Annual Report 2022
2
Chairman’s Report
Solomon Lew
Chairman
Richard Murray
Premier Retail CEO
On behalf of the Premier Investments
Limited (“Premier”) Board of Directors,
I am pleased to present the
2022 Annual Report for the financial
year ended 30 July 2022 (“FY22”).
Against the background of the significant operational issues
associated with the continuing challenges presented by
COVID-19, including Government mandated lockdowns and
global supply chain complexities, Premier has again delivered
an impressive full year result for our shareholders.
The result also reflects a seamless transition of leadership to
Richard Murray, Premier Retail CEO, the unrelenting focus on
execution by our management team and the commitment of
our people.
Your Board has been fully focused on maintaining a strong
and sustainable business. The meticulous execution of our
strategies, and our ability to pivot when the environment
changes, are the key attributes that sets Premier apart from
its competitors. Notwithstanding the challenges presented in
FY22, Premier delivered a statutory Net Profit After Tax
(“NPAT”) of $285.2 million for FY22, up 4.9% on FY211.
(Noting that FY21 was a 53 week year). NPAT is up 167% on
the ‘pre-COVID’ FY19 result.
1 The 2021 financial year represented a 53 week period, ended 31 July 2021. The 2022 financial year represented a 52
week period, ended 30 July 2022. Except for statutory NPAT, results are stated on a comparable 52 week period.
Annual Report 2022
1
Chairman’s Report continued
PREMIER RETAIL – OUTSANDING PERFORMANCE
SMIGGLE – REBOUNDING AS SCHOOLS REOPEN
Premier Retail, our wholly owned retail segment contributed
record Earnings before Interest and Tax (“EBIT”) of $335.0
million, up 10.1% on FY212 and up 100.2% on ‘pre-COVID’
FY19.
Premier Retail comprises of our seven iconic brands – Peter
Alexander, Smiggle, Just Jeans, Jay Jays, Portmans, Dotti and
Jacqui E. Our omni-channel customer experience allows for a
seamless shopping experience in whichever way our
customers choose to engage with us. Be it through our over
1,100 bricks and mortar stores across six countries, our
fifteen websites across four countries or through our
wholesale partnership arrangements with international ‘best
in class’ retailers. Our global operations leverage synergies
from the various centralised support functions.
The business reported record global sales for the year of
$1.497 billion, up 5.2% on FY21. The strong sales and gross
margin performance was achieved despite temporary store
closures due to government mandated lockdowns which
resulted in the loss of almost 43,000 trading days during the
first half.
The Group’s five apparel brands contributed sales for the year
of $807.9 million, an increase of 12.7% on ‘pre-COVID’ FY19.
Pleasingly, our apparel brands experienced solid momentum
in the second half and a disciplined focus on inventory
management has resulted in a clean inventory position for all
brands to commence the new financial year.
PETER ALEXANDER – POWERFUL DESIGNER
BRAND DELIVERING RECORD SALES
Peter Alexander is a unique design-led brand that continues
to excite our customers and deliver year on year record results
for our shareholders.
The brand has cemented its position as one of the leading
lifestyle and gifting brands in Australia and New Zealand,
delivering full year sales of $428.5 million, up 11.4% on FY21
and up 73% on FY19.
The record sales result was driven by exceptional performance
across all product categories and channels with increased full
priced sales and less promotional activity.
To showcase the brand’s wide product offering and truly
unique shopping experience, new and larger format stores
have been identified as a runway for future growth.
Smiggle is the ultimate children’s destination for school
essentials and as schools have reopened, Smiggle sales have
rebounded. The brand delivered global sales of $261.2 million
in FY22, up 24.6% on FY21 with 2H22 sales up 61.7% on
2H21.
Smiggle’s performance has been very strong in Australia and
New Zealand, with sales growth across both markets and all
states for 2H22 and FY22. In our overseas markets, the
resumption of schools and tourism has had a positive impact
on our European and Asian sales.
During FY22, Smiggle continued to have successful
collaborations with major international studios, including
Disney, BBC and Universal, as well as its first sporting
collaboration with the Australian Football League (AFL).
Smiggle has opened the new year strongly in all markets and
channels, particularly in the all-important ‘back to school’
markets across the northern hemisphere.
STRONG OMNI-CHANNEL OFFERING
Each Premier Retail brand seeks to delight customers in
whichever way they choose to shop, and to support this we
have continued to invest in people, technology and marketing
to improve our world class platforms and customer
experiences.
The business delivered record online sales of $340.1 million in
FY22, representing 22.7% of total Group sales for the year,
and up 14.3% on the previous record result in FY21. Sales in
the online channel are delivered at a significantly higher EBIT
margin than the retail store channel. Our online sales are up
fivefold in five years (up 400% on FY17 $68 million).
Significantly for each of the seven brands, the most viewed
window and the largest store is the brand’s online channel.
Our customers also value the Group’s more than 1,100 bricks
and mortar stores in six countries.
As we’ve noted previously, Premier Retail does not seek to
close stores but maintains an unrelenting focus on store
profitability, with over 75% of its global store network either
in holdover or with leases expiring in less than 12 months.
Our landlords recognise the long-term strength of Premier
and its seven iconic brands. With their support, opportunities
exist to refresh, upgrade and or expand stores across all of
Premier’s brands over the next three to five years as we
simultaneously continue to invest in our online potential.
2 Premier Retail EBIT of $335.0 million excludes significant items. Refer to page 9 of the Directors Report for a
reconciliation of Premier Retail EBIT and statutory reported profit before tax for the Retail Segment.
2
LEVERAGING SYNERGIES
ACKNOWLEDGMENTS
As I have said before, Premier’s year after year outstanding
results do not happen by accident. In particular, the past
three years have at times required swift and decisive action
by our experienced Board and leadership team, in an effort
to protect and build on the success of our business for our
people, our shareholders, and the many stakeholders reliant
on a robust Premier business. I am thankful to have the
counsel and insight of such an experienced and cohesive
group of fellow Directors.
Of course, our outstanding results would not be possible
without our dedicated, global over 9,000 strong team. Our
exceptional and dedicated team delivers day after day for our
customers, our communities, and our shareholders. On
behalf of all shareholders, I would like to say thank you to our
remarkable and resilient team.
It has been a little over 12 months since Richard Murray
joined the Group as Premier Retail CEO. At the time of
Richard’s appointment, I noted that this was the beginning of
a new chapter for Premier. I am extremely pleased with our
exceptional performance under Richard’s leadership, whilst
continuing to carefully manage through the many challenges
that this year has presented. As we continue to navigate our
way through the changing environment, I am cautiously
optimistic that Premier can remain well placed to grow a
sustainable, long-term business that continues to deliver
strong returns for our shareholders.
I encourage all of our shareholders to participate in the
company’s Annual General Meeting on 2 December 2022 for
a further review on the Group’s performance and strategies
for the future.
Solomon Lew
Chairman and
Non-Executive Director
Premier Retail’s ability to leverage synergies from centralised
sourcing and supply chain functions and a centralised support
centre, sets us apart from many of our competitors.
Responsible management of our end-to-end sourcing
decisions remains a priority including partnering with
ELEVATE, an independent global audit and compliance
provider. During the year the Group updated its Modern
Slavery statement and published its Living Wage statement.
In August 2022, Peter Alexander, Jay Jays, Portmans, Dotti
and Jacqui E joined Just Jeans in becoming members of
‘Better Cotton’.
Premier Retail operates centralised distribution centres in four
countries, fully owning its Australian centre. These
distribution centres have enabled the business to be agile and
scale up operations in response to customer shopping
behaviours across channels. Over the past 12 months,
additional distribution centre space has been leased in both
Melbourne and Auckland to support ongoing growth and
further drive efficiencies.
BALANCE SHEET, DIVIDENDS AND CAPITAL
MANAGEMENT
Premier maintains a strong balance sheet with cash on hand
of $471.3 million at the end of FY22 and property related
debt of $69.0 million, having repaid all operating debt during
the year.
At the end of FY22, Premier’s investment in Breville Group
Limited had a market value of $760.3 million while its
19.88% investment in Myer Holdings Limited was worth
$75.9 million.
The Board notes that the environment, whilst challenging for
many businesses, may present new opportunities for the
Group given the strength of its balance sheet.
In balancing these considerations, the Board has
•
•
•
approved a final fully franked ordinary dividend of 54
cents per share;
approved a special fully franked dividend of 25 cents per
share; and
announced a 12-month on-market share buyback of up
to $50 million.
The full year ordinary and special dividends for FY22 total 125
cents per share, up 45 cents per share, or 56% on FY21. For
FY22, shareholders will therefore be rewarded approximately
$199 million in fully franked dividends. The on-market share
buyback recognises the significant market volatility at
present. The share buyback will allow Premier to acquire
shares opportunistically and flexibly, which in turn deliver
earnings per share accretion and increase total shareholder
returns.
Annual Report 2022
3
The Directors
Solomon Lew
Chairman and
Non-Executive Director
David M. Crean
Deputy Chairman
and Non-Executive Director
Richard Murray
Premier Retail CEO &
Executive Director
Sylvia Falzon
Non-Executive Director
Sally Herman
Non-Executive Director
Henry D. Lanzer AM
Non-Executive Director
Terrence McCartney
Non-Executive Director
Timothy Antonie
Non-Executive Director
Michael R.I. McLeod
Non-Executive Director
4
Brand Performance Premier Retail
Peter Alexander, is a powerful designer brand and delivered
another record sales result for the year of $428.5 million, up 11.4%
on FY21 and up 72.9% on FY19. Peter Alexander’s unique design
led product continues to excite customers. The brand has cemented
its position as one of the leading lifestyle and gifting brands in
Australia and New Zealand, driving increased full priced sales with
less promotional activity. Under the leadership of Judy Coomber,
Managing Director Peter Alexander, and Peter Alexander, Creative
Director, the growth is set to continue. Peter Alexander is extremely
well placed as the leading gift destination for the upcoming
Christmas trading period.
Smiggle, is a powerful global brand and delivered global sales of
$261.2 million in FY22, up 24.6% on FY21 with 2H22 sales up
61.7% on 2H21. The key to Smiggle’s success is children attending
school. As schools have reopened, Smiggle sales are rebounding
across all markets and channels. Smiggle continued to have
successful collaborations during FY22 with Disney studios, BBC
studios, Universal studios and its first successful sporting
collaboration with the Australian Football League (AFL). Further
exciting collaborations will be launching in 1H23 and beyond. Under
the leadership of John Cheston, Smiggle will maximise EBIT growth
as sales continue to rebound in all markets and across all channels.
Apparel Brands
Our Apparel Brands (consisting of Just Jeans,
Jay Jays, Portmans, Dotti and Jacqui E)
delivered sales of $807.9 million in FY22,
up 12.7% on FY19. These results were
delivered despite the significant impact of
COVID-19 government mandated lockdowns
in Australia and New Zealand in 1H22. Brand
performance across the Apparel Group was
solid, and particularly gained momentum
in 2H22. Teresa Rendo was appointed
Managing Director Apparel Brands in
March 2022. Teresa was previously at
Woolworths Group, with her most recent
role Chief Commercial Officer at Big W,
where she led the Merchandise Team.
Jay Jays, under Linda Whitehead’s
leadership, in FY22 delivered its 2nd best
sales result in the past decade, a strong
result for the brand in a period still
significantly impacted by COVID-19. With
improving sales momentum through 2H22,
Jay Jays has a strong, distinctive and
competitive market position and is well
positioned for future growth.
Jacqui E, under the leadership of Nicole
Naccarella, delivered strong results in FY22,
with improving sales momentum through
2H22, up 5.3% on 2H21. Jacqui E has an
extremely strong and distinctive market
position and is well positioned for future
growth, particularly looking to increasing
numbers of workers returning to CBD areas
after their temporary exodus during the
COVID-19 health crisis.
Just Jeans, under Matthew McCormack’s
leadership, has delivered sales growth of
38.0% over a four year period – a
particularly pleasing result for the Group’s
iconic original brand in a period still
significantly impacted by COVID-19. With
improving sales momentum through 2H22,
Just Jeans has a strong, distinctive and
competitive market position and is well
positioned for future growth.
Portmans, under the leadership of Jade
Wyatt, delivered a stand-out performance
with record sales of $156.7 million in FY22,
up 11.7% on FY21, underpinned by strong
LFL growth both in stores and online.
Portmans has an extremely strong and
distinctive market position and is well
positioned for future growth, particularly
looking to increasing numbers of workers
returning to CBD areas after their temporary
exodus during the COVID-19 health crisis.
Dotti, under Deanna Moylan’s leadership,
delivered strong results in FY22, with
improving sales momentum through 2H22,
up 5.2% on 2H21. Dotti continues to
deliver improvement in profit margins being
delivered through changes to sourcing
strategy. Dotti has a strong, distinctive and
competitive market position and is well
positioned for future growth.
Annual Report 2022
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Peter Alexander
Powerful designer brand delivering record results
Record FY22 sales of $428.5 million, up 11.4% on FY21,
underpinned by strong growth both in stores and online
•
Peter Alexander customers enjoy a truly unique
shopping experience:
Peter Alexander delivered three year sales growth of
72.9% from pre-COVID FY19 to FY22, more than
doubling sales in the last five years
Peter Alexander’s unique design led product continues
to excite customers. The brand has cemented its position
as one of the leading lifestyle and gifting brands in
Australia and New Zealand driving increased full priced
sales with less promotional activity
Peter Alexander’s record sales result was driven by
exceptional performance across all product categories,
in particular:
- Continued strength of ongoing core programs
delivering a stable solid year-round base business
- PA Plus category continues to grow from strength to
strength, delivering three year sales growth of over
135% from FY19 to FY22
- Childrenswear category also continued to deliver
exceptional sales growth, up over 75% from
FY19 to FY22
•
•
•
- Products that excite
- World class instore theatre and store window displays
- Seamless online experience
- Service teams who love and are immersed in the brand
Focus on larger format store expansion opportunities
have been identified as a runway for further growth to
better showcase the wider product offering that has
been developed in recent years
Four new stores have already been confirmed to open
in 1H23, as part of the next wave of store openings post
COVID-19
The creative involvement of Peter Alexander as Founder
& Creative Director in collaboration with a strong team,
under the leadership of Judy Coomber, has allowed the
brand to maintain the design led, look and feel of the
much-loved heritage of the Peter Alexander brand
Peter Alexander Sales $’M
500
400
300
200
190.9
288.2
247.8
218.7
428.5
384.6
100
0
FY17
FY18
FY19
FY20
FY21
FY22
•
•
•
•
6
Smiggle
Powerful global brand rebounding
•
•
•
Smiggle delivered global sales of $261.2 million in FY22,
up 24.6% on FY21 (2H22 up 61.7%)
Smiggle is a unique global brand and the ultimate
children’s destination for school essentials. From
backpacks, water bottles and lunchboxes to pens and
pencil cases, Smiggle is the original creator of all things
fun, colourful and on trend
Throughout FY22 the brand’s strength was reinforced
despite the ongoing impact of COVID-19, delivering full
year sales growth across all markets globally
• Australia and New Zealand performance has been very
strong delivering total and like-for-like (LFL) growth
across both markets and all states for 2H22 and FY22
•
Europe sales performance has continued to rebound
and surpass expectations, particularly in key tourist
stores with global travel resuming
• Asia performance has started to bounce back in 2H22
due to children returning to school and tourism
resuming, delivering very strong 2H22 LFL growth
•
Smiggle’s international wholesale markets have delivered
record second half and full year results, with strong
demand from both existing and new partners
• Highly successful global collaborations in FY22
including with Disney studios (Disney Princesses, Marvel),
BBC studios (Bluey), Universal Studios (Minions) and first
sporting collaboration with AFL, with results and
response from Smiggle customers far exceeding
expectations. Long runway for future collaborations
with industry leading film studios that are aligned to
Smiggle’s core consumers, values and philosophy
• Under the leadership of John Cheston, Smiggle will
maximise EBIT growth as sales continue to rebound in
all markets and across all channels
The key to Smiggle’s success
is children attending school.
Smiggle sales are rebounding
as schools have reopened
Annual Report 2022
7
Online Channel - Grows fivefold in 5 years
• Record Online sales of $340.1 million, up $42.6
million or 14.3% on a previous record FY21 and
contributed 22.7% of total FY22 sales (FY21: 20.9%)
•
•
•
•
•
Online channel sales have grown fivefold in 5 years
from FY17 ($68 million) to FY22 ($340 million)
Successfully launched a new Smiggle website in
Singapore, the 15th website now operating across
our global markets. Orders for all Asian customers
to be fulfilled directly from the existing Singapore
Distribution Centre
For each of the seven brands the most viewed
window and the largest store is the brand’s
online channel
Under the leadership of Georgia Chewing, major
investment continues in people, technology, digital
and marketing whilst continuing to deliver a world
class platform and customer experience
These investments mean the Online channel
continues to deliver significantly higher EBIT margin
than the retail store network providing significant
operating leverage for future growth
Online Sales Growth
22.7%
20.9%
18.1%
340
11.7%
297
9.5%
220
6.2%
148
113
68
FY17
FY18
FY19
FY20
FY21
FY22
Online Sales ($M)
Online Sales as % of Total Sales
20%
16%
12%
8%
4%
400
350
300
250
200
150
100
50
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Our Commitment to Sustainable
& Responsible Business Practices
Premier acknowledges that sustainable and ethical operations drive
positive change throughout our value chain for each brand; the workers
and the suppliers we partner with, our customers, our team, our
stakeholders, the communities we serve and our shareholders.
Our focus is to always act ethically, with integrity, responsibly
and with care in all our dealings. This is demonstrated
through our ways of working and defined in our Premier
Code of Conduct, our Policies and our training frameworks.
All of our commitments are underpinned by our values and
commitment to make meaningful and lasting change.
Our focus areas are People, Community, Environment and
Product & Ethical Sourcing.
Sustainable and responsible business practices are sponsored
at a Board level and are a strategic focus of our Directors.
Our CEO and Executive Team are accountable for the
implementation of our agreed commitments and goals.
Annual Report 2022
9
People
We strive to create a great place to work that is safe, inclusive and has the
best talent who can connect with current and emerging customer needs.
We seek to always promote diversity and equality end to end including
through our products, our stores and our marketing.
We have a suite of vehicles for our team members from
across all markets to provide us with feedback, including
“Have Your Say” email inbox, our People Support Hotline
for all concerns and ideas, and focus group discussions to
better understand key trends and initiatives to maximise
engagement with our team members.
Training and Development
Creating engaging experiences for our customers starts with
our team. Listening to our team and building a great place to
work enables us to attract and retain diversity of talent.
We are committed to unlocking the potential of every
team member.
Premier provides ongoing learning and development for our
team. We ensure all team members understand the
competencies for their roles and support this with a
comprehensive induction program, training, tools and regular
development discussions. Our training and development
programs enable in person and remote self-learning via our
‘Just Learn” platform. In FY22 10 training programs were
available on our online platform.
Reward and Recognition
We believe that celebrating our achievements, big and small,
are important for individuals and teams.
We recognise and reward in a number of ways throughout
the year including bi-annual Brand retail conferences,
incentive programs and our Annual Just Excellence Awards.
All brands embrace inclusive
ranging and marketing
campaigns that reflect the
diversity of our customers
Our 9,000+ team members across 7 countries are the
foundation of our retail brands and a key part of our success.
Premier believes that every workplace should be free from
discrimination and that everyone should feel confident to
be themselves at all times.
We have continued our focus of creating the trajectory of
opportunity and great careers for women in retail. In FY22,
91% of our total team are women and 53% of our executive
leadership team. Our Board is made up of 22% women.
We will continue to work hard on building more holistic
diversity and inclusion across our teams.
Workplace Safety
Creating a safe environment for our team, partners
and customers is a key priority that is embedded in our
culture. Our teams are trained to monitor, assess, prevent,
record and mitigate risks using the ‘Just Play it Safe’ and
‘Safety Eyes’ framework.
We operate Distribution Centres (DCs) in Australia and
New Zealand. They are a key focus given the risk of injury in
the movement of stock.
Our Key Performance Indicators (KPIs) include Lost Time
Injury (LTI) and Total Recordable Injury (TRI) – all metrics saw
improvement on the previous year and we remain focused
on ensuring all our teams return home safely and without
incident. We reported a 20% reduction in LTI compared to
the previous year and a 23% improvement to TRI.
Our Teams
It has been a unique few years and at Premier we recognise
the growing importance of a proactive approach to creating
a respectful culture that supports holistic well-being including
the physical and mental well-being of our team.
We recently completed our annual Workplace Behavior
training to ensure everyone is aware of expectations,
obligations and how to voice concerns.
If a team member has identified or experienced any breach
of the Code of Conduct or suspected wrongdoing there are a
number of avenues where they are encouraged to speak up.
We facilitate mental well-being training annually and our
teams also have access to an external Employee Assistance
Program (EAP) for a confidential counselling service.
10
91%
WOMEN TEAM
MEMBERS
53%
WOMEN IN EXECUTIVE
LEADERSHIP ROLES
(average service 10 years)
20%
WORKPLACE
SAFETY REDUCTION
82%
PEOPLE RESPONSE RATE
Launched our first Voice of
Team “Just: Have Your Say”
in July 2022 to drive insights
and engagement
Annual Report 2022
11
Community
Through continued collaboration and philanthropic funding,
we are proud to work alongside a number of organisations
through financial and in-kind support programs.
Premier believes it is important to have a positive impact in
the communities where we work and live. We are grateful
and inspired by the many organisations that exist to support
communities and we are proud to provide support.
This year, we continued to help a number of charities and
organisations who make a real difference. We are also
thankful for the generous contributions of our team and our
customers in our fund-raising efforts.
Supporting Flood Affected Communities
and Team Members
The severe weather events in FY22 affected many
communities across Australia. In response, we pledged
a once-off donation to the Red Cross and also rallied to
assist our affected team members.
We also partnered with NSW based charity Thread
Together to donate first life clothing that could be
responsibly distributed.
Animal Welfare
Peter Alexander is passionate about PJs and equally so about
animal welfare.
Our Peter Alexander team has had a long standing
relationship with the RSPCA in Australia and Paw Justice in
New Zealand. The work includes a number of activities to
fundraise and build awareness.
This year the proceeds of charity chocolate blocks were
donated to the RSPCA and this, along with other activities,
raised $63K. Since the partnership commenced over 15 years
ago, a total sum of over $1.3M has been raised.
Our growing presence in New Zealand communities has seen
similar activity with proceeds donated to Paw Justice. In FY22
we raised $6.6K, totaling over $140K since our partnership
began in 2014.
Peter, along with our team, continues this work to support
animal welfare.
PETER ALEXANDER
Animal Welfare donation
of $69k for the RSPCA
(Australia) and Paw Justice
(NZ) in FY22
12
$130K+
DONATED TO SUPPORT
THE NATIONAL BREAST
CANCER FOUNDATION
(NBCF)
Raising since 2016.
$120K
DONATED BY SMIGGLE
TO A NUMBER OF
ORGANISATIONS
Supporting education and
wellbeing of children and
families
Supporting Families and Children
Families are at the heart of all our Brands and none more
so than Smiggle.
Premier and our Smiggle brand contribute and fundraise for
a number of charities that support children’s physical and
mental well-being at home and in schools.
Our long-standing partnerships continue with the
below organisations.
Alannah & Madeline Foundation
Smiggle continue to partner with the Alannah & Madeline
Foundation, an organisation committed to the safety and
well-being of children who have experienced or witnessed
violence, including cyber bullying and bullying in schools.
Smiggle donated $70k AUD (RRP) worth of products in the
last financial year for inclusion in the charity’s “Buddy Bag”
programme. This programme provides vulnerable children
with backpacks full of essential home and school supplies.
Premier key charity partners include:
Dolly’s Dream
• RSPCA
• Paw Justice
• Dolly’s Dream
• Alannah & Madeline Foundation
• Givit
• Thread Together
• Camp Quality
• Australian Red Cross
• National Breast Cancer Foundation
• Johnathan Thurston Academy
Smiggle has been supporting Dolly’s Dream for the past
3 years. For the first time in FY22, Smiggle sold a
“Choose Kindness Keyring” during the Back to School
period, where all proceeds were donated to Dolly’s
Dream. This initiative raised over $50k for Dolly’s
Dream. Dolly’s Dream is dedicated to changing the
culture of bullying by addressing the impact of bullying,
anxiety, depression and youth suicide, through
education and direct support to young people and
families. The funds raised help Dolly’s Dream to
continue to support schools with their eSmart
framework and workshops, speak directly to parents
through their online Parent Hub portal, and expand the
services of the Dolly’s Dream Support Line which is free
for parents, carers, grandparents, and children who
need help around bullying and associated mental
health issues.
Annual Report 2022
13
Environment
We recognise our responsibility to ensure we have a positive
impact on the environment and reduce the amount of energy
and natural resources consumed
Premier is committed to giving our team and customers
confidence that we will continue to reduce our environmental
footprint throughout our value chain.
We are focused on the future and understanding the end to
end impacts of our operations today with a commitment to
make progress year on year.
Energy Efficiency
Since 2012, we have implemented improved lighting
standards with an upgrade to energy efficient LED lighting
throughout our store, DC and support network. This upgrade
has reduced heat and had the knock-on positive impact of
reducing cooling requirements across sites.
Upgrade of all stores and
support sites to LED lighting
since 2012
Packaging Stewardship
Premier is a signatory to the Australian Packaging Covenant
which brings together business, government and industry to
educate and collaboratively take action to improve the
packaging value chain in Australia.
We are committed to continuing to understand and upgrade
how we enhance and improve packaging or look to more
circular solutions across our business.
Trial underway to reduce
Brand Plastic Bags with initial
results positively indicating
54% reduction
Branded Customer Bags
In FY22 we have also implemented a customer plastic bag
reduction trial with our brands. Since the trial we have
reduced plastic bag usage by a further 54%. We have
now rolled this initiative out in full across Australia and
New Zealand.
14
Product and Waste Reuse and Recycling
Majority of our carton packaging uses recycled content. We
also ensure the “reuse” of cartons across our stores and DCs
for replenishment of product. We have partnered with Opal
to collect and process any waste in line with their
well-documented recycling procedures. Over 800 tonnes of
cardboard was recycled by Opal from our Truganina DC and
over 185 tonnes of cardboard, paper and plastic collections
was recycled by NZ waste management from our New
Zealand DC in FY22.
All our sites have on-site recovery systems including paper,
cardboard and plastic recycling bins in team areas and in
docks. In late FY22 we finalised our partnership with
Reground who will collect all soft plastics and coffee grounds
from our support office and our Australian distribution
centres to be recycled into building film.
Our support office café will also have all coffee grounds
collected for distribution into a range of different commercial
and community gardens. This collaboration will enable us to
better understand, measure and improve our impact.
As we work hard to understand & measure our impact, we
are commited to demonstrate ongoing improvements.
Reuse mindset in all sites for
packaging and hangers. Partners
with Opal to ensure our core
packaging and visual solutions
contain recycled content
Leveraging Technology to Remove or
Reduce Operational Waste
Wherever we can, we look to remove or reduce operational
waste through technology including, support office swipe
activated print release, mobile and tablet devices across
our network replacing the need to print. Plus, in store
screen trials for customer engagement replacing printed
Point Of Sale (POS).
Product & Ethical Sourcing
We are committed to the highest standards of ethical conduct
and responsible sourcing practices to protect the rights of
workers and the communities from which we source.
Premier recognises the social and environmental impacts that
our purchasing decisions have.
In FY22 we continued to make good progress in how we
responsibly manage our end to end sourcing decisions.
We advocate protecting and improving working conditions,
human rights, ethical practices and environmental impacts.
Advocating to Protect and Improve Living
& Working Conditions
Premier has zero tolerance to modern slavery in all its forms.
Our second Modern Slavery Statement was published in
January 2022 which spoke to our updated Ethical sourcing
program. We will be publishing the first years results of the
new program in our next update.
In FY22 we were proud to publish our Living Wage Statement.
All suppliers must sign our Supplier Ethical Code of Conduct
(COC) which includes clauses relating to Modern Slavery,
compliance to local laws, the rights of workers, prohibiting
of discrimination in all forms and unauthorised sub-
contracting. In FY22 we updated our COC to ensure it
aligned with key human rights principles from International
Labour Organization (ILO) core standards and The United
Nation’s Guiding Principles on Human Rights (UNGPs).
