MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	MYER PTY LTD
Registered Office :	Level 7, 800 Collins Street Docklands Victoria 3008
Country :	Australia
Financials (as on) :	27.07.2013
Date of Incorporation :	09.02.1928
Com. Reg. No.:	004143239
Legal Form :	Company, Limited by Shares
Line of Business :	Subject operates a department store chain, retailing a broad range of merchandise including women's, men's and children's clothing, footwear and accessories; cosmetics and fragrance; homewares; electrical; furniture and bedding; toys; books and stationery; food and confectionery; and travel goods.
No. of Employees	12,500

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Australia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

AUSTRALIA ECONOMIC OVERVIEW

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam

Source : CIA

Company name and address

Verified Address

Subject name MYER PTY LTD Business address 800 Collins Street Town Docklands Province Victoria Zip / Postal code 3008 Country Australia Telephone +61 3 86676000 Fax +61 3 86676091 Website www.myer.com.au

Registered address Level 7, 800 Collins Street Town Docklands Province Victoria Zip / Postal code 3008 Country Australia Postal address P.O. Box 869J Town Melbourne Province Victoria Zip / Postal code 3001 Country Australia

SUMMARY DETAILS

Report Summary

Date registered 09/02/1928 Legal form Australian Proprietary Company, Limited by Shares Key personnel Bernard Joseph Brookes Line of business The Subject operates a department store chain, retailing a broad range of merchandise including women's, men's and children's clothing, footwear and accessories; cosmetics and fragrance; homewares; electrical; furniture and bedding; toys; books and stationery; food and confectionery; and travel goods. Staff employed 12,500 employees (Myer Group)

Paid-up capital AUD841,532,130.00 Sales turnover / Revenue / Income AUD3,144,904,000.00 (Group-Consolidated 12 months, 27/07/2013) Net income / loss AUD129,877,000.00 (Group-Consolidated 12 months, 27/07/2013) Total assets AUD1,939,705,000.00 (Group-Consolidated 12 months, 27/07/2013) Share equity AUD905,642,000.00 (Group-Consolidated 12 months, 27/07/2013)

Subject’s Credit Risk Analysis

Country risk Country risk is minimal Operation trend Operational trend is steady Management experience Management is adequately experienced Financial performance Group financial performance is very good Remarks Larger credit can still be considered as the Subject's is well positioned in the market and the financial stability of the group is positive.

Organisation structure Organisational structure is consistent Detrimental No detrimental found Payment history No payment delays noted

STATUTORY DETAILS

Registry Information

Date registered 09/02/1928 Legal form Australian Proprietary Company, Limited by Shares Registration number Australian Company Number: 004143239 Registered authority Australian Securities and Investments Commission Tax / VAT number Australian Business Number: 83004143239

Statutory status Active Previous name MYER LIMITED MYER STORES LIMITED MYER SOUTHERN STORES LIMITED MYER (BALLARAT) LIMITED THE MYER EMPORIUM (BALLARAT) LIMITED THE MYER EMPORIUM (BALLARAT) PROPRIETARY LIMITED PATERSON POWELL PROPRIETARY LIMITED PATERSON POWELL & SANDFORD PROPRIETARY LIMITED Change of legal form None reported.

BOARD OF MANAGEMENT

Key Personnel

Name Bernard Joseph Brookes Designation Managing Director Name Mark Stephen Ashby Designation Chief Financial Officer Name Marion Joan Rodwell Designation General Counsel and Company Secretary

