Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Shareholder Meeting (November 2023)
40 slides from Michael Hill International's shareholder meeting presentation, Nov 14, 2023
Slide 1: Annual General Meeting Presentations
ASX AND NZX ANNOUNCEMENT ANNUAL GENERAL MEETING PRESENTATIONS 14 November 2023 In accordance with the Listing Rules, enclosed are the presentations of the Chair and the Managing Director & Chief Executive Officer, which will be delivered today at the Michael Hill International Limited 2023 Annual Ge
Slide 2: Chair's Address
Michael Hill International Limited 2023 Annual General Meeting CHAIR’S ADDRESS Today I’d like to give you an overview of how we view the year that’s closed. Following that, Daniel will give more detail on our 2023 results, our strategic focus and a current trading update. Our financial year ending J
Slide 3: 2030 Sustainability Manifesto
In August 2022, we released our 2030 sustainability manifesto centred around three key pillars: People, Product and Planet. During the year, we have made great progress toward our goals: reduced our scope 1 emissions by 39%, reduced our head office waste by 65% and made significant donations towards
Slide 4: Managing Director & Chief Executive Officer's Address
MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER’S ADDRESS Thank you, Rob. Good morning and thank you for joining us today. I will now take you through a review of the 2023 financial results and operational achievements. We will also provide you with some insights into key strategic initiatives for the y
Slide 5: Record revenue and strong gross margin
While the Company delivered record revenue for the year, this was driven by a particularly strong first half performance, followed by a more challenging second half, as macroeconomic conditions deteriorated and consumer confidence declined. Notwithstanding the impact of sustained elevated raw materi
Slide 6: Christmas trading update
As we enter the all-important Christmas period, the start to November trade is encouraging. However, we are only two weeks into the Christmas trading period. Our new Christmas campaign launched at the start of the month and is already gaining strong traction with both customers and stores. Earlier t
Slide 7: FY24 store openings and brands
Additionally, in October, the business launched its new bespoke brand TenSevenSeven, focused on servicing the high-end of the market with its unique personalised diamond ring proposition. With these additional brands, the Michael Hill Group now services all significant customer segments of the fine
Slide 8: AGM Presentation
AGM Presentation 14 November 2023
Slide 9: 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 10: Board of Directors
Board of Directors From left to right: Jacquie Naylor (Independent NED), Rob Fyfe (Independent NED, Chair), Daniel Bracken (Managing Director & CEO), Emma Hill (Chair of People Development & 3 Remuneration Committee), Dave Whittle (Independent NED), Sir Michael Hill (Founder), and Gary Smith (Indepe
Slide 11: Online Text Question Process
Online Text Question Process Select the messaging tab Type your question in the ‘Ask a question’ box Press the arrow symbol to submit your message Select ‘My Messages’ to view your submitted messages along with any written responses 4
Slide 12: Online Audio Question Process
Online Audio Question Process Click ‘Request to Speak’ Enter the topic of your question Click ‘Submit Request’ Click ‘Join Queue’ and follow the audio prompts 5
Slide 13: Voting
Voting Select the voting tab Select your voting preference for each resolution Your selected option will change colour You can change your vote until the poll is closed 6
Slide 14: Chair's address
Chair’s address Rob Fyfe
Slide 15: Sustainability
Sustainability Announced ESG 2030 manifesto centred around three key pillars – Product, Planet & People Launched circular economy offering Re:new: • Digitally-enabled gold recycling platform • Launching a diamond upgrade program • Reimagining and expansion of jewellery repair business 8
Slide 16: Capital Management Framework
Capital Management Framework Final dividend of AU3.5 cps, resulting in total dividend of AU7.5 cps On-market share buy-back resulting in 8.63m shares acquired at a cost of $10.2m, representing 2.2% of share capital New revenue streams: Launched Re:cycle program and introducing third-party jewellery
Slide 17: Managing Director & CEO Presentation
Managing Director & CEO Presentation Daniel Bracken
Slide 18: FY23 Performance Overview
FY23 Performance Overview • Record sales, strong margin and second highest comparable EBIT underpinned by: • Ability to elevate ATV supported by MHJ’s aspirational brand journey • Leveraging the loyalty program • Product evolution • Retail fundamentals • Brilliance by Michael Hill membership now ove
Slide 19: FY23 Financial Snapshot
FY20H1 FY23 Financial Snapshot Group Results FY23 1, 2 FY22 Change • 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 EBIT down 6% but second h
Slide 20: FY23 Financial Key Performance Snapshot
