Investor Presentation

ANNUAL RESULTS UPDATE
30 June 2019

DISCLAIMER
Certainstatementsinthisannouncementconstituteforward-lookingstatements.Forward-lookingstatementsarestatements(otherthan
statementsofhistoricalfact)relatingtofutureeventsandtheanticipatedorplannedfinancialandoperationalperformanceofMichaelHill
InternationalLimitedanditsrelatedbodiescorporate(theCompany).Thewords“targets,”“believes,”“expects,”“aims,”“intends,”“plans,”
“seeks,”“will,”“may,”“might,”“anticipates,”“would,”“could,”“should,”“continues,”“estimates”orsimilarexpressionsorthenegativesthereof,
identifycertainoftheseforward-lookingstatements.Otherforward-lookingstatementscanbeidentifiedinthecontextinwhichthestatements
aremade.Forward-lookingstatementsinclude,amongotherthings,statementsaddressingmatterssuchastheCompany’sfutureresultsof
operations;financialcondition;workingcapital,cashflowsandcapitalexpenditures;andbusinessstrategy,plansandobjectivesforfuture
operationsandevents,includingthoserelatingtoongoingoperationalandstrategicreviews,expansionintonewmarkets,futureproduct
launches,pointsofsaleandproductionfacilities.
AlthoughtheCompanybelievesthattheexpectationsreflectedintheseforward-lookingstatementsarereasonable,suchforward-looking
statementsinvolveknownandunknownrisks,uncertaintiesandotherimportantfactorsthatcouldcausetheCompany’sactualresults,
performance,operationsorachievementsorindustryresults,todiffermateriallyfromanyfutureresults,performance,operationsor
achievementsexpressedorimpliedbysuchforward-lookingstatements.
Suchrisks,uncertaintiesandotherimportantfactorsinclude,amongothers:globalandlocaleconomicconditions;changesinmarkettrendsand
end-consumerpreferences;fluctuationsinthepricesofrawmaterials,currencyexchangerates,andinterestrates;theCompany’splansor
objectivesforfutureoperationsorproducts,includingtheabilitytointroducenewjewelleryandnon-jewelleryproducts;theabilitytoexpandin
existingandnewmarketsandrisksassociatedwithdoingbusinessgloballyand,inparticular,inemergingmarkets;competitionfromlocal,
nationalandinternationalcompaniesinthemarketsinwhichtheCompanyoperates;theprotectionandstrengtheningoftheCompany’s
intellectualpropertyrights,includingpatentsandtrademarks;thefutureadequacyoftheCompany’scurrentwarehousing,logisticsand
informationtechnologyoperations;changesinlawsandregulationsoranyinterpretationthereof,applicabletotheCompany’sbusiness;
increasestotheCompany’seffectivetaxrateorotherharmtotheCompany’sbusinessasaresultofgovernmentalreviewoftheCompany’s
transferpricingpolicies,conflictingtaxationclaimsorchangesintaxlaws;andotherfactorsreferencedtointhispresentation.
Shouldoneormoreoftheserisksoruncertaintiesmaterialise,orshouldanyunderlyingassumptionsprovetobeincorrect,theCompany’sactual
financialcondition,cashflowsorresultsofoperationscoulddiffermateriallyfromthatdescribedhereinasanticipated,believed,estimatedor
expected.Accordingly,youarecautionednottoplaceunduerelianceonanyforward-lookingstatements.
TheCompanydoesnotintend,anddonotassumeanyobligation,toupdateanyforward-lookingstatementscontainedherein,exceptasmaybe
requiredbylaw.Allsubsequentwrittenandoralforward-lookingstatementsattributabletousortopersonsactingontheCompany’sbehalfare
expresslyqualifiedintheirentiretybythecautionarystatementsreferredtoaboveandcontainedelsewhereinthispresentation.
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Michael Hill International Limited
CEO and CFO Update
•FY19 Business Overview
•Financial Summary
•Group Results
•FY20
•Q & A
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FY19 Business Overview
•Strong heritage brand
Founded in 1979, the Company is focused on evolving from a traditional retailer to a
relevant, modern and differentiated jewellery brand
•Sales performance recovery
Following a disappointing FY19Q1 sales result, the business demonstrated quarter
on quarter same store sales recovery
•Strengthened executive team
Appointment of new CEO, Daniel Bracken, new Chief Operating Officer, Andrea
Slingsby, and Chief People Officer, Joanne Matthews
•End to end business and strategy re-affirmed
With a further overlay of specific initiatives for FY20
•Modernisation of our business and a focus on retail fundamentals
To increase customer relevancy, a new retail operating model, increased branded
collections, and refreshed and modernised marketing
•Stronger fiscal discipline
With a focus on supplier relationships, working capital, inventory management and
reducing the costs of doing business
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FY19 was a transitional year as the Company appointed a new CEO and strengthened the management team

