Thank you all for standing by. Welcome to the Michael Hill analyst briefing for the end-of-year results webcast and conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question at that time, you will need to press star one on your telephone. I would now like to hand the conference over to your first speaker, Mr. Daniel Bracken, CEO. Thank you, Daniel. Please go ahead. Good morning. Thank you for joining us for the Michael Hill International Limited FY 2021 full-year results call. It is a pleasure to be speaking to you today. I am here this morning with Chief Financial Officer Andrew Lowe. Together, as set out on slide three, we will be taking you through a review of the results and providing you with a strategy update. As usual, we will end with a Q&A session. Turning to slide four, the board and management are delighted to deliver record financial results. FY 2021 has been an outstanding year with all metrics up, a credit to both the execution of our strategic initiatives and the dedication and resilience of our team. These outcomes were delivered while successfully navigating significant disruption from the global pandemic. Half of 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. Focused management of our key Indian supply chain meant that the pandemic impacts in India did not significantly disrupt inventory flow, and other sourcing regions across Europe and China were relatively unimpacted. Of course, throughout the year, always at the forefront of our minds was the prioritizing of the ongoing health, safety, and well-being of our team members and our customers. From a results perspective, the business has delivered both strong sales growth and margin expansion in all three markets, further validating the transformation agenda is on track. We continued to focus on enhancing our digital business, which pleasingly exceeded expectations in its outperformance of FY20, increasing by 53% and delivering yet another year of record digital sales. Our reinvigorated retail leadership demonstrated their commitment to further embedding our retail fundamentals, which saw increases in all key metrics. ATV, IPS, and conversion were all up. Our Brilliance by Michael Hill loyalty program went from strength to strength, now with over 800,000 members. The team also worked tirelessly to roll out additional omni-channel offerings, including ship from store, click and reserve, and virtual selling. I'll elaborate further on our progress during the strategy update later in the presentation. 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 comp sales growth together with sustained margin expansion. I will now pass to Andrew Lowe to provide more detail on the full-year results. After that, I will return to deliver an update on our key strategic initiatives along with an outlook commentary. Thank you, Daniel. Turning now to slide five, FY 2021 group results. As mentioned by Daniel, given the disruptive trading conditions, we're particularly proud of our full-year results. Today, we announced a record statutory net profit after tax of AUD 45.3 million for the year. Statutory earnings before interest and tax of AUD 72.4 million represents a significant EBIT increase of AUD 58.3 million on prior year, largely driven by improved sales and margin, delivering a AUD 50.7 million lift in gross profit to AUD 348.9 million. As a result of government-mandated lockdowns, the Michael Hill global store network suffered over 10,000 lost store trading days. Please refer to the slide in the appendix to this presentation for more information on the lost store trading days throughout the year in each market. Despite the impact of significant lost store trading days due to government-mandated lockdowns and some permanent store closures reducing the global store network, the company still saw revenue growth in all markets, with total revenue up by 13.1% to AUD 556.5 million as the company continues to elevate and modernize the brand and transform the customer journey. The company has strengthened its balance sheet with a year-end net cash position of AUD 72.4 million, prior year, AUD 0.5 million, and nil debt. During the year, the company also entered into a new financing facility jointly funded by ANZ and HSBC. This new AUD 70 million facility is currently undrawn, with a term to February 2024. The company has strategically reviewed its in-house Canadian credit program to de-risk the balance sheet. The sale of the credit book and partnering with a new credit provider for our Canadian business is nearing conclusion. Through focused management by our merchandise team, the company delivered inventory levels to the targeted range with a holding of AUD 171.2 million at year-end, a reduction of AUD 7.5 million compared to last year. We continue our unwavering focus on costs right across the business, from logistics and repairs to credit arrangements, labor, and leasing. This focus has assisted not just to earnings, but also cash flow and working capital. The company continued to actively manage its global store network and landlord relationships. During the year, the company opened one new store in Canada and closed six underperforming stores, resulting in 285 stores at year-end. Turning to capital management. 