Actions & Due Diligence - Sourcing
Responsibly and Ethically
Our sourcing model and policies enable us to make
responsible sourcing decisions and ensure that risks are
identified, managed and mitigated within our
Modern Slavery Framework.
We share our customers’ full engagement in understanding
where our products are made and that they are sourced
responsibly and ethically.
FY22 saw significant progress made in our updated Ethical
Sourcing program partnering with a global audit and
compliance provider ELEVATE Pty Ltd. The combination of
Elevate Responsible Sourcing Assessments (ERSA), Production
Verification Assessments and Anonymous Worker Sentiment
Surveys (WSS) provides a heightened level of data and
insights into our factory partners. With transparency and
integrity being key principles in our new program we will
continue to develop the necessary capacity building and
remediation programs to address the most common and
serious issues identified.
Additionally, the Sentinel technology, which is used on the
ELEVATE EiQ platform, is a tool that provides timely alerts
in relation to any possible human rights or environmental
breaches involving our suppliers and factory partners. In the
event of such a notification we can ensure all matters are
addressed directly with our supply partners and necessary
steps are taken if corrective action is required.
Within the reporting period, we became a supporter brand
of the Association of Professional Social Compliance Auditors
(APSCA). Through this Premier endorses APSCA’s work to
increase the professionalism, consistency and credibility of
individuals and organisations performing social compliance
audits. Where Premier chooses to accept audits conducted
by audit firms other than ELEVATE these must only be
conducted by APSCA member firms.
We have a dedicated sourcing office in Bangladesh and
continue to explore and source from multiple locations
including China, Bangladesh, India, Pakistan and Vietnam.
Partnered with our strategic audit partner
ELEVATE to conduct:
115 on-site social compliance audits
25 on-site production verification audits
44 anonymous worker sentiment surveys
Developed grievance mechanism with
ELEVATE
(full roll out in FY23)
To date, 75% of all brand product teams
and all Executive completed Ethical
Sourcing and Modern Slavery training
(remainder will be completed in FY23)
Published FY21 Modern Slavery Statement
January 2022
Annual Report 2022
15
Product & Ethical Sourcing
Premier Team and Supplier Training
Raw Material Sourcing
We have a dedicated Ethical Sourcing team who lead the
delivery, development and improvement of our ethical and
sustainability programs.
During FY22 this team commenced Premier’s annual Ethical
Sourcing and Modern Slavery training for support office
which was first rolled out to product team members and the
Executive team.
In addition to face-to-face remediation and support, in our
partnership with ELEVATE we also provide E-learning
modules covering topics such as Labour, Health & Safety,
Business Ethics and Environment to our suppliers.
Enhancement of Data Platforms and
risk frameworks for regions through our
partnership with ELEVATE EiQ Sentinel
technology
Extended our membership application
with Better Cotton from Just Jeans to
now include Dotti, Jay Jays, Jacqui E, Peter
Alexander and Portmans
Published Living Wage Statement
Our sourcing commitments extend to our raw materials. Our
progress includes:
• In late FY22 we began the application to extend our
membership with Better Cotton to include Dotti, Jay Jays,
Jacqui E, Peter Alexander and Portmans. Just Jeans have
been a member since January 2021.
• Peter Alexander continues its commitment to the Global
Organic Textile Standard (GOTS) for a selection
of women’s and babies apparel. Clothing produced under a
GOTS certification must use a minimum of 95% organic
cotton and each stage in the supply chain must adhere to
strict guidelines to ensure processes adhere to organic
principles.
• We continue to target and increase our uptake of more
sustainable sourcing of raw materials. In addition, we
provide a claims framework and a set of guidelines for our
team members to assist them along in this journey.
• We do not condone the sourcing of cotton harvested from
any region where state sanctioned forced labour regimes or
any forced labour practices exists.
• We do not support practices that are not safe for worker
health or the environment such as the use of azo dyes and
sandblasting denim.
16
Premier Investments Limited
A.C.N. 006 727 966
Financial Report
For the 52 weeks ended 30 July 2022
and the 53 weeks ended 31 July 2021
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
2
33
34
35
36
37
38
86
87
93
95
1
Annual Report 2022 Directors’ Report
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 30 July 2022.
The Directors present their report together with the consolidated financial report of Premier Investments Limited (the
“Company” or “Premier") and its controlled entities (the “Group”) for the 52 week period 01 August 2021 to 30 July
2022, together with the independent audit report to the members thereon.
DIRECTORS
The names and details of the Company’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-Executive Director and Chairman of Premier on 31 March 2008. Mr. Lew is a director of
Century Plaza Investments Pty Ltd, the largest shareholder in Premier and was previously Chairman of Premier from
1987 to 1994.
Mr. Lew has over 50 years’ experience in the manufacture, wholesale and retailing of textiles, apparel and general
merchandise, 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, 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, serving as Vice Chairman from 1989, Chairman from
1991 to 1995, 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’s
Business Advisory Council.
Mr. Lew was the inaugural Chairman of the Mount Scopus Foundation (1987 – 2013) which supports the Mount
Scopus College, one of Australia’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-Executive Director of Premier since December 2009, Deputy Chairman since
July 2015 and is currently the Chairman of Premier’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, 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, 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,
Public Sector Management, Finance and Treasury.
Dr. Crean has been a Non-Executive Director and Deputy Chairman of Moonlake Investments, owner of VDL dairy
farms in Tasmania from August 2016 to April 2018. 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.
2
Premier Investments Limited 2
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
Timothy Antonie 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 qualified as a Chartered Accountant with Price Waterhouse. He has 20 years’ experience
in investment banking and formerly held positions of Managing Director from 2004 to 2008 and Senior Advisor in 2009
at UBS Investment Banking, with particular focus on large scale mergers and acquisitions and capital raisings in the
Australian retail, consumer, media and entertainment sectors.
Mr. Antonie is also Chairman of Breville Group Limited and Netwealth Group Limited and is a Principal of Stratford
Advisory Group. Mr. Antonie was also a Non-Executive Director of Village Roadshow Limited (retired 4 December
2019).
Sylvia Falzon Non-Executive Director
Ms. Falzon was appointed to the Board of Directors on 16 March 2018. She brings to Premier an executive career that
spanned over nearly 30 years in Financial Services where she held senior executive positions responsible for
institutional and retail funds management businesses, both here in Australia and offshore.
As a Non-Executive Director since 2010, Ms. Falzon has experience across a range of sectors and customer driven
businesses in financial services, health, aged care, e-commerce and retail. During this time, she has been involved in
several business transformations, IPOs, merger and acquisitions and divestment activities. Ms. Falzon is currently an
Independent Non-Executive Director of the ASX listed company Suncorp Group Limited. In the not-for-profit sector, she
is the Chairman of Cabrini Australia Limited. Ms. Falzon previously served on the board of ASX listed companies Zebit
Inc until 17 March 2022, Regis Healthcare until October 2021 and Perpetual Limited until October 2019.
Ms. Falzon holds a Masters Degree in Industrial Relations and Human Resource Management (Hons) from the
University of Sydney and a Bachelor of Business from the University of Western Sydney. She is a Senior Fellow of the
Financial Services Institute of Australasia and a Fellow of the Australian Institute of Company Directors.
Sally Herman Non-Executive Director
Ms. Herman is an experienced Non-Executive Director in the fields of financial services, retail, manufacturing and
property. She had a successful executive career spanning 25 years in financial services in both Australia and the US,
transitioning in late 2010 to a full time career as a Non-Executive Director.
Prior to that, she had spent 16 years with the Westpac Group, running major 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 not-for-profit Boards, including Suncorp Group Limited, Breville Group Limited,
Irongate Funds Management Limited (recently taken over by Charter Hall), and E&P Financial Group Limited (resigned
November 2021). She is also a Trustee of the Art Gallery of NSW. Ms. Herman holds a Bachelor of Arts from the
University of New South Wales and is a Graduate of the Australian Institute of Company Directors.
Henry D. Lanzer AM B.COM. LLB (Melb) Non-Executive Director
Henry Lanzer AM is Managing Partner of Australian commercial law firm, Arnold Bloch Leibler. Henry has over 40
years’ experience in providing legal, corporate finance and strategic advice to some of Australia’s leading companies.
Mr. Lanzer was appointed to the Board of Directors in 2008. He is a Non-Executive Director of Just Group Limited,
Thorney Opportunities Limited and previously the TarraWarra Museum of Art and the Burnett Institute. He is also a Life
Governor of the Mount Scopus College Council. In June 2015, Mr. Lanzer was appointed as a Member of the Order of
Australia.
3
3
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
Michael R.I. McLeod 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, investment and public affairs. He has been a Non-Executive
Director of Premier Investments Limited since 2002 and was a Non-Executive Director of Just Group Limited from 2007
to 2013. Past experience includes the Australian Board of an international funds manager, 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.
Terrence L. McCartney Non-Executive Director
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 acquisition of Grace Bros by Myer, 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
Zealand, Terry became Managing Director of Myer Grace Bros. For 5 years Terry lead year on year growth in
profitability of Australia’s largest department store.
Terry’s experience spans the full spectrum of retailing, 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, he has also been an advisor to large Australian and international
mining companies, prior to joining the Just Group Board in 2008. Terry lends his extensive retail and commercial
expertise to the Just Group as Non-Executive Director, and by serving on a number of committees, including the
Internet Steering Committee of the Group, and through various store and site visits, 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, he was appointed Chairman of the
Remuneration and Nomination Committee.
Richard Murray Executive Director (Appointed as Director: 3 December 2021)
Richard Murray commenced as Premier Retail Chief Executive Officer on 6 September 2021 and was appointed to the
Premier Board as Executive Director on 3 December 2021. Richard has over 25 years’ experience in retail and finance.
Prior to joining Premier, Richard held the position of Group Chief Executive Officer and Executive Director at JB Hi-Fi
Limited (ceased August 2021). Richard joined JB Hi-Fi as Chief Financial Officer in 2003 and took the business
through the IPO process. Richard was appointed as Group CEO of JB Hi-Fi on 1 July 2014, at the age of 38. Prior to
his career at JB Hi-Fi, Richard was an Associate Director in the Corporate Finance Division of Deloitte.
Richard was the founding Chairman of the Australian Retailers Association CEO Forum and he recently retired as
Inaugural Chairman of the Workplace Giving Australia Leadership Initiative, which aims to encourage Australian
businesses to set up Workplace Giving Programs.
Mark McInnes Executive Director (Resigned as Director: 19 August 2021)
Mr McInnes was appointed Premier Retail CEO in April 2011 and was appointed to the Board in December 2012. In
January 2021, Mr. McInnes resigned and commenced gardening leave on 14 August 2021 until the end of his 12-
month notice period, being 15 January 2022. Mr. McInnes resigned as Executive Director of Premier effective
19 August 2021.
4
Premier Investments Limited 4
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
COMPANY SECRETARY
Marinda Meyer
Ms. Meyer has over 19 years’ experience as a practising Chartered Accountant in senior finance roles. She has both
local and international experience in financial accounting and reporting, corporate governance, and administration of
listed companies.
PRINCIPAL ACTIVITIES
The Group operates a number of specialty retail fashion chains within the specialty retail fashion markets in Australia,
New Zealand, Asia and Europe. The Group also has significant investments in listed securities and money market
deposits.
DIVIDENDS
Final Dividend approved for 2022
Special Dividend approved for 2022
Dividends paid in the year:
Final for 2021 (paid on 27 January 2022)
Interim for the half-year ended 29 January 2022 (paid on 27 July 2022)
OPERATING AND FINANCIAL REVIEW
Group Overview:
CENTS
54.00
25.00
46.00
46.00
$’000
85,856
39,748
73,137
73,137
Premier Investments Limited acquired a controlling interest in Just Group Limited (“Just Group”), a listed company on
the Australian Securities Exchange in August 2008. Just Group is a leading specialty fashion retailer with operations in
Australia, New Zealand, Asia and Europe. The Group has a portfolio of well-recognised retail brands, consisting of
Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander and Smiggle. Currently, these seven unique brands
are trading from more than 1,100 stores across six countries, as well as through wholesale and online. The Group’s
key strategic growth initiatives continue to deliver results for the Group. The Group’s emphasis is on a range of brands
that provide diversification through breadth of target demographic and sufficiently broad appeal to enable a broad
footprint. Over 90% of the product range is designed, 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.
The Group’s reported revenue from contracts with customers, total income and net profit before income tax for the 52
week period ended 30 July 2022 (2021: 53 week period ended 31 July 2021) are summarised below:
CONSOLIDATED
52 WEEKS ENDED 30
JULY 2022
$’000
53 WEEKS ENDED 31
JULY 2021
$’000
% CHANGE
Revenue from contracts with customers
Total interest income
Total dividend income
Total other income and revenue
Total revenue and other income
1,497,520
1,321
2,449
15,586
1,516,876
1,443,174
1,148
+3.8%
+15.1%
-
+100.0%
14,337
1,458,659
+8.7%
+4.0%
Reported profit before income tax
392,663
379,583
+3.4%
5
5
Annual Report 2022 DIRECTORS’ REPORT
DIRECTORS’ REPORT
(CONTINUED)
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment:
Retail Segment:
As Premier’s core business, Just Group (Premier Retail) was the key contributor to the Group’s operating results for
As Premier’s core business, Just Group (Premier Retail) was the key contributor to the Group’s operating results for
the financial year. Key financial indicators for the retail segment for the 52 week period ended 30 July 2022
the financial year. Key financial indicators for the retail segment for the 52 week period ended 30 July 2022
(2021: 53 week period ended 31 July 2021) are highlighted below:
(2021: 53 week period ended 31 July 2021) are highlighted below:
RETAIL SEGMENT
RETAIL SEGMENT
52 WEEKS
52 WEEKS
ENDED 30 JULY
ENDED 30 JULY
2022
2022
$’000
$’000
53 WEEKS
53 WEEKS
ENDED 31 JULY
ENDED 31 JULY
2021
2021
$’000
$’000
% CHANGE
% CHANGE
Revenue from contracts with customers
Revenue from contracts with customers
Total segment income
Total segment income
1,497,520
1,497,520
1,498,139
1,498,139
1,443,174
1,443,174
1,448,752
1,448,752
+3.8%
+3.8%
+3.4%
+3.4%
Segment net profit before income tax
Segment net profit before income tax
353,192
353,192
352,112
352,112
+0.3%
+0.3%
The Retail Segment contributed $353.2 million to the Group’s net profit before income tax for the 52 week period
The Retail Segment contributed $353.2 million to the Group’s net profit before income tax for the 52 week period
ended 30 July 2022 (2021: $352.1 million net profit before income tax for the 53 week period ended 31 July 2021). The
ended 30 July 2022 (2021: $352.1 million net profit before income tax for the 53 week period ended 31 July 2021). The
results for the 2021 financial year included a 53rd trading week, which contributed $19.3 million in sales, and
results for the 2021 financial year included a 53rd trading week, which contributed $19.3 million in sales, and
$8.9 million to the Retail Segment’s earnings before interest and tax (“EBIT”). Refer to page 9 of the directors’ report
$8.9 million to the Retail Segment’s earnings before interest and tax (“EBIT”). Refer to page 9 of the directors’ report
for a reconciliation of Premier Retail EBIT and reported Premier Retail Profit before Tax.
for a reconciliation of Premier Retail EBIT and reported Premier Retail Profit before Tax.
Premier Retail EBIT (comparable 52-week basis)
PREMIER RETAIL EBIT (comparable 52-week basis)
PREMIER RETAIL EBIT (comparable 52-week basis)
$304.3
$304.3
$335.0
$335.0
$304.3
$335.0
$167.3
$167.3
$167.3
$187.2
$187.2
$187.2
FY19
FY19
(Pre-Covid)
(Pre-Covid)
FY19
(Pre-Covid)
FY20
FY20
FY21
FY21
FY22
FY22
FY20
FY21
+ 10.1% on PY
+ 10.1% on PY
FY22
+10.1% on PY
+ 100.2% on “Pre-Covid” FY19
+ 100.2% on “Pre-Covid” FY19
+100.2% on “Pre-Covid” FY19
Premier Retail EBIT, on a comparable 52 week period, has increased 10.1% on the 2021 financial year, and has
Premier Retail EBIT, on a comparable 52 week period, has increased 10.1% on the 2021 financial year, and has
increased over 100% on a comparable pre-pandemic 52 week period EBIT in the 2019 financial year.
increased over 100% on a comparable pre-pandemic 52 week period EBIT in the 2019 financial year.
Over the years, Premier Retail has evolved into a multi-channel global business, growing the portfolio of 7 unique
Over the years, Premier Retail has evolved into a multi-channel global business, growing the portfolio of 7 unique
brands to each have a distinctive and competitive market position. The Group’s ability to remain nimble, under the
brands to each have a distinctive and competitive market position. The Group’s ability to remain nimble, under the
leadership of an experienced Board and highly motivated senior management team, enables us to pivot when macro-
leadership of an experienced Board and highly motivated senior management team, enables us to pivot when macro-
economic environments change.
economic environments change.
6
6
Premier Investments Limited 6
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
Retail Segment (continued):
DIRECTORS’ REPORT
(CONTINUED)
Evolution of Premier Retail Sales to Customers over 10 years
Evolution of Premier Retail Sales to Customers over 10 years
Evolution of Premier Retail Sales to Customers over 10 years
FY12
FY12
FY12
FY16
FY16
FY16
FY19
FY19
FY19
FY22
FY22
FY22
Sales of
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Sales of
Sales of $837m, trading
$837m, trading
$837m, trading
in 4 countries
in 4 countries and
in 4 countries
and online.
and online.
online.
Sales break through $1bn
trading in 6 countries
and online.
Sales break through $1bn
trading in 6 countries and
online.
Sales break through $1bn
trading in 6 countries and
online.
Pre-Covid: Sales of
~$1.3bn trading in 7
countries, online and
global wholesale.
Pre-Covid: Sales of
Pre-Covid: Sales of ~$1.3bn
~$1.3bn trading in 7
trading in 7 countries, online
countries, online and
global wholesale.
and global wholesale.
Retail Segment (continued):
Sales of ~$1.5bn trading
in 6 countries, online and
global wholesale.
Sales of ~$1.5bn trading
Sales of ~$1.5bn trading
in 6 countries, online and
in 6 countries, online and
global wholesale.
global wholesale.
Evolution of Premier Retail Sales to Customers over 10 years
FY12
FY16
Premier Retail delivered global sales for the 2022 financial year of $1.5 billion, up 5.2% on a comparable 52 week
Premier Retail delivered global sales for the 2022 financial year of $1.5 billion, up 5.2% on a comparable 52 week
FY22
period for the 2021 financial year. Global sales are up 17.8% on pre-pandemic sales for the 2019 financial year.
period for the 2021 financial year. Global sales are up 17.8% on pre-pandemic sales for the 2019 financial year.
Premier Retail delivered this strong sales result for the 2022 financial year despite temporary COVID-19 related retail
Premier Retail delivered this strong sales result for the 2022 financial year despite temporary COVID-19 related retail
Sales break through $1bn
store closures for most of the first quarter of the financial year in Australia and New Zealand.
store closures for most of the first quarter of the financial year in Australia and New Zealand.
trading in 6 countries and
online.
Sales of
$837m, trading
in 4 countries
and online.
Revenue from customers per Geographic Segment for the 52 weeks ended 30 July 2022
Revenue from customers per Geographic Segment for the
52 weeks ended 30 July 2022
Revenue from customers per Geographic Segment for the 52 weeks ended 30 July 2022
Pre-Covid: Sales of
~$1.3bn trading in 7
countries, online and
global wholesale.
Sales of ~$1.5bn trading
in 6 countries, online and
global wholesale.
FY19
Premier Retail delivered global sales for the 2022 financial year of $1.5 billion, up 5.2% on a comparable 52 week
period for the 2021 financial year. Global sales are up 17.8% on pre-pandemic sales for the 2019 financial year.
Premier Retail delivered this strong sales result for the 2022 financial year despite temporary COVID-19 related retail
store closures for most of the first quarter of the financial year in Australia and New Zealand.
New
Zealand
10%
7%
Europe
Asia
3%
Europe
7%
Europe
7%
Asia
3%
New
Zealand
10%
Revenue from customers per Geographic Segment for the 52 weeks ended 30 July 2022
3%
Asia
10%
New Zealand
Asia
3%
Europe
7%
Australia
80%
Australia
80%
80%
Australia
New
Zealand
10%
In addition to increased sales and EBIT, the Premier Retail increased its gross margin to 64.8% (2021: 64.3%). The
In addition to increased sales and EBIT, the Premier Retail increased its gross margin to 64.8% (2021: 64.3%). The
strong sales and uplift in gross profit, together with operational excellence and strong cost control has delivered a
strong sales and uplift in gross profit, together with operational excellence and strong cost control has delivered a
record EBIT of $335.0 million, up 10.1% on the previous year (2021: $304.3 million, on a comparable 52 week period).
record EBIT of $335.0 million, up 10.1% on the previous year (2021: $304.3 million, on a comparable 52 week period).
Australia
80%
The Retail Segment delivered record online sales of $340.1 million for the 52 weeks ended 30 July 2022 – an increase
of 14.3% on the prior year comparable 52 week period. The online channel contributed 22.7% of total group sales to
customers for the period ended 30 July 2022 (2020: 20.9%). The Group is pleased to have world class customer facing
websites and it will continue to make major investments in its people, its information technology, digital marketing
capability and distribution centres to maximise the increasing customer preference to shop online.
The Retail Segment delivered record online sales of $340.1 million for the 52 weeks ended 30 July 2022 – an increase
of 14.3% on the prior year comparable 52 week period. The online channel contributed 22.7% of total group sales to
customers for the period ended 30 July 2022 (2020: 20.9%). The Group is pleased to have world class customer facing
websites and it will continue to make major investments in its people, its information technology, digital marketing
capability and distribution centres to maximise the increasing customer preference to shop online.
In addition to increased sales and EBIT, the Premier Retail increased its gross margin to 64.8% (2021: 64.3%). The
strong sales and uplift in gross profit, together with operational excellence and strong cost control has delivered a
Peter Alexander delivered another record sales result for the period ended 30 July 2022 of $428.5 million, up 11.4% on
Peter Alexander delivered another record sales result for the period ended 30 July 2022 of $428.5 million, up 11.4% on
a record set in the prior year (2021: $384.5 million for a comparable 52 week period). The record result was driven
record EBIT of $335.0 million, up 10.1% on the previous year (2021: $304.3 million, on a comparable 52 week period).
a record set in the prior year (2021: $384.5 million for a comparable 52 week period). The record result was driven
across all Peter Alexander product categories. The Group’s decision to continuously invest in inventory, enabled Peter
across all Peter Alexander product categories. The Group’s decision to continuously invest in inventory, enabled Peter
Alexander to be in-stock during key gift giving periods during the year – Black Friday/Cyber Monday, Christmas,
Alexander to be in-stock during key gift giving periods during the year – Black Friday/Cyber Monday, Christmas,
Easter, Mother’s Day and Father’s Day.
Easter, Mother’s Day and Father’s Day.
The Retail Segment delivered record online sales of $340.1 million for the 52 weeks ended 30 July 2022 – an increase
of 14.3% on the prior year comparable 52 week period. The online channel contributed 22.7% of total group sales to
customers for the period ended 30 July 2022 (2020: 20.9%). The Group is pleased to have world class customer facing
Smiggle delivered global sales of $261.2 million for the 52 weeks ended 30 July 2022, an increase of 24.6% on a
Smiggle delivered global sales of $261.2 million for the 52 weeks ended 30 July 2022, an increase of 24.6% on a
websites and it will continue to make major investments in its people, its information technology, digital marketing
comparable 52 week period in 2021. The key to Smiggle’s success is children attending school, and as schools have
comparable 52 week period in 2021. The key to Smiggle’s success is children attending school, and as schools have
capability and distribution centres to maximise the increasing customer preference to shop online.
reopened, and remained open across the global market, Smiggle sales have rebounded. During the year Smiggle
reopened, and remained open across the global market, Smiggle sales have rebounded. During the year Smiggle
continued its partner collaborations, with successful collaborations with Disney Studios, Universal Studios, BBC
continued its partner collaborations, with successful collaborations with Disney Studios, Universal Studios, BBC
Studios and the Australian Football League.
Studios and the Australian Football League.
Peter Alexander delivered another record sales result for the period ended 30 July 2022 of $428.5 million, up 11.4% on
a record set in the prior year (2021: $384.5 million for a comparable 52 week period). The record result was driven
across all Peter Alexander product categories. The Group’s decision to continuously invest in inventory, enabled Peter
Pleasingly, the Group’s five iconic Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui-E) delivered a
Alexander to be in-stock during key gift giving periods during the year – Black Friday/Cyber Monday, Christmas,
combined sales result for the period ended 30 July 2022 of $807.9 million - up 12.7% on pre-pandemic sales of
Easter, Mother’s Day and Father’s Day.
$671.8 million in the 2019 financial year.
Pleasingly, the Group’s five iconic Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui-E) delivered a
combined sales result for the period ended 30 July 2022 of $807.9 million - up 12.7% on pre-pandemic sales of
$671.8 million in the 2019 financial year.
Smiggle delivered global sales of $261.2 million for the 52 weeks ended 30 July 2022, an increase of 24.6% on a
comparable 52 week period in 2021. The key to Smiggle’s success is children attending school, and as schools have
reopened, and remained open across the global market, Smiggle sales have rebounded. During the year Smiggle
continued its partner collaborations, with successful collaborations with Disney Studios, Universal Studios, BBC
Studios and the Australian Football League.
7
Pleasingly, the Group’s five iconic Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui-E) delivered a
combined sales result for the period ended 30 July 2022 of $807.9 million - up 12.7% on pre-pandemic sales of
$671.8 million in the 2019 financial year.
7
7
7
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
Premier Retail’s seven iconic brands and omni-channel offer leverage synergies from its centralised sourcing and
supply chain functions, as well as a centralised support centre.
The Group operates centralised distribution centres in four countries, including the Group’s owned Australian
Distribution Centre. These distribution centres have enabled the Group to be agile and scale up operations in response
to customer shopping behaviours across all channels.
The Group prides itself on having:
A portfolio of seven unique brands, each with a strong and distinctive competitive market position
Omni-channel – driving seamless customer experience across all channels
Leveraging synergies from centralised support functions
Support from its experienced Board, and capital
Investment Segment:
The Group’s balance sheet remains strong, primarily due to the significant asset holding of the investment segment. As
at 30 July 2022, the Group continued to reflect its 25.62% (2021: 26.27%) shareholding in Breville Group Limited as an
investment in associate, with an equity accounted value of $312.2 million (2021: $271.4 million). The fair value of the
Group’s interest in Breville Group Limited as determined based on the quoted market price for the shares as at 30 July
2022 was $760.3 million (2021: $1,173.5 million). Dividends received from Breville Group Limited during the year
amounted to $10.4 million (2021: $12.2 million).
During the 2017 financial year, the Group acquired a strategic investment of 10.77% in Myer Holdings Limited. A
further 5% was acquired during the 2021 financial year, and 4.11% was acquired during the 2022 financial year, taking
the total investment to 19.88%. At the end of the 2022 financial year the fair value of this listed equity investment is
reflected as $75.9 million (2021: $63.5 million). Subsequent to 30 July 2022, the Group acquired a further 2.99%,
taking the total investment to 22.87%. Dividends received from Myer Holdings Limited during the year amounted to
$2.4 million (2021: nil).
Premier owns its Australian Distribution Centre, as well as the global head office building of Premier Retail in
Melbourne. These properties are carried at a combined written down value at 30 July 2022 of $72.7 million
(2021: $74.2 million).
8
Premier Investments Limited 8
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R
Annual Report 2022
DIRECTORS’ REPORT
(CONTINUED)
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
30 July 2022.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final dividend in respect of the 2022 financial year. The
total amount of the final dividend is $85,856,000 (2021: $73,137,000) which represents a fully franked dividend of 54
cents per share (2021: 46 cents per share). In addition, the Directors of Premier Investments Limited approved a
special dividend in respect of the 2022 financial year. The total amount of the special dividend is $39,748,000 (2021:
$nil) which represents a fully franked dividend of 25 cents per share (2021: nil cents per share). The dividends have
not been provided for in the 2022 financial statements.
