Half Yearly Report and Accounts

MICHAEL HILL INTERNATIONAL LIMITED
ABN 25 610 937 598
APPENDIX 4D
RESULTS FOR ANNOUNCEMENT TO THE MARKET
FOR THE HALF-YEAR ENDED 26 DECEMBER 2021
REPORTING PERIOD
Reporting period:
Previous reporting period:
RESULTS FOR ANNOUNCEMENT TO THE MARKET
$'000
Revenue from contracts with customersUp2.3%to327,110
Earnings before interest and taxation (EBIT)*Down(1.9%)to55,814
Net profit after tax for the period attributable to membersDown(1.2%)to37,136
DIVIDENDS
Amount per
security
Franked
amount per
security
Interim dividend for financial year ended 26 June 2022 (cents per share)*3.5-
Interim dividend for financial year ended 27 June 2021 (cents per share)1.5-
NET TANGIBLE ASSETS
AS ATAS AT
26 December27 December
20212020
RESTATED
1
Net tangible asset backing per ordinary security$0.49$0.44
COMPLIANCE STATEMENT
Chair
22 February 2022
Net tangible assets were calculated including the Group's right-of-use assets and lease liabilities recognised under AASB16
Leases.
*EBIT is non-IFRS information and is unaudited. Please refer to non-IFRS information in the Directors' Report for an explanation of non-IFRS information.
28 June 2021 to 26 December 2021
29 June 2020 to 27 December 2020
R. I. Fyfe
Brisbane
*On 22 February 2022, the directors of Michael Hill International Limited declared an interim dividend for the period ended 26 December 2021. The record
date for determining entitlements to the dividend is 11 March 2022 and payment date is 25 March 2022. There is no dividend reinvestment plan in operation
for Michael Hill International Limited.
This report should be read in conjunction with the annual report for the year ended 27 June 2021 and any public announcements made by
Michael Hill International Limited in accordance with the continuous disclosure requirements arising under the Corporations Act 2001
(Cth), ASX Listing Rules and NZX Listing Rules.
The report is based on accounts which have been reviewed by the auditor of Michael Hill International Limited. There have been no
matters of disagreement and a report of the auditor's review appears in the half-year financial report.
Your directors present their report on the consolidated entity consisting of Michael Hill International Limited and the entities it controlled
at the end of, or during, the half-year ended 26 December 2021.
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements. Refer
to note 13(B) of the financial statements for details.
APPENDIX 4D 26 DECEMBER 2021 MICHAEL HILL GROUP

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.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP

MICHAEL HILL INTERNATIONAL LIMITED
ABN 25 610 937 598
DIRECTORS' REPORT AND FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 26 DECEMBER 2021
TABLE OF CONTENTS
CORPORATE DIRECTORY
1
DIRECTORS' REPORT
2
AUDITOR'S INDEPENDENCE DECLARATION
6
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
9
CONSOLIDATED STATEMENT OF CASH FLOWS
10
NOTES TO THE FINANCIAL STATEMENTS
11
DIRECTORS' DECLARATION
17
INDEPENDENT AUDITOR'S REVIEW REPORT
18
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP

MICHAEL HILL INTERNATIONAL LIMITED
CORPORATE DIRECTORY
DIRECTORS
R I Fyfe
B.Eng, F.E.N.Z.Chair
Sir R M Hill K.N.Z.M.
E J Hill B.Com., M.B.A.
G W Smith B.Com., F.C.A., F.A.I.C.D.
J E Naylor
D Bracken
COMPANY SECRETARIES
A Lowe
BCom, LLB (Hons), MAppFin, CA, CTA
PRINCIPAL REGISTERED OFFICE IN AUSTRALIA
Metroplex on Gateway
7 Smallwood Place
Murarrie QLD 4172
Australia
Telephone +61 7 3114 3500
Fax +61 7 3399 0222
SHARE REGISTRAR
Computershare Investor Services Pty Ltd
Level 1
200 Mary Street
Brisbane QLD 4000
1300 552 270 (within Australia)
+61 3 9415 4000 (outside of Australia)
AUDITOR
Ernst & Young
Level 51
111 Eagle Street
Brisbane QLD 4000
SOLICITOR
Allens
Level 26
480 Queen Street
Brisbane QLD 4000
BANKERS
Australia and New Zealand Banking Group Limited
ANZ Banking Group (New Zealand) Limited
HSBC Australia Limited
Bank of Montreal
Bank of America
WEBSITES
www.michaelhill.com.au
www.michaelhill.co.nz
www.michaelhill.ca
www.michaelhill.com
www.medleyjewellery.com.au
http://investor.michaelhill.com
EMAIL
online@michaelhill.com.au
E Bird LLB (Hons), BA (Psych), GradDipLegalPrac,
GradDipAppCorpGov
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 1

