FY21Q3 Trading Update

ASX AND NZX ANNOUNCEMENT

T RANSFORMATION CONTINUES TO DELIVER

Third Quarter Trading Update
14 April 2021
Michael Hill International Limited (ASX/NZX: MHJ) is pleased to provide its third quarter trading update for the period
ended 28 March 2021.
KEY POINTS
• Significant growth in sales for all markets and channels – FY21Q3 same store sales were up 16.4%, with all store
sales up 11.6% for the quarter against prior year. For the first nine weeks of FY21Q3, same store sales up 12.4%
against prior year and when comparing to FY19 same store sales up 10.6% for the quarter.
• Strong margin improvement continues – Group margin increased more than 200 bps for the quarter compared to
prior year, with all markets delivering strong results, underpinned by the ongoing focus on margin enhancing
strategic initiatives.
• Digital sales remain elevated – For the quarter, online sales were up 69.2% against FY20Q3, and up 93.3% year to
date. Digital channels represent 5.6% of total sales year to date compared to 2.9% last year.
• Brilliance by Michael Hill – Loyalty program now exceeds 600,000 members.
• Store portfolio management – One under-performing store permanently closed in Australia during the quarter, with
a network total of 288 stores across all markets at the end of the half (FY20Q3: 301).

Global Store Network – COVID-19 Temporary Store Closure Update
Australia: During the quarter, 14 Queensland, 36 Victorian, and 22 Western Australian stores closed for a short
period, with a total of 332 lost store trading days. All 153 Australian stores were trading at the end of the quarter
(FY20Q3: 162).
New Zealand: For the quarter, 16 Auckland stores were temporarily closed twice for a total of 10 days, resulting in
160 lost store trading days. All 49 New Zealand stores were trading at the end of the quarter (FY20Q3: 52).
Canada: The quarter started with 46 temporarily closed Canadian stores, which all progressively re opened
throughout the quarter, representing a significant loss of 2,364 store trading days. At the end of the quarter, all 86
stores were trading (FY20Q3: 87).
In respect of FY21Q4, it should be noted that in early April, due to local government lockdowns, 41 Ontario stores
have been temporarily closed and 14 Queensland stores were also closed for three days.

Update on New Financing Arrangements

At quarter end, the Group had a positive cash position in excess of $50m and nil drawn debt. The Group is pleased to
advise it has entered into a new financing facility, jointly funded by its long term banking partner ANZ, and with the
introduction of a new lender, HSBC. This new $70m facility is currently undrawn, with a term to February 2024.


Commenting on the result, Michael Hill International Limited, CEO Daniel Bracken said:

“I’m delighted by these results, delivering further margin improvement and double-digit sales growth in all markets. Our
strategic growth agenda underpins this performance as we accelerate digital innovation, embrace new ways to shop
and elevate our brand.

“Considering the ongoing challenges of navigating COVID-19, particularly in Canada, this result demonstrates the
resilience of the Michael Hill business and further validates our transformation to a modern, differentiated, omni-channel
jewellery brand.

“I’ve never been more confident in our leadership team, and with a clear plan for growth, we are well-placed for
continued strong results despite the uncertain environment.”

SEGMENT BREAKDOWN
Revenue for retail operations for FY21Q3 (thirteen week trading period ended 28 March 2021):


$m $m

The following figures are in Australian dollars

Last Year This Year
% Var
Total same stores AUD 92.3 107.5 16.4%
Total all stores AUD 106.2 118.5 11.6%



Same store figures in local currency



Australia same stores AUD 56.0 66.0 17.9%
New Zealand same stores NZD 22.5 25.9 14.9%
Canada same stores CAD 13.0 17.0 31.1%



All stores figures in local currency



Australia all stores AUD 58.9 70.3 19.5%
New Zealand all stores NZD 23.7 27.9 17.4%
Canada all stores CAD 21.7 21.7 0.2%



Exchange rates used for FY21Q3:

New Zealand

1.04 1.07

Canada

0.89 0.98



Revenue for retail operations for YTD FY21Q3 (thirty-nine week trading period ended 28 March 2021):


$m $m

The following figures are in Australian dollars

Last Year This Year
% Var
Total same stores AUD 385.9 419.6 8.7%
Total all stores AUD 432.7 436.0 0.8%



Same store figures in local currency



Australia same stores AUD 211.4 240.2 13.6%
New Zealand same stores NZD 89.1 94.3 5.9%
Canada same stores CAD 80.8 87.3 8.0%



All stores figures in local currency



Australia all stores AUD 232.6 245.5 5.5%
New Zealand all stores NZD 93.7 97.2 3.7%
Canada all stores CAD 99.8 95.5 -4.4%



Exchange rates used for YTD FY21Q3:

New Zealand

1.05 1.07

Canada

0.90 0.96


Same store sales reflect sales through store and online channels on a comparable trading day basis and a proportional allocation of
Professional Care Plan (PCP) revenue and accounting adjustments, and are unaudited. Same store sales do not include permanent or
temporary store closures on a same trading day basis.
The above figures for all store sales represents two months sales results with accounting adjustments plus March preliminary sales
figures prior to final accounting adjustments, and are unaudited. All stores figures stated above include the PCP revenue recognised
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.


This announcement is authorised for release by the Board.

ENDS

For more information, please contact:


Investors:
Andrew Lowe
CFO & Company Secretary
+61 7 3114 3505
andrew.lowe@michaelhill.com.au


Investors:
Anthea Noble
Head of Investor Relations
+61 438 770 704
anthea.noble@michaelhill.com.au

Media:
Mark Rudder
+61 411 362 362

ABOUT MICHAEL HILL INTERNATIONAL LIMITED

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 288 stores globally across 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).

www.investor.michaelhill.com

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 do 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 announcement.


Michael Hill International Limited ABN 25 610 937 598
7 Smallwood Place, Murarrie, QLD 4172