Business Update

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For the 20 weeks trading of FY23H2 to 21 May 2023
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For the 47 weeks trading of FY23 to 21 May 2023
ASX AND NZX ANNOUNCEMENT

BUSINESS UPDATE

31 May 2023
Michael Hill International Limited (ASX/NZX: MHJ “Michael Hill” or the “Company”) today provides a
business update.
Bevilles Acquisition Completion

The Company is pleased to advise the acquisition of the Bevilles Jewellers business has today
successfully completed on the terms announced to the market on 19 April 2023. Michael Hill takes
ownership and operational control of the business with effect from 1 June 2023, with the Bevilles
leadership and retail team members, stores and corporate office having successfully transitioned to
the Michael Hill Group.

Bevilles is a fast growing and profitable Australian jewellery retailer that centres its brand and products
on the ‘value’ customer segment. As such, this provides a strong strategic fit and complements the
strategy to elevate the Michael Hill brand to a ‘premium’ market positioning.

Initial steps for the Bevilles’ store rollout growth strategy are progressing well. Offers of new locations
from a number of landlords have been tabled and are currently being considered to prioritise the
highest potential new locations. Further updates on new Bevilles’ store locations and the broader
network plan will be provided as part of future company announcements.

Trading Update

Given the prevailing economic conditions and resulting softening of consumer sentiment, trade has
been more challenging for the jewellery industry in the second half, particularly in Australia and New
Zealand, with New Zealand having also been impacted by significant weather events and a recent
resurgence of security incidents and related costs.

Third party transactional data for the total Australian retail jewellery segment has shown a double-
digit decline in sales for the first four months of the second half. However, Michael Hill group sales for
the second half
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are only down 3.5%, demonstrating that Michael Hill has continued to take market
share even in a more challenging environment. Michael Hill’s total group sales for FY23 year to date
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are up 5.5%.

Credit Facility Update

Michael Hill’s Revolving Credit Facility requires refinancing prior to year end. Credit approval has been
provided by ANZ and HSBC for the refinancing of a new three year $90m facility. Formal
documentation is expected to be executed prior to financial year close.

This new facility will support Michael Hill’s strategic initiatives including the national expansion of the
Bevilles store network; the launch of the new digitally-led Bespoke diamond jewellery brand; further
rollout of the gold recycling platform; continued international digital expansion; along with additional
organic strategic growth initiatives.

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Managing Director and CEO of Michael Hill International Limited, Daniel Bracken commented:

“I’m excited the Bevilles Jewellers acquisition has completed and welcome the Bevilles team members
to the Michael Hill family. This acquisition not only demonstrates the Board’s commitment to strategic
investment and growth, but also provides a platform for significant store network expansion and
delivery of incremental earnings.

“Despite the more challenging market conditions and the resulting impact on many retailers, I’m
encouraged by the Michael Hill performance, as we continue to take market share in our category.
Looking forward to FY24, I’m energised by the pipeline of strategic initiatives that underpin our growth
aspirations for the group.”

Important notes

The above sales percentages are based on trading sales which do not include Professional Care Plan
revenue and accounting adjustments and are unaudited. The above represents the current decisions
and intentions of the Company. Further information will be provided if the Company’s decisions or
intentions change or the Company has new information, in accordance with the Company’s disclosure
obligations.


This announcement is authorised for release by the Board.

– ENDS –

For more information, please contact:

Investors:
Andrew Lowe
CFO & Company Secretary
+61 478 301 320
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 Limited was founded by Sir Michael Hill in 1979 when he opened his first
jewellery store in Whangarei, New Zealand. The Group currently has 280 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).

For more information:
investor.michaelhill.com
michaelhill.com.au
michaelhill.co.nz
michaelhill.ca

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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.

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
34 Southgate Avenue, Cannon Hill, QLD 4170