MICHAEL HILL INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE HALF-YEAR ENDED 26 DECEMBER 2021
DIRECTORS
R I Fyfe
Sir R M Hill
E J Hill
G W Smith
J E Naylor
D Bracken
PRINCIPAL ACTIVITIES
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
REVIEW OF OPERATIONS
Key Financial Results
•
•
•
•
•
•
•
•
Operational Performance
•
•
•
•
•
•
The following persons were directors of Michael Hill International Limited during the financial period and up to the date of this report:
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements. Refer to
note 13(B) for details.
The directors present their report on the consolidated entity (referred to hereafter as the ‘Group’) consisting of Michael Hill International
Limited ACN 610 937 598 (‘Michael Hill International’ or the ‘Company’) and all controlled subsidiaries for the half-year ended 26 December
2021.
The Group operates predominately in the retail sale of jewellery and related services sector in Australia, New Zealand and Canada.
Information on likely developments in the Group’s operations and the expected results of operations have been included in the Operational
Review and Strategic Update sections of this report.
Statutory net profit after tax was $37.1m (FY21H1: $37.6m (Restated¹)).
9,777 lost store trading days across all markets for the half, due to government mandated store closures (FY21H1: 3,709).
Stable store network of 285 stores across all markets with no stores opened or closed for the half.
Gross margin grew by 240 bps to 65.1% for the half (FY21H1: 62.7%, FY20H1: 61.7%) and by 340 bps over the two year period, proving the
Company’s brand elevation strategy and ongoing focus on margin expansion continues to deliver.
As a result of Government mandated lockdowns, the Michael Hill global store network suffered 9,777 lost store trading days (FY21H1: 3,709),
representing ~20% of store trading days for the half. Despite the ongoing impacts of the global pandemic, the Company experienced strong
growth of 11.4% in same store sales and an increase of 2.3% of group revenue to $327.1m for the half (FY21H1: $319.9m). This performance
was a credit to our teams and the culmination of our ongoing focus on retail fundamentals, digital initiatives, and a strong brand-led
marketing Christmas campaign as the elevation of the Michael Hill brand continues.
Loyalty program
Brilliance by Michael Hill exceeded 1 million members.
There have been no significant changes in the nature of the Group's activities during the 26 week period ending 26 December 2021.
Agile inventory management with stable and reliable supply chain arrangements delivered a healthy closing balance of $175.8m
(FY21H1: $170.6m).
Interim dividend payment of AU3.5 cents per share, unfranked and fully imputed with conduit foreign income.
Digital sales increased by 37% to $26.7m, representing 8.2% of revenue for the half (FY21H1: 6.3%, FY20H1: 2.8%).
Click & collect went live for Christmas in all markets as part of the Group's customer-led digital strategy.
Group comparable EBIT increased by 15.5% to $51.6m (FY21H1: $44.6m, FY20H1: $31.6m).
Group same store sales were up 11.4% to $306.5m (FY21H1: $275.0m).
Operating revenues increased by 2.3% to $327.1m (FY21H1: $319.9m), despite losing ~20% of store trading days.
Gross margin increased by 240 bps to 65.1% (FY21H1: 62.7%, FY20H1: 61.7%).
Strong working capital management resulted in a closing net cash position of $99.1m (FY21H1: $90.3m).
New Canadian 3PL distribution centre opened, further demonstrating the focus on supply chain excellence.
The Group's reported statutory earnings before interest and tax (EBIT*) was $55.8m for the half year ended 26 December 2021. Comparable
EBIT* was up 15.5% to $51.6m for the half (FY21H1: $44.6m), and up 63.1% over the two year period, resulting from both sales and margin
ex
pansion.
*EBIT and Comparable EBIT are non-IFRS information and are unaudited. Please refer to non-IFRS information section in this report for an explanation of non-
IFRS information and a reconciliation of EBIT and Comparable EBIT.
The Group achieved the following key outcomes for the half year ended 26 December 2021:
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 2

SEGMENT RESULTS
Australian Retail PerformanceHALF-YEAR ENDED
26 December27 December
OPERATING RESULTS (AU $'000)
20212020
161,486 175,145
104,538 107,582
64.7%61.4%
33,50535,298
20.7%20.2%
New Zealand Retail PerformanceHALF-YEAR ENDED
26 December27 December
OPERATING RESULTS (NZ $'000)
20212020
67,030 69,309
42,534 42,331
63.5%61.1%
18,58619,082
27.7%27.5%
Canada Retail PerformanceHALF-YEAR ENDED
26 December27 December
OPERATING RESULTS (CA $'000)
20212020
92,99775,231
60,10346,265
64.6%61.5%
22,19611,987
23.9%15.9%
Gross margin
Gross margin for the half increased by 240 bps to 63.5% (FY20H1: 61.1%), as the business continued to elevate the brand and reduce the
focus on promotions.
Revenue
Gross margin
Gross margin as a % of revenue
Gross margin as a % of revenue
Comparable EBIT
As a % of revenue
In Australia, same store sales increased by 6.4%, but government mandated lockdowns saw the retail segment revenue decline by 7.8% to
$161.5m for the half. During the half, temporary store closures across Victoria, South Australia, ACT and New South Wales resulted in the
Australian segment losing 7,505 store trading days (FY21H1: 2,567), ~27% of the store trading days for the half. Additionally, four under-
performing stores have been permanently closed, when compared to the first half of the prior year.
Gross margin for the half increased by 310 bps to 64.6% (FY21H1: 61.5%).
Revenue
Comparable EBIT
In New Zealand, same store sales increased by 14.8%. However, due to government mandated lockdowns, the retail segment revenue
declined by 3.3% to NZ$67.0m for the half. During the period, lockdowns resulted in 2,138 lost store trading days (FY21H1: 304), ~24% of the
store trading days for the half. The lift in sales productivity was driven by a significant focus on increasing average transaction value and
conversion rates in the period.
Revenue
Gross margin
Gross margin as a % of revenue
Comparable EBIT
Pleasingly, the Company’s omni-channel strategy saw the launch of click & collect in all markets for the all-important Christmas trading
period. In the last eighteen months, the Company has rolled out a number of customer-led omni-channel offerings comprising click &
reserve; digital appointments; virtual selling; ship from store; and most recently click & collect.
During the half, the business opened its Canadian 3PL distribution centre in Ontario, creating a cost-efficient flow of inventory from vendors,
improving speed of delivery to customers and ensuring reliable continuity of supply and optimal stock levels. The opening of this facility has
reinforced our already stable and reliable global supply chain which is built on a strong foundation of long-standing vendor relationships,
together with our in-house Australian manufacturing facility.
Gross margin for the half increased significantly by 330 bps to 64.7% (FY21H1: 61.4%), as the business benefited from investments in loyalty,
digital and personalised marketing.
At half year end, there were 150 stores trading (FY21H1: 154).
At half year end, there were 49 stores trading (FY21H1: 49).
The global store network remained stable for the half, with 285 stores at 26 December 2021.
As a % of revenue
At the end of the half, the Company had nil bank debt and a cash position of $99.1m (FY21H1: $90.3m), reflecting a continued focus on costs
and strong working capital management.
The operational segments below reflect the performance of the Group's retail operations in each geographic segment. The segments
include trading activity from our online channels presence and our Canadian in-house credit function. The segments exclude revenue and
expenses that do not relate directly to the relevant retail segments, and are treated as unallocated. These predominately relate to corporate
costs and Australian based support costs, but also include the manufacturing activities, warehouse and distribution, interest and company
tax.
The results below are expressed in local currency.
As a % of revenue
In Canada, same store sales increased by 13.8% and retail segment revenue increased by 23.6% to CA$93.0m for the half, a record first half
revenue for Michael Hill Canada. These stellar results were underpinned by the Company’s strategies across brand, digital, loyalty, product
and operational excellence, as well as a heightened focus on productivity, leadership and retail fundamentals within the Canadian segment,
which has seen Canadian profitability levels lift to Australian and New Zealand standards. During the period, lockdowns resulted in 134 lost
store trading days (FY21H1: 838), ~1% of the store trading days for the half.
At half year end, there were 86 stores trading (FY21H1: 86).
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 3