BOARD OF DIRECTORS

Appointments

Name Bernard Joseph Brookes Title Director Appointment date 02/06/06 Address 14 Haven Place Dural, NSW 2158 Australia Biography Born on 08/11/1959 in United Kingdom. Mr. Bernie Brookes is Chief Executive Officer, Managing Director and Executive Director of Myer Holdings Ltd since July 12, 2006. Bernie was appointed Chief Executive Officer and Managing Director of the Myer Group on 2 June 2006. Since his appointment, Bernie has been responsible for the turnaround and rebuilding of the Myer business. Bernie has spent over 36 years working within the retail industry in local and international roles in India and China. Bernie previously held numerous executive roles with Woolworths and was instrumental in Woolworths’ Project Refresh, reducing costs by more than $5 billion over five years. He also held a variety of general management positions in three states across buying, IT, marketing and operations. Bernie has held executive roles of industry organisations including the Retail Traders Association in Queensland and Victoria and President of the Queensland Grocery Association. He supports numerous charitable organisations, including The Salvation Army, and is patron of the Myer Stores Community Fund and patron of the Australian Joe Berry Memorial Award. Bernie was awarded the Sir Charles McGrath award for marketing excellence by the Australian Marketing Institute in 2012, and in 2013 was inducted into the Australian Retailers Association Hall of Fame, was awarded the William Booth Medal by The Salvation Army and the Paul Harris Fellow for Service to the Community for the Rotary Club, Sydney. Bernie is also currently the Australian representative judge of the World Retail Awards. Bernie holds a Bachelor of Arts degree and a Diploma of Education from Macquarie University. He is also a Fellow of AIM. Bernie is currently a Territorial Advisory Board Member of The Salvation Army Australia and on the Advisory Boards of Inghams Enterprises/TPG and First Unity Financial Group. He is a director of Intercontinental Group of Department Stores. Name Mark Stephen Ashby Title Director Appointment date 30/06/11 Address 1 Lakewood Court MacLeod, VIC 3085 Australia Biography Born on 15/03/1960 in Melbourne, Victoria, Australia. Mr. Mark Ashby has been Chief Financial Officer of Myer Holdings Ltd since January 2008. In his role, he manages the financial structure of Myer, including all the accounting aspects of the organisation as well as statutory reporting. In addition, his responsibilities cover treasury management, compliance, internal audit and the Financial Services division of the business. He has held CFO positions since 1990 for both local and international companies in retail, wholesale, technology and franchise industries. Prior to joining Myer, he spent four years as the CFO of Mitre 10 Australia, was the Finance Director of Motorola and worked as a Finance Director/CFO in fashion retail and technology organisations. He is a member of the Australian Institute of Company Directors. Name Christopher John Lauder Title Director Appointment date 26/03/14 Address 10 Malei Court Templestowe, VIC 3106 Australia Biography Born on 08/06/1975 in Melbourne, Victoria, Australia. Name Marion Joan Rodwell Title Company Secretary Appointment date 02/04/08 Address 339 Danks Street Middle Park, VIC 3206 Australia Biography Born on 28/01/1963 in Melbourne, Victoria, Australia. Ms. Marion Rodwell has been Group General Counsel and Company Secretary of Myer Holdings Ltd since March 31, 2008. She manages the legal function of the Company, incorporating the provision of legal advice to the Company and the management of the legal group. In addition, she is Company Secretary of all companies in the Myer Group. She has corporate, commercial and governance experience, having held General Counsel and Company Secretary roles in the financial services, gaming and retail industries over many years. Previously, she held the role of General Counsel and Company Secretary of Tattersall’s and, prior to that, she was General Counsel and Company Secretary of IOOF. She was involved in the initial public offering of Tattersall’s in 2005 and has negotiated various joint venture and supply arrangements within Australia and internationally. She is a member of the Law Institute of Victoria and the Australian Corporate Lawyers Association. In 2010, she was awarded ACLA Australian Corporate Lawyer of the Year.