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 recognizing the risk of ongoing trading disruption, the board has decided to declare a final dividend of AUD 0.03 per share, unfranked, fully imputed with conduit foreign income. This represents total dividends for the year of AUD 0.045 per share and lays the foundation for a sustainable dividend profile going forward, subject to the impacts of ongoing trading disruptions. Turning now to the next slide on key performance results. Following the FY 2020 global store network shutdown, the company delivered significant same-store sales growth across all four quarters of FY 2021. For the year, the group delivered same-store sales growth of +8.6%, with Australia up by 13%, New Zealand by 7.1%, and Canada by 6.8%. Gross margin increased by 210 basis points to 62.7% for the group. These results demonstrate the growth initiatives underpinning the seven strategic pillars are now firmly embedded in the company. These initiatives have created a sustainable platform for sales growth and margin expansion with the success of our loyalty program, continued penetration of our online business, acceleration of retail fundamentals, and product evolution. Setting aside the accounting impacts of the leasing standard, the one-off impact of the Canadian credit book held for sale, and government grants received across all three markets, the group delivered a comparable EBIT result of AUD 56.6 million for the year, well up on the prior year comparable EBIT loss of AUD 5.2 million. The company's online business exceeded expectations and significantly outperformed FY 2020, resulting in another year of record digital sales of AUD 34.8 million. Digital sales now represent 6.3% of total sales. Website traffic increased by 35.3% against prior year, with an increased volume of customers continuing to utilize our enhanced online platform. The company continued to prioritize product evolution and create uniquely Michael Hill jewelry. Branded collections now represent 42.1% of total sales for the year, against 37.3% for the prior year. Moving on now to our segment results on slide seven. In Australia, all store revenue increased by 17.1% to AUD 312.3 million. 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%, a significant improvement on both FY19 and FY20. At year-end, of the 150 Australian stores, 30 New South Wales and two Northern Territory stores were temporarily closed. Currently, 46 New South Wales, 34 Victoria, and 4 ACT stores are temporarily closed due to government-mandated lockdowns. In New Zealand, all store revenue increased by 19.1% to NZ$127.1 million. This result represents significant outperformance against FY 2017, 2018, and 2019. 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%, resulting in the strongest margin in the last five years. At year-end, all 49 stores were trading. Currently, those 49 New Zealand stores are temporarily closed due to government-mandated lockdowns. In Canada, all store revenue increased by 6.9% to CAD$118.4 million. This segment was heavily impacted by temporary store closures in Eastern Canada with 6,525 lost store trading days for the year. By the start of July 2021, all 86 stores were open and have remained trading since, with our focus now returning to the productivity opportunity in the market. Gross margin for the year was 61.3%, a significant improvement on both FY19 and FY20. Our margin-related strategies are gaining traction in all markets as the business saw gross margin improvement in the range of 180 basis points to 350 basis points across all three segments. I will now hand back to Daniel to provide an update on the key strategic initiatives and then outlook commentary. Thank you, Andrew, for your insights on the full-year financial results. Now turning to slide eight. As a reminder, our seven strategic pillars, which 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. Turning to slide nine. The elevation of the Michael Hill brand is definitely gaining traction as it continues to evolve into a modern, differentiated, omni-channel jewelry brand. Transitioning our messaging from discount-led promotions to quality and aspirational brand-led campaigns is key to enticing a broader customer base while generating higher ATV and margin growth. Our messaging will continue to highlight our reinvigorated Australian manufacturing division with an emphasis on craftsmanship and local artisans. Our customer-facing messaging will be further enhanced by data and insights from our customer segmentation and personalization programs. Moving on to slide 10. Digital is at the forefront of our transformation with an emphasis on customer experience, product offering, and fulfillment. Following another year of exceptional growth, investment in our highest profit margin channel continues to focus on incremental sales, high conversion rates, and increased transaction value. The digital business achieved record sales of AUD 35 million and is now 6.3% of total sales. Also during the year, we saw the launch of our pure play demi-fine brand Medley. Our early foray into third-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 more digital channels and markets. Our digital business is well-placed with continual growth underpinned by omni-channel offerings, coupled with