ADAIRS LIMITED — Capital/Financing Update 2017

Oct 17, 2017

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Release to the Australian Securities Exchange

Market update – Adairs increases FY18 Guidance

Melbourne 18 October 2017: Adairs Limited (‘Adairs’) provides this update to its FY18 earnings guidance.

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----- Start of picture text ----- Guidance Update ($m) Revised Guidance Previous GuidanceYear End Stores 166 - 168 166 - 168Sales ($m) 290 - 305 285 - 300Gross Margin % 59% - 60% 59% - 60%EBIT ($m) 34.5 - 39 33 - 37Capital Investment ($m) 9 - 11 9 - 11----- End of picture text -----

Year to date LFL growth as at 15 October is +13%.

Adairs CEO, Mr Mark Ronan said; “While our YTD results have been pleasing, the key trading periods and promotional events lay ahead in the financial year.”

Adairs expects the rate of LFL sales growth to moderate downward from the levels observed in the YTD period. We expect LFL sales growth for FY18 to be in the range of 5 – 10%.

Adairs will discuss its’ YTD trading, strategy and outlook further at its upcoming AGM.

For further information please contact:

Investors & media:

Ronn Bechler, Market Eye P: +61-400 009 774

E: ronn.bechler@marketeye.com.au

Adairs Limited www.adairs.com.au 2 International Court, Scoresby, Victoria, Australia, 3179