Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Shareholder Meeting (October 2017)
29 slides from Michael Hill International's shareholder meeting presentation, Oct 31, 2017
Slide 1: Annual General Meeting 31 October 2017
ANNUAL For personal use only GENERAL MEETING 31 ST OCTOBER 2017
Slide 2: Chair's Agenda
CHAIR’S For personal use only AGENDA > Welcome > Year in review
Slide 3: Year in Review
For personal use only YEAR IN REVIEW
Slide 4: For personal use only
For personal use only
Slide 5: CEO Review
CEO REVIEW For personal use only > Overview > Group Strategy > 2017 Highlights > Operational Summary > Q1 Trading Update
Slide 6: Market Overview
MARKET OVERVIEW For personal use only > Global strategies – internationalisation of brands and consolidation of independents, especially in North America > Fragmentation of traditional marketing channels – creating challenges around market penetration and foot traffic > Branding strategies – growth
Slide 7: Group Strategy
GROUP STRATEGY For personal use only Proprietary Branded Product Collections > Unique and distinct designs to differentiate in a cluttered market > Design will become increasingly important to both our brands > Gross margin premium available Understand Our Customer: Increase Loyalty and Engagement >
Slide 8: 2017 Highlights
2017 HIGHLIGHTS For personal use only $48.1 million 63.5% Record EBIT gross 2.3% margin $39.8 million Operating net cash inflow $583 million $39.7 million Group revenue 5.8% Professional Care Plan sales 1% 5c AUD 1.6% Dividend same store 2016: 4.75c sales growth
Slide 9: 2017 Highlights
2017 HIGHLIGHTS For personal use only NZ$22.6 million settlement paid to NZ Inland Revenue 52% $39.4 million US$1.3 million Equity ratio Net debt asset write-down and 2016:48.5% 2016: $32M impairments $77.1 million Deferred PCP Revenue
Slide 10: 2017 Highlights
2017 HIGHLIGHTS For personal use only Record profits 8.8% Canada NZ, Australia, Canada same store sales growth 13 Michael Hill 13 Emma & Roe stores opened stores opened 332 stores including 29 Emma & Roe
Slide 11: Michael Hill Australian Retail Segment
MICHAEL HILL AUSTRALIAN For personal use only RETAIL SEGMENT > Modest same store sales growth of 1.2% in a tough retail market > EBIT lift of 3.4% to a record $52.4m > Focus on improved productivity and cost control > 10 stores relocated, 3 stores refurbished to the latest design and layout, 3 new s
Slide 12: For personal use only
For personal use only
Slide 13: Michael Hill New Zealand Retail Segment
MICHAEL HILL NEW ZEALAND RETAIL SEGMENT For personal use only > Like for like store sales slipped by 0.8% on prior year > Focus on variable costs helped deliver a record EBIT of NZ$28.0m > One store opened at Christchurch and one store closed during the period, leaving a total of 52 stores For the y
Slide 14: Michael Hill product imagery
michael hill. WERE FOR LOVE THE STYLE EDITION 45 INCREDIBLE NEW PIECES most leveod metal Explore the glow of rose gold La WERE FOR LOVE
Slide 15: Michael Hill Canadian Retail Segment
MICHAEL HILL CANADIAN RETAIL SEGMENT For personal use only > Revenue grew by 18.1% to C$112.7m > Like for like store sales grew by 8.8% > EBIT increased 38.1% to a record CA$12.6m > This segment is benefitting from a strong and stable leadership team and from improved brand recognition and market sh
Slide 16: Michael Hill US Retail Segment
MICHAEL HILL US RETAIL SEGMENT For personal use only > Revenue down 8.5% for the same stores > Store closure and impairments resulted in US$1.32 million write downs > Management change and marketing experimentation continues > US business under review - in September 2016, the US was put under the le
Slide 17: Emma & Roe Retail Segment
EMMA & ROE RETAIL SEGMENT For personal use only > Sales growth of 61.7% with like for like store sales declining 2.1% for the period > 13 new stores opened during the year including the first in NSW > Brand review was initiated in early 2017 due to revenue forecasts not being met and losses growing
Slide 18: For personal use only
For personal use only
Slide 19: 2017-18 Priorities
2017-18 PRIORITIES For personal use only > Same store sales growth in all markets and for both brands through our continued focus on selling skills and productivity improvements > 10 new Michael Hill stores planned for 17-18 > Completion of the Emma & Roe brand review and consideration given to its
Slide 20: Catalog pic
For personal use only Catalog pic
Slide 21: Michael Hill Diamond Watch Collection
MICHAEL HILL DIAMOND WATCH COLLECTION
Slide 22: Q1 Trading Update
Q1 TRADING U P D AT E For personal use only 3.5% same store sales growth 7.8% sales increase 10 Michael Hill stores opened 1 Emma & Roe store opened 12.3% 3.8% same store same store sales sales growth 27.4% sales increase 7.4% sales increase Emma & Roe Michael Hill 343 stores trading 313 Michael Hil
Slide 23: Q1 Trading Update
Q1 TRADING U P D AT E For personal use only 9% same store sales 14.8% sales US 4.2% same store 5.1% same store sales growth sales growth 6% sales increase 6% sales increase Australia New Zealand 7.6% same store sales growth 4 more 22% sales increase Michael Hill Canada stores to open in December qua
Slide 24: Thank You
For personal use only THANK YOU
Slide 25: Business of the Meeting
For personal use only BUSINESS OF THE MEETING
Slide 26: Financial Report
FINANCIAL REPORT For personal use only Receive and consider the Financial Report for the year ended 30 June 2017 The financial report of Michael Hill International Limited and the reports of the Directors and of the Auditors for the financial year ended 30 June 2017 (2017 Annual Report) is tabled fo
Slide 27: Resolution 1: Remuneration Report
RESOLUTION 1: For personal use only R E M U N E R AT I O N R E P O R T ( A D V I S O R Y R E S O L U T I O N ) To consider and, if thought fit, to pass the following advisory Resolution: “That, the Remuneration Report for the year ended 30 June 2017 (as set out in the Directors Report) is adopted.”
Slide 28: Resolution 2: Re-election of Robert Ian Fyfe as a Director
RESOLUTION 2: For personal use only RE-ELECTION OF ROBERT IAN FYFE AS A DIRECTOR To consider and, if thought fit, pass the following resolution, as an Ordinary Resolution of the Company: “That Robert Ian Fyfe, who retires by rotation in accordance with Listing Rule 14.5 and Article 38.4 of the Compa
Slide 29: Thank You
For personal use only THANK YOU
Michael Hill International — Shareholder Meeting (October 2017) on 6ix