Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2016 Earnings Presentation
29 slides from Michael Hill International's earnings presentation, Aug 19, 2016
Slide 1: Annual Results 30 June 2016
For personal use only A N N U A L R E S U LT S 3 0 J U N E 2 0 16 1
Slide 2: Disclaimer
For personal use only DISCLAIMER This annual results presentation dated 18 August 2016 provides additional comment on the annual 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
Slide 3: Highlights
Yorkdale, Toronto Garden City, Queensland For personal use only H I G H LI G HTS Revenue up 9.5% to a record $551.1m Final dividend of AU 2.5c Same store sales up 5.2% Net debt of $32.0m down 16.4% as a result of $47.8m of Gross profit lifted to 64.0% operating net cash inflows EBIT of $
Slide 4: Operational Review
For personal use only O P E R ATI O N A L R E V I E W 4
Slide 5: Michael Hill Australia Retail Segment (AUD)
M I C HAE L H I LL AUSTRALIA R ETAI L S E G M E NT ( AUD) For the year ending 2016 2015 move For personal use only Revenue 307.3m 294.4m 4.4% Same store sales 299.6m 288.7m 3.8% Gross profit % 62.7% 62.3% +0.4% Total expenses 142.5m 137.9m 3.3% EBIT 50.3m 45.9m 9.6% EBIT as a % of revenue 16.4% 15.6
Slide 6: Michael Hill New Zealand Retail Segment (NZD)
M I C HAE L H I LL N E W Z EALAN D R ETAI L S E G M E NT ( NZD) For the year ending 2016 2015 move For personal use only Revenue 122.2m 114.0m 7.2% Same store sales 122.2m 114.0m 7.2% Gross profit % 61.7% 61.8% -0.1% Total expenses 48.1m 46.7m 3.1% EBIT 27.3m 23.5m 15.9% EBIT as a % of revenue 22.3%
Slide 7: Michael Hill Canada Retail Segment (CAD)
M I C HAE L H I LL CANADA R ETAI L S E G M E NT ( CAD) For the year ending 2016 2015 move For personal use only Revenue 94.1m 79.1m 18.9% Same store sales 77.5m 73.6m 5.3% Gross profit % 62.1% 61.6% +0.5% Total expenses 49.0m 42.7m 14.8% EBIT 9.5m 6.0m 56.5% EBIT as a % of revenue 10.0% 7.6% +2.4% N
Slide 8: Michael Hill USA Retail Segment (USD)
M I C HAE L H I LL USA R ETAI L S E G M E NT ( USD) For the year ending 2016 2015 move For personal use only Revenue 14.0m 11.3m 24.4% Same store sales 10.7m 10.4m 3.5% Gross profit % 58.7% 57.9% +0.8% Total expenses 10.5m 8.5m 24.3% EBIT (2.3m) (1.9m) (18.4%) EBIT as a % of revenue (16.2%) (17.0%)
Slide 9: Emma & Roe Retail Segment (AUD)
E M MA & R O E R ETAI L S E G M E NT ( AUD) For the year ending 2016 2015 move For personal use only Revenue 9.3m 4.9m 91.6% Same store sales 5.6m 4.2m 34.6% Gross profit % 69.9% 69.2% +0.7% Total expenses 9.0m 6.3m 43.2% EBIT (2.4m) (2.9m) (15.8%) EBIT as a % of revenue (26.0%) (59.1%) +33.1% Net s
Slide 10: E-Commerce Trends
E-C O M M E R C E TR E N D S For personal use only e-commerce stores operating in each of our 4 markets There were 10.9m visits to our web sites over the 12 months up from 8.8m CRM capability is progressing well, with early deliverables successfully embedded. A new POS is being deployed in the
Slide 11: In-house Credit North America and Professional Care Plans
I N H O US E C R E D IT N O RTH AM E R I CA Loan book has grown to $13.9m, up 12.6% on prior year For personal use only Represents 25% of sales in Canada and 40% in the US Interest and other income grew 29.8% to $1.4m Bad debts run at approximately 5% of credit sales made Presents a strate
Slide 12: Inventory Management and Branded Collections
I N V E NTO RY MANAG E M E NT Total inventory on hand was $200.0m up from $182.2m For personal use only Stock turn across the Group is 1.06 for the 12 months up from 0.92. Stock turn is calculated on average monthly inventory holding. Gross margin ROI was1.39 for the year Gross margin grew f
Slide 13: Financial Review
For personal use only FINANCIAL REVIEW 13
