Please use the attached FinSAS Excel document to input data obtained from the attached financial reports for Breville. You are required to complete the 'Input' and 'Source of Input' tabs only.

To start, go to the 'Input' tab and enter 2018 for most recent year available. Enter 4 for the amount of years on the income statement and on the balance sheet.

Now go to your financial reports to obtain the information to enter in the worksheet. Please note only cells that have blue text may be required to be updated (some lines in the financials will be 0, therefore you don't have to do anything).

E.g. for net sales, look at the income statement. 2018 has total revenue of 652,348, referring to note 3A. Go to note 3A in the financials and you will see that sale of goods total 652,348 and that there is no other revenue, therefore you put 652,348 in the cell. On the 'Source of Input' tab, you will write Note 3A next to account line, to refer where the information was obtained from.

Annual report 2016 Breville Group Limited Annual report 2016 Contents: Chairman's review 1 CEO's review 3 Strategy and brands 5 Financial report 13 Shareholder information 90 Company information 92 Annual general meeting: Monday 21 November 2016 at 10am Ground Floor, Suite 2, 170-180 Bourke Rd, Alexandria NSW 2015. (front cover) the Control Freak where precision meets control Chairman's review \"The transformation into a scalable, global, innovation-driven product company has begun\" During the 2016 nancial year, the Breville Group delivered a result with growth in both Group revenue and EBIT. This result was accomplished whilst simultaneously executing the Group's transformation program in a challenging and highly competitive global market. Group revenues increased by 9.4% on the prior year to $576.6m, underpinned by the continued growth from Breville designed and developed products. EBIT for the year nished at $73.7m, being 5.9% higher than the prior year and net prot after tax increased by 7.5% to $50.2m. North American revenue, in AUD, increased by 24.0% to $251.8m, with growth coming from new product releases and sustained performance of existing products in the key beverage and cooking categories. In ANZ, revenues for the year of $242.6m were marginally lower than the prior year. Pleasingly ANZ still achieved increases in revenues from Breville designed and developed products, but these increases were insufcient to offset the decline in revenues from the highly competitive and price driven 'sourced products' segment. Rest of World segment revenues, in AUD, increased by 4.3% to $82.3m, although in constant currency, segment revenues were lower than the prior year. The UK business continues to perform solidly. The growth in Group EBIT was primarily driven by the strong performance in North America, which reported EBIT increasing by 36.9% in AUD to $43.6m, compensating for the ANZ segment, where EBIT decreased by $1.7m to $16.6m. The decrease in ANZ EBIT resulted primarily from the negative margin impact of the strengthened USD and a highly competitive market, which was partially offset by the sales mix shift towards higher margin Breville designed and developed products. Rest of World segment EBIT was 8.4% higher at $22.1m, with improved EBIT margin driven by a shift to higher margin products in both the Rest of World distribution business and the UK. go-to-market process, and progression toward a Group-wide business application stack, the building blocks for future scalability of the business are being positioned. Further scalability is anticipated through the implementation of a consolidation warehouse in China, which is expected to be operational in the second half of the 2017 nancial year. The Board increased the level of dividends for the year to 28.5 cents per share from 27.0 cents per share in the prior year, demonstrating its condence in Breville's global growth potential, the Group's strong balance sheet, and the continued commitment to providing strong returns to shareholders. On behalf of the Board, I would like to take this opportunity to welcome Kate Wright, who joined the Board on 1 September 2016 as a non-executive director. I encourage all shareholders to attend the annual general meeting in November to join us in formally welcoming Kate. Finally, I would like to thank my Board colleagues, the many Breville team members around the globe for their dedication and hard work, and our shareholders, customers and suppliers for their continued support. Steven Fisher Non-executive chairman Under the leadership and vision of CEO Jim Clayton, the Group is well placed for global growth, with a number of key strategic levers in execution phase under the transformation program. With faster development cycles and global product launches, end-to-end transformation of our Group Breville Group Limited annual report 2016 1 the Toast Select Luxe 2 slice toaster with progress indicator CEO's review \"Despite the challenging nature of the global market, the Group was able to deliver in line with our expectations, while simultaneously making meaningful progress on our transformation program. I look forward to continue building on this success.\" Financial summary 30 June 2016 30 June 2015 576.6 527.0 EBIT 73.7 69.6 Net prot after tax 50.2 46.7 Earnings per share (cents) 38.6 35.9 Return on equity (%) 20.4 20.2 $ Millions except where indicated Revenue During the year the Group has rened its strategic path and commenced execution of its transformation program, whilst simultaneously delivering Group revenue and earnings expectations. The North American business has continued its strong growth with reported revenue up 24.0% to $251.8m (FY15: $203.1m), with constant currency growth of 10.3% reecting the ongoing positive growth since the juicing category re-set, which commenced in calendar year 2014. North American EBIT in AUD for the year increased by 36.9% to $43.6m (FY15: $31.9m) driven by the increase in revenue and a more favourable product mix. The segment EBIT margin, which increased to 17.3% from 15.7% in the prior year, was also assisted by the introduction of new innovative products at higher margins. In ANZ, Breville designed and developed products (\"Breville Global\") performed well with revenue increasing by 11.2%; however, trading remained difcult in the mid-market segment, which comprises revenues from 'sourced products', internally referred to as \"Breville Local\". The price driven nature of this segment, coupled with discount retailers favouring their own brands in the entry to mid-price points, contributed to the decline in the revenue of this market segment. ANZ EBIT for the year decreased by 9.4% to $16.6m (FY15: $18.3m), being negatively impacted by the strengthened USD and the inability, due to market pressures, to process compensating wholesale price increases across the entire range. The impact of the USD on margins was partially offset by the sales mix shift towards the higher margin Breville Global products and cost efciency savings. The Rest of World segment increased revenue in AUD by 4.3% to $82.3m (FY15: $78.8m). In constant currency segment revenues were less than the prior year, with the Rest of World distribution business revenues negatively impacted by a number of our distribution partners' exposure to the strengthening USD and specic issues in some of the markets in which they operate. The UK business continued its solid performance with revenue growing by 15.2% in AUD or 7.4% in constant currency as both the customer base and product range expanded. Rest of World EBIT of $22.1m (FY15: $20.3m) was 8.4% higher. The segment EBIT margin improved to 26.8% from 25.8%, driven by a shift to higher margin products in both the Rest of World distribution business and the UK. During my rst year at Breville, the Group has begun its transition from an Australian company, which sells products globally, to a truly global business selling products locally. I am pleased to report that we have moved from the planning to the execution phase of the