Jb Hi-fi Limited · ASX:JBH
Jb Hi-fi — Securities Institute Finance and Investment Week 2004
17 slides from Jb Hi-fi's conference presentation, May 14, 2004
Slide 1: Securities Institute Finance and Investment Week 2004
WHEEL Securities Institute Finance and Investment Week 2004 14 May 2004 Richard Murray - CFO
Slide 2: Agenda
Agenda call en
Slide 3: JB Hi-Fi Background
JB Hi-Fi Background call BB » Founded 1974 in Melbourne » Management Buy In - July 2000 led by Macquarie Direct Investments » 1Ostores (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.) ye 32 stores across Australia Large format category killer discount retailer specialising in home entertainment 7 Categories > pe Audio Visual Digital and video camera’s Car Sound CD’s DVD’s Accessories we Brisbane, Gold & Sunshine Coast Newcastle
Slide 5: JB Hi-Fi Background (cont.)
JB Hi-Fi Background (cont.) » Board and Management i 6 Directors including 4 non-executive Patrick Elliott Non-Executive Chairman Richard Uechtritz CEO Terry Smart Executive Director Gary Levin Non-Executive Director Will Fraser Non-Executive Director Jim King Non-Executive Director (recently appoin
Slide 6: JB Hi-Fi Background (cont.)
JB Hi-Fi Background (cont.) call BB » Current range of shareholders - April 2004 om coe : 1 =.1,000 . ; : 469 0,3% 1,001 = 5,000 OA T9B 8 5,001 ~ 10,000 805 6.0% 10,001 - 100,000. : ~ 500 41.2% 100,001 and over 6 76.9% Total 3,618 100.0% » 7 substantial shareholders control 45% of the shares outstan
Slide 7: 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 8: 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 9: Business Model & Customer Proposition
Business Model & Customer Proposition col a * Business Model » 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 x Customer Proposition >» Specialist and empowered sales people 3
Slide 10: Growth Opportunities
Growth Opportunities col H 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 sof
Slide 11: Example of JB Market Presence - CD sales
Example of JB Market Presence - CD sales col a » Store A: Indication of JB’s market dominance in a large regional shopping centre August 2002 August 2003 SB HI-FI, 34% JB Hi-Fi, 39% >» Competitors - Sanity, HMV, Virgin, Kmart, Big W, Myer, Target, ABC Shop, David Jones 1
Slide 12: Example of JB Market Presence - CD sales
Example of JB Market Presence - CD sales col a » Store B: Indication of JB’s ability to quickly gain market dominance in a large regional shopping centre Before JB - August 2002 After JB - August 2003 JB Hi-Fi, 0% » Competitors - Sanity, Big W, Virgin, Kmart Myer, Target, Hi-Fi Supermarket, ABC Shop
Slide 13: Challenges
Challenges » Ever increasing competition ® Price deflation » Maintaining JB’s culture as we grow % Staying focussed on core business » CD Sales x Continue to attract good people [ JB J 13
Slide 14: P&L - Half Year Dec
P&L - Half Year Dec 04 call BB Six Months Six Months 31 Dec 2003 31 Dec 2002 $m $m Growth Sales 234.6 185.7 26.3% Comparative Store Sales Growth 8.4%, Gross Profit 54,7 41.8 Gross Margin 23.3% 22.5% EBIT 14.5 10.7 35.8% EBIT Margin 6.2% 5.7% + 0.5% Net Profit After Tax * 9.3 6.2 49.2% Headline Stati
Slide 15: 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 16: Share Price performance since IPO
Share Price performance since IPO » Retail price $1.55 47% » Institutional price $1.80 27% [ JB J 16
Slide 17: Summary and Q&A
Summary and Q&A » Last store opening 21%t April - Westfield Bondi Junction 17
JB Hi-Fi — Securities Institute Finance and Investment Week 2004 on 6ix