Annual Report to Shareholders

ANNUAL REPORT 2021

DISCLAIMER: Certain statements in this report 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 Group). 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
Group’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 Group 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 Group’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 Group’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 Group operates; the protection and strengthening of the Group’s intellectual property rights, including patents and trademarks; the future adequacy of the Group’s current warehousing,
logistics and information technology operations; changes in laws and regulations or any interpretation thereof, applicable to the Group’s business; increases to the Group’s effective tax rate or other harm to
the Group’s business as a result of governmental review of the Group’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 Group 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 Group’s behalf are expressly qualified
in their entirety by the cautionary statements referred to above and contained elsewhere in this announcement.
TERMINOLOGY: In this report, unless otherwise specified or appropriate in the context, the term "Company" refers to Michael Hill International Limited, and the terms "Group" or "Michael Hill" refer to the
Company and its subsidiaries (as appropriate).

1
Contents
The Directors are pleased to
present the annual report of
Michael Hill International Limited
and its subsidiaries for the year
ended 27 June 2021.
3 COMPANY PROFILE
5 CHAIR REVIEW
7 CEO REVIEW
10 PERFORMANCE HIGHLIGHTS
11 KEY FACTS
12 FY21 RESULTS
14 TREND STATEMENT
16 SUSTAINABILITY
27 OUR EXECUTIVE TEAM
29 DIRECTORS’ REPORT
41 REMUNERATION REPORT
52 AUDITOR’S INDEPENDENCE DECLARATION
53 FINANCIAL STATEMENTS
95 DIRECTORS’ DECLARATION
95 INDEPENDENT AUDITOR’S REPORT
99 ADDITIONAL INFORMATION
100 CORPORATE DIRECTORY
SOLITAIRE AND ENHANCER RINGS FROM
THE EVERMORE COLLECTION

2
Our purpose:
the people behind the
moments that matter

3
Company profile
The first Michael Hill store opened in 1979 when Sir
Michael Hill and his wife, Lady Christine Hill launched their
unique retail jewellery formula in the New Zealand town
of Whangarei, some 160 kilometres north of Auckland.
With dramatically different store designs, a product range
devoted exclusively to accessible jewellery and the clever
use of high impact advertising, Michael Hill rapidly gained
popularity and rose to national prominence.
Following a successful listing on the New Zealand
Stock Exchange in 1987, the Group expanded across the
Tasman to Australia. After 15 years of sustained growth in
both countries, Michael Hill embraced the opportunity to
expand to North America in 2002, opening its first stores in
Vancouver, Canada. The Group's Canadian retail presence
continues to evolve as does the Group's innovative online
presence in all markets in which it operates.
In 2016 Michael Hill moved its primary stock
exchange listing to the Australian Securities Exchange
and continues to maintain a secondary listing on the New
Zealand Stock Exchange (ASX/NZX: MHJ).
As of 27 June 2021, the Group operates 150 stores
in Australia, 49 in New Zealand and 86 stores in Canada.
Around the world, the Group employs approximately 2,000
permanent employees across retail sales, manufacturing
and corporate roles
.
From 1979 to the present day, and as we look to the
future, one constant underpins all that we do: we’re for
love. Michael Hill remains committed to creating quality
jewellery for our customers to cherish for a lifetime.
Information on our corporate governance policies
and practices, including our Corporate Governance
Statement, is available on our Investor Centre website at
investor.michaelhill.com
Michael Hill is an international
retail business operating as a
leading modern, differentiated,
omni-channel jewellery group.

As of 27 June 2021, it operates
285 stores across Australia,
New Zealand and Canada.

We never lose sight of the
principles of courage, innovation,
quality, design and ambition that
Michael Hill was founded on...

5
STRONG RESULTS DURING
TRADE DISRUPTIONS
I am immensely proud of what the
Michael Hill team has delivered
over the last twelve months.
From the outset, we were
determined that the disruption
and uncertainty caused by the
pandemic raging around the
globe would not distract us
from our transformation agenda and the great progress
being made to position Michael Hill as a high performing,
modern, differentiated, omni-channel jeweller.
And the results speak for themselves; a record net
profit result for the group, strong balance sheet and
cash position, reduced inventory levels, increased sales
of branded collections, increased stock turn, substantial
growth in membership of our loyalty programme, continued
strong growth in our digital presence and effective
collaboration of our digital, social and physical channels.
Daniel will talk more to these achievements in his report.
It is clear that the impact of COVID-19 is not set
to abate anytime soon and the agility, adaptability,
resilience and perseverance, which enabled such a strong
performance over the last 12 months, will continue to drive
our strategic and operational momentum into the future.

COMMITMENT TO OUR PEOPLE
The pandemic has brought constant uncertainty and
sporadic restrictions on our freedom of movement and ability
to socialise, which can be debilitating and overwhelming
for many people. It is times such as these, with our people
exposed to new and elevated stresses, that our commitment
to our core beliefs and values is truly tested.
Throughout the year we have constantly been
referencing our values:
We care, We create outstanding
experiences, We are professional
and We are inclusive
and diverse
to inform our thinking and drive our decision
making. Through every lockdown event and in response to
every new COVID-19 protocol that has been mandated, we
have responded and engaged with our team to ensure they
have the best possible support to adapt to these changes.
First and foremost, our priority has been to ensure
that we implement best-in-class health and safety
protocols across all facets of our business to keep our
people, our customers and our suppliers safe.
It was pleasing to see this commitment recognised
with our highest ever employee engagement score in
our end of year employee engagement survey. We are
incredibly fortunate to have such an experienced and
committed team as we navigate these turbulent times.
Dear Shareholders,
STRENGTH OF OUR HERITAGE,
A FOUNDATION FOR OUR FUTURE
We are constantly evolving our brand position, product
offering, customer engagement programmes and
business systems at Michael Hill to ensure we remain
relevant as a modern, differentiated omni-channel
jeweller. But, notwithstanding the transformation
programme Daniel is successfully leading, we never lose
sight of the principles of courage, innovation, quality,
design and ambition that Michael Hill was founded on.
Daniel and his team are doing an outstanding job of
fusing our past with our future strategic direction and the
strength of the FY21 result demonstrates the traction we
are gaining.
OUR BOARD
The Board of Directors is comprised of highly collaborative,
capable individuals with deep retail backgrounds and a mix
of complementary skills.
We are very fortunate to have Sir Michael, our
Founder President, as custodian of our brand, actively
contributing both at the Board table and out around our
network. The Board and our teams in store continue to
benefit enormously from his experience, insights and
constant challenge to do better.
At the end of the financial year, Emma Hill decided to
retire as Chair and remain as a Non-Executive Director. As
an admirer of the Michael Hill brand for many decades,
I was honoured to be selected by the Board to succeed
Emma as Chair and I now look forward to building on
the heritage that Sir Michael and Emma and the entire
Hill Family have contributed over the last four decades
.
Furthermore, Daniel Bracken CEO, joined the Board as
Managing Director. I look forward to working with my
fellow Directors and the wider Michael Hill team to ensure
we continue to execute our strategic transformation and
develop and strengthen the Michael Hill brand in our
chosen markets.
THIS PAGE AND OPPOSITE PAGE:
MORGANITE AND DIAMOND RINGS FROM THE
SIR MICHAEL HILL DESIGNER BRIDAL COLLECTION

6
The business delivered
both strong sales growth
and margin expansion in
all three markets...

TRANSFORMATION AGENDA ON TRACK
FY21 has been an outstanding year for
Michael Hill, delivering record financial
results, with all metrics up. This result
is a credit to both the execution of our
strategic initiatives and the dedication
and resilience of our team.
I’m particularly proud of these
results, as they were delivered whilst
navigating significant disruption from
the global pandemic. Half our Canadian stores were closed
for many months, Victorian stores were closed for more than
three months and multiple short sharp temporary closures were
experienced across our global network resulting in over 10,000
lost store trading days. Pleasingly, due to deliberate planning,
the pandemic did not significantly disrupt our inventory supply
chain and importantly, the business continued to prioritise the
ongoing health, safety and well-being of our team members and
our customers.
From a results perspective, the business delivered both
strong sales growth and margin expansion in all three markets,
further validating the transformation agenda is on track. Our
reinvigorated retail leadership demonstrated their commitment
to further embedding our retail fundamentals, which saw
increases in all key metrics – ATV, IPS and conversion. Our
Brilliance by Michael Hill loyalty program went from strength to
strength, ending the year with over 800,000 members.
Throughout the year we continued
to enhance our digital business,
which pleasingly, exceeded
expectations increasing sales
by 53% and
delivering yet
another record for digital,
now 6.3% of total sales. The
team also worked tirelessly
to roll-out additional
omni-channel offerings,
including “ship from store”,
“click and
reserve” and
“virtual selling”.
7
CEO’s message
THREE STONE DIAMOND RINGS FROM
THE SIR MICHAEL HILL DESIGNER BRIDAL COLLECTION
DIVIDENDS
The Board has previously stated its intention
to restore dividend payments to historic
levels as the pandemic recovery becomes
more certain. After taking into consideration
business performance, the strength of the
balance sheet, and while also recognising the
risk of ongoing trading disruption, the Board
declared a final dividend of
au3.0¢ per share.
This final dividend complements the interim
FY20 deferred dividend debt of
au1.5¢ per
share and FY21 interim dividend of au1.5¢ per
share, paid earlier in the year and lays the
foundation for a sustainable dividend profile
going forward, subject to the impacts of
ongoing trading disruptions.
IN CONCLUSION
Reflecting on the year, I’m very proud of the
dedication, energy and resilience consistently
demonstrated throughout the business, and
would like to thank every individual and team
for their strength and determination in forging
ahead and contributing to the successful year
for Michael Hill – our business is our people.
I believe the company has a compelling
strategy and is well-placed, with a strong
balance sheet and a high performing
leadership team, to deliver on our growth and
transformation agenda, while also exploring
new business opportunities.
Regards,

Robert Fyfe
Chair

Throughout the year we continued to
enhance our digital business, which
pleasingly exceeded expectations,
increasing sales by 53% ...

• L OYA LT Y: With over 800,000 members in 18 months,
acquisition has been our number one priority for
Brilliance by Michael Hill. With the use of predicative
analytics and increased personalisation, further growth
in the business will be driven by opportunities of
activation, engagement and retention.
•
PRODUCT EVOLUTION: This sees a focus on regular
product newness, and uniquely Michael Hill branded
product as a key differentiator to excite our customers,
drive increased sales and margin growth. In the coming
years, the Company will increase its emphasis on
our Australian craftmanship, and continue to explore
additional sustainable and environmental opportunities.
•

COST CONSCIOUS CULTURE: The Company’s
significantly improved net cash and targeted inventory
position at year end demonstrate that a cost conscious
culture exists across every aspect of the Company.
We continue to optimise our supply chain, improve
the global store network, and enhance our credit
propositions globally.
EXECUTIVE LEADERSHIP TEAM
To support our strategic roadmap and further advance
our digital transformation, I’m delighted to welcome Keith
Louie, as our first ever Chief Digital Officer. Keith brings a
wealth of retail experience, eCommerce leadership and
digital strategy to the Michael Hill business.
Keith’s appointment, alongside the recent arrivals
of Amy Sznicer, Chief Retail Officer, and Jo Feeney,
Chief Marketing Officer, adds significant expertise to our
already high calibre leadership team.
We have assembled a world-class leadership team at
Michael Hill, which is fully committed to our strategy, the
transformation and delivering outstanding results.
Daniel Bracken
Managing Director and CEO
9
It should be noted our transformation agenda touches
every single aspect of our business, and I couldn’t be
happier with how the team is working together to deliver
common goals as we further strengthen and elevate the
Michael Hill brand.
This outstanding result is the culmination of over two
years of hard work, building and executing our strategy.
This is best evidenced by eight quarters of comparative
sales growth, together with sustained margin expansion.
STRATEGIC UPDATE
Our seven strategic pillars remain firmly in place and
continue to focus on the evolution of Michael Hill into a
modern, differentiated, omni-channel jewellery group.
•

BRAND: Elevating the Michael Hill brand, with the
introduction of aspirational brand-led campaigns and
an emphasis on local craftsmanship and artisans,
resulting in higher ATV and margin growth. Our
customer facing messaging will be further enhanced by
data and insights from our customer segmentation and
personalisation programs.
•

DIGITAL: Building on current momentum, we expect
our new initiatives will continue to grow this key
strategic pillar. Additionally, new 3rd party digital
channels will be explored and expanded to grow our
digital footprint. During the year, we also saw the launch
of our new pure-play demi-fine brand, Medley.
•

RETAIL FUNDAMENTALS: Underpinned by revitalised
leadership and the new retail incentive scheme, all
markets saw an increase across all key retail metrics.
Roster optimisation, visual excellence and increased
training will continue to be a priority, with additional
performance metrics added to our incentive scheme.
•

OMNI-CHANNEL: Enabled by the roll out of our new
ERP platform early in FY21, “ship from store” has
delivered many cost and customer experience benefits,
while “click and reserve” has contributed sizable
incremental sales and in-store upselling opportunities.
Having already seen the benefits for ATV in trialling
these new customer channels, these initiatives,
together with virtual sales and digital appointments
will now be progressively rolled out across our global
network, along with the launch of “click and collect”
for Christmas 2021, delivering incremental sales and
enhanced customer experience.
FANCY CUT THREE STONE DIAMOND
RINGS FROM THE SIR MICHAEL HILL
DESIGNER BRIDAL COLLECTION

10 MICHAEL HILL INTERNATIONAL LIMITED 2020 FINANCIAL STATEMENTS
Performance
Highlights
STATUTORY NET PROFIT AFTER TAX
INCREASED TO $45.3m
EARNINGS BEFORE INTEREST AND TAX
(EBIT) INCREASED TO $72.4m
GROUP OPERATING REVENUES
INCREASED 13.1% TO $556.5m
GROUP SAME STORE SALES WERE
up 8.6% FOR THE YEAR
GROUP GROSS MARGIN INCREASED BY
210BPS TO 62.7%
MAINTAINED TARGET INVENTORY LEVELS
AT $171.2m
STRONG BALANCE SHEET WITH A HEALTHY
NET CASH POSITION OF $72.4m
Key Financial Results
Operational Performance
BRILLIANCE BY MICHAEL HILL NOW
over 800,000 members
MICHAEL HILL BRANDED COLLECTION SALES
CLIMB TO 42.1% OF TOTAL SALES
EXTENSIVE TEMPORARY STORE CLOSURES
CULMINATING IN 10,447 LOST TRADING DAYS
ONE NEW STORE OPENED AND SIX
UNDER-PERFORMING STORES WERE CLOSED
DIGITAL SALES
REPRESENT 6.3% OF TOTAL SALES
DIGITAL SALES INCREASED BY
53.4% TO A RECORD $34.8m

11
2021 2020
KE Y R ATI O S
Return on average shareholders funds 26.1% 1.9%
Gross margin 62.7% 60.6%
Interest expense cover (times) 9.5 1.5
E
quity ratio (total equity/total assets) 38.1% 30.7%
Working capital ratio
(current assets / trade payables) 3.7 : 1 3.0 : 1
C
urrent ratio
(current assets/current liabilities) 1.8 : 1 1.4 : 1
DIVIDENDS - including final dividend
Per ordinary share
au4.5¢ au1.5¢
Times covered by net profit after tax 2.60 0.53
SHARE PRICE AT YEAR END au$0.83 au$0.32
KEY INVESTOR RATIOS
Basic earnings per share au11.68¢ au0.79¢
Diluted earnings per share
au11.63¢ au0.79
EBIT to sales 13.0% 2.9%
Re
turn on average total assets 9.0% 0.7%
SAME STORE SALES*
(in local currency)
Australia 13.0% 0.1%
New Zealand 7.1% 2.4%
Canada 6.8% 2.3%
Group same store sales movement 8.6% 2.7%
NUMBER OF STORES
Australia 150 155
New Zealand 49 49
Canada 86 86
Tot
al number of Michael Hill stores
285 290
* EBIT, Comparable EBIT and Same Store Sales are Non-IFRS
information and are unaudited. Please refer to page 35 for an
explanation of Non-IFRS information and a reconciliation of EBIT and
Comparable EBIT.
Key Facts
2021 2020
TRADING RESULTS
au$000 au$000 % Change
Group revenue 556,486 492,060 13.1%
Gross margin 348,916 298,204 17.0%
Earnings bef
ore interest
and tax (EBIT)*
72,398 14,079 414.2%
Comparable earnings befor
e
interest and tax (EBIT)*
56,594 (5,225)
1,183.1%
Net profit before tax (NPBT)
64,807 4,485 1,345.0%
Net profit after tax (NPAT) 45,328 3,059 1,381.8%
Group trading results
Profit for the year 45,328 3,059 1,381.8%
Net
cash inflow
from operating activities 143,452 83,699 78.0%
FINANCIAL POSITION
Contributed equity
388,142,149 ordinary shares 11,285 11,016 2.4%
To
tal equity 193,401 153,806 25.7%
Total assets 508,111 501,618 1.3%
Net (
debt) / cash 72,361 523
13,735.8%
Capital expenditure 19,027 17,353 9.6%
DESIGNER HALO ENGAGEMENT RING
WITH MATCHING PENDANT AND EARRINGS
FROM THE SIR MICHAEL HILL
DESIGNER BRIDAL COLLECTION

