Page 1

michael hill . INTERNATIONAL LIMITED ASX AND NZX ANNOUNCEMENT STRONG PERFORMANCE CONTINUES Trading Update 15 July 2021 Michael Hill International Limited ( ASX / NZX : MHJ ) is pleased to provide its trading update for the year ended 27 June 2021 . KEY POINTS • • • Continued growth in quarterly same store sales – For the quarter , same store sales were up 7.5 % against prior year , and up 116.3 % on an all store sales basis . Solid full year sales - Same store sales for the year were up 8.6 % against prior year , and up 10.0 % against FY19 . Despite 10,447 lost store trading days , all store sales were up 13.5 % for the year , with Australia and New Zealand also exceeding FY19 all store sales for the year , even with significant store closures . Strong margin maintained - Recently experienced margin improvement has held through the fourth quarter across all markets , as margin enhancing strategic initiatives are further embedded . • Significant EBIT growth on track - The Company anticipates full year EBIT to be in line with or above analysts expectations . For personal use only • - Record digital sales – Full year sales were up 51.1 % . For the first time , digital sales exceeded $ 30m , representing a record 6.2 % of full year sales ( FY20 : 5.0 % ) . • Brilliance by Michael Hill - Loyalty program membership now exceeds 750,000 ( FY20 : ~ 200,000 ) . • Balance sheet strength - Strong business performance and disciplined inventory management , coupled with an unwavering focus on costs , saw a year end net cash position of ~ $ 70m . • Store portfolio management - One new store was opened and four under - performing stores were permanently closed during the quarter , with a network total of 285 stores across all markets at year end ( FY20Q4 : 290 ) . Global Store Network Update In relation to performance by market and temporary store closures : Australia : For the quarter , same store sales were up 8.7 % and all store sales were up 100.1 % . Across the country , 102 stores were impacted by temporary closures for the quarter , resulting in 559 lost store trading days . At year end , of the 150 Australian stores ( FY20Q4 : 155 ) , 30 NSW and 2 NT stores were temporarily closed . New Zealand : For the quarter , same store sales were up 15.7 % and all store sales were up 129.9 % . At year end , there were 49 stores trading ( FY20Q4 : 49 ) . Canada : For the quarter , same store sales were down 7.6 % and all store sales were up 173.0 % . For the majority of the quarter , 40 Canadian stores were temporarily closed , representing a significant loss of 3,323 store trading days . It should also be noted that open stores were impacted by government - mandated restrictions . By early July , all 86 Canadian stores were open and trading ( FY20Q4 : 86 ) . Temporary store closures across all three jurisdictions resulted in 6,738 lost store trading days for the second half , totaling 10,447 days for the year . The first few weeks of FY22 saw further disruption , with QLD ( 24 ) , WA ( 20 ) and NT ( 2 ) stores impacted by short lockdowns , and with 30 NSW stores remaining temporarily closed . As of today , there are an additional 34 stores temporarily closed in VIC . Commenting on the result , Michael Hill International Limited , CEO and Managing Director Daniel Bracken said : " I'm very pleased with our Q4 results - sales growth in all markets , increased margins , and an outstanding performance from our bricks and mortar stores delivering almost 20 % same store sales growth for the quarter . Setting aside the global store network closure in 2020 , Michael Hill has now delivered eight consecutive quarters of positive comp sales growth , together with sustained margin expansion .