Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Shareholder Meeting (October 2018)
31 slides from Michael Hill International's shareholder meeting presentation, Oct 24, 2018
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 24 October 2018 1
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: 2018 Chair's Address
For personal use only 2018 CHAIR’S ADDRESS 3
Slide 4: Executive Review
For personal use only EXECUTIVE REVIEW • OVERVIEW AND STRATEGIC SNAPSHOT • FINANCIAL HIGHLIGHTS • GROUP RESULTS • STRATEGIC SHIFTS • PRIORITIES FOR 2018-19 4
Slide 5: Overview and Strategic Snapshot
OVERVIEW AND STRATEGIC SNAPSHOT For personal use only Revenues $575.5m • FY18 was a year of recalibration and repositioning, with the closure of the US stores and Emma & Roe brand and a refocus on the three core markets of Australia, New Zealand and NPAT continuing Canada. operations $34.8m • Revenu
Slide 6: Overview and Strategic Snapshot
OVERVIEW AND STRATEGIC SNAPSHOT For personal use only • The Group has identified five strategic shifts that are designed to reposition Michael Hill from a traditional retailer to a differentiated omni-channel brand: • Omni-channel: Building capability to deliver a seamless customer experience • Cust
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only $ 575.5 MILLION CONTINUING 63.7% OPERATIONS REVENUE GROSS MARG IN 4.4% $ 54.9 MILLION 0.4% 5.0c OPE RATI NG N ET CASH I N FLOW SAME STOR E DIVID END 37.8% SALES 2017: 5.0 C 50.1 $ $ 28 MILLION MILLION NET DEBT 2017: $39.4m EBI T CONTINUING OPERATIONS 17 $ 4
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only 50.4% $10.3 MILLION E-COMM E RCE SALES EQ U ITY RATI O GROWTH 2017: 52.0% 57.4% $89.1 MILLION 3.8% EBIT FROM CONTINUING RETAIL SEGMENTS CANADA SAME STOR E SALES 1.6% G ROWTH $35.7 2.3% MILLION NEW PCP SALES ZEALAND (CONTINUING OPERATIONS) SAME STOR E SALES
Slide 9: Group Results
GROUP RESULTS • Revenue from continuing operations grew 4.4%, with same store sales up 0.4% For personal use only • Gross margin for the Group was flat on prior year at 63.7% of revenue • Normalised EBIT before one-off items of $40.1m, down from $48.1m • EBIT from continuing operations of $50.1m • F
Slide 10: Michael Hill Australia Retail Segment
MICHAEL HILL AUSTRALIA RETAIL S EG M E N T For personal use only • Revenue grew by 1.2% in a tough retail market • Gross margin of 63.3%, up from 62.6% in prior year • Rising costs and a challenging retail environment impacted EBIT of $48.6m • 7 new stores opened during the year and 2 closed, giving
Slide 11: For personal use only
For personal use only 11
Slide 12: Michael Hill New Zealand Retail Segment
MICHAEL HILL NEW ZEALAND RETAIL S EG M E N T For personal use only • Revenue grew by 2.7% to NZ$125.2m • Same store sales growth of 2.3% in a mature market • EBIT of NZ$27.8m, in line with the prior year • The focus in this mature market is on improving store locations and building average store sal
Slide 13: For personal use only
For personal use only 13
Slide 14: Michael Hill Canada Retail Segment
MICHAEL HILL CANADA RETAIL S EG M E N T For personal use only • Revenue grew by 16.0% to CA$130.8m • Same store sales grew 3.8% • EBIT increased 17.9% to a record CA$14.6m • This segment continues to show good growth as it achieves scale and increases market share • 8 new stores opened during the ye
Slide 15: For personal use only
For personal use only 15
Slide 16: Strategic Shifts
For personal use only SHIFTS STRATEGIC 16
Slide 17: Omni-channel: Building Capability for a Seamless Customer Experience
OMNI-CHANNEL: BUILDING CAPABILIITY TO DELIVER A SEAMLESS CUSTOMER EXPERIENCE For personal use only Evolving our online experience, including integration of digital and social channels with our store network, to enable a seamless experience for customers where and when they engage with us. • Target g
Slide 18: Customer Loyalty: Building Data Capability
CUSTOMER LOYALTY: BUILDING DATA CAPABILITY TO BETTER SERVICE CUSTOMERS For personal use only Using data driven customer insights to deliver tailored customer experiences to drive brand loyalty and advocacy. • A focus on customer data and insights – Build our data and insights capability to be better
Slide 19: Unique Branded Collections
UNIQUE BRANDED COLLECTIONS: ESCALATE OUR GROWTH OF BRANDED COLLECTIONS For personal use only Through enhanced designer capability, create unique branded collections to meet growing customer demand for differentiated products. • Growth through proprietary branded collections – planning to grow revenu
Slide 20: Brand Position: Strengthen and Grow Brand Loyalty
BRAND POSITION: STRENGTHEN AND GROW BRAND LOYALTY For personal use only Based on recent brand review, we will reposition our brand in market to meet the changing consumer landscape. • Better engagement with our customers – differentiate the brand from our competitors to create a point of difference
Slide 21: Operational Excellence
OPERATIONAL EXCELLENCE: ENHANCE EXECUTION CAPABILITY AND AGILITY For personal use only Build capability and agility throughout the organisation to adapt quickly to a fast changing retail environment. • Improve IT infrastructure and systems – investment in our finance, HR, customer experience and inv
Slide 22: Priorities for 2018-19
PRIORITIES FOR 2018-19 For personal use only • Open at least 10 new Michael Hill stores across all markets. • Reposition Michael Hill from a traditional retailer to a differentiated omni-channel retailer. • Branded collection sales to grow as a percentage of total revenue. • Continued improvement in
Slide 23: For personal use only
For personal use only 23
Slide 24: Q1 2019 Trading Update
Q1 2019 TRADING UPDATE For personal use only • Same store sales fell by 11% during the quarter • Gross profit lifted to 64.6% • 3 new MH stores opened during the quarter and 3 were closed • 4 E&R stores closed during the quarter and we now have just 2 remaining open • Ecommerce sales increased 85% f
Slide 25: Business of the Annual General Meeting
BUSINESS For personal use only OF THE ANNUAL GENERAL MEETING 25
Slide 26: Financial Report
FINANCIAL REPORT for the financial year ended 30 June 2018 For personal use only Tabled for consideration: • Audited financial statements; • Directors’ Report; and • Auditor’s Report. 26
Slide 27: 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 2018 (as set out in the Directors’ Report) is adopted.” FOR AGAINST OPEN ABSTAIN EXCLUDED NO.
Slide 28: Resolution 2: Re-election of Emma Jane Hill
RESOLUTION 2: Re-election of Emma Jane Hill 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 Emma Jane Hill, who retires by rotation in accordance with Listing Rule 14.4 and Article 38.6 of the Company’
Slide 29: Resolution 3: Re-election of Sir Richard Michael Hill
RESOLUTION 3: Re-election of Sir Richard Michael Hill 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 Sir Richard Michael Hill, who retires by rotation in accordance with Listing Rule 14.4 and Article
Slide 30: Resolution 4: Re-election of Janine Suzanne Allis
RESOLUTION 4: Re-election of Janine Suzanne Allis 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 Janine Suzanne Allis, who retires by rotation in accordance with Listing Rule 14.4 and Article 38.6 of
Slide 31: Thank You
For personal use only THAN K YO U 31
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