Staff employed 12,500 employees (Myer Group)

Other Appointments

Auditor PRICEWATERHOUSECOOPERS Level 19, Freshwater Place 2 Southbank Boulevard Southbank, VIC 3006 Australia

SHARE CAPITAL

Composition

Authorized capital AUD841,532,130.00 Number / Type of shares 26,465 Cumulative Non-Participating Non-Redeemable Preference Shares / 958,200 Ordinary Shares / 100 Redeemable A Preference Shares / 8,410,000 Redeemable Preference Shares Share par value AUD 2 for Cumulative Non-Participating Non-Redeemable Preference Share / AUD 0.5 for Ordinary Share / AUD 1 for Redeemable A Preference Share / AUD 100 for Redeemable Preference Share Issued capital AUD841,532,130.00

Paid-up capital AUD841,532,130.00

OWNERSHIP / SHAREHOLDERS

Composition

How listed Full list Shareholder name MYER GROUP PTY LTD Address 800 Collins Street Docklands, VIC 3008 Australia Number / Type of shares 26,465 Cumulative Non-Participating Non-Redeemable Preference Shares / 958,200 Ordinary Shares / 100 Redeemable A Preference Shares / 5,910,000 Redeemable Preference Shares Shareholder name THE MYER EMPORIUM PTY LTD Address 800 Collins Street Docklands, VIC 3008 Australia Number / Type of shares 2,500,000 Redeemable Preference Shares

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name MYER HOLDINGS LIMITED Affiliation type Ultimate Holding Company Country of business Australia Comments Myer Holdings Limited, together with its subsidiaries, operates department stores in Australia. The company’s stores offer various product categories that include women’s wear; men’s wear; youth wear; children’s wear; intimate apparel; beauty, fragrance, and cosmetics; home wares; electrical goods; toys; footwear, handbags, and accessories; furniture; and general merchandise. It also provides retail customer loyalty programs. The company operates approximately 67 stores under the Myer brand name. Myer Holdings Limited was founded in 1900 and is based in Docklands, Australia. Company name MYER GROUP PTY LTD Affiliation type Parent Company Country of business Australia Company name THE MYER EMPORIUM PTY LTD Affiliation type Minority Shareholder Country of business Australia Company name MYER GROUP FINANCE LIMITED Affiliation type Sister Company Country of business Australia Company name MYER SOURCING ASIA LIMITED Affiliation type Sister Company Country of business Hong Kong Company name MYER TRAVEL PTY LTD Affiliation type Sister Company Country of business Australia Company name BOOGIE & BOOGIE PTY LIMITED Affiliation type Sister Company Country of business Australia Company name WAREHOUSE SOLUTIONS PTY LTD Affiliation type Sister Company Country of business Australia Company name NB COLLINS PTY LTD Affiliation type Sister Company Country of business Australia Company name NB RUSSELL PTY LTD Affiliation type Sister Company Country of business Australia

Remarks on corporate affiliations and related companies Other companies of the Myer group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank National Australia Bank Limited Address Australia

Comments It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages

None reported.

Legal Filings

Bankruptcy filings None reported. Court judgements None reported.

Tax liens None reported. Others None reported.

FINANCIAL STATISTICS

Description

Financial statement source Public Record Sources Financial statement date 27/07/13 Style of financial statement Full audited

Currency of financial statement Australia Dollar (AUD) Exchange rate 1 USD = AUD 1.07 as of 10-07-2014

Concise Financial Data	Consolidation style	Group Consolidated	Group Consolidated
	Currency	Australia Dollar (AUD)	Australia Dollar (AUD)
	Date of financial year end	27/07/13	28/07/12
	Length of financial accounts	12 months	12 months
	Sales turnover / Revenue / Income	3,144,904,000.00	3,119,119,000.00
	Gross profit	1,311,611,000.00	1,288,421,000.00
	Operating profit / Profit from operations	214,849,000.00	234,632,000.00
	Profit / Loss before tax	186,484,000.00	204,868,000.00
	Net income / loss	129,877,000.00	141,067,000.00
	Non-current assets	1,460,529,000.00	1,476,721,000.00
	Property, plant and equipment	508,974,000.00	515,482,000.00
	Current assets	479,176,000.00	441,472,000.00
	Inventories	363,880,000.00	385,702,000.00
	Cash and cash equivalents	81,470,000.00	38,058,000.00
	Accounts receivable	24,384,000.00	17,712,000.00
	Total assets	1,939,705,000.00	1,918,193,000.00
	Current liabilities	522,729,000.00	502,869,000.00
	Non-current liabilities	511,334,000.00	537,644,000.00
	Accounts payable	387,673,000.00	397,137,000.00
	Total liabilities	1,034,063,000.00	1,040,513,000.00
	Share equity	905,642,000.00	877,680,000.00
	Retained earnings	379,722,000.00	363,357,000.00
	Reserves	-4,024,000.00	-14,800,000.00