FY19 Financial Snapshot
•Despite a challenging Q1, sales performance momentum recovered
throughout the subsequent quarters, with FY19Q4 +0.7%
•All segments suffered compressed margin during FY19H2 in order to
stabilise sales performance
•Delivered a cost out program for annualised cost savings of $5m
•Deliberate focus to reduce inventory through an active inventory
management program
•Statutory NPAT of $16.5m, impacted by one-off employee
remediation provision of $4.5m, aged inventory impairment of $6.0m
and other one-off items
•EBIT of $21.1m and underlying EBIT of $34.6m
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FY19FY18*
Revenues $569.5m $575.5m
Statutory NPAT $16.5m$1.6m
EBIT$21.1m$8.9m
Full Year Dividend 4.0c5.0c
Cash Flow $39.0m$54.9m
Net Debt $24.8m $28.0m
Inventory$179.5m $192.1m
* FY18 statutory earnings restated for employee remediation

Key Financial Results
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$
569.5m
G R O U P O P E R AT I N G R E V E N U E
2 0 1 8 : $ 5 7 5 . 5 m *
$
16.5m
NE T P R O F I T
A F T E R TA X
2 0 1 8 : $ 1 . 6 m * *
$
39.0m
OPERATINGNETCA SHFLOW
2018: $54.9m
$
24.8m
N E T D E BT
2018: $ 2 8 . 0m
$
34.6m
UNDERLYING EBIT
2018: 40.1m
4.0c
DIVIDE N D
2018: 5.0c
62.0%
GROS SMA RGIN
2018: 63.7%
-3.3%
SA ME STORE
S A L ES
$179.5m
I N V E N TO R Y
2 0 1 8 : $ 1 9 2 . 1 m
46.8%
EQ U I T Y R AT I O
2018: 45.9%*
* Continuing operations only
** FY18 restated for employee remediation

Operational Performance
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$
16.0m*
E-C O M M E R C E S A L E S
2 0 1 8 : $ 1 1 . 1 m *
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N E W S TO R E S
O P E N E D
32.5%
B R A N D E D C O L L E C T I O N S A L E S
+1.8%
C A N A DA
RETAIL SEGMENT REVENUE**
-4.1%
N E W Z EA L A N D
R E TA I L S E G M E N T R E V E N U E * *
-3.7%
AU ST R A L I A
R E TA I L S E G M E N T R E V E N U E * *
* Includes Emma & Roe e-commerce sales
** Local currency
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S TO R E S
C LO S E D
$5m CODB
A N N UA L I S E D S AV I N G S

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•Group revenuedeclined by 1.1%, with same store sales up 0.7% for FY19Q4
•Statutory EBIT of $21.1m, up from FY18 of $8.9m**
•Underlying EBIT of $34.6m, down from $40.1m
•Gross margin for the Group was down from prior year to 62.0%
•Final dividendof AU 1.5cents per share, giving a full year dividend of AU 4.0 cents per share
For theyear endedAUDJun-19Jun-18*change
Revenue569.5m575.5m-1.1%
Grossprofit353.0m366.9m-3.8%
Gross profit as a % ofrevenue62.0%63.7%-170ppts
Underlying EBIT34.6m40.1m-13.7%
Underlying EBIT–as a % ofrevenue6.1%7.0%-90ppts
StatutoryEBIT21.1m8.9m**+138.6%
Statutory EBIT as a % ofrevenue3.7%1.5%+220ppts
Total storesopen306312-6
Group Results
* Jun-18 figures for revenue and gross profit reflects only continuing operations (excluding Emma & Roe and US). Jun-19 includesall operations.
** Jun-18 statutory EBIT restated for employee remediation

