Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2022 Earnings Presentation
21 slides from Michael Hill International's earnings presentation, Aug 29, 2022
Slide 1: FY22 Results
For personal use only FY22 RESULTS
Slide 2: 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 For personal use only anticipated or planned financial and operational performance of Micha
Slide 3: CEO and CFO FY22 Update
Michael Hill International Limited For personal use only CEO and CFO FY22 Update • FY22 Performance Overview • FY22 Financial Results • Group Results • Key Performance Insights • Segment Results • Current Trading Update • Strategy Update – Emphasis on Growth • Appendices 3
Slide 4: FY22 Performance Overview
FY22 Performance Overview For personal use only • Record sales, gross margin and profit, despite significant disruption during H1, losing ~15% of trading across AU & NZ • Revenue up 7% • Gross profit up 10% • Comparable EBIT up 11% • Profit growth outpaced sales growth, with continued gross margin e
Slide 5: FY22 Group Financial Results Snapshot
FY20H1 FY22 GroupFinancial Results Snapshot For personal use only FY22 FY21 Change • Revenue and same store sales growth Revenue $595.2m $556.5m +7.0% Same store sales +8.0% • Gross profit up $36m Gross Profit $384.8m $348.9m +10.3% • Further gross margin expansion Gross Margin 64.7% 62.7% +200 bps
Slide 6: Key Performance Insights
FY20H1 Key Financial Performance Snapshot Insights For personal use only 6
Slide 7: Segment Results
Segment Results For personal use only Australia (AUD) New Zealand (NZD) Canada (CAD) FY22 FY21 Change FY22 FY21 Change FY22 FY21 Change Revenue 303.4m 312.2m -2.8% 125.1m 127.1m -1.6% 159.7m 118.4m +34.8% Gross profit 196.6m 193.9m +1.4% 79.3m 78.8m +0.7% 103.6m 72.6m +42.6% Gross margin 64.8% 62.1%
Slide 8: Current Trading Update
Current Trading Update For personal use only In the first eight weeks of FY23, the Company has delivered strong early performance across sales and gross margin: • In comparison to FY22, Group all store sales were up +18.5% • In comparison to FY21, a more meaningful reflection of FY23 performance, Gr
Slide 9: Strategy Update - Emphasis on Growth
Strategy Update - Emphasis on Growth For personal use only Modern, differentiated, omni-channel jewellery brand Brand & Loyalty with loyal customers Digital & Omni-first, digital-led & channel agnostic Omni-channel Retail Elevated productivity & customer experience Fundamentals Product Evolution Hou
Slide 10: Elevating Brand
Elevating Brand Marking the moments that create For personal use only the story of our lives Elevated brand messaging Focus on craftmanship, quality & sustainability Emotive storytelling brand-led campaigns Relentless focus on creative & visual excellence House of diamonds Aspirational media placeme
Slide 11: Brilliance by Michael Hill
Brilliance by Michael Hill For personal use only Your love for jewellery rewarded Over 1.4 million loyalty members Increased focus on customer segmentation and personalisation Targeted AI and data insights Loyalty members are more valuable - ATV 83% higher - GP% 192 bps higher Loyalty members now re
Slide 12: Digital & Omni-Channel
Digital & Omni-Channel For personal use only Omni-first, digital-led & channel agnostic Traffic conversion sales Successful launch of click & collect and ship-from-store globally Highest margin channel Omni-channel now represents more than 40% of digital sales 12
Slide 13: Stores & Customer Experience
Stores & Customer Experience For personal use only Elevating productivity & retail execution Same store sales up 8% Twelve quarters of SSS growth Significant investment in store network with more than 40 stores updated Rejuvenated global leadership structure Elevated instore customer experience Reta
Slide 14: Product Evolution
Product Evolution For personal use only House of Diamonds Elevated quality & craftmanship Customer-led ranging Australian artisanal workshop Emphasis on sustainability & LGD Product mix driving margin expansion Product newness critical to brand elevation 14
Slide 15: New Territories & Services
New Territories & Services For personal use only Digital marketplace strategy progressed with more partners being considered International shipping to all countries, live pre-Christmas Dual language digital expansion into Quebec this year Significant progress of new digital eco- system to drive incr
Slide 16: Sustainability: the jeweller that cares
Sustainability: “the jeweller that cares” For personal use only Michael Hill’s ESG vision is to transform how we source & manufacture our products, impact our planet and improve people's lives. We aim to move our business and influence the broader jewellery industry toward a more sustainable, innova
Slide 17: Capital Management Framework
Capital Management Framework For personal use only FY23 total dividend for the year of AU7.5 cps, representing ~67% of adjusted annual NPAT, and at the higher end of the target range of 50% to 75% Launching an on-market share buy-back of up to 5% of issued capital, funded from existing cash reserves
Slide 18: Appendices
For personal use only Appendices
Slide 19: Appendix A: Bridge from Comparable EBIT to Statutory EBIT
Appendix A: Bridge from Comparable EBIT to Statutory EBIT For personal use only Calculated as follows: (AUD million) FY22 FY21 Comparable EBIT 62.9 56.6 Impact of AASB16 Leases 13.4 4.2 Impact of IFRIC SaaS-related guidance -6.0 -5.7 Government grants received (AU, NZ, CA) 2.9 14.6 Canadian credit b
Slide 20: Appendix B: AASB16 Leases & SaaS Impact
Appendix B: AASB16 Leases & SaaS Impact For personal use only FY22 Impact of FY22 FY21 Change (AUD million) Stat AASB16 & SaaS pre-adjustments pre-adjustments pre-adjustments Revenue 595.2 595.2 556.5 +7.0% Cost of sales -210.4 -210.4 -207.6 +1.4% Gross profit 384.8 384.8 348.9 +10.3% Employee benef
Slide 21: For personal use only
For personal use only
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