Signet Jewelers : 2023 Annual Report

Largest specialty retail jewelry brand in the US catering to the Sentimental Gifter.

Empowers self-purchasers to creatively express themselves with fine jewelry and with over 50 years of piercing expertise.

Innovative digitally-native diamond company on the leading edge of custom bridal design and diamond jewelry.

Best jewelry values on UK High Street with style and design at heart for the fun- loving fashion follower.

Style-focused assortment for statement-making bridal and gifting customers.

Direct Diamond importer offering extraordinary value and selection in a luxurious, customer-centric atmosphere.

Making the joy of jewelry discovery accessible and convenient through a unique rental service.

A contemporary UK jeweler offering unrivaled diamond selection and Swiss timepieces.

Leading full-service jeweler encouraging Extroverted Romantics to showcase their spectacular taste.

Leading digitally-native jewelry brand catering to diverse and affluent buyers of high-end diamond essentials.

Largest specialty jewelry brand in Canada catering to the Sentimental Gifter and mid-market bridal customer.

Ring from

Jared Atelier

collection

C333

UK AND REPUBLIC STORES OF IRELAND

GLOBALLY

20.4%

eCommerce Sales

29,660

Total Team Members

LETTER FROM THE CHAIRMAN

Dear Shareholders

Signet continued to deliver its commitments to shareholders in Fiscal 2023 as Chief Executive Officer Virginia C. “Gina” Drosos, the Signet Leadership Team and our more than 29,000 team members pivoted in the face of significant ongoing macroeconomic challenges, demonstrating the organization’s capability to remain agile and achieve sustainable long- term growth year after year.

I want to use this letter to explain the role that Signet’s Board continues to play as we support Gina and her leadership team by leveraging the diversity of experience and expertise we have built within the Board over these past few years.

An Actively Engaged and Highly Diverse Board

Signet’s Board includes deep expertise across a wide range of areas that are critical to the Company’s success: financial services, real estate, supply chain, digital technology, eCommerce, cybersecurity, brand development, marketing, talent and organizational development and sustainability – all of which drives strategic clarity and ongoing transformation. Currently, 58% of our Board is diverse, with an average tenure in role of 6.4 years.

As we have evolved the composition of the Board, we have focused on bringing together the proper diversity of skills, experiences, age, gender and ethnicity to represent Signet’s customer base, inspire the team and deliver productive, collaborative Board dialogue and input.

Signet and the Board are committed to good governance practices:

• We conduct annual evaluations of the Board and its Committees to ensure that our Board is operating pursuant to best practices and in alignment with the strategies and needs of the Company – and we implement action plans to address any opportunities for improvement.
• We regularly review our Company’s business needs and strategy relative to Board skills and refreshment and we make changes to our Board and Board Committee composition based on this review.
• We also review Board tenure as part of our Board composition and succession planning activities, including making updates to our policy on Board tenure in the past year to ensure a healthy balance of experience and fresh perspectives.
• Board education is an essential component of our governance program. We provide the Board with a quarterly update on a variety of educational opportunities and programs that are offered by the Company. In addition, the Company offers in-person educational programs to the Board on good governance practices – including, in the past year, programs related to environmental, social and governance (“ESG”) and cybersecurity. Our Directors are also encouraged to engage in self-study using relevant category news.

H. Todd Stitzer

Chairman of the Board,

Signet Jewelers

Our Board has supported the Company’s investments in growth through our strong support for Signet’s emergence as the jewelry category’s digital leader, with emphasis on digital technology, enterprise data analytics and personalization.

Custom 3D-printed mold and ring for KAY

Last year, we implemented changes in the focus and responsibilities of some of our five Board Committees. We re-chartered our Corporate Social Responsibility Committee in Fiscal 2022 as the Corporate Citizenship

• Sustainability Committee and further evolved the Committee during Fiscal 2023 to enhance its focus on how the Company’s Corporate Sustainability Goals (“CSGs”) and ESG strategies align with the Company’s overall business strategy. We also completed our first full year with our expanded Governance and Technology Committee, which now also provides oversight of cybersecurity, data privacy risks and technology matters relating to the Company’s Connected Commerce strategies. I am encouraged by the clarity and collaboration I’ve seen in action over the past year.

One of our most important roles is providing oversight and counsel regarding the Company’s strategic investments aimed at driving long-term growth. Signet’s ability to invest in its capabilities during strong and weak economic conditions is a signature strength.

Since Fiscal 2019, the effective beginning of Signet’s transformation, the Company has invested more than $750 million in capital to fuel its strategies, primarily funded by cost savings. It has paid nearly $900 million in cash for two strategic acquisitions, both of which were timed to take advantage of market conditions. Gina and her team have done this while paying down more than $500 million in debt to reduce the Company’s leverage. They have tripled liquidity from $880 million to $2.6 billion and have returned $1.4 billion to shareholders through

a combination of share repurchases and dividends. Signet’s financial health has been transformed – from being an impediment to growth, preventing appropriate investment in the business and talent, to becoming a significant competitive advantage.

As a result, we can now further fuel the Company’s ongoing investments in growth. Two examples illustrate this collaborative effort: the continuing evolution and differentiation of Signet’s portfolio of banners and its investment in digital technology, enterprise analytics and personalization.

An Unrivaled Portfolio of Banners

We’ve developed Signet’s portfolio of banners into a difficult-to-match strategic asset and competitive advantage. As the portfolio has evolved, the Board has advised and helped guide the Company on acquisition strategies and other opportunities that are strategically sound, structured advantageously and responsibly financed. The acquisitions of Diamonds Direct in Fiscal 2022 and Blue Nile in Fiscal 2023 are good examples. Our ability to successfully complete these transactions was fostered by:

• The leadership team’s strategic clarity in identifying and qualifying potential acquisitions;
• The Company’s financial health, which has created the ability to move opportunistically on desired acquisitions when deal and market conditions are right; and
• The Company’s well-defined culture, which makes it possible to assess culture fit and increase the likelihood of a successful acquisition. In addition, Signet’s highly disciplined operating structure enables accelerated integration, increasing the ability to capture acquisition synergies reasonably early and to achieve accretion at an acceptable pace.

Bringing Diamonds Direct and Blue Nile into Signet’s portfolio made great strategic sense. Both accelerate the growth of the Company’s accessible luxury business. We can accelerate the pace of Diamonds Direct store expansion with Signet scale. Blue Nile amplifies our ability to attract younger, more diverse, more affluent and more digitally savvy customers while achieving higher levels of performance as we integrate it with James Allen’s technology and platforms.