transformation program which is tracking to our timeline. Breville Group Limited annual report 2016 3 CEO's review continued The transformation program is focused on the three key strategic levers, with progress against each as follows: Transition into a global, innovation-driven product company: shorten development cycles and accelerate new global product releases, increase the relative investment in R&D and marketing and align the Group behind the go-to-market models of 'Global' and 'Local' businesses. > > A new innovative product, with an original target release date of September 2017 has been accelerated to a fully marketed launch in October/November 2016 Structural changes made to the ANZ 'product' function will enable acceleration of new product introductions and better alignment with retailers and customers Market expansion and optimisation: improving go-to-market and geographic footprint effectiveness, expanding into new channels and helping distribution partners grow more quickly. > Sales force effectiveness: multi-country pilots have been run to identify opportunities > Go-to-market: End to end re-architecture of the Group's go-to-market process has commenced > Rest of World distributors: Market-back pricing has been extended to other distributors > North American Nespresso partnership: distribution to commence in the second half of FY17 Scalable, global platform: a corporate platform designed to scale efciently and effectively which allows granular management of global product ow and gives 360 visibility of our customers and common visibility across the Group (ERP, Customer Relationship Management (CRM), Ecommerce, Sales and Operational Planning (S&OP). > S&OP process implemented in the second half of FY16, with benets to begin owing in FY17 > ERP system in Canada became operational and the USA ERP implementation will follow in September 2016 > Further scalability is anticipated through the establishment of a consolidation warehouse in China, which is expected to be operational in the second half of FY17. FY16 was a year of organisational structure and alignment and planning. FY17 will be one of transformational execution. The focus on the acceleration of new global product introductions and releases will continue, and the re-architecture of the go-to-market process will progress. The cost structure re-allocation towards product and marketing will commence with the transition from spending 8.4% of net sales (FY16) to 12% of net sales, a process that is expected to progress over multiple future reporting periods. Core global systems and the consolidation warehouse will be fully operational by the close of FY17. On a personal note, I am encouraged by the progress we have made during the year and the passion and capability demonstrated by the Breville Group team. I would like to thank the Board and the Breville Group team for their ongoing support and counsel. Jim Clayton Chief executive ofcer 4 Breville Group Limited annual report 2016 Strategy and brands Breville Group's primary strategy is the design and development of the world's best kitchen appliances together with effective distribution and marketing of their performance benets on a global scale. The Breville brand is at the core of this strategy representing the majority of the Group's revenues and marketing activities. There are however, a number of additional company owned brands and brand partners in different geographies that assist in the delivery of the business strategy. In line with its global strategy, the company is focused on the design and development of Breville branded products supplied to the premium kitchen segment of the market (internally referred to as 'Breville Global') but still enjoys reasonably broad distribution in Australia and New Zealand of 'sourced products' (internally referred to as 'Breville Local'), some of which also carry the Breville brand, but may also be branded Kambrook. North America In North America, the Group distributes its range of premium internally designed and developed kitchen products under the Breville brand primarily through premium channels and its own online retailing platform. From the second half of the 2017 nancial year, the Breville brand will include a range of Breville co-branded Nespresso coffee machines as one of Nespresso's machine partners in North America. Since July 2014, North American revenues have also included a USA based culinary division PolyScience, one of the world's market leaders in premier sous vide cooking in both the commercial and professional markets. Europe In the United Kingdom and Europe the Breville brand is not owned or operated by the Breville Group. In the United Kingdom, the Group markets and distributes its Breville premium designed and developed Breville Global kitchen products under the company owned brand Sage which is endorsed by internationally acclaimed chef Heston Blumenthal. Within Europe, the Group has a number of partners who market Breville's premium designed and developed products under their own brands or under the Sage brand. In addition to endorsing the Sage brand, Heston Blumenthal also plays the role of being Breville's global brand ambassador in all markets outside of Europe. Rest of the World In the Asia Pacic region and the Middle East, the Group markets its premium designed and developed kitchen products under the Breville brand as well as selected products under the Kambrook brand in parts of Asia and Africa. Distribution in these regions is managed using local third party distributors supplied via the Group's Hong Kong ofce. Australia and New Zealand In Australia and New Zealand, the Group primarily trades under its company owned brands, Breville and Kambrook and also distributes a range of Philips products in the garment and personal care categories under a licence agreement. The Kambrook brand extends to categories beyond the kitchen, offering not just a full range of kitchen appliances, but also irons, vacuums, heating and cooling products, all at an affordable price without any compromise on quality and performance. Breville Group Limited annual report 2016 5 Strategy and brands continued Breville - Thought for Food On Melbourne Cup day 1932, two Australian entrepreneurs, Bill O'Brien and Harry Norville, combined their surnames together to form the name 'Breville' and founded a company manufacturing radios out of Sydney. During the 1960's, Bill's son John focused the organisation on solving common kitchen problems and founded the Breville small appliance research and development centre, which led to the invention of the now iconic Breville toasted sandwich maker. The toasted sandwich maker kick-started a long list of innovative Breville products developed in Australia. From the original Kitchen Wizz food processor and High-Wall Wok to the launch of the world's rst wide feed chute Juicer, Breville has become synonymous with innovation in the kitchen. In 2000, Breville embarked on a project to expand its design and innovation capabilities, building a much larger internal team that has today become one of Australia's premier product development teams. This investment culminated in the 2003 launch of its premium range of products into the United States and other international markets. In 2009, Breville combined its design and development capabilities with a more focused marketing, recruitment and cultural initiative entitled 'Food Thinking'. As a part of this strategy, a new global brand identity was developed and rolled out across packaging, point of sale and all other consumer marketing touch points. Breville's strategy of 'Food Thinking' and creativity remains relevant today and it continues to gain momentum. The strategy centres around: Deeper understanding of food and the challenges consumers face; Protectable innovation; Superior quality and design; and Increased marketing communication. 