FY25H1 Results Presentation

FY25H1
RESULTS

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”, “projects”,
“assumes”, “forecast”, “likely”, “outlook”, “would”, “could”, “should”, “continues”, “estimates” or similar expressions or the negatives thereof, generally
identify 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, sustainability targets, 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, they are not guarantees or predictions of
future performance or statements of fact. 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 report.
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, as there can be no assurance the actual outcomes will not differ materially
from the forward-looking statements in this report.
Except as required by applicable laws or regulations (including the ASX Listing Rules), the Group does not intend, and does not assume any obligation, to update
any forward- looking statements contained herein. 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 report.
2

CEO and CFO FY25H1 Update
•FY25H1 Performance Overview
•FY25H1 Financial Results
•Group Results
•Segment Results
•Current Trading Update
•Group Strategy
•Appendices
Michael Hill International Limited

FY25H1 Performance Overview
4
•Macroeconomic pressures continued to impact consumer sentiment
and discretionary retail trading conditions, particularly in New Zealand
•Our two largest segments Australia and Canada delivered growth
•Gross margin is starting to recover, underpinned by brand and product
initiatives, despite ongoing challenging raw material costs
•Strong digital traffic, with customers embracing omni-channel,
supported the increase in digital sales
•Significant progress on Michael Hill brand and product initiatives:
•Opened second global flagship store in Bourke St, AU
•Refurbished Queenstown, NZ store with the new brand identity
•Successfully launched the Pendant Bar concept, with a focus on
both build-your-own and ready-to-wear gifting
•Elevated the quality of its sustainable “LAB.” diamonds

FY20H1 Financial Snapshot
•Group revenue (including Bevilles) was down 0.7%,
and flat on a constant currency basis.
•Gross profit was down 0.9%
•Gross margin was broadly in line with FY24H1,
despite higher input costs, particularly gold
•Compressed comparable EBIT, with higher
annualised operating costs
•Active management of inventory delivered a
reduction of $6.6m
•No interim dividend
5
FY25H1FY24H1Change
Revenue$360m$363m-0.7%
Gross Profit$221m$223m-0.9%
Gross Margin 61.3%61.5%-20 bps
Comparable EBIT $24.1m$31.3m-23%
Inventory$213.2m$219.8m-$6.6m
Net Cash/(Debt)($9.8m)($11.6m)+$1.8m
Total Dividend-AU1.75c-AU1.75c
Store Network294
(incl. 38 Bevilles)
302
(incl. 30 Bevilles)
-8
FY25H1 Group Results

6
Australia
1
(AUD)Canada (CAD)New Zealand (NZD)
FY25H1FY24H1ChangeFY25H1FY24H1ChangeFY25H1FY24H1Change
Revenue205m202m+1.2%91m89m+2.4%61m65m-7.4%
Gross profit124m123m+1.1%55m54m+2.0%36m39m-8.9%
Gross margin60.5%60.6%-10 bps60.8%61.0%-20 bps58.9%59.9%-100 bps
Segment Comparable EBIT22.5m25.6m-12.2%13.7m13.9m-1.6%9.4m10.1m-6.7%
Comparable EBIT as a %
of statutory revenue
11.0%12.7%-170 bps15.1%15.7%-60 bps15.6%15.5%+10 bps
Store network166
(incl. 38 Bevilles)
171
(incl. 30 Bevilles)
-5 8385-24546-1
FY25H1 Segment Results
1
Includes Bevilles
•Australian segment achieved revenue growth with five fewer stores
•Canada delivered yet another record performance
•External economic factors continue to present challenging retail conditions in New Zealand

7
Current Trading Update
•For the first seven weeks of FY25H2, Group same store
sales were up 3.2% on prior year, with same store sales
for the:
•Australian segment up 3.8%
•Canadian segment up 6.7%
•New Zealand segment down 1.9%
•Total sales for the Group were up 1.7% for the first seven
weeks of FY25H2.

Group Strategy, the path to 2030
2020 – 2023
Reposition
Michael Hill
Brand
2023 – 2024
Establish
Portfolio of
Brands
2024 – 2025
Product &
Brand
Proposition
2026 – 2030
Network
Expansion &
Productivity
8

Group Strategy – the path to 2030
2020 – 2023
Reposition
Michael Hill
Brand
2023 – 2024
Establish
Portfolio of
Brands
2024 – 2025
Product &
Brand
Proposition
2026 – 2030
Network
Expansion &
Productivity
9

Product & Brand Proposition, 2024 - 2025
10

Product & Brand Proposition, 2024 - 2025

Group Strategy – the path to 2030
2020 – 2023
Reposition
Michael Hill
Brand
2023 – 2024
Establish
Portfolio of
Brands
2024 – 2025
Product &
Brand
Proposition
2026 – 2030
Network
Expansion &
Productivity
12

Strategic priorities over the next 12 months
13
1. Embedding the repositioning of the Michael Hill brand across all markets
2. Internal strategic review of New Zealand to improve performance
3. Reinforce retail fundamentals, brand identity and awareness of the Bevilles
brand, in preparation for expansion

Q & A
Yo u are able to listen to Q&A via this platform.
If you would like to ask a question, please click on ‘Request
to Speak’ button at the bottom of the broadcast window.
If you are in full screen broadcast mode, you will need to
minimise to see this button.
Click ‘Join Queue’.
If prompted, allow access to your microphone.
Follow the audio prompts to test your microphone.

14

Appendices
15

16
Appendix A: Bridge from Comparable EBIT to Reported EBIT
(AUD million)FY25H1FY24H1
Comparable EBIT24.131.3
Impact of AASB16 Leases6.35.5
Impact of IFRIC SaaS-related guidance-0.1-2.7
Litigation judgement3.0-4.0
Bevilles acquisition transaction costs--1.1
Bevilles integration costs-0.7-
Employee restructure costs-0.3-0.2
Reported EBIT32.428.8
Calculated as follows:

Appendix B: AASB16 Leases & SaaS Impact
(AUD million)
FY25H1
Stat
Impact of
AASB16 & SaaS
FY25H1
pre-adjustments
FY24H1
pre-adjustments
Change
pre-adjustments
Revenue360.2-360.2362.7-0.7%
Cost of sales-139.3--139.3-139.7-0.3%
Gross profit220.9-220.9223.0-0.9%
Employee benefits expense-93.3-2.3-91.0-91.0+0.0%
Occupancy costs-8.927.6-36.5-35.1+3.9%
Marketing expenses-23.2--23.2-22.5+3.3%
Selling expenses-13.7--13.7-13.1+4.5%
Other income/(expenses)-17.7-1.0-16.7-22.3-25.3%
EBITDA64.124.339.839.0+2.1%
Depreciation and amortisation expenses-31.7-18.0-13.7-13.0+5.3%
EBIT32.46.226.126.0+0.6%
Interest income0.1-0.10.1+7.0%
Finance expenses-8.7-5.5-3.2-1.9+68.3%
Profit before tax23.80.723.124.2-4.7%
17