Specialty Fashion : 23/08/16 - FY16 Investor Presentation

F U L L Y E A R R E S U L T S

IM P O R TANT NO TIC E & D IS C L AIM E R

This presentation has been prepared by Specialty Fashion Group Limited (the "Company"). It contains general background information about the Company's activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.

The Company has prepared this presentation based on information available to it, including information derived from publicly available sources that have not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness or reliability of the information, opinions and conclusions expressed.

Any statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. This presentation should not be relied upon as a recommendation or forecast by the Company. To the maximum extent permitted by law, none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

2

AGE NDA

1. Business Overview

2. Key Growth Priorities

3. Financial Analysis

4. Outlook

5. Appendices

3

BUSINESS OVERVIEW | HIGHLIGHTS

• Solid performance across key metrics:

  • Fifth consecutive period of Comparable Stores Growth in sales. Up 4.4%.

  • Revenue growth of 4.4%.

  • Store portfolio: 1,078 stores plus 14 concession locations in Myer (a further 10 Myer concession locations opened in July 2016.)

  • Gross margin lower due to:

    • strengthening USD on cost of purchases

    • clearance activity to exit Winter 2016 product following extended unseasonably warm winter weather

  • Costs of doing business ("CODB"), as percentage of sales, improved to 52.8%, lower than PCP.

  • NPAT improved by 51.1%.

  • EPS increased by 52.2%.

  • Underlying EBITDA increased by 23.1%.

• Rivers' underlying EBITDA losses more than halved on PCP.

• City Chic delivers significant growth internationally.

• Online sales up 42.2% to $72.8m.

4