6 Breville Group Limited annual report 2016 Breville's appreciation for food science and culinary trends has led to a fostering of relationships with several high prole food thinkers including world renowned baristas and chefs, some of which have helped the Group in a product development capacity. In his ambassadorial role, world renowned chef Heston Blumenthal works closely with Breville's product development teams, providing invaluable insights into the food science necessary for the Group to continue developing \"best in class\" products. Sage By Heston Blumenthal In the United Kingdom, the Group distributes its premium designed and developed products under the Group owned brand, Sage, which is endorsed by Heston Blumenthal. The brand identity and positioning of Sage by Heston Blumenthal is aligned closely to the global Breville brand identity and 'Food Thinking' strategy. The Sage by Heston Blumenthal distribution strategy is also very similar to that of North America, with distribution limited primarily to premium retailers. The Group continues to invest in marketing activity for the Sage by Heston Blumenthal brand to solidify the brand's presence in the premium channel in the United Kingdom. Kambrook - The Smarter Choice Kambrook has become known for quality, durable products at an affordable price. The ever-expanding product range encompasses appliances for the kitchen, living room, laundry and bedroom. Kambrook continues to highlight the durability of its appliances and the rigorous testing process that each new product undergoes. Products are subjected to extensive laboratory and quality testing before receiving the Kambrook seal of approval. PolyScience Innovation & product development Breville Group acquired the PolyScience culinary division in July 2014. PolyScience which was initially a supplier of temperature control equipment to the medical industry expanded into culinary products, employing its temperature control technologies to launch the world's premier immersion cooking circulators (for sous vide cooking) as well as various specialty cooking accessories such as the Smoking Gun (for rapid food smoking), vacuum sealers, cold plates and vacuum evaporations systems. The core driving the Group's growth continues to be investment in product development and a focus on design and innovation. Breville has deepened its understanding of food, and how the consumer interacts with it, applying this to solving problems in ways that are both valuable to people, and differentiated from competitors. Breville actively protects this customer value through increased investment in intellectual property protection and via the development of a portfolio of patented innovative products for future sustainable growth. the Smoking Gun Wood smoke infuser Breville Group Limited annual report 2016 7 Strategy and brands continued People - creativity & food thinkers Breville enjoys the benets of highly experienced talent across all departments and geographies. Integrated throughout its food thinking culture, the passion, creativity and insight of staff has helped to consistently bring world class innovative products to consumers around the world. The team continues to be awarded both domestically and internationally, with multiple design awards, and recognition through mainstream media. Breville Group invests in the training and education of its team, building strong, collaborative links with world experts in food thinking and technology. The Group is also involved in several consumer facing and chef liaison activities. Strongly committed to its core values of creativity, simplicity, insight and excellence in all departments, Breville recruits, trains, assesses and rewards employees on this basis. With a team anchored around these common values, the business is able to foster a workplace that stimulates idea generation, a passion for learning, and the continuous search for new and better solutions. the One Precision Poacher With probe control Perfect eggs, any texture, every time. 8 Breville Group Limited annual report 2016 During the 2016 nancial year, the Group continued to grow its highly talented and experienced team, bringing on board additional experience and expertise, particularly in the areas of marketing, product design and development, and logistics. Process and mindset change for the future The Group, in addition to investing in logistical, marketing and product design and development talent, has recently begun shifting its go-to-market process. With the objective of an aligned calendar setting, both within Breville itself, as well as with the Group's manufacturing and retail channel partners, the Group seeks to fully leverage an increasing number of new product introductions to drive the business and the overall brand. By ensuring that the 'go-to-market' process is aligned functionally, regionally and with our external partners, the Group has set an objective, to launch product, with impact at a single moment in time, across a number of markets under the global distribution footprint, in order to ensure that the Group will reap the full potential of its innovation and design excellence. The Group is at the beginning stages of the process, and will begin to see preliminary results in the second half of the 2017 nancial year, with full benet coming on line in the 2018 nancial year. the Oracle the Dual Boiler with automatic grinding, tamping and milk texturing. The world's rst automatic manual coffee machine. Breville Group Limited annual report 2016 9 the Smart Oven Pro With light and slow cook settings Accolades 2016 CMC800 Control Freak Cooker 2016 BEM825 the Bakery Boss 2007 BBL600 ikon Blender 2015 BMO700 Quick Touch Microwave 2006 800ES Espresso Machine 2015 BCP600 Citrus Press 2015 BBL405 the Kinetix Twist 2014 BES980 the Oracle Espresso 2013 BSG1974 the Original '74 2012 BDC600 You-Brew Drip Coffee Machine 2011 BFP800 Food Processor 2010 BGR820 Smart Grill 2007 BES400 Espresso Machine 2006 BJE200 Juice Fountain Australian Powerhouse Museum Selection German Red Dot Design Award 2015 BMO700 Quick Touch Microwave 2015 BCP600 Citrus Press 2014 BES980 the Oracle Espresso 2014 BMO734 the Quick Touch 2014 BTA720 + 730 the Lift and Look Pro IDSA Design Award - USA IDEA International Design Excellence Awards 2014 Bronze BES980 the Oracle Espresso 2014 Finalist BWM640 the Smart Wafe 2014 Finalist BTA720 + 730 the Lift and Look Pro 2013 Bronze BES900 Dual Boiler Espresso 2013 Finalist BFP800 Kitchen Wizz Food Processor 2013 Finalist BBL 605 Kinetix Control Blender 2014 BWM640 the Smart Wafe 2013 BEF100 the Thermal Grill Pro 2013 BRC600 the Multi Chef 2013 Finalist BDC600 You-Brew Drip Coffee Machine 2012 BDC600XL You-Brew Drip Coffee Machine 2007 Bronze BBL600 Blender BFP800 Kitchen Wizz Pro 2016 BPB620 Boss To Go Personal Blender 2014 BBL910 the Boss Superblender 2012 2013 BRC600 the Multi Chef 2008 BTA820/840 Toaster 2013 BEF100 the Thermal Pro Grill 2008 BES400 Espresso Machine 2012 BCI600 Smart Scoop Ice Cream Maker 2012 BES900 Dual Boiler Espresso Machine 2010 Breville Smart Oven Finalist 2011 BCG800 Smart Grinder 2007 Snack 'n' Sandwich Toaster Design Icon 2011 BTM800 Tea Maker 2007 BES400 Espresso Machine Winner 2010 BEM800 Wizz Planetary Mixer 2006 BKE450 Kettle Winner 2010 BOV800 Smart Oven Honourable Mention 2013 BBL605 Kinetix Control Blender 2011 BKE820 Kettle Home Beautiful Awards Good Design Award Chicago Anthenaeum 2010 BES820 Variable Temperature Kettle 2010 BES860 Fresca Espresso Machine 2012 BOV800 Smart Oven 2008 BKT500 ikon Toaster & Kettle 2012 BFP800 Kitchen Wizz Pro 2008 BTA800 Professional Series Toaster 2012 BTM800 Tea Maker 2008 BBL800 Professional Series Blender 2012 BCG800 Smart Grinder 2007 BJE510 ikon Juicer 2006 BES400 Espresso Machine 2007 BBL600 ikon Blender 2006 BKE450 Moda Kettle Cooks Illustrated Best Blender 2012 BBL605xl Hemisphere Control Blender Cooks Illustrated Best Electric Juicer 2012 JE98xl Juice Fountain Plus Consumer reports iF Design Award 2016 Thermal Pro Cookware 2016 BPB620 Boss To Go Personal Blender 2008 BES820 Espresso Machine 2010 BKE820 - Blue ribbon 2010 JE95XL Juice Fountain Plus - Best in Show 2006 #2 BOV650 BTA820&840 Professional Toasters Housewares