Myer : Half-Year Results - Release and Presentation

10 March 2022

H A L F Y E A R 2 0 2 2 R E S U L T S

only	CUSTOMER FIRST PLAN MOMENTUM CONTINUES
• STRONG TOTAL SALES1 GROWTH OF 8.5%
use
• GROUP ONLINE2 SALES CONTINUE TO OUTPERFORM, INCREASING 47.5%
• NPAT OF $32.3 MILLION, 55.2% HIGHER THAN PRIOR YEAR ADJUSTED3 FOR
JOBKEEPER
• NET CASH UP $16 MILLION TO $217 MILLION
• FULLY FRANKED DIVIDEND 1.5 CENTS PER SHARE

1H22 RESULTS (post-AASB 16) for the 26 weeks to 29 January 2022, compared to 1H21:

personal	•	Dividend reinstated - first dividend since FY17 final dividend
	•	Total sales1 growth of 8.5% to $1,517.4 million; comparable store sales4 growth of 17.8%
	• Group online2 sales growth of 47.5% to $424.1 million, now representing 27.9% of total sales
	• Operating gross profit growth of 7.8% to $582.2 million; margin decreased by 24 basis points to 38.4%
		reflecting COVID-related supply chain costs and promotional activity
	• Net Profit after tax3 of $32.3 million, an increase of $11.5 million or 55.2% if JobKeeper excluded from
		prior year. Statutory NPAT $32.3 million, down from $43.0 million
	• Balance sheet is strong with improving net cash position
Commenting on the results, Myer's CEO, John King, said:
For

"The half year results we have announced today demonstrate the strength and resilience of the business providing continued momentum for future growth.

"The combination of our online platform and store network performed well in navigating the challenges faced during the period including disruptions caused by government-mandated lockdowns to mid-October, the emergence of Omicron in late December, and the mitigation of major supply chain disruption and staffing availability in early 2022.

"Myer will pay a dividend for the first time in four years, demonstrating our confidence in the momentum being built as we move into the second half, with a return to sales growth in the first five weeks of second half with trade up 15.2% and a strong platform of future initiatives that are yet to be delivered as part of the Customer First Plan."

Myer Holdings Limited ABN 14 119 085 602

Level 7, 1000 La Trobe Street, Docklands VIC 3008

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onlyCustomer First Plan Update:

Sales growth despite lockdown headwinds

• Strong total sales1 growth of 8.5% despite 23% of in-store trading days5 in lockdown
• Sales in the lead up to Christmas, when not affected by lockdowns, delivered 17.1% growth for the two months ended 1 January 2022 over the corresponding period ended 26 December 2020

John King said: "We have delivered first half sales growth of 8.5% in challenging trading conditions in terms of useboth store closures and the impact of Omicron in January with very strong growth in the lead up to Christmas

when not affected by lockdowns."

Online continues to outperform

• Our online business is delivering exceptional growth, with sales increasing 47.5% to $424.1 million for the half
• Group online2 sales now represent 27.9% of all Myer sales, well on the way to our aspiration of $1 billion in annual sales in the near term
• It is a significant channel with substantial value and untapped potential

John King said: "Our online business has grown nearly fourfold in the past four years and is now one of the biggest online retail businesses in the country. In key categories, our growth is significantly outpacing competitors, both multichannel retailers and online pure plays."

Customer First Plan momentum

personal	•	ongoing supply chain disruption and capitalise on improving consumer sentiment
	Delivered strong growth and online scale
	• MYER one significant growth in engagement, now at 70.3% tag rate of all purchases, 9% growth in
		active members since 1H20, with 3.5 million shopping in last 12 months
	• Balance sheet strength, cash up, new Asset Based Loan facility providing flexible platform for the
		future
For	• Whilst inventory is up from an abnormally low position at 1H21, we are well placed to manage the

John King said: "We are sharply focused on our plans for the future built on the key growth drivers of online sales, the value of our MYER one program and the delivery of our Customer First Plan - all of which are geared to creating improved value for shareholders."