STRATEGIC UPDATE : EMPHASIS ON GROWTH AND MARGIN
1.
2.
3.
4.
5.
6.
7.
NON-IFRS FINANCIAL INFORMATION
•
•
•
•
•
Given the current strength of the balance sheet, the Company has undertaken a captial management review. This review incorporates
the release of a new dividend policy, with a view to providing a consistent dividend that aligns with the Company's growth profile. In
addition, consideration has been given to the Group's capital requirements for organic growth and investment opportunities. It is noted
the Company is actively exploring a number of investment opportunities across the jewellery sector.
Much of the Company’s strong first half performance can be attributed to the strategic transformation of the brand, with an emphasis on
sales and margin growth. The strategic framework has evolved and continues to underpin future growth for the business.
The Company’s increased focus on the Michael Hill brand and
Brilliance by Michael Hill loyalty program are resonating with customers,
delivering results and gaining traction in the market. This is best evidenced by increasing ATV, margin expansion, increasing frequency
of loyalty member purchasing and larger basket sizes. Both brand and loyalty are key to driving medium to long term sustainable
growth in both sales and margin for the group.
Michael Hill digital platforms delivered another strong performance with increased traffic and higher conversion, and now represent
over 8% of total company sales. The successful deployment of click & collect enhanced our omni-channel capabilities as the Company
continues its customer-led digital transformation journey. Customers embraced these new service offerings in the key Christmas
trading period, driving incremental sales and meeting the needs of our purposeful modern-day consumer. Additionally, the Company is
continuing to evolve its marketplace strategy across its three core markets and is introducing new payment platforms to suit the needs
of our customers.
Product evolution is at the centre of a customer-led retail strategy, and is critical to achieve sales and margin growth. Laboratory
grown diamonds are gaining momentum in the business, delivering increased quality and higher margins while providing customers
with a certified Sustainable and Climate Neutral choice. Elevated quality and craftmanship are essential to our aspirational brand
journey, and this will be delivered through the evolution of our supply chain, and further investment in the artisanal capabilities of our
Australian manufacturing facility. The Company’s ongoing focus on product mix continues to be a key enabler for sustained margin
expansion. Product newness is critical to achieve higher inventory turn and frequency of purchase, which most recently has seen the
successful relaunch of our Sir Michael Hill Designer Bridal collection, our most premium range.
With the transformation program now well established in the business, the opportunity to stretch the brand into new territories, markets
and services is now being explored. The Company is conducting the appropriate market analysis to evaluate new territories that are
most suitable for the Michael Hill Brand to enter via marketplace and dot.com channels. To drive incremental revenue streams, new
service offerings with a focus on sustainability, underpinned by a new digital eco-system are under consideration.
Our cost conscious culture is relevant to every facet of our business and has been critical to the success of the Company navigating
the global pandemic. Our new Canadian 3PL distribution centre is delivering an improved customer experience and incremental
financial benefits for the business. Strong landlord partnerships have always been important to our business but never more so than
during a global pandemic. Significant improvements have been made in our consumer credit offerings in all markets and we will
continue to access new customers, in new channels, on a lower cost base, in what is increasingly a highly competitive segment
undergoing significant structural disruption, which presents additional opportunities going forward.
This report contains certain non-IFRS financial measures of historical financial performance. Non-IFRS financial measures are financial
measures other than those defined or specified under all relevant accounting standards. The measures therefore may not be directly
comparable with other companies' measures. Many of the measures used are common practice in the industry in which the Group operates.
Non-IFRS financial information should be considered in addition to, and is not intended to be a substitute for, or more important than, IFRS
measures. The presentation of non-IFRS measures is in line with Regulatory Guide 230 issued by Australian Securities and Investments
Commission (ASIC) to promote full and clear disclosure for investors and other users of financial information, and minimise the possibility of
those users being misled by such information.
Significant item
Brand & Loyalty
Digital and Omni-channel
Retail Fundamentals
Product Evolution
New Territories & Services
Cost Conscious Culture
Capital Management
Same store sales reflect sales through store and online channels on a comparable trading day basis
Earnings before interest and tax (EBIT)
Comparable EBIT excludes the impact of AASB16
Leases and IFRIC SaaS guidance, and normalisations for wage subsidies
The measures are used by management and directors for the purpose of assessing the financial performance of the Group and individual
segments. The directors also believe that these non-IFRS measures assist in providing additional meaningful information on the drivers of
the business, performance and trends, as well as the position of the Group. Non-IFRS financial measures are also used to enhance the
comparability of information between reporting periods by adjusting for non-recurring or controllable factors which affect IFRS measures, to
aid the user in understanding the Group's performance. Consequently, non-IFRS measures are used by the directors and management for
performance analysis, planning, reporting and incentive setting. These measures are not subject to audit.
The non-IFRS measures used in describing the business performance include:
Earnings before interest, tax, depreciation and amortisation (EBITDA)
With more than 90% of Company sales from the store network, our focus on retail fundamentals sits at the core of the Michael Hill
transformation strategy. An unwavering focus on people and performance, operational excellence, visual presentation and effective
labour management underpin our retail initiatives. Elevating the customer experience in our stores will continue to be a priority for the
business, the success of which is best evidenced by continued improvement in productivity, comparative store sales and margin
expansion. A new senior leadership structure is now firmly in place across all markets and delivering strong results.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 4