Design Award New York 2006 800CP Citrus Press Best In Category 2015 BWM640 the Smart Wafe 2008 BES820 Espresso Machine 2008 BBL800 Professional Series Blender 2006 800ES Professional Series Espresso Machine Best In Industry 2008 BBL800 Professional Series Blender Shortlisted 12 Breville Group Limited annual report 2016 Toaster Ovens Review #1 BOV800 BES820 Espresso Machine BES980 the Oracle Espresso Immersion Blender Review #1 BSB510 Control Grip 2010 2007 2015 Food Processors #1 BFP800 Sous Chef 2011 SK500 Ikon Kettle - Best Overall 2008 Gold iF Design Selection 2012 2008 BKC600XL Single Cup Brewer 2006 800GR Grill House & Garden Style Awards 2013 BES980 the Oracle - Winner Kitchen & Dining 2010 Tea Maker - Winner Kitchen Breville Group Limited Financial report 2016 Contents: Directors' report 14 Corporate governance statement 37 Consolidated income statement 42 Consolidated statement of comprehensive income 43 Consolidated statement of nancial position 44 Consolidated statement of changes in equity 45 Consolidated cash ow statement 46 Notes to the nancial statements 47 Directors' declaration 86 Independent audit report 87 Auditor's independence declaration 89 Breville Group Limited annual report 2016 13 Directors' report The board of directors of Breville Group Limited (company) has pleasure in submitting its report in respect of the group for the year ended 30 June 2016. Board of directors The names and details of the company's directors in ofce during the year and until the date of this report are as below. Unless indicated otherwise, directors were in ofce for this entire period. Steven Fisher Non-executive chairman B.ACC, CA(SA) Mr Fisher has more than 25 years' experience in general management positions in the wholesale consumer goods industry and is currently chief executive of the Voyager Group. Prior to entering into the consumer goods industry Mr Fisher was a practicing chartered accountant having qualied in South Africa with a Bachelor of Accounting degree. In addition, Mr Fisher serves on various private company boards. Suncorp Group Limited # Premier Investments Limited # FSA Group Limited # denotes current directorship Dean Howell Non-executive director FCA, CTA Mr Howell has had an extensive career in accounting, spanning some 40 years, and accordingly has a wealth of commercial and advisory experience. He was the former senior partner of a Melbourne rm of chartered accountants and also served on that rm's national and international boards. He is also a director of Peter MacCallum Cancer Foundation Ltd. During the last three years he has not served as a director of any other listed company. During the last three years he has not served as a director of any other listed company. Steven Klein Timothy Antonie Non-executive director LLB, B.Com Non-executive director BEcon Mr Antonie has more than 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. He holds a Bachelor of Economics degree from Monash University and qualied as a Chartered Accountant with Price Waterhouse. During the last three years he has served as a non-executive director of the following other listed companies: Premier Investments Limited # Village Roadshow Limited # # denotes current directorship Sally Herman Non-executive director BA, GAICD Ms Herman is an experienced non-executive director sitting on both public and private company boards in nancial services, retailing, property and consumer goods. She had a long career in nancial services in both Australia and the United States, including 16 years with the Westpac Group, running business units in most operating divisions of the Group. Ms Herman is based in Sydney and is actively involved in the community, with a particular interest in education, the arts and disability services. She also chairs the board of an independent girls' school. 14 During the last three years she has served as a non-executive director of the following other listed companies: Breville Group Limited annual report 2016 Mr Klein is a Principal of SBA Law. He has had over 25 years' experience acting on behalf of both public and private companies in merger and acquisition transactions. During the last three years he has not served as a director of any other listed company. Lawrence Myers Non-executive director B.Acct, CA, CTA Mr Myers has over 20 years' experience as a practising Chartered Accountant. He is the Managing Director and founder of MBP Advisory Pty Limited, a high end Sydney rm of Chartered Accountants. Mr Myers sits on numerous private company and not-for-prot boards and acts as a trusted advisor and mentor on business and nancial matters. He is a registered auditor and his specialist areas of practice include business and corporate advisory as well as mergers and acquisitions. Mr Myers is chairman of the audit and risk committee (A&RC) and since August 2014 is the company's lead independent director. During the last three years he has not served as a director of any other listed company. Board of directors continued Samuel Weiss Non-executive director - resigned 4 November 2015, effective 11 November 2015 AB, Harvard University; MS, Columbia Business School; FAICD Mr Weiss has had a long corporate career in the United States, Europe and Australia with leading consumer brand companies such as Nike, Gateway Computers and Sheridan. Operating and nancial review The operating and nancial review has been designed to enhance the periodic nancial reporting and provide shareholders with additional information regarding the Group's operations, nancial position, business strategies and prospects. This review complements the nancial report and has been prepared in accordance with the guidance set out in ASIC Regulatory Guide 247. Company overview Altium Limited # OrotonGroup Limited The Group's underlying strategy is the design and development of innovative world class small electrical kitchen appliances and the effective marketing of these products across multiple geographies to drive growth in sales and prots. Ensogo Limited (previously iBuy Limited) # In line with this strategy, the Group has: 3P Learning Limited # A strong and competitive product portfolio with proven success across the globe; A committed, quality team; An R&D culture that focuses on consumer needs and food challenges when developing new products, enabling the Group to maintain its premium product and market positioning; A track record of delivering growth outside of the ANZ region; and A strong balance sheet which provides a platform to take advantage of future opportunities. During the last three years he has served as a director of the following other listed companies: # denotes current directorship Company secretaries The names and details of the company's company secretaries in ofce during the year and until the date of this report are as below. The company secretaries were in ofce for this entire period. Mervyn Cohen B.Com, B.Acc, CA Mr Cohen is a chartered accountant and has over 25 years' experience in senior nancial roles after beginning his career in Audit and Advisory. Mr Cohen is also Chief Financial Ofcer of the company, a position he has held since October 2006. Sasha Kitto LLB, FCA Ms Kitto is a chartered accountant and has over 15 years' experience as a practising chartered accountant and in senior nance roles. Reporting currency and rounding The nancial report is presented in Australian dollars and all amounts have been rounded to the nearest thousand dollars ($'000) unless otherwise stated under the option available to the company under ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191. The company is an entity to which the instrument applies. Performance indicators Management and the board monitor the nancial performance of the company by measuring actual results against expectations as developed through an annual business planning and budgeting process. Appropriate key performance indicators (KPI's) are used to monitor operating performance and management effectiveness. Currently, the Group is executing two distinct go-to-market