The Directors of Premier Investments Limited approved an on-market share buyback of up to $50 million. The on-
market share buyback will be for a period of 12 months, from 18 October 2022 to 17 October 2023. The total
number of shares to be purchased under the on-market share buyback will be dependent on business and market
conditions and Premier may, at its discretion, vary the size of the on-market share buyback.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Certain likely developments in the operations of the Group and the expected results of those operations in financial
years subsequent to the period ended 30 July 2022 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 prejudice to the Group if included in this report, and it has therefore been excluded in
accordance with section 299(3) of the Corporations Act 2001.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are not subject 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, there were 1,412,074 (2021: 673,886) unissued performance rights. Refer to the
remuneration report for further details of the options outstanding in relation to Key Management Personnel.
Shares Issued as a Result of the Exercise of Options:
A total of 129,077 shares (2021: 139,524) were issued during the year pursuant to the Group’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, the company indemnifies every person who is or has been a director or officer of the
company or of a wholly-owned subsidiary of the company against liability for damages awarded or judgments
entered against them and legal defence costs and expenses, arising out of a wrongful act, incurred by that person
whilst acting in their capacity as a director or officer provided there has been no admission, or judgment, award or
other finding by a court, tribunal or arbitrator which establishes improper use of position, or committing of any
criminal, dishonest, fraudulent or malicious act.
The officers include the Directors, as named earlier in this report, the Company Secretary and other officers, 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, and Officers, liability insurance contracts are not disclosed as such disclosure is
prohibited under the terms of the contracts.
10
Premier Investments Limited 10
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the company has agreed to indemnify its auditors, Ernst & Young, 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.
ROUNDING
The company is a company of the kind specified in ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, dated 24 March 2016. In accordance with that ASIC instrument amounts in the financial
statements and the Directors’ Report have been rounded to the nearest thousand dollars unless specifically stated to
be otherwise.
DIRECTOR 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:
Solomon Lew
Timothy Antonie
Sally Herman
Henry Lanzer AM
Michael McLeod
Richard Murray
4,437,699 ordinary shares**
5,001 ordinary shares
11,500 ordinary shares
27,665 ordinary shares
28,186 ordinary shares
800,000 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
Solomon Lew
Richard Murray *
Mark McInnes **
Timothy Antonie
David Crean
Sylvia Falzon
Sally Herman
Henry Lanzer AM
Terrence McCartney
Michael McLeod
BOARD MEETINGS
AUDIT AND RISK COMMITTEE
REMUNERATION AND
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
6
3
-
6
6
6
6
6
6
6
6
3
-
6
6
6
6
6
6
6
-
-
-
4
4
4
4
-
-
-
-
1
-
4
4
4
4
1
2
-
-
-
-
3
-
-
-
-
3
3
-
-
-
3
-
-
-
-
3
3
*
Mr. Murray was appointed as a Director on 3 December 2021.
** Mr. McInnes resigned as a Director on 19 August 2021.
11
11
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
CORPORATE GOVERNANCE STATEMENT
To view Premier’s Corporate Governance Statement, please visit www.premierinvestments.com.au/about-us/board-
policies.
AUDITOR INDEPENDENCE
The Directors received a copy of the Auditor’s Independence Declaration in relation to the audit for this financial year
and is presented on page 33.
NON-AUDIT SERVICES
The Directors are satisfied that the provision of non-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-audit
service provided means that independence was not compromised.
Details of non-audit services provided by the Group’s auditor, Ernst & Young, can be found in Note 31 of the
Financial Report.
REMUNERATION REPORT
The Remuneration Report, which forms part of this Directors’ Report, is presented from page 13.
The Directors’ Report is signed in accordance with a resolution of the Board of Directors.
Solomon Lew
Chairman
3 October 2022
12
Premier Investments Limited 12
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT
Dear Shareholders,
As Chairman of the Remuneration and Nomination Committee, I am pleased to present Premier Investments’
remuneration report for the 52 weeks ended 30 July 2022. This report outlines, in detail, the remuneration outcomes
and incentive arrangements, related to our performance.
Premier has delivered another outstanding result for shareholders, with the Group generating a net profit after tax of
$285.2 million and delivering an annual dividend of 125 cents per share – the highest dividend in our history.
The Board recognises that the performance of the Group depends on the quality and dedication of our entire global
workforce. Our experienced executive leadership team, which includes our executive Key Management Personnel,
provide the integral backbone to the Group, delivering year-on-year growth in an increasingly competitive landscape.
As disclosed in last year’s remuneration report, Richard Murray was appointed as Premier Retail CEO. Richard
commenced with the Group on 6 September 2021. We look forward to continuing Premier Retail’s growth trajectory,
both locally and globally, under the leadership of Richard, who brings significant retail experience to the Group.
COVID-19 continued to present numerous challenges for our business during the year – from lost store trading days
due to mandated store closures in Australia and New Zealand, to safely navigating the return of our teams in stores
and throughout our support functions. The wellbeing and safety of our global teams remain at the forefront of the
Group’s decision making. We are pleased to report that today, the Group is again operating across its full store
network of over 1,100 stores in Australia, New Zealand, Asia and Europe, as well as through online and wholesale.
Notwithstanding the headwinds presented by COVID-19, the Group performed strongly. This has translated into
strong returns for our shareholders:
Premier Investments Limited net profit after tax of $285.2 million, up 4.9% on the 2021 financial year, and
up 167% on a ‘pre-COVID’ 2019 financial year;
Premier Retail EBIT of $335.0 million, an increase of 10.1% on the previous financial year (52 week
comparable), and an increase of 100.2% on a ‘pre-COVID’ 2019 financial year;
Premier Retail sales to customers of $1.5 billion, up 5.2% on a comparable 52 week period in 2021, and up
17.8% on a ‘pre-COVID’ 52 week 2019 financial year;
A full year dividend of 125 cents (ordinary and special) per share in the 2022 financial year, an increase of
56.3% on the previous financial year and the highest dividend in the Group’s history.
Full year ordinary and special dividends per share
Full year ordinary and special dividends per share
(fully franked)
(fully franked)
140
140
120
120
100
80
100
60
80
40
62
70
70
80
20
60
0
FY18
62
FY19
70
FY20
70
FY21
80
FY22
Ordinary
Special
25
100
25
100
FY18
FY19
FY20
FY21
FY22
13
Ordinary
Special
40
20
0
13
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (CONTINUED)
DIRECTORS’ REPORT
The Board believes that it is the Group’s ability to respond to changing environments, through strategic planning and
(CONTINUED)
execution by an experienced Board and skilled management team that have led to shareholders enjoying strong
financial returns. The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to
the overall performance and success of the Group.
REMUNERATION REPORT (CONTINUED)
The importance of attracting, retaining and rewarding a diverse senior executive team is crucial in navigating through
a complex retail environment, in a world adjusting to a “new normal”, living with COVID-19.
The Board believes that it is the Group’s ability to respond to changing environments, through strategic planning and
execution by an experienced Board and skilled management team that have led to shareholders enjoying strong
The Group encourages and supports a business leadership structure that reflects the values of equal opportunity
financial returns. The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to
across the Group. The Board is proud of its diverse senior executive team, whom are all well respected within the
the overall performance and success of the Group.
retail industry. Women represent 53% of Premier Retail’s senior executive leadership team, and 75% of management
positions are held by women1. Over 90% of the Group’s workforce are women. We will continue to encourage and
The importance of attracting, retaining and rewarding a diverse senior executive team is crucial in navigating through
support a business leadership structure that reflects the values of equal opportunity across the Group.
a complex retail environment, in a world adjusting to a “new normal”, living with COVID-19.
Building on the improvements introduced in the 2021 Remuneration Report, we continuously strive to improve on
The Group encourages and supports a business leadership structure that reflects the values of equal opportunity
executive remuneration disclosures and practices. The Remuneration Report summarises our remuneration
across the Group. The Board is proud of its diverse senior executive team, whom are all well respected within the
strategies, the way in which incentives are calculated, and the connection between those strategies and the
retail industry. Women represent 53% of Premier Retail’s senior executive leadership team, and 75% of management
achievement of positive returns for shareholders.
positions are held by women1. Over 90% of the Group’s workforce are women. We will continue to encourage and
support a business leadership structure that reflects the values of equal opportunity across the Group.
Building on the improvements introduced in the 2021 Remuneration Report, we continuously strive to improve on
executive remuneration disclosures and practices. The Remuneration Report summarises our remuneration
strategies, the way in which incentives are calculated, and the connection between those strategies and the
achievement of positive returns for shareholders.
Terrence McCartney
Chairman, Remuneration and Nomination Committee
Terrence McCartney
Chairman, Remuneration and Nomination Committee
1 As per the Just Group Limited Australian Workplace Gender Equality Agency Report 2021-2022.
1 As per the Just Group Limited Australian Workplace Gender Equality Agency Report 2021-2022.
14
Premier Investments Limited 14
14
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED)
This remuneration report for the 52 weeks ended 30 July 2022 outlines the remuneration arrangements of the Group
in accordance with the requirements of the Corporations Act 2001 (Cth), as amended (the “Act”) and its regulations.
This information has been audited as required by section 308 (3C) of the Act.
The remuneration report is presented under the following headings:
1.
Introduction
2. Remuneration Governance
3. Executive remuneration arrangements:
A. Remuneration principles and strategy
B. Fixed remuneration objectives
C. Group performance and its link to executive remuneration
D. Group performance and its link to STI
E. Group performance and its link to LTI
F. Detail of incentive plans
4. Remuneration framework of CEO Premier Retail, Mr. Murray
5. Executive service agreements
6. Non-Executive Director remuneration arrangements
7. Remuneration of Key Management Personnel
8. Additional disclosures relating to Rights and Shares
9. Additional disclosures relating to transactions and balances with Key Management Personnel
1.
INTRODUCTION
The remuneration report details the remuneration arrangements for Key Management Personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group.
The table below outlines the Group’s KMP during the 52 weeks ended 30 July 2022. Unless otherwise indicated, the
individuals were KMP for the entire financial year.
KEY MANAGEMENT PERSONNEL
(i) Non-Executive Directors
Solomon Lew
David Crean
Chairman and Non-Executive Director
Deputy Chairman and Non-Executive Director
Timothy Antonie
Non-Executive Director and Lead Independent Director
Sylvia Falzon
Sally Herman
Non-Executive Director
Non-Executive Director
Henry Lanzer AM
Non-Executive Director
Terrence McCartney
Non-Executive Director
Michael McLeod
Non-Executive Director
15
15
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
1.
INTRODUCTION (CONTINUED)
KEY MANAGEMENT PERSONNEL (CONTINUED)
(ii) Executive Director
Richard Murray
Executive Director and Chief Executive Officer Premier Retail (see note (a))
(iii) Executives
John Bryce
Chief Financial Officer, Just Group Limited
Marinda Meyer
Company Secretary, Premier Investments Limited
(a) Mr. Murray was appointed as CEO Premier Retail effective 6 September 2021 and was appointed as an
Executive Director on 3 December 2021.
Mark McInnes resigned on 15 January 2021 and commenced a period of gardening leave on 14 August 2021 until
15 January 2022. Mr. McInnes was therefore not a KMP in the 2022 financial year.
There were no other 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 (“Committee”) of the Board of Directors of the Group (“Board”) comprises
three Non-Executive Directors. The Committee is led by Terrence McCartney, an independent Non-Executive Director,
and the majority of its members are independent Non-Executive Directors. This demonstrates an ongoing commitment
to the independence of the Committee. The Committee has delegated decision-making authority for some matters
related to the remuneration arrangements for KMP and is required to make recommendations to the Board on other
matters.
Specifically, the Board approves the remuneration arrangements of the Chief Executive Officer Premier Retail (“CEO
Premier Retail”) and other executives, including awards made under the short-term incentive (“STI”) and long-term
incentive (“LTI”) plans, following recommendations from the Committee. The Board also sets the aggregate
remuneration for Non-Executive Directors (which is subject to shareholder approval) and Non-Executive Director fee
levels. The Committee approves, having regard to recommendations made by the CEO Premier Retail, the level of the
Group STI pool.
The Committee meets regularly. The CEO Premier Retail attends certain Committee meetings by invitation, where
management input is required. The CEO Premier Retail is not present during discussions relating to his own
remuneration arrangements.
Further information relating to the Committee’s role, responsibilities and membership can be seen at
www.premierinvestments.com.au.
Use of remuneration advisors
The Committee may from time to time seek external remuneration advice to ensure it is fully informed when making
remuneration decisions. Remuneration advisors are engaged by, and report directly to, the Committee.
No remuneration recommendations for the purposes of the Corporations Act 2001 were made during the 2022 financial
year.
16
Premier Investments Limited 16
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS
3. EXECUTIVE REMUNERATION ARRANGEMENTS
3A. Remuneration principles and strategy
3A. Remuneration principles and strategy
For the 52 weeks ended 30 July 2022, the executive remuneration framework comprised of fixed remuneration, STI
and LTI, as outlined below.
For the 52 weeks ended 30 July 2022, the executive remuneration framework comprised of fixed remuneration, STI
and LTI, as outlined below.
The Group aims to reward executives with a competitive level and mix of remuneration appropriate to their position and
responsibilities and linked to shareholder value creation.
The Group aims to reward executives with a competitive level and mix of remuneration appropriate to their position and
responsibilities and linked to shareholder value creation.
The Group’s executive remuneration strategy is designed to attract, motivate and retain high performing individuals,
and align the interests of executives with shareholders.
The Group’s executive remuneration strategy is designed to attract, motivate and retain high performing individuals,
and align the interests of executives with shareholders.
The Group operates mainly in the retail industry, with significant revenues earned in its traditional markets of Australia
and New Zealand. The retail industry in these markets has seen marked structural change over recent years, including
The Group operates mainly in the retail industry, with significant revenues earned in its traditional markets of Australia
a prevalence in the use of new and existing technology, an increase in international competitors and significant
and New Zealand. The retail industry in these markets has seen marked structural change over recent years, including
changes in general consumer sentiment.
a prevalence in the use of new and existing technology, an increase in international competitors and significant
changes in general consumer sentiment.
Complementing its strong market position in Australia and New Zealand, the Group continues to operate in
international markets in Asia and Europe.
Complementing its strong market position in Australia and New Zealand, the Group continues to operate in
international markets in Asia and Europe.
REVENUE FROM CUSTOMERS PER GEOGRAPHIC AREA FY22
REVENUE FROM CUSTOMERS PER GEOGRAPHIC AREA FY22
Revenue from customers per Geographic Segment for the
52 weeks ended 30 July 2022
Asia
3%
Asia
3%
Europe
7%
Europe
7%
7%
Europe
New Zealand
3%
10%
New Zealand
Asia
10%
10%
New Zealand
80%
Australia
Australia
80%
Australia
80%
The market for skilled and experienced executives in the retail industry continues to be increasingly competitive and
international in nature. The Group’s strong domestic position, as well as global reach, provides exposure to an
The market for skilled and experienced executives in the retail industry continues to be increasingly competitive and
international pool of talent and access to a diverse range of strategies to respond to industry changes.
international in nature. The Group’s strong domestic position, as well as global reach, 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’s growth focus, the Board believes it is both critical to the future success
of the business, and in the best interest of shareholders, to attract, retain and develop the best possible executive team
Given these structural changes and the Group’s growth focus, the Board believes it is both critical to the future success
through the provision of competitive remuneration packages, and incentive arrangements which are aligned to growth
of the business, and in the best interest of shareholders, to attract, retain and develop the best possible executive team
and performance. The year-on-year growth in performance and shareholder value over more than a decade, is a
through the provision of competitive remuneration packages, and incentive arrangements which are aligned to growth
testament to Premier’s remuneration strategy.
and performance. The year-on-year growth in performance and shareholder value over more than a decade, is a
testament to Premier’s remuneration strategy.
The Group’s strategic objective is to be recognised as a leader in the retail industry and build long term value for
shareholders.
The Group’s strategic objective is to be recognised as a leader in the retail industry and build long term value for
shareholders.
The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall
performance and success of the Group. This section illustrates this link between the Group’s strategic objectives and
The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall
its executive remuneration strategies.
performance and success of the Group. This section illustrates this link between the Group’s strategic objectives and
its executive remuneration strategies.
17
17
17
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3A. Remuneration principles and strategy (continued)
To be recognised as a leader in our industry and build long-term value for our shareholders
Group Objective
Remuneration strategy linkages to Group objective
Align the interests of executives with shareholders
The remuneration framework incorporates “at-
risk” components, through STI and LTI plans.
Performance is assessed against a suite of
financial and non-financial measures relevant
to the success of the Group and generating
returns for shareholders.
Attract, motivate and retain high performing
individuals
Remuneration is competitive as compared to
companies of a similar size and complexity.
Longer-term remuneration frameworks and
“at-risk” components encourage retention,
development and a multi-year performance
focus.
Component
Vehicle
Purpose
Link to performance
To provide competitive
fixed remuneration with
reference to the applicable
role, market and relevant
executive’s experience.
Both the executive’s performance,
and the performance of the Group,
are considered during regular
remuneration reviews.
Comprises
base salary,
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’s
earnings before interest and
taxation (“EBIT”) of each business
unit, as well as a suite of other
internal financial and non-financial
measures.
Vesting of performance rights is
dependent on both a positive total
shareholder return (“TSR”) and
measuring against a Comparison
Peer Group (defined in Section 3F
of this report).
Granted at the discretion of the
Board upon recommendation of the
Committee in exceptional
circumstances, and when in the
best interests of the Group.
18
Premier Investments Limited 18
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3B. Fixed remuneration objectives
3B. Fixed remuneration objectives
Fixed remuneration is reviewed by the Committee. The process consists of a review of the Group, applicable business
unit and executive’s individual performance, relevant comparative remuneration (both externally and internally) and,
Fixed remuneration is reviewed by the Committee. The process consists of a review of the Group, applicable business
where appropriate, external advice. The Committee has access to external advice independent of management.
unit and executive’s individual performance, relevant comparative remuneration (both externally and internally) and,
where appropriate, external advice. The Committee has access to external advice independent of management.
3C. Group performance and its link to executive remuneration
3C. Group performance and its link to executive remuneration
The Group is pleased to report that despite tough economic conditions, it continued to generate strong returns for
shareholders. The dividends approved for the period reaffirm the confidence the Directors have in the Group’s future
The Group is pleased to report that despite tough economic conditions, it continued to generate strong returns for
performance and underline Premier’s commitment to enhancing shareholder value through capital management and
shareholders. The dividends approved for the period reaffirm the confidence the Directors have in the Group’s future
business investment.
performance and underline Premier’s commitment to enhancing shareholder value through capital management and
business investment.
2022
2021
2020
2019
2018
Closing share price at end of financial year
Closing share price at end of financial year
Basic earnings per share (cents)
Basic earnings per share (cents)
Dividends per share (cents)
Dividends per share (cents)
Return on equity (%)
2022
$21.04
$21.04
179.40
179.40
125.02
125.02
17.0%
2021
$26.84
$26.84
171.15
171.15
80.0
80.0
17.7%
2020
$17.57
$17.57
86.89
86.89
70.0
70.0
10.2%
2019
$16.28
$16.28
67.51
67.51
70.0
70.0
7.9%
7.9%
2018
$17.35
$17.35
52.97
52.97
62.0
62.0
8.5%1
8.5%1
1 Return on Equity excludes the impact of a non-cash impairment of intangible assets in FY18 ($30 million).
Return on equity (%)
17.0%
10.2%
17.7%
2 Comprising an ordinary dividend of 100 cents per share, and a special dividend of 25 cents per share.
1 Return on Equity excludes the impact of a non-cash impairment of intangible assets in FY18 ($30 million).
2 Comprising an ordinary dividend of 100 cents per share, and a special dividend of 25 cents per share.
The below chart illustrates the total return of the Premier share price against the S&P/ASX200 Accumulation Index,
over the past 5 years, between 2017 and 2022.
The below chart illustrates the total return of the Premier share price against the S&P/ASX200 Accumulation Index,
over the past 5 years, between 2017 and 2022.
PREMIER SHARE PRICE TOTAL RETURN AGAINST ASX200 ACCUMULATION INDEX – 5 YEARS
Premier share price total return against ASX200 accumulation index - 5 years
PREMIER SHARE PRICE TOTAL RETURN AGAINST ASX200 ACCUMULATION INDEX – 5 YEARS
200%
200%
180%
180%
160%
160%
140%
140%
120%
120%
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
19
PMV.AX Total Return
.AXJOA Total Return
PMV.AX Total Return
.AXJOA Total Return
19
19
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
DIRECTORS’ REPORT
(CONTINUED)
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3C. Group performance and its link to executive remuneration (continued)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
The below chart illustrates full year ordinary and special dividends per share (fully franked) over a 5 year period:
3C. Group performance and its link to executive remuneration (continued)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
The below chart illustrates full year ordinary and special dividends per share (fully franked) over a 5 year period:
Full year ordinary and special dividends per share
3C. Group performance and its link to executive remuneration (continued)
(fully franked)
The below chart illustrates full year ordinary and special dividends per share (fully franked) over a 5 year period:
FULL YEAR ORDINARY AND SPECIAL DIVIDENDS PER SHARE
(fully franked)
FULL YEAR ORDINARY AND SPECIAL DIVIDENDS PER SHARE
(fully franked)
FULL YEAR ORDINARY AND SPECIAL DIVIDENDS PER SHARE
(fully franked)
140
120
25
150
100
80
150
100
150
100
50
100
50
0
50
0
0
60
40
20
62
62
62
FY18
62
FY18
FY18
70
70
70
FY19
70
FY19
FY19
0
25
25
100
25
100
100
FY22
80
80
80
FY21
80
100
FY21
FY21
FY22
FY22
70
70
70
Ordinary
Special
FY20
70
FY20
FY20
Ordinary
Special
FY19
FY18
Ordinary
Premier Retail achieved another outstanding result in FY22, with Premier Retail EBIT of $335.0 million, an increase of
FY20
10.1% on a comparable 52 week period in FY21. Notably, Premier Retail’s FY22 EBIT is up 100.2% on a “Pre-COVID”
Premier Retail achieved another outstanding result in FY22, with Premier Retail EBIT of $335.0 million, an increase of
FY19 EBIT of $167.3 million. The following chart shows Premier Retail’s EBIT for the past 4 years.
10.1% on a comparable 52 week period in FY21. Notably, Premier Retail’s FY22 EBIT is up 100.2% on a “Pre-COVID”
Premier Retail achieved another outstanding result in FY22, with Premier Retail EBIT of $335.0 million, an increase of
FY19 EBIT of $167.3 million. The following chart shows Premier Retail’s EBIT for the past 4 years.
10.1% on a comparable 52 week period in FY21. Notably, Premier Retail’s FY22 EBIT is up 100.2% on a “Pre-COVID”
PREMIER RETAIL EBIT (comparable 52-week basis)
FY19 EBIT of $167.3 million. The following chart shows Premier Retail’s EBIT for the past 4 years.
Special
FY21
Ordinary
Special
FY22
PREMIER RETAIL EBIT (comparable 52-week basis)
Premier Retail EBIT (comparable 52-week basis)
$304.3
$335.0
PREMIER RETAIL EBIT (comparable 52-week basis)
$304.3
$335.0
$167.3
$167.3
$167.3
$167.3
FY19
(Pre-Covid)
FY19
(Pre-Covid)
FY19
(Pre-Covid)
FY19
(Pre-Covid)
$187.2
$187.2
$187.2
$187.2
FY20
FY20
FY20
FY20
$304.3
$304.3
$335.0
$335.0
FY21
FY21
FY21
FY22
FY22
FY22
+ 10.1% on PY
FY21
+ 10.1% on PY
FY22
+ 100.2% on “Pre-Covid” FY19
+ 10.1% on PY
+10.1% on PY
+ 100.2% on “Pre-Covid” FY19
+ 100.2% on “Pre-Covid” FY19
Note: Please refer to page 9 of the Directors’ Report for a reconciliation between Premier Retail EBIT (excluding one-off and
+100.2% on “Pre-Covid” FY19
significant items) and statutory reported operating profit before tax for the Retail Segment.
Note: Please refer to page 9 of the Directors’ Report for a reconciliation between Premier Retail EBIT (excluding one-off and
significant items) and statutory reported operating profit before tax for the Retail Segment.
Note: Please refer to page 9 of the Directors’ Report for a reconciliation between Premier Retail EBIT (excluding one-off and
significant items) and statutory reported operating profit before tax for the Retail Segment.
20
20
20
Premier Investments Limited 20
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3D. Group performance and its link to STI
STI payment outcomes are primarily driven by Premier Retail’s EBIT growth.
For the 2022 financial year, the Group provided Mr. Murray with an STI opportunity equivalent to between 37.5% and
75% of his fixed remuneration (pro-rata), subject to the achievement of performance hurdles. The Board determined
that the 2022 financial year should be based on growth of Premier Retail EBIT, achieving growth of 10.1% on FY21. Mr
Murray is therefore entitled to an STI payment of $1,347,945, which has been reflected as part of his remuneration in
section 7. The Board intends to continuously evaluate the most appropriate STI performance hurdles for future years,
ensuring that the STI component rewards the achievement of metrics most appropriate to the growth of the Group in
the relevant year.
For the 2022 financial year, Mr. Bryce’s STI payment of $275,000 was in line with hurdles and qualifiers in relation to
his 2022 financial year STI plan. This includes the achievement of Premier Retail EBIT. This STI payment is reflected
as part of Mr. Bryce’s remuneration for the 2022 financial year in section 7, however payment will occur in FY23.
For the 2021 financial year, Mr. Bryce’s STI payment of $237,446 was in line with hurdles and qualifiers in relation to
his 2021 financial year STI plan. This includes the achievement of Premier Retail EBIT. This STI payment is reflected
as part of Mr. Bryce’s remuneration for the 2021 financial year in section 7, however payment occurred in FY22.
3E. Group performance and its link to LTI
The performance measure which drives LTI vesting is dependent on an absolute test, being a positive Premier TSR
performance and a relative test, being a comparison against the Comparison Peer Group (as defined in section 3F of
this report).
The table below illustrates the outcomes of the TSR testing performed during the 2022 financial year in relation to
KMP. Due to Premier’s strong share price performance over the past three years, where positive TSR meant the
absolute test was met and the award was eligible for testing, the Group’s relative performance was at the 83.9th
percentile against the peer group. This resulted in a vesting outcome of 100%.
Share price at
start of
testing period
Share price at
end of testing
period
Dividends
paid (fully
franked)
TSR
percentage
TSR
percentile
Number of
Performance
Rights tested
for KMP
$18.18
$30.36
$2.07
78.79%
83.9
6,188
Testing Period
1 Oct 2018 to
30 Sept 2021
Mr. Murray’s LTI arrangements were not eligible for testing in the 2022 financial year.
3F. Detail of incentive plans
Short term incentive (“STI”)
The Group operates an annual STI program which is awarded subject to the attainment of clearly defined financial and
non-financial Group and business unit measures.
Who participates?
Executives who have served a minimum of nine months.
How is STI delivered?
Cash.
What is the STI
opportunity?
Executives have an STI opportunity of between 0% and 100% of their fixed
remuneration.
21
21
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Short term incentive (“STI”) (continued)
What are the applicable
financial performance
measures?
STI payments awarded to each executive are explicitly aligned to the key value
drivers of Premier Retail, such that rewards will only be payable when the
following criteria have been met:
budgeted EBIT of Premier Retail has been achieved and an incentive pool has
been created;
the executive receives a performance appraisal on target or above;
the executive’s minimum performance outcomes have been achieved (hurdle);
and
the executive’s key performance indicators (“KPIs”) have been met (qualifiers).
The financial performance measures are chosen with reference to the strategic
objective 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, the STI is not payable.
The qualifier criteria aligns the individual activities and focus of the executive to
creating shareholder value. Each executive is set multiple KPIs covering
financial, non-financial, Group and business unit measures of performance. The
KPIs are quantifiable and weighted according to their value.
The budgeted EBIT for each year is expected to incorporate growth on the
previous year. As such, in a year in which STI payments are made, 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.
The award of an STI is also dependent on the executive achieving individual
aligned non-financial performance indicators, such as:
retention of existing customers through outstanding customer service;
implementation of key growth initiatives;
demonstrated focus on a continuous improvement in safety performance;
and
demonstrated focus on the growth and development of leadership and team
talent to encourage leadership succession.
After the end of the financial year, following consideration of the financial and non-
financial performance indicators, 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 subject to the sole discretion of
the Chairman.
What are the applicable
non-financial
performance
measures?
How is performance
assessed?
