Breville : Change to Reporting Segments

25 January 2017

Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street,

Sydney NSW 2000

BREVILLE - CHANGE TO REPORTING SEGMENTS

At the past two reporting periods, Breville Group Limited (ASX:BRG) foreshadowed that it would be changing its external reporting segments to more accurately reflect the way the company is being managed.

This change reflects the transition from a dispersed, geographic structure to a centralized, business unit driven global structure. In this new organisational model, the two segments reflect the two business models in the company: (i) global, innovation driven, product business, and (ii) a distribution business. For both business units, the geographic regions execute the sales and distribution functions, supported by centralised functions (specifically, product development, marketing, and operations).

This new segment reporting format will be used in the half year ending 31 December 2016, with these results to be released on 23 February 2017.

Segment	Segment Description
Global Product	Sells premium products designed and developed by Breville, which are sold globally (currently 65 countries). Products included in this segment may be sold directly or through 3rd parties, and may be branded Breville, Sage, or carry a 3rd party brand.
Distribution	Sells products that are designed and developed by a 3rd party. Breville distributes these products pursuant to a license or distribution agreement, or they are sourced directly from manufacturers. Products in this business unit may be sold under a brand owned by Breville (e.g., Kambrook, Breville), or they may be distributed under a 3rd party brand (e.g., Philips1 or Nespresso2).

1. As announced to the market on 3 November 2016, the Philips distribution agreement for Australia and New Zealand expires on 31 May 2017.

2. As communicated on 25 August 2016 at the time of Breville's FY16 results announcement, the distribution territory for

Nespresso designed and developed products has been expanded from ANZ to include North America with effect from 2H17.

To assist market participants in analysing the Group's results, please find attached a summary of last year's (FY16) first half and full year financial results in the new reporting segment format.

Yours faithfully

Sasha Kitto Company Secretary

Breville Group Limited

Telephone: [phone]

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Segment Note Restated - 6 months ended 31 December 2015 and year ended 30 June 2016

Restated 1H16 - 6 months ended 31 December 2015	Global Product segment	Distribution segment	Total	Restated FY16 - year ended 30 June 2016	Global Product segment	Distribution segment	Total
$'000	$'000	$'000	$'000	$'000	$'000
Segment revenue	245,126	86,116	331,242	Segment revenue	427,205	149,368	576,573
Segment results	Segment results
EBITDA	45,234	5,467	50,701	EBITDA	74,069	9,343	83,412
Depreciation and amortisation	(4,269)	(379)	(4,648)	Depreciation and amortisation	(8,920)	(760)	(9,680)
EBIT	40,965	5,088	46,053	EBIT	65,149	8,583	73,732
Finance income	151	Finance income	336
Finance costs	(1,317)	Finance costs	(2,549)
Profit before income tax	44,887	Profit before income tax	71,519
Other segment information
Capital expenditure - plant and equipment	1,366	378	1,744
Capital expenditure - intangibles	11,319	-	11,319
Global Product revenue	Global Product revenue
North America	151,766	North America	251,752
ANZ	52,722	ANZ	93,201
Rest of World	40,638	Rest of World	82,252
Total Global Product revenue	245,126	Total Global Product revenue	427,205

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