexander significantly

 Re(cid:77)uvenation of core apparel brands

 Expansion and growth of online businesses

 Organisation(cid:16)wide cost efficiency program

The increase in sales is as a result of strong sales growth across the portfolio of brands(cid:15) with successful growth in 
both overseas and domestic markets. Online sales were up 44.3(cid:8) on the prior comparative 52 week period.  

It has been an outstanding year for the growth(cid:16)focussed brands(cid:15) being Peter Alexander and Smiggle. Smiggle 
reported record global sales growth of 28.8(cid:8) on the previous comparable 52 week period. Similarly(cid:15) Peter 
Alexander recorded sales growth of 14.0(cid:8) on the previous comparable 52 week period. Peter Alexander(cid:182)s growth 
plan will target further store openings over the next three years.  

The Group continues to invest in new stores globally(cid:15) and actively seeks to deliver sustainable sales growth through 
store upgrades and refurbishments. During the 2017 financial year(cid:15) the Group opened a further 74 stores across all 
geographic segments(cid:15) bringing the total global store network to over 1(cid:15)100 stores. 

During the 2017 financial year(cid:15) the Group also entered the Eurozone by opening its first Smiggle stores in the 
Republic of Ireland.  The Group also recently announced its further expansion into Continental Europe(cid:15) with the first 
stores set to open in the Netherlands and Belgium in calendar year 2018. 

Retail segment sales per geographic segment is presented in the graph below(cid:29) 

Sale of Goods Per Geographic Segment for the Period Ended 29 July 2017

New Zealand 12%

Asia 3%

Europe 9%

Australia 76%

Annual Report 2017   8

Directors’ Report continued

OPERATING AND FINANCIAL REVIEW (CONTINUED)

(cid:42)ro(cid:88)(cid:83) (cid:50)(cid:83)era(cid:87)in(cid:74) (cid:53)e(cid:86)(cid:88)l(cid:87)(cid:86) (cid:11)(cid:70)on(cid:87)in(cid:88)ed(cid:12)(cid:29) 

(cid:53)e(cid:87)ail Se(cid:74)men(cid:87) (cid:11)(cid:70)on(cid:87)in(cid:88)ed(cid:12)(cid:29) 

(cid:53)e(cid:70)on(cid:70)ilia(cid:87)ion (cid:69)e(cid:87)ween (cid:88)nderl(cid:92)in(cid:74) (cid:51)remier (cid:53)e(cid:87)ail (cid:40)(cid:37)(cid:44)(cid:55) and (cid:53)e(cid:83)or(cid:87)ed (cid:53)e(cid:87)ail Se(cid:74)men(cid:87) (cid:53)e(cid:86)(cid:88)l(cid:87) 

The Group(cid:182)s results are reported under International Financial Reporting Standards ((cid:179)IFRS(cid:180)) and represents financial 
information that is presented in accordance with all relevant accounting standards. Non(cid:16)IFRS information is financial 
information that is presented other than in accordance with all relevant accounting standards. The Group provides 
these Non(cid:16)IFRS financial measures to better understand key aspects of the performance and drivers of the Group(cid:182)s 
Retail Segment. 

The table below reconciles the Non(cid:16)IFRS financial term Premier Retail underlying EBIT to the Reported Retail 
Segment Result for each of the financial years(cid:29) 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25) (cid:13) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:24) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:23) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:22) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:21) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:20) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:53)e(cid:83)or(cid:87)ed (cid:53)e(cid:87)ail Se(cid:74)men(cid:87) (cid:50)(cid:83)era(cid:87)in(cid:74) 
(cid:51)ro(cid:73)i(cid:87) (cid:69)e(cid:73)ore (cid:55)a(cid:91)a(cid:87)ion 

(cid:20)(cid:21)(cid:25)(cid:15)(cid:20)(cid:27)(cid:21) 

(cid:20)(cid:21)(cid:25)(cid:15)(cid:21)(cid:19)(cid:26) 

(cid:28)(cid:27)(cid:15)(cid:28)(cid:24)(cid:27) 

(cid:26)(cid:28)(cid:15)(cid:21)(cid:28)(cid:28) 

(cid:26)(cid:25)(cid:15)(cid:25)(cid:27)(cid:25) 

(cid:25)(cid:28)(cid:15)(cid:28)(cid:27)(cid:27) 

(cid:22)(cid:28)(cid:15)(cid:26)(cid:28)(cid:25) 

Add back(cid:29) Interest expense 

4(cid:15)884 

4(cid:15)912 

5(cid:15)738 

6(cid:15)311 

6(cid:15)988 

10(cid:15)194 

9(cid:15)614 

(cid:40)(cid:37)(cid:44)(cid:55) 

Ad(cid:77)usted for(cid:29) 

Inter(cid:16)segment ad(cid:77)ustments 
One(cid:16)off costs related to strategic 
review 
One(cid:16)off Smiggle new market entry 
expense 
One(cid:16)off supply chain transformation 
expense 
One(cid:16)off exit of South African Joint 
Venture 
Non(cid:16)comparable EBIT contribution for 
the 53rd week in 2016 
One(cid:16)off expenses relating to Head 
office relocation and make(cid:16)good 

One(cid:16)off litigation expense

(cid:20)(cid:22)(cid:20)(cid:15)(cid:19)(cid:25)(cid:25) 

(cid:20)(cid:22)(cid:20)(cid:15)(cid:20)(cid:20)(cid:28) 

(cid:20)(cid:19)(cid:23)(cid:15)(cid:25)(cid:28)(cid:25) 

(cid:27)(cid:24)(cid:15)(cid:25)(cid:20)(cid:19) 

(cid:27)(cid:22)(cid:15)(cid:25)(cid:26)(cid:23) 

(cid:27)(cid:19)(cid:15)(cid:20)(cid:27)(cid:21) 

(cid:23)(cid:28)(cid:15)(cid:23)(cid:20)(cid:19) 

(84)

(167)

(673)

(482)

30 

192 

74

(cid:16) 

218 

(cid:16) 

(cid:16) 

(cid:16)

1(cid:15)786 

3(cid:15)045 

 (cid:16) 

 (cid:16) 

 (cid:16) 

 (cid:16) 

(6(cid:15)596)

(cid:16) 

2(cid:15)345

 (cid:16) 

 (cid:16) 

 (cid:16) 

1(cid:15)724 

(cid:16) 

(cid:16) 

(cid:16) 

 (cid:16) 

3(cid:15)193 

4(cid:15)482 

 (cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

 (cid:16) 

 (cid:16) 

 (cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

 (cid:16) 

 (cid:16) 

 (cid:16) 

 (cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

15(cid:15)771

 (cid:16) 

 (cid:16) 

 (cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:56)nderl(cid:92)in(cid:74) (cid:51)remier (cid:53)e(cid:87)ail  (cid:40)(cid:37)(cid:44)(cid:55) 

(cid:20)(cid:22)(cid:25)(cid:15)(cid:19)(cid:22)(cid:20) 

(cid:20)(cid:21)(cid:25)(cid:15)(cid:26)(cid:19)(cid:20) 

(cid:20)(cid:19)(cid:24)(cid:15)(cid:26)(cid:23)(cid:26) 

(cid:28)(cid:21)(cid:15)(cid:27)(cid:19)(cid:22) 

(cid:27)(cid:22)(cid:15)(cid:26)(cid:19)(cid:23) 

(cid:27)(cid:19)(cid:15)(cid:22)(cid:26)(cid:23) 

(cid:25)(cid:24)(cid:15)(cid:21)(cid:24)(cid:24) 

(cid:56)nderl(cid:92)in(cid:74) (cid:51)remier (cid:53)e(cid:87)ail (cid:40)(cid:37)(cid:44)(cid:55)(cid:15) 
e(cid:91)(cid:83)re(cid:86)(cid:86)ed in (cid:7)(cid:182) million(cid:86)

(cid:20)(cid:22)(cid:25).(cid:19) 

(cid:20)(cid:21)(cid:25).(cid:26) 

(cid:20)(cid:19)(cid:24).(cid:26) 

(cid:28)(cid:21).(cid:27) 

(cid:27)(cid:22).(cid:26) 

(cid:27)(cid:19).(cid:23) 

(cid:25)(cid:24).(cid:22) 

(cid:13) Reported Premier Retail Profit before tax for the year ended 30 July 2016 represented a 53 week
financial year.

9   Premier Investments Limited

(cid:44)nve(cid:86)(cid:87)men(cid:87) Se(cid:74)men(cid:87)(cid:29) 

The Group(cid:182)s balance sheet remains strong(cid:15) primarily due to the significant asset holding of the investment segment. 
As at 29 July 2017(cid:15) the Group continued to reflect its 27.5(cid:8) shareholding in Breville Group Limited as an investment 
in associate(cid:15) with an e(cid:84)uity accounted value of (cid:7)216.9 million. The fair value of the Group(cid:182)s interest in Breville Group 
Limited as determined based on the (cid:84)uoted market price for the shares as at 29 July 2017 was (cid:7)362.3 million.  

During the 2017 financial year(cid:15) the Group ac(cid:84)uired a strategic investment of 10.77(cid:8) in Myer Holdings Limited. At 
year(cid:16)end the fair value of this available(cid:16)for(cid:16)sale financial asset is reflected as (cid:7)67.7 million. 

The Group also ac(cid:84)uired an office building in Melbourne(cid:15) Victoria(cid:15) with a cost price of (cid:7)58.5 million. The Group 
obtained a (cid:7)50 million secured bank borrowing to partially fund the ac(cid:84)uisition. The office building is expected to be 
utilised as the future head office of Premier Retail to support the Group(cid:182)s continued growth.   

GROUP PERFORMANCE  

The Group is pleased to report that despite tough economic conditions(cid:15) it continued to generate strong returns to 
shareholders. The dividends declared for the period reaffirm the confidence the Directors have in the future 
performance and underline Premier(cid:182)s commitment to enhancing shareholder value through capital management and 
business investment.  

(cid:21)(cid:19)(cid:20)(cid:26) 

(cid:21)(cid:19)(cid:20)(cid:25) 

(cid:21)(cid:19)(cid:20)(cid:24) 

(cid:21)(cid:19)(cid:20)(cid:23) 

(cid:21)(cid:19)(cid:20)(cid:22) 

Closing share price at end of financial year 

(cid:7)13.35 

(cid:7)16.22 

(cid:7)13.43 

(cid:7)9.34 

(cid:7)7.68 

Basic earnings per share (cents) 

Dividend paid per share (cents) 

66.8

51.0 

66.3 

44.0 

56.5 

50.0 

47.0 

39.0 

112.4 

37.0 

Return on e(cid:84)uity ((cid:8)) 

7.9(cid:8) 

7.8(cid:8) 

6.6(cid:8) 

5.6(cid:8) 

13.4(cid:8) 

Net debt(cid:18)e(cid:84)uity ratio ((cid:8)) 

0.2(cid:8) 

(13.3(cid:8)) 

(13.2(cid:8)) 

(14.9(cid:8)) 

(16.2(cid:8)) 

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS 

There have been no significant changes in the state of affairs of the Group during the financial year ended 
29 July 2017. 

SIGNIFICANT EVENTS AFTER THE REPORTING DATE 

On 24 September 2017(cid:15) the Directors of Premier Investments Limited declared a final dividend in respect of the 
2017 financial year. The total amount of the dividend is (cid:7)42(cid:15)592(cid:15)000 (2016(cid:29) (cid:7)39(cid:15)358(cid:15)000) which represents a fully 
franked dividend of 27 cents per share (2016(cid:29) 25 cents per share). The dividend has not been provided for in the 
29 July 2017 financial statements. 

LIKELY DEVELOPMENTS AND E(cid:59)PECTED RESULTS  

Certain likely developments in the operations of the Group and the expected results of those operations in financial 
years subse(cid:84)uent to the period ended 29 July 2017 are referred to in the preceding operating and financial review. 
No additional information is included on the likely developments in the operations of the Group and the expected 
results of those operations as the Directors reasonably believe that the disclosure of such information would be likely 
to result in unreasonable pre(cid:77)udice to the Group if included in this report(cid:15) and it has therefore been excluded in 
accordance with section 299(3) of the Corporations Act 2001. 

Annual Report 2017   10

Directors’ Report continued

ENVIRONMENTAL REGULATION AND PERFORMANCE 

The Group(cid:182)s operations are not sub(cid:77)ect to any significant environmental obligations or regulations. 

SHARE OPTIONS AND SHARES ISSUED DURING THE FINANCIAL YEAR 

Unissued Shares: 

As at the date of this report(cid:15) there were 1(cid:15)149(cid:15)837 unissued performance rights (1(cid:15)149(cid:15)837 at the reporting date). 
Refer to the remuneration report for further details of the options outstanding. 

Shares Issued as a Result of the Exercise of Options: 

A total of 584(cid:15)305 shares (2016(cid:29) 784(cid:15)386) were issued during the year pursuant to the Group(cid:182)s Performance Rights 
Plan. No other shares were issued during the year.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS 

To the extent permitted by law(cid:15) the company indemnifies every person who is or has been a director or officer of the 
company or of a wholly(cid:16)owned subsidiary of the company against liability for damages awarded or (cid:77)udgments 
entered against them and legal defence costs and expenses(cid:15) arising out of a wrongful act(cid:15) incurred by that person 
whilst acting in their capacity as a director or officer provided there has been no admission(cid:15) or (cid:77)udgment(cid:15) award or 
other finding by a court(cid:15) tribunal or arbitrator which establishes improper use of position(cid:15) or committing of any 
criminal(cid:15) dishonest(cid:15) fraudulent or malicious act.  

The officers include the Directors(cid:15) as named earlier in this report(cid:15) the Company Secretary and other officers(cid:15) being 
the executive senior management team. Details of the nature of the liabilities covered or the amount of the premium 
paid in respect of the Directors(cid:15) and Officers(cid:15) liability insurance contracts are not disclosed as such disclosure is 
prohibited under the terms of the contracts. 

INDEMNIFICATION OF AUDITORS 

To the extent permitted by law(cid:15) the company has agreed to indemnify its auditors(cid:15) Ernst & Young(cid:15) as part of the 
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified 
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.  

AUDITOR INDEPENDENCE 

The Directors received a copy of the Auditor(cid:182)s Independence Declaration in relation to the audit for this financial year 
and is presented on page 36. 

NON(cid:16)AUDIT SERVICES 

The Directors are satisfied that the provision of non(cid:16)audit services is compatible with the general standard of 
independence for auditors imposed by the Corporations Act 2001.  The nature and scope of each type of non(cid:16)audit 
service provided means that independence was not compromised.  

Details of non(cid:16)audit services provided by the Group(cid:182)s auditor(cid:15) Ernst & Young(cid:15) can be found in Note 30 of the 
Financial Report. 

ROUNDING 

The company is a company of the kind specified in ASIC Corporations (Rounding in Financial/Directors’ Reports) 
Instrument 2016/191(cid:15) dated 24 March 2016.  In accordance with that ASIC instrument amounts in the financial 
statements and the Directors(cid:182) Report have been rounded to the nearest thousand dollars unless specifically stated to 
be otherwise. 

11   Premier Investments Limited

INTERESTS IN SHARES AND RIGHTS OF THE COMPANY 

At the date of this report, the interests of the Directors in the shares and performance rights of the company were:

Mr. S. Lew 

Mr. L.E. Fox 

Ms. S. Herman

Mr. H.D. Lanzer 

4,437,699 ordinary shares** 

2,577,014 ordinary shares

8,000 ordinary shares 

27,665 ordinary shares 

Mr. M.R.I. McLeod 

28,186 ordinary shares 

Dr. G. H. Weiss

Mr. M. McInnes

6,000 ordinary shares 

236,800 ordinary shares and 750,000 performance rights 

**Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The 
Associated Entities, collectively, have a relevant interest in 59,804,731 shares in the company. However, Mr. Lew 
does not have a relevant interest in the shares of the company held by the Associated Entities. 

DIRECTORS’ MEETINGS 

The number of meetings of the Board of Directors during the financial year, and the number of meetings attended by 
each director were as follows:  

DIRECTOR 

Mr. S. Lew 

Mr. M. McInnes 

Mr. T. Antonie 

Dr. D. Crean 

Mr. L. E. Fox 

Ms. S. Herman 

Mr. H. D. Lanzer 

Mr. T. L. McCartney 

Mr. M. R. I. McLeod 

Dr. G. H. Weiss 

BOARD MEETINGS

AUDIT AND RISK COMMITTEE

REMUNERATION AND 

NOMINATION COMMITTEE

MEETINGS
HELD  

NUMBER 
ATTENDED

MEETINGS
HELD 

NUMBER 
ATTENDED

MEETINGS
HELD 

NUMBER 
ATTENDED

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

6 

- 

- 

4 

4 

- 

4 

-

-

-

-

- 

- 

4 

4 

- 

4 

2

2

- 

- 

- 

- 

3 

- 

- 

- 

3 

3 

- 

- 

- 

- 

3 

- 

- 

- 

3 

3 

- 

- 

REMUNERATION REPORT 

The Remuneration Report, which forms part of this Directors’ Report, is presented from page 13. 

CORPORATE GOVERNANCE STATEMENT 

To view Premier’s Corporate Governance Statement, please visit www.premierinvestments.com.au/about-us/board-
policies. 

The Directors’ Report is signed in accordance with a resolution of the Board of Directors. 

Solomon Lew 
Chairman
3 October 2017 

Annual Report 2017   12

Directors’ Report continued

REMUNERATION REPORT 

Dear Shareholders(cid:15) 

As the new Chairman of the Remuneration and Nomination Committee(cid:15) it is my pleasure to present our remuneration 
report for the 52 weeks ended 29 July 2017. Following on from the expanded disclosures we provided last year(cid:15) this 
report provides a high level of detail in relation to our performance(cid:15) remuneration outcomes and incentive 
arrangements. 

Notwithstanding the marked changes and challenges in the retail landscape(cid:15) Premier continues to deliver very strong 
results for our shareholders. For the 2017 financial year(cid:15) Premier Retail(cid:182)s CEO(cid:15) Mark McInnes(cid:15) successfully led 
Premier Retail to achieve reported sales of (cid:7)1.1 billion(cid:15) reported retail segment operating profit before taxation of 
(cid:7)126.2 million and an underlying Earnings before Interest and Taxation ((cid:179)EBIT(cid:180))1 of (cid:7)136 million(cid:15) up 7.3(cid:8) on a 
comparable 52 week prior financial year.  

Premier shareholders continue to en(cid:77)oy some of the best returns of any listed company in the AS(cid:59)200. Premier 
Retail has delivered six consecutive years of underlying EBIT growth(cid:15) resulting in increased ordinary fully franked 
dividends being declared to our shareholders.  

Underlying EBIT History1

$136.0

$126.7

$105.7

$92.8

$83.7

 $140.0

 $105.0

 $70.0

 $35.0

 $-

50

40

30

20

10

-

Full year ordinary dividends per 
share (fully franked)

53

48

38

40

42

FY13

FY14

FY15

FY16

FY17

FY13

FY14

FY15

FY16

FY17

$' millions

cents per share

We have continued our focus on the development and career tra(cid:77)ectory of our very strong team of female executives. 
Female leaders spearheaded internet and marketing(cid:15) human resources(cid:15) and four out of our seven brands(cid:15) to deliver 
exceptional results. 

Our commitment to support and encourage female leadership flows through all levels of the business. 90(cid:8) of our 
8(cid:15)000 strong workforce are female. It is a key priority for us to ensure that the executive and leadership structure 
reflects our uni(cid:84)ue composition(cid:15) and we are continuing to work towards this. 

In addition(cid:15) Premier has turned its attention to the diversity of the Board. The current Board provides deep 
experience in retail(cid:15) finance(cid:15) distribution and logistics(cid:15) accounting(cid:15) legal(cid:15) international transaction and public policy 
sectors. Details of our Board(cid:182)s background and expertise are set out in our annual report.  

In the interests of maintaining an engaged and high performing Board(cid:15) we are continually looking to increase the skill 
set of our members. For this same reason(cid:15) the Remuneration and Nomination Committee has undergone changes. 
My appointment as Chairman in August 2017 ensures that the Committee is both headed by an independent director(cid:15) 
and ma(cid:77)ority of members are independent. 

1 Refer to page 9 of the Directors(cid:182) Report for a definition and reconciliation of underlying EBIT. 

13   Premier Investments Limited

Throughout the past financial year we have expanded our footprint of retail stores overseas. At year(cid:16)end(cid:15) Premier 
Retail successfully and profitably operated 145 stores across Singapore(cid:15) England(cid:15) Scotland(cid:15) Wales(cid:15) Hong Kong(cid:15) 
Malaysia and the Republic of Ireland. Furthermore(cid:15) Premier Retail announced that it will further grow its European 
markets by entry into Continental Europe. The first stores will open in the Netherlands and Belgium in calendar year 
2018.   

Premier(cid:10)s remuneration strategies reflect this global reach(cid:15) and the highly competitive retail market. The report 
summarises our remuneration strategies(cid:15) the way in which incentives are calculated and the connection between 
those strategies and the achievement of positive returns for shareholders. 

In order to compete in an international pool of talent(cid:15) it is critical that Premier continue to entice(cid:15) incentivise and 
develop executives who can bring innovative and forward thinking strategies to the business. The Board is committed 
to supporting its high calibre key management personnel(cid:15) to ensure the strong financial returns en(cid:77)oyed by 
shareholders continue. 

Terrence McCartney 

Chairman(cid:15) Remuneration and Nomination Committee 

Annual Report 2017   14

Directors’ Report continued

REMUNERATION REPORT (AUDITED) 

This remuneration report for the 52 weeks ended 29 July 2017 outlines the remuneration arrangements of the Group 
in accordance with the re(cid:84)uirements of the Corporations Act 2001 (Cth)(cid:15) as amended (the (cid:179)Act(cid:180)) and its regulations. 
This information has been audited as re(cid:84)uired by section 308 (3C) of the Act.   

The remuneration report is presented under the following headings(cid:29)

1.

Introduction

2. Remuneration Governance

3. Executive remuneration arrangements(cid:29)(cid:16)

A. Remuneration principles and strategy

B. Approach to setting remuneration

C. Fixed remuneration ob(cid:77)ectives

D. Detail of incentive plans

4. Executive remuneration outcomes (including link to performance)

5. Remuneration of CEO Premier Retail(cid:15) Mr. McInnes

6. Executive service agreements

7. Non(cid:16)Executive Director remuneration arrangements

8. Remuneration of Key Management Personnel

9. Additional disclosures relating to Rights and Shares

10. Additional disclosure relating to transactions and balances with Key Management Personnel

1.

INTRODUCTION

The remuneration report details the remuneration arrangement for Key Management Personnel ((cid:179)KMP(cid:180)) who are 
defined as those persons having authority and responsibility for planning(cid:15) directing and controlling the ma(cid:77)or activities 
of the Group(cid:15) directly or indirectly(cid:15) including any director (whether executive or otherwise) of the Group. 

The table below outlines the Group(cid:182)s KMP during the 52 weeks ended 29 July 2017. Unless otherwise indicated(cid:15) the 
individuals were KMP for the entire financial year. 

KEY MANAGEMENT PERSONNEL 

(i) Non-Executive Directors

Mr. S. Lew

Dr. D. Crean

Chairman and Non(cid:16)Executive Director 

Deputy Chairman and Non(cid:16)Executive Director 

Mr. T. Antonie

Non(cid:16)Executive Director and Lead Independent Director 

Mr. L.E. Fox

Non(cid:16)Executive Director 

Ms. S. Herman

Non(cid:16)Executive Director 

Mr. H.D. Lanzer

Non(cid:16)Executive Director 

Mr. T.L. McCartney

Non(cid:16)Executive Director (appointed: 15 April 2016) 

Mr. M.R.I. McLeod

Non(cid:16)Executive Director 

Dr. G.H. Weiss

Non(cid:16)Executive Director 

15   Premier Investments Limited

(ii) Executive Director

Mr. M. McInnes

Executive Director and Chief Executive Officer Premier Retail 

(iii) Executives

Mr. K.F. Davis

Mr. J.S. Bryce

Company Secretary(cid:15) Premier Investments Limited  

Chief Financial Officer(cid:15) Just Group Limited (appointed: 13 December 2016)

Mr. A. Gardner

Chief Financial Officer(cid:15) Just Group Limited (ceased: 23 February 2016) 

Ms. C. Garnsey

Core Brand Director(cid:15) Just Group Limited (ceased: 7 August 2017)

Ms. N. Peck

Chief Financial Officer(cid:15) Just Group Limited (ceased: 23 June 2016) 

Other than as noted above(cid:15) there were no changes to the KMP after the reporting date and before the date the 
financial report was authorised for issue. 

2. REMUNERATION GOVERNANCE

Remuneration and Nomination Committee 

The Remuneration and Nomination Committee ((cid:179)Committee(cid:180)) of the Board of Directors of the Group ((cid:179)Board(cid:180)) comprises 
three Non(cid:16)Executive Directors. During the 2017 financial year(cid:15) Mr. Lanzer served as Chairman of the Committee. In 
August 2017(cid:15) Mr. McCartney assumed the role of Chairman. Mr. McCartney is an independent director and brings to the 
Committee many years of retail and business experience(cid:15) both as an advisor and director. Further details in relation to 
Mr. McCartney(cid:182)s background and expertise is set out in the annual report. 

Mr. McCartney(cid:182)s appointment ensures that the Committee is led by an independent Non(cid:16)Executive Director(cid:15) and that the 
ma(cid:77)ority of members are independent Non(cid:16)Executive Directors. This demonstrates an ongoing commitment to the 
independence of the Committee. The Committee has delegated decision(cid:16)making authority for some matters related to 
the remuneration arrangements for KMP and is re(cid:84)uired to make recommendations to the Board on other matters.  

Specifically(cid:15) the Board approves the remuneration arrangements of the Chief Executive Officer Premier Retail ((cid:179)CEO 
Premier Retail(cid:180)) and other executives(cid:15) including awards made under the short term incentive ((cid:179)STI(cid:180)) and long term 
incentive ((cid:179)LTI(cid:180)) plans(cid:15) following recommendations from the Committee. The Board also sets the aggregate 
remuneration for Non(cid:16)Executive Directors (which is sub(cid:77)ect to shareholder approval) and Non(cid:16)Executive Director fee 
levels. The Committee approves(cid:15) having regard to recommendations made by the CEO Premier Retail(cid:15) the level of the 
Group STI pool. 

The Committee meets regularly. The CEO Premier Retail attends certain Committee meetings by invitation(cid:15) where 
management input is re(cid:84)uired. The CEO Premier Retail is not present during discussions relating to his own 
remuneration arrangements. 

Further information relating to the Committee(cid:182)s role(cid:15) responsibilities and membership can be seen at 
www.premierinvestments.com.au. 

Use of remuneration advisors 

The Committee seeks(cid:15) from time to time(cid:15) external remuneration advice to ensure it is fully informed when making 
remuneration decisions. Remuneration advisors are engaged by(cid:15) and report directly to(cid:15) the Committee. 

During the 2016 financial year(cid:15) the Committee approved the engagement of Egan Associates to review Mr. McInnes(cid:182) 
remuneration arrangements.  

Annual Report 2017   16

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

3. E(cid:59)ECUTIVE REMUNERATION ARRANGEMENTS

3A. Remuneration principles and strategy 

The Group(cid:182)s executive remuneration strategy is designed to attract(cid:15) motivate and retain high performing individuals(cid:15) 
and align the interests of executives with shareholders. 

The Group operates mainly in the retail industry(cid:15) with significant revenues earned in its traditional markets of Australia 
and New (cid:61)ealand. The retail industry in these markets has seen marked structural change over recent years(cid:15) including 
a prevalence in the use of new and existing technology(cid:15) an increase in international competitors and significant 
changes in general consumer sentiment. 

Complementing its strong market position in Australia and New (cid:61)ealand(cid:15) the Group has significantly increased its 
revenues from international markets including Singapore(cid:15) England(cid:15) Scotland(cid:15) Wales(cid:15) the Republic of Ireland(cid:15) Hong 
Kong and Malaysia. The Group is committed to growing its existing international presence whilst also exploring 
expansion into new geographies. The Group recently announced its further expansion into Continental Europe(cid:15) with 
the first stores set to open in the Netherlands and Belgium in calendar year 2018. 

The market for skilled and experienced executives in the retail industry continues to be increasingly competitive and 
international in nature. The Group(cid:182)s strong domestic position(cid:15) as well as global reach(cid:15) provides exposure to an 
international pool of talent and access to a diverse range of strategies to respond to industry changes. 

Given these structural changes and the Group(cid:182)s growing international business(cid:15) the Board believes it is both critical to 
the future success of the business(cid:15) and in the best interest of shareholders(cid:15) to attract(cid:15) retain and develop the best 
possible executive team through the provision of competitive remuneration packages(cid:15) and incentive arrangements 
which are aligned to growth and performance. 

The Group(cid:182)s strategic ob(cid:77)ective is to be recognised as a leader in the retail industry and build long term value for 
shareholders. It seeks to do this in the following ways(cid:29) 

(cid:51)(cid:53)(cid:40)M(cid:44)(cid:40)(cid:53) (cid:53)(cid:40)(cid:55)(cid:36)(cid:44)L (cid:55)(cid:53)(cid:36)(cid:49)S(cid:41)(cid:50)(cid:53)M(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) S(cid:55)(cid:53)(cid:36)(cid:55)(cid:40)(cid:42)(cid:60) (cid:177) (cid:50)(cid:56)(cid:53) (cid:41)(cid:50)C(cid:56)S (cid:50)(cid:49) (cid:42)(cid:53)(cid:50)(cid:58)(cid:55)(cid:43) (cid:36)(cid:49)D 
(cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)M(cid:40)(cid:49)(cid:55) 

(cid:42)(cid:53)(cid:50)(cid:58)(cid:55)(cid:43) 

C(cid:50)(cid:53)(cid:40) 

 Grow Smiggle significantly

 Gross margin expansion program

 Grow Peter Alexander significantly

 Re(cid:77)uvenation of core apparel brands

 Expansion and growth of online businesses

 Organisation(cid:16)wide cost efficiency program

The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall 
performance and success of the Group. This section(cid:15) and in particular the diagram on the following page(cid:15) illustrates 
this link between the Group(cid:182)s strategic ob(cid:77)ective and its executive remuneration strategies. 

17   Premier Investments Limited

To be recognised as a leader in our industry and build long(cid:16)term value for our shareholders 

    (cid:42)ro(cid:88)(cid:83) (cid:50)(cid:69)(cid:77)e(cid:70)(cid:87)ive 

(cid:53)em(cid:88)nera(cid:87)ion (cid:86)(cid:87)ra(cid:87)e(cid:74)(cid:92) lin(cid:78)a(cid:74)e(cid:86) (cid:87)o (cid:42)ro(cid:88)(cid:83) o(cid:69)(cid:77)e(cid:70)(cid:87)ive 

Align the interests of executives with  shareholders

 The  remuneration  framework  incorporates (cid:179)at(cid:16)
risk(cid:180) components(cid:15) through STI and LTI plans.

 Performance is assessed against a suite  of

financial and non(cid:16)financial measures relevant
to the success of the Group and generate
returns for  shareholders.

Attract(cid:15) motivate and retain high performing 
individuals 



 Remuneration is competitive as compared to
companies of a similar size and complexity.
Longer(cid:16)term remuneration frameworks and
(cid:179)at(cid:16)risk(cid:180) components encourage  retention(cid:15)
development and a multi(cid:16)year performance
focus.

Com(cid:83)onen(cid:87)

(cid:57)e(cid:75)i(cid:70)le

(cid:51)(cid:88)r(cid:83)o(cid:86)e

Lin(cid:78) (cid:87)o   (cid:83)er(cid:73)orman(cid:70)e

To provide competitive 
fixed remuneration with 
reference to the applicable 
role(cid:15) market and relevant 
executive(cid:182)s experience. 

Both the executive(cid:182)s performance(cid:15) 
and the performance of the Group(cid:15) 
are considered during regular 
remuneration reviews.

Comprises 
base  salary(cid:15) 
superannuation 
contributions 
and other  
benefits 

Awarded in 
cash 

Fixed
remuneration 

STI

LTI

Rewards executives for 
their contribution to 
achievement of Group and 
business unit annual 
outputs and performance 
outcomes. 

Awarded in 
performance 
rights 

Rewards executives for 
their contribution to the 
creation of shareholder 
value over the long term.

Discretionary
Bonus 

Awarded in 
cash or 
performance 
rights 

Rewards executives in 
exceptional circumstances 
linked to long term 
shareholder outcomes. 

Key financial metrics based 
primarily on Premier Retail(cid:182)s 
underlying earnings before interest 
and taxation ((cid:179)EBIT(cid:180)) of each 
business unit(cid:15) as well as a suite of 
other internal financial and non(cid:16)
financial measures. 