22
Premier Investments Limited 22
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”)
Premier’s LTI plan seeks to create shareholder value over the long term by aligning executive remuneration with the
Group’s strategic objectives.
Prior to the 2020 financial year, LTI performance rights were granted to executives annually and eligible to vest three
years from the date of the grant. During the 2020 financial year, certain amendments were made to LTI performance
rights granted to executives, which have been described in more detail below. Refer to section 4 for further details
surrounding Mr Murray’s LTI arrangements.
Who participates?
Executives.
How is LTI delivered?
Performance rights.
How often are grants
made?
One grant over multiple years, as opposed to the pre-2020 practice of annual
grants.
What are the
performance
measures?
LTI rights awarded to each executive are subject to a two-stage performance test -
an absolute and relative test - based on Premier’s TSR. Broadly, 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 requires Premier to achieve a positive TSR over the testing
period. If the TSR is negative over the testing period, then the performance rights
lapse.
If the TSR is positive over the testing period, the relative test is undertaken, which
compares Premier’s TSR with the S&P/ASX200 excluding overseas companies
and companies classified in the Energy or Materials sector (“Comparison Peer
Group”). The Comparison Peer Group represents over 100 companies in the
ASX200, which reflects the Group’s competitors for both capital and talent. The
Comparator Peer Group consists of ASX200 companies, including companies
within the consumer discretionary, consumer staple and information technology
sectors.
Premier’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:
Target
Conversion ratio of rights to shares
available to vest under the TSR
performance condition
Below 50th percentile
50th percentile
Between 50th and 75th percentile
75th percentile and above
0%
50%
Pro Rata
100%
23
23
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”) (continued)
What are the
performance measures
(continued)?
The absolute test (or gateway) ensures that shareholders and executives are
aligned in the goal of absolute wealth creation. The relative test provides alignment
between comparative shareholder return and reward for executives.
The performance rights under each tranche will lapse if the applicable performance
hurdles are not met (unless otherwise determined by the Board in its absolute
discretion).
Premier considers the suitability of the above performance conditions on a regular
basis.
How is performance
assessed?
TSR performance is calculated by an independent external advisor at the end of
each performance period.
Section 8 of this report, titled “Additional disclosures relating to rights and shares”,
provides details of performance rights granted, vested, exercised and lapsed during
the year.
When does the LTI
vest?
For rights issued in the most recent grant (2020), the performance rights will vest in
accordance with the following schedule:
Tranche A: LTI rights will be tested for vesting from 1 May 2020 to 1 October 2022
(being the 1st Vesting Date).
Tranche B: LTI rights will be tested for vesting from 1 May 2020 to 1 October 2023
(being the 2nd Vesting Date).
Tranche C: LTI rights will be tested for vesting from 1 May 2020 to 1 May 2024
(being the 3rd Vesting Date).
Performance rights have no opportunity to be re-tested.
How are grants treated
on termination?
Generally, all rights (whether vested or unvested) lapse and terminate on cessation
of employment.
May participants enter
into hedging
arrangements?
Executives are prohibited from entering into transactions to hedge or limit the
economic risk of the securities allocated to them under the LTI scheme, either
before vesting or after vesting while the securities are held subject to restriction.
Executives are only able to hedge securities that have vested but continue to be
subject to a trading restriction and a seven-year lock, with the prior consent of the
Board.
No employees have any hedging arrangements in place.
Are there restrictions
on disposals?
Once rights have been allocated, disposal of performance shares is subject to
restrictions whereby Board approval is required to sell shares granted within seven
years under the LTI plan.
Do participants receive
distributions or
dividends on unvested
LTI grants?
Participants do not receive distributions or dividends on unvested LTI grants.
24
Premier Investments Limited 24
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
4. REMUNERATION OF CEO PREMIER RETAIL, MR. MURRAY
On 28 April 2021, Premier announced the appointment of Mr. Richard Murray as CEO Premier Retail, commencing 6
September 2021 (“Commencement Date”). The material terms of Mr. Murray’s employment agreement are set out
below and in section 5.
The Board believes that the strong financial returns enjoyed by Premier shareholders stem, in large part, from the
strategic appointment and retention of high calibre key management personnel. The key principles guiding the Board’s
remuneration framework for the CEO Premier Retail are based on a fair and competitive reward for a global, growing
business, whilst aligning the reward to the creation of shareholder value in the short and long-term. The Board
recognises that a mix of fixed and variable compensation encourages retention, growth and a multi-year performance
focus.
Mr. Murray’s remuneration for the 2022 financial year consisted of the following components:
Annual fixed remuneration: $2,000,000 (pro-rated for part-year service)
An STI opportunity of between 37.5% and 75% of fixed remuneration, subject to achievement of performance
hurdles and other conditions (pro-rated for part-year service). Refer to section 3D for outcomes
Once-off equity rights grant (refer below for further information)
LTI performance rights grant (refer below for further information)
Mr. Murray’s once-off long-term equity rights arrangements
At Premier’s 2021 Annual General Meeting of shareholders held on 2 December 2021, shareholders approved the
granting of 200,000 performance rights to Mr Murray, split into 4 equal tranches, as a once-off equity rights grant. The
performance rights were granted at no cost to Mr. Murray. The Board believed that it was appropriate to make a one-
off equity grant to Mr. Murray upon appointment which would allow him to build a meaningful shareholding in the
Company to align his interest to that of Premier’s shareholders, and in recognition of the incentives forfeited at his
previous employer as a result of cessation of employment. The one-off rights under each tranche will lapse if the
applicable service condition for each tranche is not met.
Each tranche of the once-off equity rights will be tested for vesting as follows:
Tranche A – 50,000 performance rights, vesting on 6 September 2022 (1 year after the Commencement Date)
Tranche B – 50,000 performance rights, vesting on 6 September 2023 (2 years after the Commencement Date)
Tranche C – 50,000 performance rights, vesting on 6 September 2024 (3 years after the Commencement Date)
Tranche D – 50,000 performance rights, vesting on 6 September 2025 (4 years after the Commencement Date)
In accordance with AASB 2 Share-based Payment accounting, the cost of the retention rights is recognised over the
testing periods. The retention rights expense recognised in section 7 reflects the accounting value, calculated in
accordance with AASB 2.
Mr. Murray’s LTI arrangements
At Premier’s 2021 Annual General Meeting of shareholders held on 2 December 2021, shareholders also approved the
granting of 600,000 performance rights to Mr Murray, split into 4 equal tranches, as a long-term incentive performance
rights grant. The performance rights were granted at no cost to Mr. Murray. Mr. Murray will not be entitled to any
additional performance rights for the first four years of his employment.
The performance rights granted will vest in four equal tranches subject to the achievement of both an absolute and
relative TSR test. These tests are consistent with those described in Section 3F. No value will be received by Mr.
Murray if the performance rights lapse prior to the vesting date.
25
25
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
4. REMUNERATION OF CEO PREMIER RETAIL, MR. MURRAY (CONTINUED)
Mr. Murray’s LTI arrangements (continued)
Each tranche of performance rights will be tested against the TSR performance measure over different testing periods,
as follows:
Tranche A – 150,000 performance rights, tested for vesting from 27 April 2021 to 1 October 2024
Tranche B – 150,000 performance rights, tested for vesting from 27 April 2021 to 1 October 2025
Tranche C – 150,000 performance rights, tested for vesting from 27 April 2021 to 1 October 2026
Tranche D – 150,000 performance rights, tested for vesting from 27 April 2021 to 1 October 2027
(each date being a “Vesting Date”).
The share price baseline for each tranche was $26.40, which was the volume weighted average share price (“VWAP”)
of the ordinary shares on the ASX for the 30 day period ended 27 April 2021, being the trading date immediately prior
to the public announcement of Mr Murray’s appointment. Premier’s TSR will be calculated based on the percentage
growth achieved from the share price baseline of $26.40 to the share price on the relevant Vesting Date.
In accordance with AASB 2 Share-based Payment accounting, the cost of the performance rights is recognised over
the testing periods. The LTI expense recognised in section 7 reflects the accounting value, calculated in accordance
with AASB 2.
5. EXECUTIVE SERVICE AGREEMENTS
Remuneration and other terms of employment for KMP and other executives are formalised in written service
agreements (with the exception of Ms. Meyer, whose relevant terms of employment are set out below). Material
provisions of the service agreements are set out below:
Start date
Term of
agreement
Review
period
Notice
period
required
from
Premier
Notice
period
required
from
employee
Mr. Murray
6 Sept 2021
Ongoing
Annual
12 months
12 months
Mr. Bryce
13 Dec 2016 Ongoing
Annual
12 months
12 months
Ms. Meyer
4 Feb 2019
Ongoing
Annual
12 months
12 months
6. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS
Determination of fees and maximum aggregate Non-Executive Director Remuneration
The Board seeks to set Non-Executive Director fees at a level which provides the Group with the ability to attract and
retain Non-Executive Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Group’s constitution and the ASX listing rules specify that the Non-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 $1,500,000 per year.
26
Premier Investments Limited 26
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
6. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS (CONTINUED)
The Chairman of the Group, consistent with his past practice, has declined to accept any remuneration for his role as a
director or for his role on any committees.
Fee policy
Non-Executive Director’s fees consist of base fees and committee fees. The payment of committee fees recognises
the additional time commitment required by Non-Executive Directors who serve on Board committees. Effective 1
August 2021, Premier increased Non-Executive Director base fees by $20,000 each.
Non-Executive Directors may be reimbursed for expenses reasonably incurred in attending to the Group’s affairs. Non-
Executive Directors do not participate in any incentive programs. Premier has not established any schemes for
retirement benefits for Non-Executive Directors (other than superannuation).
27
27
Annual Report 2022 %
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.
Annual Report 2022
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP
a) Rights awarded, vested and lapsed during the year:
The table below discloses the number of performance rights granted to KMP as remuneration for the financial
year ended 30 July 2022, as well as the number of rights vested and lapsed during the year:
Description
Terms and conditions
Rights granted
during the year
No.
Grant date Fair value per
right at grant
date
$
Expiry
and
Exercise
date
Rights
vested
No.
2022
Mr. R. Murray
Mr. J. Bryce
Once-off equity rights
Performance rights
Performance rights
200,000
600,000
-
2-Dec-21
2-Dec-21
19-Feb-18
$27.25
$17.40
-
-
-
-
-
-
6,188
No rights lapsed during the financial year ended 30 July 2022.
b) Value of rights awarded, exercised and lapsed during the year:
Description
Value of rights
granted during the
year
$
Value of rights
exercised during the
year
$
Remuneration
consisting of rights
for the year
%
2022
Mr. R. Murray
Once-off equity rights
Performance rights
5,449,500
10,437,000
-
-
Mr. J. Bryce
Performance rights
-
189,682
58%
8%
There were no alterations to the terms and conditions of rights awarded as remuneration since their award date.
The value of rights exercised during the year represent the intrinsic value of the rights based on the share price on
the relevant day of vesting.
c) Shares issued on exercise of rights:
2022
Mr. J. Bryce
Shares issued
No
Paid per share
$
Unpaid per share
$
6,188
-
-
There were no alterations to the terms and conditions of rights awarded as remuneration since their award date.
d) Rights holdings of KMP:
2022
Mr. R. Murray
Mr. J. Bryce
Balance at 31
July 2021
Granted as
remuneration
Rights
exercised
Rights
lapsed
Balance at
30 July 2022
(not exercisable)
-
31,736
800,000
-
-
(6,188)
-
-
800,000
25,548
Rights granted to key management personnel were made in accordance with the provisions of the Group’s
Performance Rights Plan.
30
Premier Investments Limited 30
Directors’ Report continued
DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP (CONTINUED)
e) Number of Ordinary Shares held in Premier Investments Limited by KMP:
2022
NON-EXECUTIVE DIRECTORS
Balance at
31 July 2021
Movement in
shareholdings
Balance at
30 July 2022
Mr. S. Lew *
Mr. T. Antonie
Dr. D.M. Crean
Ms. S. Falzon
Ms. S. Herman
Mr. H.D. Lanzer
Mr. T.L. McCartney
Mr. M.R.I. McLeod
EXECUTIVES
Mr. R. Murray
Mr. J. Bryce
Ms. M. Meyer
TOTAL
4,437,699
5,001
-
-
11,500
27,665
-
28,186
-
8,713
-
4,518,764
-
-
-
-
-
-
-
-
-
6,188
-
6,188
4,437,699
5,001
-
-
11,500
27,665
-
28,186
-
14,901
-
4,524,952
* 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 (2021: 59,804,731) shares in the company. However, Mr. Lew does not
have a relevant interest in the shares in the company held by the Associated Entities.
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
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 $1,479,010 (2021: $2,809,669), including Mr.
Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with
$114,909 (2021: $544,387) remaining outstanding at year-end. The fees paid for these services were at arm's
length and on normal commercial terms.
Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling $388,556 (2021:
$42,158) including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at year-end (2021:
$177,852). The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling
$19,597,245 (2021: $22,990,422) including GST have been made by Group companies from Voyager
Distributing Co. Pty Ltd, with $4,154,029 (2021: $9,843,740) remaining outstanding at year-end. The purchases
were all at arm’s length and on normal commercial terms.
Mr. Lew is a director of Century Plaza Trading Pty. Ltd. Premier and Century Plaza Trading Pty Ltd are parties
to a Services Agreement to which Century Plaza Trading agrees to provide certain administrative services to
the Company to the extent required and requested by Premier. Premier is required to reimburse Century Plaza
Trading for costs it incurs in providing the Company with the services under the Service Agreement. Premier
reimbursed a total of $440,000 (2021: $561,000) costs including GST incurred by Century Plaza Trading Pty
Ltd, with $198,000 (2021: $nil) remaining outstanding at year-end.
31
31
Annual Report 2022 DIRECTORS’ REPORT
(CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
AND THEIR RELATED PARTIES (CONTINUED)
Amounts recognised in the financial report at the reporting date in relation to other transactions:
i) Amounts included within Assets and Liabilities
Current Liabilities
Trade and other payables
ii) Amounts included within Profit or Loss
Expenses
Purchases/ Cost of goods sold
Lease rental expense
Legal fees
Other expenses
Total expenses
2022
$’000
4,467
2022
$’000
18,005
353
1,345
440
20,143
32
Premier Investments Limited 32
Auditor’s Independence Declaration
Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Limit ed
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
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
Auditor’s independence declaration to the directors of Premier
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
Investments Limited
c. No non-audit services provided that contravene any applicable code of professional conduct in
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
relation to the audit.
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
financial year.
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
Ernst & Young
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
financial year.
Ernst & Young
Glenn Carmody
Partner
3 October 2022
Glenn Carmody
Partner
3 October 2022
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
33
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Annual Report 2022 Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021
CONSOLIDATED
2022
$’000
2021
$’000
Revenue from contracts with customers
Other revenue
Total revenue
Other income
Revenue from contracts with customers
Total revenue and other income
Other revenue
Total revenue
Changes in inventories
Other income
Employee expenses
Total revenue and other income
Lease rental (expenses) benefits
Depreciation and impairment of non-current assets
Changes in inventories
Advertising and direct marketing
Employee expenses
Finance costs
Lease rental (expenses) benefits
Other expenses
Depreciation and impairment of non-current assets
Total expenses
Advertising and direct marketing
Share of profit of associate
Profit from continuing operations before income tax
Finance costs
Other expenses
Income tax expense
Total expenses
Net profit for the period attributable to owners
Share of profit of associate
Profit from continuing operations before income tax
Other comprehensive income (loss)
Income tax expense
Items that may be reclassified subsequently to profit or loss
Net (loss) gain on cash flow hedges
Net profit for the period attributable to owners
Foreign currency translation
Other comprehensive income (loss)
Net movement in other comprehensive income (loss) of associates
Income tax on items of other comprehensive loss (income)
Items that may be reclassified subsequently to profit or loss
Net (loss) gain on cash flow hedges
Other comprehensive income which may be reclassified to
profit or loss in subsequent periods, net of tax
Items not to be reclassified subsequently to profit or loss
Net movement in other comprehensive income (loss) of associates
Net fair value (loss) gain on listed equity investment
Income tax on items of other comprehensive loss (income)
Foreign currency translation
Other comprehensive (loss) income not to be reclassified to
profit or loss in subsequent periods, net of tax
Income tax on items of other comprehensive loss (income)
Other comprehensive income which may be reclassified to
profit or loss in subsequent periods, net of tax
Items not to be reclassified subsequently to profit or loss
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Net fair value (loss) gain on listed equity investment
ATTRIBUTABLE TO THE OWNERS
Income tax on items of other comprehensive loss (income)
Other comprehensive (loss) income not to be reclassified to
profit or loss in subsequent periods, net of tax
Earnings per share from continuing operations attributable to
the ordinary equity holders of the parent:
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE OWNERS
- basic, profit for the year (cents per share)
- diluted, profit for the year (cents per share)
Earnings per share from continuing operations attributable to
the ordinary equity holders of the parent:
- basic, profit for the year (cents per share)
NOTES
4
4
NOTES
4
4
4
4
5
5
5
5
5
20
5
6
20
6
24
24
24
6
24
24
24
24
6
6
24
6
7
7
7
7
The accompanying notes form an integral part of this Statement of Comprehensive Income.
- diluted, profit for the year (cents per share)
1,497,520
CONSOLIDATED
1,443,174
3,967
2022
$’000
1,501,487
15,389
1,422
2021
$’000
1,444,596
14,063
1,497,520
1,516,876
1,443,174
1,458,659
3,967
1,501,487
(527,721)
(350,664)
15,389
1,516,876
(21,239)
(166,176)
(527,721)
(22,233)
(350,664)
(8,862)
(21,239)
(54,403)
(166,176)
(1,151,298)
(22,233)
27,085
(8,862)
392,663
(54,403)
(107,489)
1,422
1,444,596
(515,271)
(334,818)
14,063
1,458,659
7,544
(178,258)
(515,271)
(18,510)
(334,818)
(11,574)
7,544
(52,086)
(178,258)
(1,102,973)
(18,510)
23,897
(11,574)
379,583
(52,086)
(107,743)
(1,151,298)
(1,102,973)
285,174
27,085
271,840
23,897
392,663
(107,489)
379,583
(107,743)
(6,166)
285,174
(3,092)
12,568
271,840
802
8,895
1,850
(6,166)
1,487
(3,092)
8,895
(2,673)
1,850
802
1,487
(1,871)
(2,673)
284,790
802
(3,782)
(3,772)
12,568
5,816
802
(3,782)
28,820
(3,772)
(8,646)
5,816
20,174
28,820
297,830
(8,646)
(1,871)
20,174
284,790
179.40
178.16
297,830
171.15
170.39
179.40
178.16
171.15
170.39
34
The accompanying notes form an integral part of this Statement of Comprehensive Income.
Premier Investments Limited 34
34
Statement of Financial Position
STATEMENT OF FINANCIAL POSITION
AS AT 30 JULY 2022 AND 31 JULY 2021
As at 30 July 2022 and 31 July 2021
STATEMENT OF FINANCIAL POSITION
AS AT 30 JULY 2022 AND 31 JULY 2021
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
ASSETS
Inventories
Current assets
Other financial instruments
Cash and cash equivalents
Other current assets
Trade and other receivables
Total current assets
Inventories
Non-current assets
Other financial instruments
Property, plant and equipment
Other current assets
Right-of-use assets
Total current assets
Intangible assets
Non-current assets
Deferred tax assets
Property, plant and equipment
Listed equity investment at fair value
Right-of-use assets
Investment in associate
Intangible assets
Total non-current assets
Deferred tax assets
TOTAL ASSETS
Listed equity investment at fair value
LIABILITIES
Investment in associate
Current liabilities
Total non-current assets
Trade and other payables
TOTAL ASSETS
Income tax payable
LIABILITIES
Interest-bearing liabilities
Current liabilities
Lease liabilities
Trade and other payables
Provisions
Income tax payable
Other financial instruments
Interest-bearing liabilities
Other current liabilities
Lease liabilities
Total current liabilities
Provisions
Non-current liabilities
Other financial instruments
Interest-bearing liabilities
Other current liabilities
Deferred tax liabilities
Total current liabilities
Lease liabilities
Non-current liabilities
Provisions
Interest-bearing liabilities
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Lease liabilities
TOTAL LIABILITIES
Provisions
NET ASSETS
Other non-current liabilities
EQUITY
Total non-current liabilities
Contributed equity
TOTAL LIABILITIES
Reserves
NET ASSETS
Retained earnings
EQUITY
TOTAL EQUITY
Contributed equity
Reserves
Retained earnings
NOTES
21
9
NOTES
10
25
21
11
9
10
25
17
11
12
18
6
17
19
12
20
18
6
19
20
13
22
14
13
15
25
22
16
14
15
25
22
16
6
14
15
22
16
6
14
15
16
23
24
23
24
The accompanying notes form an integral part of this Statement of Financial Position.
TOTAL EQUITY
The accompanying notes form an integral part of this Statement of Financial Position.
35
CONSOLIDATED
2022
$’000
2021
$’000
CONSOLIDATED
471,273
2022
11,026
$’000
224,392
87
471,273
10,299
11,026
717,077
224,392
87
125,313
10,299
195,558
717,077
827,227
51,426
125,313
75,932
195,558
312,201
827,227
1,587,657
51,426
2,304,734
75,932
312,201
1,587,657
143,454
31,974
2,304,734
-
158,290
143,454
44,505
31,974
-
-
16,129
158,290
394,352
44,505
-
69,000
16,129
71,908
394,352
80,991
10,964
69,000
-
71,908
232,863
80,991
627,215
10,964
1,677,519
-
232,863
608,615
(4,287)
627,215
1,073,191
1,677,519
1,677,519
608,615
(4,287)
1,073,191
1,677,519
523,356
2021
9,490
$’000
208,760
7,073
523,356
10,326
9,490
759,005
208,760
7,073
137,798
10,326
167,087
759,005
827,004
55,494
137,798
63,462
167,087
271,372
827,004
1,522,217
55,494
2,281,222
63,462
271,372
1,522,217
164,269
58,218
2,281,222
69,000
159,050
164,269
45,610
58,218
815
69,000
15,120
159,050
512,082
45,610
815
77,834
15,120
68,319
512,082
78,435
11,421
77,834
226
68,319
236,235
78,435
748,317
11,421
1,532,905
226
236,235
608,615
(10,001)
748,317
934,291
1,532,905
1,532,905
608,615
(10,001)
934,291
1,532,905
35
35
Annual Report 2022 Statement of Cash Flows
STATEMENT OF CASH FLOWS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021
CONSOLIDATED
STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021
Receipts from customers (inclusive of GST)
1,661,826
NOTES
2022
$’000
2021
$’000
1,620,975
Payments to suppliers and employees (inclusive of GST)
(1,172,536)
(1,115,786)
Interest received
Borrowing costs paid
Interest on lease liabilities
CASH FLOWS FROM OPERATING ACTIVITIES
Income taxes paid
Receipts from customers (inclusive of GST)
NET CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (inclusive of GST)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Dividends received from listed equity investment
Borrowing costs paid
Dividends received from investment in associate
Interest on lease liabilities
Payment for trademarks
Income taxes paid
Purchase of investments
NET CASH FLOWS FROM OPERATING ACTIVITIES
Payment for property, plant and equipment
CASH FLOWS FROM INVESTING ACTIVITIES
NET CASH FLOWS USED IN INVESTING ACTIVITIES
Dividends received from listed equity investment
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends received from investment in associate
Equity dividends paid
Payment for trademarks
Payment of lease liabilities
Purchase of investments
Repayment of borrowings
Payment for property, plant and equipment
NET CASH FLOWS USED IN FINANCING ACTIVITIES
NET CASH FLOWS USED IN INVESTING ACTIVITIES
NET (DECREASE) INCREASE IN CASH HELD
CASH FLOWS FROM FINANCING ACTIVITIES
Equity dividends paid
Cash at the beginning of the financial year
Payment of lease liabilities
Net foreign exchange difference
Repayment of borrowings
CASH AT THE END OF THE FINANCIAL YEAR
NET CASH FLOWS USED IN FINANCING ACTIVITIES
NET (DECREASE) INCREASE IN CASH HELD
Cash at the beginning of the financial year
Net foreign exchange difference
NOTES
21(b)
21(b)
21(a)
CASH AT THE END OF THE FINANCIAL YEAR
21(a)
732
CONSOLIDATED
1,313
(3,193)
2022
$’000
(5,605)
(125,747)
1,661,826
355,477
(1,172,536)
(4,632)
2021
$’000
(6,676)
(111,674)
1,620,975
383,520
(1,115,786)
732
2,449
(3,193)
10,402
(5,605)
(223)
(125,747)
(15,143)
355,477
(8,651)
(11,166)
2,449
10,402
(146,274)
(223)
(169,573)
(15,143)
(77,834)
(8,651)
(393,681)
(11,166)
(49,370)
(146,274)
523,356
(169,573)
(2,713)
(77,834)
471,273
(393,681)
(49,370)
523,356
(2,713)
471,273
1,313
-
(4,632)
12,227
(6,676)
(116)
(111,674)
(16,510)
383,520
(2,917)
(7,316)
-
12,227
(165,171)
(116)
(137,180)
(16,510)
-
(2,917)
(302,351)
(7,316)
73,853
(165,171)
448,832
(137,180)
671
-
523,356
(302,351)
73,853
448,832
671
523,356
The accompanying notes form an integral part of this Statement of Cash Flows.
The accompanying notes form an integral part of this Statement of Cash Flows.
36
Premier Investments Limited 36
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37
Annual Report 2022
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021
1 GENERAL INFORMATION
The financial report contains the consolidated financial statements of the consolidated entity, comprising
Premier Investments Limited (the ‘parent entity’) and its wholly owned subsidiaries (‘the Group’) for the
52 weeks ended 30 July 2022. The financial report was authorised for issue by the Directors on 3 October 2022.
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’ Report.
The notes to the financial statements have been organised into the following sections:
(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’s assets and liabilities used to
generate the Group’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’s capital structure and
summarises the Group’s Risk Management policies.
(vi) Group structure: Contains information in relation to the Group’s structure and related parties.
(vii) Other disclosures: Summarises other disclosures which are required 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 1 August 2021 to 30 July 2022.
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, which contain detailed accounting policy notes,
should be read in conjunction with the below Group accounting policies.
(a) BASIS OF FINANCIAL REPORT PREPARATION
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements 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, except for other financial instruments and listed equity investments at fair value, 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 ($’000), unless otherwise stated, as the Company is of a kind referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016.
(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).
38
Premier Investments Limited 38
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED)
(c) BASIS OF CONSOLIDATION
The consolidated financial statements are those of the consolidated entity, comprising Premier
Investments Limited and its wholly owned subsidiaries as at the end of each financial year. A list of the
Group’s subsidiaries is included in note 27.
Subsidiaries are entities that are controlled by the Group. Control is achieved when the Group has:
-
-
-
Power over the investee;
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
All intra-group assets and liabilities, equity, income, 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, and do not impact the recorded cost of the investment.
The Group re-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) COMPARATIVE AMOUNTS
The current reporting period, 1 August 2021 to 30 July 2022, represents 52 weeks and the comparative
reporting period is from 26 July 2020 to 31 July 2021 which represents 53 weeks. From time to time,
management may change prior year comparatives to reflect classifications applied in the current year.
(e) SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Group’s consolidated financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts in the financial statements.
Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements and estimates on historical
experience and on other various factors it believes to be reasonable under the circumstances, 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 judgements, estimates
and assumptions are required. These key judgements, 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.
(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, or to realise the assets and settle the liabilities
simultaneously.
39
39
Annual Report 2022 NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
2 OTHER SIGNIFICANT GROUP ACCOUNTING POLICIES (CONTINUED)
(g) CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Group presents assets and liabilities in the statement of financial position based on current versus non-
current classification. An asset is current when it is:
-
-
Expected to be realised or intended to be sold in the normal operating cycle, or primarily held for the
purpose of trading, or is expected to be realised within twelve months after the reporting period, or;
Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current. A liability is current when it is:
-
-
Expected to be settled in the normal operating cycle, or primarily held for the purpose of trading, or is
due to be settled within twelve months after the reporting period, or;
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-current. Deferred tax assets and liabilities are classified as non-
current.
(h) FOREIGN CURRENCY TRANSLATION
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). Both the
functional and presentation currency of the parent entity 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-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 the parent entity 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 equity.