DIVIDENDS
AUDITOR'S INDEPENCE DECLARATION
ROUNDING OF AMOUNTS
Chair
R. I. Fyfe
Brisbane
22 February 2022
The Board has updated and released to market the Company’s Dividend Distribution Policy, which establishes a target range for dividends
of 50% to 75% of adjusted annual NPAT. In updating the Policy, the Board has also introduced greater flexibility on weightings between
interim and final dividends, given the seasonal nature of the Company’s earnings.
This report is made on 22 February 2022 in accordance with a resolution of directors.
A copy of the auditor's independence declaration as required under section 307C of the
Corporations Act 2001 (Cth) is included in this
report.
The Company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the 'rounding off' of amounts in the financial
statements. Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest thousand dollars,
or in certain cases, the nearest dollar.
After taking into consideration first half earnings, current sales performance trend and the strength of the balance sheet, the Board has
declared an interim dividend of AU3.5 cents per share (FY21H1: AU1.5 cents per share) unfranked, fully imputed with conduit foreign income.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 5

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
GPO Box 7878 Brisbane QLD 4001
Tel: +61 7 3011 3333
Fax: +61 7 3011 3100
ey.com/au

Auditor’s independence declaration to the Directors of Michael Hill
International Limited
As lead auditor for the review of the half-year financial report of Michael Hill International Limited for
the half-year ended 26 December 2021, I declare to the best of my knowledge and belief, there have
been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review;
b. No contraventions of any applicable code of professional conduct in relation to the review; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the review.
This declaration is in respect of Michael Hill International Limited and the entities it controlled during
the financial period.



Ernst & Young




Kellie McKenzie
Partner
22 February 2022

HALF-YEAR ENDED
26 December27 December
20212020
NOTES$'000$'000
RESTATED
1
Revenue from contracts with customers2327,110 319,884
Other income32,951 17,239
Cost of goods sold(114,188)(119,400)
Employee benefits expense(75,340)(79,210)
Occupancy costs(4,894)(11,374)
Marketing expenses(23,426)(17,131)
Selling expenses(9,330)(9,443)
Impairment of property, plant and equipment6(53)(1,214)
Impairment of other assets(457)(349)
Depreciation and amortisation expense(25,958)(24,186)
Loss on disposal of property, plant and equipment- (23)
Other expenses(20,601)(17,905)
Finance expenses(3,739)(3,760)
Profit before income tax52,075 53,128
Income tax expense(14,939)(15,554)
Profit for the half-year37,136 37,574
Other comprehensive income
Item that may be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedges- 34
Currency translation differences arising during the half-year(1,647)(2,290)
Other comprehensive income for the half-year, net of tax(1,647)(2,256)
Total comprehensive income for the half-year35,489 35,318
Total comprehensive income for the half-year is attributable to:
Owners of Michael Hill International Limited 35,489 35,318
Earnings per share for profit attributable to the ordinary equity holders of the Company:
centscents
RESTATED
1
Basic earnings per share9.56 9.69
Diluted earnings per share9.44 9.67
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements.
Refer to note 13(B) for details.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 7

AS ATAS ATAS AT
26 December27 December27 June
202120202021
NOTES$'000$'000$'000
RESTATED
1
RESTATED
1
ASSETS
Current assets
Cash and cash equivalents99,138 90,315 72,361
Trade and other receivables510,741 27,861 8,352
Inventories175,753 170,612 171,246
Assets held for sale517,733 - 14,397
Current tax receivables- 2,011 732
Contract assets2886 718 406
Other current assets4,188 2,911 3,576
Total current assets308,439 294,428 271,070
Non-current assets
Trade and other receivables - 7,228 -
Right-of-use assets4113,944 112,841 105,882
Property, plant and equipment40,178 37,647 36,453
Intangible assets8,654 3,981 6,013
Deferred tax assets66,036 70,088 68,329
Contract assets 2599 865 739
Other non-current assets854 487 537
Total non-current assets230,265 233,137 217,953
Total assets538,704 527,565 489,023
LIABILITIES
Current liabilities
Trade and other payables586,133 95,268 73,961
Lease liabilities435,735 33,411 34,304
Contract liabilities225,194 25,585 24,157
Provisions813,752 26,949 14,854
Liabilities directly associated with assets held for sale51,401 - 1,607
Current tax liabilities7,800 1,371 1,886
Deferred revenue521 541 753
Total current liabilities170,536 183,125 151,522
Non-current liabilities
Lease liabilities 4104,787 107,229 99,382
Contract liabilities 258,579 55,565 56,393
Provisions 86,565 7,074 7,413
Total non-current liabilities169,931 169,868 163,188
Total liabilities340,467 352,993 314,710
Net assets198,237 174,572 174,313
EQUITY
Contributed equity911,388 11,204 11,285
Reserves2,498 2,194 4,216
Retained profits184,351 161,174 158,812
Total equity198,237 174,572 174,313
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements.
Refer to note 13(B) for details.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 8

