Trading Update

MARKET RELEASE
TRADING UPDATE TO 30 JUNE 2018



HIGHLIGHTS FOR THE YEAR ENDED 30 JUNE 2018

• Group revenue increased 3.3% for the year ended 30 June 2018, with same store sales growing by 0.4%.
• The Michael Hill brand, excluding the US, delivered total store sales growth of 4.1% and same store sales growth
of 0.3%.
• Michael Hill same store sales improved 2.2% in New Zealand and by 3.5% in Canada, while Australian same
store sales declined by 0.9%.
• 17 stores were opened and 5 under-performing stores were closed within our core Michael Hill segments
during the year. In addition, 9 Michael Hill US stores and 24 Emma & Roe stores were closed as part of the
Company’s strategic refocusing on our core business. There were 312 stores trading as at 30 June 2018,
comprising 306 Michael Hill stores and 6 Emma & Roe stores (which have been announced as closing in the
coming months).
•
eCommerce sales (included in the segment numbers below) increased by 61.9% to $11.1m for the year and
represent 1.9% of total sales for the Group.

GROUP SALES

Revenue from the sale of goods and services for the 12 months to 30 June 2018:

The following figures are in Australian dollars Last Year This Year % Var
Michael Hill same stores, excluding United States 523,636,436 525,385,367 0.3%
Emma & Roe same stores 5,564,727 5,734,206 3.0%
Total same stores $529,201,163 $531,119,573 0.4%

Michael Hill all stores, excluding United States 548,698,348 571,230,099 4.1%
United States all stores 16,152,198 11,542,634 (28.5%)
Emma & Roe all stores 15,448,159 16,931,497 9.6%
Total all stores $580,298,705 $599,704,230 3.3%

Exchange rates used for the 12 months:
New Zealand 1.06 1.09
Canada 1.00 0.98
United States 0.75 0.78

MICHAEL HILL
• Australia finished the year with total stores sales up 1.1% on last year and 0.9% down for same store
sales. Seven new stores opened in Australia during the year and two closed, giving a total of 171 stores trading
at year end. An announcement was made in June detailing the splitting of the Australian segment into two
separate retail management regions. This decision was made to specifically address the challenging retail
conditions and recognising the opportunity for further growth in our Australian revenue and profitability.

• The New Zealand segment continued to perform solidly with same store sales lifting 2.2% for the year. Two
stores were opened during the period and two closed, giving a total of 52 stores trading at year end.

• Canada continues to achieve steady growth with same store sales growth of 3.5% for the year and total store
sales growth of 15.5% for the year. Eight stores were opened during the period and one closed, giving a total
of 83 stores trading at year end. The pace of further openings will be dictated to a large extent by the availability
of suitable locations and satisfactory lease terms.

• The Company has now completed the exit of all nine stores in the US

In Australian dollars, the continuing operations for the Michael Hill brand (excluding United States stores) reported
same store sales growth of 0.3% for the period. 17 new Michael Hill stores opened during the year, five
underperforming stores closed, with 306 Michael Hill stores trading at year end.


Michael Hill same store figures in local currency Last Year This Year % Var
Australia same stores AUD 306,746,646 303,835,178 (0.9%)
New Zealand same stores NZD 119,221,170 121,790,090 2.2%
Canada same stores CAD 103,762,491 107,381,825 3.5%

Michael Hill all stores figures in local currency
Australia all stores AUD 321,981,403 325,455,307 1.1%
New Zealand all stores NZD 121,968,393 125,067,793 2.5%
Canada all stores CAD 110,990,606 128,196,364 15.5%
United States all stores USD 12,156,436 8,961,623 (26.3%)


EMMA & ROE
Total sales growth for the brand was 9.6% for the year with same store sales growth of 3.0%. Emma & Roe results
during the second half of the year have been negatively impacted by the announcement to reduce the brand’s store
footprint by 24 stores. The Company has now completed the exit of the initial 24 Emma & Roe stores identified for
closure. Further, on 21 June 2018, the Company announced the planned closure of the remaining six Emma & Roe
stores following a review of the Group’s strategic focus and priorities. Additional details regarding the closure of the six
remaining stores will be announced by the Company in the coming months as appropriate and in accordance with the
Company’s disclosure obligations.



Emma & Roe same store figures in local currency Last Year This Year % Var
Australia same stores AUD 5,564,727 5,734,206 3.0%

Emma & Roe all stores figures in local currency
Australia all stores AUD 14,842,460 16,411,684 10.6%
New Zealand all stores NZD 638,118 565,039 (11.5%)


The above figures for Michael Hill and Emma & Roe represent eleven months accounting adjusted sales results plus
June preliminary sales figures prior to final accounting adjustments, and are unaudited. Revenue figures stated above
include the Professional Care Plan (PCP) revenue brought to income during the period and sales through our store and
online channels. The PCP income recognition pattern is based on existing estimates and is subject to ongoing
management review and adjusted at half year/year end as required.


Investors:
Andrew Lowe
Chief Financial Officer
+61 7 3114 3505
andrew.lowe@michaelhill.com.au


ABOUT MICHAEL HILL INTERNATIONAL
Michael Hill International was founded by Sir Michael Hill in 1979 when he opened his first jewellery store in Whangarei,
New Zealand. The Group currently has over 300 stores globally in Australia, New Zealand and Canada. The Group’s
global headquarters, including its wholesale and manufacturing divisions, are located in Brisbane, Australia. The
Company is listed on the ASX (ASX:MHJ) and the NZX (NZX:MHJ).

For more information:
www.investor.michaelhill.com
www.michaelhill.com.au/
www.emmaandroe.com.au