PAS : FY2019 Half Year Results Presentation

• • Sales up 9.9% to $143.0 million

  •  Online sales up 11.0%

  •  Wholesale sales up 32.1%

  •  Retail sales down 8.0%

• • Online sales grew 11.0% on top of the 25.5% growth achieved in H1 FY2018.

• • Successful delivery of c.$20m of new contract wins in Designworks announced during FY2018 drove a strong and sustainable wholesale sales result.

• • A decline in like-for-like Retail sales due to the continuation of challenging trading conditions in the current retail environment. This impact was felt most notably by reduced concession sales experienced in Department Stores.

• • Gross profit margin of 50.3% was reflective of the significant increase in the Group's wholesale v retail customer mix.

• • CODB decrease of 4.0% of sales due to tight cost control, economies of scale achieved through Designworks expansion and strategic portfolio rationalisation.

• • Underlying EBITDA1 of $6.7 million, down 28.4% on H1 FY2018.

1 Underlying EBITDA is a non-IFRS unaudited measure defined for the purpose of this document as earnings before interest, tax, depreciation, amortisation, non-recurring income/expenditure and certain non-cash items such as share based payment expenses recognised in accordance with AASB 2 Share-based payment.

Financial Summary

H1 FY2019	H1 FY2018
Total Revenue	$143.7 million	$130.3 million
Underlying EBITDA	$6.7 million	$9.3 million
Statutory EBITDA	$5.7 million	$8.4 million
NPAT	$1.3 million	$3.0 million

• • Continued strong growth in loyalty programs with total membership up YoY 333,000 (40%) to 1,169,000 and now representing 78% of total Retail sales.

• • The Group continued its strategic retail portfolio rationalisation which culminated in the closure of 25 marginal or unprofitable retail stores since 31 December 2017.

• • Whilst we have tempered our new store roll-out program in line with our strategy, we have continued to open new stores in targeted locations, with 3 new stores opening during the period in targeted and strategic locations.

• • Whilst the success of the Designworks wholesale business in growing sales by 51% resulted in an increased working capital draw, the Groups total working capital as a % sales decreased by 40 bps reflecting strong inventory management.

• • Implementation of international swimwear infrastructure including dedicated sales team based in the US.

Operational Summary

Operational Highlights - Online & Customer Loyalty

• • Online sales continued to trend upwards now representing 16.9% of the Group's total retail sales in H1 FY2019, up from 14.0% in H1 FY2018.

• • Total online sales growth of 11.0% was achieved in addition to the 25.5% in H1 FY2018.

• • Online revenue from email campaigns has increased by 45% through use of our new Customer Data Platform.

• • Targeted social advertising achieved an 11x ROI across all campaigns.

• • Since launching the new Review Loyalty App in September 2018 (including the first time launch on Android), active user numbers have increased by 33% and ATV has increased by 3% driving a 75% increase in revenue compared to H1 FY2018.

• • Our VIP Dress Circle membership for our most loyal members has grown by 26%, with an average monthly active rate of 78% contributing 4.7% of total loyalty sales.

• • The strong take-up of Myer/DJ Dropship channels continued.

• • A new Black Pepper Loyalty program was launched in December 2018 assisting to drive total Loyalty membership up to 1,169,000 members - an increase of 24% since June 2018 and 40% since December 2017.

• • The Review, Black Pepper and Yarra Trail brands have successfully been migrated onto a new email platform resulting in annual cost reductions and simpler integration with existing systems whilst delivering increased visibility and control.

• • The Marco Polo website was refreshed and supported by further investment in digital marketing.

• • A number of brands were launched on local marketplaces across eBay, Catch Group and Amazon, with more planned to go live in H2 FY2019 including a brand new Russell Athletic E-Commerce site that will be launched in H2 FY2019.

Wholesale, Design & Distribution

H1 FY2019 Wholesale Sales up $18.6m (32.1%) to $76.4 million

Designworks

• • The increase in wholesale sales reflects the successful execution and strong customer take-up of new Designworks contracts and sustained increases in previous contracts including:

  •  Successful execution and delivery of the new Coles Women's Mix range;

  •  A full year of Lonsdale in Target;

  •  The highly successful relaunch of our Suburban brand in Target, which has performed ahead of expectations;

  •  Continued growth in Sports Equipment following new licence agreement with Dunlop and The Australian Open;

  •  Continued growth in Footwear, including the successful launch of Lonsdale footwear in Target; and

  •  Relaunch of Russell Athletic in January 2019 with strong early orders received.

• • With an encouraging pipeline of orders going forward, Designworks is well positioned for continued sustainable growth in H2 FY2019 and beyond.

Other Wholesale

• • The strategic closure of Independent Wholesale and transition to Retail within Black Pepper has begun successfully with final Independent orders now delivered.

• • The Group has invested further in infrastructure to support the international growth of JETS. Whilst early signs are encouraging, realising the full benefit of this ongoing investment in new markets will take longer than originally anticipated.