Ann: Half Year Ended 31 December 2015 - Investor Presentation, page-6

Page 10 of the Half Year Presentation is the whole point of the new strategy adopted by Jim Clayton, the new CEO of BRG.

95% of EBIT in 2015 was produced by Breville products that are developed in house and marketed globally as premium kitchen appliances. 5% of EBIT in 2015 was produced by Breville ANZ, Kambrook, Phillips, Ronson & Nespresso products (products sourced externally and sold as Breville, Kambrook or Ronson).

By focusing on developing higher margin innovative products faster and more efficiently and expanding the existing and new markets, BRG should be able to avoid the cut-throat competition happening at the lower end of the market. The reality is, this is the only way to survive in this new world, where Aldi, Big W, Kmart and Target are selling $9 kettle and $9 toasters.

It won't be easy for Jim Clayton to lead BRG in navigating the various challenges that lie ahead in the next 2-3 years. But, BRG does have a history of producing very innovative products and it does have a pristine balance sheet that can support the various capital expenditure programs. BRG's major shareholder, Premier Investment, will also make sure that this company transformation program is successful.

For now, I will give them the benefit of the doubt and support the current management and continue to hold my shares.