NOTES
CONTRIBUTED
EQUITY
SHARE BASED
PAYMENTS
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
PROFITS
TOTAL
EQUITY
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 29 June 2020
11,016
697
3,757
(34)
138,370
153,806
Accounting policy change - SaaS implementation costs
1
- - (1)
- (14,770)
(14,771)
Restated total equity as at 29 June 2020
11,016
697
3,756
(34)
123,600
139,035
Profit for the half-year
1
- -
- - 37,574
37,574
Currency translation differences
-
-
(2,290)
-
-
(2,290)
Derivative fair value changes
- -
- 34
- 34
Total comprehensive income for the half-year
-
-
(2,290)
34
37,574
35,318
Transactions with members in their capacity as owners:
Issue of share capital on exercise of share rights
9
188
(188)
-
-
-
-
Share-based payments expense
-
219
-
-
-
219
Balance at 27 December 2020
11,204
728
1,466
-
161,174
174,572
Balance at 28 June 2021
11,285
637
3,584
- 177,895
193,401
Accounting policy change - SaaS implementation costs
1
- - (5)
- (19,083)
(19,088)
Restated total equity as at 28 June 2021
11,285
637
3,579
-
158,812
174,313
Profit for the half-year
- -
- - 37,136
37,136
Currency translation differences
-
-
(1,647)
-
-
(1,647)
Total comprehensive income for the half-year
-
-
(1,647)
-
37,136
35,489
Transactions with members in their capacity as owners:
Dividends provided
10
-
-
-
-
(11,649)
(11,649)
Issue of share capital on exercise of share rights
9
103
(103)
-
-
-
-
Transfer option reserve on forfeiture of options
-
(52)
-
-
52
-
Share-based payments expense
-
84
-
-
-
84
103
(71)
- - (11,597)
(11,565)
Balance at 26 December 2021
11,388
566
1,932
-
184,351
198,237
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of Michael Hill International Limited
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing
Arrangements. Refer to note 13(B) for details.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021
MICHAEL HILL GROUP 9

HALF-YEAR ENDED
26 December27 December
20212020
NOTES$'000$'000
RESTATED
1
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST and sales taxes)374,260 380,970
Payments to suppliers and employees (inclusive of GST and sales taxes)(286,687)(253,333)
87,573 127,637
Interest received- 2
Other revenue received3,907 13,868
Interest paid(348)(531)
Leasing interest paid4 (3,347)(3,439)
Income tax paid(5,723)(4,255)
Net GST and sales taxes paid(11,010)(18,494)
Net cash inflow from operating activities71,052 114,788
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment- 1
Payments for property, plant and equipment6 (8,299)(1,351)
Payments for intangible assets7 (3,454)(996)
Net cash (outflow) from investing activities(11,753)(2,346)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings- 2,000
Repayment of borrowings- (12,681)
Principal portion of lease payments4 (21,114)(22,594)
Dividends paid to Company's shareholders10 (11,649)-
Net cash (outflow) from financing activities(32,763)(33,275)
Net increase in cash and cash equivalents26,536 79,167
Cash and cash equivalents at the beginning of the financial year72,361 11,204
Effects of exchange rate changes on cash and cash equivalents241 (56)
Cash and cash equivalents at the end of the half-year99,138 90,315
CONSOLIDATED STATEMENT OF CASH FLOWS
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements.
Refer to note 13(B) for details.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 10

NOTES TO THE FINANCIAL STATEMENTS
1
2
3
4
5Financial assets and liabilities
6Property, plant and equipment
7Intangible assets
8Provisions
9Contributed equity
10Dividends
11Commitments
12Events occurring after the end of the reporting period
13Summary of accounting policies and significant estimates and judgements
1SEGMENT INFORMATION
AustraliaNew ZealandCanadaCorporate &
other
Group pre-
adjustments
AdjustmentsGroup
Half-year ended 26 December 2021$'000$'000$'000$'000$'000$'000$'000
Operating revenue161,486 63,937 101,126 561 327,110 -327,110
Gross profit104,538 40,575 65,360 2,449 212,922 -212,922
Gross profit %64.7%63.5%64.6%65.1%65.1%
EBITDA*36,749 18,816 29,530 (21,826)63,269 18,503 81,772
Depreciation and amortisation(3,244)(1,096)(2,562)(1,952)(8,854)(17,104)(25,958)
Segment EBIT*33,505 17,720 26,968 (23,778)54,415 1,399 55,814
EBIT as a % of revenue20.7%27.7%26.7%16.6%17.1%
Finance costs
(22)(1)-(369)(392)(3,347)(3,739)
Net profit before tax33,483 17,719 26,968 (24,147)54,023 (1,948)52,075
Income tax expense
(14,939)
Net profit after tax37,136
AustraliaNew ZealandCanadaCorporate &
other
Group pre-
adjustments
AdjustmentsGroup
$'000$'000$'000$'000$'000$'000$'000
RESTATED
1
RESTATED
1
Operating revenue175,145 64,897 79,053 789 319,884 -319,884
Gross profit107,582 39,632 48,620 4,651 200,485 -200,485
Gross profit %61.4%61.1%61.5%62.7%62.7%
EBITDA*46,767 19,874 17,376 (16,479)67,538 13,534 81,072
Depreciation and amortisation(2,882)(886)(2,481)(1,919)(8,168)(16,018)(24,186)
Segment EBIT*43,885 18,988 14,895 (18,398)59,370 (2,484)56,886
EBIT as a % of revenue25.1%29.3%18.8%18.6%17.8%
Interest income---2 2 -2
Finance costs
2 38 -(361)(321)(3,439)(3,760)
Net profit before tax43,887 19,026 14,895 (18,757)59,051 (5,923)53,128
Income tax expense
(15,554)
Net profit after tax37,574
MAJOR CUSTOMERS
Michael Hill International Limited and its controlled entities sell goods and provide services to a number of customers from which revenue is derived. There is no
single customer from which the Group derives more than 10% of total consolidated revenue.
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements. Refer to note 13(B) for details.
SEGMENT RESULTS
Half-year ended 27 December 2020
*EBIT and EBITDA are non-IFRS, unaudited information. Please refer to non-IFRS information in the Directors' Report for an explanation of non-IFRS information.
Michael Hill International Limited and its controlled entities operate predominately in the sale of jewellery and related services.
Segment information
Revenue
Other income
Leases
The amounts provided to the Board and Executive Management team in respect of total assets and liabilities are measured in a manner consistent with the financial
statements. These reports do not allocate total assets or total liabilities based on the operations of each segment or by geographical location.
Management have determined the operating segments based on the reports reviewed by the Board and Executive Management team that are used to make
strategic decisions. The Board and Executive Management team consider, organise and manage the business primarily from a geographic perspective, being the
country of origin where the sale and service was performed.
The Group's operations are in three geographical segments: Australia, New Zealand and Canada.
TYPES OF PRODUCTS AND SERVICES
The Corporate and other segment includes revenue and expenses that do not relate directly to the relevant Michael Hill retail segments. These predominately relate
to corporate costs and Australian based support costs, but also include manufacturing activities, warehouse and distribution, interest and company tax. Inter-
segment pricing is at arm's length or market value.
The segment disclosures are prepared excluding the impact of AASB16
Leases and IFRIC SaaS guidance. An adjustment column representing these entries has
been included for the purposes of reconciliation to statutory results.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 11

