Business SummaryMyer Holdings Limited (MYR) is an Australian department store group with anetwork of 67 stores across Australia. MYR's stores offer fashion and apparelfor men, women, and children; accessories; cosmetics; homeware; furniture;electrical goods; and general merchandise. MYR also provides a consumerloyalty program.

Products: MYR offers eleven core product categories including:Womenswear; Menswear; Miss Shop (Youth); Childrenswear; Intimateapparel; Beauty, fragrance and cosmetics; Homewares; Electrical goods;Toys; Footwear, handbags and accessories; and General merchandise. TheMyer merchandise offering includes national brands, Australian andinternational designers, as well as brands which are owned or licensed anddistributed by Myer, known as 'Myer Exclusive Brands'.

MYER One Loyalty Program: The MYER one loyalty program is a loyaltyprogram which allows members to receive two Shopping Credits for everydollar spent in stores or online at Myer. There are four reward levels withinMYER one, being Member, Silver, Gold and Platinum, based on annualspend with Myer.

Latest ResearchAlert: 3Q18 Sales Result – No further deterioration

Myer reported 3Q18 sales of $635 million, 2.7% below pcp – Total salesgrowth was boosted by the acquisition of Marcs and David Lawrence andthe timing of store closures. LFL sales growth fell by 3.1%, and remains abetter indicator of sales momentum.

For more information see research 17 May 2018.

GICS - Retailing

Myer Holdings Limited

ASX Code: MYR Price: $0.435 12 Mth Target Price: $0.41 Rating: Sell

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

27 May 2018$357m821.3m$0.92$0.34

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Sell$0.41-5.8%NA%-5.8%

Investment FundamentalsFYE 31 Jul 2017A 2018F 2019F 2020F

Profit $m 68.0 32.0 24.0 17.0Profit (norm)* $m 68.0 32.0 24.0 17.0

EPS* ¢ 8.0 4.0 3.0 2.0EPS Growth % -11.1 -50.0 -25.0 -33.3P/E* x 5.4 10.9 14.5 21.8P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 5.0 0.0 0.0 0.0Yield % 11.5 0.0 0.0 0.0Franking % 100.0 0.0 0.0 0.0* Adjusted for goodwill and unusual itemsSource: Based on Citi estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2013A 2014A 2015A 2016A 2017A

Sales Revenue 2,738 2,729 2,772 2,781 2,623Total Revenue ex. Int. 2,762 2,747 2,786 2,802 2,642EBITDA 307 249 218 206 195Depreciation & Amort. -90 -88 -84 -89 -89Goodwill Amortisation -- -- -- -- --EBIT 217 160 133 118 107Net Interest -28 -22 -23 -15 -11Profit Before Tax 189 138 111 103 96Income Tax -57 -40 -33 -30 -28Outside Equity Int. -3 -0 -- -- --Profit after Tax 129 98 78 73 68Significant Items after Tax -2 -- -48 -13 -56Reported Profit after Tax 127 98 30 61 12Preferred Dividends -- -- -- -- --

Cash Flow ($M)2013A 2014A 2015A 2016A 2017A

Receipts from Customers 3,042 3,042 3,096 3,101 2,932Funds from Operations 274 257 150 186 187Net Operating Cashflow 226 192 97 149 149Capex -74 -77 -81 -52 -113Acquisitions & Investments -- -36 -- -9 -14Sale of Invest. & Subsid. -- -- -- -- --Net Investing Cashflow -67 -104 -62 -58 -109Proceeds from Issues 0 5 0 212 --Dividends Paid -113 -99 -73 -16 -49Net Financing Cashflow -115 -95 -55 -99 -54Net Increase Cash 43 -8 -20 -8 -15Cash at Beginning 38 81 74 53 45Exchange Rate Adjust. -- -- -- -- --Cash at End 81 74 53 45 31

Ratios and Substantial Shareholders2013A 2014A 2015A 2016A 2017A

Profitability RatiosEBITDA Margin % 11.21 9.11 7.86 7.42 7.44EBIT Margin % 7.93 5.87 4.81 4.23 4.06Net Profit Margin % 4.73 3.61 2.80 2.64 2.59Return on Equity % 14.44 11.03 8.98 6.63 6.33Return on Assets % 7.79 5.93 4.98 4.51 4.04

Debt/Safety RatiosNet Debt/Equity % 37.47 39.00 44.94 9.21 10.51Interest Cover x 7.65 7.32 5.87 8.09 9.85

Top 5 Substantial ShareholdersPremier Investments Limited 10.8%Investors Mutual Ltd 9.8%Dimensional Entities 7.0%

Balance Sheet ($M)2013A 2014A 2015A 2016A 2017A

Cash & Equivalent 81 74 53 45 31Receivables 14 17 14 29 17Inventories 364 377 382 396 372Other Current Assets 20 13 32 9 11Current Assets 479 480 481 480 431Prop. Plant & Equipment 509 503 469 445 460Intangibles 931 933 916 904 986Other Non-Current Assets 20 13 32 9 11Non-Current Assets 1,461 1,452 1,406 1,388 1,448Total Assets 1,940 1,933 1,887 1,868 1,879Interest Bearing Debt 421 422 441 147 143Other Liabilities 613 617 582 613 662Total Liabilities 1,034 1,039 1,024 760 806Net Assets 906 893 863 1,108 1,073Share Capital 520 525 525 739 739Reserves -4 -10 3 -11 -9Retained Earnings 380 379 335 379 342Outside Equity Int. 10 -- -- -- --Total Shareholders Equity 906 893 863 1,108 1,073

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Mr Richard Amos

Directors

Mr David Whittle(Non-Executive Director)Mr Garry Arthur Hounsell(Executive Chairman,Executive Director)Ms Christine Joanne Froggatt(Non-Executive Director)Ms JoAnne M Stephenson(Non-Executive Director)Mr Robert (Bob) Edward Thorn(Non-Executive Director)Mr Ian Grainger Cornell(Non-Executive Director)Ms Julie Ann Morrison(Non-Executive Director)

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Myer Holdings Limited

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