Michael Hill International Ltd. · ASX:MHJ

Michael Hill International — Investor Presentation (April 2023)

15 slides from Michael Hill International's investor presentation, Apr 19, 2023

  1. Slide 1: Acquisition of Bevilles

    ACQUISITION OF BEVILLES 19 APRIL 2023

  2. Slide 2: Michael Hill Aspirational Brand Journey

    MICHAEL HILL ASPIRATIONAL BRAND JOURNEY ASPIRATIONAL BRAND JOURNEY STRATEGIC PILLARS LUXURY PREMIUM MID-MARKET VALUE 2

  3. Slide 3: Michael Hill Investment Driving Growth

    MICHAEL HILL INVESTMENT DRIVING GROWTH CAPITAL MANAGEMENT FRAMEWORK  Brand elevation – driving higher ATV  Increasing retail productivity  Refreshed Policy aligned to strong business Dividend Policy  Product evolution through newness and performance 50% - 75% adjusted NPAT Organic Growth elevati

  4. Slide 4: Executing the Acquisition Strategy

    EXECUTING THE ACQUISITION STRATEGY ACQUISITION OF BEVILLES BRAND, DELIVERS INCREMENTAL STORE ROLLOUT GROWTH STRATEGY  281 physical stores across Australia (148), New Zealand (47) and Canada (86) LUXURY  Brand elevation strategy underway, moving further into the premium segment  Product elevation

  5. Slide 5: Transaction Overview

    TRANSACTION OVERVIEW TRANSACTION EXPECTED TO BE IMMEDIATELY EPS ACCRETIVE  Acquire the business and Selected Assets1 of Bevilles for a Net Enterprise Value (EV) of ~$45m ̶ Includes upfront consideration, net of working capital adjustments, and minimum $1m earn-out payment TRANSACTION  Earn-out pay

  6. Slide 6: Bevilles Overview

    BEVILLES OVERVIEW BEVILLES IS A WELL-ESTABLISHED AND REPUTABLE JEWELLERY RETAILER, WITH A NETWORK OF 26 STORES AND A GROWING ONLINE PRESENCE BUSINESS OVERVIEW CURRENT STORE NETWORK  Family-owned Australian jewellery and watch retailer known for BEVILLES SALES BY creating and selling quality product

  7. Slide 7: Strategic Brand Positioning

    STRATEGIC BRAND POSITIONING BRAND, PRODUCT AND CUSTOMER DIFFERENTIATION WITH STRATEGIC OPERATIONAL ALIGNMENT BEVILLES MICHAEL HILL Category Value/Mid-Market Limited crossover Premium Position Customer Eternity Club Loyalty Program Limited crossover Brilliance by Michael Hill Loyalty Program Base wit

  8. Slide 8: Complementary Strategic Fit and Sales Channels

    COMPLEMENTARY STRATEGIC FIT AND SALES CHANNELS MICHAEL HILL AND BEVILLES: SYNERGISTIC SALES CHANNELS WITH MEANINGFUL GROWTH POTENTIAL SALES CHANNELS STORE PRESENCE  Stores located in high-traffic areas AUSTRALIA 2  Location of store network assists with freight synergies 148 MHJ STORES  Large opp

  9. Slide 9: Complementary Brands & Products

    COMPLEMENTARY BRANDS & PRODUCTS BEVILLES PRODUCTS, BRANDS AND COLLECTIONS ARE COMPLEMENTARY TO MHJ DIFFERENTIATED PRODUCT OFFERING TO MHJ THIRD PARTY BRANDS - BEVILLES AND WATCHES GALORE  Bevilles has a gifting and transactional focus with products targeting a more accessible price point  Key prod

  10. Slide 10: Significant Opportunity for MHJ to Add Value

    SIGNIFICANT OPPORTUNITY FOR MHJ TO ADD VALUE GROWTH OPPORTUNTIES AND EBITDA ENHANCEMENTS READILY ACHIEVEABLE KEY GROWTH OPPORTUNTIES EBITDA ENHANCEMENT OPPORTUNITIES  Substantial store roll-out opportunity in short and medium term  Alignment of shared services  Rapidly expand lab diamonds and new

  11. Slide 11: Post Acquisition Group Overview

    POST ACQUISITION GROUP OVERVIEW  Leading jewellery and watch retailer, with a material presence in Australia, New Zealand and Canada  Catering to multiple market and consumer segments through products with broad appeal  Customer focused, detail oriented, nimble, multi-channel operations ASX & NZX

  12. Slide 12: Appendices

    APPENDICES 12

  13. Slide 13: Earn-out Structure

    EARN-OUT STRUCTURE EARN-OUT PAYMENT TIED TO MHJ SHARE PRICE PERFORMANCE, WITH A MINIMUM FLOOR OF $1M  Earn-out paid in cash in two tranches NO. OF SHARES ̶ Tranche 1: paid one year post Completion (first anniversary) 30-DAY ASX VWAP1 (A$) YEAR 1 YEAR 2 ̶ Tranche 2: paid two years post Completion (s

  14. Slide 14: 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 Internationa

  15. Slide 15: INTERNATIONA

    INTERNATIONA

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