an elevated focus on conversion rate optimization. On to slide 11. With a portfolio of 285 stores across three countries, bricks and mortar retail is at the core of the Michael Hill business. Our retail fundamental 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. In addition, roster optimization, visual excellence, and increased training continue to be areas of focus for our retail leadership team. The key metrics of ATV, IPS, and conversion all increased in all markets in FY21 and will continue to be key areas of focus. Turning to slide 12. The rollout of our new ERP platform early in FY21 was the enabler for omni-channel at Michael Hill. Across the year, we successfully tested and trialed virtual selling, click and reserve, and ship from store. Pleasingly, 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 trialing new customer channels, these initiatives, together with digital appointments, 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. Moving to slide 13. While the Brilliance by Michael Hill loyalty program is only 18 months old, it has already grown to over 800,000 members. 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. Predictive analytics and increased personalization are being enabled by an investment in data analytics capability and artificial intelligence to deliver further growth in the business. On to slide 14. Product evolution is the foundation of a customer-led retail strategy, and it is critical to continued sales and margin growth. The business will maintain its focus on regular product newness and 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 margin, sorry, 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 innovation while still achieving improved margins. Our entry into the laboratory-grown diamond category continues to gain momentum and deliver significant margin growth. The recently relaunched Sir Michael Hill Designer Bridal Collection, our most premium bridal range, is already showing fantastic results. As we place greater emphasis on the sustainability of our products, we look forward to providing further targeted messaging and insights in the coming months. For our last strategic pillar, turning to slide 15. 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 optimize the global supply chain, improve the global store network, and enhance our credit propositions globally, including the upcoming divestment of our in-house Canadian credit book. Additionally, the new Canadian 3PL facility will be fully operational for peak Christmas trade, servicing both online customers and stores, optimizing inventory, reducing logistics costs, and enhancing overall Canadian productivity and customer experience. Now moving to outlook on slide 16. While the company experienced significant lost sales in the first seven weeks of FY22 due to lockdowns in Australia, strong early performances in Canada and New Zealand contributed to +17% same-store sales for the period and +20% against FY20. These early results further demonstrate the progress and the traction of the brand. However, the increased disruptions in Australia and now New Zealand are significant and concerning in the short term. The company has already lost over 2,700 store trading days during the first seven weeks, resulting in - 2% total store sales for the period, with an estimated impact on earnings of approximately AUD 5 million compared to management expectations prior to the lockdowns. Of course, we continue to prioritize the health and safety of our team members and customers during these challenging times. On a positive note, to support our strategic roadmap and to further advance our digital transformation, I'm delighted to announce the appointment of Keith Louie as our first ever Chief Digital Officer. Keith brings a wealth of retail experience, e-commerce leadership, and digital strategy to the Michael Hill business. His appointment, alongside the recent arrivals of Amy Sznicer, Chief Retail Officer, and Jo Feeney, Chief Marketing Officer, adds significant expertise to our already high-caliber leadership team. Despite the current trading disruptions, we entered FY 2022 with a strong financial position, providing a stable platform to continue our transformation journey, elevate the brand, and further explore new growth opportunities across all channels and markets. That brings us to the end of our presentation. I would once again like to thank you for your continued interest in Michael Hill. We are now happy to take any questions. Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you need to cancel your request, please press the pound or hash key. We will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you need to cancel your request, please press the pound or hash key. Our first question comes from Guy Hooper at Forsyth Barr. Please go ahead. Yeah. Hey, team. Congratulations on a strong result. Maybe I could just start with the outlook commentary. Keen to clarify just what's included in that AUD 5 million impact. What's factored into it? Is it lost days to date or kind of lost days already announced? Morning, Guy. That is effectively actualized lost sales against what we anticipated achieving through those first seven weeks. Effectively, it's the 2,500 lost trading days and the impact that that has on profitability. Okay. Thank you. Y ou've obviously gone through a few lockdowns to date. Has there been consistent pent-up spending when you've exited, or has that started to wane? A fter doing this for 15 months, I think we've got absolutely examples of that, and probably more often than not, that's the case. We definitely do, don't we, Andrew, have examples where regions or stores reopen, and there's a slow rebuild. That certainly happened in some of our earlier lockdowns in Canada last year. I think coming out of the longer, more sustained lockdowns, so Victoria last year and then coming out of the Ontario lockdowns in early July this year, we definitely saw what you're talking to there, pent-up demand, and an energy from our customer to reengage with our brand. Sure. Just on the, digital third-party play mentioned in the release. What does a rollout look like? W hat sort of ambitions do you have for it? There's also, I guess, the mention of new markets as well. Is that for the third-party digital offering or are you talking about taking Michael Hill's kind of online brand into new markets? W e've talked about this before, Guy. That was specifically without calling it out, but that was specifically referenced to our early wholesale trial with an Australian New Zealand-based fashion marketplace called The Iconic. We're moving away from a wholesale relationship, we're in test and trial with them for a fully integrated marketplace model. Effectively, we populate their website with our product from our offer. It's a much broader offer that gets populated to their customers, and that demand then flows back through effectively our online trading platform, then for us to fulfill to the customers. We're pretty excited about that. We had positive good early trials and insights from the wholesale relationship, we're looking forward to rolling that as an integrated model. T he reference to further opportunities is kind of both of what you said. There are obviously digital marketplaces in every country around the world. Just focusing on the countries we already operate in, there are clear leaders in both of those markets outside of Australia, so Canada and New Zealand. We're absolutely interested in exploring those. Once we've built one marketplace integration, it'll be a lot easier for us to then roll that out to other third-party marketplaces. Equally, as we get through the first half of the year and post-Christmas, we do have aspirations for looking at our digital offer outside of the three markets that we currently operate in. Okay, great. Thanks. I'll leave it there for now. Thanks for taking the questions. All right, Guy, I think we're catching up later today anyway. We'll look forward to that. Thanks. Our next question comes from Sam Teeger at Citi. Please go ahead. Hi, Daniel and Andrew. Thanks for the presentation. Of the AUD 15 million in grants you've received in FY 2021, can you talk about the mix between Canada, Australia, and New Zealand? Based on what you're seeing right now, how much do you think you might be receiving in FY 2022? I don't think we break that down publicly, Sam. I think it's fair to say we got slightly more in Australia than the other two markets. As the Canadian lockdowns continued, the Canadian contribution to that number definitely increased through the second half. We are clear that we are getting support from the New Zealand government for this current lockdown. That's about to kick in because we're about to kick into the seventh day of that lockdown, which was a key determiner for that. Canada, we haven't got any lockdowns in FY 2022 thus far. That's, at this point, a moot point. Australia, of course, is no longer a JobKeeper program. It's the disaster payment plan, which is from the government directly to our team members, which we think is a lot cleaner. We obviously are delighted when the government announced that that was a tax-free payment, and that flows directly to our team members in Australia, and we don't get involved in that, which is much simpler and more straightforward. All right, cool. When you talk about entering new markets via the online channel, just be interested in your thoughts in terms of how much you're prepared to invest ahead of the curve in marketing and customer acquisition. Look, I think the reason I said second half for that, Sam, outside of our existing markets, is we need to do the legwork and decide exactly where we want to place those bets. We have, certainly in all three markets today, historically, had a strong tourist trade with our brand, particularly Asian consumers. Our brand does resonate with Asian consumers. That's not to say that's where we'll go first. That's certainly probably one of the priority areas for us to form a view on. At this point, though, probably the next foray will be how do we expand our initial integrated marketplace model into our other existing markets, then after that start to consider markets outside of our three core. Again, more than likely with a digital marketplace play in advance of our own direct-to-consumer play. We think that's probably the best way to avoid significant incremental costs in building brand awareness, use of the third-party marketplace player to help drive that brand