Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2020 Earnings Presentation
21 slides from Michael Hill International's earnings presentation, Aug 19, 2020
Slide 1: FY20 Results
For personal use only FY20 RESULTS
Slide 2: Disclaimer
DISCLAIMER For personal use only 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 Micha
Slide 3: CEO and CFO FY20 Update
Michael Hill International Limited CEO and CFO FY20 Update For personal use only • FY20 Performance Overview • FY20 Strategy Execution • FY20 Financial Summary • Financial Snapshot • Key Performance Results • Impact of COVID-19: Store Trading Days • FY20 Financial Results • Group Results • Retail Se
Slide 4: FY20 Performance Overview
FY20 Performance Overview Strong retail fundamentals embedded within a disciplined framework providing a For personal use only robust platform to enable a true omni-channel customer experience • Building on strong heritage foundations - evolving into a modern, differentiated, omni-channel jewellery
Slide 5: FY20 Strategy Execution
FY20 Strategy Execution For personal use only Unwavering Focus on Costs Loyalty • Optimised retail and support office structures • Online roll-out in October 2019 • Decisive cash preservation and cost • To date over 200,000 members management throughout COVID-19 store • Delivering higher ATV and gro
Slide 6: FY20 Financial Snapshot
FY20 Financial FY20H1 Snapshot Snapshot Financial For personal use only • Positive same store sales growth momentum continued FY20 FY19 Change throughout the year until COVID-19: o FY20Q1: AU +6.3%, NZ +9.8%, CA +13.4% Revenue $492.1m $569.5m -13.6% o FY20Q2: AU +1.4%, NZ +4.8%, CA +1.0% o FY20Q3 9w
Slide 7: FY20 Key Performance Results
FY20 Key Performance Results For personal use only $25.7m +2.7% GROUP UNDERLYING TRADING1 EBIT ADJUSTED2 SAME STORE SALES FY19: $34.6m GROWTH 6.3 % 60.6% $24.7m GROUP SAME STORE 37.3% 1 17 GROUP D I G I TASALES L SA L E S BRANDED STO R E STO R E S GROSS MARGIN +54.7% CO L L E C T I O N SA L E S C LO
Slide 8: Impact of COVID-19: Store Trading Days
Impact FY20H1of COVID-19: StoreSnapshot Financial Trading Days For personal use only • COVID-19 store closure periods: • AU: from 24 March for 5 to 10 weeks • NZ: from 24 March for 8 to 9 weeks • CA: from 20 March for 10 to 13 weeks • Australia progressively opened from May, with the store closure p
Slide 9: Group Results
GroupResults Group Results • Group revenue decreased by 13.6%, largely due to COVID-19 store closures For personal use only • Estimated impact of COVID-19 store closure period ~$80m of revenue • Adjusted2 same store sales up 2.7% • Digital sales increased by 54.7% to a record $24.7m (FY19: $16.0m) •
Slide 10: Michael Hill Australia
Michael Hill Australia RETAIL SE G M E N T For personal use only • Revenue declined by 15.0%, largely due to temporary COVID-19 store closures and the permanent closure of 13 under-performing stores • Estimated impact of COVID-19 store closure period ~$40m of revenue • Adjusted2 same store sales mar
Slide 11: Michael Hill New Zealand
Michael Hill New Zealand RETAIL SE G M E N T For personal use only • Revenue declined by 11.1%, largely due to temporary COVID-19 store closures • Estimated impact of COVID-19 store closure period ~$16m of revenue • Adjusted2 same store sales increased by 2.4% • Digital sales increased to $3.6m (FY1
Slide 12: Michael Hill Canada
Michael Hill Canada RETAIL SE G M E N T For personal use only • Revenue declined by 16.8%, largely due to temporary COVID-19 store closures • Estimated impact of COVID-19 store closure period ~$24m of revenue • Adjusted2 same store sales increased by 2.3% • Digital sales increased by 125% to $6.0m (
Slide 13: Digital Growth
Digital FY20H1 Growth Financial Snapshot For personal use only • FY20Q4 delivered a surge in digital sales as customers embraced online shopping channels, with all digital sales now representing 5.0% of total sales (FY19: 2.8%) • The Company delivered a number of key digital initiatives to meet our
Slide 14: Strategy Update - Emphasis on Growth and Margin
Strategy Update - Emphasis on Growth and Margin For personal use only 14
Slide 15: Strategy Update: Omni-Channel Opportunities and Digital-First
Strategy Update - Emphasis on Growth and Margin Omni-Channel Opportunities For personal use only • Roll-out of “click and collect” and “click and reserve” • Develop “ship from store” capabilities • Expand marketplace sales opportunities (Iconic, WeChat) • Personal in-store and online jeweller appoin
Slide 16: Strategy Update: Canadian New Frontiers and Product Evolution
Strategy Update - Emphasis on Growth and Margin Canadian New Frontiers For personal use only • New retail leadership structure delivering on retail fundamentals • Canadian productivity remains a genuine near term opportunity with ~ 8% increase in FY20H1 • Execute Canadian third party supply chain so
Slide 17: Medley jewellery
Born and led by the team at Michael Hill, Medley’s core purpose is to inspire true confidence and effortless style, backed by its aspirational and attainable on-trend jewellery offering medleyjewellery.com.au For personal use only 17
Slide 18: Questions and Answers
Questions and Answers For personal use only
Slide 19: Michael Hill - we're for love
michael hill we're for love
Slide 20: Appendix A: AASB Leases Impact
Appendix A: AASB 16 Leases Impact For personal use only FY20 Impact of FY20 FY19 Change Key Points: (AUD million) Stat AASB 16 pre-AASB 16 pre-AASB 16 pre-AASB 16 - Adopted modified retrospective approach from Revenue 492.1 492.1 569.5 (13.6)% 1 July 2019. No restatement of prior year comparatives r
Slide 21: Appendix B: Earnings Comparison
Appendix FY20H1 B: Earnings FinancialComparison Snapshot For personal use only To assist analysts and investors in understanding a very complex year Table: Comparison of FY19 to Calendar Year 2019 FY20H1 FY19H2 Calendar FY19 Variance Year 2019 CY19 v FY19 Revenue $329.6m $254.1m $583.7m $569.5m +2.5
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