(i) GOODS AND SERVICES TAX (GST), INCLUDING OTHER VALUE-ADDED TAXES
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except:
-
-
When the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, 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, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
40
Premier Investments Limited 40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
Notes to the Financial Statements
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)
(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. There are no new and amended
Accounting Standards and Interpretations that had a material impact on the consolidated financial report of
the Group.
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, but are not yet effective, have not
been early adopted by the Group for the reporting period ended 30 July 2022. The Group does not anticipate
that the below amended standards and interpretations will have a material impact on the Group:
- Amendments to AASB 101: Classification of Liabilities as Current or Non-current;
- Reference to the Conceptual Framework – Amendments to AASB 3;
- Property, Plant and Equipment: Proceeds before Intended Use – Amendments to AASB 116; and
- Onerous Contracts – Costs of Fulfilling a Contract – Amendments to AASB 137
- Definition of Accounting Estimates – Amendments to AASB 108
- Disclosure of Material Accounting Policies – Amendments to AASB 101
41
41
Annual Report 2022 NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
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, including revenues and expenses that relate to transactions with any
of the Group’s other components. The operating segments are identified by management based on the
nature of the business conducted, 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, 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 investment segment represents investments in securities for both long and short term gains, 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’s effective
income tax rate.
It is the Group’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 acquire property, plant and
equipment, and intangible assets other than goodwill.
The table on the following page presents revenue and profit information for operating segments for the
periods ended 30 July 2022 and 31 July 2021.
42
Premier Investments Limited 42
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)
GROUP PERFORMANCE
3 OPERATING SEGMENTS (CONTINUED)
(A) OPERATING SEGMENTS
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2022
$’000
2021
$’000
2022
$’000
2021
$’000
2022
$’000
2021
$’000
2022
$’000
2021
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,497,520 1,443,174
-
-
Interest revenue
Other revenue
Other income
Total revenue and other
321
160
138
1,000
756
392
240
295,986
165,034
(293,500)
(165,000)
2,646
2,646
274
274
-
-
- 1,497,520 1,443,174
1,497,520 1,443,174
-
1,321
1,321
1,148
1,148
4,946
15,251
9,117
-
-
15,389
15,389
14,063
14,063
income
1,498,139 1,448,752
312,237
174,907
(293,500)
(165,000) 1,516,876 1,458,659
Total revenue per the statement of comprehensive income
1,516,876 1,458,659
RESULTS
Depreciation
Depreciation – right-of-
use asset
Interest expense
Share of profit of
associate
Profit before income
tax expense
Income tax expense
19,431
24,452
1,505
1,505
-
-
20,936
25,957
147,817
155,552
-
-
(2,577)
(3,251)
145,240
152,301
7,169
8,757
1,878
2,931
(185)
(114)
8,862
11,574
-
-
27,085
23,897
-
-
27,085
23,897
353,192
352,112
332,885
192,497
(293,414)
(165,026) 392,663
379,583
Net profit after tax per the statement of comprehensive income
(107,489)
(107,743)
285,174
271,840
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2022
$’000
2021
$’000
2022
$’000
2021
$’000
2022
$’000
2021
$’000
2022
$’000
2021
$’000
ASSETS AND LIABILITIES
Segment assets
841,300 1,006,557
1,583,413 1,420,029
(119,979)
(145,364) 2,304,734 2,281,222
Segment liabilities
500,476
622,906
163,881
187,845
(37,142)
(62,434)
627,215
748,317
Capital expenditure
8,797
8,579
-
-
-
-
8,797
8,579
43
43
Annual Report 2022 NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
3 OPERATING SEGMENTS (CONTINUED)
(B) GEOGRAPHIC AREAS OF OPERATION
AUSTRALIA NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2022
$’000
2022
$’000
2022
$’000
2022
$’000
2022
$’000
2022
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,196,623
147,379
49,954
103,564
-
1,497,520
Other revenue and income
37,989
4
139
30
(18,806)
19,356
Total revenue and other
income
1,234,612
147,383
50,093
103,594
(18,806)
1,516,876
Segment non-current assets
1,478,405
26,180
15,102
28,270
39,700
1,587,657
Capital expenditure
7,733
862
159
43
-
8,797
AUSTRALIA NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2021
$’000
2021
$’000
2021
$’000
2021
$’000
2021
$’000
2021
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,171,833
160,179
34,152
77,010
-
1,443,174
Other revenue and income
18,170
3
3,962
4,622
(11,272)
15,485
Total revenue and other
income
1,190,003
160,182
38,114
81,632
(11,272)
1,458,659
Segment non-current assets
1,403,407
30,990
13,483
34,512
39,815
1,522,217
Capital expenditure
7,594
878
25
82
-
8,579
44
Premier Investments Limited 44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
4 REVENUE AND OTHER INCOME
REVENUE
CONSOLIDATED
2022
$’000
2021
$’000
Revenue from contracts with customers
1,497,520
1,443,174
(Disaggregated revenue from contracts with customers is
presented in note 3B, Operating Segments)
OTHER REVENUE
Dividends received from listed equity investment
Sundry revenue
Interest received
TOTAL OTHER REVENUE
TOTAL REVENUE
OTHER INCOME
Gain on investment in associate resulting from share issue
United Kingdom COVID-19 lockdown grants
Other
TOTAL OTHER INCOME
TOTAL REVENUE AND OTHER INCOME
REVENUE RECOGNITION ACCOUNTING POLICY
2,449
197
1,321
3,967
-
274
1,148
1,422
1,501,487
1,444,596
15,251
-
138
15,389
1,516,876
9,117
4,622
324
14,063
1,458,659
Revenue recognition occurs at the point in time when control of the goods is transferred to the customer, generally
at the point of sale or on delivery of the goods.
The Group estimates the value of expected customer returns that will arise as a result of the Group’s returns policy,
which entitles the customer to a refund of returned unused products within the specified timeframe for the respective
brands. At the same time, the Group recognises a right of return asset, being the former carrying amount of the
inventory, less any expected costs to recover the goods the Group expects to be returned by customers as a result
of the returns policy.
The Group operates certain loyalty programmes, which allow customers to accumulate points when products are
purchased, and which can be redeemed for free or discounted product once a minimum number of points have
been accumulated. Loyalty points give rise to a separate performance obligation providing a material right to the
customer, therefore a portion of the transaction price is allocated to the loyalty programme based on the relative
stand-alone selling prices.
The Group recognises a contract liability upon the sale of gift cards and recognises revenue when the customer
redeems the gift card, and the Group fulfils its performance obligation. The Group also recognises revenue on the
portion of unredeemed gift cards for which redemption is unlikely, known as gift card breakage. Gift card breakage
is estimated and recognised as revenue in proportion to the pattern of rights exercised by customers. On expiry of
the gift card, any unused funds are recognised in full as breakage.
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, 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.
45
45
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
5 EXPENSES
LEASE RENTAL EXPENSES (BENEFITS)
Variable lease expenses
Other lease expenses
COVID-19 related rent concessions
Other Australia and New Zealand holdover rent concessions
Other
NET LEASE RENTAL EXPENSES (BENEFITS)
DEPRECIATION AND IMPAIRMENT OF NON-CURRENT
ASSETS
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
TOTAL DEPRECIATION AND IMPAIRMENT OF NON-
CURRENT ASSETS
FINANCE COSTS
Interest on lease liabilities
Interest on bank loans and overdraft
TOTAL FINANCE COSTS
OTHER EXPENSES INCLUDE:
CONSOLIDATED
NOTES
2022
$’000
2021
$’000
11,723
23,519
(10,538)
(3,465)
-
21,239
7,501
15,986
(19,521)
(9,960)
(1,550)
(7,544)
20,936
145,240
25,957
152,301
166,176
178,258
5,605
3,257
8,862
6,676
4,898
11,574
17
12
14
Net loss on disposal of property, plant and equipment
201
5
46
Premier Investments Limited 46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX
The major components of income tax expense are:
(a)
INCOME TAX RECOGNISED IN PROFIT OR LOSS
CURRENT INCOME TAX
Current income tax charge
Adjustment in respect of current income tax of previous years
DEFERRED INCOME TAX
Relating to origination and reversal of temporary differences
INCOME TAX EXPENSE REPORTED IN THE STATEMENT
OF COMPREHENSIVE INCOME
(b) STATEMENT OF CHANGES IN EQUITY
Deferred income tax related to items credited directly to equity:
Net deferred income tax on movements on cash-flow hedges
Net deferred income tax on unrealised (loss) gain on listed
equity investment at fair value
INCOME TAX (BENEFIT) EXPENSE REPORTED IN EQUITY
(c) RECONCILIATION BETWEEN TAX EXPENSE AND THE
ACCOUNTING PROFIT BEFORE TAX MULTIPLIED BY THE
GROUP’S APPLICABLE AUSTRALIAN INCOME TAX RATE
CONSOLIDATED
2022
$’000
2021
$’000
97,603
(1,757)
11,643
106,275
475
993
107,489
107,743
(1,850)
(802)
(2,652)
3,772
8,646
12,418
Accounting profit before income tax
392,663
379,583
At the Parent Entity’s statutory income tax rate of
30% (2021: 30%)
Adjustment 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
Impact of future changes in tax rates
Other
117,799
(1,757)
1,852
(3,306)
(4,927)
(2,115)
(57)
113,875
475
697
(1,345)
(5,791)
-
(168)
AGGREGATE INCOME TAX EXPENSE
107,489
107,743
47
47
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
(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 financial instruments
Inventory provisions
Lease arrangements
Employee provisions
Property, plant and equipment
Other provisions
Other
CONSOLIDATED
2022
$’000
2021
$’000
195
(50,227)
(26)
571
5,648
10,415
4,393
4,455
4,094
192
(42,516)
(1,877)
1,748
8,153
9,400
3,546
2,769
5,760
NET DEFERRED TAX LIABILITIES
(20,482)
(12,825)
REFLECTED IN THE STATEMENT OF FINANCIAL
POSITION AS FOLLOWS:
Deferred tax assets
Deferred tax liabilities
NET DEFERRED TAX LIABILITIES
INCOME TAX ACCOUNTING POLICY
51,426
(71,908)
(20,482)
55,494
(68,319)
(12,825)
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, unless it relates to
items that have been recognised in equity as part of other comprehensive income or directly in equity. In this
instance, the related tax expense is also recognised in other comprehensive income or directly in equity.
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 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.
48
Premier Investments Limited 48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
INCOME TAX ACCOUNTING POLICY (CONTINUED)
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, based on tax rates (and tax laws) that have been enacted or
substantially enacted at the reporting date.
Deferred income tax liabilities are recognised for all temporary differences except:
- 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 or the initial recognition of a lease and, at the time of the
transaction, affects neither the accounting profit nor the taxable profit or loss: and
- When the taxable temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, 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 deductible temporary differences, except for the following:
- When the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is
not a business combination or the initial recognition of a lease and, at the time of the transaction affects
neither the accounting profit nor taxable profit;
- When the deductible temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, 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, 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, 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 deductible temporary differences as management considers that it is
probable that future taxable profits will be available to utilise those temporary differences.
49
49
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.
Assumptions about the generation of future taxable profits depend on management's estimates of future cash
flows. These depend on estimates of future sales volumes, operating costs, capital expenditure, dividends and
other capital management transactions. Judgements are also required about the application of income tax
legislation.
These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that
changes in circumstances will alter expectations, 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, some or all of the carrying amounts of
recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or
charge to profit or loss in the statement of comprehensive income.
CONSOLIDATED
2022
$’000
2021
$’000
7 EARNINGS PER SHARE
The following reflects the income and share data used in the
calculation of basic and diluted earnings per share:
Net profit for the period
285,174
271,840
Weighted average number of ordinary shares used in
calculating:
- basic earnings per share
- diluted earnings per share
NUMBER OF
SHARES
‘000
NUMBER OF
SHARES
‘000
158,958
160,070
158,829
159,538
There have been no other conversions to, calls of, 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, adjusted for costs of
servicing equity, the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses, and other non-discretionary changes in revenue or expenses during the
period that would result from the dilution of potential ordinary shares, divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares.
50
Premier Investments Limited 50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP PERFORMANCE
8 A) DIVIDENDS
DIVIDENDS APPROVED AND/ OR PAID
Approved and paid during the year:
Interim franked dividends:
2022: 46 cents per share
2021: 34 cents per share
Approved and paid during the year:
Final franked dividends:
2021: 46 cents per share (2020: 36 cents)
TOTAL FOR THE YEAR
Note: The 2020 interim dividend of $53,966,000 was paid on
30 September 2020, in the 2021 financial year.
DIVIDENDS APPROVED AND NOT RECOGNISED AS A
LIABILITY:
Final franked dividend for 2022:
54 cents per share (2021: 46 cents)
Special franked dividend for 2022:
25 cents per share
CONSOLIDATED
2022
$’000
2021
$’000
73,137
-
-
54,014
73,137
146,274
57,191
111,205
85,856
73,137
39,748
-
The Directors of Premier Investments Limited approved a final dividend in respect of the 2022 financial year.
The total amount of the final dividend is $85,856,000 (2021: $73,137,000) which represents a fully franked
dividend of 54 cents per share (2021: 46 cents per share). In addition, the Directors of Premier Investments
Limited approved a special dividend in respect of the 2022 financial year. The total amount of the special
dividend is $39,748,000 (2021: $nil) which represents a fully franked dividend of 25 cents per share (2021: nil
cents per share).
B) FRANKING CREDIT BALANCE
The amount of franking credits available for the
subsequent financial year are:
franking account balance as at the end of the financial
year at 30% (2021: 30%)
franking credits that will arise from the payment of
income tax payable as at the end of the financial year
franking debits that will be used on the payment of
dividends subsequent to the end of the financial year
TOTAL FRANKING CREDIT BALANCE
CONSOLIDATED
2022
$’000
2021
$’000
289,705
231,271
29,631
56,181
(53,830)
265,506
(31,319)
256,133
The tax rate at which paid dividends have been franked is 30% (2021: 30%). Dividends proposed will be
franked at the rate of 30% (2021: 30%).
51
51
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2022
$’000
2021
$’000
9
TRADE AND OTHER RECEIVABLES (CURRENT)
Sundry debtors
TOTAL CURRENT TRADE AND OTHER RECEIVABLES
11,026
11,026
9,490
9,490
(a) Impairment losses
Receivables are non-interest-bearing and are generally on 30 to 60 day terms. An allowance for credit losses is
recognised based on the expected credit loss from the time the financial asset is initially recognised. Bad debts
are written off when identified. No material allowance for credit losses has been recognised by the Group during
the financial year ended 30 July 2022 (2021: $nil). During the year, no material bad debt expense (2021: $nil)
was recognised. It is expected that sundry debtor balances will be received when due.
(b) Fair value
Due to the short-term nature of these receivables, their carrying value is considered to approximate their fair
value.
TRADE AND OTHER RECEIVABLES ACCOUNTING POLICY
Trade and other receivables are classified as non-derivative financial assets and are recognised initially at
their transaction value. After initial measurement, these assets are measured at amortised cost, less any
allowance for any expected credit losses.
10
INVENTORIES
Finished goods
TOTAL INVENTORIES AT COST
INVENTORIES ACCOUNTING POLICY
CONSOLIDATED
2022
$’000
2021
$’000
224,392
224,392
208,760
208,760
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and conditions are accounted for as follows:
- Finished goods and work-in-progress - purchase cost plus a proportion of the purchasing department, freight,
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, less the estimated direct
costs necessary to make the sale.
52
Premier Investments Limited 52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
11 OTHER ASSETS (CURRENT)
Deposits and prepayments
TOTAL OTHER CURRENT ASSETS
12 RIGHT-OF-USE ASSETS
Opening balance
Additions / Remeasurements
Depreciation expense
Exchange differences
TOTAL RIGHT-OF-USE ASSETS
CONSOLIDATED
2022
$’000
2021
$’000
10,299
10,299
10,326
10,326
167,087
176,314
(145,240)
(2,603)
195,558
231,790
86,621
(152,301)
977
167,087
RIGHT-OF-USE ASSETS ACCOUNTING POLICY
The Group recognises right-of-use assets at the commencement date of the lease, being the date that the
underlying asset is available for use. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date of the lease less any lease incentives received and an
estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions
of the lease, unless those costs are incurred to produce inventories. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use
assets are subject to impairment.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Impairment of right-of-use assets
The carrying values of the right-of-use assets are reviewed for impairment annually. If an indication of
impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount, the
assets or cash-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-in-use. Value-in-use refers to an asset’s value based
on the expected future cash flows arising from its continued use, discounted to present value using a post-tax
discount rate that reflect current market assessments of the risks specific to the CGU.
The recoverable amount was estimated on an individual store basis, as this has been identified as the CGU of
the Group’s retail segment.
No impairment loss was recognised in relation to the Group’s right-of-use assets during the current financial
year (2021: $nil).
53
53
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
13 TRADE AND OTHER PAYABLES (CURRENT)
Trade creditors
Other creditors and accruals
TOTAL CURRENT TRADE AND OTHER PAYABLES
(a) Fair values
CONSOLIDATED
2022
$’000
2021
$’000
64,873
78,581
143,454
76,231
88,038
164,269
Due to the short-term nature of these payables, 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, 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.
14 LEASE LIABILITIES
Opening balance
Additions / Remeasurements
Interest expense
Payments
COVID-19 related rent concessions
Other Australia and New Zealand holdover rent concessions
Other
Exchange rate differences
TOTAL LEASE LIABILITIES
COMPRISING OF:
Current lease liability
Non-current lease liability
TOTAL LEASE LIABILITIES
CONSOLIDATED
2022
$’000
2021
$’000
237,485
182,869
5,605
(169,573)
(10,538)
(3,465)
-
(3,102)
239,281
158,290
80,991
239,281
303,889
87,569
6,676
(137,180)
(19,521)
(4,527)
(1,550)
2,129
237,485
159,050
78,435
237,485
LEASE LIABILITIES ACCOUNTING POLICY
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate initially measured using the index or rate as at the commencement date, and amount expected
to be paid under residual value guarantees. The variable lease payments which are not included in the
measurement of the lease liability are recognised as an expense in the period in which the event or condition
that triggers the payment occurs.
54
Premier Investments Limited 54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
14 LEASE LIABILITIES (CONTINUED)
LEASE LIABILITIES ACCOUNTING POLICY (CONTINUED)
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date, if the rate implicit in the lease cannot be readily determined, using inputs such as
government bond rates for the lease period and the Group’s expected borrowing margin. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the in-substance fixed lease payments, a change in the
assessment to purchase the underlying asset, or a change in the amounts expected to be payable under a
residual value guarantee.
The Group applies the low-value assets recognition exemption to leases of certain office equipment that are
considered of low value. Lease payments on low-value assets are recognised as a lease expense on a straight-
line basis over the lease term.
Significant judgement in determining the lease term
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
After the lease commencement date, the Group reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option
to renew.
Where a lease enters holdover, the Group estimates the expected lease term based on reasonably certain
information available as at balance date. Any adjustments required due to changes in estimates or entering into
a new lease agreement are recognised in the period in which the adjustments are made.
Significant judgement in determining the incremental borrowing rate
The Group has applied judgement to determine the incremental borrowing rate, which affects the amount of
lease liabilities and right-of-use assets recognised. The Group assesses and applies the incremental borrowing
rate on a lease by lease basis at the relevant lease commencement date, based on the term of the lease. The
incremental borrowing rate is determined using inputs including the Group’s expected lending facility margin
and applicable government bond rates at the time of entering into the lease, which reflects the expected lease
term.
COVID-19 related rent concessions
The Group has adopted the practical expedient issued by the Australian Accounting Standards Board whereby
it has not accounted for rent concessions which are a direct consequence of the COVID-19 pandemic as lease
modifications. Instead, the Group recognised these concessions in the statement of comprehensive income for
the year ended 30 July 2022 and 31 July 2021 as a variable amount as and when incurred.
The practical expedient may be applied where the following conditions apply:
The changed lease payments were substantially the same or less than the payments prior to the rent
concession;
The reductions only affect payments which fall due before 30 June 2022; and
There has been no substantive change in the terms and conditions of the lease.
55
-
-
-
55
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
15 PROVISIONS
CURRENT
Employee entitlements – Annual Leave
Employee entitlements – Long Service Leave
Provision for make-good in relation to leased premises
Refund liability
Other provisions
TOTAL CURRENT PROVISIONS
NON-CURRENT
Employee entitlements – Long Service Leave
Provision for make-good in relation to leased premises
Other provisions
TOTAL NON-CURRENT PROVISIONS
MOVEMENT IN PROVISIONS
Provision for make-good in relation to leased premises
Opening balance
Charged to profit or loss
Utilised during the period
CLOSING BALANCE (CURRENT AND NON-CURRENT)
CONSOLIDATED
2022
$’000
2021
$’000
19,063
11,151
11,576
2,088
627
44,505
2,378
4,541
4,045
10,964
17,085
812
(1,780)
16,117
16,359
10,363
12,490
2,088
4,310
45,610
2,469
4,595
4,357
11,421
17,855
-
(770)
17,085
PROVISIONS ACCOUNTING POLICIES
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time-value of money is material, provisions are determined by discounting the expected future
cash flows at a pre-tax discount rate that reflects the risks specific to the liability and the time value of money.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES
Current annual leave
The provisions for employee entitlements to wages, 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, resulting from employees’ services provided up to the reporting date. The provisions have been calculated at
nominal amounts based on current wage and salary rates, and include related on-costs.
56
Premier Investments Limited 56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OPERATING ASSETS AND LIABILITIES
15 PROVISIONS (CONTINUED)
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES (CONTINUED)
Long service leave and non-current annual leave
The liability for long service leave and non-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, experience of employee
departures, and periods of service. Related on-costs have also been included in the liability.
Expected future payments are discounted using market yields at the reporting date on high quality 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’s superannuation plan on retirement,
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.
PROVISION FOR MAKE-GOOD IN RELATION TO STORE PLANT AND EQUIPMENT ACCOUNTING POLICY
A provision has been recognised in relation to make-good costs arising from contractual obligations in lease
agreements, in regions where the Group has such a present obligation. The provision recognised represents
the present value of the estimated expenditure required to remove these store plant and equipment.
16 OTHER LIABILITIES
CURRENT
Deferred income
TOTAL CURRENT
NON-CURRENT
Deferred income
TOTAL NON-CURRENT
DEFERRED INCOME ACCOUNTING POLICY
Unredeemed gift cards are expected to be largely redeemed within a year.
CONSOLIDATED
2022
$’000
2021
$’000
16,129
16,129
-
-
15,120
15,120
226
226
57
57
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT
CONSOLIDATED
LAND
$’000
BUILDINGS
$’000
PLANT AND
EQUIPMENT
$’000
CAPITAL WORKS
IN PROGRESS
$’000
TOTAL
$’000
21,953
59,577
453,571
8,024
543,125
-
(8,875)
(408,937)
-
(417,812)
21,953
50,702
44,634
8,024
125,313
21,953
52,207
58,885
2,462
2,890
-
-
(1,505)
(19,431)
-
-
(201)
(145)
-
-
-
-
-
4,753
6,335
(2,890)
-
-
-
137,798
8,797
-
(20,936)
(201)
(145)
21,953
50,702
44,460
8,198
125,313
21,953
59,577
463,737
4,753
550,020
-
21,953
(7,370)
52,207
(404,852)
58,885
-
(412,222)
4,753
137,798
21,953
48,855
72,866
11,460
155,134
-
-
-
-
-
-
4,857
(1,505)
-
-
3,285
7,074
(24,452)
(5)
117
5,294
(11,931)
-
-
(70)
8,579
-
(25,957)
(5)
47
21,953
52,207
58,885
4,753
137,798
AT 30 JULY 2022
Cost
Accumulated depreciation and
impairment
NET CARRYING AMOUNT
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
Additions
Transfers between classes
Depreciation
Disposals
Exchange differences
Carrying amount at end of the
financial year
AT 31 JULY 2021
Cost
Accumulated depreciation and
impairment
NET CARRYING AMOUNT
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
Additions
Transfers between classes
Depreciation
Disposals
Exchange differences
Carrying amount at end of the
financial year
LAND AND BUILDINGS
The land and buildings with a combined carrying amount of $72,655,000 (2021: $74,160,000) have been
pledged to secure certain interest-bearing borrowings of the Group (refer to note 22).
58
Premier Investments Limited 58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY
Property, plant and equipment is stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Depreciation is calculated on a systematic basis over the estimated useful
life of the asset as follows:
-
-
-
Buildings
40 years
Store plant and equipment
3 to 10 years
Other plant and equipment
2 to 20 years
Freehold land is not depreciated.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Estimation of useful lives of assets
The estimation of useful lives of assets has been based on historical experience as well as manufacturers’
warranties (for plant and equipment). In addition, the condition of the assets is assessed at least once per
year and considered against the remaining useful life. Adjustments to useful lives are made when
considered necessary and are accounted for as a change in accounting estimate, in accordance with AASB
108 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation methods used reflect
the pattern in which the asset’s future economic benefits are expected to be consumed and are reviewed at
least at each financial year-end. Adjustments to depreciation methods are made when considered
necessary and are accounted for as a change in accounting estimate, in accordance with AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors.
Impairment testing of Property, Plant and Equipment and key accounting estimates and assumptions
The carrying values of property, plant and equipment are reviewed for impairment annually. If an indication
of impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount,
the assets or cash-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-in-use. Value-in-use refers to an asset’s
value based on the estimated future cash flows arising from its continued use, discounted to present value
using a post-tax discount rate that reflect current market assessments of the risks specific to the CGU.
These value-in-use calculations use cash flow projections based on financial estimates covering a period of
up to five years, discounting using a post-tax discount rate of 10.5% (2021: 10.5%).
If an asset does not generate largely independent cash inflows, the recoverable amount is determined for
the CGU to which the asset belongs. The recoverable amount was estimated for certain items of plant and
equipment on an individual store basis, as this has been identified as the CGU of the Group’s retail
segment.
No impairment loss was recognised during the current financial year (2021: $nil).
59
59
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES
RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND END OF THE PERIOD
YEAR ENDED 30 JULY 2022
As at 1 August 2021 net of accumulated
amortisation and impairment
Trademark registrations
As at 30 July 2022 net of accumulated
amortisation and impairment
AS AT 30 JULY 2022
Cost (gross carrying amount)
Accumulated amortisation and impairment
NET CARRYING AMOUNT
YEAR ENDED 31 JULY 2021
As at 26 July 2020 net of accumulated
amortisation and impairment
Trademark registrations
As at 31 July 2021 net of accumulated
amortisation and impairment
AS AT 31 JULY 2021
Cost (gross carrying amount)
Accumulated amortisation and impairment
NET CARRYING AMOUNT
CONSOLIDATED
GOODWILL
$’000
BRAND NAMES
$’000
TRADEMARKS
$’000
TOTAL
$’000
477,085
-
346,179
-
3,740
223
827,004
223
477,085
346,179
3,963
827,227
477,085
-
477,085
376,179
(30,000)
346,179
3,963
-
3,963
857,227
(30,000)
827,227
477,085
346,179
-
-
3,624
116
826,888
116
477,085
346,179
3,740
827,004
477,085
-
477,085
376,179
(30,000)
346,179
3,740
-
3,740
857,004
(30,000)
827,004
60
Premier Investments Limited 60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
GOODWILL ACCOUNTING POLICY
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the
business combination over the Group’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any
accumulated impairment losses. Goodwill is not amortised but is subject to impairment testing.
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. Goodwill acquired in a business combination is, from the
date of acquisition, allocated to each of the Group’s cash-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, an impairment loss is
recognised. Impairment losses recognised for goodwill are not subsequently reversed.
OTHER INTANGIBLE ASSETS (excluding goodwill) ACCOUNTING POLICY
Intangible assets acquired separately are initially measured at cost. Intangible assets acquired in a business
combination are initially recognised at fair value. Following initial recognition, 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’s intangible assets are as follows:
Useful life assessment?
Brands
Trademarks & Licences
Indefinite
Indefinite
Method used?
Not amortised or revalued
Not amortised or revalued
Internally generated or
acquired?
Acquired
Acquired
Impairment test/recoverable
amount testing
Annually or more frequently if
there are indicators of impairment
Annually or more frequently if
there are indicators of impairment
Brand names, trademarks and licences are assessed as having an indefinite useful life, as this reflects
management’s intention to continue to operate these to generate net cash inflows into the foreseeable
future. These assets are not amortised but are subject to impairment testing.
Intangible assets are tested for impairment where an indicator of impairment exists, or in the case of
indefinite life intangibles, impairment is tested annually and where an indicator of impairment exists.