Vesting of performance rights is 
dependent on both a positive total 
shareholder return ((cid:179)TSR(cid:180)) for the 
Group and testing against the 
Comparison Peer Group (defined in 
Section 3D of this report). 

Granted at the discretion of the 
Board upon recommendation of the 
Committee in exceptional 
circumstances(cid:15) and when in the 
best interests of the Group.   

No discretionary bonuses were 
made during the 2017 or 2016 
financial years.  

Annual Report 2017   18

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

3. E(cid:59)ECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)

3B. Approach to setting remuneration 

For the 52 weeks ended 29 July 2017(cid:15) the executive remuneration framework comprised of fixed remuneration(cid:15) STI 
and LTI(cid:15) as outlined below. Details of Mr. McInnes(cid:182) remuneration are provided in section 5 of this report. 

The Group aims to reward executives with a competitive level and mix of remuneration appropriate to their position and 
responsibilities(cid:15) and linked to shareholder value creation. 

3C. Fixed remuneration objectives 

Fixed remuneration is reviewed by the Committee. The process consists of a review of the Group(cid:15) applicable business 
unit and executive(cid:182)s individual performance(cid:15) relevant comparative remuneration (both externally and internally) and(cid:15) 
where appropriate(cid:15) external advice. The Committee has access to external advice independent of management. 

3D. Detail of incentive plans 

Short term incentive (“STI”) 

The Group operates an annual STI program which is awarded sub(cid:77)ect to the attainment of clearly defined financial and 
non(cid:16)financial Group and business unit measures.  

(cid:58)(cid:75)o (cid:83)ar(cid:87)i(cid:70)i(cid:83)a(cid:87)e(cid:86)(cid:34) 

Executives who have served a minimum of nine months. 

(cid:43)ow i(cid:86) S(cid:55)(cid:44) delivered(cid:34) 

Cash. 

(cid:58)(cid:75)a(cid:87) i(cid:86) (cid:87)(cid:75)e S(cid:55)(cid:44) 
o(cid:83)(cid:83)or(cid:87)(cid:88)ni(cid:87)(cid:92)(cid:34) 

Executives have a STI opportunity of between 0(cid:8) and 100(cid:8) of their fixed 
remuneration. 

(cid:58)(cid:75)a(cid:87) are (cid:87)(cid:75)e a(cid:83)(cid:83)li(cid:70)a(cid:69)le 
(cid:73)inan(cid:70)ial (cid:83)er(cid:73)orman(cid:70)e 
mea(cid:86)(cid:88)re(cid:86)(cid:34) 

STI payments awarded to each executive are explicitly aligned to the key 
value drivers of Premier Retail(cid:15) such that rewards will only be payable when 
the following criteria have been met(cid:29) 









budgeted EBIT of Premier Retail has been achieved and an incentive pool
has been created(cid:30)

the executive receives a performance appraisal on target or above(cid:30)

the executive(cid:182)s minimum performance outcomes have been achieved
(hurdle)(cid:30) and

the executive(cid:182)s key performance indicators ((cid:179)KPIs(cid:180)) have been met
((cid:84)ualifiers).

The financial performance measures are chosen with reference to the 
strategic ob(cid:77)ective to promote both short term success and provide a 
framework for delivering long term value.  

The hurdle criteria are designed to ensure STI outcomes are aligned to the 
creation of shareholder value. If the hurdles are not met(cid:15) the STI is not 
payable. 

The (cid:84)ualifier criteria aligns the individual activities and focus of the executive 
to shareholder value.  Each executive is set multiple KPIs covering financial(cid:15) 
non(cid:16)financial(cid:15) Group and business unit measures of performance. The KPIs 
are (cid:84)uantifiable and weighted according to their value. 

The budgeted EBIT for each year is expected to incorporate growth on the 
previous year. As such(cid:15) in a year in which STI payments are made(cid:15) 
executives must exceed the actual result in the prior year to achieve an STI 
in the following year. This mechanism ensures the STI scheme continues to 
build shareholder returns over time. 

19   Premier Investments Limited

(cid:58)(cid:75)a(cid:87) are (cid:87)(cid:75)e a(cid:83)(cid:83)li(cid:70)a(cid:69)le 
non(cid:16)(cid:73)inan(cid:70)ial 
(cid:83)er(cid:73)orman(cid:70)e 
mea(cid:86)(cid:88)re(cid:86)(cid:34)

The award of a STI is also dependent on the executive achieving individual 
aligned non(cid:16)financial performance indicators(cid:15) such as(cid:29) 

retention of existing customers through outstanding customer service(cid:30)
implementation of key growth initiatives(cid:30)



 demonstrated focus on a continuous improvement in safety performance(cid:30)

(cid:43)ow i(cid:86) (cid:83)er(cid:73)orman(cid:70)e 
a(cid:86)(cid:86)e(cid:86)(cid:86)ed(cid:34)

and

 demonstrated focus on the growth and development of leadership

and team talent to encourage leadership succession.

After the end of the financial year(cid:15) following consideration of the financial and 
non(cid:16)financial performance indicators(cid:15) the Committee obtains input from the 
CEO Premier Retail in relation to the amount of STI to be paid to eligible 
executives.  
The Committee then provides its recommendations to the Just Group Board 
for approval. The provision of any STI payments is sub(cid:77)ect to the sole 
discretion of the Chairman. 

Long-term incentive (“LTI”) 

The Group(cid:182)s LTI plan seeks to create shareholder value over the long term by aligning executive remuneration with the 
Group(cid:182)s strategic ob(cid:77)ectives. 

Generally(cid:15) LTI performance rights are granted annually and are eligible to vest three years from the date of the grant(cid:15) 
with the exception of rights awarded to Mr. McInnes as well as the rights granted to Ms. Garnsey during the 2013 
financial year. 

In respect to Ms. Garnsey(cid:15) the performance rights issued to her on 18 April 2013 were issued to replace vesting 
performance rights that she was entitled to in her previous employment. These performance rights were eligible to vest 
in three tranches on 20 June 2015(cid:15) 20 June 2016 and 20 June 2017.  

Annual Report 2017   20

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

3. E(cid:59)ECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)

3D. Detail of incentive plans (continued) 

Long-term incentive (“LTI”) (continued) 

(cid:58)(cid:75)o (cid:83)ar(cid:87)i(cid:70)i(cid:83)a(cid:87)e(cid:86)(cid:34) 

Executives. 

(cid:43)ow i(cid:86) L(cid:55)(cid:44) delivered(cid:34) 

Performance rights. 

LTI rights awarded to each executive are sub(cid:77)ect to a two stage performance 
test (cid:16) an absolute and relative test (cid:16) based on the Group(cid:182)s TSR. Broadly(cid:15) 
TSR is the percentage growth achieved from an investment in ordinary 
shares over the relevant testing period (assuming all dividends are 
reinvested).  

The two stage performance measure approach ensures that the LTI plan 
operates as a key driver for performance whilst also providing an incentive to 
executives. 

The absolute test re(cid:84)uires the Group to achieve a positive TSR over the 
testing period.  If the TSR is negative over the testing period(cid:15) then the 
performance rights lapse. 

If the TSR is positive over the testing period(cid:15) the relative test is undertaken(cid:15) 
which compares the Group(cid:182)s TSR with the S&P(cid:18)AS(cid:59)200 excluding overseas 
and resource companies ((cid:179)Comparison Peer Group(cid:180)). The Comparison Peer 
Group was chosen to reflect the Group(cid:182)s competitors for both capital and 
talent. 

The Group(cid:182)s performance against the Comparison Peer Group measure is 
determined according to its ranking against the Comparison Peer Group 
over the performance period. The vesting schedule is as follows(cid:29) 

(cid:55)ar(cid:74)e(cid:87) 

Conver(cid:86)ion ra(cid:87)io o(cid:73) ri(cid:74)(cid:75)(cid:87)(cid:86) (cid:87)o 
(cid:86)(cid:75)are(cid:86) availa(cid:69)le (cid:87)o ve(cid:86)(cid:87) (cid:88)nder (cid:87)(cid:75)e 
(cid:55)S(cid:53) (cid:83)er(cid:73)orman(cid:70)e (cid:70)ondi(cid:87)ion 

Below 50th percentile
50th percentile 

Between 50th and 62.5th percentile 

62.5th percentile
Between 62.5th and 75th percentile 

75th percentile and above 

0(cid:8) 

25(cid:8) 

Pro Rata

50(cid:8)

Pro Rata

100(cid:8) 

The absolute test was introduced to ensure that shareholders and 
executives are aligned in the goal of absolute wealth creation. The relative 
test was introduced to provide alignment between comparative shareholder 
return and reward for executives. 

The Group considers the suitability of the above performance conditions on 
an annual basis. 

TSR performance is calculated by an independent external advisor at the 
end of each performance period. 
Section 9 of this report(cid:15) titled (cid:179)Additional disclosures relating to rights and 
shares(cid:180)(cid:15) provides details of performance rights granted(cid:15) vested(cid:15) exercised 
and lapsed during the year.

(cid:58)(cid:75)a(cid:87) were (cid:87)(cid:75)e 
(cid:83)er(cid:73)orman(cid:70)e mea(cid:86)(cid:88)re(cid:86) 
(cid:73)or (cid:87)(cid:75)e (cid:21)(cid:19)(cid:20)(cid:26) and (cid:21)(cid:19)(cid:20)(cid:25) 
(cid:73)inan(cid:70)ial (cid:92)ear(cid:86)(cid:34)

(cid:43)ow i(cid:86) (cid:83)er(cid:73)orman(cid:70)e 
a(cid:86)(cid:86)e(cid:86)(cid:86)ed(cid:34)

21   Premier Investments Limited

(cid:58)(cid:75)en doe(cid:86) (cid:87)(cid:75)e L(cid:55)(cid:44) 
ve(cid:86)(cid:87)(cid:34) 

Generally(cid:15) the performance rights will vest over a period of three years 
sub(cid:77)ect to meeting performance measures.  The testing periods for the rights 
issued to Ms. Garnsey during the 2013 financial year are detailed in section 
3D ((cid:179)Detail of incentive plans(cid:180)) of this report. 

The performance rights issued in the 2017 and 2016 financial years have no 
opportunity to re(cid:16)test.  

(cid:43)ow are (cid:74)ran(cid:87)(cid:86) (cid:87)rea(cid:87)ed 
on (cid:87)ermina(cid:87)ion(cid:34) 

Generally(cid:15) all outstanding unvested rights are forfeited upon an executive 
resigning from the Group.  

Ma(cid:92) (cid:83)ar(cid:87)i(cid:70)i(cid:83)an(cid:87)(cid:86) en(cid:87)er 
in(cid:87)o (cid:75)ed(cid:74)in(cid:74) 
arran(cid:74)emen(cid:87)(cid:86)(cid:34) 

Executives are prohibited from entering into transactions to hedge or limit 
the economic risk of the securities allocated to them under the LTI scheme(cid:15) 
either before vesting or after vesting while the securities are held sub(cid:77)ect to 
restriction. Executives are only able to hedge securities that have vested but 
continue to be sub(cid:77)ect to a trading restriction and a seven(cid:16)year lock(cid:15) with the 
prior consent of the Board. 

No employees have any hedging arrangements in place. 

(cid:36)re (cid:87)(cid:75)ere re(cid:86)(cid:87)ri(cid:70)(cid:87)ion(cid:86) 
on di(cid:86)(cid:83)o(cid:86)al(cid:86)(cid:34) 

Once rights have been allocated(cid:15) disposal of performance shares is sub(cid:77)ect 
to restrictions whereby Board approval is re(cid:84)uired to sell shares granted 
within seven years under the LTI plan. 

Do (cid:83)ar(cid:87)i(cid:70)i(cid:83)an(cid:87)(cid:86) re(cid:70)eive 
di(cid:86)(cid:87)ri(cid:69)(cid:88)(cid:87)ion(cid:86) or 
dividend(cid:86) on (cid:88)nve(cid:86)(cid:87)ed 
L(cid:55)(cid:44) (cid:74)ran(cid:87)(cid:86)(cid:34) 

Participants do not receive distributions or dividends on unvested LTI 
grants. 

Annual Report 2017   22

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

4. E(cid:59)ECUTIVE REMUNERATION OUTCOMES (INCLUDING LINK TO PERFORMANCE)

Group performance and its link to STI 

STI payment outcomes are primarily driven by Premier Retail(cid:182)s underlying EBIT growth. The following chart shows 
Premier Retail(cid:182)s underlying EBIT for the seven years since the appointment of Mr. McInnes as CEO Premier Retail. 

Premier Retail Underlying EBIT

$136.0

$126.7

$105.7

$92.8

$80.4

$83.7

$65.3

 $140.0

 $120.0

 $100.0

 $80.0

 $60.0

 $40.0

 $20.0

 $-

FY11

FY12

FY13

FY14

FY15

FY16

FY17

$'millions

* FY16 Underlying EBIT represents a comparable 52 week period.

Note: The term underlying EBIT is not an IFRS defined term. Please refer to page 9 for a reconciliation between underlying EBIT and 

statutory reported operating profit before tax for the Retail Segment. 

Performance compared to STI payments made during the financial years ended 29 July 2017 and 30 July 2016 

STI payments to Ms. Garnsey

Ms. Garnsey was provided with an STI payment of (cid:7)300(cid:15)000 in both the 2016 and 2017 financial years(cid:15) in line with the 
hurdles and (cid:84)ualifiers relating to her STI plan. This included the achievement of Premier Retail underlying EBIT and 
the achievement of hurdles and (cid:84)ualifiers for specific brands for both the 2015 and 2016 financial years. 

STI payment to Mr. Bryce 

During the 2017 financial year(cid:15) an STI payment of (cid:7)50(cid:15)000 was paid to Mr. Bryce in line with the hurdles and (cid:84)ualifiers 
relating to his 2016 financial year STI plan. This included the achievement of Premier Retail underlying EBIT.  

23   Premier Investments Limited

Group performance and its link to LTI 

The performance measure which drives LTI vesting is dependent on an absolute test(cid:15) being a positive Group TSR 
performance and a relative test(cid:15) being a comparison against the Comparison Peer Group (as defined in section 3D of 
this report).  

The table below illustrates the outcomes of the TSR testing performed during the 2016 and 2017 financial years in 
relation to KMP(cid:29) 

(cid:55)e(cid:86)(cid:87)in(cid:74) (cid:51)eriod 

S(cid:75)are (cid:83)ri(cid:70)e 
a(cid:87) (cid:86)(cid:87)ar(cid:87) o(cid:73) 
(cid:87)e(cid:86)(cid:87)in(cid:74) 
(cid:83)eriod 

S(cid:75)are (cid:83)ri(cid:70)e 
a(cid:87) end o(cid:73) 
(cid:87)e(cid:86)(cid:87)in(cid:74) 
(cid:83)eriod 

Dividend(cid:86) 
(cid:83)aid

(cid:55)S(cid:53) 
(cid:83)er(cid:70)en(cid:87)a(cid:74)e 

(cid:55)S(cid:53) 
(cid:83)er(cid:70)en(cid:87)ile 

(cid:49)(cid:88)m(cid:69)er o(cid:73) 
(cid:51)er(cid:73)orman(cid:70)e 
(cid:53)i(cid:74)(cid:75)(cid:87)(cid:86) 
(cid:87)e(cid:86)(cid:87)ed (cid:73)or 
(cid:46)M(cid:51) 

1 Oct 2012 to 30 Sept 2015 

(cid:7)5.76 

(cid:7)12.85 

24 Mar 2011 to 3 Apr 2016 

(cid:7)5.91 

(cid:7)16.61 

19 Jun 2012 to 19 Jun 2016 

(cid:7)4.49 

(cid:7)14.69 

4 Apr 2014 to 4 Apr 2017 

(cid:7)9.95 

(cid:7)13.83 

19 Jun 2012 to 19 Jun 2017 

(cid:7)4.49 

(cid:7)12.90 

(cid:7)1.26 fully 
franked 

(cid:7)2.01 fully 
franked

(cid:7)1.70 fully 
franked 

(cid:7)1.39 fully 
franked 

(cid:7)2.21 fully 
franked 

155.3(cid:8) 

93rd 

95(cid:15)321 

271.7(cid:8) 

95th  

300(cid:15)000(cid:13) 

287.2(cid:8) 

97th 

80(cid:15)000 

62.80(cid:8) 

74th  

250(cid:15)000(cid:13) 

248.70(cid:8) 

90th  

80(cid:15)000 

* Relates to Mr. McInnes, refer to section 5 of this report.

The below chart shows the Premier Total Shareholder Return (TSR) against the S&P(cid:18)AS(cid:59)200 Index(cid:15) from 4 April 2011 
to 29 July 2017(cid:29)  

Premier Investments Limited TSR against the ASX200 
Index from 4 April 2011 to 29 July 2017

25.00

20.00

15.00

10.00

5.00

–

+175%

+54%

Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

PMV

ASX 200

Annual Report 2017   24

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

5. REMUNERATION OF CEO PREMIER RETAIL, MR. MCINNES

Mr. McInnes’ fixed remuneration 

Mr. McInnes’ annual fixed remuneration increased from $2,000,000 to $2,500,000, effective from the beginning of the 
2016 financial year. This was Mr. McInnes’ first increase in fixed remuneration since joining the Group in 2011. 

Mr. McInnes’ notice period 

Upon cessation of his employment, Mr. McInnes is entitled to 12 months’ notice (“Notice Period”) if he resigns, or is 
terminated by Premier for any reason other than for serious misconduct, or for conduct otherwise giving rise to an 
entitlement at law to summarily dismiss (“Terminated Without Cause”). 

During the Notice Period, Premier may direct Mr. McInnes to continue in his role, perform no duties, reduced duties or 
alternative duties during the Notice Period, or elect to provide Mr. McInnes with payment in lieu of the Notice Period. 
The maximum amount of any payment in lieu of the Notice Period based on Mr. McInnes’ current fixed remuneration is 
$2,500,000 gross, less applicable tax.  

If Mr. McInnes is terminated for serious misconduct or Premier is otherwise entitled at law to summarily dismiss Mr. 
McInnes (“Terminated for Cause”), Premier may terminate Mr. McInnes’ employment without providing a Notice Period. 

Mr. McInnes’ STI payments during the financial years ended 29 July 2017 and 30 July 2016 

During the 2017 financial year, an STI payment of $2,500,000 was made to Mr. McInnes which primarily reflected the 
significant growth achieved in Premier Retail’s EBIT for the 2016 financial year. 

During the 2016 financial year, an STI payment of $2,000,000 was made to Mr. McInnes which primarily reflected the 
significant growth achieved in Premier Retail’s EBIT for the 2015 financial year.  

The historical growth in Premier Retail’s underlying EBIT is detailed in the graph in section 4 of this report. 

Mr. McInnes’ STI payment for the 2017 financial year is likely to be a payment based upon the performance target of 
EBIT growth between 5% and 10% of the Base Year and will be finalised in December 2017.  

Mr. McInnes’ STI arrangements  

Mr. McInnes is entitled to receive a STI if the applicable performance targets and conditions set out below are met. 

Calculation of Mr. McInnes’ STI is based on growth of Premier Retail EBIT, as compared to the previous financial year 
(“Base Year”). The relevant performance targets and corresponding STI payment amounts are as follows: 

EBIT growth less than 5% of Base Year 

No payment. 

EBIT growth of 5% of Base Year 

$1,250,000. 

EBIT growth between 5% and 10% of Base Year 

EBIT growth of above 10% of Base Year 

$1,250,000 plus a pro rata payment based on the % of the 
EBIT growth above 5%, up to a maximum of $2,500,000 
for 10% EBIT growth.  

If Mr. McInnes considers that any additional payment is 
warranted based on EBIT growth of above 10%, he may 
make a request for an additional payment to the Chairman 
of Premier. The Chairman may determine whether or not 
to make any such payment in his sole and absolute 
discretion within 30 days of receiving any such request. 

The maximum payment that Mr. McInnes may receive under the current STI scheme is $2,500,000, unless the 
Chairman decides to make an additional payment in his absolute discretion to reward EBIT growth of above 10%. The 
Chairman has not used such discretion during the 2016 or 2017 financial years.   

25   Premier Investments Limited

The Chairman has absolute discretion to make an additional STI payment if Mr. McInnes would not otherwise be 
entitled to such a payment under the above table. 

The amount that Mr. McInnes may receive under the STI scheme in connection with him ceasing employment (for 
reasons other than being Terminated for Cause) will depend on the financial year in which the Notice Period ends and 
will be calculated in accordance with the above table (on a pro rata basis for part of a financial year if the Notice Period 
ends part way through a financial year).

If Mr. McInnes resigns from his employment(cid:15) or is Terminated Without Cause(cid:15) he remains entitled to continue 
participating in the STI scheme until the end of the Notice Period.

This entitlement will not be impacted by any election by Premier to direct Mr. McInnes to continue in his role(cid:15) to perform 
no duties(cid:15) reduced duties or alternative duties during the Notice Period(cid:15) or to provide Mr. McInnes with a payment in 
lieu of the Notice Period. 

If Mr. McInnes(cid:182) employment is Terminated for Cause(cid:15) he is not entitled to participate in the STI scheme for the financial 
year in which his employment ceases(cid:15) or any following financial year. 

Payment of a STI upon Mr. McInnes(cid:182) cessation of employment may be considered a termination benefit within the 
meaning of Part 2D.2 of the Act. 

Mr. McInnes’ LTI arrangements 

Mr. McInnes is entitled to 1(cid:15)000(cid:15)000 performance rights split into four e(cid:84)ual tranches. The performance rights were 
granted at no cost to Mr. McInnes and(cid:15) conditional on the performance hurdles being met(cid:15) the performance rights will 
be exercisable at no cost.   

Shareholders approved the right of the Group to issue the 1(cid:15)000(cid:15)000 performance rights to Mr. McInnes at the 2015 
Annual General Meeting of shareholders held on 27 November 2015.  The rules pertaining to this grant were approved 
by shareholders at the Extraordinary General Meeting of shareholders held on 15 June 2016.

The performance rights granted will vest in four e(cid:84)ual tranches sub(cid:77)ect to the achievement of both an absolute and 
relative TSR test. No value will be received by Mr. McInnes if the performance rights lapse prior to the vesting date.

Each tranche of performance rights will be tested against the TSR performance measure over different testing periods(cid:15) 
as follows(cid:29)  









Tranche A (cid:177) 4 April 2014 to 4 April 2017  (Tested, see further details provided in Section 5)

Tranche B (cid:177) 4 April 2014 to 4 April 2018

Tranche C (cid:177) 4 April 2014 to 4 April 2019

Tranche D (cid:16) 4 April 2014 to 4 April 2020

(each date being a (cid:179)Vesting Date(cid:180)).

The share price baseline for each tranche is (cid:7)9.88(cid:15) which was the volume weighted average share price ((cid:179)VWAP(cid:180)) of 
the ordinary shares on AS(cid:59) for the five trading days prior to 4 April 2014. Premier(cid:182)s TSR will be calculated based on 
the percentage growth achieved from the share price baseline of (cid:7)9.88 to the share price on the relevant Vesting Date 
(calculated by the VWAP of the ordinary shares on AS(cid:59) for the five trading days prior to the relevant Vesting Date).  

The first stage absolute test re(cid:84)uires that the TSR over the testing period is positive.   

If the TSR is positive(cid:15) the second stage relative test re(cid:84)uires the TSR to be assessed against the relative performance 
of the Comparison Peer Group. 

Annual Report 2017   26

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

5. REMUNERATION OF CEO PREMIER RETAIL(cid:15) MR. MCINNES (CONTINUED)

Mr. McInnes’ LTI arrangements (continued)

The relative TSR performance targets and the corresponding vesting percentages are as follows(cid:29)

(cid:55)ar(cid:74)e(cid:87) 

Below the 50th percentile 

50th percentile 

Conver(cid:86)ion ra(cid:87)io o(cid:73) (cid:83)er(cid:73)orman(cid:70)e ri(cid:74)(cid:75)(cid:87)(cid:86) (cid:87)o (cid:86)(cid:75)are(cid:86) 
availa(cid:69)le (cid:87)o ve(cid:86)(cid:87) (cid:88)nder (cid:87)(cid:75)e (cid:55)S(cid:53) (cid:83)er(cid:73)orman(cid:70)e (cid:70)ondi(cid:87)ion(cid:29)  

0(cid:8) 

25(cid:8) 

Between 50th and  62.5th percentile 

Pro rata 

62.5th  percentile 

Between 62.5th and  75th percentile 

75th percentile and above 

50(cid:8) 

Pro rata 

100(cid:8) 

Premier(cid:182)s TSR and ranking within the Comparison Peer Group for each testing period will be assessed by an external 
independent advisor.  

The performance rights under each tranche lapse if the applicable performance hurdles are not met (unless otherwise 
determined by the Board in its absolute discretion). 

If in any year Mr. McInnes has satisfied all performance conditions(cid:15) other than the TSR being positive(cid:15) and would 
otherwise have been entitled to vesting of any performance rights(cid:15) the Chairman may(cid:15) in his sole and absolute 
discretion(cid:15) elect to enable some or all of the applicable performance rights to vest if circumstances (cid:77)ustify such an 
award. 

If Mr. McInnes resigns(cid:15) or is Terminated Without Cause(cid:15) he will be entitled to continue to participate in the LTI plan until 
the end of his Notice Period(cid:15) regardless of any election by Premier to direct Mr. McInnes to continue in his role(cid:15) to 
perform no duties(cid:15) reduced duties or alternative duties during the Notice Period(cid:15) or to provide Mr. McInnes with a 
payment in lieu of the Notice Period. 

If Mr. McInnes(cid:182) employment is Terminated for Cause(cid:15) he is not entitled to participate in the LTI plan for the financial 
year in which his employment ceases(cid:15) or any following financial year. 

If Mr. McInnes resigns(cid:15) or is Terminated Without Cause(cid:15) and the final day of the Notice Period is within 14 days prior to 
a Vesting Date(cid:15) Mr. McInnes remains entitled to have the performance rights tested against the TSR performance 
measure on the Vesting Date ((cid:179)Special Vesting(cid:180)). 

The Special Vesting terms will be effective regardless of any election by Premier to direct Mr. McInnes to continue in
his role(cid:15) to perform no duties(cid:15) reduced duties or alternative duties during the Notice Period(cid:15) or to provide Mr. McInnes 
with a payment in lieu of the Notice Period. 

Provision of a LTI upon Mr. McInnes(cid:182) cessation of employment may be considered a termination benefit within the 
meaning of Part 2D.2 of the Act. 

27   Premier Investments Limited

Shares issued as a result of vesting of performance rights issued to Mr McInnes for the financial years ended 29 July
2017 and 30 July 2016

During the 2017 financial year(cid:15) a tranche of 250(cid:15)000 performance rights (being Tranche A) were tested for the period 4 
April 2014 to 4 April 2017. The TSR over this period was 62.80(cid:8)(cid:15) placing Premier in the 74th percentile of the Comparison 
Peer Group. Details of this test have been presented in Section 4 of this report. The testing resulted in 94.7(cid:8) of the 
performance rights (cid:84)ualifying for vesting into 236(cid:15)800 newly issued shares in April 2017. 

During the 2016 financial year(cid:15) a tranche of 300(cid:15)000 performance rights were tested for the period 24 March 2011 to  
3 April 2016. These performance rights were issued to Mr. McInnes on his original appointment in April 2011. The TSR 
over this period was 271.7(cid:8) placing Premier in the 95th percentile of the Comparison Peer Group.   Details of this test 
have been presented in Section 4 of this report.  The testing resulted in 100(cid:8) of performance rights (cid:84)ualifying for 
vesting into 300(cid:15)000 newly issued shares in April 2016. In addition(cid:15) 100(cid:15)000 performance rights vested into 100(cid:15)000 
newly issued shares in March 2016 as a result of the fulfilment of an additional 12 month retention clause on 
performance rights that were tested for the period 24 March 2011 to 3 April 2015. 

Mr. McInnes’ post-employment restrictions

If Mr. McInnes resigns(cid:15) or is Terminated Without Cause(cid:15) Premier may elect to restrict Mr. McInnes from certain conduct 
in competition with Premier for a period of either 12 months or 24 months from the end of the Notice Period ((cid:179)Post(cid:16)
employment Restrictions(cid:180)). 

If Premier elects to enforce the Post(cid:16)employment Restrictions(cid:15) it is re(cid:84)uired to provide Mr. McInnes with his total fixed 
remuneration during the relevant period (up to a maximum period of 24 months). If Premier elects to enforce the Post(cid:16)
employment Restrictions for 24 months(cid:15) Mr. McInnes would receive a total of (cid:7)5(cid:15)000(cid:15)000 gross(cid:15) less applicable tax. If 
Premier elects to enforce the Post(cid:16)employment Restrictions for 12 months(cid:15) Mr. McInnes would receive a total of 
(cid:7)2(cid:15)500(cid:15)000 gross(cid:15) less applicable tax. 

Premier(cid:182)s ability to enforce the Post(cid:16)employment Restrictions will not be impacted by any election by Premier to direct 
Mr. McInnes to continue in his role(cid:15) perform no duties(cid:15) reduced duties or alternative duties during the Notice Period(cid:15) or 
to provide Mr. McInnes with a payment in lieu of the Notice Period. 

If Mr. McInnes(cid:182) employment is Terminated for Cause(cid:15) Premier may elect to enforce the Post(cid:16)employment Restrictions 
from the date on which his employment is terminated (as no Notice Period will be provided). 

The payments outlined above may be considered a termination benefit within the meaning of Part 2D.2 of the Act. 

Termination benefits 

The STI(cid:15) LTI and Post(cid:16)employment Restriction payments and benefits outlined above may be considered termination 
benefits within the meaning of Part 2D.2 of the Act. 

At an Extraordinary General Meeting held on 15 June 2016(cid:15) shareholders approved these potential termination 
benefits for the purposes of Part 2D.2 of the Act. 

Annual Report 2017   28

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

6. E(cid:59)ECUTIVE SERVICE AGREEMENTS

Remuneration and other terms of employment for KMP and other executives are formalised in written service 
agreements (with the exception of Mr. Davis(cid:15) whose relevant terms of employment are set out below). Material 
provisions of the service agreements are set out below(cid:29) 

(cid:55)ermina(cid:87)ion (cid:69)ene(cid:73)i(cid:87)(cid:86)

S(cid:87)ar(cid:87) 
da(cid:87)e 

(cid:55)erm o(cid:73) 
a(cid:74)reemen(cid:87) 

(cid:53)eview 
(cid:83)eriod 

(cid:49)o(cid:87)i(cid:70)e 
(cid:83)eriod 
re(cid:84)(cid:88)ired 
(cid:73)rom 
(cid:51)remier 

Mr. McInnes 

4 April 
2011 

Open 

Annual 

12 months 

Mr. Bryce 
(appointed: 13 
December 2016)

13 Dec 
2016 

Mr. Davis 

Ms. Garnsey
(ceased: 7 
August 2017)

17 Nov 
1993 

20 Sep 
2012 

Open 

Annual 

12 months 

Open 

Annual 

3 months 

Nil 

Open 

Annual 

12 months 

12 months 
fixed rem. 
including 
notice 

(cid:51)remier 
ini(cid:87)ia(cid:87)ed

12 months 
fixed rem. 
including 
notice 

12 months 
fixed rem. 
including 
notice 

(cid:56)(cid:83)on 
dimin(cid:88)(cid:87)ion 
o(cid:73) role 

Nil 

(cid:49)o(cid:87)i(cid:70)e 
(cid:83)eriod 
re(cid:84)(cid:88)ired 
(cid:73)rom 
em(cid:83)lo(cid:92)ee 

12 months 
fixed rem. 
including 
notice 

Nil 

12 months 

Nil 

Nil 

3 months

12 months 

7. NON(cid:16)E(cid:59)ECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS

Determination of fees and maximum aggregate Non-Executive Director Remuneration 

The Board seeks to set Non(cid:16)Executive Director fees at a level which provides the Group with the ability to attract and 
retain Non(cid:16)Executive Directors of the highest calibre(cid:15) whilst incurring a cost which is acceptable to shareholders. 

The Group(cid:182)s constitution and the AS(cid:59) listing rules specify that the Non(cid:16)Executive Director maximum aggregate 
remuneration shall be determined from time to time by a general meeting. The most recent determination of this kind 
was at the 2016 Annual General Meeting held on 2 December 2016 when shareholders approved an aggregate 
remuneration of an amount not exceeding (cid:7)1(cid:15)500(cid:15)000 per year.  

The Chairman of the Group(cid:15) consistent with his past practice(cid:15) has declined to accept any remuneration for his role as a 
director or for his role on any committees.