2
HALF-YEAR ENDED
26 December27 December
20212020
$'000 $'000
Revenue from sale of goods and repair services309,466 302,590
Revenue from Professional Care Plans (PCP)15,937 15,436
Interest and other revenue from in-house customer finance program1,368 1,559
Revenue from Lifetime Diamond Warranty (LTDW)339 299
Total revenue from contracts with customers327,110 319,884
Half-year ended 26 December 2021
AustraliaNew
Zealand
CanadaCorporate &
other
Total
Timing of revenue recognition $'000 $'000 $'000 $'000 $'000
At a point in time153,092 61,035 94,841 498 309,466
Over time8,394 2,902 6,285 63 17,644
161,486 63,937 101,126 561 327,110
Half-year ended 27 December 2020
Timing of revenue recognition
At a point in time167,137 62,251 72,598 604 302,590
Over time8,008 2,646 6,455 185 17,294
175,145 64,897 79,053 789 319,884
AS ATAS AT
26 December27 June
20212021
$'000 $'000
Right of return assets578 58
Deferred PCP bonuses907 1,087
Total contract assets1,485 1,145
Deferred service revenue77,870 76,581
Right of return liabilities1,469 148
Lifetime Diamond Warranty4,434 3,821
Total contract liabilities83,773 80,550
3OTHER INCOME
HALF-YEAR ENDED
26 December27 December
20212020
$'000 $'000
Net foreign exchange gain
s- 1,965
Government grants2,844 14,729
Other items107 545
2,951 17,239
4LEASES
AS ATAS AT
26 December27 June
20212021
RIGHT-OF-USE ASSETS $'000 $'000
Right-of-use assets206,806 179,524
Less: Accumulated depreciation(92,190)(72,925)
Less: Accumulated impairment(672)(717)
113,944 105,882
AS ATAS AT
26 December27 June
20212021
LEASE LIABILITIES $'000 $'000
Current35,735 34,304
Non-current104,787 99,382
140,522 133,686
REVENUE
The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions:
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
ASSETS AND LIABILITIES RELATED TO CONTRACTS WITH CUSTOMERS
Government grants include performance-based wage and rent assistance from regional governments in which the Group operates due to the impact of COVID-19.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 12

Right-of-use
assets
Lease
liabilities
TotalTotal
AMOUNTS RECOGNISED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION $'000 $'000
Balance at 28 June 2021105,882 133,686
Additions18,494 19,161
Lease modifications agreed during the half-year8,971 8,971
Depreciation and amortisation expense(19,069)-
COVID-19 practical expedient on rent concessions(812)(812)
Interest expense- 3,347
Lease repayments- (24,461)
Foreign currency translation478 630
Balance at 26 December 2021113,944 140,522
5FINANCIAL ASSETS AND LIABILITIES
AS ATAS AT
26 December27 June
20212021
Financial assets at amortised cost: $'000 $'000
Trade and other receivables10,741 8,352
Financial liabilities at amortised cost:
Trade and other payables86,133 73,961
AS ATAS AT
26 December27 June
20212021
$'000 $'000
Canadian in-house customer finance debtors17,73314,397
Total assets held for sale17,73314,397
Liabilities directly associated with the sale of the Canadian in-house customer finance debtors1,4011,607
Total liabilities directly associated with assets held for sale1,4011,607
6PROPERTY, PLANT AND EQUIPMENT
7INTANGIBLE ASSETS
8PROVISIONS
AS ATAS AT
26 December27 June
Current Non-currentTotalCurrentNon-currentTotal
$'000$'000$'000$'000$'000$'000
Employee benefits9,919 1,950 11,869 13,074 1,732 14,806
Assurance-type warranties1,057 280 1,337 1,082 280 1,362
Make good provision2,470 4,335 6,805 306 5,401 5,707
Restructuring costs126 - 126 152 - 152
Diamond warranty180 - 180 240 - 240
13,752 6,565 20,317 14,854 7,413 22,267
During the 26 weeks ended 26 December 2021 , the Group acquired assets, primarily software development with a total cost of $3,454,000 (27 December 2020:
$996,000 (Restated
1
)). There were no assets disposed of during the 26 weeks ended 26 December 2021 (27 December 2020: $9,000, resulting in a net gain of
$9,000).
2021
2021
Set out below is an overview of financial assets, other than cash and short-term deposits, held by the Group as at 26 December 2021 and 27 June 2021:
At reporting date, as the sale is considered probable and expected to be completed by the end of FY22, it is presented as held for sale. The carrying value of the
credit book is held at management's best estimate of net proceeds of sale and estimated costs of disposal. This resulted in an expense of $178,000 in the period
being recognised as a fair value loss. This estimate is based on unobservable inputs (Level 3 under AASB13
Fair Value Measurement Hierarchy) which includes
assumptions in relation to the terms of the eventual sale which may differ from this estimate. The loss recognised on this asset is included in the Canada segment in
note 1.
Assets held for sale and directly associated liabilities
Acquisitions and disposals
During the 26 weeks ended 26 December 2021, the Group acquired assets with a total cost of $8,299,000 (27 December 2020: $1,351,000). No assets were
disposed of during the 26 weeks ended 26 December 2021 (27 December 2020: $33,000, resulting in net loss of $32,000).
Acquisitions and disposals
An impairment loss of $53,000 (27 December 2020: $1,214,000) was recognised during the 26 weeks ended 26 December 2021.
No impairment loss in relation to intangibles was recognised for the half-year ended 26 December 2021 (27 December 2020: no loss).
Impairment
Impairment
1
Restated as required for changes introduced by IFRIC Agenda Decision – Configuration or Customisation Costs in Cloud Computing Arrangements. Refer to note 13(B) for details.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 13