12
Return on average
assets 9%
% / YEAR ENDED 27 JUNE
18
19202117
10.5
8.2
4.3
0.7
9.0
Ordinary dividend
AU CENTS PER SHARE /
YEAR ENDED 27 JUNE
1819202117
5.05.0
4.0
1.5
4.5
Net profit from operating
activities after tax up 1,382%
AU$ MILLIONS /
YEAR ENDED 27 JUNE
18192021
17
41.1
31.8
16.5
3.1
45.3
Inventory down 4.4%
AU$ MILLIONS /
FINANCIAL YEAR
1819202117
203.9
192.1
179.5
178.7
171.2

1313
Revenue by country
FINANCIAL YEAR
AUSTRALIA 56%
NEW ZEALAND
23%
CANADA 21%
Group revenue up 13%
AU$ MILLIONS /
YEAR ENDED 27 JUNE
1819202117
551.1
575.5
569.5
492.1
556.5
Earnings before interest,
taxation, depreciation and
amortisation (EBITDA) up 77%
AU$ MILLIONS /
YEAR ENDED 27 JUNE
18192021
17
75.5
64.5
40.5
69.7
123.7
Return on average
shareholders’ funds 26.1%
YEAR ENDED 27 JUNE
1819202117
20.9%
17.4%
1.9%
26.1%
9.4%
EMERALD CUT SOLITAIRE FROM
THE FENIX CREATED DIAMONDS
FOR MICHAEL HILL COLLECTION

14
2021 2020 2019 2018 2017
FINANCIAL PERFORMANCE

$000 $000 $000 $000 $000
Group revenue 556,486 492,060 569,500 575,539 551,099
Earnings before interest, tax, depreciation
and amortisation (EBITDA)
123,691 69,690 40,481 64,481 75,482
Depreciation and amortisation 51,293 55,611 19,366 18,694 17,427
Earnings before interest and tax (EBIT) 72,398 14,079 21,115 45,787 58,055
Net interest paid
7,591 9,594 2,304 2,680 3,149
Net
profit before tax (NPBT)
64,807 4,485 18,811 43,107 54,906
Income tax 19,479 1,426 2,313 11,342 13,769
Net profit after tax (NPAT) 45,328 3,059 16,498 31,765 41,138
Net operating cash flow
143,452 83,699 38,969 54,893 39,752
Ordinar
y dividends paid
11,636 5,817 19,365 19,371 19,264
FINANCIAL POSITION 2021 2020 2019 2018 2017


$000 $000 $000 $000 $000
Cash 72,361 11,204 7,923 7,220 5,676
Inventories
171,246 178,742 179,503 192,074 203,853
Other current assets 27,463 31,007 35,878 29,314 29,052
Total current assets
271,070 220,953 223,304 228,608 238,581
Other non-current assets 37,729 57,857 72,742 72,219 83,864
Deferred tax assets
60,585 74,468 67,708 68,022 62,712
Total tangible assets 369,384 353,278 363,754 368,849 385,157
Right-of-use assets
105,882 123,911 - - -
Intangible assets 32,845 24,429 15,439 12,626 8,784
Total assets
508,111 501,618 379,193 381,475 393,941
To
tal current liabilities
151,522 159,405 105,130 108,710 95,716
Non-current borrowings - 10,681 32,704 35,213 45,034
Lease
liabilities - 115,848 - - -
Other long term liabilities 163,188 61,878 64,607 62,627 62,252
Total liabilities
314,710 347,812 202,441 206,550 203,002
Net assets 193,401 153,806 176,752 174,925 190,939
Reserves and retained profits 182,116 142,790 165,768 164,659 180,924
Paid up
capital
11,285 11,016 10,984 10,266 10,015
To
tal shareholder equity
193,401 153,806 176,752 174,925 190,939
Basic earnings per share 11.68¢ 0.79¢ 4.26¢ 8.20¢ 10.66¢
Diluted earnings per share 11.63¢ 0.79¢ 4.25¢ 8.19¢ 10.
66¢
Dividends declared per share
- Interim
au1.5¢ au1.5¢ au2.5¢ au2.5¢ au2.5¢
- Final
au3.0¢ - au1.5c¢ au2.5¢ au2.5¢
Net tangible asset backing
$0.14 $0.01 $0.42 $0.42 $0.4
7
Trend Statement

15
ANALYTICAL INFORMATION
2021 2020 2019 2018 2017
EBITDA to sales 22.2% 14.2% 7.1% 11.2% 13.7%
EBIT to sales
13.0% 2.9% 3.7
%
8.0% 10.5%
Net profit after tax to sales 8.1% 0.6% 2.9% 5.5% 7.5%
EBIT to total assets 14.2% 2.8% 5.6% 12.0% 14.7%
Return on average shareholders funds 26.1% 1.9% 9.4% 17.4% 20.9%
Return on average total assets
9.0% 0.7
%
4.3% 8.2% 10.5%
Working capital ratio 3.7 : 1 3.0 : 1 5.0 : 1 4.6 : 1 4.9 : 1
Current ratio 1.8 : 1 1.4 : 1 2.1 : 1 2.1 : 1 2.5 : 1
EBIT interest expense cover
9.5 1.5 8.6 17.0 18.3
Ef
fective tax rate
30.1% 31.8% 12.3% 26.3% 25.1%
Ne
t borrowings to equity
- 37.
4%
-0.3% 23.5% 27.7
%
20.
6%
Equity ratio
38.1% 30.7
%
46.
6%
45.9% 48.5%
Shares issued at year end excl Treasury 388,142,149 387,769,105 387,750,000 387,438,513 387,438,513
Treasury stock at year end - - - - 14,677
Exchange rate for translating:
New Zealand results
1.07 1.04 1.06 1.09 1.07
Canadian results 0.95 0.90 0.95 0.98 0.97
Unit
ed States results - - - 0.78 0.83
Number of Michael Hill stores
Australia 150 155 167 171 166
New Zealand
49 49 52 52 52
Canada 86 86 86 83 76
USA
- - - - 9
Total number of Michael Hill stores 285 290 305 306 303
Total Michael Hill stores 285
1987 - 2021
Digital sales up 53%
AU$ MILLIONS /
FINANCIAL YEAR
1819202117
6.9
11.1
16.0
24.7
34.8
Branded collections up 13%
% OF TOTAL SALES /
FINANCIAL YEAR
1819202117
14.2
18.0
32.5
37.3
42.1

16
Michael Hill
- the jeweller
who cares
Sustainability
At Michael Hill we are consistently striving
to be better, and do better for our team,
the environment, and our community. We
recognise that the decisions we make today
are a commitment to a more sustainable
future for our planet, and future generations.
Sustainability has been recognised as
an integral component of our strategic
plan. During FY21 we made a positive
difference in the communities we serve
through delivering initiatives aligned to
our three core sustainability pillars: to
love our team, love our environment and
product, and love our communities – as we
believe love changes lives. Aligned with
the United Nations (UN) 17 Sustainable
Development Goals, our future initiatives
will contribute towards vital, global areas
for improvement.
Committed to developing a strong roadmap
towards becoming a more sustainable
and ethically responsible business, we
will continue to focus on our three core
sustainability pillars, to ensure we are
protecting our ecosystem and contributing
to the communities we serve in meaningful

ways, for generations to come.

Overarching Focus Areas
Love our Communities
We strive to have a consistent and positive
impact in the global communities we work with
and operate in.
Love our Team
Our priority is to create a diverse and inclusive
environment which allows our team members
to be their authentic selves and feel their
growth is recognised and supported.
Love our Environment &
Product
We will consistently search for a better way to
operate, to benefit and reduce our impact on
the environment.

17
RESPONSIBLE JEWELLERY COUNCIL
Michael Hill is a proud member of Responsible Jewellery Council
(RJC); the peak industry organisation established to advance
responsible business, human rights, social and environmental
practices throughout the jewellery and watch supply chain.
Responsible Jewellery Council is the leading standards
organis
ation of the global jewellery and watch industry. RJC
members commit to and are independently audited against the
RJC Code of Practices – an international standard on responsible
business practices for diamonds, coloured gemstones, silver, gold
and platinum group metals. The Code of Practices (COP) addresses
human rights, labour rights, environmental impact, mining
practices, product disclosure and other important aspects of the
jewellery supply chain. RJC also works with multi-stakeholder
initiatives on responsible sourcing and supply chain due
diligence. The RJC’s Chain-of-Custody Certification (CoC) for
precious metals supports these initiatives and can be used
as a tool to deliver broader member and stakeholder benefit.
Through the implementation of the COP and CoC members
contribute towards the 17 Sustainable Development Goals of
the United Nations 2030 agenda.
When a customer chooses to buy from an RJC certified
member, including Michael Hill, they are choosing a company that
is recognised for its ongoing commitment to put people and our
planet first. At Michael Hill, we work to ensure responsibility is at the
forefront of our strategic initiatives, demonstrated in our day-to-day
operations, business planning activities and decision-making
processes. In close consultation with the RJC Code of Practices, we
remain committed to providing special jewellery pieces worthy of
celebrating love. We continue to explore new materials, innovative
processes and the latest technologies that are shaping and evolving
the jewellery industry towards a more sustainable and ethically
responsible future.
A UNITED EFFORT
As we embark on the next phase of our
sustainability journey, we are guided by, and
aligned with the UN Sustainable Development
Goals (SDG’s); 17 global goals adopted by
the UN to assist in transforming our world by
2030. The changes implemented at Michael
Hill will contribute positive change towards this
important global agenda.
“I would like to congratulate Michael Hill on their certification.
We work in an industry of beauty and emotions - connecting
hearts and minds. Consumers always expect trust when they
buy a piece of jewellery to celebrate a significant moment in
their lives. In this era of trust and resilience, now more than
ever there is a need for more companies to inspire, take action
and commit towards a journey of purpose, and continuous
improvement. RJC supports its members in an integrated
approach of best management practices to sustainability. We
welcome their leadership and commitment towards responsible
business practices."
Iris Van der Veken
Executive Director
Responsible Jewellery Council
Aligned with Industry Experts
CERTIFIED MEMBER
0000 1557
THIS PAGE & OPPOSITE PAGE:
MORGANITE AND DIAMOND RINGS
FROM THE SIR MICHAEL HILL
DESIGNER BRIDAL COLLECTION

18
Love our Communities
SUPPLY CHAIN TRANSPARENCY
From the sourcing of our diamonds, precious stones
and precious metals, to our retail stores, Michael Hill
respects and promotes human rights at every step of
our supply chain. We work closely with suppliers to
remain at the forefront of innovation and technology,
continually advancing supply chain transparency. Our
customers can be assured they are purchasing special
jewellery pieces that have been ethically sourced.
In FY20, Michael Hill launched a web-based
platform to collect supplier data and identify modern
slavery risks and solutions in our supply chain. The
platform assists with gathering information regarding
the operational and procurement practices of direct
suppliers via an online Ethical Supply Chain Assessment,
and the results then drive more detailed audit processes.
1. Michael Hill has engaged its top 67 suppliers
(wholesale, manufacturing and packaging suppliers),
representing 60% of total supplier spend, to complete
the assessment.
2. As at 30 June 2021, of the 67 top suppliers, 93% have
completed assessments.

3. Where suppliers are already Responsible Jewellery
Council (RJC) accredited, they complete a simplified
version of the assessment, whilst non-RJC suppliers
(currently 31) complete the full assessment, which
includes information on:
• Site information • Responsible procurement
• Social • Environment and sustainability

• Business ethics • Business performance
• Health and safety
This provides a view in line with key RJC requirements.
4. Bureau Veritas (testing, inspection and certification
provider) are performing independent audits and
verification over the completed assessments.
5.
Targeted reviews are mandated in cases where more
clarity is required or there are concerns identified by
the assessment.
When renewing future supplier contracts, we place
significant weighting on whether a company’s ethical
and environmental standards are aligned with ours.
100% of diamonds used in our products are conflict
free, and we continue to explore, innovate with, and
invest in other sustainable raw materials. Our supplier
transparency platform process is outlined below.
In FY22 Michael Hill will ensure more of our existing
suppliers complete the assessment as part of contract
renewals, as well as any new suppliers being considered
as part of their onboarding process. Results of desktop
reviews will be risk assessed and decisions made
around the future supplier relationship.
Completed
assessments
Incomplete
assessments
MHJ follows up
directly with supplier
If assessment is not
complete within six months,
MHJ will end engagement
with supplier
Supplier flagged
for review
Supplier not
flagged for review
No further action required.
Suppliers will be required
to redo assessments every
two years.
Third party assurance
provider performs review of
high risk areas and presents
findings to MHJ
MHJ assesses risk of continuing
supplier engagement
End contact with
supplier
Work with supplier
on a remediation plan
If remediation is
not completed within
acceptable time
frames, end contact
with supplier
Existing and new suppliers
on-boarded to Supplier
Trnsparency Platform

19
OUR FIRST MODERN SLAVERY STATEMENT
In March 2021 we released our first Modern Slavery
Statement covering the financial year ending 30 June
2020, showing the steps we are taking to identify and
address the risks of modern slavery in our supply chain.
This statement reflects our wider commitment to sus
-
tainability and proposes a new lens through which we
see our busines
s operat
e; and a copy can be found on
our Investor Relations Centre website at
investor.michaelhill.com
Our Modern Slavery Statement identified supplier
due diligence as a key component for managing
modern slavery risks. The supply chain transparency
platform outlined above assists with gathering
necessary information on the operational and
procurement practices of direct suppliers via an online
Ethical Supply Chain Assessment, and the results then

drive more detailed audit processes.
In line with the commitments made in the 2020
Modern Slavery Statement, the following is underway to
improve and streamline supplier management:
•
Review of new supplier onboarding process
• Review of existing supplier contracts
•
Revie
w our Code of Ethics and Code of Conduct for
Suppliers Policy.
Our focus areas for the coming years are to:
•
Onboard more suppliers ont
o the supply chain
transparency platform
•
Revise the selection process for new suppliers to
include completion of a more detailed questionnaire
around how they manage modern slavery risks, visits
to their facilities to understand working conditions,
and appropriate revisions to the Code of Conduct for
Suppliers Policy (if required)
•

Restart, when travel restrictions allow, the regularity of
supplier visits to production facilities
• Review substantial supplier contracts.
Our 2021 Modern Slavery Statement covering the
financial year ending 30 June 2021 will be released in
the coming months.
KEEPING LOCAL INDUSTRY ALIVE
We work in partnership with all our suppliers to ensure
only high-quality jewellery is offered at Michael Hill, with
local craftsmanship being one of the founding pillars in
the heritage of our business. Michael Hill first established
an in-house workshop in the 1980s, and we are one of
the only jewellers to maintain a retail-led workshop to
this day, with a dedicated team of master craftsmen,
diamond specialists and quality control professionals.
Made in Australia
From the initial design and 3D-printed resin mould, to
gold casting, diamond sorting and setting, polishing and
engraving – our beautiful Made in Australia pieces come
to life in our in-house workshop in Brisbane, Australia.
Where possible, we believe it is important for
our business model and local communities to keep
manufacturing industries alive in the markets we operate,
to support local jobs and protect our supply chain
from disruption. Having our in-house workshop located
alongside our head office and distribution centre ensures
our manufacturing team are a central, focal point of our
organisation as we continue to increase our focus on,
and delivery of, quality product from this area.
69% of all solitaire engagement rings sold
were made in Australia
Made in Australia product made up
14% of sales
16,796 individual products
were made in our Australian manufacturing facility
30 full time team members in our
Australian manufacturing facility
Made in New Zealand
Several of our chain necklaces and bracelets, as well as
our most-loved round and oval solid bangles, are crafted
for quality and beauty by our New Zealand supplier, Morris
and Watson. Morris and Watson are a fourth-generation
family business, dedicated to providing beautiful jewellery
with quality and fineness. Morris and Watson are also a
member of the RJC.

SAVE THE CHILDREN
AND MICHAEL HILL
HELPING SAVE THE CHILDREN
THROUGH COVID-19
Throughout the 2020 festive period
we celebrated with our
Ellie-Mae
Sparkle
initiative - a children’s book
(with illustrations by Sir Michael
Hill and words by award-winning
author, Emma Mactaggart) sold in
store to raise funds towards Save
the
Children’s COVID-19 response
efforts. Thanks to the sales of
Ellie-Mae’s Sparkle, we successfully raised over
$30,000 for Save the Children, supporting disadvantaged
children across our
Australian, Canadian and New Zealand communities.
"Thanks to the generous support of Michael Hill, we were able to
provide rapid response efforts to help protect and support communities
challenged by COVID-19, keeping them healthy and safe during this
heightened period of isolation”
David Faulmann,
Save The Children Corporate Partnerships Manager
EMPOWERING WOMEN GLOBALLY WITH DRESS FOR SUCCESS
Aligning with International Women’s Day in March 2021, Michael Hill partnered
with global charity, Dress for Success; a non-profit organisation that empowers
women to achieve economic independence. Dress for Success works with
women to help them achieve economic independence by providing a network of
support, professional attire, and the development tools to help women thrive in
work and in life.
We created a sterling silver pair of earrings with Michael Hill donating more
than 50% of the gross sales proceeds to Dress for Success. With incredible
engagement from our team and customers across all markets, we raised over
$14,500 to help empower women globally.