Slide 14: Financial Review (AUD)
FI NAN C IAL R E V I E W (AUD) For personal use only For the year ending 2016 2015 move Group revenue 551.1m 503.4m 9.5% Same store sales 512.7m 487.3m 5.2% Gross profit % 64.0% 63.9% +0.1% Marketing 30.2m 31.9m (5.5%) Retail wage costs 109.2m 99.1m 10.1% Occupancy costs 54.2m 50.6m 7.1% Foreign exc
Slide 15: Financial Review (AUD)
FI NAN C IAL R E V I E W (AUD) For personal use only For the year ending 2016 2015 % move EBIT 47.1m 42.1m 11.9% EBIT % of sales 8.5% 8.4% +0.1% Net interest expense 5.5m 4.7m 18.6% NPBT 41.5m 37.4m 11.0% NPAT * 19.6m 27.8m (29.5%) NPAT adjusted for tax impacts 28.9m 27.8m 4.2% Earnings per share *
Slide 16: Financial Review (AUD)
FI NAN C IAL R E V I E W (AUD) For personal use only For the year ending 2016 2015 % Move Trade and other receivables 26.6m 21.0m 26.6% Includes in-house receivables 14.3m 12.3m 15.6% Inventories 200.0m 182.2m 9.7% Working capital 139.1m 158.5m (12.2%) Deferred tax asset 64.1m 48.4m 32.4% Total defe
Slide 17: Supporting Information & Trends
For personal use only S U P P O RTI N G I N F O R M ATI O N & TR E N D S 17
Slide 18: Group Revenue to June
G R O U P R E V E N U E TO 30 J U N E (AU$000’s) For personal use only 600,000 500,000 400,000 300,000 200,000 100,000 0 1 2 3 4 5 18
Slide 19: Earnings Before Interest & Tax to June
EAR N I N G S B E FO R E I NTE R E ST & TAX TO 30 J U N E (AU$000’s) For personal use only 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1 2 3 4 5 19
Slide 20: EBIT Contributions by Country to June
E B IT C O NTR I B UTI O N S BY C O U NTRY TO 30 J U N E (AU$000’s) For personal use only 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000) 1 2 3 4 5 Series2 Series1 Series3 Series4 Series5 20
Slide 21: Store Expansion
For personal use only STO R E E X PA N S I O N 21
Slide 22: Total Michael Hill Stores Operating
TOTAL M I C HAE L H I LL STO R E S O P E RATI N G For personal use only 300 Store Numbers at 30 June • 2000 – 106 +4 • 2001 – 115 +9 250 • 2002 – 120 +5 • 2003 – 134 +14 • 2004 – 143 +9 200 • 2005 – 156 +13 • 2006 – 177 +21 • 2007 – 192 +15 150 • 2008 – 210 +18 • 2009 – 239 +29 • 2010 – 232 - 7 100
Slide 23: Australasian Expansion
AUSTRALAS IAN E XPAN S I O N AUSTRALIA For personal use only Stores Open 30/6/16 168 Planned for 16/17 3 stores 171 Planned for 17/18 3 stores 174 Planned for 18/19 1 store 175 175 store locations have been identified as suitable locations NEW ZEALAND Stores Open 30/6/16 52 Planned for 16/17 1 store
Slide 24: North American Expansion
N O RTH AM E R I CAN E XPAN S I O N CANADA For personal use only Stores Open 30/6/16 67 Planned for 16/17 10 stores 77 Planned for 17/18 10 stores 87 Planned for 18/19 10 stores 97 110 store locations have been identified as suitable locations UNITED STATES Stores Open 30/6/16 10 Planned for 16/17 0
Slide 25: Total Emma & Roe Stores Operating
TOTAL E M MA & R O E STO R E S O P E RATI N G For personal use only Store Numbers at 30 June 16 • 2013 – 5 +5 • 2014 – 6 +1 14 • 2015 – 8 +2 • 2016 – 16 +8 12 10 8 6 4 2 0 1 2 3 4 25
Slide 26: Emma & Roe Expansion
E M MA & R O E E XPAN S I O N For personal use only AUSTRALIA Stores Open 30/6/16 15 Planned for 16/17 10 stores 25 Planned for 17/18 10 stores 35 Planned for 18/19 10 stores 45 NEW ZEALAND Stores Open 30/6/16 1 Planned for 16/17 2 stores 3 Planned for 17/18 5 stores 8 Planned for 18/19 5 stores 13
Slide 27: Store Photos
STO R E P H OTO S For personal use only Wetherill Park, New South Wales Garden City, Queensland Vulcan Lane, Auckland 27
Slide 28: For personal use only
For personal use only 28
Slide 29: Michael Hill International Limited
michael hill. INTERNATIONAL LIMITED 29
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