Where the carrying amount of an intangible asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. The recoverable amount is the higher of the asset’s
value-in-use and fair value less costs of disposal. Value-in use refers to an asset’s value based on the
expected future cash flows arising from its continued use, discounted to present value using a post-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, the recoverable amount is determined for
the CGU to which the asset belongs.
61
61
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
The recoverable amounts of CGUs are determined based on the higher of value-in-use calculations or fair
value less costs of disposal. These calculations depend on management estimates and assumptions. In
particular, significant estimates and judgements are made in relation to the key assumptions used in
forecasting future cash flows and the expected growth rates used in these cash flow projections, 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 acquired business and
also synergies expected to be achieved as a result of combining Just Group Limited with the rest of the
Group. Accordingly, goodwill is assessed at a retail segment level, which is also an operating segment for the
Group.
The recoverable amount of the CGU has been determined based upon a range of value-in-use calculations,
using estimated cash flow scenarios for a period of five years plus a terminal value.
The value-in-use calculations have been determined based on scenarios of cash flows using financial
estimates for the 2023 financial year (FY23) and are projected for a further four years (FY24 – FY27) based
on estimated growth rates. As part of the annual impairment test for goodwill, management assesses the
reasonableness of profit margin assumptions by reviewing historical cash flow projections as well as future
growth objectives.
The cash flow projections for FY23 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY24 to FY27 of 2.5% (2021: 0.875%). Cash flow estimates beyond the five year period have
been extrapolated using a growth rate ranging from 1.8% to 2.2% (2021: 2% to 2.5%), which reflects the long-
term growth expectations beyond the five year period.
The post-tax discount rate applied to these cash flow projections is 9.7% (2021: 9.4%). 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 and adjusted for risks specific to the CGU.
In determining the possible scenarios of cash flows, management considered the reasonably possible
changes in estimated sales growth, estimated EBITDA and discount rates applied to the CGU to which
goodwill relates. These reasonably possible adverse change in 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 acquired through business combinations have been allocated to the following CGU groups
($’000) as no individual brand name is considered significant:
-
-
-
Casual wear - $158,975
Women’s wear - $137,744
Non Apparel - $49,460
The recoverable amounts of brand names acquired in a business combination have been determined on an
individual brand basis based upon value-in-use calculations. The value-in-use calculations have been
determined based upon the relief from royalty method using cash flow estimates for a period of five years plus
a terminal value.
62
Premier Investments Limited 62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
18
INTANGIBLES (CONTINUED)
IMPAIRMENT TESTING OF BRAND NAMES (CONTINUED)
The recoverable amount of brand names has been determined based upon a range of value-in-use
calculations, using estimated cash flow scenarios for a period of five years plus a terminal value. The value-in-
use calculations have been determined based on scenarios of cash flows using financial estimates for the
2023 financial year (FY23) and are projected for a further four years (FY24 – FY27) based on estimated
growth rates.
The cash flow projections for FY23 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY24 to FY27. These extrapolated growth rate ranges at which cash flows have been
estimated for the individual brands within each of the CGU groups were 2.5% (2021: 0.875%).
Cash flow estimates beyond the five year period have been extrapolated using a growth rate ranging from
1.8% to 2.2% (2021: 2% to 2.5%), which reflects the long-term growth expectations beyond the five year
period.
The post-tax discount rate applied to the cash flow projections for each of the three CGU groups is 8.5%
(2021: 8.3%). The discount rate has been determined using the weighted average cost of capital which
incorporates both the cost of debt and cost of capital and adjusted for risks specific to the CGU.
Royalty rates have been determined for each brand within the CGU groups by considering the brand’s history
and future expected performance. Factors such as the profitability of the brand, market share, 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% and 8% (2021:
3.5% and 8%).
In addition to the range of cash flow scenarios, management has considered reasonably possible adverse
changes in key assumptions applied to brands within the relevant CGU groups, each of which have been
subjected to sensitivities. Key assumptions relate to estimated sales growth, net royalty rates and discount
rates applied.
A brand within the Casual Wear CGU group with a carrying value of $82.2 million, indicated sensitivity to
possible adverse changes to the post-tax discount rate applied to the cash flow estimates, as well as
indicating sensitivity to a possible adverse change in sales growth expectations. The sensitivities included
reducing the average sales growth expectations for the 5-year period from FY23 to FY27 to 1.7% and
separately increasing the post-tax discount rate applied to cash flow estimates to 9.0%. The individual
reasonably possible adverse changes could result in a potential impairment of up to $1 million. The potential
impairment loss as a result of the reasonably possible adverse change to these key assumptions are not
considered material to the overall recoverable amount of the CGU to which the brand relates.
63
63
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
19 LISTED EQUITY INVESTMENT AT FAIR VALUE
INVESTMENT
Investment in listed securities at fair value
TOTAL INVESTMENTS
CONSOLIDATED
2022
$’000
2021
$’000
75,932
75,932
63,462
63,462
FAIR VALUE LISTED EQUITY INVESTMENT ACCOUNTING POLICY
The listed equity investment comprises a non-derivative equity instrument not held for trading and relates to an
equity investment in Myer Holdings Limited. The Group has made the irrevocable election to designate the
listed equity investment as ‘fair value through other comprehensive income’, without subsequent reclassification
of gains or losses nor impairment to profit or loss, as it is not held for trading, with only dividends recognised in
profit or loss.
The fair value of equity investments in listed securities is determined by reference to quoted market bid prices
at the close of business on the reporting date.
Subsequent to 30 July 2022, the Group acquired a further 2.99% investment in Myer Holdings Limited, taking
the total investment to 22.87%.
20
INVESTMENT IN ASSOCIATE
Movements in carrying amounts
Carrying amount at the beginning of the financial year
Share of profit after income tax
Gain resulting from associate share issue
Share of other comprehensive income
Adjustment due to associate accounting policy change
Dividends received
TOTAL INVESTMENT IN ASSOCIATE
CONSOLIDATED
2022
$’000
2021
$’000
271,372
27,085
15,251
8,895
-
(10,402)
312,201
257,391
23,897
9,117
(3,782)
(3,024)
(12,227)
271,372
As at 30 July 2022, Premier Investments Limited holds 25.62% (2021: 26.27%) of Breville Group Limited
(“BRG”), a company incorporated in Australia whose shares are quoted on the Australian Securities
Exchange. The principal activities of BRG involves the innovation, development, marketing and distribution of
small electrical appliances.
There were no impairment losses relating to the investment in associate and no capital commitments or other
commitments relating to the associate. The Group’s share of the profit after tax in its investment in associate
for the year was $27,084,695 (2021: $23,897,294). As at 30 July 2022, the fair value of the Group’s interest in
BRG as determined based on the quoted market price was $760,285,377 (2021: $1,173,460,147).
During the 2021 financial year, BRG reconsidered its accounting treatment with regards to accounting for
capitalised costs incurred in configuring or customising a supplier’s application software in a cloud computing
arrangement. The change in accounting policy led to a decrease in BRG’s opening retained earnings. The
Group share of this retained earnings adjustment due to a change in accounting policy was $3,024,000.
64
Premier Investments Limited 64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL INVESTED
20
INVESTMENT IN ASSOCIATE (CONTINUED)
During the period, a gain of $15,251,000 (31 July 2021: $9,117,000) was recorded in other income resulting
from an issue of shares by the associate, and the corresponding impact on the Group’s method of equity
accounting.
The financial year end date of BRG is 30 June. For the purpose of applying the equity method of
accounting, the financial statements of BRG for the year ended 30 June 2022 have been used. The
accounting policies applied by BRG 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’s investment in BRG:
EXTRACT OF BRG’S STATEMENT OF FINANCIAL POSITION
30 JUNE 2022
$’000
30 JUNE 2021
$’000
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
NET ASSETS
844,290
334,862
1,179,152
(343,105)
(221,630)
(564,735)
614,417
473,464
297,176
770,640
(219,085)
(45,070)
(264,155)
506,485
Group’s share of BRG net assets
157,414
133,054
EXTRACT OF BRG’S STATEMENT OF COMPREHENSIVE INCOME
Revenue
Profit after income tax
Other comprehensive income
30 JUNE 2022
$’000
1,418,437
105,717
33,651
30 JUNE 2021
$’000
1,187,659
90,968
(9,884)
Group’s share of BRG profit after income tax
27,085
23,897
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 but is not control or joint 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 equity method of accounting in the
consolidated financial statements. Under the equity method, the investment in the associate is initially
recognised at cost. Thereafter, the carrying amount of the investment is adjusted to recognise the Group’s
share of profit after tax of the associate, which is recognised in profit or loss, and the Group’s share of other
comprehensive income, 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 equity method, the Group determines whether it is necessary to
recognise an impairment loss on its investment in an associate. At each reporting period, the Group
determines whether there is objective evidence that the investment in the associate is impaired. If there is
such evidence, the Group calculates the amount of impairment as the difference between the recoverable
amount of the associate and its carrying value, then recognises the impairment loss in profit or loss in the
statement of comprehensive income.
65
65
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
21 NOTES TO THE STATEMENT OF CASH FLOWS
(a) RECONCILIATION OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
TOTAL CASH AND CASH EQUIVALENTS
(b)
RECONCILIATION OF NET PROFIT AFTER INCOME TAX
TO NET CASH FLOWS FROM OPERATIONS
Net profit for the period after tax
Adjustments for:
Depreciation
Share of profit of associate
Gain on investment in associate resulting from share issue
Dividends received from listed equity investment
Borrowing costs
Net loss on disposal of property, plant and equipment
Share-based payments expense
Movement in cash flow hedge reserve
Net exchange differences
Changes in assets and liabilities:
(Increase) decrease in trade and other receivables
Decrease in other current assets
Increase in inventories
Decrease (increase) in other financial assets
Decrease in deferred tax assets
(Decrease) increase in provisions
Increase in deferred tax liabilities
Decrease in trade and other payables
Decrease in other financial liabilities
Increase in deferred income
Decrease in income tax payable
NET CASH FLOWS FROM OPERATING ACTIVITIES
CONSOLIDATED
2022
$’000
2021
$’000
204,005
267,268
471,273
385,815
137,541
523,356
285,174
271,840
166,176
(27,085)
(15,251)
(2,449)
56
201
6,098
(4,316)
(378)
(1,536)
27
(15,632)
6,986
4,870
(594)
3,589
(24,183)
(815)
783
(26,244)
355,477
178,258
(23,897)
(9,117)
-
174
5
1,856
8,796
132
20,830
205
(52,170)
(7,073)
2,784
8,901
2,892
(14,045)
(5,509)
6,612
(7,954)
383,520
66
Premier Investments Limited 66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
21 NOTES TO THE STATEMENT OF CASH FLOWS
(CONTINUED)
(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
TOTAL
CONSOLIDATED
2022
$’000
2021
$’000
-
-
-
69,000
50,000
119,000
-
-
-
4,413
8,587
13,000
73,413
58,587
132,000
-
9,800
9,800
147,000
82,000
229,000
-
200
200
4,268
8,732
13,000
151,268
100,732
252,000
CASH AND CASH EQUIVALENTS ACCOUNTING POLICY
Cash and cash equivalents in the statement of financial position comprise cash on hand and in banks,
money market investments readily convertible to cash within two working days and short-term deposits with
an original maturity of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
67
67
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
22
INTEREST-BEARING LIABILITIES
CURRENT
Bank loans ** secured
TOTAL INTEREST-BEARING LIABILITIES
NON-CURRENT
Bank loans* unsecured
Bank loans ** secured
TOTAL INTEREST-BEARING LIABILITIES
CONSOLIDATED
2022
$’000
2021
$’000
-
-
-
69,000
69,000
69,000
69,000
77,834
-
77,834
* Bank loans are subject 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.
** Premier Investments Limited obtained bank borrowings amounting to $69 million. A $19 million borrowing is secured by a
mortgage over Land and Buildings, representing the National Distribution Centre in Truganina, Victoria. During the year ended
30 July 2022, this borrowing was refinanced and is repayable in full at the end of 5 years, being January 2027. Premier
Investments Limited obtained a further $50 million borrowing which is secured by a mortgage over Land and Buildings,
representing an office building in Melbourne, Victoria. During the year ended 30 July 2022, this borrowing was refinanced and
is repayable in full at the end of 5 years, being December 2026.
(a) Fair values
The carrying values of the Group’s current and non-current interest-bearing liabilities approximate their fair
values.
(b) Defaults and breaches
During the current and prior years, there were no defaults or breaches on any of the loans.
(c) Changes in interest-bearing liabilities arising from financing activities
CONSOLIDATED
31 JULY 2021
$’000
CASH
FLOWS
$’000
OTHER
$’000
30 JULY 2022
$’000
Non-current interest-bearing liabilities
TOTAL INTEREST-BEARING LIABILITIES
146,834
146,834
(77,834)
(77,834)
-
-
69,000
69,000
‘Other’ includes the effect of the amortisation of the capitalised borrowing costs, which are amortised over
the life of the facility.
INTEREST-BEARING LIABILITIES ACCOUNTING POLICY
Interest-bearing liabilities are initially recognised at the fair value of the consideration received net of issue
costs associated with the borrowing.
After initial recognition, such items are subsequently measured at amortised cost using the effective interest
method. Amortised cost is calculated by taking into account any issue costs, 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-
going borrowing costs are expensed as incurred.
68
Premier Investments Limited 68
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
23 CONTRIBUTED EQUITY
Ordinary share capital
608,615
608,615
CONSOLIDATED
2022
$’000
2021
$’000
(a) MOVEMENTS IN SHARES ON ISSUE
Ordinary shares on issue 1 August 2021
Ordinary shares issued during the year (i)
Ordinary shares on issue at 30 July 2022
Ordinary shares on issue 26 July 2020
Ordinary shares issued during the year (i)
Ordinary shares on issue at 31 July 2021
NO. (‘000)
$‘000
158,864
129
158,993
158,724
140
158,864
608,615
-
608,615
608,615
-
608,615
Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
(i)
A total of 129,077 ordinary shares (2021: 139,524) were issued in relation to the performance rights plan.
(b) CAPITAL MANAGEMENT
The Group’s objective 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 Group.
The capital structure of the Group consists of debt which includes interest-bearing borrowings, cash and cash
equivalents and equity attributable to the equity holders of Premier Investments Limited, comprising of
contributed equity, reserves and retained earnings.
The Group operates primarily through its two business segments, 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, to meet the retail segment’s funding requirements and to enable the Group to find the optimal debt
and equity balance.
The Group’s capital structure is reviewed on a periodic basis in the context of prevailing market conditions,
and appropriate steps are taken to ensure the Group’s capital structure and capital management initiatives
remain in line with the Board’s objectives.
(c) EXTERNALLY IMPOSED CAPITAL REQUIREMENTS
Just Group Ltd, a subsidiary of Premier Investments Limited, is subject 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 subject to any capital requirements imposed by regulators or other prudential authorities.
69
69
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2022
$’000
2021
$’000
24 RESERVES
RESERVES COMPRISE:
Capital profits reserve
Foreign currency translation reserve (a)
Cash flow hedge reserve (b)
Performance rights reserve (c)
Fair value reserve (d)
TOTAL RESERVES
(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’s reserves
CLOSING BALANCE
(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/
profit or loss
Deferred income tax movement on cash flow hedges
CLOSING BALANCE
464
8,604
61
27,313
(40,729)
(4,287)
2,801
(3,092)
8,895
8,604
4,377
3,561
(9,727)
1,850
61
464
2,801
4,377
21,215
(38,858)
(10,001)
5,781
802
(3,782)
2,801
(4,419)
(3,258)
15,826
(3,772)
4,377
70
Premier Investments Limited 70
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
24 RESERVES (CONTINUED)
(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 acquired under the
performance rights plan.
- Movements in the reserve
Opening balance
Performance rights expense for the year
CLOSING BALANCE
(d) FAIR VALUE RESERVE
Nature and purpose of reserve
Reserve is used to record unrealised gains and losses on
fair value revaluation of listed equity investment at fair value.
- Movements in the reserve
Opening balance
Unrealised (loss) gain on revaluation of listed investment
Net Deferred income tax movement on listed investment
CLOSING BALANCE
CONSOLIDATED
2022
$’000
2021
$’000
21,215
6,098
27,313
19,359
1,856
21,215
(38,858)
(2,673)
802
(40,729)
(59,032)
28,820
(8,646)
(38,858)
71
71
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 OTHER FINANCIAL INSTRUMENTS
CURRENT ASSETS
Derivatives designated as hedging instruments
Forward currency contracts – cash flow hedges
TOTAL CURRENT ASSETS
CURRENT LIABILITIES
Derivatives designated as hedging instruments
Interest rate swaps – cash flow hedges
TOTAL CURRENT LIABILITIES
(a) DERIVATIVE INSTRUMENTS USED BY THE GROUP
(i)
Forward currency contracts – cash flow hedges
CONSOLIDATED
2022
$’000
2021
$’000
87
87
-
-
7,073
7,073
815
815
The majority of the Group’s inventory purchases are denominated in US Dollars. In order to protect against
exchange rates movements, 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 equity.
The cash flows are expected to occur between one to twelve months from 30 July 2022 and the profit or loss
within cost of sales will be affected over the next year as the inventory is sold.
(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-bearing liabilities. These interest rate swap contracts are
designated as cash flow hedges in order to reduce the Group’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 equity is reclassified to profit or loss over
the period that the floating rate interest payments on debt affect profit or loss.
72
Premier Investments Limited 72
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 OTHER FINANCIAL INSTRUMENTS (CONTINUED)
(a) DERIVATIVE INSTRUMENTS USED BY THE GROUP (CONTINUED)
At reporting date, the details of outstanding forward currency contracts are:
CONSOLIDATED
2022
$’000
2021
$’000
2022
2021
NOTIONAL AMOUNTS $AUD
AVERAGE EXCHANGE RATE
-
-
133,430
27,016
-
-
0.7725
0.7403
NOTIONAL AMOUNTS $NZD
AVERAGE EXCHANGE RATE
1,153
-
22,990
0.6853
0.7267
-
-
-
Buy USD / Sell AUD
Maturity < 6 months
Maturity 6 – 12 months
Buy USD / Sell NZD
Maturity < 6 months
Maturity 6 – 12 months
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 subsequently
remeasured at fair value at subsequent reporting dates.
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, except for those
that qualify as cash flow hedges and are considered to be effective, are taken directly to profit or loss for the
period.
Cash flow hedges
Cash flow hedges are hedges of the Group’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’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 directly in other comprehensive income and
accumulated in the cash flow hedge reserve in equity, while the ineffective portion due to counterparty credit risk
is recognised in profit or loss. Amounts taken to equity are reclassified out of equity and included in the
measurement of the hedged transaction (finance costs or inventory purchases) when the forecast transaction
occurs.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its
designation as a hedge is revoked (due to being ineffective), amounts previously recognised in equity remain
in equity until the forecast transaction occurs.
73
73
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES
The Group’s principal financial instruments comprise cash and cash equivalents, derivative financial
instruments, listed equity investments at fair value, receivables, payables, bank overdrafts and interest-bearing
liabilities.
RISK EXPOSURES AND RESPONSES
The Group manages its exposure to key financial risks in accordance with Board-approved policies which are
reviewed annually and includes liquidity risk, foreign currency risk, interest rate risk and credit risk. The
objective of the policy is to support the delivery of the Group’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, monitoring levels of exposure to interest rate and foreign exchange risk and assessment of
market forecasts for interest rate and foreign exchange prices. Liquidity risk is monitored through development
of future cash flow forecast projections.
CREDIT RISK
The overwhelming majority of the Group’s sales are on cash terms with settlement within 24 hours. As such,
the Group’s exposure to credit risk is minimal. Receivable balances are monitored on an ongoing basis with
the result that the Group’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 equivalents and certain derivative instruments,
the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to
the carrying amount of these instruments. Since the Group trades only with recognised creditworthy third
parties, there is no requirement for collateral by either party.
Credit risk for the Group also arises from financial guarantees that members of the Group act as guarantor. At
30 July 2022, the maximum exposure to credit risk of the Group is the amount guaranteed as disclosed in
note 34.
INTEREST RATE RISK
The Group’s exposure to market interest rates relates primarily to its cash and cash equivalents that it holds
and interest-bearing liabilities.
At reporting date, 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:
Financial Assets
Cash and cash equivalents
Financial Liabilities
Bank loans AUD
NET FINANCIAL ASSETS
NOTES
21
22
CONSOLIDATED
2022
$’000
471,273
471,273
69,000
69,000
402,273
2021
$’000
523,356
523,356
146,834
146,834
376,522
74
Premier Investments Limited 74
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 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’s objective of managing interest rate risk is to
minimise the Group’s exposure to fluctuations in interest rates that might impact its interest revenue, interest
expense and cash flow. The Group manages this by locking in a portion of its cash and cash equivalents into
term deposits. The maturity of term deposits is determined based on the Group’s cash flow forecast.
The Group manages its interest rate risk relating to interest-bearing liabilities by having access to both fixed
and variable rate debt which can be drawn down.
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 equivalents and interest-bearing liabilities affected. A 100 (2021:100) basis point increase
and decrease in Australian interest rates represents management's assessment of the reasonably possible
change in interest rates. The table indicates an increase or decrease in the Group’s profit before tax.
Impacts of reasonably possible movements:
CONSOLIDATED
+1.0% (100 basis points)
-1.0% (100 basis points)
POST-TAX PROFIT TO
INCREASE (DECREASE) BY:
2022
$’000
3,024
(3,024)
2021
$’000
3,117
(3,117)
Significant assumptions used in the interest rate sensitivity analysis include:
- Reasonably possible movements in interest rates were determined based on the Group’s current credit
rating and mix of debt in Australian and foreign countries, relationships with financial institutions, the level of
debt that is expected to be renewed as well as a review of the last two years’ historical movements and
economic forecasters’ 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, and the change in interest rates take
place at the beginning of the financial year and are held constant throughout the reporting period.
FOREIGN OPERATIONS
The Group has operations in Australia, New Zealand, Singapore, Hong Kong, Malaysia, The Republic of
Ireland and the United Kingdom. As a result, movements in the Australian Dollar and the currencies applicable
to these foreign operations affect the Group’s statement of financial position and results from operations.
From time to time the Group obtains New Zealand Dollar denominated financing facilities from a financial
institution to provide a natural hedge of the Group’s exposure to movements in the Australian Dollar and New
Zealand Dollar (AUD/NZD) on translation of the New Zealand statement of financial position. In addition, the
Group, on occasion, hedges its cash flow exposure to movements in the AUD/NZD. The Group also on
occasion, hedges its cash flow exposure in movements in the AUD/SGD and AUD/GBP.
75
75
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS
The Group has exposures to foreign currencies principally arising from purchases by operating entities in
currencies other than their functional currency. Over 80% of the Group’s purchases are denominated in
United States Dollar (USD), 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-term and
ongoing exposure. In order to protect against exchange rate movements, the Group enters into forward
exchange contracts to purchase US Dollars. These forward exchange contracts are designated as cash flow
hedges that are subject to movements through equity and profit or loss respectively as foreign exchange rates
move.
The Group’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:
-
-
-
-
the implied market volatility for the currency exposure being hedged and the cost of hedging, relative to
long-term indicators;
the level of the base currency against the currency risk being hedged, relative to long-term indicators;
the Group’s strategic decision-making horizon; and
other factors considered relevant by the Board
The policy requires periodic reporting to the Audit and Risk Committee, and its application is subject 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.
At reporting date, the Group had the following exposures to movements in the United States Dollar (USD),
New Zealand Dollar (NZD), Singapore Dollar (SGD), Pound Sterling (GBP), Hong Kong Dollar (HKD),
Malaysian Ringgit (MYR), and Euro (EUR):
2022
CONSOLIDATED
FINANCIAL ASSETS
USD
NZD
SGD
GBP
HKD
$’000
$’000
$’000
$’000
$’000
MYR
$’000
EUR
$’000
Cash and cash equivalents
7,616
29,779
13,015
19,767
Trade and other receivables
Derivative financial assets
876
87
-
-
58
-
-
-
8,579
29,779
13,073
19,767
FINANCIAL LIABILITIES
Trade and other payables
44,395
5,757
1,043
3,850
Derivative financial liabilities
-
-
-
-
44,395
5,757
1,043
3,850
NET EXPOSURE
(35,816)
24,022
12,030
15,917
-
-
-
-
-
-
-
-
7,295
793
-
-
-
-
7,295
793
-
-
-
-
-
-
7,295
793
The Group has forward currency contracts designated as cash flow hedges that are subject to movements through
other comprehensive income and profit or loss respectively as foreign exchange rates move (refer to Note 24).
76
Premier Investments Limited 76
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS (CONTINUED)
2021
CONSOLIDATED
FINANCIAL ASSETS
USD
NZD
SGD
GBP
HKD
$’000
$’000
$’000
$’000
$’000
MYR
$’000
EUR
$’000
Cash and cash equivalents
11,400
52,035
23,807
18,484
Trade and other receivables
Derivative financial assets
678
7,073
-
-
19
-
-
-
19,151
52,035
23,826
18,484
FINANCIAL LIABILITIES
Trade and other payables
51,287
7,539
339
4,490
Derivative financial liabilities
-
-
-
-
51,287
7,539
339
4,490
NET EXPOSURE
(32,136)
44,496
23,487
13,994
6
-
-
6
-
-
-
6
2,210
716
-
-
-
-
2,210
716
-
-
-
-
-
-
2,210
716
FOREIGN CURRENCY RISK
The following sensitivity is based on the foreign exchange risk exposures in existence at the reporting date:
POST-TAX PROFIT
HIGHER/(LOWER)
OTHER COMPREHENSIVE INCOME
HIGHER/(LOWER)
CONSOLIDATED
Impacts of reasonably possible
movements:
CONSOLIDATED
AUD/USD + 10% (2021: + 2.5%)
AUD/USD – 10.0%
AUD/NZD + 10% (2021: + 2.5%)
AUD/NZD – 10.0%
AUD/SGD + 10% (2021: + 2.5%)
AUD/SGD – 10.0%
AUD/GBP + 10% (2021: + 2.5%)
AUD/GBP – 10.0%
AUD/HKD + 10% (2021: + 2.5%)
AUD/HKD – 10.0%
AUD/MYR + 10% (2021: + 2.5%)
AUD/MYR – 10.0%
AUD/EUR + 10% (2021: + 2.5%)
AUD/EUR – 10.0%
77
2022
$’000
3,263
(3,989)
(2,184)
2,669
(1,094)
1,337
(1,447)
1,769
-
-
(663)
811
(72)
88
2021
$’000
1,023
(4,111)
(1,085)
4,944
(573)
2,610
(341)
1,555
-
1
(54)
246
(17)
80
2022
$’000
(96)
1
-
-
-
-
-
-
-
-
-
-
-
-
2021
$’000
(4,603)
19,815
-
-
-
-
-
-
-
-
-
-
-
-
77
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY RISK (CONTINUED)
Significant assumptions used in the foreign currency exposure sensitivity analysis include:
- Reasonably possible movements in foreign exchange rates were determined based on a review of the last
two years historical movements and economic forecasters’ 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-monetary items as these are not
considered to give rise to currency risk.
LIQUIDITY RISK
Liquidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial
liabilities and other cash flow commitments. Liquidity 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 liquidity. The Group keeps its short-, medium- and long-term
funding requirements under constant review. Its policy is to have sufficient committed funds available to meet
medium term requirements, with flexibility and headroom to make acquisitions for cash in the event an
opportunity should arise.
The Group has, at reporting date, $204.0 million (2021: $385.8 million) cash held in deposit with 11am at call
and the remaining $267.3 million (2021: $137.5 million) cash held in deposit with maturity terms ranging from
30 to 180 days (2021: 30 to 180 days). Hence management believe there is no significant exposure to liquidity
risk at 30 July 2022 and 31 July 2021.
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, the remaining undiscounted contractual maturities of the Group’s financial liabilities are:
CONSOLIDATED
FINANCIAL YEAR ENDED 30 JULY 2022
FIANCIAL YEAR ENDED 31 JULY 2021
CONSOLIDATED
MATURITY 0 - 12
MONTHS
MATURITY > 12
MONTHS
MATURITY 0 - 12
MONTHS
MATURITY > 12
MONTHS
$’000
$’000
$’000
$’000
FINANCIAL LIABILITIES
Trade and other payables
Bank loans
Lease liabilities
Forward currency contracts
143,454
-
158,290
1,152
302,896
-
69,000
90,440
-
164,269
69,000
159,050
189,492
-
77,834
84,810
-
159,440
581,811
162,644
78
Premier Investments Limited 78
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
CAPITAL STRUCTURE AND RISK MANAGEMENT
26 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The Group measures financial instruments, such as derivatives and listed equity investments at fair value, 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, in the absence of a principal market, the most
advantageous market for the asset or liability, which is accessible to the Group.