21
Love our Team
TEAM ENGAGEMENT
We are committed to creating outstanding employment
and workplace experiences for our team. Our 2021 Group

team engagement survey result saw a significant improvement in employee
engagement across the Company.
Our annual engagement survey indicated that 85% of our team members
are engaged, meaning they see us as a great place to work and feel a sense of
personal accomplishment in their roles at Michael Hill. This places us 13% above
the Qualtrics Global Retail Industry benchmark. Each market we operate in
experienced engagement results that were higher than in previous years and are
well above global and country retail and all company averages. With 86% of our
workforce having their say and completing the survey we are confident that these
results are reflective of our teams’ experiences.
We know that a highly engaged workforce correlates with strong performance,
better health and safety outcomes and better employee retention and we are seeing
this in our results. We empower every leader to improve team engagement with
real-time insights that show them exactly where to focus their efforts to increase
performance. The impact of our leaders is great. We are proud of these outstanding
results as it is our people that will drive the success of our company into the future.
OUR DIVERSE AND INCLUSIVE TEAM
At Michael Hill, we believe diversity of background, life experience and perspective
drives innovation, performance, and engagement and we strive to create a
workplace that is inclusive for all. We want our workplace to be a safe, supportive
environment where all team members feel valued and appreciated, and can be
their brilliant selves, all the time.
To do this well, we need to know more about our workforce. That’s why we’ve
embraced a refreshed and accelerated approach to diversity and inclusion. We’re
building a culture where difference is valued.
Together, we will continue to build an inclusive culture that encourages, supports,
and celebrates the diverse voices of our team members; a culture which fuels
innovation, and creates closer connections with our customers and our communities.
WOMEN IN THE WORKPLACE
Women play a significant role in our success and we are proud to offer opportunity,
development and progression for women in the workforce of all ages and life
stages. Gender equality is monitored annually at all levels of the organisation and
we are committed to an environment that is free from discrimination and enables
women to realise their full potential.
•
Half of the Michael Hill Executive Leadership Team are female (three women and
three men)
• 1/3 of our Board of Directors are women
• 60% of leadership positions globally are held by women
•
The Michael Hill workforce is comprised of individuals of various ages and life stages
• Women represent 88% of our global workforce.
CONSISTENTLY LISTENING, LEARNING, AND IMPROVING
• We’ve introduced a comprehensive comparative analysis framework to enable
deeper understanding of quantitative and qualitative diversity and inclusion
metrics across Michael Hill. This includes measuring, tracking, and reporting
annually on markers such as gender distribution, gender wage gap, generational
spread and employee engagement. This data is used to inform our strategy and

areas of focus for the future.
• We are committed to the ongoing development of our people, particularly in
relation to Diversity & Inclusion (D&I). In 2020 we delivered training to our hiring
Full time employees
by gender
Part time employees
by gender
Casual employees
by gender
Total employees
by region
AU
NZ
CA
Education, training
and progression
Employees that received regular
performance and career development
review during the year
~90%
Total employees
by age
30–50
<30
>50
Total employees
by gender
OUR TEAM
AS AT 27 JUNE 2021
THIS PAGE: DIAMOND LOVE NECKLACES
DESIGNED BY LADY CHRISTINE HILL

22
We care.
We create outstanding
experiences.
We are professional.
We are inclusive
& diverse.

23
managers which focused on why a diverse workforce
is important to achieving our goals and how inclusive
hiring practices that are based on capability and
merit lead to increased team effectiveness and
performance. We also developed an Inclusive
Leadership Guide for leaders, specifically designed
to raise awareness and recognise and address
unconscious bias. Over the next year we will introduce
unconscious bias training to our online learning
portfolio to further foster an environment of inclusive
practices and mindsets.
•
A voluntar
y, confidential diversity questionnaire was
developed and deployed to enable a more robust
understanding of the workforce demographics of our
team members such as their cultural background,
gender identity, ability, education and much
more. This initiative will be enhanced next year
by introducing specific pulse surveys through our
listening program provider.
•
Michael Hill’s new Diversity & Inclusion Committee
was formed in 2020 with a diverse representation
of team members from our global workforce. The
Committee is dedicated to and passionate about
pushing our Diversity & Inclusion Strategy forward
in a variety of ways, including a calendar of events
to celebrate the diversity within our organisation
and communities, through awareness raising and
educational initiatives.
INTERNAL CAMPAIGNS TO CELEBRATE OUR TEAM
At Michael Hill we are committed to celebrating and
honouring our diverse workforce. Throughout the year, our
Diversity & Inclusion Committee run internal campaigns
focussed on Diversity & Inclusion education and
awareness, fostering a collective commitment towards a
more inclusive environment for all team members.
Celebrating International Pride month
In June 2021 we celebrated International Pride month
with all team members. Throughout the month we
reaffirmed our solidarity with the Pride community,
highlighted the importance of inclusive language,
provided guidance on how to be an ally and shared
resources for any team member that may require
relevant support. We also hosted voluntary lunch and
learn sessions celebrating Pride culture.
International Women’s Day
In March we embraced the 2021 #choosetochallenge
theme. We encouraged our team members globally to
pledge how they would challenge for change and gender
equality through meaningful commitments, big or small,
that they could implement in their personal or professional
lives. We also celebrated some of our talented female
team members who are forces in their field.
HELPING OUR TEAM STAY HEALTHY, SAFE
AND SECURE
At Michael Hill, we are accountable for creating and
maintaining healthy, safe and secure work environments
for our team members, customers and visitors who
interact with our business. We know that our success
depends on our people, and we are committed to
ensuring the physical and mental health, safety and
security of everyone who comes to work, or visits our
stores. The unpredictable and ever-changing challenges
presented by the COVID-19 pandemic remain a priority.
Despite the ongoing disruption and threat caused by
COVID-19, we were still able to complete a range of
health, safety and security initiatives during the year.
Health, Safety and Security Initiatives delivered in FY21
• Completed an Emergency Response Management
Plan rollout – to ensure consistency in meeting
regulatory requirements and ensure our team
members are prepared to respond appropriately in
the event of an emergency.
•
Renew
ed and updated first aid requirements across
the Group.
• Conducted a six-week health and wellbeing challenge
– to assist in maintaining health and wellbeing
awareness across the busiest time of the year
(November and December).
•
Provide a flu v
accination program to team members
in
Australia and New Zealand - to assist illness prevention.
• Completed task-based activity risk assessments for
manufacturing and safe work practices – to ensure
consistent and well-developed safety standards.
•
Improvements across all statistical indicators
including injury and incident frequency rates.
• Our employee as
sistance program continues to offer
all team members up to six free counselling sessions
across a range of different service offerings.
• Reviewed and implemented improvements in our
store security framework, enabling us to gain better
insights into our security portfolio, and to ensure
we have up to date and effective security solutions
across our business.
RINGS FROM THE EVERMORE COLLECTION

24
...as part of our business
practices and supply
arrangements we ensure that
100% of our diamonds are
conflict free

25
OUR PRODUCT EVOLUTION
At Michael Hill, we are working
with the RJC, our suppliers and
other industry partners to ensure
we deliver ethical products to
the very highest quality standard
possible. We are constantly
investigating the materials we
use to be less impactful on our
environment, whilst continuing to
provide the quality of jewellery that
our customers trust us to create.
Our diamonds are purchased
from legitimate sources in
accordance with the Kimberley
Process Certification Scheme
(KPCS), as supported by the
World Diamond Council System
of Warranties. The KPCS is a joint
government, international diamond
industry and civil society initiative
to prevent conflict diamonds from
entering the supply chain.
As part of our business
practices and supply arrangements,
we ensure that 100% of our
diamonds are conflict free.
Other product initiatives we are
planning to rollout over the next few
years, reflecting our commitment to
progress toward a circular economy
in our category include:
• Using recycled gold and silver
to craft new products
•
Ensuring all our vendors
source their gold from LBMA
accredited refiners
• Introducing traceable diamond
pr
ograms
•
Using repurposed diamonds to
cr
aft new products.
We will continue to stay at the
forefront of sustainable product
evolution in our category and will
consistently strive to bring more
sustainable product solutions to
our customers.
Love our Environment & Product
Project “Paper Cut”
reduced paper use across entire network,
including printer consolidation, scan/
login; e-receipts instore; automated
invoice program; digital retail calendar
and Regional Manager online hub.
Our expansion in Canada
reducing international freight lanes by establishing a new in country
distribution centre, and optimising local trade routes, reducing our
existing carbon footprint through a local approach.
Heavily reduced printed
marketing material:
226 tonnes of
printed collateral reduced
in FY21.
LED lights
introduced to 78 stores
(1950 light fittings)
reducing electricity consumption of halogen
lights; and a commitment to deliver LED
lights to our entire store network by 2025.
Removed single use plastic in manufacturing:
installation of a distilled water filtration system in our manufacturing
facility to replace plastic bottled water removing environmental impacts
of 240 x 20L plastic bottles going to landfill annually.
Cloud based storage
and automated power down, reducing carbon footprint and energy use.
Sustainable
Screen Disposal
Program:
over one tonne of out-of-date
hardware diverted from landfill.

Developing new
sustainable product &
eCommerce packaging

to reduce single use plastic waste in over
300,000 orders annually.
Use of
sustainable
paper:
all printed catalogues in
PEFC certified recycled
& recyclable paper.
EVOLVING OUR FOUNDATIONS FOR THE BENEFIT OF THE PLANET
During the year we have proudly implemented several changes to our
business operations which have had a positive environmental impact and
reduced operating costs.
OPPOSITE PAGE:
MODEL WEARS AN ENGAGEMENT RING FROM THE
MICHAEL HILL DESIGNER BRIDAL COLLECTION

26
FROM LEFT: ANDREW LOWE, AMY SZNICER ,
DANIEL BRACKEN, MATT KEAYS, JOANNE MATTHEWS,
JO FEENEY, KEITH LOUIE
Executive Leadership Team
Daniel Bracken
MANAGING DIRECTOR & CHIEF
EXECUTIVE OFFICER
Daniel has more than 25
years’ experience managing
some of the world’s most
iconic brands. He has an
extensive background in
retailing, fashion, and brand
development in Australia and
international markets, as a
Chief Executive Officer and
in senior executive positions
across strategy, marketing,
merchandise, product design
and digital and customer
engagement strategies.
Prior to joining Michael
Hill as CEO in November 2018,
Daniel was CEO at Specialty
Fashion Group and previously
held positions as the Group
Vice President, Strategy for
Burberry London, as Deputy
CEO and Chief Merchandise &
Customer Officer of Myer, and
as CEO of The Apparel Group.
Andrew Lowe
CHIEF FINANCIAL OFFICER &
COMPANY SECRETARY
Andrew joined Michael
Hill in December 2017 as
Chief Financial Officer, and
later assumed the role of
Company Secretary. He holds
a Bachelor of Commerce,
a Bachelor of Laws and a
Masters of Applied Finance,
and is a qualified Chartered
Accountant and a Chartered
Taxation Adviser of the
Taxation Institute of Australia.
Andrew has extensive
experience in finance and
leadership roles across a
range of listed corporate
groups with Australian and
offshore operations. This
includes as Head of Tax,
Shared Services and Finance
Partnering at Australia’s
largest rail-based freight
operator and ASX100 firm,
Aurizon. Previously, he was
Deputy CFO and Head of
Tax at Cleanaway Waste
Management, and spent a
decade with global mining
company, Anglo American.
During his time at
Speciality Fashion Group,
Daniel led the company’s
corporate restructure and the
successful divestment of a
number of brands, returning
the company to profitability.
At Myer, he oversaw
merchandise buying, design,
sourcing, and manufacturing,
and led the Myer brand and
customer experience strategy.
During his tenure, the Apparel
Group owned leading fashion
brands Sportscraft, Saba,
Willow, and JAG.
His international
experience includes more than
15 years at Burberry London
in the United Kingdom, where
he was a key member of the
leadership team involved
in their turnaround into an
iconic global brand. He
performed a range of roles
at Burberry including Vice
President – Strategy (Group),
Head of Merchandising &
Production (Ready to Wear),
and Commercial & Operations
Director (Menswear).
Joanne Matthews
CHIEF PEOPLE OFFICER
Joanne joined Michael Hill in
January 2019 with extensive
experience in change leadership,
and talent management and
development. This experience was
gained across 14 years in senior
human resource leadership roles,
including as Divisional Human
Resources Manager (Leisure) for
Super Retail Group.
Joanne has also worked as the
Executive General Manager, Human
Resources for MAX Solutions
Pty Ltd, a national organisation
that delivers health, training and
humanitarian solutions for Federal
and State Governments, and
prior to this she worked in retail
operations with Woolworths.
With a large workforce in nearly
300 stores across Australia, New
Zealand and Canada, Joanne’s
experience is well aligned to deliver
on the Company’s core talent
priorities of team engagement and
attracting, developing, rewarding
and retaining top quality people at
Michael Hill.
Joanne holds an MBA and
Bachelor of Business in Human
Resources and Marketing.

27
Matt Keays
CHIEF INFORMATION OFFICER
Matt joined Michael Hill in
June 2015, bringing with
him extensive international
IT experience in the retail
space. Prior to joining the
company, Matt led the global
IT strategy for Forever New
as their General Manager
Information Technology, and
prior to that worked as Chief
Information Officer for Super
Amart where his final project
was successfully leading a
full-scale disaster recovery
process after the Queensland
floods in 2011. He also worked
for leading national footwear
and apparel company,
Colorado Group after enjoying
his long retail apprenticeship
with 11 years at Country Road,
where he worked initially as
a Finance Accountant, and
also gained solid shop floor
experience during his tenure.
Matt has strong technical
skills and a track record
of developing an effective
team focused on business
alignment. Matt’s career has
seen him lead significant
technology and infrastructure
programs, covering Microsoft
Dynamics, Infor, Oracle and
JDE. He has helped retail
businesses implement and
embrace data warehousing
with his first Microsoft based
implementation as far back
as 2004. The Michael Hill
advanced data warehouse
went live in 2016 and his team
continually evolve our data
platforms to align with the
strategic shifts across the
business.
Keith Louie
CHIEF DIGITAL OFFICER
Keith joined Michael Hill in
August 2021, as our first Chief
Digital Officer. He brings more
than 30 years’ experience in
consumer goods production,
wholesale, retail and advisory
across Europe and Australasia,
and deep experience of
eCommerce leadership and
digital transformation over the
last 15 years.
Keith led online shopping
for Coles Supermarkets for six
years during its transforma-
tion under the Wesfarmers
group, rebuilding the customer
experience and operating
model. Subsequently, he led
online retail for Target and
advised other Wesfarmers
brands on eCommerce, before
becoming CEO of the national
Aussie Farmers Group, a
privately-owned fresh food
production, wholesale, online
retail, and logistics group.
More recently, Keith has
advised various listed, private
and Government entities
on eCommerce and digital
transformation, building on
his earlier experience as a
Director and Associate Partner
of management consulting firm

PwC, and with IBM’s Global
Business Solutions team.
Keith is known for
innovative ideas, thinking
strategically, applying a
rigorous commercial lens, and
taking action to transform
businesses digitally. In doing so,
he inspires the teams he leads
to deliver change and improve
customer experiences.
Amy Sznicer
CHIEF RETAIL OFFICER
Amy has 24 years’ leadership
experience, across retail and
beauty industries, having
worked with prominent retail
brands such as Witchery, GAP,
Bras n Things, Guess Jeans and
Aldo. She has led the roll out
of over 200 new retail stores
in Australia, New Zealand and
Singapore and was named
2006 Australian Young Business
Woman of the Year at the Telstra
Business Women’s Awards.
Prior to joining Michael
Hill as Chief Retail Officer in
January 2021, Amy owned
and operated a New Zealand
blow dry bar/tea house salon
business ‘Dry & Tea’ since 2014.
During Amy’s leadership the
business expanded to Australia
and continued its status as a
multi-award winning category
leader. Amy’s extensive career
in specialty fashion retailing
along with her experience as
a business owner has built
a broad skill set that goes
beyond store operations.
Amy is extremely
passionate about dynamic
leadership, a strong company
culture, deep retail foundations
and driving high performance
in an ever-changing retail
landscape. These qualities
enable her to consistently
deliver the highest standard of
customer service and ultimately,
strong business performance.
Jo Feeney
CHIEF MARKETING OFFICER
Jo joined Michael Hill in March
2021 as Chief Marketing
Officer to lead the revitalisation
and growth of the Company’s
brand, delivering end to end
marketing strategies in an
omni-channel environment.
Jo is responsible for shaping
the Company’s messaging,
delivering an outstanding
experience to the Michael Hill
customer across both digital and
traditional marketing channels
and leading the vision for a world
class loyalty program.
Jo brings with her over
20 years’ experience in both
local and global organisations
(including Woolworths, Telstra,
Foxtel and McDonald’s),
specialising in strategic
brand building, end to end
marketing communications
and driving key customer
growth strategies across
channels. In her most recent
role as Director of Marketing
at McDonald’s Australia, she
was responsible for marketing,
brand and media strategies
and driving commercial growth
through innovation and re-
imagination of the brand.
Jo is also a recognised
leader in creativity - winning
multiple awards both locally and
internationally. She brings a fresh
approach to driving the future
growth of the brand through a
lens of commercial creativity.