awareness. Okay, cool. How should we think about new stores and store closures in each of the three markets over FY22? Hey, Sam, it's Andrew here. Hi Andrew Hi. Look at each of the markets separately. Canada at 86. We're comfortable with that store profile. We'd anticipate hovering in that mid to low 80s. Maybe there's a couple that close. New Zealand, we're very comfortable with the 49. Each of those stores is profit-making. There's some new opportunities that we're exploring. That may be a relocation, or it may just be an incremental one or two. We're pretty happy that we've well and truly saturated that market there with our premium brand level. In Australia at 150, there continue to be stores that we're monitoring. Might we see three to five closures of Australian stores that are borderline? Perhaps. Obviously, the disruptions at the moment are not the right time to be making those decisions. We would ordinarily be trading through Christmas in any store, as it's the most profitable portion of the year. I'd just build on that, Sam, that the whole business has lifted significantly across the last couple of years. Yes, online's been a key plank of that growth. It is still a small part of our business. Our stores are lifting in all markets. Stores that maybe one year ago or 18 months ago might have been seen as marginal, have effectively lifted and in most cases, pulled themselves out of that. I think Andrew's right. We're probably towards the end of that now in Australia. We're comfortable with 145-150. As Andrew says, in fact, in both Canada and New Zealand, there are probably three or four other new store opportunities that we're considering. Now is not the time for that. Got it. Yeah, that's clear. When you talked about the AUD 5 million impact to date in this financial year, to what extent are you starting to discount to drive sales? Well, it's funny you should ask that. Our answer to that is the complete opposite. We are delivering higher margin in Q1 this year, than we were in Q1 last year. We are sticking to our strategy, focused on elevating our brand, and having successes, in continuing to increase margins. We are absolutely not driving promotions to drive those comp sales that we just talked about. Those comp sales are really the continued elevation of our brand connection with the customer, our loyalty program and customer segmentation strategies really kicking in. We are not using promotions to drive those same-store sales growth. If anything, our margins are ahead of same time last year. Oh, that's good. Just on the margins, with this marketplace strategy you're pursuing, it's clear you're going to be making more money from it, but potentially there's a margin headwind as you've got to pay The Iconic and other marketplaces. Do we see that at the gross margin or the EBIT margin level? Can you roughly talk about how much you're going to give away? We've done some pretty lengthy modeling on this, as you'd expect, and we really don't anticipate it diluting our digital margin. That's certainly our view at this point. We're going to manage the product mix accordingly. As you know, we've got a very, very wide variety of margins across different product categories at Michael Hill. By using product mix and offer, we can effectively mitigate any loss of margin by picking up that incremental channel. We're pretty confident it won't have an impact on digital. If it does, it'll be a minor impact, but we're not anticipating that at this point. Right. Would we see that at the gross or EBIT margin? Gross. Okay. Thank you. All right, Sam. Thank you. Chat later. Our next question comes from Paige Hennessy at ACC. Please go ahead. Hi, guys. Just a couple of questions from me. First of all, as the lockdowns extend in Australia, are you seeing any willingness from the landlords to provide a rent relief this time around? A good question, Paige. I think the word willingness is an interesting choice of words when it refers to landlords. We are certainly in some significant discussions with all our major landlords, and we are confident that we will find mutually acceptable outcomes. Yeah. Okay. Thank you. I know you've only had seven weeks in Canada, but are you seeing the sales strength strong all the way through, or has that been accelerating as we get out into the quarter? Probably getting slightly stronger as we go, to be honest. It came out strongly in early July, I think we've increased margin, we increased momentum. We're probably at the last three or four weeks at a sustained level, certainly weeks four to seven, we're probably slightly ahead of weeks one to three. Look, we've always maintained, Paige, as you know, that there's a productivity opportunity in Canada. We've done a lot of work there on the leadership team. In fact, we've done a lot of work on the whole team there. We've done significant work about a year ago to really get everything set for when the business fully reopens. We're delighted by the sales results, they are the sorts of results that the market has owed us. I've long said analysts and investors, the Canadian market owes us another 15%, 20%, 25% in productivity. We're starting to see that, which is great. Okay. Thank you. On terms of Canada, the distribution facility, the logistic cost, is