Fee policy 

Non(cid:16)Executive Director(cid:182)s fees consist of base fees and committee fees. The payment of committee fees recognises 
the additional time commitment re(cid:84)uired by Non(cid:16)Executive Directors who serve on Board committees.  

Non(cid:16)Executive Directors may be reimbursed for expenses reasonably incurred in attending to the Group(cid:182)s affairs. Non(cid:16)
Executive Directors do not participate in any incentive programs. Premier has not established any schemes for 
retirement benefits for Non(cid:16)Executive Directors (other than superannuation).

29   Premier Investments Limited

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(cid:22)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:51)
M
(cid:46)

3
2
9
5
1

(cid:15)

0
0
0
0
5
7

(cid:15)

(cid:16)

(cid:16)

3
2
9
5
1

(cid:15)

0
0
0
0
5
7

(cid:15)

3
2
9
5
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(cid:15)

0
0
0
0
5
7

(cid:15)

(cid:16)

(cid:16)

(cid:16)

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0
0
2
(cid:15)
3
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0
0
0
(cid:15)
0
8
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0
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(cid:15)
6
3
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(cid:16)

3
2
9
(cid:15)
5
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(cid:15)
0
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33   Premier Investments Limited

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
e)

Number of Shares held in Premier Investments Limited:

(cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 
(cid:22)(cid:19) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:25)
(cid:50)(cid:53)D(cid:44)(cid:49)(cid:36)(cid:53)(cid:60) 

S(cid:43)(cid:36)(cid:53)(cid:40) 
(cid:51)(cid:56)(cid:53)C(cid:43)(cid:36)S(cid:40) 
(cid:50)(cid:53)D(cid:44)(cid:49)(cid:36)(cid:53)(cid:60) 

S(cid:43)(cid:36)(cid:53)(cid:40)S 
(cid:36)C(cid:52)(cid:56)(cid:44)(cid:53)(cid:40)D 
(cid:56)(cid:49)D(cid:40)(cid:53) 
(cid:51)(cid:40)(cid:53)(cid:41)(cid:50)(cid:53)M(cid:36)(cid:49)C(cid:40) 
(cid:53)(cid:44)(cid:42)(cid:43)(cid:55)S (cid:51)L(cid:36)(cid:49) 
(cid:50)(cid:53)D(cid:44)(cid:49)(cid:36)(cid:53)(cid:60) 

(cid:49)(cid:40)(cid:55) C(cid:43)(cid:36)(cid:49)(cid:42)(cid:40) (cid:16)  
(cid:50)(cid:55)(cid:43)(cid:40)(cid:53) 
(cid:50)(cid:53)D(cid:44)(cid:49)(cid:36)(cid:53)(cid:60) 

(cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 
(cid:21)(cid:28) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:50)(cid:53)D(cid:44)(cid:49)(cid:36)(cid:53)(cid:60) 

4(cid:15)437(cid:15)699 

(cid:16) 

(cid:16) 

2(cid:15)577(cid:15)014 

8(cid:15)000 

27(cid:15)665 

(cid:16) 

28(cid:15)186 

6(cid:15)000 

(cid:16) 

(cid:16) 

(cid:16) 

120(cid:15)000

(cid:26)(cid:15)(cid:21)(cid:19)(cid:23)(cid:15)(cid:24)(cid:25)(cid:23) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:16)

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

236(cid:15)800 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:16) 

(cid:16) 

4(cid:15)437(cid:15)699 

(cid:16) 

(cid:16) 

2(cid:15)577(cid:15)014 

8(cid:15)000

27(cid:15)665 

(cid:16) 

28(cid:15)186 

6(cid:15)000 

236(cid:15)800

(cid:16) 

(cid:16) 

80(cid:15)000

(cid:22)(cid:20)(cid:25)(cid:15)(cid:27)(cid:19)(cid:19)

(40(cid:15)000) 

(cid:11)(cid:23)(cid:19)(cid:15)(cid:19)(cid:19)(cid:19)(cid:12) 

160(cid:15)000

(cid:26)(cid:15)(cid:23)(cid:27)(cid:20)(cid:15)(cid:22)(cid:25)(cid:23)

(cid:21)(cid:19)(cid:20)(cid:26) 

NON-EXECUTIVE 
DIRECTORS 

Mr. S. Lew (cid:13) 
Mr. T. Antonie 

Dr. D.M. Crean 

Mr. L.E. Fox 

Ms. S. Herman 

Mr. H.D. Lanzer 

Mr. T.L. McCartney 
Mr. M.R.I. McLeod 

Dr. G.H. Weiss 

EXECUTIVES 

Mr. M. McInnes

Mr. K.F. Davis 

Mr. J.S. Bryce 

Ms. C. Garnsey 

(cid:55)(cid:50)(cid:55)(cid:36)L 

(cid:13) Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The

Associated Entities(cid:15) collectively(cid:15) have a relevant interest in 59(cid:15)804(cid:15)731 (2016(cid:29) 59(cid:15)804(cid:15)731) shares in the company.

However(cid:15) Mr. Lew does not have a relevant interest in the shares in the company held by the Associated Entities.

10. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KEY

MANAGEMENT PERSONNEL

Details and terms and conditions of other transactions and balances with key management personnel and
their related parties

Mr. Lanzer is the managing partner of the legal firm Arnold Bloch Leibler.  Group companies use the
services of Arnold Bloch Leibler from time to time.  Legal services totalling (cid:7)3(cid:15)242(cid:15)483 (2016(cid:29) (cid:7)1(cid:15)905(cid:15)871)(cid:15)
including Mr. Lanzer(cid:10)s Director fees(cid:15) GST and disbursements were invoiced by Arnold Bloch Leibler to the
Group(cid:15) with (cid:7)200(cid:15)314 (2016(cid:29) (cid:7)769(cid:15)000) remaining outstanding at year(cid:16)end. The fees paid for these
services were at arm(cid:10)s length and on normal commercial terms. A significant portion of these fees were
related to the one(cid:16)off litigation expense involving Ms. Peck in 2016. As is the practice with all matters in
which the Group engages Arnold Bloch Leibler(cid:15) Mr. Lanzer was not the responsible partner in relation to
this litigation.

Annual Report 2017   34

Directors’ Report continued

REMUNERATION REPORT (AUDITED) (CONTINUED) 

10. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KEY

MANAGEMENT PERSONNEL (CONTINUED)

Details and terms and conditions of other transactions and balances with key management personnel and
their related parties (continued)

Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year(cid:15) operating lease payments totalling (cid:7)299(cid:15)750
(2016(cid:29) (cid:7)351(cid:15)998) including GST was paid to Loch Awe Pty Ltd. The payments were at arm(cid:182)s length and on
normal commercial terms.

Mr. Lew is a director of Voyager Distributing Company Pty Ltd and family companies associated with Mr.
Lew have a controlling interest in Playcorp Pty Ltd and Sky Chain Trading Limited. During the year(cid:15)
purchases totalling (cid:7)15(cid:15)052(cid:15)592  (2016(cid:29) (cid:7)18(cid:15)648(cid:15)378 ) including GST have been made by Group
companies from Voyager Distributing Co. Pty Ltd(cid:15) Playcorp Pty Ltd and Sky Chain Trading Limited(cid:15) with
(cid:7)788(cid:15)091 (2016(cid:29) (cid:7)969(cid:15)084) remaining outstanding at year(cid:16)end. The purchases were all at arm(cid:182)s length and
on normal commercial terms.

Mr. Lew is a director of Century Plaza Trading Pty. Ltd. The company and Century Plaza Trading Pty Ltd
are parties to a Services Agreement to which Century Plaza Trading agrees to provide certain services to
the company to the extent re(cid:84)uired and re(cid:84)uested by the company. The company is re(cid:84)uired to reimburse
Century Plaza Trading for costs it incurs in providing the company with the services under the Service
Agreement. The company reimbursed a total of (cid:7)537(cid:15)575 (2016(cid:29) (cid:7)382(cid:15)123) costs including GST incurred
by Century Plaza Trading Pty Ltd.

Amounts recognised in the financial report at the reporting date in relation to other transactions(cid:29) 

i)

Amounts included within Assets and Liabilities

Current Liabilities 

  Trade and other payables 

ii)

Amounts included within Profit or Loss

Expenses 

Purchases(cid:18) Cost of goods sold 

Operating lease rental expense 

Legal fees 

Other expenses 

Total expenses

35   Premier Investments Limited

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

988 

988 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

13(cid:15)852 

273 

2(cid:15)998

538

17(cid:15)661 

Independent Auditor’s Declaration

8 Exhibition Street
Melbourne  VIC  3000  Australia
GPO Box 67
Melbourne  VIC  3001

  Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au

Annual Report 2017   36

Statement of Comprehensive Income

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:49)(cid:50)(cid:55)(cid:40)S 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

Revenue from sale of goods 

Other revenue 

Total revenue 

Other income 

Total revenue and other income  

Changes in inventories of finished goods  

Employee expenses 

Operating lease rental expense 

Depreciation(cid:15) impairment and amortisation 

Advertising and direct marketing 

Finance costs  

Other expenses 

Total expenses 

Share of profit of associate 

Profit from continuing operations before income tax 

Income tax expense 

(cid:49)e(cid:87) (cid:83)ro(cid:73)i(cid:87) (cid:73)or (cid:87)(cid:75)e (cid:83)eriod a(cid:87)(cid:87)ri(cid:69)(cid:88)(cid:87)a(cid:69)le (cid:87)o owner(cid:86) 

(cid:50)(cid:87)(cid:75)er (cid:70)om(cid:83)re(cid:75)en(cid:86)ive lo(cid:86)(cid:86) 

(cid:44)(cid:87)em(cid:86) (cid:87)(cid:75)a(cid:87) ma(cid:92) (cid:69)e re(cid:70)la(cid:86)(cid:86)i(cid:73)ied (cid:86)(cid:88)(cid:69)(cid:86)e(cid:84)(cid:88)en(cid:87)l(cid:92) (cid:87)o (cid:83)ro(cid:73)i(cid:87) or lo(cid:86)(cid:86) 
Net loss on cash flow hedges 

Foreign currency translation 

Net fair value loss on available(cid:16)for(cid:16)sale financial assets 

Net movement in other comprehensive income of associates 

Income tax on items of other comprehensive income 

(cid:50)(cid:87)(cid:75)er (cid:70)om(cid:83)re(cid:75)en(cid:86)ive lo(cid:86)(cid:86) (cid:73)or (cid:87)(cid:75)e (cid:83)eriod(cid:15) ne(cid:87) o(cid:73) (cid:87)a(cid:91) 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:50)M(cid:51)(cid:53)(cid:40)(cid:43)(cid:40)(cid:49)S(cid:44)(cid:57)(cid:40) (cid:44)(cid:49)C(cid:50)M(cid:40) (cid:41)(cid:50)(cid:53) (cid:55)(cid:43)(cid:40) (cid:51)(cid:40)(cid:53)(cid:44)(cid:50)D 
(cid:36)(cid:55)(cid:55)(cid:53)(cid:44)(cid:37)(cid:56)(cid:55)(cid:36)(cid:37)L(cid:40) (cid:55)(cid:50) (cid:55)(cid:43)(cid:40) (cid:50)(cid:58)(cid:49)(cid:40)(cid:53)S 

(cid:40)arnin(cid:74)(cid:86) (cid:83)er (cid:86)(cid:75)are (cid:73)or (cid:83)ro(cid:73)i(cid:87) (cid:73)rom (cid:70)on(cid:87)in(cid:88)in(cid:74) o(cid:83)era(cid:87)ion(cid:86) 
a(cid:87)(cid:87)ri(cid:69)(cid:88)(cid:87)a(cid:69)le (cid:87)o (cid:87)(cid:75)e ordinar(cid:92) e(cid:84)(cid:88)i(cid:87)(cid:92) (cid:75)older(cid:86) o(cid:73) (cid:87)(cid:75)e (cid:83)aren(cid:87)(cid:29) 

(cid:16) basic for profit for the year (cents per share)

(cid:16) diluted for profit for the year (cents per share)

4 

4 

4 

5 

5 

5 

18 

6 

22 

22 

22 

22 

22 

7 

7 

The accompanying notes form an integral part of this Statement of Comprehensive Income. 

1(cid:15)092(cid:15)760 

6(cid:15)422 

1(cid:15)099(cid:15)182 

1(cid:15)950 

1(cid:15)101(cid:15)132 

(403(cid:15)336) 

(272(cid:15)896) 

(211(cid:15)779) 

(26(cid:15)071) 

(13(cid:15)737) 

(6(cid:15)242)

(42(cid:15)725) 

1(cid:15)049(cid:15)226 

8(cid:15)228 

1(cid:15)057(cid:15)454 

1(cid:15)507 

1(cid:15)058(cid:15)961 

(378(cid:15)946) 

(268(cid:15)997) 

(204(cid:15)707) 

(23(cid:15)881) 

(11(cid:15)580) 

(4(cid:15)912)

(36(cid:15)647) 

(976(cid:15)786) 

(929(cid:15)670) 

14(cid:15)799 

139(cid:15)145 

(34(cid:15)009) 

(cid:20)(cid:19)(cid:24)(cid:15)(cid:20)(cid:22)(cid:25) 

(7(cid:15)129) 

(4(cid:15)008) 

(34(cid:15)700) 

(700)

12(cid:15)661 

(cid:11)(cid:22)(cid:22)(cid:15)(cid:27)(cid:26)(cid:25)(cid:12) 

13(cid:15)792 

143(cid:15)083 

(39(cid:15)209) 

(cid:20)(cid:19)(cid:22)(cid:15)(cid:27)(cid:26)(cid:23) 

(44(cid:15)983) 

(5(cid:15)363) 

(cid:16) 

(70)

13(cid:15)495

(cid:11)(cid:22)(cid:25)(cid:15)(cid:28)(cid:21)(cid:20)(cid:12) 

(cid:26)(cid:20)(cid:15)(cid:21)(cid:25)(cid:19) 

(cid:25)(cid:25)(cid:15)(cid:28)(cid:24)(cid:22) 

66.78 

66.25 

66.27 

65.78 

37   Premier Investments Limited

Statement of Financial Position

AS AT 29 JULY 2017 AND 30 JULY 2016

(cid:49)(cid:50)(cid:55)(cid:40)S 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

ASSETS 

Current assets 

Cash and cash e(cid:84)uivalents 

Trade and other receivables 

Inventories 

Other financial instruments 

Other current assets 

Total current assets 

Non-current assets 

Property(cid:15) plant and e(cid:84)uipment 

Intangible assets 

Deferred tax assets 

Available(cid:16)for(cid:16)sale financial assets 

Investment in associate 

Total non(cid:16)current assets 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:36)SS(cid:40)(cid:55)S

LIABILITIES 

Current liabilities 

Trade and other payables 

Other financial instruments 

Income tax payable 

Provisions 

Other current liabilities 

Total current liabilities 

Non-current liabilities 

Interest(cid:16)bearing liabilities 

Deferred tax liabilities 

Provisions 

Other financial instruments 

Other non(cid:16)current liabilities 

Total non(cid:16)current liabilities 

(cid:55)(cid:50)(cid:55)(cid:36)L L(cid:44)(cid:36)(cid:37)(cid:44)L(cid:44)(cid:55)(cid:44)(cid:40)S 

(cid:49)(cid:40)(cid:55) (cid:36)SS(cid:40)(cid:55)S 

EQUITY 

Contributed e(cid:84)uity 

Reserves  

Retained earnings 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:40)(cid:52)(cid:56)(cid:44)(cid:55)(cid:60) 

19 

9 

10 

24 

11 

15 

16 

6 

17

18 

12 

24 

13 

14 

20 

6 

13 

24 

14 

21 

22 

The accompanying notes form an integral part of this Statement of Financial Position.

170(cid:15)631

23(cid:15)682 

140(cid:15)755

181 

11(cid:15)572 

346(cid:15)821 

214(cid:15)378

855(cid:15)114

35(cid:15)773 

67(cid:15)665 

216(cid:15)940

1(cid:15)389(cid:15)870 

(cid:20)(cid:15)(cid:26)(cid:22)(cid:25)(cid:15)(cid:25)(cid:28)(cid:20) 

71(cid:15)528 

21(cid:15)651 

17(cid:15)936 

19(cid:15)365 

12(cid:15)910 

283(cid:15)233

16(cid:15)461 

123(cid:15)556

1(cid:15)636

11(cid:15)694 

436(cid:15)580 

139(cid:15)237

854(cid:15)816

18(cid:15)858 

(cid:16) 

213(cid:15)392

1(cid:15)226(cid:15)303 

(cid:20)(cid:15)(cid:25)(cid:25)(cid:21)(cid:15)(cid:27)(cid:27)(cid:22) 

72(cid:15)965 

11(cid:15)711 

31(cid:15)953 

16(cid:15)457 

6(cid:15)967 

143(cid:15)390 

140(cid:15)053 

173(cid:15)475

58(cid:15)787 

1(cid:15)828 

460 

23(cid:15)078 

257(cid:15)628 

(cid:23)(cid:19)(cid:20)(cid:15)(cid:19)(cid:20)(cid:27) 

105(cid:15)805

57(cid:15)311 

1(cid:15)871

4(cid:15)479

14(cid:15)809 

184(cid:15)275 

(cid:22)(cid:21)(cid:23)(cid:15)(cid:22)(cid:21)(cid:27)

(cid:20)(cid:15)(cid:22)(cid:22)(cid:24)(cid:15)(cid:25)(cid:26)(cid:22) 

(cid:20)(cid:15)(cid:22)(cid:22)(cid:27)(cid:15)(cid:24)(cid:24)(cid:24) 

608(cid:15)615

(30(cid:15)100) 

757(cid:15)158

608(cid:15)615

(2(cid:15)434) 

732(cid:15)374

(cid:20)(cid:15)(cid:22)(cid:22)(cid:24)(cid:15)(cid:25)(cid:26)(cid:22) 

(cid:20)(cid:15)(cid:22)(cid:22)(cid:27)(cid:15)(cid:24)(cid:24)(cid:24) 

Annual Report 2017   38

Statement of Cash Flows

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016

(cid:49)(cid:50)(cid:55)(cid:40)S 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

1(cid:15)211(cid:15)741 

1(cid:15)162(cid:15)989 

(1(cid:15)063(cid:15)463) 

(1(cid:15)024(cid:15)780) 

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers (inclusive of GST) 

Payments to suppliers and employees (inclusive of GST) 

Interest received 

Borrowing costs paid 

Income taxes paid 

(cid:49)(cid:40)(cid:55) C(cid:36)S(cid:43) (cid:41)L(cid:50)(cid:58)S (cid:41)(cid:53)(cid:50)M (cid:50)(cid:51)(cid:40)(cid:53)(cid:36)(cid:55)(cid:44)(cid:49)(cid:42) (cid:36)C(cid:55)(cid:44)(cid:57)(cid:44)(cid:55)(cid:44)(cid:40)S 

19(b) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Dividends received from associates 

Payment for trademarks 

Purchase of investments

Proceeds from disposal of property(cid:15) plant and e(cid:84)uipment 

Proceeds from disposal of asset classified as held for sale 

Payment for property(cid:15) plant and e(cid:84)uipment and leasehold 
premiums 

(cid:49)(cid:40)(cid:55) C(cid:36)S(cid:43) (cid:41)L(cid:50)(cid:58)S (cid:56)S(cid:40)D (cid:44)(cid:49) (cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)(cid:44)(cid:49)(cid:42) (cid:36)C(cid:55)(cid:44)(cid:57)(cid:44)(cid:55)(cid:44)(cid:40)S 

CASH FLOWS FROM FINANCING ACTIVITIES 

E(cid:84)uity dividends paid 

Proceeds from borrowings 

Repayment of borrowings 

Payment of finance lease liabilities 

(cid:49)(cid:40)(cid:55) C(cid:36)S(cid:43) (cid:41)L(cid:50)(cid:58)S (cid:56)S(cid:40)D (cid:44)(cid:49) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:49)(cid:42) (cid:36)C(cid:55)(cid:44)(cid:57)(cid:44)(cid:55)(cid:44)(cid:40)S 

6(cid:15)715

(5(cid:15)722) 

(51(cid:15)434) 

(cid:28)(cid:26)(cid:15)(cid:27)(cid:22)(cid:26) 

10(cid:15)551 

(325)

(102(cid:15)365) 

5 

(cid:16)

(105(cid:15)634) 

(cid:11)(cid:20)(cid:28)(cid:26)(cid:15)(cid:26)(cid:25)(cid:27)(cid:12) 

(80(cid:15)352) 

155(cid:15)000

(87(cid:15)074) 

(cid:16) 

(cid:11)(cid:20)(cid:21)(cid:15)(cid:23)(cid:21)(cid:25)(cid:12) 

8(cid:15)197

(4(cid:15)943) 

(37(cid:15)800) 

(cid:20)(cid:19)(cid:22)(cid:15)(cid:25)(cid:25)(cid:22)

9(cid:15)836 

(128)

(29)

204 

1(cid:15)000

(45(cid:15)046) 

(cid:11)(cid:22)(cid:23)(cid:15)(cid:20)(cid:25)(cid:22)(cid:12) 

(68(cid:15)969) 

111(cid:15)069

(109(cid:15)571) 

(14) 

(cid:11)(cid:25)(cid:26)(cid:15)(cid:23)(cid:27)(cid:24)(cid:12) 

(cid:49)(cid:40)(cid:55) (cid:11)D(cid:40)C(cid:53)(cid:40)(cid:36)S(cid:40)(cid:12) (cid:44)(cid:49)C(cid:53)(cid:40)(cid:36)S(cid:40) (cid:44)(cid:49) C(cid:36)S(cid:43) (cid:43)(cid:40)LD 

(cid:11)(cid:20)(cid:20)(cid:21)(cid:15)(cid:22)(cid:24)(cid:26)(cid:12) 

(cid:21)(cid:15)(cid:19)(cid:20)(cid:24)

Cash at the beginning of the financial year

Net foreign exchange difference 

C(cid:36)S(cid:43) (cid:36)(cid:55) (cid:55)(cid:43)(cid:40) (cid:40)(cid:49)D (cid:50)(cid:41) (cid:55)(cid:43)(cid:40) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:60)(cid:40)(cid:36)(cid:53) 

19(a) 

(cid:21)(cid:27)(cid:22)(cid:15)(cid:21)(cid:22)(cid:22)

(245)

(cid:20)(cid:26)(cid:19)(cid:15)(cid:25)(cid:22)(cid:20)

281(cid:15)572

(354)

(cid:21)(cid:27)(cid:22)(cid:15)(cid:21)(cid:22)(cid:22)

The accompanying notes form an integral part of this Statement of Cash Flows. 

39   Premier Investments Limited

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

L
(cid:36)
(cid:55)
(cid:50)
(cid:55)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:44)

S
(cid:55)
(cid:41)
(cid:50)
(cid:53)
(cid:51)

(cid:44)

D
(cid:40)
(cid:49)
(cid:36)
(cid:55)
(cid:40)
(cid:53)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:40)
(cid:57)
(cid:53)
(cid:40)
S
(cid:40)
(cid:53)

(cid:40)
(cid:56)
L
(cid:36)
(cid:57)
(cid:53)
(cid:36)
(cid:41)

(cid:44)

(cid:44)

(cid:49)
(cid:42)
(cid:40)
(cid:53)
(cid:50)
(cid:41)

(cid:60)
C
(cid:49)
(cid:40)
(cid:53)
(cid:53)
(cid:56)
C

(cid:15)

5
5
5
8
3
3
1

(cid:15)

6
3
1
5
0
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6
7
8
3
3
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(cid:16)

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7
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2
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(cid:16)

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4
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(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:40)
(cid:57)
(cid:53)
(cid:40)
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(cid:40)
(cid:53)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:40)
(cid:42)
D
(cid:40)
(cid:43)

(cid:16)

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0
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9
(cid:15)
4
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(cid:19)
(cid:25)
(cid:21)
(cid:20)
(cid:26)

(cid:15)

(cid:25)
(cid:22)
(cid:20)
(cid:24)
(cid:19)
(cid:20)

(cid:15)

(cid:12)
(cid:27)
(cid:26)
(cid:20)
(cid:23)
(cid:21)
(cid:11)

(cid:15)

(cid:12)
(cid:27)
(cid:19)
(cid:26)
(cid:23)
(cid:11)

(cid:15)

(cid:12)
(cid:19)
(cid:28)
(cid:28)
(cid:15)
(cid:23)
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(cid:44)

(cid:49)
(cid:50)
(cid:55)
(cid:36)
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(cid:49)
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(cid:40)
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(cid:53)

(cid:58)
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(cid:41)
(cid:43)
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(cid:40)
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(cid:49)
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(cid:53)
(cid:50)
(cid:41)
(cid:53)
(cid:40)
(cid:51)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

S
(cid:55)
(cid:43)
(cid:42)
(cid:53)

(cid:44)

(cid:40)
(cid:57)
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(cid:40)
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(cid:40)
(cid:53)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
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(cid:44)

L
(cid:36)
(cid:55)
(cid:51)
(cid:36)
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(cid:44)

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(cid:55)
(cid:41)
(cid:50)
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(cid:51)

(cid:40)
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(cid:40)
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(cid:40)
(cid:53)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:44)

(cid:60)
(cid:55)
(cid:56)
(cid:52)
(cid:40)

(cid:44)

D
(cid:40)
(cid:55)
(cid:56)
(cid:37)
(cid:53)
(cid:55)
(cid:49)
(cid:50)
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1
9
2
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0
1
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6
4
3
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4
6
4

5
1
6
(cid:15)
8
0
6

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2
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2
5
3
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8
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(cid:15)

(cid:15)

(cid:22)
(cid:26)
(cid:25)
(cid:24)
(cid:22)
(cid:22)
(cid:20)

(cid:15)

(cid:15)

7
0
3
8
3
3
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4
7
8
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1
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9
6
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2
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(cid:27)
(cid:24)
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(cid:26)
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(cid:16)

9
6
4
7
9
6

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4
7
8
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(cid:22)
(cid:24)
(cid:28)
(cid:25)
(cid:25)

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(cid:23)
(cid:26)
(cid:27)
(cid:22)
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4
6
2
2

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9
6
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(cid:24)
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(cid:22)
(cid:22)
(cid:20)

(cid:15)

(cid:16)

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9
6
9
8
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(cid:12)
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(cid:25)
(cid:24)
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(cid:21)
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(cid:12)
(cid:22)
(cid:22)
(cid:23)
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(cid:15)

(cid:12)
(cid:27)
(cid:27)
(cid:23)
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8
4
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5
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8
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9
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6
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(cid:23)
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6
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Annual Report 2017   40

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Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016

1 

GENERAL INFORMATION 

The financial report contains the consolidated financial statements of the consolidated entity(cid:15) comprising 
Premier Investments Limited (the (cid:181)parent entity(cid:182)) and its wholly owned subsidiaries ((cid:181)the Group(cid:182)) for the 
52 weeks ended 29 July 2017. The financial report was authorised for issue in accordance with a 
resolution of the Directors on 3 October 2017. 

Premier Investments Limited is a for profit company limited by shares incorporated in Australia whose 
shares are publicly traded on the Australian Securities Exchange. The nature of the operations and 
principal activities of the Group are described in the Directors(cid:182) Report. 

The Group has reviewed the content and structure of its financial report in order to improve and clarify 
the presentation of financial information. The presentation changes focussed on reviewing disclosures 
and reorganising notes to the financial statements in such a way as to provide users with more clear(cid:15) 
understandable and structured financial information(cid:15) which better explains the financial performance 
and position of the Group.

The notes to the financial statements have been organised into the following sections(cid:29) 

(i) Other significant group accounting policies: Summarises the basis of financial statement

preparation and other accounting policies adopted in the preparation of these consolidated financial
statements. Specific accounting policies are disclosed in the note to which they relate.

(ii) Group performance: Contains the notes that focus on the results and performance of the Group.

(iii) Operating assets and liabilities: Provides information on the Group(cid:182)s assets and liabilities used to

generate the Group(cid:182)s performance.

(iv) Capital invested: Provides information on the capital invested which allows the Group to generate

its performance.

(v) Capital structure and risk management: Provides information on the Group(cid:182)s capital structure(cid:15)

and summarises the Group(cid:182)s Risk Management policies.

(vi) Group structure: Contains information in relation to the Group(cid:182)s structure and related parties.

(vii) Other disclosures: Summarises other disclosures which are re(cid:84)uired in order to comply with

Australian Accounting Standards and other authoritative pronouncements.

2 

OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES 

The consolidated financial report is prepared for the 52 weeks from 31 July 2016 to 29 July 2017. 

Below is a summary of significant group accounting policies applicable to the Group which have not 
been disclosed elsewhere. The notes to the financial statements(cid:15) which contain detailed accounting 
policy notes(cid:15) should be read in con(cid:77)unction with the below Group accounting policies. 

(a) BASIS OF FINANCIAL REPORT PREPARATION

The financial report is a general(cid:16)purpose financial report(cid:15) which has been prepared in accordance
with the re(cid:84)uirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. The financial report
has been prepared on a historical cost basis(cid:15) except for other financial instruments and available(cid:16)
for(cid:16)sale financial assets(cid:15) which have been measured at fair value as explained in the relevant
accounting policies throughout the notes.

The financial report is presented in Australian dollars and all values are rounded to the nearest
thousand dollars ((cid:7)(cid:182)000)(cid:15) unless otherwise stated(cid:15) as the Company is a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191(cid:15) dated 24 March
2016.

41   Premier Investments Limited

(b) STATEMENT OF COMPLIANCE

The financial report complies with Australian Accounting Standards and International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

(c) BASIS OF CONSOLIDATION

The consolidated financial statements are those of the consolidated entity(cid:15) comprising Premier
Investments Limited and its wholly owned subsidiaries as at the end of each financial year. A list
of the Group(cid:182)s subsidiaries is included in note 26.

Subsidiaries are entities that are controlled by the Group. Control is achieved when the Group has(cid:29)

-
-
-

Power over the investee(cid:30)
Exposure(cid:15) or rights(cid:15) to variable returns from its involvement with the investee(cid:15) and
The ability to use its power over the investee to affect its returns.

All intra(cid:16)group assets and liabilities(cid:15) e(cid:84)uity(cid:15) income(cid:15) expenses and cash flows relating to 
transactions between members of the Group are eliminated in full on consolidation. 

Investments in subsidiaries held by Premier Investments Limited are accounted for at cost in the 
separate financial statements of the parent entity less any impairment losses.  Dividends received 
from subsidiaries are recorded as a component of other revenue in the separate statement of 
comprehensive income of the parent entity(cid:15) and do not impact the recorded cost of the 
investment.   

The Group re(cid:16)assesses whether or not it controls an investee if facts and circumstances indicate 
that there are changes to one or more of the three elements of control. Consolidation of a 
subsidiary begins when the Group obtains control over the subsidiary and ceases when the 
Group loses control of the subsidiary. 

(d) SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Group(cid:182)s consolidated financial statements re(cid:84)uires management to make
(cid:77)udgements(cid:15) estimates and assumptions that affect the reported amounts in the financial
statements.  Management continually evaluates its (cid:77)udgements and estimates in relation to
assets(cid:15) liabilities(cid:15) contingent liabilities(cid:15) revenue and expenses.  Management bases its
(cid:77)udgements and estimates on historical experience and on other various factors it believes to be
reasonable under the circumstances(cid:15) the results of which form the basis of the carrying values of
assets and liabilities that are not readily apparent from other sources.

Management has identified certain critical accounting policies for which significant (cid:77)udgements(cid:15)
estimates and assumptions are re(cid:84)uired. These key (cid:77)udgements(cid:15) estimates and assumptions
have been disclosed as part of the relevant note to the financial statements. Actual results may
differ from those estimated under different assumptions and conditions and may materially affect
financial results or the financial position reported in future periods.

(e) CURRENT VERSUS NON-CURRENT CLASSIFICATION

The Group presents assets and liabilities in the statement of financial position based on current
versus non(cid:16)current classification. An asset is current when it is(cid:29)

-

-

Expected to be realised or intended to be sold in the normal operating cycle(cid:15) or primarily
held for the purpose of trading(cid:15) or is expected to be realised within twelve months after the
reporting period(cid:15) or(cid:30)

Cash and cash e(cid:84)uivalents unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

Annual Report 2017   42

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

2 

OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED) 

(e) CURRENT VERSUS NON-CURRENT CLASSIFICATION (CONTINUED)

All other assets are classified as non(cid:16)current. A liability is current when it is(cid:29)

- Expected to be settled in the normal operating cycle(cid:15) or primarily held for the purpose of trading(cid:15)

or is due to be settled within twelve months after the reporting period(cid:15) or(cid:30)

- There is no unconditional right to defer the settlement of the liability for at least twelve months

after the reporting period.

