Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Investor Presentation (February 2024)
28 slides from Michael Hill International's investor presentation, Feb 26, 2024
Slide 1: FY24H1 Results
\ FY24H1 RESULTS lichael hill. TERNATIONAL LIMITED e
Slide 2: Disclaimer
DISCLAIMER Certain statements in this announcement constitute forward-looking statements. Forward-looking statements are statements (other than statements of historical fact) relating to future events and the anticipated or planned financial and operational performance of Michael Hill International
Slide 3: CEO and CFO FY24H1 Update
Michael Hill International Limited CEO and CFO FY24H1 Update • FY24H1 Performance Overview • FY24H1 Financial Results • Group Results • Segment Results • Current Trading Update • Group Strategy – Emphasis on Growth • Appendices 3
Slide 4: FY24H1 Performance Overview
FY24H1 Performance Overview • Challenging period for the business cycling record performance in FY23, yet still taking market share • Margin under pressure due to input costs and market conditions • Digital sales continued its return to growth • Supporting the evolution of the Michael Hill brand and
Slide 5: FY24H1 Group Results Snapshot
FY20H1 FY24H1 Financial Group Results Snapshot FY24H11 FY23H12 Change • Group revenue (including Bevilles) was up 4%, on a 26-week basis Revenue $363m $349m +4% Statutory Revenue (FY23H1: 27-week basis) $363m Flat • Gross profit (including Bevilles) was down 2%, on a 26-week basis Gross Profit $223m
Slide 6: FY24H1 Segment Results
FY24H1 Segment Results Australia (AUD) New Zealand (NZD) Canada (CAD) FY24H11 FY23H12 Change FY24H1 FY23H12 Change FY24H1 FY23H12 Change Revenue 202m 184m +10.2% 65m 73m -10.3% 89m 88m +0.5% Statutory Revenue (FY23H1: 27-week basis) 191m +6.1% 76m -14.2% 92m -3.8% Gross profit 123m 118m +3.7% 39m 46
Slide 7: Current Trading Update
Current Trading Update • For the first seven weeks of FY24H2, Group sales (including Bevilles) are up 9.5% on prior year, with the Michael Hill Australia retail business driving the improvement in performance against FY24H1: • Australian segment sales (including Bevilles) +19.6% • New Zealand segmen
Slide 8: Group Strategy – Emphasis on Growth
Group Strategy – Emphasis on Growth 2020 – 2023 2023 – 2024 2024 – 2025 2025 – 2030 Reposition Establish Product & Network Michael Hill Portfolio of Brand Expansion & Brand Brands Proposition Productivity 8
Slide 9: Reposition Michael Hill Brand, 2020 - 2023
Reposition Michael Hill Brand, 2020 - 2023 Brand & Loyalty Digital & Omni-channel Contemporary premium jewellery brand, leveraging Omni- first, channel agnostic, best-in-class loyalty program digitally-led new markets • Omni now represents 60% of digital sales • Marketplaces – growth in existing & n
Slide 10: Reposition Michael Hill Brand, 2020 - 2023
Reposition Michael Hill Brand, 2020 - 2023 Retail Fundamentals Product Evolution Elevated customer experience, Premium yet accessible, unwavering focus on productivity with diamonds at our core “The Jeweller that cares” ~30% 10
Slide 11: Establish Portfolio of Brands, 2023 - 2024
Establish Portfolio of Brands, 2023 - 2024 Michael Hill Group now services all significant customer segments of the fine jewellery category, and delivers multiple new growth pipelines. New digitally-led bespoke jewellery brand Luxury customer with higher ATV LUXURY Limited showroom presence
Slide 12: Product & Brand Proposition, 2024 - 2025
Product & Brand Proposition, 2024 - 2025 With the Michael Hill Group multi-brand strategy now in place, each brand is uniquely positioned for different segments and price propositions, and its own strategic priorities: Premium Price / Luxury Uniquely modern, high end bespoke Premium contemporary cla
Slide 13: Fine Jewellers
FINE JEWELLERS
Slide 14: Product & Brand Proposition, 2024 - 2025
Product & Brand Proposition, 2024 - 2025 14
Slide 15: Product & Brand Proposition, 2024 - 2025
Product & Brand Proposition, 2024 - 2025 Data on this slide relates to the period March 2022 to February 2023 15
Slide 16: Product & Brand Proposition, 2024 - 2025
Product & Brand Proposition, 2024 - 2025 16
Slide 17: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 With each brand uniquely positioned, the group will be well-placed to grow revenue and profits through a more productive and expanded distribution network. 17
Slide 18: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 “Store of the future” becomes a reality 18
Slide 19: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 19
Slide 20: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 New Stores Conversion Stores Network Expansion 20
Slide 21: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 21
Slide 22: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 The multi-brand strategy is underpinned by a philosophy of leveraging group capabilities to drive productivity across all brands 22
Slide 23: The Michael Hill Foundation represents our ongoing commitment
The Michael Hill Foundation represents our ongoing commitment to meaningful change, and our dedication to a better world. The Foundation encompasses two key areas of focus: Empowering Women and Nature Restoration. Through continual initiatives and key charity partnerships, we are dedicated to empowe
Slide 24: Q&A
Q&A You are able to listen to Q&A via this platform If you would like to ask a question, please click on ‘Request to Speak’ button at the bottom of the broadcast window. If you are in full screen broadcast mode you will need to minimise to see this button. 24
Slide 25: Appendices
Appendices . ] '
Slide 26: Appendix A: Bridge from Comparable EBIT to Reported EBIT
Appendix A: Bridge from Comparable EBIT to Reported EBIT Calculated as follows: (AUD million) FY24H1 FY23H1 Comparable EBIT 31.3 54.5 Impact of AASB16 Leases 5.5 4.8 Impact of IFRIC SaaS-related guidance -2.7 -0.5 Litigation judgement -4.0 - Bevilles acquisition transaction costs -1.1 - Employee res
Slide 27: Appendix B: AASB16 Leases & SaaS Impact
Appendix B: AASB16 Leases & SaaS Impact FY24H1 Impact of FY24H1 FY23H1 Change (AUD million) Stat AASB16 & SaaS pre-adjustments pre-adjustments pre-adjustments Revenue 362.7 - 362.7 363.4 -0.2% Cost of sales -139.7 - -139.7 -126.5 +10.4% Gross profit 223.0 - 223.0 236.9 -5.9% Employee benefits expens
Slide 28: Slide 28
Michael Hill International — Investor Presentation (February 2024) on 6ix