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Michael Hill Australia

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For theyear endedAUDJun-19Jun-18*change
Revenue313.6m325.7m-3.7%
Grossprofit194.1m206.3m-5.9%
Gross profit as a % ofrevenue61.9%63.3%-140ppts
EBIT32.9m48.6m-32.3%
EBIT as a % ofrevenue10.5%14.9%-440ppts
Total storesopen168171
R E TA I L SE G M E N T
•Revenue declined by 3.7%
•Gross margin of 61.9%, down from 63.3% in prior year
•EBIT of $32.9m down from $48.6m
•Four new stores opened and eight underperforming stores closed, along with five Emma & Roe stores, resulting in a
total of 168 stores trading at year end (including one Emma & Roe store)
Michael Hill Australia
* Jun-18 figures for revenue and gross profit reflects only continuing operations (excluding Emma & Roe and US). Jun-19 includesall operations.

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Michael Hill New Zealand

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Michael Hill New Zealand
R E TA I L SE G M E N T
•Revenue reduced for the year by 4.1% toNZ$120.1m, with all store sales up in FY19Q4
•Same store sales declined by 4.5%for the year, with same store sales up 0.6% in FY19Q4
•EBIT of NZ$24.1m, a reduction of NZ$3.7m
•The New Zealand business will benefit from continued refinement of the property portfolio and improved cost
efficiencies
•Two stores opened and two stores closed giving a total of 52 stores trading at 30 June 2019
For theyear endedNZDJun-19Jun-18change
Revenue120.1m125.2m-4.1%
Grossprofit73.0m77.7m-6.0%
Gross profit as a % ofrevenue60.8%62.0%-120ppts
EBIT24.1m27.8m-13.2%
EBIT as a % ofrevenue20.1%22.2%-210ppts
Total storesopen5252

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Michael Hill Canada

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Michael Hill Canada
R E TA I L SE G M E N T
•Revenue grew by 1.8% toCA$133.1m
•Same store sales decreased by 1.7%
•Canada still presents a significant opportunity from a productivity perspective
•EBIT of CA$9.8m, down due to higher labour costs
•Four stores were opened and one store was closed, resulting in a total of 86stores trading at 30 June 2019
For theyear endedCADJun-19Jun-18change
Revenue133.1m130.8m+1.8%
Grossprofit80.7m81.6m-1.0%
Gross profit as a % ofrevenue60.6%62.4%-180ppts
EBIT9.8m14.6m-32.9%
EBIT as a % ofrevenue7.4%11.2%-380ppts
Total storesopen8683

FY20
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Key Initiatives for FY20
Building on the Strategic Priorities with Seven Key Initiatives
1.Continued focus on costs of doing business
•Delivered the FY19 cost out program –annualised benefits of $5m
•A further $5m savings identified that will fully annualisein FY21
•Continued disciplined fiscal approach
2. Retail Operating Model
•Continued implementation of a more sophisticated and integrated
customer-focused retail operating model
•Driving regular product newness to our stores, a structured and consistent
marketing platform, and exciting changes within stores for our customers
3.Retail Fundamentals
•Deliberate emphasis on our core disciplines presents a significant
opportunity
•Intense focus on retail execution and visual merchandising, enhancing our
brand, inventory management, and cost control
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Key Initiatives for FY20
4.Acceleration of the Branded Collections strategy
•Clear pathway to drive exclusive Branded Collection sales to 50% over the coming
years
•To assist with sales growth and margin opportunity with existing customers
•Avenue to attract new customers to the Michael Hill brand
5. New Merchandise Rhythm
•“Newness” -implementing new processes and a new critical path to ensure that new
product is brought to market on a regular basis
•A focus on margin mix and margin outcomes
6. Canadian Productivity
•Plans to drive increased sales per square metrehave been developed and will be
implemented
7.Online as a core focus
•Strong focus on improving our existing online customer experience and expanding our
digital platform for the future
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Celebration of 40 Years
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New Brisbane City Flagship Store
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Thank you
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