that a short-term saving what with the COVID impacts as well? Andrew, do you want to take that as it's near and dear to your heart? Very near and dear to my heart. There's a few aspects to it, Paige. At the moment, we replenish our stores in Canada and an e-commerce customer from Australia. If you imagine as a Canadian consumer, it's a 10-day, two-week sort of wait for product. Launching this in market takes us to a two-day turnaround on orders, so a very different customer experience for the online shopper, but also in terms of the speed at which we return inventory to a store at that two-day mark. There's definitely a customer experience piece there. What the reshaping of the supply chain also means is taking product directly into Canada. We derive an upfront benefit on the freight costs and the duty costs and related things. It lets us access different taxation treatments on the way in there of importing those products. It'll be a run rate thing that will be enduring. Paige, think about that point Andrew made about next day or two-day replenishment to stores. On key volume lines that we often, certainly at the higher end of the price range, may only have one of those items in any store. The fact that it wouldn't have had that best-selling item for 10 days previously, they're going to have an extra week of that stock being in their stores, it does provide incremental selling opportunity as well. It's not just a cost and a customer experience story. It's also an incremental sales expectation. Thanks, guys. One last question from me. In terms of your inventory levels, are you guys still comfortable with the Australian, New Zealand lockdowns, and are you also comfortable going into Christmas? Yeah, absolutely. We did a lot of work with the key suppliers in India in particular, to make sure we had the volumes coming through that we require for Christmas. Our product doesn't age, it doesn't go off, it doesn't drop out of season. Because we do have deep relationships with those Indian suppliers, there's some flexibility that we can build into those to lift and drop orders or perhaps re-phase as we require. Yes, there's some lockdowns in the moment in Australia and New Zealand, but we're comfortable that we can manage through inventory levels, I guess getting that balance right, having enough for peak Christmas, but not over committing on the profile in the short term. All right. Cheers. Thanks for that, guys. Thanks, Paige. Thanks, Paige. Our next question comes from Bruce McLeary from Burrell Stockbroking. Please go ahead. Morning, Daniel, Andrew. Congratulations on the result. Just one question from me. As regards to the digital sales, significant growth percentage-wise year on year. Just wondering, one, is there a particular region that's leading that growth? Also, I guess secondly, have you got a target in mind in regards to percentage of sales that your digital can get to over the next couple of years? Thanks. Morning, Bruce. Good question. I'd say all three markets are growing at significantly positive rates. Australia may be slightly ahead because that is the market we tend to test and trial a lot of our omni initiatives. Ship from store and click and reserve and virtual selling were pioneered first in, I guess, our home market. That would put them slightly ahead. Generally, all three markets are showing significant growth. Obviously, lockdowns up and down change the profile of growth. Of course, in FY 2020, we lost 20,000 trading days. Again, we were comping, the most unbelievable digital sales in Q4 last two years ago. That kind of led to our view that we were really thrilled with the outcome this year. The second part of your question. Look, we have an aspiration to get north of 10% in the next couple of years as a percent of sales. We're on track for that. Is our long-term to be 15%, maybe even 20%? Yes. We also have a huge belief because of the product category we operate in and the price point we operate at, that stores are much more valuable to our future than maybe they are to, say, a fashion business. Our average transaction values are 3x, 4x, 5x that of fashion businesses. Customers, in many cases, when they certainly want to go through those romantic purchases, they want to do them in store. They want to meet a diamond expert. It's often a number of appointments that they go through. Yes, they definitely do their research online. We see a huge amount of our in-store sales now coming from digital. We see bricks and mortar having a very, very significant place in our business now and in the future. Okay. Thanks. That's all I've got at this stage. Thanks, Bruce. Thank you. Once again, if you wish to ask a question, please press star one on your telephone. Our next question comes from Andrew Ott, who's a private investor. Please go ahead. Good morning, guys. Congratulations, well from me on the result, and thank you for this presentation. Just a question on if you could just expand on your roster optimization and the new retail incentive scheme. Are those actually in place across your store network, and are you able to give any quantification as to how that would be helping on the margins? I'll do incentives second, Andrew, and come back to roster optimization. Our new incentive scheme, we