Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2023 Earnings Presentation
24 slides from Michael Hill International's earnings presentation, Aug 25, 2023
Slide 1: FY23 Results
For personal use only FY23 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 FY23 Update
Michael Hill International Limited CEO and CFO FY23 Update For personal use only • FY23 Performance Overview • FY23 Financial Results • Group Results • Key Performance Insights • Segment Results • Capital Management Framework • FY24 Trading Update • Strategy Update – Emphasis on Growth • MH Group –
Slide 4: FY23 Performance Overview
FY23 Performance Overview • Record sales, strong margin and second highest comparable EBIT underpinned by: For personal use only • Ability to elevate ATV supported by MHJ’s aspirational brand journey • Leveraging the loyalty program • Product evolution • Retail fundamentals • Brilliance by Michael H
Slide 5: FY23 Financial Snapshot
FY20H1 FY23 Financial Snapshot Group Results FY23 1, 2 FY22 Change For personal use only • Record revenue with growth of $34m Revenue $629.6m $595.2m +6% • Strong gross profit up $20m Gross Profit $404.4m $384.8m +5% • Elevated gross margin maintained Gross Margin 64.2% 64.7% -50bps • Comparable EBI
Slide 6: FY23 Financial Snapshot / Key Performance Insights
FY20H1 FY23 Financial Key Performance For personal use only Snapshot Insights 6
Slide 7: Australia Segment Results
Australia Segment Results Australia (AUD) For personal use only FY231, 2 FY22 FY21 FY20 FY19 Revenue 331.0m 303.4m 312.3m 266.6m 313.6m Gross profit 211.8m 196.9m 194.1m 161.0m 194.1m Gross margin 64.0% 64.9% 62.2% 60.4% 61.9% Segment Comparable EBIT 53.5m 51.8m 54.3m 27.6m 32.6m Comparable EBIT as
Slide 8: New Zealand Segment Results
New Zealand Segment Results New Zealand (NZD) FY231 For personal use only FY22 FY21 FY20 FY19 Revenue 132.4m 125.1m 127.1m 106.7m 120.1m Gross profit 82.0m 79.3m 78.8m 63.6m 73.0m Gross margin 61.9% 63.4% 62.0% 59.6% 60.8% Segment Comparable EBIT 25.6m 30.1m 35.1m 21.1m 24.1m Comparable EBIT as a %
Slide 9: Canada Segment Results
Canada Segment Results Canada (CAD) For personal use only FY231 FY22 FY21 FY20 FY19 Revenue 158.9m 159.7m 118.4m 110.8m 133.1m Gross profit 100.5m 103.6m 72.6m 64.0m 80.7m Gross margin 63.3% 64.9% 61.3% 57.8% 60.6% Segment Comparable EBIT 27.1m 28.8m 12.3m -2.4m 9.8m Comparable EBIT as a % of revenu
Slide 10: Capital Management Framework
Capital Management Framework Final dividend of AU3.5 cps, resulting in total dividend of AU7.5 cps For personal use only On-market share buy-back resulting in 8.63m shares acquired at a cost of $10.2m, representing 2.2% of share capital Entered new markets: Quebec via dual language website, Singapor
Slide 11: FY24 Trading Update
FY24 Trading Update • For the first seven weeks of FY24: For personal use only • Group sales are up 1.2% on prior year, • While for the core Michael Hill brand, sales have continued the recent trend and are down on the record start to FY23. • When compared to both FY21 and FY22: • Group sales are up
Slide 12: Strategy Update - Emphasis on Growth
Strategy Update - Emphasis on Growth Modern, differentiated, omni-channel jewellery brand Brand & Loyalty For personal use only with loyal customers Retail Fundamentals Elevated productivity & customer experience Digital & Omni-first, digital-led & channel agnostic Omni-channel Product Evolution Ele
Slide 13: Brand and Product Elevation
Brand and Product Elevation Marking the moments that create the story of our lives For personal use only Elevated emotive brand-led campaigns Emphasis on craftmanship, quality & sustainability Relentless focus on creative & visual excellence Focus on unique differentiated product Diamonds at our cor
Slide 14: Leveraging of Loyalty Program
Leveraging of Loyalty Program Your love for jewellery rewarded Now over 2m For personal use only Over 2 million loyalty members Focus on customer segmentation and personalisation Targeted AI and data insights Loyalty members are more valuable - ATV 70% higher - GP% 250 bps higher - 34% more transact
Slide 15: Retail Productivity & Store Investment
Retail Productivity & Store Investment Elevating productivity & retail execution For personal use only Productivity up 21% since FY19 and up in all markets Focus on in-store experience, delivering increased customer engagement Dynamic rostering driving more productive labour Elevated visual merchand
Slide 16: Sustainability
Sustainability Announced ESG 2030 manifesto centred around three key pillars – Product, Planet & People For personal use only Launched circular economy offering Re:new: • Digitally-enabled gold recycling platform • Launching a diamond upgrade program • Reimagining and expansion of jewellery repair b
Slide 17: MH Group - Portfolio of Brands
MH Group - Portfolio of Brands ▪ Leading fine jewellery retailer, with a material presence in Australia, New Zealand and Canada For personal use only ▪ Catering to multiple market and consumer segments through differentiated brands and product offerings ▪ Customer focused, detail-oriented, nimble, m
Slide 18: Bevilles: Established Jewellery Retailer with 26 Stores
BEVILLES IS A WELL-ESTABLISHED AND REPUTABLE JEWELLERY RETAILER, WITH A NETWORK OF 26 STORES AND A GROWING ONLINE PRESENCE INITIAL FOCUS PRICE POINT AND PRODUCT MIX ▪ Smooth transition of all team members For personal use only ▪ Store roll-out plan: Three new sites secured, and another three close t
Slide 19: New Digitally-Led Luxury Bespoke Brand
For personal use only • New start-up brand designed to test a completely unique and elevated proposition, capturing an entirely new high-end customer • Brought to life through an immersive digital experience supported by the gradual roll-out of a limited number of showrooms in key capital cities • C
Slide 20: Q&A
Q&A You are able to listen to Q&A via this platform For personal use only If you would like to ask a question, click on “Request To Speak” at the bottom of the broadcast window and follow the instructions to join the audio questions queue. The button will appear at the top of the window if the broad
Slide 21: Appendices
For personal use only Appendices
Slide 22: Appendix A: Bridge from Comparable EBIT to Statutory EBIT
Appendix A: Bridge from Comparable EBIT to Statutory EBIT Calculated as follows: For personal use only (AUD million) FY23 FY22 Comparable EBIT 58.9 62.9 Impact of AASB16 Leases 10.0 13.4 Impact of IFRIC SaaS-related guidance -7.3 -6.0 Bevilles acquisition transaction costs -2.0 Restructuring -0.7 Go
Slide 23: Appendix B: AASB16 Leases & SaaS Impact
Appendix B: AASB16 Leases & SaaS Impact FY23 Impact of FY23 FY22 Change (AUD million) For personal use only Stat AASB16 & SaaS pre-adjustments pre-adjustments pre-adjustments Revenue 629.6 - 629.6 595.2 +5.8% Cost of sales -225.1 - -225.1 -210.4 +7.0% Gross profit 404.4 - 404.4 384.8 +5.1% Employee
Slide 24: Michael Hill International Limited
michael hill INTERNATIONAL LIMITED
Michael Hill International — FY2023 Earnings Presentation on 6ix