FY20H1 FY23 Financial Key Performance Snapshot Insights 13
Slide 21: FY24 Trading Update
FY24 Trading Update • For the first 19 weeks of FY24: • Group sales (including Bevilles) are up 2% on prior year, and up 26% on FY22 • While for the core Michael Hill brand, sales have continued the recent trend and are down on the record start to FY23, however are up 13% on FY22 and up 15% on pre-p
Slide 22: Well Prepared for Christmas
Well Prepared for Christmas • As we enter the all-important Christmas period, the start to November trade has been encouraging. • Our new Christmas campaign launched at the start of the month and already gaining strong traction with both customers and stores. • Earlier this year the company undertoo
Slide 23: Strategy Update - Emphasis on Growth
Strategy Update - Emphasis on Growth Modern, differentiated, omni-channel jewellery brand Brand & Loyalty with loyal customers Retail Fundamentals Elevated productivity & customer experience Digital & Omni-first, digital-led & channel agnostic Omni-channel Product Evolution Elevated yet accessible,
Slide 24: Brand and Product Elevation
Brand and Product Elevation Marking the moments that create the story of our lives Elevated emotive brand-led campaigns Emphasis on craftmanship, quality & sustainability Relentless focus on creative & visual excellence Focus on unique differentiated product Diamonds at our core Increasing ATV demon
Slide 25: Leveraging of Loyalty Program
Leveraging of Loyalty Program Your love for jewellery rewarded Now over 2m 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 transactions per customer Loya
Slide 26: Retail Productivity & Store Investment
Retail Productivity & Store Investment Elevating productivity & retail execution 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 merchandising resulting in inc
Slide 27: MH Group - Portfolio of Brands
MH Group - Portfolio of Brands Leading fine jewellery retailer, with a material presence in Australia, New Zealand and Canada Catering to multiple market and consumer segments through differentiated brands and product offerings Customer focused, detail-oriented, nimble, multi-channel operation
Slide 28: Bevilles is a well-established jewellery retailer
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 Store roll-out plan: Four new sites opening pre-Christmas, with a further tranche identified
Slide 29: New start-up brand designed to test a unique proposition
• 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 • Customers will be invit
Slide 30: Questions
Questions Raed
Slide 31: Business of the Annual General Meeting
Business of the Annual General Meeting
Slide 32: Financial Statements and Reports
Financial Statements and Reports • Audited financial statements • Directors’ report • Auditor’s report 25
Slide 33: Resolution 1: Adoption of Remuneration Report
Resolution 1: Adoption of Remuneration Report To consider and, if thought fit, to pass the following advisory resolution: “That the Remuneration Report for the year ended 2 July 2023 (as set out in the Directors’ Report) is adopted.” FOR AGAINST OPEN ABSTAIN EXCLUDED NO. OF SHARES 87,439,413 824,367
Slide 34: Resolution 2: Re-election of Robert Fyfe as Director
Resolution 2: Re-election of Robert Fyfe as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Robert Fyfe who retires by rotation in accordance with ASX Listing Rule 14.4 and Rule 38.6 of the Company’s Constitution and, being eligible, off
Slide 35: Resolution 3: Re-election of Jacqueline Naylor as Director
Resolution 3: Re-election of Jacqueline Naylor as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Jacqueline Naylor who retires by rotation in accordance with ASX Listing Rule 14.4 and Rule 38.6 of the Company’s Constitution and, being e
Slide 36: Resolution 4: Re-election of David Whittle as Director
Resolution 4: Re-election of David Whittle as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr David Whittle (appointed as a Director of the Company on 2 August 2023), in accordance with ASX Listing Rule 14.4 and Rule 36.2 of the Company’
Slide 37: Resolution 5: Approval of Company Equity Incentive Plan
Resolution 5: Approval of Company Equity Incentive Plan To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 7.2 (exception 13(b)) and for all other purposes, the Shareholders approve the Company’s Equity Incentive Pl
Slide 38: Resolution 6: Increase to Non-Executive Director Remuneration Pool
Resolution 6: Approval of Increase to Non-Executive Director Remuneration Pool To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of ASX Listing Rule 10.17 and Rule 39.5 of the Company's Constitution, the maximum aggregate annual Dire
Slide 39: Resolution 7: Grant of share rights to Daniel Bracken
Resolution 7: Approval of grant of share rights to Mr Daniel Bracken under the Company’s Equity Incentive Plan To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval be given t
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Michael Hill International — Shareholder Meeting (November 2023) on 6ix