All other liabilities are classified as non(cid:16)current. Deferred tax assets and liabilities are classified as 
non(cid:16)current. 

(f) OFFSETTING OF FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statement of financial position if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to settle on a net basis(cid:15) or to realise the assets
and settle the liabilities simultaneously.

(g) FOREIGN CURRENCY TRANSLATION

Items included in the financial statements of each of the Group(cid:182)s entities are measured using the
currency of the primary economic environment in which the entity operates ((cid:181)the functional
currency(cid:182)). Both the functional and presentation currency of Premier Investments Limited and its
Australian subsidiaries is Australian dollars.

Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. All
exchange differences are taken to profit or loss in the statement of comprehensive income. Non(cid:16)
monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions.

As at the reporting date the assets and liabilities of the overseas subsidiaries are translated into
the presentation currency of Premier Investments Limited at the rate of exchange ruling at the
reporting date and the statements of comprehensive income are translated at the weighted
average exchange rates for the period.

Exchange variations resulting from the translations are recognised in the foreign currency
translation reserve in e(cid:84)uity.

(h) GOODS AND SERVICES TAX (GST), INCLUDING OTHER VALUE-ADDED TAXES

Revenues(cid:15) expenses and assets are recognised net of the amount of goods and services tax (GST)
except(cid:29)

- When the GST incurred on a purchase of goods and services is not recoverable from the

taxation authority(cid:15) in which case the GST is recognised as part of the cost of ac(cid:84)uisition of the
asset or as part of the expense item as applicable(cid:30) and

- Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from(cid:15) or payable to(cid:15) the taxation authority is included as part 
of receivables or payables in the statement of financial position.  

Cash flows are included in the statement of cash flows on a gross basis and the GST component 
of cash flows arising from investing and financing activities(cid:15) which is recoverable from(cid:15) or payable 
to(cid:15) the taxation authority(cid:15) are classified as operating cash flows. 

Commitments and contingencies are disclosed net of the amount of GST recoverable from(cid:15) or 
payable to(cid:15) the taxation authority. 

43   Premier Investments Limited

(i) COMPARATIVE AMOUNTS

The current reporting period(cid:15) 31 July 2016 to 29 July 2017(cid:15) represents 52 weeks and the
comparative reporting period is from 26 July 2015 to 30 July 2016 which represents 53 weeks. 
From time to time(cid:15) management may change prior year comparatives to reflect classifications 
applied in the current year.  

(j) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

Changes in accounting policies, disclosures, standards and interpretations

The accounting policies adopted are consistent with those of the previous financial year except 
for new and amended Australian Accounting Standards and AASB Interpretations relevant to the 
Group and its operations that are effective for the current annual reporting period. 

The new and amended Australian Accounting Standards and AASB Interpretations relevant to the 
Group for the current annual reporting period are as follows(cid:29)

(i)

(ii)

(iii)

AASB 2014-4 Clarification of Acceptable Methods of Depreciation and Amortisation: The
Standard amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible
Assets to provide additional guidance on how depreciation or amortisation should be
calculated.

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements
to Australian Accounting Standards 2012 – 2014 Cycle: The Standard amends a number
of pronouncements as a result of the IASB(cid:182)s 2012 (cid:177) 2014 annual improvements cycle.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative:
Amendments to AASB 101: The Standard amends AASB 101 Presentation of Financial
Statements to provide clarification regarding the disclosure re(cid:84)uirements of AASB 101.

The adoption of these amending Standards did not have any impact on the disclosures or the 
amounts recognised in the Group(cid:182)s consolidated financial report. In the current financial year the 
Group did not elect to early adopt any new Standards or amendments issued but not yet 
effective. 

Accounting Standards and Interpretations issued but not yet effective 

Recently issued or amended Australian Accounting Standards and Interpretations that have been 
identified as those which may be relevant to the Group in future reporting periods(cid:15) but are not yet 
effective and have not been adopted by the Group for the reporting period ended 29 July 2017(cid:15) 
are outlined below(cid:29)

(i)

AASB 15 Revenue from Contracts with Customers: AASB 15 establishes principles for
reporting the nature(cid:15) amount(cid:15) timing and uncertainty of revenue and cash flows arising from
an entity(cid:182)s contracts with customers. Since issuing AASB 15 in December 2014(cid:15) the AASB
have also issued AASB 2014(cid:16)5 Amendments to Australian Accounting Standards Arising
from AASB 15; AASB 2015(cid:16)8 Amendments to Australian Accounting Standards – effective
date of AASB 15, and AASB 2016(cid:16)3 Amendments to Australian Accounting Standards –
Clarifications to AASB 15. The first application date for the Group will be for the financial
year ending 27 July 2019. The new standard re(cid:84)uires extensive disclosures including
disaggregation of total revenue and key (cid:77)udgements and estimates. The Group has
considered the impact of AASB 15 and does not expect the adoption of the new standard to
have a material effect on the financial position and performance of the Group.

Annual Report 2017   44

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

2 

OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED) 

(j) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS (CONTINUED)

(ii)

(iii)

AASB 16 Leases: This Standard will replace AASB 117 Leases(cid:15) Interpretation 4 Determining
whether an Arrangement contains a Lease, Interpretation 115 Operating Leases –
Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the
Legal Form of a Lease. The Standard provides a comprehensive model for the identification
of lease arrangements and their treatment in the financial statements. The standard
introduces a new lease accounting model for lessees that re(cid:84)uire lessees to recognise all
leases on balance sheet(cid:15) except short(cid:16)term leases and leases of low value assets. Under
AASB 16(cid:15) the present value of operating lease commitments would be shown as a liability
on the balance sheet together with an asset representing the right(cid:16)of(cid:16)use. In addition(cid:15) the
current operating lease expense recognised in profit or loss in the statement of
comprehensive income will be replaced with amortisation and interest expense. The Group
is currently evaluating the implications and impact of AASB 16. The first application date for
the Group will be for the financial year ending 25 July 2020.

AASB 9 Financial Instruments: AASB 9 replaces AASB 139 Financial Instruments:
Recognition and Measurement, and supersedes previous versions of AASB 9. AASB 9
introduces a new expected credit(cid:16)loss impairment model that re(cid:84)uires entities to account for
expected credit losses from when financial instruments are first recognised and to recognise
full lifetime expected losses on a timelier basis. AASB 9 also includes the new hedge
accounting re(cid:84)uirements(cid:15) including changes to hedge effectiveness testing(cid:15) treatment of
hedge costs(cid:15) risk components that can be hedged and disclosures. The standard further
provides a simpler approach to classification and measurement of financial assets compared
to the re(cid:84)uirements of AASB 139. Conse(cid:84)uential amendments were also made as a result
of AASB 9(cid:15) which have been introduced by AASB 2010(cid:16)7(cid:15) AASB 2010(cid:16)10(cid:15) AASB 2014(cid:16)1 (cid:177)
Part E and AASB 2014(cid:16)7.The first application date for the Group will be for the financial year
ending 27 July 2019. The Group is currently determining the potential effects(cid:15) if any(cid:15) of this
standard.

(iv)

IFRIC 23 Uncertainty over Income Tax Treatments: The Interpretation clarifies the
application of the recognition and measurement criteria in IAS 21 Income Taxes when there
is uncertainty over income tax treatments. The first application date for the Group will be for
the financial year ending 25 July 2020. The Group does not anticipate that the Interpretation
will have a material impact on the Group.

45   Premier Investments Limited

GROUP PERFORMANCE 

3  OPERATING SEGMENTS 

Identification of operating segments 

The Group determines and presents operating segments based on the information that is internally
provided and used by the chief operating decision maker in assessing the performance of the Group and 
in determining the allocation of resources.  

An operating segment is a component of the Group that engages in business activities from which it may 
earn revenues and incur expenses(cid:15) including revenues and expenses that relate to transactions with any 
of the Group(cid:182)s other components.  The operating segments are identified by management based on the 
nature of the business conducted(cid:15) and for which discrete financial information is available and reported to 
the chief operating decision maker on at least a monthly basis.

Segment results that are reported to the chief operating decision maker include items directly attributable 
to a segment as well as those that can be allocated on a reasonable basis.  Unallocated items comprise 
mainly of corporate assets(cid:15) head office expenses and income tax assets and liabilities. 

Reportable Segments 

Retail 

The retail segment represents the financial performance of a number of speciality retail fashion chains. 

Investment 

The investments segment represents investments in securities for both long and short term gains(cid:15) dividend 
income and interest.   

Accounting policies  

The key accounting policies used by the Group in reporting segments internally are the same as those 
contained in these financial statements. 

Income tax expense 

Income tax expense is calculated based on the segment operating net profit using the Group(cid:182)s effective 
income tax rate. 

It is the Group(cid:182)s policy that if items of revenue and expense are not allocated to operating segments then 
any associated assets and liabilities are also not allocated to the segments. This is to avoid asymmetrical 
allocations within segments which management believe would be inconsistent. 

Segment capital expenditure 

Segment capital expenditure is the total cost incurred during the period to ac(cid:84)uire property(cid:15) plant and 
e(cid:84)uipment(cid:15) and intangible assets other than goodwill.  

The table on the following page presents revenue and profit information for operating segments for the 
periods ended 29 July 2017 and 30 July 2016. 

Annual Report 2017   46

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP PERFORMANCE 

3  OPERATING SEGMENTS (CONTINUED) 

(A) OPERATING SEGMENTS

   (cid:53)(cid:40)(cid:55)(cid:36)(cid:44)L 

       (cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)M(cid:40)(cid:49)(cid:55)  

   (cid:40)L(cid:44)M(cid:44)(cid:49)(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) 

  C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

   (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

   (cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

   (cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

   (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

REVENUE AND OTHER INCOME

Sale of goods 

1(cid:15)092(cid:15)760  1(cid:15)049(cid:15)226 

(cid:16) 

(cid:16) 

Interest revenue 

Other revenue  

Other income 

Total Segment revenue 

and other income 

117 

250 

186 

322 

6(cid:15)028 

7(cid:15)702 

72(cid:15)027 

62(cid:15)018 

(72(cid:15)000) 

(62(cid:15)000) 

277 

340 

(cid:16) 

(cid:16)

(cid:16)  1(cid:15)092(cid:15)760  1(cid:15)049(cid:15)226 

(cid:16) 

6(cid:15)145

7(cid:15)888 

1(cid:15)935 

1(cid:15)507 

15 

(cid:16) 

(cid:16) 

(cid:16) 

1(cid:15)950 

1(cid:15)507 

1(cid:15)095(cid:15)062  1(cid:15)051(cid:15)241 

78(cid:15)070 

69(cid:15)720 

(72(cid:15)000) 

(62(cid:15)000)  1(cid:15)101(cid:15)132  1(cid:15)058(cid:15)961 

(cid:55)o(cid:87)al in(cid:70)ome (cid:83)er (cid:87)(cid:75)e  (cid:86)(cid:87)a(cid:87)emen(cid:87) o(cid:73) 

(cid:70)om(cid:83)re(cid:75)en(cid:86)ive in(cid:70)ome 

RESULTS

Depreciation and 

amortisation 

Impairment of property 

plant and e(cid:84)uipment 

24(cid:15)951 

23(cid:15)881 

580 

540 

(cid:16) 

(cid:16) 

Interest expense 

4(cid:15)884 

4(cid:15)912 

1(cid:15)358 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

14(cid:15)799 

13(cid:15)792 

Share of profit of 

associates 

Se(cid:74)men(cid:87) (cid:83)ro(cid:73)i(cid:87) (cid:69)e(cid:73)ore

in(cid:70)ome (cid:87)a(cid:91) e(cid:91)(cid:83)en(cid:86)e 

Income tax expense  

(cid:49)e(cid:87) (cid:83)ro(cid:73)i(cid:87) a(cid:73)(cid:87)er (cid:87)a(cid:91) (cid:83)er (cid:87)(cid:75)e (cid:86)(cid:87)a(cid:87)emen(cid:87) o(cid:73) 

(cid:70)om(cid:83)re(cid:75)en(cid:86)ive in(cid:70)ome 

ASSETS AND LIABILITIES 

(cid:20)(cid:15)(cid:20)(cid:19)(cid:20)(cid:15)(cid:20)(cid:22)(cid:21)  (cid:20)(cid:15)(cid:19)(cid:24)(cid:27)(cid:15)(cid:28)(cid:25)(cid:20) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:16) 

(cid:16)

(cid:16) 

25(cid:15)531 

23(cid:15)881 

540

(cid:16) 

6(cid:15)242

4(cid:15)912 

(cid:16) 

14(cid:15)799

13(cid:15)792

(34(cid:15)009) 

(39(cid:15)209) 

(cid:20)(cid:19)(cid:24)(cid:15)(cid:20)(cid:22)(cid:25) 

(cid:20)(cid:19)(cid:22)(cid:15)(cid:27)(cid:26)(cid:23) 

(cid:20)(cid:21)(cid:25)(cid:15)(cid:20)(cid:27)(cid:21) 

(cid:20)(cid:21)(cid:25)(cid:15)(cid:21)(cid:19)(cid:26) 

(cid:27)(cid:23)(cid:15)(cid:28)(cid:25)(cid:22) 

(cid:26)(cid:27)(cid:15)(cid:27)(cid:26)(cid:25) 

(cid:11)(cid:26)(cid:21)(cid:15)(cid:19)(cid:19)(cid:19)(cid:12) 

(cid:11)(cid:25)(cid:21)(cid:15)(cid:19)(cid:19)(cid:19)(cid:12) 

(cid:20)(cid:22)(cid:28)(cid:15)(cid:20)(cid:23)(cid:24) 

(cid:20)(cid:23)(cid:22)(cid:15)(cid:19)(cid:27)(cid:22) 

Segment assets 

499(cid:15)031 

446(cid:15)874 

1(cid:15)301(cid:15)128  1(cid:15)283(cid:15)894 

(63(cid:15)468) 

(67(cid:15)885)  1(cid:15)736(cid:15)691  1(cid:15)662(cid:15)883 

Segment liabilities 

305(cid:15)959 

270(cid:15)091 

112(cid:15)513 

76(cid:15)106 

(17(cid:15)454) 

(21(cid:15)869) 

401(cid:15)018 

324(cid:15)328 

Capital expenditure 

45(cid:15)040 

42(cid:15)677 

58(cid:15)485 

(cid:16) 

(cid:16) 

(cid:16) 

103(cid:15)525 

42(cid:15)677 

47   Premier Investments Limited

(cid:44)

D
(cid:40)
(cid:55)
(cid:36)
D
L
(cid:50)
S
(cid:49)
(cid:50)
C

(cid:44)

S
(cid:49)
(cid:50)
(cid:55)
(cid:36)
(cid:49)
M
L
(cid:40)

(cid:44)

(cid:44)

L
(cid:36)
(cid:55)
(cid:50)
(cid:55)

(cid:40)
(cid:51)
(cid:50)
(cid:53)
(cid:56)
(cid:40)

(cid:44)

(cid:36)
S
(cid:36)

D
(cid:49)
(cid:36)
L
(cid:36)
(cid:40)
(cid:61)
(cid:58)
(cid:40)
(cid:49)

(cid:44)

(cid:36)
L
(cid:36)
(cid:53)
(cid:55)
S
(cid:56)
(cid:36)

S
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I

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B

(

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:7)

(cid:182)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)

(cid:182)

(cid:7)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)

(cid:182)

(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:7)

(cid:182)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)

(cid:182)

(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:7)

(cid:182)

(cid:25)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

(cid:26)
(cid:20)
(cid:19)
(cid:21)

(cid:19)
(cid:19)
(cid:19)
(cid:182)
(cid:7)

6
2
2
(cid:15)
9
4
0
(cid:15)
1

0
6
7
(cid:15)
2
9
0
(cid:15)
1

(cid:16)

5
3
7
(cid:15)
9

2
7
3
(cid:15)
8

)
9
5
1
(cid:15)
9
5
(

1
6
9
(cid:15)
8
5
0
(cid:15)
1

2
3
1
(cid:15)
1
0
1
(cid:15)
1

)
9
5
1
(cid:15)
9
5
(

(cid:16)

(cid:16)

(cid:16)

6
2
2
(cid:15)
9
4
0
(cid:15)
1

0
6
7
(cid:15)
2
9
0
(cid:15)
1

5
5
0
(cid:15)
8
5

2
2
3
4
9

(cid:15)

1
8
0
6
2

(cid:15)

8
4
6
7
3

(cid:15)

8
5
1
0
3
1

(cid:15)

3
6
1
8
2
1

(cid:15)

2
3
9
(cid:15)
4
3
8

7
2
6
(cid:15)
2
3
8

4
9
8
(cid:15)
8
6

2
7
3
(cid:15)
8

3
1

2

(cid:16)

2

6
2
4

(cid:15)

8

8
6
2

5
5
4
(cid:15)
0
6

0
0
1
(cid:15)
8

0
2
1
(cid:15)
8
1
1
(cid:15)
1

2
3
1
(cid:15)
1
0
1
(cid:15)
1

8
6
0
(cid:15)
8
5

4
2
3
4
9

(cid:15)

1
8
0
6
2

(cid:15)

0
5
6
7
3

(cid:15)

(cid:15)

4
8
5
8
3
1

(cid:15)

1
3
4
8
2
1

7
8
3
(cid:15)
5
9
8

7
2
7
(cid:15)
0
4
8

E
M
O
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N

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3
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3
(cid:15)
6
2
2
(cid:15)
1

0
7
8
(cid:15)
9
8
3
(cid:15)
1

)
5
4
9
(cid:15)
1
5
(

)
4
2
7
(cid:15)
1
5
(

8
4
2
(cid:15)
8
7
2
(cid:15)
1

4
9
5
(cid:15)
1
4
4
(cid:15)
1

2
7
3
(cid:15)
5
2

8
8
3
4
3

(cid:15)

7
7
6
(cid:15)
2
4

5
2
5
(cid:15)
3
0
1

(cid:16)

(cid:16)

7
7
6
(cid:15)
2
4

5
2
5
(cid:15)
3
0
1

9
5
1
(cid:15)
7
1

9
4
1
3
1

(cid:15)

2
4
1

(cid:15)

4

9
7
9

(cid:15)

1

9
4
9

(cid:15)

6

2
1
2

(cid:15)

4

3
3
0
0
1

(cid:15)

2
0
7

(cid:15)

3

8
4
8

5
6
6

(cid:15)

8

1
0
7
(cid:15)
8
3
2
(cid:15)
1

2
9
5
(cid:15)
1
9
3
(cid:15)
1

s
t
e
s
s
a

7
3
8
(cid:15)
9
1

6
1
3
(cid:15)
5
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C

Annual Report 2017   48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP PERFORMANCE 

4  REVENUE AND OTHER INCOME  

REVENUE

Revenue from sale of goods 

OTHER REVENUE 

Membership program fees 

Other sundry revenue 

INTEREST RECEIVED 

- Other persons

- Associate

Total Interest received 

TOTAL OTHER REVENUE 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:53)(cid:40)(cid:57)(cid:40)(cid:49)(cid:56)(cid:40) 

OTHER INCOME  

Royalty and licence fees 

    Other persons 

Foreign exchange gains

Other 

TOTAL OTHER INCOME  

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

1(cid:15)092(cid:15)760 

1(cid:15)049(cid:15)226 

247 

30 

6(cid:15)145 

(cid:16) 

6(cid:15)145 

6(cid:15)422

318 

22 

7(cid:15)702 

186 

7(cid:15)888 

8(cid:15)228

(cid:20)(cid:15)(cid:19)(cid:28)(cid:28)(cid:15)(cid:20)(cid:27)(cid:21) 

(cid:20)(cid:15)(cid:19)(cid:24)(cid:26)(cid:15)(cid:23)(cid:24)(cid:23) 

43 

669 

1(cid:15)238 

1(cid:15)950 

63 

(cid:16) 

1(cid:15)444 

1(cid:15)507 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:53)(cid:40)(cid:57)(cid:40)(cid:49)(cid:56)(cid:40) (cid:36)(cid:49)D (cid:50)(cid:55)(cid:43)(cid:40)(cid:53) (cid:44)(cid:49)C(cid:50)M(cid:40)  

(cid:20)(cid:15)(cid:20)(cid:19)(cid:20)(cid:15)(cid:20)(cid:22)(cid:21) 

(cid:20)(cid:15)(cid:19)(cid:24)(cid:27)(cid:15)(cid:28)(cid:25)(cid:20) 

REVENUE RECOGNITION ACCOUNTING POLICY 

Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it 
is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.  

Specifically(cid:15) revenue from the sale of goods is recognised when the significant risks and rewards of ownership 
of the goods have passed to the customer. Risks and rewards are considered passed to the customer at the 
point(cid:16)of(cid:16)sale in retail stores and at the time of delivery to catalogue and wholesale customers. 

The Group has elected to recognise revenue on lay(cid:16)by sales upon receipt of a deposit(cid:15) as the Group has a 
history of most lay(cid:16)by sales in retail stores being completed following receipt of the initial deposit.  

Revenue from the sale of gift cards is recognised upon redemption of the gift card(cid:15) or when the card is no longer 
expected to be redeemed(cid:15) based on analysis of historical non(cid:16)redemption rates. 

Interest revenue is recognised as interest accrues using the effective interest method.  This is a method of 
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period 
using the effective interest rate(cid:15) which is the rate that exactly discounts estimated future cash receipts through 
the expected life of the financial asset to the net carrying amount of the financial asset. 

Dividend revenue is recognised when the Group(cid:182)s right to receive the payment is established.

49   Premier Investments Limited

KEY ACCOUNTING ESTIMATES  

Estimated gift card redemption rates 

Expected gift card redemption rates are reviewed annually(cid:15) and ad(cid:77)ustments are made to the expected 
redemption rates when considered necessary. 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:49)(cid:50)(cid:55)(cid:40)S 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

5  E(cid:59)PENSES 

OPERATING LEASE EXPENSES  

Minimum lease payments (cid:177) operating leases

Contingent rentals

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:50)(cid:51)(cid:40)(cid:53)(cid:36)(cid:55)(cid:44)(cid:49)(cid:42) L(cid:40)(cid:36)S(cid:40) (cid:40)(cid:59)(cid:51)(cid:40)(cid:49)S(cid:40)S

DEPRECIATION, AMORTISATION AND 
IMPAIRMENT OF NON-CURRENT ASSETS 

Depreciation of property(cid:15) plant and e(cid:84)uipment 

Amortisation of plant and e(cid:84)uipment under lease

Impairment of property(cid:15) plant and e(cid:84)uipment 

Amortisation of leasehold premiums 

(cid:55)(cid:50)(cid:55)(cid:36)L D(cid:40)(cid:51)(cid:53)(cid:40)C(cid:44)(cid:36)(cid:55)(cid:44)(cid:50)(cid:49)(cid:15) (cid:36)M(cid:50)(cid:53)(cid:55)(cid:44)S(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) (cid:36)(cid:49)D 
(cid:44)M(cid:51)(cid:36)(cid:44)(cid:53)M(cid:40)(cid:49)(cid:55) (cid:50)(cid:41) (cid:49)(cid:50)(cid:49)(cid:16)C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:36)SS(cid:40)(cid:55)S 

15 

15 

15 

16 

FINANCE COSTS 

Finance charges payable under finance leases 

Interest on bank loans and overdraft 

Provision for discount ad(cid:77)ustment on onerous leases 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:40) C(cid:50)S(cid:55)S 

OTHER EXPENSES INCLUDE: 

Foreign exchange losses

Loss on ineffective cash flow hedges 

Net loss on disposal of property(cid:15) plant and e(cid:84)uipment 

173(cid:15)959

37(cid:15)820 

(cid:21)(cid:20)(cid:20)(cid:15)(cid:26)(cid:26)(cid:28)

169(cid:15)511

35(cid:15)196 

(cid:21)(cid:19)(cid:23)(cid:15)(cid:26)(cid:19)(cid:26)

25(cid:15)504 

23(cid:15)842 

(cid:16) 

540 

27 

12 

(cid:16) 

27 

(cid:21)(cid:25)(cid:15)(cid:19)(cid:26)(cid:20) 

(cid:21)(cid:22)(cid:15)(cid:27)(cid:27)(cid:20) 

(cid:16) 

6(cid:15)242 

(cid:16) 

(cid:25)(cid:15)(cid:21)(cid:23)(cid:21) 

(cid:16) 

246 

321 

33 

4(cid:15)870

9 

(cid:23)(cid:15)(cid:28)(cid:20)(cid:21) 

191 

2(cid:15)010 

413 

Annual Report 2017   50

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP PERFORMANCE 

6 

INCOME TA(cid:59)

The ma(cid:77)or components of income tax expense are(cid:29) 

(a)

INCOME TAX RECOGNISED IN PROFIT OR LOSS

CURRENT INCOME TA(cid:59)

Current income tax charge

Ad(cid:77)ustment in respect of current income tax of previous years

DEFERRED INCOME TA(cid:59)

Relating to origination and reversal of temporary differences

Ad(cid:77)ustments in respect of current income tax of previous years

Difference in exchange rates

(cid:44)(cid:49)C(cid:50)M(cid:40) (cid:55)(cid:36)(cid:59) (cid:40)(cid:59)(cid:51)(cid:40)(cid:49)S(cid:40) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55)(cid:40)D (cid:44)(cid:49) (cid:55)(cid:43)(cid:40) S(cid:55)(cid:36)(cid:55)(cid:40)M(cid:40)(cid:49)(cid:55) 
(cid:50)(cid:41) C(cid:50)M(cid:51)(cid:53)(cid:40)(cid:43)(cid:40)(cid:49)S(cid:44)(cid:57)(cid:40) (cid:44)(cid:49)C(cid:50)M(cid:40) 

(b) STATEMENT OF CHANGES IN EQUITY

Deferred income tax related to items credited directly to e(cid:84)uity(cid:29)

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

39(cid:15)943 

(3(cid:15)772) 

(1(cid:15)492) 

(687)

17 

(cid:22)(cid:23)(cid:15)(cid:19)(cid:19)(cid:28) 

38(cid:15)044 

(90) 

1(cid:15)841 

(450)

(136)

(cid:22)(cid:28)(cid:15)(cid:21)(cid:19)(cid:28) 

Net deferred income tax on movements on cash(cid:16)flow hedges

(2(cid:15)139) 

(13(cid:15)495) 

Net deferred income tax on unrealised loss on available(cid:16)for(cid:16)
sale financial assets

(cid:44)(cid:49)C(cid:50)M(cid:40) (cid:55)(cid:36)(cid:59) (cid:37)(cid:40)(cid:49)(cid:40)(cid:41)(cid:44)(cid:55) (cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55)(cid:40)D (cid:44)(cid:49) (cid:40)(cid:52)(cid:56)(cid:44)(cid:55)(cid:60) 

(10(cid:15)522) 

(cid:11)(cid:20)(cid:21)(cid:15)(cid:25)(cid:25)(cid:20)(cid:12) 

(cid:16) 

(cid:11)(cid:20)(cid:22)(cid:15)(cid:23)(cid:28)(cid:24)(cid:12) 

(c) RECONCILIATION BETWEEN TAX EXPENSE AND THE

ACCOUNTING PROFIT BEFORE TAX MULTIPLIED BY THE
GROUP’S APPLICABLE AUSTRALIAN INCOME TAX RATE

Accounting profit before income tax

139(cid:15)145

143(cid:15)083

At the Parent Entity(cid:182)s statutory income tax rate of 
30(cid:8) (2016(cid:29) 30(cid:8)) 
Ad(cid:77)ustment in respect of current income tax of previous years 

Expenditure not allowable for income tax purposes 

Effect of different rates of tax on overseas income 

Income not assessable for tax purposes 

Other 

(cid:36)(cid:42)(cid:42)(cid:53)(cid:40)(cid:42)(cid:36)(cid:55)(cid:40) (cid:44)(cid:49)C(cid:50)M(cid:40) (cid:55)(cid:36)(cid:59) (cid:40)(cid:59)(cid:51)(cid:40)(cid:49)S(cid:40) 

41(cid:15)743 

(1(cid:15)148) 

2(cid:15)046 

(2(cid:15)877) 

(3(cid:15)324) 

(2(cid:15)431) 

(cid:22)(cid:23)(cid:15)(cid:19)(cid:19)(cid:28) 

42(cid:15)925

(609)

751

(1(cid:15)679)

(3(cid:15)749)

1(cid:15)570

(cid:22)(cid:28)(cid:15)(cid:21)(cid:19)(cid:28)

51   Premier Investments Limited

(d) RECOGNISED DEFERRED TAX ASSETS AND

LIABILITIES

DEFERRED TAX RELATES TO THE FOLLOWING:

Foreign currency balances

Potential capital gains tax on financial investments

Deferred gains and losses on foreign exchange contracts

Inventory provisions

Deferred income

Employee provisions

Other receivables and prepayments

Property(cid:15) plant and e(cid:84)uipment

Other

(cid:49)(cid:40)(cid:55) D(cid:40)(cid:41)(cid:40)(cid:53)(cid:53)(cid:40)D (cid:55)(cid:36)(cid:59) L(cid:44)(cid:36)(cid:37)(cid:44)L(cid:44)(cid:55)(cid:44)(cid:40)S 

REFLECTED IN THE STATEMENT OF FINANCIAL 
POSITION AS FOLLOWS(cid:29) 

Deferred tax assets 

Deferred tax liabilities 

(cid:49)(cid:40)(cid:55) D(cid:40)(cid:41)(cid:40)(cid:53)(cid:53)(cid:40)D (cid:55)(cid:36)(cid:59) L(cid:44)(cid:36)(cid:37)(cid:44)L(cid:44)(cid:55)(cid:44)(cid:40)S 

INCOME TAX ACCOUNTING POLICY 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(610)

(38(cid:15)269) 

6(cid:15)579 

515 

9(cid:15)131 

5(cid:15)806 

(823)

(6(cid:15)620) 

1(cid:15)277 

(cid:11)(cid:21)(cid:22)(cid:15)(cid:19)(cid:20)(cid:23)(cid:12) 

35(cid:15)773 

(58(cid:15)787) 

(cid:11)(cid:21)(cid:22)(cid:15)(cid:19)(cid:20)(cid:23)(cid:12) 

(703)

(47(cid:15)892)

4(cid:15)367

70 

6(cid:15)431

5(cid:15)438

(1(cid:15)019)

(6(cid:15)032)

887 

(cid:11)(cid:22)(cid:27)(cid:15)(cid:23)(cid:24)(cid:22)(cid:12) 

18(cid:15)858 

(57(cid:15)311) 

(cid:11)(cid:22)(cid:27)(cid:15)(cid:23)(cid:24)(cid:22)(cid:12) 

Income tax expense comprises current tax (amounts payable or receivable within 12 months) and deferred 
tax (amounts payable or receivable after 12 months). Tax expense is recognised in profit or loss(cid:15) unless it 
relates to items that have been recognised in e(cid:84)uity as part of other comprehensive income or directly in 
e(cid:84)uity. In this instance(cid:15) the related tax expense is also recognised in other comprehensive income or directly 
in e(cid:84)uity.  

Current income tax 

Current income tax assets and liabilities for the current and prior periods are measured at the amount 
expected to be recovered from or paid to the tax authorities based on the current and prior period taxable 
income. The tax rates and tax laws used to calculate tax amounts are those that are enacted or substantially 
enacted by the reporting date. 

Deferred income tax 

Deferred income tax is recognised on taxable temporary differences at the reporting date between the tax
base of the assets and liabilities and their carrying amounts for financial reporting purposes based on the 
expected manner of recovery of the carrying value of an asset or liability. Deferred tax assets and liabilities 
are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability 
is settled(cid:15) based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting 
date. 

Annual Report 2017   52

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP PERFORMANCE 

6 

INCOME TA(cid:59) (CONTINUED) 

INCOME TAX ACCOUNTING POLICY (CONTINUED) 

Deferred income tax liabilities are recognised for all temporary differences except(cid:29) 

 When the deferred income tax liability arises from the initial recognition of an asset or liability in a

transaction that is not a business combination and(cid:15) at the time of the transaction(cid:15) affects neither the
accounting profit nor the taxable profit or loss(cid:29) and

 When the taxable temporary difference is associated with investments in subsidiaries(cid:15) associates and
interest in (cid:77)oint ventures(cid:15) and the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all taxable temporary differences(cid:15) except for the following(cid:29) 

 When the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that
is not a business combination and(cid:15) at the time of the transaction affects neither the accounting profit nor
taxable profit(cid:30)

 When the deductible temporary difference is associated with investments in subsidiaries(cid:15) associates and
interest in (cid:77)oint ventures(cid:15) in which case the deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available to utilise the deferred tax asset.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the 
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the 
deferred income tax asset to be utilised. 