models: A 'global' go-to-market model, with a premium position in the kitchen appliance categories, selling globally primarily under the Breville and Sage brands; and A 'local' go-to-market model in ANZ, selling multiple brands, in multiple categories, across a full range of price points, from kitchen appliances to personal care and garment care. During the year, the Group has rened its strategic direction and has commenced the execution of its transformation program, further detail of which is given on pages 18 and 19. Principal activities During the year, the principal activities of the Group were the innovation, development, marketing and distribution of small electrical appliances. In Australia and New Zealand, the Group principally trades under its company owned brands, Breville and Kambrook and also distributes a range of Philips products in the personal care and garment care categories under a license agreement with Philips. In North America, the Group distributes Breville branded products through premium channels. In the UK, the marketing and distribution of Breville designed products to premium retailers is under the company owned brand, Sage. Breville Group Limited annual report 2016 15 Directors' report continued Operating and nancial review continued Segment results Principal activities continued REVENUE The Group's Hong Kong ofce performs the functions of a group procurement and quality assurance centre and also, a supplier of primarily Breville designed products to distributors globally. These distributors are located outside of the Group's principal markets of Australia, New Zealand, North America and UK. The products sold to distributors located in Europe (excluding UK) are sold either under the company owned Sage brand or on a non-Breville branded basis. The products sold to distributors outside of Europe, including in the Asia Pacic region, the Middle East and South America, are Breville branded products. 2016 $m 2015 $m % Change 2016 $m 2015 $m % Change North America 251.8 203.1 24.0% 43.6 31.9 36.9% Australia and New Zealand (ANZ) 242.6 245.1 (1.0%) 16.6 18.3 (9.4%) 82.3 78.8 4.3% 22.1 20.3 8.4% Rest of World Other TOTAL Group operating results 2015 $m Revenue 576.6 527.0 9.4% EBITDA 83.4 77.0 8.3% EBIT 73.7 69.6 5.9% Net prot after taxation 50.2 46.7 7.5% Earnings per share EPS (cents) 38.6 35.9 7.5% 20.4% 20.2% Return on equity (%)1 Dividends per share (cents) 28.5 27.0 Net cash ($m) 36.1 32.8 % Change 5.6% Minor differences may arise due to rounding 1 ROE is calculated based on NPAT for the 12 months ended 30 June 2016 (2015: 12 months end 30 June 2015) divided by shareholders' equity at 30 June. Revenue of the consolidated entity for the year was $576.6m which was 9.4% higher than the previous corresponding year of $527.0m. Earnings before interest and tax (EBIT) increased by 5.9% on the previous corresponding year to $73.7m. The Group's prot after income tax was $50.2m which increased 7.5% on the previous corresponding year of $46.7m. The basic earnings per share for the consolidated entity was 38.6 cents per share (2015: 35.9 cents per share). 16 - - - (8.6) (0.9) - 576.6 527.0 9.4% 73.7 69.6 5.9% Minor differences may arise due to rounding 2016 $m Year to 30 June EBIT Year to 30 June Breville Group Limited annual report 2016 North America The North American business has continued its strong growth with reported revenue for the nancial year increasing to $251.8m (2015: $203.1m) or by 24.0% compared to the previous corresponding period (pcp). In constant currency, revenues for this segment increased by 10.3%, reecting the ongoing positive growth since the juicing category re-set, which commenced in calendar year 2014. Increased North American revenues were underpinned by new product releases as well as the sustained performance of the existing product range in the key categories of beverage and cooking. Core products in these categories include the range of espresso machines, mini ovens, toasters and kettles. Reported EBIT for the year was 36.9% higher than pcp increasing to $43.6m (2015: $31.9m) driven by the increase in revenue along with a more favourable product mix. The segment EBIT margin, which increased to 17.3% (2015: 15.7%), was also assisted by the introduction of new innovative products at higher margins. ANZ Our ANZ segment, which sells multiple brands, in multiple categories, across a full range of price points, from kitchen appliances to personal care and garment care, continues to face market challenges in the midmarket segment. Revenues for the year of $242.6m were marginally lower ($2.5m or 1.0%) than the pcp (2015: $245.1m). In line with prior reporting periods, ANZ revenues from the Breville designed and developed products have continued to increase, being 11.2% higher than the pcp. The remaining revenues from 'sourced products' (internally referred to as 'Breville Local'), which account for a greater proportion of total revenue, have declined given the competitive nature of this segment of the market. The price driven nature of this segment, coupled with discount retailers favouring their own home brands in the entry to mid-price points, contributed to the decline in revenue of this market segment. Operating and nancial review continued Financial position Segment results continued Working capital ANZ continued The total investment in working capital ended $10.4m higher compared to that of the prior year, driven primarily by a decrease in trade and other payables. EBIT for the year decreased to $16.6m (2015: $18.3m), with the overall EBIT margin decreasing from 7.5% in the prior year to 6.9%. EBIT for the second half of the year clawed back some of the shortfall reported in the rst half by increasing to $5.3m from $2.1m in the pcp. The overall EBIT margin was negatively impacted by the strengthened USD and the inability, due to market pressures, to process wholesale price increases across the entire range. The impact of the strong USD was partially offset by the sales mix shift towards the higher margin Breville designed and developed products and cost efciency savings. Rest of World This segment comprises the Rest of the World distribution business supplied from Hong Kong as well as the Group's UK business, which distributes Breville designed and developed products under companyowned brand, Sage. Inventory balances at 30 June 2016 of $107.7m (2015: $108.3m) are $0.6m lower compared to the pcp and after excluding the translation effect at balance sheet date, are $1.9m lower. Likewise, inventory turns have improved. The Group implemented a global 'sales and operations planning' (S&OP) process during the second half of the 2016 nancial year. We are just beginning to see the benets of this process change. We expect a majority of the benet to be realised during the 2017 nancial year. The $10.3m reduction in trade payables compared to the prior year is primarily attributable to lower stock related purchases, a leading indicator of the S&OP process. Receivables of $89.5m were at compared to the prior year (2015: $88.7m). Total segment revenue in AUD increased by 4.3% to $82.3m (2015: $78.8m). In constant currency, segment revenues were less than the pcp, with lower Rest of World distribution business revenues only partly offset by higher UK business revenues, which increased by 7.4%. Net cash at 30 June 2016 was $36.1m compared to $32.8m at the same time last year. Net cash ow generated from operating activities of $52.3m was higher than the pcp (2015: $45.7m). Revenue in the Rest of World distribution business was negatively impacted by a number of our distribution partners' markets being exposed to the effects of a strengthening USD, as well as specic issues affecting some of the markets in which our partners operate. The Group has continued its investment in efciency, cost improvement and revenue driving projects to support a larger and more geographically diverse business, including the global roll out of a single business application stack: Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), eCommerce