Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2021 Earnings Presentation
20 slides from Michael Hill International's earnings presentation, Aug 23, 2021
Slide 1: FY21 Results
For personal use only FY21 RESULTS
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 FY21 Update
Michael Hill International Limited For personal use only CEO and CFO FY21 Update • FY21 Overview • FY21 Financial Results • Group Results • Key Performance Results • Retail Segment Results • Strategy Update – Emphasis on Growth and Margin • Outlook • Appendices 3
Slide 4: FY21 Overview
FY21 Overview For personal use only • Outstanding year – all metrics up • Significant disruption from the global pandemic: • Lengthy lockdowns in Canada and Victoria • Resilience of key Indian supply chain • Impacts on our people and customers • Transformative agenda delivering both strong sales gro
Slide 5: FY21 Group Financial Results Snapshot
FY20H1 FY21 GroupFinancial Results Snapshot For personal use only • Revenue growth in all markets FY21 FY20 Change • Gross profit up $50.7m Revenue $556.5m $492.1m +13.1% Same store sales +8.6% • Delivered significant increase to NPAT and Gross Profit $348.9m $298.2m +17.0% EBIT EBIT $72.4m $14.1m +
Slide 6: FY21 Key Performance Results
FY21 Key Performance Results For personal use only +35.3% $56.6m +8.6% GROUP WEBSITE TRAFFIC COMPARABLE EBIT SAME STORE 18.6m USERS FY20: loss $5.2m SALES GROWTH 6.3% 62.7% $34.8m GROUP SAM E STORE 42.1% 6 1 GROUP SALES DIGITAL SALES BRANDED STORES STORE GROSS MARGIN +53.4% COLLECTION SALES CLOSED O
Slide 7: Michael Hill Segment Results
Michael Hill Segment Results For personal use only Australia (AUD) New Zealand (NZD) Canada (CAD) FY21 FY20 Change FY21 FY20 Change FY21 FY20 Change Revenue 312.3m 266.6m +17.1% 127.1m 106.7m +19.1% 118.4m 110.8m +6.9% Gross profit 194.1m 161.0m +20.6% 78.8m 63.6m +23.8% 72.6m 64.0m +13.5% Gross mar
Slide 8: Strategy Update - Emphasis on Growth and Margin
Strategy Update - Emphasis on Growth and Margin For personal use only Brand Modern, differentiated, omni-channel jewellery brand Digital Digital-first Retail Elevated productivity & customer experience Fundamentals Omni-channel Customer-led & channel agnostic Loyalty Your love for jewellery rewarded
Slide 9: Brand Update
Brand Update For personal use only Modern, differentiated, omni-channel jewellery brand Elevated brand messaging Reducing discount-led campaigns “Made in Australia” Increasing ATV Customer segmentation and personalisation 9
Slide 10: Digital
Digital For personal use only Digital-first Over $34.8m in sales (+53%) Highest profit margin channel Traffic , conversion Refreshed navigation and website Website users increased by 35.3% FY21 traffic over 18.5m users Launch of Medley Continual growth underpinned by omni-channel Conversion rate opt
Slide 11: Retail Fundamentals
Retail Fundamentals For personal use only Elevated productivity & customer experience Eight quarters of SSS growth Roster optimisation Visual excellence and increased training Store refurbishments with improved layout and design Increased focus on retail metrics 11
Slide 12: Omni-channel
Omni-channel For personal use only Customer-led & Benefits of “ship from store” channel agnostic • Improved inventory utilisation “Ship from store” • Reduced costs “Click and reserve” • More efficient “Virtual selling” • Better customer experience Digital appointments “Click and collect” Marketplace
Slide 13: Loyalty
Loyalty Members spend more than non-members For personal use only Your love for jewellery rewarded Significantly more profitable customer • More sales, more often • Higher margin, higher ATV Now over 800,000 members Predictive analytics, powered by AI Targeted communication, bias for action 13
Slide 14: Product Evolution
Product Evolution For personal use only Uniquely Michael Hill Regular product newness Growth in branded collections Lower inventory holdings Focus on craftsmanship Sustainability emphasis 14
Slide 15: Cost Conscious Culture
Cost Conscious Culture For personal use only Unwavering focus on costs Controlled working capital Strong net cash position Reduced supply chain costs Optimised inventory holdings 3PL Canadian distribution facility 15
Slide 16: Outlook
Outlook • Strong SSS in first seven weeks of FY22: For personal use only • Eastern Canada reopened in early July and has been delivering impressive trading results • The Company delivered same store sales growth of +17% • Australia: +9% • New Zealand: +15% • Canada: +24% • However, renewed disruptio
Slide 17: Appendix
For personal use only Appendix
Slide 18: Impacts of COVID-19: Lost Store Trading Days
Impacts of COVID-19: Lost Store Trading Days For personal use only • The group lost 10,447 store trading days in FY21: • AU – 3,458 days • CA – 6,525 days • NZ – 464 days 18
Slide 19: Appendix A: AASB16 Leases Impact
Appendix A: AASB16 Leases Impact For personal use only FY21 Impact of FY21 FY20 Change (AUD million) Stat AASB16 pre-AASB16 pre-AASB16 pre-AASB16 Revenue 556.5 556.5 492.1 +13.1% Cost of sales -207.6 -207.6 -193.9 +7.1% Gross profit 348.9 348.9 298.2 +17.0% Employee benefits expense -147.6 -147.6 -1
Slide 20: For personal use only
For personal use only
Michael Hill International — FY2021 Earnings Presentation on 6ix