Unrecognised deferred income tax assets are reassessed at each reporting date and recognised to the 
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. 

Tax assets and tax liabilities are offset only if a legally enforceable right exists to set off and the tax assets 
and tax liabilities relate to the same taxable entity and the same taxation authority. 

Tax consolidation 

Premier Investments Limited and its wholly owned Australian controlled entities have implemented a tax 
consolidation group. The head entity(cid:15) Premier Investments Limited and the controlled entities continue to 
account for their own current and deferred tax amounts. The Group has applied the Group allocation 
approach to determining the appropriate amount of current taxes and deferred taxes to allocate to members 
of the tax consolidated group. The agreement provides for the allocation of income tax liabilities between the 
entities should the head entity default on its tax payment obligations. At reporting date the possibility of 
default is remote. 

In addition to its own current and deferred tax amounts(cid:15) Premier Investments Limited also recognises the 
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax 
credits assumed from controlled entities in the tax consolidated group. 

KEY ACCOUNTING ESTIMATES AND JUDGEMENTS 

Deferred tax assets are recognised for taxable temporary differences as management considers that is it 
probable that future taxable profits will be available to utilise those temporary differences. Significant 
management (cid:77)udgement is re(cid:84)uired to determine the amount of deferred tax assets that can be recognised(cid:15) 
based upon the likely timing and the level of future taxable profits over the next two years together with 
future tax planning strategies.  

53   Premier Investments Limited

Assumptions about the generation of future taxable profits depend on management(cid:10)s estimates of future 
cash flows. These depend on estimates of future sales volumes(cid:15) operating costs(cid:15) capital expenditure(cid:15) 
dividends and other capital management transactions. Judgements are also re(cid:84)uired about the application 
of income tax legislation. 

These (cid:77)udgements and assumptions are sub(cid:77)ect to risk and uncertainty(cid:15) hence there is a possibility that 
changes in circumstances will alter expectations(cid:15) which may impact the amount of deferred tax assets and 
deferred tax liabilities recognised in the statement of financial position and the amount of other tax losses 
and temporary differences not yet recognised. In such circumstances(cid:15) some or all of the carrying amounts of 
recognised deferred tax assets and liabilities may re(cid:84)uire ad(cid:77)ustment(cid:15) resulting in a corresponding credit or 
charge to profit or loss in the statement of comprehensive income. 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

7  EARNINGS PER SHARE

The following reflects the income and share data used in the 
calculation of basic and diluted earnings per share(cid:29) 

Net profit for the period 

105(cid:15)136

103(cid:15)874

Weighted average number of ordinary shares used in 
calculating(cid:29)   

(cid:16) basic earnings per share

(cid:16) diluted earnings per share

NUMBER OF 
SHARES 
(cid:181)000 

NUMBER OF
SHARES
(cid:181)000 

157(cid:15)436

158(cid:15)693 

156(cid:15)733

157(cid:15)918

There have been no other conversions to(cid:15) calls of(cid:15) or subscriptions for ordinary shares or issues of potential 
ordinary shares since the reporting date and before the completion of this financial report. 

EARNINGS PER SHARE ACCOUNTING POLICY 

Basic earnings per share are calculated as net profit attributable to members of the parent divided by the 
weighted average number of ordinary shares.

Diluted earnings per share is calculated as net profit attributable to members of the parent(cid:15) ad(cid:77)usted for costs 
of servicing e(cid:84)uity(cid:15) the after tax effect of dividends and interest associated with dilutive potential ordinary 
shares that have been recognised as expenses(cid:15) and other non(cid:16)discretionary changes in revenue or expenses 
during the period that would result from the dilution of potential ordinary shares(cid:15) divided by the weighted 
average number of ordinary shares and dilutive potential ordinary shares. 

Annual Report 2017   54

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP PERFORMANCE

8  A) DIVIDENDS PAID AND PROPOSED 

DIVIDENDS PAID 

Declared and paid during the year(cid:29) 

Interim franked dividends for 2017:

26 cents per share (2016(cid:29) 23 cents) 

Final franked dividends for 2016: 

25 cents per share (2015(cid:29) 21 cents) 

(cid:55)(cid:50)(cid:55)(cid:36)L D(cid:40)CL(cid:36)(cid:53)(cid:40)D (cid:36)(cid:49)D (cid:51)(cid:36)(cid:44)D D(cid:56)(cid:53)(cid:44)(cid:49)(cid:42) (cid:55)(cid:43)(cid:40) (cid:60)(cid:40)(cid:36)(cid:53) 

DIVIDENDS PROPOSED  

Final franked dividend proposed for 2017(cid:29) 

27 cents per share (2016(cid:29) 25 cents) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19)

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

40(cid:15)994 

36(cid:15)129 

39(cid:15)358 

(cid:27)(cid:19)(cid:15)(cid:22)(cid:24)(cid:21) 

32(cid:15)840 

(cid:25)(cid:27)(cid:15)(cid:28)(cid:25)(cid:28) 

42(cid:15)592 

39(cid:15)358 

On 24 September 2017(cid:15) the Directors of Premier Investments Limited declared a final dividend in respect 
of the 2017 financial year. The total amount of the dividend is (cid:7)42(cid:15)592(cid:15)000 (2016(cid:29) (cid:7)39(cid:15)358(cid:15)000) which 
represents a fully franked dividend of 27 cents per share (2016(cid:29) 25 cents per share). 

8  B) FRANKING CREDIT BALANCE 

The below table provides information about franking credits  
available for use in subse(cid:84)uent reporting periods(cid:29) 

FRANKING CREDIT BALANCE 

The amount of franking credits available for the 
subse(cid:84)uent financial year are(cid:29) 

(cid:16) franking account balance as at the end of the

financial year at 30(cid:8) (2016(cid:29) 30(cid:8))

(cid:16) franking credits that will arise from the payment of
income tax payable as at the end of the financial
year

(cid:16) franking debits that will arise from the payment of

dividends as at the end of the financial year

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:41)(cid:53)(cid:36)(cid:49)(cid:46)(cid:44)(cid:49)(cid:42) C(cid:53)(cid:40)D(cid:44)(cid:55) (cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

212(cid:15)295

200(cid:15)959

12(cid:15)322 

27(cid:15)434

(18(cid:15)254) 

(cid:21)(cid:19)(cid:25)(cid:15)(cid:22)(cid:25)(cid:22)

(16(cid:15)839) 

(cid:21)(cid:20)(cid:20)(cid:15)(cid:24)(cid:24)(cid:23)

The tax rate at which paid dividends have been franked is 30(cid:8) (2016(cid:29) 30(cid:8)). Dividends proposed will be 
franked at the rate of 30(cid:8) (2016(cid:29) 30(cid:8)). 

55   Premier Investments Limited

 
OPERATING ASSETS AND LIABILITIES 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

9 

TRADE AND OTHER RECEIVABLES (CURRENT) 

Sundry debtors 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:55)(cid:53)(cid:36)D(cid:40) (cid:36)(cid:49)D (cid:50)(cid:55)(cid:43)(cid:40)(cid:53) (cid:53)(cid:40)C(cid:40)(cid:44)(cid:57)(cid:36)(cid:37)L(cid:40)S

23(cid:15)682 

(cid:21)(cid:22)(cid:15)(cid:25)(cid:27)(cid:21) 

16(cid:15)461 

(cid:20)(cid:25)(cid:15)(cid:23)(cid:25)(cid:20) 

(a) Impairment losses

Receivables are non(cid:16)interest(cid:16)bearing and are generally on 30 to 60 day terms. A provision for impairment loss is 
recognised where there is ob(cid:77)ective evidence that an individual receivable balance is impaired. No impairment 
loss has been recognised by the Group during the financial year ended 29 July 2017 (2016(cid:29) (cid:7)nil).  During the 
year(cid:15) no bad debt expense (2016(cid:29) (cid:7)nil) was recognised. It is expected that sundry debtor balances will be 
received when due.

(b) Fair value

Due to the short(cid:16)term nature of these receivables(cid:15) their carrying value is considered to approximate their fair 
value. 

TRADE AND OTHER RECEIVABLES ACCOUNTING POLICY 

Trade and other receivables are classified as non(cid:16)derivative financial assets(cid:15) and are recognised initially at fair 
value. After initial measurement(cid:15) these assets are measured at amortised cost(cid:15) less any provisions for actual 
impairment losses. Gains and losses are recognised in profit or loss when the loans and receivables are 
derecognised or impaired. 

10 

INVENTORIES 

Finished goods 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:44)(cid:49)(cid:57)(cid:40)(cid:49)(cid:55)(cid:50)(cid:53)(cid:44)(cid:40)S (cid:36)(cid:55) L(cid:50)(cid:58)(cid:40)(cid:53) (cid:50)(cid:41) C(cid:50)S(cid:55) (cid:36)(cid:49)D (cid:49)(cid:40)(cid:55) 
(cid:53)(cid:40)(cid:36)L(cid:44)S(cid:36)(cid:37)L(cid:40) (cid:57)(cid:36)L(cid:56)(cid:40) 

INVENTORIES ACCOUNTING POLICY 

Inventories are valued at the lower of cost and net realisable value.   

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

140(cid:15)755

123(cid:15)556

(cid:20)(cid:23)(cid:19)(cid:15)(cid:26)(cid:24)(cid:24)

(cid:20)(cid:21)(cid:22)(cid:15)(cid:24)(cid:24)(cid:25)

Costs incurred in bringing each product to its present location and conditions are accounted for as follows(cid:29) 

- Finished goods and work(cid:16)in(cid:16)progress (cid:16) purchase cost plus a proportion of the purchasing department(cid:15) freight(cid:15)

handling and warehouse costs incurred to deliver the goods to the point of sale.

Net realisable value is the estimated selling price in the ordinary course of business(cid:15) less the estimated direct 
costs necessary to make the sale.

Annual Report 2017   56

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

OPERATING ASSETS AND LIABILITIES 

11  OTHER ASSETS (CURRENT) 

Deposits and prepayments 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:50)(cid:55)(cid:43)(cid:40)(cid:53) C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:36)SS(cid:40)(cid:55)S 

12  TRADE AND OTHER PAYABLES (CURRENT) 

Trade creditors 

Other creditors and accruals 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:55)(cid:53)(cid:36)D(cid:40) (cid:36)(cid:49)D (cid:50)(cid:55)(cid:43)(cid:40)(cid:53) (cid:51)(cid:36)(cid:60)(cid:36)(cid:37)L(cid:40)S 

(a) Fair values

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

11(cid:15)572 

(cid:20)(cid:20)(cid:15)(cid:24)(cid:26)(cid:21) 

39(cid:15)318 

32(cid:15)210 

(cid:26)(cid:20)(cid:15)(cid:24)(cid:21)(cid:27) 

11(cid:15)694 

(cid:20)(cid:20)(cid:15)(cid:25)(cid:28)(cid:23) 

31(cid:15)632 

41(cid:15)333 

(cid:26)(cid:21)(cid:15)(cid:28)(cid:25)(cid:24) 

Due to the short(cid:16)term nature of these payables(cid:15) their carrying values approximate their fair values.

TRADE AND OTHER PAYABLES ACCOUNTING POLICY

Trade and other payables are recognised and carried at original invoice cost(cid:15) which is the fair value of the 
consideration to be paid in the future for goods and services received whether or not billed to the Group. 

Trade liabilities are normally settled on terms of between 7 and 90 days. 

13  PROVISIONS 

CURRENT 

Employee entitlements (cid:177) Annual Leave   

Employee entitlements (cid:177) Long Service Leave   

Other provisions  

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:51)(cid:53)(cid:50)(cid:57)(cid:44)S(cid:44)(cid:50)(cid:49)S 

NON-CURRENT 

Employee entitlements (cid:177) Long Service Leave   

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:49)(cid:50)(cid:49)(cid:16)C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:51)(cid:53)(cid:50)(cid:57)(cid:44)S(cid:44)(cid:50)(cid:49)S

PROVISIONS ACCOUNTING POLICIES 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19)

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

11(cid:15)348 

6(cid:15)462 

1(cid:15)555 

(cid:20)(cid:28)(cid:15)(cid:22)(cid:25)(cid:24) 

1(cid:15)828 

(cid:20)(cid:15)(cid:27)(cid:21)(cid:27) 

10(cid:15)903 

5(cid:15)554

(cid:16) 

(cid:20)(cid:25)(cid:15)(cid:23)(cid:24)(cid:26) 

1(cid:15)871

(cid:20)(cid:15)(cid:27)(cid:26)(cid:20)

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past 
event(cid:15) it is probable that an outflow of economic benefits will be re(cid:84)uired to settle the obligation and a reliable 
estimate can be made of the amount of the obligation.  

If the effect of the time(cid:16)value of money is material(cid:15) provisions are determined by discounting the expected future 
cash flows at a pre(cid:16)tax discount rate that reflects the risks specific to the liability and the time value of money. 
Where discounting is used(cid:15) the increase in the provision due to the passage of time is recognised as a finance 
cost. 

57   Premier Investments Limited

EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES 

Current annual leave 

The provisions for employee entitlements to wages(cid:15) salaries and annual leave (which are expected to be settled 
wholly within 12 months of the reporting date) represent the amount which the Group has a present obligation to 
pay(cid:15) resulting from employees(cid:182) services provided up to the reporting date. The provisions have been calculated at 
nominal amounts based on current wage and salary rates(cid:15) and include related on(cid:16)costs. 

Long service leave and non-current annual leave 

The liability for long service leave and non(cid:16)current annual leave (which are not expected to be settled wholly 
within 12 months of the reporting date) is recognised in the provision for employee benefits and measured as the 
present value of expected future payments to be made in respect of services provided by employees up to the 
reporting date. Consideration is given to expected future wage and salary levels(cid:15) experience of employee 
departures(cid:15) and periods of service. Related on(cid:16)costs have also been included in the liability. 

Expected future payments are discounted using market yields at the reporting date on high (cid:84)uality corporate 
bonds with terms to maturity that match as closely as possible the estimated cash outflow. 

Retirement benefit obligations 

All employees of the Group are entitled to benefits from the Group(cid:182)s superannuation plan on retirement(cid:15) 
disability or death.  The Group operates a defined contribution plan.  Contributions to the plan are recognised as 
an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash 
refund or a reduction in the future payment is made available. 

14  OTHER LIABILITIES 

CURRENT 

Deferred income 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) 

NON-CURRENT 

Deferred income 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:49)(cid:50)(cid:49)(cid:16)C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

12(cid:15)910 

(cid:20)(cid:21)(cid:15)(cid:28)(cid:20)(cid:19) 

23(cid:15)078 

(cid:21)(cid:22)(cid:15)(cid:19)(cid:26)(cid:27) 

6(cid:15)967 

(cid:25)(cid:15)(cid:28)(cid:25)(cid:26) 

14(cid:15)809 

(cid:20)(cid:23)(cid:15)(cid:27)(cid:19)(cid:28) 

DEFERRED INCOME ACCOUNTING POLICY 

Deferred lease incentives 

Lease incentives are capitalised in the financial statements when received and credited to rent expense over 
the term of the store lease to which they relate. 

Deferred rent 

Operating lease expenses are recognised on a straight(cid:16)line basis over the lease term(cid:15) which includes the 
impact of annual fixed rate percentage increases. 

Annual Report 2017   58

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL INVESTED 

15  PROPERTY(cid:15) PLANT AND EQUIPMENT 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

L(cid:36)(cid:49)D
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:37)(cid:56)(cid:44)LD(cid:44)(cid:49)(cid:42)S
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:51)L(cid:36)(cid:49)(cid:55) (cid:36)(cid:49)D 
(cid:40)(cid:52)(cid:56)(cid:44)(cid:51)M(cid:40)(cid:49)(cid:55)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

L(cid:40)(cid:36)S(cid:40)D 
(cid:51)L(cid:36)(cid:49)(cid:55) (cid:36)(cid:49)D 
(cid:40)(cid:52)(cid:56)(cid:44)(cid:51)M(cid:40)(cid:49)(cid:55) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

C(cid:36)(cid:51)(cid:44)(cid:55)(cid:36)L 
(cid:58)(cid:50)(cid:53)(cid:46)S (cid:44)(cid:49) 
(cid:51)(cid:53)(cid:50)(cid:42)(cid:53)(cid:40)SS
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:55)(cid:50)(cid:55)(cid:36)L
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

21(cid:15)953

54(cid:15)720 

409(cid:15)868 

343 

4(cid:15)799 

491(cid:15)683

(cid:16)

(1(cid:15)761) 

(275(cid:15)201)

(343)

(cid:16)

(277(cid:15)305)

(cid:21)(cid:20)(cid:15)(cid:28)(cid:24)(cid:22)

(cid:24)(cid:21)(cid:15)(cid:28)(cid:24)(cid:28) 

(cid:20)(cid:22)(cid:23)(cid:15)(cid:25)(cid:25)(cid:26)

3(cid:15)203

14(cid:15)178 

120(cid:15)037

18(cid:15)750

39(cid:15)735 

40(cid:15)458 

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16) 

1(cid:15)602

(954)

(24(cid:15)550) 

(cid:16)

(cid:16)

(cid:16)

(540) 

(1(cid:15)081) 

(1(cid:15)259) 

(cid:21)(cid:20)(cid:15)(cid:28)(cid:24)(cid:22)

(cid:24)(cid:21)(cid:15)(cid:28)(cid:24)(cid:28) 

(cid:20)(cid:22)(cid:23)(cid:15)(cid:25)(cid:25)(cid:26)

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:23)(cid:15)(cid:26)(cid:28)(cid:28)

(cid:21)(cid:20)(cid:23)(cid:15)(cid:22)(cid:26)(cid:27)

1(cid:15)819

4(cid:15)582

(1(cid:15)602)

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

139(cid:15)237

103(cid:15)525

(cid:16)

(25(cid:15)504)

(540)

(1(cid:15)081)

(1(cid:15)259)

(cid:23)(cid:15)(cid:26)(cid:28)(cid:28)

(cid:21)(cid:20)(cid:23)(cid:15)(cid:22)(cid:26)(cid:27)

3(cid:15)203

14(cid:15)985 

242(cid:15)121 

343 

1(cid:15)819 

262(cid:15)471

(cid:36)(cid:55) (cid:21)(cid:28) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:26)
Cost 

Accumulated depreciation and 
impairment 

(cid:49)(cid:40)(cid:55) C(cid:36)(cid:53)(cid:53)(cid:60)(cid:44)(cid:49)(cid:42) (cid:36)M(cid:50)(cid:56)(cid:49)(cid:55) 

RECONCILIATIONS:

Carrying amount at beginning
of the financial year 

Additions 

Transfers between classes 

Depreciation 

Impairment 

Disposals 

Exchange differences

Carr(cid:92)in(cid:74) amo(cid:88)n(cid:87) a(cid:87) end o(cid:73)
(cid:87)(cid:75)e (cid:73)inan(cid:70)ial (cid:92)ear 

(cid:36)(cid:55) (cid:22)(cid:19) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:25)

Cost 

Accumulated depreciation and 
impairment 

(cid:49)(cid:40)(cid:55) C(cid:36)(cid:53)(cid:53)(cid:60)(cid:44)(cid:49)(cid:42) (cid:36)M(cid:50)(cid:56)(cid:49)(cid:55) 

(cid:22)(cid:15)(cid:21)(cid:19)(cid:22)

(cid:20)(cid:23)(cid:15)(cid:20)(cid:26)(cid:27) 

(cid:20)(cid:21)(cid:19)(cid:15)(cid:19)(cid:22)(cid:26)

(cid:16)

(807) 

(122(cid:15)084)

(343)

(cid:16)

(cid:16)

(123(cid:15)234)

(cid:20)(cid:15)(cid:27)(cid:20)(cid:28)

(cid:20)(cid:22)(cid:28)(cid:15)(cid:21)(cid:22)(cid:26)

RECONCILIATIONS:

Carrying amount at beginning
of the financial year 

Additions 

Transfers between classes 

Depreciation(cid:18) Amortisation 

Disposals 

Exchange differences

Carr(cid:92)in(cid:74) amo(cid:88)n(cid:87) a(cid:87) end o(cid:73)
(cid:87)(cid:75)e (cid:73)inan(cid:70)ial (cid:92)ear 

3(cid:15)203

14(cid:15)553

103(cid:15)841

12 

1(cid:15)928

123(cid:15)537

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16)

(cid:16) 

(cid:16) 

40(cid:15)858 

1(cid:15)928

(375)

(23(cid:15)467) 

(cid:16)

(cid:16)

(1(cid:15)186) 

(1(cid:15)937) 

(cid:22)(cid:15)(cid:21)(cid:19)(cid:22)

(cid:20)(cid:23)(cid:15)(cid:20)(cid:26)(cid:27) 

(cid:20)(cid:21)(cid:19)(cid:15)(cid:19)(cid:22)(cid:26)

(cid:16)

(cid:16)

(12)
(cid:16)

(cid:16)

(cid:16)

1(cid:15)819

(1(cid:15)928)

(cid:16)

(cid:16) 

(cid:16) 

42(cid:15)677

(cid:16)

(23(cid:15)854) 

(1(cid:15)186)

(1(cid:15)937)

(cid:20)(cid:15)(cid:27)(cid:20)(cid:28)

(cid:20)(cid:22)(cid:28)(cid:15)(cid:21)(cid:22)(cid:26)

59   Premier Investments Limited

LAND AND BUILDINGS 

The land and buildings with a combined carrying amount of (cid:7)74(cid:15)912(cid:15)000 have been pledged to secure certain 
interest(cid:16)bearing borrowings of the Group (refer to note 20).  

PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY 

Property(cid:15) Plant and e(cid:84)uipment is stated at historical cost less accumulated depreciation and any accumulated 
impairment losses. Depreciation is calculated on a straight(cid:16)line basis over the estimated useful life of the 
asset as follows(cid:29) 

-

-

-

-

Buildings

40 years 

Store plant and e(cid:84)uipment

3 to 10 years

Leased plant and e(cid:84)uipment

2 to 5 years 

Other plant and e(cid:84)uipment

2 to 20 years 

Freehold land is not depreciated. 

KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS 

Estimation of useful lives of assets 

The estimation of the useful lives of assets has been based on historical experience as well as manufacturers(cid:10) 
warranties (for plant and e(cid:84)uipment)(cid:15) lease terms (for leased e(cid:84)uipment) and turnover policies (for motor
vehicles). In addition(cid:15) the condition of the assets is assessed at least once per year and considered against 
the remaining useful life. Ad(cid:77)ustments to useful lives are made on a prospective basis when considered 
necessary. 

IMPAIRMENT TESTING OF PROPERTY, PLANT AND EQUIPMENT AND SIGNIFICANT ACCOUNTING 
ESTIMATES AND ASSUMPTIONS 

The carrying values of property(cid:15) plant and e(cid:84)uipment are reviewed for impairment annually. If an indication of 
impairment exists(cid:15) and where the carrying value of the asset exceeds the estimated recoverable amount(cid:15) the 
assets or cash(cid:16)generating units (CGU) are written down to their recoverable amount. The recoverable amount 
is the greater of fair value less costs of disposal and value(cid:16)in(cid:16)use. Value(cid:16)in(cid:16)use refers to an asset(cid:182)s value 
based on the expected future cash flows arising from its continued use(cid:15) discounted to present value using a 
post(cid:16)tax discount rate that reflect current market assessments of the risks specific to the asset. 

If an asset does not generate largely independent cash inflows(cid:15) the recoverable amount is determined for the 
CGU to which the asset belongs. The recoverable amount was estimated for certain items of plant and 
e(cid:84)uipment on an individual store basis(cid:15) as this has been identified as the CGU of the Group(cid:182)s retail segment.  

These value(cid:16)in(cid:16)use calculations use cash flow pro(cid:77)ections based on financial budgets approved by 
management(cid:15) covering a five year period.  Cash flows within the five year period are extrapolated using a 
growth rate of 4(cid:8) (2016(cid:29) 3(cid:8)).   

The post(cid:16)tax discount rate applied to the cash flow pro(cid:77)ections is 10.5(cid:8) (2016(cid:29) 10.5(cid:8)). The discount rate 
used reflects management(cid:182)s estimate of the risks specific to the CGU that is not already reflected in the cash 
flow.  In determining the appropriate discount rate(cid:15) regard has been given to the weighted average cost of 
capital for the retail segment.  

An impairment loss of (cid:7)539(cid:15)600 was recognised during the current financial year (2016(cid:29) no impairment loss 
was recognised).  

Annual Report 2017   60

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL INVESTED 

16 

INTANGIBLES 

RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND END OF 
THE PERIOD 

(cid:60)(cid:40)(cid:36)(cid:53) (cid:40)(cid:49)D(cid:40)D (cid:21)(cid:28) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:26) 

As at 31 July 2016 net of accumulated 
amortisation and impairment

Trademark registrations

Amortisation 

(cid:36)(cid:86) a(cid:87) (cid:21)(cid:28) (cid:45)(cid:88)l(cid:92) (cid:21)(cid:19)(cid:20)(cid:26) ne(cid:87) o(cid:73) a(cid:70)(cid:70)(cid:88)m(cid:88)la(cid:87)ed 
amor(cid:87)i(cid:86)a(cid:87)ion and im(cid:83)airmen(cid:87) 

AS AT 29 JULY 2017

Cost (gross carrying amount) 

Accumulated amortisation and 
impairment 
(cid:49)(cid:40)(cid:55) C(cid:36)(cid:53)(cid:53)(cid:60)(cid:44)(cid:49)(cid:42) (cid:36)M(cid:50)(cid:56)(cid:49)(cid:55) 

(cid:60)(cid:40)(cid:36)(cid:53) (cid:40)(cid:49)D(cid:40)D (cid:22)(cid:19) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:25) 

As at 26 July 2015 net of accumulated 
amortisation and impairment

Trademark registrations

Amortisation 

Exchange differences

(cid:36)(cid:86) a(cid:87) (cid:22)(cid:19) (cid:45)(cid:88)l(cid:92) (cid:21)(cid:19)(cid:20)(cid:25) ne(cid:87) o(cid:73) a(cid:70)(cid:70)(cid:88)m(cid:88)la(cid:87)ed 
amor(cid:87)i(cid:86)a(cid:87)ion and im(cid:83)airmen(cid:87) 

AS AT 30 JULY 2016

Cost (gross carrying amount) 

Accumulated amortisation and 
impairment 
(cid:49)(cid:40)(cid:55) C(cid:36)(cid:53)(cid:53)(cid:60)(cid:44)(cid:49)(cid:42) (cid:36)M(cid:50)(cid:56)(cid:49)(cid:55) 

GOODWILL ACCOUNTING POLICY 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:42)(cid:50)(cid:50)D(cid:58)(cid:44)LL
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:37)(cid:53)(cid:36)(cid:49)D 
(cid:49)(cid:36)M(cid:40)S
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:55)(cid:53)(cid:36)D(cid:40)M(cid:36)(cid:53)(cid:46)S 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

L(cid:40)(cid:36)S(cid:40)(cid:43)(cid:50)LD 
(cid:51)(cid:53)(cid:40)M(cid:44)(cid:56)MS
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:55)(cid:50)(cid:55)(cid:36)L
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

477(cid:15)085
(cid:16)

376(cid:15)179 
(cid:16) 

(cid:16)

(cid:16) 

1(cid:15)452 
325

(cid:16) 

100 
(cid:16)

(27)

854(cid:15)816
325

(27)

(cid:23)(cid:26)(cid:26)(cid:15)(cid:19)(cid:27)(cid:24)

(cid:22)(cid:26)(cid:25)(cid:15)(cid:20)(cid:26)(cid:28) 

(cid:20)(cid:15)(cid:26)(cid:26)(cid:26) 

(cid:26)(cid:22) 

(cid:27)(cid:24)(cid:24)(cid:15)(cid:20)(cid:20)(cid:23)

477(cid:15)085

376(cid:15)179 

1(cid:15)777 

979 

856(cid:15)020

(cid:16)
(cid:23)(cid:26)(cid:26)(cid:15)(cid:19)(cid:27)(cid:24)

(cid:16) 
(cid:22)(cid:26)(cid:25)(cid:15)(cid:20)(cid:26)(cid:28) 

(cid:16) 
(cid:20)(cid:15)(cid:26)(cid:26)(cid:26) 

(906)
(cid:26)(cid:22) 

(906)
(cid:27)(cid:24)(cid:24)(cid:15)(cid:20)(cid:20)(cid:23)

477(cid:15)085

376(cid:15)179 

(cid:16)

(cid:16)

(cid:16)

(cid:16) 

(cid:16) 

(cid:16) 

1(cid:15)324 

128

(cid:16) 

(cid:16) 

123 

(cid:16)

(27)

4 

854(cid:15)711

128

(27)

4

(cid:23)(cid:26)(cid:26)(cid:15)(cid:19)(cid:27)(cid:24)

(cid:22)(cid:26)(cid:25)(cid:15)(cid:20)(cid:26)(cid:28) 

(cid:20)(cid:15)(cid:23)(cid:24)(cid:21) 

(cid:20)(cid:19)(cid:19) 

(cid:27)(cid:24)(cid:23)(cid:15)(cid:27)(cid:20)(cid:25)

477(cid:15)085

376(cid:15)179 

1(cid:15)452 

989 

855(cid:15)705

(cid:16)
(cid:23)(cid:26)(cid:26)(cid:15)(cid:19)(cid:27)(cid:24)

(cid:16) 
(cid:22)(cid:26)(cid:25)(cid:15)(cid:20)(cid:26)(cid:28) 

(cid:16) 
(cid:20)(cid:15)(cid:23)(cid:24)(cid:21) 

(889)
(cid:20)(cid:19)(cid:19) 

(889)
(cid:27)(cid:24)(cid:23)(cid:15)(cid:27)(cid:20)(cid:25)

Goodwill ac(cid:84)uired in a business combination is initially measured at cost(cid:15) being the excess of the cost of the 
business combination over the Group(cid:182)s interest in the net fair value of the ac(cid:84)uiree(cid:182)s identifiable assets(cid:15) 
liabilities and contingent liabilities. Following initial recognition(cid:15) goodwill is measured at cost less any 
accumulated impairment losses. Goodwill is not amortised but is sub(cid:77)ect to impairment testing. 

61   Premier Investments Limited

GOODWILL ACCOUNTING POLICY (CONTINUED) 

Goodwill is reviewed for impairment annually or more fre(cid:84)uently if events or changes in circumstances 
indicate that the carrying value may be impaired. Goodwill ac(cid:84)uired in a business combination is(cid:15) from the 
date of ac(cid:84)uisition(cid:15) allocated to each of the Group(cid:182)s cash(cid:16)generating units (CGUs) that are expected to benefit 
from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the 
CGU to which the goodwill relates.  

Where the recoverable amount of the CGU is less than the carrying amount(cid:15) an impairment loss is 
recognised. Impairment losses recognised for goodwill are not subse(cid:84)uently reversed. 

OTHER INTANGIBLE ASSETS (excluding goodwill) ACCOUNTING POLICY 

Intangible assets ac(cid:84)uired separately are initially measured at cost. Intangible assets ac(cid:84)uired in a business 
combination are initially recognised at fair value. Following initial recognition(cid:15) intangible assets are carried at 
cost less any accumulated amortisation and any accumulated impairment losses. 

The useful lives of intangible assets are assessed as either finite or indefinite. 

A summary of the key accounting policies applied to the Group(cid:182)s intangible assets are as follows(cid:29) 

Brands 

Leasehold Premiums 

Trademarks & Licences 

(cid:56)(cid:86)e(cid:73)(cid:88)l li(cid:73)e 
a(cid:86)(cid:86)e(cid:86)(cid:86)men(cid:87)(cid:34) 

Indefinite 

Finite 

Indefinite 

Me(cid:87)(cid:75)od (cid:88)(cid:86)ed(cid:34) 

Not amortised or revalued 

Amortised over the term 
of the lease 

Not amortised or revalued 

(cid:44)n(cid:87)ernall(cid:92)
(cid:74)enera(cid:87)ed or 
a(cid:70)(cid:84)(cid:88)ired(cid:34) 

(cid:44)m(cid:83)airmen(cid:87) 
(cid:87)e(cid:86)(cid:87)(cid:18)re(cid:70)overa(cid:69)le 
amo(cid:88)n(cid:87) (cid:87)e(cid:86)(cid:87)in(cid:74) 

Ac(cid:84)uired

Ac(cid:84)uired

Ac(cid:84)uired

Annually(cid:30) for indicators of 
impairment 

Amortisation method 
reviewed at each financial 
year end(cid:30) reviewed 
annually for indicators of 
impairment 

Annually(cid:30) for indicators of 
impairment 

Brand names(cid:15) trademarks and licences are assessed as having an indefinite useful life(cid:15) as this reflects 
management(cid:182)s intention to continue to operate these to generate net cash inflows into the foreseeable future. 
These assets are not amortised but are sub(cid:77)ect to impairment testing. 