and S&OP. The UK business has continued its solid performance with revenue in AUD growing by 15.2%. This increase has resulted from both an expanded customer base as well as a wider product range. Capital expenditure Reported EBIT of $22.1m (2015: $20.3m) was 8.4% higher than pcp. The segment EBIT margin improved to 26.8% from 25.8% in the prior nancial year, driven by a positive shift to higher margin products in both the Rest of World distribution business and the UK. Other The Group's Other reporting segment includes the Group's shared service facility, design and development and global marketing functions, as well as the depreciation/amortisation charge on Group assets including capitalised product development projects. The net change from the prior year is mainly attributable to higher employee related expenses (mainly the Group short term and long term incentive expense) and increased depreciation/ amortisation from new Group assets. These increases have been partially offset by an over-recovery of intra-group charges compared to the pcp. Breville Group Limited annual report 2016 17 Directors' report continued Operating and nancial review continued Material business risks The material business risks that may impact the achievement of the Group's strategy and its future nancial prospects are summarised below, together with key actions to mitigate these risks: Risk Nature of risk Key actions to mitigate risk Foreign exchange exposures Transactional exposure as its product purchases are primarily paid for in US dollars. Translational exposure as its international earnings, a large portion of which are denominated in US dollars, are translated into Australian dollars for reporting purposes. The transactional and translational exposures are considered to result in a partial natural hedge from a Group perspective. A weak Australian dollar is likely to have an adverse impact on the ANZ segment's earnings (as a result of higher landed costs) but a positive impact on the translation of nonAustralian dollar denominated results. Treasury policy requires hedging of a portion of expected purchases up to 18 months in advance. Adverse global economic conditions and consumer demand Adverse changes to the general global economic and retail landscape and consumer sentiment in the principal markets in which the Group operates will impact its nancial results. The Group mitigates this risk by continued communication with consumers to gain greater insight into the changing world of food and beverage trends and by keeping abreast with global economic and consumer data and industry trends. Margin risk The highly competitive nature of the small domestic appliance market together with changes in manufacturing costs, including commodity prices, will have an impact on the Group's nancial results. This risk is mitigated by protecting the Group's intellectual property, brand building initiatives, introducing elements of variability into its cost structure and strengthening its long term supplier relationships. Group strategies and prospects During the year the Group has rened its strategic direction and has commenced the execution of its transformation program, focusing on the following key strategic pillars: In the current year progress has been made against product milestones as follows: A new innovative product, which will deliver the best quality outcome of any such product in its category, originally had a target release date of September 2017. The Group has now successfully managed to bring this release date forward to October 2016. Structural changes made to the ANZ 'product' function, resulting in an integrated category management structure, will enable acceleration of new product introductions and better alignment of the product portfolio for both retailer and consumer needs. 1) Transition into a global, innovation-driven product company The Group is currently working on: 18 Increasing the number of new global product releases; Shortening development cycles and accelerating new product introductions; Increasing the investment in R&D and marketing, which will be funded by cost efciencies; and Aligning the Group behind the two distinct goto-market models - 'global' and 'local'. Breville Group Limited annual report 2016 Operating and nancial review continued Group strategies and prospects continued North American Nespresso machine partnership: This distribution will commence in the second half of the 2017 nancial year. 2) Market expansion and optimisation 3) Scalable, global platform The Group will focus on accelerating growth through increasing the size of its addressable market by: To support accelerated growth, the Group needs a corporate platform designed to scale efciently and effectively. Delivering against this requirement, the Group is transitioning from its historical, decentralised structure into a functional, global model, and, where appropriate, up-skilling key capabilities. A scalable, global platform will require the granular management of global product ow (inventory management) and the need for a Groupwide business application stack, giving 360 visibility of our customers and common visibility across the Group (ERP, Customer Relationship Management (CRM), eCommerce, S&OP). Improving go-to-market and geographic footprint effectiveness; Expanding into new channels where appropriate, driving greater penetration into existing markets; and Helping distribution partners grow more quickly. In the current year progress on market expansion and effectiveness was as follows: Sales force effectiveness: Multi-country pilots were undertaken to identify opportunities and improve the go forward sales force approach. During the second half of the 2016 nancial year, the Group implemented a S&OP process and the ERP system in Canada become operational with the USA to follow in September 2016. Go-to-market: End-to-end re-architecture of the Group's go-to-market process to embrace the omni-channel approach, enabling the support of consumers through each stage of their decision and post decision cycle. The roll out of the remaining Group-wide business application stack (ERP, CRM, eCommerce) is expected to be completed by the end of the 2017 nancial year. Rest of World distributors: Market back pricing pilot was extended to other distributors and the future realignment of the supply chain is expected to overcome existing minimum order quantity (MOQ) challenges. Further scalability is anticipated through the establishment of a consolidation warehouse in China, which is expected to be operational by February 2017. Our commitment to sustainability and social responsibility The Group is committed to ethical, responsible and sustainable conduct across the entire business and acknowledges the importance of respecting our stakeholders, including employees, shareholders, customers and suppliers. People Community Environment Business Attraction and retention Charity donations Energy and emissions Development Packaging stewardship Ethical sourcing principles and policies Reward and recognition Community engagement Waste and recycling Product responsibility Anti-bribery and corruption Workplace safety Diversity People The Group enjoys the benets of a highly experienced and talented team across all departments and geographies. Integrated throughout its food thinking culture, the passion, creativity and insight of staff has helped to consistently deliver world-class innovative products to consumers. The team continues to be awarded both domestically and internationally, with multiple design awards, and recognition through mainstream media. The Group invests in the training and education of its team, building strong, collaborative links with world experts in food thinking and technology. Strongly committed to its core values of creativity, simplicity, insight and excellence in all departments, the Group recruits, trains, assesses and rewards employees on this basis. With a team anchored around these common values, the business is able to foster a workplace