Michael Hill is gaining
traction, as it continues
to evolve into a modern,
differentiated, omni-channel
jewellery brand

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 29
Directors' Report
The Directors present their report on the consolidated
entity (referred to hereafter as the ‘Group’) consisting
of Michael Hill International Limited ACN 610 937 598
(‘Michael Hill International’ or the ‘Company’) and all
controlled subsidiaries for the year ended 27 June 2021.
Principal activities
The Group operates predominately in the retail sale of
jewellery and related services sector in Australia, New
Zealand and Canada.
There were no significant changes in the nature of
the Group’s activities during the year.
Dividends
Dividends paid to members during the financial year
were as follows:
2021 2020
$000 $000
No final dividend was declared for
the year ended 28 June 2020
(2019:
au1.5¢ per fully paid share). - 5,817
Interim dividend for the year ended
27 June 2021 of
au1.5¢ (2020: au1.5¢)
per fully paid share
paid on 26 March 2021
(2020: 29 January 2021).
5,816 5,817
The Directors have declared
the payment of a final dividend
of
au3.0¢ per fully paid ordinary
share (2020: no final dividend
declared). The final dividend
will be unfranked for Australian
shareholders and fully imputed
for New Zealand shareholders.
The aggregate amount of the
proposed dividend expected to be
paid on 24 September 2021 out of

retained earnings, but not
recognsied a liability at year end, is: 11,644 -
Likely developments and
expected results of operations
Information on likely developments in the Group’s
operations and the expected results of operations have
been included in the Operational Review and Strategic
Update sections of this report.
Review of operations
In Australian dollars, the Group has reported operating
revenue of $556.5m (2020: $492.1m) for the 2021 financial
year, producing a net profit after tax (NPAT) of $45.3m
(2020: $3.1m). The Group reported EBIT* of $72.4m for
the year ended 27 June 2021 (2020: $14.1m) an increase
of $58.3m, largely driven by a lift in gross profit of $50.7m
to
$348.9m (2020: $298.2m). Comparable EBIT*
increased to $56.6m (2020: loss of $5.2m).
*
EBIT and Comparable EBIT are non-IFRS information and
are unaudited. Please refer to non-IFRS information section
in this report for an explanation of non-IFRS information
and a reconciliation of EBIT and Comparable EBIT.
The Group achieved the following key outcomes for the
2021 financial year:
Key Financial Results
• Statutor
y net profit after tax of $45.3m (2020: $3.1m).
• EBIT increased to $72.4m (2020: $14.1m).
• Group operating r
evenue increased 13.1% to $556.5m
(2020: $492.1m), with 10,447 lost store trading days.
• Group same stor
e sales were up 8.6% for the year,
with H1 +6.3% and H2 +13.2%.
• Group gross margin increased by 210bps to 62.7%
(2020: 60.6%), underpinned by our strategic initiatives.
• Maintained target inventory levels at $171.2m
(2020: $178.7m).
•
Strong balance sheet with a healthy net cash position
of $72.4m (2020: $0.5m).
•

Final dividend of au3.0¢ per share declared, resulting in
total dividends for the year of
au4.5¢ per share.
Operational Performance
• Digital sales increased by 53.4% to a record $34.8m,
representing 6.3% of total sales, up from 5.0% last year.
• Loyalty strategy continues to deliver – Brilliance
by Michael Hill now over 800,000 members
(2020: ~200,000).
• Product enhancements saw our unique to Michael
Hill jewellery, branded collection sales climb to 42.1%
of total sales for the full year (2020: 37.3%).
• Re-engineering our global supply chain – Canadian
3PL distribution centre to open in advance of
Christmas trading.
•

Extensive temporary store closures in Eastern Canada,
together with sporadic closures across Australia,
culminating in 10,447 lost trading days for the year.
• One new store opened and six under-
performing stores were closed during the
year, giving a network total of 285 stores
across all markets (2020: 290).
EARRINGS FROM THE KNOTS COLLECTION,
DESIGNED BY LADY CHRISTINE HILL

Following the FY20 global store network shutdown,
the Group delivered significant same store sales growth
across all four quarters of FY21. For the year, the Group
delivered same store sales growth of +8.6% and gross
margin increased by 210 bps to 62.7% for the Group.
These results demonstrate the growth initiatives
underpinning the seven strategic pillars are firmly
embedded in the Group. These initiatives have created
a sustainable platform for sales growth and margin
expansion through the success of our loyalty program,
continued penetration of our online business, acceleration
of retail fundamentals, and product evolution.
As a result of Government mandated lockdowns,
the Michael Hill global store network suffered 10,447
lost store trading days. Despite the impact of disrupted
trading conditions and the reduced global store network,
total revenue grew by 13.1% to $556.5m (2020: $492.1m)
as the Group continues to elevate, modernise the brand
and transform the customer journey.
The Group’s online business exceeded expectations
in outperforming 2020, resulting in another year of record
digital sales of $34.8m and now represents 6.3% of total
sales. Website traffic increased by 35.3% against prior
year, with customers continuing to utilise our enhanced
online platform. During the year, the Group launched "ship
from store", "click and reserve" and in-store appointment
capabilities, and enhanced its "virtual selling" offering to
expand the Group’s omni-channel ecosystem.
The Group continues to prioritise product evolution
and creating uniquely Michael Hill jewellery, with branded
collections now representing 42.1% of total sales for the year
(2020: 37.3%). Our merchandise team have been refining
and improving our product offering, ranging and assortment
whilst ensuring our inventory levels are maintained. This saw
delivery of the targeted inventory range, with a holding
of $171.2m (2020: $178.7m) at year end.
The Group has strengthened its balance sheet, with
a year-end net cash position of $72.4m (FY20: $0.5m)
and nil debt. During the year, the Group also entered
into a new financing facility, jointly funded by ANZ and
HSBC. This new $70m facility is currently undrawn, with
a term to February 2024. Furthermore, the Group has
strategically reviewed the in-house Canadian credit
program to de-risk the balance sheet – the sale of the
credit book and partnering with a new credit provider is
nearing conclusion.
Sales from the Group’s Professional Care Plan (PCP)
increased to $30.3m (2020: $24.0m) with an amount of
$27.3m (2020: $27.5m) recognised as revenue for the
full year. At 27 June 2021, a deferred amount of $76.6m
remained on the balance sheet (2020: $73.8m).
The Group opened one new store in Canada and
closed six under-performing stores, resulting in 285
stores at 27 June 2021 (2020: 290).
Impact of COVID-19
The Group continues to monitor the situation throughout
the geographies in which it operates. Uncertainty remains
as to the future impact of COVID-19 and the ability to
operate bricks-and-mortar stores during this period.
The Group continues to adhere to local and national
government guidance in relation to any future impacts
which would temporarily close stores.
During the period, the Group received
financial support and assistance from
its suppliers, landlords, and local
governments. A number of landlords
and suppliers provided extended
payment terms. These agreements
have concluded with no
material amounts outstanding.
Additionally, landlords have
provided support in the form
of rental abatements.
30 MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT
OVAL DIAMOND RINGS FROM THE FENIX CREATED
DIAMONDS FOR MICHAEL HILL COLLECTION

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 31
Segment results
The operational segments below reflect the performance of the Group's retail operations in each geographic segment.
The segments include trading activity from our online channels presence and our Canadian in-house credit function.
The segments exclude revenue and expenses that do not relate directly to the relevant retail segments, and are treated
as unallocated. These predominately relate to corporate costs and Australian based support costs, but also include the
manufacturing activities, warehouse and distribution, interest and company tax.
The results below are expressed in local currency.
Michael Hill Australia
OPERATING RESULTS (AU $000) 2021 2020 2019 2018 2017
Revenue 312,264 266,610 313,587 325,709 321,981
Gross margin
194,149 161,030 194,052 206,303 201,707
Gros
s margin as a % of revenue
62.2% 60.4% 61.9% 63.3% 62.6%
EBIT
62,889 27,410 32,917 48,621 51,688
As
a % of revenue
20.1% 10.3% 10.5% 14.9% 16.1%
In Australia, segment revenue increased by 17.1% to $312.3m (2020: $266.6m) and same store sales increased by 13.0%
for the year. This result is a credit to the segment, as it saw 3,458 lost store trading days due to various government
mandated store closures across the country.
Gross margin for the year was 62.2% (2020: 60.4%), which is a significant improvement on both FY19 and FY20.
At year end, of the 150 Australian stores (2020: 155), 30 NSW and two NT stores were temporarily closed. Currently,
46 NSW, 27 VIC, and four ACT are temporarily closed.
Five underperforming stores permanently closed during the period, resulting in 150 stores at 27 June 2021.
Michael Hill New Zealand
OPERATING RESULTS (NZ $000) 2021 2020 2019 2018 2017
Revenue 127,067 106,696 120,064 125,239 121,970
Gross margin
78,771 63,641 73,011 77,673 75,204
Gross margin as a % of revenue 62.0% 59.6% 60.8% 62.0% 61.7%
EBIT
35,451 21,067 24,125 27,800 27,836
As a % of revenue 27.9% 19.7% 20.1% 22.2% 22.8%
In New Z
ealand, segment revenue increased by 19.1% to NZ$127.1m (2020: NZ$106.7m) and same store sales increased
by 7.1% for the year. This result represents significant outperformance against FY17, FY18 and FY19. It should also be
noted that during the year, 16 Auckland stores were required to temporarily close on three separate occasions resulting
in 464 lost store trading days.
Gross margin for the year was 62.0% (FY20: 59.6%), resulting in the strongest margin in the last five years.
There were 49 stores trading at 27 June 2021. Currently, all New Zealand stores are temporarily closed, due to government
mandated lockdowns.
Michael Hill Canada
OPERATING RESULTS (CA $000) 2021 2020 2019 2018 2017
Revenue 118,445 110,799 133,146 130,762 112,721
Gross margin 72,643 63,991 80,726 81,576 69,078
Gross margin as a % of revenue
61.3% 57.8% 60.6% 62.4% 61.3%
EBIT 15,074 (2,412) 9,797 14,605 12,386
As
a % of revenue
12.7% (2.2)% 7.4% 11.2% 11.0%
In Canada, segment re
venue increased by 6.9% to CA$118.4m (2020: CA$110.8m) and same store sales increased by
6.8% for the year. This segment was heavily impacted by temporary store closures in Eastern Canada, with 6,525 lost
store trading days for the year. By early July, all 86 stores were open and have remained trading, with our strategic focus
now returning to the productivity opportunity in the market.
Gross margin for the year was 61.3% (2020: 57.8%), which is a significant improvement on both FY19 and FY20.
One store was opened in Canada during the period in Avalon, Newfoundland.
One underperforming store permanently closed during the period, resulting in 86 stores at 27 June 2021.

32 MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT
While the Brilliance by Michael Hill
loyalty program is only 18 months old,
membership has already grown
to over 800,000

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 33
Cash, cash flow and dividends
Net operating cash inflows of $143.5m increased from
prior year of $76.1m. This is largely due to improvement
of receipts from customers through trade and working
capital management.
Through further disciplined inventory and working
capital management, the Group remains in a resilient
financial position with $72.4m in net cash (2020: $0.5m)
to continue to invest in improvements to its systems,
infrastructure, and capabilities.
Dividends
The Board has previously stated its intention to restore
dividend payments to historic levels as the pandemic
recovery becomes more certain.
After taking into consideration sales and margin
performance, the strength of the balance sheet, and while
also recognising the risk of ongoing trading disruption, the
Board has decided to declare a final dividend of
au3.0¢ per
share unfranked, fully imputed with conduit foreign income.
This represents total dividends for the year of au4.5¢
per share and lays the foundation for a sustainable
dividend profile going forward, subject to the impacts of
ongoing trading disruptions.
Strategic update: emphasis
on growth and margin
The seven strategic pillars are underpinned by initiatives
that continue to deliver a transformation agenda focused
on sales growth and margin expansion, driving efficiencies
within the business, elevating the Michael Hill brand and
enabling a true omni-channel customer experience:
1 The elevation of the Michael Hill BRAND is gaining
traction, as it continues to evolve into a modern, differ-
entiated, omni-channel jewellery brand. Transitioning
our brand messaging from discount-led promotions
to quality and aspirational brand-led campaigns is key
to enticing a deeper customer base, generate higher
average transaction value (ATV) and margin growth.
2
DIGITAL is at the forefront of our transformation with
an emphasis on customer experience, product offering,
and fulfilment. Following another year of exceptional
growth, investment in our highest profit margin channel
continues to focus on incremental traffic, higher
conversion rates, and increased transaction value. Our
early foray into 3rd party digital channels has provided
the confidence to develop an integrated marketplace
solution that will be rolled out in the first half of FY22.
Looking further afield, we have identified opportunities
to explore new digital channels and markets.
3 With a portfolio of 285 stores across three countries,
bricks and mortar retail is at the core of the Michael
Hill business. Our
RETAIL FUNDAMENTALS strategy
is focused on driving increased sales, higher margins,
lower costs, and a modern, differentiated customer
experience, all underpinned by our new retail incentive
scheme. The key retail metrics of ATV, IPS and
conversion all increased in all markets in FY21 and will
continue to be a key area of focus.
4
The roll out of our new ERP platform in early FY21,
was the enabler for
OMNI-CHANNEL at Michael Hill.
Across the year, we successfully tested and trialled
“virtual selling”, “click and reserve”, and “ship from
store”. These initiatives will now be progressively rolled
out across our global network. Further connecting our
physical and digital businesses we will be launching
“click and collect” for Christmas 2021, delivering
incremental sales and enhanced customer experience.
5
While the Brilliance by Michael Hill LOYALTY PROGRAM
is only 18 months old, membership has already grown
to over 800,000. Acquisition has been our priority and
while this will continue to be a key focus, the business
is now turning its attention to the opportunities of
activation and retention. Our early insights already
provide confidence that the program is resonating with
our customers, delivering increased frequency, larger
baskets, and higher margins. Predicative analytics
and increased personalisation are being enabled by
investment in data analytics capability and artificial
intelligence to deliver further growth in the business.
6
PRODUCT EVOLUTION is the foundation of a
customer-led retail strategy, and is critical to continued
sales and margin growth. The business will maintain
its focus on uniquely Michael Hill branded product as
a key differentiator in the categories and markets in
which we operate. The business now delivers regular
product newness to excite our customers and increase
sales, with significantly lower inventory and higher
margins. Our Australian manufacturing division has
been reinvigorated delivering new bridal collections
and increased speed to market, underpinned by a
focus on craftsmanship, quality and local artisans and
still achieving improved margins.
7
The COST CONSCIOUS CULTURE exists across every
aspect of the Group. We continue to optimise the
global supply chain, improve the global store network,
and enhance our credit propositions globally. The new
Canadian 3PL facility will be fully operational for peak
Christmas trade - servicing both online
customers and stores, optimising
inventory, reducing logistics
costs, and enhancing overall
Canadian productivity and
customer experience.