In determining the fair value of an asset or liability, the Group uses market observable data, 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.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the following fair value hierarchy, based on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 – the fair value is calculated using quoted price in active markets for identical assets or liabilities.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable
market data.
FINANCIAL YEAR ENDED 30 JULY 2022
FINANCIAL YEAR ENDED 31 JULY 2021
CONSOLIDATED
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
$’000
$’000
$’000
$’000
$’000
$’000
FINANCIAL ASSETS
Listed equity investment at fair value
75,932
Foreign Exchange Contracts
FINANCIAL LIABILITIES
Interest Rate Swaps
-
-
-
87
-
-
-
-
63,462
-
-
7,073
-
815
-
-
-
There have been no transfers between Level 1, Level 2 and Level 3 during the financial year.
At 30 July 2022 and 31 July 2021, the fair values of cash and cash equivalents, short-term receivables and
payables approximate their carrying values. The carrying value of interest-bearing liabilities is considered to
approximate the fair value, 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, and subsequently remeasured to fair value.
Accordingly, 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, the yield curves of the respective currencies as well as the currency basis spread between the respective
currencies.
79
79
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP STRUCTURE
27 SUBSIDIARIES
The consolidated financial statements include that of Premier Investments Limited (ultimate parent entity) and the
subsidiaries listed in the following table. (* Indicates not trading as at the date of this report)
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-Shop Pty Limited
Peter Alexander Sleepwear Pty Limited
Old Blues Pty Limited
Kimbyr Investments Limited
Jacqui E Pty Limited
Jacqueline-Eve Fashions Pty Limited *
Jacqueline-Eve (Hobart) Pty Limited *
Jacqueline-Eve (Retail) Pty Limited *
Jacqueline-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 *
Smiggle Group Holdings Pty Limited *
Smiggle International Pty Limited *
Smiggle Singapore Pte Ltd
Just Group International HK Limited*
Smiggle HK Limited
Just Group USA Inc.*
Peter Alexander USA Inc.*
Smiggle USA Inc.*
Just UK International Limited*
Smiggle UK Limited
Peter Alexander UK Limited*
Smiggle Ireland Limited
Smiggle Netherlands B.V.*
ETI Holdings Limited*
Roskill Hill Limited*
RSCA Pty Limited*
RSCB Pty Limited*
Just Group Singapore Private Ltd *
Peter Alexander Singapore Private Ltd *
Smiggle Stores Malaysia SDN BHD
COUNTRY OF INCORPORATION
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
2022 INTEREST
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2021 INTEREST
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Australia
Australia
New Zealand
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
Netherlands
New Zealand
New Zealand
Australia
Australia
Singapore
Singapore
Malaysia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80
Premier Investments Limited 80
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP STRUCTURE
28 PARENT ENTITY INFORMATION
The accounting policies of Premier Investments Limited, being the parent entity, which have been applied in
determining the financial information shown below, are the same as those applied in the consolidated financial
statements.
(a) Summary financial information
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders’ equity
Issued capital
Reserves:
- Foreign currency translation reserve
- Performance rights reserve
- Cash flow hedge reserve
Retained earnings
Net profit for the period
Total comprehensive loss for the period, net of tax
(b) Guarantees entered into by the parent entity
2022
$’000
2021
$’000
334,021
1,656,004
30,690
117,370
212,017
1,482,514
77,725
136,742
608,615
608,615
9,554
27,313
-
893,152
323,984
9,053
659
21,215
(157)
715,440
190,558
(3,492)
The parent entity has provided no financial guarantees in respect of bank overdrafts and loans of subsidiaries
(2021: $nil).
The parent entity has also given no unsecured guarantees in respect of finance leases of subsidiaries or
bank overdrafts of subsidiaries (2021: $nil).
(c) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 July 2022 (2021: $nil).
(d) Contractual commitments for the acquisition of property, plant or equipment
The parent entity did not have any contractual commitments to purchase property, plant and equipment as
at 30 July 2022 or 31 July 2021.
81
81
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
GROUP STRUCTURE
29 DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, dated 17 December 2016,
relief has been granted to certain wholly-owned subsidiaries in the Australian Group from the Corporations
law requirements for preparation, audit and lodgement of financial reports.
As a condition of this instrument, Just Group Limited, a subsidiary of Premier Investments Limited, 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.
30 RELATED PARTY TRANSACTIONS
(a) PARENT ENTITY AND SUBSIDIARIES
The ultimate parent entity is Premier Investments Limited. Details of subsidiaries are provided in note 27.
(b) KEY MANAGEMENT PERSONNEL
COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
TOTAL
CONSOLIDATED
2022
$
2021
$
5,635,732
103,272
4,491,427
10,230,431
7,711,779
109,379
89,054
7,910,212
(c) RELATED PARTY TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
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 $1,479,010 (2021: $2,809,669), including Mr.
Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with
$114,909 (2021: $544,387) remaining outstanding at year-end. The fees paid for these services were at arm's
length and on normal commercial terms.
Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling $388,556 (2021: $42,158
including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at year-end (2021: $177,852).
The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling $19,597,245
(2021: $22,990,422) including GST have been made by Group companies from Voyager Distributing Co. Pty
Ltd, with $4,154,029 (2021: $9,843,740) remaining outstanding at year-end. The purchases were all at arm’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 administrative
services to the company to the extent required and requested by the company. The company is required 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 $440,000 (2021: $561,000) costs including GST incurred by
Century Plaza Trading Pty Ltd, with $198,000 (2021: $nil) remaining outstanding at year-end.
82
Premier Investments Limited 82
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OTHER DISCLOSURES
31 AUDITOR’S REMUNERATION
The auditor of Premier Investments Limited is Ernst & Young
(Australia). Amounts received, or due and receivable, by
Ernst & Young (Australia) for:
Audit or review of the statutory financial report of the parent
covering the group and auditing the statutory financial
reports of any controlled entities
Other assurance services or agreed-upon-procedures under
other legislation or contractual arrangements not required to
be performed by the auditor
Other non-audit services
SUB-TOTAL
Amounts received, or due and receivable, by overseas
member firms of Ernst & Young (Australia) for:
Audit of the financial report of any controlled entities
TOTAL AUDITOR’S REMUNERATION
32 SHARE-BASED PAYMENT PLANS
(a) RECOGNISED SHARE-BASED PAYMENT EXPENSE
TOTAL EXPENSE ARISING FROM EQUITY-SETTLED
SHARE-BASED PAYMENT TRANSACTIONS
(b) TYPE OF SHARE-BASED PAYMENT PLANS
Performance rights
CONSOLIDATED
2022
$
2021
$
565,550
709,350
39,678
11,613
616,841
39,287
11,613
760,250
216,000
832,841
230,940
991,190
CONSOLIDATED
2022
$’000
6,098
2021
$’000
1,856
The Group grants performance rights to executives, thus ensuring that the executives who are most directly
able to influence the Group’s performance are appropriately aligned with the interests of shareholders.
A performance right is a right to acquire one fully paid ordinary share of the Group after meeting pre-determined
performance conditions. These performance conditions have been discussed in the Remuneration Report
section of the Directors’ Report.
83
83
Annual Report 2022For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
OTHER DISCLOSURES
32 SHARE-BASED PAYMENT PLANS (CONTINUED)
(b) TYPE OF SHARE-BASED PAYMENT PLANS (CONTINUED)
Performance rights (continued)
The fair value of the performance rights has been calculated as at the respective grant dates using an
appropriate valuation technique. The valuation model applied, being either the Monte-Carlo simulation pricing
model or the Black-Scholes European pricing model, 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-based payments expense for the period, the number of instruments expected to vest
has been adjusted to reflect the number of executives expected to remain with the Group until the end of the
performance period, as well as the probability of not meeting the Total Shareholder Return (“TSR”) performance
hurdles, where applicable.
The following table shows the share-based payment arrangements in existence during the current and prior
reporting periods, as well as the factors considered in determining the fair values of the performance rights in
existence:
GRANT DATE
(DD/MM/YYYY)
NUMBER OF
RIGHTS
GRANTED
SHARE ISSUE
PRICE
OPTION LIFE
DIVIDEND
YIELD
VOLATILITY RISK-FREE RATE
FAIR
VALUE
19/02/2018
148,237
12/04/2019
124,472
$12.91
$18.18
2.5 years
2.5 years
01/05/2020
544,809
$13.21
2.5 – 4 years
02/12/2021
600,000
02/12/2021
200,000
01/07/2022
67,265
$30.58
$30.58
$22.30
3 – 6 years
1 – 4 years
1 – 3 years
3.4%
3.4%
3.5%
3.6%
3.6%
3.6%
16%
30%
36%
24%
24%
30%
2.14%
1.44%
0.40%
$7.85
$6.81
$8.33
0.87%
$17.40
0.81%
$27.25
2.32%
$20.66
(c) SUMMARY OF RIGHTS GRANTED UNDER PERFORMANCE RIGHTS PLANS
The following table illustrates the number (No.) and weighted average exercise prices (“WAEP”) of, and
movements in, performance rights issued during the year:
Balance at beginning of the year
Granted during the year
Exercised during the year (i)
Expired during the year
2022
No.
673,886
867,265
(129,077)
-
Balance at the end of the year
1,412,074
2022
WAEP
-
-
-
-
-
2021
No.
813,410
-
(139,524)
-
673,886
2021
WAEP
-
-
-
-
-
(i) The weighted average share price at the date of exercise of rights exercised during the year was $32.29 (2021: $21.77).
Since the end of the financial year and up to the date of this report, no performance rights have been exercised,
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 $19.92 (2021: $nil).
84
Premier Investments Limited 84
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 30 JULY 2022 AND THE 53 WEEKS ENDED 31 JULY 2021 (CONTINUED)
For the 52 weeks ended 30 July 2022 and the 53 weeks ended 31 July 2021 (continued)
OTHER DISCLOSURES
32 SHARE-BASED PAYMENT PLANS (CONTINUED)
SHARE-BASED PAYMENT ACCOUNTING POLICIES
The Group provides benefits to its employees in the form of share-based payments, whereby employees render
services in exchange for rights over shares (equity-settled transactions). The plan in place to provide these
benefits is a long-term incentive plan known as the performance rights plan (“PRP”).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instrument at the date at which they are granted.
The cost of equity-settled transactions is recognised in profit or loss, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending
on the date on which the relevant employees become fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting, the cumulative charge to profit or loss in the statement of
comprehensive income is the product of: the grant date fair value of the award, the extent to which the vesting
period has expired, and 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 equity.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which
vesting is conditional upon a market or non-vesting condition. These are treated as vested, irrespective of
whether or not the market or non-vesting condition is satisfied, provided that all other performance and service
conditions are met.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
The fair value of share-based payment transactions is determined at the grant date using an appropriate
valuation model, which takes into account the terms and conditions upon which the instruments were granted
to key executives. The terms and conditions require estimates to be made of the number of equity instruments
expected to vest, 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, but may impact the share-based payment expense and performance
rights reserve within equity.
33 EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final dividend in respect of the 2022 financial year.
The total amount of the final dividend is $85,856,000 (2021: $73,137,000) which represents a fully franked
dividend of 54 cents per share (2021: 46 cents per share). In addition, the Directors of Premier Investments
Limited approved a special dividend in respect of the 2022 financial year. The total amount of the special
dividend is $39,748,000 (2021: $nil) which represents a fully franked dividend of 25 cents per share (2021: nil
cents per share). The dividends have not been provided for in the 2022 financial statements.
The Directors of Premier Investments Limited approved an on-market share buyback of up to $50 million. The
on-market share buyback will be for a period of 12 months, from 18 October 2022 to 17 October 2023. The total
number of shares to be purchased under the on-market share buyback will be dependent on business and
market conditions and Premier may, at its discretion, vary the size of the on-market share buyback.
34 CONTINGENT LIABILITIES
The Group has bank guarantees and outstanding letters of credit totalling $4,413,392 (2021: $4,267,668).
85
85
Annual Report 2022 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
30 July 2022 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 30 July 2022
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 30 July 2022.
On behalf of the Board
Solomon Lew
Chairman
3 October 2022
86
Premier Investments Limited 86
relation to the audit.
relation to the audit;
Independent Auditor’s Report
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and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
and of its consolidated financial performance for the year ended on that date; and
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Independent auditor’s report to the members of Premier Investments
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Independent auditor’s report to the members of Premier Investments
Limited
Independent auditor’s report to the members of Premier Investments
Limit ed
Limited
Independent auditor’s report to the members of Premier Investments
Limited
Independent auditor’s report to the members of Premier Investments
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
Report on the audit of the financial report
Limited
Limited
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
Report on the audit of the financial report
Independent auditor’s report to the members of Premier Investments
Report on the audit of the financial report
Opinion
Report on the audit of the financial report
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
Limited
Report on the audit of the financial report
Opinion
Opinion
We have audited the financial report of Premier Investments Limited (the Company) and its
Opinion
Report on the audit of the financial report
We have audited the financial report of Premier Investments Limited (the Company) and its
Opinion
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
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 30 July 2022, the consolidated statement of comprehensive income, consolidated statement of
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 30 July 2022, the consolidated statement of comprehensive income, consolidated statement of
We have audited the financial report of Premier Investments Limited (the Company) and its
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
Opinion
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
c. No non-audit services provided that contravene any applicable code of professional conduct in
as at 30 July 2022, 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
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
financial statements, including a summary of significant accounting policies, and the directors’
as at 30 July 2022, 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’
as at 30 July 2022, the consolidated statement of comprehensive income, consolidated statement of
declaration.
We have audited the financial report of Premier Investments Limited (the Company) and its
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.
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
financial statements, including a summary of significant accounting policies, and the directors’
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
declaration.
financial statements, including a summary of significant accounting policies, and the directors’
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
as at 30 July 2022, the consolidated statement of comprehensive income, consolidated statement of
declaration.
financial year.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
declaration.
Act 2001, including:
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
financial statements, including a summary of significant accounting policies, and the directors’
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
declaration.
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Act 2001, including:
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Ernst & Young
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 July 2022
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
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
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Basis for opinion
those standards are further described in the Auditor’s responsibilities for the audit of the financial
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
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
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
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Basis for opinion
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
those standards are further described in the Auditor’s responsibilities for the audit of the financial
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
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
report section of our report. We are independent of the Group in accordance with the auditor
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
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 (including Independence Standards) (the Code) that are relevant to our audit of the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
those standards are further described in the Auditor’s responsibilities for the audit of the financial
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (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
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
the Code.
report section of our report. We are independent of the Group in accordance with the auditor
Accountants (including Independence Standards) (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.
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
Glenn Carmody
the Code.
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
the Code.
Partner
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
the Code.
for our opinion.
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
3 October 2022
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Key audit matters
the Code.
for our opinion.
Key audit matters
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
Key audit matters
our audit of the financial report of the current year. These matters were addressed in the context of
for our opinion.
Key audit matters are those matters that, in our professional judgement, 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
Key audit matters are those matters that, in our professional judgement, 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
Key audit matters are those matters that, in our professional judgement, were of most significance in
a separate opinion on these matters. For each matter below, our description of how our audit
Key audit matters
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
our audit of the financial report of the current year. These matters were addressed in the context of
addressed the matter is provided in that context.
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.
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
Key audit matters are those matters that, in our professional judgement, were of most significance in
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
a separate opinion on these matters. For each matter below, our description of how our audit
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
our audit of the financial report of the current year. These matters were addressed in the context of
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
addressed the matter is provided in that context.
financial report section of our report, including in relation to these matters. Accordingly, our audit
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
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
a separate opinion on these matters. For each matter below, our description of how our audit
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
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
material misstatement of the financial report. The results of our audit procedures, including the
addressed the matter is provided in that context.
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
financial report section of our report, including in relation to these matters. Accordingly, our audit
procedures performed to address the matters below, provide the basis for our audit opinion on the
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
included the performance of procedures designed to respond to our assessment of the risks of
accompanying financial report.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
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.
material misstatement of the financial report. The results of our audit procedures, including the
financial report section of our report, including in relation to these matters. Accordingly, our audit
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
A member firm of Ernst & Young Global Limited
procedures performed to address the matters below, provide the basis for our audit opinion on the
included the performance of procedures designed to respond to our assessment of the risks of
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
accompanying financial report.
Liability limited by a scheme approved under Professional Standards Legislation
material misstatement of the financial report. The results of our audit procedures, including the
A member firm of Ernst & Young Global Limited
87
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
procedures performed to address the matters below, provide the basis for our audit opinion on the
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
and of its consolidated financial performance for the year ended on that date; and
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Annual Report 2022 Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
relation to the audit.
relation to the audit;
Carrying value of intangible assets
Carrying value of intangible assets
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Carrying value of intangible assets
Carrying value of intangible assets
Limit ed
How our audit addressed the key audit matter
Why significant
How our audit addressed the key audit matter
Why significant
How our audit addressed the key audit matter
Why significant
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
As at 30 July 2022, the Group held $823.3 million (or 35.7%
Our audit procedures included the following:
How our audit addressed the key audit matter
Why significant
Carrying value of intangible assets
As at 30 July 2022, the Group held $823.3 million (or 35.7%
Our audit procedures included the following:
of total assets) in goodwill and indefinite-life brand names
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
As at 30 July 2022, the Group held $823.3 million (or 35.7%
Our audit procedures included the following:
► Assessed the application of the valuation methodologies
of total assets) in goodwill and indefinite-life brand names
As at 30 July 2022, the Group held $823.3 million (or 35.7%
recognised from historical business combinations.
Our audit procedures included the following:
► Assessed the application of the valuation methodologies
of total assets) in goodwill and indefinite-life brand names
recognised from historical business combinations.
applied.
► Assessed the application of the valuation methodologies
of total assets) in goodwill and indefinite-life brand names
How our audit addressed the key audit matter
Why significant
recognised from historical business combinations.
applied.
As outlined in Note 18 of the financial report, the goodwill
► Assessed the application of the valuation methodologies
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
applied.
recognised from historical business combinations.
As outlined in Note 18 of the financial report, the goodwill
► Evaluated whether the determination of CGUs was in
and brand names are tested by the Group for impairment
applied.
As outlined in Note 18 of the financial report, the goodwill
► Evaluated whether the determination of CGUs was in
As at 30 July 2022, the Group held $823.3 million (or 35.7%
and brand names are tested by the Group for impairment
Our audit procedures included the following:
accordance with Australian Accounting Standards.
As outlined in Note 18 of the financial report, the goodwill
annually.
► Evaluated whether the determination of CGUs was in
and brand names are tested by the Group for impairment
accordance with Australian Accounting Standards.
of total assets) in goodwill and indefinite-life brand names
annually.
► Evaluated whether the determination of CGUs was in
and brand names are tested by the Group for impairment
accordance with Australian Accounting Standards.
► Assessed the application of the valuation methodologies
annually.
The recoverable amount of these assets was determined
► Agreed the cashflows within the impairment model to
recognised from historical business combinations.
accordance with Australian Accounting Standards.
annually.
The recoverable amount of these assets was determined
► Agreed the cashflows within the impairment model to
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
applied.
based on a value in use model referencing discounted cash
forecast cashflows.
The recoverable amount of these assets was determined
► Agreed the cashflows within the impairment model to
As outlined in Note 18 of the financial report, the goodwill
based on a value in use model referencing discounted cash
forecast cashflows.
The recoverable amount of these assets was determined
► Agreed the cashflows within the impairment model to
flows of the retail segment for goodwill, and the casual wear,
based on a value in use model referencing discounted cash
forecast cashflows.
► Evaluated whether the determination of CGUs was in
► Considered the impact of COVID-19 on the cash flow
and brand names are tested by the Group for impairment
flows of the retail segment for goodwill, and the casual wear,
based on a value in use model referencing discounted cash
forecast cashflows.
women’s wear and non-apparel cash generating units (CGUs)
► Considered the impact of COVID-19 on the cash flow
flows of the retail segment for goodwill, and the casual wear,
c. No non-audit services provided that contravene any applicable code of professional conduct in
accordance with Australian Accounting Standards.
assumptions used in the impairment model.
annually.
women’s wear and non-apparel cash generating units (CGUs)
► Considered the impact of COVID-19 on the cash flow
flows of the retail segment for goodwill, and the casual wear,
for brand names. The model contains estimates and
assumptions used in the impairment model.
women’s wear and non-apparel cash generating units (CGUs)
► Considered the impact of COVID-19 on the cash flow
for brand names. The model contains estimates and
assumptions used in the impairment model.
The recoverable amount of these assets was determined
► Agreed the cashflows within the impairment model to
women’s wear and non-apparel cash generating units (CGUs)
significant judgements regarding future cash flow
► Considered the historical accuracy of the Group’s cash
for brand names. The model contains estimates and
assumptions used in the impairment model.
significant judgements regarding future cash flow
► Considered the historical accuracy of the Group’s cash
based on a value in use model referencing discounted cash
for brand names. The model contains estimates and
forecast cashflows.
projections which are critical to the assessment of
flow forecasting process.
significant judgements regarding future cash flow
► Considered the historical accuracy of the Group’s cash
projections which are critical to the assessment of
flow forecasting process.
flows of the retail segment for goodwill, and the casual wear,
significant judgements regarding future cash flow
► Considered the historical accuracy of the Group’s cash
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
impairment, particularly planned sales growth in the casual
projections which are critical to the assessment of
flow forecasting process.
► Considered the impact of COVID-19 on the cash flow
► Compared the forecast cash flows used in the value in
impairment, particularly planned sales growth in the casual
women’s wear and non-apparel cash generating units (CGUs)
projections which are critical to the assessment of
flow forecasting process.
wear and women’s wear CGUs and discount rates applied.
► Compared the forecast cash flows used in the value in
financial year.
impairment, particularly planned sales growth in the casual
assumptions used in the impairment model.
use model to the actual current year financial
wear and women’s wear CGUs and discount rates applied.
► Compared the forecast cash flows used in the value in
for brand names. The model contains estimates and
impairment, particularly planned sales growth in the casual
use model to the actual current year financial
wear and women’s wear CGUs and discount rates applied.
Significant assumptions used in the impairment testing
► Compared the forecast cash flows used in the value in
performance of the underlying CGUs for reasonability.
use model to the actual current year financial
significant judgements regarding future cash flow
► Considered the historical accuracy of the Group’s cash
wear and women’s wear CGUs and discount rates applied.
Significant assumptions used in the impairment testing
performance of the underlying CGUs for reasonability.
referred to above are inherently subjective and in times of
use model to the actual current year financial
Significant assumptions used in the impairment testing
performance of the underlying CGUs for reasonability.
projections which are critical to the assessment of
flow forecasting process.
referred to above are inherently subjective and in times of
► Assessed key inputs being discount rates, relief from
Significant assumptions used in the impairment testing
economic uncertainty the degree of subjectivity is higher
referred to above are inherently subjective and in times of
performance of the underlying CGUs for reasonability.
► Assessed key inputs being discount rates, relief from
impairment, particularly planned sales growth in the casual
economic uncertainty the degree of subjectivity is higher
royalty rates and sales growth rates adopted in the value
referred to above are inherently subjective and in times of
than it might otherwise be. Changes in certain assumptions
► Assessed key inputs being discount rates, relief from
► Compared the forecast cash flows used in the value in
economic uncertainty the degree of subjectivity is higher
royalty rates and sales growth rates adopted in the value
wear and women’s wear CGUs and discount rates applied.
than it might otherwise be. Changes in certain assumptions
► Assessed key inputs being discount rates, relief from
in use model including comparison to available market
economic uncertainty the degree of subjectivity is higher
can lead to significant changes in the recoverable amount of
royalty rates and sales growth rates adopted in the value
use model to the actual current year financial
than it might otherwise be. Changes in certain assumptions
in use model including comparison to available market
can lead to significant changes in the recoverable amount of
royalty rates and sales growth rates adopted in the value
Significant assumptions used in the impairment testing
than it might otherwise be. Changes in certain assumptions
data for comparable businesses.
these assets.
in use model including comparison to available market
performance of the underlying CGUs for reasonability.
can lead to significant changes in the recoverable amount of
data for comparable businesses.
these assets.
in use model including comparison to available market
referred to above are inherently subjective and in times of
can lead to significant changes in the recoverable amount of
data for comparable businesses.
these assets.
Accordingly, given the significant judgements and estimates
data for comparable businesses.
economic uncertainty the degree of subjectivity is higher
these assets.
Accordingly, given the significant judgements and estimates
involved in assessing impairment of intangible assets we
assumptions included in the forecast cashflows and
Accordingly, given the significant judgements and estimates
Ernst & Young
royalty rates and sales growth rates adopted in the value
than it might otherwise be. Changes in certain assumptions
involved in assessing impairment of intangible assets we
assumptions included in the forecast cashflows and
Accordingly, given the significant judgements and estimates
considered this a key audit matter. For the same reasons we
impairment models including the discount rates, to
involved in assessing impairment of intangible assets we
assumptions included in the forecast cashflows and
in use model including comparison to available market
can lead to significant changes in the recoverable amount of
considered this a key audit matter. For the same reasons we
impairment models including the discount rates, to
involved in assessing impairment of intangible assets we
consider it important that attention is drawn to the
assumptions included in the forecast cashflows and
assess the risk of the CGU carrying value exceeding the
considered this a key audit matter. For the same reasons we
impairment models including the discount rates, to
data for comparable businesses.
these assets.
consider it important that attention is drawn to the
assess the risk of the CGU carrying value exceeding the
considered this a key audit matter. For the same reasons we
information in Note 18.
impairment models including the discount rates, to
consider it important that attention is drawn to the
recoverable amount.
assess the risk of the CGU carrying value exceeding the
information in Note 18.
Accordingly, given the significant judgements and estimates
recoverable amount.
consider it important that attention is drawn to the
► Performed sensitivity analysis on key inputs and
assess the risk of the CGU carrying value exceeding the
information in Note 18.
recoverable amount.
► Compared earnings multiples derived from the Group’s
involved in assessing impairment of intangible assets we
information in Note 18.
assumptions included in the forecast cashflows and
recoverable amount.
► Compared earnings multiples derived from the Group’s
value in use model to those observable from external
considered this a key audit matter. For the same reasons we
► Compared earnings multiples derived from the Group’s
impairment models including the discount rates, to
value in use model to those observable from external
► Compared earnings multiples derived from the Group’s
market data of comparable listed entities.
consider it important that attention is drawn to the
value in use model to those observable from external
assess the risk of the CGU carrying value exceeding the
market data of comparable listed entities.
value in use model to those observable from external
information in Note 18.
market data of comparable listed entities.
recoverable amount.
► Assessed the adequacy of the disclosures included in the
market data of comparable listed entities.
► Assessed the adequacy of the disclosures included in the
financial report.
► Assessed the adequacy of the disclosures included in the
► Compared earnings multiples derived from the Group’s
financial report.
► Assessed the adequacy of the disclosures included in the
financial report.
value in use model to those observable from external
Our valuation specialists were involved in the conduct of
financial report.
Our valuation specialists were involved in the conduct of
market data of comparable listed entities.
these procedures where considered relevant.
Our valuation specialists were involved in the conduct of
these procedures where considered relevant.
Our valuation specialists were involved in the conduct of
these procedures where considered relevant.
► Assessed the adequacy of the disclosures included in the
these procedures where considered relevant.
► Performed sensitivity analysis on key inputs and
► Assessed key inputs being discount rates, relief from
► Performed sensitivity analysis on key inputs and
► Performed sensitivity analysis on key inputs and
► Performed sensitivity analysis on key inputs and
financial report.
Glenn Carmody
Existence and valuation of inventory
Existence and valuation of inventory
Partner
Existence and valuation of inventory
Existence and valuation of inventory
3 October 2022
Why significant
Why significant
Why significant
As at 30 July 2022, the Group held $224.4 million in
Why significant
Existence and valuation of inventory
As at 30 July 2022, the Group held $224.4 million in
inventories.
As at 30 July 2022, the Group held $224.4 million in
inventories.
As at 30 July 2022, the Group held $224.4 million in
inventories.