9CONTRIBUTED EQUITY
MOVEMENTS IN ORDINARY SHARES
Number of
shares
$'000
Opening balance at 29 June 2020387,769,105 11,016
Rights converted211,583 188
Balance at 27 December 2020387,980,688 11,204
Opening balance at 28 June 2021388,142,149 11,285
Rights converted143,225 103
Balance at 26 December 2021388,285,374 11,388
10 DIVIDENDS
HALF-YEAR ENDED
26 December27 December
20212020
Ordinary shares $'000 $'000
11,649 -
HALF-YEAR ENDED
26 December27 December
20212020
Dividends not recognised at the end of the reporting period $'000 $'000
13,590 5,816
11COMMITMENTS
Within one
year
One to five yearsGreater than
five years
Total
$'000$'000$'000$'000
1,08710,18610,55821,831
12 EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD
13
(A) BASIS OF PREPARATION
(B) CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
IFRIC agenda decision - Configuration or Customisation Costs in a Cloud Computing Arrangement
Accounting Policy - Software-as-a Service (SaaS) arrangements
These consolidated financial statements of Michael Hill International Limited and its subsidiaries (collectively, the Group) for the 26 weeks ended 26 December 2021
were authorised for issue in accordance with a resolution of directors on 22 February 2022.
As the dividend was declared subsequent to the half-year end, no provision has been made as at 26 December 2021
On 22 February 2022, the directors recommended the payment of an interim dividend of 3.5 cents (2020: 1.5
cents) per fully paid share, expected to be paid on 25 March 2022.
These consolidated financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 27 June 2021 and any public announcements made by Michael Hill International Limited during the interim
reporting period in accordance with the continuous disclosure requirements of the
Corporations Act 2001 (Cth), ASX Listing Rules and NZX Listing Rules.
Michael Hill International Limited (the Company) is a for profit company limited by shares, incorporated and domiciled in Australia, whose shares are publicly traded.
The Group’s principal activity is the sale of jewellery and related services.
The dividends paid during the current financial period were fully imputed and not franked.
No other matters or circumstances have occurred subsequent to half-year end that has significantly affected, or may significantly affect, the operations of the
Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial years.
The following sets out the various lease contracts that the Group has entered into and have yet to commence as at 26 December 2021
Future lease payments for these non-cancellable lease contract
s
SaaS arrangements are arrangements in which the Group does not currently control the underlying software used in the arrangement.
Where costs incurred to configure or customise SaaS arrangements result in the creation of a resource which is identifiable, and where the Group has the power to
obtain the future economic benefits flowing from the underlying resource and to restrict the access of others to those benefits, such costs are recognised as a
separate intangible software asset and amortised over the useful life of the software on a straight-line basis. The amortisation is reviewed at least at the end of each
reporting period and any changes are treated as changes in accounting estimates.
In April 2021, the IFRS Interpretations Committee (IFRIC) published an agenda decision for configuration and customisation costs incurred related to implementing
Software as a Service (SaaS) arrangements. The Group has changed its accounting policy in relation to configuration and customisation costs incurred in
implementing SaaS arrangements. The nature and effect of the changes as a result of changing this policy is described below.
Where necessary, the comparative information has been reclassified from the financial statements previously presented to conform to the presentation of the
financial statements for the period ended 26 December 2021. There is no change to net profit/loss for the period as a result of this reclassification.
SUMMARY OF ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES AND JUDGEMENTS
The financial statements have been prepared on a historical cost basis, except for assets held for sale that have been measured at fair value. The consolidated
financial statements provide comparative information in respect of the previous period.
Due to the seasonal nature of selling jewellery and related services, higher revenues and operating profits are usually expected in the first half of the financial year.
Accordingly, inventory levels and working capital levels are higher at the end of the first half of the financial year rather than at the end of the financial year. A
comparative half-year balance sheet has been included in the consolidated statement of financial position. This information is provided to allow for a better
understanding of the results. However, management has concluded that this is not 'highly seasonal’ in accordance with AASB 134.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
The consolidated financial statements of Michael Hill International Limited and its subsidiaries (collectively, the Group) for the half year ended 26 December 2021
have been
prepared in accordance with Accounting Standard AASB 134Interim Financial Reporting and theCorporations Act 2001 (Cth).
For reporting purposes, the Group adopts a weekly 'retail calendar' closing each Sunday. The current 26 week reporting period ended on 26 December 2021.
Final ordinary dividend for the year ended 27 June 2021 of 3.0 cents (2020: no dividend paid) per fully paid
share paid on 24 September 2021.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 14

