FY22Q1 Trading Update

ASX AND NZX ANNOUNCEMENT


CONTINUED STRONG PERFORMANCE
DESPITE IMPACT OF ONGOING LOCKDOWNS


Trading Update

12 October 2021
Michael Hill International Limited (ASX/NZX: MHJ) is pleased to provide its quarterly trading update for the 13 week
period ended 26 September 2021.
KEY POINTS
• Strong same store sales in all markets – Same store sales for the quarter were up an impressive 15.5%, against
FY21Q1.
• Continued margin expansion – Strategic initiatives underpinned margin growth of 100 to 200 bps in all markets and
channels against FY21Q1.
• Digital sales surge – For the quarter, digital sales were up 58.2% against FY21Q1, representing 9.4% of sales
(FY21Q1: 5.3%).
• Lost store trading days impact – The quarter saw 7,396 lost store trading days across all markets vs 2,158 in the
same period last year, representing a net loss of 20% of Q1 trading days against prior year. Despite this, all store
sales were only down 10% for the quarter against FY21Q1.
• Earnings impact well managed – A combination of increased margins, focused cost control, digital growth and strong
same store sales, has lessened the negative impact on earnings from the lockdowns.

Global Store Network Update

During the quarter, there were no store openings or closures and the network remained at 285 stores (FY21Q1: 289).
In relation to performance by market and temporary store closures:
Australia: For the quarter, same store sales were up 9.4% and all store sales were down 24.9%. For the majority of
the quarter, 71 stores were temporarily closed, representing a significant loss of 5,931 store trading days. At quarter
end, of the 150 Australian stores (FY21Q1: 154), 38 NSW, 29 VIC and 4 ACT stores were temporarily closed. From 11
October 2021, NSW stores have been progressively reopening.
New Zealand: For the quarter, same store sales were up 17.8% and all store sales were down 13.2%. The mandated
lockdowns spanning five weeks of the quarter, resulted in a loss of 1,333 store trading days. At quarter end, of the
49 New Zealand stores, 16 Auckland stores were temporarily closed.
Canada: For the quarter, same store sales were up 17.7% and all store sales were up 18.8%. By early July, all 86
Canadian stores were open and trading, with only 132 store trading days lost for the quarter.
Commenting on the result, Michael Hill International Limited, Managing Director and CEO Daniel Bracken said:

“I’m particularly pleased with our results, having delivered double digit same stores sales growth together with
continued margin improvement for the quarter – marking our ninth quarter of positive same stores sales growth since
FY19Q3. These results reaffirm our transformational agenda is enhancing all aspects of our business, broadening our
omni-channel offering, elevating our brand and delivering growth.

“Our strategic initiatives – driving elevated margins, an intense focus on costs, and strong digital and physical sales,
have all combined to lessen the negative impact on earnings from sustained store closures across Australia and New
Zealand.

“Upon reopening, our Canadian business has been flying, delivering impressive sales and margin growth every week.
This demonstrates that as territories reopen, the business is ready to meet the strong consumer demand, with the right
inventory, engaged team members and appropriate safety protocols in place. We are looking forward to the progressive
reopening of our NSW, VIC and Auckland stores, in readiness for the all-important trading period.”

SEGMENT BREAKDOWN
Revenue for retail operations for FY22Q1 (13 week trading period ended 26 September 2021):


$m $m

The following figures are in Australian dollars

Last Year This Year
% Var
Total same stores AUD 88.5 102.2 15.5%
Total all stores AUD 119.5 107.6 -10.0%



Same store figures in local currency



Australia same stores AUD 41.4 45.3 9.4%
New Zealand same stores NZD 17.9 21.0 17.8%
Canada same stores CAD 29.0 34.2 17.7%



All stores figures in local currency



Australia all stores AUD 64.9 48.8 -24.9%
New Zealand all stores NZD 25.4 22.1 -13.2%
Canada all stores CAD 29.5 35.0 18.8%



Exchange rates used for FY22Q1:

New Zealand 1.08 1.05

Canada 0.95 0.93



Same store sales reflect sales through store and online channels on a comparable trading day basis and a proportional allocation of
Professional Care Plan (PCP) revenue and accounting adjustments, and are unaudited. Same store sales do not include permanent or
temporary store closures on a same trading day basis.

The above figures for all store sales represents two months sales results with accounting adjustments plus September preliminary
sales figures prior to final accounting adjustments, and are unaudited. All stores figures stated above include the PCP revenue
recognised during the period and sales through our store and online channels. The PCP income recognition pattern is based on
existing estimates and is subject to ongoing management review and adjusted at half-year/year-end as required.

This announcement is authorised for release by the Board.
ENDS
For more information, please contact:


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


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

Media:
Mark Rudder
+61 411 362 362

ABOUT MICHAEL HILL INTERNATIONAL LIMITED

Michael Hill International was founded by Sir Michael Hill in 1979 when he opened his first jewellery store in Whangarei,
New Zealand. The Group currently has 285 stores globally across Australia, New Zealand and Canada. The Group’s global
headquarters, including its wholesale and manufacturing divisions, are located in Brisbane, Australia. The Company is
listed on the ASX (ASX:MHJ) and the NZX (NZX:MHJ).

www.investor.michaelhill.com

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

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

Such risks, uncertainties and other important factors include, among others: global and local economic conditions; changes in market trends and end-
consumer preferences; fluctuations in the prices of raw materials, currency exchange rates, and interest rates; the Company’s plans or objectives for
future operations or products, including the ability to introduce new jewellery and non-jewellery products; the ability to expand in existing and new
markets and risks associated with doing business globally and, in particular, in emerging markets; competition from local, national and international
companies in the markets in which the Company operates; the protection and strengthening of the Company’s intellectual property rights, including
patents and trademarks; the future adequacy of the Company’s current warehousing, logistics and information technology operations; changes in
laws and regulations or any interpretation thereof, applicable to the Company’s business; increases to the Company’s effective tax rate or other harm
to the Company’s business as a result of governmental review of the Company’s transfer pricing policies, conflicting taxation claims or changes in tax
laws; and other factors referenced to in this presentation.

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

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


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