Inventories are held at several distribution centres, as well
inventories.
Inventories are held at several distribution centres, as well
Why significant
as at over 1,200 retail stores.
Inventories are held at several distribution centres, as well
as at over 1,200 retail stores.
Inventories are held at several distribution centres, as well
as at over 1,200 retail stores.
As detailed in Note 10 of the financial report, inventories are
As at 30 July 2022, the Group held $224.4 million in
as at over 1,200 retail stores.
As detailed in Note 10 of the financial report, inventories are
valued at the lower of cost and net realisable value.
As detailed in Note 10 of the financial report, inventories are
inventories.
valued at the lower of cost and net realisable value.
As detailed in Note 10 of the financial report, inventories are
valued at the lower of cost and net realisable value.
The cost of finished goods includes a proportion of
Inventories are held at several distribution centres, as well
valued at the lower of cost and net realisable value.
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight, handling,
The cost of finished goods includes a proportion of
as at over 1,200 retail stores.
purchasing department costs, as well as freight, handling,
The cost of finished goods includes a proportion of
and warehouse costs incurred to deliver the goods to the
purchasing department costs, as well as freight, handling,
As detailed in Note 10 of the financial report, inventories are
and warehouse costs incurred to deliver the goods to the
purchasing department costs, as well as freight, handling,
point of sale.
and warehouse costs incurred to deliver the goods to the
valued at the lower of cost and net realisable value.
point of sale.
and warehouse costs incurred to deliver the goods to the
point of sale.
Provisions are recorded for matters such as aged and slow-
The cost of finished goods includes a proportion of
point of sale.
Provisions are recorded for matters such as aged and slow-
moving inventory to ensure inventory is recorded at the
Provisions are recorded for matters such as aged and slow-
purchasing department costs, as well as freight, handling,
moving inventory to ensure inventory is recorded at the
Provisions are recorded for matters such as aged and slow-
lower of cost and net realisable value. This requires a level
moving inventory to ensure inventory is recorded at the
and warehouse costs incurred to deliver the goods to the
lower of cost and net realisable value. This requires a level
moving inventory to ensure inventory is recorded at the
of judgement with regard to changing consumer demands
lower of cost and net realisable value. This requires a level
point of sale.
of judgement with regard to changing consumer demands
lower of cost and net realisable value. This requires a level
and fashion trends. Such judgements include the Group’s
of judgement with regard to changing consumer demands
and fashion trends. Such judgements include the Group’s
Provisions are recorded for matters such as aged and slow-
of judgement with regard to changing consumer demands
expectations for future sales and inventory mark downs.
and fashion trends. Such judgements include the Group’s
expectations for future sales and inventory mark downs.
moving inventory to ensure inventory is recorded at the
and fashion trends. Such judgements include the Group’s
expectations for future sales and inventory mark downs.
A member firm of Ernst & Young Global Limited
lower of cost and net realisable value. This requires a level
expectations for future sales and inventory mark downs.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
of judgement with regard to changing consumer demands
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
and fashion trends. Such judgements include the Group’s
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
expectations for future sales and inventory mark downs.
Liability limited by a scheme approved under Professional Standards Legislation
Our valuation specialists were involved in the conduct of
these procedures where considered relevant.
How our audit addressed the key audit matter
How our audit addressed the key audit matter
How our audit addressed the key audit matter
Our audit procedures included the following:
How our audit addressed the key audit matter
Our audit procedures included the following:
Our audit procedures included the following:
► Assessed the application of valuation methodologies
Our audit procedures included the following:
► Assessed the application of valuation methodologies
applied for compliance with Australian Accounting
► Assessed the application of valuation methodologies
How our audit addressed the key audit matter
applied for compliance with Australian Accounting
► Assessed the application of valuation methodologies
Standards.
applied for compliance with Australian Accounting
Standards.
applied for compliance with Australian Accounting
Standards.
Our audit procedures included the following:
► Assessed the effectiveness of relevant controls over the
Standards.
► Assessed the effectiveness of relevant controls over the
determination of standard costs
► Assessed the effectiveness of relevant controls over the
► Assessed the application of valuation methodologies
determination of standard costs
► Assessed the effectiveness of relevant controls over the
determination of standard costs
applied for compliance with Australian Accounting
► Selected a sample of inventory lines and recalculated
determination of standard costs
► Selected a sample of inventory lines and recalculated
Standards.
costs based on supporting supplier invoices and
► Selected a sample of inventory lines and recalculated
costs based on supporting supplier invoices and
► Selected a sample of inventory lines and recalculated
assessed the allocation of costs absorbed from the
costs based on supporting supplier invoices and
► Assessed the effectiveness of relevant controls over the
assessed the allocation of costs absorbed from the
costs based on supporting supplier invoices and
purchasing department, freight and warehouse costs.
assessed the allocation of costs absorbed from the
determination of standard costs
purchasing department, freight and warehouse costs.
assessed the allocation of costs absorbed from the
purchasing department, freight and warehouse costs.
► Attended store and distribution centre inventory counts
► Selected a sample of inventory lines and recalculated
purchasing department, freight and warehouse costs.
► Attended store and distribution centre inventory counts
on a sample basis and assessed the stock counting
► Attended store and distribution centre inventory counts
costs based on supporting supplier invoices and
on a sample basis and assessed the stock counting
► Attended store and distribution centre inventory counts
process which addressed inventory quantity and
on a sample basis and assessed the stock counting
assessed the allocation of costs absorbed from the
process which addressed inventory quantity and
on a sample basis and assessed the stock counting
condition.
process which addressed inventory quantity and
purchasing department, freight and warehouse costs.
condition.
process which addressed inventory quantity and
condition.
► Attended store and distribution centre inventory counts
condition.
on a sample basis and assessed the stock counting
process which addressed inventory quantity and
condition.
Premier Investments Limited 88
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report continued
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
and completeness.
Ernst & Young
relation to the audit.
AASB 16 Leases
How our audit addressed the key audit matter
Accordingly, the existence and valuation of inventory was
considered to be a key audit matter.
relation to the audit;
under holdover;
under holdover;
under holdover;
under holdover;
backdated rent variations; and
under holdover;
backdated rent variations; and
backdated rent variations; and
backdated rent variations; and
backdated rent variations; and
under holdover;
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Why significant
Limit ed
Why significant
Why significant
Accordingly, the existence and valuation of inventory was
Why significant
Accordingly, the existence and valuation of inventory was
considered to be a key audit matter.
Accordingly, the existence and valuation of inventory was
Why significant
considered to be a key audit matter.
Accordingly, the existence and valuation of inventory was
considered to be a key audit matter.
Accordingly, the existence and valuation of inventory was
considered to be a key audit matter.
considered to be a key audit matter.
Why significant
How our audit addressed the key audit matter
How our audit addressed the key audit matter
How our audit addressed the key audit matter
► Assessed the basis for inventory provisions, including
How our audit addressed the key audit matter
► Assessed the basis for inventory provisions, including
the rationale for recording specific provisions. In doing
► Assessed the basis for inventory provisions, including
How our audit addressed the key audit matter
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
the rationale for recording specific provisions. In doing
► Assessed the basis for inventory provisions, including
so we examined the ageing profile of inventory,
the rationale for recording specific provisions. In doing
► Assessed the basis for inventory provisions, including
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
so we examined the ageing profile of inventory,
the rationale for recording specific provisions. In doing
considered how the Group identified specific slow-
so we examined the ageing profile of inventory,
the rationale for recording specific provisions. In doing
considered how the Group identified specific slow-
so we examined the ageing profile of inventory,
moving inventories, assessed future selling prices and
considered how the Group identified specific slow-
so we examined the ageing profile of inventory,
moving inventories, assessed future selling prices and
considered how the Group identified specific slow-
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
► Assessed the basis for inventory provisions, including
historical loss rates.
moving inventories, assessed future selling prices and
considered how the Group identified specific slow-
historical loss rates.
moving inventories, assessed future selling prices and
the rationale for recording specific provisions. In doing
historical loss rates.
moving inventories, assessed future selling prices and
► Tested the slow-moving inventory reports for accuracy
historical loss rates.
so we examined the ageing profile of inventory,
► Tested the slow-moving inventory reports for accuracy
historical loss rates.
and completeness.
► Tested the slow-moving inventory reports for accuracy
considered how the Group identified specific slow-
and completeness.
► Tested the slow-moving inventory reports for accuracy
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
and completeness.
► Tested the slow-moving inventory reports for accuracy
Considered the completeness of inventory provisions by
moving inventories, assessed future selling prices and
and completeness.
Considered the completeness of inventory provisions by
identifying mark down sales at or subsequent to year end.
and completeness.
Considered the completeness of inventory provisions by
historical loss rates.
identifying mark down sales at or subsequent to year end.
Considered the completeness of inventory provisions by
c. No non-audit services provided that contravene any applicable code of professional conduct in
identifying mark down sales at or subsequent to year end.
Considered the completeness of inventory provisions by
► Tested the slow-moving inventory reports for accuracy
identifying mark down sales at or subsequent to year end.
identifying mark down sales at or subsequent to year end.
AASB 16 Leases
AASB 16 Leases
AASB 16 Leases
AASB 16 Leases
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
AASB 16 Leases
Why significant
financial year.
Why significant
Why significant
The Group holds a significant volume of leases by number
Why significant
The Group holds a significant volume of leases by number
Why significant
and value over retail sites as a lessee, which makes the
The Group holds a significant volume of leases by number
and value over retail sites as a lessee, which makes the
The Group holds a significant volume of leases by number
impact of this standard significant to the financial
and value over retail sites as a lessee, which makes the
The Group holds a significant volume of leases by number
impact of this standard significant to the financial
and value over retail sites as a lessee, which makes the
statements of the Group.
impact of this standard significant to the financial
and value over retail sites as a lessee, which makes the
Why significant
statements of the Group.
impact of this standard significant to the financial
statements of the Group.
The recognition and measurement of remeasured lease
impact of this standard significant to the financial
statements of the Group.
The recognition and measurement of remeasured lease
The Group holds a significant volume of leases by number
agreements executed during the year in accordance with
The recognition and measurement of remeasured lease
statements of the Group.
agreements executed during the year in accordance with
The recognition and measurement of remeasured lease
and value over retail sites as a lessee, which makes the
AASB 16 Leases (“AASB 16”) are dependent on a number of
agreements executed during the year in accordance with
The recognition and measurement of remeasured lease
AASB 16 Leases (“AASB 16”) are dependent on a number of
agreements executed during the year in accordance with
impact of this standard significant to the financial
key judgements and estimates. These include:
AASB 16 Leases (“AASB 16”) are dependent on a number of
agreements executed during the year in accordance with
key judgements and estimates. These include:
AASB 16 Leases (“AASB 16”) are dependent on a number of
statements of the Group.
key judgements and estimates. These include:
► The treatment of the option to extend the lease term
AASB 16 Leases (“AASB 16”) are dependent on a number of
key judgements and estimates. These include:
► The treatment of the option to extend the lease term
The recognition and measurement of remeasured lease
► The treatment of the option to extend the lease term
key judgements and estimates. These include:
► The treatment of the option to extend the lease term
agreements executed during the year in accordance with
► The impact of COVID-19 rental abatements and
► The treatment of the option to extend the lease term
AASB 16 Leases (“AASB 16”) are dependent on a number of
► The impact of COVID-19 rental abatements and
► The impact of COVID-19 rental abatements and
key judgements and estimates. These include:
► The impact of COVID-19 rental abatements and
► The calculation of incremental borrowing rates.
► The impact of COVID-19 rental abatements and
► The treatment of the option to extend the lease term
► The calculation of incremental borrowing rates.
► The calculation of incremental borrowing rates.
Accordingly, given the significant judgements and estimates
► The calculation of incremental borrowing rates.
Accordingly, given the significant judgements and estimates
involved in assessing the treatment of lease
Accordingly, given the significant judgements and estimates
► The calculation of incremental borrowing rates.
► The impact of COVID-19 rental abatements and
involved in assessing the treatment of lease
Accordingly, given the significant judgements and estimates
remeasurements we considered this a key audit matter.
involved in assessing the treatment of lease
Accordingly, given the significant judgements and estimates
remeasurements we considered this a key audit matter.
involved in assessing the treatment of lease
remeasurements we considered this a key audit matter.
involved in assessing the treatment of lease
remeasurements we considered this a key audit matter.
► The calculation of incremental borrowing rates.
remeasurements we considered this a key audit matter.
Accordingly, given the significant judgements and estimates
involved in assessing the treatment of lease
remeasurements we considered this a key audit matter.
Considered the completeness of inventory provisions by
identifying mark down sales at or subsequent to year end.
How our audit addressed the key audit matter
How our audit addressed the key audit matter
How our audit addressed the key audit matter
Our audit procedures included the following:
How our audit addressed the key audit matter
Our audit procedures included the following:
How our audit addressed the key audit matter
Our audit procedures included the following:
► Assessed the mathematical accuracy of the Group’s
Our audit procedures included the following:
► Assessed the mathematical accuracy of the Group’s
AASB 16 lease calculation model.
► Assessed the mathematical accuracy of the Group’s
Our audit procedures included the following:
AASB 16 lease calculation model.
► Assessed the mathematical accuracy of the Group’s
AASB 16 lease calculation model.
How our audit addressed the key audit matter
► For a sample of leases, agreed the Group’s inputs in the
► Assessed the mathematical accuracy of the Group’s
AASB 16 lease calculation model.
► For a sample of leases, agreed the Group’s inputs in the
AASB 16 lease calculation model in relation to those
► For a sample of leases, agreed the Group’s inputs in the
AASB 16 lease calculation model.
Our audit procedures included the following:
AASB 16 lease calculation model in relation to those
► For a sample of leases, agreed the Group’s inputs in the
leases, such as, key dates, fixed and variable rent
AASB 16 lease calculation model in relation to those
► For a sample of leases, agreed the Group’s inputs in the
leases, such as, key dates, fixed and variable rent
AASB 16 lease calculation model in relation to those
► Assessed the mathematical accuracy of the Group’s
payments, renewal options and incentives, to the
leases, such as, key dates, fixed and variable rent
AASB 16 lease calculation model in relation to those
payments, renewal options and incentives, to the
leases, such as, key dates, fixed and variable rent
AASB 16 lease calculation model.
relevant terms of the underlying signed lease
payments, renewal options and incentives, to the
leases, such as, key dates, fixed and variable rent
relevant terms of the underlying signed lease
payments, renewal options and incentives, to the
agreements.
relevant terms of the underlying signed lease
► For a sample of leases, agreed the Group’s inputs in the
payments, renewal options and incentives, to the
agreements.
relevant terms of the underlying signed lease
agreements.
AASB 16 lease calculation model in relation to those
► Assessed the accounting treatment applied to
relevant terms of the underlying signed lease
agreements.
► Assessed the accounting treatment applied to
leases, such as, key dates, fixed and variable rent
renegotiated lease agreements during the year,
► Assessed the accounting treatment applied to
agreements.
renegotiated lease agreements during the year,
► Assessed the accounting treatment applied to
payments, renewal options and incentives, to the
including the impact of abatements and backdated rental
renegotiated lease agreements during the year,
► Assessed the accounting treatment applied to
including the impact of abatements and backdated rental
renegotiated lease agreements during the year,
relevant terms of the underlying signed lease
savings on the lease balances recognised.
including the impact of abatements and backdated rental
renegotiated lease agreements during the year,
savings on the lease balances recognised.
including the impact of abatements and backdated rental
agreements.
savings on the lease balances recognised.
► Considered the Group’s assumptions in relation to the
including the impact of abatements and backdated rental
savings on the lease balances recognised.
► Considered the Group’s assumptions in relation to the
► Assessed the accounting treatment applied to
treatment of the option to extend and lease term under
► Considered the Group’s assumptions in relation to the
savings on the lease balances recognised.
treatment of the option to extend and lease term under
► Considered the Group’s assumptions in relation to the
renegotiated lease agreements during the year,
holdover.
treatment of the option to extend and lease term under
► Considered the Group’s assumptions in relation to the
holdover.
treatment of the option to extend and lease term under
including the impact of abatements and backdated rental
holdover.
► Assessed the incremental borrowing rates used to
treatment of the option to extend and lease term under
holdover.
savings on the lease balances recognised.
► Assessed the incremental borrowing rates used to
discount future lease payments to present value.
► Assessed the incremental borrowing rates used to
holdover.
discount future lease payments to present value.
► Assessed the incremental borrowing rates used to
► Considered the Group’s assumptions in relation to the
discount future lease payments to present value.
► Assessed the adequacy of the disclosures included in the
► Assessed the incremental borrowing rates used to
discount future lease payments to present value.
treatment of the option to extend and lease term under
► Assessed the adequacy of the disclosures included in the
financial report.
► Assessed the adequacy of the disclosures included in the
discount future lease payments to present value.
holdover.
financial report.
► Assessed the adequacy of the disclosures included in the
financial report.
We assessed the Group’s calculations of the financial impact
► Assessed the adequacy of the disclosures included in the
financial report.
► Assessed the incremental borrowing rates used to
We assessed the Group’s calculations of the financial impact
of the standard and the accounting policies, estimates and
We assessed the Group’s calculations of the financial impact
financial report.
discount future lease payments to present value.
of the standard and the accounting policies, estimates and
We assessed the Group’s calculations of the financial impact
judgements made in respect of the Group’s right of use
of the standard and the accounting policies, estimates and
We assessed the Group’s calculations of the financial impact
judgements made in respect of the Group’s right of use
of the standard and the accounting policies, estimates and
► Assessed the adequacy of the disclosures included in the
assets and lease liabilities, as well as related depreciation
judgements made in respect of the Group’s right of use
of the standard and the accounting policies, estimates and
assets and lease liabilities, as well as related depreciation
judgements made in respect of the Group’s right of use
and interest expense recognised through the Consolidated
assets and lease liabilities, as well as related depreciation
judgements made in respect of the Group’s right of use
and interest expense recognised through the Consolidated
assets and lease liabilities, as well as related depreciation
Statement of Comprehensive Income.
and interest expense recognised through the Consolidated
We assessed the Group’s calculations of the financial impact
assets and lease liabilities, as well as related depreciation
Statement of Comprehensive Income.
and interest expense recognised through the Consolidated
Statement of Comprehensive Income.
of the standard and the accounting policies, estimates and
and interest expense recognised through the Consolidated
Statement of Comprehensive Income.
judgements made in respect of the Group’s right of use
Statement of Comprehensive Income.
assets and lease liabilities, as well as related depreciation
and interest expense recognised through the Consolidated
Statement of Comprehensive Income.
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
The directors are responsible for the other information. The other information comprises the
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2022 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2022 annual report other than the financial report and our
information included in the Company’s 2022 annual report other than the financial report and our
The directors are responsible for the other information. The other information comprises the
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
Information other than the financial report and auditor’s report thereon
information included in the Company’s 2022 annual report other than the financial report and our
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
information included in the Company’s 2022 annual report other than the financial report and our
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
report after the date of this auditor’s report.
The directors are responsible for the other information. The other information comprises the
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
report after the date of this auditor’s report.
report after the date of this auditor’s report.
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
information included in the Company’s 2022 annual report other than the financial report and our
report after the date of this auditor’s report.
report after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and we do not and will not
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
Our opinion on the financial report does not cover the other information and we do not and will not
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
Our opinion on the financial report does not cover the other information and we do not and will not
and our related assurance opinion.
report after the date of this auditor’s report.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
and our related assurance opinion.
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
A member firm of Ernst & Young Global Limited
and our related assurance opinion.
Our opinion on the financial report does not cover the other information and we do not and will not
Liability limited by a scheme approved under Professional Standards Legislat ion
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
A member firm of Ernst & Young Global Limited
89
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
and our related assurance opinion.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Glenn Carmody
Partner
3 October 2022
backdated rent variations; and
financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Annual Report 2022 Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Limit ed
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
In connection with our audit of the financial report, our responsibility is to read the other information
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
and, in doing so, consider whether the other information is materially inconsistent with the financial
In connection with our audit of the financial report, our responsibility is to read the other information
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
and, in doing so, consider whether the other information is materially inconsistent with the financial
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
If, based on the work we have performed on the other information obtained prior to the date of this
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
required to report that fact. We have nothing to report in this regard.
auditor’s report, 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.
c. No non-audit services provided that contravene any applicable code of professional conduct in
Responsibilities of the directors for the financial report
relation to the audit;
relation to the audit.
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
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
The directors of the Company are responsible for the preparation of the financial report that gives a
financial year.
and for such internal control as the directors determine is necessary to enable the preparation of the
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
financial report that gives a true and fair view and is free from material misstatement, whether due to
and for such internal control as the directors determine is necessary to enable the preparation of the
fraud or error.
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
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
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
Ernst & Young
operations, or have no realistic alternative but to do so.
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
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
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
audit conducted in accordance with the Australian Auditing Standards will always detect a material
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
audit conducted in accordance with the Australian Auditing Standards will always detect a material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
decisions of users taken on the basis of this financial report.
if, individually or in the aggregate, they could reasonably be expected to influence the economic
Glenn Carmody
decisions of users taken on the basis of this financial report.
Partner
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
3 October 2022
judgement and maintain professional scepticism throughout the audit. We also:
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement 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
► Identify and assess the risks of material misstatement of the financial report, whether due to
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
detecting a material misstatement resulting from fraud is higher than for one resulting from
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
detecting a material misstatement resulting from fraud is higher than for one resulting from
override of internal control.
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
► 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.
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.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
Premier Investments Limited 90
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Independent Auditor’s Report continued
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Limit ed
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
► 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
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
relation to the audit;
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.
relation to the audit.
c. No non-audit services provided that contravene any applicable code of professional conduct in
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
► Evaluate the overall presentation, structure and content of the financial report, including the
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
disclosures, and whether the financial report represents the underlying transactions and events
financial year.
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.
Ernst & Young
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
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
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
Glenn Carmody
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
Partner
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
3 October 2022
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 pages 13 to 32 of the directors’ report for the
year ended 30 July 2022.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended
30 July 2022, complies with section 300A of the Corporations Act 2001.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
91
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Annual Report 2022 Ernst & Young
8 Exhibit ion Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Audit or’s independence declarat ion t o t he direct ors of Premier Invest ment s
Limit ed
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
year ended 30 July 2022, I declare to the best of my knowledge and belief, there have been:
Responsibilities
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
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
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
accordance with Australian Auditing Standards.
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit;
relation to the audit.
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
financial year.
Ernst & Young
Ernst & Young
Glenn Carmody
Partner
Melbourne, Australia
3 October 2022
Glenn Carmody
Partner
3 October 2022
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislat ion
Premier Investments Limited 92
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ASX ADDITIONAL SHAREHOLDER INFORMATION
ASX Additional Information
AS AT 26 SEPTEMBER 2022
As at 26 September 2022
TWENTY LARGEST SHAREHOLDERS
NAME
TOTAL
% IC
RANK
CENTURY PLAZA INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
METREPARK PTY LTD
SL SUPERANNUATION NO 1 PTY LTD
51,569,400
26,422,033
22,908,988
12,019,969
8,235,331
4,437,699
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3,605,685
BNP PARIBAS NOMS PTY LTD
NATIONAL NOMINEES LIMITED
LINFOX SHARE INVESTMENT PTY LTD
BNP PARIBAS NOMINEES PTY LTD
ARGO INVESTMENTS LIMITED
UBS NOMINEES PTY LTD
WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED
MR CON ZEMPILAS
MR MARK MCINNES
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
GEOMAR SUPERANNUATION PTY LTD
CITICORP NOMINEES PTY LIMITED
DAVID ALAN BULL
TOTAL FOR TOP 20:
SUBSTANTIAL SHAREHOLDERS
NAME
32.44%
16.62%
14.41%
7.56%
5.18%
2.79%
2.27%
2.12%
1.83%
1.62%
1.19%
0.79%
0.54%
0.37%
0.30%
0.24%
0.17%
0.16%
0.15%
0.13%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
3,365,480
2,908,961
2,577,014
1,899,729
1,250,000
863,094
590,321
470,000
386,058
263,954
250,000
241,086
201,472
144,466,274
90.86%
TOTAL UNITS
% IC
58,552,420
42.43%
12,381,525
10,881,477
7.80%
6.84%
CENTURY PLAZA INVESTMENTS PTY LTD AND ASSOCIATES
AIRLIE FUNDS MANAGEMENT PTY LTD ON ITS OWN BEHALF AND ON BEHALF OF MAGELLAN
FINANCIAL GROUP LIMITED AND RELATED BODIES CORPORATE
PERPETUAL LIMITED AND ITS SUBSIDIARIES
DISTRIBUTION OF EQUITY SHAREHOLDERS
Holders
1
TO
1,000
6,574
1,001
TO
5,000
2,293
5,001
TO
10,000
264
10,001
TO
100,000
177
100,001
TO
(MAX)
26
TOTAL
9,334
Ordinary Fully Paid Shares
2,344,781
5,120,692
1,953,071
4,250,630
145,323,862
158,993,036
The number of investors holding less than a marketable parcel of 25 securities ($20.41 on 26 September 2022)
is 330 and they hold 2,396 securities.
VOTING RIGHTS
All ordinary shares carry one vote per share without restriction.
93
Annual Report 2022 NAME
TOTAL
% IC
RANK
SL SUPERANNUATION NO 1 PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3,605,685
ASX ADDITIONAL SHAREHOLDER INFORMATION
AS AT 26 SEPTEMBER 2022
TWENTY LARGEST SHAREHOLDERS
CENTURY PLAZA INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
METREPARK PTY LTD
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
NATIONAL NOMINEES LIMITED
LINFOX SHARE INVESTMENT PTY LTD
ARGO INVESTMENTS LIMITED
UBS NOMINEES PTY LTD
MR CON ZEMPILAS
MR MARK MCINNES
WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
GEOMAR SUPERANNUATION PTY LTD
CITICORP NOMINEES PTY LIMITED
DAVID ALAN BULL
TOTAL FOR TOP 20:
SUBSTANTIAL SHAREHOLDERS
NAME
51,569,400
26,422,033
22,908,988
12,019,969
8,235,331
4,437,699
3,365,480
2,908,961
2,577,014
1,899,729
1,250,000
863,094
590,321
470,000
386,058
263,954
250,000
241,086
201,472
32.44%
16.62%
14.41%
7.56%
5.18%
2.79%
2.27%
2.12%
1.83%
1.62%
1.19%
0.79%
0.54%
0.37%
0.30%
0.24%
0.17%
0.16%
0.15%
0.13%
144,466,274
90.86%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
TOTAL UNITS
% IC
58,552,420
42.43%
12,381,525
10,881,477
7.80%
6.84%
CENTURY PLAZA INVESTMENTS PTY LTD AND ASSOCIATES
AIRLIE FUNDS MANAGEMENT PTY LTD ON ITS OWN BEHALF AND ON BEHALF OF MAGELLAN
FINANCIAL GROUP LIMITED AND RELATED BODIES CORPORATE
PERPETUAL LIMITED AND ITS SUBSIDIARIES
DISTRIBUTION OF EQUITY SHAREHOLDERS
Holders
1
TO
1,000
6,574
1,001
TO
5,000
2,293
5,001
TO
10,000
264
10,001
TO
100,000
177
100,001
TO
(MAX)
26
TOTAL
9,334
Ordinary Fully Paid Shares
2,344,781
5,120,692
1,953,071
4,250,630
145,323,862
158,993,036
The number of investors holding less than a marketable parcel of 25 securities ($20.41 on 26 September 2022)
is 330 and they hold 2,396 securities.
VOTING RIGHTS
All ordinary shares carry one vote per share without restriction.
Premier Investments Limited 94
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
WEBSITE
www.premierinvestments.com.au
EMAIL
info@premierinvestments.com.au
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)
Ms. Sylvia Falzon
Ms. Sally Herman
Mr. Henry D. Lanzer AM
Mr. Terrence L. McCartney
Mr. Mark McInnes (resigned: 19 August 2021)
Mr. Michael R.I. McLeod
Mr. Richard Murray (appointed: 3 December 2021)
COMPANY SECRETARY
Ms. Marinda Meyer
REGISTERED OFFICE
Level 7
417 St Kilda Road
Melbourne Victoria 3004
Telephone (03) 9650 6500
Facsimile (03) 9654 6665
AUDITOR
Ernst & Young
8 Exhibition Street
Melbourne Victoria 3000
95
Annual Report 2022 Premier Investments Limited 96
97
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