trialed across the second half of FY 2020, in a gradually increasing number of stores. I think, Andrew, when we first tested it, we did 30 odd stores. We grew it to 50 or 60 and got it to 100. We were about to press the button on rolling that out worldwide, and along came COVID 1.0, let's call it. We pressed pause. We relaunched it effectively at the start of FY21. It moves us away from a, if you like, single focus on sales to a Balanced Scorecard model, with a much greater emphasis on margin. I think it's fair to say, a lot of our retail, KPIs are included in that Balanced Scorecard, and you can see the results of that broad focus coming through in these results. We know it's delivering increased margin as well as increased sales, and we know that it's doing that through driving a greater focus on key retail KPIs. It's in all stores. It's been in all stores for the full year. We can obviously continue to refine it. We're very happy with the important role it plays in our retail business. On roster optimization, I think in the second half of FY21, we rolled out a new traffic counter methodology from a business called Kepler Analytics. It uses GPS mobile phone technology to track the foot traffic through your stores, unlike the old traditional click as someone walks across your lease line. This allows us to put a much greater level of clarity on our customer traffic into our stores, because we can exclude people that literally are just in the store for 15 or 30 seconds. We can analyze and do a deep dive on how many customers are in there for over half an hour, and you can naturally assume those customers are probably bridal customers because of the length of their transaction. We've got this new traffic data that's relatively new in our business. Some stores completed rolling out around the start of Q4. That data is incredibly rich, and I would call it the missing piece in our roster optimization puzzle. As our retail leadership team become increasingly familiar with that, as the patterns evolve, we're able to apply a much greater level of science to how we roster. This is not about taking labor out. Let me be clear, because labor is something we hold very near and dear at Michael Hill. We're a highly focused one-on-one sales business. This is about optimizing labor so we've got the right labor, the right salespeople on at the right time of day and the right day of the week to maximize sales and efficiencies for the business. More to come in FY 2022 as we really get our arms around the benefits of that. Thank you for that, and that's all from me. Thank you, Andrew. Tara, it looks like we've done all the questions. Do you just want to check if there's any last? Oh, no. Looks like one might be back. We have a follow-up question from Sam Teeger at Citi. Please go ahead. T hanks. Hello. Just a quick follow-up. Regarding corporate costs, so in FY21, it was around AUD 44 million. How should we think about this in FY22, given you've added a couple of new management roles? Andrew, do you want to comment? My view is our corporate costs will broadly hold flat through the year. We're constantly evolving our organization model to reflect the changing demands of our customer and our strategy, Sam. Andrew? Yeah. I think, that's the intent, Sam Teeger. It's one incremental executive role, but with a deliberate focus on digital, which is at the core of our growth and has that deliberate and quite direct payback on it. I think our intent would be to be looking to hold flat on corporate. All right. Can I just explore the comment Daniel made earlier in terms of landlords, in terms of what's acceptable? From your perspective, is an abatement or a deferral more acceptable? I guess if it's an abatement, should we expect that this comes with lease extensions? Yeah, good question. I think it's fair to say, a lot of those negotiations have got a bit of a pause pressed on them right now. Both retailers and landlords are waiting to see how long this runs for, Sam. Our anticipation would obviously, and our preference would obviously be towards abatements, and not towards deferrals. Obviously our ambition and preference would be not to tie them into tenure. Look, these are commercial discussions as you know. It ultimately ends up as a store-by-store question. We do have a number of stores, again as you know, coming up every year that are in holdover. It's how we use our cards and play our cards best to get the best possible outcome, both across tenure, and in the short term across rebates. I t will follow a similar profile to how it has thus far through the pandemic, would be my view. Got it. All right, thanks and good luck. Thanks, Sam. Tara, do you want to just give everyone one more chance? Certainly. Just a reminder before we do wrap up, it is star one to ask a question. Okay. All right. Thank you all once again for dialing in. Thanks also for your ongoing support of the Michael Hill business and interest in the Michael Hill business. For those that we're chatting to over the next days and weeks, look forward to more detailed conversations. Other than that, thank you for dialing in, and have a good day. Thank you. Thank you very much. This does conclude our conference for today, thank you all for joining. You may now disconnect.