34 MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT
STRATEGIES AND MITIGATION
The Group has a COVID-19 crisis management team focussed
on monitoring the status in key counties where it operates and
has supply chain impacts. Where possible, we seek to leverage
government financial assistance for our staff. Furthermore, we
are working closely with our supply chain to support suppliers
and ensure continuity of supply.
The Group is exploring and investing in better in-market strategies
as well as revamping its ranging and increasing emphasis on
sourcing and mix of product. This risk is further being addressed
with the establishment of a Canadian warehouse to reduce
shipping times within country and reduce the concentration of
product within our network.
The Group has invested in new technologies and sought to remove
vulnerable points of attack throughout its digital network. External
parties are brought in to boost our capabilities, including both
proactive and reactive responses to cyber attacks. Penetration
testing and disaster recovery planning are built into our operating
rhythm to further prepare and respond to attacks.
We are committed to improving and differentiating the brand
from our existing competitors to create a point of difference and
increase market share. This in itself helps mitigate the risk of
other competitors entering our key markets and taking material
market share.
The Group invests, via an in-house legal team, who are focused
on compliance in our three markets and by utilising external
legal firms for specialised legal advice when required. Any
new legislative requirements or rectification initiatives have
dedicated teams focussed on ensuring our compliance.
The Group continues to have an intense focus on digital channels
and initiatives to meet consumer demand. The Group is investing
in new omni-channel initiatives, including responding to key
disruptions of trading due to COVID-19.
Our focus is on the safety and security of our staff and we are
investing in initiatives and processes that improve the overall
security of our stores, and contribute to the safety of our staff.
We work with local law enforcement bodies and other external
parties to better the overall retail environment for our staff and
customers.
Risk management
The Board believe that a strong Corporate Governance framework will underpin the Group’s growth
and success. The Group regularly reviews its risk management framework and has identified the
following at risk areas and mitigating strategies:
RISK
Ongoing impacts from COVID-19
continue longer than expected
or become more intensive than
forecasted impacting customers,
suppliers and staff
Disruption to supply chain and
inefficiencies in replenishment
strategies
Increase in cyber attacks
disrupting operations and causing
financial distress
Risk of a disruptor or new
competition entering our
markets
Breach of regulation or law
in one of our jurisdictions in
an increasingly complex legal
compliance environment
Inability to adjust to the rapidly
changing consumer segment and
retail environment
Theft appeal of our product
increases during periods of
financial hardship and uncertainty.
THIS PAGE: PENDANT AND RING FROM THE KNOTS
COLLECTION, DESIGNED BY LADY CHRISTINE HILL

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 35
Non-IFRS Financial Information
This report contains certain non-IFRS financial measures of historical financial
performance. Non-IFRS financial measures are financial measures other than those
defined or specified under all relevant accounting standards. The measures therefore
may not be directly comparable with other companies' measures. Many of the measures
used are common practice in the industry in which the Group operates. Non-IFRS
financial information should be considered in addition to, and is not intended to be a
substitute for, or more important than, IFRS measures. The presentation of non-IFRS
measures is in line with Regulatory Guide 230 issued by Australian Securities and
Investments Commission (ASIC) to promote full and clear disclosure for investors and
other users of financial information, and minimise the possibility of those users being
misled by such information.
The measures are used by Management and Directors for the purpose of assessing
the financial performance of the Group and individual segments. The Directors also believe
that these non-IFRS measures assist in providing additional meaningful information on the
drivers of the business, performance and trends, as well as the position of the Group.
Non-IFRS financial measures are also used to enhance the comparability of information
between reporting periods by adjusting for non-recurring or controllable factors which
affect IFRS measures, to aid the user in understanding the Group's performance.
Consequently, non-IFRS measures are used by the Directors and Management for
performance analysis, planning, reporting and incentive setting. These measures are not
subject to audit.
The non-IFRS measures used in describing the business performance include:
•

Same store sales reflect sales through store and online channels on a comparable
trading day basis
• Earnings before interest, tax, depreciation and amortisation (EBITDA)
•
Earnings before interest and tax (EBIT)
• Comparable EBIT
• Significant item
CALCULATION OF COMPARABLE EBIT
Comparable EBIT has been calculated as follows:

2021 2020
$000 $000
Statutory EBIT 72,398 14,079
Add back costs relating to:
Employee restructure costs
- 2,170
Direct, incremental costs relating to COVID-19
- 1,755
Canadian cr
edit book revaluation
2,986 -
Les
s items relating to:

Government gr
ants received (AU, NZ, CA)
(14,593) (17,678)
Impact of AASB16
Leases (4,197) (5,551)
Comparable EBIT
56,594 (5,225)
Environmental regulations
The Group has determined that no particular or significant environmental regulations
apply to it.
THIS PAGE: PENDANTS FROM THE SPIRITS BAY, ENDLESS AND
KNOTS COLLECTIONS, DESIGNED BY LADY CHRISTINE HILL

36 MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT
Information on Directors
Sir Richard Michael Hill
K.N.Z.M.
Sir Michael is the founder of Michael Hill and
was appointed a Director of the Company on 9
June 2016, having served as Director of Michael
Hill’s listed entity since its initial listing in 1987.
He led the Group as Executive Chairman from
1987 until 2015. Sir Michael had 23 years of
jewellery retailing experience before establishing
Michael Hill in 1979, which then listed on the New
Zealand Stock Exchange in 1987. Sir Michael’s
visionary leadership has been the foundation
for the Company’s successful international
expansion. In 2008 he was recognised as Ernst
& Young’s ‘Entrepreneur of the Year’ and in 2011
was appointed a Knight Companion of the New
Zealand Order of Merit for services to business
and the arts. Sir Michael was appointed Founder
President of the New Zealand listed entity in
2015 in recognition of his special connection with
Michael Hill for over 35 years.
Sir Michael is not a director of any other listed
entities and has not had any former directorships
of listed entities in the last three years.
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
148,330,600 Ordinary Shares
Robert Fyfe
B.ENG, F.E.N.Z
Rob was appointed a Director of the Company on
9 June 2016 and has served as a Director of Michael
Hill’s listed entity since 6 January 2014. He was
appointed Chair of the Board in June 2021. Rob
served as CEO of Air New Zealand between 2005
and 2012, a period that saw a resurgence in Air New
Zealand to become one of the most recognised
and awarded airlines in the world and one of the
best performers in a tough industry. Prior to and
subsequent to his time at Air New Zealand, Rob has
gained extensive general management experience in
various retail businesses operating in New Zealand,
Australia and Great Britain, across sectors including
retail banking, telecommunications, pay television
and outdoor apparel. On New Year's Eve 2020, Rob
was appointed as a Companion of the New Zealand
Order of Merit for services to business and tourism.
Rob is also a Director of Air Canada and has not
had any former directorships of listed entities in the
last three years.
SPECIAL RESPONSIBILITIES
• Chair
• Non-Executive and Independent Director
• Member of Audit and Risk Management Committee
• Member of People Development and
Remuneration Committee
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
2,693,640 Ordinary Shares
FROM LEFT:
GARY SMITH, DANIEL BRACKEN,
EMMA HILL,
SIR MICHAEL HILL, JACQUELINE NAYLOR AND
ROBERT FYFE
Information on the Directors of Michael
Hill International Limited in office during
the financial year and until the date of
this report are set out below.

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 37
Emma Hill
B.COM, M.B.A.
Emma was appointed a Director of the
Company on 9 June 2016 and has served as
Director of Michael Hill’s listed entity since 22
February 2007. She served as Deputy Chair of
the Group from 2011 until 2015 when she was
appointed Chair. Emma stepped down from
the Chair role in June 2021. Emma has over
30 years’ experience with subsidiaries of the
Company, commencing on the shop floor in
Whangarei, New Zealand. She held a number
of management positions in the Australian
company before successfully leading the
expansion of the Group into Canada as Retail
General Manager in 2002. Emma holds a
Bachelor of Commerce degree and an MBA
from Bond University.
Emma is not a director of any other listed
entities and has not had any former directorships
of listed entities in the last three years.
SPECIAL RESPONSIBILITIES
• Non-Executive Director
• Chair of People Development and
Remuneration Committee
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
167,487,526 Ordinary Shares
Gary Smith
B.COM, F.C.A., F.A.I.C.D.
Gary was appointed a Director of the Company
upon incorporation on 24 February 2016 and has
served as Director of Michael Hill’s listed entity
since 2 November 2012. Gary has had extensive
Director experience. He is Chairman of Flight
Centre Travel Group Ltd, one of Australia’s top
100 public companies and is a member of their
Audit and Remuneration sub-committee. He
is a Chartered Accountant and a Fellow of the
Australian Institute of Company Directors.
Gary is a Director of Flight Centre Travel Group
Limited and has not had any former directorships
of listed entities in the last three years.
SPECIAL RESPONSIBILITIES
• Non-Executive and Independent Director
• Chair of Audit and Risk Management
Committee
• Member of People Development and
Remuneration Committee
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
80,000 Ordinary Shares
EARRINGS FROM THE SPIRITS BAY COLLECTION,
DESIGNED BY LADY CHRISTINE HILL
Daniel Bracken
Daniel joined Michael Hill International as
the CEO in November 2018. He has more
than 25 years’ experience managing some
of the world’s most iconic brands. He has an
extensive background in corporate strategy,
brand development, product design, customer
engagement, digital expansion and has been
instrumental in executing turnaround initiatives
across many retail businesses.
Daniel is not a director of any other listed
entities and has not had any former directorships
of listed entities in the last three years.
SPECIAL RESPONSIBILITIES
• Managing Director
• Chief Executive Officer
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
201,869 Ordinary Shares
2,310,215 Performance Rights
Jacqueline Naylor
Jacqueline was appointed a Director of the
Company on 15 July 2020. Jacqueline is a highly
regarded Australian retail leader with over thirty
years’ executive and board experience in retail,
fashion and eCommerce. She is currently an
Independent Non-Executive Director of Myer and
was previously a director of PAS Group, Macpac
and the Virgin Australia Melbourne Fashion
Festival. This follows an extensive career as a
retail executive (and later an Executive Director)
at the Just Group, where Jacqueline oversaw
merchandising, marketing and brand strategies
across a portfolio of 800 stores.
Jacqueline is a Director of Myer Holdings
Limited and has not had any former directorships
of listed entities in the last three years.
SPECIAL RESPONSIBILITIES
• Non-Executive and Independent Director
• Member of Audit and Risk Management
Committee
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
160,000 Ordinary Shares
Janine Allis
Janine was appointed a Director of the
Company on 9 June 2016 and retired on 27
October 2020. Janine is the Founder and
Executive Director of Retail Zoo Pty Ltd which
currently owns three brands - Boost Juice,
Salsa’s Fresh Mex Grill and Cibo.
Janine is not a director of any other listed
entities and has not had any former directorships
of listed entities in the last three years.
SPECIAL RESPONSIBILITIES
• Non-Executive and Independent Director
• Member of Audit and Risk Management
Committee
DIRECTOR'S INTERESTS IN SHARES AND OPTIONS
651,745 Ordinary Shares

38 MICHAEL HILL INTERNATIONAL LIMITED 2020 FINANCIAL STATEMENTS
Digital is at the forefront of our
transformation with an emphasis
on customer experience, product
offering, and fulfilment

MICHAEL HILL INTERNATIONAL LIMITED DIRECTORS' REPORT 39
Company secretaries
The Company has appointed two company
secretaries, Andrew Lowe and Emily Bird.
Andrew Lowe, who is also the Chief Financial
Officer of the Group, was appointed to the position
of Company Secretary on 1 March 2019, having
held that position previously (15 December 2017
to 22 January 2018). Andrew holds a Bachelor
of Commerce, a Bachelor of Laws (Hons) and
a Masters of Applied Finance, and is a qualified
Chartered Accountant and a Chartered Taxation
Adviser of the Taxation Institute of Australia. Andrew
has extensive experience in finance and leadership
roles across a range of listed corporate groups with
Australian and offshore operations.
Emily Bird, who is also the General Counsel
of the Group, was appointed to the position of
Company Secretary on 31 July 2020. Emily joined
Michael Hill in September 2019 as Senior Legal
Counsel, and was appointed General Counsel
& Company Secretary in July 2020. She holds a
Bachelor of Laws, Bachelor of Arts (Psychology),
Graduate Diploma in Legal Practice, Graduate
Diploma in Applied Corporate Governance and
Risk, and has completed the Company Directors
Course at the Australian Institute of Company
Directors. Emily has broad legal experience with
in-house roles at Lactalis Australia (formerly
Parmalat Australia), Virgin Blue (now Virgin
Australia) and a secondment at Tarong Energy
(now Stanwell Corporation), having started her
legal career at top-tier firm Clayton Utz.
Meetings of Directors
The numbers of meetings of the Company's Board of Directors and of each
Board committee held during the year ended 27 June 2021, and the numbers of
meetings attended by each Director were:

Full meetings

Meetings of committees

of Directors
Audit and Risk People Development
Management and Remuneration
Meetings Meetings Meetings Meetings Meetings Meetings
attended held* attended held* attended held*
R I Fyfe 15 15 6 6 5 5
Sir R M Hill 14 15 - - - -
E J Hill 15 15 - - 5 5
G W
Smith 15 15 6 6 5 5
J E Naylor
(appointed 15/07/2020) 13 13 4 4 - -
J S Allis
(retired 27/10/2020) 6 8 2 2 - -
* Number of meetings held during the time the Director held office or was a
member of the committee during the year.
Daniel Bracken was appointed a Director of the Company on 28 June 2021,
after the end of the reporting period.
Committee membership
As at the date of this report, Michael Hill International Limited has an Audit and
Risk Management Committee and a People Development and Remuneration
Committee.
Audit and Risk People Development and
Management Committee and Remuneration Committee
Gary Smith
c
Emma Hill
c
Robert Fyfe Robert Fyfe
Jacqueline Naylor Gary Smith
c
designates Chair of the committee.

40 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
Our 2021 team engagement
score of 85% is well above retail,
country and global benchmarks

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 41
Audited
Remuneration Report
The Directors present the 2021 Michael Hill International Limited remuneration report, outlining key aspects of
our remuneration policy and framework, and remuneration awarded during FY21. The information provided in this
remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
Letter from the Chair of the People Development and
Remuneration Committee
Dear Shareholders,
The Board acknowledges the performance and resilience
of the Executive Leadership Team which has enabled
the Group to report above target results for the financial
year. As discussed earlier in the Annual Report, we
have successfully navigated the challenges brought on
by COVID-19. Despite the extremely challenging retail
environment, with continuing volatility and regional
government mandated lockdowns affecting store trade,
our digital and omni retail strategy has enabled us to adapt
to changing customer behaviour. Highlights include:
• Total Group revenue of $556.5m (2020: $492.1m) -
an increase of 13.1%
•
EBIT of $72.4m (2020: $14.1m) - an increase of 414.2%
• Comparable EBIT of $56.6m (2020: -$5.2m) -
an increase of 1,183%
• Earnings per share of 11.68 cents (2020: 0.79¢) - an
increase of 1,378%.
These results have translated into shareholder returns
with the share price growing to $0.83, from $0.34
in 2020 and $0.54 in 2019. After the 2020 pause on
dividends to shareholders, dividends of 3.0c per share
were paid to our shareholders in FY21. Our performance
provides further evidence that our strategic transforma-
tion agenda is on track and delivering. We’ve seen record
digit
al sales, our lo
yalty program going from strength to
strength, further deployment of omni-channel initiatives,

and continued evolution of our product offering,
go-to-market campaigns and retail fundamentals.
We are proud of our values-led culture which has
established Michael Hill as an employer of choice. Our
values; We care, We create outstanding experiences,
We are professional and We are inclusive and diverse,
underpin team engagement and performance. Our 2021
team engagement score of 85% is well above retail,
country and global benchmarks. I’m proud we continue
to be a leader in gender diversity with 55% of leadership
positions globally held by women. We continue to build
our capability by attracting and developing key talent.
This year we have had three new members join our
Executive Leadership Team: Amy Sznicer, Chief Retail
Officer, Jo Feeney, Chief Marketing Officer and Keith Louie,
Chief Digital Officer. All three bring tremendous strategic
and technical capability to the cohesive, collaborative, and
high performing Executive Leadership Team.
Moving to the structure of our remuneration,
following a review of the executive incentive framework,
and in response to challenges in how to reward and
recognise in a rapidly changing and unpredictable
environment, the Board approved changes to the Short
Term Incentive Scheme (STI) and Long Term Incentive
Scheme (LTI) with effect from FY21. The STI opportunity
for on target performance reduced and an STI outperfor-
mance mechanism was introduced. The LTI opportunity
was amended to increase the weighting towards
long-term outcomes and a sliding vesting scale based on
Total Shareholder Return was introduced.
Given the challenging and uncertain environment,
executive salaries were not adjusted at the
commencement of the year as per the usual review
cycle. A review was completed after the first half which
recognised performance had strongly rebounded. A
moderate 1.75% increase was applied to CEO Daniel
Bracken’s base salary with an uplift of 10% applied to
Andrew Lowe’s base to remain market competitive and in
recognition of the expanded breadth of the CFO’s role.
Financial and non-financial risks were systematically
considered in the overall assessment of STI outcomes.
The CEO and CFO achieved 100% of on target STI and
due to the strong EBIT result, 75% of the outperfor-
mance STI was achieved. No awards to current KMP
vested under the LTI during the year. There were no
changes to the structure, level or value of Non-Executive
Director (NED) fees.
The Board will continue to review executive
remuneration to ensure that it aligns with our strategy and
support the delivery of sustainable long-term returns to
shareholders. In FY22 we will seek independent advice on
the appropriateness of remuneration practices of the Group.
In conclusion, the Committee believes the
remuneration changes and outcomes for FY21 reflect an
appropriate alignment between pay and performance
during the year and are also fair in terms of the operating
environment in which decisions have been made. We
are confident that shareholders will recognise this as a
continuation of our long-held approach to prior years.
The results the Company has achieved in the last 12
months are outstanding and the executive remuneration
set out in this report is considered by the Board
to be reflective of this performance.
Regards,
Emma Hill
Chair of the People Development
and Remuneration Committee

42 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
Remuneration overview
This report sets out the remuneration arrangements for Michael Hill International’s key management personnel (KMP).
KMP have the authority and responsibility for planning, directing and controlling the activities of the entity. All KMP
listed below have held their positions for the entire reporting period unless indicated otherwise.
NAME POSITION COMMENCEMENT AS KMP
Robert Fyfe Chair 2016
Non-Executive Directors
Sir Richard Michael Hill Founder and Non-Executive Director 2016
Emma Hill Non-Executive Director 2016
G
ary Smith Non-Executive Director 2016
J
acqueline Naylor Non-Executive Director 2020
Former Non-Executive
Director
Janine Allis
Non-Executive Director 9 June 2016 until 27 October 2020
Manager Director and CEO
Daniel Bracken Managing Director and Chief Executive Officer 2019
Executives
Andrew Lowe
Chief Financial Officer and Company Secretary 2017
Former Executives
Vanessa Brennan
Chi
ef Brand and Strategy Officer

11 August 2020 until 13 December 2020
Andrea Slingsby Chief Operating Officer 9 January 2019 until 22 January 2021
The following changes were made on 28 June 2021:
• Emma Hill stepped down as Chair
• Robert Fyfe was appointed as Chair
•
Daniel Bracken was appointed as Managing Director in addition to his Chief Executive Officer role.
PEOPLE DEVELOPMENT AND REMUNERATION COMMITTEE
The primary objective of the People Development and Remuneration Committee (PDRC) is to assist the Board fulfil its
corporate governance and oversight responsibilities in relation to the Company’s people strategy including remuneration
components, performance measurements and accountability frameworks, recruitment, engagement, retention, talent
management and succession planning.
The following Non-Executive Directors are members of the PDRC for the 2021 reporting period:
•
Robert F
yfe - Independent Non-Executive and Chair of the Committee
•
Emma Hill - Chair of the Board of Direct
ors
• Gary Smith - Independent Non-Ex
ecutive Director
In FY22, Emma Hill has assumed the role of Chair of the Committee and Robert Fyfe will remain as a Non-Executive
PDRC member.
USE OF REMUNERATION CONSULTANTS
The PDRC obtains independent advice every three years on the appropriateness of remuneration practices of the Group
given trends in comparative companies both locally and internationally, and the objectives of the Group’s remuneration
strategy. No advice was received in FY21. It is the Committee’s intention to seek this independent advice in FY22.