Intangible assets are tested for impairment where an indicator of impairment exists(cid:15) or in the case of indefinite 
life intangibles(cid:15) impairment is tested annually or where an indicator of impairment exists.  

Where the carrying amount of an intangible asset exceeds its recoverable amount(cid:15) the asset is considered 
impaired and is written down to its recoverable amount. The recoverable amount is the higher of the asset(cid:182)s 
value(cid:16)in(cid:16)use and fair value less costs of disposal. Value(cid:16)in use refers to an asset(cid:182)s value based on the 
expected future cash flows arising from its continued use(cid:15) discounted to present value using a post(cid:16)tax 
discount rate that reflect current market assessments of the risks specific to the asset. 

If an asset does not generate largely independent cash inflows(cid:15) the recoverable amount is determined for the 
CGU to which the asset belongs. 

Annual Report 2017   62

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL INVESTED 

16 

INTANGIBLES (CONTINUED)

SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS 

The recoverable amounts of CGUs are determined based on the higher of value(cid:16)in(cid:16)use calculations or fair value 
less costs of disposal. These calculations depend on management estimates and assumptions. In particular(cid:15) 
significant estimates and (cid:77)udgements are made in relation to the key assumptions used in forecasting future 
cash flows and the expected growth rates used in these cash flow pro(cid:77)ections(cid:15) as well as the discount rates 
applied to these cash flows. Management assesses these assumptions each reporting period and considers the 
potential impact of changes to these assumptions. 

IMPAIRMENT TESTING OF GOODWILL  

The key factors contributing to the goodwill relate to the synergies existing within the ac(cid:84)uired business and 
also synergies expected to be achieved as a result of combining Just Group Limited with the rest of the Group.  
Accordingly(cid:15) goodwill is assessed at a retail segment level. 

The recoverable amount of the CGU has been determined based upon a value(cid:16)in(cid:16)use calculation(cid:15) using cash 
flow pro(cid:77)ections as at July 2017 for a period of five years plus a terminal value. The cash flow pro(cid:77)ections are 
based on financial estimates approved by senior management and the Board for the 2018 financial year and 
are pro(cid:77)ected for a further four years based on estimated growth rates of 3.3(cid:8) (2016(cid:29) 3.4(cid:8) to 3.5(cid:8)). As part of 
the annual impairment test for goodwill(cid:15) management assesses the reasonableness of growth rate assumptions 
by reviewing historical cash flow pro(cid:77)ections as well as future growth ob(cid:77)ectives. 

Cash flows beyond the five year period are extrapolated using a growth rate of 3(cid:8) (2016(cid:29) 3(cid:8)) which reflects 
the long(cid:16)term growth expectation beyond the five year pro(cid:77)ection. 

The post(cid:16)tax discount rate applied to these cash flow pro(cid:77)ections is 10.0(cid:8) (2016(cid:29) 10.1(cid:8)).  The discount rate 
has been determined using the weighted average cost of capital which incorporates both the cost of debt and 
the cost of capital specific to the asset. 

Management has considered the reasonably possible changes in expected sales growth(cid:15) forecast Earnings 
Before Interest(cid:15) Tax and Amortisation (EBITA) and discount rates applied within the CGU to which goodwill 
relate(cid:15) each of which have been sub(cid:77)ect to sensitivities. A reasonably possible adverse change in these key 
assumptions on which the recoverable amount is based would not cause the carrying amount of the CGU to 
exceed its recoverable amount. 

IMPAIRMENT TESTING OF BRAND NAMES 

Brand names ac(cid:84)uired through business combinations have been allocated to the following CGU groups 
((cid:7)(cid:182)000) as no individual brand name is considered significant(cid:29) 

 Casual wear (cid:16) (cid:7)188(cid:15)975

 Women(cid:182)s wear (cid:16) (cid:7)137(cid:15)744

 Non Apparel (cid:16) (cid:7)49(cid:15)460

The recoverable amounts of brand names ac(cid:84)uired in a business combination have been determined on an 
individual brand basis based upon a value(cid:16)in(cid:16)use calculation. The value(cid:16)in(cid:16)use calculation has been determined 
based upon the relief from royalty method using cash flow pro(cid:77)ections as at July 2017 for a period of five years 
plus a terminal value. The cash flow pro(cid:77)ections are based on financial estimates approved by senior 
management and the Board for the 2018 financial year and are pro(cid:77)ected for a further four years based on 
estimated growth rates.  

63   Premier Investments Limited

The extrapolated growth rates at which cash flows have been discounted for the individual brands within each 
of the CGU groups have been summarised below. Cash flows beyond the five year period are extrapolated 
using a growth rate of 3(cid:8) (2016(cid:29) 3(cid:8))(cid:15) which reflects the long(cid:16)term growth expectation beyond the five year 
pro(cid:77)ection. 

CGU 

AVERAGE GROWTH RATES 

TERMINAL VALUE 

APPLIED TO PROJECTED 

GROWTH RATE 

CASH FLOWS 

Casual wear

3.5(cid:8) 

Women(cid:182)s wear 

2.5(cid:8) to 3.5(cid:8) 

Non Apparel 

3(cid:8) 

3(cid:8) 

3(cid:8) 

3(cid:8) 

As part of the annual impairment test for brand names(cid:15) management assesses the reasonableness of growth 
rate assumptions by reviewing historical cash flow pro(cid:77)ections as well as future growth ob(cid:77)ectives. 

The post(cid:16)tax discount rate applied to the cash flow pro(cid:77)ections for each of the three CGU groups is 8.7(cid:8)  
(2016(cid:29) 9.0(cid:8)). The discount rate has been determined using the weighted average cost of capital which 
incorporates both the cost of debt and cost of capital specific to the asset.  

Royalty rates have been determined for each brand within the CGU groups by considering the brand(cid:182)s history 
and future expected performance. Factors such as the profitability of the brand(cid:15) market share(cid:15) brand recognition 
and general conditions in the industry have also been considered in determining an appropriate royalty rate for 
each brand.  Consideration is also given to the industry norms relating to royalty rates by analysing market 
derived data for comparable brands and by considering the notional royalty payments as a percentage of the 
divisional earnings before interest and taxation generated by the division in which the Brand names are used.  
Net royalty rates applied across the three CGU groups range between 3.5(cid:8) and 8.5(cid:8) (2016(cid:29) 3.5(cid:8) and 8.5(cid:8)).  

Management has considered reasonably possible adverse changes in key assumptions applied to brands within 
the relevant CGU groups(cid:15) each of which have been sub(cid:77)ected to sensitivities. Key assumptions relate to 
expected sales growth(cid:15) net royalty rates and discount rates applied.  

A brand within the Casual Wear CGU group with a carrying value of (cid:7)112.2 million(cid:15) indicated sensitivity to a 
reasonably possible adverse change to the post(cid:16)tax discount rate applied to the cash flow pro(cid:77)ections(cid:15) as well 
as indicating sensitivity to a reasonably possible adverse change in net royalty rates. 

An increase in the post(cid:16)tax discount rate to 9.5(cid:8) applied to the cash flow pro(cid:77)ections could result in the carrying 
value of the brand within the particular CGU group to approximate its recoverable amount. It is estimated that a 
1(cid:8) reduction in the net royalty rate could result in a decrease in the recoverable amount of the brand within the 
particular CGU group leading to a potential impairment of (cid:7)6 million. The potential impairment losses as a result 
of the reasonably possible adverse changes to these key assumptions are not considered material to the overall 
recoverable amount of the CGU group to which the brand relates.

Annual Report 2017   64

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL INVESTED 

17  AVAILABLE(cid:16)FOR(cid:16)SALE FINANCIAL ASSETS 

INVESTMENTS 

Investment in listed securities at fair value 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)M(cid:40)(cid:49)(cid:55)S 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

67(cid:15)665 

(cid:25)(cid:26)(cid:15)(cid:25)(cid:25)(cid:24) 

(cid:16) 

(cid:16) 

AVAILABLE-FOR-SALE FINANCIAL ASSETS ACCOUNTING POLICY 

Available(cid:16)for(cid:16)sale financial assets are non(cid:16)derivative financial assets(cid:15) which represent e(cid:84)uity instruments. All 
available(cid:16)for(cid:16)sale financial assets are initially recognised at cost(cid:15) being the fair value of the consideration given 
plus transaction costs attributable to the ac(cid:84)uisition. These financial assets are subse(cid:84)uently measured at fair 
value(cid:15) with unrealised gains or losses recognised directly in other comprehensive income and accumulated in 
e(cid:84)uity in the fair value reserve(cid:15) until the investment is derecognised or until the investment is deemed to be 
impaired(cid:15) at which time the cumulative gain or loss previously reported in e(cid:84)uity is recognised in profit or loss. 

The fair value of investments in listed securities is determined by reference to (cid:84)uoted market bid prices at the 
close of business on the reporting date. 

18 

INVESTMENT IN ASSOCIATE 

Movements in carrying amounts 

Carrying amount at the beginning of the financial year 

Increase in investment in associate  

Share of profit after income tax 

Share of other comprehensive income 

Dividends received 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:44)(cid:49)(cid:57)(cid:40)S(cid:55)M(cid:40)(cid:49)(cid:55) (cid:44)(cid:49) (cid:36)SS(cid:50)C(cid:44)(cid:36)(cid:55)(cid:40) 

Breville Group Limited 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

213(cid:15)392

(cid:16) 

14(cid:15)799 

(700) 

(10(cid:15)551) 

(cid:21)(cid:20)(cid:25)(cid:15)(cid:28)(cid:23)(cid:19) 

209(cid:15)477

29 

13(cid:15)792 

(70) 

(9(cid:15)836) 

(cid:21)(cid:20)(cid:22)(cid:15)(cid:22)(cid:28)(cid:21) 

As at 29 July 2017(cid:15) Premier Investments Limited holds 27.5(cid:8) (2016(cid:29) 27.5(cid:8)) of Breville Group Limited(cid:15) a 
company incorporated in Australia whose shares are (cid:84)uoted on the Australian Securities Exchange. The 
principal activities of Breville Group Limited involves the innovation(cid:15) development(cid:15) marketing and distribution of 
small electrical appliances.  

As at 29 July 2017(cid:15) the fair value of the Group(cid:182)s interest in Breville Group Limited as determined based on the 
(cid:84)uoted market price was (cid:7)362(cid:15)314(cid:15)615 (2016(cid:29) (cid:7)282(cid:15)555(cid:15)326). 

There were no impairment losses relating to the investment in associate and no capital commitments or other 
commitments relating to the associate. The Group(cid:182)s share of the profit after tax in its investment in associate for 
the year was (cid:7)14(cid:15)798(cid:15)967 (2016(cid:29) (cid:7)13(cid:15)792(cid:15)283). 

65   Premier Investments Limited

The financial year end date of Breville Group Limited is 30 June. For the purpose of applying the e(cid:84)uity 
method of accounting(cid:15) the financial statements of Breville Group Limited for the year ended 30 June 2017 
have been used. The accounting policies applied by Breville Group Limited in their financial statements 
materially conform to those used by the Group for like transactions and events in similar circumstances. 

The following table illustrates summarised financial information relating to the Group(cid:182)s investment in Breville 
Group Limited(cid:29) 

EXTRACT OF BREVILLE GROUP LIMITED’S  STATEMENT OF 
FINANCIAL POSITION 

(cid:22)(cid:19) (cid:45)(cid:56)(cid:49)(cid:40) (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:22)(cid:19) (cid:45)(cid:56)(cid:49)(cid:40) (cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

Current assets 

Non(cid:16)current assets 

Total assets 

Current liabilities 

Non(cid:16)current liabilities 

Total liabilities 

NET ASSETS 

300(cid:15)934

116(cid:15)585

417(cid:15)519

(116(cid:15)946) 

(40(cid:15)964) 

(157(cid:15)910) 

259(cid:15)609

258(cid:15)512

111(cid:15)455

369(cid:15)967

(108(cid:15)204) 

(15(cid:15)758) 

(123(cid:15)962) 

246(cid:15)005

(cid:42)ro(cid:88)(cid:83)(cid:182)(cid:86) (cid:86)(cid:75)are o(cid:73) (cid:37)reville (cid:42)ro(cid:88)(cid:83) Limi(cid:87)ed ne(cid:87) a(cid:86)(cid:86)e(cid:87)(cid:86) 

(cid:26)(cid:20)(cid:15)(cid:22)(cid:25)(cid:26) 

(cid:25)(cid:26)(cid:15)(cid:25)(cid:21)(cid:26) 

EXTRACT OF BREVILLE GROUP LIMITED’S  STATEMENT OF 
COMPREHENSIVE INCOME 

(cid:22)(cid:19) (cid:45)(cid:56)(cid:49)(cid:40) (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:22)(cid:19) (cid:45)(cid:56)(cid:49)(cid:40) (cid:21)(cid:19)(cid:20)(cid:25) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

Revenue 

Profit after income tax 

Other comprehensive (loss) income

(cid:42)ro(cid:88)(cid:83)(cid:182)(cid:86) (cid:86)(cid:75)are o(cid:73) (cid:37)reville (cid:42)ro(cid:88)(cid:83) Limi(cid:87)ed (cid:83)ro(cid:73)i(cid:87) a(cid:73)(cid:87)er 
in(cid:70)ome (cid:87)a(cid:91) 

605(cid:15)733

53(cid:15)834 

(2(cid:15)548) 

576(cid:15)573

50(cid:15)172 

(255) 

(cid:20)(cid:23)(cid:15)(cid:26)(cid:28)(cid:28) 

(cid:20)(cid:22)(cid:15)(cid:26)(cid:28)(cid:21) 

INVESTMENT IN ASSOCIATE ACCOUNTING POLICY 

An associate is an entity over which the Group has significant influence. Significant influence is the power to 
participate in the financial and operating policy decisions of the investee(cid:15) but is not control or (cid:77)oint control over 
those policies. The considerations made in determining significant influence are similar to those necessary to 
determine control over subsidiaries. 

The Group accounts for its investments in associate using the e(cid:84)uity method of accounting in the consolidated 
financial statements. Under the e(cid:84)uity method(cid:15) the investment in the associate is initially recognised at cost. 
Thereafter(cid:15) the carrying amount of the investment is ad(cid:77)usted to recognise the Group(cid:182)s share of profit after tax 
of the associate(cid:15) which is recognised in profit or loss(cid:15) and the Group(cid:182)s share of other comprehensive income(cid:15) 
which is recognised in other comprehensive income in the statement of comprehensive income. Dividends 
received from the associate generally reduces the carrying amount of the investment. 

After application of the e(cid:84)uity method(cid:15) the Group determines whether it is necessary to recognise an 
impairment loss on its investment in an associate. At each reporting period(cid:15) the Group determines whether 
there is ob(cid:77)ective evidence that the investment in the associate is impaired. If there is such evidence(cid:15) the 
Group calculates the amount of impairment as the difference between the recoverable amount of the 
associate and its carrying value(cid:15) then recognises the impairment loss in profit or loss in the statement of 
comprehensive income. 

Annual Report 2017   66

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

33(cid:15)623 
137(cid:15)008

(cid:20)(cid:26)(cid:19)(cid:15)(cid:25)(cid:22)(cid:20)

29(cid:15)551 
253(cid:15)682 

(cid:21)(cid:27)(cid:22)(cid:15)(cid:21)(cid:22)(cid:22)

105(cid:15)136

103(cid:15)874

27 
25(cid:15)504 
540 
(669) 
(14(cid:15)799) 
(cid:16) 
300 
492 
6(cid:15)210 
(4(cid:15)990) 
302 

2(cid:15)865 
1(cid:15)476 
(1(cid:15)437) 
5(cid:15)921 
14(cid:15)212 
(7(cid:15)221) 
122 
(17(cid:15)199) 
1(cid:15)455 
(6(cid:15)393) 
(14(cid:15)017) 

(cid:28)(cid:26)(cid:15)(cid:27)(cid:22)(cid:26) 

39 
23(cid:15)842 
(cid:16) 
191
(13(cid:15)792) 
33 
191 
413 
2(cid:15)264
(31(cid:15)488) 
(230) 

449 
(6(cid:15)974) 
7(cid:15)291
16(cid:15)063 
(6(cid:15)464) 
(632) 
(5(cid:15)385) 
(11(cid:15)742) 
30(cid:15)930 
(5(cid:15)382) 
172 

(cid:20)(cid:19)(cid:22)(cid:15)(cid:25)(cid:25)(cid:22) 

19  NOTES TO THE STATEMENT OF CASH FLOWS  

(a) RECONCILIATION OF CASH AND CASH EQUIVALENTS

Cash at bank and in hand
Short(cid:16)term deposits

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:36)S(cid:43) (cid:36)(cid:49)D C(cid:36)S(cid:43) (cid:40)(cid:52)(cid:56)(cid:44)(cid:57)(cid:36)L(cid:40)(cid:49)(cid:55)S  

(b) RECONCILIATION OF NET PROFIT AFTER INCOME
TAX TO NET CASH FLOWS FROM OPERATIONS

Net profit for the period

Adjustments for:

Amortisation 
Depreciation 
Impairment and write(cid:16)off of non(cid:16)current assets 
Foreign exchange (gains) losses  
Share of profit of associates 
Finance charges on capitalised leases 
Borrowing costs 
Net loss on disposal of property(cid:15) plant and e(cid:84)uipment 
Share(cid:16)based payments expense 
Gross movement in cash flow hedge reserve  
Net exchange differences

Changes in assets and liabilities net of the effects from 
acquisition and disposal of businesses: 

Increase in provisions 
Increase (decrease) in deferred tax liabilities
(Decrease) increase in trade and other payables 
Increase in other financial liabilities 
Increase (decrease) in deferred income 
Increase in trade and other receivables 
Decrease (increase) in other current assets
Increase in inventories 
Decrease in other financial assets 
Increase in deferred tax assets 
(Decrease) increase in income tax payable 

(cid:49)(cid:40)(cid:55) C(cid:36)S(cid:43) (cid:41)L(cid:50)(cid:58)S (cid:41)(cid:53)(cid:50)M (cid:50)(cid:51)(cid:40)(cid:53)(cid:36)(cid:55)(cid:44)(cid:49)(cid:42) (cid:36)C(cid:55)(cid:44)(cid:57)(cid:44)(cid:55)(cid:44)(cid:40)S 

67   Premier Investments Limited

(c) FINANCE FACILITIES

Working capital and bank overdraft facility
Used
Unused

Finance facility  
Used 
Unused 

Bank guarantee facility 
Used 
Unused 

Interchangeable facility 
Used  
Unused 

Total facilities 
Used 
Unused 
(cid:55)(cid:50)(cid:55)(cid:36)L 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

- 

11(cid:15)800 

11(cid:15)800 

174(cid:15)000
55(cid:15)000 

229(cid:15)000

51 
149 

200 

6(cid:15)759
1(cid:15)241 

8(cid:15)000 

180(cid:15)810
68(cid:15)190 

(cid:21)(cid:23)(cid:28)(cid:15)(cid:19)(cid:19)(cid:19)

- 

11(cid:15)800 

11(cid:15)800 

106(cid:15)000
53(cid:15)000 

159(cid:15)000

51 
149 

200 

5(cid:15)156
2(cid:15)844

8(cid:15)000

111(cid:15)207
67(cid:15)793 

(cid:20)(cid:26)(cid:28)(cid:15)(cid:19)(cid:19)(cid:19)

CASH AND CASH EQUIVALENTS ACCOUNTING POLICY 

Cash and cash e(cid:84)uivalents in the statement of financial position comprise cash on hand and in banks(cid:15) money 
market investments readily convertible to cash within two working days and short(cid:16)term deposits with an 
original maturity of three months or less that are readily convertible to known amounts of cash and which are 
sub(cid:77)ect to an insignificant risk of changes in value. 

For the purposes of the statement of cash flows(cid:15) cash and cash e(cid:84)uivalents consist of cash and cash 
e(cid:84)uivalents as defined above(cid:15) net of outstanding bank overdrafts. 

Annual Report 2017   68

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

20 

INTEREST(cid:16)BEARING LIABILITIES 

NON-CURRENT

Bank loans(cid:13) unsecured 

Bank loans (cid:13)(cid:13) secured 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:44)(cid:49)(cid:55)(cid:40)(cid:53)(cid:40)S(cid:55)(cid:16)(cid:37)(cid:40)(cid:36)(cid:53)(cid:44)(cid:49)(cid:42) L(cid:44)(cid:36)(cid:37)(cid:44)L(cid:44)(cid:55)(cid:44)(cid:40)S 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

104(cid:15)475

69(cid:15)000 

(cid:20)(cid:26)(cid:22)(cid:15)(cid:23)(cid:26)(cid:24) 

86(cid:15)805 

19(cid:15)000 

(cid:20)(cid:19)(cid:24)(cid:15)(cid:27)(cid:19)(cid:24) 

(cid:13) Bank loans are sub(cid:77)ect to a negative pledge and cross guarantee within the Just Group Ltd group.  Premier Investments
Limited is not a participant or guarantor of the Just Group Ltd financing facilities.

(cid:13)(cid:13) Premier Investments Limited obtained bank borrowings amounting to (cid:7)69 million. A (cid:7)19 million borrowing is secured by a 
mortgage over Land and Buildings(cid:15) representing the National Distribution Centre in Truganina(cid:15) Victoria. During the 2017 
financial year(cid:15) this borrowing was refinanced and is repayable in full at the end of 5 years(cid:15) being January 2022. During the 2017 
financial year(cid:15) Premier Investments Limited obtained a further (cid:7)50 million borrowing which is secured by a mortgage over Land 
and Buildings(cid:15) representing an office building in Melbourne(cid:15) Victoria. The borrowing is repayable in full at the end of 5 years(cid:15) 
being December 2021.

(a) Fair values

The carrying values of the Group(cid:182)s current and non(cid:16)current interest(cid:16)bearing liabilities approximate their fair
values.

(b) Defaults and breaches

During the current and prior years(cid:15) there were no defaults or breaches on any of the loans.

INTEREST-BEARING LIABILITIES ACCOUNTING POLICY

Interest(cid:16)bearing liabilities are initially recognised at the fair value of the consideration received net of issue
costs associated with the borrowing.

After initial recognition(cid:15) such items are subse(cid:84)uently measured at amortised cost using the effective interest
method.  Amortised cost is calculated by taking into account any issue costs(cid:15) and any discount or premium on
settlement.

Fees paid on the establishment of loan facilities are amortised over the life of the facility while on(cid:16)going
borrowing costs are expensed as incurred.

69   Premier Investments Limited

21  CONTRIBUTED EQUITY 

Ordinary share capital

608(cid:15)615

608(cid:15)615

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19)

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(a) MOVEMENTS IN SHARES ON ISSUE

Ordinary shares on issue 31 July 2016

Ordinary shares issued during the year (i)

(cid:50)rdinar(cid:92) (cid:86)(cid:75)are(cid:86) on i(cid:86)(cid:86)(cid:88)e a(cid:87) (cid:21)(cid:28) (cid:45)(cid:88)l(cid:92) (cid:21)(cid:19)(cid:20)(cid:26) 

Ordinary shares on issue 26 July 2015 

Ordinary shares issued during the year (i)

(cid:50)rdinar(cid:92) (cid:86)(cid:75)are(cid:86) on i(cid:86)(cid:86)(cid:88)e a(cid:87) (cid:22)(cid:19) (cid:45)(cid:88)l(cid:92) (cid:21)(cid:19)(cid:20)(cid:25) 

(cid:49)(cid:50).  (cid:11)(cid:181)(cid:19)(cid:19)(cid:19)(cid:12)

(cid:7)(cid:181)(cid:19)(cid:19)(cid:19) 

157(cid:15)164

584 

(cid:20)(cid:24)(cid:26)(cid:15)(cid:26)(cid:23)(cid:27) 

156(cid:15)380

784 

(cid:20)(cid:24)(cid:26)(cid:15)(cid:20)(cid:25)(cid:23) 

608(cid:15)615

(cid:16) 

(cid:25)(cid:19)(cid:27)(cid:15)(cid:25)(cid:20)(cid:24) 

608(cid:15)615

(cid:16) 

(cid:25)(cid:19)(cid:27)(cid:15)(cid:25)(cid:20)(cid:24) 

Fully paid ordinary shares carry one vote per share and carry the rights to dividends. 

(i)

A total of 584(cid:15)305 ordinary shares (2016(cid:29) 784(cid:15)386) were issued in relation to the performance rights plan.

(b) CAPITAL MANAGEMENT

The Group(cid:182)s ob(cid:77)ective is to ensure the entity continues as a going concern as well as to maintain optimal
returns to shareholders. The Group also aims to maintain a capital structure that ensures the lowest cost of
capital available to the entity.

The capital structure of the Group consists of debt which includes interest(cid:16)bearing borrowings(cid:15) cash and cash
e(cid:84)uivalents and e(cid:84)uity attributable to the e(cid:84)uity holders of Premier Investments Limited(cid:15) comprising of
contributed e(cid:84)uity(cid:15) reserves and retained earnings.

The Group operates primarily through its two business segments(cid:15) investments and retail.  The investments
segment is managed and operated through the parent company.  The retail segment operates through
subsidiaries established in their respective markets and maintains a central borrowing facility through a
subsidiary(cid:15) to meet the retail segment(cid:182)s funding re(cid:84)uirements and to enable the Group to find the optimal debt
and e(cid:84)uity balance.

The Group(cid:182)s capital structure is reviewed on a periodic basis in the context of prevailing market conditions(cid:15)
and appropriate steps are taken to ensure the Group(cid:182)s capital structure and capital management initiatives
remain in line with the Board(cid:182)s ob(cid:77)ectives.

The Group maintains that the dividend paid will represent at least 65(cid:8) of net profit after tax.

(c) EXTERNALLY IMPOSED CAPITAL REQUIREMENTS

Just Group Ltd(cid:15) a subsidiary of Premier Investments Limited(cid:15) is sub(cid:77)ect to a number of financial undertakings
as part of its financing facility agreement. These undertakings have been satisfied during the period.

The Group is not sub(cid:77)ect to any capital re(cid:84)uirements imposed by regulators or other prudential authorities.

Annual Report 2017   70

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

22  RESERVES 

RESERVES COMPRISE(cid:29) 

  Capital profits reserve 

  Foreign currency translation reserve (a) 

  Cash flow hedge reserve (b) 

  Performance rights reserve (c) 

  Fair value reserve (d) 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:53)(cid:40)S(cid:40)(cid:53)(cid:57)(cid:40)S 

(a) FOREIGN CURRENCY TRANSLATION RESERVE

Nature and purpose of reserve

Reserve is used to record exchange differences arising
from the translation of the financial statements of foreign
subsidiaries.
 Movements in the reserve

Opening balance

Foreign currency translation of overseas subsidiaries

Net movement in associate entity(cid:182)s reserves

CL(cid:50)S(cid:44)(cid:49)(cid:42) (cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 

(b) CASH FLOW HEDGE RESERVE

Nature and purpose of reserve

Reserve records the portion of the gain or loss on a
hedging instrument in a cash flow hedge that is determined
to be an effective hedge.

 Movements in the reserve

Opening balance

Net gain (loss) on cash flow hedges

Transferred to statement of financial position(cid:18)
profit or loss

Deferred income tax movement on cash flow hedges

CL(cid:50)S(cid:44)(cid:49)(cid:42) (cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 

(c) PERFORMANCE RIGHTS RESERVE

Nature and purpose of reserve

Reserve is used to record the cumulative amortised value
of performance rights issued to key senior employees net
of the value of performance shares ac(cid:84)uired under the
performance rights plan.
 Movements in the reserve

Opening balance

Performance rights expense for the year

CL(cid:50)S(cid:44)(cid:49)(cid:42) (cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 

71   Premier Investments Limited

464 

(3(cid:15)661) 

(15(cid:15)281) 

12(cid:15)556 

(24(cid:15)178) 

(cid:11)(cid:22)(cid:19)(cid:15)(cid:20)(cid:19)(cid:19)(cid:12) 

1(cid:15)047 

(4(cid:15)008) 

(700) 

(cid:11)(cid:22)(cid:15)(cid:25)(cid:25)(cid:20)(cid:12) 

(10(cid:15)291) 

7(cid:15)066 

(14(cid:15)195) 

2(cid:15)139 

(cid:11)(cid:20)(cid:24)(cid:15)(cid:21)(cid:27)(cid:20)(cid:12) 

464 

1(cid:15)047 

(10(cid:15)291) 

6(cid:15)346 

(cid:16) 

(cid:11)(cid:21)(cid:15)(cid:23)(cid:22)(cid:23)(cid:12) 

6(cid:15)480

(5(cid:15)363) 

(70)

(cid:20)(cid:15)(cid:19)(cid:23)(cid:26) 

21(cid:15)197 

(24(cid:15)076) 

(20(cid:15)907) 

13(cid:15)495 

(cid:11)(cid:20)(cid:19)(cid:15)(cid:21)(cid:28)(cid:20)(cid:12) 

6(cid:15)346 

6(cid:15)210 

(cid:20)(cid:21)(cid:15)(cid:24)(cid:24)(cid:25) 

4(cid:15)082

2(cid:15)264

(cid:25)(cid:15)(cid:22)(cid:23)(cid:25) 

(d) FAIR VALUE RESERVE

Nature and purpose of reserve

Reserve is used to record unrealised gains and losses on
fair value revaluation of available(cid:16)for(cid:16)sale financial assets.

 Movements in the reserve

Opening balance

Unrealised loss on revaluation of available(cid:16)for(cid:16)sale
financial assets

Net deferred income tax movement on available(cid:16)for(cid:16)
sale financial assets

CL(cid:50)S(cid:44)(cid:49)(cid:42) (cid:37)(cid:36)L(cid:36)(cid:49)C(cid:40) 

23  E(cid:59)PENDITURE COMMITMENTS 

OPERATING LEASE EXPENDITURE COMMITMENTS 

Payable within one year 

Payable within one to five years 

Payable in more than five years 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:50)(cid:51)(cid:40)(cid:53)(cid:36)(cid:55)(cid:44)(cid:49)(cid:42) L(cid:40)(cid:36)S(cid:40)S 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:16) 

(34(cid:15)700) 

10(cid:15)522 

(cid:11)(cid:21)(cid:23)(cid:15)(cid:20)(cid:26)(cid:27)(cid:12) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

100(cid:15)385

195(cid:15)426

59(cid:15)288 

(cid:22)(cid:24)(cid:24)(cid:15)(cid:19)(cid:28)(cid:28) 

106(cid:15)663

195(cid:15)649

49(cid:15)813 

(cid:22)(cid:24)(cid:21)(cid:15)(cid:20)(cid:21)(cid:24) 

The Group has entered into commercial operating leases on certain land and buildings(cid:15) motor vehicles and 
items of plant and e(cid:84)uipment. These leases have an average life of five years.  

LEASES ACCOUNTING POLICY 

Operating lease payments are recognised as an expense in profit or loss in the statement of comprehensive 
income on a straight(cid:16)line basis over the lease term. Operating lease incentives are recognised as a liability 
when received and subse(cid:84)uently reduced by allocating lease payments between rental expense and reduction 
of the liability. 

Annual Report 2017   72

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

24  OTHER FINANCIAL INSTRUMENTS 

CURRENT ASSETS 

Derivatives designated as hedging instruments

Forward currency contracts (cid:177) cash flow hedges 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:44)(cid:49)S(cid:55)(cid:53)(cid:56)M(cid:40)(cid:49)(cid:55)S 

CURRENT LIABILITIES 

Derivatives designated as hedging instruments 

Forward currency contracts (cid:177) cash flow hedges 

(cid:55)(cid:50)(cid:55)(cid:36)L C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:44)(cid:49)S(cid:55)(cid:53)(cid:56)M(cid:40)(cid:49)(cid:55)S 

NON –CURRENT LIABILITIES

Derivatives designated as hedging instruments 

Forward currency contracts (cid:177) cash flow hedges 

Interest rate swaps (cid:177) cash flow hedges 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:49)(cid:50)(cid:49)(cid:16)C(cid:56)(cid:53)(cid:53)(cid:40)(cid:49)(cid:55) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:44)(cid:49)S(cid:55)(cid:53)(cid:56)M(cid:40)(cid:49)(cid:55)S 

(a) DERIVATIVE INSTRUMENTS USED BY THE GROUP

(i) Forward currency contracts – cash flow hedges

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

181 

(cid:20)(cid:27)(cid:20) 

1(cid:15)636

(cid:20)(cid:15)(cid:25)(cid:22)(cid:25)

21(cid:15)651 

(cid:21)(cid:20)(cid:15)(cid:25)(cid:24)(cid:20) 

11(cid:15)711 

(cid:20)(cid:20)(cid:15)(cid:26)(cid:20)(cid:20) 

(cid:16)

460 

(cid:23)(cid:25)(cid:19) 

4(cid:15)479

(cid:16) 

(cid:23)(cid:15)(cid:23)(cid:26)(cid:28)

The ma(cid:77)ority of the Group(cid:182)s inventory purchases are denominated in US Dollars.  In order to protect
against exchange rates movements(cid:15) the Group has entered into forward exchange contracts to
predominantly purchase US Dollars.

