Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — FY2017 Earnings Presentation
29 slides from Michael Hill International's earnings presentation, Aug 21, 2017
Slide 1: Annual Results 30 June 2017
michael hill. INTERNATIONAL LIMITED ANNUAL RESULTS 30 JUNE 2017
Slide 2: Disclaimer
DISCLAIMER This annual results presentation dated 18 August 2017 provides additional comment on the annual year results announcement released to ASX and NZX on the same date. As such, it should be read in conjunction with, and subject to, the explanations and views provided in those documents.
Slide 3: For personal use only
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Slide 5: Michael Hill Australia Retail Segment
MICHAEL HILL AUSTRALIA RETAIL SEGMENT&«.., For the year ending 2017 2016 move Same store sales 306.1m 302.5m 1.2% Total expenses 149.4m 143,.6m 4.0% EBIT as a % of revenue 16.3% 16.4% Total stores open ilele) 168 “2 « The Australian retail segment revenue increased by 4.0% to $322.0m and same store
Slide 6: Michael Hill New Zealand Retail Segment
MICHAEL HILL NEW ZEALAND RETAIL SEGMENT co For the year ending 2017 2016 Revenue 122.9m (0.8%) Same store sales 122.0m (0.8%) Gross profit % 61.7% c Total expenses 48.6m (2.9%) EBIT 27.3m 2.6% EBIT as a % of revenue 22.2% +0.8% Net stores opened/(closed) 0 Total stores open 52 « The New Zealand reta
Slide 7: Michael Hill Canada Retail Segment
MICHAEL HILL CANADA RETAIL SEGMENT cao) For the year ending 2017 2016 Revenue Same store sales Gross profit % Total expenses EBIT EBIT as a % of revenue Net stores opened/(closed) Total stores open » Revenue increased by 18.1% to CA$112.7m, with record EBIT of CA$12.6m. = The Canadian segment contin
Slide 8: Michael Hill USA Retail Segment
MICHAEL HILL USA RETAIL SEGMENT uso, For the year ending 2017 2016 move « Our US business underwent a lot of change during the year, including a leadership change and a marketing redirection, and as a result struggled to gain traction, finishing the year 8.5% down in revenue for the same stores. » T
Slide 9: Emma & Roe Retail Segment
EMMA & ROE RETAIL SEGMENT cao For the year ending 2017 2016 Revenue 15.1m 9.3m 61.7% Same store sales 72m 7.3m (2.1%) Gross profit % 66.1% 69.9% -3.8% Total expenses 16.9m 9.0m 89.0% EBIT (6.9m) (2.4m) (186.0%) EBIT as a % of revenue (45.9%) (26.0%) -19.9% Net stores opened/(closed) 13 8 Total store
Slide 10: E-commerce
For personal use only ▪ Strong revenue growth of 68% was achieved with growth coming from all jewellery categories. Online sales now exceed 1% of total revenue for the Group ▪ A 28% lift in visits to our websites for the year to 13.9m, up from 10.9m the previous year ▪ Continued and growing collabor
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Slide 14: Financial Review
FINANCIAL REVIEW ao For the year ending Group revenue Same store sales Gross profit % Marketing Retail wage costs Occupancy costs Foreign exchange (gains)/losses EBITDA EBITDA % 2 = © @ D =) © ‘= S Q — @ a. — © LL Depreciation and amortisation
Slide 15: Financial Review
FINANCIAL REVIEW ovo For the year ending % move EBIT 2.3% EBIT % of sales -0.2% Net interest expense (42.8%) NPBT 8.2% NPAT * 66.8% Earnings per share * Final dividend per share Net operating cash flows * (16.8%) Capital expenditure 35.0% 2 = © @ D =) © ‘= S Q — @ a. — © LL * Please note that severa
Slide 16: Financial Review
FINANCIAL REVIEW ao) For the year ending % Move Trade and other receivables 1.7% Includes in-house receivables 24.1% Inventories 1.9% Working capital 14.2% Deferred tax asset (9.6%) Total deferred revenue 8.7% Borrowings 10.1% Net debt 22.9% 2 = © @ D =) © ‘= S Q — @ a. — © LL Equity ratio * 3.5% *
Slide 17: Supporting Information & Trends
SUPPORTING INFORMATION & TRENDS
Slide 18: Group Revenue to June
GROUP REVENUE TO 30 JUNE muso00 600,000 500,000 400,000 300,000 200,000 100,000 2013 2014 2015 2016 2017 18
Slide 19: Earnings Before Interest & Tax June
EARNINGS BEFORE INTEREST & TAX 10 30 JUNE musco0') 50,000 48,000 46,000 44,000 42,000 40,000 38,000 36,000 2013 2014 2015 2016 2017 19
Slide 20: EBIT Contributions by Segment to June
(10,000) EBIT CONTRIBUTIONS BY SEGMENT TO 30 JUNE cuscoo.; 2013 2014 2015 2016 2017 @ Australia gNZ m@ Canada mUSA mEmma & Roe 20
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Slide 22: Store Numbers at June
For personal use only Store Numbers at 30 June 22
Slide 23: Australasian Expansion
AUSTRALASIAN EXPANSION AUSTRALIA Stores Open 30/6/17 Planned for 17/18 2 stores Planned for 18/19 2 stores Planned for 19/20 O store 170 store locations have been identified as suitable locations NEW ZEALAND Stores Open 30/6/17 Planned for 17/18 1 store Planned for 18/19 O stores Planned for 19/20 1
Slide 24: North American Expansion
NORTH AMERICAN EXPANSION CANADA Stores Open 30/6/17 Planned for 17/18 7 stores Planned for 18/19 7 stores Planned for 19/20 4 stores 100 store locations have been identified as suitable locations UNITED STATES Stores Open 30/6/17 Planned for 17/18 O stores Planned for 18/19* 1 store Planned for 19/2
Slide 25: Store Numbers at June
For personal use only Store Numbers at 30 June 25
Slide 26: Emma & Roe Expansion
EMMA & ROE EXPANSION AUSTRALIA Stores Open 30/6/17 Planned for 17/18* 5 stores Planned for 18/19* 6 stores Planned for 19/20* 6 stores NEW ZEALAND Stores Open 30/6/17 Planned for 17/18* O stores Planned for 18/19* 3 stores Planned for 19/20* 6 stores * subject to continued improvement of current bus
Slide 27: Store Photos
STORE PHOTOS Vulean Lane, Auckland , Garden City, Queensland 27
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michael hill. INTERNATIONAL LIMITED ye)
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