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 43
Fixed Remuneration
Fixed remuneration is set with
reference to market competitive
rates in comparative companies
for similar positions adjusted
to account for the experience,
ability and effectiveness of the
individual executive.
Base salary plus any fixed
elements including superan-
nuation and leave entitlements.
Attract and retain key executive

talent.

How it is set
How is it delivered
What is the
objective
Short Term Incentive
Senior executives participate
in the Group’s STI which is
directed to achieving Board
approved targets. Refer to the
FY21 Executive Remuneration
Summary section of this report.
Cash.
Align senior executive
reward with achievement of
performance targets designed to
drive shareholder value creation.
Long Term Incentive
The Company has established
a Share Rights Plan as deferred
compensation. Refer to the
FY21 Executive Remuneration
Summary section of this report.
An issue of share rights is made
to participating executives. The
rights vest at the end of the
performance period if certain
performance hurdles and
vesting conditions are met.
Reward executives for
sustainable long-term growth
aligned to shareholders'
interests.
Remuneration framework
Our remuneration philosophy is guided by our vision to be a modern, differentiated, omni-channel jewellery brand. The
structure of compensation is designed with a mix of market competitive fixed remuneration, short-term incentives to reward
annual performance and long-term incentives to align long term financial performance and shareholder value creation.
Our Values
Our Remuneration Philosoph
y
We care Attract, motivate and retain talent
We are professional Reward the achievement of strategic objectives
We are inclusive and diverse Align to shareholder value creation
We create outstanding experiences
FY21 executive remuneration summary
Following a review of the executive incentive framework, and in response to challenges in how to reward and recognise
in a rapidly changing and unpredictable environment, the Board approved a number of changes to both the STI and LTI
with effect from the FY21 year. The key changes are outlined below:
•
STI opportunity for on target performance has reduced
• An STI stre
tch or outperformance mechanism has been introduced
• LTI opportunity for executives has also been updated to increase the weighting towards long-term outcomes.
Historically, the STI opportunity was 70% of total fixed remuneration (TFR) for the CEO and 50% of TFR for the CFO.
LTI opportunity was 50% of STI earned for the CEO (or 35% of TFR) and 30% of the STI earned for the CFO (being 15%
of TFR). The total target incentive (STI + LTI) for the CEO was 105% of TFR and 65% for the CFO.
Whilst the total target incentive opportunity remained consistent for both the CEO and CFO during the reporting period,
being 105% and 65% respectively, the structure of the STI was changed. FY21 CEO STI opportunity at target is 36.75% of
TFR and LTI is 68.25% of TFR to give a total target incentive of 105%. The structure for the
FY21 CFO STI is 22.75% of target incentive and LTI is 42.25% of target incentive.
In addition, the FY21 scheme includes an STI outperformance component which
allows executives to earn up to 200% of their on target STI payment for outstanding
performance. This outperformance component was added on the basis that it was
self-funding and only rewarded for significant EBIT outperformance (excluding any
benefit from Government wage subsidies).

44 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
FIXED REMUNERATION
Fixed remuneration is set with reference
to market competitive rates in comparable
companies, locally and internationally, for similar
positions adjusted for the experience, ability and
effectiveness of the individual executive. Fixed
remuneration includes base salary and superan-
nuation at the rate of the maximum concessional
contributions cap.
Fixed remuneration is reviewed annually and
adjusted. Our policy is to increase base salary
by CPI and increase superannuation in line with
any increase to the concessional contributions
cap. In addition, external consultants provide
analysis and advice every three years to ensure
compensation packages are appropriate and
competitive in the marketplace. If there is a
change in role scope or complexity the position is
reassessed against market benchmarks.
Due to the uncertainty and volatility of
trading in a COVID-19 environment, executive
salaries were not adjusted for CPI at the
commencement of the reporting period as per
the usual review cycle. It was decided that any
adjustment to salaries would occur after a review
of FY21 H1 performance. This end of first half
review recognised that the performance of the
Company had strongly rebounded. Salaries were
increased from 1 February 2021. As the full year
(2020) CPI was negative, it was agreed that KMP
remuneration decisions would deviate from usual
remuneration policy. The CEO’s salary increased
by 1.75% in line with the 2020 national minimum
wage decision. It was also recognised that the
CFO’s role had increased in complexity and the
fixed remuneration was not market competitive.
Fixed remuneration increased by 10% for the CFO.
6 monthly based on H1 and H2 performance
CEO – 73.5% of fixed remuneration comprised
of 36.75% for on target performance, and
36.75% for outperformance
CFO – 45.5% of fixed remuneration comprised
of 22.75% for on target performance, and
22.75% for outperformance
In cash
Financial 50% weighting – EBIT, Sales,
Margin, Costs
Strategy 20% weighting – Omni-Channel,
Supply Chain Evolution
Customer 20% weighting – Brilliance Membership,
Global Credit Strategy
People 10% weighting – Engagement, Retention
Scaled EBIT increments above on target
performance
Awarded to the executive if performance
measures and KPIs are achieved
The Chair reviews the CEO’s performance against
the performance targets and objectives set for
that year. The CEO assesses the performance
of the Executive Leadership Team, with the
CEO having oversight of his direct reports and
the day-to-day functions of the Company. The
Committee reviews the assessed performance to
determine STI outcome for executives.
Performance
period
How it is set
How is it
delivered
Performance
measures/KPIs
for on target
performance
Performance
measure for
outperformance
component
Performance
conditions
How is STI
assessed?
SHORT-TERM INCENTIVE SCHEME
The STI is detailed in performance scorecards that are agreed
with the Committee at the start of each half year. These scorecards
detail the performance goals, targets and weightings for the
financial half and follow a balanced scorecard approach where
performance against key deliverables across financial, strategy,
business improvement, customer and people areas are measured.
The scheme is supported by a performance management
system, along with integrated reporting for visibility and
transparency of progress by each executive. The framework aligns
the executive’s KPIs to delivery of the strategic plan, divisional
business plans along with critical operational and leadership
measures of each role. Performance against KPIs is formally
measured on a biannual basis and informally in regular meetings.
The STI program in FY21 was structured as follows:

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 45
OVAL DIAMOND ENGAGEMENT RINGS FROM THE FENIX CREATED DIAMONDS FOR MICHAEL HILL COLLECTION
FY21 STI OUTCOMES
In FY21, the CEO and CFO earned 100% of their on target STI. This STI was awarded due to the achievement in full of the
KPIs related to the financial, strategy, customer and people performance measures. An outperformance STI of 75% was
awarded to both KMP due to the achievement of the EBIT performance measure. An overall payment of 87.5% of total
potential STI was achieved.
Despite the challenging market conditions, FY21 has been a successful year for the Group with Management
delivering revenue of $556.5m (up 13.1%), Comparable EBIT of $56.6m (up 1,183%) and EPS of 11.68c (up 1,378%). The
Comparable EBIT growth achieved of 1,183% was in excess of the growth required for payment of 75% of the potential
outperformance STI.
The Board considers that the strong results delivered were a direct outcome of the response of the Management
Team in successfully navigating a raft of complex issues and implementing new initiatives to drive the business through
this period. These events required an immediate range of actions by the Management Team to both manage the COVID-19
impacts and to allow the business to continue trading in a complex and constantly changing global environment.
ANALYSIS OF BONUSES INCLUDED IN REMUNERATION

On target bonus Stretch target Total potential Included in Amounts
achieved bonus achieved bonus available remuneration forfeited
KMP % % $ $ $
Daniel Bracken 100% 75% 709,128 620,487 88,641
Andrew Lowe 100% 75% 210,887 184,526 26,361
Andrea
Slingsby 100% n/a 70,000 70,000 -
Vanessa Brennan ceased to be a KMP during the first half of the financial year and was not awarded a bonus for the year.

46 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
LONG TERM INCENTIVE SCHEME
In FY21, the LTI framework was amended. This amended
framework aligns with the existing Incentive Plan Rules. The Board
considers this new LTI framework to be aligned with shareholder
interests with a sliding vesting schedule reflecting total returns to
shareholders over the performance period.
3 years
65% of on target incentive delivered as LTI, at
no cost to the executive
Share rights
Total Shareholder Return (TSR) compound
annual growth rate (CAGR) over 3 years
Subject to remaining an employee of the Group
at the vesting date (following the release of the
FY23Q4 results), and satisfaction of TSR target
metric, share rights will vest in accordance with
a sliding vesting schedule. The absolute TSR
sliding vesting schedule is as follows:
- No rights vest if TSR is equal to or less than
15% CAGR
- 5% of share rights vest f
or each 1% increase
in CAGR performance between 15% CAGR to
35% CAGR
- 100% of share rights vest if T
SR is equal to
or above 35% CAGR.
Awards are subject to a service condition
requiring the executive to remain employed by
the Group until the end of the vesting period
The absolute TSR metric has been deemed by
the Committee to be the best market based
measure to create alignment between the
interests of Management and the interests of
shareholders
If the KMP’s employment is terminated for
cause, or due to resignation, all unvested
Share Rights will lapse, unless the Board
determines otherwise
Share rights do not confer on the holder
any entitlement to any dividends or other
distributions by the Group or any right to attend
or vote at any general meeting of the Group
Performance/
vesting period
Opportunity
Instrument
Performance
metric
Vesting
condition
Rationale
for the
performance
metric and
condition
What happens
when a
KMP ceases
employment?
Dividends and
voting rights
FY21 LTI OUTCOMES
Daniel Bracken, CEO and Andrew Lowe, CFO are
the only current KMP eligible to participate in the
FY21 LTI. Andrew commenced with the Company
in FY18 and participated in that year’s LTI, which
has three vesting dates (or ‘tranches’) over
consecutive years; Andrew’s first tranche of that
scheme vested in early FY21. Daniel commenced
with Michael Hill in FY19 and participated in that
year’s LTI, which again has three vesting dates
over consecutive years; the first tranche vesting
date is early FY22 and is subject to continual
employment. Further details of the number of
share rights granted to the CEO and CFO in
relation to the FY21 LTI can be found later in this
report under the heading 'Share Rights'.
NON-EXECUTIVE DIRECTOR REMUNERATION
Total compensation for all Non-Executive
Directors, last voted upon by shareholders on
29 June 2016, is not to exceed $840,000 per
annum. Directors’ base fees for FY21 year were
$100,419 per annum. The Board Chair receives
twice the base fee. Additional fees are paid
where a Director is Chair of a committee.
Committee Chair Fees per Annum
People Development
and Remuneration
$20,7
47
Audit and Risk $31,120
It is the Company’s policy to increase Directors’
fees annually at the commencement of each
financial year, in accordance with the consumer
price index. However, in response to the COVID-19
global pandemic market conditions impacting
the Company in FY21, there was no increase
to any Non-Executive Director's fees at the
commencement of, or during, the reporting period.
All Non-Executive Directors enter into a
service agreement with the Company in the
form of a letter of appointment. The letter
summarises the Board policies and terms,
including remuneration, relevant to the office
of director. Non-Executive Directors do not
receive performance-related compensation.
Directors’ fees cover all main Board activities
and membership of committees. Non-Executive
Directors are not provided with retirement
benefits apart from statutory superannuation.
ENGAGEMENT RINGS FROM
THE EVERMORE COLLECTION

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 47
Company performance - relationship of remuneration
to Group performance
The remuneration framework operates to create a clear link between executive remuneration and the Group’s performance.
The performance of the Group over the past five years is summarised below:
2021 2020 2019 2018 2017
Revenue ($'000) 556,486 492,060 569,500 604,319 582,975
EBIT* ($'000) 72,398 14,079 21,115 8,854 43,840
Profit
for the year attributable
to owners of the Company ($'000)
45,328 3,059 16,498 1,557 29,654
Earnings per shar
e 11.68¢ 0.79¢ 4.26¢ 0.40¢ 10.66¢
Dividends paid during the financial year^ ($'000)
11,636 5,817 19,365 19,371 19,264
Market capitalisation ($'000)
322,158 131,841 209,385 375,815 430,057
Share price at y
ear end
$0.83 $0.34 $0.5
4
$0.97 $1.11
Compound annual growth rate 148.5% (34.3)% (40.2)% (8.1)% 10.9%
Re
turn on average total assets 9.0% 0.7% 4.3% 8.2% 10.5%
* EBIT and Comparable EBIT are Non-IFRS Information and are unaudited. Please refer to Non-IFRS Information in the
Directors Report for an explanation of Non-IFRS information and a reconciliation of EBIT and Comparable EBIT.
^ The dividends paid in FY21 are the postponed interim dividend for FY20 and the interim dividend for FY21. No final
dividend was declared for FY20.
Profit amounts for 2017 to 2021 have been prepared in accordance with the requirements of the Corporations Act
2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards
Board. This also complies with IFRS as issued by the International Accounting Standards Board.
The overall level of remuneration takes into consideration the performance of the Group over several years.
EXECUTIVE KMP REMUNERATION MIX
The total remuneration for the executive KMPs comprises both fixed remuneration and at-risk components in STI and
LTI. The mix shown below indicates the potential remuneration based on the current remuneration as at 27 June 2021
with STI presented at maximum opportunity.
Fixed
Executive KMP Remuneration STI LT I To t al
Daniel Bracken - CEO 41% 31% 28% 100%
Andrew Lowe - CFO 54% 24% 22% 100%
Andrea Slingsby - COO 81% 19% - 100%
Vanessa Brennan - CBSO
100% - - 100%
FY22 REMUNERATION
For FY22, Director fees increased in line with the Company’s policy of CPI increase. Additionally, and in line with the
Company’s policy on executive remuneration reviews, the base salary of both the CEO and CFO increased by CPI and their
superannuation was increased to the adjusted concessional contributions cap. The incentive scheme has been reweighted
to balance on target STI with LTI at 50% of total target incentive opportunity for the CEO and CFO. The absolute TSR sliding
vesting conditions of the LTI framework for FY22 will be a CAGR-based calculation whereby a prorata achievement of share
rights commencing from 10% CAGR, increasing by 10% for every 1% CAGR increment, limited to 100% achievement at 20%
CAGR. The committee and Board will continue reviewing the remuneration framework and incentive plans to ensure they
continue to align to market and shareholders’ best interests. An independent review is underway.