The forward currency contracts are considered to be highly effective hedges as they are matched against
forecast inventory purchases and are timed to mature when payments are scheduled to be made. Any gain
or loss on the contracts attributable to the hedge risk are recognised in other comprehensive income and
accumulated in the hedge reserve in e(cid:84)uity.

The cash flows are expected to occur between one to twenty four months from 29 July 2017 and the
profit or loss within cost of sales will be affected over the next couple of years as the inventory is sold.

73   Premier Investments Limited

(ii) Interest rate swaps – cash flow hedges

The Group has entered into interest rate swap contracts exchanging floating rate interest amounts for
fixed rate interest amounts on certain of its interest(cid:16)bearing liabilities. These interest rate swap
contracts are designated as cash flow hedges in order to reduce the Group(cid:182)s cash flow exposure
resulting from variable interest rates on borrowings. The interest rate swaps and the interest rate
payments on the loans occur simultaneously. The amount accumulated in the hedge reserve in e(cid:84)uity
is reclassified to profit or loss over the period that the floating rate interest payments on debt affect
profit or loss.

At reporting date(cid:15) the details of outstanding forward currency contracts are(cid:29)

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19)

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:26) 

(cid:21)(cid:19)(cid:20)(cid:25)

   NOTIONAL AMOUNTS (cid:7)AUD 

AVERAGE E(cid:59)CHANGE RATE 

140(cid:15)230 

74(cid:15)833 

(cid:16)

111(cid:15)917 

98(cid:15)282 

115(cid:15)482

0.7217 

0.7510 

(cid:16)

0.7268 

0.7170 

0.7231

NOTIONAL AMOUNTS (cid:7)N(cid:61)D 

AVERAGE E(cid:59)CHANGE RATE 

29(cid:15)844 

12(cid:15)252 

(cid:16)

21(cid:15)399 

21(cid:15)060 

22(cid:15)623

0.6562 

0.7146 

(cid:16)

0.6502 

0.6502 

0.6586

NOTIONAL AMOUNTS (cid:133)GBP 

AVERAGE E(cid:59)CHANGE RATE 

4(cid:15)854 

(cid:16)

(cid:16)

5(cid:15)011 

4(cid:15)791

5(cid:15)339

1.2877 

(cid:16)

(cid:16)

1.4493 

1.3554

1.3299

NOTIONAL AMOUNTS (cid:7)N(cid:61)D 

AVERAGE E(cid:59)CHANGE RATE 

5(cid:15)911 

(cid:16)

(cid:16)

4(cid:15)400 

2(cid:15)635

(cid:16)

1.0440 

(cid:16)

(cid:16)

1.0897 

1.0937

(cid:16)

  NOTIONAL AMOUNTS (cid:7)SGD

AVERAGE E(cid:59)CHANGE RATE

4(cid:15)288 

(cid:16)

(cid:16)

3(cid:15)591 

2(cid:15)512

(cid:16)

0.7129 

(cid:16)

(cid:16)

0.7199 

0.7167

(cid:16)

Buy USD / Sell AUD 

Maturity (cid:31) 6 months 

Maturity 6 (cid:177) 12 months 

Maturity 12 (cid:177) 24 months 

Buy USD / Sell NZD 

Maturity (cid:31) 6 months 

Maturity 6 (cid:177) 12 months 

Maturity 12 (cid:177) 24 months 

Buy USD / Sell GBP

Maturity (cid:31) 6 months 

Maturity 6 (cid:177) 12 months 

Maturity 12 (cid:177) 24 months 

Buy AUD / Sell NZD

Maturity (cid:31) 6 months 

Maturity 6 (cid:177) 12 months 

Maturity 12 (cid:177) 24 months 

Buy USD / Sell SGD

Maturity (cid:31) 6 months 

Maturity 6 (cid:177) 12 months 

Maturity 12 (cid:177) 24 months 

Annual Report 2017   74

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

24  OTHER FINANCIAL INSTRUMENTS (CONTINUED) 

OTHER FINANCIAL INSTRUMENTS AND HEDGING ACCOUNTING POLICY 

The Group uses derivative financial instruments such as forward currency contracts and interest rate swaps 
to hedge its foreign currency risks and interest rate risks. These derivative financial instruments are initially 
recognised at fair value on the date on which the derivative contract is entered into and are subse(cid:84)uently 
remeasured at fair value.  

Derivatives are carried as financial assets when their fair value is positive and as financial liabilities when 
their fair value is negative. Any gains or losses arising from changes in the fair value of derivatives(cid:15) except 
for those that (cid:84)ualify as cash flow hedges and are considered to be effective(cid:15) are taken directly to profit or 
loss for the period.

Cash flow hedges 

Cash flow hedges are hedges of the Group(cid:182)s exposure to variability in cash flows that is attributable to highly 
probable future purchases as well as cash flows attributable to a particular risk associated with a recognised 
asset or liability that is a firm commitment and that could affect the statement of comprehensive income.  
The Group(cid:182)s cash flow hedges that meet the strict criteria for hedge accounting are accounted for by 
recognising the effective portion of the gain or loss on the hedging instrument through other comprehensive 
income and accumulated in the cash flow hedge reserve in e(cid:84)uity(cid:15) while the ineffective portion is recognised 
in profit or loss. Amounts taken to e(cid:84)uity are reclassified out of e(cid:84)uity and included in the measurement of 
the hedge transaction (finance costs or inventory purchases) when the forecast transaction occurs. 

The Group tests each of the designated cash flow hedges for effectiveness on an ongoing basis both 
retrospectively and prospectively using the ratio offset method. If the testing falls within the 80(cid:8) to 125(cid:8) 
range(cid:15) the hedge is considered to be highly effective and continues to be designated as a cash flow 
hedge. 

At each reporting date(cid:15) the Group measures ineffectiveness using the ratio offset method. For foreign 
currency cash flow hedges if the risk is over(cid:16)hedged(cid:15) the ineffective portion is taken immediately to other 
income(cid:18)expense in profit or loss in the statement of comprehensive income. If the forecast transaction is 
no longer expected to occur(cid:15) amounts recognised in e(cid:84)uity are reclassified to profit or loss in the 
statement of comprehensive income. 

If the hedging instrument expires or is sold(cid:15) terminated or exercised without replacement or rollover(cid:15) or if 
its designation as a hedge is revoked (due to being ineffective)(cid:15) amounts previously recognised in e(cid:84)uity 
remain in e(cid:84)uity until the forecast transaction occurs. 

25  FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES 

The Group(cid:182)s principal financial instruments comprise cash and cash e(cid:84)uivalents(cid:15) derivative financial 
instruments(cid:15) available(cid:16)for(cid:16)sale financial assets(cid:15) receivables(cid:15) payables(cid:15) bank overdrafts and interest(cid:16)bearing 
liabilities. 

75   Premier Investments Limited

RISK EXPOSURES AND RESPONSES 

The Group manages its exposure to key financial risks in accordance with Board(cid:16)approved policies which 
are reviewed annually and includes li(cid:84)uidity risk(cid:15) foreign currency risk(cid:15) interest rate risk and credit risk. The 
ob(cid:77)ective of the policy is to support the delivery of the Group(cid:182)s financial targets whilst protecting future 
financial security. 

The Group uses different methods to measure and manage different types of risks to which it is exposed. 
These include(cid:15) monitoring levels of exposure to interest rate and foreign exchange risk and assessment of 
market forecasts for interest rate and foreign exchange prices. Li(cid:84)uidity risk is monitored through 
development of future cash flow forecast pro(cid:77)ections.  

CREDIT RISK 

The overwhelming ma(cid:77)ority of the Group(cid:182)s sales are on cash terms with settlement within 24 hours.  As 
such(cid:15) the Group(cid:182)s exposure to credit risk is minimal. Receivable balances are monitored on an ongoing 
basis with the result that the Group(cid:182)s exposure to bad debts is not significant. 

There are no significant concentrations of credit risk within the Group and financial instruments are spread 
amongst a number of financial institutions. 

With respect to credit risk arising mainly from cash and cash e(cid:84)uivalents and certain derivative 
instruments(cid:15) the Group(cid:182)s exposure to credit risk arises from default of the counter party(cid:15) with a maximum 
exposure e(cid:84)ual to the carrying amount of these instruments. Since the Group trades only with recognised 
creditworthy third parties(cid:15) there is no re(cid:84)uirement for collateral by either party.  

Credit risk for the Group also arises from financial guarantees that members of the Group act as 
guarantor. At 29 July 2017(cid:15) the maximum exposure to credit risk of the Group is the amount guaranteed 
as disclosed in note 33.

INTEREST RATE RISK 

The Group(cid:182)s exposure to market interest rates relates primarily to its cash and cash e(cid:84)uivalents that it 
holds and interest(cid:16)bearing liabilities. 

At reporting date(cid:15) the Group had the following mix of financial assets and liabilities exposed to variable 
interest rate risk that are not designated in cash flow hedges(cid:29)

Financial Assets 

  Cash 

Financial Liabilities 

  Bank loans AUD 

(cid:49)(cid:40)(cid:55) (cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:11)L(cid:44)(cid:36)(cid:37)(cid:44)L(cid:44)(cid:55)(cid:44)(cid:40)S(cid:12) (cid:36)SS(cid:40)(cid:55)S 

(cid:49)(cid:50)(cid:55)(cid:40)S 

19

20 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19)

170(cid:15)631 

170(cid:15)631

173(cid:15)475 

173(cid:15)475

(cid:11)(cid:21)(cid:15)(cid:27)(cid:23)(cid:23)(cid:12) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

283(cid:15)233 

283(cid:15)233

105(cid:15)805 

105(cid:15)805

(cid:20)(cid:26)(cid:26)(cid:15)(cid:23)(cid:21)(cid:27) 

Annual Report 2017   76

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

25  FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED) 

INTEREST RATE RISK (CONTINUED) 

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate 
because of changes in market interest rates. The Group(cid:182)s ob(cid:77)ective of managing interest rate risk is to 
minimise the Group(cid:182)s exposure to fluctuations in interest rates that might impact its interest revenue(cid:15) 
interest expense and cash flow. The Group manages this by locking in a portion of its cash and cash 
e(cid:84)uivalents into term deposits. The maturity of term deposits is determined based on the Group(cid:182)s cash flow 
forecast.  

The Group manages its interest rate risk relating to interest(cid:16)bearing liabilities by having access to both 
fixed and variable rate debt which can be drawn down. During the year(cid:15) the Group also entered into 
interest rate swaps(cid:15) in which it agreed to exchange(cid:15) at specific intervals(cid:15) the difference between fixed and 
variable interest amounts(cid:15) calculated on an agreed(cid:16)upon notional principal amount. 

Interest rate sensitivity

i)
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the
portion of cash and cash e(cid:84)uivalents and interest(cid:16)bearing liabilities affected. A 100 (2016(cid:29)100) basis point
increase and decrease in Australian interest rates represents management(cid:10)s assessment of the reasonably
possible change in interest rates. The table indicates an increase or decrease in the Group(cid:182)s profit before
tax.

(cid:44)m(cid:83)a(cid:70)(cid:87)(cid:86) o(cid:73) rea(cid:86)ona(cid:69)l(cid:92) (cid:83)o(cid:86)(cid:86)i(cid:69)le movemen(cid:87)(cid:86)(cid:29) 

CONSOLIDATED 

(cid:14)1.0(cid:8) (100 basis points)

(cid:16)1.0(cid:8) (100 basis points)

(cid:51)(cid:50)S(cid:55)(cid:16)(cid:55)(cid:36)(cid:59) (cid:51)(cid:53)(cid:50)(cid:41)(cid:44)(cid:55) (cid:55)(cid:50) 

(cid:44)(cid:49)C(cid:53)(cid:40)(cid:36)S(cid:40) (cid:11)D(cid:40)C(cid:53)(cid:40)(cid:36)S(cid:40)(cid:12) (cid:37)(cid:60)(cid:29) 

 (cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:19)(cid:19)(cid:19) 

138

20 

 (cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:19)(cid:19)(cid:19) 

1(cid:15)242

(1(cid:15)242) 

Significant assumptions used in the interest rate sensitivity analysis include(cid:29) 







Reasonably possible movements in interest rates were determined based on the Group(cid:182)s
current credit rating and mix of debt in Australian and foreign countries(cid:15) relationships with
financial institutions(cid:15) the level of debt that is expected to be renewed as well as a review of
the last two years(cid:182) historical movements and economic forecasters(cid:182) expectations.

The net exposure at reporting date is representative of what the Group was and is expecting
to be exposed to in the next twelve months.

The sensitivity analysis assumes all other variables are held constant(cid:15) and the change in
interest rates take place at the beginning of the financial year and are held constant
throughout the reporting period.

77   Premier Investments Limited

FOREIGN OPERATIONS 

The Group has operations in Australia(cid:15) New (cid:61)ealand(cid:15) Singapore(cid:15) Hong Kong(cid:15) Malaysia(cid:15) The Republic of 
Ireland and the United Kingdom. As a result(cid:15) movements in the Australian Dollar and the currencies 
applicable to these foreign operations affect the Group(cid:182)s statement of financial position and results from 
operations. From time to time the Group obtains New (cid:61)ealand Dollar denominated financing facilities from 
a financial institution to provide a natural hedge of the Group(cid:182)s exposure to movements in the Australian 
Dollar and New (cid:61)ealand Dollar (AUD(cid:18)N(cid:61)D) on translation of the New (cid:61)ealand statement of financial 
position. In addition(cid:15) the Group(cid:15) on occasion(cid:15) hedges its cash flow exposure to movements in the 
AUD(cid:18)N(cid:61)D. The Group also on occasion(cid:15) hedges its cash flow exposure in movements in the AUD(cid:18)SGD 
and AUD(cid:18)GBP. 

FOREIGN CURRENCY TRANSACTIONS 

The Group has exposures to foreign currencies principally arising from purchases by operating entities in 
currencies other than their functional currency. Approximately 70(cid:8) of the Group(cid:182)s purchases are 
denominated in United States Dollar (USD)(cid:15) which is not the functional currency of any Australian entities 
or any of the foreign operating entities.

The Group considers its exposure to USD arising from the purchases of inventory to be a long(cid:16)term and 
ongoing exposure. In order to protect against exchange rate movements(cid:15) the Group enters into forward 
exchange contracts to purchase US Dollars. These forward exchange contracts are designated as cash 
flow hedges that are sub(cid:77)ect to movements through e(cid:84)uity and profit or loss respectively as foreign 
exchange rates move.

The Group(cid:182)s foreign currency risk management policy provides guidelines for the term over which foreign 
currency hedging will be undertaken for part or all of the risk. This term cannot exceed two years. Factors 
taken into account include(cid:29) 

-

-

-

-

the implied market volatility for the currency exposure being hedged and the cost of hedging(cid:15) relative
to long(cid:16)term indicators(cid:30)

the level of the base currency against the currency risk being hedged(cid:15) relative to long(cid:16)term indicators(cid:30)

the Group(cid:182)s strategic decision(cid:16)making horizon(cid:30) and

other factors considered relevant by the Board

The policy re(cid:84)uires periodic reporting to the Audit and Risk Committee(cid:15) and its application is sub(cid:77)ect to 
oversight from the Chairman of the Audit and Risk Committee or the Chairman of the Board. The policy 
allows the use of forward exchange contracts and foreign currency options.  

Annual Report 2017   78

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

25  FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED) 

FOREIGN CURRENCY TRANSACTIONS (CONTINUED) 

At reporting date(cid:15) the Group had the following exposures to movements in the United States Dollar (USD)(cid:15) 
New (cid:61)ealand Dollar (N(cid:61)D)(cid:15) Singapore Dollar (SGD)(cid:15) Pound Sterling (GBP)(cid:15) Hong Kong Dollar (HKD)(cid:15) 
Malaysian Ringgit (MYR)(cid:15) and Euro (EUR)(cid:29) 

(cid:21)(cid:19)(cid:20)(cid:26) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D

FINANCIAL ASSETS 

Cash and cash e(cid:84)uivalents 

Derivative financial assets 

FINANCIAL LIABILITIES 

(cid:56)SD 

(cid:49)(cid:61)D 

S(cid:42)D 

(cid:42)(cid:37)(cid:51) 

(cid:43)(cid:46)D 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

M(cid:60)(cid:53) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:40)(cid:56)(cid:53) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

98 

181 

279 

2(cid:15)477 

1(cid:15)330 

6(cid:15)194 

171 

5(cid:15)001 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

2(cid:15)477 

1(cid:15)330 

6(cid:15)194 

171 

5(cid:15)001 

Trade and other payables 

17(cid:15)697 

2(cid:15)531 

Derivative financial liabilities 

21(cid:15)651 

(cid:16) 

39(cid:15)348 

2(cid:15)531 

317 

(cid:16) 

317 

722 

(cid:16) 

722 

NET EXPOSURE 

(cid:11)(cid:22)(cid:28)(cid:15)(cid:19)(cid:25)(cid:28)(cid:12) 

(cid:11)(cid:24)(cid:23)(cid:12)

(cid:20)(cid:15)(cid:19)(cid:20)(cid:22)

(cid:24)(cid:15)(cid:23)(cid:26)(cid:21) 

96 

(cid:16) 

96 

(cid:26)(cid:24) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:24)(cid:15)(cid:19)(cid:19)(cid:20) 

(cid:21)(cid:21)(cid:26) 

227 

(cid:16) 

227 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:21)(cid:19)(cid:20)(cid:25) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D

FINANCIAL ASSETS 

(cid:56)SD 

(cid:49)(cid:61)D 

S(cid:42)D 

(cid:42)(cid:37)(cid:51) 

(cid:43)(cid:46)D 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

M(cid:60)(cid:53) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:40)(cid:56)(cid:53) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

Cash and cash e(cid:84)uivalents 

205 

3(cid:15)024 

1(cid:15)486 

2(cid:15)517 

Derivative financial assets 

1(cid:15)636 

(cid:16) 

(cid:16) 

(cid:16) 

1(cid:15)841 

3(cid:15)024 

1(cid:15)486 

2(cid:15)517 

FINANCIAL LIABILITIES 

Trade and other payables 

18(cid:15)597 

2(cid:15)512 

Derivative financial liabilities 

16(cid:15)190 

(cid:16) 

34(cid:15)787 

2(cid:15)512 

289 

(cid:16) 

289 

176 

(cid:16) 

176 

772

(cid:16)

772

51

(cid:16)

51

1(cid:15)101

(cid:16)

1(cid:15)101

(cid:16)

(cid:16)

(cid:16)

NET EXPOSURE

(cid:11)(cid:22)(cid:21)(cid:15)(cid:28)(cid:23)(cid:25)(cid:12) 

(cid:24)(cid:20)(cid:21) 

(cid:20)(cid:15)(cid:20)(cid:28)(cid:26) 

(cid:21)(cid:15)(cid:22)(cid:23)(cid:20) 

(cid:26)(cid:21)(cid:20) 

(cid:20)(cid:15)(cid:20)(cid:19)(cid:20) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

79   Premier Investments Limited

FOREIGN CURRENCY RISK 

The following sensitivity is based on the foreign exchange risk exposures in existence at the reporting date(cid:29) 

(cid:51)(cid:50)S(cid:55)(cid:16)(cid:55)(cid:36)(cid:59) (cid:51)(cid:53)(cid:50)(cid:41)(cid:44)(cid:55) 

(cid:43)(cid:44)(cid:42)(cid:43)(cid:40)(cid:53)(cid:18)(cid:11)L(cid:50)(cid:58)(cid:40)(cid:53)(cid:12) 

(cid:50)(cid:55)(cid:43)(cid:40)(cid:53) C(cid:50)M(cid:51)(cid:53)(cid:40)(cid:43)(cid:40)(cid:49)S(cid:44)(cid:57)(cid:40) (cid:44)(cid:49)C(cid:50)M(cid:40) 

(cid:43)(cid:44)(cid:42)(cid:43)(cid:40)(cid:53)(cid:18)(cid:11)L(cid:50)(cid:58)(cid:40)(cid:53)(cid:12) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:44)m(cid:83)a(cid:70)(cid:87)(cid:86) o(cid:73) rea(cid:86)ona(cid:69)l(cid:92) 

(cid:83)o(cid:86)(cid:86)i(cid:69)le movemen(cid:87)(cid:86)(cid:29) 

CONSOLIDATED 

AUD(cid:18)USD (cid:14) 2.5(cid:8) 

AUD(cid:18)USD (cid:177) 10.0(cid:8) 

AUD(cid:18)N(cid:61)D (cid:14) 2.5(cid:8) 

AUD(cid:18)N(cid:61)D (cid:177) 10.0(cid:8) 

AUD(cid:18)SGD (cid:14) 2.5(cid:8) 

AUD(cid:18)SGD (cid:177)10.0(cid:8) 

AUD(cid:18)GBP (cid:14) 2.5(cid:8) 

AUD(cid:18)GBP (cid:177)10.0(cid:8) 

AUD(cid:18)HKD (cid:14) 2.5(cid:8) 

AUD(cid:18)HKD (cid:177)10.0(cid:8) 

AUD(cid:18)MYR (cid:14) 2.5(cid:8) 

AUD(cid:18)MYR (cid:177)10.0(cid:8) 

AUD(cid:18)EUR (cid:14) 2.5(cid:8) 

AUD(cid:18)EUR (cid:177)10.0(cid:8) 

 (cid:21)(cid:19)(cid:20)(cid:26)
(cid:7)(cid:19)(cid:19)(cid:19) 

4 

189 

1 

(6) 

(25) 

113 

(133) 

608 

(2) 

8 

(122) 

556 

(6) 

25 

 (cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:19)(cid:19)(cid:19) 

(58) 

326 

(12) 

57 

(29) 

133 

(57) 

260 

(18) 

80 

(27) 

122 

(cid:16) 

(cid:16) 

 (cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:19)(cid:19)(cid:19) 

646 

17(cid:15)665 

 (cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:19)(cid:19)(cid:19) 

(5(cid:15)248) 

29(cid:15)991 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

Significant assumptions used in the foreign currency exposure sensitivity analysis include(cid:29) 









Reasonably possible movements in foreign exchange rates were determined based on a review of
the last two years historical movements and economic forecasters(cid:182) expectations.

The net exposure at reporting date is representative of what the Group was and is expecting to be
exposed to in the next twelve months from reporting date.

The effect on other comprehensive income is the effect on the cash flow hedge reserve.

The sensitivity does not include financial instruments that are non(cid:16)monetary items as these are not
considered to give rise to currency risk.

Annual Report 2017   80

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

25  FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED) 

LIQUIDITY RISK 

Li(cid:84)uidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial 
liabilities and other cash flow commitments. Li(cid:84)uidity risk management is ensuring that there are sufficient 
funds available to meet financial commitments in a timely manner and planning for unforeseen events 
which may curtail cash flows and cause pressure on li(cid:84)uidity. The Group keeps its short(cid:15) medium and long 
term funding re(cid:84)uirements under constant review. Its policy is to have sufficient committed funds available 
to meet medium term re(cid:84)uirements(cid:15) with flexibility and headroom to make ac(cid:84)uisitions for cash in the 
event an opportunity should arise. 

The Group has(cid:15) at reporting date(cid:15) (cid:7)34 million (2016(cid:29) (cid:7)30 million) cash held in deposit with 11am at call and 
the remaining (cid:7)137 million (2016(cid:29) (cid:7)254 million) cash held in deposit with maturity terms ranging from 30 to 
120 days (2016(cid:29) 30 to 180 days). Hence management believe there is no significant exposure to li(cid:84)uidity 
risk at 29 July 2017 and 30 July 2016. 

The Group aims to maintain a balance between continuity of funding and flexibility through the use of bank 
overdrafts and bank loans with a variety of counterparties.   

At reporting date(cid:15) the remaining undiscounted contractual maturities of the Group(cid:182)s financial 
liabilities are(cid:29) 

(cid:21)(cid:19)(cid:20)(cid:26) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

FINANCIAL LIABILITIES 

Trade and other payables 

Bank loans  

Forward currency contracts 

(cid:21)(cid:19)(cid:20)(cid:25) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

FINANCIAL LIABILITIES 

Trade and other payables 

Bank loans  

Forward currency contracts 

 M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:31) (cid:25) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:25) (cid:177) (cid:20)(cid:21) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:20)(cid:21) (cid:177) (cid:21)(cid:23) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:33) (cid:21)(cid:23) M(cid:50)(cid:49)(cid:55)(cid:43)S 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

71(cid:15)528

(cid:16) 

166(cid:15)543 

238(cid:15)071 

(cid:16) 

(cid:16) 

83(cid:15)616 

83(cid:15)616 

(cid:16) 

(cid:16) 

104(cid:15)475 

69(cid:15)000 

(cid:16) 

(cid:16) 

104(cid:15)475 

69(cid:15)000 

 M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:31) (cid:25) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:25) (cid:177) (cid:20)(cid:21) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:20)(cid:21) (cid:177) (cid:21)(cid:23) M(cid:50)(cid:49)(cid:55)(cid:43)S 

M(cid:36)(cid:55)(cid:56)(cid:53)(cid:44)(cid:55)(cid:60) 
(cid:33) (cid:21)(cid:23) M(cid:50)(cid:49)(cid:55)(cid:43)S 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

72(cid:15)965

(cid:16) 

143(cid:15)932 

216(cid:15)897 

(cid:16) 

(cid:16) 

125(cid:15)465 

125(cid:15)465 

(cid:16) 

86(cid:15)805 

140(cid:15)425 

227(cid:15)230 

(cid:16) 

19(cid:15)000 

(cid:16) 

19(cid:15)000 

81   Premier Investments Limited

  FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES 

The Group measures financial instruments(cid:15) such as derivatives and available(cid:16)for(cid:16)sale financial assets(cid:15) at 
fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to 
transfer a liability in an orderly transaction between market participants at the measurement date. The fair 
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability 
takes place in either the principal market for the asset or liability or(cid:15) in the absence of a principal market(cid:15) the 
most advantageous market for the asset or liability(cid:15) which is accessible to the Group.

In determining the fair value of an asset or liability(cid:15) the Group uses market observable data(cid:15) to the extent 
possible. The fair value of financial assets and financial liabilities is based on market prices (where a market 
exists) or using other widely accepted methods of valuation.  

Fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are 
categorised within the following fair value hierarchy(cid:15) based on the lowest level input that is significant to the 
fair value measurement as a whole(cid:29) 

Level 1 (cid:177) the fair value is calculated using (cid:84)uoted price in active markets for identical assets or liabilities. 

Level 2 (cid:177) the fair value is estimated using inputs other than (cid:84)uoted prices included in Level 1 that are 
observable for the asset or liability(cid:15) either directly (as prices) or indirectly (derived from prices). 

Level 3 (cid:177) the fair value is estimated using inputs for the asset or liability that are not based on observable 
market data. 

The following table provides the fair value measurement hierarchy of the Group(cid:182)s financial assets and 
liabilities(cid:29) 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:60)(cid:40)(cid:36)(cid:53) (cid:40)(cid:49)D(cid:40)D (cid:21)(cid:28) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:26) 

(cid:41)(cid:44)(cid:49)(cid:36)(cid:49)C(cid:44)(cid:36)L (cid:60)(cid:40)(cid:36)(cid:53) (cid:40)(cid:49)D(cid:40)D (cid:22)(cid:19) (cid:45)(cid:56)L(cid:60) (cid:21)(cid:19)(cid:20)(cid:25) 

L(cid:40)(cid:57)(cid:40)L (cid:20) 

L(cid:40)(cid:57)(cid:40)L (cid:21) 

L(cid:40)(cid:57)(cid:40)L (cid:22) 

L(cid:40)(cid:57)(cid:40)L (cid:20) 

L(cid:40)(cid:57)(cid:40)L (cid:21) 

L(cid:40)(cid:57)(cid:40)L (cid:22) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

67(cid:15)665 

(cid:16)

67(cid:15)665 

(cid:16) 

181

181 

(cid:16)

(cid:16) 

21(cid:15)651

21(cid:15)651 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16)

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

1(cid:15)636 

1(cid:15)636 

16(cid:15)190 

16(cid:15)190 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

FINANCIAL ASSETS 

Available(cid:16)for(cid:16)sale financial assets 

(listed investments) 

Foreign Exchange Contracts 

FINANCIAL LIABILITIES 

Foreign Exchange Contracts 

There have been no transfers between Level 1(cid:15) Level 2 and Level 3 during the financial year. 

Annual Report 2017   82

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

CAPITAL STRUCTURE AND RISK MANAGEMENT 

25  FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED) 

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONTINUED) 

At 29 July 2017 and 30 July 2016 the fair values of cash and cash e(cid:84)uivalents(cid:15) short(cid:16)term receivables and 
payables approximate their carrying values. The carrying value of interest bearing liabilities is considered to 
approximate the fair value(cid:15) being the amount at which the liability could be settled in a current transaction 
between willing parties. 

Foreign exchange contracts and interest rate swaps are initially recognised in the statement of financial 
position at fair value on the date which the contract is entered into(cid:15) and subse(cid:84)uently remeasured to fair 
value. Accordingly(cid:15) the carrying amounts of forward exchange contracts and interest rate swaps 
approximate their fair values at the reporting date.

Foreign exchange contracts are measured based on observable spot exchange rates(cid:15) the yield curves of 
the respective currencies as well as the currency basis spread between the respective currencies. 

Interest rate swaps are measured based on forward interest rates from observable yield curves at the end 
of the respective reporting period(cid:15) and contract interest rates(cid:15) which have been discounted at a rate that 
incorporates the credit risk of the counterparties. 

83   Premier Investments Limited

GROUP STRUCTURE

26  SUBSIDIARIES 

The consolidated financial statements include the financial statements of Premier Investments Limited (ultimate 
parent entity) and the subsidiaries listed in the following table(cid:29) 

Kimtara Investments Pty Ltd 
Premfin Pty Ltd 
Springdeep Investments Pty Ltd 
Prempref Pty Ltd 
Metalgrove Pty Ltd 
Just Group Limited 
Just Jeans Group Pty Limited  
Just Jeans Pty Limited 
Jay Jays Trademark Pty Limited  
Just(cid:16)Shop Pty Limited 
Peter Alexander Sleepwear Pty Limited  
Old Blues Pty Limited 
Kimbyr Investments Limited
Jac(cid:84)ui E Pty Limited  
Jac(cid:84)ueline(cid:16)Eve Fashions Pty Limited  
Jac(cid:84)ueline(cid:16)Eve (Hobart) Pty Limited  
Jac(cid:84)ueline(cid:16)Eve (Retail) Pty Limited  
Jac(cid:84)ueline(cid:16)Eve (Leases) Pty Limited  
Sydleigh Pty Limited  
Old Favourites Blues Pty Limited  
Urban Brands Retail Pty Ltd 
Portmans Pty Limited 
Dotti Pty Ltd  
Smiggle Pty Limited 
Just Group International Pty Limited (cid:13) 
Smiggle Group Holdings Pty Limited (cid:13) 
Smiggle International Pty Limited (cid:13) 
Smiggle Singapore Pte Ltd 
Just Group International HK Limited(cid:13) 
Smiggle HK Limited 
Just Group USA Inc.(cid:13) 
Peter Alexander USA Inc.(cid:13) 
Smiggle USA Inc.(cid:13) 
Just UK International Limited(cid:13)
Smiggle UK Limited 
Peter Alexander UK Limited(cid:13) 
Smiggle Ireland Limited
ETI Holdings Limited(cid:13) 
RSCA Pty Limited(cid:13) 
RSCB Pty Limited(cid:13) 
Just Group Singapore Private Ltd  
Peter Alexander Singapore Private Ltd (cid:13) 
Smiggle Stores Malaysia SDN BHD  
Smiggle Japan KK (cid:13) 

(cid:13) Not trading as at the date of this report.

