Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — FY2009 Earnings Presentation
20 slides from Jb Hi-fi's earnings presentation, Aug 11, 2009
Slide 1: JB Hi-Fi Limited Full Year Results Presentation
For personal use only JB Hi-Fi Limited Full Year Results Presentation 30 June 2009 11 August 2009
Slide 2: Agenda
Agenda For personal use only 1. Performance 2. Historical Performance 3. Trading Update 4. Financial Detail 5. Dividends 6. Store Update 7. Investment Checklist Richard Uechtritz Richard Murray CEO CFO 2
Slide 3: Strong performance for 12 months to 30 June 2009
1. PERFORMANCE Strong performance for 12 months to 30 June 2009 For personal use only FY08 FY09 Growth q Sales $1.83b $2.33b 27.3% Û q Gross Margin 21.9% 21.6% -22 bps Û q Û Cost of Doing Business 15.3% 14.5% -77 bps q EBIT Margin 5.6% 6.1% +51 bps Û q NPAT $65.1m $94.4m 45.1% Û q Earnings per share
Slide 4: Historical Performance: strong growth since MBI in July 2000
2. HISTORICAL PERFORMANCE Strong growth in sales & earnings since MBI in July 2000 For personal use only SALES +27% EBIT +39% NPAT +45% ~2.80b 94.4m +45% +20% 142.0m +39% 2.33b + +27% 65.1m 102.3m 1.83b +61% +56% FORECAST +43% 1.28b 65.5m 40.4m +36% +47% +57% 946m +36% 44.5m 25.8m 694m +28% 34.7m +3
Slide 5: Trading Performance
3. TRADING UPDATE For personal use only Trading Performance § Strong result – the company has traded well through what is considered to be the weakest retail climate for many years. § Consolidated comparable store sales growth for FY09 was 11.5%. § Reinforces the strength and resilience of our uniqu
Slide 6: Trading Update: Financial Metrics
3. TRADING UPDATE…. For personal use only Financial Metrics § Gross margin at 21.6% (pcp: 21.9%) was pleasing given the tough competitive environment, the growth of lower margin product categories of games and computers, the continued roll-out of JB Hi-Fi New Zealand and our investment in everyday l
Slide 7: Trading Update: New Stores
3. TRADING UPDATE…. For personal use only New Stores § Opened 16 new JB Hi-Fi stores (Aust: 13, NZ: 3) and 3 Clive Anthonys stores during FY09. § 3 stores were relocated in Australia. § Planning to open circa 18 stores across Australia and New Zealand in FY10. Australia § Sales grew 27.1% to $2.2b w
Slide 8: Trading Outlook
3. TRADING UPDATE…. For personal use only Trading Outlook § We expect to have another good year of sales and earnings growth. § Visual, Computers/IT, DVD and Telco should continue to drive comparable store sales. § Confident of continued solid growth in most categories and market share gains in all.
Slide 9: Profit and Loss Statement
4. FINANCIAL DETAIL Profit and Loss Statement For personal use only AUST NZ CONSOLIDATED $AUDm FY08 FY09 Growth FY08 FY09 Growth FY08 FY09 Growth Sales 1,735.1 2,205.0 27.1% 93.5 122.3 30.8% 1,828.6 2,327.3 27.3% Gross Profit 384.6 483.0 25.6% 15.1 20.6 36.3% 399.7 503.6 26.0% Gross Margin 22.2% 21.
