Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Investor Presentation (February 2022)
17 slides from Michael Hill International's investor presentation, Feb 23, 2022
Slide 1: FY22H1 Results
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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 anticipated or planned financial and operational performance of Michael Hill International
Slide 3: CEO and CFO FY22H1 Update
Michael Hill International Limited CEO and CFO FY22H1 Update • FY22H1 Performance Overview • FY22H1 Financial Results • Group Results • Key Performance Results • Outlook • Strategy Update – Emphasis on Growth and Margin • Appendices 3
Slide 4: FY22H1 Performance Overview
FY22H1 Performance Overview • Outstanding results despite significant disruption: • 15% increase in earnings • ~20% lost store trading days across AU and NZ • Global supply chain excellence • Strategic initiatives continue to deliver: • Brand elevation • Loyalty – over 1 million members • Digital-fi
Slide 5: FY22H1 Financial Results Snapshot
FY20H1 FY22H1 Financial Group Results Snapshot FY22H1 FY21H1 Change • Revenue and same store sales growth Revenue $327.1m $319.9m +2.3% • Gross profit up $12.4m Same store sales +11.4% • Comparable EBIT up 63.1% on FY20 Gross Profit $212.9m $200.5m +6.2% • Healthy net cash position Gross Margin 65.1
Slide 6: Key Performance Results
FY20H1 Key Financial Performance Snapshot Results 6
Slide 7: Outlook
Outlook • In January, Australia and Canada were impacted by Omicron, with significantly lower foot traffic, challenging rostering and reduced store trading hours • Potentially similar impacts may arise in New Zealand over the coming weeks • In the first eight weeks of FY22H2: • Group same stores sal
Slide 8: Strategy Update - Emphasis on Growth and Margin
Strategy Update - Emphasis on Growth and Margin Brand & Loyalty Modern, differentiated, omni-channel jewellery brand Digital & Digital-first, customer-led & channel agnostic Omni-channel Retail Elevated productivity & customer experience Fundamentals Product Evolution Uniquely Michael Hill New Terri
Slide 9: Brand & Loyalty Update
Brand & Loyalty Update Modern, differentiated, omni-channel jewellery brand Elevated brand messaging Focus on craftmanship, quality and sustainability Over 1 million loyalty members Increased focus on customer segmentation and personalisation Targeted AI and data insights 9
Slide 10: Digital & Omni-Channel
Digital & Omni-Channel Digital-first, customer-led & channel agnostic Traffic conversion sales Launch of click & collect Marketplace trials established Omni-channel now represents 30%-40% of digital 10
Slide 11: Retail Fundamentals
Retail Fundamentals Elevated productivity & customer experience Ten quarters of SSS growth Investing in store network Rejuvenated global leadership structure People & performance Elevated retail execution Technology enabled dynamic rostering 11
Slide 12: Product Evolution
Product Evolution Uniquely Michael Hill Elevated quality & craftmanship Australian artisanal workshop Increased emphasis on sustainability & LGD Product mix driving margin expansion Product newness critical to brand elevation 12
Slide 13: Exploring New Business Opportunities
Exploring New Business Opportunities New markets, new channels Capital Management Framework & new service propositions Organic Dividend Policy Growth Analysis of new territories & channels via digital platforms: Capital Organic+ - marketplace Investment Investment - international dot.com Opportuniti
Slide 14: Appendix
Appendix
Slide 15: Appendix A: Michael Hill Segment Results
Appendix A: Michael Hill Segment Results Australia (AUD) New Zealand (NZD) Canada (CAD) FY22H1 FY21H1 Change FY22H1 FY21H1 Change FY22H1 FY21H1 Change Revenue 161.5m 175.1m -7.8% 67.0m 69.3m -3.3% 93.0m 75.2m +23.6% Gross profit 104.5m 107.6m -2.8% 42.5m 42.3m +0.5% 60.1m 46.3m +29.9% Gross margin 6
Slide 16: Appendix B: AASB16 Leases & SaaS Impact
Appendix B: AASB16 Leases & SaaS Impact FY22H1 Impact of FY22H1 FY21H1 Change (AUD million) Stat AASB16 & SaaS pre-adjustments pre-adjustments pre-adjustments Revenue 327.1 327.1 319.9 +2.3% Cost of sales -114.2 -114.2 -119.4 -4.4% Gross profit 212.9 212.9 200.5 +6.2% Employee benefits expense -75.3
Slide 17: Slide 17
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