48 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
Share-
Post- based
Short-term Long-term employment payments
Salary & STI cash
Non-monetary Total Long service Superannuation Termination Share Total Proportion Value of
fees bonus benefits leave benefits benefits rights remuneration rights as
(relocation) performance proportion of
related remuneration
Non-Executive Directors $ $ $ $ $ $ $ $ $ % %
Emma Hill
2021 194,736 - - 194,736 - - - - 194,736 - -
2020 170,849 - - 170,849 - - - - 170,849 - -
Sir Richard
Michael Hill


2021 97,368 - - 97,368 - - - - 97,368 - -
2020 87,709 - - 87,709 - - - - 87,709 - -
Gary Smith

2021 120,127 - - 120,127 - 11,412 - - 131,539 - -
2020 104,327 - - 104,327 - 9,911 - - 114,238 - -
Robert Fyfe
2021 117,485 - - 117,485 - - - - 117,485 - -
2020 105,545 - - 105,545 - - - - 105,545 - -
Jacqueline Naylor
(appointed 15/07/2020)
2021 88,180 - - 88,180 - 8,377 - - 96,557 - -
Janine Allis
(re
tired 27/10/2020)
2021 30,485 - - 30,485 - 2,896 - - 33,381 - -
2020
78,594 - - 78,594 - 7,467 - - 86,061 - -
Total Director
remuneration
2021
648,381 - - 648,381 - 22,685 - - 671,066 - -
2020 547,024 - - 547,024 - 17,378 - - 564,402 - -
In response to COVID-19, all Directors' fees were reduced 50% for the period from 1 April 2020 to 30 June 2020.
OTHER BENEFITS
KMP do not receive additional benefits, such as non-cash benefits, other than superannuation, as part of the terms and conditions of
their appointment. Loans are not provided.
SERVICE CONTRACTS
It is the Group’s policy that service contracts for KMP are unlimited in term but capable of termination on three months’ notice (six
months in the case of the CEO) and that the Group retains the right to terminate the contract immediately, by making payment
equal to three months’ pay in lieu of notice (or six months’ in the case of the CEO). KMP are also entitled to receive on termination of
employment their statutory entitlements of accrued annual and long service leave, together with any superannuation benefits.
DIRECTOR AND EXECUTIVE REMUNERATION OUTCOMES FOR FY21
Details of the nature and amount of each major element of remuneration of each Director of the Company, and other KMP of the
consolidated entity are:

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 49
Share-
Post- based
Short-term Long-term employment payments
Salary & STI cash
Non-monetary Total Long service Superannuation Termination Share Total Proportion Value of
fees bonus benefits leave benefits benefits rights remuneration rights as
(relocation) performance proportion of
related remuneration
KMP $ $ $ $ $ $ $ $ $ % %
Daniel Bracken, CEO
2021 1,025,532 620,487 - 1,646,019 16,962 25,000 - 33,716 1,721,697 36.04% 1.96%
2020 905,142 134,092 - 1,039,234 10,980 25,481 - 15,324 1,091,019 12.29% 1.40%
Andrew Lowe, CFO
2021 483,848 184,526 - 668,374 12,930 25,000 - 19,684 725,988 25.42% 2.71%
2020 429,075 40,021 - 469,096 3,790 25,481 - 9,728 508,095 7.88% 1.91%
Andrea Slingsby, COO
(ceased 22/01/2021)
2021 293,388 70,000 - 363,388 - 14,904 - 19,909 398,201 17.58% 5.00%
2020 456,372 32,681 - 489,053 5,862 25,481 - 2,688 523,084 6.25% 0.51%
Vanessa Brennan, CBSO
(commenced 11/08/2020
and ceased 13/12/2020)
2021 136,657 - - 136,657 - 8,654 - 13,489 158,800 - 8.49%
Total KMP
remuneration
2021 1,939,425 875,013 - 2,814,438 29,892 73,558 - 86,798 3,004,686 29.12% 2.89%
2020 1,790,589 206,794 - 1,997,383 20,632 76,443 - 27,740 2,122,198 9.74% 1.31%
Total Director and
KMP remuneration
2021 2,587,806 875,013 - 3,462,819 29,892 96,243 - 86,798 3,675,752 23.81% 2.36%
2020 2,337,613 206,794 - 2,544,407 20,632 93,821 - 27,740 2,686,600 7.67% 1.03%
Salary and fees include the net leave entitlement accrual, calculated as leave accrued less leave taken. In response to COVID-19, all
executive KMP's salaries were reduced by 20% over the same period.

50 MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT
Additional statutory information
EQUITY INSTRUMENTS
All options or rights refer to options or rights over ordinary shares of Michael Hill International Limited, which are exercisable
on a one-for-one basis under the executive incentive plan.
OPTIONS AND RIGHTS OVER EQUITY INSTRUMENTS ISSUED AS COMPENSATION
MODIFICATION OF TERMS OF EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS
No terms of equity-settled share-based payment transactions (including options and rights granted as compensation to
a key management person) have been altered or modified by the issuing entity during the reporting period or the prior
period. The exercise price of any future option grants will be set by using the same method, with reference to the Australian
Securities Exchange ('ASX'). Upon exercise of any option previously granted with a NZ$ exercise price, the exercise price will
be converted to AU$ with reference to the Reserve Bank of Australian foreign exchange rate on that date.
UNISSUED SHARES
As at the date of this report, there were 1,300,000 unissued ordinary shares under options. Option holders do not have
any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate.
ANALYSIS OF OPTIONS AND RIGHTS OVER EQUITY INSTRUMENTS GRANTED AS COMPENSATION
No options were granted to KMP as compensation for the financial year.
SHARE RIGHTS
The number of share rights issued to KMP and senior executives during FY21 was 4,189,622 share rights. Of these, share
rights issued to KMP are set out below.
Number of Fair value
KMP share rights issued per share right
Daniel Bracken* 2,200,197 14¢
Andrew Lowe
628,814 14¢
Andrea Slingsby (ceased 22/01/2021) 33,311 35¢
Vanessa Brennan (ceased 13/12/2020)
24,285 35¢
*
Share rights issued to Daniel Bracken during the repor ting period prior to him being appointed as a Director of the Board.
RECONCILIATION OF OPTIONS AND SHARE RIGHTS HELD BY KMP
No options are held by KMP. The number of rights over ordinary shares held during the financial year by KMP, including
the number issued, vested, exercised and forfeited is set out below:



Value of rights

Balance at
start of the year
Balance
at end of the year

issued during

Vested and Vested &
the year
KMP share rights
Exercisable Unvested Issued Forfeited Vested Exercised Exercisable Unvested
rights movements Number Number Number Number Number Number Number Number $
Daniel Bracken* - 110,018 2,200,197 - - - - 2,310,215 317,367
Andrew Lowe - 50,761 628,814 - - - - 679,575 87,399
Andrea Slingsby
#
- 19,301 33,311 - - - - 52,612 11,659
Vanessa Brennan
#
^ - 49,760 24,285 - - - - 74,045 8,500
Total - 229,840 2,886,607 - - - - 3,116,447 424,924
* Share rights issued to Daniel Bracken during the reporting period were issued prior to him being appointed as a
Director of the Board. Accordingly, shareholder approval was not required pursuant to ASX Listing Rule 10.14.
#
Andrea Slingsby and Vanessa Brennan ceased to be KMP before financial year end. The "Balance at end of the year"
reflects their holdings at the time they ceased to be KMP. The Board resolved that both could retain their share rights
on cessation of employment and accordingly the share rights vested to both at the date of the resolution.
^ Vanessa Brennan became a KMP during the financial year and at that time held the share rights in the opening balance.
Share rights relating to FY21 performance are anticipated to be granted in late 2021. The number of shares will
depend on the Michael Hill International Limited’s share price over the five days prior to the grant date.

MICHAEL HILL INTERNATIONAL LIMITED REMUNERATION REPORT 51
SHAREHOLDINGS
The number of ordinary shares held during the financial year by KMP is set out below:


Balance at
start
Received
on
Balance
at end
of the y
ear
ex
ercise of rights
Other changes of the y
ear
Number Number Number Number
Non-Executive Directors
Emma Hill* 167,487,526 - - 167,487,526
Sir Richard (Michael) Hill* 148,330,600 - - 148,330,600
Gary Smith 80,000 - - 80,000
R
obert Fyfe
2,693,640 - - 2,693,640
Jacqueline
Naylor
#
160,000 - - 160,000
Janine Allis^ 651,745 - - 651,745
KMP
Daniel Bracken 141,869 - 60,000 201,869
Andrew Lowe
- - - -
Andrea Slingsby^ - - - -
Vanessa Brennan
#
^ - - - -
* Includes common shareholding due to a related party.
#
Became a KMP during the financial year and at that time held the ordinary shares in "Balance at the start of the year".
^ Ceased to be a KMP before financial year end and "Balance at end of the year" reflects their holdings at time of
ceasing to be KMP.
VOTING OF SHAREHOLDERS AT LAST YEAR'S
ANNUAL GENERAL MEETING
The Company received 99.4% of “For” votes on its
remuneration report for FY20. The Company did not
receive any specific feedback at the AGM or throughout
the year on its remuneration practices.
INSURANCE OF OFFICERS AND INDEMNITIES
The Company’s Constitution provides that it may
indemnify any person who is, or has been, an officer of the
Group, including the Directors, the Secretaries and other
officers, against liabilities incurred whilst acting as such
officers to the extent permitted by law. The Company
has entered into a Deed of Indemnity, Insurance and
Access with each of the Company’s Directors, Company
Secretary and certain other officers. No Director or officer
of the Company has received benefits under an indemnity
from the Company during or since the end of the year.
The Company has paid a premium for insurance
for officers of the Group. This insurance is against a
liability for costs and expenses incurred by officers in
defending civil or criminal proceedings involving them
as such officers, with some exceptions. The contract of
insurance prohibits disclosure of the nature of the liability
insured against and the amount of the premium paid.
NON-AUDIT SERVICES
The following non-audit services were provided by the
entity's auditor, Ernst & Young (Australia). The Directors
are satisfied that the provision of non-audit services is
compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The nature
and scope of each type of non-audit service provided
means that auditor independence was not compromised.
Ernst & Young (Australia) received or are due to
receive the following amounts for the provision of
non-audit services:

2021 2021
Ernst & Young (Australia): $ $
Employment advisory 3,682 10,050
Total remuneration
for non-audit services
3,682 10,050
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as
required under section 307C of the Corporations Act
2001 is set out on page 52.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Legislative
Instrument 2016/191, relating to the 'rounding off' of
amounts in the Directors' Report. Amounts in the
Directors' Report have been rounded off in accordance
with the instrument to the nearest thousand dollars, or in
certain cases, to the nearest dollar.
This report is made on 20 August 2021 in accordance
with a resolution of Directors as required by section 298 of
the Corporations Act 2001.
R. I. Fyfe, Chair
Brisbane, 20 August 2021

52
Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
GPO Box 7878 Brisbane QLD 4001
T
+61 7 3011 3333
F
+61 7 3011 3
100
ey.com/au
As lead auditor for the audit of the financial report of Michael Hill International Limited
for the financial year ended 27 June 2021, I declare to the best of my knowledge and
belief, there have been:
a)
No contrav
entions of the auditor independence requirements of the
Corporations
Act 2001
in relation to the audit; and
b)

No contraventions of any applicable code of professional conduct in relation to
the audit.
This declaration is in respect of Michael Hill International Limited and the entities it
controlled during the financial year.
Ernst & Young Kellie McKenzie
Partner
20 August 2021
Auditor’s independence declaration
to the Directors of
Michael Hill International Limited

Financial
Statements
ABN 25 610 937 598
The Directors present the
consolidated financial statements
of
Michael Hill International Limited
for the year ended 27 June 2021
48 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
49 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
50 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
51 CONSOLIDATED CASH FLOW STATEMENT
52 NOTES TO THE FINANCIAL STATEMENTS
95 DIRECTORS' DECLARATION
95 AUDITOR'S REPORT
96 ASX LISTING – ADDITIONAL INFORMATION

54 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
NOTES 2021 2020
$000 $000
Revenue from contracts with customers A2 556,486 492,060
Other income
A3 17,969 20,574
Cost of goods sold (207,570) (193,855)
Employee benefits expense D1 (147,619) (146,482)
Occupanc
y costs (15,135) (14,390)
Marketing expenses (28,325) (28,918)
Selling expenses
(17,959) (18,701)
Impairment of property, plant and equipment F5 (1,883) (6,473)
Impairment of
other assets
(3,513) (1,582)
Depreciation and amortisation expense F1 (51,293) (55,611)
Los
s on disposal of property, plant and equipment
(448) (499)
Other
expenses
(28,308) (32,040)
Finance e
xpenses F1 (7,595) (9,598)
Profit before income tax 64,807 4,485
Income tax expense
F9 (19,479) (1,426)
Profit f
or the year 45,328 3,059
Other compr
ehensive income
Items that may be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedges
34 434
Currency translation differences arising during the year (173) (1,716)
Other comprehensive income for the year, net of tax (139) (1,282)
Total comprehensive income for the year 45,189 1,777
Total comprehensive income for the year is attributable to:
Owners of Michael Hill International Limited 45,189 1,777
Earnings per share for profit attributable to
the ordinary equity holders of the Company:
Basic earnings per share F2 11.68¢ 0.79¢
Diluted earnings per share F2 11.
63¢
0.
79¢
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.
Consolidated statement of profit or loss
and other comprehensive income

MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021 55
Consolidated statement
of financial position
NOTES 2021 2020
ASSETS $000 $000
Current assets
Cash and cash equivalents B1 72,361 11,204
Trade and other receivables F3 8,352 25,006
Inventories A4 171,246 178,742
Assets held for sale F4 14,397 -
Current tax receivables 732 3,165
Contract assets A2 406 733
Other current assets 3,576 2,103
To
tal current assets
271,070 220,953
Non-current
assets
Trade and other receivables F3 - 10,727
Right-
of-use assets
A5 105,882 123,911
Property, plant and equipment F5 36,453 45,405
Intangible assets F6 32,845 24,429
Def
erred tax assets
F9 60,585 74,468
Contract assets A2 739 1,048
Other non-current assets 537 677
To
tal non-current assets
237,041 280,665
Total assets
508,111 501,618
LIABILITIES
Current liabilities
Trade and other payables F7 73,961 64,472
Lease liabilities A5 34,304 42,164
Contract
liabilities
A2 24,157 25,974
Provisions F8 14,854 24,949
Liabilities directly associated with assets held for sale F4 1,607 -
Current
tax liabilities
1,886 1,445
Deferred revenue 753 367
Total current liabilities 151,522 159,405
Non-current
liabilities


Lease
liabilities
A5 99,382 115,848
Contract
liabilities
A2 56,393 53,539
Borro
wings
B2 - 10,681
Pro
visions
F8 7,413 8,339
To
tal non-current liabilities
163,188 188,407
Tot
al liabilities 314,710 347,812
Net assets 193,401 153,806
EQUITY

Contributed
equity
F11 11,285 11,016
Reserves F12 4,221 4,420
Re
tained profits
177,895 138,370
Total equity 193,401 153,806
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

56 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
Notes Contributed Share Foreign Cash flow Retained Total
equity based currency hedge profits equity
Attributable to owners of
payments translation reserve
Michael Hill International Limited reserve reserve
$000 $000 $000 $000 $000 $000
Balance at 1 July 2019 10,984 757 5,516 (468) 159,963 176,752
Adjustment on adoption of
AASB16 (net of tax) - - (43) - (13,019) (13,062)
Restated total equity at the
beginning of the financial year
10,984 757 5,473 (468) 146,944 163,690
Profit for the year - - - - 3,059 3,059
Currency translation differences - - (1,716) - - (1,716)
Derivative fair value changes
- - - 434 - 434
Total comprehensive income
for the year
- - (1,716) 434 3,059 1,777
Transactions with members
in their capacity as owners:
Dividends provided
B3 - - - - (11,633) (11
,633)
Issue of share capital on
exercise of share rights
F11 32 (32) - - - -
Transfer option reserve
on forfeiture of options D3 - (166) - - - (166)
Share based payments expense D3 - 138 - - - 138
32 (60) - - (11,633) (1
1,661)
Balance at 28 June 2020
11,016 697 3,757 (34) 138,370 153,806
Profit for the year - - - - 45,328 45,328
Currenc
y translation differences - - (173) - - (173)
Derivative fair value changes - - - 34 - 34
Tot
al comprehensive income
for the year - - (173) 34 45,328 45,189
Transactions with members
in their capacity as owners:
Dividends provided B3 - - - - (5,820) (5,820)
Issue of share capital on
exercise of share rights F11 269 (269) - - - -
Transfer option reserve
on forfeiture of options
D3 - (17) - - 17 -
Share
based payments expense D3 - 226 - - - 226
269 (60) - - (5,803) (5
,594)
Balance at 27 June 2021
11,285 637 3,584 - 177,895 193,401
The above Consolidat
ed Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity

MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021 57
NOTES 2021 2020
$000 $000
Cash flows from operating activities
Receipts from customers (inclusive of GST and sales taxes) 657,320 547,258
Payments to suppliers and employees
(inclusive of GST and sales taxes) (484,021) (451,577)
173,299 95,681
Interest received 4 4
Other revenue received 14,442 13,193
Interest paid (1,036) (2,261)
Leasing interest paid A5 (6,653) (7,628)
Income tax paid (4,082) (3,974)
Net GST and sales taxes paid (32,522) (18,944)
Net cash inflow from operating activities B1 143,452 76,071
Cash flow
s from investing activities