Remarks

The group consolidated financial statement above relates to the Subject's Ultimate Holding Company Myer Holdings Limited and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject operates Myer department stores in Australia. It offers women’s wear, menswear, youth fashion, children’s wear, beauty, fragrance and cosmetics, home wares, electrical goods, toys, fashion accessories and general merchandise products. The Subject has stores in Western Australia, South Australia, Queensland, New South Wales, Australian Capital Territory, Victoria, and Tasmania in Australia. The Subject operates as a subsidiary of Myer Group Pty. Ltd. and is ultimately owned by Myer Holdings Limited, a public listed company on Australia Stock Exchange. Myer is Australia’s largest department store group and offers more than 600,000 product lines comprising 2,400 brands sourced from over 800 suppliers globally. Myer Holdings Limited operates 67 stores across Australia generating total sales of over $3.144 billion in 2013. Products and services Apparel for women, men, and children Electrical goods Cosmetics Gifts Toys Furniture Home ware products

Purchases

Local The Subject sources its product(s) / material(s) locally.

International The Subject sources its product(s) from countries worldwide.

Sales

Local The Subject sells its product(s) locally.

International None reported.

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of an administrative office.

Branches In addition, the Subject operates from 67 department stores located across Australia.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank Reserve Bank of Australia Reserve of foreign exchange and gold US$ 46.714 billion Gross domestic product (GDP) US$ 1.586 trillion Purchasing power parity (GPP) 954.296 billion of International dollars GDP per capita (current prices) US$ 68,916 GDP composition by sector agriculture: 4% industry: 25.6% services: 70.4% Inflation 2010: 2.8% 2011: 3.4% 2012: 2.7% Unemployment rate 2010: 5.2% 2011: 5.1% 2012: 5.2%

Public debt (general Government gross debt as percentage (%) of GDP) 2010: 20.4% 2011: 22.9% 2012: 24% Government bond ratings Standard & Poors: AAA Moodys rating: Aaa Moodys outlook: STA Market value of publicly traded shares US$1.198 trillion Largest companies Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs), Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

Trade and Competitiveness Overview

Total exports US$263.9 billion Export commodities Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment Total imports US$239.7 billion Import commodities Machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products Best countries for doing business 10 out of 185 countries Global competitiveness ranking 20 (ranking by country on a basis of 144, the first is the best)

Major export partners China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8% Major import partners China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7% FDI inflows 2009: US$26,554 million 2010: US$35,556 million 2011: US$41,317 million FDI outflows 2009: US$16,693 million 2010: US$12,791 million 2011: US$19,999 million

Country and Population Overview

Total population 22.68 million Total area 7,692,024 km2 Capital Canberra

Currency Australian dollars (AUD) Internet users as percentage (%) of total population 79%

PAYMENT OUTLOOK

Purchases Term

Local Bank transfer, Prepayment, Credit up to 120 days

International L/C, Prepayment, Telegraphic transfer, Credit up to 120 days

Sales Term

Local Cash, Credit card

Trade Reference / Payment Behaviour

Comments As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources Interviews and material provided by the Subject Other official and local business sources

Attachments

Attachments Group consolidated financial statements List of affiliated companies

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.103.14
Euro	1	Rs.81.66

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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