Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Shareholder Meeting (October 2019)
20 slides from Michael Hill International's shareholder meeting presentation, Oct 24, 2019
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 24 October 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only 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 Micha
Slide 3: Chair's Address
For personal use only CHAIR’S ADDRESS 3
Slide 4: Executive Review
Executive Review For personal use only • FY19 Business Overview • FY19 Financial Results • FY20 Initiatives • FY20Q1 Trading Update 5
Slide 5: FY19 Business Overview
FY19 Business Overview For personal use only FY19 was a transitional year as the Company appointed a new CEO and strengthened the management team • Strong heritage brand • Sales performance recovery • Strengthened executive team • End to end business and strategy re-affirmed • Modernisation of our b
Slide 6: FY19 Financial Snapshot
FY19 Financial Snapshot For personal use only FY19 FY18* • Despite a challenging Q1, sales performance momentum recovered throughout the subsequent quarters, with FY19Q4 +0.7% Revenues $569.5m $575.5m • All segments suffered compressed margin during FY19H2 in order to stabilise sales performance Sta
Slide 7: Key Financial Results
Key Financial Results For personal use only $ 569.5m $ 34.6m 4.0c GROUP OPERATING REVENUE UNDERLYING EBIT DIVID END 2018: $575.5m* 2018: $40.1m 2018: 5.0c $ 39.0m 62.0 % OPERATI NG N ET CASHFLOW GROSS MARG IN 2018: $54.9m 2018: 63.7% $ 24.8m -3.3 % 46.8% NET DEBT SAME STORE EQUITY RATIO 2018: $28.0m
Slide 8: Operational Performance
Operational Performance For personal use only $ 16.0m* 32.5% E-COMMERCE SALES BRANDED COLLECTION SALES 2018: $11.1m* 10 11 $5m CODB -3.7% NEW STORES STORES ANNUALISED SAVINGS AUSTRALIA OPENED CLOSED RETAIL SEGMENT REVENUE** -4.1% NEW ZEALAND RETAIL SEGMENT REVENUE** +1.8% CANADA RETAIL SEGMENT REVEN
Slide 9: Group Results
Group Results For personal use only • Group revenue declined by 1.1%, with same store sales up 0.7% for FY19Q4 • Statutory EBIT of $21.1m, up from FY18 of $8.9m** • Underlying EBIT of $34.6m, down from $40.1m • Gross margin for the Group was down from prior year to 62.0% • Final dividend of AU 1.5 c
Slide 10: FY20Q1 Trading Update
FY20Q1 Trading Update For personal use only • Positive sales momentum with same store sales +11.9% 12
Slide 11: FY20Q1 Trading Update
FY20Q1 Trading Update For personal use only • Positive sales momentum with same store sales +11.9% • Strong sales performance across all markets: Canada +16.4%, New Zealand +10.1% and Australia +6.8% • Margin compression continues, with early signs of positive movement • Canadian productivity focus
Slide 12: Key Initiatives for FY20
Key Initiatives for FY20 For personal use only Building on the Strategic Priorities with seven key initiatives 1. Continued focus on cost of doing business • Delivered the FY19 cost out program – annualised benefits of $5m • A further $5m savings identified that will fully annualise in FY21 • Contin
Slide 13: Key Initiatives for FY20
Key Initiatives for FY20 For personal use only 4. Acceleration of the Branded Collections strategy • Clear pathway to drive exclusive Branded Collection sales to 50% over the coming years • To assist with sales growth and margin opportunity with existing customers • Avenue to attract new customers t
Slide 14: New Brisbane City Flagship Store
New Brisbane City Flagship Store For personal use only 16
Slide 15: Business of the Annual General Meeting
For personal use only Business of the Annual General Meeting
Slide 16: Financial Report
FINANCIAL REPORT For personal use only for the financial year ended 30 June 2019 • Audited financial statements; • Directors’ Report; and • Auditor’s Report. 19
Slide 17: Resolution 1: Remuneration Report
RESOLUTION 1: Remuneration Report (Advisory Resolution) For personal use only To consider and if thought fit, pass the following advisory resolution: “That the Remuneration Report for the year ended 30 June 2019 (as set out in the Directors’ Report) is adopted.” FOR AGAINST OPEN ABSTAIN EXCLUDED NO.
Slide 18: Resolution 2: Re-election of Gary Warwick Smith as a Director
RESOLUTION 2: Re-election of Gary Warwick Smith as a Director For personal use only To consider and if thought fit, pass the following resolution, as an Ordinary Resolution of the Company: “That Gary Warwick Smith, who retires by rotation in accordance with Listing Rule 14.4 and Article 38.6 of the
Slide 19: Resolution 3: Grant of Share Rights under Company's Incentive Plan
RESOLUTION 3: Grant of Share Rights under Company’s Incentive Plan For personal use only To consider and if thought fit, pass the following resolution, as an Ordinary Resolution of the Company: “That for the purposes of Listing Rule 7.2 (exception 9(b)) and for all other purposes, the Shareholders a
Slide 20: Thank you
For personal use only Thank you 23
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