Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Macquarie Equities 2004 Emerging Leaders Conference
14 slides from Jb Hi-fi's conference presentation, May 2004
Slide 1: Macquarie Equities 2004 Emerging Leaders Conference
LaF Macquarie Equities 2004 Emerging Leaders Conference May 2004 Richard Uechtritz - CEO
Slide 2: call en
call en
Slide 3: JB Hi-Fi Background
JB Hi-Fi Background jie » Founded 1974 in Melbourne ® Management Buy In - July 2000 led by Macquarie Direct Investments » 10 stores (9 Melbourne, 1 Sydney) » Sales $140m >» IPO October 2003 * 26 stores » Forecast 2004 Results ® 32 stores » $457 million sales ®» $13.1 million NPAT ®» Current market c
Slide 4: JB Hi-Fi Background (cont.)
JB Hi-Fi Background (cont.) » Large format category killer discount retailer specialising in home entertainment % 32 stores across Australia » 7 Categories ® Audio &» Visual » Digital and video camera’s » Car Sound » CD's ® DVD's ® Accessories we Brisbane, Gold & Sunshine Coast Newcastle
Slide 5: Industry Overview
Industry Overview col a » — In the year to June 2003, the domestic appliance and recorded music retailing segment was approximately $11.2 billion ®» — Estimated market size of mainly high growth products sold by JB Hi-Fi: Colour televisions DVD. players Receivers. / amplifiers Digital still cameras
Slide 6: Industry Overview (cont'd)
Industry Overview (cont’d) call B » Key competitors to JB Hi-Fi ie Major retailers » Harvey Norman » Woolworth’s - Big W, Dick Smiths, Tandy » Coles Myer - Myer, Kmart, Target, Megamart Larger independent electrical retailers » Clive Peeters (Melbourne), Bing Lee (Sydney), Truscots (Adelaide), Video
Slide 7: Business Model & Customer Proposition
Business Model & Customer Proposition col H % Focused on home entertainment, » One of Australia’s largest ranges of audio, visual, video & digital camera’s, car sound, CD’s and DVDs » Discounter of brand name products » Specialist and empowered sales people 3 Warehouse or “No Frills” look and feel,
Slide 8: Growth Opportunities
Growth Opportunities call BB x Less than 2 way through growth phase, 32 stores currently, can do 60-70 metropolitan stores without cannibalisation eg CD market share > Stim line wide screen digital TV’s » ie Plasma & LCD television * DVD recorders » Digital camera’s *» Home theatre >» Hardware and s
Slide 9: Example of JB Market Presence - CD sales
Example of JB Market Presence - CD sales col a » Indication of JB’s market dominance in a large regional shopping centre August 2002 August 2003 JB Hi-Fi, 39% » Competitors - Sanity, HMV, Virgin, Kmart, Big W, Myer, Target, ABC Shop, David Jones » Indication of JB’s ability to quickly gain market do
Slide 10: Challenges
Challenges » Ever increasing competition ® Price deflation » Maintaining JB’s culture as we grow % Staying focussed on core business x Continue to attract good people [ JB J 10
Slide 11: Financial Highlights - Half Year Dec
Financial Highlights - Half Year Dec 04 col a » Sound six months performance to 31 December, 2003 >» Growth against previous corresponding period strong: - Sales 26.3% a - Comparable store sales growth 8.4% a - Gross Margin (+0.8 to 23.3%) 3.6% tt - NPAT 49.2% an x Fully franked interim dividend of
Slide 12: P&L - Half Year Dec
P&L - Half Year Dec 04 Sales Comparative Store Sales Growth Gross Profit Gross Margin EBIT EBIT Margin Net Profit After Tax “ Headline Statistics: Earnings per Share (cents) Stores at period end Opex as a % of sales * Applying same number of shares as current year (102,120,000) JB Six Months Six Mon
Slide 13: IPO Forecast
IPO Forecast Sales Comparative Store Sales Growth Gross Profit Gross Margin EBIT EBIT Margin Net Profit After Tax Headline Statistics: Stores at period end Opex as a % of sales JB 12 Months 12 Months 30 June 2004 30 June 2003 IPO Forecast Actual Growth $m $m 457.3 355.8 28.5% + 6.5% 104.0 79.9 22.7%
Slide 14: Q&A
Q&A » Last store opening 21%t April - Westfield Bondi Junction 14
JB Hi-Fi — Macquarie Equities 2004 Emerging Leaders Conference on 6ix