Slide 10: Balance Sheet
4. FINANCIAL DETAIL…. Balance Sheet For personal use only $m FY08 FY09 Cash (1.5) 35.8 Receivables 53.0 60.3 Inventories 271.9 324.5 Other Current Assets 5.3 5.7 Total Current Assets 328.7 426.2 Fixed Assets 112.9 136.1 Brandname & Goodwill 81.2 81.4 Other Non-Current 11.5 18.0 Total Non-Current Ass
Slide 11: Cashflow Statement
4. FINANCIAL DETAIL…. Cashflow Statement For personal use only $m FY08 FY09 EBITDA 117.0 160.7 Change in Working Capital (44.8) 19.6 Net Interest Paid (8.9) (6.7) Income Tax Paid (28.0) (41.3) Other 7.1 13.3 Net Cashflow from Operations 42.4 145.6 Purchases of P&E (51.3) (43.9) Investments (8.2) - N
Slide 12: Working capital and key ratios
4. FINANCIAL DETAIL…. Working capital and key ratios: For personal use only $m FY08 FY09 § Working capital is an ongoing focus of management and is in-line with current expectations. (Increase)/decrease in current assets Inventory (59.5) (52.5) § Inventory Management: Receivables (4.9) (7.0) § Inven
Slide 13: Net debt and gearing ratio
4. FINANCIAL DETAIL…. Net debt and gearing ratio For personal use only 140 2.50 120 124.5 2.00 100 Gearing Ratio* Net Debt ($m) 96.1 1.50 80 94.9 76.0 60 1.00 53.6 40 0.50 20 27.2 0 0.00 FY04 FY05 FY06 FY07 FY08 FY09 Net Debt Gearing Ratio* * Gearing Ratio = Net Debt / EBITDA 13
Slide 14: Dividends
5. DIVIDENDS For personal use only § Final dividend of 29 cents per share fully franked, a 13 cents per share or 81% increase on the prior year. § The total dividend for FY09 is 44.0 cents per share, an increase of 18.0 cents per share or 69% over the prior year. § Target payout ratio has increased
Slide 15: Store Update: stores opened in FY09
6. STORE UPDATE 19 stores opened in FY09 For personal use only § 16 JB Hi-Fi stores were opened: • WA: Cockburn, Carousel, Malaga, Perth CBD, Joondalup, Claremont, Rockingham • NSW: Tweed City • QLD: Cairns Central, Morayfield, Pacific Fair • SA: Gepps Cross • ACT: DFO Fyshwick • NZ: St Lukes, Welli
Slide 16: Store Update: new stores to open in FY10
6. STORE UPDATE…. 18 new stores to open in FY10 For personal use only § 18 JB Hi-Fi stores expected be opened during FY10 and includes: • NSW: Eastgardens, Moore Park, Top Ryde, Sydney CBD, Albury, Wollongong, Artarmon • QLD: Brisbane CBD, Rockhampton, Townsville • VIC: Malvern, Shepparton, Bendigo
Slide 17: Investment Checklist
7. INVESTMENT CHECKLIST For personal use only P Strong and unique retail model. P Operates mainly in high growth home entertainment and technology sector. P Low cost of doing business – best of listed retailers. P Many new store opportunities - JB circa 210 (160 large format and 50 smaller format) i
Slide 18: Appendix I: Store movements and geographic breakdown
APPENDIX I For personal use only Store movements during FY09 Geographic breakdown FY09 FY08 Opened Closed Total AUSTRALIA JB Hi-Fi 85 13 - 98 Clive Anthonys 8 3 - 11 93 16 - 109 NEW ZEALAND 1 JB Hi-Fi 5 3 - 8 Hill & Stewart 7 - (1) 6 25 12 3 (1) 14 13 105 19 (1) 123 Store Format: 7 Shopping centres
Slide 19: Appendix II: Share Price, Annual NPAT & ASX
APPENDIX II For personal use only JB Hi-Fi Share Price, Annual NPAT & ASX 200 $18.00 $90.0 $16.00 $80.0 $14.00 $70.0 $12.00 $60.0 FY09 NPAT $94.4m $10.00 Share Price NPAT $m $50.0 FY08 NPAT $65.1m $8.00 $40.0 FY07 NPAT $40.4m $6.00 $30.0 $4.00 FY06 NPAT $20.0 $25.8m FY05 NPAT $19.5m FY04 NPAT $2.00
Slide 20: Appendix III: EBIT reconciliation
APPENDIX III For personal use only EBIT reconciliation $m FY08 FY09 Profit for the year (per Appendix 4E) 65.1 94.4 add back - income tax expense 28.9 41.1 Profit before Tax 94.0 135.5 add back - interest received (1.0) (1.6) - interest expense 9.3 8.0 - net interest expense 8.3 6.5 Earnings before