C(cid:50)(cid:56)(cid:49)(cid:55)(cid:53)(cid:60) (cid:50)(cid:41) 
(cid:44)(cid:49)C(cid:50)(cid:53)(cid:51)(cid:50)(cid:53)(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) 
Australia 
Australia 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:44)(cid:49)(cid:55)(cid:40)(cid:53)(cid:40)S(cid:55) (cid:43)(cid:40)LD 
100(cid:8) 
100(cid:8) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:44)(cid:49)(cid:55)(cid:40)(cid:53)(cid:40)S(cid:55) (cid:43)(cid:40)LD 
100(cid:8) 
100(cid:8) 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 

New (cid:61)ealand
Australia 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 

Australia 
Australia 
Australia 
Australia 
Australia 
Singapore 
Hong Kong 
Hong Kong 
USA 
USA 
USA 
UK 
UK 
UK 
Ireland 
New (cid:61)ealand
Australia 
Australia 
Singapore 
Singapore 
Malaysia 
Japan 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8)
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8)
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8)
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 

100(cid:8) 
100(cid:8) 
100(cid:8) 
(cid:16) 
(cid:16) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
(cid:16) 
100(cid:8)
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 
100(cid:8) 

Annual Report 2017   84

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

GROUP STRUCTURE

27  PARENT ENTITY INFORMATION 

The accounting policies of Premier Investments Limited(cid:15) being the parent entity(cid:15) which have been applied in 
determining the financial information shown below(cid:15) are the same as those applied in the consolidated 
financial statements.  

(a) Summary financial information

Statement of financial position

Current assets

(cid:55)o(cid:87)al a(cid:86)(cid:86)e(cid:87)(cid:86) 

Current liabilities 

(cid:55)o(cid:87)al lia(cid:69)ili(cid:87)ie(cid:86) 

Shareholders’ equity

Issued capital

Reserves(cid:29) 

(cid:16) Foreign currency translation reserve

(cid:16) Performance rights reserve

(cid:16) Cash flow hedge reserve

Retained earnings

Net profit for the period 

Total comprehensive income (loss) for the period(cid:15) net of tax 

(b) Guarantees entered into by the parent entity

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

175(cid:15)062

(cid:20)(cid:15)(cid:22)(cid:25)(cid:26)(cid:15)(cid:24)(cid:22)(cid:21) 

13(cid:15)016 

(cid:27)(cid:19)(cid:15)(cid:28)(cid:23)(cid:27) 

294(cid:15)124

(cid:20)(cid:15)(cid:22)(cid:25)(cid:28)(cid:15)(cid:19)(cid:22)(cid:19) 

28(cid:15)201 

(cid:28)(cid:24)(cid:15)(cid:20)(cid:19)(cid:25) 

608(cid:15)615

608(cid:15)615

2(cid:15)281 

12(cid:15)556 

(88) 

663(cid:15)220

87(cid:15)590 

(789)

2(cid:15)982

6(cid:15)346 

(cid:16) 

655(cid:15)982

75(cid:15)636 

(70)

The parent entity has provided no financial guarantees in respect of bank overdrafts and loans of subsidiaries
(2016(cid:29) (cid:7)nil).

The parent entity has also given no unsecured guarantees in respect of finance leases of subsidiaries
or bank overdrafts of subsidiaries (2016(cid:29) (cid:7)nil).

(c) Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 29 July 2017 (2016(cid:29) (cid:7)nil).

(d) Contractual commitments for the acquisition of property, plant or equipment

The parent entity did not have any contractual commitments to purchase property(cid:15) plant and e(cid:84)uipment
as at 29 July 2017 or 30 July 2016.

85   Premier Investments Limited

GROUP STRUCTURE

28  DEED OF CROSS GUARANTEE 

Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785(cid:15) dated 17 December 
2016(cid:15) relief has been granted to certain wholly(cid:16)owned subsidiaries in the Australian Group from the 
Corporations law re(cid:84)uirements for preparation(cid:15) audit and lodgement of financial reports. 

As a condition of this instrument(cid:15) Just Group Limited(cid:15) a subsidiary of Premier Investments Limited(cid:15) and 
each of the controlled entities of Just Group Limited entered into a Deed of Cross Guarantee as at  
25 June 2009. Premier Investments Limited is not a party to the Deed of Cross Guarantee.  

29  RELATED PARTY TRANSACTIONS 

(a) PARENT ENTITY AND SUBSIDIARIES

The ultimate parent entity is Premier Investments Limited. Details of subsidiaries are provided in note 26.

(b) KEY MANAGEMENT PERSONNEL

COMPENSATION FOR KEY MANAGEMENT PERSONNEL 

Short(cid:16)term employee benefits 

Post(cid:16)employment benefits 

Other post(cid:16)employment benefits 

Share(cid:16)based payments

(cid:55)(cid:50)(cid:55)(cid:36)L 

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7) 

8(cid:15)502(cid:15)662 

8(cid:15)065(cid:15)012 

171(cid:15)482

(cid:16)

4(cid:15)970(cid:15)577 

(cid:20)(cid:22)(cid:15)(cid:25)(cid:23)(cid:23)(cid:15)(cid:26)(cid:21)(cid:20) 

180(cid:15)390

100(cid:15)000

1(cid:15)650(cid:15)120

(cid:28)(cid:15)(cid:28)(cid:28)(cid:24)(cid:15)(cid:24)(cid:21)(cid:21)

Information regarding individual key management personnel compensation(cid:15) shareholdings of key 
management personnel(cid:15) as well as other transactions and balances with key management personnel and 
their related parties(cid:15) as re(cid:84)uired by Regulation 2M.3.03 of the Corporations Regulations 2001 is provided in 
the Remuneration Report section of the Directors(cid:182) Report.  

Annual Report 2017   86

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

OTHER DISCLOSURES 

30  AUDITOR(cid:182)S REMUNERATION 

The auditor of Premier Investments Limited is Ernst & 
Young.  Amounts received(cid:15) or due and receivable(cid:15) by 
Ernst & Young (Australia) for(cid:29) 

(cid:16) An audit or review of the financial report of the entity and

any other entity in the consolidated group.

Other services in relation to the entity and any other 
entity in the consolidated group: 

(cid:16) Other non(cid:16)audit services

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:36)(cid:56)D(cid:44)(cid:55)(cid:50)(cid:53)(cid:182)S (cid:53)(cid:40)M(cid:56)(cid:49)(cid:40)(cid:53)(cid:36)(cid:55)(cid:44)(cid:50)(cid:49) 

31  SHARE(cid:16)BASED PAYMENT PLANS 

(a) RECOGNISED SHARE-BASED PAYMENT EXPENSE

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:40)(cid:59)(cid:51)(cid:40)(cid:49)S(cid:40) (cid:36)(cid:53)(cid:44)S(cid:44)(cid:49)(cid:42) (cid:41)(cid:53)(cid:50)M (cid:40)(cid:52)(cid:56)(cid:44)(cid:55)(cid:60)(cid:16)S(cid:40)(cid:55)(cid:55)L(cid:40)D 
S(cid:43)(cid:36)(cid:53)(cid:40)(cid:16)(cid:37)(cid:36)S(cid:40)D (cid:51)(cid:36)(cid:60)M(cid:40)(cid:49)(cid:55) (cid:55)(cid:53)(cid:36)(cid:49)S(cid:36)C(cid:55)(cid:44)(cid:50)(cid:49)S 

(b) TYPE OF SHARE-BASED PAYMENT PLANS

Performance rights

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7) 

529(cid:15)065

501(cid:15)138

143(cid:15)028

(cid:25)(cid:26)(cid:21)(cid:15)(cid:19)(cid:28)(cid:22)

76(cid:15)125 

(cid:24)(cid:26)(cid:26)(cid:15)(cid:21)(cid:25)(cid:22)

C(cid:50)(cid:49)S(cid:50)L(cid:44)D(cid:36)(cid:55)(cid:40)D 

(cid:21)(cid:19)(cid:20)(cid:26) 
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:25)(cid:15)(cid:21)(cid:20)(cid:19) 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:7)(cid:182)(cid:19)(cid:19)(cid:19) 

(cid:21)(cid:15)(cid:21)(cid:25)(cid:23) 

The Company grants performance rights to executives(cid:15) thus ensuring that the executives who are most directly
able to influence the Group(cid:182)s performance are appropriately aligned with the interests of shareholders.

A performance right is a right to ac(cid:84)uire one fully paid ordinary share of the Company after meeting a three or
four year performance period(cid:15) provided specific performance hurdles are met. The number of performance
rights to vest is determined by a vesting schedule based on the performance of the Company. These
performance hurdles have been discussed in the Remuneration Report section of the Directors(cid:182) Report.

The fair value of the performance rights has been calculated as at the respective grant dates using an
appropriate valuation techni(cid:84)ue. The valuation model applied(cid:15) being either the Black Sholes European option
pricing model (for performance rights granted prior to the end of the 2015 financial year) or the Monte(cid:16)Carlo
simulation pricing model (for performance rights granted in the 2016 financial year and onwards) is dependent
on the assumptions underlying the performance rights granted to ensure these are appropriately factored into
the determination of fair value.

In determining the share(cid:16)based payments expense for the period(cid:15) the number of instruments expected to vest
has been ad(cid:77)usted to reflect the number of executives expected to remain with the Group until the end of the
performance period(cid:15) as well as the probability of not meeting the Total Shareholder Return ((cid:179)TSR(cid:180)) performance
hurdles.

87   Premier Investments Limited

The following table shows the share(cid:16)based payment arrangements in existence during the current and prior
reporting periods(cid:15) as well as the factors considered in determining the fair values of the performance rights in
existence(cid:29)

(cid:42)(cid:53)(cid:36)(cid:49)(cid:55) D(cid:36)(cid:55)(cid:40) 
(cid:11)DD(cid:18)MM(cid:18)(cid:60)(cid:60)(cid:60)(cid:60)(cid:12) 

(cid:49)(cid:56)M(cid:37)(cid:40)(cid:53) (cid:50)(cid:41) 
(cid:53)(cid:44)(cid:42)(cid:43)(cid:55)S (cid:42)(cid:53)(cid:36)(cid:49)(cid:55)(cid:40)D 

S(cid:43)(cid:36)(cid:53)(cid:40) (cid:44)SS(cid:56)(cid:40) 
(cid:51)(cid:53)(cid:44)C(cid:40) 

(cid:50)(cid:51)(cid:55)(cid:44)(cid:50)(cid:49) L(cid:44)(cid:41)(cid:40)

D(cid:44)(cid:57)(cid:44)D(cid:40)(cid:49)D 
(cid:60)(cid:44)(cid:40)LD 

(cid:57)(cid:50)L(cid:36)(cid:55)(cid:44)L(cid:44)(cid:55)(cid:60) 

(cid:53)(cid:44)S(cid:46)(cid:16)(cid:41)(cid:53)(cid:40)(cid:40) 
(cid:53)(cid:36)(cid:55)(cid:40) 

(cid:41)(cid:36)(cid:44)(cid:53) (cid:57)(cid:36)L(cid:56)(cid:40) 

10(cid:18)05(cid:18)2011 

12(cid:18)04(cid:18)2013 

18(cid:18)04(cid:18)2013 

11(cid:18)12(cid:18)2013 

22(cid:18)06(cid:18)2015 

22(cid:18)06(cid:18)2015 

24(cid:18)02(cid:18)2016 

26(cid:18)04(cid:18)2016 

10(cid:18)04(cid:18)2017 

1(cid:15)200(cid:15)000 

304(cid:15)386 

240(cid:15)000 

319(cid:15)493 

169(cid:15)365 

12(cid:15)266 

123(cid:15)647 

(cid:7)6.00 

(cid:7)5.77 

(cid:7)8.40 

(cid:7)8.56 

4(cid:16)5 years

3.5 years

4.2 years

3.8 years

(cid:7)10.34 

2.3 years

(cid:7)8.56 

2.3 years

(cid:7)12.89 

2.6 years

1(cid:15)000(cid:15)000 

(cid:7)9.88 

3(cid:16)6 years

120(cid:15)124 

(cid:7)15.70 

2.5 years

5(cid:8) 

5(cid:8) 

5(cid:8) 

5(cid:8) 

5(cid:8) 

5(cid:8) 

5(cid:8) 

5.5(cid:8) 

5(cid:8) 

40(cid:8) 

40(cid:8) 

40(cid:8) 

40(cid:8) 

40(cid:8) 

40(cid:8) 

40(cid:8) 

30(cid:8) 

30(cid:8) 

5.10(cid:8) 

2.81(cid:8) 

2.71(cid:8) 

2.98(cid:8) 

1.95(cid:8) 

1.95(cid:8) 

1.75(cid:8) 

2.06(cid:8) 

1.79(cid:8) 

(cid:7)3.00 

(cid:7)2.88 

(cid:7)4.20 

(cid:7)4.28 

(cid:7)10.34 

(cid:7)8.56 

(cid:7)12.89 

(cid:7)9.96 

(cid:7)6.89 

(c) SUMMARY OF RIGHTS GRANTED UNDER PERFORMANCE RIGHTS PLANS

The following table illustrates the number (No.) and weighted average exercise prices ((cid:179)WAEP(cid:180)) of(cid:15) and
movements in(cid:15) performance rights issued during the year(cid:29)

Balance at beginning of the year 

Granted during the year

Forfeited during the year 

Exercised during the year (i) 

Expired during the year 

(cid:37)alan(cid:70)e a(cid:87) (cid:87)(cid:75)e end o(cid:73) (cid:87)(cid:75)e (cid:92)ear 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:49)o. 

1(cid:15)627(cid:15)218 

120(cid:15)124 

(cid:16) 

(584(cid:15)305) 

(13(cid:15)200) 

(cid:20)(cid:15)(cid:20)(cid:23)(cid:28)(cid:15)(cid:27)(cid:22)(cid:26) 

(cid:21)(cid:19)(cid:20)(cid:26)
(cid:58)(cid:36)(cid:40)(cid:51) 

(cid:21)(cid:19)(cid:20)(cid:25) 
(cid:49)o. 

(cid:21)(cid:19)(cid:20)(cid:25)
(cid:58)(cid:36)(cid:40)(cid:51) 

(cid:16)

(cid:16)

(cid:16) 

(cid:16)

(cid:16)

(cid:16)

1(cid:15)365(cid:15)510

1(cid:15)123(cid:15)647

(77(cid:15)553)

(784(cid:15)386)

(cid:16)

(cid:20)(cid:15)(cid:25)(cid:21)(cid:26)(cid:15)(cid:21)(cid:20)(cid:27)

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(cid:16) 

(i) The weighted average share price at the date of exercise of rights exercised during the year was (cid:7)14.12

(2016(cid:29) (cid:7)15.01).

Since the end of the financial year and up to the date of this report(cid:15) no performance rights have been exercised(cid:15) 
no performance rights have been issued(cid:15) no performance rights have been forfeited and no performance rights 
have expired. 

(d) WEIGHTED AVERAGE FAIR VALUE

The weighted average fair value of performance rights granted during the year was (cid:7)6.89 (2016(cid:29) (cid:7)10.28).

Annual Report 2017   88

Notes to the Financial Statements

FOR THE 52 WEEKS ENDED 29 JULY 2017 AND THE 53 WEEKS ENDED 30 JULY 2016 (CONTINUED)

OTHER DISCLOSURES 

31  SHARE(cid:16)BASED PAYMENT PLANS (CONTINUED) 

SHARE-BASED PAYMENT ACCOUNTING POLICIES  

The Group provides benefits to its employees in the form of share(cid:16)based payments(cid:15) whereby employees render 
services in exchange for rights over shares (e(cid:84)uity(cid:16)settled transactions). The plan in place to provide these 
benefits is a long(cid:16)term incentive plan known as the performance rights plan ((cid:179)PRP(cid:180)).

The cost of these e(cid:84)uity(cid:16)settled transactions with employees is measured by reference to the fair value of the 
e(cid:84)uity instrument at the date at which they are granted.  

The cost of e(cid:84)uity(cid:16)settled transactions is recognised in profit or loss(cid:15) together with a corresponding increase in 
e(cid:84)uity(cid:15) over the period in which the performance and(cid:18)or service conditions are fulfilled (the vesting period)(cid:15) ending 
on the date on which the relevant employees become fully entitled to the award (the vesting date). 

At each subse(cid:84)uent reporting date until vesting(cid:15) the cumulative charge to profit or loss in the statement of 
comprehensive income is the product of(cid:29) 

(i)

The grant date fair value of the award(cid:30)

(ii)

The extent to which the vesting period has expired(cid:30) and

(iii) The current best estimate of the number of awards that will vest as at the grant date.

The charge to profit or loss for the period is the cumulative amount as calculated above less the amounts already 
charged in previous periods. There is a corresponding entry to e(cid:84)uity. 

No expense is recognised for awards that do not ultimately vest(cid:15) except for e(cid:84)uity(cid:16)settled transactions for which 
vesting is conditional upon a market or non(cid:16)vesting condition. These are treated as vested(cid:15) irrespective of 
whether or not the market or non(cid:16)vesting condition is satisfied(cid:15) provided that all other performance and service 
conditions are met. 

KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS 

The fair value of share(cid:16)based payment transactions is determined at the grant date using an appropriate 
valuation model(cid:15) which takes into account the terms and conditions upon which the instruments were granted 
to key executives. The terms and conditions re(cid:84)uire estimates to be made of the number of e(cid:84)uity instruments 
expected to vest(cid:15) as well as the probabilities of meeting the relevant TSR performance hurdles. These 
accounting estimates and assumptions would have no impact on the carrying amounts of assets or liabilities 
within the next annual reporting period(cid:15) but may impact the share(cid:16)based payment expense and performance 
rights reserve within e(cid:84)uity. 

32  EVENTS AFTER THE REPORTING DATE 

On 24 September 2017(cid:15) the Directors of Premier Investments Limited declared a final dividend in respect of the 
2017 financial year. The total amount of the dividend is (cid:7)42(cid:15)592(cid:15)000 (2016(cid:29) (cid:7)39(cid:15)358(cid:15)000) which represents a 
fully franked dividend of 27 cents per share (2016(cid:29) 25 cents per share). 

33  CONTINGENT LIABILITIES

The Group has bank guarantees totalling (cid:7)6(cid:15)497(cid:15)749 (2016(cid:29) (cid:7)5(cid:15)206(cid:15)702). 

89   Premier Investments Limited

Directors’ Declaration

DIRECTORS’ DECLARATION 

In accordance with a resolution of the Directors of Premier Investments Limited, I state that: 

In the opinion of the Directors: 

(a)

the financial statements and notes of Premier Investments Limited for the financial year ended
29 July 2017 are in accordance with the Corporations Act 2001, including:

(i)

(ii)

complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and

giving a true and fair view of the consolidated entity’s financial position as at 29 July 2017
and of its performance for the financial year ended on that date, and

there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.

in the opinion of the directors, as at the date of this declaration, there are reasonable grounds to
believe that the members of the Closed Group will be able to meet any obligations or liabilities to
which they are or may become subject, by virtue of the Deed of Cross Guarantee.

(b)

(c)

Note 2(b) confirms that the financial statements also comply with International Financial Reporting Standards 
as issued by the International Accounting Standards Board. 

The Directors have been given the declaration by the Chief Financial Officer required by section 295A of the 
Corporations Act 2001 for the financial year ended 29 July 2017. 

On behalf of the Board 

Solomon Lew 
Chairman 

3 October 2017 

Annual Report 2017   90

90

Independent Auditor’s Report

Ernst & Young
8 Exhibition Street
Melbourne  VIC  3000  Australia
GPO Box 67 Melbourne  VIC  3001

Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au

Independent Auditor's Report to the Members of Premier
Investments Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Premier Investments Limited (the Company) and its
subsidiaries (collectively the Group), which comprises the consolidated statement of financial
position as at 29 July 2017, the consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended,
notes to the financial statements, including a summary of significant accounting policies, and the
directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:

a)

giving a true and fair view of the consolidated financial position of the Group as at 29 July
2017 and of its consolidated financial performance for the year ended on that date; and

b)

complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not
provide a separate opinion on these matters. For each matter below, our description of how our
audit addressed the matter is provided in that context.

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91   Premier Investments Limited

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.

Carrying value of intangible assets

Why significant

As at 29 July 2017 the Group held $853.3
million (or 49% of total assets) in goodwill and
indefinite-life brand names recognised from
historical business combinations.

As explained in Note 16 to the financial report,
the goodwill and brand names are tested by the
Group for impairment annually.

The recoverable amount has been determined
based on a value in use model referencing
discounted cash flows of the retail segment for
goodwill, and the casual wear, women’s wear and
non-apparel cash generating units (CGUs) for
brand names. The model contains estimates and
significant judgments regarding future cash flow
projections which are critical to the assessment
of impairment, particularly planned sales growth
in the casual wear and women’s wear CGUs and
discount rates applied.

In obtaining sufficient audit evidence on the carrying
value of goodwill and brand names, involving our
valuation specialists, we:

(cid:377) Assessed the application of valuation

methodologies applied.

(cid:377) Assessed the key inputs and assumptions within
the board approved forecast cashflows, discount
rates, relief from royalty rates and sales growth
rates adopted in the value in use model.

(cid:377) Considered the historical reliability of the Group’s

cashflow forecasting process.

(cid:377) Evaluated the determination of CGUs in
accordance with Australian Accounting
Standards.

(cid:377) Compared the data used in the value in use model
to the actual current year and forecast financial
performance of the underlying CGUs.

(cid:377) Performed sensitivity analysis on key inputs and
assumptions included in the board approved
forecast cashflows and impairment models
including the discount rates

(cid:377) Compared earnings multiples derived from the
Group’s value in use model to those observable
from external market data of comparable listed
entities.

(cid:377) Benchmarked key assumptions used by the Group

to the independent views of EY.

(cid:377) Assessed the adequacy of the disclosures

included in the financial report.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Annual Report 2017   92

Independent Auditor’s Report continued

Existence and valuation of inventories

Why significant

As at 29 July 2017 the Group held $140.8
million in inventories recognised on the
consolidated statement of financial position.

As detailed in Note 10 to the financial report,
inventories are valued at the lower of cost and
net realisable value.

The cost of finished goods includes a proportion
of the purchasing department, as well as freight,
handling, and warehouse costs incurred to
deliver the goods to the point of sale.

The valuation of inventories is a key audit matter
as it includes the estimation of inventory
provisions, which requires a level of judgment
with regard to changing consumer demands and
fashion trends. Such judgments include the
Group’s expectations for future sales and
inventory mark downs.

The existence of inventories is considered a key
audit matter as stock is held at several
distribution centres, as well as at over 1,100
retail stores.

In obtaining sufficient audit evidence on the
existence and valuation of inventories, we:

(cid:377) Assessed the application of valuation

methodologies applied, including recalculating a
sample of standard costs.

(cid:377) Assessed and tested the design and operating
effectiveness of relevant controls over the
determination of standard costs.

(cid:377) Attended store and distribution centre inventory
counts on a sample basis and assessed the stock
counting process which checked inventory
quantity, condition and inventory quality.

(cid:377) Assessed the basis for inventory provisions,
including the rationale for recording specific
provisions. In doing so we examined the aging
profile of inventory, enquired with the Group the
process for identifying specific slow-moving
inventories, assessed future selling prices and
historical loss rates.

(cid:377) Tested the slow-moving inventory reports for

accuracy and completeness.

(cid:377) Considered the completeness of inventory

provisions by identifying mark down sales at or
subsequent to year end, and comparing sale
prices against the value of inventories at balance
date.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

93   Premier Investments Limited

Accounting for the Group’s interest in Breville Group

Why significant

At 29 July 2017 the Group held a 27.5% stake in
the ASX-listed entity Breville Group (“Breville”).

As detailed in Note 18 to the financial report,
this investment was equity-accounted for under
Australian Accounting Standard - AASB 128
Investments in associates and joint ventures. At
balance date the Group held an equity accounted
investment of $216.9 million on the consolidated
statement of financial position and an equity
accounted profit of $14.8 million contributed to
the overall profit after tax of the Group.

The Group’s accounting for the investment in
Breville is considered significant to our audit due
to the quantum of the contribution to the
Group’s result.

In order to gain comfort over the recoverability and
valuation  of the Group’s investment in Breville and
the equity accounted profit after tax we:

(cid:377) Enquired with Breville’s auditors to discuss the
audit procedures they completed including
significant areas of audit focus, and subsequent
events.

(cid:377) Examined the audit work papers of Breville’s

auditors for the 30 June 2017 audit prepared in
forming their audit opinion over the Breville
financial report.

(cid:377) Assessed the audited financial statements of

Breville.

(cid:377) Recalculated the equity-investment accounting,

including the Group’s share of profit and dividends
for the year.

(cid:377) Agreed Premier’s shareholding to supporting

documentation, and monitored ASX
announcements for any changes in ownership
interest.

Information Other than the Financial Report and Auditor’s Report

The directors are responsible for the other information. The other information comprises the
information included in the Group’s 2017 Annual Report, but does not include the financial report
and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial report or our knowledge obtained in the audit or otherwise appears to be materially
misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Annual Report 2017   94

Independent Auditor’s Report continued

In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:













Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

95   Premier Investments Limited

matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.

From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Audit of the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in the directors' report for the year ended 29
July 2017.

In our opinion, the Remuneration Report of Premier Investments Limited for the year ended 29 July
2017, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.

Ernst & Young

Rob Perry
Partner
Melbourne
3 October 2017

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Annual Report 2017   96

ASX Additional Shareholder Information

AS AT 25 SEPTEMBER 2017

TWENTY LARGEST SHAREHOLDERS 

(cid:49)(cid:36)M(cid:40) 

(cid:55)(cid:50)(cid:55)(cid:36)L 

(cid:8) (cid:44)C 

(cid:53)(cid:36)(cid:49)(cid:46) 

CENTURY PLA(cid:61)A INVESTMENTS PTY LTD 

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

J P MORGAN NOMINEES AUSTRALIA LIMITED

CITICORP NOMINEES PTY LIMITED 

METREPARK PTY LTD 

SL SUPERANNUATION NO 1 PTY LTD (cid:31)SL SUPER FUND NO 1 A(cid:18)C(cid:33) 

NATIONAL NOMINEES LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED (cid:31)NT(cid:16)COMNWLTH SUPER 
CORP A(cid:18)C(cid:33) 

BNP PARIBAS NOMS PTY LTD (cid:31)DRP(cid:33) 

LINFO(cid:59) SHARE INVESTMENT PTY LTD

BNP PARIBAS NOMINEES PTY LTD (cid:31)AGENCY LENDING DRP A(cid:18)C(cid:33) 

UBS NOMINEES PTY LTD 

ARGO INVESTMENTS LIMITED 

RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LTD 
(cid:31)VFA A(cid:18)C(cid:33) 

SANDHURST TRUSTEES LTD (cid:31)HARPER BERNAYS LTD A(cid:18)C(cid:33) 

CITICORP NOMINEES PTY LIMITED (cid:31)COLONIAL FIRST STATE INV A(cid:18)C(cid:33) 

MILTON CORPORATION LIMITED 

MR CON (cid:61)EMPILAS 

DAVID ALAN BULL 

GRAHGER RETAIL SECURITIES PTY LTD 

51(cid:15)569(cid:15)400 

23(cid:15)125(cid:15)979 

20(cid:15)617(cid:15)050 

9(cid:15)629(cid:15)946 

8(cid:15)235(cid:15)331 

4(cid:15)437(cid:15)699 

4(cid:15)422(cid:15)494 

2(cid:15)996(cid:15)743 

2(cid:15)834(cid:15)901 

2(cid:15)577(cid:15)014 

1(cid:15)964(cid:15)607 

1(cid:15)911(cid:15)259 

1(cid:15)250(cid:15)000 

1(cid:15)016(cid:15)655 

735(cid:15)920 

721(cid:15)840 

590(cid:15)321 

470(cid:15)000 

356(cid:15)894 

300(cid:15)000 

32.69(cid:8) 

14.66(cid:8) 

13.07(cid:8) 

6.10(cid:8) 

5.22(cid:8) 

2.81(cid:8) 

2.80(cid:8) 

1.90(cid:8) 

1.80(cid:8) 

1.63(cid:8) 

1.25(cid:8) 

1.21(cid:8) 

0.79(cid:8) 

0.64(cid:8) 

0.47(cid:8) 

0.46(cid:8) 

0.37(cid:8) 

0.30(cid:8) 

0.23(cid:8) 

0.19(cid:8) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:41)(cid:50)(cid:53) (cid:55)(cid:50)(cid:51) (cid:21)(cid:19)(cid:29) 

(cid:20)(cid:22)(cid:28)(cid:15)(cid:26)(cid:25)(cid:23)(cid:15)(cid:19)(cid:24)(cid:22) 

(cid:27)(cid:27).(cid:24)(cid:28)(cid:8) 

SUBSTANTIAL SHAREHOLDERS  

(cid:49)(cid:36)M(cid:40) 

CENTURY PLA(cid:61)A INVESTMENTS PTY LTD AND ASSOCIATES

PERPETUAL LIMITED AND ITS SUBSIDIARIES

AIRLIE FUNDS MANAGEMENT PTY LTD 

AUSTRALIANSUPER PTY LTD 

DISTRIBUTION OF EQUITY SHAREHOLDERS 

(cid:55)(cid:50)(cid:55)(cid:36)L (cid:56)(cid:49)(cid:44)(cid:55)S 

(cid:8) (cid:44)C

58(cid:15)552(cid:15)420 

22(cid:15)027(cid:15)776 

11(cid:15)076(cid:15)792 

7(cid:15)890(cid:15)706 

42.43(cid:8)

14.02(cid:8)

7.03(cid:8)

5.01(cid:8)

Holders 

(cid:20) 
(cid:55)(cid:50) 
(cid:20)(cid:15)(cid:19)(cid:19)(cid:19) 

5(cid:15)655

(cid:20)(cid:15)(cid:19)(cid:19)(cid:20)
(cid:55)(cid:50)
(cid:24)(cid:15)(cid:19)(cid:19)(cid:19)

2(cid:15)810

(cid:24)(cid:15)(cid:19)(cid:19)(cid:20)
(cid:55)(cid:50)
(cid:20)(cid:19)(cid:15)(cid:19)(cid:19)(cid:19)

372

(cid:20)(cid:19)(cid:15)(cid:19)(cid:19)(cid:20)
(cid:55)(cid:50)
(cid:20)(cid:19)(cid:19)(cid:15)(cid:19)(cid:19)(cid:19)

202

(cid:20)(cid:19)(cid:19)(cid:15)(cid:19)(cid:19)(cid:20) 
(cid:55)(cid:50) 
(cid:11)M(cid:36)(cid:59)(cid:12) 

31 

(cid:55)(cid:50)(cid:55)(cid:36)L 

9(cid:15)070 

Ordinary Fully Paid Shares 

2(cid:15)232(cid:15)288 

6(cid:15)442(cid:15)586

2(cid:15)727(cid:15)511

4(cid:15)558(cid:15)175

141(cid:15)788(cid:15)206 

157(cid:15)748(cid:15)766 

The number of investors holding less than a marketable parcel of 38 securities ((cid:7)13.40 on 25 September 2017) 
is 244 and they hold 2(cid:15)680 securities. 

VOTING RIGHTS 
All ordinary shares carry one vote per share without restriction. 

97   Premier Investments Limited

Corporate Directory

A.C.N. 006 727 966

DIRECTORS 
Mr. Solomon Lew (Chairman) 
Dr. David M. Crean (Deputy Chairman)
Mr. Timothy Antonie (Lead Independent Director)
Mr. Lindsay E. Fox 
Ms. Sally Herman 
Mr. Henry D. Lanzer 
Mr. Terrence L. McCartney  
Mr. Mark McInnes 
Mr. Michael R.I. McLeod 
Dr. Gary H. Weiss 

COMPANY SECRETARY 
Mr. Kim Davis 

REGISTERED OFFICE 
Level 53 
101 Collins Street 
Melbourne Victoria 3000 
Telephone (03) 9650 6500 
Facsimile (03) 9654 6665 

WEBSITE 

www.premierinvestments.com.au 

EMAIL  

info@premierinvestments.com.au 

AUDITOR 
Ernst & Young 
8 Exhibition Street 
Melbourne Victoria 3000 

SHARE REGISTER AND SHAREHOLDER 
ENQUIRIES 
Computershare Investor Services Pty 
Limited 
Yarra Falls 
452 Johnston Street 
Abbotsford Victoria 3067 
Telephone (03) 9415 5000 

LAWYERS 
Arnold Bloch Leibler
Level 21 
333 Collins Street 
Melbourne Victoria 3000 
Telephone (03) 9229 9999 

About this report

This report has been printed on Sovereign Silk and Sun Art Matt 
and are both elemental chlorine free.

Sovereign Silk is FSC certiﬁed derived from well-managed forests 
and controlled sources. Both stocks are manufactured by an ISO 
14001 certiﬁed mill.

The printer is also ISO 9001 and ISO 14001 accredited.

These certiﬁcations specify the requirements for a quality and 
environmental management system.

Designed and produced by walterwakeﬁeld.com.au

Annual Report 2017   98

Solomon Lew

Chairman

Mark McInnes 

CEO Premier Retail

Annual Report 2017

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