27 December
2020
Impact of
accounting
27 December
2020
27 June
2021
Impact of
accounting
27 June
2021
As originally
presented
policyRestatedAs originally
presented
policyRestated
Consolidated statement of financial position
$'000$'000$'000$'000$'000$'000
ASSETS
Intangible assets27,075 (23,094)3,981 32,845 (26,832)6,013
Deferred tax assets63,174 6,91470,088 60,585 7,74468,329
Total assets543,745 (16,180)527,565 508,111 (19,088)489,023
EQUITY
Reserves2,195 (1)2,194 4,221 (5)4,216
Retained profits177,353 (16,179)161,174 177,895 (19,083)158,812
Total equity190,752 (16,180)174,572193,401 (19,088)174,313
27 December
2020
Impact of
accountin
g
27 December
2020
As originally
presented
policyRestated
$'000$'000$'000
Other expenses(14,443)(3,462)(17,905)
Depreciation and amortisation expense(25,656)1,470(24,186)
Profit before income tax55,120(1,992)53,128
Income tax expense(16,137)583(15,554)
Profit after income tax38,983(1,409)37,574
Owners of Michael Hill International Limited36,727(1,409)35,318
27 December
2020
Impact of
accountin
g
27 December
2020
As originally
presented
policyRestated
Consolidated statement of cash flows
$'000$'000$'000
Payments to suppliers and employees(249,871)(3,462)(253,333)
Net cash inflow from operating activities118,250(3,462)114,788
Payments for intangible assets(4,458)3,462(996)
Net cash outflow from investing activities(5,808)3,462(2,346)
27 December
2020
Impact of
accounting
27 December
2020
As originally
presented
policyRestated
Earnings per share for profit attributable to the ordinary equity holders of the Company:
centscentscents
Basic earnings per share10.05 (0.36)9.69
Diluted earnings per share10.03 (0.36)9.67
27 June
2021
28 June
2020
$'000$'000
RestatedRestated
177,895 138,370
Intangible assets(26,828)(21,100)
Deferred tax assets7,745 6,330
Opening retained profits - restated158,812 123,600
Critical accounting estimates, assumptions and judgements
•
Determining whether cloud computing arrangements contain a software licence intangible asset
-
-
Where costs incurred to configure or customise SaaS arrangements do not result in the recognition of an intangible software asset, then those costs that provide
the Group with a distinct service (in addition to the SaaS access) are now recognised as expenses when the supplier provides the services. When such costs
incurred do not provide a distinct service, the costs are now recognised as expenses over the duration of the SaaS contract. Previously some costs had been
capitalised and amortised over its useful life.
The following tables show the adjustments recognised for each individual line item. Line items that were not affected by the changes have not been included. As a
result, the sub-totals and totals disclosed cannot be recalculated from the amounts provided.
In the process of applying the above policy, management has made the following judgements which have the most significant effect on the amounts recognised in
the consolidated financial statements:
Impact on:
The Group evaluates a cloud computing arrangement to determine if it provides a resource that the Group can control.
The Group determines that a software licence intangible asset exists in a cloud computing arrangement when both of the following are met at the inception of
the arrangement:
It is feasible for the Group to run the software on its own hardware or contract with another party unrelated to the supplier to host the software.
The Group has the contractual right to take possession of the software during the hosting period without significant penalty.
Opening retained profits as originally presented
Total comprehensive income for the half-year attributable to:
Consolidated statement of profit or loss and other comprehensive income
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 15

•
Determining whether configuration and customisation costs provide a distinct service to access to the SaaS
(C) SIGNIFICANT ESTIMATES AND JUDGEMENTS
Significant Estimates And Judgements
Accounting judgements that relate to this are accounting for COVID-19 related lease concessions (note 4) and assets held for sale (note 5) and the significant
accounting estimates were in relation to the pattern of PCP revenue recognition (note 2) and the valuation of the assets held for sale (note 5).
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs
to exercise judgement in applying the Group’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are incorporated within the relevant
note.
No other new standards or amendments became effective in the current reporting period that have a material impact on the Group.
The Group applies judgement in determining whether costs incurred provide a distinct service, aside from access to the SaaS. Where it is determined that no
distinct service is identifiable, the related costs are recognised as expenses over the duration of the service contract.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 16

DIRECTORS' DECLARATION
(a)
(i)
(ii)
(b)
R. I. Fyfe
Chair
Brisbane
22 February 2022
For the purposes of section 303(4) of the
Corporations Act 2001 (Cth) and for all other purposes, the directors
declare that in their opinion:
This declaration is made on 22 February 2022 in accordance with a resolution of the directors.
the financial statements and notes are in accordance with the
Corporations Act 2001, including:
complying with Accounting Standards, the
Corporations Regulations 2001 and other mandatory
professional reporting requirements;
giving a true and fair view of the consolidated entity's financial position as at 26 December 2021 and
of its performance for the half-year ended on that date; and
there are reasonable grounds to believe that Michael Hill International Limited will be able to pay its debts as
and when they become due and payable.
HALF-YEARLY FINANCIAL REPORT 26 DECEMBER 2021 MICHAEL HILL GROUP 17

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
GPO Box 7878 Brisbane QLD 4001
Tel: +61 7 3011 3333
Fax: +61 7 3011 3100
ey.com/au

Independent Auditor’s Review Report to the Members of Michael Hill
International Limited
Conclusion
We have reviewed the accompanying half-year financial report of Michael Hill International Limited
(the Company) and its subsidiaries (collectively the Group), which comprises the consolidated
statement of financial position as at 26 December 2021, the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the half-year ended on that date, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the half-year financial report of the Group does not comply with the Corporations Act
2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at
26 December 2021 and of its consolidated financial performance for the half-year ended on
that date; and
b. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001.
Basis for conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by
the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the
Auditor’s responsibilities for the review of the half-year financial report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.
Directors’ responsibilities for the half-year financial report
The directors of the Company are responsible for the preparation of the half-year financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the Corporations
Act 2001 and for such internal control as the directors determine is necessary to enable the
preparation of the half-year financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the half-year financial report
Our responsibility is to express a conclusion on the half-year financial report based on our review.
ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us
believe that the half-year financial report is not in accordance with the Corporations Act 2001
including giving a true and fair view of the Group’s consolidated financial position as at 26 December
2021 and its consolidated performance for the half-year ended on that date, and complying with
Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


A review of a half-year financial report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.



Ernst & Young




Kellie McKenzie
Partner
Brisbane
22 February 2022