Proceeds from sale of property, plant and equipment 73 146
Payments for property, plant and equipment F5 (6,430) (6,112)
Payments for intangible assets F6 (12,597) (11,241)
Net cash (outflow) from investing activities (18,954) (17,207)
Cash flows from financing activities

Proceeds from borrowings 2,000 70,500
Repayment of borrowings (12,682) (92,300)
Principal portion of lease payments A5 (40,997) (27,892)
Dividends paid to Company's shareholders B3 (11,636) (5,817)
Net cash (outflow) from financing activities (63,315) (55,509)
Net increase in cash and cash equivalents
61,183 3,355
Cash and cash equivalents at the beginning of the financial year 11,204 7,923
Effects of exchange rate changes on cash and cash equivalents (25) (74)
Cash and cash equivalents at the end of the financial year B1 72,361 11,204
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Consolidated statement of cash flows

58 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
Corporate information
The consolidated financial statements of Michael Hill International
Limited and its subsidiaries (collectively, the Group) for the year
ended 27 June 2021 were authorised for issue in accordance
with a resolution of the Directors on 20 August 2021. Michael
Hill International Limited (the Company or Parent) is a for profit
company limited by shares incorporated in Australia. The Company
is listed on the Australian Securities Exchange ('ASX') as its primary
listing, and maintains a secondary listing on the New Zealand Stock
Exchange ('NZX').
A Financial overview
A1 Segment information
Management have determined the operating segments based on
the reports reviewed by the Board and Executive Leadership Team
that are used to make strategic decisions. The Board and Executive
Leadership Team consider, organise and manage the business
primarily from a geographic perspective, being the country of origin
where the sale and service was performed.
The amounts provided to the Board and Executive Leadership
Team in respect of total assets and liabilities are measured in a
manner consistent with the financial statements. These reports do
not allocate total assets or total liabilities based on the operations
of each segment or by geographical location.
The Group's operations are in three geographical segments:
Australia, New Zealand and Canada.
The Corporate and other segment includes revenue and
expenses that do not relate directly to the relevant Michael Hill
retail segments. These predominately relate to corporate costs and
Australian based support costs, but also include manufacturing
activities, warehouse and distribution, interest and company tax.
Inter-segment pricing is at arm's length or market value.
The segment disclosures are prepared on a pre-AASB16
Leases
basis. An adjustment column, representing the Group's entries due
to AASB16
Leases, has been included for the purposes of reconcili-
ation to statutory results.
Notes to the financial statements
Corporate information p58
A Financial overview p58
A1 Segment information p58
A2 Revenue p60
A3 Other income p61
A4 Inventories p62
A5 Leases p62
B Cash management p64
B1 Cash and cash equivalents p64
B2 Borrowings p64
B3 Dividends p65
C Financial risk management p65
C1 Financial risk management p65
C2 Derivative financial instruments p69
C3 Capital management p70
D Reward and recognition p71
D1 Employee benefits p71
D2 Key management personnel p71
D3 Share-based payments p71
E Related parties p74
F Other information p74
F1 Expenses p74
F2 Earnings per share p74
F3 Trade and other receivables p75
F4 Assets held for sale and directly
associated liabilities p76
F5 Property, plant and equipment p7 7
F6 Intangible assets p78
F7 Trade and other payables p79
F8 Provisions p79
F9 Tax p80
F10 Auditors' remuneration p81
F11 Sontributed equity p82
F12 Reserves p82
G Group structure p83
G1 Interests in other entities p83
G2 Deed of cross guarantee p83
G3 Parent entity financial
information p86
H Unrecognised items p87
H1 Contingencies and commitments p87
H2 Events occuring after the end of
the reporting period p87
I Summary of accounting policies and
significant estimates and judgements p88
I1 Summary of significant
accounting policies p88
I2 Significant estimates and
judgements p94

MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021 59
SEGMENT RESULTS New Corporate Group AASB16
Australia Zealand Canada and other
pre-AASB16 adjustment Group
$000 $000 $000 $000 $000 $000 $000
Year ended 27 June 2021
Operating revenue 312,264 118,663 123,930 1,629 556,486 - 556,486
Gross profit 194,148 73,554 76,017 5,197 348,916 - 348,916
Gross pr
ofit %
62.2% 62.0% 61.3% 62.7% 62.7
%
EBITDA*
69,250 35,117 20,935 (40,411) 84,891 38,800 123,691
Depreciation
and amortisation
(6,361) (1,996) (5,100) (3,233) (16,690) (34,603) (51,293)
Segment EBIT
*
62,889 33,121 15,835 (43,644) 68,201 4,197 72,398
EBIT as a % of rev
enue 20.1% 27.9% 12.8% 12.3% 13.0%
Inter
est income
- - - 4 4 - 4
Finance costs (68) (7) - (867) (942) (6,653) (7,595)
Net pr
ofit before tax
62,821 33,114 15,835 (44,507) 67,263 (2,456) 64,807
Income t
ax expense
(19,479)
Net pr
ofit after tax
45,328
Year ended 28 June
2020
Operating revenue 266,610 101,276 123,038 1,136 492,060 - 492,060
Gross profit 161,030 60,412 71,075 5,687 298,204 - 298,204
Gross
profit %
60.4
%
59.7
%
57.8% 60.6
%
60.6%
EBITDA* 35,102 22,554 3,471 (33,971) 27,156 42,534 69,690
Depreciation
and amortisation
(7,692) (2,550) (6,031) (2,355) (18,628) (36,983) (55,611)
Segment EBIT
*
27,410 20,004 (2,560) (36,326) 8,528 5,551 14,079
EBIT as a % of revenue 10.3% 19.8% (2.1)% 1.7% 2.9%
Interest income - - - 4 4 - 4
Finance costs 145 16 - (2,131) (1,970) (7,628) (9,598)
Net pr
ofit before tax
27,555 20,020 (2,560) (38,453) 6,562 (2,077) 4,485
Income tax
expense
(1,426)
Net pr
ofit after tax
3,059
* EBIT and EBITDA are non-IFR
S information. Please refer to non-IFRS information in the Directors' Report for an
explanation of non-IFRS information and a reconciliation of EBIT to statutory results.
Types of products and services
Michael Hill International Limited and its controlled entities operate predominately in the sale of jewellery and
related services.
Major customers
Michael Hill International Limited and its controlled entities sell goods and provide services to a number of
customers from which revenue is derived. There is no single customer from which the Group derives more than
10% of total consolidated revenue.

60 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
2021 2020
A2 Revenue
$000 $000
Revenue from sale of goods and repair services 525,781 460,393
Revenue from Professional Care Plans (PCP)*
27,310 27,478
Interest and other revenue from in-house customer finance program 2,792 3,958
Revenue from Lifetime Diamond Warranty (LTDW) 603 231
To
tal revenue from contracts with customers 556,486 492,060
* During the financial year ended 27 June 2021, the Group did not recognise revenue of $1.3m (2020: $2.1m) for
PCP services in Canada from February to June 2021 due to the inability to service customers from temporary
closure of stores due to COVID-19. Revenue not recognised and deferred in the prior period was recognised in
the current reporting period.
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
The Group derives revenue from the transfer of goods and services over time and at a point in time in the following
geographical regions:
Corporate

Australia New Zealand Canada and other Tot
al
$000 $000 $000 $000 $000
2021
Timing of revenue recognition
At a point in time
296,723 113,547 114,099 1,412 525,781
Over
time
15,541 5,116 9,831 217 30,705
312,264 118,663 123,930 1,629 556,486
2020
Timing of revenue recognition
At a point in time
249,852 95,770 114,145 626 460,393
Over
time
16,758 5,506 8,893 510 31,667
266,610 101,276 123,038 1,136 492,060
ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES
(i) Sale of goods
Sales of goods are recognised when a Group entity delivers a product to the customer. Retail sales are usually by
cash, payment plan or credit card. The recorded revenue is the gross amount of sale (excluding taxes), including
any fees payable for the transaction and net amounts deferred under AASB15
Revenue from Contracts with
Customers
such as significant financing components and potential customer returns.
(ii) Repair services
Sales of services for repair work performed is recognised in the accounting period in which the services are performed.
(iii) Deferred service revenue and expenses
The Group offers a PCP product which is considered deferred revenue until such time that service has been
provided. A PCP is a plan under which the Group offers future services, such as cleaning, repairs and resizing, to
customers based on the type of plan purchased. The Group subsequently recognises the income in revenue in
the statement of comprehensive income once these services are performed. An estimate based on the timing
and quantum of expected services under the plans is used as a basis to establish the amount of service revenue
to recognise in the Consolidated Statement of Comprehensive Income.
Direct and incremental sales staff bonuses associated with the sale of PCPs are capitalised in contract assets
and amortised in proportion to the PCP revenue recognised.
(iv)
Deferred interest revenue
Interest revenue is deferred on the in-house customer finance program when the sale of the good or service
occurs. It is calculated as the difference between the nominal cash and cash equivalents received from customers
and the discounted cashflows, on both interest and non-interest bearing products. Interest revenue is brought
to account over the term of the finance agreement, and the rate used for non-interest bearing products is in line
with current, comparable market rates.
Notes to the financial statements cont.

MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021 61
(v) Right of return assets and liabilities
Rights of return recognises the estimated returned sales under the Group's return policy, being 30 day change of
mind in Australia and New Zealand and 60 day change of mind in Canada.
Management estimates the returned sales based on historical sale return information and any recent trends
that may suggest future claims could differ from historical amounts. For sales that are expected to be returned,
the Group recognises a right of return liability. The associated inventory value for sales that are expected to be
returned is recognised as a right of return asset.
(vi)
Lifetime Diamond W
arranty
LTDW is a warranty provided to customers with the purchase of jewellery items set with a diamond (excluding
watches). This has been deemed a service-type warranty and is calculated with reference to the estimated value
of service provided to customers and the stand-alone value of customers obtaining the service independently.
Income in relation to the LTDW is recognised in line with the estimated pattern of customers utilising this
service-type warranty.
2021 2020
ASSETS AND LIABILITIES RELATED TO CONTRACTS WITH CUSTOMERS $000 $000
Right of return assets 58 108
Deferred PCP bonuses
1,087 1,673
Tot
al contract assets
1,145 1,781
Def
erred service revenue 76,581 73,856
Deferred interest revenue
- 2,918
Right of re
turn liabilities
148 250
Life
time Diamond Warranty
3,821 2,489
Total contract liabilities 80,550 79,513
REVENUE RECOGNISED IN RELATION TO CONTRACT LIABILITIES
The following table shows how much of the revenue recognised in the current reporting year relates to carried-
forward contract liabilities and how much relates to performance obligations that were satisfied or partially
satisfied in a prior year:
2021 2020
$000 $000
Revenue recognised that was included in the contract liability
balance at the beginning of the year 22,243 22,300
Impact on revenue recognised relating to performance
obligations satisfied in previous years (1,305) -
Revenue recognition patterns are regularly reassessed based on new and historical trends resulting in remeasurement
of revenue recognised in previous years.
2021 2020
A3 Other income
$000 $000
Net foreign exchange gain 2,367 2,382
Government grants 14,593 17,678
Other it
ems
1,009 514
17,969 20,574
The Group received grants in relation to COVID-19 wage subsidies in all three markets. These grants were
accounted for as income upon recognition of the corresponding employee benefit expense as satisfactory
prerequisites of the grant were met. Further information regarding wage subsidies is disclosed in note I2.

62 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
2021 2020
A4 Inventories
$000 $000
Raw materials 12,435 6,313
Finished goods
156,199 169,094
Packaging and other consumables 2,612 3,335
171,246 178,742
Finished goods are held at the lo
wer of cost or net realisable value (NRV). During the year, $2,327,000 (2020:
$5,608,000) was recognised as an expense for finished goods inventories carried at NRV. This is recognised in
cost of goods sold.
2021 2020
A5 Leases
$000 $000
RIGHT-OF-USE ASSETS
Right-of-use assets 179,524 162,380
Less: Accumulated depreciation (72,925) (37,654)
Less: Accumulated impairment
(717) (815)
105,882 123,911
Reconciliation of right-of-use assets
Opening carrying value 123,911 142,833
Additional right-of-use assets relating
to leases entered into during the year 13,311 21,702
Lease modifications agreed during the year 7,581 (126)
Depreciation expense (35,357) (37,876)
Reduction in right-of-use assets as a consequence
of COVID-19 on rent concessions (3,902) (2,033)
Impairment of right-of-use assets - (815)
Foreign currency translation 338 226
Closing carr
ying value 105,882 123,911
LEASE LIABILITIES
Current 34,304 42,164
Non-current 99,382 115,848
133,686 158,012
Reconciliation of
lease liabilities

Opening carrying value 158,012 166,322
Additional lease
liabilities entered into during the year
13,177 21,671
Lease
modifications agreed during the year
7,517 14
Net
reduction in future lease payments agreed as
a consequence of COVID-19 on rent concessions (3,902) (2,033)
Inter
est expense
6,653 7,628
Lease
repayments (47,650) (35,520)
For
eign currency translation
(121) (70)
Closing carrying v
alue
133,686 158,012
The incr
emental borrowing rate used in determining the lease liability ranged between 1.47% and 7.12% (2020:
1.85% and 6.95%). Expenses relating to short-term leases during the period of $6,444,000 (2020: $4,467,000)
were included in occupancy costs.
Notes to the financial statements cont.

MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021 63
ACCOUNTING POLICIES AND SIGNIFICANT JUDGEMENTS
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets which are recognised in the profit or loss. The Group recognises lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a
straight-line basis over the lease term.
On 28 May 2020, the IASB issued COVID-19-Related Rent Concessions - amendment to AASB16
Leases. The
amendments provide relief to lessees from applying AASB16
Leases guidance on lease modification accounting
for rent concessions arising as a direct consequence of the COVID-19 pandemic. As a practical expedient, a
lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification.
A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19 related
rent concession the same way it would account for the change under AASB16
Leases, if the change were not a
lease modification. The Group has applied this practical expedient in the consolidated financial statements for all
COVID-19 impacted leases. Where the practical expedient has been applied, the Group has remeasured its lease
liabilities, using the remeasured consideration (e.g., reflecting the lease payment reduction or lease payment
deferral provided by the lessor), with a corresponding adjustment to the right-of-use asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in note I1(f).
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
Lease liabilities
At commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a
rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease
payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to
produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the lease payment (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment
of an option to purchase the underlying asset.
The Group has several lease contracts that include extension options. These options are negotiated by
Management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business
needs. Management exercises significant judgement in determining whether these extension options are
reasonably certain to be exercised (refer to note I2).
Set out below are the undiscounted potential future rental payments relating to the period following the
exercise date of extension options that are not included in the lease term:

2021 2020
Within More than Within More than
five years five years Total five years five years Total
$000 $000 $000 $000 $000 $000
Extension options expected not to be exercised 277 55 332 455 60 515
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not
contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value
assets are expensed on a straight-line basis over the lease term.

64 MICHAEL HILL INTERNATIONAL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 JUNE 2021
B Cash management
2021 2020
B1 Cash and cash equivalents
$000 $000
Cash at bank and on hand 72,361 11,204

Reconciliation of profit after income tax to
2021 2020
net cash inflow from operating activities $000 $000
Profit for the year 45,328 3,059
Adjustment for:
D
epreciation of property, plant and equipment 11,746 15,484
Depr
eciation of right-of-use assets
35,357 37,876
Amortisation
of intangible assets
4,190 2,251
Impairment of
property, plant and equipment
1,883 6,473
Impairment of
other assets 3,513 1,579
Impairment of intangibles assets - 3
Non-cash
employee benefits expense - share-based payments
226 (25)
Make good interest (57) (228)
Net
loss on sale of non-current assets
448 442
Net
exchange differences
2,998 1,143
Change in operating as
sets and liabilities
(Increase)/decrease in trade and other receivables 13,163 1,490
(Increase)/decrease in inventories 7,663 (206)
(Increase
)/decrease in deferred tax assets
16,121 (1,430)
(Increase
)/decrease in other non-current assets
451 2,324
(Increase
)/decrease in other current assets
(1,192) 89
(Decr
ease)/increase in trade and other payables 6,635 12,987
(Decrease)/increase in current tax liabilities 2,896 8,509
(Decr
ease)/increase in provisions
(11,114) (6,121)
(Decrease)/increase in contract liabilities 3,197 (2,000)
Net
cash inflow from operating activities
143,452 83,699

2021 2020
B2 Borrowings
Non- Non-
Current current Total Current current Total
$000 $000 $000 $000 $000 $000
Bank loans - - - - 10,681 10,681
Total secured borrowings - - - - 10,681 10,681
On 24 Mar
ch 2021, the Group entered into a financing agreement with ANZ Banking Group and HSBC Australia
for an availability period of three years. The financial arrangement includes a $72 million multi-option borrowing
facility and ancillary working capital facilities in line with the business requirements of the Group. At balance date no
amounts were drawn on these facilities. Refer to note C3 for details of covenants relating to the financing facilities.
Notes to the financial statements cont.