Michael Hill International : FY23 Results Presentation

FY23 RESULTS

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 Limited and its related bodies corporate (the Company). The words "targets," "believes," "expects," "aims," "intends," "plans," "seeks," "will," "may," "might," "anticipates," "would," "could," "should," "continues," "estimates" or similar expressions or the negatives thereof, identify certain of these forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. Forward-looking statements include, among other things, statements addressing matters such as the Company's future results of operations; financial condition; working capital, cash flows and capital expenditures; and business strategy, plans and objectives for future operations and events, including those relating to ongoing operational and strategic reviews, expansion into new markets, future product launches, points of sale and production facilities.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performance, operations or achievements or industry results, to differ materially from any future results, performance, operations or achievements expressed or implied by such forward-looking statements.

Such risks, uncertainties and other important factors include, among others: global and local economic conditions; changes in market trends and end-consumer preferences; fluctuations in the prices of raw materials, currency exchange rates, and interest rates; the Company's plans or objectives for future operations or products, including the ability to introduce new jewellery and non-jewellery products; the ability to expand in existing and new markets and risks associated with doing business globally and, in particular, in emerging markets; competition from local, national and international companies in the markets in which the Company operates;

the protection and strengthening of the Company's intellectual property rights, including patents and trademarks; the future adequacy of the Company's current warehousing, logistics and information technology operations; changes in laws and regulations or any interpretation thereof, applicable to the Company's business; increases to the Company's effective tax rate or other harm to the Company's business as a result of governmental review of the Company's transfer pricing policies, conflicting taxation claims or changes in tax laws; and other factors referenced to in this presentation.

Should one or more of these risks or uncertainties materialise, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition, cash flows or results of operations could differ materially from that described herein as anticipated, believed, estimated or expected. Accordingly, you are cautioned not to place undue reliance on any forward-looking statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic.

The Company does not intend, and does not assume any obligation, to update any forward-looking statements contained herein, except as may be required by law. All subsequent written and oral forward-looking statements attributable to us or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this presentation.

Michael Hill International Limited

CEO and CFO FY23 Update

• FY23 Performance Overview
• FY23 Financial Results
• • Group Results
  • Key Performance Insights
  • Segment Results
  • Capital Management Framework
• FY24 Trading Update
• Strategy Update - Emphasis on Growth
• MH Group - Portfolio of Brands
• Q&A
• Appendices

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FY23 Performance Overview

• Record sales, strong margin and second highest comparable EBIT underpinned by:
• • Ability to elevate ATV supported by MHJ's aspirational brand journey
  • Leveraging the loyalty program
  • Product evolution
  • Retail fundamentals
• Brilliance by Michael Hill membership now over 2 million
• Successful transition to new global headquarters:
• • State of the art distribution technology
  • Upgraded artisanal manufacturing workshop
  • Attract and retain high calibre talent
• Executed acquisition strategy with purchase of Bevilles
• Continued focus on digital to modernise customer experience and enter new markets of Quebec, Singapore and Malaysia

• Culture and team - unwavering focus and energy

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FY23 Group Results

• Record revenue with growth of $34m
• Strong gross profit up $20m
• Elevated gross margin maintained
• Comparable EBIT down 6% but second highest year
• Balance sheet with nil net debt, having deployed cash to support dividends, share buy-back and Bevilles acquisition
• Healthy inventory, with the growth attributable to the Bevilles business
• Final dividend of AU3.5 cents per share

	FY23 1, 2	FY22	Change
Revenue	$629.6m	$595.2m	+6%
Gross Profit	$404.4m	$384.8m	+5%
Gross Margin	64.2%	64.7%	-50bps
Comparable EBIT	$58.9m	$62.9m	-6%
Inventory	$203.3m	$181.5m	+$21.8m
Net Cash	$8.4m	$95.8m	-$87.4m
Total Dividend	AU7.5c	AU7.5c	-
Store Network	278	280	-2
	304 with Bevilles

1. FY23: 53-week year
2. Includes four weeks of Bevilles trade from 1 June 2023

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