Michael Hill International Ltd. · ASX:MHJ
Michael Hill International — Investor Presentation (February 2020)
16 slides from Michael Hill International's investor presentation, Feb 26, 2020
Slide 1: FY20H1 Results
H1 RESULTS — ichael hill — \ re for love f
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 FY20H1 Update
Michael Hill International Limited CEO and CFO FY20H1 Update • Business Overview • Financial Summary • Financial Snapshot • Key Performance Results • Financial Results • Group Results • Michael Hill Australia • Michael Hill New Zealand • Michael Hill Canada • Strategic Update • Q&A • Appendix A: AAS
Slide 4: Business Overview
Business Overview An established retail business, with a transformational agenda • Sales performance and EBIT growth - All markets delivered same store sales growth across both quarters, and growth in Group EBIT • Focused fiscal discipline - Committed approach to disciplined cost management while th
Slide 5: FY20H1 Financial Snapshot
FY20H1 FY20H1 Financial Financial Snapshot Snapshot • Two consecutive quarters of positive same store sales FY20H1 FY19H1 Change growth across all retail segments • FY20Q1: AU:+6.3%, NZ:+9.8%, CA:+13.4% Revenue $329.5m $315.4m +4.4% • FY20Q2: AU:+1.4%, NZ:+4.8%, CA:+1.0% • Underlying EBIT growth of
Slide 6: FY20H1 Key Performance Results
FY20H1 Key Performance Results +6.9% +6.3% UNDERLYING EBIT GROUP GROWTH SAME STORE SALES GROWTH 6.3% 61.7% $9.7m GROUP SAME STORE 35.4% 1 3 GROUP M H WE BSIT E LFL SALES SALES BRA N D E D COLLECT ION STORE STORES GROSS MARGIN FY19H1: $ 6 . 7 m Steph pic SA LES CLOS E D FY19H1: 2 0 % OP E N E D FY19H
Slide 7: Group Results
GroupResults Group Results • Group revenue increased by 4.4%, with same store sales up 6.3% • Underlying EBIT improved by 6.9%, to $31.6m** • Gross margin decline largely attributable to foreign currency headwinds and rising gold price • Interim dividend in line with FY19H2, at AU1.5 cents per share
Slide 8: Michael Hill Australia
Michael Hill Australia RETAIL SEG M E N T • Revenue declined slightly by 0.7%, reflecting closure of 9 under-performing stores • Same store sales increased by 3.3% • EBIT of $22.7m down from $24.6m • Gross margin of 59.9%, down from 63.0% in prior year • Competitive retail environment persists, howe
Slide 9: Michael Hill New Zealand
Michael Hill New Zealand RETAIL SEG M E N T • Revenue increased by 6.4% to NZ$69.9m • Same store sales increased by 6.6% • New Zealand remains the most profitable market • EBIT of NZ$14.5m, down from NZ$15.1m • Pursuing CODB initiatives to bolster EBIT For the half year ended NZD 29-Dec-19 31-Dec-18
Slide 10: Michael Hill Canada
Michael Hill Canada RETAIL SEG M E N T • Revenue growth of 7.5% • Same store sales increased by 5.1% • EBIT of CA$7.9m down from CA$8.6m • Canada remains a core profit growth opportunity, with early signs of our key productivity initiatives gaining traction • Annualised sales per sqm increased by 7.
Slide 11: Strategic Update
Strategic Update 1. Unwavering focus on costs • Second tranche of $5m savings starting to be realised in FY20 • Pursuing further non-customer facing CODB reductions • Disciplined fiscal approach 2. Retail Operating Model • Successful roll-out of integrated customer-focused retail operating model in
Slide 12: Strategic Update
Strategic Update 4. Product Evolution • Refreshed assortment in exclusive Branded Collections to support a target of 50% of sales over the coming years • Ongoing newness as part of the new merchandise rhythm • Increased emphasis on sourcing, margin and mix 5. Canadian Productivity • Increased produc
Slide 13: Strategic Update
Strategic Update 7. Loyalty • Online launch of Brilliance in Nov 2019, with positive early results • Attracting new customers • Instore launch in H2 provides a significant opportunity to increase customer engagement through targeted marketing 8. Brand • Deep and rich heritage centred around innovati
Slide 14: Questions and Answers
Questions and Answers } spirits bay
Slide 15: Michael Hill
michael hill we're for love
Slide 16: Appendix A: AASB 16 Leases Impact
Appendix A: AASB 16 Leases Impact FY20H1 Impact of FY20H1 FY19H1 Change Key Points: (AUD million) Stat AASB 16 pre-AASB 16 pre-AASB 16 pre-AASB 16 - Adopted modified retrospective approach Revenue 329.5 329.5 315.4 4.4% from 1 July 2019. No restatement of prior year comparatives required Cost of sal
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