Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2024 Earnings Presentation
28 slides from Michael Hill International's earnings presentation, Aug 30, 2024
Slide 1: FY24 Results
For personal use only FY24 RESULTS
Slide 2: Disclaimer
DISCLAIMER Certain statements in this report 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 Limite
Slide 3: CEO and CFO FY24 Update
Michael Hill International Limited CEO and CFO FY24 Update For personal use only • FY24 Performance Overview • FY24 Financial Results • Group Results • Segment Results • Current Trading Update • Group Strategy • Appendices
Slide 4: FY24 Performance Overview
FY24 Performance Overview • Challenging period for the business cycling record performance in FY23, For personal use only yet still outperforming the market • Margin under pressure due to input costs and market conditions • Digital sales demonstrating a strong return to growth • Significant progress
Slide 5: FY24 Group Results
FY24 Group Results FY20H1 Financial Snapshot • Group revenue (including Bevilles) was up 4%, on a FY241 FY232 Change For personal use only 52-week basis Revenue $645m $619m +4% • Gross profit (including Bevilles) was down 2%, on a Statutory Revenue (FY23: 53-week basis) $630m 2% 52-week basis Gross
Slide 6: FY24 Segment Results
FY24 Segment Results Australia (AUD) New Zealand (NZD) Canada (CAD) For personal use only FY241 FY232 Change FY24 FY232 Change FY24 FY232 Change Revenue 359m 326m +10.3% 115m 130m -11.8% 157m 156m +0.6% Statutory Revenue (FY23: 53-week basis) 331m +8.5% 132m -13.3% 159m -1.1% Gross profit 217m 209m
Slide 7: Current Trading Update
Current Trading Update • For the first eight weeks of FY25, Group same store sales For personal use only were up 2.7% on prior year, with same store sales for the: • Australian segment up 5.0% • Canadian segment up 4.0% • New Zealand segment down 6.2% • Total sales for the Group were up 3.2% for the
Slide 8: Group Strategy – Emphasis on Sales & Margin Growth
For personal use only Group Strategy – Emphasis on Sales & Margin Growth 2020 – 2023 2023 – 2024 2024 – 2025 2025 – 2030 Reposition Establish Product & Network Michael Hill Portfolio of Brand Expansion & Brand Brands Proposition Productivity 8
Slide 9: Reposition Michael Hill Brand, 2020 - 2023
Reposition Michael Hill Brand, 2020 - 2023 Brand & Loyalty Product Evolution Contemporary premium jewellery brand, leveraging Premium yet accessible, best-in-class loyalty program with diamonds at our core For personal use only “The Jeweller that cares” Now over 2.5m ~30% 9
Slide 10: Establish Portfolio of Brands, 2023 - 2024
Establish Portfolio of Brands, 2023 - 2024 Michael Hill Group now services all significant customer segments of the fine jewellery category, and delivers multiple new growth pipelines. For personal use only New digitally-led bespoke jewellery brand LUXURY Luxury customer with higher ATV 264 ph
Slide 11: Product & Brand Proposition, 2024 - 2025
Product & Brand Proposition, 2024 - 2025 With the Michael Hill Group multi-brand strategy now in place, each brand is uniquely positioned for different segments and price propositions, and its own strategic priorities. For personal use only Premium Price / Luxury Uniquely modern, high end bespoke Pr
Slide 12: Michael Hill Fine Jewellers
For personal use only MICHAEL HILL FINE JEWELLERS
Slide 13: Product & Brand Proposition, 2024 - 2025
For personal use only Product & Brand Proposition, 2024 - 2025 13
Slide 14: Product & Brand Proposition, 2024 - 2025
For personal use only Product & Brand Proposition, 2024 - 2025 14
Slide 15: Product & Brand Proposition, 2024 - 2025
For personal use only Product & Brand Proposition, 2024 - 2025 15
Slide 16: Sustainability #thejewellerthatcares
For personal use only Sustainability #thejewellerthatcares The Michael Hill Foundation represents our ongoing commitment to meaningful change, and our dedication to a better world. The Foundation encompasses two key areas of focus: Empowering Women and Nature Restoration Through continual initiative
Slide 17: Product & Brand Proposition, 2024 - 2025
For personal use only Product & Brand Proposition, 2024 - 2025
Slide 18: Product & Brand Proposition, 2024 - 2025
For personal use only Product & Brand Proposition, 2024 - 2025 18
Slide 19: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 With each brand uniquely positioned, the Group will be well-placed to grow revenue and profits through a more productive and expanded distribution network. For personal use only 19
Slide 20: Network Expansion & Productivity: Store of the future
For personal use only Network Expansion & Productivity, 2025 - 2030 “Store of the future” becomes a reality 20
Slide 21: Network Expansion & Productivity, 2025 - 2030
Network Expansion & Productivity, 2025 - 2030 +15% For personal use only Loyalty members have ~80% higher ATV Key Milestone Moments 21
Slide 22: Network Expansion & Productivity: New and Conversion Stores
Network Expansion & Productivity, 2025 - 2030 New Stores Conversion Stores For personal use only 22
Slide 23: Leveraging Group Capabilities
Leveraging Group Capabilities The multi-brand strategy is underpinned by a philosophy of leveraging group capabilities to drive productivity across all brands. For personal use only 23
Slide 24: Q&A
Q&A You are able to listen to Q&A via this platform For personal use only If you would like to ask a question, please click on ‘Request to Speak’ button at the bottom of the broadcast window. If you are in full screen broadcast mode you will need to minimise to see this button. 24
Slide 25: Appendices
For personal use only Appendices 25
Slide 26: Appendix A: Bridge from Comparable EBIT to Reported EBIT
Appendix A: Bridge from Comparable EBIT to Reported EBIT Calculated as follows: For personal use only (AUD million) FY24 FY23 Comparable EBIT 15.9 58.9 Impact of AASB16 Leases 10.1 10.0 Impact of IFRIC SaaS-related guidance -4.4 -7.3 Litigation judgement -4.0 - Bevilles acquisition transaction costs
Slide 27: Appendix B: AASB16 Leases & SaaS Impact
Appendix B: AASB16 Leases & SaaS Impact FY24 Impact of FY24 FY23 Change (AUD million) For personal use only Stat AASB16 & SaaS pre-adjustments pre-adjustments pre-adjustments Revenue 644.9 - 644.9 629.6 +2.4% Cost of sales -254.0 - -254.0 -225.1 +12.8% Gross profit 390.9 - 390.9 404.4 -3.3% Employee
Slide 28: For personal use only
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