that stimulates idea generation, a passion for learning, and the continuous search for new and better solutions. The Group advocates diversity in its workforce, recognising the insight and creativity that it brings to the business. At the end of the year, Breville employed over 500 staff across seven countries. The Group believes that it is important for all team members to enjoy a workplace which is free from any form of discrimination; strongly supporting gender, age, sexual orientation, disability and cultural diversity at work. Breville Group Limited annual report 2016 19 Directors' report continued Operating and nancial review continued Our commitment to sustainability and social responsibility continued People continued Ensuring a safe workplace is another business commitment and the Group culture encourages all employees to be responsible for all aspects of health and safety and employees participate in regular work health and safety audits. At Minto, the Group's state of the art warehouse in Australia, operator safety was one of the key drivers of design, including a pedestrian rail and guard system. The Group is committed to reducing hazards and coordinating active safety committees at each site. The Group has an ethical sourcing policy which includes an ethical sourcing requirements code ('code') which sets out the minimum requirements and expectations that all vendors, including subcontractors engaged by vendors, must comply with. The code species compliance in areas such as: Environment Energy, packaging and waste are our key environmental impact areas. The Group is striving to incorporate sustainable decisions into operational facilities such as the new head ofce in Australia, which has been operational for the full year, and has a number of energy efcient features to reduce energy usage including movement and light sensors to minimise use of lighting, limitations/timers on plant use (air conditioning, heating) and measurement of power usage. In the Group's Australian warehouse, lighting power consumption has been reduced signicantly through the very successful daylight harvesting program which provides excellent natural lighting. The Group will continue its focus and investment on energy efcient operations. In Australia, the Group is a committed signatory to the Australian Packaging Covenant, a voluntary agreement between government and industry which provides a framework for the reduction of the potential impact of products, packaging and warehouse operations on the environment. The Group integrates actions and goals into existing business systems so that sustainable packaging considerations become 'just how we do business'. Success is being achieved via cross functional teams working together to implement the Group's Sustainable Packaging Policy. The Group has implemented improved waste reduction and recycling practices including recycling of cardboard, paper, plastics and organic waste. Business Ethical sourcing The Group is committed to conducting business in a socially responsible manner and managing its business to reect high ethical and moral values. The Group expects that its supply partners will not be a party to any violation of basic Human Rights including: 20 The Group expects its supply partners to respect and adhere to the same philosophy in the operation and management of their businesses and reserves the right not to do business with vendors that do not share and demonstrate commitment to compliance with local and internationally accepted labour and employment laws. freedom from discrimination freedom from slavery or servitude freedom of movement freedom of expression freedom of thought. Breville Group Limited annual report 2016 wages, benet policies (including transparent record keeping) child labour working hours forced and bonded labour discrimination harrassment and abuse freedom of association health and safety environmental practices business integrity. The company has zero tolerance for the use of child labour, prison labour or forced labour in the manufacture of its products. Suppliers are required to contractually recognise the code and acknowledge their acceptance of its requirements. New key suppliers are required to undergo an independent audit to verify that they are in compliance with local laws and safety conditions. Factory visits are conducted by senior management on a regular basis. The Group also uses internationally recognised independent audit rms to verify compliance with local laws and safety conditions at selected vendors and compliance with the Breville Group ethical sourcing policy. Any violations of the Breville Group code are reported to the vendor for follow up and corrective action. Where the Group requires zero tolerance or where the vendor or factory does not demonstrate a willingness to comply, the Group reserves the right to discontinue doing business with the vendor/factory. The Group recognises the difculties in dealing with a large and complex supply chain and therefore is dedicated to integrating ethics into its core business practices and continuously investing in its ethical sourcing program. Operating and nancial review continued Our commitment to sustainability and social responsibility continued Business continued Product responsibility The Group takes pride in the quality of its products. The Group has extensive compliance processes in place to ensure that its products are safe and compliant with labelling and safety requirements in relevant markets. Anti-bribery and corruption The Group is committed to operating in a manner consistent with the laws of the jurisdictions in which its businesses operate, including those relating to antibribery and corruption. Honesty, integrity and trust are considered integral to the ethos of the Group, its products and its brands. Conduct associated with bribery and corruption is inconsistent with these values. Accordingly, the Group adopts a \"zero tolerance\" approach in relation to these matters. The Group has an anti-bribery policy which, in conjunction with the code of conduct and whistleblowing policy, sets out the responsibilities of all the Group's employees (including contractors) and directors with regard to dealing with outside parties and prohibits all Group personnel in all jurisdictions in which the company operates or conducts commercial activities, from engaging in any activity that constitutes bribery or corruption and other improper inducements and/or payments. In order to ensure that these values and the policy are properly adhered to, the Group has appointed an Anti-Bribery Compliance Ofcer who is responsible for monitoring the application of this policy. Signicant changes in the state of affairs There were no signicant changes in the state of affairs of the consolidated entity that occurred during the year that have not otherwise been disclosed in this report or the consolidated nancial statements. Directors' interests As at the date of this report, the interests of the directors in the shares or other instruments of Breville Group Limited were: Ordinary shares S. Fisher 70,288 T. Antonie - S. Herman 20,000 D. Howell 110,000 S. Klein 147,189 L. Myers 130,000 Remuneration report (audited) This remuneration report outlines the compensation arrangements in place for directors and executives (collectively \"key management personnel\") of Breville Group Limited. For the purposes of this report, key management personnel (KMP) of the group are dened as those persons having authority and responsibility for planning, directing and controlling the major activities of the group, directly or indirectly. The remuneration report is presented under the following headings: Risk management 1. Details of key management personnel The company's risk management is discussed in the corporate governance statement on page 41. 