Current trade update

• In the first five trading weeks of the second half, we have seen a strong return to growth in stores and online
• Myer Department Store sales are up 15.2%, with Stores up 9.3% and Online up 48.6%

John King said: "Despite the initial impact of Omicron in early January, we have returned to a growth trajectory

• delivering 15.2% sales growth in the first five weeks of trade in the second half across both stores and online."

Myer Holdings Limited ABN 14 119 085 602

Level 7, 1000 La Trobe Street, Docklands VIC 3008

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onlyInvestor and Analyst briefing

Myer's CEO and Managing Director John King and CFO Nigel Chadwick will host a teleconference for investors and analysts today at 9.30am (Melbourne time). Participants can register for the conference by clicking here. Attendees will need to have the attached slides available for the call. An archive of the briefing will be available afterwards at: www.myer.com.au/investor

useFootnotes

1 Revenue from sale of goods excluding concession sales and sales revenue deferred under customer loyalty program was $1,205.4 million (1H21: $1,127.1 million) 2 Group online sales includes sass & bide and Marcs and David Lawrence. Excludes sales via in-store iPads

3 Excluding implementation costs and individually significant items, and after the removal of the net JobKeeper benefit of $22 million post tax ($32 million pre tax) in 1H21

4 In addition to the historical definition of comparable sales, stores closed during COVID-19 have been removed from both the current and previous year to obtain comparable sales. Where a store was closed mid-week, the week in which the store closed has been removed. On reopening, the store has been included from the firstfull week of trade

5 Department Stores only

personalFor enquiries please contact:

Martin Barr, Corporate Affairs & Communications, [phone]

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Myer Holdings Limited ABN 14 119 085 602

Level 7, 1000 La Trobe Street, Docklands VIC 3008

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For personal use only

MYER HOLDINGS LTD HALF YEAR

2022 RESULTS

T O 2 9 J A N U A R Y 2 0 2 2

JOHN KING	NIGEL CHADWICK
Chief Executive Officer	Chief Financial Officer

For personal use only

IMPORTANT INFORMATION

The information in this document is general only and does not purport to be complete. It should be read in conjunction with Myer's other periodic and continuous disclosure announcements. Investors or potential investors should not rely on the information provided as advice for investment purposes, and it does not take into account their objectives, financial situation or needs.

Investors and potential investors should make their own assessment and take independent professional advice in relation to the information and any action taken on the basis of the information.

Myer, its related bodies corporate, officers and employees do not warrant the accuracy or reliability of the information in this document and do not accept responsibility or liability arising in connection with the use of or reliance on this document.

This document may contain "forward-looking statements". Forward-looking statements can generally be identified by the use of words such as "may", "will", "expect", "intend", "plan", "estimate", "project", "should", "could", "would", "target", "aim", "forecast", "anticipate", "believe", "continue", "objectives", "outlook", "guidance" or other similar expressions, as well as indications of and guidance on future earnings and financial position and performance.

Forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are outside Myer's control, and which may cause actual

results or performance to differ materially from those expressed or implied in this document. As such, undue reliance should not be placed on any forward- looking statements.

Subject to law, Myer assumes no obligation to update, review or revise any information contained in this document, whether as a result of new information, future events or otherwise. Past performance cannot be relied upon as a guide to future performance.

Myer uses certain measures to manage and report on

its business that are not recognised under Australian Accounting Standards (non-IFRS information), including, without limitation, total sales, OGP margin, CODB, Adjusted CODB, EBITDA, Adjusted EBITDA, Adjusted EBIT, Adjusted NPAT, total funds employed, net cash, working capital, operating cash flow and free cash flow. These measures are used internally by management to assess the performance of Myer's business, make decisions on the allocation of Myer's resources and assess operational management.

Non-IFRS information has not been subject to audit or review, and should not be considered an indication of, or an alternative to, an IFRS measure of profitability, financial performance or liquidity.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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