Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Shareholder Meeting (October 2022)
37 slides from Michael Hill International's shareholder meeting presentation, Oct 25, 2022
Slide 1: Annual General Meeting presentations
25 October 2022 To: Company Announcements Office Company Announcements Office ASX Limited NZX Limited Annual General Meeting presentations In accordance with the Listing Rules, enclosed are the presentations of the Chair and the Managing Director & Chief Executive Officer, which will be delivered to
Slide 2: Chair's Address
Michael Hill International Limited 2022 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 2022 results, our current and future strategic focus and a current trading update. Our fina
Slide 3: Chair's Address (continued): dividend and buy-back
We were pleased to declare a final dividend of AU4.0 cents per share, bringing our total dividend for FY22 to AU7.5 cents per share, representing ~67% of adjusted annual NPAT, at the higher end of the target range. Subject to the Company’s ongoing trading performance and growth plans, the Board’s in
Slide 4: Managing Director & CEO'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 2022 financial results and strategic and operational achievements. We will also provide you with some insights into key strategic initiat
Slide 5: CEO's Address: inventory, cash and store network
Supporting the Company’s ongoing growth agenda, our strategic increase in ATV and elevated product offerings, saw the Company make considered investments in core inventory, which saw year-end stock holdings of $181.5m. The Company’s balance sheet has benefited from strong operating cashflows, delive
Slide 6: CEO's Address: bricks and mortar retail
Bricks and mortar retail is at the core of the Michael Hill business, driving more than 90% of Company sales. Elevating the in-store experience across visual presentation and customer engagement have delivered considerable increases in gross margins, conversion rates and ATV. An unwavering focus on
Slide 7: AGM Presentation
AGM Presentation 25 October 2022
Slide 8: 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 9: Board of Directors
Board of Directors From left to right: Gary Smith (Independent NED, Chair of Audit & Risk Management Committee), Jacquie Naylor (Independent NED), Sir Michael Hill (Founder), Rob Fyfe (Independent NED, Chair), Emma Hill (Chair of People Development & Remuneration Committee), and Daniel Bracken (Mana
Slide 10: Audio Question Process
Audio Question Process Click on the button at the bottom of the broadcast window. The meeting broadcast will be replaced with the audio questions interface. Confirm your name, enter the topic of your question and click Submit Request. Follow the instructions to grant access to your microphone and jo
Slide 11: Audio Question Process
Audio Question Process Click on the button at the bottom of the broadcast window. The meeting broadcast will be replaced with the audio questions interface. Confirm your name, enter the topic of your question and click Submit Request. Follow the instructions to grant access to your microphone and jo
Slide 12: Text question process
Text question process Select the messaging tab and type your question in the Ask a question box. Press the send arrow to submit your message for review. Received Your submitted questions along with any written responses from the meeting team can be found by selecting My Messages. 6
Slide 13: Voting
Voting When open, the vote will be accessible by selecting the voting tab at the top of the screen. To vote simply select the direction in which you would like to cast your vote. The selected option will change colour. For Against Abstain There is no submit or send button, your selection is automati
Slide 14: Chair's address
Chair’s address Rob Fyfe
Slide 15: Sustainability: the jeweller that cares
Sustainability: “the jeweller that cares” 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, innovative & responsible fut
Slide 16: Capital Management Framework
Capital Management Framework FY22 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% Launched an on-market share buy-back of up to 5% of issued capital, funded from existing cash reserves Dividend Policy 50% -
Slide 17: Managing Director & CEO Presentation
Managing Director & CEO Presentation Daniel Bracken
Slide 18: FY22 Performance Overview
FY22 Performance Overview • 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 expansion driven by str
Slide 19: FY22 Group Financial Results Snapshot
FY20H1 FY22 GroupFinancial Results Snapshot 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 • Comparable EBIT up 1
Slide 20: Key Financial Performance Snapshot Insights
FY20H1 Key Financial Performance Snapshot Insights 14
Slide 21: Strategy Update - Emphasis on Growth
Strategy Update - Emphasis on Growth 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 House of diamonds New Ter
Slide 22: Elevating Brand
Elevating Brand Marking the moments that create 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 placements Increasing ATV dem
Slide 23: Brilliance by Michael Hill
Brilliance by Michael Hill 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 represent ~80% of sales
Slide 24: Digital & Omni-Channel
Digital & Omni-Channel 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 18
Slide 25: Stores & Customer Experience
Stores & Customer Experience 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 Retail metrics improved ac
Slide 26: Product Evolution
Product Evolution 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 20
Slide 27: New Territories & Services
New Territories & Services 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 incremental revenue stream
Slide 28: Current Trading Update
Current Trading Update In the first 16 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 +27.5% • In comparison to FY21, a more meaningful reflection of FY23 performance, Group all store sales were
Slide 29: Questions
Questions
Slide 30: Business of the Annual General Meeting
Business of the Annual General Meeting
Slide 31: Financial Statements and Reports
Financial Statements and Reports • Audited financial statements • Directors’ report • Auditor’s report 25
Slide 32: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report To consider and, if thought fit, to pass the following advisory resolution: “That the Remuneration Report for the year ended 26 June 2022 (as set out in the Directors’ Report) is adopted.” FOR AGAINST OPEN ABSTAIN EXCLUDED NO. OF SHARES 65,735,375 3,736,255 98,127 2
Slide 33: Resolution 2: Re-election of Gary Smith as Director
Resolution 2: Re-election of Gary Smith as Director To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Gary Smith who retires by rotation in accordance with ASX Listing Rule 14.4 and Rule 38.6 of the Company’s Constitution and, being eligible, offer
Slide 34: Resolution 3: Company Incentive Plan
Resolution 3: Company 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 Incentive Plan (as defined in the Expl
Slide 35: Resolution 4: Grant of share rights to Mr Daniel Bracken
Resolution 4: Grant of share rights to Mr Daniel Bracken under the Company’s long term 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 to grant 9
Slide 36: Resolution 5: Grant of share rights to Mr Daniel Bracken
Resolution 5: Grant of share rights to Mr Daniel Bracken under the Company’s short term 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 to grant
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