2. Remuneration policy and link to performance 3. Detailed elements of remuneration Dividends The following dividends have been paid, declared or recommended since the end of the preceding year. Cents per ordinary share Final dividend recommended: $'000 i. Fixed annual remuneration ii. Short term incentives iii. Long term incentives 4. Executive remuneration outcomes (including link to performance) 5. Contractual arrangements of key management personnel 6. Non-executive director compensation 14.0 18,213 7. Remuneration of key management personnel 8. Other statutory information Dividends paid in the year: 9. Performance rights Interim FY16 dividend paid 14.5 18,864 Final FY15 dividend paid 13.0 16,912 10. Other Breville Group Limited annual report 2016 21 Directors' report continued Remuneration report (audited) continued 1. Details of key management personnel Below are details of the KMP of the Group during the nancial year ended 30 June 2016. Unless otherwise indicated, the individuals were KMP for the entire nancial year. (i) Directors: S. Fisher Non-executive chairman T. Antonie Non-executive director and effective 16 December 2015 acting chairman of people and performance committee S. Herman Non-executive director D. Howell Non-executive director S. Klein Non-executive director L. Myers Non-executive director and chairman of audit and risk committee S. Weiss Non-executive director and chairman of people and performance committee (resigned 4 November 2015, effective 11 November 2015) 2. Remuneration policy and link to performance The people and performance committee of the board of directors of the company is responsible for reviewing and recommending to the board executive and employee remuneration arrangements and executive succession as set out in the people and performance committee charter. The committee reviews and determines the remuneration policy and structure annually to ensure it remains aligned to strategic goals and meets company remuneration principles. The group chief executive ofcer makes recommendations to the people and performance committee for consideration. From time to time the committee may also engage external remuneration consultants to assist with this review. No such external consultants were engaged for the year ended 30 June 2016. (ii) Executives: The proportion of the xed compensation and variable compensation (potential short term and long term incentives) is established for each executive by the people and performance committee and approved by the board. J. Clayton Group chief executive ofcer - appointed 1 July 2015 In particular, the board aims to ensure that remuneration practices: S. Brady Provide competitive total rewards (for xed and variable compensation) to attract and retain high calibre employees; Link reward to sustained growth in shareholder value from dividends and growth in share price and the delivery of a consistent return on assets; M. Payne Chief operating ofcer - appointed 30 November 2015 Link rewards with the strategic goals and performance of the company; C. Torng Reinforce a competitive business strategy to deliver organisational success and enhanced shareholder value; and Provide transparency and are easily understood. General manager - product M. Cohen Group chief nancial ofcer C. Dais Group general manager - business development and operations - ceased to be KMP 9 October 2015 Global go-to-market ofcer - appointed 25 January 2016 There were no other changes to KMP after the reporting date and before the date the nancial report was authorised for issue. Employment contracts are entered into with executives. Details of the contracts are provided on page 28. Prohibition on hedging by key management personnel The Group has adopted a policy which prohibits key management personnel and their closely related parties from entering into an arrangement that has the effect of limiting the exposure of a member of the key management personnel to risk relating to an element of that member's compensation. The policy complies with the requirements of s.206J of the Corporations Act 2001. 22 Breville Group Limited annual report 2016 Remuneration report (audited) continued 2. Remuneration policy and link to performance continued Table 1: Remuneration framework Element Purpose Performance metrics Potential value Changes for FY16 Fixed remuneration Provide competitive market salary including superannuation and non-monetary benets None Appropriate to position and competitive in the market Reviewed annually based on company and individual performance, market compensation, internal relativities and external advice where appropriate Short term incentives (STI) Reward executives and other employees on the achievement of company and individual value adding performance objectives assessed annually Financial objectives for both the group and business units, determined on an individual basis, aligned to enhance shareholder value Depending on position and seniority employees are eligible for an annual incentive of between 20% and 50% of their xed or base annual remuneration, which is dependent on achievement of nancial objectives. This may be subject to a multiplier in accordance with a sliding scale STI only payable where the target Group Net Prot before tax is met, regardless of whether other objectives are achieved Long term incentives (LTI) Reward executives and other employees in alignment with creation of shareholder value Time based and performance based hurdles Depending on position and seniority, employees are eligible for an LTI award of between 20% and 50% of their xed annual remuneration Historically EPS hurdles, Total Shareholder Return ('TSR') hurdles introduced for FY16 award grants Balancing short-term and long-term performance Sustainability of results is encouraged via long term incentives which are assessed using an absolute TSR hurdle over a two, three or four year period and are designed to promote long term stability in shareholder returns. The target remuneration mix for FY16 is shown in table 2 below. It reects the STI opportunity for the current year that will be available if the performance conditions are satised at target, and the value of the performance rights granted during the year, as determined at the grant date. Table 2: Target remuneration mix for FY16 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % CEO % Other executive KMP Fixed remuneration STI cash LTI Breville Group Limited annual report 2016 23 Directors' report continued Remuneration report (audited) continued 2. Remuneration policy and link to performance continued Assessing performance and cancellation of unvested performance rights The people and performance committee is responsible for assessing performance against KPIs and determining the STI and LTI to be awarded. To assist in this assessment, the committee receives detailed reports on performance from management which are based on independently veriable data. In the event of fraudulent or dishonest misconduct, the board may deem any unvested rights to have lapsed. 3. Detailed elements of remuneration i) Fixed annual remuneration Executives receive their xed remuneration in cash or other non-cash benets. Fixed remuneration is reviewed annually by the people and performance committee, or on role change. The committee reviews company and individual performance, relevant comparative market compensation, considers internal relativities and, where appropriate, external advice on policies and practices. ii) Short term incentives (STI) The Group operates an annual STI program available to executives and other employees and awards a cash incentive subject to attainment of clearly dened Group and business unit objectives. Who participates? Executives and other employees How is STI delivered? Cash What is the STI opportunity? Executives and other employees are eligible for an annual incentive of between 20% and 50% of xed or base annual remuneration. The incentive payment is based on the achievement of nancial objectives which if satised, apply a multiplier in accordance with a sliding scale. What are the performance conditions for each nancial year? The STI rewards executives and other employees for their contribution to achievement of Group nancial outcomes. A