Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — H1 FY2017 Earnings Presentation
29 slides from Michael Hill International's earnings presentation, Feb 17, 2017
Slide 1: Interim Results 31 December 2016
michael hill. INTERNATIONAL LIMITED INTERIM RESULTS 31 DECEMBER 2016
Slide 2: Disclaimer
DISCLAIMER This interim results presentation dated 16 February 2017 provides additional comment on the half year results announcement released to ASX and NZX on the same date. As such, it should be read in conjunction with, and subject to, the explanations and views provided in those documents.
Slide 3: Review of Operations and Results
REVIEW OF OPERATIONS AND RESULTS Michael Hill International Limited (ASX/NZX: MHJ) today announced an after tax profit of $25.8m for the six months ended 31 December 2016, an increase of 3.4% on last year. The first half result was pleasing, especially given the difficult trading period in the lead
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Slide 6: Michael Hill Australia Retail Segment (AUD)
MICHAEL HILL AUSTRALIA RETAIL SEGMENT (AUD) For the half year ending 2016 2015 Revenue Same store sales Gross profit % Total expenses EBIT EBIT as a % of revenue Net stores opened/(closed) Total stores open ° Australian segment achieved modest top line growth but, when combined with some gross margi
Slide 7: Michael Hill New Zealand Retail Segment
MICHAEL HILL NEW ZEALAND RETAIL SEGMENT = way For the half year ending Revenue (1.5%) Same store sales (1.4%) Gross profit % +0.5% Total expenses (6.6%) EBIT 71% EBIT as a % of revenue +2.1% Net stores opened Total stores open * The New Zealand segment recorded a record first half EBIT result of $16
Slide 8: Michael Hill Canada Retail Segment (CAD)
MICHAEL HILL CANADA RETAIL SEGMENT (cad) For the half year ending 2016 2015 Revenue Same store sales Gross profit % Total expenses EBIT EBIT as a % of revenue Net stores opened/(closed) Total stores open * Solid same store sales growth of 6.8% for the half driven by a combination of increasing brand
Slide 9: Michael Hill USA Retail Segment (USD)
MICHAEL HILL USA RETAIL SEGMENT (uso) For the half year endir Revenue Same store sales (9.3%) Gross profit % ! 58.7% +1.3% Total expenses 6.0m (11.8%) EBIT (1.1m) (1.6m) 29.8% EBIT as a % of revenue (15.8%) (CA) +5.3% Net stores opened/(closed) 1 Total stores open 10 * Same store sales were down 9.3
Slide 10: Emma & Roe Retail Segment (AUD)
EMMA & ROE RETAIL SEGMENT (AUD) For the half year ending 2016 2015 Revenue 8.7m 5.1m 72.0% Same store sales 4.3m 4.3m 1.0% Gross profit % 66.0% 70.1% 41% Total expenses 8.0m 4.6m 73.7% EBIT (2.2m) (1.0m) (114.0%) EBIT as a % of revenue (25.4%) (20.4%) -5.0% Net stores opened/(closed) 8 Total stores
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For personal use only • • • • Increase Increase in Increase in Increase in in visits mobile visits revenue transactions 11
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Slide 14: Financial Review
2 = © @ D =) © ‘= S Q — @ a. — © LL FINANCIAL REVIEW For the half year ending Move Group revenue Same store sales Gross profit % Marketing Retail wage costs Occupancy costs Foreign exchange (gains)/losses EBITDA EBITDA % Depreciation and amortisation 5.4% 0.8% -0.4% (7.2%) 5.9% 9.6%
Slide 15: Financial Review
2 = © @ D =) © ‘= S Q — @ a. — © LL For the half year ending FINANCIAL REVIEW % Move EBIT EBIT % of sales Net interest expense NPBT NPAT Earnings per share Interim dividend per share Net operating cash flows Capital expenditure 13.5% +0.9% (14.0%) 15.3% 3.4% (51.0%) 29.3%
Slide 16: Financial Review
2 = © @ D =) © ‘= S Q — @ a. — © LL As at FINANCIAL REVIEW 31 Dec 2016 31 Dec 2015 % Move Trade and other receivables Includes in-house receivables Inventories Working capital Deferred tax asset Total deferred revenue Borrowings Net debt Equity ratio 26.1m 15.2m 215.7m 164.7m 50.6m 73.7m 33.9m 26.3m
Slide 17: Supporting Information & Trends
SUPPORTING INFORMATION & TRENDS
Slide 18: Group Revenue to December
GROUP REVENUE TO 31 DECEMBER (AU8000%) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 2012 2013 2014 2015 2016 18
Slide 19: EBIT to December
EBIT TO 31 DECEMBER (AUs000') 2012 2013 2014 2015 2016 19
Slide 20: EBIT Contributions by Country to December
EBIT CONTRIBUTIONS BY COUNTRY TO 31 DEC caso) Australia 35,000 wNZ wCanada 30,000 BUSA mE&R 20
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Slide 22: Store Numbers at June
For personal use only Store Numbers at 30 June 22
Slide 23: Michael Hill Australasian Expansion
MICHAEL HILL AUSTRALASIAN EXPANSION AUSTRALIA Stores Open 31/12/16 Planned for H2 16/17 1 store Planned for 17/18 3 stores Planned for 18/19 1 store NEW ZEALAND Stores Open 31/12/16 Planned for H2 16/17 1 store Planned for 17/18 O stores Planned for 18/19 O stores 23
Slide 24: Michael Hill North American Expansion
MICHAEL HILL NORTH AMERICAN EXPANSION CANADA Stores Open 31/12/16 Planned for H2 16/17 8 stores Planned for 17/18 10 stores Planned for 18/19 10 stores 110 store locations have been identified as suitable locations UNITED STATES Stores Open 31/12/16 Planned for H2 16/17 O stores Planned for 17/18 O
Slide 25: Store Numbers at June
For personal use only Store Numbers at 30 June 25
Slide 26: Emma & Roe Expansion
EMMA & ROE EXPANSION AUSTRALIA Stores Open 31/12/16 Planned for H2 16/17 5 stores Planned for 17/18 10 stores Planned for 18/19 10 stores NEW ZEALAND Stores Open 31/12/16 Planned for H2 16/17 1 stores Planned for 17/18 5 stores Planned for 18/19 5 stores 26
Slide 27: Store Photos
STORE PHOTOS Vulean Lane, Auckland Garden City, Queensland 27
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Michael Hill International — H1 FY2017 Earnings Presentation on 6ix